A STUDY ON CUSTOMER

SATISFACTION TOWARDS BANKING

SERVICES OF THE STATE BANK OF
INDIA

 Name : Raj Yadav

 UID:19BBA1102
 Subject: Research Methodology LAB
 Section: 5G
 Semester:5th
 DECLARATION

I, RAJ YADAV, hereby declare that the Research project report entitled “CUSTOMER
SATISFACTION” submitted to Chandigarh University, Gharuan in partial fulfillment of
the requirement for the award of the degree of BACHLER OF BUSINESS
ADMINISTRATION is an original record of studies and research carried out by me. It has
not been previously submitted elsewhere for the award of any degree. Moreover, I assure
that I have not transferred either whole or part of the report to anyone for the award of
any other degree.

RAJ YADAV
 ACKNOWLEDGEMENT
This project consumed huge amount of work, research and dedication still. Implementation
would not been possible if we did not have a support of many individuals and
organizations. Therefore we would like to extend our sincere gratitude to all of them. I
would like to express my gratitude toward my parents and faculty members of Chandigarh
University for their kind co-operation and encouragement which help me in completion of
this project.
I would like to express my special gratitude and thanks to industry persons for giving me
such attentions and time. My thanks and appreciation also goes to my friends in developing
the project and people who have willingly helped me out with their abilities.
 ABSTRACT
 
The purpose of this research article is to evaluate the customers’ satisfaction towards the
banking services rendered by the SBI in Mohali Punjab District. The author conducted a
literature search on banking services of SBI interviewing of its 150 customers and
thoroughly scrutinized how it caters to the banking needs of the inhabitants of mohali
district. The study also focused on various factors that determine the customers
’satisfaction like employees behavior banking services, banking performance, infra-
structure facility, loan oriented services and other value added services. Analysis was made
by using various tools like percentage Analysis, Chi- Square Test and charts. The result
showed that there is a significant relationship between the variable of customer satisfaction
and banking services of the SBI and the customers have a medium level of satisfaction. The
SBI could consider the researcher’s suggestions in order to alleviate its reputation and
customer satisfaction

1 INTRODUCTION:

Banking in India

In India the banks and banking have been divided in different groups. Each group has
their own benefits and limitations in their operations. They have their own dedicated target
market. Some are concentrated their work in rural sector while others in both rural as well
as urban. Most of them are only catering in cities and major towns. Modern banking in
India originated in the last decade of the 18th century. Among the first banks were the
Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the
General Bank of India, established in 1786 but failed in 1791.

The business of banking is as old as the civilization itself. The mere fact that the
Babylonians, in 200 BC, lent money at higher rates of interest against gold and silver under
the temple’s safe custody stands proof for banking history. In ancient days, the main
function of banks was granting loans to individuals or the state in times of crisis.

Banking in India originated in the last decades of the 18th century. The first banks were
the General Bank of India, which started in 1786 and the Bank of Hindustan. The oldest
bank in existence in India is the State Bank of India, a government owned bank that traces
its origin back to June 1806 and that is the largest commercial bank in the country. The
passing of the Joint Stock Company act in 1850 greatly helped in the establishment of
many commercial banks. Later in 1921, the Imperial Bank of India and in 1935 the
Reserve Bank of India were also established. After independence in 1947, the RBI was
nationalized enabling it with broader power. The government of India nationalized 14
large commercial banks in 1969 and six more banks were added to the list in 1980

Today customers are now becoming increasingly conscious of their rights and are
demanding ever more than before. The recent trends show that most of the banks are
shifting from a “product –centric model” to a “customer –centric model” since customer
satisfaction has become one of the major determinations of business growth. In this
context, prioritization of performance and close monitoring of the customer satisfaction are
indispensable.

State Bank of India in 1955. For many years the presidency banks had acted as quasi-
central banks, as did their successors, until the Reserve Bank of India was established in
1935, under the Reserve Bank of India Act, 1934. In 1960, the State Banks of India was
given control of eight state-associated banks under the State Bank of India (Subsidiary
Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian government
nationalized 14 major private banks; one of the big banks was Bank of India. In 1980, 6
more private banks were nationalized. These nationalized banks are the majority of
lenders in the Indian economy. They dominate the banking sector because of their large
size and widespread networks.
OUR MISSION :
We will be prompt, polite and proactive with our customers
.We will speak the language of Young India.
We will create products and services that help our customers achieve their goals.
We will go beyond the call of duty to make our customers feel valued.
We will be of service even in the remotest part of our country.
We will offer excellence in services to those abroad as much as we do to those in India.
We will imbibe state-of-the-art technology to drive excellence.

OUR VALUES :
We will always be honest, transparent and ethical.
We will respect our customers and fellow associates.
We will be knowledge driven.
We will learn and we will share our learning.
We will never take the easy way out.
We will do everything we can to contribute to the community we work in.
We will nurture pride in India.

OUR VISION :
To be the most trusted and preffered finance provider.
My SBI
My customer first
First in customer satisfaction.

Banking services by SBI :

State Bank of India (SBI) is the largest public sector banks in India. It was the first bank
established in India as Bank of Calcutta in 1806. Headquartered in Mumbai, the bank has
over 24,000 branches, 59,000+ ATMs and 195 foreign offices across 36 countries after the
merger of its 5 associate banks and Bhartiaya Mahila Bank (as on 1st April, 2017). SBI
offers a plethora of products and services such as savings account, credit cards, fixed
deposits, home loan, personal loan, debit card, loan against property, car loan, gold loan
and more. There are different types of accounts are maintained,  Savings Account 
Fixed Account  Current Account Loans provided by SBI are, 
Home loan 
Educational loan 
Property against loan 
Two Wheeler loan .

2 REVIEW OF LITERATURE

1. The study of the level of customer satisfaction and marketing techniques in both private
and public sector banks in India. It revealed six factors of customer satisfaction in public
sector banks , routine
operations, price, situational environmental technology and interaction. But in private banking se
ctor, they found seven factors in total, having staff factors as the top ranked and situational
factors as well as the lowest ranked items. Instead of price factor Aurora and Malhotra A
study on customer satisfaction banking services of state bank of india

2) Customers are now demanding multiple channels through which they can interact with their
providers including.

(i) Face to face contact

(ii) Phone

(iii) Websites e-mail mobile device etc.

Which has forced the banking sector to explore new distribution channels, so that ordinary
customer which have more information about multiple banking products than even before. This
is aimed not only to present the customer from taking their business elsewhere but also to ensure
that they are offered the product and services that are most appropriate and most likely to result
in new revenue for the bank.
DR. K.ALAGARSAMY*; S.WILSON. A STUDY ON CUSTOMER BEHAVIOR
TOWARDS BANKING SERVICES WITH SPECIAL REFERENCE TO PUBLIC SECTOR
BANKS IN SIVAGANGAI DIST.

3) It carried out a study on customer satisfaction in public and

private banks of India. Private Bank managers maintain better personal relationship with custom
ers than the public bank managers and this factor determines the customers’ satisfaction to a
large extent.

4) in their research show that customer satisfaction in banking depended on the

customers’relationship with officer or manger rather than the bank they represented. Further this
study shows that the attitude of bank officers or managers and their relationship with customers
lead to customer retention and satisfaction

Tyler K and Stanley A Study on Customer’s Satisfaction towards

Banking Services of State Bank of India in Kanyakumari District

5) Analysed the relationship among service quality, customer satisfaction and customer
retention in Lakshmi Vilas Bank. It addresses whether the dimensions of service quality impacts
customer satisfaction which eventually leading to customer retention. Correlation was used to
analysed the relationship among service quality, customer satisfaction and customer retention.
Service quality and customer satisfaction have a positive correlation with customer retention.
Hence, the bank provides quality services and also highly satisfies and retains their customers.

Aravmudhan, V Customer’s satisfaction towards banking services of state bank of India in

Bareilly district Uttar Pradesh

6) if we talk about banking sector or industrythere positive relationship between technology and
customer satisfaction. Theyalso statedthat satisfaction of customers is not merely introducing
innovative products and services rather itis much more than that. They also found that if the bank
wants to become the market leader inthe competitive environment it must use the innovation
approach in all the aspects like productsand services. Also there is a significant relationship
between technological innovation and cost.

Ameme, B., & Wireko, J t Customer Satisfaction trends in Banking Industry

7) customers are more loyal towards those banks who arefacilitating internet banking services.
Also good brand image build relationship between banksand customer and enhance the customer
loyalty toward bank. He also concluded that those banksthat are giving the internet banking
services to their customers, loyalty of those customers aremore towards the banks. Rahi, S.v
Relationship between service quality and customer satisfaction

8) customer satisfaction majorly depends on the provision of anapproach for the manager so that
higher customer satisfaction for the future could be obtained bythe bank. Also in his research he
used the demographical characteristics of the customers toknow about the satisfaction level of
the customers Mishra A The Impact of E-Banking Service Quality on Customer
Satisfaction:

9) research findings suggests that onlinebanking positively influences customer perception. So

bank management focus should be ongood customer service quality in terms of reliability,
responsibility, tangibility and empathic.

This study was also found to be significant that online information system quality is
veryimportant predictor of overall banking service quality. Rod, M., Ashill, N. J., Shao, JHow
customers are changing the banking industry

10) It is very important to have good relations with the customers which leads to increase in
business. Also in there research they stated that satisfaction of customers is depends on service
policy satisfaction,on accessibility and on the front line employee satisfaction. So positive
relationships with thecustomers always lead to financial success to the bank for long run
Esteban, Á.Consumer Behavior in Banking.

11) Aayasha Nawaz (2017) evaluates the customers’ satisfaction towards the banking services
rendered by the SBI in Bareilly District Uttar Pradesh. The researcher conducted a literature
search on banking services of SBI interviewing of its 150 customers (105 Males and 45 Females)
and thoroughly scrutinized how it caters to the banking needs of the inhabitants of Bareilly
district Uttar Pradesh. The study also focused on various factors that determine the customers’
satisfaction like employees’ behavior, banking services, banking performance, infrastructure
facility and other value-added services. The analysis was made by the using various tools like
percentage analysis. The result showed that there was a significant relationship between the
variable of customer satisfaction and banking services of the SBI and the customers have high
satisfaction with bank Service.

Santhiyavalli (2011) examined the Customer service is an integral part of any organization. It is
essential to identify the input success factors in conditions of customer satisfaction so as to
endure the intense competition and increase the market share. The concept of interior banking
has made anywhere and anytime banking a reality. Along with technology, banking services
comprise also evolved and the delivery of different banking products is conceded out through the
medium of high technology at a fraction of the cost to the customer. In this situation, the service
quality of the State Bank of India by identifying the major factors responsible for customer
satisfaction. To support the objective of the study, the SERVQUAL technique based on the
model .

ItisseenasakeyperformanceindicatorwithinbusinessandisoftenpartofaBalancedScorecard.Inacomp
etitivemarketplacewherebusinessescompeteforcustomers,customersatisfactionisseenasakeydiffere
ntiatorandincreasinglyhasbecomeakeyelementofbusinessstrategy."Withinorganizations,customers
atisfactionratingscanhavepowerfuleffects.Theyfocusemployeesontheimportanceoffulfilling
customers’expectations.Furthermore,whentheser
atingsdip,theywarnofproblemsthatcanaffectsalesandprofitability....Thesemetricsquantifyanimport
antdynamic.Whenabrandhasloyalcustomers,itgainspositiveword-of-
mouthmarketing,whichisbothfreeandhighlyeffective."Therefore,itisessentialforbusinessestoeffect
ivelymanagecustomersatisfaction.Tobeabledothis,firmsneedreliableandrepresentativemeasuresofs
atisfaction."Inresearchingsatisfaction,firmsgenerallyaskcustomerswhethertheirproductorserviceh
asmetorexceededexpectations.Thus,expectationsareakeyfactorbehindsatisfaction.Whencustomers
havehighexpectationsandtherealityfallsshort,theywillbedisappointedandwilllikelyratetheirexperie
nceaslessthansatisfying.Forthisreason,aluxuryresort,forexample,mightreceivealowersatisfactionra
tingthanabudgetmotel

—
eventhoughitsfacilitiesandservicewouldbedeemedsuperiorin'absolute'terms."Theimportanceofcus
tomersatisfactiondiminisheswhenafirmhasincreasedbargainingpower.Forexample,cellphone
planproviders,suchasAT&T
andVerizon,participateinanindustrythatisanoligopoly,whereonlyafewsuppliersofacertainproductor
serviceexist.Assuch,manycellphoneplancontractshavealotoffineprint
withprovisionsthattheywouldnevergetawayiftherewere,say,ahundredcellphoneplanproviders,beca
usecustomersatisfactionwouldbewaytoolow,andcustomerswouldeasilyhavetheoptionofleavingfor
abettercontractoffer.

2.Purpose:

Their principal use is twofold:"

1 "Within organizations, the collection, analysis and dissemination of thesedata send a message
about the importance of tending to customers andensuring that they have a positive experience
with the company’s goods and

services."

2 "Although sales or market share can indicate how well a firm is performingcurrently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make
further purchases in the future.

3.Construction:

"Customer satisfaction is measured at the individual level, but it isalmost always reported at an
aggregate level. It can be, and often is, measuredalong various dimensions. A hotel, for example,
might ask customers to ratetheir experience with its front desk and check-in service, with the
room, with the amenities in the room, with the restaurants, and so on. Additionally, in aholistic
sense, the hotel might ask about overall satisfaction 'with your stay.'The usual measures of
customer satisfaction involve a survey with a set of statements using a Likert Technique or scale.
The customer is asked to evaluate each statement and in term of their perception and expectation
of performance of the organization being measured. Their satisfaction is generallymeasured on a
five-point scale.

Customer Satisfaction :
Introduction:

Customer‟s satisfaction is measured at the individual level, but it is almost

always reported at an aggregate level. Customer satisfaction, a term
frequently used in marketing is a measure of how products and services
supplied by a company meet or surpass customer expectation. Today
customers are now becoming increasingly conscious of their right and are
demanding ever more than before. The recent trends show that most of the
banks are shifting from a „product-centric model‟ to a Customer-centric
model‟ since customer satisfaction has become are of the major
determination of business growth. The study will provide information about
the satisfaction level of customers of SBI and banking sectors and will be help
for framing new policies relating to the customers.

As Kotler and Keller, (2012) mentioned that satisfaction is the feeling of pleasure versus
disappointment resulted from the comparison between product’s perceived performance to
expectations. As for ways for measuring satisfaction, they mentioned several factors that
identify satisfied customer behavior such as repurchase company’s products, buys more as the
customer wants.

The dictionary meaning of „customer‟ is a person who buys goods and services. So, customer
services involve three entities i.e., seller, buyer and goods/services. Customer service is,
therefore, encapsulation of all these entities for the mutual benefits so as to increase the value of
all the participants in the process of buying and selling.
As per Reserve Bank of India‟s (RBI) definition, the customer of a bank may include:
A person or entity that maintains an account and/or has a business relationship with a bank;

One on whose behalf the account is maintained (i.e. the beneficial owner);

Beneficiaries of transactions conducted by professional intermediaries, such as stock brokers,

Chartered Accountants, solicitors, etc., and

Any person or entity concerned with a financial transaction, which can pose significant
reputational or other risk to the bank, e.g., issue of a high value demand draft as a
singletransaction.

The Talwar Committee (1977) deserved that the main purpose of banking is “to create and
deliver customer – needed services in a customer satisfying manner”. This implies that there are
two elements that are required for the banking services, viz., creating and delivering services
While creation indicates the creation/introduction of new technology in services, carrying out
these services effectively constitutes the delivering of services. These two elements greatly
determine the level of satisfaction of the customers.

According to Kotler and Keller (2009), “customer satisfaction is a person‟s feeling of pleasure or
disappointment resulting from comparing a products perceived performance in relation to his or
her expectation.” Rao (2008) draws the basic formula of customer satisfaction,

Customer satisfaction = Customer perception of the service received - Customer expectation of

service.In this way it is easy to generalize that if the perception of the service received exceeds
the expectation of the service, customer‟s satisfaction will be positive. On the other hand if the
perception of the service received is less than the level of expectation of the service, it would
lead to customer dissatisfaction. But customer satisfaction is highly effected by the other factors
like experience, purchase decision, service provider, price, etc. There is a substantial body of
empirical literature that establishes the benefits of customer satisfaction for firms. It is well
established that satisfied customers are key to long-term business success. Companies that have a
more satisfied customer base also experience higher economic returns. Consequently, higher
customer satisfaction leads to greater customer loyalty; which in turn leads to higher future
revenue.
Indian banking industries is facing various kind of ups and downs in the current scenario. There
are some specific reasons like lowering of entry barriers, increasing product line of banks and
non-banks, etc. Since the financial reforms, bank are also facing huge competitive pressure
therefore it is inevitable for the banks to maintain loyal customers based, besides banks are trying
to make strategies towards customers satisfaction and loyalty through improved service quality
to achieve and improve their marker and profit position.

Customer satisfaction is an ambiguous and abstract concept and the actualmanifestation of the
state of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on anumber of both psychological and physical variables which
correlate withsatisfaction behaviors such as return and recommend rate. The level ofsatisfaction
can also vary depending on other options the customer may haveand other products against
which the customer can compare the organization's products.

Customersatisfaction,atermfrequentlyusedinmarketing,isameasureofhowproductsandservicessupp
liedbyacompanymeetthecustomerexpectation.Customersatisfactionisdefinedas"thenumberofcusto
mers,orpercentageoftotalcustomers,whosereportedexperiencewithafirm,itsproducts,oritsservices(r
atings)exceedsspecifiedsatisfactiongoals."BankinginIndia

originatedinthelastdecadesofthe18thcentury.ThefirstbankswereTheGeneralBankofIndia,NOWwhi
chstartedin1786,andBankofHindustan,whichstartedin1790;botharenowdefunct.Theoldestbankine
xistenceinIndiaistheStateBankofIndia,whichoriginatedintheBankofCalcutta
inJune1806,whichalmostimmediatelybecametheBankofBengal.Thiswasoneofthethreepresidencyb
anks,theothertwobeingtheBankofBombay
andtheBankofMadras,allthreeofwhichwereestablishedunderchartersfromtheBritishEastIndiaCom
pany.FormanyyearsthePresidencybanksactedasquasi-
centralbanks,asdidtheirsuccessors.Thethreebanksmergedin1921toformtheImperialBankofIndia.K
eywords:
BankinghistoryinINDIA,Conclusion,Customerssatisfaction,ListofCommercialBanks,ResearchMe
thodology.

Needforstudy

CustomerSatisfactionisveryessentialforeveryServicetosurviveinthemarket.CustomerSatisfactionc
ouldhelpthebusinessbyplacingfuturedemandtothecompany.CustomerSatisfactiongivespassingthe
wordsofmouthtootherpotentialcustomers.CustomerSatisfactionisveryImportantforthecompanytot
akecareofthecustomersandmakethemtosatisfy.

CUSTOMER SERVICE SYSTEM :

Customer service is the provision of service to customer before And after a purchase .

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

the level of customersatisfaction

that is, the feeling that a product or service has met the customerexpectation." Its importance
varies by products, industry and customer;defective or broken merchandise can be
exachanged ,often only with the receipent and within a specific time frame.

Retail stores often have a desk or counter devoted to dealingwith returns, exchanges and
complaints, or will perform related functions at the point of sale; the perceived success of such
interactions being dependent onemployees "who can adjust themselves to the personality of the
guest,"according to Micah Solomon quoted in Inc. Magazine. From the point of viewof an
overall sales process engineering effort, customer service plays animportant role in an
organization's ability to generate income and revenue. Fromthat perspective, customer service
should be included as part of an overallapproach to systematic improvement. A customer service
experience canchange the entire perception a customer has of the organization.

Service Quality and its Different Models

A service is an act or performance offered by one party to another. They are economic activities
that create value and provide benefits for customers at specific times and places as a result
bringing desired change. It can be said that service is a transaction where no physical goods are
transferred. Service quality means a form of an attitude, related but not equivalent to satisfaction
that results from the comparison of expectation with performance. The customers generally use
certain criteria to evaluate service quality by examining reliability, responsiveness, assurance,
empathy and physical aspects. The aim of providing quality services is to satisfy customers.
Measuring service quality is a better way to dictate whether the services are good or bad and
whether the customers will or are satisfied with it.

According to business dictionary “Service quality means an assessment of how well a delivered
service conforms to their client‟s expectation”. Reeves and Bednar (1994) defined service
quality as excellence, value, conformance to specifications and meeting or exceeding
customers‟ expectations. Service quality is defined as the degree of discrepancy between
customers‟ normative expectations for service and their perceptions of service performance
(Parasuraman et al., 1985). Customer always wants good services from their service provider.
But from above definition we can say that delivered service will become as the quality service if
it meets the customer expectation. But customer expectation depends on his perception which
varies from person to person. So service quality is a comparison between perceived expectation
of a service and perceived performance of a service. As per Parasuraman, Zeithmal and Berry
(1985) the service quality may be expressed as:

Service quality=Perception - Expectation

Therefore if the customer gets same services as they expect then difference will be zero, we can
say service quality is very good. If the customer does not get the expected services then service
quality is bad. Customer perception depends on various factors like age, gender, occupation,
technological changes, etc. which again influence the service quality.

Service Quality Models

Numbers of service quality model have been developed by different researchers around the
world like Gronroos model, GAP Model, Attribute Service Quality Model (Haywood-Farmer,
1988), Alignment Model (Berkley and Gupta 1994), SERVPERF Model, and SERVQUAL
Model. Among these SERVQUAL model is one of the popular model that has been used
globally for measuring service quality of different institutions including banking sector. In this
study we have applied SERVQUAL model for measuring the service quality and customer
satisfaction among the selected customers of State Bank of India.SERVQUAL is a well-known
multidimensional research instrument for measuring and evaluating service quality in any
service sector. This model perfectly covers the dimensions thatare considered by a customer in
evaluating quality of service in a service sector. The objective of this survey instrument is to
determine the value that the service sector is currently delivering to the customers and the value
that the customer expects. The SERVQUAL model of measuring the scale of quality in service
was developed by Valerie Zeithaml, Parasuraman and Len Berry in 1985. In this method data are
collected via surveys of a sample of customer. In these surveys the customer responds to series
of questions based around a number of key service dimensions .The methodology was originally
based around 5 key dimensions. The questionnaire consists of matched pairs of items; 22
expectation items and 22 perceptions items, organized into five dimensions which are believed
to align with the consumer‟s mental map of service quality dimension. The 5 dimensions that
are used in this model are:

 Reliability: The ability to perform the promised service dependably and accurately.

Assurance: The knowledge and courtesy of employees and their ability to convey trust and
confidence.
Tangible : The appearance of physical facilities, equipment, personnel and communication
materials.
Empathy: The provision of caring, individualized attention to customers.
Responsiveness: The willingness to help customers and to provide prompt service.

Relation between Customer Satisfaction and Service Quality :

Customer satisfaction and service quality are inter-related. The higher the service quality, the

higher is the customer satisfaction. Many agree that in the banking sector, there are no
recognized standard scales to measure the perceived quality of a bank service. Thus, competitive
advantage through high quality service is an increasingly important weapon to survive. As a
process in time, service quality takes place before, and leads to overall customer satisfaction.
Service quality has been found to be an important input to customer satisfaction. Service quality
is one of the important areas of business especially for service industries like bank to retain their
customer and to attract new one. Poor customer service could cause a banking business loss of
millions of dollars and also „its credibility‟. Good customer service and service quality is what
attracts people to a business. When customers are pleased they become long-term assets of the
bank. Building strong customer relations can tie a customer and a business together. When
customers are satisfied they feel well treated and are willing to treat the Customer.

Statement of the problem:

In the current competitive world banks have to struggle their might to offer the best of the
customer satisfaction through various innovative strategies in order to service in industry.
Banking industry is passing through a challenging phase. The demonetization policy introduced
by the government has affected the banking industry to a great extent. The banking sectors facing
lot of challenges due to competition, technological developments, changing customer‟s needs
and policies of government. In this competitive and fast changing era, it becomes imperative for
a bank to satisfy the needs of the customers. The banks are spending a lot of time and energy to
frame polices about customer satisfaction. The study would stand as a sincere attempt to
evaluate customer satisfaction of SBI.

3 Gaps of Research papers

Above the study discussed about the fact of the different between perceptions and
expectations is taken as the gap. There are two interrelated elements equally important to
deliver various quality service are tangibles,reliability,responsibility & empathy of
customers expectations are the desires and wishes that customer make prior to the service
and also discusses about the way of how to achieve these goals in the future during this
pandemic COVID -19 which has caused many dangerous situations for the life .where the
perceptions are the assessments of the services expectations are generally belief of what
should be and perceptions are formed based on the experienced services believes the
smaller the gap between expectation and perceptions are the better service quality will be
unknown about customer expectation and how to solving the problem of customer
satisfaction of any banking sector in our country.

4 Objectives of the research

1. To measure the level of customer satisfaction towards banking services provided by the
SBI in the study area .
 2. To analysis the demographic profile of the sample respondents of the study area

3. To analysis the types of services offered by the banks.

4. To suggest the strategies for the bank to improve the level of customer satisfaction.

5. TostudytheSatisfactionofcustomerstowardsthe―STATEBANKOF

INDIA

6 .Toidentifythefactorsthatinfluencesthecustomerbehaviorof―STATE

BANKOFINDIA.

7 ToevaluatethemeritsandDemeritsof―STATEBANKOFINDIA

8. Togivetheappropriatesuggestionsfortheimprovementof―STATEBANKOFINDIA

5 Formulation of Hypothesis
Formulation a hypothesis requires a specific testable and predictable statement driven by
theoretical guidance and prior evidence a hypothesis can be formulated in various research
designs .in experimental setting researchers compare two or more groups of research
participants to investigate the differences of the research outcome.

1. Avoid judgmental world in your hypothesis value judgmental are subjective and are not
appropriate for a hypothesis .you should strive to be objective therefore the use of personal
opinion is to be avoided.

2. Be sure that each term in your hypothesis is clearly understood and defined do not deal
in generalities or assume that the reader know the meaning of a technical term

3. H0(Null Hypotheses) & H1(Alternative Hypotheses) There is a significance between the

pre and post
6 RESEARCH METHODOLOGY
Data collected was primary sources like literature reviews and various other report Primary data
was collected by preparation of structured questionnaire.The questionnaire was checked by
qualified professors in the academic field before the survey began .
Research methodology is the systematic method/process dealing with identifying
problem,collecting facts or data, analyzing these data and reaching at certain conclusion either in
the form of solutions towards the problem concerned or certain generalization for some
theoretical formulation.Research methodology is about ‘customer satisfaction towards the
services provided by SBI.

American Customer Satisfaction Index (ACSI) is a scientificstandard of customer satisfaction.

Academic research has shown that thenational ACSI score is a strong predictor of Gross
Domestic Product (GDP)growth, and an even stronger predictor of Personal Consumption
Expenditure (PCE) growth. On the microeconomic level, academic studies have shown thatACSI
data is related to a firm's financial performance in terms of return oninvestment (ROI), sales,
long-term firm value (Tobin'sq , cash flow), cash flowvolatility, human capital performance,
portfolio returns, debt financing, risk,and consumer spending.The Kano model is a theory of
product development andcustomer satisfaction developed in the 1980s by Professor Noriaki
Kano thatclassifies customer preferences into five categories: Attractive, One-Dimensional,
Must-Be, Indifferent, Reverse. The Kano model Offers some insights Into a product attributes
which are perceived to be important for a customers.

7. Data collection
Data collection is a process of collecting information from all the relevant sources to find out the
answers to the research problem, test the hypothesis and evaluate the outcomes. Here during this
research, both primary and secondary method of data collection is used to analysis the consumers
behaviour and knowledge on the banking services in the selected area. For analysis and
interpretation the tool used was Chi – Square test.
7.1 Primary Data:
In primary data collection, you collect the data yourself using methodssuch as questionnaires.
The key point here is that the data you collect is uniqueto you and your research and, until you
publish, no one else has access to it.There is methods of collecting primary data and the main
methods include:Questionnaires
7.2.iii Secondary Data:
All methods of data collection can supply quantitative data (numbers,statistics or financial) or
qualitative data (usually words or text). Quantitativedata may often be presented in tabular or
graphical form

7.3 Research design :

Research design is considered as a "blueprint" for research, dealingwith at

least four problems: which questions to study, which data are relevant,what
data to collect, and how to analyze the results. The best design depends onthe
research question as well as the orientation of the researcher.

7.4. Type of Research:

Explanatory research is research conducted in order to explain any behaviour

in the market. It could be done through using questionnaires,
groupdiscussions, interviews, random sampling, etc.

7.5.Type of survey:

Simple random sample technique tools.

7.6. Sample size:

Samples of 120 customers for collecting the data.

ResearchInstrument:7.iQuestionnaires.
TheQuestionnaireguidewasusedespeciallytomakethestudycompleteandobjective.Theinformationg
atheredintheQuestionnairemethods,arequestionsthatareansweredinobjectivetype.

7.iiBarCharts:

Abarchartorbargraphisachartwithrectangularbarswithlengthsproportionaltothevaluesthattheyrepre
sent.Thebarscanbeplottedverticallyorhorizontally.Barchartsareusedformarkingcleardatawhichhas
discretevalues.Someexamplesofdiscontinuousdatainclude'shoesize'or'eyecolor',forwhichabarchart
isappropriate.

8.SampleUnits:

TheRespondentsaredifferentcategorieswithrespecttotheiroccupations

8.iDataProcessing:

ItwasdonewithalmostcasetoensurevalidandreliableresultsofDataanalysis.Thetabulationwasmaded
ependingonthenatureandsizeofthedataobtained.Dependingonthenatureofthequestions,thedatawasp
rocessedusingpercentageanalysisandweightedaveragetoconsolidatetheresults.

8.iiScopeoftheStudy

Thestudyhasbeenconductedonbehalfof―STATEBANKOFINDIA

.Thestudycoverstheserviceprovidersandusersof―STATEBANKOF

INDIA.

ThestudyhasputforwardtheCustomersaswellasacceptabilitybehaviorfortheservices.

Thescopeofthestudyistofindoutthe―CustomerSatisfaction.

* Sources of Primary data

Primary data collection through questionnaire in 20 April 2021

The above chart shows about the demographic profile of the respondents were the sample was
collected with 21 respondents who are customers of SBI in india analyzing about the researcher
have selected 85.7% of the respondents are male categories and 14.3% of them female
categories.

In analyzing about the age of the more respondents are from 21 to 30 years with 32%.
A total 21 respondents were married which showed a 0 % and the single showed100%
respondents

In analyzing about educational level of the respondents, most of them which showed a 52.4% in
graduation,38.1% in post graduation,and 9.5% showed Higher secondary
Among the occupational categories,71.4% student,19% unemployed people and

9.5% people are employed

The Annual income wise classification showed that the most of respondents i.e 90.5% people
annual income below 100000 5% belong to 1000000-5000000 and 5% belong to above 500000
In this above chart in kinds of deposits account 95.2% customer opening in saving account and
4.8% customer are open in current account

In this above pie chart no of years experience in holding account 38.1% people are no of
experience 1-2 years ,33.3% people are 2-4years experience and 23.8 % people have 4-6 years
experiences
In this chart 90.9% people have reason foe preferring deposit schemes of the good banking
services and 5% people are prefer for high interest rate and 5% people reason for preferring
deposits schemes for near the house for work

In this above chart 1005 people are overall satisfaction services from SBI Bank
In this above chart there are various kinds of loan likes 40.9% people not taken a any types loan
22.7% people are prefer education loan ,18.2% people prefer of personal loan and 9.15 people
taken a car loan from SBI bank

In this above chart 77.3 % people are satisfied overall satisfaction level of banking loan service
And 13.65 people are highly satisfied from banking loan services and 9.1 % are dissatisfied from
banking loan services

Demographic No of Percentage
variables respondents

Sex

Male 75 60

Female 50 40

Age

Below 25 years 22 17.6

25 to 35 year

36 to 45 years 34 27.2

45 to 55 years 40 32.00

Above 55 years 19 15.7

10 8

Married 83 66

Unmarried 42 34

8. Analysis the data

The methods of analysis the data mentioned in the primary data collection of
interviews ,survey,group discussion and observation are the most widely and commonly used a
qualitative data collection through find out your research objective,hypothesis,and data
collection in the research papers.

SWOT Analysis of SBI :

SWOT Analysis of State Bank of India focuses on (S) Strengths, (W) Weakness, (O)
Opportunities, and (T) Threats. Internal Factors in the SWOT Analysis are Strengths and
Weaknesses and External Factors in the SWOT Analysis are Opportunities and Threats.

SWOT Analysis is a proven management tool that helps organizations such as State Bank of
India (SBI) to assess the market of SBI and its success against rival companies. State Bank of
India (SBI) has been one of the leading Stationery companies.

SBI does have its origins in 1806, but was later converted under different names, and finally SBI
was created in Parliament on May 1955. Around the year 1959, SBI took over 8 state-owned
banks and, since then, has started to develop in the service of citizens at various economic rates.

Strength :

•SBI is India’s biggest bank in terms of market share, sales, and reserves.

•SBI has been ranked in the Fortune Global 500 list.

•According to recent reports, the bank has more than 22141 branches and 58555 ATM’s.

•The bank is active in 36 countries involved in currency traders around the world.

•SBI has the first-mover edge of commercial banking facilities.

•SBI recently updated its vision and mission statements indicating an indication of
inclination towards new-age banking services.

•State Bank of India has a huge employee base of 257252 employees.

•SBI has revenue of 143306 Crore rupees (20 billion US Dollars).

•The owner of the State Bank of India is the Government of India.

•SBI has many subisidaries:

SBI Cards

SBI Life Insurance

Jio Payment Bank

Yes Bank

Andhra Pradesh Grameena Bank

Kavenri Grameena Bank

Vikas Bank.

Weakness :

•The lack of adequate technology-driven infrastructure relative to private banks

•Employees are hesitant to fix issues efficiently due to better job stability, and the
turnaround period for clients is lengthy relative to private banks.

•The banks pay a large sum on their leased houses.

•SBI has the largest number of employees in the banking sector, which is why the bank
spends a considerable amount of its income on employees ‘ salaries.

•Despite the modernization, the bank still conveys the perception of the traditional bank to
new-age clients.

•SBI does not draw corporate payroll accounts, and any government employee’s payroll
accounts are now transferred to private banks for ease of service, unlike before.

Opportunities :

•The merger of SBI with five other banks, namely the State Bank of Hyderabad, the State
Bank of Patiala, the State Bank of Bikaner and Jaipur, the State Bank of Travancore and
the State Bank of Mysore, is at the approval stage.

•Mergers would result in a rise in market share to protect its number one spot.

•SBI aims to expand and invest in foreign activities due to a strong inflow of capital from
the Asian economy.

•As some of the banking activities are yet to be modernized, there is a greater opportunity
for leveraging new technology and applications to enhance customer ties.

•Young and talented graduate and B school pools are on the rise to open new horizons for
the so-called “old government bank”
Threats :

•Net profit of the year decreased from 9166.05 in the year 2010 to 7.370.35 in the year 2011.

•This indicates that the market share of its close rival ICICI is that.

•Other private banks, such as HDFC, AXIS bank, etc.

•FDIs permitted in the banking sector was increased to 49%, which is a major challenge to
SBI as citizens continue to turn to international banks for better banking services facilities
and technology.

•Other government banks, such as GNP, Andhra, Allahabad Bank, and Indian Bank, are
coming up.

•Customers prefer to switch to private banks and financial service providers for loans and
mortgages, as SBI involves strict verification procedures and takes a long time to process.

Liberalization:
In the early 1990s, the then Narasimha Rao government embarkedon a policy of liberalization,
licensing a small number of private banks. Thesecame to be known as New Generation tech-
savvy banks and included GlobalTrust Bank (the first of such new generation banks to be set up),
which lateramalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTIBank),
ICICI Bank and HDFC Bank. This move, along with the rapid growth inthe economy of India,
revitalized the banking sector in India, which has seen rapid growth with strong contribution all
three sector of banks named governmwnt bank ,private bank and Foreign sector banks.

The next stage for the Indian banking has been set up with the proposedrelaxation in the norms
for Foreign Direct Investment, where all ForeignInvestors in banks may be given voting rights
which could exceed the presentcap of 10%,at present it has gone up to 74% with some
restrictions.The new policy shook the Banking sector in India completely. Bankers, till thistime,
were used to the 4-6-4 method (Borrow at 4%; Lend at 6%;Go home at 4)of functioning. The
new wave ushered in a modern outlook and tech-savvymethods of working for traditional banks.
All this led to the retail boom inIndia. People not just demanded more from their banks but also
received more.Currently (2010), banking in India is generally fairly mature in terms of supply,
product range and reach-even though reach in rural India still remains achallenge for the private
sector and foreign banks. In terms of quality of assetsand capital adequacy, Indian banks are
considered to have clean, strong andtransparent balance sheets relative to other banks in
comparable economies inits region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the IndianRupee is to
manage volatility but without any fixed exchange rate-and this hasmostly been true.With the
growth in the Indian economy expected to be strong for quite sometime-especially in its services
sector-the demand for banking services,especially retail banking, mortgages and investment
services are expected to bestrong. One may also expect M&As, takeovers, and asset sales.In
March 2006, the Reserve Bank of India allowed Warburg Pincus to increaseits stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is thefirst time an investor has been allowed
to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% inthe private sector banks would need to be vetted by them. In recent years
criticshave charged that the non-government owned banks are too aggressive in theirloan
recovery efforts in connection with housing, vehicle and personal loans.There are press reports
that the banks' loan recovery efforts have drivendefaulting borrowers to suicide.

9. Finding & interpretation

Finding:
Most of the customers were male. Majority of the customers were in the age group of 21-30
years. Most of the customers were under graduates.
Most of the customers were unmarried. Most of the customers were students. Most of the
customers have annual income of Rs.100000 – 200000.

Majority of the customers hold savings account in a bank. Majority of the respondents have 2-3
years of experience with the same bank. Most of respondents choose deposit schemes for interest
rates offered by banks.
Majority of the respondents opined that interest rate on deposits is moderate. Most of the
customers were satisfied on overall satisfaction on bank deposits schemes .Most of the
respondents were availed loans .
Majority of the respondents are availed vehicle loans. Majority of the respondents opined that
interest rates on bank loans are moderate. Most of the respondents opined that loan processing
time is very quick .
Majority of the respondents are attracted by speed processing for loan is the reason choosing the
bank. Majority of the respondents were satisfied with the loan services.
1: 92% of the Respondents were believed that S.B.I. Bank provides all Bankingneeds.
2. Majority of the Respondents were preferred savings account when comparedwith all the
remaining mode of accounts, i.e., 67%.
3. 42% of the Respondents were believed in S.B.I. Bank provides loan Facilitiesto the customers
in an easy manner.
4. Recreation Facility given by the S.B.I. Bank was believed by 44% of theRespondents
.5. Only 38% the Respondents will aware of the list of shares in stock exchange provided by
S.B.I. Bank.
6. 65% of the Respondents were believed that S.B.I. Bank gave Core bankingfacility to the
customers.
7. Majority of the Respondents were felt that the S.B.I. Bank will not chargeunnecessarily for not
maintaining of minimum balance.
8. Majority 57%of the Respondents felt that the S.B.I. Bank provides acompetitive interest rate.
9. It is observed that 76% of the respondents felt difficulty while opening anaccount in the S.B.I.
Bank.
10. 93% of the Respondents were recommended to their friends, relatives aboutthe S.B.I. Bank.
11. Most of the Respondents were not preferred an alternate Bank instead of theS.B.I. Bank.
12. 72% of the Respondents were felt that the S.B.I. Bank will not take anyservice charge
without any cause.
13. While asking the feedback about the S.B.I. Bank services 45% of theRespondents were felt
very well on service.
14. It is observed that the 70% of the Respondents were preferred on personalized service of the
S.B.I. Bank.
15. 58% of the Respondents were felt satisfied on solving of the banking problem by the S.B.I.
Banking staff.
16. 59% of the Respondents were felt prompt service of the S.B.I. Bank.
17. Most of the Respondents were felt that the S.B.I. Bank would not restrict onmaintaining of
minimum balance is must in high.
10. Limitation of research
* The survey has been conducted only on 150 respondents.
* The accuracy of the findings of study depends upon the correctness of the responses provided
by the respondents.
* Unwillingness of some respondents to provide information is another limitation.
* Findings of this study may be influenced by personal bias of the respondents

Function of SBI

AsanagentoftheReserveBank,theStateBankperformsthefollowingfunctions:

(i)Itactsasthegovernmentsbank,i.e.,itcollectsmoneyandmakespaymentsonbehalfofth
egovernmentandmanagespublicdebt.

(ii)Itactsasthebankersbank.Itreceivesdepositsfromandgivesloanstocommercialbanks
.Italsoactsastheclearinghouseforthecommercialbanks,rediscountsthebillsofexchang
eofthecommercialbanksandprovidesremittancefacilitiestothecommercialbanks.

.OrdinaryBankingFunctions:

TheStateBankofIndiaperformsallkindsofcommercialbankingfunctions:

(i)Itreceivesdepositsfromthepublic.

(ii)Itgivesloansandadvancesagainsteligiblesecuritiesincludinggoods,billsofexchang
e,promissorynotes,fullypaidsharesofcompanies,immovablepropertyordocumentsoft
itle,debentures,etc.
(iii)Itinvestsitssurplusfundsingovernmentsecurities,railwaysecuritiesandsecuritiesof
corporationsandtreasurybills.

4.OtherFunctions:

TheStateBankofIndiaalsoperformsthefollowingotherfunctions:

(i)Itbuysandsellsgoldandsilver.

(ii)Itactsasagentofcooperativebanks.

(iii)Itunderwritesissuesofstocks,shares,debentures,andothersecuritiesinwhichitisaut
horisedtoinvestfunds.

(iv)Itadministers,singlyorjointly,estatesforanypurposeasexecutor,trusteeorotherwise
.

(v)ItdrawsbillsofexchangeandgrantslettersofcreditpayableoutofIndia.

(vi)ItbuysbillsofexchangepayableoutofIndiawiththeapprovaloftheReserveBank;itsu
bscribesbuys,acquires,holdsandsellssharesinthecapitalofbankingcompanies.

5.ProhibitedFunctions:
TheStateBankofIndiahasbeenprohibitedfromdoingcertainbusinessesbytheStateBank
ofIndiaAct:

(i)TheStateBankcannotgrantloansagainststocksandsharesforaperiodmorethansixmo
nths.

(ii)Itcanpurchasenoimmovablepropertyotherthanitsownoffices.

(iii)Itcanneitherrediscountnorofferloansagainstthesecurityofexchangebillswhosema
turityperiodexceedssixmonths.

(iv)Itcannotrediscountbillswhichdonotcarryatleasttwogoodsignatures.

(v)Itcanneitherdiscountbillsnorgrantcredittoindividualsorfirmsabovethesanctionedli
mit.

Achievements of State Bank of India:

ThefollowingarethemajorachievementsoftheStateBankofIndiaindifferentfields:

(A)GeneralProgress:

TheStateBankofIndiahasmadeatremendousprogresssinceitsinceptionin1955.
Table1showstheprogressofthebankinthefieldsofdepositmobilisation,creditexpansion
andbranchexpansion:

i.DepositMobilisation:

TherehasbeenanincreasingtrendwithregardtomobilisationofdepositsbytheStateBank
ofIndia.TotaldepositsandotheraccountswhichwereRs.226croreattheendof1955,incre
asedtoRs.1227croreattheendof1969andfurthertoRs.242828croreattheendofMarch20
01.Thus,therehasbeenabout1075timesincreaseinBankssdepositsduring1955to2001.

ii CreditExpansion:

Theprogressinthefieldofcreditexpansionhasalsobeenconsiderableovertheyears.Atthe
endof1955,totaladvancesmadebytheStateBankwereRs.106crore.Theseadvancesincr
easedtoRs.841crorein1969andRs.113590croreinMarch2001.Thisindicatesthatthereh
asbeen1072timesincreaseinadvancesduring1955to2001.

iii.BranchExpansion:
ThenumberofbranchesoftheStateBankofIndiahasalsogrownremarkablysinceitsestab
lishment.In1955,theBankhad497offices,in1969and2001,thenumberincreasedto1673
and9078respectively.

iv.PresentPositionofStateBankGroup:

BytheendofMarch2001,totaldepositsoftheStateBankGroup(i.e.,StateBankofIndiaan
ditssevenassociates)hadreachedRs.312117crore,totaladvancesgrantedbythegroupwe
reRs.150390crore,andtotalnumberofbranchesoftheGroupwas13509.

Thus,theStateBankofIndiaGroupaccountedforabout41percentofdeposits,35percento
fadvancesandabout21percentoftheofficesofallscheduledcommercialbanksinIndia.T
hepaid-
upcapitalandreservesoftheGroupwereRs.4751croreattheendofMarch1994.Netprofit
softhegroupwereRs.2222crore(Rs.1604croreoftheSBIandRs.618croreoftheassociate
branches)during2000-01.

v.Profits,EfficiencyandCapitalAdequacy:

Overtheyears,theSBIcontinuedtoshowbetterperformanceintermsofprofits,efficiency
andcapitaladequacy.ItrecordedanetprofitofRs.1604crorefortheyear2000-
01againstRs.832crorefor1995-96,indicatinganincreaseof48%.

Themajorcontributingfactorsforimprovednetprofitswerehigherinterestincomefroma
dvancesaswellasinvestmentoperations,loweroperatingcostandbetterperformanceoff
oreignoffices.TheBankscapitaltorisk-weightedassetsratiowas12.79%during2000-
01.Thisiswellabovetheinternationallyacceptedratioof8%.NetNPAoftheBankwas6.0
3%inMarch2001against6.41%inMarch2000.
vi.InternationalBanking:

Atpresent(March2001),theSBIhasanetworkof52overseasofficeswiththeiroperationss
preadover31countries.Theseforeignofficesmainlycatertotheneedsofthecountrysforei
gntradeandprovideforeigncurrencyresourcestotheIndiancorporates.

During2000-
01,theforeignofficesoftheSBIearnedanetprofitorRs.248crore.Thedepositsandadvanc
esoftheBanksforeignofficeswereRs.7932croreandRs.14797crorerespectivelyattheen
dofMarch2001.

vii.TechnologyUpgradationandConsumerServices:

TheStateBankofIndia(SBI)hastakensignificantinitiativesinthefieldsoftechnologyup
gradationandbetterconsumerservices.

Atpresent(March2001),thefollowingmajorfacilitiesintheseareasareavailable:

(a)2555computerisedbranchesoperatingin620centresandcovering76%oftheBanksdo
mesticbusiness;

(b)Networkof100ATMsin8cities;

(c)Internetbankingcovering35branchesbyMarch2002;

(d)360VSATslinking130centres;
(e)Tele-banking;

(f)Remotebankingforcorporates;

(g)StateBankelectronicpaymentsystem(STEPS)tofacilitateinstantaneouselectronictr
ansferoffunds;

(h)ElectronicDataInterchangeprojectsforhandlingcustomertransactionsatairportsand
seaports;

(i)Introductionofcomputerisedprintingofdrafts;

(j)ElectronicNostraAccountReconciliation(ELENOR)enablingonlinereportingoffor
extransactionsfrom444forexintensivebranches;

(k)Extendedbusinesshours(7to12hours)and7daysbanking.

BENEFITS:
Progresssince2001:

Table-2showstheprogressandperformanceoftheStateBankofIndiasince2001:

(i)Paidupcapital&reservesofthebankincreasedfromRs.15224croreon2001-
2toRs.64986crorein2010-11.

(ii)DepositsofthebankincreasedfromRs.270560crorein2001-
2toRs.933933crorein2010-2011.

(iii)AdvancesofthebankincreasedfromRs.120806crorein2001-
2toRs.756720croreIn2010-11.

(iv)Numberofdomesticofficesofthebankincreasedfrom9034in2001-
02to13542in2010-11andofforeignofficesincreasedfrom51in2001-02to1565in2010-
11.

(v)NetprofitsofthebankincreasesfromRs.2432crorein2001-
02toRs.8265crorein2010-11.

(vi)Capital-adequacyratiomovedfrom13.4%in2001-2to10.7%in2010-11.

(vii)NetNPAtonetadvancesratiohasfallenfrom5.6%in2001-2to1.6%in2010-11.
Scope of research

The present study is undertaken from the view points of the customers of public and private
banks in panjab district. The banks are plan to achieve business growth by satisfying the
expectation of their customers. So the banks are providing innovative services to attract the
customers. In this context, the study will throw light on level of satisfaction on banking services.

1.The study is conducted on behalf of the customers of SBI.

2.The study is conducted to know the customer preference towards the choosing the services,
the awareness on the various services provided by banks, the frequency of services used.
3.The study has put forward the Customers as well as acceptability behavior for the services.
4.The study defines about their satisfaction level of towards the services provided by the SBI in
the selected area.

SUGGESTIONS
From above finding SBI is providing services is Online transactions. That is not much known to
the customers,therefore the Bank management should take efforts to make awareness
amongthe general public about online facilities
.2. Since 73% of the customers using savings account deposits in every Bank. Sothe Bank
management should think of introducing new schemes regardingsavings accounts and
marketing those to the customers
.3. While discussing with the customers about suggestions they want moreinformation on loans
with interest rates provided by the Bank. So the Bankshould employ some contact persons
through a toll free number
.4. Since 23% of the Respondents were dis-satisfy on transactions at Bank andtime consumed
too. To avoid this problem the Bank management should recruitmore employees.
5. Majority of the customers will prefer online bill payment facility provide byS.B.I. Bank so the
management should give low service charges and offering prices on Online Bill Payments
.6. Advertisement of S.B.I. Bank is very less when compared with thecompetitors. It may leads
to switching on other Banks. To overcome the Bankmanagement should promote more
advertisements through variousadvertisement vehicles.

7. Most of the customers felt that opening of an account is very difficult in theBank. So the
management should take care on new customers as well as oldcustomers
8. Only24% of the customers will aware of the availability of shares in stockexchange. So the
management should display their types of securities likeequity shares, bonds, debentures etc in
their branches
.9. The discussions of the customers, mostly to expanding of the branch for theirconvinence. The
management try to expand the branch for customers’
convenience.

10. The banker should encourage and extended more number of loans to their customers.

11. State bank of India should open ATM centre in the necessary area of the study and also based
on the demand and supply of money the banker put them in ATM centre.

12. The bank not only raises the deposits mobilization of saving bank account and also
encourages the other types of bank account and also government come forward increase the
interest rate for all deposits of bank.

13. The State bank of India should be come forward open adequate branches in rural areas in
Nagappattinam district.

14. The banker may be open a separate customer care center into the bank for development of
banker and customer relationship.

CONCLUSION

Thebankingsectorisundergoingmajorchangesduetocompetitionandtheadventoftechnology.Thecust
omersarelookingforbetterandqualityserviceswhichwouldenhancetheir
satisfaction.Fromtheaboveanalysis,itisclearthattheSBIbankcatersmostofthecustomerneedsandit’sh
assatisfiedmajorityofitscustomers.SBIbankhasmanypositivefeaturesand
satisfiesmostofthecustomerneedsbytheservicesoffered.Inspiteofthisfact,ithasbeen
observedthatmanycustomersarenotawareofallsortsoffacilitiesprovidedbySBI.Thusthe
SBIbankshouldmakebetterawarenesscampaigns.
The study found that in today‟s competitive environment, service quality plays an important
role for the long term sustainability of the banks. As a result, to cope up this changing market
condition banks have to retain old customers and have to attract new customers by providing
better quality of services. It has been evident from the study that there is a strong relationship
between the customer satisfaction and service quality. To ensure customer satisfaction the banks
have to improve their service quality as per the customer‟s expectation. The specific conclusions
regarding the five parameters of service quality are as flows:

(i) The appearance of physical facilities, equipment, personnel and communication materials in
relation to „Tangibility’ are not so strong in SBI Bank to satisfy their customer.

(ii) Service quality of SBI bank is not so reliable, accurate, secured and faithful to satisfying their
customers.

(iii)In case of ‘Responsiveness’ service quality of this bank could not meet their customer‟s
expectation level.

(iv) Regarding ‘Assurance’ the feedback of customers of the banks is not good. Lack of
assurance has been found for the bank.

(v) Regarding ‘Empathy’, SBI provide excellent services which have increased the customer‟s
satisfaction.
A customer is not just money in the cash register. He is a human being with feelings and
deserves to be treated with respect. Delivering customer satisfaction is at the heart of modern
marketing, which is a post-purchase judgment of the consumers.The banking business is
becoming more and more complex as result of liberalization and globalizations. With aggressive
marketing strategies for generating business opportunities, banks have developed innovative
products, keeping in view the needs of different classes of individual customers. The main aim of
the study was to assess the service quality of bank and its impact of customer satisfaction. The
study also tried to test the relationship that exists between customer satisfaction and their loyalty.
The respondents of the bank mostly focus on people factor for improving customer satisfaction
while the banks are focus on modern banking services, to attract its customer.

Recommendations

Some recommendations are given below for betterment of the services in State Bank of India.
(i) Now a day‟s technology is modernizing day by day therefore SBI Bank have to up to date
there technology as per modern era, and banks have to install sufficient number of cash
counting machine in every branches. The bank should ensure availability of bank slip, challan
 and pamphlets to serve customers in a better way.

Recommendations

Some recommendations are given below for betterment of the services in State Bank of India.

(i) Now a day‟s technology is modernizing day by day therefore SBI Bank have to up to date
there technology as per modern era, and banks have to install sufficient number of cash
counting machine in every branches. The bank should ensure availability of bank slip, challan
and pamphlets to serve customers in a better way.

(ii) The bank should increase its staff to give personal attention to the customers and serve
quickly.

(iii) The bank should ensure that the employees are behaving politely and friendly with the(ii)
The bank should increase its staff to give personal attention to the customers and serve
quickly.

(iii) The bank should ensure that the employees are behaving politely and friendly with the
Customer .
(iv)There are a huge number of customers in SBI bank. So the bank should increase its number
of staff to serve the customers quickly, should improve seating facility to customers and
increase the space inside the bank for providing smooth services to the customers.

(v) Better and faster technology, swanky branches and best product/service offering are
necessary but not sufficient for customer satisfaction. Hence, there is a need to transform the
mindset of the staff through greater knowledge and enhanced communication skills.

REFERENCES
1) Aurora ,s,malhotra m,(1997) customer satisfaction a comparative analysis of public and
privet sector bank .Decision 24(1-4) january-December IIM calcutta,pp-109-130.

2) Dutta,k & Dutta A (2009) “customer expectation and perception across the indian
banking industry and resultant financial implication”journal of services research (9) 1 sa
ge publication pp 31-49.
3) Edwin M.G & fathima s (2011) “impact of services quality in commercial bank and
customer satisfaction an empirical study international journal of multidisciplinary study
vol (6),pp,19-37.

4) Hallowell ,roger (1996) “The relationship of customer satisfaction customer loyalty and
probability.An Empirical study”. The international service industry management ,7(4)
Emerald,pp,27-42.

5) Kotovalas ,k & siomkos G.J (2006) “An Examination of relationship between service
quality perception and customer loyalty in public and private greek bank”. international
journal of financial service management vol 14,pp.208-271.

6) Naveen k & Gangal ,v.k (2011). “ customer satisfaction in new Generation bank A. case
study of HDFC Bank .” international referred research journal vol 11(4).pp 177-186.

7) Tyler .k & stanley .E (2001) .” corporate banking .The strategic impact of boundary .’
international journal of bank marketing 19(6).pp.246-252.

8) Uppal.R.k (2010).’customer complaints in banking nature extent & strategies to

mitigation .’ journal of economic & international finance vol,2(10).212-220.