Consumer satisfaction

1
CHAPTER 1
INTRODUCTION
Customer satisfaction is the overall essence of the impression about the supplier by the
customers. This impression which a customer makes regarding supplier is the sum total of all the
process he goes through, right from communicating supplier before doing any marketing to post
delivery options and services and managing queries or complaints post delivery. During this
process the customer comes across working environment of various departments and the type of
strategies involved in the organization. This helps the customer to make strong opinion about the
supplier which finally results in satisfaction or dissatisfaction.
Customer‟s perception on supplier helps the customer choose among the supplier on basis of
money value and how well the delivered products suit all the requirements. The supplier‟s
services never diminishes after the delivery as customer seeks high values post marketing
services which could help them use and customize the delivered product more efficiently. If he is
satisfied with the post marketing services then there are good chances for supplier to retain the
customers to enhance repeated purchases and make good business profits.
It is necessarily required for an organization to interact and communicate with customers on a
regular basis to increase customer satisfaction. In these interactions and communications it is
required to learn and determine all individual customer needs and respond accordingly. Even if
the products are identical in competing markets, satisfaction provides high retention rates. For
example, shoppers and retailers are engaged with frequent shopping and credit cards to gain
customer satisfaction, many high end retailers also provide membership cards and discount
benefits on those cards so that the customer remain loyal to them.
Higher the satisfaction level, higher is the sentimental attachment of customers with the specific
brand of product and also with the supplier. This helps in making a strong and healthy customer-
supplier bonding. This bonding forces the customer to be tied up with that particular supplier and
chances of defection very less. Hence customer satisfaction is very important panorama that

2
every supplier should focus on to establish a renounced position in the global market and
enhance business and profit.
IMPORTANCE OF CUSTOMER SATISFACTION
The importance of customer satisfaction is apparent when you realize that, without customers,
you don't have a business. A single unsatisfied customer can send more business away from your
company than 10 satisfied customers. The more you focus on customer retention and customer
support, the more long-term business you'll get. It's worth it to focus on customer satisfaction
strategies, no matter how large or small your company is.
Understanding the needs of the customer is critical.
A business relationship, just like any other relationship, relies on both people getting their needs
met. No matter what type of business you are in, all customers want the same thing. They want
to feel welcomed and appreciated by you and your staff. They don't want to get the impression
that they are just being used by you for money. Small interactions like "Thank you" and a nice
smile can go a long way toward customer satisfaction.
Make sure your employees operate with the same principles.
A big part of customer satisfaction is reliability. If customers come to expect a certain mode of
behavior from you and your employees, you should deliver it to them each and every time.
Customers want to be able to rely on you. They expect consistent delivery times (if applicable)
and support. By training your employees to treat all customers with the same respect, your
customers will all have the same experience with your company, which will increase customer
satisfaction.
Be honest when you don't meet expectations.
Customer satisfaction is at its most important when something goes wrong in the chain of
delivery. Whether a customer was double charged or didn't receive what she ordered, your
employees need to handle the situation with the utmost care. Your employee should apologize
and take steps to rectify the situation. The phrase "the customer is always right" is at the core of a

3
good customer satisfaction strategy. It doesn't matter whether or not the customer misread the
instructions or made the mistake; your employee should take steps to make the customer happy.
Customer satisfaction is the foundation of a good business.
Satisfied customers will make a great foundation for return business, and they may also bring in
their friends and associates. Remember that customers are the heart of any business. Keep them
satisfied, and encourage them to tell their friends about their experiences with your business.

4
CHAPTER 2-
DESIGN OF
STUDY
OBJECTIVES OF THE STUDY
1) To study in detail online banking service provided by State Bank of India.
2) To understand customer satisfaction towards service provided by bank.
3) To study the level of technological advancement implemented by bank
4) To test the hypothesis leading the study.
5) To have interpretations, findings and suggestions to enhance the efficacy of customers
satisfaction with respect towards the service in particular.
HYPOTHESIS
Hypothesis 1:
Increasing awareness, a well identified market segmentation and developing a constant customer
relationship can help gain customer loyalty towards the services of state bank of India
Hypothesis 2:
Efforts taken by State Bank of India with respect to their services fall short in winning customer
satisfaction.

5
RESEARCH METHODOLOGY
The research methodology to be adopted for the study is proposed to be as follows :
1) Population of the study :
The population of the study covers the Customers availing the services of State bank of
India Chandivli Branch
2) Sampling and Sample size :
The study focuses exclusively on Customers of South Indian Bank availing online
banking service. Both male and female population has been covered to arrive at proper
conclusion. The sample size is proposed to be 30 Customers comprising of 20 male
customers and 10 female customers respectively.
3) Data Collection :
Both Primary and Secondary data are to be relied upon.
a) Primary data:
The primary data to be collected from the Customers of State bank Of India, Chandivli
Branch as well the customers availing the service from other branches.
The method of collecting data is proposed to be :
i) Questionnaires
ii) Observation
iii) Interviews

6
b) Secondary data:
The secondary data is proposed to be collected from the following sources :
i) Relevant Books and journals
ii) Published and unpublished data
iii) Electronic delivered information (information from different Web-sites)
Both Primary and Secondary data are proposed to be the base of sources of data for the
study.
4) Classification :
The data collected will be recorded and classified in the manner which can facilitate
proper tabulation.
5) Statistical Methods used for data analysis consist of Quantitative and Qualitative
analysis. Chi-square test is used in the study.
6) Tabulation, Analysis and Interpretations
On the basis of classification, tables to be prepared . This tables serves as benchmark for
interpretation and to arrive at an appropriate conclusion for the study.
7) Reporting System :
The study is proposed to be reported in a “Popular Method” of reporting. The statistical
part of the report is proposed to be in “Technical Method of Reporting.”.Over all the reporting
will be consisting of use of tables, diagrams ( pie charts, bar diagrams ).

7
8) Scope of the study :
 The geographical scope of the study is proposed to be State Bank Of India, Chandivli
Branch.
 The study has been conducted during the year 2014 and hence all collected information
pertains to the current year. Conclusions and suggestions provided in the study is purely
based on the existing the services of State Bank Of India.
9) Limitations of the study :
1) State Bank of India has its branches spread over a number of places, however the
study covers only Chandivli branch.
2) The project aims to study the level of satisfaction of customers with respect to
services, hence satisfaction in respect of other services are not considered.
3) The study is limited to population size of 30 customers. It doesn‟t cover the entire
population availing the service of the Bank.
4) There may be some bias in the responses of the respondents which cannot be
ruled out fully.

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CHAPTER 3- PROFILE OF SBI BANK
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the
bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the
Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India’s economy.
Their evolution was, however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and
the global economic framework.
Establishment
The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow the
Bank of Bengal to issue notes, which would be accepted for payment of public revenues within
a restricted geographical area. This right of note issue was very valuable not only for the Bank
of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to
the capital of the banks, a capital on which the proprietors did not have to pay any interest. The
concept of deposit banking was also an innovation because the practice of accepting money for
safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous

9
bankers had not spread as a general habit in most parts of India. But, for a long time, and
especially up to the time that the three presidency banks had a right of note issue, bank notes
and government balances made up the bulk of the investible resources of the banks.
The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which managed
the affairs of each bank, were mostly proprietary directors representing the large European
managing agency houses in India. The rest were government nominees, invariably civil servants,
one of whom was elected as the president of the board.
Business
The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation
confined to three months only. The security for such loans was public securities, commonly
called Company’s Paper, bullion, treasure, plate, jewels, or goods ‘not of a perishable nature’
and no interest could be charged beyond a rate of twelve per cent. Loans against goods like
opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also
granted but such finance by way of cash credits gained momentum only from the third decade
of the nineteenth century. All commodities, including tea, sugar and jute, which began to be
financed later, were either pledged or hypothecated to the bank. Demand promissory notes
were signed by the borrower in favour of the guarantor, which was in turn endorsed to the
bank. Lending against shares of the banks or on the mortgage of houses, land or other real
property was, however, forbidden.
Indians were the principal borrowers against deposit of Company’s paper, while the business of
discounts on private as well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three banks, as far as the

10
government was concerned, was to help the latter raise loans from time to time and also
provide a degree of stability to the prices of government securities.
Major change in the conditions
A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras
occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue
of the presidency banks was abolished and the Government of India assumed from 1 March
1862 the sole power of issuing paper currency within British India. The task of management and
circulation of the new currency notes was conferred on the presidency banks and the
Government undertook to transfer the Treasury balances to the banks at places where the
banks would open branches. None of the three banks had till then any branches (except the
sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839)
although the charters had given them such authority. But as soon as the three presidency bands
were assured of the free use of government Treasury balances at places where they would
open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches,
agencies and sub agencies of the three presidency banks covered most of the major parts and
many of the inland trade centres in India. While the Bank of Bengal had eighteen branches
including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras
had fifteen each.
Presidency Banks Act
The presidency Banks Act, which came into operation on 1 May 1876, brought the three
presidency banks under a common statute with similar restrictions on business. The proprietary
connection of the Government was, however, terminated, though the banks continued to hold
charge of the public debt offices in the three presidency towns, and the custody of a part of the
government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta,
Bombay and Madras into which sums above the specified minimum balances promised to the
presidency banks at only their head offices were to be lodged. The Government could lend to

11
the presidency banks from such Reserve Treasuries but the latter could look upon them more
as a favour than as a right.
The decision of the Government to keep the surplus balances in Reserve Treasuries outside the
normal control of the presidency banks and the connected decision not to guarantee minimum
government balances at new places where branches were to be opened effectively checked the
growth of new branches after 1876. The pace of expansion witnessed in the previous decade
fell sharply although, in the case of the Bank of Madras, it continued on a modest scale as the
profits of that bank were mainly derived from trade dispersed among a number of port towns
and inland centers of the presidency.
India witnessed rapid commercialization in the last quarter of the nineteenth century as its
railway network expanded to cover all the major regions of the country. New irrigation
networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence
crops into cash crops, a portion of which found its way into the foreign markets. Tea and coffee
plantations transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into
regions of estate agriculture par excellence. All these resulted in the expansion of India’s
international trade more than six-fold. The three presidency banks were both beneficiaries and
promoters of this commercialization process as they became involved in the financing of
practically every trading, manufacturing and mining activity in the sub-continent. While the
Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing
industries, the Bank of Madras went into the financing of large modern manufacturing
industries, the Bank of Madras went into the financing of small-scale industries in a way which
had no parallel elsewhere. But the three banks were rigorously excluded from any business
involving foreign exchange. Not only was such business considered risky for these banks, which
held government deposits, it was also feared that these banks enjoying government patronage
would offer unfair competition to the exchange banks which had by then arrived in India. This
exclusion continued till the creation of the Reserve Bank of India in 1935.

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Presidency Banks of Bengal
The presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in
1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and a
giant among Indian commercial banks had emerged. The new bank took on the triple role of a
commercial bank, a banker’s bank and a banker to the government.
The establishment of the Reserve Bank of India as the central bank of the country in 1935
ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to
the Government of India and instead became agent of the Reserve Bank for the transaction of
government business at centres at which the central bank was not established. But it continued
to maintain currency chests and small coin depots and operate the remittance facilities scheme
for other banks and the public on terms stipulated by the Reserve Bank. It also acted as a
bankers’ bank by holding their surplus cash and granting them advances against authorized
securities. The management of the bank clearing houses also continued with it at many places
where the Reserve Bank did not have offices. The bank was also the biggest tenderer at the
Treasury bill auctions conducted by the Reserve Bank on behalf of the Government.
Imperial Bank
The Imperial Bank during the three and a half decades of its existence recorded an impressive
growth in terms of offices, reserves, deposits, investments and advances, the increases in some
cases amounting to more than six-fold. The financial status and security inherited from its
forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking
which the Imperial Bank consistently maintained and the high standard of integrity it observed
in its operations inspired confidence in its depositors that no other bank in India could perhaps
then equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian
banking industry and also secure a vital place in the country’s economic life.

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Stamp of Imperial Bank of India
When India attained freedom, the Imperial Bank had a capital base (including reserves) of
Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and
a network of 172 branches and more than 200 sub offices extending all over the country.
First Five Year Plan
In 1951, when the First Five Year Plan was launched, the development of rural India was given
the highest priority. The commercial banks of the country including the Imperial Bank of India
had till then confined their operations to the urban sector and were not equipped to respond to
the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve
the economy in general and the rural sector in particular, the All India Rural Credit Survey
Committee recommended the creation of a state-partnered and state-sponsored bank by
taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-
associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of
India was constituted on 1 July 1955. More than a quarter of the resources of the Indian
banking system thus passed under the direct control of the State. Later, the State Bank of India
(Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight
former State-associated banks as its subsidiaries (later named Associates).The State Bank of

14
India was destined to act as the pacesetter in this respect and lead the Indian banking system
into the exciting field of national development.

15
Overview of SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the
bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the
Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India's economy.
Their evolution was, however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and
the global economic framework.
The eight banking subsidiaries are:
1-State Bank of Bikaner and Jaipur (SBBJ)
2-State Bank of Hyderabad (SBH)
3-State Bank of India (SBI)
4-State Bank of Indore (SBIR)
5-State Bank of Mysore (SBM)
6-State Bank of Patiala (SBP)
7-State Bank of Saurashtra (SBS)

16
8-State Bank of Travancore (SBT)
PRODUCTS AND SERVICES PROVIDED BY SBI
Savings Accounts
Current Accounts
Fixed Deposits
LOANS
Personal Loans
Home Loans
Two Wheeler Loans
New Car Loans
Used Car Loans
Overdraft Against Car
Express Loans
Gold Loan
Educational Loan
Loan Against Securities
Loan Against Property
Loans Against Rental Receivables
Cards
Credit Cards
Debit Cards

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State Bank of India has a variety of schemes under Personal Finance to satisfy varying needs of
the banking public. The Bank offers the following schemes with attractive rates of interest:
* Housing Loan
* Property Loan
* Car Loan
* Educational Loan
* Personal Loan
* Loan to Pensioners
* Credit Khazana
* Loan Against Shares/Debentures
* Loan For ESOPS
* Festival Loans
* Tribal-Plus Scheme
* EMI Calculator
* CENTRAL SCHEME FOR INTEREST SUBSIDY ON EDUCATION LOANS
Many of our branches offer loans under Personal Finance. This section also offers an EMI
calculator to facilitate computation of monthly repayment.

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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION
This section in the context of the banking industry will give us an insight into the parameters
of customer satisfaction and their measurement.
The data has been collected mainly with the help of questionnaires. The data was collected with
the help of 15 questions covering population of 30 customers.
Exclusive questions were prepared on online banking to understand the level of customer
satisfaction.
The questions were classified into two groups :
a) General
b) Specific
General information was collected under following heads:
1. Gender
2. Age
3. Occupation
4. Qualification
5. Bank Account
Specific information was collected on aspects relating to online banking in specific.
EVALUATION METHOD
For evaluating the responses of customers, groups were awarded with scores three, two, one and
zero.

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 Strongly agree three points
 Agree two points
 Disagree one point
 Strongly Disagree Zero point

20
TABLE AND DIAGRAMS
I)Classification of Customers according to Gender
Table 1
Number of Respondents according to Gender
Gender Frequency Percent
Male 20 66
Female 10 34
Total 30 100
The above table indicates that among 30 respondents 20 were male and 10 were female
customers.
The above information is presented using Pie diagram as given below:-
Fig No-1
Number of Respondents according to Gender

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II) Classification of Customers according to Age
Table 2
Number of Respondents according to Age
Age Frequency Percent
Young 10 33
Middle aged 11 37
Elderly 4 13
Senior Citizen 5 17
Total 30 100
The above table indicates that among 30 customers 10 were young, 11 were middle aged,4 were
elderly,5 were senior citizen.
67%
33%
Gender
Male Female

22
Fig No-2
Number of Respondents according to Age
III) Classification of Customers according to Occupation
Table 3
Number of Respondents according to Occupation
Occupation Frequency Percent
Service 10 33
Business 12 40
Professional 8 27
Total 30 100
The above table indicates that among 30 customers 10 were in the field of service, 12 were
businessmen, 8 were professionally qualified individuals.
Young
33%
Middle aged
37%
Elderly
13%
Senior
citizen
17%
Age

23
Fig No-3
Number of Respondents according to Occupation
IV) Classification of Customers according to Qualification
Table 4
Number of Respondents according to Qualification
Qualification Frequency Percent
Below SSC 0 0
SSC 1 3
HSC 4 13
Graduate 9 30
Post Graduate 5 17
Service
33%
Business
40%
Professional
27%
Occupation

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Professional 11 37
Total 30 100
The above table indicates that among 30 customers respondent was SSC qualified, 4 respondents
were HSC qualified, 9 were graduate,5 were post graduate and 11 were professionally qualified
individuals. None are below SSC.
Fig No-4
Number of Respondents according to Qualification
0% 3%
13%
30%
17%
37%
Qualification
Below SSC
SSC
HSC
Graduate
Post Graduate

25
V) Classification of Customers according to type of Bank account
Table 5
Number of Respondents according to Type of Bank Account
Type of Bank Account Frequency Percent
Savings 9 30
Current 10 33
Fixed 6 20
Recurring 5 17
Total 30 100
The above table indicates that among 30 customers 9 were saving account holders,10 were
current account holders,6 were fixed account holders and 5 were recurring account holders.
Fig No-5
Number of Respondents according to type of Bank account

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30%
33%
20%
17%
Type of Bank Account
Savings
Current
Fixed
Recurring

27
III) DESCRIPTIVE ANALYSIS
Testing of Null Hypotheses
The different Null Hypotheses were tested with the help of statistical tool. For this purpose Chi-
Square test is conducted
Null Hypothesis (Ho):- There is no association between customer’s overall level of
satisfaction towards services of banks and gender of the respondents.
Alternative Hypothesis:- There is association between customer’s overall level of
satisfaction towards services of banks and gender of the respondents
To test the null hypothesis, collected information was classified and presented in the table format
given below:
Table No 1
I) CUSTOMER HAS ACHEVED SATISFACTION REGARDING SBI
LIABILITY TO KEEP PROMISES?
ACTUAL RESPONSE
Gender Agree Disagree
Strongly
Agree
Strongly
Disagree
Total
Male 9 2 5 4 20
Female 4 1 4 1 10
Total 13 3 9 5 30
FINDINGS

28
 Out of 13 customers from Satisfaction group, 9 were male and 4 were female
 Out of 3 customers from Dissatisfaction group, 2 were male and 1 was female
 Out of 9 customers from High Level Satisfaction group, 5 were male and 4 were
female
 Out of 5 customers from Low Level Satisfaction group, 4 were male and 1 was
female
The above information is presented using Bar diagram as given below
EXPECTED RESPONDENTS
Strongly
Agree
Strongly
Disagree
Male 8.6 2 6 3.3
Female 4.3 1 3 1.6
0
1
2
3
4
5
6
7
8
9
Disagree
Agree Disagree Strongly
Agree
Strongly
9
2
5
44
1
4
1
Male
Female

29
To test the above hypothesis Chi- Square test is applied and the result of the test is
Chi- Square 0.82
Since P value is 0.82 which is greater than standard P value 0.05 therefore chi square is accepted
and Null hypothesis is accepted.
CONCLUSION:
There is no association between customer’s overall level of satisfaction towards
LIABILITY TO KEEP PROMISES AND gender of the respondents.
0
1
2
3
4
5
6
7
8
9
Disagree
Agree
Strongly
8.6
2
6
3.3
4.3
1
3
1.6
Male
Female

30
Null Hypothesis (Ho):- There is no association between customer’s level of satisfaction
towards grievance handling and gender of the respondents
Alternative Hypothesis:- There is association between customer’s level of satisfaction
towards grievance handling and gender of the respondents
given below
Table No 1.1
Complaits and grievences are resolved within resoanable time to the satisfaction of
customers?
ACTUAL RESPONSE
Strongly
Agree
Strongly
Disagree
Total
Male 5 4 5 6 20
Female 3 1 2 4 10
Total 8 5 7 10 30
FINDINGS
female

31
 Out of 10 customer from Low Level Satisfaction group, 6 was male and 4 were
female
Fig No-1.1
Grievance Handling
Strongly
Agree
Strongly
Disagree
Male 5.3 3.3 4.6 6.6
Female 2.6 1.6 2.3
0
1
2
3
4
5
6
Disagree
Agree Disagree Strongly Agree Strongly
5
4
5
6
3
1
2
4

32
Chi- Square 0.86
CONCLUSION:
There is no association between customer’s level of satisfaction towards grievance handling
and gender of the respondents.
5.3
3.3
4.6
6.6
2.6
1.6
2.3
3.3
0
1
2
3
4
5
6
7
Disagree
Male
Female

33
Null Hypothesis (Ho):- There is no association between customer’s level of
satisfaction towards CUSTOMER OPINION REGARDING SBI AS A TRUST
WORTHY BANK
and gender of the respondents
Alternative Hypothesis:- There is association between customer’s level of
satisfaction towards CUSTOMER OPINION REGARDING SBI AS A TRUST
WORTHY BANK
and gender of the respondents
given below
Table No 1.2
CUSTOMER OPINION REGARDING SBI AS A TRUST WORTHY BANK
ACTUAL RESPONSE
Strongly
Agree
Strongly
Disagree
Total
Male 7 2 5 6 20
Female 4 1 0 5 10
Total 11 3 5 11 30
FINDINGS

34
 Out of 5 customers from High Level Satisfaction group, 5 were female
 Out of 11 customers from Low Level Satisfaction group 6 were male and 5 were
female
Fig No-1.2
Strongly
Agree
Strongly
Disagree
Male 7.3 2 3.3 7.3
Female 3.6 1 1.6 3.6
Disagree
7
2
5
6
4
1
0
5
Chart Title
Male Female

35
Chi- Square
CONCLUSION:
There is no association between customer’s level of satisfaction towards A TRUST
WORTHY BANK and gender of the respondents
Male
Female0
1
2
3
4
5
6
7
8
Disagree
Agree
Disagree
Strongly
Agree
Strongly
7.3
2
3.3
7.3
3.6
1 1.6
3.6
Male
Female

36
towards LOAN APPROVAL procedure is satisfactory to the customer needs and gender of the
respondents
towards LOAN APPROVAL procedure is satisfactory to the customer needs and gender of the
respondents
given below
Table 1.3
LOAN APPROVAL procedure is satisfactory to the customer needs
ACTUAL RESPONSE
Strongly
Agree
Strongly
Disagree
Total
Male 10 5 5 0 20
Female 6 1 2 1 10
Total 16 6 7 1 30
FINDINGS
female

37
 Out of 1 customer from Low Level Satisfaction group only 1 was female.
Fig No-1.3
Strongly
Agree
Strongly
Disagree
Male 10.6 4 4.6 0.6
Female 5.3 2 2.3 0.3
0
2
4
6
8
10
Disagree
10
5 5
0
6
1
2
1
Male
Female

38
Chi- Square
CONCLUSION:
There is no association between customer’s level of satisfaction towards LOAN
APPROVAL procedure and gender of the respondents
0
2
4
6
8
10
12
Disagree
Agree
Strongly
10.6
4
4.6
0.6
5.3
2 2.3
0.3
Male
Female

39
towards CUSTOMER are SATISFied REGARDING EMI SCHEMES OFFERED BY SBI and
gender of the respondents
towards CUSTOMER are Satisfied REGARDING EMI SCHEMES OFFERED BY SBI and
gender of the respondents
given below
Table 1.4
CUSTOMERS are SATISFied REGARDING EMI SCHEMES OFFERED BY SBI
ACTUAL RESPONSE
Strongly
Agree
Strongly
Disagree
Total
Male 4 6 8 2 20
Female 6 0 2 2 10
Total 10 6 10 4 30
FINDINGS
 Out of 6 customers from Dissatisfaction group, 6 were male

40
female
 Out of 4 customers from Low Level Satisfaction group 2 were male and only 2
were female
Fig No-1.4
Strongly
Agree
Strongly
Disagree
Male 6.6 4 6.6 2.6
Female 3.3 2 3.3 1.3
Male
0
5
10
Disagree
Agree
Disagree
Strongly AgreeStrongly
4
6
8
2
6
0
2 2
Male
Female

41
Chi- Square
CONCLUSION:
There is no association between customer’s level of satisfaction REGARDING EMI
SCHEMES OFFERED BY SBI and gender of the respondents
6.6
4
6.6
2.6
3.3
2
3.3
1.3
0
1
2
3
4
5
6
7
Disagree
Male
Female

42
regarding INTEREST RATE CHARGED BY SBI are reasonable and gender of the
respondents
regarding INTEREST RATE CHARGED BY SBI are reasonable and gender of the
respondents
given below
Table 1.5
INTEREST RATE CHARGED BY SBI are reasonable
ACTUAL RESPONSE
Strongly
Agree
Strongly
Disagree
Total
Male 9 2 5 4 20
Female 7 1 2 0 10
Total 16 3 7 4 30
FINDINGS
 Out of 7 customers from High Level Satisfaction group,5 were male and 2 were
female
 Out of 4 customers from Low Level Satisfaction group 4 were female.

43
Fig No-1.5
Strongly
Agree
Strongly
Disagree
Male 9 2 5 4
Female 7 1 2 0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Disagree
Agree
Strongly
9
2 5
4
7
1 2
0
Female
Male

44
Chi- Square
CONCLUSION:
There is no association between customer’s level of satisfaction regarding INTEREST
RATE CHARGED and gender of the respondents
0
2
4
6
8
10
12
14
16
Disagree
Agree
Strongly
10.6
2
4.6
2.6
5.3
1
2.3
1.3
Female
Male

45
regarding PROCESSING FEES CHARGED BY SBI is satisfactory and gender of the
respondents
regarding PROCESSING FEES CHARGED BY SBI is satisfactory and gender of the
respondents
given below
Table 1.6
PROCESSING FEES CHARGED BY SBI is satisfactory
ACTUAL RESPONSE
Strongly
Agree
Strongly
Disagree
Total
Male 12 3 0 5 20
Female 1 4 2 3 10
Total 13 7 2 8 30
FINDINGS
 Out of 13 customers from Satisfaction group, 12 were male and 1 was female
 Out of 7 customers from Dissatisfaction group, 3 were male and 4 were female
 Out of 2 customers from High Level Satisfaction group, 2 were female

46
 Out of 8 customers from Low Level Satisfaction group 5 were male and 3 were
female.
Fig No-1.6
Strongly
Agree
Strongly
Disagree
Male 8.6 4.6 1.3 5.3
Female 4.3 2.3 0.6 2.6
12
3
0
5
1
4
2
3
0
2
4
6
8
10
12
14
Disagree
Male
Female

47
Chi- Square
Since P value is 0.02 which is less than standard P value 0.05 therefore chi square is rejected and
alternative hypothesis is accepted.
CONCLUSION:
There is association between customer’s level of satisfaction regarding PROCESSING FEES
CHARGED and gender of the respondents
0
1
2
3
4
5
6
7
8
9
Disagree
Agree
Strongly
8.6
4.6
1.3
5.3
4.3
2.3
0.6
2.6 Male
Female

48
Specific Findings- (Quantitative)
Quantitative analysis conducted as per the Research Methodology decided to be used through
statistical methods.
In this study, the null-hypotheses were subjected to the chi-square test. In the given process the
results of the test could be achieved and the same is reported in the following table which briefly
indicates the results.
Table no: 2
Summary of test of Null-Hypotheses with respect to online banking services
Null Hypotheses With Reference to various aspects of online banking
service provided by South Indian Bank
Chi Square
1. H0 „There is no association between customer’s overall level of
satisfaction towards LIABILITY TO KEEP PROMISES AND gender
of the respondents.”
Accepted
2. H0 „There is no association between customer’s level of satisfaction
towards grievance handling and gender of the respondents”
Accepted
towards A TRUST WORTHY BANK and gender of the respondent”
Accepted
towards LOAN APPROVAL procedure and gender of the respondents”
Accepted
REGARDING EMI SCHEMES OFFERED BY SBI and gender of the
Accepted

49
respondents”
6. H0 „.There is no association between customer’s level of satisfaction
regarding INTEREST RATE CHARGED and gender of the
respondents”
Accepted
7. H0 „There is association between customer’s level of satisfaction
regarding PROCESSING FEES CHARGED and gender of the
respondents”
Rejected

50
FINDINGS
From the analysis part one can interpret that customers across all groups in the
sample are satisfied with the service offered by SBI except for the interest rate &
processing charges. We have already seen that a very high percentage of
customers across all groups in the sample are unsatisfied with the rate of interest &
the processing fees being charged by SBI.
As I interviewed all the customers in the sample, one thing I found is that the main reason behind such
unsatisfaction by a majority of the customers is the high rate of interest being charged by SBI. It all
depends on customer attitude & perception.
People have a tendency of comparing each option with the other option available to them &
then they evaluate. In case of SBI, the same thing has happened. Here also the customers have
perception that the rate charged by SBI is comparatively higher than the rate charged by other
institutions offering personal loans.

51
Then in this case we will compare all the options & will definitely think that the rate charged by SBI is
high as compared to others. This is what has exactly happened with SBI.
Same is the case with the processing fees also as customers think that the fees charged by SBI is very
high.
Except for the interest rate & the processing charges, customers are satisfied with all other aspects of
the service being provided by SBI. Only this thing is affecting the customer satisfaction regarding overall
service offered by SBI. There are many customers who are though satisfied with the overall service of
SBI but they are not satisfied with the interest rate & processing fees being charged by SBI.
This signals a danger for SBI as its customers are not satisfied with the interest rate & processing
charges. As many customers look out for only these two aspects, any other institution offering personal
loan at a low rate may come & takeaway the customers of SBI. This is now started happening with SBI as
its customers are now turning towards its competitors, who are offering personal loans at a
comparatively lower rate.

52
CHAPTER 5
CONCLUSION
A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system has
witnessed a series of reforms in the past, like deregulation of interest rates, dilution of
government stake in PSBs, and increased participation of private sector banks. It has also
undergone rapid changes, reflecting a number of underlying developments. This trend has
created new competitive threats as well as new opportunities. This paper aims to foresee major
future banking trends, based on these past and current movements in the market.
Given the competitive market, banking will (and to a great extent already has) become a
process of choice and convenience. The future of banking would be in terms of integration. This
is already becoming a reality with new-age banks such as YES Bank, and others too adopting a
single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the
differentiator in the short-term but the dynamic environment will soon lead to its saturation
and what will ultimately be the key to success will be a better relationship management.
In short, I would like to say that the very act of the concerned management at sbi in giving me
the job of critically examining consumer satisfaction towards financial products and services of
the company is a step in their continual mission of making all round improvements as a means
of progress. The bank has a very bright future to look forward to and will be a trailblazer in its
own.
Customer satisfaction is measured at the individual level, but it is almost always reported at an
aggregate level. It can be, and often is, measured along various dimensions. A hotel, for
example, might ask customers to rate their experience with its front desk and check-in service,

53
with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in
a holistic sense, the hotel might ask about overall satisfaction with your stay.
As research on consumption experiences grows, evidence suggests that consumers purchase
goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic
benefits are associated with the sensory and experiential attributes of the product. Utilitarian
benefits of a product are associated with the more instrumental and functional attributes of the
product.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to product/service.
The state of satisfaction depends on a number of both psychological and physical variables
which correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization's products.
Conclusion for Hypothesis:
Hypothesis 1:
Increasing awareness, a well identified market segmentation and developing a constant customer
relationship can help gain customer loyalty towards services of State Bank of India .This
statement is accepted and proved on the basis of my findings and survey. Hence Hypothesis 1 is
accepted and Hypothesis 2 is rejected.

54
ANNEXURE
CUSTOMER SURVEY
General Information
Name (optional):- -------------------------------------------------------------------------------------
Gender : - MaleFemale
Age : - 18 to 21 years 22 to 45 years
45 to 60 years above 60 Years
Occupation : - Service Professional
Business Other
Qualification : - Less than S.S.C S.S.C
H.S.C Graduate
Post Graduate Professional
Type of Bank Account:- Savings Current

55
Fixed Recurring
4. CUSTOMER HAS ACHEVED SATISFACTION REGARDING SBI LIABILITY TO
KEEP PROMISES?
1) Strongly agree 2) Agree
3) Disagree 4) strongly disagree
5. Complaits and grievences are resolved within resoanable time to the satisfaction of
customers?
6. CUSTOMER OPINION REGARDING sbi AS A TRUST WORTHY BANK
7. LOAN APPROVAL procedure is satisfactory to the customer needs
8. CUSTOMER are SATISFied REGARDING EMI SCHEMES OFFERED BY SBI

56
9. INTEREST RATE CHARGED BY SBI are reasonable
10 . PROCESSING FEES CHARGED BY SBI is satisfactory

Consumer satisfaction

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