Depositor’s perception over the Banking Reliability services

Depositor’s perception over the Banking

Reliability services Mrs. SUJATHA JEYARAMAN

1, Dr.I.NARSIS

2,

1Research Scholar

(42945/Ph.D4./ Management/ P.T. / January 2016) Department of Business Administration

Government Arts College (Affiliated to Bharathidasan University),

Tiruchy – 620 022

2M.Com, M.Phil, MBA, M.A, M.Ed, PGDCA, Ph.D

Assistant Professor & Research Advisor

PG & Research Department of Commerce,

Government Arts College, (Affiliated to Bharathidasan University)

Tiruchy – 620 022

Email: [email protected]

Mobile: 9443131230

Abstract- The role of banking service to its customer is considered more vibrant in the modern banking era. Many factors was consider by the depositor before avail banking services. This research paper has measure the effect depositer’s perception over the banking reliability variables. The sample size consists of 210 respondents which were customer of SBI banks at Urban area in Tiruchirapplli District. The questionnaire method was adopted to collect the responses from customer. The questionnaire consist of five demogpraphic questions and five banking reliability questions using five point Likert’s Scale. The respondents are segregated on the basis of different variables such as income, age, occupation gender, Education. The five core variables related to banking service reliability services were consider as a independent variables.

Key Words: Service Quality – ANOVA – Reliability – Multiple regression

1. I. INTRODUCTION

Origins of the Indian banking system date back to the latter part of the eighteenth century with

the establishment of the General Bank of India in the year 1786. During the nineteenth century,

three presidency banks were established, that were later amalgamated in 1920 to form the new

Imperial Bank of India. The state bank of India was formed under the SBI Act in 1955 with the

takeover of Imperial Bank and amalgamation of Bank of Bengal, Bank of Bombay and Bank of

Madras. The government mopped up around 93% of the equity, leaving 7% to private ownership.

By this act the equity of RBI cannot be diluted below 55%. SBI enjoys a pool of best managerial

talent, assured government business, a countrywide network of branches and strong brand

credibility in the Indian market.

II. RELIABILITY SERVICES:

Reliability is defined as the ability to perform the promised service dependably and accurately.

In its broadest sense, reliability means that the company delivers on its promises – promises

about delivery, service provision, problem resolution and pricing. Customers want to do business

Azania Journal ISSN No: 1945-5534

Volume 21, Issue 7, July - 2021 Page - 1

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with companies that keep their promises, particularly their promises about the core service

attributes.

2. III. METHDOLOGY:

The research adopted a descriptive research method due to its flexibility in terms of the approach

it gives, by means of an in-depth investigation. The sample size consists of 210 respondents

which were customer of SBI banks at Urban area in Tiruchirapplli District. The questionnaire

method was adopted to collect the responses from customer. The questionnaire consist of five

demogpraphic questions which were measured with nominal and ration scale and five banking

reliability questions were measured with five point Likert’s Scale. The respondents are

segregated on the basis of different variables such as income, age, occupation gender, Education.

3. IV. RESULTS AND DISCUSSION:

Multiple regression analysis is conducted In order to check The Effect of Reliability variables on

customer overall perception over the Banking services, To know the significant Reliability

variables which highly influence the customer perception over the Banking services well as

insignificant factor which not influence the customer perception over the Banking services.

Dependent variable: OVERALL (overall customer perception over the Banking Reliability

services)

Independent variables (Reliability):

REL1 (Appearance of the Bank)

REL2 (Appearance of Bank Physical facilities)

REL3 (Appearance of Waiting area)

REL4 (ATM Facility and Arrangement)

REL5 (Security arrangement)

In order to check The Effect of banking reliability variables on depositors perception over the

services of Bank, multiple regression analysis is conducted to know the significant factor which

highly influence the bank depositors customers perception over the services of SBI bank as well

as insignificant factor which not influence the bank borrowers over the services of Bank.

TABLE I:

RESULT OF MODEL SUMMARY – BANKING RELIABILITY VARIABLES VS. DEPOSITORS PERCEPTION OVER THE BANKING RELIABILITY SERVICES

R-squared = 0.368281 percent

R-squared (adjusted for d.f.) = 0 percent

Estimated Standard Erro. = 1.21796

Mean absolute error = 1.00481

Durbin-Watson statistic = 1.74549 (P=0.0328)

Lag 1 residual autocorrelation = 0.126534



TABLE NO.II

RESULT OF REGRESSION ANALYSIS – BANKING RELIABILITY VARIABLES VS DEPOSITORS PERCEPTION OVER THE BANKING RELIABILITY SERVICES

Parameter Estimate Standard

Error

T Statistic P-Value

CONSTANT 2.50175 0.328793 7.60888 0.0000

REL1 -0.013947 0.128225 -0.10877 0.9135

REL2 0.0513913 0.0635133 0.809143 0.0419

REL3 -0.00159454 0.0796006 -0.0200317 0.9840

REL4 -0.0220101 0.0788628 -0.279093 0.7805

REL5 -0.0129101 0.0808022 -0.159775 0.8732

TABLE III

RESULT OF ANOVA - BANKING RELIABILITY VARIABLES VS DEPOSITORS PERCEPTION OVER THE BANKING SERVICES

Source Sum of Squares Df Mean Square F-Ratio P-Value

Model 1.11312 5 0.222625 0.15 0.9798

Residual 301.136 203 1.48343

Total (Corr.) 302.249 208

The output shows the results of fitting a multiple linear regression model to describe the relationship

between DepositorsOverall customer perceptions over the Banking Reliability services and 5 independent

Reliability variables. The equation of the fitted model is

DepositorsOverall customer perception over the Banking services = 2.50175 -

0.013947*Depositors.REL1+0.0513913*Depositors.REL2-0.00159454*Depositors.REL3-

0.0220101*Depositors.REL4 - 0.0129101*Depositors.REL5

Since the P-value in the ANOVA table is greater or equal to 0.05, there is not a statistically significant

relationship between the variables at the 95.0% or higher confidence level. The R-Squared statistic

indicates that the model as fitted explains 0.368281% of the variability in DepositorsOverall customer

perception over the Banking services. The adjusted R-squared statistic, which is more suitable for

comparing models with different numbers of independent variables, is 0.0%. The Durbin-Watson (DW)

statistic tests the residuals to determine if there is any significant correlation based on the order in which

they occur in depositor’s data. Since the P-value is less than 0.05, there is an indication of possible serial

correlation at the 95.0% confidence level. The variables namely REL3 and REL5 have a 26.62% of

relationship between them is highest among the five reliability items. It is conclude that among the five

Reliability variables of banking serviceswhich used to predict the impact on overall Depositors perception

over the banking services, , REL2 (Appearance of Waiting area) are creates a significant impact on

customer perception regarding banking services. However, the remaining Reliability variables, REL1,

REL3,REL4 and REL5, were not made any significant impact on overall customer perception It is notice

that the highest P-value on the independent variables is 0.9840, belonging to Depositors.REL3. Since the

P-value is greater or equal to 0.05, that term is not statistically significant at the 95.0% or higher

confidence level. Consequently, it should be consider to remove the REL3 from the list of banking

reliability variables in order to increase the more viable model.



TABLE IV

CORRELATION BETWEEN RELIABILITY VARIABLES OF BANKING SERVICES BY DEPOSITORS

REL 1 REL 2 REL 3 REL 4 REL 5

REL 1 1.0000

REL 2 -0.0653 1.0000

REL 3 0.0538 -0.0200 1.0000

REL 4 0.0435 0.1839 0.2265 1.0000

REL 5 -0.1431 0.0379 0.2662 0.2191 1.0000

Fig. 1 Scatterplot Matrix shows the correlation between Reliability variables of banking services

by Depositors of the bank

V. CONCLUSION:

Though the equipments were modern looking, they were not very much attracted and this would

lead to non-fulfillment of customer’s requirement and it creates dissatisfaction. For this purpose

it should concentrate on satisfying the requirements of the customers by increasing the waiting

chairs, by providing fully air-conditioned environment in all branches, supply of cool water, etc.

As far as reliability service concerned the employees should visualize the helping attitude

transparently, perform the right service at the first time to attract the new customers, behave

politely and show some interest in solving the problem faced by the customers.



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Depositor’s perception over the Banking Reliability services