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SUMMER TRAINING PROJECT REPORT
ON
TOPIC NAME:
CUSTOMER SATISFACTION
AT
ORIENTAL BANK OF COMMERCE
Submitted to: Submitted by:
Ms.Vani Arora Shruti Das
BBA(Gen) IInd ShiftEnrollment No.- 03924001710
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ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual rather
it is anamalgamation of the efforts , ideas, and cooperation of
number of entities.
I would like to thank TRINITY INSTITUTE OF PROFFESIONAL
STUDIESfor giving an opportunity to work on a valuable project.
The completion of the project study that follows seemed to be a
distant goalhad it not been for the contribution of Ms. VANI ARORA
for allowing me towork on a very intrinsic part on CUSTOMER
SATISFACTION ATORIENTAL BANK OF COMMERCE. I thank her for the ideas
and basicconcepts she delivered and shared with me, as they helped
me alot inaccomplishing this project of mine.
(SHRUTI DAS)
BBA(Gen) 5 th SEm
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DECLARATION
I hereby declare that the following documented project report
titled CUSTOMERSATISFACTION AT ORIENTAL BANK OF COMMERCE is an
originaland authentic work done by me for the partial fulfillment
of Bachelors of BusinessAdministration degree Program at ORIENTAL
BANK OF COMMERCE .
I hereby certify that all the endeavour out in the fulfillment
of the task are genuineand original to the best of my knowledge
& I have not submitted it earlierelsewhere.
SHRUTI DAS
BBA( Gen) 5 th Sem
Enroll. No.- 03924001710
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1.1 INDUSTRY PROFILE:
INDIAN BANKING
The Indian Banking industry, which is governed by the Banking
Regulation Act of
India, 1949 can be broadly classified into two major categories,
non-scheduled
banks and scheduled banks. Scheduled banks comprise commercial
banks and the
co-operative banks. In terms of ownership, commercial banks can
be further
grouped into nationalized banks, the State Bank of India and its
group banks,
regional rural banks and private sector banks (the old/ new
domestic and foreign).
These banks have over 67,000 branches spread across the country
in every city and
villages of all nook and corners of the land.
The first phase of financial reforms resulted in the
nationalization of 14 major
banks in 1969 and resulted in a shift from Class banking to Mass
banking. This in
turn resulted in a significant growth in the geographical
coverage of banks. Every
bank had to earmark a minimum percentage of their loan portfolio
to sectors
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identified as priority sectors . The manufacturing sector also
grew during the
1970s in protected environs and the banking sector was a
critical source. The next
wave of reforms saw the nationalization of 6 more commercial
banks in 1980.
Since then the number of scheduled commercial banks increased
four-fold and the
number of bank branches increased eight-fold. And that was not
the limit of
growth.
After the second phase of financial sector reforms and
liberalization of the sector in
the early nineties, the Public Sector Banks (PSB) s found it
extremely difficult to
compete with the new private sector banks and the foreign banks.
The new private
sector banks first made their appearance after the guidelines
permitting them were
issued in January 1993. Eight new private sector banks are
presently in operation.
These banks due to their late start have access to
state-of-the-art technology, which
in turn helps them to save on manpower costs.
During the year 2000, the State Bank Of India (SBI) and its 7
associates accounted
for a 25 percent share in deposits and 28.1 percent share in
credit. The 20
nationalized banks accounted for 53.2 percent of the deposits
and 47.5 percent of
credit during the same period. The share of foreign banks
(numbering 42), regional
rural banks and other scheduled commercial banks accounted for
5.7 percent, 3.9
percent and 12.2 percent respectively in deposits and 8.41
percent, 3.14 percent
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and 12.85 percent respectively in credit during the year
2000.about the detail of the
current scenario we will go through the trends in modern economy
of the country.
Current Scenario:
The industry is currently in a transition phase. On the one
hand, the PSBs, which
are the mainstay of the Indian Banking system are in the process
of shedding their
flab in terms of excessive manpower, excessive non Performing
Assets (Npas) and
excessive governmental equity, while on the other hand the
private sector banks
are consolidating themselves through mergers and
acquisitions.
PSBs, which currently account for more than 78 percent of total
banking industry
assets are saddled with NPAs (a mind-boggling Rs 830 billion in
2000), falling
revenues from traditional sources, lack of modern technology and
a massive
workforce while the new private sector banks are forging ahead
and rewriting the
traditional banking business model by way of their sheer
innovation and service.
The PSBs are of course currently working out challenging
strategies even as 20
percent of their massive employee strength has dwindled in the
wake of the
successful Voluntary Retirement Schemes (VRS) schemes.
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The private players however c annot match the PSBs great reach,
great size and
access to low cost deposits. Therefore one of the means for them
to combat the
PSBs has been through the merger and acquisition (M& A)
route. Over the last two
years, the industry has witnessed several such instances. For
instance, HDFC
Banks merger with Times Bank Icici Banks acquisition of ITC
Classic, Anagram
Finance and Bank of Madurai. Centurion Bank, Indusind Bank, Bank
of Punjab,
Vysya Bank are said to be on the lookout. The UTI bank- Global
Trust Bank
merger however opened a pandoras box and brought about the
realization that all
was not well in the functioning of many of the private sector
banks.
Private sector Banks have pioneered internet banking, phone
banking, anywhere
banking, mobile banking, debit cards, Automatic Teller Machines
(ATMs) and
combined various other services and integrated them into the
mainstream banking
arena, while the PSBs are still grappling with disgruntled
employees in the
aftermath of successful VRS schemes. Also, follo wing Indias
commitment to the
W To agreement in respect of the services sector, foreign banks,
including both
new and the existing ones, have been permitted to open up to 12
branches a year
with effect from 1998-99 as against the earlier stipulation of 8
branches.
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Tasks of government diluting their equity from 51 percent to 33
percent in
November 2000 has also opened up a new opportunity for the
takeover of even the
PSBs. The FDI rules being more
rationalized in Q1FY02 may also pave the way for foreign banks
taking the M& A
route to acquire willing Indian partners.
Meanwhile the economic and corporate sector slowdown has led to
an increasing
number of banks focusing on the retail segment. Many of them are
also entering
the new vistas of Insurance. Banks with their phenomenal reach
and a regular
interface with the retail investor are the best placed to enter
into the insurance
sector. Banks in India have been allowed to provide fee-based
insurance services
without risk participation, invest in an insurance company for
providing
infrastructure and services support and set up of a separate
joint-venture insurance
company with risk participation.
Aggregate Performance of the Banking Industry
Aggregate deposits of scheduled commercial banks increased at a
compounded
annual average growth rate (Cagr) of 17.8 percent during
1969-99, while bank
credit expanded at a Cagr of 16.3 percent per annum. Banks
investments in
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government and other approved securities recorded a Cagr of 18.8
percent per
annum during the same period.
In FY01 the economic slowdown resulted in a Gross Domestic
Product (GDP)
growth of only 6.0 percent as against the previous years 6.4
percent. The WPI
Index (a measure of inflation) increased by 7.1 percent as
against 3.3 percent in
FY00. Similarly, money supply (M3) grew by around 16.2 percent
as against 14.6
percent a year ago.
The growth in aggregate deposits of the scheduled commercial
banks at 15.4
percent in FY01 percent was lower than that of 19.3 percent in
the previous year,
while the growth in credit by
SCBs slowed down to 15.6 percent in FY01 against 23 percent a
year ago.
The industrial slowdown also affected the earnings of listed
banks. The net profits
of 20 listed banks dropped by 34.43 percent in the quarter ended
March 2001. Net
profits grew by 40.75 percent in the first quarter of 2000-2001,
but dropped to 4.56
percent in the fourth quarter of 2000-2001.
On the Capital Adequacy Ratio (CAR) front while most banks
managed to fulfill
the norms, it was a feat achieved with its own share of
difficulties. The CAR,
which at present is 9.0 percent, is likely to be hiked to 12.0
percent by the year
2004 based on the Basle Committee recommendations. Any bank that
wishes to
grow its assets needs to also shore up its capital at the same
time so that its capital
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dollar. The steady fall in the interest rates resulted in
squeezed margins for the
banks in general.
Governmental Policy:
After the first phase and second phase of financial reforms, in
the 1980s
commercial banks began to function in a highly regulated
environment, with
administered interest rate structure, quantitative restrictions
on credit flows, high
reserve requirements and reservation of a significant proportion
of lendable
resources for the priority and the government sectors. The
restrictive regulatory
norms led to the credit rationing for the private sector and the
interest rate controls
led to the unproductive use of credit and low levels of
investment and growth. The
resultant financial repression led to decline in productivity
and efficiency and
erosion of profitability of the banking sector in general.
This was when the need to develop a sound commercial banking
system was felt.
This was worked out mainly with the help of the recommendations
of the
Committee on the Financial System (Chairman: Shri M.
Narasimham), 1991. The
resultant financial sector reforms called for interest rate
flexibility for banks,
reduction in reserve requirements, and a number of structural
measures. Interest
rates have thus been steadily deregulated in the past few years
with banks being
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free to fix their Prime Lending Rates(PLRs) and deposit rates
for most banking
products. Credit market reforms included introduction of new
instruments of
credit, changes in the credit delivery system and integration of
functional roles of
diverse players, such as, banks, financial institutions and
non-banking financial
companies (Nbfcs). Domestic Private Sector Banks were allowed to
be set up,
PSBs were allowed to access the markets to shore up their
Cars.
Implications Of Some Recent Policy Measures:
The allowing of PSBs to shed manpower and dilution of equity are
moves that will
lend greater autonomy to the industry. In order to lend more
depth to the capital
markets the RBI had in November 2000 also changed the capital
market exposure
norms from 5 percent of banks incremental deposits of the
previous year to 5
percent of the banks total domestic credit in the previous year.
But this move did
not have the desired effect, as in, while most banks kept away
almost completely
from the capital markets, a few private sector banks went
overboard and exceeded
limits and indulged in dubious stock market deals. The chances
of seeing banks
making a comeback to the stock markets are therefore quite
unlikely in the near
future.
The move to increase Foreign Direct Investment FDI limits to 49
percent from 20
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percent during the first quarter of this fiscal came as a
welcome announcement to
foreign players wanting to get a foot hold in the Indian Markets
by investing in
willing Indian partners who are starved of net worth to meet CAR
norms. Ceiling
for FII investment in companies was also increased from 24.0
percent to 49.0
percent and have been included within the ambit of FDI
investment.
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HEAD OFFICE
Harsh Bhawan,Connought Place
NEWDELHI-01
ZONAL OFFICES (12)
REGIONAL OFFICES (29)
BRANCHES (1323)
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SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors)
The commercial banking structure in India consists of:
Scheduled Commercial Banks in India Unscheduled Banks in
India
Scheduled Banks in India constitute those banks which have been
included in theSecond Schedule of Reserve Bank of India (RBI) Act,
1934. RBI in turn includesonly those banks in this schedule which
satisfy the criteria laid down vide section42 (6) (a) of the
Act.
As on 30th June, 1999, there were 300 scheduled banks in India
having a totalnetwork of 64,918 branches. The scheduled commercial
banks in India comprise ofState bank of India and its associates
(8), nationalized banks (19), foreign banks(45), private sector
banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India
constituted under theState Bank of India Act, 1955 (23 of 1955), a
subsidiary bank as defined in theState Bank of India (Subsidiary
Banks) Act, 1959 (38 of 1959), a correspondingnew bank constituted
under section 3 of the Banking Companies (Acquisition andTransfer
of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the
BankingCompanies (Acquisition and Transfer of Undertakings) Act,
1980 (40 of 1980), orany other bank being a bank included in the
Second Schedule to the Reserve Bankof India Act, 1934 (2 of 1934),
but does not include a co-operative bank".
"Non-scheduled bank in India" means a banking company as defined
in clause (c)of section 5 of the Banking Regulation Act, 1949 (10
of 1949), which is not ascheduled bank".
The following are the Scheduled Banks in India (Public
Sector):
State Bank of India State Bank of Bikaner and Jaipur State Bank
of Hyderabad State Bank of Indore
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State Bank of Mysore State Bank of Saurashtra State Bank of
Travancore Andhra Bank Allahabad Bank Bank of Baroda Bank of India
Bank of Maharashtra Canara Bank Central Bank of India Corporation
Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of
Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank
Union Bank of India United Bank of India UCO Bank Vijaya Bank
The following are the Scheduled Banks in India (Private
Sector):
ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank
Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of
Punjab Ltd IDBI Bank Ltd YES BANK
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The following are the Scheduled Foreign Banks in India:
American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of
America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris
Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and
Shanghai Banking Corporation Standard Chartered Bank. The Chase
Manhattan Bank Ltd. Dresdner Bank AG.
PRODUCTS AND SERVICES
Saving Accounts
How to Open an Account?
Download or obtain Account Opening Form f rom the nearest
branch,fill it up properly and deposit the same with the branch of
your choicealong with the following :-
1. Furnish proof of Residence (In the form of a copy of Ration
Card/Passport/ Driving License/ Electricity Bill/ Telephone Bill/
IdentityCard issued by any reputed institution. ORIGINALS be shown
onlyat the time of scrutiny of papers)/ Business address.
https://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspx
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2. Furnish 2 photographs of all the prospective account
holder(s).
3. . Introduction about you from a person known to the bank
preferably by an Account Holder of the Branch, whose account has
runsatisfactorily at least for the past six months.
4. Furnish PAN or declaration of Form No. 60 / 61 as the case
may be.The minimum balance will be:-
Types
In Rural /Semi
Urbanbranches
In Urban /Metropolitan
branches
Without Cheque Book
FacilityRs. 100 Rs. 500
With Cheque BookFacility
Rs. 500 Rs. 1000
FOR SENIORS CITIZENS AND PENSIONERS
Without Cheque BookFacility Rs. 20 Rs. 20
With Cheque BookFacility
Rs. 250 Rs. 250
https://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspx
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Current Account
How to Open an Account?
Download or obtain Account Opening Form f rom the nearest
branch,fill it up properly and deposit the same with the branch of
your choicealong with the following :-
1. Furnish proof of Residence (In the form of a copy of Ration
Card/Passport/ Driving License/ Electricity Bill/ Telephone Bill/
IdentityCard issued by any reputed institution. ORIGINALS be shown
only atthe time of scrutiny of papers)/ Business address.
2. Furnish 2 photographs of all the prospective account
holder(s).
3. Introduction about you from a person known to the bank
preferably byan Account Holder of the Branch, whose account has run
satisfactorilyat least for the past six months.
4. Furnish undertakings/ documents/ declarations as applicable.
Pleaserefer Current Account opening form for details.
https://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspxhttps://www.obcindia.co.in/obcnew/site/Download.aspx
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5. Furnish PAN or declaration of Form No.60 / 61 as the case may
be.
6. Minimum deposits.
In Rural /Semi Urban branches
In Urban /Metropolitan branches
Rs. 500 Rs. 5000
Pragati Deposit Scheme
LAUNCH OF ORIENTAL BANK PRAGATI ACCOUNT
SCHEME
Name of the scheme ORIENTAL BANK PRAGATIACCOUNT SCHEME
Date of Commencement 14.08.2007
EligibilityALL NEW CURRENTACCOUNTS
Minimum Amount of Deposit and balance to be maintained
Urban & Metropolitan Rs.5000/-Rural & Semi-urban
Rs.1000/-
Validity of Scheme For a limited period only
Add on Facilities 1. One Free ATM/ Debit Cardfor everyAccount.
The ATM/Debit
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Card may also be permittedto the partners of thefirm/Directors
of theCompany who are
authorized to operate theAccount.2. Free Personal Accident
(Death) insurance cover ofRs. 1 Lac (1st year)
3. Waiver of 100% ABBCharges during the 1st year.
4. Free internet / Tele banking5. Waiver of Demat Account
Maintenance Charges (forOne Year)
For Accounts maintaining Averagedaily Current Account Balance
ofRs. 5 Lacs or more
Additional Benefits
1. Free Draft issuance Facility2. Free RTGS Facility upto
Rs.5 Lacs.(However, mandatory RBIcharges plus applicableservice
tax shall
be recovered.
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Scheme Credit Schemes - Flexible Housing Loan, Car Finance,
Personal Loan,Credit Cards
Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, OBC
FarmersWelfare Trust
Corporate Banking - Gold Card scheme for exporters, EXIM
finance
Business Sector - OBC Karigar credit card, OBC Kushal Udhami,
OBC PragatiUdhami, OBC Vikas Udhami
Flexi Fixed Deposit Scheme:-
We are pleased to inform that Flexi Deposit Scheme for the
benefit of ourdepositor customers has been approved by the Board on
18th October 2006. Thisscheme shall come into operation w.e.f. 1st
November 2006. The features of thescheme are as under:
PRODUCT & BENEFIT:
Through reverse sweep facility, the amount lying in Flexi Fixed
Deposit shall beavailable to the depositor whenever there is a
requirement of funds in his / her /their operative account i.e.
savings / current account. As such, whenever thedepositor issues a
cheque or uses ATM card and the available balance in
his/herconnected Savings/Current Account is not sufficient, Reverse
Sweep willautomatically withdraw the required amount from Flexi
Fixed Deposit account andthe remaining amount in FFD will continue
to earn the same rate of interest, asagreed upon in the contract.
In such event, the amount from flexi fixed depositshall be
transferred to his / her / their savings / current account by
following the
LIFO (last in first out) method.
However, the funds to be transferred as a reverse sweep to
Savings Bank/CurrentAccount will also meet the requirement of
maintaining minimum balance.
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LOANS
Banks in India with the way of development have become easy to
apply in loanmarket. The following loans are given by almost all
the banks in the country:
Personal Loan Car Loan or Auto Loan Loan against Shares Home
Loan Education Loan or Student Loan
In Personal Loan, one can get a sanctioned loan amount between
Rs 25,000 to 10,00,000 depending upon the profile of person
applying for the loan. SBI, ICICI,HDFC, HSBC are some of the
leading banks which deals in Personal Loan.
Almost all the banks have jumped into the market of car loan
which is also
sometimes termed as auto loan . It is one of the fast moving
financial products of banks. Car loan / auto loan are sanctioned to
the extent of 85% upon the ex-showroom price of the car with some
simple paper works and a small amount of
processing fee.
Loan against shares is very easy to get because liquid guarantee
is involved in it.
Home loan is the latest craze in the banking sector with the
development of the
infrastructure. Now people are moving to township outside the
city. More numberof townships is coming up to meet the demand of
'house for all'. The RBI has alsoliberalized the interest rates of
home loan in order to match the repaymentcapability of even middle
class people. Almost all banks are dealing in home loan.Again SBI,
ICICI, HDFC, HSBC are leading.
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The educational loan , rather to be termed as student loan, is a
good banking product for the mass. Students with certain academic
brilliance, studying atrecognized colleges/universities in India
and abroad are generally given educationloan / student loan so as
to meet the expenses on tuition fee/ maintenance
cost/books and other equipment.
MONEY TRANSFER
Beside lending and depositing money, banks also carry money from
one corner ofthe globe to another. This act of banks is known as
transfer of money. This activityis termed as remittance business.
Banks generally issue Demand Drafts, Banker'sCheques, Money Orders
or other such instruments for transferring the money. Thisis a type
of Telegraphic Transfer or Tele Cash Orders.
It has been only a couple of years that banks have jumped into
the money transfer businesses in India. The international money
transfer market grew 9.3% from 2003to 2004 i.e. from US$213 bn. to
US$233 bn. in 2004. Economists say that themarket of money transfer
will further grow at a cumulative 12.1% average growthrate through
2009.
FUTURE OF BANKING IN INDIA
A healthy banking system is essential for any economy striving
to achieve goodgrowth and yet remain stable in an increasingly
global business environment. TheIndian banking system has witnessed
a series of reforms in the past, likederegulation 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 newcompetitive threats as well as new
opportunities. This paper aims to foresee majorfuture 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
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terms of integration. This is already becoming a reality with
new-age banks such asYES Bank, and others too adopting a
single-PIN. Geography will no longer be aninhibitor. Technology
will prove to be the differentiator in the short-term but
thedynamic environment will soon lead to its saturation and what
will ultimately be
the key to success will be a better relationship management.
ACHIEVEMENTS
Oriental bank of commerce announced its Q1FY2010 results on 29
July
2009, delivering 62% y-o-y growth in net profits to Rs832
crore
(Rs512cr), substantially ahead of expectations on account of
largetreasury gains, apart from healthy operating performance.
While the banks deposit growth was reasonably robust at 4.4%
sequentially and 26.5% y-o-y, unlike the peers its growth in
advances
also remained strong at 38% y-o-y.
In spite of being at the forefront of PLR cuts, the bank posted
a healthy
growth in Net Interest Income (NII) of 29% y-o-y.
Other Income surged 113% y-o-y, driven by strong treasury gains
of
Rs355 crore during the quarter in line with industry trends,
even as Fee
income was also robust at 45% y-o-y, on the back of strong
balance sheet
growth.
Operating expenses were higher than expected on account of Rs150
crore
of provisions for imminent wage hikes.
Gross and Net NPA ratios remained stable sequentially at 1.8%
and
0.2%, with the bank not adopting the guidelines of treating
floating
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provisions as part of tier 2 capital instead of adjusting
against NPAs on
express permission from the RBI.
AWARDS AND DISTINCTIONS
Ranked among top 50 companies by the leading financial daily,
Economic
Times.
Ranked as 323rd biggest bank in the world by Bankers Almanac
(January
2006), London.
Earned 9th place among India's Most Trusted top 50 service
brands in
Economic Times- A.C Nielson Survey.
Included in the top 1000 banks in the world according to The
Banker,
London.
Golden Peacock Award for Excellence in Corporate Governance -
2005 by
Institute of Directors.
FICCI's Rural Development Award for Excellence in Rural
Development 2005
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COMPANYS MISSION AND VISION
Vision & Mission Statement
Our Vision
To be a sound all India, customer centric, efficient retail bank
with
contemporary size, technology and human capital; endeavouring to
enrich
lives across all sections of society; and committed to upholding
the highest
standards of corporate governance.
Our Mission
To provide the finest banking services by upgrading human
capital and
infusing advanced technology, thereby achieving total
customer
satisfaction; and being reckoned as the Best Bank in the
Industry on
all efficiency parameters.
To enhance shareholders wealth by ensuring sound growth of
business and make valuable contributions to national
economicgrowth.
VALUES AND ETHICS
Bonding and Integrity
Ethical conduct
Periodic disclosure
Confidentiality and fair dealing
Compliance with rules and regulations
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1.3 Introduction of the Subject :
CUSTOMERS SATISFACTION
Customer satisfaction refers to the extent to which customers
are happy with the
products and services provided by a business.
Customer satisfaction levels can be measured using survey
techniques and
questionnaires
DEFINITIONS:
Definition 1: Customer satisfaction is equivalent to making sure
that product and
service performance meets customer expectations.
Definition 2: Customer satisfaction is the perception of the
customer that the
outcome of a business transaction is equal to or greater than
his/her expectation.
Definition 3: Customer satisfaction occurs when acquisition of
products and/or
services provides a minimum negative departure from expectations
when
compared with other acquisitions.
Gaining high levels of customer satisfaction is very important
to a business
because satisfaction customers are most likely to be loyal and
to make repeat
orders and to use a wide range of services offered by a
business
There are many factors which lead in high levels of customer
satisfaction
including.
Products and services which are customer focused and hence
provide high levels of
value for money.
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What Do Customers Want?
Before we begin to create tools to measure the level of
satisfaction, it is important
to develop a clear understanding of what exactly the customer
wants. We need to
know what our customers expect from the products and services we
provide.
Customer expectations have two types
Expressed
Implied
Expressed Customer Expectations are those requirements that are
written down n
the contract and agreed upon by both parties for example,
product specifications
and delivery requirements. Suppliers performan ce against these
requirements is
most of the items directly measurable.
Implied Customer Expectations are not written or spoken but are
the ones thecustomer would expect the supplier to meet
nevertheless. For example, a
customer would expect the service representative who calls on
him to be
knowledgeable and competent to solve a problem on the spot.
There are many reasons why customer expectations are likely to
change overtime.
Process improvements, advent of new technology, changes in
customers priori ties,
improved quality of service provided by competitors are just a
few examples.
The customer is always right. Suppliers job is to provide the
customer what he/she
wants, when he/she wants it. Customer satisfaction is customers
perception that a
supplier has met or exceeded their expectations.
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WHAT CONSTITUTES SATISFACTION?
We cannot create customer satisfaction just by meeting customers
requirementsfully because these have to be met in any case. However
failing short is certain to
create dissatisfaction
Major Attributes of customer satisfaction in banking industry
can be
summarized as:
Product quality
Premium Outflow
Return on Investment
Services
Responsiveness and ability to resolve complaints and reject
reports.
Overall communication, accessibility and attitude.
WHAT ARE THE TOOLS?
Customer expectations can be identified using various methods
such as:
Periodic contract reviews
Market research
Telephonic interviews
Personal visits Warranty records
Informal discussions
Satisfaction surveys
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A customer satisfaction measurement survey should at least
identify thefollowing objectives:
Importance to customers (Customers priorities)
Customers perception of suppliers performance
Your performance relative to customers priorities.
Priorities for improvement
Survey forms should be easy to fill out with minimum amount of
time and efforts
on customers part. They should be designed to actively encourage
the customer to
complete the questions. Yet they must provide accurate data
should also be
sufficiently reliable for management decision making. This can
be achieved by
incorporating objective type questions where customer has to
rate on scale of say
1 to 10. For repeated surveys, you could provide the rating that
was previouslyaccorded by the customer. This works like a reference
point for the customer.
Space should always be provided for the customers own opinions
this enables them
to state any additional requirements or report any shortcomings
that are not
covered by the objective questions.
Normally, we deal various personnel at various levels in the
customers
organization the buyer, user, receiving inspector, finance and
purchase person
etc. surveying a number of respondents for each customer gives a
complete
perspective of customer satisfaction. It may be necessary to
device a different
questionnaire for each of them.
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Respondents must be provided a way to express the importance
they attach to
various survey parameters. Respondents should be asked to give a
weighting
factor, again on a rating scale of say, 1 to 10, for each
requirement. This gives a
better indication of relative importance of each parameter
towards overall customersatisfaction and makes it easier for
suppliers to prioritize their action plans by
comparing the performance rating (scores) with importance rating
(weighing).
WAYS FOR MAINTAINING RELATIONS WITH THE CUSTOMERS
ADOPTED BY OBC
The ability of the banking industry to achieve the
socio-economic objectives and in
the process bringing more and more customers into its fold will
ultimately depend
on the satisfaction of the customers. We have a strong belief
that a satisfied
customer is the foremost factor in developing our business.
A need was felt by us at Oriental Bank of Commerce that in order
to become more
customers friendly the Bank should come out with Charter of its
services for thecustomers. Citizens' Charter concept was considered
as a base instrument to fill
this need and accordingly this document was prepared. This
document was made in
consultation with the users and highlights our Bank's
commitments towards the
customer satisfaction, thus ensuring accountability and
responsibility amongst its
officials and staff. This Code for customers not only explains
our commitment and
responsibilities along with the redressed methods but also
specifies the obligationon the part of customers for healthy
practices in Customer-Banker relationships.
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This is not a legal document creating rights and obligations.
The Code has been
prepared to promote fair banking practices and to give
information in respect of
various activities relating to customer service.
We wish to acknowledge the initiative taken by the Ministry of
Finance,
Government of India and Ministry of Administrative Reforms and
Public
Grievances for encouraging us to bring out this Code.
We maintain constant consultations with our clientele through
various Seminars,
Customer Meets, etc. to evaluate improve and widen the range of
service to
customer. However, all our customers are requested to keep us
informed of theirexperiences about the various services rendered by
the Bank and feel free to
comment on this Code. We intend to bring it out in many Regional
Languages in
subsequent years.
COMMON PRACTICES FOLLOWED BY OBC BRANCHES
Display business hours.
Render courteous services.
Attend to all customers present in the banking hall at the close
of business hours.
Provide separate 'Enquiry' or 'May I help you' counter at large
branches.
Offer nomination facility to all deposit accounts (i.e. account
opened in individualcapacity) and all safe deposit locker hirers
(i.e. individual hirers).
Display interest rates for various deposit schemes from time to
time.
Notify change in interest rates on advances.
Provide details of various deposit schemes/services of the
Bank.
Issue Demand Drafts, Pay Orders, etc.
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Display Time-Norms for various banking transactions.
Pay interest for delayed credit of outstation cheques, as
advised by Reserve Bankof India (RBI) from time to time.
Accord immediate credit in respect of outstation and local
cheques upto a specifiedlimit subject to certain conditions, as
advised by RBI from time to time.
Provide complaint/suggestion box in the branch premises.
Display address of Regional/Zonal and Central Offices as well as
Nodal Officerdealing with customer grievances/complaints.
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The market is more aware and realistic about investment and
returns from financial products. In
this background this study tries to analyze the customer
satisfaction towards banking services in
general and Oriental Bank of Commerce in particular.
NEED FOR THE STUDY
The deeper the company understands of consumers needs and
satisfaction, the earlier the
product or service is introduced ahead of competition, the
greater the expected
contribution margin. Hence the study is very important.
This study will help companies to customize the service and
product, according to the
consumers need.
This study will also help the companies to understand the
experience and expectations of
the existing customers.
SCOPE OF THE STUDY
This study is limited to the consumers with in New Delhi city.
The study will be able to
reveal the preferences, needs, satisfaction of the customers
regarding the banking services, Italso help banks to know whether
the existing products or services the are offering are really
satisfying the customers needs.
OBJECTIVE OF THE STUDY
To have an insight into the attitudes and behaviors of
customers.
To find out the differences among perceived service and expected
service. To produce an executive service report to upgrade service
characteristics.
To understand consumers preferences.
To access the degree of satisfaction of the consumers
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REASERCH METHODOLOGY
A descriptive study tries to discover answers to the questions
who, what, when, where, and,
sometimes, how. The researcher attempts to describe or define a
subject, often by creating a
profile of a group of problems, people, or events.
Such studies may involve the collection of data and the creation
of a distribution of the number
of times the researcher observes a single event or
characteristic (the research variable), or they
may involve relating the interaction of two or more variables.
Organizations that maintain
databases of their employees, customers, and suppliers already
have significant data to conduct
descriptive studies using internal information. Yet many firms
that have such data files do not
mine them regularly for the decision-making insight they might
provide.This descriptive study is
popular in business research because of its versatility across
disciplines. In for-profit, not-for- profit and government
organizations, descriptive investigations have a broad appeal to
the
administrator and policy analyst for planning, monitoring, and
evaluating. In this context, how
questions address issues such as quantity, cost, efficiency,
effectiveness, and adequacy.
Descriptive studies may or may not have the potential for
drawing powerful inferences. A
descriptive study, however, does not explain why an event has
occurred or why the variables
interact the way they do.
Types of data analysis used
In order to properly analyze the data, there would be two types
of data analysis in this project. They are as follows:
Qualitative data analysis through Findings, Analysis and
explanation Quantitative data analysis through charts, schedules,
figures, and structures
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SAMPLE SIZE
At the planning stage of a statistical investigation part, the
question of sample size is verycritical. If the sample size is
large, there could be a waste of money, energy and resources, and
ifit is small, it doesn t make any sense of practical use in making
good decisions. So, the sampleshould be taken in such a way that it
can bring fair, accurate level of accuracy and unbiasedresults.
The objective of taking sample was to obtain desirable level of
accuracy and confidence withminimum of cost, time, and energy.
For the present study, 100 respondents were selected at random.
All the 100 respondents were
the customers of different branches of Oriental Bank of Commerce
.
SAMPLING METHOD
A sample is a representative part of the population. In sampling
technique, information is
collected only from a representative part of the universe and
the conclusions are drawn on that
basis for the entire universe.
A convenience sampling technique was used to collect data from
the respondents.
METHOD OF DATA COLLECTIONData gathering is a very important part
of the research project process. It is through data, with
the help of which we would be able to analyze the problem in
terms of facts and figures.
Actually, the reliability of research decisions depends on the
quality of data gathered. Bytaking this concept into consideration,
the data can be classified into primary data and secondarydata. We
have used both the types of data, as far as our project is
concerned.
Secondary data
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Secondary Data:These are those data which are collected from the
various sources which have been
already created for the purpose of first time use and future
use.
We have used the following secondary data in our project:
Internet Journals Magazines Publications, Articles and Research
Papers done before From various Organizations
TYPES OF DATA
Every decision poses unique needs for information, and relevant
strategies can be developed
based on the information gathered through research. Research is
the systematic objective and
exhaustive search for and study of facts relevant to the
problem
Research design means the framework of study that leads to the
collection and analysis of data. It
is a conceptual structure with in which research is conducted.
It facilitates smooth sailing of
various research operations to make the research as effective as
possible
LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and
careful planning there are
several limitations, which handicapped the research viz,
1.Time Constraints:
The time stipulated for the project to be completed is less and
thus there are chances that some
information might have been left out, however due care is taken
to include all the relevant
information needed.
2.Sample size:
Due to time constraints the sample size was relatively small and
would definitely have been more
representative if I had collected information from more
respondents.
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TABLE:- 1
PERCENTAGE OFPEOPLE HAVINGBANK ACCOUNT
GRAPH
Graphical representation of the people having bank account
Analysis : - From the above table and graph it can be seen that
only 7% of the people havingno bank account while the other 93%
have theirs in different banks. This data is presented in
both the table and graphical presentation.
YES93%
NO7%
0%0%
BANK ACCOUNT
Bank Account Percentage
Yes 93%
No 7%
Total 100%
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Analysis : - From the former table and graphs we can see people
have accounts like in SBI22% , in OBC 24%,in PNB20%, in AXIS
11%,inICICI 13% and in other banks there are only10% accounts among
all the respondents.
Interpretation: It is concluded here that OBC have its
popularity of having alarge no. of
accounts in the studied area for its best service in all
sectors. TABLE : 3
SHARE OF DIFFERENT TYPES OF ACCOUNTS
SL.No.
NATURE OFACCOUNTS
NUMBER OFRESPONDEN
TS
PERCENTAGE OF
RESPONDENTS
1. Saving A/Cs 78 78%
2. Current A/Cs 9 9%
3. Fixed Deposits 4 4%
4. Loans 3 3%
5. Others 6 6%
Total 100 100%
Analysis: Above table shows that 78% respondents have Saving
A/Cs, and 9% have Current
A/Cs and rest of the respondents have 13% share of other A/Cs in
total (which includes fixed
deposits, loans, and other products)
GraphClassification based on nature of A/Cs
Saving A/Cs Current A/Cs Fixed Deposits Loans Others
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Interpretation: This purely shows that people are now looking
forward for better customer
service in addition to the brand name in which they are
investing and the returns they are getting.
TABLE- 5
THECUSTOMERSSATISFACTIONWITH INTERESTRATE OF OBC
Classification Based on level of customer satisfaction with the
interest provided by OBC
YES NO
Satisfied Percentage
Yes 82
No 18
Total 100
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Analysis : The above table shows that 36% of the respondents
prefer OBC firstly. Thereafterthey prefer other banks like SBI,PNB
etc. Likewise SBI-26%, PNB-15%, ICICI-9% and other
banks 14%.
Interpretation: From these all it can be concluded that a major
part of the customers aresatisfied with the interest rate of OBC
.
TABLE:7
CONSUMERS WILLINGNESS TO SHIFT THEIR A/C s TO OTHER BANKS
SL. No. RESPONSES NUMBER OFRESPONDENTS
PERCENTAGE OFRESPONDENTS
1. Shift 8 8%
2. Doesnt shift 92 92%
TOTAL 100 100 %
GraphClassification based on the willingness of respondents to
shift their A/Cs to
other banks
Shift Doesn't shift
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Analysis: From this table it can be noted that the majority of
consumers (92%) doesnt like to
shift their A/Cs to other banks.
Interpretation: The reason can be increasing customer
satisfaction and quality services offered
by the bank.
TABLE: 8
SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY OBC
BRANCH
SL. No. RESPONSE NUMBER OFRESPONDENTS
PERCENTAGE OFRESPONDENTS
1. Satisfied 89 89%
2. Not satisfied 11 11%
TOTAL 100 100 %
Analysis: From the above table it could be inferred that 89% of
the consumers are satisfied with
the service and quality of products of their bank. Only 11% of
consumers are not satisfied.
0
50
100 89
11
No. ofrespondents
GraphClassification based on satisfaction level of
respondents
Satisfied Not satisfied
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Interpretation: Most of the respondents are satisfied with the
service offered by Oriental Bank of
Commerce . Presently the bank offers varieties of services and
the customers are getting a good
rate of return from their deposits. Customers are getting good
service from the bank.
TABLE:9
RATINGS OF THE SERVICES OFFERED BY THE RESPONDENTS LIFE
INSURANCE COMPANY
SL. No. RATINGSNUMBER OF
RESPONDENTSPERCENTAGE OF
RESPONDENTS
1. EXCELLENT 05 5%
2. VERY GOOD 09 9%
3. GOOD 76 76%
4. AVERAGE 06 6%
5. POOR 04 4%
TOTAL 100 100 %
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TABLE- 10
Which product of OBC is beneficiary to Customer?
GRAPH
Classification Based on level of various types of account
provided by banks .
Analysis : - It is seen that more customer have savings account
like 47% in OBC. Likewisethere are 23% current account , 17% fixed
deposit ,5% loan and only 8% insurance.
Interpretation: So it is clear that there are more savings
account in OBC as compare to otheraccounts and services.
0
10
20
30
40
50
SA CA FD LA INS
Product Percentage
Saving A/c (SA) 47%
Current A/C (CA) 23%
Fixed Deposit (FD) 17%
Loan A/C (LA) 05%
Insurance (INS) 08%
Total 100%
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Findings
1..Most of the respondents are having Saving A/Cs .
2. Most of the respondents are satisfied with the service
offered by Oriental Bank of Commerce .
3. Majority of the customers rates good, very good and excellent
because of the customer serviceoffered by the bank .
4. people are now looking forward for better customer service in
addition to the brand name in
which they are investing and the returns they are getting.
5. The reason can be increasing customer satisfaction and
quality services offered by the bank.
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Although the study was carried out with extreme enthusiasm and
careful planning there are
several limitations, which handicapped the research viz,
1. Time Constraints:
The time stipulated for the project to be completed is less and
thus there are chances that some
information might have been left out, however due care is taken
to include all the relevant
information needed.
2. Sample size:
Due to time constraints the sample size was relatively small and
would definitely have been morerepresentative if I had collected
information from more respondents.
3. Accuracy:
It is difficult to know if all the respondents gave accurate
information; some respondents tend to
give misleading information.
4. It was difficult to find respondents as they were busy in
their schedule, and collection of datawas very difficult.
Therefore, the study had to be carried out based on the
availability ofrespondents
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SUGGESTIONS
With regard to banking products and services, consumers respond
at different rates, depending
on the consumers characteristics. Hence I OBC should try to
bring their new product and
services to the attention of potential early adopters.
Due to the intense competition in the financial market, OBC
should adopt better strategies
to attract more customers. Return on investment company
reputation and premium outflow are most preferred
attributes that are expected by the respondents. Hence greater
focus should be given to
these attributes.
OBC should adopt effective promotional strategies to increase
the awareness level among
the consumers.
OBC should ask for their consumer feedback to know whether the
consumers are really
satisfied or dissatisfied with the service and product of the
bank. If they are dissatisfied,
then the reasons for dissatisfaction should be found out and
should be corrected in future.
The OBC brand name has earned a lot of goodwill and enjoys high
brand equity. As
there is intense competition, OBC should work hard to maintain
its position and offer
better service and products to consumers.
The bank should try to increase the Brand image through
performance and service then,
only the customers will be satisfied.
Majority of the people find banking important in their life, so
OBC should employ the
strategies to convert the want in to need which will enrich
their business.
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Books
Research Methodology by C.R. KOTHARI, 2 nd edition.
Marketing Management by PHILIP KOTLER, 11 th edition.
1. WEBSITE
www.obcindia.co.in
www.google.com
http://www.obcindia.co.in/http://www.obcindia.co.in/http://www.google.com/http://www.google.com/http://www.google.com/http://www.obcindia.co.in/
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