Customer Satisfaction

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INTRODUCTION TO BANKING IN INDIA The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely: •

History of Banking in India

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Nationalization of Banks in India

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Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42(6)(a) of the RBI Act, 1934 lays down the condition of scheduled commercial banks. The description along with a list of scheduled commercial banks are given on this page HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

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For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends With the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: •

Early phase from 1786 to 1969 of Indian Banks

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Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

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New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I

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The General Bank of India was set up in the year 1786. Then came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canary Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those day’s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders. Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.

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Seven banks forming subsidiary of State Bank of India were nationalized in 1960. On 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi in which 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: •

1949: Enactment of Banking Regulation Act.

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1955: Nationalization of State Bank of India.

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1959: Nationalization of SBI subsidiaries.

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1961: Insurance cover extended to deposits.

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1969: Nationalization of 14 major banks.

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1971: Creation of credit guarantee corporation.

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1975: Creation of regional rural banks.

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1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III

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This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure. SCHEDULED COMMERCIAL BANKS IN INDIA The commercial banking structure in India consists of: •

Scheduled Commercial Banks in India

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Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of

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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 the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of 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 a scheduled bank". The following are the Scheduled Banks in India (Public Sector): •

State Bank of India

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State Bank of Bikaner and Jaipur

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State Bank of Hyderabad

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State Bank of Indore

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State Bank of Mysore

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State Bank of Saurashtra

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State Bank of Travancore

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Andhra Bank

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Allahabad Bank 10

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Bank of Baroda

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Bank of India

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Bank of Maharashtra

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Canara Bank

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The Central Bank of India

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Corporation Bank

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Dena Bank

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Indian Overseas Bank

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Indian Bank

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Oriental Bank of Commerce

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Punjab National Bank

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Punjab and Sind Bank

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Syndicate Bank

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Union Bank of India

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United Bank of India

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UCO Bank

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Vijaya Bank

The following are the Scheduled Banks in India (Private Sector): •

ING Vysya Bank Ltd

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Axis Bank Ltd

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Indusind Bank Ltd 11

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ICICI Bank Ltd

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South Indian Bank

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HDFC Bank Ltd

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Centurion Bank Ltd

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Bank of Punjab Ltd

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IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India: •

American Express Bank Ltd.

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ANZ Gridlays Bank Plc.

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Bank of America NT & SA

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Bank of Tokyo Ltd.

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Banquc Nationale de Paris

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Barclays Bank Plc

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Citi Bank N.C.

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Deutsche Bank A.G.

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Hongkong and Shanghai Banking Corporation

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Standard Chartered Bank.

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The Chase Manhattan Bank Ltd.

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Dresdner Bank AG.

BANKING SERVICES IN INDIA

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With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems.

BANK ACCOUNT This is the most common and first service of the banking sector. There are different types of bank account in Indian banking sector. The bank accounts are as follows: •

Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time)

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Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.

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Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc.

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Bank Account Online - With the advancement of technology, the major banks in the public and private sector has faciliated their customer to open bank account online. Bank account online is registered through a PC with an internet connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account.

PLASTIC MONEY Plastic money in India is gaining ground. A number of banks in India are encouraging people to use plastic money. The concept of plastic money was first used in 1950 with the launch of charge cards in USA by Diners Club and American Express. It however became more popular with use of magnetic strip in 1970. Plastic money in India became popular with the introduction of foreign banks in the country. Plastic money includes financial instruments which can be used more than once to withdraw or borrow money or buy products and services. Basically banks, retail stores and other businesses issue these. Credit card, Debit card, ATM cards, ATM cum Debit issued by banks and shopping cards issued by business houses are the examples of plastic money which are getting very popular in India.

LOANS Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country: •

Personal Loan

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Car Loan or Auto Loan

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Loan against Shares

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Home Loan

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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 number of townships is coming up to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading. The educational loan, rather to be termed as student loan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognised colleges/universities in India and abroad are generally given education loan / 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 of the globe to another. This act of banks is known as transfer of money. This activity is termed 15

as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders or other such instruments for transferring the money. This is 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 from US$ 213 billion in 2003 to US$ 233 billion in 2004 i.e. 9.3% from 2003 to 2004. INTERNET BANKING The concept of internet banking is new in India. Today, banks have started providing internet banking services to their customers. Most of the big banks are providing the services like online banking, online payments of bills, message alert schemes etc. ‘Anywhere banking’ and ‘Anytime banking’ has also become a reality now. MISCELLANEOUS SERVICES Apart from the above mentioned services, today commercial banks are also performing services like factoring, underwriting of shares and debentures of companies, bank guarantee, accounts management, receivables management, discounting of bills etc..

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UCO Bank, previously known as United Commercial Bank, is a leading commercial bank in India. Founded in Kolkata in 1943, UCO Bank is one of the oldest Indian banks as well. It was the eminent Indian industrialist Ghanshyam Das Birla who, during the Quit India Movement of 1942, thought of establishing a commercial bank with Indian capital and management. United Commercial Bank was the outcome of that idea. It, along with 13 others, was nationalized on July 19, 1969. In the year 1985, its name was changed to UCO Bank. Currently, UCO Bank has around 2000 Service Unites spread all across the nation. It also has two overseas branches in Hong Kong and Singapore. UCO Bank has its presence in all segments of the economy including Industry, Agriculture, Infrastructure Sector, Service Sector and Trade & Commerce. It works towards becoming one of the most trusted and admired financial institution as well as the most sought-after destination for the customers and investors. UCO Bank has a large number of Service Units (around 2000) located across the nation and overseas. These also include specialized and computerized branches. It also has its Correspondents / Agency arrangements all across the world. UCO Bank also carries out Foreign Exchange Business in more than 50 centers across the nation with 4 Foreign Exchange Dealing Operations centers. 19

Bank’s Vision Statement To emerge as the most trusted, admired and sought-after world class financial institution and to be the most preferred destination for every customer and investor and a place of pride for its employees. Bank’s Mission Statement To be a Top-class Bank to achieve sustained growth of business and profitability, fulfilling socio-economic obligations, excellence in customer service; through upgradation of skills of staff and their effective participation making use of state-of-theart technology. Global banking has changed rapidly and UCO Bank has worked hard to adapt to these changes. The bank looks forward to the future with excitement and a commitment to bring greater benefits to you. UCO Bank, with years of dedicated service to the Nation through active financial participation in all segments of the economy - Agriculture, Industry, Trade & Commerce, Service Sector, Infrastructure Sector etc., is keeping pace with the changing environment. With a countrywide network of more than 2000 service units which includes specialized and computerized branches in India and overseas, UCO Bank has marched into the 21st Century matched with dynamism and growth! Overview •

UCO BANK is in the Service of Community since 1943.

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It has nearly 2000 Service Units spread all over India.

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It also operates in two Major International Financial Centers namely Hong Kong and Singapore. 20

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The bank has its Correspondents/Agency arrangements all over the world.

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It undertakes Foreign Exchange Business in more than 50 Centers in India.

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The bank has Foreign Exchange Dealing Operations at 4 Centers. Bank’s Strengths

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Country-wide presence

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Overseas Presence with Profitable Overseas Operations

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Strong Capital Base

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High Proportion of Long Term Liabilities

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A Well Diversified Asset Portfolio

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A Large and Diversified Client Base

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Fully Computerized Branches at Major Centers

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Branch representation in Top 100 Centers (as per deposits) in the country Organization Structure

Headquartered in Kolkata, the Bank has 35 Regional Offices spread all over India. Branches located in a geographical area report to the Regional Office having jurisdiction over that area. These Regional Offices are headed by Senior Executives ranging up to the rank of General Manager, depending on size of business and importance of location. The Regional Offices report to General Managers functioning at Head Office in Kolkata. Bank’s Commitment to Customers In all its promotional activities, the bank will be fair and reasonable in highlighting the salient features of the schemes marketed by it. Misleading or unfair highlighting of any

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aspect of any scheme/service marketed by the Bank leading to unfair practice shall not be resorted to by the Bank. In commemorating the 50th Year of Independence of India, the Bank released a booklet entitled "Our Commitment to Customers" incorporating the Citizen's Charter on services provided by the Bank. In its continuing endeavor to serve our customers better, the bank has considerably extended the business hours for public transaction at the branches on all week-days. The bank has also introduced a number of ‘NO HOLIDAY’ branches. These branches are open all 365 days a year. Besides, several of its branches have Express DD Counter from where Demand Drafts can be purchased without any waiting time.

BANK’S OFFERINGS UCO Bank offers a range of products and services to its customers, which include various deposit schemes, loan schemes, services for the NRIs, international banking etc.  Deposit Schemes Following deposit schemes are offered by UCO Bank: 22

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No-frills Savings Bank Account

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Money Back Recurring Deposits

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Friend-in-Need Scheme

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Two-way Deposit Scheme

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Lakshmi Yojana

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Kuber Yojana

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Flexible Fixed Deposit Scheme

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Special Deposit Scheme for Senior Citizens

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Current Account in Foreign Currency at Indian Branches

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Fixed Deposits in Foreign Currency at Overseas Branches

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Revised Minimum Balance Schedule

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UCO Tax Saver deposit Scheme - 2006

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UCO Premium Plus

 Loan Schemes Following loan schemes are offered: •

UCO Shelter

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UCO Car

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UCO Trader

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Education Loan

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UCO Cash

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UCO Rent 23

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UCO Mortgage

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UCO Securities

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UCO Real Estate

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UCO Nari Shakti

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UCO Shopper

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UCO Pensioner

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UCO Emd Loan

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UCO Swabhiman - Reverse Mortgage Loan Scheme for Senior Citizen

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Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

 NRI Corner UCO Bank offers a range of services for the NRIs. Following are the services that NRIs can choose from: •

Deposit Schemes

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Foreign Currency Non Resident (FCNR-B) Deposits

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Resident Foreign Currency (RFC) Deposits

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Non Resident External (NRE) Deposits

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Non Resident Ordinary (NRO) Deposits

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Remittance to India

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Loans to NRIs

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Against Deposits

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NRI Home Loans 24

 International Banking Following international banking services are offered; •

General Banking Services

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NRI Banking

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Foreign Currency Loans

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Finance/Services to Exporters

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Finance/Services to Importers

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Remittances

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Forex & Treasury Services

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Resident Foreign Currency (Domestic) Deposits

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Correspondent Banking Services

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Forex Inter Bank Placements/Borrowings

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Sale & Purchase of currency on behalf of customers

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Forward Cover Bookings

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Cross Currency Swaps

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Interest Rate Swaps (IRS)

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Forward Rate Arrangements (FRAs)

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Forex Money Market Operations

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WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS ADOPTED BY UCO BANK 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. The bank has a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by the bank that in order to become more customers friendly, the bank should come out with Charter of its services for the customers. 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 bank's commitments towards the customer satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This Code for customers not only explains bank’s commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in CustomerBanker relationships. 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. The bank maintains constant consultations with its clientele through various seminars, customer meets, etc. and asks for their experiences about the various services rendered to

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evaluate, improve and widen the range of service to customer. The bank intends to bring the Code out in many Regional Languages in subsequent years.

COMMON PRACTICES FOLLOWED BY UCO BANK’S BRANCHES  They display business hours.  They render courteous services.  They attend to all customers present in the banking hall at the close of business hours.  They provide separate 'Enquiry' or 'May I help you' counter at large branches.  They offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers).  They display interest rates for various deposit schemes from time to time.  They notify change in interest rates on advances.  They provide details of various deposit schemes/services of the Bank.  They issue Demand Drafts, Pay Orders, etc.  They display Time-Norms for various banking transactions.

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 They pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time.  They accord immediate credit in respect of outstation and local cheques upto a specified limit subject to certain conditions, as advised by RBI from time to time.  They provide complaint/suggestion box in the branch premises.  They display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints.

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CUSTOMER SATISFACTION Consumer satisfaction simply means the degree to which a consumer’s expectations are fulfilled or surpassed by a product/ service. As a business term, it is a measure of how products and services supplied by a company meet or surpass consumer expectations. It 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. By Carl D. McDaniel 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. By Leonard L Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions. By Kessler BENEFITS OF CUSTOMER SATISFACTION Satisfied customers are one of the biggest advantages and strengths of a business. They add years to the life of a business. Satisfied customers are most likely to be loyal, to make repeat orders and to use a wide range of services offered by a business. 30

Satisfied customers are a source of publicity for a business. They not only add to the goodwill of the business but also bring with them new customers which add to the profits and prosperity of the business. The importance of customer satisfaction and support is increasingly becoming a vital business issue as organizations are realizing the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-focused business like banking or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth. 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. Supplier’s performance against these requirements is most of the items directly measurable. Implied Customer Expectations are not written or spoken but are the ones the customer would ‘expect’ the supplier to meet nevertheless. For example, a customer would expect 31

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 customer’s priorities, improved quality of service provided by competitors are just a few examples. The customer is always right. Supplier’s job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customer’s perception that a supplier has met or exceeded their expectations.

FACTORS THAT CONTRIBUTES TO SATISFACTION One cannot create customer satisfaction just by meeting customer’s requirements fully because these have to be met in any case. However falling short is certain to create dissatisfaction. There are many factors which lead to high levels of customer satisfaction such as quantity, quality and price of products and services, after sales services, ways of dealings with customers etc. Products and services which are customer focused and user friendly provide high levels of value for money and hence enhance customer satisfaction. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services they buy if they are made to feel special. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them. Major Attributes of customer satisfaction in banking industry can be summarized as:

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 Services offered.  Service quality.  Tenure of bank account.  Premium Outflow.  Return on Investment.  Responsiveness and ability to resolve complaints.  Network and area of coverage of a bank.  Overall communication, accessibility and attitude of bank staff.

WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as:  Periodic contract reviews  Market research  Telephonic interviews  Personal visits  Informal discussions  Satisfaction surveys

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Depending upon the customer base and available resources, one can choose a method that is most effective in measuring the customers’ perceptions. The purpose of the exercise is to identify priorities for improvements. One must develop a method or combination of methods that helps to continually improve service.

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OBJECTIVES OF THE STUDY The main objective of the this project is To access the degree of satisfaction of the customers.

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The secondary objectives of the project are To have an insight into the service quality of the bank.  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 customers’ expectations and preferences.  To help the bank in improving its efficiency through customer feedback and

by suggesting corrective measures.

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NEED OF THE STUDY The study of customer satisfaction is important in many ways. The need to study customer satisfaction in UCO Bank is felt because of the following reasons:  In the current economic scenario competition is very high as the customers are having a lot of choices. The focus of customers is continuously changing which exceeds the need of studying customer satisfaction so as to the business going in the long run.  The deeper a company understands of consumer’s 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 is needed to help the bank to customize its services according to the needs of the customers.  This study is needed to understand the experience and expectations of the existing customers.  This study will also help in highlighting the problems of the consumers in using the services offered by the bank, if any.  And finally to determine whether the bank has kept its promise of standing high on its customers’ expectations

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STATEMENT OF THE PROBLEM This study will help us to understand the customers’ satisfaction about banking services and products. This study will help banks to understand how a consumer selects, organizes and interprets the quality of services offered by the banks. The market is more or less aware and realistic about risk, investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and UCO Bank in particular. SCOPE OF THE STUDY This study is limited to the consumers with in Jammu city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services of UCO BANK. It will also help the bank to know whether the existing services offered by the bank are really satisfying the customers’ needs or not. REASERCH DESIGN

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Research is the process of finding answer to questions through the application of the scientific methods. It is not searching which is already searched; it is searching something new, it is ‘the industry of discovery’. Research design is the blue print followed in completing the research studies so undertaken. It is the plan, structure and strategy of investigation conceived so as to obtain answer to research questions and to control variance. It is a conceptual structure with in which research is conducted. Here descriptive research design is used and primary and secondary data are collected. 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. This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, non-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 are important. 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.

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SAMPLING METHOD Sampling is the procedure of collecting and using a small number of units of a given population as a basis for drawing conclusions about the whole population. Convenience sampling method is used for the survey of this project. It is a non-probability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbors or people responding to a newspaper’s invitation for readers to state their position on some public issue. SAMPLE DESIGN A sample design is the basic plan which guides the data collection analysis and phase of the project. It is a frame work which specifies the type of information to be collected, the source of data and the data collection procedure. •

Sample size

Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of different branches of UCO Bank. •

Sample area Universe -

Customers of UCO Bank

Population – Customers of Gandhi Nagar and Jeevan Nagar branches in Jammu. Time limit – Four weeks from 12/07/2010 to 09/08/2010 METHOD OF DATA COLLECTION To know the response, questionnaire method of data collection is used. Questionnaire has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. 42

The questionnaire is used as an instrumentation technique because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. Questionnaire can be structured or unstructured. Structured questionnaire is used here. It helps in reducing both the number of interviewers and the chances of interpreter’s misinterpretation and biasness. Further, coding and analysis was done for each question’s response to reach into findings, suggestions and finally to the conclusion about the topic. TYPES OF DATA USED Every research requires unique data. This data can be primary or secondary or both. In this project also, both primary and secondary data are used. Primary data Primary data are the first hand data collected by the investigator himself for the first time and thus they are original in character. They are collected for a particular purpose. A well-structured questionnaire was personally distributed to the selected sample to collect the primary data. Secondary data Secondary data are the second hand data which have already been collected by some other individuals or organizations for their own purpose and used by someone else. Secondary data are usually in the shape of finished products which is either published or unpublished. Sources of secondary data include books, news papers, magazines, business reports, internet, data published by government agencies, banks, financial institutions etc. Two types of secondary data were collected for the preparation of this project report: 43

Internal Data was generated from company’s brochures, manuals and annual reports External Data, on the other hand, was generated from reference books and internet (websites).

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Customers sharing different types of accounts: S. No.

Nature of accounts

Number of respondents

Percentage of respondents

1.

Saving A/Cs

67

67%

2.

Current A/Cs

20

20%

3.

Fixed Deposits

4

4%

4.

Others

9

9%

100

100%

Total

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Analysis: This means most of the respondents are having Saving A/c which means that the bank deposits will be enriched as Saving A/c’s share is the most.

1. From how many years are you a customer of the bank? S. No.

Options

No. of respondents

Percentage of respondents

1

Less than 1 year

15

15%

2

1-5 years

32

32%

3

5-10 years

40

40%

4

More than 10 years

13

13%

100

100%

Total

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Analysis: It can be inferred from the above table that the bank has maintained its relations with most of its customers from a long time and is also adding up new customers.

2. Why do you choose the bank? S. No.

Options

No. of respondents

Percentage of respondents

1

Has no other option

25

25%

2

Convenient location

20

20%

3

Has good reputation / schemes

49

49%

4

Someone recommended

6

6%

48

Total

100

100%

Analysis: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing.

3. How long did it take to open an account in UCO BANK? S. No.

Options

No. of respondents

Percentage of respondents

49

1

One day

65

65%

2

Two days

25

25%

3

Three days

10

10%

4

More than three days

Nil

Nil

100

100%

Total

Analysis: The bank is quick enough to capture its prospective customers as huge majority of its customers got their A/c opened very quickly.

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4. Do you consider your money safe in UCO BANK? S. No.

Options

No. of respondents

Percentage of respondents

1

No, its risky

Nil

Nil

2

Adequately safe

5

5%

3

Safer than in other banks

25

25%

4

Yes, very safe

70

70%

100

100%

Total

Analysis: Customers have good faith on the bank regarding the safety of their money.

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5. The interest charged by the bank on its services is ……….. as compared to other banks:S. No.

Options

No. of respondents

Percentage of respondents

1

Much more

15

15%

2

More

62

62%

3

Same

20

20%

4

Less

3

3%

5

Much less

Nil

Nil

100

100%

Total

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Analysis: The bank is more expensive as compared to other banks.

6. The service of the bank is: S. No.

Options

No. of respondents

Percentage of respondents

1

Very bad

Nil

Nil

2

Bad

Nil

Nil

3

Average

15

5%

4

Good

28

28%

5

Very good

57

57%

100

100%

Total

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Analysis: The bank is providing very good banking services to its customers. The reason can be the cut throat competition and/or the efficient staff.

7. The speed of staff in providing services is: S. No.

Options

No. of respondents

Percentage of respondents

1

Very slow

Nil

Nil

2

Slow

Nil

Nil

3

Average speed

28

28%

4

Fast

62

62%

5

Very fast

10

10%

54

Total

100

100%

Analysis: The bank has employed efficient staff as majority of the customers rank them as good and none has ranked them as slow.

8. The bank staff is: S. No.

Options

No. of respondents

Percentage of respondents

1

Very uncooperative

Nil

Nil

2

Uncooperative

6

6%

55

3

Sometimes cooperative

10

10%

4

Generally cooperative

60

60%

5

Very cooperative

24

24%

100

100%

Total

Analysis: The bank has a staff which cooperates with the customers in handling their quarries, thus maximizing customer satisfaction.

9. Does the staff give you any helpful financial advice? S. No.

Options

No. of respondents

Percentage of respondents

56

1

No

35

35%

2

Probably no

34

34%

3

Probably yes

27

27%

4

Yes always

4

4%

100

100%

Total

Analysis: The bank staff does not provide enough helpful financial advice to the customers as most of the customers do not agree with the question.

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10. Is the branch manager approachable in case of any problem? S. No.

Options

No. of respondents

Percentage of respondents

1

Not at all approachable

Nil

Nil

2

Sometimes approachable

11

11%

3

Usually approachable

17

17%

4

Always approachable

72

72%

100

100%

Total

Analysis: The bank manager is in reach of the customers as huge majority (89%) find him always approachable or usually approachable to handle their problems.

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11. In case of any problem, the process of getting your concern resolved was:S. No.

Options

No. of respondents

Percentage of respondents

1

Very poor

Nil

Nil

2

Somewhat unsatisfactory

20

20%

3

Good

46

46%

4

Excellent

30

30%

100

100%

Total

59

Analysis: The bank has a good complaint redresser process.

12. How long did it take to solve the problem? S. No.

Options

No. of respondents

Percentage of respondents

1

Immediately solved

35

35%

2

2-3 days

43

43%

3

4-7 days

15

15%

4

More than a week

07

07%

100

100%

Total

60

Analysis: The bank is very quick in solving the concerns of its customers.

13. How would you rank the customer care desk ‘May I Help You’ dealings? S. No.

Options

No. of respondents

Percentage of respondents

1

Very poor

Nil

Nil

2

Poor

6

6%

3

Average

12

12% 61

4

Good

18

18%

5

Very good

64

64%

100

100%

Total

Analysis: The customer care desk of the bank is competent enough to handle most of the quarries of the customers.

14. How would you rank the internet banking / mobile banking service provided by the bank? S. No.

Options

No. of respondents

62

Percentage of

respondents 1

Poor

5

5%

2

Average

20

20%

3

Good

35

35%

4

Have not used it

40

40%

100

100%

Total

Analysis: The bank needs to create awareness among its customers regarding the benefits of internet/mobile banking through mass advertising. This will help the bank to provide modern banking services and will increase its profits.

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15. Do you find any problem in searching for the ATMs of the bank? S. No.

Options

No. of respondents

Percentage of respondents

1

Yes, always

60

60%

2

Mostly yes

30

30%

3

Sometimes yes

10

10%

4

Not at all

Nil

Nil

100

100%

Total

Analysis: The bank needs to improve its network of ATMs.

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16. Do you find any problem in finding other branches of the bank in or outside the state? S. No.

Options

No. of respondents

Percentage of respondents

1

Mostly yes

38

38%

2

Quite usually

50

50%

3

Once in a while

09

9%

4

Not at all

03

03%

100

100%

Total

65

Analysis: The bank needs to improve its network of branches.

17. If any other bank announces new schemes then would you like to switch over to that bank? S. No.

Options

No. of respondents

Percentage of respondents

1

Yes

08

8%

2

Probably yes

10

10%

3

Probably no

40

40%

4.

No

42

42%

100

100 %

TOTAL

66

Analysis: Most of customers do not wish to shift their A/Cs to other banks, so the bank has good customer loyalty. The reason can be increasing customer satisfaction and quality services offered by the bank.

18. Would you suggest others to have their account in the bank? S. No.

Options

No. of respondents

Percentage of respondents

1

No

7

7%

2

Probably no

14

14%

3

Probably yes

31

31%

4

Yes

48

48%

100

100%

Total

67

Analysis: From this, it can be inferred that the satisfaction level of the customers is high as majority of the respondents are willing to refer the bank to others.

19. What is your level of satisfaction from the services provided by the bank? S. No.

Options

No. of respondents

Percentage of respondents

1

Highly dissatisfied

Nil

Nil

2

Dissatisfied

7

7%

3

Neutral

13

13%

68

4

Satisfied

66

66%

5

Highly satisfied

14

14%

100

100%

Total

Analysis: The customers are satisfied with the services of the bank as clear majority of around 2/3rd respondents said that they are satisfied and more than 1/8th respondents said that they are highly satisfied with the services of the bank.

20. Overall rating you would like to give to the bank?

S. No.

Options

No. of respondents

69

Percentage of

respondents 1

D

Nil

Nil

2

C

Nil

Nil

3

B

22

22%

4

A

60

60%

5

A+

18

18%

100

100%

Total

Analysis: A very good bank with clear majority of its customers voting it as a A grade bank.

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SUGGESTIONS & RECOMMENDATIONS With regard to banking services, customers respond at different rates, depending on the customers’ characteristics. Hence I would like to give following suggestions to the bank:  The bank can ask for customer feedback by supplying a slip along with / in between the cheque book to know whether the customers are really satisfied or not with the services of the bank. If the customers are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future.  The bank should adopt effective promotional strategies to increase the awareness level among the customers. Some strategies can be providing pamphlets along with A/c details, organizing ‘Bank Camp’ etc.  Due to the intense competition in the financial market, the bank should try to evolve and adopt new and better strategies to enhance customers’ satisfaction like free ATM cards, quick delivery of lost ATM cards, online bookings etc. adopted by other banks.  The UCO BANK brand name has earned a lot of goodwill. All it need is to carry on its hard work to maintain its position and offer better service to customers at competitive rates.  The bank needs to improve its network of branches and ATMs

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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. 3.

Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information. 4.

Difficulty in finding willing respondents:

It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents. 74

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CONCLUSION This project has helped me in studying satisfaction level of the customers regarding the services provided by the bank. 76

On the basis of customer response, it can be concluded that the bank has done well and has kept its promise of providing good quality banking services to its customers. Majority of the customers are satisfied with the services provided by the bank. Yet, the bank needs to work on its shortcomings to add utility to its services and to take customer satisfaction to its next level of customer delightment. If the bank has to compete with other public and private sector banks, it has to mark its presence and I am sure that the suggestions provided in this report can help the bank in this regard. I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition. In short, I would like to say that the very act of the concerned management at UCO BANK in giving me the job of critically examining the customer satisfaction towards financial services provided by it is a step in their continual mission of making all round improvements as a means of progress. I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right.

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BIBILOGRAPHY: Books:  Business Environment by S.L. Kohli, N.K. Resutra.  Human Resource Management by Shashi K Gupta, Rosy Joshi. Internet sites:  www.google.com  www.uco bank.com  www.Wikkipedia.com  Online Encyclopedia.

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QUESTIONNAIRE The following questionnaire is aimed at understanding CUSTOMER SATISFACTION at UCO BANK. The research is carried for the purpose of completing project work as per the requirement of Bachelor’s of Business Administration course. Mark the option which you think appropriate. 1. From how many years are you a customer of the bank?

a) Less than 1 year

b) 1 – 5 years

c) 5 – 10 years

d) More than 10 years

2. Why do you choose the bank? a) Has no other option

b) Convenient location

c) Has good reputation/schemes

d) Someone recommended

3. How long did it take to open an account in UCO bank?

4.

a) One day

b) Two days

c) Three days

d) More than three days

Do you consider your money safe in UCO bank? a) No, it’s risky.

b) Adequately safe 81

c) Safer than in other banks

d) Yes, very safe.

5. The interest charged by the bank on its services is ……….. as compared to other banks:a) Much more

b) More

d) Same

e) Less

c) Same

6. The service of the bank is: a) Very bad c) Good

b) Bad

c) Average d) Very good

7. The speed of staff in providing services is: a) Very slow

b) Slow

d) Fast

e) Very fast

c) Average speed

8. The bank staff is: a) Very uncooperative

b) Uncooperative

d) Generally cooperative

e) Very cooperative

c) Sometimes cooperative

9. Does the staff give you any helpful financial advice? a) No

b) Probably no

c) Probably yes

c) Yes always

10. Is the branch manager approachable in case of any problem? a) Not at all approachable

b) Sometimes approachable

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c) Usually approachable

d) Always approachable

11. In case of any problem, the process of getting your concern resolved was:a) Very poor

b) Somewhat unsatisfactory

c) Satisfactory

d) Superior

12. How long did it take to solve the problem? a) Immediately solved

b) 2 -3 days

c) 4 – 7 days

d) More than a week

13. How would you rank the customer care desk ‘May I Help You’ dealings? a) Very poor

b) Poor

c) Average

d) Good

e) Very good

14. How do you rank the internet banking / mobile banking service provided by the bank? a) Poor

b) Average

c) Good

d) Have not used it

15. Do you find any problem in searching for the ATMs of the bank? a) Yes, always

b) Mostly yes

c) Sometimes yes

d) Not at all

16. Do you find any problem in finding other branches of the bank in or outside the state? a) Yes mostly

b) Quite usually

c) Once in a while

d) Not at all

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17. If any other bank announces new schemes then would you like to switch over to that bank? a) Yes

b) Probably yes

c) Probably no

d) No

18. Would you suggest others to have their account in the bank? a) No

b) Probably no

c) Probably yes

d) Yes

19. What is your level of satisfaction from the services provided by the bank? a) Highly dissatisfied

b) Dissatisfied

d) Satisfied

e) Highly satisfied

c) Neutral

20. Overall rating you would like to give to the bank? a) D

b) C

d) A

e) A+

c) B

21. *Any suggestions for the bank to improve its efficiency:-

THANKS 84

Your Account Type ……………

Sign ……………

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