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1 A study on customer services of private sector banks In Khurdha district, Odisha (2015-1) Dr. Pradip kumar Das Assistant Professor Dept. of Management, Sikkim Central University Abstract Service quality has become a significant differentiator and the most powerful competitive weapon, which all the service organization wants to process. Banking being at present one of the competitive sectors, the sector needs to improve on the quality of services that they are offering to the customer. Since the customer is one who really experiences the service, the evaluation of quality of the service must come from the customer. So the study Customer Services of Private Sector Banks in Khurdha District, Odisha has been carried out to find out the awareness of banking services, customer satisfaction level on various services provided by the banks and problems of customers in getting services from the banks. For the purpose of this study, 25 branches have been selected out of 7 branches, by adopting random sampling technique and by using lottery method. The sample customers have been selected from Rural (40), Semi-urban (40) and urban branches (20) of private sector banks of different classification operating in Khurdha District. In the present study, a majority of the customers have savings account and the main purpose to open an account is for the purpose of savings. Garret ranking indicates that Convenience and Necessity are the main reasons persuading the customers for having an account in a particular branch of public sector banks. On the basis of the mean score calculated for the awareness of customer services of the selected banks, the deposit services got first rank followed by the loan services, technology services, miscellaneous services and agency services in the private sector banks. This study will help the private sector banks in the district to improve the customer services, in accordance with the expectations of its customer. Key words: customers, services, perception, satisfaction Introduction Service organizations in India are facing tough competition in the global market because of liberalization and globalization of the Indian economy. Hence, it is helpful for service organizations to know the customer service quality perceptions in order to overcome the competitors and attract and retain the customers. Indian service sector has been opened for multinational companies. In order to overcome the competition and to retain the world class service standards, Indian companies have been forced to adopt quality management programs. The quality of services rendered by a bank has a significant bearing on the psyche of the customers. The relationship between a bank and its customer is not a one-time, transitory relationship, but a relatively permanent and enduring one to these inherent characteristics of the banking industry, a prompt and efficient customer service is very improvement for the success of the industry. Banks provide a variety of products and services to the customers. The various services offered by the banks can be utilized the customers only when they are made aware of these services. The banker 20 The research journal of social sciences October 2017 volume number 10

2 and customer have to know about one another. The banker has to understand the customers needs and in the same way, the customer has to know about the various services offered by the banks. Based on the importance of customer services of private sector banks, this study has been conducted in Khurdha District of Odisha. Statement of the problem With the frontiers of knowledge and level of awareness of the customers expanding over the year the customers expectations from the banks rose at a faster pace. The efficient and personalized service rendered by some foreign banks has had a demonstration effect on the customers. Customers expected the same quality of services from Indian banks. The process of globalization also altered the perceptions of the customers about speed, efficiency and quality of service. The demands and aspiration of the customers. Hence, deterioration in the quality of customers service is an offshoot of the postnationalization expansionary phase of Indian banking Customer service in the banks is a continuing issue. In a deregulated environment, customers expectation keeps rising, as they look for more convenient and flexible option are available to them at competitive rates from many players operating in the field. So the study Customer Services of Public Sector Banks in Khurdha District has been carried out to find out the awareness of banking services, customer satisfaction level on various services provided by the banks and problems of customers in getting services from the banks. Review of literature Sauitha in her dissertation entitled, Customer Perception towards Service Quality in Commercial Banks A Study in Erode District has suggested that high rating has been found with a higher percentage of the customers of private sector banks when compared to that of Public Sector Banks. Therefore Public Sector Banks should improve their service quality by providing better services. M. Selvam (2005) in his article entitled, Customer Satisfaction of Banking Services: An Overview has studied to assess the measurement criteria and to evaluate customer satisfaction regarding banking services and evaluate the level of satisfaction of customer services provided by the banks. He concluded that the bank has to keep in mind the mantra that Customer is the King and banks exist to serve them and should practice range of services which fulfill customers satisfactions. P.Periasamy and J.V.Balasubramanian (200) in their article titled, Customer s Awareness and Problems of Services in Bank: A Study have analysed the customer awareness about the nature of services offered by banks and problems related to customer services. It is disheartening to witness the major problems faced by the sample respondents. They are undue favoritism to some client, lack of guidance about bank schemes and services and too much dependence on superiors in clarifying doubts especially in advance section. N. Nandhi (2002), in his article entitled Banking Marketing The Problems of Distribution focuses on the marketing techniques for distribution of banking services. He observed that customer dissatisfaction had been increasing due to increasing expectation of customers. He suggested that existing strategies be made more effective for customers. Objectives of the study The objectives of the study are as follows: To analyse the perception of customers towards the services of private sector banks in Khurdha District. 21 The research journal of social sciences October 2017 volume number 10

3 To study the awareness of customers regarding banking services of private sector banks in Khurdha District. To analyse the customer satisfaction of banking facilities and services provided by the private sector banks in Khurdha District. To identify the problems of customers getting services from the private sector banks in Khurdha District Methodology The data needed for this study have been collected from both primary and secondary sources. The primary data have been collected through a well-designed interview schedule constructed for the purpose of the study. The secondary data required for the study have been collected from banks, RBI bulletins, RBI annual reports, Report on trend and progress of banking in India, government publications, journals, magazines, unpublished theses, newspapers, websites etc. Sampling design For the purpose of this study, 25 branches have been selected out of 7 branches, by adopting random sampling technique and by using lottery method. Table reveals the sample customers selected for the study. The sample customers have been selected proportionately from branches of different classification of private sector banks at the rate of customers from each classification of private sector banks. The sample customers have been selected from Rural (40), Semi-urban (40) and urban branches (20) of private sector banks of different classification operating in Khurdha District. The sample customers have been selected from the banks listed in the following banks List of Banks Selected for the Study Serial Name of the bank No 1. AXIS Bank Ltd., 2. IDBI Bank Ltd., 3. ICICI Bank Ltd., 4. HDFC Bank Ltd., 5. South Indian Bank. Federal Bank Ltd., 7. Dhanlakshmi Bank Ltd.,. Catholic Syrian Bank Ltd., 9. Indusind Bank Ltd., 10. Lakshmi Vilas Bank Ltd., 11. Karur Vysya Bank Ltd., 12. Kotak Mahandra Bank Ltd., 22 The research journal of social sciences October 2017 volume number 10

4 Source: Unpublished data from ICICI Bank, Bhubaneswar Perceptions of customers towards the services rendered by the private sector banks This chapter deals with the perceptions of customers towards the services rendered by the commercial banks. For this purpose customers (Respondents) were selected from branches of different classification of commercial banks like the private sector banks. The primary data were collected by adopting the interview schedule. Classification of respondents according to sex Table-1 Classification of Respondents According to Sex Sl.No. Sex Private Sector Banks 1. Male 70 (70%) 2. Female 30 (30%) Total (%) ` Source: Primary Data Note: Figures in brackets show percentage to total. In the case of the private sector banks, out of customers, 70 (70%) respondents are men and the remaining 30 (30%) respondents are female. A majority of the sample respondents are men in private sector banks. Classification of respondents according to literacy level The educational profile of the customers has an impact on getting services from the commercial banks. It is known fact that, the educated people have more awareness about the customer services of private sector banks. Table 2 reveals the classification of respondents according to the literacy level. Table -2 Classification of Respondents According to Literacy Level Sl. No. Literacy level Private Sector Banks 1. Illiterate (%) 2. Up to School Level 43 (43%) 3. Under Graduate 23 (23%) 4. Post Graduate 13 (13%) 5. Professional (%) 23 The research journal of social sciences October 2017 volume number 10

5 . Technical 5 (5%) Total (%) Source: Primary Data Note: Figures in brackets show percentage to total. Table - 2 reveals that in the case of private sector banks out of customers, 43 (43%) respondents had their education up to school level, 23 (23%) respondents are under graduate, 13 (13%) respondents are postgraduates, (%) respondents are professionals, 5(5%) respondents are technically qualified and (%) respondents are illiterates. It reveals that 43 percent of the respondents completed school level both in the case of private sector banks. Classification of respondents according to their employment status Table -3 elucidates the classification of customers according to their employment status. Table -3 Classification of Respondents According to Their Employment Status Sl.No. Occupation Private Sector Banks Government Employee (17%) 2. Private Employee 3 (3%) 3. Professional (%) 4. Business (%) 5. 7 Coolie (7%). 14 Agriculturist (14%) 7. Retired Employee 3 (3%). Others (%) Total (%) Table 3 exhibits that in the case of private sector banks out of customers, 17 (17%) respondents are government employees, 3 (3%) respondents are working in private organizations, (%) respondents are professionals, (%) respondents are doing business, 7 (7%) respondents are coolies, 14 (14%) respondents are agriculturists, 3(3%) respondents are retired employee and (%) respondents are doing other business. 24 The research journal of social sciences October 2017 volume number 10

6 It reveals that more than one-third of the respondents are working in private organizations in the case of private sector banks. Classification of respondents according to monthly income of family Income plays an important role in bank customers getting services. So the classification of the respondents has been done on the basis of their family income. The classification of the respondents according to their family income is presented in Table 4. Table - 4 Classification of respondents according to monthly income of family Sl.No. Size of the Family Private Sector Banks 1. Less than Rs (12%) 2. Rs.5,001 to Rs.10, (23%) 3. Rs.10,001 Rs.15,000 2 (2%) 4. Rs.15,001 Rs.20,000 1 (1%) Rs.20,001 Rs.30,000 (14%). 7 Above Rs.30,000 (7%) Total (%) Source: Primary Data Note: Figures in brackets show percentage to total. Table 4 reveals that in the case of private sector banks, out of customers, 12 (12%) respondents belong to the income group of less than Rs.5000, 23 (23%) respondents are in the income group of Rs.5000 to Rs.10,000, 2 (2%) respondents are in the income group of Rs.10,001 to Rs.15,000, 1 (1%) respondents are in the income group of Rs.15,001 to Rs.20,000, 14 (14%) respondents are in the income group of Rs.20,001 to Rs.30,000 and 7 (7%) respondents earn an income of Rs.30,001 and above. It reveals that more than two-fourth of the respondents is in the income group of Rs.5000 to Rs.00 and Rs.01 to Rs in the case of private sector banks. Type of account People have different accounts such as saving account, current account, and recurring deposit account and fixed deposit account. Table 5 furnishes the details of the types of account of the respondents. 25 The research journal of social sciences October 2017 volume number 10

7 Table - 5 Type of Account Sl.No. Types of Account Private Sector Banks 1. Savings Account 75 (75%) 2. Current Account 1 (1%) 3. Recurring Deposit Account 3 (3%) 4. Fixed Deposit Account (%) Total (%) Source: Primary Data Note: Figures in brackets show percentage to total. Table 5 reveals that in the case private sector banks, 75 (75%) respondents have savings account, 1 (1%) respondents have current account, three (3%) respondents have recurring deposit account and (%) respondents have fixed deposit account. Thus it is revealed that more than three-fourth of the respondents have savings account in private sector banks. Duration of customer of bank The classification of the respondents according to the duration of the account of the customers of bank is presented in Table. Table - Duration of Account of the Customers of Bank Sl.No. Number of Years Private Sector Banks 1. Less than one Year 4 (4%) 2. 1 Year 3 Years 21 (21%) 3. 3 Years 5 Years 25 (25%) 4. 5 Years 10 Years 31 (31%) Years 15 Years (11%). Above 15 Years (%) Total (%) Source: Primary Data Note: Figures in brackets show percentage to total. Table reveals that in the case private sector banks, out of customers, 4 (4%) respondents have accounts with the banks for less than one year, 21 (21%) respondents have accounts for 1 year to 2 years, 25 (25%) respondents have accounts for 3 years to 5 years, 31 (31%) respondents have accounts for 5 years to 10 years, 11 (11%) respondents have accounts for 10 years to 15 years and (%) respondents have accounts for more than 15 years. 2 The research journal of social sciences October 2017 volume number 10

8 It can be concluded that more than one-fourth of the respondents have accounts for 5 years to 10 years in the private sector banks. Purpose of opening accounts in the bank Customers have opened accounts in the bank for different purposes. Savings, security, high interest rate, status and investment are some of the reasons for opening an account in the bank. Table -7 mentions the purpose of opening accounts in the banks. Table - 7 Purpose of opening accounts in the banks Sl.No. Purpose Private Sector Banks 1. Savings 24 (4%) 2. Security (1%) 3. High Interest Rate 9 (1%) Status 4 (7%) Investment (11%) Total 50(%) Source: Primary Data Note: Figures in brackets show percentage to total. Table 7 reveals that In the case of private sector banks out of 10 customers, 4 (4%) respondents have opened an account for savings purpose, 1 (1%) respondents have opened an account for security purpose, 1 (1%) respondents have opened an account for high interest rate, 7 (7%) respondents have opened an account for Status and 11 (11%) respondents have opened an account for investment purpose. It reveals that a majority of the respondents have opened an account for savings purpose in the private sector banks. Frequency of visit to the bank The customers visit the bank daily, 2 to 3 times a week, once in a week, twice in a month and once in a month. Table mentions the frequency of visit to the banks. Table Frequency of visit to the bank Sl.No. Frequency of Visit Private Sector Banks 1. Daily (%) 2. 2 to 3 times a week 22 (22%) 3. Once in a week 32 (32%) 4. Twice in a month 23 (23%) 5. Once in a month 12 (12%). Occasionally 3 (3%) Total (%) Source: Primary Data. Note: Figures in brackets show percentage to total. 27 The research journal of social sciences October 2017 volume number 10

9 Table reveals that in the case of private sector banks out of customers, (%) respondents visit the bank daily, 22 (22%) respondents visit the bank 2 to 3 times a week, 32 (32%) respondents visit the bank once in a week, 23 (23%) respondents visit the bank twice a month, 12 (12%) respondents visit the bank once in a month and 3 (3%) respondents visit the bank occasionally. It is concluded that more than one-fifth of the respondents visit the bank once in a week in the private sector banks. Reasons for having opened an account in a particular branch Customers have opened their accounts for many reasons namely nearness to residence/office, friendliness of bank personnel, working place compulsion, convenience, necessity and rate of return. The reasons are ranked one by one. Reasons for having opened an account in the private sector banks Table 9 exhibits various reasons for having accounts in the private sector banks. Table 9 Reasons for Having Opened an Account in the Private Sector Banks Sl. No. Reasons Rank Total 1. Nearness to residence/office 2. Friendliness of bank personnel 3. Working place compulsion 4. Convenience 5. Necessity. Rate of return Source: Primary Data. The respondents are asked to rank the response according to their reasons for having opened an account in the private sector banks. Based on the ranks, which the respondents awarded in the interview schedule, the researcher has found out the number of responses placed in each rank. Garret Ranks The garret ranks are calculated by using appropriate Garret ranking formula. Then based on the Garret rank, the Garret table value is ascertained. The Garret table values and scores of each rank in table 9 and 10 are multiplied to record scores in table 11. Finally by adding each row, the total Garret score is obtained. Per cent Position = (Rij 0.5) Nj Rij = Rank given for the i th item by the j th sample respondents 1 2 The research journal of social sciences October 2017 volume number 10

10 Sl.No. Nj = Total rank given by the j th sample respondents Table 10 exhibits the per cent position and Garret Value. Table 10 Per cent Position and Garret Value ( Rij 0.5) Calculated Value Garret Value Nj 1. (1 0.5) = (2 0.5) = (3 0.5) = (4 0.5) = (5 0.5) = ( 0.5) = Table 10 highlights Garret scores which help to decide the most important reasons for having an account in a particular branch. The customers have an account in the bank for different reasons. The researcher has identified some of the reasons like nearness to residence/office, friendliness of bank personnel, working place compulsion, convenience, necessity and rate of return. Moreover to identify which reason is the most favorable one, the researcher has used Garret s rank test. Reasons for Having Opened an Account in the Private Sector Banks Garret s ranking Table 11 exhibits the reasons for having opened account in the private sector bank and Garret s ranking. 29 The research journal of social sciences October 2017 volume number 10

11 Table 11 Reasons for Having Opened an Account in the Private Sector Banks Garret s ranking Sl.No. Reasons Garrets Scores Garret Rank Average Score 1. Nearness to residence/office 5197 III Friendliness of bank personnel 5015 IV Working place compulsion 435 VI Convenience 5544 I Necessity 53 II Rate of return 455 V 45.5 Source: Primary Data. Table 11 shows the Garret scores and the average scores. The average scores are ranked according to their values. The first rank is given to Convenience and the last rank is given to Working place compulsion. It is inferred that Convenience is the primary reason for having opened an account in the private sector bank, followed by necessity. Awareness on various services in private sector banks The mean score for each of the five services have been calculated for the private sector banks and are given in Table 12 Table 12 Mean Scores for Awareness on Various Services in the Private Sector Banks Sl. No. Services Opinion of the Respondents Fully Aware Partly Aware Not Aware Total Score Mean Score Rank 1. Loan Services II 2. Deposit Services I 3. Technology Services III 4. Agency Services V 5. Miscellaneous Services IV In order to calculate the total awareness score, number of the respondents whose opinions are fully aware is multiplied by 3 and the number of respondents whose opinions are partly aware is 30 The research journal of social sciences October 2017 volume number 10

12 multiplied by 2 and the number of respondents whose opinions are not aware is multiplied 1. The mean score is calculated by dividing the total score by the total number of respondents (). Table 12 reveals that among five services, deposit services have got the highest weighted average score in the services of private sector banks followed by loans, technology services, miscellaneous services and agency services. Customer satisfaction on banking services Customer services provided by the banking industry in the district consist of five services. The customers have been asked to give their opinion in five point scale method. Table 13 shows the details about customers opinion of satisfaction of customer services of the private sector banks in the district. Table 13 shows that the opinion of customers about bank services in the private sector banks in the district. Table 13 Opinion of Customers about the Level of Satisfaction of Services in the Private Sector Banks Sl. No Services HS S NO DS HDS Total 1. Loan Services (32%) (3%) (%) (1%) (%) (%) 2. Deposit Services (3%) (34%) (4%) (13%) (11) (%) 3. Technology Services 34 (34%) 3 (3%) (%) 1 (1%) (%) (%) 4. Agency Service (1%) (14%) (12%) (27%) (31%) (%) 5. Miscellaneous Services 24 (24%) 2 (2%) (%) 22 (22%) 20 (20%) (%) Source: Primary Data. HS Highly Satisfied, S Satisfied, No No Opinion, DS Dissatisfied, HDS Highly Dissatisfied. Note: Figures in brackets indicates percentage to total. It is inferred from Table 13 out of respondents 3 are satisfied with the loan services, 3 respondents are highly satisfied with the deposit services, 3 respondents are satisfied with the technology services, 31 respondents are highly dissatisfied with the agency services and 2 respondents are satisfied with the miscellaneous services in the private sector banks in district. 31 The research journal of social sciences October 2017 volume number 10

13 Problems of Customer The sample customers were asked to respond on three ways Yes, No and No Opinion on the following eighteen statements framed for the purpose of this study which applies sign test. 1. Procedure problems of opening account 2. Problems of withdrawal 3. Problems of depositing cash 4. Problems of getting loan 5. Problem in using advanced services. There is a partiality of bank employees 7. Suggestions/views taken for consideration. Bankers conduct customer meet periodically 9. Inconvenience about the working hours 10. Absence of grievance cell 11. Long distance of the bank 12. Crowd at the counter 13. Problem of explaining modern/new services from the bank employee 14. Problem of filing challan/slip in the bank 15. Problem of infrastructure facility in the bank 1. Non-cooperation of the employees 17. Displaying the interest rates on the notice board 1. Displaying the service charges on the notice board Response of Customers in the Private Sector Banks The response of sample customers in the private sector banks on the above eighteen statements are given in Table 14 Sl. No Table 14 Response of Customers of the Private Sector Banks Statements Yes No No Opinion Procedure problems of opening account Problems of withdrawal Problems of depositing cash Problems of getting loan Problem in using advanced services There is a partiality of bank employees Suggestions/views taken for consideration Conduct customer meet periodically 55 (55.11) 2 (25.7) 1 (1.44) 3 (3.11) 50 (49.7) 43 (42.7) 57 (5.9) 73 (73.33) 40 (39.5) (.22) 73 (73.33) 31 (31.11) 43 (42.7) 39 (3.7) 42 (41.7) 1 (15.5) 5 (5.33) ( ) 10 (10.22) (5.7) ( 7.55) Total (%) (%) (%) (%) (%) 19 (1.) (%) 1 (1.33) 7 (7.11) (%) (%) 9. Inconvenient about the working hours The research journal of social sciences October 2017 volume number 10

14 Absence of grievance cell Long distance of the bank Crowd problem at the counter Problem of explaining modern/new services from the bank employee (21.33) (74.7) (4) (%) 1 (0.9) 21 (41.7) 4 (4.44) 47 (47.11) 3 (3.44) 2 (51.55) 35 (34.7) 37 (37.33) 3 (2.7) 3 (.7) 1 (0.) 1 (15.5) (%) (%) (%) (%) 14. Problem of filling chellan/slip in the bank 15. Problem of infrastructure facility in the bank 1. Non-cooperation of employee 17. Display the interest rates on the notice board 1. Display the service charges on the notice board Figures in brackets in indicate percentage to total Source: Primary Data. 2 (2.44) 5 (4.9) 15 (15.55) 27 (2.7) 29 (29.33) (5.7) 32 (32) 7 (75.5) 9 (9.33) (.22) (5.7) 3 (3.11) 4 (.9) 4 (4) 5 (4.45) (%) (%) (%) (%) (%) It is inferred from Table 14 that on the eighteen statements framed for this study, Yes responses of customers range from per cent to per cent, No responses range from 15.5 per cent to 75.5 per cent and No Opinion responses range from 0.0 per cent to 1.. In order to know whether there is any significant difference in the responses of bank officials on each of the 1 statements framed for this study, sign test has been applied. Conclusion The implication of the research is to design a service delivery system that promotes positive moments of truth. Of the survey made by the researcher, the customers are classified based on sex, education status, employment status. A majority of the customers have savings account and the main purpose to open an account is for the purpose of savings. Garret ranking indicates that Convenience and Necessity are the main reasons persuading the customers for having an account in a particular branch of public sector banks. On the basis of the mean score calculated for the awareness of customer services of the public sector banks, the deposit services got first rank followed by the loan services, technology services, miscellaneous services and agency services in the public sector banks. This study will help the private sector banks in the district in improving the customer service, in accordance with the expectations of its customers. References 1. David Soundarajan: Customer perception towards banking services- A study with reference to public sector banks in Coimbatore City - Ph.D. Thesis: Bharathiar University. Tamilnadu, India August The research journal of social sciences October 2017 volume number 10

15 2. V.Mariaponci, A Study on Customer Services of Selected Commercial Banks with Special Reference to Kovilpatti Town Unpublished M.Phil Dissertation Submitted to Madurai Kamaraj University, Madurai M.Selvam, Customer Satisfaction of Banking Services: An Overview, SAJOSPS, July- December 2005, pp.5-90 and P. Periasamy and J.V.Balasubramanian, Customer s Awareness and Problems of Services in Bank: A Study, Southern Economics, February 15, 200, pp Nandhi, G.N: Banking Marketing The Problems of Distribution, State Bank of India, Monthly Review, October, pp A. Subbiah and S. Jeyakumar, Customer Service in Commercial Banks A Theoretical View, Banking Finance, Volume: XXII, No. August 2009, p Sunil G. Losarwar, Indian Economic Parnoroma October 200, p.3.. S.B. Nageswara Rao and C.Madhavi, Customer Service Excellence Trends and Strategies Kanishks Publishers, Distributors, New Delhi, 2004, p Pauline Rowson, Providing Exceptional Customer Service, Finity Books New Delhi, 2007, p Saveeta Saggar, Commercial Banks in India, Deep and Deep publications Private Limited, New Delhi, 2005, p R.K.Uppal, Indian Banking Industry and Information Technology, New Century Publication, New Delhi, 200, p Mrs.P.Kavitha and Mrs.Jayanthi Customer perceptions and expectations for service quality in standard chartered bank with reference to Coimbatore city, SNS Journal of marketing, Volume 1, January-June 2010, Coimbatore. 34 The research journal of social sciences October 2017 volume number 10