SYNOPSIS

ON

Study of customer services in ICICI and SBI banks

in India

Submitted in Partial Fulfillment of the Requirement For

Award of The Degree of
Bachelor of Business Administration

SIKKIM MANIPAL UNIVERSITY (SMU)

DIRECTORATE OF DISTANCE EDUCATION

Submitted by

Name: Praveen Kumar

Roll no: 1405008405
Course: BBA

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INTRODUCTION & OBJECTIVE OF THE STUDY

INTRODUCTION
The recent trends show that most banks are shifting from a “product-centric
model” to a “customer-centric model” as customer satisfaction has become
one of the major determinants of business growth. In this context,
prioritization of preferences and close monitoring of customer satisfaction
have become essential for banks. Keeping these in mind, an attempt will be
made in this study to analyze the factors that are essential in influencing the
investment decision of the customers of the public sector banks. For this
purpose, Factor Analysis, which is the most appropriate multivariate technique,
has been used to identify the groups of determinants. Factor analysis identifies
common dimensions of factors from the observed variables that link together
the seemingly unrelated variables and provides insight into the underlying
structure of the data. Secondly, this study also suggests some measures to
formulate marketing strategies to lure customers towards banks. The study will
be basically tries to identify the customers are satisfied with their services
among ICICI bank and SBI bank and know about the Customer preferences
among ICICI and SBI bank.

OBJECTIVE
1. To study whether the customers are satisfied with their services among
ICICI bank and SBI bank
2. To know about the Customer preferences among ICICI and SBI bank
3. To give Suggestions to improve the services
4. To study the profile of the respondents of ICICI and SBI banks
5. To study the image of ICICI and SBI among the customers

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PROBLEM STATEMENT
The banking industry lack many other financial service industries is facing a
rapidly changing market, new technologies, economic uncertainties, fierce
competition, and specially more demanding customer’s: and the changing
climate has presented an unprecedented set of challenges. Customer service is
one integral part of any facet of banking and it defines future of any banking
organization. In banking sector, the whole range of activity and generation of
income swivels around the customer. From a very comfortable and peaceful
environment, now the Indian banking sector is characterized by stif
competition for the customer satisfaction and profit war between diferent
banking groups i.e. ( Private Bank vs. Nationalized Bank ). This paper tries to
analyze the comparative analysis of customer service among these two
categories of banks – Public and Private sector banks using the list of service
attributes based on SERVQUAL methods.

Literature Review
The banking sector in India has made remarkable progress since the economic
reforms in 1991. New private sector banks have brought the necessary
competition into the industry and spearheaded the changes towards higher
utilization of technology, improved customer service and innovative products.
Customers are now becoming increasingly conscious of their rights and are
demanding more than ever before. The recent trends show that most banks
are shifting from a “product-centric model” to a “customer-centric model” as
customer satisfaction has become one of the major determinants of business
growth. In this context, prioritization of preferences and close monitoring of
customer satisfaction have become essential for banks. Keeping these in mind,
an attempt has been made in this study to analyze the factors that are
essential in influencing the investment decision of the customers of the public
sector banks. For this purpose, Factor Analysis, which is the most appropriate
multivariate technique, has been used to identify the groups of determinants.
Factor analysis identifies common dimensions of factors from the observed
variables that link together the seemingly unrelated variables and provides
insight into the underlying structure of the data. Secondly, this study also
suggests some measures to formulate marketing strategies to lure customers
towards banks.

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METHODOLOGY TO BE USED

1. Sampling design:

Target population: The target population in this research refers to the bank
customers who are having an account in SBI bank and ICICI bank due to the
convenience in collecting the data. The respondents can be any gender, any
income level, any occupation and any education level.

Sampling unit: The sampling units are customers of ICICI bank and SBI bank.

Sampling method: For this research I use non-probability sampling. Zikmund

(1997) stated that in non-probability sampling, the probability of any particular
member of the population being chosen is unknown. The element in the
population does not have any probability attached to their being chosen as
sample subjects.
Snow ball sampling will be applied in this research. Snow ball sampling is used
to collect the data from the customers. Snow ball sampling refers to the
procedure that involves the selection of additional respondents based on
referrals of initial respondents.

Sample size: Ghauri (2002) stated that sample size depend on the desired
precision from the estimate. Precision is the size of the estimating interval
when the problem is one of estimating a population parameter. This research
selects 60 respondents as the sample size due to limited of time by asking
them that they are having an account in SBI bank and ICICI bank due to the
convenience in collecting the data. The respondents can be any gender, any
income level, any occupation and any education level.

Sampling plan: I will collect the data from the ATMs and also by visiting the
bank.

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2. Pilot Study
A pilot study can refer to many types of experiments, but generally the goal of
study is to replicate the full scale experiment, but only on a smaller scale. A
pilot is often used to test the design of the full-scale experiment. The design
can then be adjusted in time. This can turn out to be valuable: should anything
be missing in the pilot, it can be added to the experiment and chances are that
the full-scale (and more expensive) experiment will not have to be re-done.

Validity: The ability of a scale or a measuring instrument to measure what it is

intended to measure can be termed as the validity of the measurement.
Validity can be measured through several methods like face validity, content
validity, criterion – related validity and construct validity. For this comparative
study the researcher will be taken the face validity.

Face validity: Face validity refers to the collective agreement of the experts
and researchers on the validity of the measurement scale. The researcher will
give the questionnaire to the experts in banking field.

Reliability: In reliability the researcher has adopted the alpha method. The
reliability for the SBI bank ATM service is .630.It shows that the question
regarding to SBI ATM service is reliable. And for the internet banking service is .
767. And for the mobile banking service is .896. And for the core banking
system is .902. If the reliability result is .6 or above .6 the data is reliable. And
for this study the data is reliable because all the services are above .6.

3. Research methodology:

Sources of data:
 The data is basically primary in nature
 It will be obtained from the customers

Data Collection Method: It will be basically structured questioning, that is

personal interview with the aid of printed questionnaires.

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Data Analysis: Appropriate statistical analysis will be adopted. The data will be
tabulated and analyzed.

Limitations of the Study:

 The study will be limited to a particular branch of SBI and ICICI bank.
 Since the time is less I will take a sample of 100 people and it will not
reveal the whole population of a country
 The time constraint may be one of the major problems
 The lack of information sources for the analysis part

REFERENCES

BOOKS:
 Kothari C.R. (1990) Research Methodology: Method and Techniques;
Wishva Prakashan, New Delhi.
 Bodie.Z, Kane.A & Mracus. J : Essentials of Investments.
 Prof. E Gordon & Dr. K. Natrajan “Banking Theory Law and Practice”.
 “Indian financial System & Commercial Banking” by Khan Masood
Ahmed
 “Banking in India” by P.N.Varshney

MAGAZINS:
 Business World
 Business Today
 The Smart Manager

WEBSITES:
 www.centurionbop.co
 www.statebankofindia.com
 www.icicibank.com
 www.rbi.org.in
 www.iba.org.in
 www.knowledgestom.com

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