A

PROJECT REPORT

ON

“The Study of Customer Satisfaction in Private Sector and Public Sector

Banks in Haldwani”

THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (2018-2020)

SUBMITTED TO: SUBMITTEDBY :

DR. Deep Chandra Rishi Belwal

(Associate Professor) KavitaTakuli

FCBM Rahul Dhyani

Amit Arora

ShagunRathore

Faculty of Commerce and Business Management

Amrapali Group of Institutes

ShikshaNagar,Lamachaur

Haldwani,Uttrakhand

1
 STUDENT DECLARATION

We hereby declare that project report entitled The Study of Customer Satisfaction in

Private Sector and Public Sector Bank in Haldwani”is written and submitted
by us under the guidance of Prof. Dr. Deep Chandra, Associate Professor, Department of
Management Studies, Amrapali Group of Institutes Haldwani. The information incorporated
in this project is true and original to the best of my knowledge. This report is my original
work and has not been copied from any other sources.

COUNTERSIGNED BY: -

1. Rishi Belwal 180020500041

2. KavitaTakuli 180020500019
3. Rahul Dhyani180020500037
4. Amit Arora 180020500002
5. ShagunRathore 180020500045

MBA- IV SEMESTER

2
 ACKNOWLEDGEMNT

We would like to express our gratitude to all those who gave me the possibility to complete
this project. We want to thank the faculty and management staff of the esteemed college, for
giving permission to commence this project in the first instance.
We are highly indebted to Dr. Deep Chandra for their guidance and constant supervision as
well as for providing necessary information regarding the project &also for their support in
completing the project.

We would like to express our gratitude towards my parents & member of Amrapali Group of
Institutes for their kind co-operation and encouragement, which help us in completion of this
project.

We would like to express my special gratitude and thanks to institutes persons for giving me
such attention and time. Thanks and appreciations also goes to our colleague in developing
the project and people who have willingly helped me out with their abilities.

Special thanks to all the teammates for the cooperation and dedication towards this project
work.

Rishi Belwal 180020500041

KavitaTakuli180020500019
Rahul Dhyani 180020500037
Amit Arora 180020500002
ShagunRathore 180020500045

(MBA 4TH SEMESTER)

3
TABLE OF CONTENTS-

Topic PAGE NO.

Title Page 01
Student Declaration 02
Acknowledgement 03
Table of Content 04

Abstract 05

CHAPTER 1 06-20
1.1 Introduction 07-12
1.2Litreture Review 13-16
1.3 Objective of the Study 17
1.4 Research Methodology 18-19
1.5 Limitations 20
CHAPTER 2 21-36
4.1 Data Analysis & Interpretation 22-36
CHAPTER 3 37-44
5.1 Findings 38
5.2 Suggestions 39
5.3 Conclusion 40
5.4 Bibliography 41
5.5 Annexure 42-44

4
 ABSTRACT

Banking is to be considered as pure financial service industry and responsible

for the economic development of an economy uptoa great extent. Satisfaction of
customers is the vital for retaining existing customers and attracting prospective
customers to widen the level of operational activities in any concern. In India,
Private and Public banks are rendering financial services.

Today every business organizations are facing tough competition here no

exemption for financial services or Banking industries. Customer service is an
integral part of any organization it is necessary to identify the key success
factors in terms of customer satisfaction. To develop and to sustain business any
of the banks must have quality of customer service that can link up cordial
relation with the customer and result in to the satisfaction level of the customer
The Policies and Strategies of Private and Public banks are different that leads
variation in the customers’ satisfaction level. The objective of the research is to
get the satisfaction level of customers at public and private banks at Haldwani,
variations in satisfaction level and reasons responsible for variations in
satisfaction level or dissatisfaction in public and private banks.

5
CHAPTER-1

6
 INTRODUCTION

Definition of SatisfactionSatisfaction means a feeling of pleasure because one has

something or has achieved something. It is an action of fulfilling a need, desire, demand or
expectation. Every rationale customer compares the cost (price) and benefit (utility) of any
product or services. Customers compare their expectations about a specific product/services
and its actual benefits. This comparison results into three types of customers: dissatisfied
customers (expectations are more than actual performance of the service); satisfied customers
(actual benefits realized from services are equal to or more than expectations); indifferent
customers (actual performance and expectation are exactly equal). Westbrook (1981)
reported that overall satisfaction is the outcome of customer's evaluation of a set of
experiences that are linked with the specific service provider. It is observed that
organization's concentration on customer expectations resulted into greater satisfaction
(Peters and Waterman, 1982). It is said that satisfaction is a function of customer's belief
about fair treatment (Hunt, 1991). Customer satisfaction has become important due to
increased competition as it is considered very important factor in the determination of bank's
competitiveness (Bartell, 1993; Haron et al. 1994). Satisfaction is a post purchase evaluative
judgment associated with a specific purchase decision (Churchil and Suprenant, 1992). The
customer satisfaction is indispensable for the successful survival of any organization.
Continuous measurement of satisfaction level is necessary in a systematic manner
(Chakravarty et al.1996; Chitwood, 1996; Romano and Sanfillipo, 1996). To measure
customer satisfaction with different aspects of service quality, Parasuraman, Valerie Zeithaml
and Berry developed a survey research instrument called SERVQUAL . It is based on the
premise that the customers can evaluate a firm's service quality by comparing their
perceptions of its service with their own expectations. SERVQUAL is seen as a measurement
tool that can be applied across broad spectrum of service industries. In its basic form, the
scale contains 24 perception items and a series of expectation items, reflecting the five
dimensions of service quality. Their findings suggest that, in reality, SERVQUAL scores
measure only two factors: intrinsic service quality (resembling what is termed functional
quality) and extrinsic service quality (which refers to the tangible aspects of service delivery

7
and "resembles to some extent what Gronroos refers to as technical quality").Generic
dimensions customers use to evaluate service quality are credibility, security, access
communication, understanding the customer, tangibles, reliability, responsiveness,
competence, courtesy.
Customer Satisfaction in Banking Financial liberalization and deregulation has increased
the competition among banks to attract potential customers. Every banker tries to provide
superior services to keep satisfied customers. In India, emergence and growing popularity of
Indian banking products raises competition among Indian banks. Indian banks have to face
numerous challenges in the recent age. Firstly, they are competing with their peers and
secondly they have to cope with the conventional banks. Satisfied customer is the real asset
for any organization that ensures long-term profitability even in the era of great competition.
It is found that satisfied customer repeat his/her experience to buy the products and also
creates new customers by communication of positive message about it to others (Dispensa,
1997). On the other hand, dissatisfied customer may switch to alternative products/services
and communicate negative message to others. So, organizations must ensure the customer
satisfaction regarding their goods/services (Gulledge, 1996). SERVQUAL Scale Parasuraman
et al., (1988, 1991) developed.
SERVQUAL instrument to measure the dimensions of service quality that is frequently used
by researchers. It consists of 24 items that are compiled into five dimensions: tangibility;
reliability; responsiveness; assurance and empathy. This study applied five dimensions of
service quality that are explained as under: Reliability– This dimension shows the
consistency of services towards performance and dependability. Tangibles- It shows the
physical aspects of the services as physical facilities, appearance of personnel and tools &
equipment used for provision of services. Responsiveness- It reflects the willingness or
readiness of employees to provide quick services to customers. Assurance- This dimension
indicates the employees' knowledge, courtesy and their ability to incorporate trust and
confidence.

8
The Reserve Bank of India is the apex bank and the monetary authority, which regulates the
banking system of the country. It is the banker’s bank, it governs all the banks of the country,
like cooperative banks, commercial banks and development banks. The commercial bank
includes public sector banks, private sector bank, foreign bank, regional rural bank, local area
banks, etc. Before 1969, except eight banks (SBI and seven associate banks), all the banks in
India were private sector banks after which 14 commercial banks got nationalised in July
1969 and 6 in 1980.

Further, in the year 1993, Liberalisation policy is introduced, after which private banks came
into the picture.

Nowadays both the categories of banks are doing good in the sector by providing pronounced
facilities and services to their customers. But, tough competition can be seen between the
public sector and private sector banks. So, here we have discussed the differences between
Public Sector and Private Sector Banks.

Comparison Chart

9
 BASIS FOR
PUBLIC SECTOR BANK PRIVATE SECTOR BANK
COMPARISON

Meaning Public Sector Banks are the banks Private Sector Banks refers to the
whose complete or maximum banks whose majority of stake is
ownership lies with the held by the individuals and
government. corporations.

No. of banks 27 22

Share in banking 72.9% 19.7%

industry

Customer Base Large Relatively small

Interest rate on High Marginally lower

deposits

Promotion Based on seniority Based on merit

Growth Low Comparatively high

opportunities

Job security Always present Purely based on performance.

Pension Yes No

Definition of Public Sector Bank

Public Sector Banks are the banks whose more than 50% shareholding lies with the central or
state government. These banks are listed on stock exchange. In the Indian Banking System,
PSB’s are the largest category of banks and emanated before independence.

Over 70% of the market share in the Indian Banking sector is dominated by the public sector
banks. These banks are broadly classified into two groups, i.e. Nationalised Bank and State
Bank and its associates. There are 27 public sector banks in India, which differ in their size.
Of these, there are total 19 nationalised banks in India, while 8 State Bank of India
Associates.

10
Almost all PSB’s share same business model, organisational structure and human resource
policies. Hence, competition can be seen among these banks, in the market segment they
cater.

Definition of Private Sector Bank

Banks whose greater part of the equity is held by private shareholders and entities rather than
government is known as private sector banks. After most of the banks had got nationalised in
the two tranches, but those non-nationalised banks carried on their operations, known as Old
Generation Private Sector Banks. Further, when the liberalisation policy was coined in India,
the banks which got a license like HDFC bank, ICICI bank, Axis bank, etc. are considered as
New Generation Private Sector Banks.

Post liberalisation, the banking sector in India has taken a drastic change due to the
emergence of private sector banks, as their presence has constantly been increasing, offering
a diverse range of products and services to their customers. They posed a stiff competition in
the economy.

The satisfaction of the customers is very important factor in all service industries to enhance
and improve the profitability and financial performance of the concern. Banking sector is
purely financial service industry and the customer’s satisfaction is much more important to
run banking business successfully. The satisfaction level of the customers is varying due to
different kinds of banking services and their benefit to the customers. There are so many
factors that are responsible in the discrimination of the services for different types of banking
customers and lead to uneven satisfaction level. In India, Private and Public sector banks are
providing the financial services to the different types of customers in rural and urban areas.
The offices of the Private and Public sector banks are increasing rapidly .

It is obvious that the numbers of offices of Public sector are five times more than the Private
sector bank offices. But, the compound annual growth rates (CAGR) of Private sector Banks
are higher than two times of Public sector banks offices. This absolute and relative growth of
Public and Private sector banks directing towards enhancement of customers’ satisfaction
level to retain existing and attract new customers.

The points given below explain the differences between public sector and
private sector banks:

1. Public Sector Banks are the banks, whose maximum shareholding is with the
government. On the other hand, Private Sector Banks are the one whose maximum
shareholding is with individuals and institutions.
2. At present, there are 27 public sector banks in India, whereas there are 22 private
sector banks and four local area private banks.

11
 3. Public Sector banks dominate the Indian banking system, by the total market share of
72.9%, which is followed by Private sector banks, by 19.7%.
4. Public sector banks are established since long, while private sector banks emerged a
few decades ago, and so the customer base of public sector banks is greater than the
private ones.
5. Transparency in terms of interest rate policies can be seen in the public sector. The
interest rate on deposits offered by the public sector banks to its customers is slightly
higher than the private sector banks.
6. When it comes to promotion of employees, public sector banks consider seniority as a
base. Conversely, merit is the basis of private sector banks, to promote employees.
7. If we talk about growth opportunities in a public sector banks is quite slow in
comparison to a private sector bank.
8. Job security is always present in a public sector bank, but private sector bank job is
secure only when the performance is good because performance is everything in a
private sector.
9. Along with job security, one more pro, of a public sector bank is the after retirement
benefit, i.e. pension. On the contrary, pension scheme is not provided by private
sector banks to its employees. However, other retirement benefits like gratuity, etc.
are offered by the bank.
GENERAL BANKING SCENARIO IN INDIAThe general banking scenario in India has become very
dynamic now-a-days. The picture of Indian banking was completely different as the Government of
India initiated measures to play an active role in the economic life of the nation. Another Work done
by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the between the
customers expectation of performance and their perceived experiences of performance. This
provides the measurer with a satisfaction Gap which is objective and quantities in nature. According
to Garbrand customer satisfaction equals perception of performance divided by expectation of
performance. So we can recognize where we need to make changes to create improvements and
determine if these changes, after implemented, have led to increased customer satisfaction. If you
cannot measure it, you cannot improve it.-Lord William Thomson Kelvin (1824-1907).The Indian
banking system is characterized by a large number of banks with mixed ownership. The commercial
banking segment comprises 27 public sector banks in which the Government has majority
ownership, 40 private sector banks, and 33 foreign banks.. In 1991, by comparison, public sector
banks share of the total assets of the banking system was a little over 90 percent. The Reserve Bank
of India was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer
to Public Ownership) Act, 1948. In 1949, the Banking Regulation Act was enacted which empowered
the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India.” The Banking
Regulation Act also provided that no new bank or branch of an existing bank could be opened
without a license from the RBI, and no two banks could have Common directors. By the 1960s, the
Indian banking industry had become an important tool to facilitate the speed of development of the
Indian economy. The Government of India issued an ordinance and nationalized the 14 largest
commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalization of

12
6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the
government more control of credit delivery. With the second dose of nationalization, the
Government of India controlled around 91% of the banking business of India. Later on, in the year
1993, the government merged New Bank of India with Punjab.

LITERATURE REVIEW

Puja K and Yukti A reveals that Private Banks have more satisfied customers due to good
services. Private sector banks are successfully maintaining level of quantity of its customers
by providing better banking services than Public sector Banks. In any economy, innovative
technologies and changing expectations of markets, consideration of quality of each and
every service is important to enhance customers’ satisfaction level. Further, Puja K and Yukti
A advocated that success mantra could be customer centric orientation, where the customer
relationships management with its customers in Private sector Banks has been successful in
achieving its goals. However, Public sector banks have to improve in the area of dealing with
the customers. Private Banks need to focus on their loan and insurance services while Public
sectors banks need to improve their infrastructural facilities and provide some training to the
employees’ who are dealing with customers. Equipped with latest technology, developed
infrastructure and well trained employees, convenient office hours and locations of the
branches are the factors affecting the customers’ satisfaction level.

Mishra US, Sahoo KK, Mishra S and Patra SK (2010) explained that service quality,
customers satisfaction, customers retention, customers loyalty etc. are the major challenges to
in attracting and retaining customers in banking sector. Among all, customers’ satisfaction is
playing a significant role in attracting, retaining customers and creating brand loyalty among
the customers. Mishra US, Mishra BB, Praharaj S, and Mahapatra R observed that whole
banking sector is facing the challenge of attracting and retaining customers. They revealed
that public sector banks are better than private sector banks in attracting and retaining
customers. The main factors for opening a new account are convenient location and
reputation of the banks etc. Retired or higher age group business man customers prefer public
sector banks due to its high reputation. The customers of public sectors banks are more
satisfied than private sector banks. But, the major factors of dissatisfaction of customers in
public sector banks are enquiry counter and front office services. The private sector banks are

13
executing pure banking services while public sector banks have to deploy some social
responsibilities.

Nirmaljeet V and Prabhjot KM explains that infrastructural facilities in the branch not only
leads to customer satisfaction but overall improves the working of the branch revealed that
the Private Banks has advanced technologically but the reverse situation is available in Public
sector banks observed from their analysis that that customer satisfaction in banks vary
according to the quality of services. Nominal charges of services, location of bank branches
and staff attitude towards solving problems of customers are the factors responsible for
highest customer’s satisfaction. Private bank customers are more satisfied with their bank
because of their multiple branches at convenient locations and technological facilities. Public
sector banks are not so technologically advanced. But, Public sector banks are maintaining
satisfaction level of the customers due to its reliability, high reputation in the society and low
charges of the services. Customer care services of the Private Banks are better than Public
sector banks.

Vijay PG and Agarwal PK found in their research that the empathy, friendly attitude of
staff, and customer guidance, customer support are the behavioral treatment factors for high
customers’ satisfaction. Tangibility and empathy are the other factors create satisfaction
among customers. Private and Public sectors banks are needed to consider the weak areas of
the concern to enhance the level of satisfaction.

According to Doddaraju ME, the behavior of Public sector banks employees are not so
courteous comparatively Private sector banks. The Public banks should provide special
training and developmental programs to the employees engaged in directly dealing with
customers. Development of infrastructure and tangibility of the banks are also affecting the
satisfaction level of the customers. The new schemes of the investment and other related
informations should be published and displayed systematically. Customer relation
management and promotional schemes of the banks also increase satisfaction level.

Puri J, Yadav SP found that the public sectors bank performed better than private sector
banks in all dimensions and revealed that the new private sector banks are performing better
than the old private sector banks. The technical efficiency was better in public sector banks
comparatively private sector banks indicated that the time factor is very important for the
customers and customer relationship should be maintained to satisfy the customers. Location

14
of the bank, timely delivery of the services and customer oriented policy making are the
factors enhance satisfaction in Private sector banks resulting larger customers base. Public
sector banks are equipped with latest technology and technically trained staff. The
infrastructural appearances and extra services like home facility, round the clock facility etc.
and query resolution through telephone, lowest prices of the services and above all
availability of the multiple products are the special features in Private Banks to enhance the
level of satisfaction of the customers observed that there is a significant relation between
customer satisfaction and dimensions of service quality in Public sector commercial Banks.

Khushboo B, Naveena C and Neha J explained in their study that people are more satisfied
from the Private sector banks due to their better services provided by them in terms of fast
transactions, fully automatic computerized facilities, more and convenient working hours,
advisory services, skilled and co-operative staff, better customer relationship management
etc. But, there is need to make aware rural customers about the services of Private Banks. The
most facility availed by customers of the Public sector banks are ATM and least facilities are
demat a/c and foreign transfer of funds. The Private sector banks’ customers are using
internet or phone banking by ATM/ Debit card.

Justin P, Arun M and Garima S explains about Private sector banks’ fast services, quick
connection to the right person, efforts to reduce time in processing transactions, knowledge of
the banks products and responsiveness of the employees are positively associated with the
customers’ satisfaction level. In Public sector banks, slow services, low knowledge of
banking products appearance is the factors negative for the satisfaction level of the
customers.

Kesari S and Nitin G explain in his studies that Public sector banks should work to attain the
confidence of salaried class, lower age group customers, students and self-employed
businessman people. Private sector banks should give much attention to the lower income
group customers also because the higher income group found the services provided by banks
to be more effective but high service charges, which is out of the reach of the lower income
group of customers.

Seema S stated that the performance of urban banks on service delivery and customer
satisfaction exceeds the expectations of the customers in terms of physical facilities,
appearance of employees and attitude of employees to help customers.

15
Kumar J, Thamilselvan R stated in his research that private sector banks are competing
with the public sector banks in terms of Capital Adequacy, Asset Quality, Management
Efficiency, Earning Capacity and Asset Quality. They found that capital adequacy, assets
quality and liquidity in public sector banks while management efficiency, earning quality
banks was better, comparatively found that few customers are dissatisfied because of the poor
responsiveness and empathy of the employees in urban and rural area branches. Further,
concluded that there is need to give special training to the employees who are working in
rural areas directly dealing with the customers. Equipment of branches with latest technology,
Publication of required informations on the websites of the bank and unbiased behavior of the
employees are the factors lead to customers’ satisfaction in banking industry.

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 OBJECTIVES

 Identify the different factors of customer satisfaction.

 To know the satisfaction level of customers from Private

and Public sector banks.

 To provide suggestions to improve satisfaction level of

the customers.

Hypothesis Of the Study

H01“There is no significant relationship between Gender of the Customer and Bank

Preference (Private & Public)”

H02“Overall Satisfaction is independent of Employee Behavior,Location of the

Bank and Transection time

H03“There is no Significant relationship between Age of the Customer and

Bank Preference for Regular Transection (Private and Public)”

H04 “There is no significant relationship between age and Bank preference for
Online Services”

17
H05“There is no Significant relationship between age of the Customer and
Services of Bank (Private and Public)”

RESEARCH METHODOLOGY

The survey technique is intended to secure one or more items of information from a sample
of respondents who are representatives of a larger group. The information is recorded on a
form known as questionnaire. As data are gathered by asking questions from persons who are
believed to have desired information, the method is known as questionnaire technique.

REASONS FOR WIDE USE OF THIS METHOD:

 It can secure both quantitative and qualitative information directly from the
respondents.
 It is the only method of directly measuring attitudes and motivations.
 It is quite flexible in terms of the types of data to be assembled, the method of
collection, or the timing of research.
Meaning of Research

According to D. Slessinger and M. Stephenson in the Encyclopedia of social sciences define

research as the manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or
in the practice of an art´.

TYPE OF RESEARCH

1. Descriptive Research

Descriptive Research:

Diagnostic Research studies determine the frequency with something occurs or its association
with something else. In this project, information pertaining to customer needs satisfaction and
their demographic profile was collected; hence it is a descriptive research.

1) Primary data:

18
Meaning: Primary sources of data are the data which needs the personal efforts of collect it
and which are not readily available. Primary source of data are the other type of source
through which the data was collected.

Following are few ways in the data was collected:

i. Questionnaires:
It is the set of questions on a sheet of paper was being given to the of fill it, bases on which
the data was interpreted.

ii. Direct interviewing:

Direct interviewing involved the process where I asked the questions directly to the
customers and I got the feedback.

3) Sample size:

By using convenience sampling technique 106 respondents are selected for the purpose
of the study.

Respondents include the Customers of Private and Public Banks.

4) Period of study:

The study is undertaken in the duration of few days.

5) Research approach:

The survey method was adopted for collected the primary data. Survey research is
systematic gathering of data from respondent through questionnaire.

6) Research instrument:

The data for this research study was collected by survey technique using interview method
guided by questionnaire.

19
 7) Collection of Data:

Questionnaire and personal interviews are the methods that I have used for collecting the
data.

LIMITATION

 Time factor was the main limitation for the study as the project was restricted to small period.

 The research was limited only to the Haldwani so the result can’t be generalized to the whole
bank.

 All the information, which is taken, is based on primary and secondary data that has its own
limitation.

 Some students might not give the information due to lack of interest and knowledge.

20
CHAPTER-2

DATA
ANALYSIS
21
On The Basis of Hypothesis

:-Gender of the Customer and Bank Preference (Private & Public) :-

Association between Gender of the Customer and Bank Preference (Private & Public) has
been examined by using χ2test. Following hypothesis has been formed and tested at 5% level
of significant:
H01“There is no relationship between- “Gender of the Customer and Bank Preference
(Private & Public)”

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
a
Pearson Chi-Square 10.470 3 .015
Likelihood Ratio 11.255 3 .010
Linear-by-Linear .495 1 .482
Association
N of Valid Cases 106
a. 0 cells (0.0%) have expected count less than 5. The
minimum expected count is 6.74.

Interpretation:

Results of chi square test shows that there is a significant association between Gender of the
Customer and Bank Preference (Private & Public) and rejects to our H01 with:

χ2 = 10.470

P= .015

22
:-Overall Satisfaction and Employee Behaviour, Location of the Bank and Transection
time

Association between Overall Satisfaction is and Employee Behaviour, Location of the Bank
and Transection time ”has been examined by usingAnova Test. Following hypothesis has
been formed and tested at 5% level of significant:
H01“There is no relationship between Overall Satisfaction and Employee Behaviour,
Location of the Bank and Transection time.

ANOVAa
Model Sum of df Mean Square F Sig.
Squares
Regression 22.979 3 7.660 36.129 .000b
1 Residual 21.625 102 .212
Total 44.604 105
a. Dependent Variable: overall satisfaction
b. Predictors: (Constant), transaction time, location, staff behaviour.

Interpretation:

The p value is .000 which is less than 0.05.It implies that the hypothesis is rejected. Hence
there is a significant relationship between overall satisfaction, employee behaviour and
location of bank

23
:-Age of the Customer and BankPreference for Regular Transection (Private and Public)

Association betweenAge of the Customer and Bank Preference for Regular Transection
(Private and Public) has been examined by using χ2test. Following hypothesis has been
formed and tested at 5% level of significant:
H01“There is no relationship between- “Age of the Customer and Bank Preference for
Regular Transection (Private and Public)”

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
a
Pearson Chi-Square 14.432 4 .006
Likelihood Ratio 16.901 4 .002
Linear-by-Linear 8.761 1 .003
Association
N of Valid Cases 106
a. 3 cells (30.0%) have expected count less than 5. The
minimum expected count is 1.84.

Interpretation:

Results of chi square test shows that there is a significant association between Age of the
Customer and Bank Preference for Regular Transection (Private and Public)
and rejects to our H03 with:

χ2 = 14.432

P= .008

:-Age and Bank preference for Online Services:-

24
Association betweenAge and Bank preference for Online Services has been examined by
using χ2test. Following hypothesis has been formed and tested at 5% level of significant:
H03“There is no relationship between Age and Bank preference for Online Services”

Distribution of the respondents and results of the test are given in following table:

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
a
Pearson Chi-Square 16.048 4 .003
Likelihood Ratio 18.274 4 .001
Linear-by-Linear 6.507 1 .011
Association
N of Valid Cases 106
a. 3 cells (30.0%) have expected count less than 5. The
minimum expected count is 1.79.

Interpretation:

Results of chi square test shows that there is a significant association between Age and Bank
preference for Online Services and rejects to our H04 with:

χ2 = 16.048

P= .003

:-Age of the Customer and Services of Bank (Private and Public):-

25
Association betweenhas Age of the Customer and Services of Bank been examined by using
χ2test. Following hypothesis has been formed and tested at 5% level of significant:
H03“There is no relationship between Age of the Customer and Services of Bank (Private and
Public)

Distribution of the respondents and results of the test are given in following table:

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
a
Pearson Chi-Square 10.222 4 .037
Likelihood Ratio 10.490 4 .033
Linear-by-Linear 4.156 1 .041
Association
N of Valid Cases 106
a. 2 cells (20.0%) have expected count less than 5. The
minimum expected count is 2.22.

Interpretation:

Results of chi square test shows that there is a significant association between Age of the
Customer and Services of Bank (Private and Public) and rejects to our H05 with:

χ2 = 10.222

P= .037

Ques-1 Are you aware of products and services of Public and Private sector Banks?

Option No. of Respondents Percentage

Yes 98 92.45%
No 08 7.55%

26
 Total 106 100%

8%

Yes
No

92%

Interpretation:

From the data it is interpreted that 92.45% of the Respondents are aware of products and

services of Public and Private sector Banks and 7.55% are not aware about the products and
services.

Ques-2 Which Bank you prefer for regular transactions?

Options No. of Respondents Percentage%

Private Bank 39 36.80
Public Bank 67 63.20
Total 106 100%

27
 Private Banks
37%

Public Banks
63%

Interpretation:

From the data it is interpreted that 63.20% Respondents prefer Public Banks for regular
transactions and 36.80% respondents prefer Private Banks

Ques-3 Which Bank you prefer for Online Banking Services?

Options No.of Respondents Percentage%

Private Banks 38 35.84%
Public Banks 68 64.16%
Total 106 100%

28
 Private Banks Public Banks

36%

64%

Interpretation:

The interpretation through this data clearly shows that 64.16% respondents prefer Public Banks for
Online Banking Services and 35.84% respondents prefer Private Banks.

Ques-4 Are you satisfied with the services of the Banks?

Options No. of Respondents Percentage%

Highly dissatisfied 02 1.88
Dissatisfied 01 0.94
Neither dissatisfied nor satisfied 27 25.48
Satisfied 68 64.16
Highly satisfied 08 7.54
Total 106 100%

29
 64.16%

25.48%

7.54%
1.88% 0.94%
Highly Dissatisfied Dissatisfied Neither Satisfied Highly Satisfied
Dissatisfied nor
Satisfied

Interpretation:

From the data it is interpreted that 1.88% respondents are Highly Dissatisfied with the
services of the Banks, 0.94% are dissatisfied, 25.48% are neither dissatisfied nor satisfied,
64.16% are satisfied and 7.54% are Highly satisfied with the services of Banks.

Ques-5 In your opinion whose services are best?

Options No. Of Respondents Percentage%

Private Banks 59 55.66
Public Banks 47 44.34
Total 106 100%

30
 Private Banks Public Banks

44%

56%

Interpretation:

From the data it is interpreted that 55.66% of respondents feel Private Bank’s services are the
best and 44.34% respondents feels Public Bank’s services are the best.

Ques-6 Are you satisfied with the location of Banks in Haldwani?

Options No. of Respondents Percentage%

Highly dissatisfied 03 2.83
Dissatisfied 04 3.77
Neither dissatisfied nor satisfied 26 24.53
Satisfied 64 60.38
Highly satisfied 09 8.49
Total 106 100%

31
 Highly Satisfied 8.49%

Satisfied 60.38%

Neither Dissatisfied nor Satisfied 24.53%

Dissatisfied
3.77%

Highly Dissatisfied
2.83%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Interpretation:

From the data it is interpreted that 2.83% of respondents are Highly dissatisfied with the
locations of Banks in Haldwani, 3.77% are dissatisfied, 24.53% are neither dissatisfied nor
satisfied, 60.38%are satisfied and 8.49%of respondents are highly satisfied with the location
of banks in Haldwani.

Ques-7Are you satisfied with the behavior of bank's staff?

Options No. of Respondents Percentage%

Highly dissatisfied 04 3.77
Dissatisfied 04 3.77
Neither dissatisfied nor satisfied 31 29.25
Satisfied 61 57.55
Highly satisfied 06 5.66
Total 106 100%

32
 57.55%

29.25%

5.66%
3.77% 3.77%
Highly Dissatisfied Dissatisfied Neither Dissatisfied Satisfied Highly Satisfied
nor Satisfied

Interpretation:

From the data it is interpreted that 3.77% respondents are highly dissatisfied with the
behavior of bank’s staff, 3.77% are dissatisfied, 29.25% are neither dissatisfied nor satisfied,
57.55% are satisfied and 5.66% of respondents are highly satisfied with the behavior of the
bank’s staff.

Ques-8Are you satisfied with time taken to process the transaction in the bank?

Options No. of Respondents Percentage%

Highly dissatisfied 00 0
Dissatisfied 15 14.16
Neither dissatisfied nor satisfied 25 23.58
Satisfied 58 54.72
Highly satisfied 08 7.54
Total 106 100%

33
 54.72%

23.58%

14.16%

7.54%
0.00%
Highly Dissatisfied Dissatisfied Neither Dissatisfied Satisfied Highly Satisfied
nor Satisfied

Interpretation:

From the data it is interpreted that 00% of respondents are highly dissatisfied with the time
taken to process the transaction in the bank, 14.16% are dissatisfied, 23.58% are neither
dissatisfied nor satisfied, 54.72% are satisfied and 7.54% of respondents are highly satisfied
with the time taken to process the transaction in the bank.

Ques-9 Rate your overall satisfaction level with the bank.

Options No. of Respondents Percentage%

Highly dissatisfied 01 0.94
Dissatisfied 03 2.84
Neither dissatisfied nor satisfied 25 23.58
Satisfied 71 66.98
Highly satisfied 06 5.66
Total 106 100%

34
 Highly Satisfied5.66%

Satisfied 66.98%

Neither Dissatisfied nor Satisfied 23.58%

Dissatisfied
2.84%

Highly Dissatisfied
0.94%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Interpretation:

From the data it is interpreted that 0.94% of the respondents are highly dissatisfied with the
Bank, 2.84% are dissatisfied, 23.58% are neither dissatisfied nor satisfied, 66.98% are
satisfied and 5.66% of respondents are highly satisfied with the Bank.

Ques-10 Why people prefer private banks more?

Options No. of Respondents Percentage%

Better and prompt service 49 46.22
Behavior of staff 20 18.86
Interest rate 17 16.04
Time of processing transaction 20 18.88
Total 106 100%

35
 46.22%

18.86% 18.88%
16.04%

Better and prompt service Behaviour of staff Interest rate Time of processing
transaction

Interpretation:

From the data it is interpreted that 46.22% feel that better and prompt services is the reason to
prefer Private Banks more, 18.86% feels behavior of staff is the reason, 16.04% feels Interest
rate is the reason and 18.88% of the respondents feel Time of processing the transaction is the
reason they prefer Private Banks more.

36
CHAPTER-3

FINDINGS
 Majority of the Respondents are aware about the products and services of Public and
private Banks.
 Majority (64%) of Respondents prefer Public Banks for regular transactions.
 Public Banks are preferred by the majority of respondents for Online Banking
Services.
 Majority of the respondents are Satisfied with the services of the Banks. Some of the
respondents are neither dissatisfied nor satisfied.
 Private Banks’s services are the best in the opinion of majority of the respondents.
 Majority of the respondents are Satisfied with the location of the banks.
 Around 58% respondents are satisfied with the behavior of bank’s staff and around
30% respondents are neutral.
 Majority of the respondents are satisfied with the time taken to process the
transactions and 14% respondents are dissatisfied.
 Maximum respondents are satisfied with the Bank’s overall activities.

37
  Around 47% of respondents prefer Private Banks because of better and prompt
services.

SUGGESTION

 Staff should be knowledgeable about the services offered.

 Accounts should be handled carefully.
 Staff members should apologies for mistakes.
 Operation time should be reduced.
 There should be a personal touch between the customers and staff.
 Complains should be handled then and there.
 Customer’s instructions should be carried out carefully.
 Disagreements with customers should be avoided.

38
 CONCLUSION

In our study we have found that majority of the customers are more satisfied with the
services of private banks .The reason behind this is good behaviour of staff,location
and transaction time in private banks.
In today's world when all the organization are striving to retain customers , customer
satisfaction becomes more important.There is need to provide special training to the
Public Banks employees’ to deal cordially with the customers of different jobs,
employment and gender. Banks should be established at more convenient and easy
reachable places. There should be equipment of latest technology Public sector banks
to avoid inconvenience and delay.
Although, customers of Public and private Banks are satisfied but level of satisfaction
in Private banks is higher than the Public Banks due to some tangible and behavioral
consideration. In this research, there is only consideration of service quality
dimensions to customers’ satisfaction. So, there is further research scope available to

39
 get satisfaction level of Public and Private bank customers’ weighing various aspects
of loans and deposit schemes of Private and Public sector banks.

BIBLIOGRAPHY

 Kotler Philip (2000) Marketing Management , The Millennium Edition, Upper Saddle
River, Prentice Hall.
 Journal of Arts, Science & Commerce , E-ISSN 2229-4686 , ISSN 2231-4172
 Anis A, Ratwani B. Customers’ satisfaction in Indian banks: Problems and solutions.
Int J Econ Res 2017;14:69-76.
 https://www.ibef.org/industry/banking-india.aspx
 Malyadri P, Sirisha S. An analytical study on trends and progress of Indian banking
industry. J Bus Fin Aff 2015;4:136.

40
Annexure

Name

Age

Gender

Male
Female

41
 Prefer not to say

Ques-1 Are you aware of products and services of public and private sector Banks?

Yes
No

Ques-2 Which Bank you prefer for regular transactions?

Private Banks
Public Banks

Ques-3 Which Bank you prefer for Online Banking Services?

Private Banks
Public Banks

Ques-4 Are you satisfied with the services of the Banks?

Highly Dissatisfied
Dissatisfied
Neither Dissatisfied nor Satisfied
Satisfied
Highly Satisfied

Ques-5 In your opinion whose services are best?

Private Banks
Public Banks

Ques-6 Are you satisfied with the location of Banks in Haldwani?

Highly Dissatisfied
Dissatisfied

42
 Neither Dissatisfied nor Satisfied
Satisfied
Highly Satisfied

Ques-7Are you satisfied with the behaviour of bank's staff?

Highly Dissatisfied
Dissatisfied
Neither Dissatisfied nor Satisfied
Satisfied
Highly Satisfied

Ques-8Are you satisfied with time taken to process the transaction in the bank?

Highly Dissatisfied
Dissatisfied
Neither Dissatisfied nor Satisfied
Satisfied
Highly Satisfied

Ques-9 Rate your overall satisfaction level with the bank.

Highly Dissatisfied
Dissatisfied
Neither Dissatisfied nor Satisfied
Satisfied
Highly Satisfied

Ques-10 Why people prefer private banks more?

Better and prompt service

Behaviour of staff
Interest rate
Time of processing transaction

43