A

REPORT
ON
SOCIAL NETWORK VALUE
CAPSTONE PROJECT
EVALUATING AND MEASURING SOCIAL NETWORK VALUE – STUDY
OF DIFFERENT METHODS AND TOOLS AVAILABLE

Submitted By: - Arpit Mudgal

KHR2009PGDMF047
Institute for Technology and Management, Navi Mumbai
 CERTIFICATE

This is to certify that Mr. Arpit Mudgal, Roll No. KHR2009PGDMF047 has completed her
summer internship at Bank of India, New Delhi and has submitted this project report entitled
“Analysis of Core Business Strategies and Customer Satisfaction Level at Bank of India”
towards partial fulfillment of the requirements for the award of the Post Graduate in
Management 2009-2011.
This Report is the result of his own work and to the best of my knowledge. This project was
carried out under my overall supervision.

Date: 16 July 2010

Place: Institute for Technology and Management,

Dr. V.V. Sople Mrs. Rekha Kodkani

(Deputy Director, ITM B-School, (Branch Manager, Bank of India,
Navi Mumbai and Project Faculty Guide) Kharghar, Navi Mumbai)

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 TABLE OF CONTENTS
Page Number
ACKNOWLEDGEMENTS 6
EXECUTIVE SUMMARY 7

CHAPTER 1: INTRODUCTION 8-13

1.1 PROBLEM OF THE STUDY 11
1.2 OBJECTIVES OF THE STUDY 11

CHAPTER 2: METHODOLOGY
14-16
2.1 UNIVERSE OF THE STUDY 14
2.2 LOCALE OF THE STUDY 14
2.3 TYPE OF RESEARCH 14
2.4 SAMPLE SELECTION 15
2.5 DATA COLLECTION 15
2.6 DATA ANALYSIS 15
2.7 FIELD EXPERIENCE 17
2.8 LIMITATION OS THE STUDY 17
2.9 BRIEF OUTLINE OF THE PROJECT 18

CHAPTER 3: MODULE 1 – CORE BUSINESS STRATEGIES 19-29

(BUSINESS MODEL) OF BANK OF INDIA
3.1 BUSINESS MODEL OF BOI 19
3.2 THREE PILLARS OF BANK STRATEGY 21
3.3 STRUCTURED SALES FORCE 22
3.4 BUSINESS PROCESS RE- ENGINEERING 23
3.5 MARKETING AND PUBLICITY 25

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 3.6 COMPETITORS ANALYSIS 26
3.7 OPERATIONAL STRATEGIES 27

CHAPTER 4: MODULE 2 – CUSTOMER 29-37

SATISFACTION SURVEY AND ANALYSIS

CHAPTER 5: MODULE 3 – COMPRISON OF 38-39

PERFORMANCE OF VARIOUS BANKING PRODUCTS
AT FOUR BRANCHES

CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS 41-42

BIBLIOGRAPHY 43

APPENDIX 1: QUESTIONNAIRE 44-47

APPENDIX 2: BANK OF INDIA PROFILE 48
APPENDIX 3: WEB PAGES 48-51

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 ACKNOWLEDGEMENTS

Until and unless one does not venture into the real world, he/she never gets to know how
tough the real world can be. And even tougher than that is enumerating and enlisting all the
individuals whose contributions went into making of this project.
I wish to convey my sincere thanks and gratitude to all those who have directly and indirectly
helped me to accomplish the task. I would like to thank Ms. Rekha Kodkani (Branch
Manager, Kharghar, Navi Mumbai) and Mr. Gaurav Gupta (Marketing Executive, CBD
Belapur Branch) for believing in me and assigning me this task.
I would like to extend my heartiest gratitude towards everyone who has helped me in
providing valuable inputs for shaping up this project for what it is now.
Above all, I am extremely thankful to Dr. V.V.Sople who had been a helping hand at all
times. Throughout the internship project, he has been a true guide and has been supporting
me. Without his continuous help and motivation, this project would not have been possible.
Besides, I would also like to thank all my colleagues, friends and family for being the pillars
of immense support and strength.

(Arpit Mudgal)

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 EXECUTIVE SUMMARY

The banking industry like many other financial service industries is facing a rapidly changing
market, new technologies, economic uncertainties, fierce competition and more demanding
customers and the changing climate has presented an unprecedented set of challenges.
Banking is a customer oriented services industry, therefore, the customer is the focus and
customer service is the differentiating factors.

The banking industry in India has undergone sea change since post independence. With
liberalization and opening up of the economy in the 90s and the government's decision to
privatize banks by reduction in state ownership culminated in the banking reforms based on
the recommendations of Narasimha Committee. The prime mover for banks today is profit,
with clear indications from the government to 'perform or perish'. Banks have also started
realizing that business depends on client service and the satisfaction of the customer and this
is compelling them to improve customer service and build up relationship with customers.

The project highlights the functional areas of Bank of India, a banking services organization.
I was the Summer Intern (Marketing) and was assigned the task of customer relationship
management. Study and Analysis of BOI various financial products and their distribution
channels and promotional strategies. Study E-Banking, E-Card and other online services
given by BOI and recommendations to make them more effective. I was assigned the task
market research (100 samples) to study the customer perception and their satisfaction levels
with alternative channels (ATM, Internet & Mobile banking) at Bank of India, Kharghar. And
design positioning strategy for mobile banking.
The project is broadly divided into three parts.
The first part deals with the core business strategies and business model of Bank of India. It
also throws light on the various new product lines in which the bank has ventured recently.
The second part deals with the customer profiling for the different branches and conducting a
Customer Satisfaction Survey. It deals with the comparative analysis of satisfaction level of
customers at Bank of India with the satisfaction level from the services provided by the
private banks. Further, it spotlights the analysis of the questionnaire filled by 100 customers
randomly selected from the Mumbai branches and also some private bank.
The third part of the project deals with the collection of secondary data that has been obtained
to support my findings from the survey. Finally, the project elucidates the findings,
conclusion and recommendations.

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 CHAPTER 1: INTRODUCTION

Definition of Banking
Banking means accepting for the purpose of lending or investment, of deposits of money
from the Public, repayable on demand or otherwise and withdraw able by cheques, draft,
order or otherwise.
Banking is a crucial economic function and forms an integral part of nation’s economy. A
healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system,
with one of the largest banking networks in the world, has witnessed a series of reforms over
the past few years like the deregulation of interest rates, dilution of the government stake in
public sector banks (PSBs), and the increased participation of private sector banks. The
growth of the retail financial services sector has been a key development on the market front.
Indian banks (both public and private) have not only been keen to tap the domestic market
but also to compete in the global market place. New foreign banks have been equally keen to
gain a foothold in the Indian market

Since Independence, the Indian banking sector has been experiencing phenomenal growth.
Though the commercial banks were largely confining their activities to urban affluent
customers and to industry, trade and commerce, the nationalization of several commercial
banks since 1969 have forced these banks to undertake aggressively various programs
including: branch expansion in the rural and semi-urban areas, reallocation of bank credit in
favor of priority sectors like agriculture, small-scale industry, transportation, exports and
distribution of food and other agricultural products, and fixed interest rates for various types
of deposits, thus expanding their horizon of customer interface. The banking industry in India
has been a witness to several regulatory changes in the last few decades, which have not only
facilitated the entry of private and foreign banks, but also have enhanced the expectations of
the customers with regards to service delivery in banks. Global competition has further forced
the banks to explore the trade-off between winning new customers and retaining old ones,
thus focusing on customer relationship management.

Like other industries, banking and financial services companies have reached the
conclusion that the relationship with the customer should not (metaphorically and literally)
end at the bank door. Customer access after the transaction adds value to the transaction.

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 Fig.2.1-Distribution of the Indian banking industry

The Banking Sector Today

Robust regulatory system aligned to

international standards
Efficient monetary management

Fig.2.2-Banking sector

Today, banking is also seen as a business related to information on financial transactions,

since Information Technology (IT) has been pivotal to effective customer service at lower

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costs. For example, IT-based services such as automated teller machines (ATM), electronic
fund transfer, anywhere-anytime banking, smart cards, net banking, etc. are now very
common to Indian customers. However, the diffusion of technology is somewhat slow in
public sector banks when compared to private sector banks and foreign banks (Banker, 1998).
In the case of private sector banks, bank automation has been far easier as their size is small
and they also started their operations afresh. The foreign banks do already have the advantage
of good automation experience in several banking applications, yet their transactions are
confined to a few major cities in India.

Sector Snapshot
Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for
72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly expanded
their foot prints after nationalization of banks in India in 1969 and further in 1980. Although
there is a restrictive entry/expansion for private and foreign banks in India, these banks have
increased their presence and business over last 5 years.

Within the group of banks, foreign and private sector banks grew at higher rate than the
industry from FY03 to FY08 primarily because of lower base effect and rapid expansion
undertaken by these banks. In FY09, overall growth in credit and deposits was led by PSBs.
However, growth of private and foreign banks was significantly lower in FY09 due to their
high exposure to stressed sectors and problem at parent level for foreign banks.

Over
Over66,000
66,000branches
branches
Public
Publicsector:
sector:46,000
46,000
Private
Privatesector:
sector:5,500
5,500
Foreign: 190
Foreign: 190
Regional
Regionalrural:
rural:14,400
14,400

Source: ICICI bank

Fig.2.3-Indusrty size

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Customer Perception and Customer satisfaction:
Customer perception is an important component of our relationship with our customers.
Customer satisfaction is a mental state which results from the customer’s comparison of
expectations prior to a purchase with performance perceptions after a purchase. A customer
may make such comparisons for each part of an offer called ‘‘domain-specific satisfaction’’
or for the offer in total called ‘‘global satisfaction’’. Moreover, this mental state, which we
view as a cognitive judgment, is conceived of as falling somewhere on a bipolar continuum
bounded at the lower end by a low level of satisfaction where expectations exceed
performance perceptions and at the higher end by a high level of satisfaction where
performance perceptions exceed expectations.

Customer Perception of Services:

These characteristics of service also make service unique and different from goods as
described below
a. Intangibility.
b. Heterogeneity.
c. Inseparability.
d. Perishability.
e. Non-returnable.
f. Needs-match uncertainty.
g. Interpersonal.
h. Personal.
i. Psychic.

Measuring Customer Perception in the Banking Industry

The domestic Indian economy is an increasing pie which offers extensive economies of scale
that only large banks will be in a position to tap. With the phenomenal increase in the
country's population and the increased demand for banking services; speed, service quality
and customer satisfaction are going to be key differentiators for each bank's future success.
Thus it is imperative for banks to get useful feedback on their actual response time and
customer service quality aspects of retail banking, which in turn will help them take positive
steps to maintain a competitive edge. The working of the customer's mind is a mystery which
is difficult to solve.
This exercise in the context of the banking industry will give us an insight into the parameters
of customer satisfaction and their measurement. This vital information will help us to know
how banks can build satisfaction amongst the customers and customer loyalty in the long run
which is an integral part of any business. 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.

1.1 SCOPE OF THE STUDY

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 The shortcomings of the research coupled with the growing evidence of the influence of
service quality on the financial viability of firms demonstrate the need for designing the
present research. The competition unleashed by the combination of three major segments of
banking in India i.e. private, public, and foreign banks also necessitated the investigation into
the profiling and satisfaction of banking customers at Bank Of India.
1.2 OBJECTIVES OF THE STUDY
An objective (or goal) is a projected state of affairs that a person or a system plans or intends
to achieve—a personal or organizational desired end-point in some sort of assumed
development. Many people endeavor to reach goals within a finite time by setting deadlines.
No project is done with certain goals and objectives in mind.
PRIMARY OBJECTIVES:

 To understand core business strategies of a banking institution such as Bank of

India.
 To conduct a customer satisfaction survey in Bank of India.
 Make recommendations and suggestions based on the analysis of the existing service
quality in different branches of the bank to enhance their service quality and expand
their customer bases.

SECONDARY OBJECTIVES:

 To find out how the relationship between the different demographic factors such as
age, income, occupation and the various service quality dimension
 To do analysis on E-banking and Mobile banking service quality dimensions.

BANK OF INDIA -TODAY

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The Bank has made a rapid growth over the years and blossomed into a mighty institution
with a strong national presence and sizable international operations. In business volume, the
Bank occupies a premier position among the nationalized banks.

The 100-year-old Bank is the 3rd largest nationalized bank and has total network of 2654
branches comprising of 2630 Indian branches and 24 foreign branches/offices, 163 extension
counters and 122 specialized branches. The Bank’s total Business Mix is Rs.178391 crore
comprising of Deposits of Rs.103293 crore and Advances of Rs.75097 crore
(September2006). The Bank registered a healthy net profit of Rs.701 crore during the
Financial Year 2005-2006 and Rs.421 crore in the 1st half year of the current year. The Bank
has a dedicated band of 42068 employees on rolls.

The Bank is poised for achieving a Business Mix of Rs.200000 crore, Operating Profit of
Rs.2000 crore and a Net Profit of Rs.1000 crore during the year 2006-07.

The Bank is truly India’s International Bank with presence in 12 countries including USA,
UK, France, Kenya, Japan, Singapore, Hong Kong, China, Vietnam, Indonesia, Cayman
Islands and Jersey in all time zones. International presence spans 4 continents and contributes
over Rs.30000 crore of the Bank’s business.

The Bank has undertaken Lead bank responsibility in 46 districts covering a population of
1262 Lacs and monitoring an annual credit of Rs.12000 crore (app.). The districts are
situating in Madhya Pradesh (12), Maharashtra (12), Uttar Pradesh (7), Jharkhand (13) and
Orissa (2).

7 Regional Rural Banks have also been sponsored by the bank with a network of 976
branches and total business mix of Rs.7240 crore. With a 24 million strong and loyal
customer base, the Bank is set to scale new heights. 2.5 million customers have been brought
into the Bank’s fold during the previous one year.

Government shareholding in the Bank is at 69.47% and the bank came out with its maiden
public issue in 1997. Shareholder funds amounted to Rs.4552 crore as at March 31,2006.

Besides its own branches/offices, the Bank –

o Has joint venture in Zambia, viz. Indo-Zambia Bank Ltd.

o Has a subsidiary, viz. BOI Shareholding Ltd., to manage Clearing and Settlement
functions of the Bombay Stock Exchange.

o Is the highest stakeholder in Securities Trading Corporation of India (STCI)- the

largest Primary Dealer of the Country.

The Bank has always been in the forefront in Priority Sector lending with achievement well
above various prescriptions in this respect.

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 o Priority sector Advances at September-end, 2006 was 47.2% (against stipulated 40%)
of the Net Bank Credit.

o Agricultural Advances at 19.3%(against stipulated 18%).

o The Bank had the distinction of women beneficiaries accounting for 7.08% of
domestic credit well above the minimum benchmark of 5%.

Disbursement under Special Agriculture credit Plan (Rs.4300 crore) surpassed the target of
Rs.4200 crore of the FY 05-06 and 154000 new farmers have brought into bank’s fold during
the year.

Non Performing Advances have been contained with Gross NPA at 2.96% and Net at 1.07%.
This is in line with International Banks.

Over 64% of the branches (1685) are located in rural and semi-urban areas reflecting the
Bank’s urge to take banking to under-banked. A.C. Nielson ORG-MARG has rated the Bank,
India’s most Trusted Service Brand, among all nationalized banks. It was ranked 24 th among
India’s Top 500 companies in the year 2004 by Dun & Bradstreet and 20th by Forbes
magazine.

BOI has become a household trusted name and Bank of India has become a part of society.
Bank has built ‘Relationship Beyond Banking’. This has provided with the flavour of
satisfaction and transformed the institution into ‘Bank of choice’. Bank of India, Union Bank
of India and Dai-ichi Mutual Life Insurance Co., a leading Japanese company in life
insurance field have signed an MOU for setting up a Joint Venture Life Insurance Company.

MOBILE BANKING SERVICES

 Your Mobile Your Bank

Away from home, bills can be paid or money sent to the loved ones or balance enquiries done
anytime 24x7!!! -convenience, simple, secure, anytime and anywhere banking.
Mobile Banking Service over Application/ Wireless Application Protocol (WAP)
The service is available on java enabled mobile phones over SMS/ GPRS where the user is
required to download the application on to the mobile handset. The service can also be
availed via WAP on both java and non java phones with GPRS connection.
The following functionalities are available in the application based service/ WAP:
 Funds transfer (within and outside the bank –using NEFT)

 Enquiry services (Balance enquiry/ Mini statement)

 cheque book request

 Demat Enquiry Service( (Portfolio value,Request for DIS booklet, Value of

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 holdings, statement of charges, Transaction status etc.)

 Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations,
Subscriptions

 M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV

connections and receive recharge pins for DigitalTV/Videocon d2h, Merchant
payment, SBI life insurance premium)

 
Business Rules governing Mobile Banking Service over Application / WAP.
 The Mobile Banking Service will be available to all the customers having Current/
Savings Bank Account(Personal segment). The customers will have to register for
the services. 
 Daily transaction limits for fund transfer/ bill/ merchant payment is Rs.50,000/- per
customer with an overall calendar month limit of Rs.2,50,000.00  

 The service will be carrier-agnostic i.e. all customers can avail the mobile banking
service with the Bank irrespective of the service provider for their mobiles.

 The service is free of charge. However, the cost of SMS / GPRS connectivity will
have to be borne by the customer.

 
Mobile Banking Service over USSD (Unstructured Supplementary Service Data)
 Mobile Banking Service is now available on non java mobiles without GPRS
connection also.

 The service is currently available with Aircel, Idea, MTNL (Delhi) Vodafone and
Tata Docomo connections.

 The service is session based and requires a response from the user within a
reasonable time.

 The Daily Transaction limit is Rs1000/- per customer with an overall calendar
monthly limit of Rs5000/-.

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CHAPTER 2: METHODOLOGY
Methodology (also called manner) is defined as the analysis of the principles of methods,
rules, and postulates employed by a discipline. For instance, “Since customers were not
available to complete the survey about academic success, we changed our methodology and
gathered data from instructors instead”. In this instance, the methodology (gathering data via
surveys, and the assumption that this produces accurate results) did not change, but the
method (asking teachers instead of students) did.

2.1 UNIVERSE OF THE STUDY

The Universe is defined as everything that physically exists: the entirety of space and time,
all forms of matter, energy and momentum, and the physical laws and constants that govern
them. However, the term ‘universe’ may be used in slightly different contextual senses. Here,
the universe was the different branches as well as zonal office of Bank of India all over Delhi
(North, South, East and West Zones).

2.2 LOCALE OF THE STUDY

Locale is a subset of the large universe. The scope of the study was narrowed down to the
branches of Bank Of India in East Delhi region only . I was assigned the four branches viz.
Gandhi Nagar, Shahdara, Dilshad Garden, Patparganj.

2.3 TYPES OF RESEARCH

The research conducted was both exploratory and descriptive in nature.
Exploratory research was planned to be conducted by using secondary data set. This
research helped not only in resolving any ambiguity in the problem statement but also in
understanding of the dimensions of the problem in a better way. The exploratory research
involved reading and analyzing various publication and journals. In exploratory research the
main objective was to gain more insight into the various factors that affect customer
perception of services provided by banks, the perception of service of the banks will depend
on various attributes of customer too(customer age group and occupation).Here we also
found out that consumer perception is dependent on RATER Model factors. So our research
objective gets modified to finding out these five factors.
This exploratory research was followed by a comprehensive descriptive research that was
conducted on a sample size of 120 customers from four different branches of Bank Of India
such that these customers also avail the services of one or the other private banks. The
research included collection of the primary data through sample surveys and questionnaires
from the target customers. Questionnaire was designed to find out the various factors which
impact customer perception on banking service.

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2.4 SELECTION OF SAMPLE
• Source of Data (Target customer with different age group and different occupation)
• Respondents = 100
• Sampling type: simple random sampling.
• Sample selection: Convenience sampling
• Unit of analysis : Individual

2.5 DATA COLLECTION

The primary source of data was a questionnaire consisting of 22 questions and the data was
collected in the questionnaire itself. The primary reason for designing the questionnaire was
to check the level of satisfaction of the customers (students) with Bank of India and any
private bank with which they deal. Also, the questionnaire proved useful in finding out the
difference in the patterns of performance of the different categories of banking services and
products in different branches.
The data and findings enabled me to give recommendations and suggestions regarding the
scope of improvement of individual branch of the bank that was considered for the study and
also for the bank as a whole.
The secondary sources of data were the website of the bank, Journals, Reports, Internet
(websites of different banks), and Brochures/Pamphlets etc.

2.6 DATA ANALYSIS

Analysis (from Greek "a breaking up") is the process of breaking a complex topic or
substance into smaller parts to gain a better understanding of it. Analysis is done in various
fields including mathematics, economics, science, computers etc.
The data collected has been analyzed both qualitatively and quantitatively by formulation of
requisite tables, graphs etc with MS Excel.

Here first the response of the 100 questions is fed into MS Excel. This is done using a like
scale from 1-5(Strongly disagree- Strongly Agree). The main aim is to basically find out the

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difference in the expected service level and perceived service level from the concerned
branch of Bank of India and any of the private bank with which each of the target customer
was dealing.
The demographic information that was collected from the survey was then used to do a
customer profiling for the above mentioned four different branches of Bank of India.
After that the entire analysis done was compared with the secondary information about the
business that was done by the different branches of the bank.

2.7 FIELD EXPERIENCE

Despite the hardships faced during time consuming procedure, I had an enriching experience
as the learning involved was immense. Gathering information from customer of four different
branches) was challenging as I had to convince the customers to answer the questions without
being biased and also it was difficult to get the questionnaire filled completely. My
knowledge base and communication skills were strengthened to a great extent.

2.8 LIMITATIONS OF THE STUDY

The time spent for canvassing the bankers and customers to get the questionnaire filled was
considerable. Further, there was reluctance on the part of customers to respond to the
questionnaire. The cost and time factors are the other limitations. However adequate care was
taken to collect unbiased data.

2. 9 BRIEF OUTLINE OF THE PROJECT

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 The project is divided into three modules viz.
Module 1:- This module will deal with the product portfolio and core business strategies of
Bank of India. It will elucidate an application of various marketing principles which I have
learnt so far. It will discuss the following topics:-

 Business Area of Bank of India.

 Understanding the Retail and Corporate Banking Market.
 Marketing Strategies and Operations at Bank Of India.
 Product Portfolio of Bank of India
 Holistic marketing at Bank of India which includes Internal, Integrated, Relationship and
Performance Marketing.
 Competitors Analysis
 Market Potential which discusses further markets where Bank Of India can enter into.

Module 2:- This is most important module of the project. It will consist of two parts.
The First part of this Module will comprise of a Customer Satisfaction Survey based on 22
Questions which can classified into 5 dimensions of RATER Model i.e. Tangibility,
Reliability, Responsiveness, Assurance, Empathy. The result of this Questionnaire will be
analyzed using MS Excel.
A comparison has been made between the satisfaction level of customer of a PSU bank like
Bank of India and a private bank.
Also, an analysis has been done in which we have tried to study the differences in the means
of the weightage assigned to the five dimensions caused by the various demographic factors
like age, income, occupation using One way ANNOVA.
Module 3:- In the last module we have tried to analyze the performance of branches for the
different product categories and have tried to relate their performance to their dimensional
scores. Also, we have tried to suggest marketing strategies to the individual branches and also
for the Bank as a whole. We have also tried to focus on enhancing the sales of third party
products such as SUD LIFE.

CHAPTER 3: MODULE 1 – CORE BUSINESS STRATEGIES (BUSINESS MODEL)

OF BANK OF INDIA

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3.1 BUSINESS MODEL OF BANK OF INDIA
The business model of Bank of India has undergone an immense change keeping in mind the
future requirements of the banking sector in the future, . Hence, a study on organizational and
business development of Bank of India and its various operations is the most prudent thing to
do.
This module primarily focuses on the study of various key areas of business, with an in depth
analysis of important strategies related to product design and development, marketing efforts,
customer service, branch network expansion and henceforth all the aspects of business
development and other initiatives that have been implemented.
Administrative set up on the line of Strategic Business Units (SBUs) and segmentation
of branches according to their business focus continued to serve as business
development model. The different classes of business focus are:

 Resource Centre
 Profit Centre
 Priority Sector Centre and
 General Banking Centre

On this basis there have been different strategic business units that have been created. These
are:

Large Corporate

Mid Corporate

SME

Retail

International

Agriculture

Treasury

DIFFERENT SBU’s OF BANK OF INDIA

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  Large Corporate

1) Customers with limit above Rs. 25 Crore from specialized branches.

 Mid Corporate

1) All customers with limit Rs. 5-25 Crore.

2) Customers with limits above Rs. 25 Crore in cities with no large corporate branch.

 SME

1) SME customers with limit less than Rs. 5 Crore

2) Bank’s current account and cash management products
3) Government business products(e.g. pension, tax collection)

 Retail

1) Deposits (savings, term deposits)

2) Loans( housing, auto etc.)
3) Credit cards, third party products and demat services.

 International

1) Well spread branch network and banking clients

2) 23 foreign branches and 5 representative offices

 Agriculture

1) Agriculture credit and financing

2) Credit Cards
3) Debt swap scheme
4) Credit counselling
5) Financial inclusion

 Treasury

1) Dealing in government and other securities

2) Money Market operations
3) Forex operations

3.2 THREE PILLARS OF BANK STARTEGY:

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 SERVICE
SALES PRODUCT
FORCELEVEL ENHANCEMENT
DESIGN PROCESS
MANAGEMENT

PRODUCT IMPROVEMENT & SERVICE ENHANCEMENT INITIATIVES

 Bank’s bouquet of products was made more attractive by providing value added
services like free air accidental insurance to SB Diamond customers, single premium
insurance cover for educational loans,
 BOI Swastha Bima (Medi-Claim) and comprehensive domestic travel insurance in tie
up with NICL specially for bank’s account holders.
 Financing against warehouse receipt and produce marketing alongwith tie-up for
collateral management, financing against gold coins (apart from gold jewellery) and
Rural Sanitation Scheme were launched.
 The project on integrated development of villages covered 128 villages spread over 17
states and 78 districts.
 Core Banking Solution implemented in 2593 branches covering 95.6% of domestic
business mix.
 Bank’s revamped web-site using latest Next Generation Web 2.0 technology was
launched.
 Around 35000 ATMs made available to our card holders through owned as well as
shared ATMs network.
 SMS alerts for cheque book request and any debits in accounts through any of the
delivery channel like ATM, Internet Banking provided to all customers.
 Solar Power System implemented at 143 locations to overcome acute Power shortages
and erratic power supply as well as Bank’s commitment towards ‘Go Green’.

3.3 STRUCTURED SALES FORCE ROLL OUT

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  Stay out of branches
 Meet customers on premises
 Take a target
o Rs crores by each product

 Resources:
o Business cards

o Tie

o Bag

o 50 litres of petrol

o Rs 500 allowance

PERSONAL BANKING AND SALES BUSINESS BANKING AND SALES RETAIL HUB AND SALES FORCE
FORCE FORCE

Personal banking pilots Business banking pilots also • Retail loans

launched in two cities launched in two cities - Housing
- Mortgage
• Hyderabad • Pune - Education
• Ahmedabad • Surat - Auto loan

Growth targets set for Growth targets set for

• Redesigned • Redesigned
savings current
account account
product product
• Term deposits • SME credit
Savings bank (limits upto
accounts Rs. 5 cr)
• Credit cards
• 3rd party
products

Page 22 of 52
3.4 BUSINESS PROCESS RE-ENGINEERING

In the Organization wide internal Business Process Reengineering project (christened ‘Star
Gaurav’), the Bank formulated Business Strategies to

1) Identify niche markets,

2) Establish Product Profitability studies
3) Redesign processes to leverage the strengths of Core Banking Solution
4) Restructured the Organization to make it more efficient, nimble and market oriented.

PRINCIPLES OF REDESIGN FOR BANK OF INDIA

 Business focus
o Customer / product responsibility at HO for focus
o Measurable accountability for P&L – growth in volume, income and profit
o "End to end" responsibility; control over resources
 Sales force
o Sales teams aligned with customer focussed or product focussed units in the
bank and are independent of branches
o Senior level accountability and responsibility at HO for sales channel
performance
 Redesign with due recognition of bank's starting position and legacy
o Implement in a phased manner
o High impact, easier changes first

Project ‘Star Gaurav’ was implemented in 36 major centers across the country to increase
productivity of marketing staff through various structured sales initiatives, to provide better
ambience at the branches including creation of exclusive service area for diamond customers
with dedicated relationship manager and to create retail hubs to reduce turn around time in
sanctioning of retail loans by developing expertise in managing such assets. The project has
achieved its objective as the productivity of staff more than doubled in these Centers.

For management of Pre-sale and Post-sale activities in the Bank a software solution called
Sales Force Automation (SFA) and Customer Complaint Management System (CCMS) has
been installed. The package is used for tracking the leads till the end and for management of
customer complaints.

Also, a comprehensive HR performance management has been implemented.

At 43 major Centers across India, the Bank has centralized back office operations like
outward/inward clearing processing, account opening, pension processing, ATM request
processing and cheque book requests which lead to improvement in process efficiencies and
productivity resultantly in saving the manpower. The saved manpower redeployed in
customer facing activities.

Page 23 of 52
The process of upgrading the Call Centre of the Bank is in progress by making it accessible
in entire country on local call rates and by entertaining service requests of customers through
Tele- Banking by linking it to the proposed Back Office to process such service requests.

Self Service Cheque Deposit Machines are installed at 5 select branches on pilot basis. A
dynamic ‘Q’ Management System was installed at Andheri branch on pilot basis and another
one is being deployed at Bullion Exchange branch on demo basis. Based on the feedback, the
system will be introduced at other select branches to reduce service delivery time and to
avoid crowding at the counters.

Page 24 of 52
3.5 MARKETING & PUBLICITY

Marketing has been an important focus in the Bank to induct new customers and create a set
of customer centric processes for enhancing value to them.
A team of over 1000 proactive and well-trained personnel for focussed marketing and
relationship efforts has been placed in strategic locations. Special training by the coaches
deployed at various centres across the country has further strengthened the skills of Bank’s
marketing staff and Relationship Managers. These coaches, who are amongst the Bank’s
staff, were first thoroughly trained at Head Office. The Bank has, in a conscious endeavor to
make itself relevant to the new-age Indian and stand abreast of times, been on a path of
redefining its corporate image and identity in the last couple of years. Seeking to project itself
as offering the best of two worlds, one with a strong Public sector lineage and foundation and
a new-generation verve and passion, it had assiduously embarked upon a campaign at
connecting to people’s hearts by embracing the now readily-recognized “Relationships
beyond banking’ theme.

Continued from where left off at the end of the previous financial year, campaigns were run
in the national news dailies, magazines and the television channels to further propel the
‘relationship’ theme and to leverage on the goodwill and favour generated. It has been our
endeavor to have a continued and sustained impact in the market; hence carried
advertisements in print media, electronic media, magazines, souvenir, hoardings,
sponsorship, etc. The campaigns, apart from highlighting the Bank’s corporate theme and
products, also focused on giving wide and noticeable coverage for the excellent financial
results and other important events and landmarks.

At rural centers, branches continued to make use of Rural Publicity budgets for generating
beneficial local publicity and goodwill through such activities as sponsoring digging of wells,
drinking water facilities, blood donation camps, bus shelters, farmers’ clubs, rural sports
meets, programmes on family planning, social and community issues etc.

On the PR front, the Bank had held itself in the limelight through regular press conferences
and other media meets to announce, from time to time, periodical financial results, product
launches, CSR initiatives, capital raising issues, other tie-ups and associations

Page 25 of 52
3.6COMPETITORS ANALYSIS

COMPETITORS USING FIVE STRATEGIES TO GAIN SHARE

Product Cash management Speed of credit Corporate linked

packaging and approvals business
services

Value added Key service demanded Two types of Targeting less risky
services for by SME customers profitable corporate linked SME
profitable across segments customers targeted customers through
customers channel finance
Foreign and private 1)Customers with
Packaging services banks using this as a growing credit Dealers and vendors of
for specific key differentiator needs the large and mid sized
customer segments corporates
2)Customers
setting up
additional
businesses

Aggressive feet-on-street marketing and relationship management

Page 26 of 52
 3.7 OPERATIONAL STRATEGIES AT BANK OF INDIA

BACK OFFICE CENTRALIZATION

 45-50% of branch time is spent in non-customer facing activities

o Potential to enhance customer service by conducting these activities from a
back-office

 Bank of India has prioritised back office centralization in three phases

o Phase I: inward clearing, backend activities relating to account opening, retail
assets processing and post sanction processes, cheque book requisition
o Phase II: outward clearing, pension processing

o Phase III: trade finance processes, other customer requisitions

SERVICE BRANCH
1) Branch relieved of
1) Floppy uploaded
operational, non
2) Data entry customer facing
3) Authorization workload

4) Rejects sent to RBI 2) Enhanced efficiency

3) No impact on customer
ONLY INTERACTION service
THROUGH CBS 4) All instruments
requiring creating of
BRANCH BRANCH BRANCH
overlimit/ deposits by
1 2 3
customers handled by

Page 27 of 52
BACKEND ACTIVITIES RELATING TO ACCOUNT OPENING

BRANCHES
 Ensuring adherence to
1)Branch relieved of
KYC norms
operational workload of
 Creation of account with
data entry
minimum fields
2)Improved customer
service
3)shorter waiting time in
branch for account opening
SERVICE BRANCH 4)Better accuracy of data
• Data entry of entered on the system
application
details

• Signature
scanning

MOST COMPETING BANKS ARE IN SOME STAGE OF CENTRALIZING

OPERATIONS

Page 28 of 52
 HUB AND SPOKE MODEL FOR RETAIL ASSETS SEEKS TO
IMPROVE CUSTOMER SERVICE

Multiple Application Centralized Officer Disbursal Centraliz

organized form and from date and ed
Hub for time fixed Customer
channels documents
for collected at Hub to do as per service,
sanction the
marketing customers collection
documenta customer
premises and and
tion convenience follow-up
verification

SERVICE AT
BRANCH SALES
CUSTOMER
FORCE
DOORSTEP

Branches to be given
targets for retail assets
Existing accounts to New business to be
continue with branches booked at Hub
Hub to do only retail
assets business

CHAPTER 4:
MODULE 2 – CUSTOMER SATISFACTION SURVEY (CUSTOMER PROFILING,
DEMOGRAPHIC FACTORS AND SERVQUAL SCORE ANALYSIS)

Page 29 of 52
An analysis on the basis of the questionnaire filled by the students was carried out. A sample
size of 180 customers was randomly selected only 100 responses were valid (30 from each
branch). To analyze the difference between the private and the PSU bank the customers who
were selected were those who were availing the services of some private bank too.

RESPONDENTS ANALYSIS FOR 1ST BRANCH

The 30 customer who were considered for the final survey are analyzed from all the
demographic aspects that relate to their Banking behavior. Among a large number of factors
that decide the demographic profile of an individual, we have considered three main factors
that are age, occupation and income for the respondent’s analysis.

Pie
RESPONDENTS ANALYSIS ON THE BASIS OF AGE GROUP

10% 10%

7% >60
20-
30
30-
40
40-
50
30% 43%

Chart 4.1

Pie Chart 4.1 shows that the majority of the Respondents i.e. 43% belong to the age group of
20-30. People from 30 to 50 years of age again forms a very major portion of the branch
clientage i.e. 37%. Only 20% of their business in terms of number of Respondents comes
from 50 years and above age group of people.

Page 30 of 52
 RESPONDENTS ANALYSIS ON THE BASIS OF OCCUPATION

Business
27% Housewife
Retired
Service
(blank)

3% 60%
10%

Pie Chart 4.2

Pie Chart 4.2 shows the categorization of Respondents of the branch on the basis of their
Occupation. A major commercial hub for the National Capital comprises of population
mainly belonging to business class and that is reflected from the findings of our study. 60%
of the customer base of this branch mainly comes from the business class. Service Class
forms the next major category with 27%. Rest being housewives and retired people.
Pie
RESPONDENTS ANALYSIS ON THE BASIS OF INCOME LEVEL

20% <1,50,000
27%
>1000000

7% 1,50,000-500000

500000-1000000

(blank)

47%

Chart 4.3
From Pie Chart 4.3, 34% of the Respondents belong to > 5 Lac / annum income group.
Between 1.5 to 5L lies the major percentage of people surveyed at this branch i.e. 46%.
Among the people surveyed, those earning less than 1.5L per consist of 20%. Therefore, we
can see an income divide in this region. People earning very high sum of money per annum is
also very high and people with poor income are also good in number.

Page 31 of 52
Therefore, from our findings we see that the majority of the Respondents at this branch
belong to middle age group ranging from 25 to 45 years of age, with business background
and earning around 5 Lac or more per annum. Also this branch also provide service to
customer who are at lower end of the income group earning less than 1 Lac per annum and
are employed by the business class.

AVERAGE
WEIGHTAGE
TANGIBILITY RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY
FOR EACH
DIMENSION

16.667 30.33 16.5 14.5 21.83

AVERAGE DIMENSIONAL SCORE

RESPONSIVENES
TANGIBILITY RELIABILITY S ASSURANCE EMPATHY

BOI -0.24 -0.86 -1.3 -1.10 -0.69

PRIVATE BANK -0.33 -0.91 -0.35 -0.87 -0.62

TANGIBILITY - For this dimension, the dimensional score that has been obtained from the
gap score although is negative but less negative than that for the private bank. The reason we
have analyzed is that the branch came up into existence only 2 years back and has a very well
constructed branch premises with highly modern and technologically upgraded tangibles.
RELIABILITY - This dimension is also less negative than private banks because of the
Respondents of this branch do not perceive any lag between the time expected and time of
actual delivery of the service from the branch side.
RESPONSIVENESS, ASSURANCE AND EMPATHY – For these three factors, the
branch secures much negative results as compared to private bank, because although the
Respondents are satisfied from the services from the bank’s side but they are not satisfied
from the branch personnel. Also, being a clientage from business sector, the expectations of
the Respondents and thus the weightage for highly personalized services ( empathy) and
responsiveness is on a higher side.

Page 32 of 52
RESPONDENTS ANALYSIS FOR 2ND BRANCH

RESPONDENTS ANALYSIS ON THE BASIS OF AGE GROUP

17%

30% >60
20-30
30-40
17%
40-50
50-60

17%
20%

Pie Chart 4.4

From pie chart 4.4, it can be seen that 30% of the business of this branch come from
Respondents between 50-60 years of age. And also Respondents above 60 years of age
contribute 16% to the total customer base. For this the reason might be because the branch in
this area is the first branch to come up in the East Delhi zone, so a large number of customers
in this branch share a very long term relationship with the bank. 37% of the customers fall in
the age group of 20-40 years of age.

Page 33 of 52
 RESPONDENTS ANALYSIS ON THE BASIS OF OCCUPATION

23%

Business
Housewife
50% retired
Service
13%

13%

Pie Chart 4.5

From the Pie Chart 4.5, the majority of the Respondents who avail the services of this branch
comes from the service background i.e. around 50%. 23% of the Respondents belong to the
business class and again 27% of the customer base of this branch belongs to the segment of
housewives and retired people.

RESPONDENTS ANALYSIS ON THE BASIS OF INCOME

13%

27%
<1,50,000
1,50,000-500000
500000-1000000
(blank)

60%

Pie Chart 4.6

With service class dominating as seen from last Pie Chart, Pie Chart 4.6 shows that the
majority of Respondents i.e. around 60% in this branch fall in the income group of 1-5Lac
per annum. Rest 27%, which is again a very high number falls in the category of less than
1.5Lac. And a smaller percentage of 13% belongs to a higher income group of >5 Lac per
annum. This might correspond to a smaller business class in that area.

Page 34 of 52
Respondents from service background and income levels between 1.5 to 5Lac/annum i.e.
middle and service class Respondents.

AVERAGE DIMENSIONAL SCORE

RESPONSIVENES
TANGIBILITY RELIABILITY S ASSURANCE EMPATHY

-0.70 -0.16 -0.27 -0.13 -0.78

BOI

-0.06 -0.68 -0.42 -0.89 -0.61

PRIVATE BANK

TANGIBILITY - For this dimension, the dimensional score that has been obtained from the
gap score although is highly negative than its private counterpart. The reason we have
analyzed is that the branch is one of the oldest branch that is present in this area. And also as
a large number of private banks are coming up with better and better banking premises in the
vicinity of this area , so the expectation of the Respondents have also gone up and thus the
gap between the expected and perceived service dimension.
RELIABILITY, RESPONSIVENESS AND ASSURANCE - On these three major fronts,
this branch has left behind the private banks as the personnel of this branch share a great
degree of trust and confidence with the Respondents and unlike the Gandhi Nagar Branch
Respondents are highly satisfied with the behavior and working of staff members.
EMPATHY – For these three factors, the branch secures slightly negative results as
compared to private bank, because although the Respondents are satisfied from the services
of bank as well as bank staff but because of a very large number of foot falls in this branch,
giving personal attention to each customer is an issue being faced by the branch.

Page 35 of 52
RESPONDENTS ANALYSIS FOR 3RD BRANCH

RESPONDENTS ANALYSIS ON THE BASIS OF AGE

17%

>60
40%
20-30
30-40

43%

Pie Chart 4.7

From Pie Chart 4.7, we can find that the Respondents between 20-30 and 30-40 years of age
comprise around 80% of the customer base in this branch that too with an almost equal
proportion of 40% each. Respondents belonging to age group of greater than 60 years also
are present in good numbers i.e. around 17%.

Page 36 of 52
 RESPONDENTS ANALYSIS ON THE BASIS OF OCCUPATION

7%
business
20% Housewife
Retired
Service
Student
17% (blank)
50%

7%

Pie Chart 4.8

From the above Pie Chart, 50% of the respondents belong to the service class. Housewife,
retired and students together form 30% of the total number of respondents. Rest 20% are
respondents from business background. Total residential colony mainly consists of people
from service area. This might be the reason why a large number of our respondents are either
service people, or housewives and retired. Business Class is very limited in this colony.

RESPONDENTS ANALYSIS ON THE BASIS OF INCOME

10%

<1,50,000
33%
>1000000
1,50,000-500000
500000-1000000
(blank)

50%
7%

Pie Chart 4.9

The above Pie Chart shows that the respondents in this area are mainly 1.5 – 5 Lac/annum
earning. Almost half of the respondents lie in that range. 33% of the respondents earn less

Page 37 of 52
than 1.5 Lac per annum. This might be coming from the housewives, retired and students of
that area which form 30% the total number. Rest 17% earns greater than 5 Lac /annum.
Therefore, majority of the respondents in this branch come from a service background with
an income level of 1.5 to 5Lac with an age group of 20-40 years. However, another group in
this area belongs to less earning housewives, retired people as well as students. Targeting
business class in this area is not of that much of importance because they are very few in
numbers.
AVERAGE DIMENSIONAL SCORE

DILSHAD
TANGIBILITY RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY
GARDEN BRANCH

BOI -0.191 -0.227 -0.275 0.192 -1.38

PRIVATE
-0.375 0.167 0.183 0.133 -0.22
BANK

TANGIBILITY - For this dimension, the dimensional score that has been obtained from the
gap score is slightly less negative than its private counterpart. The reason we have analyzed is
that the branch is one of the most recent bank branches that is present in this area. And also as
we visited a large number of other banks in that area to look at their functioning, we noticed a
definite gap in the infrastructure, Bank of India being on a positive side
RELIABILITY, RESPONSIVENESS AND EMPATHY - On these three major fronts, this
branch has a very negative response because of the attitude of the employees. A large number
of customers in this branch definitely reported a significant difference in the attitude of staff
in the private and public banks.
ASSURANCE – For these three factors, the branch secures slightly better than the private
banks because earlier this area was mainly having private banks and the middleclass, service
based families of this area were not very confident of their dealings with these private banks,
but with coming up of few PSU banks in that area, people felt more safe in their dealings
with these banks.

Page 38 of 52
 CHAPTER 5: MODULE 3 – ANALYSIS OF THE PERFORMANCE OF THE FOUR
BRANCHES FOR THE DIFFERENT PRODUCT CATEGORIES

In the third module of our project, we have tried to analyze the performance of four different
banking products which form the major portion of the retail banking. These products are
Saving bank deposits, Current bank deposits, Sales of third party products and Sales of pure
gold coins. These products have been considered for the analysis because of two main
factors. Firstly, their sales is directly related to the level of satisfaction the customers derive
from a particular bank services. Greater the satisfaction level from the services, better will be
the sales of these products. And also there sales is directly dependent on the demographic
profile of the bank customers.
The analysis have been for the financial year April 2009 to April 2010 for each of the four
branches we were assigned.

TARGETS ACHIEVED AT VARIOUS BRANCHES

Mar'09 Mar 10
Actual Mar10 Budget Actual Target achieved ( in %)
SAVING BANK ACCOUNTS
OPENED
a) 1ST 2031 5000 1814 36.2
b) 2ND 1611 1800 1519 84.3
c ) 3 RD 1620 5000 3631 72.6
d) 4TH 1866 3200 1519 47.4
CURRENT ACCOUNTS OPENED
a) 1ST 151 150 136 90.6
b) 2ND 120 175 78 44.5
c ) 3 RD 46 150 189 126
d) 4TH 128 150 131 87.3

Page 39 of 52
THIRD PARTY PRODUCTS
SUD LIFE and NICL( in Rs Lacs)
a) 1ST 0.15 7 0.19 2.7
b) 2ND 1.11 8 1.02 12.7
c ) 3 RD 0.06 7 1.55 22.1
d) 4TH 1.12 7 1.04 14.8
SALES OF GOLD COINS (in kgs)
a) 1ST 0 2 0 0
b) 2ND 1.06 3 1.34 44.6
c) 3RD 0 2 0.35 17.5
d) 4TH 0.8 2 1.24 62

TYPE OF DEPOSITS 1ST 2ND 3RD 4TH

AGGREGATE DEPOSITS
( IN CRORES) 15.73 111.03 16.3 100.67

SHARE OF SAVING BANK

DEPOSITS(IN CRORE) 5.95 52.16 10.35 29.52

SHARE OF CURRENT
DEPOSITS(IN CRORES) 4.17 9.05 1.62 7.17

Page 40 of 52
 CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS

Recommendations

The following suggestions are the outcome of the research and applications of these-
• New private banks could reach the next level of their growth in the Indian banking
sector by continuing to innovate and develop differentiated business models to
profitably serve segments like the low income segments.
• On the other hand Public Banks must try and improve the responsiveness and tangible
benefits that they provide by improving their Online Banking system, showing more
concern towards customer needs this will make them more attractive towards the
younger generation.
• Private Banks must target the middle class group and try providing more reliable
service; they must open their accounts without any additional charges and must
provide them with detailed statements at regular interval of time which will increase
their reliability. Also they must try and be more empathetic towards middle class
people.
• Private Banks must target the upper age group and try providing additional benefits to
the senior citizens which will make them more attractive to them also regular
statements must be provided and explained to them clearly this will help them project
themselves as a reliable bank.
• Private Banks should remove the different type of hidden charges.
• Public Banks must focus on higher income group and try improving on their
efficiency and turnaround time they must try and customize their service towards
customers.
• The public bank employees can adopt a more professional attitude.

Page 41 of 52
• Every bank should take precautions to keep customers experience safe. It should take
continued efforts to safeguard online banking transactions.
• The public banks should come up with innovative ways of service at their door-steps.
This may be a costly affair but will surely give positive results in the long run.
• The private banks should simplify the loan disbursement process and improve loan
rates.
• The private banks should come up with proper fixed deposit plans at this point of time
where the market is highly volatile and the investors become very cautious at this
level.
• The Public banks should focus on the advertising strategy and also the marketing of
the bank product.
• The market is seeing discontinuous growth driven by new products and services.
These require new skills in sales & marketing, credit and operations.
• The private banks should move into the rural areas and other remote areas.
• Given the demographic shifts resulting from changes in age profile and household
income, consumers will increasingly demand enhanced institutional capabilities and
service levels from banks. Public Banks should take care of this.
• Enable labour reforms, focusing on enriching human capital, to help public sector and
old private banks become competitive.
• Public Banks need to fundamentally strengthen institutional skill levels especially in
sales and marketing, service operations, risk management and the overall
organisational performance ethic.

Page 42 of 52
 Conclusion

Post 2009 banking sector will have new threats as well as opportunities. Capital as well as
service quality is going to play a crucial role in the banking sector. Indian banking industry
need to grow in size of global standard, have robust risk management practices, advanced
technology, skilled manpower and very sound marketing practices to confront with the
growing challenges. India’s banking industry must strengthen itself significantly if it has to
support the modern and vibrant economy which India aspires to be. While the onus for this
change lies mainly with bank managements, an enabling policy and regulatory framework
will also be critical to their success.

Domestic PSU banks are least active in FDI and FII areas and foreign banks are attracting
huge foreign investment coming to India. Post 2009 entry of new foreign bank will further
reduce the slice of such investment for domestic bank. So post 2009, Indian domestic public
banks have to improve their brand image so that foreign funds coming to India will be routed
through them only.

Indian private banks do take an edge over their public counterparts when it comes to service
quality but there is still a very large customer base for which safety and security of their
deposits are more important. So, private banks need to work upon their investment practices
and increase the trust factor in Indian consumers and build an atmosphere, where every
customer can feel safe and secure depositing his/her money.

Indian banks both public and private need to work upon their shortcomings and work towards
better service delivery model. Then only future Indian banking industry will be able to cope
up with the global threats coming from big foreign banks and take advantage of the
opportunities.

Page 43 of 52
 Bibliography
 C.Ashokan, Hariharan.G, “Profile and Perception of Retail Consumers – An
Empirical study in Palakkad District”, Indian Journal of Marketing, Vol:
XXXVIII, Number: 2, February 2008, PP – 44.
 Aruna Dhade and Manish Mittal, “Preferences, Satisfaction Level and Chances of
Shifting: A Study of the Customers of Public Sector and New Private Sector
Banks”, The ICFAI University Journal of Bank Management, May, 2008
 R.A.Ravi “User Perception of Retail Banking Services: A Comparative Study of
Public and Private Sector Banks”, ICFAI University Journal of Bank Management,
May 2008.
 http://www.rbi.org.in
 http://www.icicibank.com/
 http://www.12manage.com/methods_zeithaml_servqual.html
 http://www.iimcal.ac.in/research/download/ICIS-2008-KC.pdf
 http://jefmenguin.wordpress.com/resources/articles/using-the-rater-model-in-
customer-service/

Page 44 of 52
APPENDIX 1. QUALITY OF SERVICE Questionnaire

Based on your experiences as a customer in a bank, please think about the kind of
bank that would deliver excellent quality of service. Think about the kind of bank
with which you would like to deal with . Please show the extent to which you think
such a bank would possess the feature described by each statement. If you feel a
feature is not at all essential for excellent banks such as the one you have in mind,
circle the number 1. If you feel a feature is absolutely essential for excellent banks,
circle 5. If your feelings are less strong, circle one of the numbers in the middle.
There are no right or wrong answers - all we are interested in is the number that truly
reflects your feelings regarding banks that would deliver excellent quality of service.

Strongly
Disagree Agree

1. Excellent banks will have

modern looking equipment. 1 2 3 4 5

2. The physical facilities at excellent

banks will be visually appealing 1 2 3 4 5

3. Personnel at excellent banks

will be neat in appearance 1 2 3 4 5

4. Materials associated with the service

(such as pamphlets or statements)
will be visually appealing in an

Page 45 of 52
 excellent bank 1 2 3 4 5

5. When excellent banks

promise to do something by a
certain time they will do so. 1 2 3 4 5

6. When a customer has a problem,

excellent banks will show
a sincere interest in solving it. 1 2 3 4 5

7. Excellent banks will get

things right the first time. 1 2 3 4 5

8. Excellent banks will

provide their services at the time
they promise to do so. 1 2 3 4 5

9. Excellent banks will

insist on error-free records. 1 2 3 4 5

10. Personnel in excellent banks

will tell customers exactly when
services will be performed. 1 2 3 4 5

11. Personnel in excellent banks

will give prompt service to customers. 1 2 3 4 5

Page 46 of 52
12. Personnel in excellent banks
will always be willing to help customers. 1 2 3 4 5

13. Personnel in excellent banks

will never be too busy to respond
to customers' requests. 1 2 3 4 5

14. The behaviour of personnel in excellent

banks will instil confidence
in customers. 1 2 3 4 5

15. Customers of excellent banks

will feel safe in their dealings with the
banks. 1 2 3 4 5

16. Personnel in excellent banks

will be consistently courteous with
customers. 1 2 3 4 5

17. Personnel in excellent banks

will have the knowledge to answer
customers' questions. 1 2 3 4 5

18. Excellent banks will give

customers individual attention. 1 2 3 4 5

19. Excellent banks will have

Page 47 of 52
 operating hours convenient to all
their customers. 1 2 3 4 5

20. Excellent banks will have staff

who give customers personal attention. 1 2 3 4 5

21. Excellent banks will have

the customers' best interests at heart. 1 2 3 4 5

22. The personnel of excellent banks

will understand the specific
needs of their customers. 1 2 3 4 5

Listed below are five features pertaining to banks and the service they offer. We would like
to know how important each of these features is to you when you evaluate the service offered
by a bank. Please allocate a total of 100 points among the five features according to how
important each feature is to you - the more important a feature is to you, the more points you
should allocate to it. Please ensure that the points you allocate to the five features add up to
100.

1. The appearance of the bank’s physical facilities,

equipment, personnel and communication materials. _____ points
2. The bank's ability to perform the promised service
dependably and accurately. _____ points
3. The bank's willingness to help customers and provide
a prompt service. _____ points
4. The knowledge and courtesy of the bank personnel
and their ability to convey trust and confidence. _____ points
5. The caring, individualised attention the bank

Page 48 of 52
 provides its customers. _____ points

TOTAL points allocated 100 points

___________________________________________________________________________

APPENDIX 2 BANK OF INDIA COMPANY PROFILE

GENESIS

Bank of India was founded on 7th September 1906 by a group of eminent businessmen from
Mumbai. The Bank was under private ownership and control till July 1969 when it was
nationalized along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50
employees. The Bank has a rich heritage. From the very beginning, it established reputation
for high standards of service. Prudence and Caution marked the policy of the Bank. This
enabled the Bank to come out stronger from many crises such as great depression in 1929,
World War-II etc., which put considerable stress on Indian economy.

The Bank has been a pioneer in the Indian Banking world and has put in place time tested
practices and standards. Known for resilience and adept at responding changes in the banking
environs, the Bank has successfully passed through periods in the last 15 years when
prudential norms were introduced and competition also intensified.

The Bank has been the “Banker to Bombay Stock Exchange” ever since 1921, underscoring
the Bank’s commitment to the evolution of a well developed capital market.

Bank of India was the first Indian bank to establish a Branch outside India in London on 1 st
July 1946, reflecting the indomitable spirit of the nation about to be born, thereby signaling
the commercial foresight of a Swadeshi institution.

Bank has got the distinction of being the first Indian Bank to open Branch in the Far East, in
Japan in 1950 and in Continental Europe in Paris in 1974.

The Bank has made rapid progress ascending to greater heights at each historic milestone:

 On the eve of Nationalization, in 1969, it had 207 branches in India, 12 branches

abroad, a networth of Rs.11 crore, deposits of Rs.436 crore and Advances of Rs.296
crore.

 The 1000th branch of the Bank In Opera House, Mumbai in September 1976.

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 The 2000th branch at Indira Gandhi institute of Developmental Research (IGIDR),
Goregaon, Mumbai in November 1988.

 The 2500th branch in 1997 in Cudappah, Andhra Pradesh.

 The Bank was first among the Nationalized banks to establish a fully computerized
branch and an ATM at Mahalaxmi in Mumbai in 1988, a foreteller of technology
initiatives today.

APPENDIX 3

Here the WebPages of Bank of India and State Bank of India are placed to give the
better picture of the difference between the websites of various banks and the area of
improvement.

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


 Here, on the web page of Bank Of India, the information is provided to the customer in time-
consuming manner. The person has to search through the various options available on the
web page to get the required information.

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 While when we observe the web page of State Bank of India, the information can be
relatively easily obtained as the page has got various services provided by the bank
under various headings clearly specifying to the customer, where to look for the
facility, required



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