A STUDY

ON
SERVICE QUALITY OF RETAIL BANKING
IN
LAKSHMI VILAS BANK
PRESENTED BY-
K RAMESH
B7-26
ON JOB TRAINING
Updation of the Drawing Power register and Insurance register.
To Verify the data in form 135R.
To Verify the data in form 111.
To Check the data in TDS files- form 15G and form 15H.
To prepared the TDS cover note.
To call the customers to inform them to submit the stock statements.
To help the customers who are facing problems with the online banking.

CONTENTS
Introduction
Industry Profile
Company Profile
Review of Literature
Methodology
Data Analysis & Interpretation
Findings
Suggestions
Learnings



INTRODUCTION:
Retail banking in India has grown at a rapid pace in recent years and as number of consumers
continuously relied upon the new banking products offered under the retail banking.

Now a days all the banks are focusing on retail banking instead of corporate, wholesale banking
because the risk factor is minimum.

The role of retail banks in the modern customer centric competitive arena, particularly in the rural
markets need to focus much upon creating satisfaction to the customer through their quality of
service.
INDUSTRY PROFILE:
Improved performance of the banking industry in India has helped the economy to bounce back to
a positive growth level in 2012-2013.

According to the Reserve Bank of India, the nationalized banks, as a group, accounted for 49.5 per
cent of the aggregate deposits, while State Bank of India and its associates accounted for 24.1 per
cent. The shares of other scheduled commercial banks, foreign banks and regional rural banks in
aggregate deposits were 18.2 per cent, 5.2 per cent and 3.0 per cent, respectively

The number of mobile banking transactions in India has also increased in 2012-2013, wherein the
total amount transacted showed a boost of 8.3 per cent growth.

COMPANY PROFILE:
Lakshmi Vilas Bank Limited (LVB) was founded in 1926 by seven people of Karur under the
leadership of Shri V.S.N. Ramalinga Chettiar.

LVB got the license from Reserve Bank of India in 1958 and started its operation as a commercial
bank under RBI license.

In 1977, Mechanization was introduced in the head office of the LVB. Implementation of Core
Banking Solution (CBS) was started in October 2006 and all of the banks branches were migrated
to CBS by March 2008.

At present, LVB spread over 15 states with 362 branches, 8 extension counters and 688 ATMs.
LVB has been focusing on retail banking, corporate banking and banc assurance.

OBJECTIVE OF THE STUDY:
The objectives of the study are
To identify and review the key dimensions of service quality in retail banking.
To find out ways for the improvement of service quality of the Lakshmi Vilas Bank.
REVIEW OF LITERATURE:
There are various studies focused on the service quality in retail banking in India and in order to
strengthen the present study few studies have been reviewed. These are following reports which has
been studied-

Kazi Omar Siddiqi- The main objective of this study is to find the interrelationships between service
quality attributes, customer satisfaction and customer loyalty in the retail banking sector in
Bangladesh The review of literature was conducted to find out the relationship among service quality,
customer satisfaction and customer loyalty.

Mohammed Hossian and Shirley Leo (1998) - This paper says about the service quality in retail
banking in the Middle East of Qatar. The primary data collection method was adopted with 120
sample size. The findings of this research process are that the customer perception is highest in the
tangibles area and lowest in the competence area.

METHODOLOGY:
Data collection
Primary data
Secondary data
Sample size
DIMENSIONS OF SERVCIE QUALITY:
(Parusuraman SERVQUAL measures)


Reliability

Tangibility

Responsiveness

Assurance

Empathy

E-Fulfillment







DATA ANALYSIS:
SERVICE QUALITY DIMENSIONS LAKSHMI VILAS BANK SERVICE
QUALITY MEAN
Tangibility 3.50
E-Fulfillment 3.06
Reliability 4.31
Responsiveness 4.90
Assurance 4.21
Empathy 4.10
INTERPRETATION:
By considering the properties of 5 point Likert scale, we can conclude that

The mean of tangibility is 3.50 which shows that this service quality dimension moderately met the
perceptions of the customer but there is more scope to spread its ATM and also online banking
services.
The mean of E-fulfillment is 3.06 which shows that this service quality dimension not met the
perceptions of the customer and the LVB has to improve its technology in order to provide speed online
banking services.
The mean of the accuracy, responses, assurance and empathy is above 4 and these service quality
dimensions met the perceptions of the customers in the areas of delivery of service, appearance and
product knowledge of the employees, understanding the needs of the customers etc





Scope of the study:
The study is undertaken to understand the dimensions of service quality on
customers behavior; it will provide a better understanding of the drivers of customer satisfaction. To
gain and sustain competitive advantages in the rapidly changing Indian retail banking industry, it is
necessary for banks to understand in-depth the key dimensions of service quality and the effects that the
identified dimensions have on customers behavioral intentions.
Limitations of the study:
The 70 samples were taken, which may not reflect the accurate perception of the population.
Study was confined to the city of Vijayawada, Andhra Pradesh. The results may be specific to the
region hence cannot be generalized to rest of the places.

FINDINGS:
Customers are very satisfied with the services of the Lakshmi Vilas Bank(Vijayawada-1 branch).

Personal interaction with customers and timely delivery of the service and family atmosphere in the
bank are reasons for customers happiness.

Interest rates on deposits are high in LVB and 80%of funds for LVB are being raised from deposits.

Business people and Mid-corporates are not satisfied with interest rates on loans in LVB.

SUGGESTIONS:
LVB has to reduce interest rates on loans in order to compete with other banks otherwise there is danger that
competitive banks are capture the customers of LVB.

LVB has to start the IT services like tax payment. trade licenses, sales tax etc. Majority of the customers in
our bank are in need of theses services. Even small bank like corporation bank providing this service.

Credit card facility has to be provided to the customers of the bank.

LVB has to provide full details about parties (like party names, branch code etc) in online banking after the
clearing of cheques. Only Chennai branch code is given in the online banking and customers are facing
confusion that they did not know that cheques are coming from which party, place or branch.

LEARNINGS:
Understood the banking environment.

Interacted with the customers and came to know their perceptions towards bank.

Got practical knowledge on the concepts which I have learned in the class.