BANKING CODES AND STANDARDS BOARD OF INDIA

BCSBI Code Compliance Rating - 2015

Background and Methodology:

BCSBI has been monitoring, as part of its mandate, compliance with the Codes of
Banks Commitment to Customers and Banks Commitment to Micro &
Small Enterprises by carrying out survey of select branches of member banks for
verifying implementation of the Codes by the banks. For this purpose, BCSBIs
authorized representatives collected information in a structured questionnaire on
implementation of the Code provisions by visiting a representative sample of
branches and Central Processing Centers (CPCs) of 47 major banks both in semiurban/rural and metro/urban category in February / March 2015. Also, feedback was
obtained from a few customers on their experience with the Bank. The compliance of
Codes so ascertained during branch visits are used for rating the member banks and
accordingly member banks are awarded suitable BCSBI Code Compliance
Rating with the technical assistance of rating agency CRISIL.

The Branch Visit findings and Customer Responses are converted into numerical
score by assigning different weightage out of 100 to the parameters. These
parameters, according to their character, are grouped into five broad groups with
respective weightage, as follows: Information Dissemination (25), Transparency
(30), Customer Centricity (20), Grievance Redressal (15) and Customer
Feedback (10). The four categories of rating viz., High, Above Average,
Average and Below Average are determined based on the overall score
achieved by a bank, as under:
Scoring Scale

Rating

Out of 100
85 and above

High

70 to less than 85

Above Average

60 to less than 70

Average

Below 60

Below Average

Based on the above methodology, BCSBI Code Compliance Rating 2015 under
each of these parameter groups and overall rating category achieved by banks are
shown in the attached Annexure.

An analysis of overall rating as also segment-wise performance, together with

comparison of the previous round of survey is given below:

Analysis of Compliance vis--vis previous round of survey

Overall Rating
There has been considerable improvement in the compliance level in as much as 14
banks achieved High rating this year as compared to only 5 last year. Similarly
number of Banks obtaining Average rating has come down to 10 from previous
number of 17 though the number of banks in Above Average category has not
changed much, as can be seen from the following table:

Rating

Sr.No

Number of Banks surveyed

2015

2013-14

High

14

30%

11%

Above Average

23

49%

25

53%

Average

10

21%

17

36%

Below Average

47

100%

47

100%

Total

The bank group wise rating and movements from previous rating exercise is given in
the following graph:

Overall Rating
Public Sector Banks (PSBs)

Private Sector Banks

15

Foreign Banks
15

14
11

10

10

1
2015

2013-14
High

2015

2013-14

Above Average

2015

2013-14
Average

Overall Score by different Banking groups

Overall average score obtained by all banks and different Banking groups is as
under:
Overall Average Score

Overall Average score

out of 100
Group

2015

2015

2013-

2013-14

14
All banks

78

74

All banks

PSBs

72

70

PSBs

Private

85

78

72
70
85

Private

Sector
Foreign

78
74

93

89

78
93
89

Foreign

There is an overall increase in the compliance level at all Banks. The overall
compliance in 2015 is at 78% as compared to 74% in the previous year. Among
Banking groups, Private Sector Banks and Foreign Banks have shown more
improvement in overall scores as compared to Public Sector Banks, which have
improved marginally by 2%.

Performance under different Parameter Groups

The compliance level under different parameter groups is given in the following
tables / graphs:

a) Information Dissemination:
% age Score on

Information Dissemination

Information

2015

Dissemination
Group

2015

201314

All

75

PSBs

Private

64
89

72

Private

Foreign

97

64
64
55

55

Sector
Foreign

75

All banks

64

banks
PSBs

2013-14

93

89
72
97
93

Although there is overall improvement in compliance under Information

Dissemination, the overall average score for Banks in this category is lowest
amongst the five parameter groups. Among the banking groups, Public Sector
Banks need to improve their compliance on this parameter more aggressively.

b) Transparency:
% age Score on

Transparency

Transparency
Group

2015

All

2015

2013-14

77

77

banks

77
77

All banks

PSBs

70

74

Private

83

79

Sector

70
74

PSBs

83
79

Private

Foreign

2013-14

97

86

97

Foreign

86

Though there is no change in the average score of all banks put together, the
performance of Public Sector Banks has shown some deterioration which
needs to be addressed immediately by them.

c) Customer Centricity
% age Score

Customer Centricity

on Customer Centricity
Group
All

2015
78

Private

All banks

73
84

75
82

Sector
Foreign

PSBs

Private

89

2013-14

79

banks
PSBs

2015

2013-14

88
Foreign

78
79
73
75
84
82
89
88

There is not much improvement in the customer centric approach of all banks
as it remains almost at the same level as per previous year.

d) Grievance Redressal
% age Score

Grievance Redressal

on Grievance Redressal
Group

2015

All

2015

2013-14

80

2013-14

82
80
82

All banks

banks
PSBs

77

78

Private

84

85

Sector

77
78

PSBs

84
85

Private

Foreign

88

97

88

Foreign

97

As in the case of customer centricity, here also customers are not receiving
proper responses / solutions to their grievances. In fact there has been
reduction in the average score of all banks put together including foreign
banks who otherwise have shown improved compliance on other parameters.
The reduction in the score of three foreign banks, considered for survey, is
perceptible.

e) Customer Feedback:
% age Score

Customer Feedback

on Customer Feedback
Group
All

2015
88

73

banks
PSBs
Private

86
90

70

All
banks
PSBs

75
Private

Sector
Foreign

2015

2013-14

89

2013-14

88
73
86
70
90
75

76
Foreign

89
76

This parameter is judged by seeking answers to queries from two customers per
branch. The customer responses to questions have been found almost similar for all
banks / branches.

Limitation of the Survey:

The rating is a limited exercise intended only for gauging the level of adherence to
Compliance of the two Codes, i.e. Banks Commitment to Customers and Micro and
Small Enterprises and is based on a sample size of 2 to 2.5% of the branch network
of 47 major banks and select CPCs. Further, a few important factors affecting
customer service, viz. Quality, knowledge and attitude of staff, cost of services,
response time and efficient delivery of service, personalized handling of account,
besides providing statement of accounts to customers on a regular basis, are not
captured in the Rating exercise.