PIONEER INSTITUTE OF

PROFESSIONAL STUDIES, INDORE

RESEARCH PAPER
ON

“CUSTOMER SERVICES IN SBI BANK”

Submitted To- Submitted By-

Prof. Ankita Jain Vijit Shah
M.B.A. III Sem ‘Q’
09020058

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 Acknowledgement

It is our proud privilege to release the feeling of our gratitude to several people who have
helped us directly or indirectly to conduct this project work.

We are greatly thankful and owe a deep sense of gratitude to respected Dr. V.K Jain for his
sincere guidance, help and valuable suggestions in completing this project work .We would
also like thanks our faculty guide Prof. Ankita Jain, for her sincere efforts and motivation.

We would love to express our gratitude to respected Dr. P.K. Jain for his moral support
and encouragement. Last but not the least our deepest sense of appreciation goes to our
parents and co-workers who were always there as a source of inspiration.

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 CONTENTS

• Introduction

− Conceptual Framework

− Defining Variables

− Defining Industry

− Rationale

− Objectives

• Literature Review

− Review of the Work

− Summary of Article

− Gap between Existing and Current System

• Technology Used

− Technical Intricacies

• Research Methodology

• Limitations

• Conclusion

• Reference and Bibliography

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 Introduction

 Conceptual Framework

The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June
1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809.
It was the first ever joint-stock bank of the British India, established under the sponsorship
of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April
1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal.
These three banks dominated the modern banking scenario in India, until when they were
amalgamated to form the Imperial Bank of India, on 27 January 1921.

The All India Rural Credit Survey Committee proposed the takeover of the Imperial Bank
of India, and integrating with it, the former state-owned or state-associate banks.
Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the
State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State
Bank of India more powerful, because as much as a quarter of the resources of the Indian
banking system was controlled directly by the State. Later on, the State Bank of India
(Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to
make the eight former State-associated banks as its subsidiaries.

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  Variable Definition

1. Factor analysis - It identifies common dimensions of factors from the observed

variables that link together the seemingly unrelated variables and provides insight in to
the underlying structure of the data.

2. Mobile Banking - Mobile banking (also known as SMS Banking etc.) is a term used for
performing balance checks, account transactions, payments etc. via a mobile device
such as a mobile phone. Mobile banking today is most often performed via SMS or the
Mobile Internet but can also use special programs called clients downloaded to the
mobile device.
3. Internet Banking - Online banking (or Internet banking) allows customers to conduct
financial transactions on a secure website operated by their retail or virtual bank,
credit union or building society.
4. Core Banking System - Core Banking is a general term used to describe the services
provided by a group of networked bank branches. Bank Customers may access their
funds and other simple transactions from any of the member branch offices.
5. Atm - An automated teller machine (ATM) is a computerized telecommunications
device that provides the customers of a financial institution with access to financial
transactions in a public space without the need for a human clerk or bank teller. On
most modern ATMs, the customer is identified by inserting a plastic ATM card with a
magnetic stripe or a plastic smartcard with a chip that contains a unique card number
and some security information, such as an expiration date. Security is provided by the
customer entering a personal identification number (PIN).Using an ATM, customers
can access their bank accounts in order to make cash withdrawals (or credit card cash
advances) and check their account balances as well as purchasing mobile cell phone
prepaid credit.

 Defining Industry

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A bank is a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly or through capital markets. A bank connects
customers with capital deficits to customers with capital surpluses.

Banking is generally a highly regulated industry, and government restrictions on financial

activities by banks have varied over time and location. The current set of global bank
capital standards are called Basel II. In some countries such as Germany, banks have
historically owned major stakes in industrial corporations while in other countries such as
the United States banks are prohibited from owning non-financial companies. "Banking
business" means the business of receiving money on current or deposit account, paying
and collecting cheques drawn by or paid in by customers, the making of advances to
customers, and includes such other business as the Authority may prescribe for the
purposes of this Act.

Receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] ... or with a period of call or
notice of less than that period.

Paying or collecting cheques drawn by or paid in by customers.

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit,
direct debit and internet banking, the cheque has lost its primacy in most banking systems
as a payment instrument. This has led legal theorists to suggest that the cheque based
definition should be broadened to include financial institutions that conduct current
accounts for customers and enable customers to pay and be paid by third parties, even if
they do not pay and collect cheques.

 Rationale

This study is being conducted to know the services provided by the S.B.I. bank like –

1. Mobile Banking

2. Internet Banking

3. Core Banking System

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 4. ATM

5. Credit, Debit and Pre-paid Cards

Customer satisfaction is an important element of banking strategy in today’s increasingly

competitive environment. Bank management must identify and improve upon factors that
can limit customer defection. These include employee performance and professionalism,
willingness to solve problems, friendliness, and level of knowledge, communication skills,
and selling skills, among others.

 Objectives

Due to the privatization of banking sector many big private players entered this sector
giving a tough competition to the existing players. So, to face this stiff competition the bank
has to review their services. The main objective of carrying out the research is -

• To study the customers satisfaction with their services provided by SBI Bank.
• To find out various reasons of dissatisfaction.
• To get suggestions from customers for improvement in the services of SBI bank.

Literature Review

 Review of Work

Dr. Mohan S. Rode

Banks have traditionally performed the role of financial intermediaries. Apart from the old
world game of transforming liabilities or deposits to assets or loans, traditional banking
has now expanded to cover areas like logistic support for their customers for collection of

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receivables, tie-ups with other service providers to facilitate bill payments, and providing
customized solutions to customer segments. The current trend is to try & be a part of all
financial transactions in the market space, and increase the share of the customer wallet.
As banks face the mutually interdependent forces of competition, regulation, technology,
and customer expectations, a picture que setting for the tremendous upheaval and
opportunity emerges. The interdependency, in turn, is built upon mutually dependent
technological trends.

Dr. Amrinder Kaur

Indian banking sector has undergone metamorphous change in the last couple of decades
after onset of reforms in the financial sector. Public sector banks, which are the backbone
of Indian financial system and has created huge infrastructure over the years, were marred
by poor customer service and financial viability. However, the privatization in the banking
sector acted as catalyst & as such these banks have undergone comprehensive
reorganization of their business model. The present research paper endeavors to appraise
the customer satisfaction scenario in the public sector banks in relation to foreign sector
banks. The comparative study of the satisfaction level of the customers of public sector
banks & foreign banks reflects two view points. The study brings out the sizeable number
of customers is satisfied with the public sector banks largely because of their traditional
approach and mindset towards banking and the personal attention provided by them.

 Summary of Review

The banking sector in India has made remarkable progress since the economic reforms in
1991.New private sector banks have brought the necessary competition into the industry
and spearheaded the changes towards higher utilization of technology, improved customer
service and innovative products. Customers are now becoming increasingly conscious of
their rights and are demanding more than ever before. In this context, prioritization of
preferences and close monitoring of customer satisfaction have become essential for banks.
Keeping these in mind, an attempt has been made in this study to analyze the factors that
are essential in influencing the investment decision of the customers of the banks. For this
purpose, the study also suggests some measures to formulate marketing strategies to attract
customers towards banks.

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  Gap between Existing and Current System

As banks are the most important institution in the chain of financial system of any country,
it plays vital role in the financial sector not only in terms of turnover, profit and
employment but also it impact of all spheres for the economy. It has been said that the
satisfaction and expectations moves together. With the changing scenario the expectations
and needs of the customers are also changing. Gone those days where the banking
customers were belongs to performing the function which was limited up to only deposit
and withdrawal only the money. As days changed the expectations of the customer are also
changed. As customers always expect benefits from the bankers. Their loyalty is also
changing very rapidly from one bank to another bank. In present days, bankers are now
operating in buyers market, where the god is customer.

Technology Used

 Technical Intricacies

Most of the recent cases of remittance of fake notes to RBI and issuance of fake
notes at ATM centers or at cash desk by many leading commercial Banks have been
emerging as a result of erroneous understanding on complexity and intricacies
involved in the related technology not only that of notes but also of different special
purpose machines like sorting machine, counting machines, handy UV/IR
equipments, ink pens and manual checking process leading to improper/inaccurate
detection most of the time out of the results of not deploying right detection
equipments having compatible technology for FICNs detection.

Research Methodology

 Tools for Data Collection-

Primary Data: Primary Data are those which are collected for the first time, and thus
happen to be original in character. It will be collected by the following method:

− One to one interaction with customers of the S.B.I. bank.

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 • Secondary Data: Secondary Data are those which have already been collected by
someone else and which have already been passed through the statistical process.
Data will also be collected from internet, journals, newspapers, and magazines.

 Tools for Data Analysis:

Appropriate statistical analysis will be adopted. The data will be tabulated &
analyzed through any of the test like T- Test, Chi Square Test, Z-Test etc.

 Sampling design-
• Target population - The target population in this research refers to the bank
customers who are having an account in SBI bank due to the convenience in
collecting the data. The respondents can be any gender, any income level, any
occupation and any education level.
• Sampling unit - The sampling units are customers of SBI.
• Sampling plan - The researcher is going to collect the data by visiting the banks.

Limitations

• The research is limited to a particular branch of SBI Bank.

• Since the time is less the researcher has not taken a sample to collect the data.

Conclusion
The services provided by SBI bank have been more customers friendly. All banks enjoy
almost similar level of customer satisfaction in other banks. SBI bank has an edge over the
other banks due to the high positive response of the customers indicate that the desired
information is available on the website of the bank and it comes under the public sector in
which customers have faith rather than private sector banks.

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 References & Bibliography

www.googlesearch.com

http://www.statebankofindia.com

http://www.articlesbase.com/international-marketing-articles/banking-industries-
cusotmer-satisfaction-yesturday-and-today-3645780.html

Gyan Management Volume 4, issue1

Kothari, C.R. Research Methodology

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