LAKSHYA GROUP LAKSHYAIntroduction

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been

largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The world of commercial banking is undergoing a deep transformation as a result of marketable instruments competing with loans and demand deposits. Because of this strong competition, commercial banks are struggling to make acceptable margins from their traditional business entering into investment banking. Increasing competition has forced banks to search for more income at the expense of more risk. Banks that lent heavily to Asia in search of better returns than those available in Western markets are now being blamed for bad credit decisions. The Asian crisis has renewed interest on credit risk management casting doubts on the effectiveness of current credit regulations. Technological changes have also heightened competition by making it easier to imitate bank services. The traditional advantage of physical proximity to clients given by extended networks of branches has vanished. Banks have to compete with money market mutual funds for deposit business, commercial papers, and medium-term notes for bank loans. The scenario commercial banks face today differs greatly from that of the past. Diversification among sub industries is defining an environment where banks compete with other financial-service companies to provide mutually exclusive products and services to the same customers. Traditional branch banking is under the threat of new competitors and technological innovation, leading some analysts to wonder whether banks are dying. Most likely what is dying is the old-fashioned concept of the bank and a new scenario is emerging. Banks are changing as economic markets integrate, providing opportunities for diversification. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major

focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. Retail banking has immense opportunities in a growing economy like India. As the growth story gets unfolded in India, retail banking is going to emerge a major driver. The rise of Indian middle class is an important contributory factor in this regard. The percentage of middle to high-income Indian households is expected to continue rising. The younger population not only wields increasing purchasing power, but as far as acquiring personal debt is concerned, they are perhaps more comfortable than previous generations. Improving consumer purchasing power, coupled with more liberal attitudes towards personal debt, is contributing to Indias retail banking segment. The combination of above factors promises substantial growth in retail sector, which at present is in the nascent stage. Due to bundling of services and delivery channels, the areas of potential conflicts of interest tend to increase in universal banks and financial conglomerates. Some of the key policy issues relevant to the retail-banking sector are: financial inclusion, responsible lending, and access to finance, long-term savings, financial capability, consumer protection, regulation and financial crime prevention. Satisfaction and expectations move together. We cants deny that during the yester decades, there have been multi-dimensional changes in the business environment which has shown a major impact on our lifestyles. We find a direct impact of disposable income on the discretionary income. Here it is essential to make it clear that disposable income is that portion of the income which is left in our hands after discharging the tax liability and the discretionary income is that portion of the disposable income which is in our hands after incurring the essential expenses, specially for managing food, shelter, clothing, basic educational band medical aids. It is really the discretionary income which affects the banking business since the income is either spent on luxury items for managing the comfortable living conditions or invested with the motto of earning interest and dividend. It is against this background that upward trend in discretionary income creates a conductive environment for the development of banking business, specially the mobilization of savings and deposits.

In the past, the commercial banks did not find any attraction in the Indian economy because of the meager business prospects-and the low level of income vis--vis the stagnating economic activities. Of late, we feel that the Indian economy is moving ahead on the right path which would make the business environment more conductive. No doubt in it that the national development policy has made possible such a positive change in the business environment that the intensity of competition is found at its peak. Just after the beginning of the decade 1990s, we have witnessed a basic change in the attitude of the policy makers which has compelled almost all the organizations either producing goods or generating services to innovate their policy decisions. This in a natural way has necessitated a need more professional excellence so that a stage of fierce competition is accepted as a challenge and necessary steps are taken to excel competition, increase the market share and establish leadership.

Objective Major Objective

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The primary objective of my study was to identify the service quality of Allahabad Bank.

Minor Objectives

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To analyze the Allahabad Bank as an organization as a whole by analyzing its history, organizational set-up, financial performance in current years and its various services offerings to customers. To compare Allahabad Bank with some leading bank like SBI, ICICI and Axis Bank. . Company Profile: Allahabad Bank

Allahabad Bank which began operations in 1865, now has its headquarters in Kolkata. Currently the bank has 2278 branches across the country. The Chairman and Managing Director of the bank is Shri J P Dua. The bank has a branch in Hong Kong and a representative office in Shenzen. The bank's internet banking is maintained by EBankWorks Team of TCS. History of Allahabad Bank Nineteenth Century
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24 April 1865: A group of Europeans at Allahabad founded Allahabad Bank. Allahabad Bank is therefore now the oldest joint stock bank in India.

Twentieth Century
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1920: P & O Banking Corporation acquired Allahabad Bank with a bid price of Rs.436 per share. 1927: Chartered Bank of India, Australia and China acquired P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a separate entity. 19 July 1969: The Government nationalized Allahabad Bank, together with 13 other banks. October 1989: Allahabad Bank acquired United Industrial Bank, a Calcuttabased bank that had been established in 1940. 1991: The Bank established AllBank Finance Ltd., a wholly owned Merchant Banking subsidiary.

MISSION & VISION OF THE ALLAHABAD BANK MISSION To ensure anywhere and anytime Banking for the customer with latest state- of- art technology and by developing effective customer centric relationship and to emerge as a world-class service provider through efficient utilization of human resources and Product innovation. VISION To put the Bank on higher growth path by building a strong customer-base through Talent Management, Induction of State of art Technology and through Structural Reorganization. PRESENT STATUS As on September 30, 2010, the Bank had 2316 branches, comprising 988 rural, 416 semi-urban, 462 urban and 321 metropolitan, which formed 45%, 19%, 21% and 15% of the total respectively. The branches include 52 specialized branches (i.e. 4 Industrial Social Banking:
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Priority Sector Credit grew to `26,138 crores as on 30.09.2010 from `20,707 crores as on 30.09.2009 registering an absolute growth of `5,431 crores and YOY growth of 26.23%. Outstanding Agriculture Credit increased to `12,079 crores as at September 2010 from `9,628 crores as at September 2009 registering an absolute growth of `.2451 crores and YOY growth of 25.46%. Credit to Micro & Small Enterprises (MSE) grew to `9,358 crores as on 30.09.2010from `6,001 crores as on 30.09.2009 registering an absolute growth of `3,357 crores and YOY growth of 55.94% and exceeding the Target of ` 9,187 crores.

Technology:
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Bank geared up CBS implementation and 1,473 Branches/Offices covering88.60 % of the Banks business has been brought within the network within 30.09.2010. Internet Banking, SMS Banking, e-Payment of Taxes( Direct & Indirect) made available through CBS Branches. More than 31,000 customers are using Internet Banking Delivery Channel with average daily 10000 financial & non-financial transactions. One more ATM installed at Banks Raghunathganj Branch taking total to 212 ATMs. Instant ATM-cum Debit Card facility launched for the customers of CBS Branches. Bank has issued more than 7.85 lacs ATM-cum-Debit Cards including 1.89 lacs Instant ATM Cards to the Customers. Banks RTGS/NEFT fund transfer facility implemented through all its CBS Branches. Online Payment Gateway Services launched by the Bank for its Customers to make online payments at the billers site with instant debit from their accounts. Central Processing Hub (CPH) inaugurated in Bangalore on 04.06.2010. At present CPH is handling inward and outward clearing transactions of Branches of Bangalore City. Cash Management System made live with 1 HUB and 32 SPOKES. Fast Remittance facility provided to Clients by bulk RTGS/NEFT facility. The facility of payment of UP VAT through Net Banking made available to Banks Customers in UP. Facility for Online payment of Direct Taxes (CBDT) & Indirect Taxes (CBEC) has also been provided through Internet Banking Channel for the Customers of Banks CBS Branches on 24 X 7 basis.

All Bank Premium SB Account Eligibility: For Rural branches, the account holders are required to maintain a minimum balance of Rs.5000/-. For Other branches, the account holders are required to maintain a minimum balance of Rs.20000/-.

The scheme is not applicable for Institutional Accounts.

All Bank Vikash SB Account The Beneficiaries: All organizations under local (Panchyat/Municipality)/State/Central Government engaged in various developmental programmes like, poverty eradication, Economic condition alleviation programmes, literacy programmes, sanitation programmes, health programme, Indiraawas Yojna and non-government organizations (NGOs), engaged in social causes & services, developmental and extension services would be eligible for opening such accounts. Eligibility: 1) The organization is required to maintain a minimum balance of Rs.50, 000/-. Value added benefits: 1) 25% discount on all Service Charges across the board for transactions through the account for Any Amount and Any number of Times. 2) Instant credit of all outstation cheuqes up to Rs.25, 000/-. All Bank Premium Current Accounts Introduction: This scheme has been introduced in order to mobilize new current accounts. This scheme will initially be introduced at selected branches which are proposed to be covered under Centralized Banking Solution. The salient features of the AllBank Premium Current Account are furnished below. Eligibility: 1) In Rural branches, the account holders are required to maintain a minimum balance of Rs.10,000/- in the account.

2) In other branches, the account holders are required to maintain a minimum balance of Rs.25,000/- in the account. Value added benefits : 1) 25% discount on all Service Charges across the board for transactions through the account for Any Amount and Any number of Times. 2) 25% discount on Processing Fees across the board for all types of Retail Loans from the branch. 3] Instant credit of all outstation cheuqes up to Rs.25, 000/-. Terms and Conditions: 1) If the stipulated balance is not maintained in the account, a penalty of Rs.50/will be levied once in a month. However, if the balance continues below the stipulated minimum balance for more than six months, the account will cease to be considered as AllBank Premium Current Account. 2) Closure of account will attract a service charge of Rs.200/-. 3] Existing current account holder can shift to AllBank Premium Current Account by giving an application along with a declaration. Current Plus Deposit Scheme The Current Plus Deposit Scheme allows the customers to simultaneously enjoy the benefit of both Current Account as well as Fixed Deposit Account. The details of the scheme are placed below. 1) The Scheme The Scheme Current Plus account (CP) will comprise of two components viz. Current account and Fixed Deposit account. In current a minimum balance of Rs.1.00 lac is required to be maintained and amount exceeding Rs.1.00 lac will be automatically transferred to fixed deposit account for a period of 15 days in multiple of Rs.10,000.00. 2) Eligibility to open the Account :

Anyone who is eligible to open Current Deposit A/c of the Bank is eligible to open the Current plus (CP) account either singly or jointly with minimum balance of Rs.1, 00,000.00. Existing Current Deposit A/c may also be converted into the new deposit scheme subject to giving an undertaking for maintaining a minimum balance of Rs.1,00,000.00 per day. 3) Account Opening Form : Usual Current Account opening form/ specimen signature card etc. will be used while opening the account along with taking proper introduction as per Banks guidelines. In addition, a separate undertaking is required to be obtained from the depositors. No separate application form for fixed deposit account is required for Current Plus account and no receipt for fixed deposit amount is to be issued. 4) Automatic Transfer of Fund to Fixed Deposit and Period of Fixed Deposit The scheme will provide facility for automatic switching over of excess balance of Rs.1,00,000/- from Current A/c to Fixed Deposit A/c and vice versa. The amount exceeding minimum balance of Rs.1,00,000/- will be transferred automatically to fixed deposit account for a period of 15 days in multiple of Rs.10000/- with the provision of automatic renewal of the balance after every 15 days. Interest accrued in the fixed deposit account will be credited to the Current Account at the time of renewal. 5) Procedure for Reverse Sweep : The balance available in the Current Plus account will be deemed to be treated as combined balance of Current Account and Fixed deposit account for honoring the cheque of the party by automatically transferring the balance of Fixed Deposit Account to Current account at the multiple of Rs.10000/. The reverse sweep of Fixed Deposit shall be on last in first out basis

Scope of the study: The study would try to throw some insights into the existing services provided by the banks and the gap between the customer expectations, perceptions and the actual state of performance. The results of the study would be able to recognize the lacunae in the system and thus provide key areas where improvement is required for better performance and success ratio.

Objectives: (1) To find out the level of expectation and the level of perception of the customers from the services offered by the banks. (2) To compare the level of perception and expectation of the services offered by the banks . (3) To know which service quality dimension the bank is performing well and in which dimension it needs improvement. (4) To know the preference towards the public sector and private sector banks.

FOR THE ANALYSIS OF THE FOLLOWING FACTORS ON WHICH CUSTOMER SATISFACTION DEPENDS WE HAVE USED STRUCTURED QUESTIONNAIRE FOR THIS PURPOSE AND GOT THE FOLLOWING RESULTS

Weight age given by respondents to different dimension 1. Ambience/appearance

Points 15

of the bank

2. .

Timely delivery

15

The banks willingness to help customers and provide prompt service

3. . 4. Service quality

15

15

5.

Reliability

15 75

Total:

Findings Key Findings for general questions 1. According to respondents the most preferred banking service is ATM service followed by mobile banking, internet banking and Retail banking. 2. The customers of the Allahabad bank were highly satisfied with the service quality provided by the bank. 3. Most important factor which respondent consider before opening an account is Future prospects followed by services provided, goodwill, financial position and current market position. 4. According to respondents most secure bank is Allahabad Bank 5. Minimum standing queues 6. Timely delivery of services with quick grievance redressal system.

Factors affecting gap analysis: 1.Ambience/appearance of the bank

9 8 7 6 5 4 3 2 1 0 AMBIENCE HIGH MEDIUM LOW

According to our survey we found that around 8 customers were highly dissatisfied, around 4 people were satisfied and around 2 customers were highly

satisfied. Thus leading to a gap between banks perceptions regarding customers expectation, Allahabad bank should focus more on its ambience. It should improve the dcor of its branches. The appearance and ambience of the bank was upto the mark.the bank was marked by cleanliness.

2.Timely delivery
10 9 8 7 6 5 4 3 2 1 0 ATMservice CHEQUE clearance dissatisfied satisfied highly satisfied

Category 1(ATM Service)

Series 1-highly satisfied Series 2-satisfied Series 3-dissatisfied

Category 2(cheque clearance)

Series 1-highly satisfied Series 2-satisfied Series 3-dissatisfied

In our study we came to know that the ATM service provided by bank was within an hours time which leads to highly satisfied customers. And the cheque clearance service usually takes a little more time thus leading to good number of satisfied customers. The banks perception is that the services should be made available to the customers on time and to some extent it has succeeded in doing so customers are highly satisfied because their requirements are fulfilled on time.

3.The banks willingness to help customers and provide prompt service

customer service

1st satisfied 2nd dissatisfied

Customers queries were handled promptly in an effective manner. Customers having queries in respect of their accounts and various other services are handled properly via mobile banking through toll free customer care services.

4. Service quality
7 6 5 4 3 2 1 0 QUALITY OF SERVICES

HIGH MEDIUM LOW

The services such as: Credit cards Debit cards ATMs EFT Tele banking Mobile banking Internet banking These are some of the quality services provided by Allahabad bank thus leading to customer satisfaction. The banks are providing various kind of service facility as per the customer demand thus leading to minimum gap between banks perception and customer expectations.

5. Reliability
9 8 7 6 5 4 3 2 1 0 RELIABILITY HIGH MEDIUM LOW

Allahabad bank is an old bank. It has won the trust of millions of people. As per the survey we found that around 8 customers relied on the services of the bank, 4 people relied on the services provided by other private banks also along with Allahabad bank and lastly 2 customers found other public banks more reliable.

ASSIGNMENT -1

STRATEGIC INTENT MISSION, VISION, GOAL, OBJECTIVE OF DIFFERENT COMPANIES

LAKSHYA GROUP y y y y y y y y SHUCHI RUPALI SANDEEP BRIJ KISHORE RUPESH RITESH IRTIKA SWATI

submitted to: Dr- Arun kumar shukla