Customer Satisfaction (PNB)

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CUSTOMER SATISFACTION IN PNB 0541914308 PROJECT REPORT ON “CUSTOMER SATISFACTION IN PNB” SUMMER TRAINING PROJECT REPORT Submitted for Partial Fulfilment for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION MBA (PT) (2008-11) UNDER THE GUIDANCE OF Dr. ----------------- SUBMITTED BY -------------- MBA (PT) 3 rd Sem (0541914308) GITARATTAN INTERNATIONAL BUSINESS SCHOOL Gitarattan International Business School 1

Transcript of Customer Satisfaction (PNB)

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CUSTOMER SATISFACTION IN PNB 0541914308

PROJECT REPORT

ON

“CUSTOMER SATISFACTION

IN PNB”

SUMMER TRAINING PROJECT REPORT

Submitted for Partial Fulfilment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

MBA (PT) (2008-11)

UNDER THE GUIDANCE OF

Dr. -----------------

SUBMITTED BY

--------------

MBA (PT) 3rd Sem

(0541914308)

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

(Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)

ROHINI, NEW DELHI -110085

2008-11

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INTRODUCTION

OBJECTIVES OF STUDY 8

SCOPE OF STUDY 8

LIMITATION OF STUDY 8-9

PROFILE OF BANK 10-13

ACHIEVEMENTS 14-15

VISION & MISSION 16

VALUE & ETHICS 16

SWOT ANALYSIS 17-18

PRODUCTS & SERVICES 19

LITERATURE REVIEW 20

AWARDS AND DISTINCTIONS 21

CUSTOMER SATISFACTION 22

BENEFITS OF CUSTOMER SATISFACTION 23

WHAT CONSTITUTES SATISFACTION? 24

WHAT ARE THE TOOLS 25 CUSTOMER SATISFACTION SURVEYS 25-31

RESEACH METODLOGY & DESIGN 32-34

SAMPLE METHOD 35 SAMPLING METHOD 36

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SAMPLE SIZE 36 METHOD OF DATA COLLECTION 36 TYPES OF DATA 36-37

DATA ANALYSIS &INTERPRETATION 38

SHARE OF DIFFERENT TYPES OF ACCOUNTS 39

SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED 40

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE

INSURANCE COMPANY 41-42

TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB 43-44

CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE

COMPANY TO OTHERS 44-45

CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs 45-46

CONCLUSION 47

SUGGESTIONS & RECOMMENDATION 48-50

REFRENCES 51

ANNEXURE; QUESTIONNAIRE 52-55

EXECUTIVE SUMMARY

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This project at Punjab National Bank was undertaken during the period of 45 days as part

of my summer training.

As part of summer training, I was made to accompany customer relationship officer to

observe client interaction, gauge the level of satisfaction by listening and solving queries

of existing clients also helped in making new clients.

My Summer Training included the following: -

An In-depth Induction through the Computer Based Training Module

Learning the Basics of the various Banking Operations such as – Procedure of

Opening New Account (Savings, Current), Printing and Updating of Passbook,

procedure of opening a F.D., deposits and withdrawals, issuing of ATM Cards and

internet banking passwords etc.

Punjab National Bank is providing maximum amount of loan among PSB’s

Various Documents necessary or required at the time of Opening of Account and

Sanctioned of Loan

Accompanying Customer Relationships Officer to observe client interaction

During the course of my training, I got valuable insights about the working in a bank

branch, internet banking and client interface.

.

INTRODUCTION

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OBJECTIVES OF THE STUDY

To have an insight into the attitudes and behaviours of customers.

To find out the differences among perceived service and expected service.

To produce an executive service report to upgrade service characteristics.

To understand consumer’s preferences.

To access the degree of satisfaction of the consumers

SCOPE OF THE STUDY

This study is limited to the consumers with in New Delhi city. The study will be able to

reveal the preferences, needs, satisfaction of the customers regarding the banking

services, It also help banks to know whether the existing products or services the are

offering are really satisfying the customers needs

LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there

are several limitations, which handicapped the research viz,

1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that

some information might have been left out, however due care is taken to include all the

relevant information needed.

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2. Sample size:

Due to time constraints the sample size was relatively small and would definitely have

been more representative if I had collected information from more respondents.

3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents

tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and collection

of data was very difficult. Therefore, the study had to be carried out based on the

availability of respondents.

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1. PROFILE OF THE BANK

Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest

government-owned commercial bank in India with about 4,500 branches across 764

cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank

in the world by Bankers Almanac, London. The bank's total assets for financial year 2007

were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches

in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo, and

Shanghai.

1895: PNB commenced its operations in Lahore. PNB has the distinction of being

the first Indian bank to have been started solely with Indian capital that has

survived to the present. (The first entirely Indian bank, the Ouch Commercial

Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders

included several leaders of the Swadeshi movement such as Dyal Singh Majithia

and Lala HarKishen Lal,[1] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C.

Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala

Lajpat Rai was actively associated with the management of the Bank in its early

years.

1904: PNB established branches in Karachi and Peshawar.

1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi

circle.

1947: Partition of India and Pakistan at Independence. PNB lost its premises in

Lahore, but continued to operate in Pakistan.

1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank

became Bharat Nidhi Ltd.

1961: PNB acquired Universal Bank of India.

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1963: The Government of Burma nationalized PNB's branch in Rangoon

(Yangon).

September 1965: After the Indo-Pak war the government of Pakistan seized all the

offices in Pakistan of Indian banks, including PNB's head office, which may have

moved to Karachi. PNB also had one or more branches in East Pakistan

(Bangladesh).

1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.

1969: The Government of India (GOI) nationalized PNB and 13 other major

commercial banks, on July 19, 1969.

1976 or 1978: PNB opened a branch in London.

1986 The Reserve Bank of India required PNB to transfer its London branch to

State Bank of India after the branch was involved in a fraud scandal.

1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The

acquisition added Hindustan's 142 branches to PNB's network.

1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.

1998: PNB set up a representative office in Almaty, Kazakhstan.

2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala.

Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest

novels in Malayalam, had established the bank in 1899. It was incorporated in

1913, and in 1965 had acquired selected assets and deposits of the Coimbatore

National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had

zero value, with the result that its shareholders received no payment for their

shares.

PNB also opened a representative office in London.

2004: PNB established a branch in Kabul, Afghanistan.

PNB also opened a representative office in Shanghai.

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PNB established an alliance with Everest Bank in Nepal that permits migrants to

transfer funds easily between India and Everest Bank's 12 branches in Nepal.

2005: PNB opened a representative office in Dubai.

2007: PNB established PNBIL - Punjab National Bank (International) - in the UK,

with two offices, one in London, and one in South Hall. Since then it has opened a

third branch in Leicester, and is planning a fourth in Birmingham. Gatin Gupta

became Chairmen of Punjab National Bank.

2008: PNB opened a branch in Hong Kong.

2009: PNB opened a representative office in Oslo, Norway.

Board of Directors

S N Name Residential address Other Directorships1 Shri S. S. Kohli

Chairman & Managing Director

J-170, Rajdoot Marg,Chanakya PuriNew Delhi

PNB Capital Services LtdPNB Housing Finance LtdPNB Gilts Ltd

2 Shri T S NarayanasamiExecutive Director

8, Asiad VillageMajor Dhyanchand Marg,New Delhi-110 049

PNB Capital Services LtdPNB Housing Finance LtdPNB Asset Management Services Ltd

3 Shri P M Sirajuddin D-II, 206West Kidwai Nagar,

Nil

4 Y.S.P. Thorat B/6, Dhanastra122, Natahamal Parikh Marg, Colaba,Mumbai – 400 005

Nil

5 Shri P R Mehta 47, Nehru Nagar,Model Town,Ludhiana. – 141 022

Nil

6 Shri K.D. Khera 15/2, West Patel Nagar,New Delhi – 110 008

Nil

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7 Shri K.S.Sampath New No.21/1, Old No. 9/1, Ramanujam Street,T. Nagar, Chennai – 17

Nil

8 Shri V.K. Vadhera Shanti Kutir96, Gautam NagarNew Delhi – 110 049

Nil

9 Shri Ashok Jain 118, Jaipur HouseAgra – 282 010

Uttar Pradesh State Road Transport Corporation (U.P.S.R.T.C.)

10 Shri Sudarshan Sareen

N-62, Greater Kailash Part – I,New Delhi – 110 048

Nil

11 Shri Virander Kumar Sibal

29, Sector – 5Chandigarh

Nil

The Directors of the Bank do not have any pending litigations or cases pertaining to economic offenses or any other liabilities in their personal capacities. SEBI or any other regulatory body in India or abroad on the directors has levied no penalty.

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2. ACHIEVEMENTS

Punjab National Bank announced its Q1FY2010 results on 29 July 2009,

delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr),

substantially ahead of expectations on account of large treasury gains, apart

from healthy operating performance.

While the bank’s deposit growth was reasonably robust at 4.4% sequentially

and 26.5% y-o-y, unlike the peers its growth in advances also remained strong

at 38% y-o-y.

In spite of being at the forefront of PLR cuts, the bank posted a healthy growth

in Net Interest Income (NII) of 29% y-o-y.

Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355

crore during the quarter in line with industry trends, even as Fee income was

also robust at 45% y-o-y, on the back of strong balance sheet growth.

Operating expenses were higher than expected on account of Rs150 crore of

provisions for imminent wage hikes.

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Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%,

with the bank not adopting the guidelines of treating floating provisions as

part of tier 2 capital instead of adjusting against NPAs on express permission

from the RBI.

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2.1 VISION AND MISSION

Vision

To evolve and position the bank as a world class, progressive, cost effective

and customer friendly institution providing comprehensive financial and

related services.

Integrating frontiers of technology and serving various segments of society

especially weaker section.

Commited to excellence in serving the public and also excelling in corporate

values

Mission

To provide excellent professional services and improve its position as a leader

in financial and related services.

Build and maintain a team of motivated workforce with high work ethos.

Use latest technology aimed at customer satisfaction and act as an effective

catalyst for socio economic development.

2.2 VALUES AND ETHICS

Bonding and Integrity

Ethical conduct

Periodic disclosure

Confidentiality and fair dealing

Compliance with rules and regulations

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2.3 SWOT ANALYSIS

STRENGTH

Wide network

Large number of customers

Fast adaptability to technology

Brand image

WEAKNESS

Casual behaviour

Corruption and red tapism

Slow decision making due to large hierarchy

High gross NPA

OPPORTUNITIES

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Home to home banking services

Diversification towards other fields

Globalization

THREATS

Stiff competition from SBI and other private players.

2.4 PRODUCTS AND SERVICES

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep, PNB

Vidyarthi SF Account, PNB Mitra SF

Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer

Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Account,

Mahabachat Schemes, Multi Benefit Deposit

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Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit

Cards

Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers Welfare

Trust

Corporate Banking - Gold Card scheme for exporters, EXIM finance

Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami,

PNB Vikas Udhami

Apart from these, and the PNB also offers locker facilities, senior citizens schemes, PPF

schemes and various E-services.

LITERATURE REVIEW

History of Banking in India

Without a sound and effective banking system in India it cannot have a healthy

economy. The banking system of India should not only be hassle free but it should be

able to meet new challenges posed by the technology and any other external and internal

factors.

For the past three decades India's banking system has several outstanding achievements to

its credit. The most striking is its extensive reach. It is no longer confined to only

metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even

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to the remote corners of the country. This is one of the main reason of India's growth

process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with

the nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a

draft or for withdrawing his own money. Today, he has a choice. Gone are days when the

most efficient bank transferred money from one branch to other in two days. Now it is

simple as instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till

today, the journey of Indian Banking System can be segregated into three distinct phases.

They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking

Sector Reforms after 1991.

2.5 AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily, Economic Times.

Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006),

London.

Earned 9th place among India's Most Trusted top 50 service brands in Economic

Times- A.C Nielson Survey.

Included in the top 1000 banks in the world according to The Banker, London.

Golden Peacock Award for Excellence in Corporate Governance - 2005 by

Institute of Directors.

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FICCI's Rural Development Award for Excellence in Rural Development – 2005

3.1 CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products

and services provided by a business.

Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS:

Definition 1: Customer satisfaction is equivalent to making sure that product and service

performance meets customer expectations.

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Definition 2: Customer satisfaction is the perception of the customer that the outcome of

a business transaction is equal to or greater than his/her expectation.

Definition 3: Customer satisfaction occurs when acquisition of products and/or services

provides a minimum negative departure from expectations when compared with other

acquisitions.

Gaining high levels of customer satisfaction is very important to a business

because satisfaction customers are most likely to be loyal and to make repeat orders and

to use a wide range of services offered by a business

There are many factors which lead in high levels of customer satisfaction including.

Products and services which are customer focused and hence provide high levels of value

for money.

What is clear about customer satisfaction is that customers are most likely to

appreciate the goods and services that they buy if they are made to feel special. This

occurs when they feel that the products and services that they buy have been specially

produced for them or for people like them.

3.2 BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a

vital business issue as organization realize the benefits of Customer Relationship

Management (CRM) for providing effective customer service. Professionals working

within customer-focused business or those running call centers or help desks, need to

keep informed about the latest customer satisfaction techniques for running a valuable

customer service function. From small customer service departments to large call centers,

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the importance of developing a valued relationship with customers using CRM is

essential to support customer and long-term business growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to

develop a clear understanding of what exactly the customer wants. We need to know

what our customers expect from the products and services we provide.

Customer expectations have two types –

Expressed

Implied

Expressed Customer Expectations are those requirements that are written down n the

contract and agreed upon by both parties for example, product specifications and delivery

requirements. Supplier’s performance against these requirements is most of the items

directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the customer

would ‘expect’ the supplier to meet nevertheless. For example, a customer would expect

the service representative who calls on him to be knowledgeable and competent to solve a

problem on the spot.

There are many reasons why customer expectations are likely to change overtime.

Process improvements, advent of new technology, changes in customer’s priorities,

improved quality of service provided by competitors are just a few examples.

The customer is always right. Supplier’s job is to provide the customer what he/she

wants, when he/she wants it. Customer satisfaction is customer’s perception that a

supplier has met or exceeded their expectations.

3.3 CONSTITUTES WHAT SATISFACTION?

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We cannot create customer satisfaction just by meeting customer’s requirements

fully because these have to be met in any case. However failing short is certain to create

dissatisfaction

Major Attributes of customer satisfaction in banking industry can be summarized

as:

Product quality

Premium Outflow

Return on Investment

Services

Responsiveness and ability to resolve complaints and reject reports.

Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:

Periodic contract reviews

Market research

Telephonic interviews

Personal visits

Warranty records

Informal discussions

Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method

that is most effective in measuring the customer’s perceptions. The purpose of the

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exercise is to identify priorities for improvements. We must develop a method or

combination of methods that helps to continually improve service.

3.4 CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer

satisfaction. The survey are not marketing tools but an information—gaining tool.

Enough homework needs to be before embarking on the actual survey. This includes:

Defining Objectives of the Survey

Design Survey approach

Develop questionnaires and forms

Administer Survey (Email, Telephone or Post)

Method of compiling data and analyzing the findings

Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction

questionnaire. The basic purpose is to find out what we are doing right or wrong. Where

is the scope for improvement, where do we stand vis-à-vis other suppliers. How we can

serve the customer better?

A customer satisfaction measurement survey should at least identify the following

objectives:

Importance to customers (Customers priorities)

Customer’s perception of supplier’s performance

Your performance relative to customer’s priorities.

Priorities for improvement

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Survey forms should be easy to fill out with minimum amount of time and efforts on

customer’s part. They should be designed to actively encourage the customer to complete

the questions. Yet they must provide accurate data should also be sufficiently reliable for

management decision making. This can be achieved by incorporating objective type

questions where customer has to “rate” on scale of say 1 to 10. For repeated surveys, you

could provide the rating that was previously accorded by the customer. This works like a

reference point for the customer.

Space should always be provided for the customers own opinions this enables

them to state any additional requirements or report any shortcomings that are not covered

by the objective questions.

Normally, we deal various personnel at various levels in the customer’s

organization—the buyer, user, receiving inspector, finance and purchase person etc.

surveying a number of respondents for each customer gives a complete perspective of

customer satisfaction. It may be necessary to device a different questionnaire for each of

them.

Respondents must be provided a way to express the importance they attach to

various survey parameters. Respondents should be asked to give a weighting factor, again

on a rating scale of say, 1 to 10, for each requirement. This gives a better indication of

relative importance of each parameter towards overall customer satisfaction and makes it

easier for suppliers to prioritize their action plans by comparing the performance rating

(scores) with importance rating (weighing).

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4.1 CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behaviour and

consumer decision making process.

Most of the consumer research focused on adopter categories, habits, attitudes and

intentions rather that on actually measuring the satisfaction level with the service.

4.1.1 CONSUMER SATISFACTION PROCESS

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The paramount goal of marketing is to understand the customer and to influence buying

behaviour.

The process can be depicted as follows:-

Need recognition- realization of the difference between the desired and the current

situation that serves as a trigger for entire process.

Search for information.

Pre purchase alternative evaluation.

Consumption(utilization of the procured option)

Post purchase alternative re-evaluation.

Divestment(disposal of the unconsumed product and it’s remnants)

4.2 WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS

ADOPTED BY PNB

The ability of the banking industry to achieve the socio-economic objectives and in the

process bringing more and more customers into its fold will ultimately depend on the

satisfaction of the customers. We have a strong belief that a satisfied customer is the

foremost factor in developing our business.

A need was felt by us at Punjab National Bank that in order to become more customers

friendly the Bank should come out with Charter of its services for the customers. Citizens'

Charter concept was considered as a base instrument to fill this need and accordingly this

document was prepared. This document was made in consultation with the users and

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highlights our Bank's commitments towards the customer satisfaction, thus ensuring

accountability and responsibility amongst its officials and staff. This Code for customers

not only explains our commitment and responsibilities along with the redressed methods

but also specifies the obligation on the part of customers for healthy practices in

Customer-Banker relationships.

This is not a legal document creating rights and obligations. The Code has been prepared

to promote fair banking practices and to give information in respect of various activities

relating to customer service.

We wish to acknowledge the initiative taken by the Ministry of Finance, Government of

India and Ministry of Administrative Reforms and Public Grievances for encouraging us

to bring out this Code.

We maintain constant consultations with our clientele through various Seminars,

Customer Meets, etc. to evaluate improve and widen the range of service to customer.

However, all our customers are requested to keep us informed of their experiences about

the various services rendered by the Bank and feel free to comment on this Code. We

intend to bring it out in many Regional Languages in subsequent years.

COMMON PRACTICES FOLLOWED BY PNB BRANCHES

Display business hours.

Render courteous services.

Attend to all customers present in the banking hall at the close of business hours.

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Provide separate 'Enquiry' or 'May I help you' counter at large branches.

Offer nomination facility to all deposit accounts (i.e. account opened in individual

capacity) and all safe deposit locker hirers (i.e. individual hirers).

Display interest rates for various deposit schemes from time to time.

Notify change in interest rates on advances.

Provide details of various deposit schemes/services of the Bank.

Issue Demand Drafts, Pay Orders, etc.

Display Time-Norms for various banking transactions.

Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of

India (RBI) from time to time.

Accord immediate credit in respect of outstation and local cheques upto a specified

limit subject to certain conditions, as advised by RBI from time to time.

Provide complaint/suggestion box in the branch premises.

Display address of Regional/Zonal and Central Offices as well as Nodal Officer

dealing with customer grievances/complaints.               

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5.1 STATEMENT OF THE PROBLEM

This Study will help us to understand the consumer’s satisfaction about banking

services and products. This study will help banks to understand, how a consumer selects,

organizes and interprets the Quality of service and product offered by banks.

The market is more aware and realistic about investment and returns from financial

products. In this background this study tries to analyze the customer satisfaction towards

banking services in general and PNB in particular.

5.2 NEED FOR THE STUDY

The deeper the company understands of consumer’s needs and

satisfaction, the earlier the product or service is introduced ahead of

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competition, the greater the expected contribution margin. Hence the study

is very important.

This study will help companies to customize the service and product,

according to the consumer’s need.

This study will also help the companies to understand the experience and

expectations of the existing customers.

.

5.3 REASERCH METHODOLOGY

A descriptive study tries to discover answers to the questions who, what, when,

where, and, sometimes, how. The researcher attempts to describe or define a subject,

often by creating a profile of a group of problems, people, or events.

Such studies may involve the collection of data and the creation of a distribution of the

number of times the researcher observes a single event or characteristic (the research

variable), or they may involve relating the interaction of two or more variables.

Organizations that maintain databases of their employees, customers, and suppliers

already have significant data to conduct descriptive studies using internal information.

Yet many firms that have such data files do not mine them regularly for the decision-

making insight they might provide.

This descriptive study is popular in business research because of its versatility

across disciplines. In for-profit, not-for-profit and government organizations, descriptive

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investigations have a broad appeal to the administrator and policy analyst for planning,

monitoring, and evaluating. In this context, how questions address issues such as

quantity, cost, efficiency, effectiveness, and adequacy.

Descriptive studies may or may not have the potential for drawing powerful inferences.

A descriptive study, however, does not explain why an event has occurred or why the

variables interact the way they do.

5.4 SAMPLE METHOD

Convenience sampling method is used for the survey of this project. It is a non-

probability sample. This is the least reliable design but normally the cheapest and easiest

to conduct .In this method Researcher have the freedom to choose whomever they find,

thus the name convenience. Example includes informal pools of friends and neighbours

or people responding to a newspaper’s invitation for readers to state their position on

some public issue.

5.6 SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present

study, 100 respondents were selected at random. All the 100 respondents were the

customers of different branches of PNB.

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5.7 SAMPLING METHOD

A sample is a representative part of the population. In sampling technique,

information is collected only from a representative part of the universe and the

conclusions are drawn on that basis for the entire universe.

A convenience sampling technique was used to collect data from the respondents.

5.8 METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been

designed as a primary research instrument. Questionnaires were distributed to

respondents and they were asked to answer the questions given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it is an

important method of data collection. The success of the questionnaire method in

collecting the information depends largely on proper drafting. So in the present study

questions were arranged and interconnected logically. The structured questionnaire will

reduce both interviewers and interpreters bias.

Further, coding and analysis was done for each question’s response to reach into

findings, suggestions and finally to the conclusion about the topic.

5.9 TYPES OF DATA

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Every decision poses unique needs for information, and relevant strategies can be

developed based on the information gathered through research. Research is the systematic

objective and exhaustive search for and study of facts relevant to the problem

Research design means the framework of study that leads to the collection and

analysis of data. It is a conceptual structure with in which research is conducted. It

facilitates smooth sailing of various research operations to make the research as effective

as possible.

PRIMARY DATA

Primary data are those collected by the investigator himself for the first time and thus

they are original in character, they are collected for a particular purpose.

A well-structured questionnaire was personally administrated to the selected sample to

collect the primary data.

SECONDARY DATA

Secondary data are those, which have already been collected by some other persons for

their purpose and published. Secondary data are usually in the shape of finished products.

Two types of secondary data were collected for the preparation of the project work:

Internal Data was generated from company’s brochures, manuals and annual reports

External Data, on the other hand, was generated from magazines, research books,

intranet and internet (websites).

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TABLE 6.1

SHARE OF DIFFERENT TYPES OF ACCOUNTS

SL. No. NATURE OF

ACCOUNTS

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1. Saving A/Cs 78 78%

2. Current A/Cs 9 9%

3. Fixed Deposits 4 4%

4. Loans 3 3%

5. Others 6 6%

Total 100 100%

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have

Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which

includes fixed deposits, loans, and other products)

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Interpretation: This means most of the respondents are having Saving A/Cs which

means the bank deposits are enriching as Saving A/Cs share is most.

TABLE 6.2

SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED

BY PNB BRANCH

SL. No. RESPONSE NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1. Satisfied 89 89%

2. Not satisfied 11 11%

TOTAL 100 100 %

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Analysis: From the above table it could be inferred that 89% of the consumers are

satisfied with the service and quality of products of their bank. Only 11% of consumers

are not satisfied.

Interpretation: Most of the respondents are satisfied with the service offered by PNB.

Presently the bank offers varieties of services and the customers are getting a good rate of

return from their deposits. Customers are getting good service from the bank.

TABLE 6.3

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S

LIFE INSURANCE COMPANY

SL. No. RATINGSNUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1. EXCELLENT 05 5%

2. VERY GOOD 09 9%

3. GOOD 76 76%

4. AVERAGE 06 6%

5. POOR 04 4%

TOTAL 100 100 %

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Analysis: From this table it could be inferred that 76% of the consumers have rated

service offered as ‘good’, 9% of them have rated them as ‘very good’, and 05% of them

have rated as excellent and average’ while only 4% have rated as ‘poor’

.

Interpretation: Service offered by the bank is improving day by day. Returns consumers

are getting are also attractive. Majority of the customers rates good, very good and

excellent because of the customer service offered by the bank. Banks are providing a

good service to the customers due to increased competition in the market. This may be

the reason for more satisfaction

TABLE 6.4

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TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB

SL.NO ATTRIBUTE SCORE RANK

1. Brand name 56 1

2. Customer service 30 2

3. Interest 12 3

4. Others 2 4

Analysis: This table show the strengths and weaknesses of the brand, and what are the

important criteria or factors on which decision-making is done. From this table we can

infer that consumers give more importance for ‘Brand name’, secondly they prefer

‘satisfaction’, and then ‘returns on investment’.

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Interpretation: This purely shows that people are now looking forward for better

customer service in addition to the brand name in which they are investing and the returns

they are getting.

TABLE 6.5

CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE

INSURANCE COMPANY TO OTHERS

SL. No. RESPONSES NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1. Recommended 92 92%

2. Not recommended 08 8%

TOTAL 100 100 %

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Analysis: From this table it can be noted that the majority of consumers (92%) would

like to recommend their bank services to others and only 8% of consumers would not like

to recommend it to others.

Interpretation: Since the competition has increased in the field of benefits and service of

banking. So customers are getting good service, so that they are willing to recommend

their bank services to others.

TABLE 6.6

CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER

BANKS

SL. No. RESPONSES NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1. Shift 8 8%

2. Doesn’t shift 92 92%

TOTAL 100 100 %

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Analysis: From this table it can be noted that the majority of consumers (92%) doesn’t

like to shift their A/Cs to other banks.

Interpretation: The reason can be increasing customer satisfaction and quality services

offered by the bank.

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CONCLUSION:

The project entitled “A STUDY TO UNDERSTAND THE CUSTOMER

SATISFACTION AT PNB” has helped me in studying satisfaction about services and

products offered to consumers.

Since the opening up of the banking sector, private banks are in the

fray each one trying to cover more market share than the other.

Yet, PNB is far behind SBI. PNB must also be alert what with Private Banks

(ICICI, HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely hope it uses my

suggestions enlisted, which I hope will take them miles ahead of competition.

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SUGGESTIONS & RECOMMENDATIONS

With regard to banking products and services, consumers respond at different rates,

depending on the consumer’s characteristics. Hence PNB should try to bring their new

product and services to the attention of potential early adopters.

Due to the intense competition in the financial market, PNB should adopt better

strategies to attract more customers.

Return on investment company reputation and premium outflow are most

preferred attributes that are expected by the respondents. Hence greater focus

should be given to these attributes.

PNB should adopt effective promotional strategies to increase the awareness level

among the consumers.

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PNB should ask for their consumer feedback to know whether the consumers are

really satisfied or dissatisfied with the service and product of the bank. If they are

dissatisfied, then the reasons for dissatisfaction should be found out and should be

corrected in future.

The PNB brand name has earned a lot of goodwill and enjoys high brand equity.

As there is intense competition, PNB should work hard to maintain its position

and offer better service and products to consumers.

The bank should try to increase the Brand image through performance and service

then, only the customers will be satisfied.

Majority of the people find banking important in their life, so PNB should employ

the strategies to convert the want in to need which will enrich their business.

In short, I would like to say that the very act of the concerned management at

PNB in giving me the job of critically examining consumer satisfaction towards financial

products and services of the company is a step in their continual mission of making all

round improvements as a means of progress.

I am sure the bank has a very bright future to look forward to and will be a

trailblazer in its own right.

REFERENCES

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There was an immense need and flow of the information. While conducting the analysis

as well as while writing the report, which was gathered through various sources

mentioned below: -

Internet

http://pnbindia.com last accessed on 2/08/2009

http://moneymarket.com last accessed on 7/08/2009

Other Printed Literature such as

PNB Product Manual Guide

Annual General Reports of PNB (2008 – 2009)

PNB Performance Highlights 2008 & 2009

Books

Customer satisfaction measurement simplified

- Jeffrey Gitomer

Why satisfied customers defect “Harvard Business Review nov-dec 1995

Customer Satisfaction measurement & management : using the voice of

customer

- Naumann Giel

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QUESTIONNAIRE

Name:

Phone off: Phone Res.

Occupation

Office Address

Monthly Income: 5000 – 10000 10000 – 20000

And above

Type of Bank’s you are holding saving account with-

1. Nationalized / co-operative

2. Private

3. Multinational

How

long have you been banking with them?

1. Less than 1 year

2. 1-3 year

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4year and above

How would you rate your experience with your current bankers?

1. Excellent

2. Good

3. Fair

4. Poor

Do you presently hold a credit Card?

1. Yes

2. No

Does your bank charges you on the transaction that you do on the

credit Card?

1. Yes

2. No

Which of these factors influenced your decision to open an account

with your current bank?

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1. Facilities provided by the Bank

2. Recommendation by friend / relatives

3. Advertisement

4. Brand

5. ATM’s

6. Branch timing

How important are the banking facilities for you?

services Not Important Average Important Very Important

A.T.M

Phone Banking

Locker facilities

Cash / Cheque Pick up

Insurance

Facilities with

Your account

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Banking Hours

Discount in restaurants

& Shopping malls

Free Drafts /Pay orders

365 days Branch

Banking

Would you be interested in opening a saving account with the Punjab

National Bank?

Bank which can be accessed at over 1450 ATM’s all over the

country for free*

1. Yes

2. No

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