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Comparative Study on Service quality between a private Banks and a Public sector Banks and Foreign Banks Presented

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Anup Kumar Ojha MBA IV

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USHA MARTIN ACADEMY KOLKATA

3/20/12

INTRODUCTION
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Banks play a role of considerable economic significance as intermediaries in mobilizing public savings and channelising the flow of funds for productive purposes, keeping on the process of the economic growth of the country. Realizing the importance of the role of the banks in economic development, Government of India/Reserve Bank of India took several major initiatives after the country USHA MARTIN ACADEMY KOLKATA 3/20/12 attained independence to gear the

Objectives of the Study


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Following objectives are planned in the present investigation:- To assess various aspects of services provided by the public sector, private sector and foreign banks. To assess the extent of use of services especially the IT enabled services in these banks.

To determine and compare the extent of customers satisfaction with quality of USHA MARTIN ACADEMY KOLKATA 3/20/12 banking services on the basis of different

Current Scenario
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Currently, overall banking in India is considered as fairly mature in terms of supply, product range and reach even though reach in rural India still remains a challenge for the private sector and foreign banks.

Well- computerized foreign banks are beginning to compete seriously with the nationalized banks. They aim at a profitable and wealthy part of the market and, in contrast to the USHA MARTIN ACADEMY KOLKATA 3/20/12

Banking Services
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With years, banks are adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.

The new age IT (Information Technology) is bringing about sweeping changes in the banking industry, forcing them to reengineer many of USHA MARTIN ACADEMY KOLKATA their basic processes 3/20/12

Banking Technology
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Financial reforms had its impact on Indian banks and financial institutions. In the fast changing financial environment, fierce competition and changes in the regulatory policies created uncertainty and risk for the Indian banking industry. Realizing this fact, academicians and practitioners highlighted in their studies that information source in banks is of capital importance and they look at information technology as strategic USHA MARTIN ACADEMY KOLKATA 3/20/12 response to changing financial

Customers Satisfaction
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A customer can be defined as a user or potential user of banking services. A customer would include an account holder, or his representative, or a person carrying out casual business transactions with a bank, or a person who, on his own initiative, may come within the banking fold (Talwar Committee Report 1976). The efficiency of a banking sector depends upon how best it can deliver services to its target customers. In order to survive in this competitive environment and provide continual customer satisfaction, the providers of banking services are now required to continually improve the quality of services. The globalization of Indian economy has truly called for much more disciplined approach on the part of Indian banking sector to improve the overall quality of customer services through smart use, absorption and adoption of flexible and appropriate information technology. It is seen that 5% increase in customer retention can increase profitability by 35% in banking business, 50% in insurance and brokerage, and 125% in the consumer credit card market. Therefore, banks are now stressing on retaining customers and increasing market share (Chothani et al. 2004). A favorable climate for excellent service manifests itself in employee behavior, for example, being attentive to customers, speaking favorably about the organization and its services. With frequent employee-customer contact, customers are more often exposed to such positive behaviors, USHA MARTIN ACADEMY KOLKATA 3/20/12 which in turn, affect customer satisfaction.

Public sector Bank


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The term public sector banks is used commonly in India. This refers to banks that have their shares listed in the stock exchanges NSE and BSE and also the government of India holds majority stake in these banks. They can also be termed as government owned banks.

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Private Sector Bank


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All those banks where greater parts of stake or equity are held by the private shareholders and not by government are called as the private sector banks. These are the major players in the banking sector as well as in expansion of the business activities India. The present private sector banks equipped with all kinds of contemporary innovations, monetary tools and techniques to handle the complexities are a result of the USHA MARTIN ACADEMY KOLKATA 3/20/12 evolutionary process over two centuries.

Foreign Bank
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A foreign bank is one that has its headquarters established in a country that is outside India and has obtained the permission from Reserve Bank of India to carry out banking operations inside India. Some of the foreign banks that have branches in India are: a. ABN AMRO b. Bank of America c. Bank of Ceylon d. Barclays Bank USHA MARTIN ACADEMY KOLKATA 3/20/12 e. Citibank

List of public sector Bank


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Punjab & Sind Central bank Bank

Punjab National India Reserve Bank of Bank State Bank of Bikaner & Jaipur Allahabad Bank State Bank of Andhra Bank Hyderabad State Bank of Mysore Bank of Baroda State Bank of Bank of India Patiala State Bank of Travancore Bank of Maharashtra
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State Bank of India Nationalized banks

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List of Private Sector Bank


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New private sector banks


Axis Bank(Formerly UTI Bank) Old private sector banks

HDFC Bank Catholic Syrian Bank ICICI Bank City Union Bank IndusInd Bank Dhanlaxmi Bank Up Agro Bank Federal Bank Coporation Ltd ING Vysya Bank Jammu & Kashmir Bank Kotak Mahindra Karnataka Bank Bank
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Foreign banks operating in India


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HSBC ABN AMRO Bank N.V.(Now merged with RBS) JPMorgan Chase Bank

Abu Dhabi Commercial Bank Krung Thai Bank American Express Bank Mashreq Bank psc

Bank InternasionalBank Indonesia Mizuho Corporate Bank of America NA Royal Bank of Scotland

Bank of Ceylon Shinhan Bank Bank of Nova Scotia(Scotia Bank) Socit Gnrale

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Bank of Tokyo Mitsubishi UFJ3/20/12

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Difference between Public Sector Bank And private Sector bank


A private cector is an economy is made up af all businesses and firms owned by ordinary members of the general public.

It also consist af all the private households in which people live whereas, public sector is an economy is owned and controlled by a government . It consist of government businesses and firms ,and goods and services provided USHA MARTIN ACADEMY KOLKATA 3/20/12 by the government,such as the national

Difference in Services
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Public sector banks are now not anymre less than the private sector banks. they are also up to the mark and level of the private sector banks, no doubt it will take some more time to come completely up to that level.

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CONCLUSION
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Various traditional and IT enabled banking services used by customers are studied in the present paper. In addition, customer satisfaction was also measured with various dimensions. It is observed that cheque deposit and cheque clearance were the most common banking services used by the customers of all six banks. While the charges levied by the bank on different services were perceived higher by the USHA MARTIN ACADEMY KOLKATA 3/20/12 customers in private and foreign banks

A COMPARATIVE STUDY OF BANKING SERVICES AND CUSTOMER SATISFACTION


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mostly delay in transaction and extra charges. Hence, the study throws light on different aspects and drawback of services of the nationalized, private and foreign banks. Training on stress management and public dealing should be imparted to the employees of nationalized banks.

Nationalized banks need to improve their infrastructure and ambience to USHA MARTIN ACADEMY KOLKATA 3/20/12 compete with private and foreign banks

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Thank You

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