_____________________________________________________________________

Chapter -1

Theoretical Background

1.1. INFORMATION OF THE INDUSTRY

Banking in India has its origin as early as the Vedic period. It is believed that

the transition from money lending to banking must have occurred even before

Manu, the great Hindu Jurist, who has devoted a section of his work to

deposits and advances and laid down rules relating to rates of interest. During

the Mogul period, the indigenous bankers played a very important role in

lending money and financing foreign trade and commerce. During the days of

the East India Company, it was the turn of the agency houses to carry on the

banking business. The General Bank of India was the first Joint Stock Bank to

be established in the year 1786. The others that followed were the Bank of

Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have

continued till 1906 while the other two failed in the meantime. In the first half

of the 19th century the East India Company established three banks; the Bank

of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in

1843. These three banks also known as Presidency Banks, were independent

_____________________________________________________________________

- 1 -

_____________________________________________________________________

units are functioned well. These three banks were amalgamated in 1920 and

a new bank, the Imperial Bank of India was established on 27th January 1921.

With the passing of the State Bank of India Act in 1955, the undertaking of the

Imperial Bank of India was taken over by the newly constituted State Bank of

India. The Reserve Bank which is the Central Bank was created in 1935 by

passing Reserve Bank of India Act 1934. In the wake of the Swadeshi

Movement, a number of banks with Indian management were established in

the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara

Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India

Ltd. On July 19, 1969, 14 major banks of the country were nationalized and in

15th April 1980, six more commercial private sector banks were also taken

over by the government. Today the commercial banking system in India may

be distinguished into,

PUBLIC SECTOR BANKS

a. State Bank of India and its associate banks called the State Bank

group

b. 20 nationalized banks

c. Regional Rural Banks mainly sponsored by Public Sector Banks

PRIVATE SECTOR BANKS

a. Old generation private banks

b. New generation private banks

c. Foreign banks in India

d. Scheduled Co-operative Banks

e. Non-scheduled Banks

CO-OPERATIVE SECTOR

The co-operative banking sector has been developed in the country to the

supplement the village money lender. The co-operative banking sector in

India is divided into 8 components

_____________________________________________________________________

- 2 -

_____________________________________________________________________

1. State Co-operative Banks

2. Central Co-operative Banks

3. Primary Agriculture Credit Societies

4. Land Development Banks

5. Urban Co-operative Banks

6. Primary Agricultural Development Banks

7. Primary Land Development Banks

8. State Land Development Banks

DEVELOPMENT BANKS

1. Industrial Finance Corporation of India (IFCI)

2. Industrial Development Bank of India (IDBI)

3. Industrial Credit and Investment Corporation of India (ICICI)

4. Industrial Investment Bank of India (IIBI)

5. Small Industries Development Bank of India (SIDBI)

6. SCICI Ltd.

7. National Bank for Agriculture and Rural Development (NABARD)

8. Export Import Bank of India

9. National Housing Bank

Banks safeguard money and valuables and provide loans, credit, and

payment services, such as checking accounts, money orders, and

cheque’s. There are several types of banks, also called depository

institutions, which differ in the number of services they provide and the

clientele they serve. Commercial banks, which dominate this industry,

offer a full range of services for individuals, businesses, and

governments. These banks come in a wide range of sizes, from large

global banks to regional and community banks. Global banks are involved

in international lending and foreign currency trading, in addition to the

more typical banking services. Regional banks have numerous branches

_____________________________________________________________________

- 3 -

_____________________________________________________________________

and automated teller machine (ATM) locations throughout a multistate

area that provide banking services to individuals. Locally based

Community banks offer personal attention, which is helpful to individuals

and small businesses. In recent years, online banks—which provide all

services entirely over the Internet—have entered the market.

Savings banks and savings and loan associations, sometimes called

thrift institutions, are the second largest group of depository institutions. They

were first established as community-based institutions to finance mortgages

for people to buy homes and still cater mostly to the savings and lending

needs of individuals.

The banking sector reforms undertaken in India from 1992 onwards

were basically aimed at ensuring the safety and soundness of financial

institutions and at the same time at making the banking system strong,

efficient, functionally diverse and competitive. The reforms included measures

for arresting the decline in productivity, efficiency and profitability of the

banking sector. Furthermore, it was recognized that the Indian banking

system should be in tune with international standards of capital adequacy,

prudential regulations, and accounting and disclosure standards. Financial

soundness and consistent supervisory practices, as evident in our level of

compliance with the Basel Committee’s Core Principles for Effective Banking

Supervision, have made our banking system resilient to global shocks

_____________________________________________________________________

- 4 -

_____________________________________________________________________

1.1.2. PRIVATIZATION OF STATE BANKS

State banks in India have, over the years, played a very significant role

in the development of the economy and in achieving the objectives of the

nationalization undertaken in 1969 and 1980, namely to reach the masses

and cater to the credit needs of all segments, including weaker sections, of

the economy. The period 1969-90 witnessed rapid branch expansion and an

adequate flow of credit to all sectors, including the neglected sectors of the

country. From 1990, however, it was recognized that steps were needed to

improve the financial health of banks to make them viioble, efficient and

competitive to serve the emerging needs and enhance the efficiency of the

real sector. The role of the large state banks has not undergone any structural

changes. They continue to serve the varying needs of the economy, what has

changed significantly, as a result of the reform process is the focus on their

consolidation, efficiency, resilience, productivity, asset quality and profitability

through liberalization, deregulation and adoption of prudential standards in

line with international best practices.

As a part of financial sector reforms and with a view to giving the state

banks operational flexibility and functional autonomy, partial privatisation has

been authorized as a first step, enabling them to dilute the stake of the Indian

government to 51%. The government further proposed, in the Union Budget

for the financial year 2000-01, to reduce its holding in nationalized banks to a

minimum of 33% on a case by case basis. The major problems for gradual

privatization are likely to be resistance from staff to rationalization of the

branch network and emphasis on higher staff productivity. The optimal size of

a bank depends on several factors and differs between countries depending

on the level of economic development, the number and diversity of financial

institutions/instruments, the competitive situation in the market, etc. Looking at

the typical Indian situation, the big banks operating in international markets

have to coexist with banks operating only at the national level, regional rural

banks and co-operative banks, which will induce the necessary competition in

the market. Most of the state banks have a strong national presence and are

_____________________________________________________________________

- 5 -

_____________________________________________________________________

catering to the needs of various segments of the economy. We do not expect

to split the state banks into smaller entities even after the gradual

disinvestments of government equity in them. Rather, there is a posiobility of

consolidation for synergizing business/regional strengths, and efforts in this

area may be board-driven with the functional autonomy that will emerge as a

result of such disinvestments.

1.1.3. DOMESTIC MERGERS

Under the Banking Regulation Act, banking companies cannot merge

without the approval of the Reserve Bank of India. The government and the

Reserve Bank do not play a proactive role in either encouraging or

discouraging mergers. It is our endeavor that the government and the RBI

should only provide the enabling environment through an appropriate fiscal,

regulatory and supervisory framework for the consolidation and convergence

of financial institutions, at the same time ensuring that a few large institutions

do not create an oligopolistic structure in the market. Mergers should be

based on the need to attain a meaningful balance sheet size and market

share in the face of heightened competition and driven by synergies and

locational and business-specific complementarities.

While there is no regulatory, deterrence to bank mergers, their

incidence has not been significant and hence no problems have occurred in

India. Mergers of banks help to reduce the gestation period for

launching/promoting new places of business, strengthen product portfolios,

minimize duplication, gain competitive advantage, etc. They are also

recognized as a good strategy for enhancing efficiency. Ideally, mergers

ought to be aimed at exploiting synergies, reducing overlap in operations,

right-sizing and redeploying surplus staff either by retraining, alternate

employment or voluntary retirement, etc. As banks are leveraged and the

credibility of the top management has tremendous supervisory implications,

_____________________________________________________________________

- 6 -

_____________________________________________________________________

we prefer consensual mergers to hostile takeovers. The takeover codes

should therefore, reflect the supervisory concerns.

1.1.4. FOREIGN BANKS

The presence of foreign banks does not imply negligence of particular

sectors of the economy. In India, foreign banks are required to comply with

priority sector lending norms, where the commitments are lower than those

applicable to domestic banks under a tailor-made structure suitable to them.

The experience is that foreign banks adhere to the Reserve Bank

prescriptions. Due to their limited knowledge of the local industry and branch

network, foreign banks are very conscious about their asset quality and a

major shift in the share of foreign banks may result in neglect of the credit

requirements of small and medium-sized businesses, whose development is

crucial for emerging markets, but which are perceived as carrying relatively

higher risks. Foreign banks constantly evaluate the political, economic and

_____________________________________________________________________

- 7 -

_____________________________________________________________________

financial climate in financial markets and vary their investment/lending

decisions. While the credit risk management processes and practices vary

among banks, all internationally active banks have centralized policies and

transfer risk monitoring, reporting and limiting mechanisms. While the

traditional scope encompassed only sovereign and transfer risk, large flows of

loans to non-G10 countries. Commercial entities have induced banks to

broaden the scope of country and transfer risk management to incorporate the

potential default of foreign private sector counterparties arising from country-

specific economic factors. In response to the Asian crisis and more recent

events, banks in India are required to strengthen their country and transfer

risk monitoring and analysis in an effort to identify incipient problems and to

adjust exposures more promptly and systematically. While entry of foreign

banks is bound to affect the overall competitive situation in the market, much

depends on the policy of the sovereign in regard to their entry/expansion, the

existing share of domestic banks, etc. One of the main thrusts of the banking

sector reforms in India has been to introduce more competition in the banking

industry with regard to mergers, only very few foreign banks operating in India

have gone through the process of global mergers. The impact of mega

mergers taking place at the global level on the competitive position of the

Indian banking system has been minor, in view of foreign banks limited share

in the financial system. At the same time, foreign banks have the potential,

even without mega mergers, to improve their market share, given their use of

sophisticated technology and capability of introducing innovative products.

_____________________________________________________________________

- 8 -

_____________________________________________________________________

1.1.5. IN BRIEF

The financial sector reforms have brought about significant

improvements in the financial strength and the competitiveness of the Indian

banking system. The prudential norms, accounting and disclosure standards,

risk management practices, etc are keeping pace with global standards,

making the banking system resilient to global shocks.

The efforts on the part of the Reserve Bank of India to adopt and refine

regulatory and supervisory standards on a par with international best

practices, competition from new players, gradual disinvestments of

government equity in state banks coupled with functional autonomy, adoption

of modern technology, etc are expected to serve as the major forces for

change. In the emerging scenario, the supervisors and the banks need to put

in place sound risk management practices to ensure systemic stability.

_____________________________________________________________________

- 9 -

_____________________________________________________________________

1.1.6. BANKING SYSTEM IN INDIA

_____________________________________________________________________

- 10 -

DEVELOPMENT BANKS

Industrial Development

Banks

State Level

Primary Land Development Banks

State Level Land Development Banks

Land Development Banks

All India

IFCI LTD

Subsidiary Companies

ICICI SFC’s SIDC’s

Subsidiary Companies

INVESTMENT INSTITUTIONS

CREDIT GURANTEE INSTITUTIONS

LIC UTIGIC

MONEY MARKET INSTITUTIONSECGC DICGCI

_____________________________________________________________________

1.2 INTRODUCTION OF THE RESEARCH

TOPIC

The Indian Overseas Bank, which has a tradition of over 75 years of

public trust, stepped into the financial terrain of our country in the year 1937

and was founded by Chidambaram Chettyar. Indian Overseas Bank has

second largest network of branches amongst the old public sector banks -

2018 branches and Extension Counters spread across the country. It has 6

branches abroad.

Because of the fare competition the bank has to know about the

customer’s perception and attitudes towards the bank. The research study

restricted to a particular branch of IOB.

_____________________________________________________________________

- 11 -

_____________________________________________________________________

1.2.1. Who is a customer to a bank?

The multi faceted role of a bank today would classify customers into

any of the following 5 categories

1. Custodian of funds

2. Investor who looks for maximum returns

3. Financier and support in his trade and commerce activities

4. Services for facilitations

5. Advisory services

So when a bank plans a

satisfaction plan for his customer,

the focus would be on which

customer, what attributes of

service does he value, factors of

importance to the customer (which

varies in each of the category and

the profile of the customer) and the

relationship with the respective

customer till date (if any). Banking

still and in future, is nothing but

people management, with banking as an apparent offering. The plan varies

from customer to customer, based on his profile, to the service providers’

(bankers’) profile, objective/ mission of the corporate body, relationship till

date and macro environment conditions like fiscal rates, economic status,

market trends, brand value of the bank, facilities offered and cost parameters

and many other forces (situational/ cultural / social etc.).

_____________________________________________________________________

- 12 -

_____________________________________________________________________

1.2.2. TITLE & INTRODUCTION

Title: Customer Satisfaction Towards Indian Overseas Bank” A

Study with reference to (Magadi Road Branch

Introduction: Even in the most primitive society attempts to produce

and sell products for which buyers will have no posioble use will meet with

utter failure. This is simply say that marketers have always been to the choice

of consumers. Consumer’s choice has traditionally involved a major decision.

“Whether buy or not to buy a particular good or service”.

“From whom the products buy”.

Right from the olden days there has been exchange of goods and

services between the buyers and sellers the ultimate success of all the

economic activities has primarily depended on the producer, manufacturing

and selling goods and services desired by the target customers. The ultimate

decision of whether or not to purchase a product or service and from whom to

buy has always been vested in the hands of the ultimate customers.

Since the focus of attention is on consumer, the marketer is always

probing and trying to learn:-

Who buys products / service?

How do they buy products / service?

When do they buy products / services?

Where do they buy goods / services?

How often do they buy? And so on………..

_____________________________________________________________________

- 13 -

_____________________________________________________________________

This shows that there is always an attempt on the part of the marketers

to understand and study “Consumer Behaviour”. This can be reflected as

an attempt to understand and predict human actions in the buying role. The

study of consumer behaviour is comparatively a new research field. Basically

human beings have been sociable in nature and their buying decision or

freedom of choice is determined by the affluence of the individual consumer

and society in question, since consumer is one who will decide whether or not

to buy a particular product, marketers have to understand the role of

consumer in the market and workout marketing program’s accordingly.

Consumer Behaviour is defined as all Psychological, social and physical

behaviour of all potential consumers as they become aware of, evaluate,

purchase, consume, and tell others about products, and service.

Since this is comparatively a new field of study, many persons have

expressed their views on consumer behaviour looking at it from various

angels, understanding of the buyers behaviour will provide insight to the

marketing, manager on how to go about planning and implementing their

various marketing Programmer.

India has a rich and varied culture. It will be interested to understand

the nature and characteristics of the Indian consumers, whose buying

decisions will be based on the influence of the values, beliefs, customs and

practices and behaviour of the particular society of which they are a part. The

consumers also vary in the consumption pattern based on Geographical

location, Density, Population, Urban Rural feature of the consumers Age,

Literacy level, Income, Linguistic Diversity, Religion and Dress, Food habits

and Festivals celebrated.

_____________________________________________________________________

- 14 -

_____________________________________________________________________

1.2.3. THEORITICAL ASPECTS OF THE STUDY

For the successful execution of marketing strategies or for translating

the strategies into meaningful purpose, it is crucial to have a detailed

knowledge of the changing behaviour of users of services. It is very essential

that organizations be well aware of their behaviour as this simplifies their task

of creating and stimulating demand.

Users have values, perceptions, preferences and a behaviour pattern

which are the result of various influences. It is important to assess both

behaviour pattern and user’s characteristics, for in the recent years, users

have become more discriminating in their using habits and so their needs for

different service products and brands are constantly changing. This makes it

essential that the marketers analyse there needs and identify have to improve

marketing products and communications to satisfy them.

1.2.4. INTRODUCTION TO THE CONSUMER BEHAVIOUR

Every marketing activity revolves round the customer he is the focal

point. In the early stages of economic evolution, the consumer had to accept

what producer had produced, but today the consumer dictates terms to the

manufacturer the product he wants, the consumer purchase a commodity as

dictated by their mental and economic forces. Mental force creates desires

and wants and the consumers feel that products offered by

manufactures can satisfy their wants. Hence, he has to

choose between the wants and select the product according

to the priority of consumption. The producer has to consider

these two consumer forces before manufacturing the

products. As consumption initiates production, the producer

should identify the motives, which promote consumer to purchase. This helps

him to offer a total product that can satisfy the consumer needs.

_____________________________________________________________________

- 15 -

_____________________________________________________________________

The consumer’s inner motives such as fear, vanity, pride, fashion,

possession, sex or romance, affection, comfort and economic motives such

as purchasing power are the ones, which decide the buying pattern. With the

increase in the productivity, capacity of many a nation which have far

exceeded the minimum level needed to satisfy the basic needs of the

consumers, the consumers are also in an enviable position to house a product

from an alley of branch available in the market. Today’s marketers have also

realized the discerning buying power of the consumers and they are

constantly trying to adopt their product to suite, the ever-changing needs of

the customers.

The field of consumer behaviour studies how individual groups as

organization select buy use and dispose of goods services ideas or

experiences to satisfy their needs and desires. Smart companies research the

buying decision process involved in their product category and go through

various stages of buying decision process.

_____________________________________________________________________

- 16 -

_____________________________________________________________________

1.2.5. BUYING DECISION PROCESS

PROBLEM RECOGNITION

The buying process starts when the buyer recognizes the problem or

need. The buyer senses a difference between his or her actual state and her

desired state. The need can be triggered by internal or external stimuli.

In the former case, one of the person’s normal needs-hunger, thirst, sex-rises

to a threshold level and becomes a drive. In the latter case, a need is aroused

by external stimuli. Marketers need to identify the circumstances that trigger a

particular need.

INFORMATION SEARCH_____________________________________________________________________

- 17 -

_____________________________________________________________________

An aroused consumer will be inclined to search for more information.

They may be twelve’s of arouser.

Heighten attention : The Milder search state

Active information search : The actual search state

PURCHASE DECISION

In the evaluation stage, the consumer forms preferences among the

brands in the choice set. The consumer may also form an intention to buy the

most preferred brand. However, factors can intervene between the purchase

intention and purchase decision.

Attitude of others

Unanticipated situational factors

POST PURCHASE BEHAVIOUR

After purchasing the product, the consumer will experience some level

of satisfaction and dissatisfaction. The marketer’s job does end when the

product has brought but continues into the post purchase period. Marketer

must monitor post purchase satisfaction, post purchase action and post

purchase product use and disposal.

_____________________________________________________________________

- 18 -

_____________________________________________________________________

1.2.6. DEFINITION OF CONSUMER BEHAVIOUR

Consumers’ behaviour is defined as “Those acts of individuals directly

involved in obtaining and using economic goods and service including

decision procure that and determined these acts. “it is the behaviour exhibited

by people in planning, purchasing and using goods and service. A series of

decision will have to be taken like, how much to spent, on what, where to buy,

how to buy, whom to buy etc. Consumer behaviour consists of both physical

and mental behaviour. Physical activities includes, visiting a shop, examining

the product, where as mental activities involves behaviour deliberation within,

forming attitudes, processing the communication and learning to prier a brand.

Some times behaviour is the sum total of the behaviour of a number of people

this makes the study of consumer behaviour complex. It is related to other

fields like physiology, sociology etc.

IMPORTANCE

The importance of studying consumer behaviour is rooted in modern

marketing concept. Businesspersons can help consumers to solve their

consumption problems buy understanding them and trying to analyze the

buying procure and factors influencing it. Consumer behaviour is dynamic; a

continuous study is required to make effective marketing decision. The project

depends on

the pre-disposition that a customer has developed towards the product. It is

helpful to understand why such a pre-disposition has been developed.

_____________________________________________________________________

- 19 -

_____________________________________________________________________

NECESSITY

The emerging consumer movement necessitates markets to

understand consumer behaviour – their needs, aspiration, expectations and

problems. It will be easier in exploiting marketing opportunities meeting

challenges of the markets. Modern marketing is consumer oriented, customer

is the king. Thus marketers must try to offer the product wanted by the

customers at the price he is prepared to pay, through distribution channel,

convenient to him with a right type of promotion. To do this a study of

consumer behaviour is necessary. Consumer decides the existence or

otherwise of a business concern. A consumer by nature may be on extrovert

or on introvert. A study of consumer behaviour helps to formulate the

marketing Programme mix and policies.

FACTORS

To understand consumer behaviour on the eventual buying decisions,

major factors have to clearly understood and analysed.

They are: -

Buyer characteristics.

Personal characteristics.

Psychological characteristics.

Product characteristics.

Seller characteristics.

Situational characteristics.

Buyer Characteristics: It deals with individuals, personal, psychological,

cultural and social characteristics.

_____________________________________________________________________

- 20 -

_____________________________________________________________________

Product Characteristics: Deals with finding out probable type of the

customers who will buy the products. The knowledge personal characteristic

of customer points out who are the buyer, were they live and how they think.

However, the manufacturer wants to know also, why consumer buys a

product and their response or behaviours towards a product or brands. These

may be benefited, expected, usage response, loyalty response, brand loyalty

and the patronage.

Seller characteristics: Influences the buying decision factor lies in the

image of the manufacturing facilities offered in the retail outlets etc also affect

the choice of the buyer.

Situational characteristics: The situational characteristics also play an

important role in influencing the choice decision of the buyer. The aspects

such as time, day seasonal, weather etc, affect the choice decision of

particular Strata of buyer. Thus, purchase activity involves the recognition of

the need to buy, collection of information pertaining to the product, pre-

purchase behavior, actual purchase and the core areas. The modern

marketing management is aimed at consumer behaviors and application of

quantitative methods in problem solving. The researchers have found out that

a clear understanding of consumer behaviors has contributed to positive and

effective technique oriented marketing. As the consumer becomes more and

more sophisticated at progressively higher stages of economic development

which is precisely the citation prevailing in India presently, the need for

consumer behavior and to make use of the findings of such studies in making

marketing decisions gain is of prime importance. The need for proper

understanding of consumer behavior is necessary by the growing competition

in the marketing environment. The advancement in the field of technology and

management and emerge of consumable has also contributed to the need for

the study of consumer behavior.

_____________________________________________________________________

- 21 -

_____________________________________________________________________

Personal characteristics: Deals with how factor like age, sex,

occupation, lifecycle, position and economic conditions or financial conditions

affect the consumer purchase behavior.

Psychological characteristics: Includes motivation, believes,

perception, attitudes and learning.

1.2.7. FACTORS WHICH INFLUENCES BUYER BEHAVIOR

The factors that influence the buyer behavior may be broadly classified

as shown below:-

1. Cultural Factors Culture, subculture and social

class

2. Social Factors Reference group, family and roles

and statuses

3. Personal Factors Age and life cycle stage,

occupation, economic

circumstances, life style,

personality and self concept

4. Psychological Factors Motivation, perception, learning,

beliefs and attitudes.

1. Cultural Factors: Culture is defined as the symbol and artifacts

created

_____________________________________________________________________

- 22 -

_____________________________________________________________________

by people and handed down from generation to generation as determinants

and regulators of human behavior in a given society. Human beings are

learned while

the lower creatures are governed by instinct. A growing child by getting into

contact with the family members and others around it, learns the basic set of

values, perceptions, preferences and behavior, products and marketers

should carefully read the shifts that take place in the culture so that the

product can fit in the new culture. For example, people today want more

leisure and so they are trying to save time by using time saving equipment’s

like washing machines, wet grinders, mixies, micro-oven etc. Similarly by

being more conscious of health, people by goods like shoes which are used

for jogging, consuming good diet food, earning light food, doing more physical

exercises by using cycles, doing workouts in gym, etc. In order to look young,

people spend on cosmetics, hair dyes, footwear, fancy items, etc. People

prefer to be more informal and so they choose causal clothing, use simple

things for furnishing homes, etc.

Subculture is a part of total culture that is reasonable Homogeneous

with regard to race, religion, nationality, geographic location or some other

factor. For instance in a society there may be people with distinct preferences

and produce the product which will match with the quality of a particular

group. Similarly social class is another determining factor, this is major

division of society based on people’s status in their communities. For

example, people who are giving the same status in their communities. For

example, people who are having the same status will have homogeneous

values, interests and behavior; they show distinct product and brand

preferences mostly in areas like clothing, home furnishings, leisure activity

and automobiles.

2. Social factors: Social factors include reference groups, family,

roles and statuses. A reference group may be of different types.

Membership group influences the members directly, while the primary

_____________________________________________________________________

- 23 -

_____________________________________________________________________

group is the one with which a person will be of continuous interaction

with family, neighbors, friends, etc. Secondary group is more formal in

which a person will have lesser interaction. This includes the religious

groups, professional associations of trade unions. Aspiration group is

one in which the persons would be interested in belonging to a

particular group, whereas the dissociate group is one whose values or

behavior an individual rejects. The producers should identify the group

to which, each consumer belongs, especially in the target market.

Normally these reference groups are the opinion leaders of the

community. Marketers should identify the personal characteristics of

the opinion leaders, determine the media read by these leaders, and

direct all their messages to the opinion leaders.

Family is an important factor influencing the buyer behavior. We can classify

family into two types:

1. Family of orientation and

2. Family of procreation

The former includes one’s parents and the parental influence

determines one’s orientation towards religion, policies, etc. for the rest

of the life of a person. The latter includes the husband, wife and

children. These members in a family influence the buyer behavior.

Mostly the husband and wife influence the decision, through

sometimes the children also influence. Normally the purchase of costly

products and services will be decided through joint decisions and the

cheap items are bought with little influence.

The person’s participation in many groups will determine the role he

is to play and the status that he enjoys. For example, with the parents,

a person may play the role of a child, while in this family he may be the

head of the family whereas in his office he may be the marketing

manager. In each group, the person will be influenced by his role.

_____________________________________________________________________

- 24 -

_____________________________________________________________________

Similarly, the status of the person in each group will also determine the

buyer behavior. For instance, a marketing manager should always be

well dressed and the person has to buy only good dresses.

3. Personal Factors: These are personal characteristics of the buyer

like his age, and life cycle stage, occupation, economic circumstances, life

style and personality. The age of a person is a basic factor determining the

buyer behavior. Life cycle refers to the different stages through which one

passes in his life and the varied buyer behavior associated with it.

The life cycle stages include bachelor stage, newly married couples

and full nest 1, the family with a child under six, full nest 2, the family with a

child above six, full nest 3, consisting of older married couples with dependent

children. Empty nest 1 in which the older married couples with no children

living with them, empty nest 2 in which the older married couple with no

children and the head with no job, solitary survivor in labour force and solitary

survivor retired. In each one of these stages, the buyer behavior is different. A

person’s occupation also influences his buyer behavior, a man working as a

president of a company will have a different type of preference as compared

to lower level staff and workers. Similarly, the economic circumstance of a

person will also be an important factor. A man with large savings can buy

costly goods. Marketers of goods giving elastic demand pay continuous

attention to trends in personal income, savings and interest rates. Similarly,

the life style of a person is another factor. Life style is the person’s pattern of

living in the world as expressed in his or her activities, interests and opinions.

The technique of measuring life styles is known as psychographics. It involves

measuring the major dimensions like activities, interests, opinions and

demographics. Personality and self-concept also influence buyer behavior.

Personality is a person’s distinguishing psychological characteristic that

leads to relatively consistent and enduring responses to his or her own

environment. Personality can be used as a variable for analyzing consumer

behavior. Each person has his own concept of image and the image, which

_____________________________________________________________________

- 25 -

_____________________________________________________________________

the others would have about him. This is the basis on which the behavior of

the consumer would differ.

4. Psychological Factors:This factor can be discussed in terms of

motivation, perception, learning, beliefs and attitudes. A person will

have several types of needs like physiological needs, safety needs,

social needs, esteem needs and self-actualization needs.The

marketers should identify the needs of the consumers and produce the

product to match these needs of the customers. Perception is the

process by which an individual selects, organizes and interprets

information inputs to create a meaningful picture of the world.

Therefore, once a person is motivated, he would act depending upon

his perception.

The three perceptual factors viz. selective exposure, distortion and

retention will influence the rate at which the communication from the

producers will influence the buyer behavior. The producers, therefore, have to

carefully design their message. Human behavior is also subject to the

influence of learning which means that a person learns out of experiences.

Based on the personal experience, people’s beliefs and attitude about a

product will depend. Once the people develop faith in the product and a re

favorably disposed towards it, the product will be bought. Hence, all these

factors influence buyer behavior.

1.3.1. GROWTH OF SERVICES MARKETING

_____________________________________________________________________

- 26 -

_____________________________________________________________________

As the United States turned to service economy, it became apparent

many service providers that

marketing their intangible “products”

was becoming increasingly difficult.

Services cannot be seen, heard,

examined, or felt in advance of

purchase, nor is employee

dependent quality consistent over

time. In some industries, such as

transportation or broadcasting,

services are “perishable” in the

sense that they are forever to the

marketer if not consumed at the time

scheduled (e.g., the revenues lost from flying a half-empty plane or airing a

television show without the full complement of commercials can never be

recouped). Not only did service providers need to market, but also they

realized that knowledge of consumer needs and interests was essential to the

development of effective marketing strategies.

1.3.2. THE ROLE OF CONSUMER RESEARCH_____________________________________________________________________

- 27 -

_____________________________________________________________________

Consumer research is the methodology used to study consumer

behavior. As in any science, consumer behavior theories must be stated and

either supported or rejected before conclusions can be generalized as

principles applicable to marketing practice. Consumer behavior research

enables marketers to carve out new market segments based on variables that

emerge as important discriminators among consumers for specific product or

product category.

To operate successfully, marketing firms must have a through

understanding-explicit rather than implicit-of the factors that encourage

consumers to buy. They have to know why they buy, what needs they are

trying to fulfill, and what outside influences affect their product choices in

order to design persuasive marketing strategies.

1.3.3.THE ROLE OF CONSUMER BEHAVIOR IN STRATEGIC

PLANNING

Strategic planning is a management approach that stresses

organizational adoptability-the adjustment of the firms objectives, its use of

resources, and its operations-to the changing environment. The purpose of

strategic planning is to develop a long-range plan to ensure the company

survival, its profitability, its growth, and its perpetuity. By means of strategic

planning, a company can make things happen, rather than watch things

happen or worse, wonder what happened. Companies that adopt a strategic

marketing approach integrate their marketing plans into their firms overall

strategic plans. Consumer behavior principles can be includes in each step of

the strategic market planning process.

1.3.4 THE SERVICES MARKETING MIX

_____________________________________________________________________

- 28 -

_____________________________________________________________________

The challenges facing the financial services industry mean that grater

emphasis than never before must be placed on developing and implementing

successful marketing programs to create and foster a customer orientation.

True differentiation of financial products is virtually impossible to achieve

because they are intrinsically the same, offering similar benefits and services

to consumers. The degree of substitutability between brands is

correspondingly very high at the outset (for example, at the supplier or

product selection stage). Once a financial product has been sold, however,

the customer is frequently tied in over a long period and may even face

penalties if they wish to change supplier ( as in the case of fixed rate

mortgages) or if they wish to discontinue the service (terminating endowment

or insurance agreements before the full term has expired for example).

The key objectives for financial services providers are;

Attracting customers in the first place

Let the retaining customers through high levels of client satisfaction

and by providing a portfolio of financial services to meet changing

needs over time.

Some key issues that must be taken into consideration in designing the

most effective financial services marketing mix are as follows:

Product:As mentioned previously, there is little or no room for

innovation in product designing due to the ease by which competitors can

make similar offerings, for example by altering charges or interest rates to

meet those of competitors. Additionally, many financial services are affected

by other restrictions, such as government directives relating to income tax and

investments or constraints on the amounts, which can be invested.

Differentiation, therefore, can best be achieved through the other elements of

the marketing mix. Current accounts are dominated by banks, although the

building societies’ share of the market in which they could not compete until

_____________________________________________________________________

- 29 -

_____________________________________________________________________

recently is growing. They hold the majority of mortgage accounts, however,

but this strong hold is increasingly under pressure from banks.

Price: The price in financial services terms related to the costs involved

to the customer in, say, bank charges or credit card interest rates. These

prices seem to evoke low levels of customer sensitivity as many customers

enjoy ‘free’ banking, by maintaining their current account in credit, for

example, or paying their credit card balances off each month. The introduction

of new charges, however, such as the annual credit card fee had a noticeable

effect initially, however, and sparked off competitive reaction from lenders

prepared to offer cards with no annual charge.

Price also relates to the value of the product to the customer and, as

such, can be highly sensitive. This can be in terms of interest rates charged

on a mortgage, were reductions in interest for first time buyers or preferential

rates for existing customers of other services (for example current account

holders) are standard promotional tools in the industry, representing a form of

discounting. The rates of return offered to investors is another element of the

price and different products within the range are frequently priced at different

rates, to attract long-term savers or large lump sum investors, for example

pricing can therefore be used to differentiate the offering and is likely to be

used by customers selecting a service.

Promotion:Banks, building societies and other major financial

institutions such as insurance companies undertake major advertising

campaigns continuously. The main purpose of the advertising is to strengthen

awareness of the brand and company image and to inform the market about

the services available. The Midland’s ‘listening bank’ campaign and the TSB’s

“yes’ campaigns are successful examples. The trend has also been towards

developing more below-the-line promotional activities using highly

sophisticated databases to target direct mail campaigns at distinct market

segments and using publicity, sponsorship and other promotional means.

_____________________________________________________________________

- 30 -

_____________________________________________________________________

Successful advertising campaigns have contributed to the growth of first

directs’ market share although advertising has been used creatively to attract

interest but not to sell the service. That has been done through personal

selling over the telephone once the initial enquiry has been made and staff

and customer care have been developed to enable a strong personal selling

strategy to work.

Another area where personal selling is a strong tool is in the area of

insurance products and the emergence of ‘bank assurance’ – the product

offered through links between banks and insures, commonly with banks as

the controlling partner. The insurance organization’s expertise in personal

selling and the strong customer loyalty and extensive customer base of the

banks make for synergy in business development. The importance of

personal selling is now widely recognized and many institutions offer home

visits by financial advisers.

Place:Place or location has always been regarded as critical in retail

financial services where high street positions are maintained by most of the

large institutions. For transaction services where regular and frequent branch

contact is required, this can be important. First, direct however, the telephone

banking service has proved that a bank without branches is possible though is

customers still need access to convenient ATM outlets. Some consumers

prefer personal, face-to-face contact within a branch and may be more likely

to use a local branch or building society. Direct line and other telephone

insurance services are also moving away from the traditional large networks

of branches and brokers or agents. Changes in distribution system,

technology and consumer demands are all key influences on the evolution of

the ‘place’ component of the marketing mix.

People:Customer care is at the forefront of both quality and

differentiation in the financial services industry. Staffs need to be highly

_____________________________________________________________________

- 31 -

_____________________________________________________________________

trained not only in customer care but in how to respond to the rapidly

changing market environment. Personal can be used to develop competitive

advantage in the marketplace and to build and maintain relationship with

customers.

Process:This is the main area where technological advances led to

major change. Improvements in the process stem not only from the

automation of many transactions and data handling with organizations but

also from process re-engineering to reduce delays in processing mortgage

applications, for example, or the installation of automated queuing systems to

cut down on waiting time. North West Securities, a finance company

specializing in consumer lending, offer existing and previous customers same-

day acceptance of loan applications and will also arrange for courier delivery

of a personal cheque for the loan amount to the customer’s home if required.

Physical Evidence:The environment in banks is changing, moving

away from austerity and formality to a more friendly approach reflected in

more attractive branch layouts and décor. Other physical evidence plays an

important part in financial transactions such as the documentation, which

must be presented by salespeople to prove that they are authorized to offer

investment advice. This created confidence and helps to build the relationship

between customers and provider. Physical evidence is also widely used to

realize the service. Attractive brochures and policy documents, presented in

glossy folders, cheque book and credit card holders, ‘gold’ credit cards,

children’s collectible’ money boxes are all examples of physical evidence

being used in this way.

1.3.6. CUSTOMER SATISFACTION HIGHLIGHTS

_____________________________________________________________________

- 32 -

_____________________________________________________________________

Today in the customer driven economy, all firms are engaged in a

quick race to attract customers and build a long term relationship with their

loyal customer. The key to customer loyalty is through “Customer

Satisfaction”.

A satisfied customer will act as a spokesperson of the company’s product,

and bring in more buyers. There is also a high correlation between loyalty and

profitability.

There is the Pareto principle or the 80/20 rule; it says that 80% of one thing

comes from 20% of another. That is to say, a small percentage of loyal

customers will lend a large weight to the company’s sales. So marketers have

to ensure customer value satisfaction.

For this they have to ensure:

Relationships are built to offer lifetime customer value to enable the

consumer to experience “Value satisfaction”.

Communications are used to convey the experience that goes on using

a “Value” added product to consumers.

The efforts of the marketers in trying to understand buying motives, organizing

buyer behaviour and suitable promotional strategy to suit the consumer

behaviour are to ensure “CUSTOMER SATISFACTION”.

_____________________________________________________________________

- 33 -

_____________________________________________________________________

1.4. NEED FOR THE STUDY

Sales maximization is the ultimate goal of any organization. To capture

a larger market share and sales volume, the organization is required to

consider its customers. They should analyze their needs, wants, preferences

and intentions. For achieving the goal, the organization should know about

customer’s satisfactions level.

“Assessment of Customer Satisfaction Towards Indian Overseas

Bank” will help to find the desired data in a sequential manner.

Further study after implementation of recommendations, the researcher

can analyze the customer’s needs, wants, demands, etc. It will help the bank

to make changes in their products and services according to customer

preferences. And it can throw more light on the subject and can help to focus

attention on vital areas.

_____________________________________________________________________

- 34 -

_____________________________________________________________________

Chapter -2

Design of the study

2. Introduction

As per the author Philip Kotler, Marketing Research is the systematic design,

collection, analysis and reporting of data and findings relating to a specific

marketing situation facing the company.

To meet this objective, the company should know its customers, their needs,

tastes, preferences & condition of markets etc. This information is provides by

Market Research. In this study, we confine to reach the service rendered by

the bank to satisfy the customers.

Theoretically, whatever we study in management courses can be easily

accumulated and understood only when it is used practically. When

theoretically knowledge is put into practice, the problems, obstacles or the

impediments will come out and suitable marketing strategies can be

implemented to solve it, then their will be a perfection and experience and

clear knowledge about the subject in the mind of the learners. That is why in

every management or career advancement courses, Practical Training like

simulations, case study, project Reporting, working situation are given.

_____________________________________________________________________

- 35 -

_____________________________________________________________________

2.1. STATEMENT OF THE PROBLEM

Research problem is selected for the purpose of this project is to study the

consumer behaviour in relation to their perceptions, attitudes, preference,

expectations, satisfaction, dissatisfaction with reference to the Indian

Overseas Bank, Yeswathpur Branch. This study endeavors to collect the

information on usage pattern preferences, important of various service

attributes etc, from the respondents. As the bank is unaware of Bank’s

customers perceptions & tastes, bank face the problem of lack of information

on the above matter.

The main problem is, sometimes it happens that when they are so engaged

with acquiring new customer they sometimes forget their existing customer

and their services issues. Actually retaining the existing customer is also

having same importance as acquiring new customer.

So, this project is all about the existing customer and their satisfaction

level as far as Indian Overseas Bank is concerned.

2.2. TITLE OF THE STUDY

Assessment of Customer Satisfaction Towards Indian Overseas

Bank Ltd, Magadi Road Branch, Bangalore.

Based on:

a. Performance

b. Features

c. Expectations

d. Satisfactory Attributes

_____________________________________________________________________

- 36 -

_____________________________________________________________________

2.4 OBJECTIVE OF THE STUDY

To study the demographic characteristics of the respondents

To study the level of customer satisfaction of the Indian Over

seas bank.

To recommend suggestions based upon the findings

2.5 SCOPE OF THE STUDY

The scope of the study is confined to Magadi Road Branch. The

customers of this branch are covered for generating new leads. Information

was collected from employees, business people, students, and retired

persons through questionnaire. Study is helpful to know the customers

opinion on Indian Overseas Bank and their services.

2.6. SOURCES OF DATA

For the purpose of this study, data from two sources have been

gathered namely;

Primary Data

Secondary Data

Primary Source: are original source, which are collected directly

from the respondents. This information is collected through questionnaire,

personal interview and through observation.

_____________________________________________________________________

- 37 -

_____________________________________________________________________

Secondary Source: are those that containing data which have

been collected and compiled for another purpose. These sources consist of

readily available information and already complied statistical statement whose

data may be used by the researchers for their study.

The secondary sources include Annual Reports, Journals, Articles as

well as magazines and manuals.

2.7. SAMPLING DESIGN PLAN

Sample unit:

Individual who is the existing customer of Indian Overseas Bank,

Magadi Road Branch, Bangalore.

Sample Technique:

The tool used in this research is structured questionnaire.

Sample size:

Hundred existing customers of Indian Overseas Bank, Magadi Road

Branch considered as sample size.

2.10 TOOLS OF DATA COLLECTION

A carefully planned structured questionnaire was designed to collect data

from the account holders. The following aspects were covered in the

questionnaire: -

I. Information related to customer profile covering all demographic

characteristic.

_____________________________________________________________________

- 38 -

_____________________________________________________________________

a. Details regarding patterns of usage of different account.

b. Information related to type of account.

c. Features of IOB appealing the customers most.

d. Consumer’s expectations.

e. Satisfactory attributes.

f. Suggestions to improve the services of IOB

II. Plan of analysis and expected contribution from the study.

Through scrutiny of the entire questionnaire was done so as to

eliminate questionnaire which either incomplete or contained

contradictory information. Then the questionnaire was numbered in

order.

After that the coding were done either with the first letter of the answer or

with serial number of the questions.

2.11 LIMITATIONS OF STUDY

The limitations of the study are as follows:

The study has to complete within a short span of time that was

available.

The case study pertains to only one branch of the Indian Overseas

Bank due to the limitation of time frame.

Findings are based on the records available at the Indian Overseas

Bank and the information provided by the bank.

It is possible that this study may differ from a similar study carried out

else were.

This study is restricted to customers only.

Sample size is restricted to 100 respondents only.

_____________________________________________________________________

- 39 -

_____________________________________________________________________

2.12 CHAPTER LAYOUT

The chapter layout of this project report is as follows:

First Chapter deals with, Information of the Industry (history,

growth & prospects), Introduction of the Research Topic, Theoretical

Background of Research Topic (Definitions, Importance, Necessity,

etc), and Need for the Study.

The Second Chapter is Research Design. In this, the following

topics were covered. Brief Introduction, Statement of the Problem, Title

of the Study, Objective of the Study, Scope of the Study, Research

Design of the Study, Sources of Data, Methodology of Research

Design, Sampling Design Plan, Tools of Data Collection, Method of

Analysis and Limitations of the Study.

Third Chapter Conclude the Review of Literature. It helps in

identifying gaps in knowledge. It is referred to standard textbooks,

journals, project reports, newspaper, and magazines.

The Fourth Chapter of this report is dealing with the Company

Profile. It includes Features, Vision Statement, Mission Statement,

Performance, Product Profile, Competitors Profile, etc). Fifth Chapter is

Deals with the Profile of Respondents.

The Sixth Chapter is Data Analysis and Interpretation. It

includes Tables, Inferences, Charts, etc.

The Seventh Chapter includes Findings and Conclusion of the

Survey. Finally the Eighth Chapter Conclude the Recommendations

and Suggestions for the Research Topic. The Suggestions for the

future developments has also mentioned in this chapter.

_____________________________________________________________________

- 40 -

_____________________________________________________________________

Chapter -3

COMPANY PROFILE

Indian overseas bank was founded on 10th febraury 1937 by shri

M.CT.M Chidambaram Chettyar, a pioneer in many fields - the bank was

founded by him with the main objective of specializing in foreign exchange

business in banking to take the bank across the globe

IOB had the unique distinction of commencing business on 10th February

1937 – The inaugural day itself in 3 branches simultaneously – at Karaikudi,

Chennai and Rangoon in Burma (presently Myanmar) followed by a branch in

Penang, Malaysia.

_____________________________________________________________________

- 41 -

_____________________________________________________________________

3.1. FEATURES OF INDIAN OVERSEAS

BANK

The following are some of the features and performance of the Indian

Overseas Bank.

1937: Shri.M.Ct.M. Chidambaram Chettiar establishes the Indian Overseas

Bank (IOB) to encourage overseas

banking and foreign exchange

operations. IOB started up

simultaneously at three branches, one

each in Karaikudi, Madras (Chennai)

and Rangoon (Yangon). It then

quickly opened a branch

in Penang and another in Singapore.

The bank served the Nattukottai

Chettiars, who were a mercantile

class that at the time had spread fromChettinad in Tamil Nadu state

to Ceylon (Sri

Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra,

and Saigon. As a result, from the beginning IOB specialized in foreign

exchange and overseas banking (see below).

1960s: The banking sector in India was consolidating by the merger of

weak private sector banks with the stronger ones; IOB absorbed five

banks, including Kulitali Bank (est. 1933).

1969: The Government of India nationalized IOB. At one point, probably

before nationalization, IOB had twenty of its eighty branches located

overseas. After nationalization it, like all the nationalized banks, turned

inward, emphasizing the opening of branches in rural India.

1988-89: IOB acquired Bank of Tamil Nadu in a rescue.

_____________________________________________________________________

- 42 -

_____________________________________________________________________

2000: IOB engaged in an initial public offering (IPO) that brought the

government's share in the bank's equity down to 75%.

2009: IOB took over Shree Suvarna Sahakari Bank, which was founded in

1969 and had its head office in Pune. In 2001 it had acquired the Mumbai-

based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai.

Shree Suvarna Sahakari Bank has been in administration since 2006. It

has nine branches in Pune, two in Mumbai and one in Shirpur. The total

employee strength is estimated to be little over 100.

2007: IOB took over Bharat Overseas Bank.

2009: IOB took over assets and liabilities of Shree Suvarna Sahakari

Bank.

2010: Malaysia awarded a commercial banking license to a locally

incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas

Bank and Andhra Bank. The new bank, India International Bank

(Malaysia), will reside in Kuala Lumpur, which has a large population of

Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of

Baroda will own 40% and IOB the remaining 35%.

_____________________________________________________________________

- 43 -

_____________________________________________________________________

3.2. IMPORTANT MILESTONE

During the year 2009-10,the bank has taken all efforts to implement the

official language Policy of Govt of india. During the year, 248 staff members,

who did not possess working knowledge of hindi, were trained in IOB Praveen

and banking Pragya courses. 2809 staff members, possessing working

knowledge of Hindi were trained in general hindi workshops held during the

year. Rajbhasha Sangoshi was held on September 12, 2009 for heads of

central office departments to strengthen the official language implementation

in central office.

Minutes of meeting of all board level committees were translated in Hindi. As

per the directives of Govt of India, the bank has enabled Hindi Unicode font in

all regional offices and has provided the facility of Hindi font shusha on IOB

ONLINE for downloading purpose in branches. Bank has also provided the

banking terminology on IOB ONLINE for the benefit of staff members. Bank

has given necessary training to 2445 staff members for the use of Hindi in

computers. Bank has published all the four issues of quarterly Hindi magazine

“VANI” in print as well as in digital form. Bank’s website has been made

available in Hindi also.

_____________________________________________________________________

- 44 -

_____________________________________________________________________

3.3. ORGANIZATION CHART

_____________________________________________________________________

- 45 -

BOARD OF DIRECTORS

CHAIRMAN

EXECUTIVE DIRECTOR

GM (ADMINISTRATION) CHIEF GEN.MANAGER

DY.GM

(MKTG)

DY.GM(P&D)

DY.GM(CFM)

DY.GM(CR.RECOVERY)

DY.GM(CR.ADMN)

_____________________________________________________________________

3.4.PERFORMANCE OF THE BANK

Bank has posted encouraging results during the year 2009-10,

against many odds faced by the banks especially in the context of continued

macro economic stresses.

The bank has performed reasonably well, both in terms of qualitative

improvements in business levels, including improved credit recovery process

and better internal controls and systems and quantitative growth in the

network and customer base. Further, a number of initiatives aimed at

facilitating customer convenience have also been undertaken. To meet the

growing demands from the customers and increasing challenges in the

market, the technological capability was improved substantially by the

implementation of the prestigious Sakthi project; the objective of the bank is to

train women to improve their vocational skills thereby empowering them

socially and financially.

_____________________________________________________________________

- 46 -

_____________________________________________________________________

3.5. THE HIGHLIGHTS OF THE BANK’S

PERFORMANCE

Table: - 4.1

KYE PARAMATERS RS. IN CRORES

March 2010 Sept 2010

Global Deposits 1,10,795 1,18.142

Domestic Deposits 1,05,434 1,13,704

Global Advances 80,782 88,072

Domestic Advances 73,026 79,255

Priority Sector Advances 27,237 27,850

Agricultural Credit 12,597 13,245

S M E 11,660 11,901

Gross NPA 3,611 3,326

Net NPA 1,995 1,765

Gross Profit 1,844.62 1,079.57

Net Profit 706.96 406.59

Business per Employee 7.12 7.81

Branches in India (Nos.) 2002 2013

Branches Abroad (Nos.) 6 6

Capital Adequecy Ratio (%) (Basel 1) 14.25 12.55

Capital Adequecy Ratio (%) (Basel 2) 14.78 13.16

_____________________________________________________________________

- 47 -

_____________________________________________________________________

SHARE CAPITAL

The bank made a successful debut in raising capital from the public

during financial year 2000-01 despite a subdued capital market. The issue

opened on September 25 2000 for raising Rs 111.20 Crores and was

oversubscribed by 1.87 times. The issue closed on September 29 2000- the

earliest closing date and allotment was made in October 2000. The bank had

approached the public for second time in September 2003 to raise share

capital with a premium of Rs14/share aggregating to Rs 240Crores. The issue

was successful with over subscription of 6.14times. consequent to public

issue, the share of the Govt in banks capital came down to 61.25% the shares

of the bank have been listed in the madras stock exchange(regional), stock

exchange at Mumbai and at national stock exchange of India ltd.

CAPITAL ADEQUACY

Capital adequacy ratio of the bank improved from Rs 13.20% as at the

end of the march 2009 to 14.78% as at the end of march 2010 as per the

BASEL IT norms.

BRANCH NETWORK

The bank opened 65

new branches and upgraded

20 extension counters into full

fledged branches in the year ended march 2010. Total domestic branch

_____________________________________________________________________

- 48 -

_____________________________________________________________________

network reached 2002 as at the end of the year with 589 rural branches

(29.4%) 520 semi urban branches (26%) 492 urban branches (24.6%) and

401 metropolitan branches (20%)

DIVIDEND

The bank has paid a maiden dividend of

10%p.a for 2000-01, followed by 12% dividend

for 2001-02 & 16% for 2002-03 , 20% during

2003-04, 24% during 2004-05, 26% during

2005-2006, 30% during 200-07, 35% during 2007-2008 & now proposed 45%

2008-09.

DEPOSITS

The banks global deposits stood at

Rs.1,00,116 Crores & global net advances

at Rs.75810 Crores.

ADVANCES

Gross advances stood at Rs.80782 Crores for the year 2009-10 as

against Rs. 75810 Crores for the year 2008-09.

INVESTMENTS

Net investment of the bank increased to Rs 37651

Crores from Rs 32215 Crores in 2008-09.

_____________________________________________________________________

- 49 -

_____________________________________________________________________

RISK MANAGEMENT

The bank has adopted the new capital adequacy framework with effect

from March 31, 2008. In line with RBI’s instructions to all commercial banks,

the bank is adopting standardized approach (SA) for computation of credit risk

capital, basic indicator approach (BIA) for calculating the capital for

operational risk and standardized duration approach (SDA) for computing

capital requirement for market risks. The bank is in compliance with the

regulatory requirement in this regard.

_____________________________________________________________________

- 50 -

_____________________________________________________________________

NEW BUSINESS ACTIVITIES

IOB- SAMPOORNA PROJECT- the bank launched an innovative rural

development project aiming at total village development called IOB-

SAMPOORNA in Kothambakkam and Paddur villages in Tiruvallur district,

Kameswaram in Nagapattinam district, Dhaliyur village in Coimbatore district

and Innambur in Tanjavur district of Tamil Nadu. It encompasses several

livelihood initiatives in the villages to ensure all inclusive growth of rural

population.

The project comprises both credit and non credit components such as

financial inclusion, IT enabled banking operations with bio metric smart cards

under business correspondent model, tree planting and social forestry,

cleaning water bodies, health care, skilled training for youth in computer and

BPO , rural business process out sourcing, promotion of non conventional

energy and rural tourism.

INTERNAL TRAINING

The internal training system comprises of a staff college, 9 staff training

centers and one rural banking training centre. Internal training was imparted

to 15613 staff comprising of 8548 officers, 5915 clerical and 1150 sub-staff by

conducting 995 programmes. Of the total staff trained 3205 belonged to SC

and 1104 belonged to ST.

_____________________________________________________________________

- 51 -

_____________________________________________________________________

3.6. PRODUCT PROFILE

LOANS AND ADVANCES:

Shubha Gruha (Acquisition/Construction Of a Flat Or House)

Home Improvement Scheme (Repairs/Renovation Of House/Flat)

Home Décor Scheme (To Furnish The House)

Home Loan to NRI (Purchase Or Construction)

Sanjeevini (To Set Up New Hospital/Nursing Home)

IOB - Akshay (Loan Against LIC Policy)

Pushpaka (Vehicle Loan)

Vidya Jyothi Educational Loan Scheme

Easy Trade Finance (Working Capital Finance)

Liquirent (Loan against future rent receivables)

Clean Loan (Personal Loan)

Pensioners Loan Scheme (Pensioners Emergency Needs)

Sahayika (Personal Loan)

Commercial Cash Credit Against Jewellery (Cash For Jewellery)

Home Loans For Relatives Of NRI

DEPOSIT SCHEMES:

Savings Bank Accounts

Current Accounts

Fixed Deposits

Fast Cash Deposits

Recurring Deposits

_____________________________________________________________________

- 52 -

_____________________________________________________________________

COMPETITORS OF INDIAN OVERSEAS BANK

Canara Bank

Corporation Bank

Syndicate Bank

ICICI Bank

HDFC Bank

City Bank

SBI

HSBC

Vijaya Bank

Karnataka Bank

Punjab National Bank

Standard Chartered Bank

UCO Bank

South Indian Bank

ING Vysya

Bank of Baroda

Andhra Bank

UTI Bank

Dena Bank

Bank of Muscat

Global Trust Bank

Co-operative Banks etc.

_____________________________________________________________________

- 53 -

_____________________________________________________________________

Chapter -4

Analysis and Interpretation of Data

In this report, a survey is conducted to know the customer satisfaction

towards Indian Overseas Bank. The study is based upon a particular branch

and its customers.

For the purpose of this survey, questionnaire was prepared and their

feedback had to be obtained; hence, customers were contacted at Indian

Overseas Bank itself and also at their work place as well. There were male

respondents more then female respondents. 100% of respondents are

educated, most of them are graduates, and they were employed. Most of the

respondents choose to transact in Indian Overseas Bank because of its

convenience and they had good relations with the employees. 60-70% of the

respondents are transacting in the bank above 2 years. Every respondent

insisted that they need quality of service from the bank and their suggestions

were also considered in this report.

_____________________________________________________________________

- 54 -

_____________________________________________________________________

Objective 1: Demographic Characteristics

Table 4.1: No of Respondents According to age.

Age No. Of Respondents Percentage

18-25 years 20 20%

26-35 years 40 40%

36-45 years 28 28%

46 and above 12 12%

Total 100 100%

The above table inferred that the bank has a maximum customers aging

between 26-35 years and 36-45 years which is very good for the bank, simply

because these are the people who are earning a lot and who will have

frequent transactions in the bank.

It has also got customers ageing between 18-25 years. Hence, it can be

analyzed that the bank has customers proportionately spread out with the

group 18-46 years.

_____________________________________________________________________

- 55 -

_____________________________________________________________________

No. Of Respondents According to Age

10%

20%

14%6%

50%

No. Of Respondents 18-25 years 26-35 years 36-45 years 46 and above Total

Figure 4.1: The Chart showing that the Bank has 20% of customers between 18-25 years. 40% are 26-35 years of age and 28% of ranges between 36-45 and 12% in the age of 46 and above.

Table 4.2: No of Respondents According to Gender._____________________________________________________________________

- 56 -

_____________________________________________________________________

Gender No. Of Respondents Percentage

Male 75 75%

Female 25 25%

Total 100 100%

The bank has a maximum of 75% Male customers.

No of Male customer 75%

No of Female customer 25%

It can be inferred that the behaviour in expectation of service also changes

according to nature of sex.

Hence behaviour of the Male customers is considered much in this

survey but due consideration are given to the female customer as well in

respect of their views, suggestions for their satisfaction also.

No. Of Respondent According to Gender_____________________________________________________________________

- 57 -

_____________________________________________________________________

No. Of Respondents

Male Female Total

Figure 4.2: The pie chart showing that the bank has got 75% of Male and 25% of Female respondents.

Table 4.3: No of Respondents According to Occupation.

_____________________________________________________________________

- 58 -

_____________________________________________________________________

Occupation No. Of Respondents Percentage

Student 15 15%

Salaried 35 35%

Retired 05 5%

Self-employed 10 10%

Business 35 35%

Others 0 0%

Total 100 100%

The customers in Indian Overseas Bank according to occupation are more or

less either self employed, business, or salaried. Students and retired persons

are very less.

Hence, what ever the feedback is given by customers in this survey is

authentic because the customers maximum are well educated and well

employed.

No. Of Respondents According to Occupation

_____________________________________________________________________

- 59 -

_____________________________________________________________________

Student8%

Salaried18%

Re-tired3%

Self-employed

5%

Business18%

Total50%

No. Of Respondents

Figure 4.3: The Chart showing that the Bank has maximum of salaried, Business, and Self-employed customers ranging between 35%, 35%, and 15% respectively. Students and Retired people are 10% and 5%.

Table 4.4: No of Respondents According to Monthly Income.

_____________________________________________________________________

- 60 -

_____________________________________________________________________

Monthly Income No. Of Respondents Percentage

Below Rs.5000 12 12%

Rs.5001-10000 29 29%

Rs.10001-15000 26 26%

Rs.15001-20000 18 18%

Rs.20001 & Above 15 15%

Total 100 100%

Indian Overseas Bank has majority of customer’s monthly income ranging

from Rs.5001-10000. And a part of customer’s earnings is more than

Rs.20001. It is clear that the customer of the bank is having good earnings.

Hence, the customers have routine transactions in the Bank, where

they have to interact with the employees more often.

No. Of Respondents According to Monthly

Income

_____________________________________________________________________

- 61 -

_____________________________________________________________________

No. Of Respondents

Below Rs.5000 Rs.5001-10000 Rs.10001-15000 Rs.15001-20000 Rs.20001 & Above Total

Figure 4.4: The Chart shows that the customers’ monthly income ranges between Rs.5001-20001 and above i.e., 29%, 26%, 18%, 15%. There are very few customers whose earnings are below 5000.

_____________________________________________________________________

- 62 -

_____________________________________________________________________

Objective 2 : Level of customer satisfaction

For the analysis and interpretation 100 customers data were collected in the

overall study. The data showing in the following tables is based upon this

information.

Table 4.5: Showing Respondents responding to type of A/c

They have in IOB.

Type of A/C No. Of Respondents Percentage

SB 52 52%

FD 24 24%

CD 14 14%

RD 10 10%

Total 100 100%

From the table it can be inferred that, Indian Overseas Bank has a maximum

number of customers with SB A/C. Compare to SB A/C other accounts are

very less.

_____________________________________________________________________

- 63 -

_____________________________________________________________________

No. Of Respondents According to their Type

of Account

SB26%

FD12%

CD7%

RD5%

Total50%

No. Of Respondents

Figure 4.5: The Chart showing that maximum of 52% of the customers in Indian Overseas Bank have S.B. account and 24% have Fixed account. The bank is also having the customers as 14% in Current Deposits and 10% in Recurring Deposits.

_____________________________________________________________________

- 64 -

_____________________________________________________________________

Table 4.6: Showing most appealing features of IOB.

6.2 [1] Prompt Service:-

Particulars No. Of Respondents Percentage

Excellent 15 15.79%

Good 45 47.37%

Average 30 31.58%

Below Average 5 5.26%

Total 95 100%

The performance weightage clearly indicate the image of IOB in its

customers. The data shows that 45 respondents have weighted the prompt

service of IOB in the good category, while 30 respondents have weighted it as

average. A sample of 15% respondents has graded IOB in category of

Excellent.

But five of the respondents are not even given any suggestions.

_____________________________________________________________________

- 65 -

_____________________________________________________________________

Customers Satisfaction in Prompt Service

15

45

30

5

Excellent

Good

Average

Below average

Figure 4.6: The chart shows that 15 customers rated as excellent and good, average & below average are as 45, 30, and 5.

_____________________________________________________________________

- 66 -

_____________________________________________________________________

4.7. Convenience:

Particulars No. Of Respondents Percentage

Excellent 30 30%

Good 20 20%

Average 50 50%

Below Average 0 0%

Total 100 100%

It can be inferred that, the respondent’s convenience is in a good position.

Fifty percentages of the customers are convenient with the banks services.

_____________________________________________________________________

- 67 -

_____________________________________________________________________

Customers Satisfaction in Convenience

Excellent15%

Good10%

Average25%

Total50%

No. Of Respondents

Figure 4.7: The chart shows that 30 customers rated as excellent, 20 as good and 50 as below average.

_____________________________________________________________________

- 68 -

_____________________________________________________________________

4.8.Timings:-

Particulars No. Of Respondents Percentage

Excellent 46 46%

Good 32 32%

Average 22 22%

Below Average 0 0%

Total 100 100%

The above data inferred that a majority of the customers are satisfied with the

banking hours. A lesser part is not fully satisfied with the timings. But, overall,

classification highlights that working hours of the bank are not below average.

_____________________________________________________________________

- 69 -

_____________________________________________________________________

Customers Satisfaction in Banking Hours

46

32

22

Excellent

Good

Average

Below average

Figure 4.8: The chart shows that 46 of customers graded as excellent, 32 respondents as good and 22 as average.

_____________________________________________________________________

- 70 -

_____________________________________________________________________

Table 4.9. Showing Performance of Bank’s Staff.

4.9. Job Knowledge:-

Particulars No. Of Respondents Percentage

Excellent 24 24%

Good 60 60%

Average 16 16%

Below Average 0 0%

Total 100 100%

A customer who comes to the bank is having a good opinion on the job

knowledge of the bank staff. Most of the respondents are satisfied with the job

knowledge of the bank’s staff.

Job Knowledge of Bank’s Staff

_____________________________________________________________________

- 71 -

_____________________________________________________________________

No. Of Respondents

Excellent Good Average Below Average Total

Figure 4.9.The pie chart shows that 60 respondents opinion is good. 24% rated as excellent, and 16 respondents rated as good.

4.10.Behaviour of Staff Over the Counter:-

_____________________________________________________________________

- 72 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

Excellent 38 38%

Good 42 42%

Average 20 20%

Below Average 0 0%

Total 100 100%

From the above data it can be inferred that the behaviour of staff over the

counter is in a good manner. Form this it is clear that the staff’s of the bank

are very co-operative with the customers.

Hence, most of the respondents are satisfied with the behaviour of the

staff.

Behaviour of Staff Over the Counter

_____________________________________________________________________

- 73 -

_____________________________________________________________________

19%

21%

10%

50%

No. Of Respondents Excellent Good Average Below Average Total

Figure 4.10: The chart shows that 38 customers response is excellent, 42 of them rated as good and 20 as average.

Table 4.11: Showing Respondents Opinion on Service Charges.

_____________________________________________________________________

- 74 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

High 13 13%

Average 42 42%

Low 25 25%

Can’t say 20 20%

Total 100 100%

What ever the service charge the bank charging, is not in a high or in a low

rate. So, the bank is implementing a service charge in an average rate.

Respondents opinion on service charges

_____________________________________________________________________

- 75 -

_____________________________________________________________________

High7%

Average21%

Low13%

Can’t say10%

Total50%

No. Of Respondents

Figure 4.11. The above figure shows that 13 respondents rated as high & 42 respondents as average. 25 customers says that there is a low service charge and 20 customers graded as cant’ say.

Table 4.12. Showing Respondents Expectations with IOB.

_____________________________________________________________________

- 76 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

E-Banking 10 10%

Human Communication 02 2%

Better Services 18 18%

Long Working Hours 12 12%

More Branches 11 11%

Higher Interest 10 10%

Wider ATM’s 37 37%

Others 0 0%

Total 100 100%

The tabulated data reveals that most of the customers are expecting more

ATM counters and more branches. Some customers need higher interest,

better services and long working hours.

Respondents Expectations with IOB

_____________________________________________________________________

- 77 -

_____________________________________________________________________

10%2%

18%

12%

11%10%

37%

E-Banking Human Communication Better Services

Long Working Hours More Branches Higher Interest

Wider ATM's Others

Figure 4.12. From the above chart 37% of the customers feels wider ATM’s

is necessary. 18 respondents expecting better services. 11% of

the customer’s expectations are in more branches for their

better convenience. E Banking and Higher Interest is expected

by 10% of respondents in each.

Table 4.13. Showing Respondents Level of Satisfaction with

IOB.

_____________________________________________________________________

- 78 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

Highly Satisfied 12 13.33%

Satisfied 62 68.89%

Neither Satisfied

Nor Dissatisfied 16 17.78%

Dissatisfied 0 0%

Highly Dissatisfied 0 0%

Total 90 100%

It is clear from the above table that the dissatisfaction is very less among the

customers, and only very few customers rated as neither satisfied nor

dissatisfied. And there are few customers who are highly satisfied with the

service provided by the IOB. Some of the respondents are not mentioned any

of their opinions.

Respondents Level of Satisfaction with IOB

_____________________________________________________________________

- 79 -

_____________________________________________________________________

7%

34%

9%

50%

No. Of Respondents Highly Satisfied Satisfied Neither Satisfied Nor Dissatisfied Dissatisfied Highly Dissatisfied Total

Figure 4.13. From the figure it is clear that 13.33% of the customers are

highly satisfied with the bank. 68.89% of the customers

also rated as satisfied. 17.78% response is neither

satisfied nor dissatisfied.

Table 4.14 Showing Satisfactory Attributes According to

Respondents Preference.

_____________________________________________________________________

- 80 -

_____________________________________________________________________

The satisfaction analysis is the major part of this study. The satisfaction

of the customer can be analyzed through various indicators.

4.15. Wide Network ATM’s:-

Particulars No. Of Respondents Percentage

High 0 0%

Average 20 20%

Low 80 80%

Total 100 100%

From the table, it can be inferred that respondents satisfaction in ATM

counters are very less. Here most of the customers are rated as low. So, it

reveals that customers are expecting more ATM counters for their proper

convenience.

Satisfaction Among Wider ATM’s

_____________________________________________________________________

- 81 -

_____________________________________________________________________

20%

80%

High

Average

Low

Figure 4.15. The above figure shows that 80% of respondents rated as low because there is very less number of ATM Counters.

4.16. Branches:-

_____________________________________________________________________

- 82 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

High 0 0%

Average 60 60%

Low 40 40%

Total 100 100%

From the tabulated data, it can be inferred that the number of IOB branches is

either average or below average as 60% of the respondents rated it as

average while another 40% where not satisfied with the number of branches.

Satisfaction Among Branches

_____________________________________________________________________

- 83 -

_____________________________________________________________________

30%

20%

50%

30%

20%

50%

Chart Title High Average Low Total

Figure 4.16. The above figure shows that 60% of respondents rated as average and 40% as low.

4.17. Services:-

_____________________________________________________________________

- 84 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

High 12 12%

Average 64 64%

Low 24 24%

Total 100 100%

From the above data it is inferred that most of the respondents are satisfied

with the services provided by the bank. Hence, the bank is having a good

service structure.

Satisfaction in Bank’s Services

_____________________________________________________________________

- 85 -

_____________________________________________________________________

6%

32%

12%

50%

No. Of Respondents High Average Low Total

Figure 4.17. The pie chart shows that 12% rated as high, 64% as average and 24% as low.

4.18. Return on Investment:-

_____________________________________________________________________

- 86 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

High 0 0%

Average 60 65.22%

Low 32 37.78%

Total 92 100%

The above data shows that average customers are satisfied with the return on

investment. Some of the customers are expecting more return, form their

deposits. Hence, the data reveals that, whatever the return on investment

providing the bank, it has to improve.

Customer Satisfaction in Return on

Investment

_____________________________________________________________________

- 87 -

_____________________________________________________________________

33%

17%

50%

No. Of Respondents High Average Low Total

Figure 4.18. The pie chart shows that 68% rated as average and 32% rated

as low return on investment.

4.19. Technological Adoption:-

_____________________________________________________________________

- 88 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

High 37 37%

Average 55 55%

Low 08 08%

Total 100 100%

From this Data, it is inferred that the technological adoption of the bank is

good. It is clear that the bank is adopting the new technological skills in their

services. Most of the customers are satisfied with the technological adoption

of the bank.

So, the Bank is having a very good technological adoption in their operations.

Technological Adoption of Bank

_____________________________________________________________________

- 89 -

_____________________________________________________________________

19%

28%

4%

50%

19%

28%

4%

50%

Chart Title High Average Low Total

Figure 4.19. The figure Shows that 37% of the respondents rated as high,

55% as average and 8% as low technological adoption.

4.20. Wide Product Profile:-

_____________________________________________________________________

- 90 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

High 16 16%

Average 64 64%

Low 20 20%

Total 100 100%

The customers are satisfied with the product profile of the Bank. Bank is

having a wider product profile. Hence, the percentage of dissatisfaction

with the bank’s products is very low.

Product Profile

_____________________________________________________________________

- 91 -

_____________________________________________________________________

8%

32%

10%

50%

No. Of Respondents High Average Low Total

Figure 4.20. The pie chart shows that 16% of the respondents graded as

high, 64% of them as average and 20% of the

respondents rated as low product profile.

Table 4.21. Showing Respondents opinion about the statement,

“Indian Overseas Bank Provides Better Service then Other

Bank’s”.

_____________________________________________________________________

- 92 -

_____________________________________________________________________

Particulars No. Of Respondents Percentage

Strongly Agree 0 0%

Agree 27 27%

Neither Agree

Nor Disagree 65 65%

Disagree 8 8%

Strongly Disagree 0 0%

Total 100 100%

From the above figure we can see that there are only few customers’

who agree with the statement. It shows that most of the customers do not

have very good opinion about the bank, but 65% of the customers say that

they neither agree nor disagree with the statement, that means they are

satisfied but any point of time these customers can change if they face any

problem with the bank. Disagree percentage is in a lower level, so we can say

that they are performing well because they have only very less disagree.

“Indian Overseas Bank Provides Better

Services than Other Banks”

_____________________________________________________________________

- 93 -

_____________________________________________________________________

14%

33%

4%

50%

No. Of Respondents Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree Total

Figure 4.21. The above chart shows that 22% of the customers agree

with the statement. At the same time 65%, neither

agrees nor disagrees. And 13% disagree with the

statement.

Chapter -5

Summary of findings and suggestions

5.1. Introduction

Research problem is selected for the purpose of this project is to study the

consumer behaviour in relation to their perceptions, attitudes, preference,

_____________________________________________________________________

- 94 -

_____________________________________________________________________

expectations, satisfaction, dissatisfaction with reference to the Indian

Overseas Bank, Yeswathpur Branch. This study endeavors to collect the

information on usage pattern preferences, important of various service

attributes etc, from the respondents. As the bank is unaware of Bank’s

customers perceptions & tastes, bank face the problem of lack of information

on the above matter.

The main problem is, sometimes it happens that when they are so engaged

with acquiring new customer they sometimes forget their existing customer

and their services issues. Actually retaining the existing customer is also

having same importance as acquiring new customer.

So, this project is all about the existing customer and their satisfaction

level as far as Indian Overseas Bank is concerned.

5.2. summary of the FINDINGS

Most customers in the bank are Male, Female customers are very less.

Most of the respondents are well educated.

29% of the customers monthly income is in between Rs.50001 to

Rs.10000/- and 26% of the customer’s monthly income is in between

_____________________________________________________________________

- 95 -

_____________________________________________________________________

Rs.10001 to Rs.15000. 15% of the respondent’s earnings more than

Rs.20001.

A large number of customers in Indian Overseas Bank are having SB

A/C.

It is found that 15% of the customers satisfied with the Prompt Service

of the bank. 30% is not fully satisfied.

From the study is clear that 50% of the respondents are convenient

with banking.

Around 75% of the respondents are satisfied with the banking hours.

Job knowledge of the bank’s staff is excellent.

Behaviour of staff over the counter is good.

Service charges of the bank are in an average position.

60% of the customers are satisfied with Indian Overseas Bank.

80% of the respondents are expecting more ATM counters.

It is found in this survey that, 60% of respondents expecting more

branches.

75% of the response is good in the technological adoption of the bank.

More than 70% of customers are satisfied with the wider product profile

of the bank.

In this survey 27% of the respondents are agree with the following

statement “Indian Overseas Bank Provides Better Services than Other

Banks”

CONCLUSION

A customer is an important visitor on the premises of any organization.

A regular feed back regarding his/her needs, wants, preferences and

intentions help the organization in functioning more effectively.

_____________________________________________________________________

- 96 -

_____________________________________________________________________

When consumer satisfaction is improved it spreads satisfaction to the

employees, supervisors, manager and the bank. It even helps society

and the nation through better utilization of the resources of the bank.

The suggestions given in the study will help the organization to improve

functioning and achieve success in the future years of investments. By

implementing the suggestions given, the bank not only satisfies the

customers but it can also delight them, which is very important for the

growth of business of the bank.

Many learned authors have played every important role in consumer

behaviour techniques. Every bank or organization has to select the

right techniques suitable for the organization so as to give full

satisfaction to the customers.

I am thankful to the Indian Overseas Bank for giving me the opportunity

to complete this project in their bank, which was a learning experience

for me.

5.4. SUGGESTIONS

ATM Counters: Indian Overseas Bank should have to provide a large

number of ATM’s. So that the customers’ can fully utilize the service,

especially the customers’ that cannot turn up to the bank in it’s working

hours.

_____________________________________________________________________

- 97 -

_____________________________________________________________________

Branches: The bank should try to open more branches in and around

Bangalore, so that the customers can make use of that according to

their convenience.

Customer Research Study: The bank can do a customer research

study, yearly or half yearly to get more information about the customers

likes, dislikes and can change the Bank’s attitudes and policies to

provide satisfaction to the customer.

Advertisement: Indian Overseas Bank customers are unaware of its

loan schemes, interest rates, credit schemes, simply because the bank

lacks publicity, so it requires more advertisement.

a) Advertisement can made through print media and T.V.

b) A package of bank’s latest interest rates, loan schemes, credit card

schemes and its future offerings can be shown, where the customer

will be aware of Indian Overseas Bank’s offerings and by which the

bank can also attract more customers.

Training Schemes for Employees: The bank should implement a

well-designed training scheme for employees which focuses on

interpersonal communication team work innovation, leadership,

customer orientation, soft skills, etc, which helps in dealing with

customers that in turn will help both the customers and also the bank to

improve its business.

Electronic Display Board: An electronic display board can be kept in

the reception, in which continuous display of interest rates, loan

schemes, credit card schemes, financial assistance to women, and

different types of A/C can be shown.

_____________________________________________________________________

- 98 -

_____________________________________________________________________

Special Offers: They should provide some special offers to their old

customers who have been with them for more than a particular period,

which can help to increase the satisfaction level.

New Packages: The bank should provide some unique package to

attract the new customer. A package of banks latest interest rates,

Loan Schemes, Credit cards schemes and its future offerings can be

shown, where the customer will be aware of Indian Overseas Bank’s

offerings and by which the bank can also attract more customers.

Internet Banking: Indian Overseas Bank should provide the Internet

Banking Facility for its customer’s. The uses of Internet Banking Facility

for its customers are as follows:

Customer can check his or her account balance and information

about uncleared funds, ledger balance, overdraft and sweep-in

amount.

Customer can also view his/her transactions for a specific period

and request for his/her statement via mail.

Through a new FD Request, Customers can open a Fixed

Deposit Account.

Customers can make a FD Inquiry on his/her Fixed Deposit.

Customers can use this facility to communicate with the bank for

clarifications and feedback.

Customers can Request for a stop payment of a cheque online

by just entering the cheque number.

Customers can request a DD or BC without coming to the bank

and have it couriered to them at their mailing address.

Customer can register for bill pay and enjoy the ease and

convenience of paying his or her electricity, telephone and

mobile phone bills online.

_____________________________________________________________________

- 99 -

_____________________________________________________________________

Customers can request for a new cheque book through online,

which will be couriered to them at their mailing address.

_____________________________________________________________________

- 100 -