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Customer satisfaction in public sector bank (A study of South Rajasthan)

Article  in  "Imperial Journal of Interdisciplinary Research (IJIR) · March 2016

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in
Customer Satisfaction in Public Sector
Bank (A Study of South Rajasthan)
Dr. Trapti Pandya1, Dr. Neeti Mathur2 & Mr. Himanshu Mathur3
1
Research Scholar, Department of Banking and Financial Management Shramjeevi College ,
J.R.N.V. University, Udaipur
2
Assistant Professor, Department of Accounting and Finance)
Adamas University, Barasat, Kolkata 700126
3
Fund Administrator, HSBC Global Resourcing, Kolkata 700091
Abstract: Customer’s satisfaction is essential and
which every organizations should focus on. In any
business that does not succeed in satisfying its
customers, there is very high tendency that the
customers may not patronize the business again.
Satisfied customers are likely to be loyal and
continue patronizing than dissatisfied customers. If
companies have loyal customers, they do not have to
spend too much money in acquiring new customers,
because the satisfied customers tend to advertise
through the word of mouth.
In a win-win situation, business focuses on profit and
happy customers and customers try to satisfy their
needs. The purpose of this research article is to
examine the customer satisfaction among group of
customer of SBBJ in Rajasthan. The scope of the
study is confined to State Bank of Bikaner and
Jaipur, in the branches of the bank in South
Rajasthan, which covers customers of the bank.
Simple random sampling technique is used to collect
data with the help of questionnaire. A total of 70
samples were collected from customers of SBBJ bank
of Rajasthan. Data analysis was done by using
Coefficient of Correlation and it was found that there
is significant correlation between HRM and HRD
practices and Customer Satisfaction.
KEY WORDS: banking, customer satisfaction,
customer service, service quality.
1. Introduction:
Customer’s satisfaction is essential and which
organizations should focus on, in any business that
does not succeed in satisfying its customers, there is
very high tendency that the customers may not
patronize the business again, satisfied customers are
likely to be loyal and continue patronizing than
dissatisfied customers. If companies have loyal
customers, they do not have to spend too much
money for new customers, because the satisfied
Imperial Journal of Interdisciplinary Research (IJIR)
customers tend to advertise through the word of
mouth.
All business is build based on relationships,
understanding customer relationship management
has become a necessity for understanding how to
manage businesses in the service competition, When
building customer relationship or loyalty it is
important to have customer satisfaction Therefore, in
order to build customer loyalty or relationships,
businesses have to work hard on customer
satisfaction.
Customer satisfaction can be associated
with the feelings of acceptance, excitement,
happiness, relief and delight (Hoyer, Maclnnis,
2001).
2. Importance of customer’s satisfaction
To be successful in business, organizations have to
satisfy the needs and wants of the customers. The
importance of customer satisfaction, loyalty and
retention has always been emphasized by many
researchers. The importance of customer satisfaction
has a positive effect on organization`s profitability.
There is an important connection between customer
satisfaction, loyalty and retention. Therefore they are
all very important for an organization to be
successful.
3. Factors affecting customer satisfaction
are:
1. A friendly and comforting atmosphere is a must so
that customer can easily put his point and can get
solution of any query, or problem related to the bank.
2. Polite and humble behavior of employees, towards
the complaints and queries of customers will build up
trust and satisfaction of customers for the bank.
3. An employee must have in depth knowledge of all
the products and services provided by the bank and
Page 550
Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in
should be well trained through HRD programs so
that they can resolve the quires of the customers
satisfactorily and can present themselves effectively
through their working and communication skills to
impress the customers.
4. As it is said, time is money so it is necessary that
customers are served timely.
5. If the bank gives good returns on funds and better
interest on deposits to its customers in comparison to
other banks
6. Implementation of HRM and HRD practices tries
to satisfy the employees regarding all the aspect of
their job.
7. If bank employees will be helpful and they will
help the customers whenever they need, then the
customers will feel satisfied on getting associated
with the bank
8. Bank keeps complete safety of funds of their
customers which enhances the goodwill of the bank
by which more and more of person become account
holders in the bank. This increases the business,
deposits, profits, advances etc. of the bank.
9. Good infrastructure facility facilitates customer
satisfaction.
4. Customer relationship management
Customer Relationship Management (CRM) is about
building a strong relationship between two parties.
Not only the classical relationship that exist between
consumers and suppliers, a company can build a
relationships with its customers, dissatisfied
customers’, employees, suppliers, distributors,
competitors or intermediaries. It is of paramount
important for companies to have a relationship
because it cost more than six times more to attain
new customers than to retain existing ones and it is
related to profitability.
5. Measuring customer satisfaction:
Customer feedback is vital to a business. Through
feedback, a company learns how satisfied its
customers are with its products and services and
sometimes about the competitor's products and
services.
Measure of customer satisfaction allows a business
to:
a) Discover customer satisfaction of how well the
business is performing in meeting customer needs.
Imperial Journal of Interdisciplinary Research (IJIR)
b) Compare the company's performance relative to
competitors.
c) Discover areas for improvement, both in the
design and delivery of products and services.
d) Track trends to determine if changes actually
result in improvement.
6. Literature review
Dr. Naveen Kumar and Dr. V.K. Gangal (July 2013)
in their paper the economic growth of country is on
accelerating mode, role of banking industry is also
important in this growth. With the expansion of
banking services to people excluded from banking
services to large corporate searching fund for their
activities, makes the importance of banking services.
New technologies are being introduced and there is
always a fear of economic uncertainties. Fierce
competition, more demanding customers and the
changing climate have presented an unparalleled set
of challenges (Lovelock, 2001) for banks in the
country. Therefore, customer satisfaction is the key
for many banks to survive in competition.
Vijay Prakash Gupta and P.K. Agarwal (June 2013)
found in their research the highest customer
satisfaction is demonstrated in the responsiveness
area such as willingness to help customer, friendly
attitude of staff, followed by the reliability area such
as customer guidance, customer support and other
hand, the moderate satisfactions are in the tangibles
area, such as infrastructure facilities, decor, followed
by empathy area such as banks business timing and
return on investment.
Ms. Pallavi Gupta, Dr. Chhaya Mangal Mishra and
Dr. Tazyn Rahman (August 2014) The banking
industry like many other financial service industries
is facing a rapidly changing Market, new
technologies, economic uncertainties, fierce
competition, and especially more Demanding
customers and the changing climate has presented an
unprecedented set of Challenges. Customer service is
one integral part of any facet of banking and it
defines future of any banking organization.
7. Objective
1. To know the opinion of customers about services
provided by banks.
2. To find the importance of HRM and HRD
practices in Customer Satisfaction.
8. Hypothesis
1. There is non- significant correlation between
HRM and HRD practices and Customer Satisfaction.
Page 551
 Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in

9. Scope of the study

The scope of the study is confined to State Bank of
Bikaner and Jaipur, assess the present state of
Human Resource Management and Development in
the branches of the bank in South Rajasthan, which
covers customers of the bank.
10. Research design and methodology
10.1 Data collection method
The present research work is based on an analysis of
primary and secondary data both, Primary data was
collected from employees, executives and customers
of SBBJ and secondary data was collected from
periodicals, government reports, annual reports of
SBBJ etc.
Graph 1. Source: sample survey
10.2 Tools of primary data
Table 1. It is a multiple response table that
Questionnaires: Three detailed questionnaires as per
shows the opinion of customers for computerization
specimen attached were designed for executives,
of bank where 90% were of the opinion that it
employees and customers of SBBJ. Questionnaires
provided 24 x 7 anywhere, anytime services. Around
were administered personally to the bank employees,
80% respondents were of the view that
executives and bank customers to elicit relevant
computerization reduced waiting time while 70%
information.
found that it gave them an error free work or less
Personal Interview: Questionnaires were followed by error work.
personal discussions with the customers.
Table 2. Break-up of respondents on the basis of
10.3 Tools of secondary data their opinion regarding e-services of the bank.
Secondary data related to the topic was collected
from periodicals, government reports, annual reports
Response N %
of SBBJ, various websites and research papers, also
secondary data was taken from branches of SBBJ in ATM 53 75.71
South Rajasthan.
Online Banking 5 7.14
10.4 Sample size Mobile Banking 1 1.43
Total 70 customers of SBBJ were selected for the Telephone Banking 1 1.43
purpose of the study as well as for analysis.

10.5 Tools of analysis

Analysis is done by using Coefficient of Correlation.

11. Research findings regarding customer

satisfaction
Table 1.Break-up of respondents on the basis of
their opinion regarding computerization of the
bank.
Response N %
Service efficiency is increased due to computerization 63 90.00
It provides 24x7, anywhere, anytime services 63 90.00
Reduces waiting time 56 80.00
Less Error work 49 70.00 Graph 2. Source: sample survey

Imperial Journal of Interdisciplinary Research (IJIR) Page 552

Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in

Table2. Displays percentage of e-services of Bank
with which customers were comfortable. It was
found that the most comfortable e-service was that of
ATM that accounted 75.71%, 7.14% customers were
comfortable with online banking. The comfort with
mobile banking and telephone banking was 1.43%
for both.
Table3. Shows the distribution of customers
respondents for their satisfaction level regarding
various parameters of the bank.
Table3. Shows the distribution of customers
respondents for their satisfaction level regarding
various parameters of the bank.

Table3. Satisfaction of customers with various Nature of bank employees: The first parameter was
parameters of bank the nature of bank employees where customers were
Satisfaction
asked whether the bank employees behavior in
Ran "Friendly and courteous manner" with them then in
Parameters Moderat
High Low k
e reply 64.29% were found moderately satisfied with
Friendly and
27.14 64.29 8.57 6
this, nearly 27.14% were highly or very highly
courteous manner satisfied with this and only 8.57% were either less or
Knowledge of very less satisfied with the manner in which bank
bank's products & 81.43 15.71 2.86 2
Services employees behave.
Willingness to listen
and respond to your 25.71 61.43 12.86 7 Knowledge of bank's products and services:
need Second parameter was
Fast and efficient "knowledge of bank's products and services" where
20.00 45.71 34.29 9
service
Recognition of you 81.43% respondents were found highly satisfied with
24.29 55.71 20.00 8 this and 15.71% were moderately satisfied and only
as valued customer
Professional and 2.86% respondents were found satisfied at very low
attractive 42.86 45.71 11.43 4 level.
appearance
Grievance redresser
procedure
14.29 42.86 42.86 10 Willingness to listen and respond to your need:
Third "parameter was the willingness to listen and
Safety of funds 74.29 25.71 0.00 3
respond to your need" where maximum no. of
Good Infrastructure
facilities like seating
respondents were found highly satisfied with this and
arrangement, AC, 40.00 54.29 5.71 5 said that their need are given proper responses and
water cooler, employees listen to them whenever needed, the result
Washrooms etc. was 61.43% in favor of this parameter at moderate
Availability of
variety of bank 88.57 11.43 0.00 1
level, where 25.71% were highly satisfied and only
products 12.86 were least satisfied with this.

Fast and efficient service: Fourthly, when

respondents were asked about "fast and efficient
service" of their bank then largely (45.71%) were
found moderately satisfied with this while 20% were
highly satisfied and 34.29%. Customer respondents
were last satisfied.

Recognition of you as valued customer: As per

fifth parameter which was "Recognition of you as
valued customer" then in favor of this at moderate
level maximum responses were found which were
55.71%, at high level it was 24.29% and at law level
satisfaction it was found 20% responses.

Professional and attractive appearance: When

customer respondents were asked about Bank
employee's "professional and attractive appearance"
as per their replies they were found satisfied at
moderate level (45.71%) which was maximum and
they showed their least satisfaction with 11.43% and
at high satisfaction showed with 42.86%.

Graph 3. Source: sample survey Grievance redress procedure: with this query
customer respondents were found equally satisfied

Imperial Journal of Interdisciplinary Research (IJIR) Page 553

Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in

with moderate and least extent (42.86%) for both,

while only 14.29% respondents were found highly
satisfied with this facility of their bank.

Safety of funds: For "Safety of funds" customer

respondents (74.29%) were found highly satisfaction
and said that they are tension free for their funds as
these are very safe with this bank and they have no
complaints regarding this, where respondents at low
level satisfaction was 0.00% and 25.71% were stood
at moderate level satisfaction.

Good infrastructure facilities like seating

arrangement, AC, water cooler, washrooms etc.:
As per next query "Good infrastructure facilities like
seating arrangement, AC, water cooler, washrooms
etc." Maximum no. of respondents (54.29%) were
found moderately satisfied with all these facilities as
they said washrooms are sometimes not clean and Graph 4. Source: sample survey
looking at no. of customer of this bank few more
washrooms should be made, for drinking water Table 4. Shows the distribution of respondents if
sometimes water cooler machine does not work they would refer their bank to others. As per the table
properly and they don't get cold water to drink in the maximum of 57.14% of respondents nodded yes
summers and when they have to wait for long hours while only 1.43% straightaway said never. 28 (40%)
to get services in the bank then it becomes tough. out of 70 were of the opinion that they may or may
Where average or below average respondents (40%) not do so while 1.43% said that they definitely will.
were highly satisfied with this and only 5.71% were
found satisfied at low 5.71% were found satisfied at 5. Relationship between HRM & HRD
low level with these facilities of the bank. Practice and Customer Satisfaction

Availability of variety of bank products: Lastly, N r Result

when the customer, respondents were asked about 20 0.754 ***
“availability of variety of bank products" a very huge
amount of respondents (88.57%) were found highly 10
or very highly satisfied with this and it was found
that not even single respondents (0.00%) was least
9
satisfied with it where very few of them (11.43%)
were found satisfied at moderate level with this
8
advanced facility of the bank.
Table 4. Break-up of respondents on the basis of
7
their opinion if they would refer their bank to
Customer Satisfaction

others.
6
Response N %
Definitely 1 1.43 5

Yes 40 57.14
4
May or may not 28 40.00
3
Never 1 1.43
Total 70 100.00 2

1
3 8 13 18 23 28 33
HRM & HRD Practice

A Highly Significant Positive Correlation between

HRM & HRD Practices and Customer Satisfaction
was found (R = 0.754, P <0.001)

Imperial Journal of Interdisciplinary Research (IJIR) Page 554

Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in
“There is non- significant positive correlation
between HRM and HRD practices and Customer
Satisfaction.”
To prove this Hypothesis Carl Pearson’s Coefficient
of correlation was calculated, between HRM and
HRD practices followed by the bank and Customer
Satisfaction.
Results of this test are given below:
(r=0.754; p<0.001)
The test result shows that there is a highly
significant positive correlation between HRM and
HRD practices followed by the bank and Customer
Satisfaction.
The scatter diagram also shows upward
trend of both the variables. Hence, it can be
concluded that HRM and HRD practices are
positively correlated with Customer Satisfaction.
Hence: Our null hypothesis that there is
non- significant positive correlation between HRM
and HRD practices and Customer Satisfaction is
rejected and it is concluded that Customer
Satisfaction is highly positively correlated with HRM
and HRD practices followed by the bank.
12. Customer Satisfaction Findings:
As far as e-banking services are concern, around
76% customers use ATM services but this much
percentage for other e-services like, online banking,
mobile banking and telephone banking was not
found.
Firstly, Majority of the customers were found highly
satisfied with the availability of verity of bank
products, employee’s knowledge about bank
products and services and safety of their funds.
Secondly, customer of SBBJ were found satisfied at
moderate level with professional and attractive
appearance, good infrastructure facility like seating
arrangement, AC, water cooler etc. and friendly and
courteous behavior of the bank employees.
Thirdly, customers were found less satisfied with
slow and inefficient services, employee’s willingness
to listen and responding to their queries, their
recognition as valued customers and grievance
handling procedure of the bank.
Maximum no. of customer respondents(around 59%)
said that surely they will recommend their bank to
others where 40% respondents were found in
dilemma that to recommend or not and only 1%
respondent said that he/she will not recommend
his/her bank to others.
Imperial Journal of Interdisciplinary Research (IJIR)
13. Suggestions:
1. More service counters should be arranged,
to reduce waiting time of customers and
also to prevent disturbance in working of
employees.
2. In time Grievance redressed and fast and
efficient services should be provided to the
customers, also they should be recognized
as valued customers, to prevent huge losses
which can be occur due to their
dissatisfaction with the bank.
3. Customers should also be educated with
new techniques adopted by the bank like-
net banking, e-banking, and mobile-banking
and optimum utilization of ATM and also
they should be educated for other banking
facilities by which they are least aware.
Educating bank customers in this regard
will not only reduce the work pressure of
bank employee’s but also save the time of
both employees as well as customers.
4. New concepts like talent management,
customer relationship management,
universal banking etc. should be adopted by
the public sector banks, so that they can
compete with private sector banks, which
will not only beneficial for employees but
also for its customers, as they will have
better and efficient services.
5. Since highly significant correlation is found
between HRM, HRD practices of the bank
and job satisfaction, customer satisfaction
and organizational growth, and also its
contribution to economic growth. Hence,
more focus should be delivered to HRM and
HRD practices, so that all significant factors
related to these practices will mechanically
be maintained, organized and improved
which will in turn be significantly helpful to
achieve organizational goals as well
economic growth of the nation.
14. Concluding Statement:
Hence, it can be said that although the customers
were satisfied with the availability of various
services, products, basic infrastructure facilities of
the bank etc. but also they were found least satisfied
on the personal ground like their grievance handling,
considering them as valued customers, willingness to
listen and respond. Hence, these areas should be
looked upon by the bank for its success.
Since highly significant correlation is found between
HRM, HRD practices of the bank customer
satisfaction. Hence, more focus should be delivered
Page 555
 Imperial Journal of Interdisciplinary Research (IJIR)
Vol-2, Issue-9, 2016
ISSN: 2454-1362, http://www.onlinejournal.in

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