Doctoral Research Conference in Business Studies and Social Sciences

(DR16India Conference) ISBN: 978-1-943579-60-0

Chennai-India. 2 April, 2016. Paper ID: DRC612

A Study on Investment Behaviour and Level of Satisfaction of

Bank Employees
K.V. Ramanathan,
Ph.D. Research Scholar,
SCSVMV University, Kancheepuram, India.
E-mail: kvram71@yahoo.com

K.S. Meenakshisundaram,
Director, CAA, Great Lakes Institute of Management,
Chennai, India.
E-mail: drksmsundaram@gmail.com
___________________________________________________________________________________
Abstract
Savings and Investment are commitment of a person’s funds to grow future income. The
concept of savings is really essential to cope with the fast evolving multi-faceted social
commitments. Humans work in order to earn income to meet their personal requirements.
Human wants are unlimited and hence he need to work continues. In this research paper an
attempt has been made to study the bank employee’s individual behaviour and level of
satisfaction towards various investment alternatives. The study was made with a sample of
125 bank employees through a structured questionnaire using the statistical tools such as
measures of central tendency, regression analysis, ANOVA and MANOVA. The results of
multivariate analysis revealed that there is no significant difference between expected return -
satisfaction and Investment evaluation decision. ANOVA also revealed that there is no
significant difference between expected return and the level of satisfaction of the respondents.
___________________________________________________________________________
Key Words: Investment behaviour, Satisfaction level, Investors satisfaction, Expectation

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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

1. Introduction
Savings is common to all societies and this practice differs from one another. In India
there are various investment avenues available to meet differing needs of investors. The
investors saving schemes will have a significant impact on the saving behaviour of people. A
study on behaviour and level of Satisfaction assumes a greater significance in the formulation
of policies for the development and regulation of savings in general and protection and
promotion of small and household investors in particular. Some of these investment avenues
offer attractive returns but with high risks and some offer lower returns with very low risks.
2. Literature Review
Saranya B & Karthikeyan G B (2015) studied the preferences and level of satisfaction
towards post office savings schemes with sample of 1068 investors in the city of Coimbatore
city with an objective to ascertain the reasons that forces the investors to invest in post office
schemes and to ascertain the level of satisfaction of the investors and to identify the SWOT
analysis of post offices. The study was carried out with a structured interview schedule and
concluded that there is significant association between age group, gender, family income,
savings and annual income and post office savings by the investors. It was also concluded that
there is no significant association between education qualification and personal savings made
by the investors. The researcher has also carried out Mahalanobis Multi discriminate analysis
and divided into two groups one is with low level of satisfaction and the other is with high
level of satisfaction on the post office savings scheme selecting 7 demographic variables. It
was concluded that the overall analysis revealed that the main reason for investing in the post
office were influenced by 3 factors namely, meet the emergency needs, to meet the family
needs in the near futures and to take care the well-being of the children.
Ishwarya P (2014) had undertook a study the behaviour and satisfaction level of
investors towards various investment alternatives available for the salaried class employees in
the city of Mangalore. The study was conducted with an objective to ascertain the behaviour
of salaried class employees and to measure the satisfaction level of salaried class employees
towards available investment avenues. The researcher has taken an sample of 100 respondents
using convenient sampling technique. It was concluded that that most of the respondents
expressed their views positively towards investment activities. Majority of the respondents
are not only less aware about the investment avenues but also they are less satisfied about
their investment in marketable securities. The research also concluded that 36% of
respondents are satisfied on their investment in non- marketable securities and 64% of
respondent’s satisfaction is poor. It was also concluded that 88% of respondents are
satisfactory on their investment and only 12% of respondents perceived and reported to have
lower degree of satisfaction on their investment in physical assets.

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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

Umamaheswari S & Ashok Kumar M (2014), had carried out a study titled, “A special
study on Coimbatore based salaried investors awareness, attitude, expectation and satisfaction
over their investments” with an objective to explore the investment attitude of the investors to
perceive their level of satisfaction about their investment policies, to observe the motivating
factors for their investment policies with a special reference to expected rate of return on their
investment besides exhibiting the investors decision making in opting for the investment
policies. The research was carried out with structured questionnaire and a sample of 1000
respondents. It was concluded in the research that relative portion between the demographic
factors and the satisfaction level of salaried class investors about their investment policies. It
was also proved that the rate of return of salaried class of investors on their investment
policies is necessarily influenced by their demographic constituents.
Vinoth R & Rajkumar R (2013) has undertaken a study titled, “Investors satisfaction,
expectations and practical problems on mutual fund investments – An investigation study
with special reference to Coimbatore City”, with an objective to study the priority of
investments over mutual funds by the investors, to study the practical problem of mutual fund
and to study the expectation of mutual fund investors. The study was carried out with a
sample of 150 respondents through a structured questionnaire using convenient sampling
technique. It was concluded that high returns was the top priority while ranking the decision
making factors. The respondents also felt that the mutual funds have not offered the expected
returns for their investment. It was also concluded in the research that majority of the
respondents were satisfied on the service of agents of mutual fund organisations. It was also
concluded that personal factors of the respondents have no significant influence on the source
of awareness of mutual funds and type of business, whereas the personal factors have
significant influence on the type of scheme.
De clercq B, J.M.P.Venter & C.J.van Aardt (2012) undertook a study titled, “An
analysis of the inter-relationship between savings product usage and satisfaction using a
SERVQUAL framework” with a sample of 700 respondents in South Africa with an objective
to study the relationship between usage and satisfaction levels attributed to various saving
products. The researcher conducted correlation and regression analysis to ascertain the level
of usage relating to financial products with the level of satisfaction ascribed to the products. It
was concluded that very high positive correlation coefficients indicates strong relationship
between the variables. Higher the usage and higher satisfaction with respect to saving
products. It is also concluded that the importance of financial product providers continuously
strive to improve satisfaction levels among savers so that higher usage levels can be

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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

encouraged, and to increase the savings base with diverse products so as to give more returns
to savers over the medium to long term, cannot be over-emphasized.
3. Objective of the study
From the above literature review, it can be understood that the studies in respect of the
level of satisfaction with reference to bank employees were not made earlier. Hence an
attempt has been made to analyse the satisfaction level of the banking professionals with the
following objectives.
1. To study the mean, deviation, skewness and kurtosis of the selected demographic
variables.
2. To analyse the variance between annual investment and level of satisfaction
3. To analyse the expected return and level of satisfaction and investment evaluation
decision.
3.1 Hypothesis
1. H0: There is no significant influence on demographic factors on annual investment.
2. H0: There are no significant difference between expected return-satisfaction and
Investment evaluation decision.
3. H0: There are no significant difference between expected return and the level of
satisfaction.
4. Research Methodology
The research methodology depicts the flow of the research process and serves as guidance
for the research to carry out the research study. It comprises of data source, sample size,
sampling techniques and tools of analysis. In this research study, the researcher has used the
primary data obtained from 160 respondents working in banking sector.
Research Strategy
Research Design Descriptive research

Study Population Employees working in Private sector Bank

Population Source Statistics issued by Reserve Bank of India as of March 2013.

Study Area Various cities in India.

Sample Frame Private sector Bank Employees working in Metro and tier II
cities and in the age between 21 and 60 at various levels of
Management.
Sampling Unit Persons working in Private sector Banks

Sampling Method Convenient sampling

Sample Size 125 Investors

Nature of Data Both Primary and Secondary

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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

Sources of Primary
Survey method through Questionnaire
Data
Sources of Secondary
Journals, Magazines, Previous Research Reports & Websites
Data
Tool used for Data
Pre tested and Structured Questionnaire
collection
Type of Questions Close ended, Multiple choice

Establishing Validity Carried out to check Validity of constructed Questionnaire

Test of Reliability 0.602 (60%) Alpha

Statistical Tools Used
Measures of central tendency – Mean, Standard Deviation,
Skewness, Kurtosis
Regression Analysis
ANOVA
Multivariate Analysis (MANOVA)

4.1 Data Analysis and Interpretation

Primary data was collected through questionnaire comprising of various parameters from
the respondents. The information generated through the survey is being reported through the
tabulation of categorical variables and the results are discussed below.
Table 1: Descriptive statistics
Std.
N Mean Deviation Skewness Kurtosis
Std. Std.
Particulars Statistic Statistic Statistic Statistic Error Statistic Error
Age 125 2.26 0.872 0.421 .217 -0.394 .430
Gender 125 1.20 0.402 1.518 .217 0.310 .430
Marital Status 125 1.85 0.360 -1.962 .217 1.880 .430
Educational Qualification 125 2.08 0.789 -0.143 .217 -1.375 .430
Annual Income 125 2.13 0.959 0.912 .217 0.721 .430
Percentage of Savings 125 2.10 1.019 0.455 .217 -0.971 .430
Annual Investment 125 1.34 0.683 2.850 .217 10.059 .430
Awareness 125 1.48 0.517 0.258 .217 -1.529 .430
Grade of Employment 125 2.72 0.630 -0.883 .217 1.062 .430
Valid N (list wise) 125

From the above Table – 1, Gender, Marital status, Annual Income, Annual Investment
and Grade of employment shows Leptokurtic. Age, Educational qualification, Percentage of
savings and awareness shows Platykurtic. Skewness value of the annual investment is very
high and shows that the mean, mode and median differences are very high. Mean value of
Age is 2.26 and it shows that the majority respondent belongs to the age group between 31
and 40. 17.6% of respondents belong to less than 30 years, 48.8% of respondents belong to
31-40, and 23.2% of respondent belongs to 41-50 and the rest 10.4% belong to above 50
years. Gender shows that 80% of the respondents were male and the rest belongs to women.

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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

The mean value of marital status is 1.85 and shows that majority of the respondents were
unmarried (84.8%). The mean value of educational qualification is 2.08 and showed that
27.2% of the respondents were graduates, 37.6% of the respondents were post graduate and
35.2% of the respondents were professionals. The mean value of annual income shows that
2.13, which shows that 25.6% of the respondents earning less than five lakhs, 48% of the
respondents earnings between 5-10 lakhs, 16.8% of the respondents earnings between 10-15
lakhs. 7.2% of the respondents’ earnings between 15-20 lakhs and the rest 2.4% belong to
above 20 lakhs per annum. The mean value of percentage of savings is 2.10 which shows that
36% of the respondents percentage of savings is less than 10 percent, 29.6% of the
respondents percentage of savings is between 10-15 percent, 23.2% of the respondents
percentage of savings is between 15-20 percent and the rest 11.2% of the respondents
percentage of savings above 20 percent of their earnings. The mean value of annual
investment is 1.34 which represents 73.6% were investing less than 2.5 lakhs per annum,
23.2% of the respondents were investing between 2.5-5 lakhs per annum, 2.4% of the
respondents were investing between 7.5-10 lakhs per annum and the rest 0.8% of the
respondents were investing above 10 lakhs per annum. The mean value of investment
awareness of the respondents is 1.48 which represents 52.8% of the respondents were fully
aware, 48.4% of the respondents were partially aware and the rest 0.8% of the respondents
belong no idea category. The mean value of the grade of employment is 2.72 which represents
4.8% of the respondents were Executives, 23.2% of the respondents were Junior management
level, 67.2% were middle management level and the rest 4.8% belongs to senior level of
management.
Table 2: ANOVA
Sum of Squares df Mean Square F Sig.
Regression 23.864 5 4.773 16.693 0.000a
Residual 34.024 119 0.286
Total 57.888 124

a. Predictors: (Constant), Level of satisfaction, Return expected, Annual Income,

Educational Qualification, Percentage of Savings
b. Dependent Variable: Annual Investment

Coefficients
Standardized
Unstandardized Coefficients Coefficients
B Std. Error Beta t Sig.
(Constant) 0.264 .277 - 0.955 0.341
Educational
-0.081 .065 -0.094 -1.259 0.211
Qualification
Annual Income 0.288 .056 0.405 5.111 0.000
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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

Percentage of Savings 0.237 .054 0.354 4.378 0.000

Return expected 0.061 .050 0.087 1.206 0.230
Level of satisfaction -0.031 .073 -0.030 -0.419 0.676

a. Dependent Variable: Annual Investment

Hypothesis: The selected factors has no influence on Annual Investment

From the above Table-2, we interpret that the effect of educational qualification, annual
income, percentage of savings, return expected and the level of satisfaction on Annual
investment is given by the regression equation, Annual investment(Y) = a + b1
(Edu.Qualification) + b2 (Annual income) + b3 (% of savings) + b4 (Returns expected) + b5
(Level of satisfaction). R value is 0.642 and R square value is 0.412. It is concluded that
Annual Income and Percentage of savings influence the amount of annual investment to the
extent of 28.8% and 23.7 % respectively. F value is 6.693 and is significant at 0.01 levels.
Hence the Null Hypothesis is rejected.
Table 3: Expected Return and Level of Satisfaction versus Investment evaluation decision
Multivariate Analysis
Effect Value F Hypothesis Error df Sig
df
Pillai's Trace 0.765 1.811E2a 2.000 111.000 0.000
Wilks' Lambda 0.235 1.811E2a 2.000 111.000 0.000
Intercept
a
Hotelling's Trace 3.263 1.811E2 2.000 111.000 0.000
a
Roy's Largest Root 3.263 1.811E2 2.000 111.000 0.000
Pillai's Trace 0.026 .740 4.000 224.000 0.565
a
Safety Wilks' Lambda 0.974 .739 4.000 222.000 0.567
Principal Hotelling's Trace 0.027 .737 4.000 220.000 0.568
b
Roy's Largest Root 0.027 1.499 2.000 112.000 0.228
Pillai's Trace 0.088 2.565 4.000 224.000 0.039
Return on Wilks' Lambda 0.913 2.595a 4.000 222.000 0.037
Investment Hotelling's Trace 0.095 2.625 4.000 220.000 0.036
b
Roy's Largest Root 0.093 5.185 2.000 112.000 0.007
Pillai's Trace 0.057 1.641 4.000 224.000 0.165
a
Wilks' Lambda 0.944 1.636 4.000 222.000 0.166
Liquidity
Hotelling's Trace 0.059 1.630 4.000 220.000 0.168
b
Roy's Largest Root 0.048 2.694 2.000 112.000 0.072

Hypothesis: There is no significant difference between expected return - satisfaction and

Investment evaluation decision.
Interpretation: From the above table, the value of MANOVA is greater than 0.05 for the
Safety principal and Liquidity. Hence accept the null hypothesis and concluded that there is
no significant difference between Expected return - satisfaction versus investment evaluation

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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

decision under safety principal and liquidity. Hence the null hypothesis is rejected because the
table value is lesser than 0.05
Table 4: Return expected and level of satisfaction
ANOVA (Return expected-Level of Satisfaction)
Sum of Squares Df Mean Square F Sig.
Between Groups 01.195 4 0.299 0.656 0.624
Within Groups 54.613 120 0.455
Total 55.808 124

Null Hypothesis: There is no significant difference between its expected return and the level
of satisfaction of the respondents.
Interpretation: Based on the result generated by SPSS, the significant value is 0.624 and it is
greater than 0.05. Hence the null hypothesis is accepted since there is no significant
difference between the levels of satisfaction of respondents with respect to their expected
return. Expected returns from investment not influence the satisfaction level of the
respondents.
5. Salient Findings
1. Skewness value of the annual investment is very high and shows that the mean, mode
and median differences are very high.
2. Majority of the respondents are in the age group of 31 – 40 and more than 75% of the
respondents are males.
3. 48% of the respondents are in the income group of Rs.5-10 Lakhs and more than 50%
of the respondents are fully aware of the investment.
4. Gender, Marital status, Annual Income, Annual Investment and Grade of employment
shows Leptokurtic and Age, Educational qualification, Percentage of savings and
awareness shows Platykurtic.
5. Annual Income and Percentage of savings influencing the amount of annual
investment.
6. No significant difference between its expected return and the level of satisfaction of
the respondents.
7. There is no significant difference between Expected return - satisfaction versus
investment evaluation decision under safety principal and liquidity.
6. Conclusion
It is extremely important for the policy makers and regulatory authorities to understand
the investors’ perceptions, preferences, and their concerns on the market. A study may be
conducted exclusively for other sector of employees with a perspective to help and promote
the investors. Also research may be pursued to help the middle income group in making best
investments clubbed with higher return and satisfaction to the investors. Investment
procedures must be simple and clear to attract more investors.
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 Doctoral Research Conference in Business Studies and Social Sciences
(DR16India Conference) ISBN: 978-1-943579-60-0
Chennai-India. 2 April, 2016. Paper ID: DRC612

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