GTUs Enrollment No: 107330592910

A PROJECT REPORT ON

A COMPARATIVE STUDY OF MOTIVATION

At

GUJARAT STATE ELECTRICITY CORPORATION LTD.

Submitted By:

PATEL YASHESHKUMAR D. (ROLL NO 10)

MBA PROGRAMME 2010-2012 (SEMESTER II) In partial fulfillment of the requirements for Summer Internship Programme for the award of the degree of MASTER OF BUSINESS ADMINISTRATION LATE SMT. SHARDABEN GANSHYAMBHAI PATEL INSTITUTE OF MANAGEMENT STUDIES (SGPIMS)

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD

Declaration

This project report entitled A Project Report on a comparative study of motivation has been submitted to Gujarat Technological University, Ahmedabad in partial fulfillment for the award of degree of Master of Business Administration. I the undersigned hereby declare that this report has been completed by me under the guidance of Prof. Divyang Joshi Faculty Member, Late Smt S.G.Patel Institute Of Management Studies,Dharmaj.

The report is entirely the result of my own efforts and has not been submitted either in part or whole to any other institute or university for any degree.

Name of the Student with Signature: Patel Yasheshkumar D. GTU s Enrollment No: 107330592010 Date: Place: Dharmaj

Name and Signature of the Faculty Guide: Prof. Divyang Joshi Date: Place: Dharmaj

CERTIFICATE
This is to certify that Patel Yasheshkumar D, student of MBA

(2010-2012 batch) at Post Graduate Centre of Gujarat Technological University MBA, has prepared a Summer Internship Project Report on A Comparative Study Of Motivation in partial fulfillment of two years full-time MBA Programme of Gujarat Technological University, Ahmedabad. This project work has been undertaken under my supervision and found satisfactory.

Date : Place: Dharmaj

Prof. Divyang Joshi Faculty MBA Project Guide

PREFACE

Summer Project is an integral part of any MBA course and a must for students to gather firsthand experience of work culture of the particular company. Understanding that how things are done in the market/companies has become a serious component to survive in a highly competitive environment that we, the students of Masters of Business Administration find it an integral part of our studies.

This project is subject to the study of Effectiveness of motivation of GSECL W.T.P.S. motivation is the important factor that affect the productivity of the organization. The role of the human resource is to encourage them to do their best. There is a relationship between motivation and achievement of the goal of the organization..

In the research we have came to know about certain fact that what is the effect of motivational factors on employee performance.. I have taken a sample of 20 employees and tried to find out the conclusion.

ACKNOWLEDGEMENT

Doing a project involves enormous efforts on the part of students. I was fortunate enough to get help and guidance from a large number of persons from the organization as well as my institute. It is a pleasure to acknowledge them, though it is still inadequate appreciation of their contributions. Though it is not in any sequential order, I acknowledge the names of those people whom I shall remain always grateful. First, I would like to be grateful to Almighty God for our life, and His incessant blessings. I wish to express profound gratitude to Prof. Divyang Joshi, my project guide for his valuable guidance and encouragement throughout the preparation of this project report.
I would like to thank to the people who helped us in completing the project as well as the respondents of GSECL WTPS. who gave us their important time to complete our study.

I am thankful to all my colleagues, who have shared their ideas and suggestions to help me get the way to do this work.

Patel Yasheshkumar D

EXECUTIVE SUMMARY

Banking sector is very competitive sector now a day. Customer satisfaction is necessary for survival. So each and every bank has to innovate and improve their service time to time. Now customer want customize service in banking service. Even public sector banks also doing well also improve their service, because they have to compete with private banks. Priority Banking is a new concept introduced by private banks. Ea rlier all the customers was same for the bank, same services and benefits was given to all customers. But now, bank divide customers according to customers account balance, nominal services are given those customers who maintain minimum balance, and some extra benefits are given to those who deposit and maintain large amount in their account. For the project, I had worked with Relationship Manager (priority banking) where in, I was given a thorough knowledge about priority banking service. Then I was explained about companys some of well established products and also work culture of the company and rules and regulations were informed to me. Apart of these things, field training was also given to me by joint working with companys Relationship Manager, So I could understand fieldwork activities. The following report is an attempt to study customer satisfaction, To know in which area company has to improve the services, identify benefit desired by priority customers, Customer are satisfied or not, and check t he satisfaction level of customer. For that purpose, questionnaire was prepared, which could draw out meaningful information to the company. After preparing the questionnaire sampling design was framed. Time limit for the project was about 6-7 weeks starting from 2nd June 2010 and 50 customers were included

for the study, where primary data was collected through questionnaire and verbal discussion. After the compilation of received data, statistical and graphical analysis was done on these data. The findings were analyzed and evaluated to draw out meaningful information. Based on the finding various conclusions were given which would be useful to give practical suggestions. After taking into consideration various findings and conclusions, the final part of the study includes recommendations for banking activities that would help the organization. During the course of my project I had an encouraging practical experience and a chance to learn an experience, the practical aspect of the banking industry and corporate world.

INDEX

Page Sr.No. CONTENTS No.

Declaration
Preface Acknowledgements Executive summary List of Tables List of Charts Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 DATA ANALYSIS AND INTERPRETATION RESEARCH METHODOLOGY COMPANY PROFILE AXIS BANK AN OVERVIEW OF BANKING SECTOR

i
ii iii iv vii viii 1 6

7 - 21

22 28

29 47

FINDINGS,

CONCLUSIONS

& 48 52

RECOMMENDATIONS BIBLIOGRAPHY
ANNEXURE-I 53 54

List of table

Sr no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Name of the table

Years of priority customers Rank the benefit according the usage Competitors Awareness about all the benefits Bank guide for investment purpose or not customer s level of satisfaction in regards to customer service Recommend to others Overall Satisfaction level (Rate) Customer Loyalty Net Banking service (user) Debit Card User Travel by Air (in times) Door/home service user Platinum card user

Page
30 31 32 33 35 36 38 39 40 42 43 44 46 46

List of chart
Name of the Chart
Years of priority customers Rank the benefit according the usage Chart showing Competitors Awareness about all the benefits Bank guide for investment purpose or not customer s level of satisfaction in regards to customer service Chart showing how Recommend to others Overall Satisfaction level (Rate) Chart showing Customer Loyalty Net Banking service (user) Debit Card User Travel by Air (in times) Door/home service user Platinum card user

Sr no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Page
30 32 33 34 35 37 38 39 41 42 43 44 46 47

CHAPTER 1 AN OVERVIEW OF BANKING SECTOR

CHAPTER OUTLINE: y Banking in India y Phase 1 y Phase 2 y Phase 3

[1.1] BANKING IN INDIA:

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to th e remote corners of the country. This is one of the main reasons of India's growth process.
[1.2.1] HISTORY:

The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: PHASE I - Early phase from 1786 to 1969 of Indian Banks PHASE II - Nationalization of Indian Banks and up to 1991 PHASE III - Indian Financial & Banking Sector Reforms after 1991.
[1.2.2] PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to the traders.

[1.2.3]PHASE II:

Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Second phase of nationalization Indian B anking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India raised to approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

[1.2.4]PHASE III

This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

[1.3]FIGURE: SCHEDULED COMMERCIAL BANK IN INDIA:

http://www.scribd.com/doc/24871727/Axis -Bank July 12 2010

Chapter 2 COMPANY PROFILE AXIS BANK

[2.1] ABOUT AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 406.94 crores with the public holding (other than promoters and GDRs) at 54.55%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1000 branches and Extension Counters (as on 31st May 2010). The Bank has a network of over 4397 ATMs (as on 31st May 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

[2.2] Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.
[2.3] SUUTI - Shareholding 23.89%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. The Government of India has appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing obligations and commitments to the investors, which it will uphold.

[2.4] Board of Directors

The members of the Board are :

Dr. Adarsh Kishore Smt. Shikha Sharma Shri M. M. Agrawal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Shri M. S. Sundara Rajan

Non-Executive Chairman Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director Director

[2.5]Vision 2015 and Core Values VISION 2015:

To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology
Core Values Customer Centricity Ethics Transparency Teamwork Ownership

[2.6]THE CORE MANAGEMENT TEAM: S. K. Chakrabarti Executive Director (Retail Banking, SME and Agri.) V. Srinivasan Executive Director (Corporate Banking) Somnath Sengupta Executive Director and CFO Snehomoy Bhattacharya Executive Director S. S. Bajaj President & Chief Compliance Officer P. Mukherjee President - Large Corporates & International Banking Vinod George President Wholesale Banking Operations M. V. Subramanian President - Business Banking Rajagopal Srivatsa President - IT and Retail Banking Operations S. K. Supekar President & Chief Audit Executive B. Gopalakrishnan President - Law Manju Srivatsa President Retail Banking (Assets) Bapi Munshi President & Chief Risk Officer C. Babu Joseph President - Advances Sonu Bhasin President - Retail Banking (Liabilities) Sanjeev K. Gupta President - Finance & Accounts and Investor Relations V. K. Bajaj President - Mid Corporates Sidharth Rath President - Infrastructure Business R. K. Bammi President - North Zone S. K. Nandi President - West Zone S. K. Mitra President - East Zone C. P. Rangarajan President - South Zone

As on 20 April 2010 M/s S. R. Batliboi & Co. Chartered Accountants Auditors

M/s Karvy Computershare Private Limited Registrar and Share Transfer Agent UNIT : AXIS BANK LIMITED Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad - 500 081 Tel. No. : 040-23420815 to 23420824 Fax No. : 040-23420814

Registered Office 'Trishul', 3 Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge , Ahmedabad - 380 006. Tel. No. : 079-2640 9322 Fax No : 079-2640 9321 Email : p.oza@axisbank.com, rajendra.swaminarayan@axisbank.com Web site : www.axisbank.com Central Office Maker Towers 'F', 13 Floor, Cuffe Parade, Colaba, Mumbai - 400 005 Tel. No. : 022-67074407 Fax No. : 022-2218 6944/2218 1429

[2.7] Highlights (financial performance, this data is taken from annual report of axis bank 2009-10) y Profit after tax up 38.51% to Rs.2,514.53 crores y Net Interest Income up 35.76% to Rs.5,004.49 crores y Fee & Other Income up 23.80% to Rs.3,123.40 crores y Deposits up 20.38% to Rs.141,300.22 crores y Demand Deposits up 30.38% to Rs.66,029.54 crores y Advances up 27.94% to Rs.104,343.12 crores y Retail Assets up 29.72% to Rs.20,822.90 crores y Network of branches and extension counters increased from 835 to 1035 y Total number of ATMs went up from 3,595 to 4,293 y Net NPA ratio as a percentage of net customer assets up to 0.36% from 0.35% y Earnings per share (Basic) increased from Rs. 50.61 to Rs.65.78 y Proposed Dividend up from 100% to 120% y Capital Adequacy Ratio stood at 15.80% as against the minimum regulatory norm of 9%

[2.8] Organi ati nal Structure

Ass V ce es e B c e

[2.9]Products and services

Axi B offers a range of financial products and services to its clients t roughout the country. It also has special strength in retail and corporate banking. Axis Bank offers following services: (1) Personal Banking (2) Corporate Banking (3) NRI (4) Priority Banking

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(1)Personal Banking The Personal Banking of Axis Bank includes following services:

Accounts o Zero Balance Savings Account o Krishi Savings Account o EasyAccess Savings Account o Prime Savings Account o Corporate Salary Account o Women's Savings Account o Demat Account o Senior Citizen's Account o Defence salary Account o Trust/NGO Savings Account o RFC(D) Account o Azzadi - No Frills o Pension Savings Account Deposits o Fixed Deposits o Recurring Deposits o Encash 24 o Tax Saver Fixed Deposit Loans o Home Loan o Car Loan o Personal Loan o Loan Against Shares o Loan Against Property o Loan Against Security o Study Loan o Consumer Loan Cards o Credit Cards o Debit Cards o Prepaid Cards Investments o Mohur Gold o Online Trading o Mutual Funds o Demat Account o A Smile Solution o Kal Bhi, Aaj Bhi Insurance o Life Insurance  Life Insurance Products  5 For Life o Health Insurance

Family Health Silver Health o Motor Insurance o Jewellery Insurance o Personal Accident  Safe Guard o Home  Safe Home  Safe Home Plus o Travel Companion o Critical Illness o Business advantage Payments o Bill Pay o Electronic Clearing Service o Tax Payments  Tax e-Payments  Direct Tax Payments  Pension Disbursement Other Services o Mobile Refill o Locker o Online Shopping o IPOSmart o E-Statement
 

(2) Corporate Banking

Following services are offered by Axis Bank under Corporate Banking:
y

Accounts o Normal Current Account o Business Advantage Account o Business Select Account o Business Classic Account o Business Privilege Account o Channel One Account o Current Account for Govt. Organizations o Current Account for Banks o Current Account for Builders & Real Estate o Capital Market Current Account o Krishi Current Account o Business Global Current Account o Club 50 Current Account o Shipping and Maritime Current Account o Inland Road Transport Current Account o Travel, Tourism and Hospitality Current Account o Local Current Account o Current Account for Pharma o Cash Management Current Account

Current Account for Chartered Accountants

Credit Large Corporates  Working Capital Finance  Term Loans  Trade Services  Structured Finance  Supply Chain Management  Overseas Transactions o Agri Business  Kisan Power  Powertrac  Commodity Power  Contract Farming  Arthia Power o SME Standard o SME Fast Track o Microfinance Capital Market o Debt Solutions o Equity Solutions o Private Equity, Mergers & Acquisitions o Advisory Services o Trusteeship Services o Depository Services o eDepository Services o Capital Market Funding o Custodial Services o e-Broking Treasury o Forex o International Business o Money Market o Constituent SGL Facilities o Retailing of Government Securities Cash Management Services o Payment Solutions o Collection Solutions Govt. Business o Authorisation o Direct Tax Payment o Indirect Tax Payment o State Tax Payment o Pension Disbursement o Other Services o e-Payments o e-Governance Tie-ups
o

o o

Online Tax Payment New Pension System (NPS)

(3) NRI
Axis Bank offers following services for the NRIs:
y

Accounts o NRE Savings Account o NRO Savings Account o NRI Prime Account o NRI Priority o PIS Account o NRE Salary Account o RFC Account Deposits o NRE Rupee Deposit o NRO Rupee Deposit o FCNR Deposit o RFC Term Deposit Remittances o AxisRemit o SWIFT o Partner Banks o Exchange House Tie-ups o NRI Connect Services o PAN Assistance o Locker o NRI Local Post Box

(4) Priority Banking

Following services are offered under this category:
y

Accounts o Resident o NRI Deposits o Fixed Deposits o Recurring Deposits o Encash 24 Loans o Home Loan o Personal Loan o Loan Against Property o Loan Against Security o Car Loan

o o

Study Power Consumer Power

Cards Priority Debit Card Credit Cards  Platinum Credit Card  Gold Plus Credit Card  Gold Credit Card  Silver Credit Card  Secured Credit Card  eShop Card o Travel Currency Card o Remittance Card o Gift Card Investments o Resident Indians  Mohur Gold  Online Trading  Mutual Funds  Depository Services  eDepository Services o NRI  PIS Account  PAN Assistance Payments o Bill Pay o Electronic Clearing Service o Tax Payments  Direct Tax Payments  Pension Disbursement Remittances o SWIFT o Partner Banks Other Services o Mobile Refill o Locker o Online Shopping
o o

[2.10] what is Priority Banking Service?

In priority banking, these services and benefits are provided, l arge spaces, soft sunken sofas, large wall television sets broadcasting the latest business buzz. Hot, freshly brewed coffee. Sounds like the lobby of a star hotel. Not really. It's the new experience at Axis Bank's exclusive 'Priority Banking Branches', which have been planned especially keeping in mind the lifes tyle, tastes and preferences of Priority Banking customers. Going beyond just regular banking, for a discerning client , Bank bring a concept that is first of its kind in India. Enjoy a boutique banking experience, discover a wide range of banking and investment products, and feel pampered with various value-added privileges. And what's more, these exclusive branches are designed especially for Priority Banking customers.
1.Lounge Area:

The lounge area is a plush zone for customers to relax whenever they visit the Priority Banking Branch. Catch up with the latest news on television and enjoy freshly brewed coffee or tea as per preference.
2.Business Center: As a Priority Banking customer, they can utilize fully equipped business center for business meetings whenever they travel to the respective city where a Priority Banking Branch is located. Customers need to just make a booking for the business center in advance, through phone or email.

3.Internet Access Zone:

Utilize the convenient Internet Access Zone where they can check email, surf the web or transact through Internet Banking for banking and investment requirements.
4.Meeting Rooms:

Meeting rooms are provided for priority customers to discuss investments or transactions along with Relationship Manager, in comfort and confidentiality.

5.Children's Play Area: The Priority Banking Branches have a special children's play area with books, toys and other things to keep customers children engaged while customers are discussing their finances with banks Relationship Manager. 6.Conference room: As a Priority Banking customer, they can receive invitations for special events such as investment conferences, art exhibitions and othe r programmes periodically organized by the Branch, in the specially designed conference area. 7.Banking Privileges (a)Priority banking lounge: As a Priority banking customer customers will have access to an exclusive 'Priority Banking Lounge' at branches. This will allow to conduct their financial transactions in utmost comfort and confidentiality through an exclusive Relationship Manager. (b)Dedicated Relationship Manager: Customers will enjoy access to a dedicated Relationship Manager who will be priority customers one point contact at branch for all banking tra nsactions thus ensuring that they would neither have to move from one counter to the other nor stand in queues to await their turn. (c)Home Banking: Experience the convenience of priority customers home banking facilities. Avail of free cash and cheque pick-up and delivery at office or residence.

(d)Exclusive Priority Banking International Debit card: This card allows free access to all VISA ATMs in India. The card also comes with higher ATM withdrawal limits, higher POS transaction limits at merchant establishments, enhanced insurance cover and a host of special discounts and offers. Priority customers also get Preferential Interest Rates and lowered Processing Fees on select Retail Loans. (e)Other Banking Privileges: Enjoy a host of banking privileges like free at-par cheques, demand drafts and pay orders, free passbook updates and monthly statements.

Priority customers would also be entitled to two free minor accounts, one free outward remittance per quarter and free Mobile banking.

8.Investment Privileges

Avail of assistance in financial planning. Investment advice, marke t information reports, and invitations to investor meets are offered complimentary to you.
9.Lifestyle Privileges

However, it's not all about just financial services. Bank aim to provide a different Lifestyle experience through special offers on premium brands, movie privileges, special events and lots more - especially for Priority Banking customers
10.Gold Credit Card

As an added privilege, Priority Banking customers may also apply for a Gold Standard Credit Card and Gold Standard Secured Credit Card without any additional fee, subject to the applicable terms and conditions. Priority Banking customers would also be eligible for a 50% reduction on the Issuance Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card. Rs. 500 will be charged as the annual maintenance charge for Priority Banking customers, subject to the applicable terms and conditions.
[2.11] 24 x 7 Banking

Following services are offered under 24 x 7 Banking:

y y

y y y y

Internet Banking Mobile Banking o Savings Account o NRI Account o Current Account Phone Banking Visa Money Transfer Power Transfer ATM

CHAPTER 3

RESEARCH METHODOLOGY

CHAPTER OUTLINE
1. BACKGROUND AND NEED OF THE RESEARCH a. WHAT IS PRIORITY BANKING SERVICE? b. ELIGIBLITY OF PRIORITY CUSTOMER 2. STATEMENT OF THE PROBLEM 3. JUSTIFICATION FOR THE RESEARCH 4. OBJECTIVES OF THE STUDY 5. RESEARCH DESIGN 6. DETAILED RESEARCH METHODOLOGY a. TARGET POPULATION b. SAMPLING FRAME c. SAMPLING TECHNIQUE d. SAMPLE SIZE e. SOURCES OF DATA f. FOR DATA ANALYSIS g. SCOPE

7. LIMITATIONS AND FUTURE SCOPE OF THE STUDY

1. BACKGROUND AND NEED OF THE RESEARCH

The project with bank is Priority banking service of Axis Bank. There is intense competition in banking sector, now a days, even public sector bank also take care about their customers. Each and every bank is focusing on improvement in services. If bank will not give good services to their customers or customers are not satisfied with the bank, they will shift to another bank. So, continues innovation and improvement is necessary in banking sector. Priority Banking is a new concept introduced by private banks. Earlier all the customers was same for the bank, same services and benefits was given to all customers. But now, bank divide customers according to customers account balance, nominal services are given those customers who maintain minimum balance, and some extra benefits are given to those who deposit and maintain large amount in their account. So, the project helps the bank (branch), how to improve services of priority customers, and new benefits bank should add for them. This project would also help in identifying key point for improving services and increases customers satisfaction. This project will help to the company and branch to increase new priority customers. This will also be helpful to achieve companys target and customer satisfaction would help to accelerate growth of the company further.

Eligibility of priority Banking service: -

Anyone can sign up for Priority Banking service by agreeing to any one of the following criteria
y Average quarterly balance (AQB) of Rs. 1 Lakh in your savings account ( this requirement is Rs. 75,000 if in case you have a salary account with Axis Bank) y Average quarterly balance of Rs. 5 lakhs in combination of your savings and term deposits (Minimum AQB of Rs. 50,000 in the savings account)

y Minimum Average Quarterly relationship (SB+TD) of Rs. 10 lakhs across members of the same family - Subject to a minimum average SB Balance of Rs. 80,000 being maintained in the SB accounts of the participating members and the remaining amount in Term Deposits y Minimum average quarterly relationship of Rs. 5 Lakhs in Encash 24 (Flexi Deposits) account. (2) STATEMENT OF THE PROBLEM:

To Study Customer satisfaction of priority customers, and ways to improvement in service of priority customers
(3) JUSTIFICATION FOR THE RESEARCH:

This study would be helpful to the company to increase customer satisfaction and maintain long time relationship with them . After the research, company and branch will know th at priority customers want also some new benefits or services.
(4) OBJECTIVES OF THE STUDY:

y To know in which area company has to improve the services y To identify benefit desired by priority customers y To find out the satisfaction level of priority customers y To understand the customers expectation from this service

(5) RESEARCH DESIGN

Research design is descriptive in nature. Quantitative research was carried out through questionnaire in order to get the data into figurative terms for analysis of customer behaviour.

(6) DETAILED RESEARCH METHODOLOGY

a. TARGET POPULATION: Any priority customer, either male or female, immaterial of their age of any occupation living in Gandhinagar, during the survey period of 6-7 weeks starting from June 02, 2010 (time).

b. SAMPLING FRAME: List of Priority Customers provided by the company,

which was further arranged in order.

c. SAMPLING TECHNIQUE:

There was a list of around 200 priority customers of Gandhinagar provided by the company, which was further arranged in the alphabetical order. Out of which 50 random customers were approached for collection of data. The sample was selected on random basis.
d. SAMPLE SIZE: 50 Customers e. SOURCES OF DATA: Primary data was collected through questionnaire and interview for further

information.
Secondary data was collected from printed sources from company records,

relevant articles and newspapers, journals and Internet.

f. SCOPE:

The period of study covers 6-7 weeks. The study was restricted to the priority customers of Gandhinagar.

g. FOR DATA ANALYSIS:

For the analysis of data, following statistical methods are applied.  Tabulation and classification  Weighted Average Method for analysis of rank order data

7. LIMITATIONS AND FUTURE SCOPE:

Following limitations had been faced for the project  Many customers refused to attend questionnaires, so while carrying out similar study in future company should also think of offering some gift along with questionnaire (Such as some reading material or stationery item) to the respondent to motivate them to attend such questionnaire. This activity may help to increase no. of respondents.

 The present study is based on a small sample size and a reas covered were Gandhinagar and only for one branch of Axis Bank, so future researcher can carry out similar study in other parts of region to have generalized opinions.

 The sample is skewed to a particular gender with more than 90% of the respondents being male, so future researcher can also look forward for maintaining equal ratio of Gender of the respondents to obtain generalized view.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1. You are a priority customer of Axis Bank for the last...

(1) 1 or less than 1 year (2) 2 years (3) 3 years (4) 4 or more than 4 years Numbers Percentage 1 or less than 1 year 25 50% 2 years 17 34% 3 years 4 8% 4 or more than 4 years 4 8% Total 50 100%

Cust
60

ers

50
40

30 customers
20

10
0

1 or less than 1 year

2 years

3 years

4 or more than 4 years

From the table, we observe that half of the customers became priority customers in last year; only 8% customers are using this service for the last 3 to 4 years. Company has a good chance to maintain the new customers for a long time, by providing good services and benefits compar e to other Banks. It is not like that 50% customers are new but, out of which, there are many customers shifted from normal saving account to priority account , it shows that more and more customers are becoming priority customers.

In Gandhinagar, majority customers occupation is Service, and it may possible that their service are transferable, that is why here we can find less customers who are using this service more than 4 years in same branch.

2. Which benefit customers like most........

This is an open ended question. There are various benefits available for priority customers like Home Banking, Banking Privileges, Preferred Rates on Loan Products, Dedicated Relationship Manager, Investment Privileges, Lifestyle Privileges, Gold Credit Card But majority customers like Dedicated Relationship Manager and Home banking Service.
3. Rank the benefit according the usage... Weight Benefits Rank
Dedicated Relationship Manager Home Banking Banking Privileges Preferred Rates on Loan Products Investment Privileges Lifestyle Privileges Gold Credit Card

7 1

6 2

5 3

4 4

3 5

2 6

1 7

Score Weighted score 275

27 22 1 0 0 0 0

11 30 4 3 2 0 0

4 2 18 12 7 3 4

0 2 11 15 15 3 4

0 0 10 14 15 7 4

0 4 3 3 9 11 20

0 0 5 5 2 19 19

360 206 191 172 89 107

From the table and graph, we observe that home banking got maximum score, it means we can say that most of the customers preferred to use home banking compare to other benefits. Life style privileges and gold credit card got minimum score; it means customers usage of these benefits is less compare to other benefits. If we see overall score, home banking comes first and lifestyle privileges comes last.

400

350
300 250

200
150

100 50
DC B A@ 98 7

e sc e

5. According to you, which other brand comes in your mind relating priority banking service?

Competitors H FC & ICICI H FC ICICI KOTAK MAHIN RA OTHER Total

Numbers 20 14 08 03 05 50

Percentage 40% 28% 16% 06% 10% 100%

OTHER BRAN
R S

AK MAHINDRA 6%

16%

From the table and pie chart we observe that majority customers replied H FC AN ICICI in answer, And also find that H FC and ICICI is major competitor of Axis Bank. Both banks provide priority banking service. More than 40% customers of bank, if they shift to other bank, they will surely join H FC or ICICI. In H FC and ICICI customers have to maintain average quarterly balance of Rs.2, 00,000 and 75,000 respectively. 6. As a Priority Customers, they are aware about the benefits which are available to them or not. When researcher asked the question that do you aware about all the benefits which are available to you , none of the customer replied yes.

YES NO Total

Numbers 00 50 50

HDF 28%

Percentage 00% 100% 100%

FEFEF

GHGH G

QPI

HER 10% HDF & 40%

AWARENESS ABOUT ALL THE BENEFITS

120
100

80 60
CUSTOMERS 40

20
0
UT

YES

From the table, we observe that none of the customers are aware about all the benefits available to them. Majority of customers are using only Dedicated Relationship Manager and Home Banking Service. They dont want to know other benefits, and ma jority customers said that main benefit to become priority customer is cash and cheque pick up from the home, and separate counter for priority customers.

7. What benefits Axis bank should add?

This is an open ended question, and respondents reply that these benefits Axis Bank should add.
y Charges on services priority customers are lesser than normal customers y Life style privileges can be availed at Gandhinagar y Discount on movie tickets should available at Gandhinagar. y Medical and health benefit y Insurance of whole family at a nominal charges

y Free SMS facilities for any amount, debit or credit in saving bank account y Locker facility at free of cost or nominal rate y Exclusive iscount for priority customers in retail store like Big Bazaar or Reliance Mart or -Mart

y Per day withdrawal limit from the ATM should increase y Free credit card
8. Does Bank provide or guide for investment purpose?

YES NO Total

Numbers 47 03 50

Percentage 94% 6% 100%

NO 6%

YES 94%

Majority customers said that bank guides for investment purpose according to the term and expected rate of return.
11. What should bank do for improving services... y More than half of the customers replied that service of axis bank is very good, and they are satisfied with banks services. y But there are some customers who gave suggestion to improve banking service... y Bank time should extent for priority customers, at least half an hour. y Bank should suggest some investment/mutual fund plan to priority customers according to their requirement and expected rate of return. y Introduce token system for receipts and payments. 12. Rate the customers level of satisfaction in regards to customer service...

1 = Extremely dissatisfied 5 = Extremely Satisfied Rate 1 2 3 4 5 Total Numbers 00 04 05 30 11 50 Percentage 00% 08% 10% 60% 22% 100%

Rate
2 8
V W

1 0 5 22

From the table and pie chart, we observe that 60% of customers gave 4 rate out of 5. And 22% customers gave 5 rate put of 5, so it is clear that customers level of satisfaction is higher and customers are very satisfied. If we see the overall satisfaction of customers, it is also near to 4 out of 5, it means most of the customers satisfaction level is higher. Only 8% customers gave 2 out of 5 rate, means only few customers are dissatisfied.

4 60

3 10

13. How customers recommend Axis bank to a friend or relative... Excellent, Very good, Good, Fair, or Poor

Recommend to others Excellent Very good Good Fair Poor Total

Numbers 17 28 5 00 00 50

Percentage 34% 56% 10% 00% 00% 100%

Reco
60%

end to others

50%
40%

20%

10%
0%
d a cb a ` Y XX

Exce e

Ve y good

Good

oor

From the table and graph, it is clear that customers are satisfied with the services of bank, none of the customers told poor or fair. Word of mouth publicity is more effective than other way of publicity, so it is good for Axis Bank that about 34% customers told Excellent and 56% customers told good.

30%

Recomme d to others

14. Overall how satisfied with their most recent experience with Bank customer support.. 1 = Very dissatisfied, 9 = Very Satisfied Rate 6 7 8 9 Numbers 3 5 25 17 Percentage 6% 10% 50% 34%

Overall atisfaction

50 40 30
20

10 0
7
f

Overall Satis action

f

Overall Satis action

8
g

From the graph, we observe that more than half of the customers gave 8 out of 9 rate, and 34% customers gave 9 out of 9 rate means they are fully satisfied with the bank service. Only 6% customers gave 6 put of 9 rate, and most of the customers gave 7 out of 9 rate, and none of the customers gave less than 6. It means most of the priority customers are satisfied with bank service. Thus, it is good for the Gandhinagar Branch of Axis Bank that, customers are good satisfied with their recent experience with Bank customer support.

Recent experience with customer support is depends on the employees of the bank, how they provided services to the customers.
15. Which benefit customers avail from these?

Discount on Membership, Free movie ticket, eye care product, Dr batras services or none of the above. But when this question was asked, none of the customers reply that they are using and availing benefits from them, because most of the life style privileges do not available at Gandhinagar, So from this question, researcher found that majority customers demanded that bank should provide these privileges at Gandhinagar so that it will be used.
16. In total, how long you have been a customer of Axis bank?

This question is necessary to check the customer loyalty, if customer want to remain with the company for more time period, we can say that this customer is loyal customer for the company, in banking industry, customer remain with bank for a long time is very important, so bank should motivate the customer to loyal with the company.

Years Less than 1 1 to 3 3 to 5 5 to 10 More than 10 Total

Numbers 01 03 30 11 05 50

Percentage 02% 06% 60% 22% 10% 100%

From the graph and table, we observe that, only 2% customer will remain with bank for less than 1 year, we can see that 60% customer will remain with bank for more than 3 years, It is good for the company and Gandhinagar Branch that majority of priority customer are loyal to the company.

Custo er lo alt
less than 1 1 to 3 3 to 5
2%

5 to 10

More than 10

10% 22%

6%

60%

There are certain customers who are most loyal to the company; Gandhinagar Branch also has 10% that type of priority customers who are loyal as well as profitable. For getting loyal customers and remain with the company, they should be provided good services by the company.

17. Customer are fully utilising the benefits or not.... When this question was asked by researcher, none of the customer said that they are fully utilising the benefits, And majority customers are using only Home Banking Service. edicated Relationship Manager and

18. Customers are using net banking or not... Net banking facility is provided to all the priority customers, by this facility, customers can transfer money from their account, bill payment, balance inquiry, account information etc.

YES NO Total

Numbers 35 15 50

Percentage 70% 30% 100%

Net Bankin
70 60

ervice

50 40 30
20 10 0 Net Banking Service

YES

NO

From the graph, we observed that about 70% customers are using net banking; majority customers are using net banking.

19. Customers are using debit card for purchase or not....

YES NO Total

Numbers 39 11 50

Percentage 78% 22% 100%

Debit Card
YES NO

22%

78%

It is clear from the pie chart that, about 78% customers are using debit card for purchase, Here company can give some discount, if the purchase increase beyond some limit, Or company can give some points for each purchase and at the end of some points company should give some discounts.

There is no charge on purchasing by debit card but company can give some more benefits or discounts so that satisfaction of customer will increase.

21. Customers (They) are priority customer of another bank or not.....

Researcher has found that there is no single customer are priority customer of another bank, so it is good for Gandhinagar branch and they should give maximum service to their priority customers so that they will remain with bank. In Gandhinagar, HDFC, ICICI, KOTAK MAHINDRA BANK are giving this service.

24. In a year, how many times customers are travelling by air?

Times 0 1 2 to 4 More than 4 Total

Numbers 16 15 11 08 50

Percentage 32% 30% 22% 16% 100%

Travel y Air (i ti es)

35 30
h s r pq p i i i i h

25 20
15

Travel by Air

10 5
0

From the graph researcher observed that on an average every customer is travelling by air at least once in a year.

h h

2t 4

re t a 4

This question was asked because if more respondents travelled by air, then company can give some discount to priority customers on travelling by air. If company give some discount to their customers, customers satisfaction will increase and customer loyalty will increase. 22% customers are travelling by air 2 to 4 times, and 16% customers are travelling more than 4 times in a year.

26. According to the customers, which type of events bank should organise?

Axis Bank organise events for priority customers every year, with the help of this question company will aware about what type of another events bank should organise. So Bank should organise these types of events according to the customers...
y Event for customers children y Special event for Senior Citizen y Small Party for customers y Free movie day y Free cricket match ticket y Get together 27. How many times customer use door/home service for transaction in a year?

Most of the customers are using home service for collecting or depositing cash or cheque. For that purpose bank representative comes home and collect cheque/cash, no need to come at bank.

Times 0 to 10 10 to 20 20 to 30 More than 30 Total

Numbers 17 28 04 01 50

Percentage 34% 56% 08% 02% 100%

Door/Ho e service (ti es

20 to 30 8% More than 30 2%

0 to 10 34%

10 to 20 56%

Form the table; it is clear that more than half of the customers are using oor/Home service facilities 10 to 20 times in a year. Only 2% customers are using this facility, more than 30 times. oor/Home service is free of charge for priority customers.

28. Customers are using platinum or not... Numbers YES NO Total 15 35 50 Percent age 30% 70% 100%

In platinum card, customers are getting free accident insurance of Rs.10, 00,000 and customers are allowed to withdraw up to Rs. 50,000 per day from the ATM. For this card customer have to pay charges every month. From the table we analyse that, currently 30% customers are using this card, and annually charge is same for both normal customers and priority customers. To increase this card holder bank should introduce some schemes promotional schemes.

PLATINUM CARD USER

70

60
50 40
u

PLTINU

CARD USER

30
20

0 YES NO

CHAPTER 5 FINDINGS, CONCLUSIONS & RECOMMENDATIONS

[5.1] FINDING FROM THE STUDY: y High satisfaction level: From survey it is clear that majority of the Priority

Customers are satisfied with services of Axis Bank, and majority of customers uses dedicated relationship manager and home banking service.

y Priority customers are very important for the bank, so their satisfaction level

should be higher, most of the customers are using only dedicated relationship manager and home banking and they are satisfied with the bank service though they are not fully utilise all the benefits.

y From this study it was found that most of the lifestyle benefits are not

available at Gandhinagar, so usage of lifestyle privileges are less.

y 8% customers are using this service for the last 3 to 4 years. y Most of the customers are travelled by air, at least once in a year. y More than half of the customers said ICICI and HDFC are close

competitors of the AXIS Bank.

y Most of the customers are not aware about lifestyle benefits.

y 56% customers recommend service of axis bank as very good and about

34% customers recommend as Excellent to their relatives and friends.

y More than 60% customers are most loyal customers and they will remain

with axis bank for more than 10 years

y None of the customers are fully utilising given benefits y Majority customers are not fully utilising benefits/services becaus e Most of the customers dont aware about all the benefits.

y Free movie ticket benefits are available for priority customers, but customers of Gandhinagar branch can not avail it, due non availability of FUN CINEMA, so bank should provide alternate bene fits.

y 70% priority customers are using net banking service y About 80% customers are using Debit card for purchase

y None of the customer of axis bank is priority customers of another bank y More than half of the customers are using door/home service more than 10

times in a year
y About 30% customers are using platinum card.

[5.2] Recommendations and Conclusion

The project with bank is Priority banking service of Axis Bank. There is intense competition in banking sector, now a days, even pu blic sector bank also take care about their customers. Customer satisfaction is key to success in banking sector. Each and every bank is focusing on improvement in services. So banks must give good services to their customers so that satisfaction level of customers increases.
y All lifestyle benefits are provided to priority customers to increase satisfaction level. y There are certain benefits and schemes which bank can introduce for priority customers such as:

o Charges on services priority customers are lesser than normal customers o Medical and health benefit o Insurance of whole family at a nominal charges o Free SMS facilities for any amount, debit or credit in saving bank account o Locker facility at nominal rate for priority customers o Free credit card for priority customers o Exclusive Discount for priority customers in retail store like Big Bazaar or Reliance Mart or D-Mart
y Some of the priority customers are using net banking and debit card for purchase, so bank can give some benefits or discount on pu rchase to increase customer satisfaction.

y Bank should organise Small Party for customers or free movie day for priority customers. y Most of the customers are travelled by air at least once in a year, so bank can introduce discount for also who travelled by air.

y Bank organise event for priority customers, they want some new events

like o Event for customers children o Special event for Senior Citizen o Small Party for customers o Free movie day o Free cricket match ticket , Get together
y In some family, there are more than 2 priority customers, instead of sending 2 or 3 annually or quarterly magazine, bank should send only one magazine per family to save paper. y 30% priority customers are using platinum card so bank should motivate the customers to use platinum card. y Bank time should extent for priority customers, at least half an hour.

In conclusion researcher can say that priority customers of axis bank Gandhinagar branch are highly satisfied, so they will remain with axis for long time. And more than half of the customers are loyal customers. But they want some new benefits which can be used by them at Gandhinagar.

Bibliography and Websites Bibliography

Annual Report of Axis(2010). Annual Report. Axis Bank. Kevin Lane Killer, P. K. (2006). Marketing Management. Pearsion Education. Pamela S Schindler, D. R. (2008). Business Research Methodology. The Mcgraw-Hill Company ltd.

http://business.mapsofindia.com/banks -in-india/axis-bank.html June 18 2010 http://www.axisbank.com/prioritybanking/index.asp June 22 2010

http://www.scribd.com/doc/23575900/Axis -Bank June 25 2010

http://www.scribd.com/doc/24871727/Axis-Bank July 12 2010

Questionnaire
Survey on Priority Banking of Axis Bank.
Name:Occupation:Contact No.:1. You are a priority customer of axis bank for the last....

( ( ( (

) 1 or less than 1 year ) 2 years ) 3 years ) 4 or more than 4. years

2. Which benefit you like most? _____________________________________ 3. Rank the benefit according to your usage.

( ( ( ( ( ( (

) Dedicated Relationship Manager ) Home Banking ) Banking Privileges ) Preferred Rates on Loan Products ) Investment Privileges ) Lifestyle Privileges ) Gold Credit Card

4. Do you feel that bank communicated the features and benefits of your account clearly?

( ) Yes

( ) No

5. According to you, which other brand comes in your mind relating priority banking service?

( ( ( (

) HDFC ) ICICI ) KOTAK MAHINDRA BANK ) OTHER _______________

6. Do you aware about the all benefits which are available to you?

( ) Yes

( ) No

7. Which benefits Axis Bank should add?

(1)________________________ (2)________________________ (3)________________________ (4)________________________

8. Does Bank provide or guide for investment purpose?

( ) Yes

( ) No

9. Are you aware about the benefits which provided by competitors?

( ) Yes

( ) No

10. If yes then, which benefits you like in competitor's bank?

(1)________________________ (2)________________________ (3)________________________ (4)________________________ (5)________________________

11. What should bank do for improving services?

(1)________________________ (2)________________________ (3)________________________ (4)________________________ (5)________________________

12. a scale of 1 to 5 where 1 represents "Extremely dissatisfied" and 5 represents "Extremely Satisfied," how would you rate your level of satisfaction with Axis Bank in regards to customer service ?

1( )

2( )

3( )

4( )

5( )

13. Likely are you to recommend Axis Bank to a friend or relative? Would you say the chances are

( ( ( ( (

) ) ) ) )

Excellent Very Good Good Fair Poor

14. Overall, how satisfied are you with your most recent experience with Bank customer support?
Very Dissatisfied 1 2 3 4 Neutral 5 6 7 8 Very Satisfied 9

15. Which benefit you avail from these?

( ( ( ( (

) discount on membership ) free movie tickets ) eye care product ) Dr Batra services ) None

16. In total, how long have you been a customer of Axis Bank?

( ( ( ( (

) Less than one year ) One to under three years ) Three to under five years ) Five to under ten years ) Ten years or more

17. Are you fully utilising the benefits/services given to you?

( ) Yes

( ) No

18. Do you use net banking?

( ) Yes

( ) No

19. Do you use debit card for purchase?

( ) Yes

( ) No

20. Does Bank update you by providing or informing latest promotional schemes?

( ) Yes

( ) No

21. Are you a priority customer of another bank?

( ) Yes

( ) No

22. Do you have account in another Bank?

( ) Yes

( ) No

23. If yes, then in which banks? _________________ ___ ____________________ ____________________ ____________________ 24. In a year, how many times you travelled by Air?

( ) 0 times ( ) 2 to 4 times

( ) 1 time ( ) More than 4 times

25. Bank organise events for priority customers, did you attend?

( ) Yes

( ) No

26. According to you, which type of events, Bank should organise?

______________________________________ ______________________________________ ______________________________________

27. How many times you use door/home service for transaction in a year ?

( ) 0 to 10 times ( ) 20 to 30 times

( ) 10 to 20 times ( ) More than 30 times

28. Are you using platinum card?

( ) Yes

( ) No