Study On Customer Relationship Management Practices Employed By Private Sector Bank & It’s Effect on Customer Satisfaction

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A
Comprehensive Project Report
On
“Study On Customer Relationship Management Practices Employed By Private
Sector Bank
&
It’s Effect on Customer Satisfaction”
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
IN
Gujarat Technological University, Ahmadabad
Submitted to
Shri Chimanbhai Patel Institution Of Management & Research
Under the Guidance of
Prof. Mayank Bhatia
Assistant Professor
Submitted by
(Batch: 2013-15)
MBA SEMESTER-III-IV
Name Er. No.
Pranav Jain 137680592048
Hingal Satyadev 137680592120

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INDEX
Sr. No Particular Page no.
PART – I GENERAL INFORMATION 01
1 About The Banking Sector 01
2 History of Banking 02
3 Banking activities 03
4 Banking as Business model 08
5 Overview of World Market 10
6 Overview & Growth Banking in Indian Market 14
7 About major banks in India 17
8 Product Profile 28
PART – II PRIMARY STUDY 29
9 Introduction of the Study
Literature Review 29
Background of the Study 32
Problem Statement of the Study 33
Objectives of the Study 34
Hypothesis 35
10 Research Methodology 36
Research Design 37
Source/s of Data 38
Data Collection instrument 39
Population 40
Sampling Method 40
Limitations of the Study 41
11 Data Analysis and Interpretation 42
12 Findings 77
13 Conclusion/Suggestions 78
14 References 79
15 Annexure 81

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LIST OF TABLES
Table no. Particular Page no.
1 List of the largest banks in the world as measured by
total assets
17
2 List of the largest banks in the world, Banks by
country
18
3 List of the largest banks in the world By market
capitalization
19
4 State bank of India 24
5 HDFC bank 25
6 Axis bank 26
7 Bank of India 27
8 Punjab National Bank 28
9 Bank of baroda 29
10 ICICI Bank Limited 30
11 Union Bank of India 31
12 Citibank 32
13 Canara Bank 33

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About The Banking Sector
A bank is a financial intermediary that accepts deposits and channels those
deposits into lending activities, either directly by loaning or indirectly
through capital markets. A bank links customers that have capital deficits and
customers with capital surpluses.
Due to their importance in the financial system and influence on
national economies, banks are highly regulated in most countries. Most nations
have institutionalized a system known as fractional reserve banking, under which
banks hold liquid assets equal to only a portion of their current liabilities. In
addition to other regulations intended to ensure liquidity, banks are generally
subject to minimum capital requirements based on an international set of capital
standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the rich cities
of Renaissance Italy but in many ways was a continuation of ideas and concepts
of credit and lending that had its roots in the ancient world. In the history of
banking, a number of banking dynasties—notably the Medicis, the Fuggers, -
the Welsers, the Berenbergs, and the Rothschilds—have played a central role over
many centuries. The oldest existing retail bank is Monte dei Paschi di Siena,
while the oldest existing merchant bank is Berenberg Bank.

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History of banking
The origins of modern banking can be traced to medieval and
early Renaissance Italy, to the rich cities in the north
like Florence, Lucca, Siena, Venice and Genoa.
The Bardi and Peruzzifamilies dominated banking in 14th century Florence,
establishing branches in many other parts of Europe.
One of the most famous Italian banks was the Medici Bank, set up by Giovanni di
Bicci de' Medici in 1397.
The earliest known state deposit bank, Banco di San Giorgio (Bank of St.
George), was founded in 1407 at Genoa, Italy.
Modern banking practice, including fractional reserve banking and the issue
of banknotes, emerged in the 17th and 18th centuries.
Merchants started to store their gold with the goldsmiths of London, who
possessed private vaults, and charged a fee for that service. In exchange for each
deposit of precious metal, the goldsmiths issued receipts certifying the quantity
and purity of the metal they held as a bailee; these receipts could not be assigned;
only the original depositor could collect the stored goods.

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The Bank of England was the first to begin the permanent issue of banknotes, in
1695.
The Royal Bank of Scotland established the first overdraft facility in 1728.
By the beginning of the 19th century a bankers' clearing house was established in
London to allow multiple banks to clear transactions.
The Rothschild's pioneered international finance on a large scale, financing the
purchase of the Suez Canal for the British government.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered
in Siena, Italy, which has been operating continuously since 1472. It is followed
by Berenberg Bank of Hamburg (1590) and Sveriges Riksbank of Sweden
(1668).1
1
http://en.wikipedia.org/wiki/Bank#Globalization_in_the_Banking_Industry

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Banking activities
Standard activities:
Banks act as payment agents by conducting checking or current
accounts for customers, paying cheques drawn by customers on the bank,
and collecting cheques deposited to customers' current accounts. Banks
also enable customer payments via other payment methods such
as Automated Clearing House (ACH), Wire transfers or telegraphic
transfer, EFTPOS, and automated teller machine (ATM).
Banks borrow money by accepting funds deposited on current accounts, by
accepting term deposits, and by issuing debt securities such
as banknotes and bonds. Banks lend money by making advances to
customers on current accounts, by making instalment, and by investing in
marketable debt securities and other forms of money lending.
Banks provide different payment services, and a bank account is
considered indispensable by most businesses and individuals. Non-banks
that provide payment services such as remittance companies are normally
not considered as an adequate substitute for a bank account.
Banks can create new money when they make a loan. New loans
throughout the banking system generate new deposits elsewhere in the
system. The money supply is usually increased by the act of lending, and
reduced when loans are repaid faster than new ones are generated. In the
United Kingdom between 1997 and 2007, there was a big increase in the
money supply, largely caused by much more bank lending, which served
to push up property prices and increase private debt. The amount of money
in the economy as measured by M4 in the UK went from £750 billion to
£1700 billion between 1997 and 2007, much of the increase caused by

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bank lending. If all the banks increase their lending together, then they can
expect new deposits to return to them and the amount of money in the
economy will increase. Excessive or risky lending can cause borrowers to
default, the banks then become more cautious, so there is less lending and
therefore less money so that the economy can go from boom to bust as
happened in the UK and many other Western economies after 2007.

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Range of activities:
Activities undertaken by large banks include
investment banking
corporate banking
private banking
insurance
consumer finance
foreign exchange trading
commodity trading
trading in equities
Futures and options trading and money market trading.

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Channels:
Banks offer many different channels to access their banking and other services:
• Automated Teller Machines
• A branch is a retail location
• Call center
• Mail: most banks accept cherub deposits via mail and use mail to communicate to
their customers, e.g. by sending out statements
• Mobile banking is a method of using one's mobile phone to conduct banking
transactions
• Online banking is a term used for performing multiple transactions, payments etc.
over the Internet
• Relationship Managers, mostly for private banking or business banking, often
visiting customers at their homes or businesses
• Telephone banking is a service which allows its customers to conduct transactions
over the telephone with automated attendant or when requested with telephone
operator
• Video banking is a term used for performing banking transactions or professional
banking consultations via a remote video and audio connection. Video banking
can be performed via purpose built banking transaction machines (similar to an
Automated teller machine), or via a video conference enabled bank branch
clarification
• DSA is a Direct Selling Agent, who works for the bank based on a contract. Its
main job is to increase the customer base for the bank.

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Banking as Business model
A bank can generate revenue in a variety of different ways including interest,
transaction fees and financial advice. The main method is via charging interest on
the capital it lends out to customers. The bank profits from the difference between
the level of interest it pays for deposits and other sources of funds, and the level of
interest it charges in its lending activities.
This difference is referred to as the spread between the cost of funds and the loan
interest rate. Historically, profitability from lending activities has been cyclical
and dependent on the needs and strengths of loan customers and the stage of the
economic cycle. Fees and financial advice constitute a more stable revenue stream
and banks have therefore placed more emphasis on these revenue lines to smooth
their financial performance.
In the past 20 years American banks have taken many measures to ensure that
they remain profitable while responding to increasingly changing market
conditions.
• First, this includes the Gramm-Leach-Bliley Act, which allows banks again to
merge with investment and insurance houses. Merging banking, investment, and
insurance functions allows traditional banks to respond to increasing consumer
demands for "one-stop shopping" by enabling cross-selling of products (which,
the banks hope, will also increase profitability).
• Second, they have expanded the use of risk-based pricing from business lending to
consumer lending, which means charging higher interest rates to those customers
that are considered to be a higher credit risk and thus increased chance
of default on loans. This helps to offset the losses from bad loans, lowers the price
of loans to those who have better credit histories, and offers credit products to
high risk customers who would otherwise be denied credit.
• Third, they have sought to increase the methods of payment processing available
to the general public and business clients. These products include debit cards,

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prepaid cards, smart cards, and credit cards. They make it easier for consumers to
conveniently make transactions and smooth their consumption over time (in some
countries with underdeveloped financial systems, it is still common to deal strictly
in cash, including carrying suitcases filled with cash to purchase a home).
However, with convenience of easy credit, there is also increased risk that consumers
will mismanage their financial resources and accumulate excessive debt. Banks make
money from card products through interest charges and fees charged to cardholders,
and transaction fees to retailers who accept the bank's credit and/or debit cards for
payments.
This helps in making profit and facilitates economic development as a whole.

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Overview of World Market
In modern time there have been huge reductions to the barriers of global
competition in the banking industry. Increases in telecommunications and other
financial technologies, such as Bloomberg, have allowed banks to extend their
reach all over the world, since they no longer have to be near customers to manage
both their finances and their risk. The growth in cross-border activities has also
increased the demand for banks that can provide various services across borders to
different nationalities. However, despite these reductions in barriers and growth in
cross-border activities, the banking industry is nowhere near as globalized as some
other industries.
In the vast majority of nations around globe the market share for foreign owned
banks is currently less than a tenth of all market shares for banks in a particular
nation. One reason the banking industry has not been fully globalized is that it is
more convenient to have local banks provide loans to small business and
individuals. On the other hand for large corporations, it is not as important in what
nation the bank is in, since the corporation's financial information is available
around the globe.
These are lists of the largest banks in the world, as measured by
total assets and market capitalization2
2
http://en.wikipedia.org/wiki/List_of_largest_banks

Table no.1: lists of the largest
Rank Bank name
1
Industrial & Commercial Bank of China
(ICBC)
2 HSBC
3 China Construction Bank Corporation
4 BNP Paribas
5 Mitsubishi UFJ Financial Group
6 JPMorgan Chase & Co
7 Agricultural Bank of China
8 Bank of China
9 Crédit Agricole Group
10 Barclays PLC
11 Deutsche Bank
12 Bank of America
13 Japan Post Bank
14 Citigroup Inc
15 Société Générale
16 Mizuho Financial Group
17 Royal Bank of
18 Banco Santander
19 Sumitomo Mitsui Financial Group
20 Group BPCE
Table 2: Banks by country
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lists of the largest banks in the world, as measured by total
Bank name
Industrial & Commercial Bank of China
HSBC Holdings
China Construction Bank Corporation
BNP Paribas
Mitsubishi UFJ Financial Group
JPMorgan Chase & Co
Agricultural Bank of China
Bank of China
Crédit Agricole Group
Barclays PLC
Deutsche Bank
Bank of America
Japan Post Bank
Citigroup Inc
Société Générale
Mizuho Financial Group
Royal Bank of Scotland Group
Banco Santander
Sumitomo Mitsui Financial Group
Group BPCE
Banks by country
in the world, as measured by total assets
Total Assets
(US$ billions)
3,181.88
2,758.45
2,602.54
2,589.19
2,508.84
2,476.99
2,470.43
2,435.49
2,346.56
2,266.82
2,250.64
2,149.85
1,968.27
1,894.74
1,740.75
1,708.86
1,703.96
1,607.24
1,569.99
1,567.88

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Rank
Country
1 China
2 United States
3 Japan
4 Germany
5
United
Kingdom
5 France
7 Canada
8 Australia
8 Brazil
8 Italy
8 South Korea
8 Spain
8 Sweden
15
Country
Number of banks in the top 100 banks by
total assets (2013)
China 17
United States 10
Japan 8
Germany 7
United
Kingdom
6
France 6
Canada 5
Australia 4
Brazil 4
Italy 4
South Korea 4
Spain 4
Sweden 4
Number of banks in the top 100 banks by

Table 3: By market capitalization
Rank Bank name
1 Wells Fargo & Co
2 JP Morgan Chase & Co
3 ICBC
4 HSBC Holdings
5 Bank of America
6 China Construction Bank
7 Citigroup Inc
8 Agricultural Bank of China
9 Bank of China
10 Commonwealth Bank of Australia
11 Banco Santander
12 Allied Irish Banks plc
13 Westpac
14 BNP Paribas
15 Royal Bank of Canada
16 Lloyds Banking Group
17 Toronto
18
Australia and New Zealand Banking
(ANZ)
19
(MUFG)
20 US Bancorp
16
By market capitalization
Bank name
Market
capitalization
(US$
Wells Fargo & Co 261.72
JP Morgan Chase & Co 229.90
CBC 196.21
HSBC Holdings 191.43
Bank of America 181.77
China Construction Bank 160.83
Citigroup Inc 144.63
Agricultural Bank of China 126.41
Bank of China 115.92
Commonwealth Bank of Australia 131.53
Banco Santander 110.57
Allied Irish Banks plc 104.81
Westpac 99.22
BNP Paribas 96.03
Royal Bank of Canada 95.18
Lloyds Banking Group 90.92
Toronto-Dominion Bank 86.49
Australia and New Zealand Banking
83.25
(MUFG)
78.45
US Bancorp 78.11
Market
capitalization
(US$ billions)
261.72
229.90
196.21
191.43
181.77
160.83
144.63
126.41
115.92
131.53
110.57
104.81
99.22
96.03
95.18
90.92
86.49
83.25
78.45
78.11

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Overview & Growth Banking in Indian Market
In 1951, in the backdrop of central planning and the need to extend bank credit to
the rural areas, the Government constituted All India Rural Credit Survey
Committee, which recommended the creation of a state sponsored institution that
will extend banking services to the rural areas.
Following this, by an act of parliament passed in May 1955, State Bank of India
was established in Jul, 1955. In 1959, State Bank of India took over the eight
former state-associated banks as its subsidiaries. To further accelerate the credit to
flow to the rural areas and the vital sections of the economy such as agriculture,
small scale industry etc., that are of national importance, Social Control over
banks was announced in 1967 and a National Credit Council was set up in 1968 to
assess the demand for credit by these sectors and determine resource allocations.
The decade of 1960s also witnessed significant consolidation in the Indian
banking industry with more than 500 banks functioning in the 1950s reduced to 89
by 1969.
For the Indian banking industry, Jul 19, 1969, was a landmark day, on which
nationalization of 14 major banks was announced that each had a minimum of Rs
500 and above of aggregate deposits. In 1980, eight more banks were
nationalized. In 1976, the Regional Rural Banks Act came into being, that allowed
the opening of specialized regional rural banks to exclusively cater to the credit
requirements in the rural areas. These banks were set up jointly by the central
government, commercial banks and the respective local governments of the states
in which these are located.
The period following nationalization was characterized by rapid rise in banks
business and helped in increasing national savings. Savings rate in the country
leapfrogged from 10-12% in the two decades of 1950-70 to about 25 % post
nationalization period. Aggregate deposits which registered annual growth in the
range of 10% to 12% in the 1960s rose to over 20% in the 1980s. Growth of bank

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credit increased from an average annual growth of 13% in the 1960s to about 19%
in the 1970s and 1980s. Branch network expanded significantly leading to
increase in the banking coverage.
Indian banking, which experienced rapid growth following the nationalization,
began to face pressures on asset quality by the 1980s. Simultaneously, the banking
world everywhere was gearing up towards new prudential norms and operational
standards pertaining to capital adequacy, accounting and risk management,
transparency and disclosure etc. In the early 1990s, India embarked on an
ambitious economic reform program in which the banking sector reforms formed
a major part. The Committee on Financial System (1991) more popularly known
as the Narasimham Committee prepared the blue print of the reforms. A few of
the major aspects of reform included (a) moving towards international norms in
income recognition and provisioning and other related aspects of accounting (b)
liberalization of entry and exit norms leading to the establishment of several New
Private Sector Banks and entry of a number of new Foreign Banks (c) freeing of
deposit and lending rates (except the saving deposit rate), (d) allowing Public
Sector Banks access to public equity markets for raising capital and diluting the
government stake,(e) greater transparency and disclosure standards in financial
reporting (f) suitable adoption of Basel Accord on capital adequacy (g)
introduction of technology in banking operations etc. The reforms led to major
changes in the approach of the banks towards aspects such as competition,
profitability and productivity and the need and scope for harmonization of global
operational standards and adoption of best practices. Greater focus was given to
deriving efficiencies by improvement in performance and rationalization of
resources and greater reliance on technology including promoting in a big way
computerization of banking operations and introduction of electronic banking.
The reforms led to significant changes in the strength and sustainability of Indian
banking. In addition to significant growth in business, Indian banks experienced
sharp growth in profitability, greater emphasis on prudential norms with higher
provisioning levels, reduction in the non performing assets and surge in capital
adequacy. All bank groups witnessed sharp growth in performance and
profitability. Indian banking industry is preparing for smooth transition towards

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more intense competition arising from further liberalization of banking sector that
was envisaged in the year 2009 as a part of the adherence to liberalization of the
financial services industry.

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About major banks in India:
Following is the list of top 10 banking companies in India:
State bank of India
HDFC bank
Axis bank
Bank of India
Punjab National Bank
Bank of Baroda
ICICI Bank Limited
Union Bank of India
Citibank
Canara Bank

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Table 4:State Bank of India (Figures (2010-11) are in crore, unless specified other)
No. of offices 11447
No. of employees 205896
Business per employee (in ` lakh) 556.00
Profit per employee (in ` lakh) 4.74
Capital and Reserves & surplus 57948
Deposits 742073
Investments 275954
Advances 542503
Interest income 63788
Other income 12691
Interest expended 42915
Operating expenses 15649
Cost of Funds (CoF) 5.85
Return on advances adjusted to CoF 3.83
Wages as % to total expenses 16.64
Return on Assets 1.04
CRAR 14.25
Net NPA ratio 1.76

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Table 5: HDFC Bank (Figures (2010-11) are in crore, unless specified other)
No. of offices 1400
Deposits 142812
Investments 58818
Advances 98883
Other income 3291
CRAR 15.69
Net NPA ratio 0.63

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• Table 6 : Axis Bank (Figures (2010-11) are in crore, unless specified other)
No. of offices 786
Deposits 117374
Investments 46330
Advances 81557
Other income 2897
CRAR 13.69
Net NPA ratio 0.40

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Table 7: Bank of India (Figures (2010-11) are in crore, unless specified other)
No. of offices 2934
Deposits 189708
Investments 52607
Advances 142909
Other income 3052
CRAR 13.01
Net NPA ratio 0.44

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Table 8: Punjab National Bank (Figures (2010-11) are in crore, unless specified
other)
No. of offices 4323
Deposits 209760
Investments 63385
Advances 154703
Other income 2920
CRAR 14.03
Net NPA ratio 0.17

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Table 9: Bank of Baroda (Figures (2010-11) are in crore, unless specified other)
No. of offices 2916
Deposits 192397
Investments 52446
Advances 143986
Other income 2758
CRAR 14.05
Net NPA ratio 0.31

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Table 10: ICICI Bank Limited (Figures (2010-11) are in crore, unless specified
other)
No. of offices 1408
Deposits 218348
Investments 103058
Advances 218311
Other income 7604
CRAR 13.96
Net NPA ratio 2.09

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Table 11: Union Bank of India (Figures (2010-11) are in crore, unless specified
other)
No. of offices 2569
Deposits 138703
Investments 42997
Advances 96534
Other income 1483
CRAR 12.01
Net NPA ratio 0.34

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Table 12: Citibank (Figures (2010-11) are in crore, unless specified other)
No. of offices 41
Deposits 51677
Investments 24519
Advances 39920
Other income 3582
CRAR 13.23
Net NPA ratio 2.63

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Table 13: Canara Bank (Figures (2010-11) are in crore, unless specified other)
No. of offices 2740
Deposits 186893
Investments 57777
Advances 138219
Other income 2311
CRAR 14.1
Net NPA ratio 1.09

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Product Profile (Major Products)
Retail banking
Checking account
Savings account
Money market account
Certificate of deposit (CD)
Individual retirement account (IRA)
Credit card
Debit card
Mortgage
Mutual fund
Personal loan
Time deposits
ATM card
Current Accounts
Cheque books
Business (or commercial/investment) banking
Business loan
Capital raising (Equity / Debt / Hybrids)
Mezzanine finance
Project finance
Revolving credit
Risk management (FX, interest rates, commodities, derivatives)
Term loan
Cash Management Services (Lock box, Remote Deposit Capture, Merchant
Processing)
credit services

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Introduction of the Study
Literature Review
• Bennett (1996) describes that CRM seeks to establish a long-term, (Bennet,
2014)committed, trusting and cooperative relationship with customers,
characterized by openness, genuine concern for the delivery of high quality
services, responsiveness to customer suggestions, fair dealings and willingness
to sacrifice short-term advantage for long-term gains.
• Knox et al. (2003) address that CRM is a strategic approach designed to
improve stakeholder value (the value the customer receives, the value the
organization receives, and the customer retention and its economics) through
developing appropriate relationships with key customers and customer
segments and through channel and media integration (channel and media
suitability, channel and media structure, and multichannel and multimedia
integration). CRM unites the potential of IT and relationship marketing to
deliver profitable, long-term relationships.
• It has been observed by Hedley et al. (2006) that 2015 will present tremendous
challenges to the retail banking industry. Customers will become increasingly
individualistic and, at the same time, more controlling in their relationships
with banks. For banks, traditional segmentation approaches and go-to-market
techniques will become obsolete. How retail banks compete in the
marketplace will also change dramatically.
• Bargal et al. (2008) added that banks will have to adopt diversified services,
open their branches at the shopping canter, install their web system,
implement proper training system, and define high performance system to
improve the behaviour of the employees, offer proper customer complaint

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system and performance-based appraisal system to improve the overall
services of the banks. Customers play an important role in the selection of a
particular bank. Today, proper customer care, number of years in business and
easy accessibility are considered as the important factors that influence a
customer’s choice of a bank (Dhade and Mittal, 2008).
• Das et al. (2009) explores the association between deployment of CRM best
practices and loyalty of profitable customers in Indian retail banking. They
developed the best CRM practices which may be helpful to the organizations
toward achieving comprehensive CRM deployment. The study reveals that
State Bank of India and Bank of Baroda are lagging behind their counterparts
from other sectors regarding deployment of the best practices.
• Morpace Reports (2008) and Teller Vision (2009) state that the perception of
banks varies depending on their size. However, all banks share the same key
opportunity for improvement in customer satisfaction that is, helping
customers achieve their financial goals. But as per the study, the overall
customer satisfaction tends to decrease as bank size increases. That is,
customers of national banks tend to be significantly less satisfied than
customers of regional or local banks who, in turn, are less satisfied than
customers of credit unions.
• Many of the researchers have already validated the positive associations
between performance outcomes and levels of market orientation (Kumar et al.,
1998; Narver and Slater, 1990; Jaworski and Kohli, 1993). However some of
the researchers have found that performance is related to market orientation
only under moderate environmental conditions (Harris, 2000). Customers do
complain when they are not satisfied with the products or services of the
organizations, which clearly indicates the absolute number, or percentage of
the dissatisfied customers.
• Like zero defects in manufacturing organizations, if the organizations succeed
in reducing the customer complaints to zero, this itself will indicate that
customer dissatisfaction is eliminated. However the organizations have to

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recognize that reduction in customer dissatisfaction not always be considered
as same as achieving satisfaction (Brige, 2006). Rowley (2005) urges
researchers to focus on managing the value offered to the customer. The
institutional characteristics along with the behaviour of the managers are the
major factors influencing customer satisfaction, service innovation, market
orientation and outreach performance within regional rural banks (Megicks et
al., 2005).

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Background of the Study
Customer satisfaction was the main thing in the 80s and the initial customer
satisfaction and quality improvement efforts tended towards focusing on tracking
customers’ survey rating over time as well as linking them to service operations. Over
the past few years and in recent times, CRM has substantially enhanced the firm’s
ability to productively manage a heterogeneous customer portfolio. This study is done
to know the CRM practices of the private sector bank. And also what customers are
expecting from the bank.

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Problem Statement of the Study:
The problem is that organizations fail to understand that customers’ value, that
care and concern are far above the product quality, hence organization should
Endeavour to do their best to retain their customers and attract more which will
solve the problems of lack of patronage, unfavourable attitude, no repeated
purchases, and low profitability level that emanate from not putting in place
effective Customer relationship management. And to find the gap between
customer’s expectation and the actual CRM practices.

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Objectives of the Study:
To know the CRM practices done by the bank.
To know the customers expectation about the CRM practices.
To know the gap between customer’s expectation and actual CRM practices.

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Hypothesis
Hypothesis no. 1
H0:-satisfaction with respect to the bank services is indifferent with the age
group.
H1:- satisfaction with respect to the bank services is different with the age group.
Hypothesis no. 2
H0:-satisfaction with respect to the bank services is indifferent with the
occupation.
H1:- satisfaction with respect to the bank services is different with the occupation.
Hypothesis no. 3
H0:-satisfaction with respect to the bank services is indifferent with the gender.
H1:- satisfaction with respect to the bank services is different with the gender.

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Research Methodology
Research methodology is the blue print of research.
It is the way of conducting the research.
There are five steps in effective research process which are following.
o Research Objective
o Develop research plan
o Data collection & interpretation
o Present finding
o Management decision

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Research Design
Research design can be described as an outline of a research project working or a
pattern. In a research design there are series of prior decision that together provide a
master plan for completing a research project. Research design is proved to be a
bridge between what has been established and what is to be done in conduct of the
studies. Research design should be compressive and it should provide which method
to be used and what work to be done.
We have use the Descriptive Research Design for the purpose of survey as it will
enable us to describe the characteristics of a particular individual or a group of people
and their tendency towards something and in our case it could be the degree of the
customer satisfaction by customer relationship management.

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Sources of Data
There are two types of sources of data which is being used for the studies:-
1. Primary Source Of Data:
Primary data was collected to know the customers, preferences and Belief.
Primary data are those, which are collected for the first time, and they are original in
character. A suitable combination of Questionnaire Techniques, Personal interviews
& discussions with the respondents was used to collect the required Primary data.
Primary data gives higher accuracy and facts, which is very helpful for any research
and its findings.
Here in this study, the primary source of data is being collected by preparing
structured Questionnaire & it was filled up with the help of customers.
2. Secondary Source Of Data:
The secondary data are those, which are already collected by someone for
some purpose and are available for the present study. Secondary data was collected
from the magazines, websites and other such sources.
For having the detailed study about this topic, it is necessary to have some of
the secondary information, which is collected from the following sources:-
Books.
Magazines & Journals.
Websites.

42
RESEARCH INSTRUMENT
The research instrument, which is used, for the study is structured
QUESTIONNAIRE which includes the questions which are based on our research
objective the questions are open-ended as well as close-ended for the convenience of
the customers to provide the information about it.

43
Population
Population is entire group of items that researcher wishes to study and about which
help to plan to generalize.
For this study the universe is Ahmadabad city.
SAMPLING DESIGN
SAMPLING METHOD
Looking into the time and money constraints non probability sampling method
is used. In which convenience sampling method has been used.
SAMPLING FRAME
The sampling frame that we had chosen was the people of Ahmadabad city.
SAMPLING SIZE
The numbers of respondent selected for conducting the survey are 400
customers. [n = {Z2
* P*(1-P)}/e2
] where confidence level is 95% error is 0.05
so z value is 1.96 so here is the calculation n= {(1.96)2
*0.5*(1-0.5)}/0.052
]
which equals to 384.16 ≅ 400.

44
LIMITATION OF STUDY
The following are the limitation of the study.
Survey is limited to Ahmedabad region.
Limited resources for the research purpose.
Sample size is small.

45
DATA ANALYSIS AND INTERPRETATION
On the basis of above theory and understandings here collected data is been
analysed and interpleaded in understandable way so reader can have justification of
research work.
AGE GROUP OF THE RESPONDENTS
Age group 18-30 31-40 41-50 51-60 61 & above
Frequency 213 120 44 17 7
Percent 53.1 29.9 11.0 4.2 1.7
Interpretation:
In this survey majority respondents belong to age group 18-40.
GENDER OF THE RESPONDENTS
Male Female Total
Frequency 283 118 401
Percent 70.6 29.4 100
Interpretation :
In this survey, 70% respondents are male & rest are female.
18-30
31-40
41-50
51-60
61 & above
male
female

46
OCCUPATION OF THE RESPONDENTS
Occupation Business Services Housewife Student Other
Frequency 117 150 40 83 11
Percent 29.2 37.4 10 20.7 2.7
Interpretation :
In this survey,
29 % respondents are belong to business
37% from services
10 % from housewife
21% form student
3% from others occupation.
percentage
Business
Services
Housewife
Student
other

47
NAME OF THE PRIVATE SECTOR BANK IN WHICH YOU HAVE ACCOUNT
Bank HDFC ICICI AXIS KOTAK OTHER
Frequency 98 112 82 13 96
Percent 24.4 27.9 20.4 3.2 23.9
Interpretation :
In this survey,
24.4 % respondents from HDFC
27.9 % respondents from ICICI
20.4 % respondents from AXIS
3.2 % respondents from KOTAK MAHINDRA
23.6 % respondents from other bank.
HFDC
ICICI
AXIS
KOTAK
OTHER

48
FREQUENCY OF USING BANK ACCOUNT
DAILY WEEKLY MONTHLY OTHER
Frequency 105 160 112 24
Percent 26.2 39.9 27.9 6
Interpretation :
In this survey,
39.9% Respondents are using bank weekly basis.
26.2% Respondents are using bank daily basis.
27.6% Respondents are using bank monthly basis.
Rest of the other respondents are using other basis like half yearly, yearly.
DAILY
WEEKLY
MONTHLY
OTHER

49
BANK HAS CLEARLY DEFINED MISSION AND BUSINESS STRATEGY FOR
BEST CRM PRACTICES.
Highly
Dissatisfied
Dissatisfied Neutral Satisfied Highly
Satisfied
Frequency 12 46 139 140 64
Percent 3 11.5 34.7 34.9 16
DESCRIPTIVE STATISTICS
MEAN STD.
DEVIATION
3.49 .990
Interpretation :
When we asked respondents that, bank has clearly defined mission & business
strategy for best CRM practices. Then 50.9% respondents reply positively by
selecting satisfied & highly satisfied. 34.7% respondents were neutral & rest gave
negative reply.
Mean of response is 3.49 (as it is greater than 3) which indicate that respondents are
agree on this statement that bank has clearly defined mission and business strategy for
best CRM practices.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

50
BANK PROCESSES ARE SIMPLE, TRANSPARENT AND WELL DEFINED.
Highly
Dissatisfied
Satisfied
Frequency 35 20 122 154 70
Percent 8.7 5 30.4 38.4 17.5
MEAN STD.
DEVIATION
3.51 1.107
Interpretation :
Here 55.9% respondents fills bank processes are simple, transparent & well defined,
30% replies neutral & rest fills it is complicated.
agree on this statement that bank processes are simple, transparent & well define.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

51
BANK IS FULFILLING THEIR COMMITMENTS ON TIME.
Highly
Dissatisfied
Satisfied
Frequency 13 31 107 166 84
Percent 3.2 7.7 26.7 41.4 20.9
MEAN STD.
DEVIATION
3.69 .992
Interpretation :
Here 62.3% respondents fills that bank is fulfilled their commitment on time, 26.7%
gives the neutral reply and rest are dined that.
Mean of the response is 3.69 (as it is greater than 3) which indicate that respondents
are agree on this statement that bank is fulfilled their commitment on the time.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

52
LATEST TECHNOLOGY USED BY BANK IT SATISFIED YOUR NEEDS
Highly
Dissatisfied
Satisfied
Frequency 18 35 65 202 81
Percent 4.5 8.7 16.2 50.4 20.2
MEAN STD.
DEVIATION
3.73 1.023
Interpretation :
Here 70.6% respondents are agreed that latest technology used by the bank it satisfied
the needs, 16.2% gives the neutral reply and rest has given negative reply.
Mean of the response is 3.73 (as it is greater than 3) which indicate that respondents
are agree on this statement that latest technology used by the bank has satisfied
customer’s needs.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

53
WHEN YOU HAVE A PROBLEM, THE BANK SHOWS A SINCERE INTEREST
IN SOLVING IT.
Highly
Dissatisfied
Satisfied
Frequency 22 26 71 204 78
Percent 5.5 6.5 17.7 50.9 19.5
MEAN STD.
DEVIATION
3.72 1.025
Interpretation :
Here 70.5% respondents are agree that when they have problem , the bank shows a
sincere interest to solve the problem, 17.7% gives the neutral reply and rest of the
people gives negative reply.
agree on this statement that bank shows sincere interest to solve the problem of the
customers
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

54
THE BANK PERFORMS THE SERVICE RIGHT THE FIRST TIME.
Highly
Dissatisfied
Satisfied
Frequency 22 32 71 207 69
Percent 5.5 8 17.7 51.6 17.2
MEAN STD.
DEVIATION
3.67 1.028
Interpretation :
Here 68.8% respondents feels that the bank performs the service right the first time,
17.1% feels neutral about that, rest of the respondents has the negative feeling.
Mean of the respondents are 3.67 (as it is greater than 3) which indicate that
respondents are agree on this statement that the bank perform the service right the first
time.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

55
THE BANK INSISTS ON ERROR FREE RECORDS.
Highly
Dissatisfied
Satisfied
Frequency 8 38 68 207 80
Percent 2 9.5 17 51.6 20
MEAN STD.
DEVIATION
3.78 .939
Interpretation :
Here 71.6% respondents agreed that the bank insists on error free records, 17% gives
the neutral reply, rest of the respondents gives the negative reply.
Mean of the respondents are 3.78, (as it is greater than 3) which indicate that
respondents are agree on this statement that the bank insist of error free records.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

56
EMPLOYEES OF THE BANK ARE COMMUNICATING THE RIGHT TIME OF
THE SERVICES PERFORMED.
Highly
Dissatisfied
Satisfied
Frequency 17 36 61 214 73
Percent 4.2 9 15.2 53.4 18.2
MEAN STD.
DEVIATION
3.72 1
Interpretation :
Here 71.6% respondents agreed that employees of the bank are communicating the
right time of the service performed, 15.2% gives the neutral reply, rest of the people
gives negative reply.
Mean of respondents are 3.72, (as it is greater than 3) which indicate that respondents
are agree on this statement that the employees of the bank are communicating the
right time of the service performed.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

57
EMPLOYEES IN THE BANK GIVE YOU PROMPT SERVICE.
Highly
Dissatisfied
Satisfied
Frequency 24 25 57 199 96
Percent 6 6.2 14.2 49.6 23.9
MEAN STD.
DEVIATION
3.79 1.063
Interpretation :
Here 73.5% respondents agreed that employees in the bank give prompt service,
14.2% gives the neutral reply and rest of the people gives the negative reply.
respondents are agree on this statement that employee of the bank gives the prompt
service to the customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

58
EMPLOYEES IN THE BANK ARE ALWAYS HELPFUL TO YOU.
Highly
Dissatisfied
Satisfied
Frequency 15 36 55 202 93
Percent 3.7 9 13.7 50.4 23.2
MEAN STD.
DEVIATION
3.80 1.014
Interpretation :
Here 73.6% respondents agreed that employees in the bank are always helpful to the
customers, 13.7% gives the neutral reply and rest of the people gives the negative
reply.
respondents are agree on this statement that employee in the bank are always helpful
to the customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

59
EMPLOYEES IN THE BANK ARE NEVER TOO BUSY TO RESPOND TO YOUR
REQUEST.
Highly
Dissatisfied
Satisfied
Frequency 27 29 44 222 79
Percent 6.7 7.2 11 55.4 19.7
MEAN STD.
DEVIATION
3.74 1.067
Interpretation :
Here 75.1% respondents agreed that employees in the bank are never too busy to
respond to the customer request, 11% gives the neutral reply and rest of the people
gives the negative reply.
Mean of the respondents are 3.74 (as it is greater than 3) which indicate that
respondents are agree on this statement that the employees responds quickly to the
customer request.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

60
THE BEHAVIOR OF EMPLOYEES IN THE BANK INSTILLS CONFIDENCE IN
YOU.
Highly
Dissatisfied
Satisfied
Frequency 22 28 64 201 86
Percent 5.5 7 16 50.1 21.4
MEAN STD.
DEVIATION
3.75 1.043
Interpretation :
Here 71.5% respondents agreed that the behaviour of employee in the bank instils
confidence in the customers, 16% gives the neutral reply and rest of the people gives
the negative reply.
respondents are agree on this statement that the behaviour of employee of bank instils
confidence in the customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

61
EMPLOYEES IN THE BANK ARE CONSISTENTLY COURTEOUS WITH YOU.
MEAN STD.
DEVIATION
3.80 .993
Interpretation :
Here 74.8% respondents agreed that employees in the bank are consistently courteous
with customers, 13.2% gives the neutral reply and rest of the people gives the
negative reply.
respondents are agree on this statement that the employee of the bank are consistently
courteous with the customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
Highly
Dissatisfied
Satisfied
Frequency 16 32 53 215 85
Percent 4 8 13.2 53.6 21.2

62
EMPLOYEES IN THE BANK ARE KNOWLEDGEABLE ENOUGH TO ANSWER
YOUR QUESTIONS.
MEAN STD.
DEVIATION
3.85 .961
Interpretation :
Here 75.8% respondents agreed that employees in the bank are knowledgeable
enough to answer customer’s questions13.7, % gives the neutral reply and rest of the
people gives the negative reply.
respondents are agree on this statement that employees of the bank are
knowledgeable.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
Highly
Dissatisfied
Satisfied
Frequency 13 29 55 213 91
Percent 3.2 7.2 13.7 53.1 22.7

63
THE BANK GIVES YOU INDIVIDUAL ATTENTION.
MEAN STD.
DEVIATION
3.74 1.048
Interpretation :
Here 79% respondents agreed that the bank gives the individual attention to the
reply.
respondents are agree on this statement that the bank gives individual attention to the
customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
Highly
Dissatisfied
Satisfied
Frequency 17 42 57 197 88
Percent 4.2 10.5 14.2 49.1 21.9

64
THE BANK HAS YOUR BEST INTERESTS AT HEART.
Highly
Dissatisfied
Satisfied
Frequency 15 38 71 206 71
Percent 3.7 9.5 17.7 51.4 17.7
MEAN STD.
DEVIATION
3.70 .991
Interpretation :
Here 69.1% respondents agreed that the bank has their best interest at heart, 17.7%
gives the neutral reply and rest of the people gives the negative reply.
respondents are agree on this statement that the bank has their best interest at heart
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

65
THE BANK HAS OPERATING HOURS CONVENIENT TO ALL ITS
CUSTOMERS.
Highly
Dissatisfied
Satisfied
Frequency 24 30 58 202 87
Percent 6 7.5 14.5 50.4 21.7
MEAN STD.
DEVIATION
3.74 1.066
Interpretation :
Here 72.1% respondents agreed that the bank has operating hours convenient to all its
reply.
respondents are agree on this statement that the bank has the convenient operations
hours.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

66
THE BEHAVIOR OF THE EMPLOYEES IS CONFIDENT AT CUSTOMER.
Highly
Dissatisfied
Satisfied
Frequency 23 30 63 206 79
Percent 5.7 7.5 15.7 51.4 19.7
MEAN STD.
DEVIATION
3.72 1.045
Interpretation :
Here 71.1% respondents agreed that the behaviour of the employee is confident at the
reply.
respondents are agree on this statement that the employees if the bank are confident.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

67
REGULAR AWARENESS REGARDING THE PRODUCT SERVICES AND
OFFERS PROVIDED TO CUSTOMER.
Highly
Dissatisfied
Satisfied
Frequency 27 26 64 198 86
Percent 6.7 6.5 16 49.4 21.4
MEAN STD.
DEVIATION
3.72 1.080
Interpretation :
Here 70.8 % respondents agreed that regular awareness regarding the product and
service and offers provided to customer. 16 % gives the neutral reply and rest of the
respondents are agree on this statement that the regular awareness regarding the
products service and offers provided to customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

68
BANK EMPLOYEES LOOK AT CUSTOMER ON THE BASIS OF LIFETIME
VALUE.
Highly
Dissatisfied
Satisfied
Frequency 26 24 61 208 82
Percent 6.5 6 15.2 51.9 20.4
MEAN STD.
DEVIATION
3.74 1.055
Interpretation :
Here 72.3% respondents agreed that bank employee look at customer on the basis of
lifetime value, 15.2 % gives the neutral reply and rest of the people gives the negative
reply.
respondents are agree on this statement that bank employees look at customer on the
basis of lifetime value.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

69
BANK CUSTOMER REPRESENTATIVES ARE WELL-TRAINED IN
CUSTOMER CARE AND EXCEED CUSTOMER EXPECTATIONS.
Highly
Dissatisfied
Satisfied
Frequency 24 22 56 204 95
Percent 6 5.5 14 50.9 23.7
MEAN STD.
DEVIATION
3.81 1.049
Interpretation :
Here 73.6% respondents agreed that bank customer representative are well-trained in
customer care and exceed customer expectations, 14 % gives the neutral reply and rest
of the people gives the negative reply.
respondents are agree on this statement that the bank customer representative is well-
trained in customer care and exceed customer expectation.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

70
THE EMPLOYEES OF THE BANK UNDERSTAND YOUR SPECIFIC NEEDS.
Highly
Dissatisfied
Satisfied
Frequency 16 29 47 232 77
Percent 4 7.2 11.7 57.9 19.2
MEAN STD.
DEVIATION
3.81 .961
Interpretation :
Here 77.1 % respondents agreed that the employee of the bank understand customer
specific needs, 11.7 % gives the neutral reply and rest of the people gives the negative
reply.
respondents are agree on this statement that the employee of the bank understand the
customer’s specific needs.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

71
BANK IS TAKING REGULARLY FEEDBACK OF THE CUSTOMERS.
Highly
Dissatisfied
Satisfied
Frequency 24 32 47 200 98
Percent 6 8 11.7 49.9 24.4
MEAN STD.
DEVIATION
3.79 1.085
Interpretation :
Here 74.3% respondents agreed that bank is taking regularly feedback of the
customers, 11.7 % gives the neutral reply and rest of the people gives the negative
reply.
respondents are agree on this statement that bank is taking regularly feedback of the
customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

72
OVERALL, I AM SATISFIED WITH THE BANK SERVICES.
Highly
Dissatisfied
Satisfied
Frequency 18 32 47 205 99
Percent 4.5 8 11.7 51.1 24.7
MEAN STD.
DEVIATION
3.84 1.031
Interpretation :
Here 75.8% respondents agreed that overall the customers are satisfied with bank
services, 11.7 % gives the neutral reply and rest of the people gives the negative reply.
respondents are agree on this statement that the customers are satisfied with the bank
services.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

73
I SAY POSITIVE THINGS ABOUT THE BANK TO OTHER PEOPLE.
Highly
Dissatisfied
Satisfied
Frequency 14 38 54 209 86
Percent 3.5 9.5 13.5 52.1 21.4
MEAN STD.
DEVIATION
3.79 .999
Interpretation :
Here 73.5% respondents saying positive thing about bank to the other people, 13.5 %
gives the neutral reply and rest of the people gives the negative reply.
respondents are agree on this statement that customers are saying positive things
about bank to the customers.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

74
I INTEND TO CONTINUE BEING A CUSTOMER OF THE BANK FOR A LONG
TIME TO COME.
Highly
Dissatisfied
Satisfied
Frequency 12 38 59 206 86
Percent 3 9.5 14.7 51.4 21.4
MEAN STD.
DEVIATION
3.79 .984
Interpretation :
Here 72.8% respondents agreed that they intend to continue a customer of the bank
for a long time to come, 14.7 % gives the neutral reply and rest of the people gives the
negative reply.
respondents are agree on this statement that customers intend to continue being a
customer of the bank for a long time to come.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

75
I WILL ENCOURAGE FRIENDS AND RELATIVES TO USE THE SERVICE
OFFERED BY THE BANK.
Highly
Dissatisfied
Satisfied
Frequency 18 32 53 215 83
Percent 4.5 8 13.2 53.6 20.7
MEAN STD.
DEVIATION
3.78 1.008
Interpretation :
Here 74.3% respondents agreed that customer will encourage friends and relatives to
use the service offered by the bank, 13.2 % gives the neutral reply and rest of the
respondents are agree on this statement that customers will encourage the friends and
relatives to use the service offered by the bank.
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied

76
• SATISFACTION WITH RESPECT TO GENDER GROUP
ANOVA
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups
.024 1 .024 .023 .880
Within
Groups
425.113 399 1.065
Total 425.137 400
ONEWAY Q26 BY GENDER /MISSING ANALYSIS.
INTERPRETATION
Here we are checking that whether satisfaction depends upon gender or not
and here satisfaction with respect to bank service is indifference with the gender.

77
• SATISFACTION WITH RESPECT TO AGE GROUP
ANOVA
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups
6.889 4 1.722 1.631 .166
Within
Groups
418.248 396 1.056
Total 425.137 400
ONEWAY Q26 BY AGE GROUP /MISSING ANALYSIS.
INTERPRETATION
Here we are finding whether satisfaction is depends upon age group or not so
here satisfaction with respect to bank services is in difference with the age group.

78
• SATISFACTION WITH RESPECT TO OCCUPATION GROUP
ANOVA
Sum of
Squares
Df Mean
Square
F Sig.
Between
Groups
7.185 4 1.796 1.702 .149
Within
Groups
417.953 396 1.055
Total 425.137 400
ONEWAY Q26 BY Occupation /MISSING ANALYSIS.
INTERPRETATION
Here we are finding whether satisfaction is depends upon occupation or not so
here satisfaction with respect to bank services is in difference with the occupation.

79
FACTORS THAT LEADS SATISFACTION
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .697a
.486 .479 .744
a. Predictors: (Constant), THE BANK INSISTS ON ERROR FREE
RECORDS, BANK HAS CLEARLY DEFINED MISSION AND
BUSINESS STRATEGY FOR BEST CRM PRACTICES., BANK IS
FULFILLING THEIR COMMITMENTS ON TIME, WHEN YOU HAVE
A PROBLEM, THE BANK SHOWS A SINCERE INTEREST IN
SOLVING IT., BANK PROCESSES ARE SIMPLE, TRANSPARENT
AND WELL DEFINED.
ANOVA
Model Sum of
Squares
Df Mean
Square
F Sig.
1 Regressi
on
206.552 5 41.310 74.651 .000b
Residual 218.585 395 .553
Total 425.137 400
a. Dependent Variable: OVERALL, I AM SATISFIED WITH THE
BANK SERVICES.
b. Predictors: (Constant), THE BANK INSISTS ON ERROR FREE
RECORDS, BANK HAS CLEARLY DEFINED MISSION AND
BUSINESS STRATEGY FOR BEST CRM PRACTICES., BANK IS
FULFILLING THEIR COMMITMENTS ON TIME, WHEN YOU
HAVE A PROBLEM, THE BANK SHOWS A SINCERE INTEREST
IN SOLVING IT., BANK PROCESSES ARE SIMPLE,
TRANSPARENT AND WELL DEFINED.
INTERPRETATION
This shows the factors which leads to satisfaction error free records,
fulfilling commitment on time, business strategy for best CRM practices
sincere interest in solving problem. Simple, transparent, and well defined
process of bank this all leads to satisfaction of the customers of the bank.

80
FINDING
On the basis of respondent’s response HDFC, ICICI, AXIS cover major
market share of the private sector banking.
Majority of people use their bank once in week.
On the basis of this survey, 75% people are satisfied with bank services. Out
of them 24.7 % people highly satisfied who are the loyal customers of the
bank.
Satisfaction with respect to bank service is indifference with the gender.
Satisfaction with respect to bank services is in difference with the age group.
Satisfaction with respect to bank services is in difference with the occupation.
74% respondents are encouraging their friend & relative for use their bank &
make positive word of mouth about bank & its services.
70 % customer fill that bank seem them as long time customer.
The following factors leads customer’s satisfaction :-
Error free records.
Fulfilling commitment on time.
Business strategy for best CRM practices.
Sincere interest in solving problem.
Simple, transparent, and well defined process of bank.

81
Conclusion
In this report we have learned about CRM in banking sector. There are different
consumers who come to bank with various different expectations in their mind. From
this report we get insight of banking activities in social welfare. This report gives
insight of corporate social responsibility by banking. Overall growth in banking sector
in India is also presented in this report.
Report is divided in two parts where this is general information in first part and
research work in second part. First part talks about the banking sector; history of
banking; banking activities; banking as business model; overview of world market;
overview & growth banking in Indian market; about major banks in India; and
product profile.
Where second part talks about introduction of the study which includes literature
review; background of the study; problem statement of the study; objectives of the
study; and hypothesis. And research methodology includes research design; sources
of data; data collection method; population; sampling method; sampling frame; and
data collection instrument.
Data analysis and interpretation shows real outcome of this report which is
followed by result and findings; and limitations of the study. Suggestions which came
to our observation during this research are On the basis of respondent’s response
HDFC, ICICI, AXIS cover major market share of the private sector banking; Majority
of people use their bank once in week; On the basis of this survey, 75% people are
satisfied with bank services. Out of them 24.7 % people highly satisfied who are the
loyal customers of the bank; Satisfaction with respect to bank service is indifference
with the gender; Satisfaction with respect to bank services is in difference with the
age group; Satisfaction with respect to bank services is in difference with the
occupation; 74% respondents are encouraging their friend & relative for use their
bank & make positive word of mouth about bank & its services; 70 % customer fill
that bank seem them as long time customer.
Bank should focus in the following factors which leads customer’s satisfactions:-
a. Error free records.
b. Fulfilling commitment on time.
c. Business strategy for best CRM practices.
d. Sincere interest in solving problem.
e. Simple, transparent, and well defined process of bank.

82
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Annexure
Questionnaire
We are pleased to introduce myself as a MBA student of CPIMR. As a part
of our curriculum, we have undertaken a research on “Study on Customer
Relationship Management Practices Employed by Private Sector Bank &
Its Effect on Customer Satisfaction”. We assured that, this information
provided by you will be strictly kept confidential and used for academic
purpose only.
Name:
Sex: Male ( ) Female ( )
Age: 18 to 30 ( ) 31 to 40 ( ) 41 to 50( )
51 to 60 ( ) 61 and above ( )
Occupation: business ( ) services ( )housewife( )
self employed ( ) student ( )
others ( )
Frequency of using the bank: Daily ( ) Weekly ( ) Monthly ()
other: ___
The following statements relate to your feelings about the particular bank you
have chosen. Please show the extent to which you believe this bank has the
feature described in the statement. You should rank each statement as
follows:
Highly dissatisfied – Highly satisfied
Statement Score HD D N S HS
1) Bank has clearly defined mission and
business strategy for best CRM practices
2) Bank processes are simple, transparent
and well defined.
3) Latest technology used by bank it satisfied

85
your needs
4) Bank is fulfilling their commitments on time
5) When you have a problem, the bank
shows a sincere interest in solving it.
6) The bank performs the service right the
first time.
7) The bank insists on error free records.
8) Employees of the bank are communicating
the right time of the services performed
9) Employees in the bank give you prompt
service.
10)Employees in the bank are always helpful
to you.
11)Employees in the bank are never too busy
to respond to your request.
12)The behavior of employees in the bank
instills confidence in you.
13)Employees in the bank are consistently
courteous with you.
14)Employees in the bank are knowledgeable
enough to answer your questions.
15)The bank gives you individual attention.
16)The bank has operating hours convenient
to all its customers.
17)The bank has your best interests at heart.
18)The behavior of the employees is
confident in customer
19)Regular awareness regarding the product
services and offers provided to customer.
20)Bank employees look at customer on the
basis of lifetime value.
21)Bank customer representatives are well-

86
trained in customer care and exceed
customer expectations.
22)The employees of the bank understand
your specific needs.
23)Bank is taking regularly feedback of the
customers.
24)Overall, I am satisfied with the bank
services
25)I say positive things about the bank to
other people.
26)I intend to continue being a customer of
the bank for a long time to come.
27)I will encourage friends and relatives to
use the service offered by the bank.

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