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IDBI BANK

CHAPTER IINTRODUCTION

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Introduction

The role and responsibilities assumed by the banks today are distinctly

different from those industries. Owing to social commitments, banks extend to large

number of customer without looking into commercial viability. Indian banks, for

sometime now, have shown symptom of tripping, particularly in the area of dispensing

customer service. The industry has also taken a beating in the perception of large

segment of society, in the area of work culture of employee’s vis-à-vis orientation

towards customers. Availability of supplicated service in customer friendly atmosphere

elsewhere in the developed world and also to some extent at the branches of the foreign

banks in India, has had its demonstration effect, so to say, in influencing the public

perception regarding bank service and raising customers expectations ,sky-high. While

the environment and infer structural facilities in India can hardly be considered

conductive to match some of the supplication achieved by the developed world, it may

not be incorrect to say that the banking industry does have the wherewithal to isolated

and eliminated, required changes and modifications in the procedures are initiated and

modern tools and aids are introduced.

Customer service is an aspect of great significance and importance in the

banking industry. In the area of service, expectations and demands of the customer are

generally rise at a much faster pace than banks are equipped to deal with. That is why,

even in the technologically advanced countries, customer services is an issue that

constantly engages the attention of the bankers and the various groups representing

diverse customer interests.

The study was conducted to assess the level customer satisfaction of the service

environment in IDBI Bank Chennai .IDBI Bank is one of the top ten listed bank in the

world. The bank is adopting technology for making it in tune with the changing banking

scenario as well as the rising expectation of customers.

Statement of problem

The service environment in a bank constitutes one of the prime factors behind

customer satisfaction. Service environment, also called services capes. relate to the style

and appearance of the physical surroundings and other experiential elements

encountered by customers at service delivery sites. The service environment plays a

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major part in shaping customers’ perception of firm’s image and positioning. As service

quality is always difficult to assess objectively, customers frequently use the service

environment makes customers feel good and boosts their satisfaction and at the same

time IDBI Ltd was prompt to respond & adept to emerging scenario by understanding

the impact of changes in distribution of services, customer profiles & preferences,

industry trends and acted upon the same to convert the change to its advantage. IDBI

Ltd has devised a customer centric service delivery strategy, focusing on simple &

value added services by utilizing the most convenient and commonly used delivery

channels. This required enhancing the existing technology base to meet the varied and

diverse customer requirements enhances the productivity of the service operation. IDBI

Bank one of the leading bank in the world.

Objectives of the study

1. To study the service environment and level of customer satisfaction of the service

environment in the branches of IDBI Chennai Greams Road.

2. To analyze the service quality in the branches of IDBI Bank.

Review of Literature

An exhaustive literature survey was conducted to gain an in-depth knowledge of

the subject matter and to familiarize with the research procedures. The major studies

referred by the researcher were ‘measuring Customer Satisfaction in Banking Industry’

and determinants of customer perceived service Quality. The former one was a study

conducted by Dr Manoj Kumar Dash, Professor Galgotia College of Engineering and

technology, Nodia and D.M Mahaptra, Lecturer, GNIT,Nodia. The study was about the

parameters of the customer satisfaction and its measurement. The study identifies the

areas that should be improved to make customer delightful. The study tries to explore in

more detail what satisfaction actually means to customers. The study was conducted for

the department of security among benefit agency users. The study concluded that loyal

customers is an integral part of any business.

The latter one of the Research Article by Sureshchandran G S,Rajendran

C.Anantharamn R N. This research work strived to bring to light some of the critical

determinants of service quality and purposes a comprehensive model and an instrument

framework for measuring customer perceived service quality. The instrument frame

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work has been designed with specific reference to the banking sector. Data have offered

a systematic procedure that could form the cornerstone for providing future insights on

the conceptual and empirical comprehension of customer perceived service quality and

its constituents.

Methodology

1. Research Design

The research design adopted for the study is descriptive and analytical in nature.

2. Data Source

a. Data collection from primary source

The primary source for collection data were direct observation,interaction with

customers and well designed and purposefully created questionnaires.

b. Data Collection from Secondary Sources

The secondary sources for collecting data were annual report, website, text books and

various articles ,journals and reports.

Sampling Techniques

Sample Design

The area of research was selected based on purposive sampling. The universe is finite

and consist of 5 branches in Chennai which are suggested by management of IDBI

Sampling Unit

The selection of sampling unit was based on convenient sampling method. The number

of customers as samples for the study was fixed as 100,which were equally drawn from

the branches selected.

Sampling Frames

Size of Samples : In accordance with the parameters of interest and the requirement of

the firm ,

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Scaling techniques

The scaling used in the questionnaire was four point Likert Scale.Dichotomous scale

was also used for conviently representing certain questions.

Data analysis Tools and Techniques

Statistical tools are used for the data analysis.Scoring Method and chart are also used

for representation.x2 test is also used for the analysis.

Scope of the research

The research on level of customer satisfaction of service environment was carried out in

the selected branches of IDBI Bank in Chennai.The study will be beneficial to the

management of IDBI Bank as they can make improvement in their services and can

apply the suggestion that are given in the study to different branches of the IDBI

Bank.The study will help the future researchers also.

Limitations of the Research

Some of the customers were too busy and some of them were reluctant to

give accurate response.

Chapterisation

Chapter 1. Introduction about the the study

Chapter 2. An overview of IDBI Bank

Chapter 3. A profile of IDBI Bank

Chapter 4. Data Analysis and Interpretation

Chapter 5. findings,Conclusion and Suggestion

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CHAPTER IIINDUSTRY PROFILE

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Indian Banking Industry

The banking Industry can be categorized into non-scheduled banks and

scheduled banks. Scheduled Banks consist of commercial banks and co-operative

banks. There are about 6,7000 branches of scheduled banks spread across India. As

far as the present scenario is concerned the banking industry in India is going through

a transitional phase.

Banking Industry has revolutionized the transaction and financial services

system worldwide. Through the development in technology banking services has been

availed to the customer at all time ,even after the normal banking hours, on a24x7

basis. Banking Industry services is nothing but all access of most the banking related

services(such as verification of account details, going with the transactions, etc)In

today’s world, provision of online services is available to all customers of the

concerned bank and can be assessed at any point of time and from anywhere provided

the place is equipped with the Internet facility. Now-a-days, almost all the banks all

over the world, especially the multinational ones, provide their customers with Online

Banking facility.

The growth in the Indian Banking Industry has been more qualitative than

quantitative and it is expected to remain the same in the coming years. The total assets

of all scheduled commercial banks by end-march2010 are estimated at Rs.40, 90,000

corers. That will comprise about 65 per cent of GDP at current market prices as

compared to 67 per cent in 2002-03.Bank assets are expected to grow at an annual

composite rate of 13.4per cent during the rest of the decade as against the growth rate

of 16.7 per cent that existed between 1994-95 and 2002-03.It is expected that there

will be large additions to the capital base and reserve on the liability side.

The public sector Banks (PSBs),which are the base of the Banking sector in

India account for more than 78 per cent of the total banking industry. Unfortunately,

they are burdened with excessive Non performing assets (NPAs),massive manpower

and lack of modern technology. Public sector banked are still dominant but their

market share, whether of deposits, loans or net profits, is at best static(for the better

run banks)or has come down.

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The gainers are new generation private banks, mainly ICICI bank, HDFC bank

and AXIS bank. They are leaders in Internet banking, phone banking, ATMs. As far

as foreign banks are concerned they are likely to succeed in the Indian Banking

Industry.

In the Indian banking industry some of the private sector Banks operating

are IDBI,ING Vyasa Bank.SBI Commercial and International Bank Ltd, Bank of

Rajasthan Ltd. and the bank from the public sector include Punjab National Bank Ltd,

Vijaya Bank UCO Bank Oriental Bank, Allahabad Bank among others.ANZ

Grinldlays Bank, ABAN-AMRO Bank, American Express bank Ltd, City Bank are

some of the foreign banks operating in the Indian Industry. During the first phase of

financial reforms, there was a nationalization of 14 major banks in 1969.This crucial

step led to a shift from class banking to mass banking. Since then the growth of the

banking industry in India has been a continuous process.

The private sector bank in India are witnessing immense progress. They are

leaders in internet banking, mobile banking, phone banking, ATMs. New private

sector banks were set up in the reform era of the 1990s with adequate capital and a

modern technology platform. With no constraint imposed by government ownership

or trade unions, these banks were expected to do well. On the other hand the Public

sector Banks are still facing the problem of unhappy employees. There has been a

decrease of 20 percent in the employee strength of the private sector in the wake of

the Voluntary Retirement Schemes (VRS), A far as foreign banks are concerned they

are likely to succeed in India.

ANZ Grindlays Bank, ABN-AMRO Bank, American Express Ltd, City bank

etc are some foreign banks operating in India. Foreign banks despite their long

presence in the country still do not have significant market share in the traditional

banking business.

Indian Banking-An Overview

Indian Banking is the lifetime of the nation and its people. Banking has helped

to develop vital sector of economy and usher in a new dawn of progress on the Indian

horizon.

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The Indian Banking industry is today at the crossroads. It is trying to make the

transition from the era of socialist rhetoric to the era of the marketing mantra. A

strong and efficient financial system is critical to the objective of creating a market

driven, productive and competitive economy and to support higher investment levels

and Accenture growth. With the Indian banking sector poised to open up further

welcoming global competition, consolidation has gained momentum. Now the areas

of focus are building loyalty programmers while enhancing branch reach and

strengthening customer relationship management and significantly, product

innovation which is a differentiator. Today Indian banks are some of the most

technologically advanced banks with vast networks of branches empowered by strong

banking systems

Banking is most dominant segment of the financial system and plays a critical

role in the development of sound economy. So, to improve the performance of

banking industry, financial sector reforms have introduced, which brought about

significant improvement in the strength, resilience and competitiveness of Indian

banking industry.

Bank nationalization in India marked a paradigm shift in the focus of banking

as it was intended to shift the focus from class banking to mass banking. The rationale

for creating Regional Rural Banks was also to take the banking services to poor

people. The branches of commercial banks and the RRBs have increased from 8321in

the year1969 to 68,282 branches as at the end of March 2005.The average population

per branch office has decreased from 64,000 to 16,000 during the same period.

However, there are certain under-banked states such as Bihar, Orissa, Rajasthan,

Utttar Pradesh, Chattisgarh, Jarkhand, West Bengal and large number of North-

Eastern state, where the average population per branch office continues to be quite

high compared to the national average. The new branch authentication policy of

Reserve Bank encourages banks to open branches in these under banked state and the

under banked areas in other states. The new policy also places a lot of emphasis on

the efforts made by the bank to achieve, inter alia, financial inclusion and other policy

objectives.

One of the benchmarks employed to assess the degree of reach of financial

services to the population of the country ,is the quantum of deposit accounts(current

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and saving)held as a ratio to the adult population. In the Indian context, taking into

account the census of 2001(ignoring the incremental growth of population

thereafter),the ratio of deposit account(data available as on March 31,2004)to the total

adult population was only 59 percent. Within the country, there is a wide variation

across state. For instance, the ratio for the state of Kerala is as high as 89 percent

while Bihar is marked by a low coverage of 33 percent. In the North Eastern State like

Nagaland and Manipur, the coverage was a meager 21 percent and 27 percent,

respectively. The Northern Region, comprising the state of Haryana, Chandigarh and

Delhi, has a high coverage of our financial service is quite low. For instance, as per a

recent survey commissioned by British Bankers association,92 to 94 percent of the

population of UK has either current or savings bank account.

Evolution of Banking Industry in India

Organized banking was active in India since the establishment of the General

Bank of India in 1786.After independence, the reserve bank of India (RBI)was

established as the central Bank and in 1955,the Imperial Bank of India, the biggest

bank at the time, was taken over by the government to form state owned state Bank of

India(SBI).RBI has under taken an exercise to merge weak banks with strong bank

and the objective of reaching out to masses and meeting the credit needs of all section

of people, the government nationalized 14 large in 1969 followed by another 6 banks

in 1980.This period saw enormous growth in the weakest section of the society in a

vast country like India.SBI network of 10,000 domestic branches and 48 overseas

offices is considered to be one of the largest for any bank in the world.

The economic reforms unleashed by the government in early nineties included

banking sector too, to a significant extent. Entry of new private sector banks was

permitted under specific guidelines issued by Reserve Bank of India. A number of

liberalization and de-regulation measures aimed at consolidation, efficiency,

productivity, asset quality, capital adequacy and profitability have been introduced by

the RBI to bring Indian banks in line with International best practices. With a view to

giving the state owned banks operational flexibility and functional autonomy, partial

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

the government to 51 percent.

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As of March 31, 2003, there were a total of 289 scheduled commercial banks

in India. Even through regional rural bank number 196, they have a minuscule share

of 3.4 per cent of customer deposit and 3 per cent net profit of the industry total.

Similarly, the older private sector banks are mostly regional players and enjoyed a

small share. The public sector banks including the State Bank group (SBI and its

subsidiaries)dominate the industry with 77 percent share of deposit and 70 percent

share of profit. Excluding SBI group, public sector bank still command a very high

share of close to 50 percent of the total industry in terms of deposits.

Current Banking Scenario

The constant rise in the industrial and commercial activities have lead to a

reasonable expansion in monetary and banking aggregates in 2006-07 for the forth

year in succession. Financial markets experienced generally stable condition during

the greater part of 2006-07 ,with some volatility in the second half admits heightened

activity as volumes increased steadily and interest rates firmed up in all segments. The

aggregate deposits of scheduled banks (SCBs) increased by 23 percent during 2006-

07as against 18.1 percent in the previous year. Favorable interest rate differentials, tax

incentives, which were extended to long-term bank deposits, growth in the non

resident deposits, and increase in deposits from the private sector etc. are the major

factors which lead to deposit growth during the year review.

On account of continuous growth in the economic activity in the country. the

demand of bank credit is also moving up. Bank credit to the commercial sector

increased by 25.4 percent as compared with the increase of 27.2 percent a year ago.

The food credit extended by previous year and non-food credit increased by 28

percent on top of 31.8 percent. Personal loan has continued to record highest growth

among major sectors, with an increase of 34.9 percent. Housing loan increased by

30.3 percent while real estate loans rose by 66.7 percent. The industrial sector showed

a progress in respect of infrastructure, basic metals products, textiles, food processing

etc. Agricultural credit recorded a growth of 31.1 percent. Commercial banks’

investment in public sector undertaking, private corporate sector etc has risen to

Rs.4,002 corers during 2006-07,as compared to a decline of Rs.13,237 corers in the

previous year. As a result, the total flow of funds from SCBs to the commercial

sector, has increased by 26.8 percent in 2006-07 as against 28.3 percent in 2005-06.

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Customer Satisfaction in the Banking Industry

The working of the customer’s mind is a mystery which is difficult to solve

and understanding nuances of what customer satisfaction is a challenging task. These

exercises in the context of the banking industry will gain as an insight into the

parameters of customer satisfaction and their measurement. This vital information

will help us to build satisfaction amongst the customers and customer loyalty in the

long run which is an integral part of any business. The customer’s requirements must

be translated and qualified into measurable targets. This provides an easy way to

monitor improvements, and deciding upon the attributes that need to be concentrated

in order to improve customer satisfaction. We can recognize where we need to make

changes to create improvements and determine if these changes, after implemented

have led to increased customer satisfaction “if you cannot measure it , You cannot

improve it” Lord William Thomson Kelvin (1824-1907)

Banking operations are becoming increasingly customer dictated. The demand

for ‘banking supermalls’ offering one-stop integrated financial services is well on the

rise. The ability of banks to offer clients access to several markets for different classes

of financial instruments has become a valuable competitive edge. Convergence in the

industry to cater to the changing demographic expectations is now more than evident.

The thrust on farm sector, health sector and services offers several investment

linkages.

With the phenomenal increase in the countries population and the increased

demand for banking services; speed services quality and customer satisfaction are

going to be key differentiators for each banks future success. Thus this imperative for

banks to get useful feedback on customer actual response with regard time and

customer service quality aspects of retail banking, which in turn will help them take

positive steps to maintain a competitive edge.

The need to measure customer satisfaction:

Satisfied customers are central to optimal performance and financial returns.

In many places in the world, business organizations have been elevating the role of

the customer to that of a key stakeholder over the past 20 years. Customers are viewed

as a group whose satisfaction with the enterprise must be incorporated in strategic

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planning efforts. Forward looking companies are finding value in directly measuring

and tracking customer satisfaction (CS) as an important strategic success indicator.

Evidence is mounting that place a high priority on CS is critical to improved

organizational performance in a global market.

Actions required to make the customers needs. They can identify their on

strengths and weaknesses, where they stand in comparison to their competitors, chart

out path future progress and improvement. Customer satisfaction measurement helps

to promote an increased focus on customer outcomes and stimulate improvements in

work practices and processes used within the company.

When buyers are powerful, the health and strength of company’s relationship

with its customers – its most critical economic asset – is its best predictor of the

future. Assets on the balanced sheet – basically assets of production – are good

predictors only when buyers are weak. So it is no wonder that the relationship

between those assets future income is becoming more and more tenuous. As buyers

become empowered, sellers have no choice but to adapt. Focusing on competition has

its place, but with buyer power on the rise, it is more important to pay attention to the

customer. Customer satisfaction is quite a complex issue and there is a lot of debate

and confusion about what exactly is required and how to go about it.

What constitute Satisfaction?

The meaning of satisfaction: satisfied” has a range of meanings to individuals,

but it generally seems to be a positive assessment of the service. According to Richard

L.Oliver, Satisfaction is the consumers’fulfiillment of responses. It is a judgment that

a product or service feature, or the product or service itself, provides a pleasurable

level of consumption related fulfillment”. In simple words, satisfaction is the

customers’evalution of a product or service as to whether that product or service has

met their needs and expectations.

It is also important to recognize that although we tend to measure consumer

satisfaction at a particular point of time as if it was static, satisfaction is dynamic,

moving target that may evolve over time, influenced by a variety of

factors.Particularly when a product usage or the service experience take place over

time, satisfaction may be highly variable depending on which point in the usage or

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experience cycle one is focusing on. Though the service cycle, the consumer may

have variety of different experience-some good, some not good-and each ultimately

impact satisfaction.

Service Quality and Customer Satisfaction:

There is a great deal of discussion and disagreement in the literature about the

distinction between service quality and satisfaction .The service quality school view

satisfaction as an antecedent of service quality-satisfaction with a number of

individual transaction decay” into an overall attitude towards service quality. The

satisfaction school holds the opposite view that assessment of service quality lead to

an overall attitude towards the service that they call satisfaction. There is obviously a

strong link between customers satisfaction and customer retension.Customer’s

perception of service and Quality of product will determine the success of the success

of the product or service in the market. If experience of the service greatly exceeds the

expectations of clients of the service,then satisfaction will be high, and vice versa.In

the service quality literature,perceptions of service delivery are measured separately

from customer expectation, and the gap between the two provides a measure of

service quality.

Service Quality

In the case of pure services, service quality will be the customer dominant

element in customers’evalution.In case where customers service or services are

offered in combination with a physical product, service quality may also be very

critical in determining customer satisfaction.The consumers judge the quality of

services based on their perception of technical outcome provided, the process by

which that outcome was delivered and the quality of the physical surrounding where

the service is delivered.

Underlying Principles of Service Quality

Receiving a high level of service is important to consumers but understanding

how to evaluate the service quality received is more difficult.

The underlying principles of service quality are:

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1.Service quality is more difficult for the consumers to evaluate than the

quality of a good.

2.The service quality is based on consumers’ perception of the outcome of the

service and their evolution of the process by which the service was performed.

3.Service quality perception result from a comparison expected prior to the

service and the perceived level of service received.

The five dimensions of service quality are Tangibles, Responsiveness,

Reliability, Assurance and Empathy. These dimensions were found relevant in service

industries like banking, insurance etc.

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CHAPTER IIICOMPANY PROFILE

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The Industrial Development Bank of India (IDBI) was established on July 1, 1964

under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16

February 1976, the ownership of IDBI was transferred to the Government of India and it was

made the principal financial institution for coordinating the activities of institutions engaged

in financing, promoting and developing industry in the country. Although Government

shareholding in the Bank came down below 100% following IDBI’s public issue in July

1995, the former continues to be the major shareholder (current shareholding: 52.3%). During

the four decades of its existence, IDBI has been instrumental not only in establishing a well-

developed, diversified and efficient industrial and institutional structure but also adding a

qualitative dimension to the process of industrial development in the country. IDBI has

played a pioneering role in fulfilling its mission of promoting industrial growth through

financing of medium and long-term projects, in consonance with national plans and priorities.

Over the years, IDBI has enlarged its basket of products and services, covering almost the

entire spectrum of industrial activities, including manufacturing and services. IDBI provides

financial assistance, both in rupee and foreign currencies, for green-field projects as also for

expansion, modernization and diversification purposes. In the wake of financial sector

reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based

services with a view to providing an integrated solution to meet the entire demand of

financial and corporate advisory requirements of its clients. IDBI also provides indirect

financial assistance by way of refinancing of loans extended by State-level financial

institutions and banks and by way of rediscounting of bills of exchange arising out of sale of

indigenous machinery on deferred payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (1964-91),in

catalyzing broad based industrial development in the country in keeping with its

Government-ordained ‘development banking’ charter. In pursuance of this mandate, IDBI’s

activities transcended the confines of pure long-term lending to industry and encompassed,

among others, balanced industrial growth through development of backward areas,

modernization of specific industries, employment generation, entrepreneurship development

along with support services for creating a deep and vibrant domestic capital market, including

development of apposite institutional framework.

Narasimam committee recommends that IDBI should give up its direct financing

functions and concentrate only in promotional and refinancing role. But this recommendation

was rejected by the government. Latter RBI constituted a committee under the chairmanship

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of S.H.Khan to examine the concept of development financing in the changed global

challenges. This committee is the first to recommend the concept of universal banking. The

committee wanted to the development financial institution to diversify its activity. It

recommended to harmonies the role of development financing and banking activities by

getting away from the conventional distinction between commercial banking and

developmental banking.

In September 2003, IDBI diversified its business domain further by acquiring the

entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBI’s

foray into the retail finance sector. The fully-owned housing finance subsidiary has since

been renamed ‘IDBI Home finance Limited’. In view of the signal changes in the operating

environment, following initiation of reforms since the early nineties, Government of India has

decided to transform IDBI into a commercial bank without eschewing its secular

development finance obligations. The migration to the new business model of commercial

banking, with its gateway to low-cost current, savings bank deposits, would help overcome

most of the limitations of the current business model of development finance while

simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDB

(Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament in December 2003.

The Act provides for repeal of IDBI Act, corporatization of IDBI (with majority Government

holding; current share: 58.47%) and transformation into a commercial bank. The provisions

of the Act have come into force from July 2, 2004 in terms of a Government Notification to

this effect. The Notification facilitated formation, incorporation and registration of Industrial

Development Bank of India Ltd. as a company under the Companies Act, 1956 and a deemed

Banking Company under the Banking Regulation Act 1949 and helped in obtaining requisite

regulatory and statutory clearances, including those from RBI. IDBI would commence

banking business in accordance with the provisions of the new Act in addition to the business

being transacted under IDBI Act, 1964 from October 1, 2004, the ‘Appointed Date’ notified

by the Central Government. IDBI has firmed up the infrastructure, technology platform and

reorientation of its human capital to achieve a smooth transition.

IDBI Bank, with which the parent IDBI was merged, was a vibrant new generation

Bank. The Pvt Bank was the fastest growing banking company in India. The bank was

pioneer in adapting to policy of first mover in tier 2 cities. The Bank also had the least NPA

and the highest productivity per employee in the banking industry.

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On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in

principle approval to the merger of IDBI Bank with the Industrial Development Bank of India

Ltd. to be formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer

of Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders

and other regulatory and statutory approvals. A mutually gainful proposition with positive

implications for all stakeholders and clients, the merger process is expected to be completed

during the current financial year ending March 31, 2005.

The immediate fall out of the merger of IDBI and idbi bank was the exit of employees

of idbi bank. The cultures in the two organizations have taken its toll. The IDBI BANK now

is in a growing fold. With its retail banking arm expanding further after the merger of United

western Bank.

IDBI would continue to provide the extant products and services as part of its

development finance role even after its conversion into a banking company. In addition, the

new entity would also provide an array of wholesale and retail banking products, designed to

suit the specific needs cash flow requirements of corporates and individuals. In particular,

IDBI would leverage the strong corporate relationships built up over the years to offer

customised and total financial solutions for all corporate business needs, single-window

appraisal for term loans and working capital finance, strategic advisory and “hand-holding”

support at the implementation phase of projects, among others.

IDBI’s transformation into a commercial bank would provide a gateway to low-cost

deposits like Current and Savings Bank Deposits. This would have a positive impact on the

Bank’s overall cost of funds and facilitate lending at more competitive rates to its clients. The

new entity would offer various retail products, leveraging upon its existing relationship with

retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the

new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most

preferred brand for providing total financial and banking solutions to corporates and

individuals, capitalising on its intimate knowledge of the Indian industry and client

requirements and large retail base on the liability side.

IDBI upholds the highest standards of corporate governance in its operations. The

responsibility for maintaining these high standards of governance lies with its Board of

Directors. Two Committees of the Board viz. the Executive Committee and the Audit

Committee are adequately empowered to monitor implementation of good corporate

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governance practices and making necessary disclosures within the framework of legal

provisions and banking conventions.

The economic development of any country depends on the extent to which its

financial system efficiently and effectively mobilizes and allocates resources. There are a

number of banks and financial institutions that perform this function; one of them is the

development bank. Development banks are unique financial institutions that perform the

special task of fostering the development of a nation, generally not undertaken by other

banks.

Development banks are financial agencies that provide medium-and long-term

financial assistance and act as catalytic agents in promoting balanced development of the

country. They are engaged in promotion and development of industry, agriculture, and other

key sectors. They also provide development services that can aid in the accelerated growth of

an economy

The objectives of development banks are:

To serve as an agent of development in various sectors, viz. industry, agriculture, and

international trade

To accelerate the growth of the economy

1. To allocate resources to high priority areas

2. To foster rapid industrialization, particularly in the private sector, so as to provide

employment opportunities as well as higher production

3. To develop entrepreneurial skills

4. To promote the development of rural areas

5. To finance housing, small scale industries, infrastructure, and social utilities.

In addition, they are assigned a special role in:

Planning, promoting, and developing industries to fill the gaps in industrial sector.

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Coordinating the working of institutions engaged in financing, promoting or developing

industries, agriculture, or trade, rendering promotional services such as discovering project

ideas, undertaking feasibility studies, and providing technical, financial, and managerial

assistance for the implementation of projects

Industrial development bank of India

The industrial development bank of India(IDBI) was established in 1964 by

parliament as wholly owned subsidiary of reserve bank of India. In 1976, the bank’s

ownership was transferred to the government of India. It was accorded the status of principal

financial institution for coordinating the working of institutions at national and state levels

engaged in financing, promoting, and developing industries.

IDBI has provided assistance to development related projects and contributed to

building up substantial capacities in all major industries in India. IDBI has directly or

indirectly assisted all companies that are presently reckoned as major corporates in the

country. It has played a dominant role in balanced industrial development.

IDBI set up the small industries development bank of India (SIDBI) as wholly owned

subsidiary to cater to specific the needs of the small-scale sector.

IDBI has engineered the development of capital market through helping in setting up

of the securities exchange board of India(SEBI), National stock exchange of India

limited(NSE), credit analysis and research limited(CARE), stock holding corporation of India

limited(SHCIL), investor services of India limited(ISIL), national securities depository

limited(NSDL), and clearing corporation of India limited(CCIL)

In 1992, IDBI accessed the domestic retail debt market for the first time by issuing

innovative bonds known as the deep discount bonds. These new bonds became highly

popular with the Indian investor.

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IDBI BANK

In 1994, IDBI Act was amended to permit public ownership up to 49 per cent. In July

1995, it raised over Rs 20 billion in its first initial public (IPO) of equity, thereby reducing

the government stake to 72.14 per cent. In June 2000, a part of government shareholding was

converted to preference capital. This capital was redeemed in March 2001, which led to a

reduction in government stake. The government stake currently is 51 per cent.

In august 2000, IDBI became the first all India financial institution to obtain ISO

9002: 1994 certification for its treasury operations. It also became the first organization in the

Indian financial sector to obtain ISO 9001:2000 certification for its forex services.

IT Team @ IDBI Ltd

IT Team at IDBI Ltd under the strong management leadership has successfully

aligned business objectives with the smart technological implementations to the optimum

utilization for the organizational advantage.

The concept of any time, any where banking has been made possible by offering

uniform services across various alternate channels such as ATM, Phone banking, Mobile

banking, Internet banking, etc. All the channels are integrated to the core banking system in a

secure and real time basis.

In the last 12 months our Bank has launched several technologically innovative and

customer-centric key initiatives, providing effective alternate channels of payment to the

customers. This has also resulted in weaning away a number of customers from the

traditional banking channels to the more cost-effective alternate channels. Furthermore, there

has been a substantial improvement in the staff productivity, since the employees now focus

on business development rather than mundane operations.

IDBI Ltd has set the examples in product & services deliveries leveraging the

technology platforms available to its efficiency & reliability to overall boost the customer

confidence & perspective.

IDBI Ltd believes in the principle of keeping the tech-team trim and utilize their

services optimally to deliver cutting-edge; rather bleeding-edge technological solutions. We

have very judiciously decided on the outsourcing strategy. This enables our internal team to

IMK KOLLAM 22

IDBI BANK

focus on new initiatives and enhancements to existing products. We also endeavor to ensure

that the technological solutions that we provide are scalable and cost-effective.

Technology and Tech Initiatives

In IDBI Ltd, expenditure on technology is considered to be an investment and not a

cost. Investment in technology is part of the plan to put in place building blocks for creating

the right organizational infrastructure. Large investments have been made in back-end

technology to strengthen processes, systems and control. This, in the long run, propelled by a

top quality management team has clearly set IDBI Ltd apart from its competitors.

Keeping in line with the policy of leveraging technology to drive its business, IDBI

Ltd constantly endeavors to implement and deploy new & emerging technology to drive the

business needs to the extent of not just meeting, but exceeding customer expectations. IDBI

Ltd has always endeavored to use its high-technology platform to provide cutting-edge

services to its customers.

IDBI Ltd offers its clients, fully secured and real time electronic delivery channels,

providing convenient and secure access to the banking information. It also provides its

customers centralized multi-branch connectivity integrated to a heterogeneous Core Banking

System across branches in India. This integration provides a seamless access point for clients

for all the banking products and services across the channels.

IDBI Ltd believes in a better-integrated customer relationship channel for superior

customer service. The bottom line is to make all services available through all channels as

listed below.

Branch banking

Internet Banking

Mobile banking

Tele-banking

ATM Network

Multi- Functional Kiosk Network

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Point of Sale transactions

IDBI Ltd is the only bank that allows its customers to pay all their bills across any

channel i.e. Branch, ATM, Phone Banking, Mobile banking and Internet banking with Auto

pay facility. For example, a customer may register for his mobile bill payment through

Internet banking. He can pay the bill through ATM or Phone banking or Mobile banking,

when the bill is presented.

Keeping pace with the ever-rising demands of our modern day clients, it has been our

endeavor to provide value added service with cutting edge technologies to our clients. In this

direction our Bank has launched many payment initiatives. The capabilities of Internet

banking and web-enabled talking ATMs have been fully exploited in most of these initiatives.

Using a single access to IDBI Ltd's Internet Banking, a customer can query & transact

a variety of information related to different applications / products, access the Demat

particulars, access the details with respect to GOI bonds, make a Card-to-Card transfer, effect

an online tax payment, purchase National Savings Certificate, Cash Management, etc.

IDBI Ltd was also the frontrunner with respect to secured electronic transmission of

tax collection data through the usage of Digital Signature Certificates.

IDBI Ltd launched a strategic Internet Banking platform to facilitate on line payments

to & from corporate customers & its dealers /agents, thereby enhancing corporate business

through new-age technology and offering supply chain financing solutions.

Overall IT spending for year 2005-2006

Overall IT Spending for year 2005-2006 was approximately 50 Crores approximately.

Major spending this year has contributed to the branch automation initiative and the data

center set up catering to computing requirements of the growing organization. In tangible

benefits derived from smart implementations of IT initiatives are summarized as follows:

The Returns on Investment (ROI) for implementing IT in organizational processes in

the range of 50-75%. Organizational processes have improved and tasks get

completed with great efficiency, speed and accuracy.

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IDBI BANK

Customer centric initiatives improved the customer satisfaction as measured in terms

of Number of Positive responses by customers.

Improved performance levels measured interms of TAT through State of the art

computing infrastructure and technology platform Integration for centralized

Monitoring, Control and Reporting.

In the Post merger scenario, the very important activity was completed that is to

seamlessly integrate the IT team at both the units of IDBI Ltd. The major IT initiatives were

focused towards centralization and Application/system integration of both the units i.e. the

erstwhile IDBI and IDBI Bank to consolidate and bring it to the common technology

platform. Also there was a pressing urgency to set up the state- of-the-art IT Infrastructure to

cater to the ambitious growth needs of the merged entity.

Some of the specific Initiatives are showcased below:

Customer Centric Innovative Value Added Service Delivery

Airline ticketing through ATM Network

IDBI Ltd. is the First Bank In The World To Launch Airline Ticketing Through

ATM. We launched a first of its kind retail innovation in the world by incorporating the

convenience of booking airline tickets on our ATMs. We have tied up with Indian Airlines to

provide this service for booking domestic air tickets through our ATMs. IDBI customers can

now use their Debit cum ATM card at the nearest IDBI ATM and key in the travel details to

buy an airline ticket 24 x 7. The transaction slip generated by the ATM can be exchanged for

a boarding pass at the airport upon showing proper identification proof. This utility allows

customers to choose the best possible travel option at the best prices.

Internet Banking Enabled Multi-Functional KIOSK

The bank has enabled Internet Banking on Multi-functional Kiosk, which will fulfill

the banking, needs of our customer base spread including remote locations through out the

country. Customer can access their account summary, clearing details and statement details

through their Debit / ATM card, which can be viewed or printed. All services available to

Internet Banking customers are available through Kiosk. Non-customers can view the

IMK KOLLAM 25

IDBI BANK

products offered by the Bank and also request for additional information on various products.

Website Integration of Both SBUs

IDBI website is the "Single Window" facility for accessing various services offered

by the bank ranging from Project finance to Retail banking. Customers can access the

Corporate as well as Retail I-Net banking facility through the corporate website. Customers

can also access their World Currency & Cash CARD Accounts through Website.

Post merger the Corporate web site was revamped totally by merging the two

websites i.e. of IDBI Ltd & erstwhile IDBI Bank into a single website representing truly the

IDBI Ltd as a homogeneous entity and accommodated the entire products & services

portfolio from both the entities.

Website provides other utilities like EMI calculators, Real time Stock market updates,

latest news updates to make the customers feel comfortable.

Corporate Internet Banking

We have migrated our Corporate Internet Banking to Finacle eCorporate, a more

robust & functionality rich java based platform. Finacle eCorporate offers a host of additional

features and functionalities to our clients, some of which are highlighted below.

1. Multi level workflow rules for financial transactions based on corporate specific

needs.

2. Corporate role mapping, where the hierarchy of the corporate users can be mapped

and financial transactions can be based on the organizational matrix.

3. Creation of Division wise / Zone wise / Region wise account classification, giving

clients the flexibility to decide who views which account within the company.

4. Maker checker facility for online tax payments.

5. Corporate level administrator, who can do user maintenance related activities at the

corporate end.

6. Transaction copy feature to save time while entering similar transactions.

7. Multi record entry/approval/ rejection of transactions.

IMK KOLLAM 26

IDBI BANK

National Electronic Funds Transfer (NEFT)

IDBI has setup a structure to initiate electronic communication with the IDRBT and

the other banks. The structure of this system is more tuned towards the decentralized scenario

keeping in view the non-networked PSU banks

We have leveraged the existing setup of fully networked branches and devised an end

to end solution which blends seamlessly with our core banking system viz Finacle. This

system requires bare minimum data capture on part of branches. The central processing unit

can then, at per stipulated times, generate data uploads to-n-fro the NEFT system. This way,

outward debit and inward credit transactions through NEFT has become almost an extension

of our core banking system. The system is built using the J2EE Architecture and can be

ported / scaled up on any other platform should the need be.

Insta Online Account Facility

Insta Online Account is yet another customer friendly initiative from IDBI Bank. It is

a web-based account opening facility, which is accessible to the NRI clients through our site.

Insta Online Account helps convert a casual NRI browsing our site into our esteemed client -

on real-time basis. The facility offers convenience of opening account from anywhere, at

anytime to the NRI Customers and it is a Zero cost of high quality customer acquisition with

no direct sales effort / cost.

Setting up The Srate-of-The-Aat IT Infrastructure

Setup of Data Center and Disaster Recovery Center

With a view to ensure better customer service and in order to cater to the future

computing requirements of the growing organization, we built a new Data Center (DC) at

Industrial Development Bank of India Ltd., IDBI Building, Plot No 39/40/41, Sector 11,

CBD - Belapur, Navi Mumbai - 400 614

It may be added, this is a LEVEL-3 Data Center with state-of-the-art systems and

solutions to provide very high uptimes with no single point of failure. The development of a

Disaster Recovery Center (DRC) is also completed at Chennai to take care of Business

continuity in case of disaster. Both the centers have state-of-the-art systems and solutions to

IMK KOLLAM 27

IDBI BANK

provide for very high uptimes with no single point of failures. Unique feature about this DRC

is that it is a 100% replica of DC with online DRC backup system.

Branch Automation

IDBI Branch network automation is one of the important technology driven initiative

that has been kicked off this year. The first phase will automate around 100 branches across

country leveraging WAN/LAN/Leased line based network connectivity with the high quality

IT soft wares, hardware and network equipments.

Technology Platform Integration

We have successfully integrated following DFI products into the organizational

Technology platform Finacle to provide a common technology platform for centralized

Monitoring, Control and Reporting.

Suvidha Accounts Centralization

IDBI Ltd has a term deposit product called SUVIDHA offered as Fixed Deposit from

DFI. These accounts were managed in decentralized branch level system and there

was no centralized set up for monitoring, parameterization and MIS generation at the

entire bank level. This centralization initiative aimed at consolidating Bank's Bank's

entire customer accounts into single & centralized system and provide a common

technology platform for generating MIS centrally.

NCAS (New Centralized Accounting System) Migration into Finacle

NCAS (New Centralized Accounting System) is one of the subsystems used by DFI

unit at IDBI Ltd for managing all their GL level entries. All Asset Liability

Management MIS are managed by this system. This particular initiative aimed at

migrating the existing NCAS system into common technology platform i.e. Finacle

for providing online browser based centralized GL system for entire bank and

facilitating online centralized MIS for decision support.

Corporate Finance System Migration to Finacle

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IDBI BANK

IDBI has decided to move from Informix based disparate systems at various locations

to an Oracle based centralized and on-line system of Finacle Core Banking Solution,

with a view to move to a single centralized database for the entire bank and single

unified GL for better MIS and supervision. The requisite system was developed in-

house, with the help of external expertise, which will seamlessly integrate with our

Core Banking solution without any manual intervention.

Common Exposure Reporting System

The initiative aimed at providing the centralized, online and consolidated MIS

Generation system for the entire bank's exposure reporting. The system integrates the

centralized core-banking system from commercial banking unit and the distributed branch

level systems from DFI unit seamlessly to provide common platform for compliance

reporting and managing entire bank's exposures effectively

Milestones

July 1964: Set up under an Act of Parliament as a wholly-owned subsidiary of

Reserve Bank of India.

February 1976: Ownership transferred to Government of India. Designated Principal

Financial Institution for co-coordinating the working of institutions at national and

State levels engaged in financing, promoting and developing industry.

March 1982: International Finance Division of IDBI transferred to Export-Import

Bank of India, established as a wholly-owned corporation of Government of India,

under an Act of Parliament.

April 1990: Set up Small Industries Development Bank of India (SIDBI) under

SIDBI Act as a wholly-owned subsidiary to cater to specific needs of small-scale

sector. In terms of an amendment to SIDBI Act in September 2000, IDBI divested

51% of its shareholding in SIDBI in favour of banks and other institutions in the first

IMK KOLLAM 29

IDBI BANK

phase. IDBI has subsequently divested 79.13% of its stake in its erstwhile subsidiary

to date.

January 1992: Accessed domestic retail debt market for the first time with innovative

Deep Discount Bonds; registered path-breaking success.

December 1993: Set up IDBI Capital Market Services Ltd. as a wholly-owned

subsidiary to offer a broad range of financial services, including Bond Trading, Equity

Broking, Client Asset Management and Depository Services. IDBI Capital is

currently a leading Primary Dealer in the country.

September 1994: Set up IDBI Bank Ltd. in association with SIDBI as a private sector

commercial bank subsidiary, a sequel to RBI's policy of opening up domestic banking

sector to private participation as part of overall financial sector reforms.

October 1994: IDBI Act amended to permit public ownership upto 49%.

July 1995: Made Initial Public Offer of Equity and raised over Rs.2000 crore, thereby

reducing Government stake to 72.14%.

March 2000:Entered into a JV agreement with Principal Financial Group, USA for

participation in equity and management of IDBI Investment Management Company

Ltd., erstwhile a 100% subsidiary. IDBI divested its entire shareholding in its asset

management venture in March 2003 as part of overall corporate strategy.

March 2000: Set up IDBI Intech Ltd. as a wholly-owned subsidiary to undertake IT-

related activities.

June 2000: A part of Government shareholding converted to preference capital, since

redeemed in March 2001; Government stake currently 58.47%.

August 2000: Became the first All-India Financial Institution to obtain ISO

9002:1994 Certification for its treasury operations. Also became the first organization

in Indian financial sector to obtain ISO 9001:2000 Certification for its forex services.

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IDBI BANK

March 2001: Set up IDBI Trusteeship Services Ltd. to provide technology-driven

information and professional services to subscribers and issuers of debentures.

February 2002: Associated with select banks/institutions in setting up Asset

Reconstruction Company (India) Limited (ARCIL), which will be involved with the

Strategic management of non-performing and stressed assets of Financial Institutions

and Banks.

September 2003: IDBI acquired the entire shareholding of Tata Finance Limited in

Tata Homefinance Ltd, signalling IDBI's foray into the retail finance sector. The

housing finance subsidiary has since been renamed 'IDBI Homefinance Limited'.

December 2003: On December 16, 2003, the Parliament approved The Industrial

Development Bank (Transfer of Undertaking and Repeal Bill) 2002 to repeal IDBI

Act 1964. The President's assent for the same was obtained on December 30, 2003.

The Repeal Act is aimed at bringing IDBI under the Companies Act for investing it

with the requisite operational flexibility to undertake commercial banking business

under the Banking Regulation Act 1949 in addition to the business carried on and

transacted by it under the IDBI Act, 1964.

July 2004: The Industrial Development Bank (Transfer of Undertaking and Repeal)

Act 2003 came into force from July 2, 2004.

July 2004: The Boards of IDBI and IDBI Bank Ltd. take in-principle decision

regarding merger of IDBI Bank Ltd. with proposed Industrial Development Bank of

India Ltd. in their respective meetings on July 29, 2004.

September 2004: The Trust Deed for Stressed Assets Stabilisation Fund (SASF)

executed by its Trustees on September 24, 2004 and the first meeting of the Trustees

was held on September 27, 2004.

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IDBI BANK

September 2004: The new entity "Industrial Development Bank of India" was

incorporated on September 27, 2004 and Certificate of commencement of business

was issued by the Registrar of Companies on September 28, 2004.

September 2004:Notification issued by Ministry of Finance specifying SASF as a

financial institution under Section 2(h)(ii) of Recovery of Debts due to Banks &

Financial Institutions Act, 1993.

September 2004:Notification issued by Ministry of Finance on September 29, 2004

for issue of non-interest bearing GoI IDBI Special Security, 2024, aggregating

Rs.9000 crore, of 20-year tenure.

September 2004: Notification for appointed day as October 1, 2004, issued by

Ministry of Finance on September 29, 2004.

September 2004:RBI issues notification for inclusion of Industrial Development

Bank of India Ltd. in Schedule II of RBI Act, 1934 on September 30, 2004.

October 2004: Appointed day - October 01, 2004 - Transfer of undertaking of IDBI

to IDBI Ltd. IDBI Ltd. commences operations as a banking company. IDBI Act, 1964

stands repealed. January 2005:The Board of Directors of IDBI Ltd., at its meeting

held on January 20, 2005, approved the Scheme of Amalgamation, envisaging

merging of IDBI Bank Ltd. with IDBI Ltd. Pursuant to the scheme approved by the

Boards of both the banks, IDBI Ltd. will issue 100 equity shares for 142 equity shares

held by shareholders in IDBI Bank Ltd. EGM has been convened on February 23,

2005 for seeking shareholder approval for the scheme.

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CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

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TABLE No: 1 How satisfied are you overall with the service you received?

RESPONSES PERCENTAGE

Highly Satisfied 45

Satisfied 40

Dissatisfied 10

Highly Dissatisfied 5

TOTAL 100

Source: Primary Data

From the table it is clear that 45% are Higly satisfied, 40% are satisfied where as 10% are dissatisfied and 5% are highly dissatisfied

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CHART No: 1 How satisfied are you overall with the service you received?

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IDBI BANK

TABLE No: 2How satisfied are you with the speed in which the service/product was delivered?


Highly Satisfied 40

Satisfied 35

Dissatisfied 15


TOTAL 100


From the table it is clear that 40% are Higly satisfied,35% are satisfied where as 15% are dissatisfied and 10% are highly dissatisfied

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IDBI BANK

TABLE No: 2How satisfied are you with the speed in which the service/product was delivered?

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IDBI BANK

TABLE No:3 How satisfied are you with the ease of contacting the person you needed?


Highly Satisfied 20

Satisfied 57

Dissatisfied 10


TOTAL 100


From the table it is clear that 20% are Highly satisfied, 57% are satisfied where as 10% are dissatisfied and 13% are highly dissatisfied

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CHART No:3 How satisfied are you with the ease of contacting the person you needed?

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IDBI BANK

TABLE No: 4How satisfied are you with the clarity of information or advice provided?


Highly Satisfied 36

Satisfied 35

Dissatisfied 14


TOTAL 100



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CHART No: 4How satisfied are you with the clarity of information or advice provided?

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IDBI BANK

TABLE No: 5How satisfied are you with the time taken to respond to telephone enquiries?


Highly Satisfied 44

Satisfied 26

Dissatisfied 18


TOTAL 100



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CHART No: 5How satisfied are you with the time taken to respond to telephone enquiries?

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TABLE No: 6How satisfied are you with how your telephone enquiries were dealt with?


Highly Satisfied 33

Satisfied 47

Dissatisfied 12


TOTAL 100



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CHART No: 6How satisfied are you with how your telephone enquiries were dealt with?

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IDBI BANK

TABLE No: 7How satisfied are you with the time taken to respond to written /postal enquiries?


Highly Satisfied 36

Satisfied 54

Dissatisfied 7


TOTAL 100


From the table it is clear that 36% are Highly satisfied,54% are satisfied where as 7% are dissatisfied and 3% are highly dissatisfied

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IDBI BANK

CHART No: 7How satisfied are you with the time taken to respond to written /postal enquiries?

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IDBI BANK

TABLE No: 8How satisfied are you with the Staff behavior at the counter?


Highly Satisfied 41

Satisfied 29

Dissatisfied 12


TOTAL 100



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CHART No: 7How satisfied are you with the time taken to respond to written /postal enquiries?

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TABLE No: 9How easy was it to understand and complete the application form?


Highly Satisfied 36

Satisfied 51

Dissatisfied 13


TOTAL 100



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CHART No: 9How easy was it to understand and complete the application form?

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TABLE No: 10How satisfied are you with the relevant knowledge of the staff you dealt directly with?


Highly Satisfied 26

Satisfied 47

Dissatisfied 14


TOTAL 100



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CHART No: 10How satisfied are you with the relevant knowledge of the staff you dealt directly with?

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TABLE No: 11How satisfied are you with the courtesy of the staff?


Highly Satisfied 58

Satisfied 33

Dissatisfied 5


TOTAL 100



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CHART No: 11How satisfied are you with the courtesy of the staff?

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TABLE No: 12How satisfied are you with the helpfulness of the staff?


Highly Satisfied 60

Satisfied 24

Dissatisfied 10


TOTAL 100


From the table it is clear that 60% are Highly satisfied,24% are satisfied where as 10% are dissatisfied and 6% are highly dissatisfied

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IDBI BANK

CHART No: 12How satisfied are you with the helpfulness of the staff?

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IDBI BANK

TABLE No: 13How satisfied are you that the staff showed interest in you as an individual / treated you as a valued customer?


Highly Satisfied 33

Satisfied 37

Dissatisfied 19


TOTAL 100



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CHART No: 13How satisfied are you that the staff showed interest in you as an individual / treated you as a valued customer?

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TABLE No: 14How satisfied are you with the way problems were resolved?


Highly Satisfied 66

Satisfied 24

Dissatisfied 6


TOTAL 100



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CHART No: 14How satisfied are you with the way problems were resolved?

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CHAPTER V

FINDINGS, CONCLUSION AND SUGGESTIONS

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Findings

Regarding the overall satisfaction level 45% are Highly satisfied, 40% are satisfied

where as 10% are dissatisfied and 5% are highly dissatisfied.

Regarding the delivering speed of service / product 40% are Highly satisfied,35% are

satisfied where as 15% are dissatisfied and 10% are highly dissatisfied.

Regarding the ease of contacting the person needed 20% are Highly satisfied, 57% are

satisfied where as 10% are dissatisfied and 13% are highly dissatisfied

Regarding the clarity of information or advice provided 36% are Highly satisfied,35%

are satisfied where as 14% are dissatisfied and 15% are highly dissatisfied

Regarding the time taken to respond to telephone enquiries 44% are Highly

satisfied,26% are satisfied where as 18% are dissatisfied and 12% are highly

dissatisfied

Regarding that how your telephone enquiries were dealt 33% are Highly satisfied,

47% are satisfied where as 12% are dissatisfied and 8% are highly dissatisfied

Regarding the time taken to respond to written /postal enquiries 36% are Highly

satisfied,54% are satisfied where as 7% are dissatisfied and 3% are highly dissatisfied

Regarding the Staff behavior at the counter 41% are Highly satisfied, 29% are

satisfied where as 12% are dissatisfied and 18% are highly dissatisfied

Regarding the easiness to understand and complete the application form 36% are

Highly satisfied, 51% are satisfied where as 13% are dissatisfied and 9% are highly

dissatisfied

Regarding the knowledge of the staff 26% are Highly satisfied, 47% are satisfied

where as 14% are dissatisfied and 3% are highly dissatisfied

Regarding the courtesy of the staff 58% are Highly satisfied, 33% are satisfied where

as 5% are dissatisfied and 4% are highly dissatisfied

Regarding the helpfulness of the staff 60% are Highly satisfied,24% are satisfied


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IDBI BANK

Regarding the staff showing interest to treat valued customer that 33% are Highly

satisfied, 37% are satisfied where as 19% are dissatisfied and 11% are highly

dissatisfied

Regarding the way problems were resolved 66% are Highly satisfied, 24% are satisfied


.

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Conclusions

1. Consumers of Saket have good awareness level about IDBI bank as well as about its

services and products.

2. The advertising campaign has successfully been able to increase the market share of

IDBI in Saket.

3. The modern days technology like internet banking, phone banking, used by IDBI

bank for providing banking services has sent positive signals in the mind of

consumes.

4. The network of IDBI in Saket is lagging behind a little than its competitors like

ICICI bank and HDFC bank.

5. It can be distilled from data that IDBI bank has good market share as compared to its

competitors considering the amount of resources deployed by them in the market.

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SUGGESTIONS

1. Since there is only two branch of IDBI bank and only three atms in Saket, so it is

necessary for IDBI bank to open more branches and install more atms to serve the

vast market of saket especially.

2. More resources should be allocated in the market of Saket as there is big untapped

market in saket, so it becomes necessary for IDBI bank for taking an edge over the

competitors.

3. A short advertising campaign in Saket has produced good results in a short span of

times, so to gain long term benefits is very necessary for IDBI bank to carry on this

campaign with more intensity.

4. Besides opening more branches it should also look for opening some extension

counter in Kutub near meherauli and one in Khanpur.

5. As Government is the majority share holder in the shares of IDBI bank, which makes

this bank more reliable than other private banks, this thing can be used in the favour

of IDBI bank by making people aware about this fact and winning their faith.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Texts:

1. Kotler Philip(2005), Marketing Management :Pearson Education

2. Malhotra Naresh. K. -Marketing Research-Prentice –hall-4 th edition.

3. Sekaran Uma -Research Method For Business-John wiley&Sons-4 th edition.

4. S. Namakumari, S. Ramaswamy V -Marketing Management-Mc Millan India Ltd- 3

rd edition.

Reference

Company brouchers

Company Magazines

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APPENDIX

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Questionnaire

NAME………………………………………………………………………..…………………

AGE……………………………………. SEX: MALE/FEMALE

ADDRESS:……………………………………………………….

…………………………………………………………………………………………………

………………………….… …………………………………………………………..

………………………………………CITY……………………………………PIN

CODE…………….…………………………....

CONTACT NO. ……………….……………………………………………………………

1. How satisfied are you overall with the service you received?

Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied

2. How satisfied are you with the speed in which the service/product was delivered?


3. How satisfied are you with the ease of contacting the person you needed?


4. How satisfied are you with the clarity of information or advice provided?


5. How satisfied are you with the time taken to respond to telephone enquiries?


6. How satisfied are you with how your telephone enquiries were dealt with?


7. How satisfied are you with the time taken to respond to written /postal enquiries?


IMK KOLLAM 70

IDBI BANK

8. How satisfied are you with the Staff behavior at the counter?


9. How easy was it to understand and complete the application form?


10. How satisfied are you with the relevant knowledge of the staff you dealt directly with?


11. How satisfied are you with the courtesy of the staff?


12. How satisfied are you with the helpfullness of the staff?


13. How satisfied are you that the staff showed interest in you as an individual / treated you as a valued customer ?


14. How satisfied are you with the way problems were resolved?


15. Please use the space below for any further comments to your responses, or any

suggestions on how we could improve our services.

IMK KOLLAM 71

IDBI BANK

IMK KOLLAM 72

idbi final

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