Chapter No.

06:

Critical Evaluation of
Marketing Strategies
of SBI.

Introduction.
Survey Observations.
Modern Banking Technology.
Introduction Of New Products And Services And
Technology By SBI
Customer Services in Banks.
Technology Based Services Offered by SBI.
Customer Experience with the Bank.
Strategies to Enhance Marketing Services of Bank.
Upgrade The Working Condition And Service.
Customer’s Satisfaction.
Promotional Strategies Adopted By SBI And Private
Sector Banks.
Responsibility of SBI in IT Age.
Major Hindrances.

Required features to SBI.

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Introduction:
State Bank of India is the largest nationalized commercial
bank in India in terms of assets, number of branches, deposits,
profits and workforce. With the liberalization of the Indian
banking industry in the mid-1990s, SBI faced stiff competition
from the private sector and foreign banks which resulted in
significant loss of its market share.1 The efforts of SBI to regain its
lost market share by undergoing a major restructuring exercise
which involved redesigning its branch network, providing alternate
banking channels, emphasis on lean structure and technology up
gradation. The study also discusses how SBI is building its image
as a customer friendly bank by launching innovative products &
services and promoting its brand. State Bank of India offers a
range of financial and banking services including life insurance,
merchant banking, mutual funds, credit card and factoring,
security trading and primary dealership in the money market. The
bank provides trading services, international banking and
traditional banking and treasury operations. SBI also offers
treasury services including international banking, corporate
banking, retail banking, NRI services, agricultural banking, small
and medium enterprise (SME) banking and other services.

SBI carried out various marketing initiatives to enhance its

reach. They included segregating and targeting existing high value
customers, cross sales of other products, setting up call centers and
outbound sales force to secure new customers. Plans were also
made to utilize database marketing to pursue large and medium
sized corporate, government and trade finance customers.

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Database marketing was expected to draw increased revenue from
cross selling, lower costs and increased customer loyalty. SBI also
introduced various other ways of reaching out to customers like
extension of hours of work and aggressive marketing through print
and television media. SBI increased daily working hours by two
hours and Sunday banking was introduced. The highly satisfied
customer is a very valuable asset for banks.2 On the basis of some
aspects, the study gives more emphasis on the new strategies to
enhance customer satisfaction in banks.

Survey Observations:
The following are the highlights of survey observation:
 The study reveals that the banks will focus more on the
parameters of business intelligence, customer relations, real
time analysis during customer interactions, partnership with
customer, overall improvements in marketing performance,
improvement in services, management information system
and customer contact on multiple touch points respectively
in future for CRM implementation.

 The Automated Teller Machines (ATM) is changing the

behavior of the consumer, from a cash economy to plastic
card economy.

 There are a lot of advantages of an ATM as they are working

round the clock, and make cash available when necessary. It
is also eliminates the need for traveling to the branch where
the customer is maintaining his account.

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 Phone banking is an exclusive facility wherein the customer
is given access to his account query.

 The World Wide Web is the most important internet service.

Internet banking is a strategic product and a new distribution
channels. It involves using the internet to offer interaction
between the banks and customer such as e-mail, feedback
forms, etc.

 Customer services are one area where banks can compete

and where they can develop a competitive advantage.

 It is still the customer who establishes the future success of a

banking business.

 The most effective tools about the advertisement in

respondents' opinion is that advertising on television will be
the better option for better marketing of bank products and
services.

 The respondents look agrees with the statement that the

information provided by SBI is more reliable than private
sector banks because that is truer and complete.

 It is inferred from the study that customers are less satisfied

by the quality and nature of services provided by bank
employees.

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 Customers have a feeling that bank charges for the products
and services offered are very high.

 Tele-calling and personal selling of SBI branches did not

show high exposure.

 Overall satisfaction of a customer from his bank is very much

necessary because this is the only factor that helps any
organization to increase its business as a delighted customer
will always bring more customers whereas an unhappy
customer will drive away to more prospective customer.

 The opportunities are immense to enter new business and

new markets, to develop new ways of working, to improve
efficiency and to deliver higher level of customer service.

 The banks have taken positive steps to improve ambience of

branches. However; in view of increasing competition and
soaring expectations of customers, the progress is not in tune
with market expectations and competitor’s achievement.

 Few branches were found to be split on two floors leading to

problems for customers especially for older customers and
also leading to problems of controlling by managers.

 Few branches were found with inadequate space for

customers.

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 The condition of furniture and fixtures is still not found to be
up to the mark in several branches.

 Some branches were not located in proper places. General

problems observed were inadequate space, improper access,
poor visibility, parking problems, etc.

 Many branch’s front portions are highly disorganized

specially the way the posters are placed and the information
on various issues like time norms, business hours, details of
schemes, procedure for opening an account, etc. are
displayed for customer but union’s posters were found to be
displayed at the entrance of some branches.

 There have been several instances of ATMs not functioning

properly. These problems are – ATMs swallowing the cards
and no receipts given, ATMs not working and shut downs
and Debit for unsuccessful transactions.

 In many SBI branches it is observed that the passbook

printers are not working properly resulting into long
customer queues and dissatisfaction.

 One of the major constraints being faced at branches is high

age profile of employees who have very low adaptability to
technology. Inspite of technology adoption by the bank, the
human productivity remains low because the employees are
not able to exploit full potential of technology.

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 Due to high age profile and improper attitude many
employees are unwilling to go out of branches for marketing
activities.

 Attitude of some employees towards the customers is not

found to be very cooperative.

 Branches in rural and semi urban areas lack specialized

manpower to effectively deal with new technology, marketing
and effective selling.

 There found to be a vast scope of improving the leadership

skills of the branch managers.

 Some branches have acute staff shortage while on the other

hand there are branches which appear to have excess staff. In
either case the customer service is suffering.

 Due to the lack of computer knowledge, even for a minor

technical problem the branch manager has to contact the
software engineer or head office, due to which much time is
lost leading of frustration amongst employees and
customers.

 It was noticed that marketing officers or agencies providing

marketing support to branches for selling third party
products do not properly understand the branch situation
leading to over promising to the customer.

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 Branches have reported about increased complaint due to
improper functioning of ATMs which has increased their
workload with adverse effect on customer service.

 Some branches are not clear about whom to contact for ATM
related problems.

 ATM related complaints by the customers are not attended

promptly.

 Branches have also reported about shortage of new notes for

feeding ATMs.

 Inordinate delays are reported about issuing of ATM cards.

 Support for machine breakdown is not provided promptly by

head office.

 The customer of the banks particularly the higher age group

are not very confident of using technology based products
and services. A part of the problems is because of lack of
adequate efforts by the branches to educate them.

 A standardized and systematic marketing approach based on

hardcore customer data seems to be lacking. Aggressiveness
in marketing is not seen i.e. continuous follow up, visits,
product wise posters and inserts, etc of new products.

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 Good location of some branches situated in localities with
high potential has not been fully exploited. Some of these
branches do not have the requisite infrastructure, ambience,
quality staff, technology support, marketing support etc.

 It is noticed that the banks have taken concrete steps towards

general publicity, product publicity is still lacking.

 Products and services manuals are not readily available.

 The branches are also required the support of marketing

officers.

 There are services which the customer expects the banks to

provide on phone but many branches do not provide the
same.

 The branch managers are often burdened with routine work

with very little time left for customers.

 Many branches do not accept old or mutilated notes leading

to customer dissatisfaction.

 Frequent transfer of officers affects customer service.

 Communication by e-mail is still not popular in the banks.

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  The procedure of collection of outstation cheques continues
to be an issue of dissatisfaction amongst customers as it takes
a long time.

Modern Banking Technology:

The entry of new private sector banks with the state-of-the-
art technology and lean structures has forced the SBI to respond to
the new challenges with aggressive restructuring measures. The
past five years have seen the SBI rapidly introducing new products
and services, computerizing and networking key branches,
rationalizing manpower and launch a number of initiatives to
improve operating efficiencies. To survive and thrive in the long
run, banks need to pursue strategies that enable them to develop
resources that are inimitable, rare, durable and superior to
competitors.3

Financial sector reforms have resulted in increased

competition among the Indian banks. Simultaneously, customer
awareness and expectations have grown due to openness of
economy, advent of information technology and revolution of
media, etc. Banks are compelled to take care of their customers as
a means of achieving competitive advantage. The customer’s choice
of banks is determined by quality service in addition to their
financial strength and operational efficiency. Lack of interest in
services can partly be attributed to the fact that there was little
understanding of the differences between the management of
services and the manufacturing of an organization. Quality is thus
relative and subjective and depends on the perceptions and

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expectations of the customer with respect to the service offered. 4
For service sector companies such as banking, the issues and
challenges of services quality are of the utmost significance. Poor
service quality places such organization at a competitive
disadvantage. If customer perceives that service quality is
unsatisfactory, they will not hesitate to switch over their business
elsewhere. In recent years, it has been witnessed that there is
discontentment with regards to service quality, even when the
quality of many manufactured goods appear to have improved
significantly. The recent trends in much service organization are to
consider service quality as a critical factor enabling them to achieve
a differential advantage over their competition.

Introduction Of New Products And Services And

Technology By SBI:

SBI launched an array of products and services, especially on

the retail front, to match the competition. Some of the new
products include debit cards, credit cards, international cards,
special deposits, sweep-in accounts, demat accounts and any-
where-banking. Some of the new services include round-the-clock
phone-banking, Automated Teller Machines (ATMs), inter-city,
inter-branch banking, net-banking and bill payment services.
Many public sector banks have even launched their own asset
management companies to offer mutual fund services to their
customers.

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 Banks invested aggressively in computerization and
networking of branches. SBI Jalna, had computerized its total
branches. Many of these branches were also networked so that
their customers could be offered ‘any-time, any-where’ banking
services. The other public sector banks too embarked on a similar
computerization drive. SBI have made heavy investments in the
installation of large networks of ATMs. ATMs proved a tremendous
success by reducing the load on branches significantly as, apart
from carrying out routine transactions such as cash withdrawal etc,
customers can avail such services as transfer of funds and payment
of utility bills by visiting any of the ATMs located conveniently.

Customer Services in Banks:

Customer services in banks means satisfying the needs of
customers at the right time and in the right manner. Accuracy,
reliability, high service sped, security and enquiry facility of the
efficient customer service. The excellent and managing customer
relationship is the future of any business or everybody’s business.
Customer focusing is not being viewed as just a business strategy
but should become a corporate mission. Once good service is
extended to a customer, a loyal customer will work as an
Ambassador to the bank and facilitate growth of business.5 For
delivering quality service, it is imperative to have customer
orientation as a culture in the bank. The customer orientation
builds long term relationships resulting in customer satisfaction
and cash flows to the bank. There were three types of customer
services provided by bank to its customer, this are-

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 Customer service over counter: In this category any
inordinate delay in customer service at the counter is most
irritating and embarrassing experience to the client who was
a great deal of their precious time in getting the transactions
completed. As a result of such poor and inefficient service
banks sometimes lose good clients. In most of the cases,
clients don’t question the banks regarding the norms laid
down for various transactions, for lack awareness and
knowledge. It is unfortunate that banks take undue
advantage of such ignorant clients and do nothing in
improving the counter service. One cannot deny that
listening to a customer is an important art that should be
adopted by the bankers in order to render prompt as well as
efficient service over the counter.

 Customer services through correspondence:

Customer services through correspondence are also a very
important activity. Prompt action or response of a client’s
grievance or clarification or some points or just enquiry will
not only satisfy him but also build confidence even if the
problem is not solved. It is seen that customers verbal
complaints or enquiries are not being entertained properly
by the officials who prefer and demand everything in writing
which is not always possible for the clients to comply with for
various reasons such as time, lack of writing skill and even
availability of pen or paper. Hence the importance of client’s
correspondence and its prompt response should not be
ignored by the bankers. There are some banks in the country

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 who are providing first class service and very prompt in
written communication. They are very particular about
customer care and providing world class services and
facilities.

 Service Through Telephone: Telephone calls are

generally attended by the branch manager, assistant branch
manager or an officer. In case the above officers are not
available at a particular time when a client is calling, it will
not be attended, resulting in the disappointment of the client.
It’s a common practice, though there is no any hard and fast
rule that forbids other staff members for receiving and
attending incoming calls. It is just need of little sense of duty
and service. All the staff members and officials must bear in
mind that rules are made as guidelines, meant for the
efficient and personalized customer service and not for
disregarding the customer’s convenience and satisfaction.
Rules must be respected and followed but not at the cost of
customer care and services. Besides, this, decision making
process also has a vital impact on the customer service, more
so on account of the internal negligence and shortcomings on
the part of the bankers, either at the receiving level or at the
paying level. In any case, customers should not be made to
suffer for no faults of their. But the facts remains that even a
simple decision is never taken either by an officer or the
manager to tackle such situation.

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 The establishment of new private and foreign banks has
rapidly changed the competitive landscape in the Indian consumer
banking industry and placed greater demands on banks to gear
themselves up to meet the increasing needs of customer. It is no
longer adequate for banks to provide only traditional banking
services; \Apart from providing the conventional banking services,
banks have begun offering a bouquet of financial services to their
clients, including cross selling of financial products. The ultimate
aim is to offer a one stop shop for meeting varied customers’
financial needs. Some banks have begun employing customer
relationship management systems to not only retain the existing
customers but also to attract new customer.

Human factor is an essential ingredient of customer service

to bring about optimum customer satisfaction, which still appears
to be a far cry in banks. The reason obviously lies in the absence of
proper attitude and lack of appreciation of customer service. A
study reveals that maximum number of customer quit the bank
because of the indifferent attitude of the employees.

Technology Based Services Offered by SBI:

Banking operations and process were reengineering with the
introduction of technology. Several new products were introduced
by SBI in Jalna District. Internet banking, ATMs, phone banking,
debit cards, credit cards, etc. were some of the new arrivals.
Introduction of Core Banking Solution (CBS) integrated the
operation of a bank across various locations. A central server
replaced all branches level and controlling office level servers. Each

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and every transaction happening across any services point lime a
branch or ATM is recorded in that server. CBS even we can say
eliminates branch in favour of bank facilitating the client of one
branch to conduct transactions in his account in another branch.
Cash withdrawal from any ATM of the branch is made possible by
CBS. Most of the ATM are equipped to conduct several other
transactions, apart from cash withdrawals, like account transfer,
payment of bills etc. Internet banking is gaining prominence where
information from central server is made accessible to the account
holder using a pin or passwords.6 Account statement, account
transfer facilities, bill payment facilities, etc. are more some of the
facilities given by SBI to the customers. SBI have its own website
through which banks publicize their products and services.

In brief the SBI is rapidly undergoing a structural change due

to the emergence of the Internet. It has changed collectively the
battlefield as banking moves from-
 Economic of scale to altering the rules of competitions.
 Capital requirement to knowledge requirement.
 Branch and products differentiation to customer
segmentation / relationships.
 Access to distribution channels to access to customers.
 Regulated Government policies to unregulated global
market.
 Proprietary standards to eliminating switching costs.

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Customer Experience with the Bank:
The customer experience with the bank has been, of late of
two types, viz customer inconvenience and customer irritation-

 Customer Inconvenience: The customer during course of

transactions, monetary or non monetary may experience
several types of inconveniences like delay in completion of
transaction, disposal of correspondence and responses from
the banks. This cause inconvenience to the customer and
they try to find out the better alternatives and causes loss of
customer loyalty. To avoid such type of experiences, the bank
should ensure that there is no avoidable delay and if for any
valid reasons, the delay is inevitable, the customer should be
advised of the same. It is a common experience that if
customer is taken into confidence, he will always bear with
the bank and may not lodge any complaint. Thus
empathizing with the customer eliminates the complaints.

 Customer Irritation: At time there are instance when the

bankers especially credit cards organizations make frequent
calls over mobiles or telephones, telling people that there are
some schemes for their benefits without enquiring he profile
of the person on whom they are calling. They also go on
telling their things uninterruptedly without caring about the
sentiments of the customers and this goes on repeatedly.
This not only cause inconvenience to the customer, but also
irritation in them and they start avoiding such calls. Thus,

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 the customer irritation causes customer inconvenience and
loss of loyalty to banks.

Strategies to Enhance Marketing Services of Bank:

The performance of banks may be enhanced and it should be
enhanced to face global challenges. In preparing for these
challenges, The SBI will have to;

 Become more customers centric, offering a wide range of

products through multiple delivery channels.

 Become proficient in managing assets and liabilities

according to risk and return.

 Invest in technology for better MIS. Product development,

risk management, funds management and customer service.

 Pay greater attention to profitability, including cost reduction

and increasing fee based income.

 The key to meeting these challenges lies putting in place the

necessary systems and skilled staff, training and equipping
the workforce and making all out efforts to motivate and
retain staff with expertise.

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The bank also focuses on following points to enhance its customer
services standards:

 Transparency: The banks should disclose the full

information to the customers to win their confidence like
service charges, service tax, interest, penalty, if any, etc.

 Keeping front line staff engaged and motivated:

Service delivery has high correlation with the motivational
levels of banks front line staff. Banks should look at
managing employee equity as the key component towards
service delivery.

 Identifying customer segments and customizing

product / services: No two customers are the same. Many
time banks tend to treat them alike when it comes to
products or service delivery. Some customers can be
extremely savvy when it comes to technology, some could be
extremely shy. Some customers refer detailed investment
analysis other do not. So banks should able to customize
their products / service offers to target specific customer
segments.

 Awareness regarding e-delivery channels: As e-

banking is a new concept and more then 50 percent
respondents are not aware about e-channels and their
operating system, so the banks should provide appropriate
information and demo to operate these channels and solve

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 their any problem regarding these channels on priority basis
in a polite manner. The bank should provide operational
knowledge of e-channels with their each function to the
customers, separately to the different age groups and
occupation wise as well.

 Identification of prospective and potential

customers: This should be followed by identification of
customers’ needs, expectations, requirements etc. both
articulate and inarticulate.

 Good delivery: After designing services to suit the

segments of customers, good delivery is important. If the
delivery is made with speed, accuracy, courtesy and concern,
it is said to be a good delivery, Good service results when the
provider meets or exceeds the expectations of customers.

 Dealing with complaints: To deal with complaints of the

customers is another important task of management and
staff members of a bank. It is essential to be polite, please,
precise and prompt in the letters to the customers.
Customers should never be kept in the dark about their
complaints.
 Promised time: The quantum of work to be accomplished
within the prescribed working hours should be fixed for both
officers and clerks. Everyone should be accountable for
omissions and commissions. It is only when certain

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 disciplinary norms are established at a work place that
effective customer service is possible.

 Modify the system: There is an urgent need to modify the

existing system and procedures as vehicles for effective
delivery of customer service by way of introducing
Management Information System.

Upgrade The Working Condition And Service:

With the development of banking technology and openness
of banking sector of late, CRM has assumed a crucial role in
marketing banking products and services. 7 The problem of
customer service in banks is complex and dynamic one and there is
no readymade solution to overcome this problem. It has to be
tackled by banks in its totality and not on piecemeal basis.
Educating the staff members as well as customers on bank services
will go a long way in improving the customer related services.
Providing good service is a towering challenge. Every complaint of
a customer provides an opportunity to correct the deficiency and
lapses. Therefore, it is high time that the bankers must do their
best to upgrade the working condition and service to full
satisfaction of the cost conscious and convenience conscious
clients. Gaining trust and confidence of the account holders and
other clients must be made the business motto.

Marketing of products and services of the bank is a major

issue in the current transformation era. Therefore, special care is
needed to manage these services efficiently to make the bank

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employees satisfied with the working conditions etc. So that; they
can further provide best services to the valuable customers. Due to
e-marketing system, work culture is totally changed and there are
some problems due to which employees feel uncomfortable to work
electronically. Hence, there is need to solve these problems with
effective implementation of some strategies to make e-marketing
banking more popular among the employees.
 Effective training especially on the job should be given to all
the employees engaged in e-marketing system and are in
need to work efficiently so that their stress and confusion can
be eliminated.

 To access training needs, it will be more effective to fix

meeting for every last day of month to listen their problems,
confusions. It will help to eliminate their frustration due to
some difficulties and technical problems occurred during
their working hours.

 Research and development is an important task to grow and

lead in today’s competitive market. So every bank should
establish separate department by involving all he employees
with creative brain and by welcoming their suggestions to
motivate them, which will help to provide innovative services
to the customers.

 Make all the employees up to date by providing every current

information for any aspect of banking services and products
to develop knowledge management concept.

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 From the survey it is observed that the problem of lack of
knowledge regarding new channels and how to operate and
use these channels is a major bottleneck in the way of
progress of e-marketing channels. So firstly trained the
employees about each and every new concepts of e-
marketing system only then they can provide right
information to the customers to make them aware about
these e-channels. Customer prefer to know anything better
on the counter so arrange demo for how to use e-channels at
the counter rather through advertisement in news papers
and televisions etc.

 SBI should establish separate HRD department, which can

control all the aspects, issues, related to human resources. It
is necessary because now it has become a continuous and full
time process to create, develop and then maintain the human
resources in a way to make them more efficient and
adaptable to the changing environment.

 To make the employees more efficient and getting their

services to the desired goals, it is necessary to make them
satisfied with their jobs by providing proper training, friendly
work environment and up to date knowledge about all the
customers’ demands. E-marketing is at infant stage in the
Indian banking industry but has enveloped the whole
banking industry into a single net. Hence, there is a need to
improve and make some effective and practical efforts from
banks.

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Customer’s Satisfaction:
Customer is the kingpin around whom all the activities of the
banks revolve.8 The working of the customer’s mind is a mystery
which is difficult to solve and understanding the nuances of what
customer satisfaction is, a challenging task. We are analyzes 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 quantified into measurable targets. This provides an
easy way to monitor improvements, and deciding upon the
attributes that need to be concentrated on in order to improve
customer satisfaction. Thus, excellence in business development
can be easily achieved through customer delight.

In the emerging competitive environment and IT era, with

little or no distinction in the product offering, it is the speed or
rendering services that sets apart one bank from another. 9 Prompt
service is equated with quality service. Time is a major factor which
affects the quality and reputation of the bank. E-banks are
providing quick services and that is why they are becoming more
popular. Hence, it is very essential that all bank groups should put
in place the right kind of systems to further cut down on service
time and render instantaneous services to the customer. Only such
banks will tend to survive in the race for market shares in the days
to come. Those banks will out of the race whose services are poor
and customers are dissatisfied.

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Promotional Strategies Adopted By SBI And Private
Sector Banks:
Promotion has different aspects for different industries,
products and services. Its final goal is to communicate positive
word of mouth among existing and potential customers about the
corporate, product and service.10 In banking the customers must
be ensured that services provided by a particular bank have been
designed to give them maximum value of their money. In brief, it
can be said that in India wherever the dilemma of private and
public sector comes always two things are considered. SBI is more
reliable but not so good in the quality and innovativeness. Private
sector is not considered so reliable, there may be hidden charges in
the services and false and misleading information in the
advertising but they are better in the service quality. Private sector
banks must be more true and reliable first. They have to win the
hearts of the customers, after that they will be able to win minds as
well. In traditional tools of promotion both sectors' banks are
almost same. Private Sector banks are adopting more push
strategies to attract and catch the customers. This creates the
difference between promotional strategies adopted by SBI and
Private Banks.

Responsibility of SBI in IT Age:

In the age of information technology it is the duty of bank to
take more efforts for better customer services, this are-
 Banks should give demo regarding the use of e-banking.
 E-banking facilities provide by all the branches.
 Fee charges should be transparent.

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  Win customers confidence.
 Capture rural & semi urban customers.
 Software in regional language.
 Spread facility and mobile banking.
 Efficient and expert IT staff in bank.
 Maximum marketing with e-channels.
 Increase in expenditure on Research & Development.
 Banking with smiling face.
 Spread customer relationship management.
 Develop social relationship marketing.

The major implication of the present study is that quality services

counts too in banks also. Every bank should try to improve the
customer service to delight the customers. These qualitative waves
of services will helpful to win the new potential customers and
retain the old customers.

Major Hindrances:
The major hindrances in the way of delivery of financial
services is the-
1. Lack of basic knowledge and lack of awareness of
the products and services available from the bank:
People need information and advice when they either save
their money or get into debt. Such information and guidance
can best be delivered by appropriate mechanisms and if such
effective mechanisms are put in place through the banks,
they in turn would reinforce the demand for financial
services.

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 2. Difficulty or the lack of ease of addressing issues
that affect a common man: Despite concerted efforts,
the current state of transparency coupled with the difficulty
of consumers in identifying and understanding fine print
information leads to an information asymmetry between the
financial intermediary and the customer. It is important to
understand that the lack of such awareness in itself amount
to risk; and the challenge is to make customers aware of the
various risks. In terms of promoting financial inclusion,
much of the work is simply in providing easily understood
information in a safe and engaging environment.

Required features to SBI:

 Commitment To Quality Services: Services quality is
emerging as a new frontier of banking competition and
therefore, they will have to equip themselves with a
commitment to quality services. The entry of foreign and
private banks has posed a challenge to the monopoly enjoyed
by the SBI. With increase in competition, the importance of
quality services in banking has gained paramount important.
To survive the banks have to rethink and revive their strategy
in delivering quality services to attract and hold customers.
The quality service challenge involve developing new services
that will meet customers’ needs in a better manner,
improving quality and variety of existing services and at the
end providing and distributing these services in a manner
that best services the customers. The essence of quality
service should be delighting and exceed customer.
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  Relationship Banking: The process of relationship
banking in the Indian banking scenario would become more
important. SBI in future requires knowledge in information
technology and functional knowledge. The Banks need to be
careful in the selection of personnel as regards to their skills
as the requirement of job would be to take decisions based on
risk reward concept rather than process based
administration. The training and skills up gradation system
is also required to be aligned to desired competencies. Banks
need to acquire and offer new skills which will enable them
to establish good relations of mutual advantage.

 Research and Market Intelligence: SBI will have to set

up Research and Market intelligence units within the
organization, so as to remain innovative, to ensure customer
satisfaction and to keep abreast of market developments.
Banks will have to interest constantly with the industry
bodies, trade associations, farming community academic
research institutions and initiate studies, pilot projects etc.
for evolving better financial models.

By 2010, competitive pressures will become more intensified

in the banking environment in India and the markets will get
changed drastically with focus being customer centric. As time
passes, customer service will become an important aspect in
gaining competitive edge for survival with growth and profit for
banks. With customers demanding speed, efficiency and lower
costs, banks have to aim at achieving connectivity between

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branches , setting up of Central depository, generation of MIS,
prevention of frauds, evolving value added products, reducing
transaction costs, and new initiatives like CRM. The banks have to
provide alternative channels of delivery like ATMs, Tele-banking,
internet banking, etc. The provision of a host of financial services
will enable banks to acquire more customers, cut costs and
improve service delivery.

References:

1. Purohit K. K. and Mazumdar B. C. (2003) - Post Mortem of Financial

Performance and Prediction of Future Earning Capability of a Bank:
An Application of CAMEL Rating and Balanced Scorecard –Indian
Journal of Accounting, XXXIV(1).
2. Sankaranarayan V. (1995) - Performance of Public Sector Banks in
1994-95 -IBA Bulletin, XVII(8)
3. Ranjan Das -Choosing Strategies that Matter Lessons for Indian
Public Sector Banks- http://www.etstrategicmarketing.com)
4. Uppal R.K. & Poonam (2009) – Service: The Competitive Edge in
Banking – Sarup Book Publishers Pvt. Ltd.
5. Bhaskar P.V. (2004) – Customer service in Banks – IBA Bulletin, Vol.
XXVI, No. 8.
6. Uppal R.K. (2008) – Customer Perception of E-Banking Services of
Indian Banks: Some Survey Evidence – The ICFAI Journal of Bank
Management, Vol. VII, No. 1
7. Sureshchandar G.S. (2003) – Customer Perceptions of service Quality
in Banking Sector of a Developing Economy: A Critical Analysis –
International Journal of Bank Marketing, Vol. 21, No. 5
8. Mishra J.K. & Jain (2007) – Constituent Dimensions of Customer
Satisfaction: A Study of Nationalized and Private Banks – Prajnan,
Vol. XXXV. No. 4,

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9. Bhaskar P.V. (2004) – Customer Service in Bank – IBA Bulletin, Vol.
XXVI, No. 8,
10. Sarkar P. C. and Das. A. (1997) - Development of Composite Index of
Banking Efficiency: The Indian Case. Reserve Bank of India
Occasional Papers

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