A STUDY ON CUSTOMER SATISFACTION TOWARDS ICICI

BANKING SERVICE

Abstract:

Customer Satisfaction in a banking sector is the most imperative criteria and resources
for assessing and fulfilling clients and in this way builds the customer loyalty and normal
standard for dependability of clients. Among the service quality determinants Tangibility,
Responsiveness, Reliability, Assurance, Empathy have constantly assumed a crucial part, in
this paper an endeavour is made to discover the effects of Service Quality measurements on
Customer Satisfaction for the investigation it is discover that substantial quality dependability,
responsiveness and affirmation significantly affect Customer Satisfaction. At last, it is
discovered that there is no noteworthiness distinction out in public and private sector banks.

Introduction:

The banking regulation act 1949 defines “Banking” as “Accepting for the purpose of
lending and investment, deposits of money from the public repayable on demand or otherwise
and withdraw able by cheque, draft, order or otherwise”. A Bank is an organisation which lends
money to the borrowers for a purposeful task, and provides a facility to deposit and withdraw
money when needed and charge for it. Customer Satisfaction refers to how satisfied customers
are with the product or services they receive from a particular agency. ICICI Bank commenced
operations as a scheduled commercial bank in January, 1995. ICICI Bank began operations in
1995 with a simple mission to be a “World class Indian Bank”. In 1994 ICICI Bank was
incorporated, with its registered office in Mumbai, India. Its first corporate office and a full-
service branch at Sandoz House, Worli were inaugurated by the union finance minister,
Manmohan Singh. It realised that only a single-minded focus on product quality and service
excellence would help us get there. Today the Bank is proud to say that it is well on its way
towards that goal.

Globalization and liberalization dominated the each and every sphere of life and
economy of India. Banking which is an essential part of human beings is seemed to be raped
with these reforms and a huge change is seen in Indian banking system. Before these reforms,
people were concise to deposit and withdrawal of money from the bank and services standard
was becoming pathetic. The revolution swapped the age-age long problems of human being as
well as the marketing approach of the bank to revolve them to customer oriented. Many new
foreign banks came into the market and change the whole scenario of banking system through
their modern and technology based services. As reason Indian banks were also bound to follow
the latest trend, innovative services and facilities in their working environment to get and
maintain their huge market. With the coming of private sector bank as technology-savvy banks,
provided a lot of facilities to customers by offering them new products, new services, new
market and efficient delivery channels for the banking industry putting credit, debit, smart card
into the hands of customer with the development of Tele-banking and internet banking. With
years, banks are adding administrations to their clients. The Indian financial industry is going
through a period of clients showcase. The clients have progressively decision in picking their
banks. A challenge has been built up inside the banks working in India. The proficiency of a
financial part relies on how it can convey its administrations to target clients in most ideal
manner. So as to make due in this aggressive condition and give persistent consumer loyalty,
the suppliers of banking administration are presently required to ceaselessly improve the nature
of administrations.

Objective:

• To determine the factors influencing the level of customer satisfaction in ICICI Bank.
• To assess the level of customer satisfaction on the quality of service provided by the
ICICI Bank.
• To study customer preference about the ICICI Bank.

Review of Literature:

• Kotler (2000) described satisfaction as a person's way of thinking about satisfaction or

dissatisfaction resulting from the relationship of Product presentation. Customer's
thinking process and values also affect their satisfaction level. It is said that satisfaction
is a collection of Customers' beliefs about unbiased management.
• Hallowell Roger (1996) described in his research that banks should target only those
people who need those services the most. By this strategy, customers will remain loyal
to the bank for longer periods.
• Datta K. and Datta A. (2009) Described in their study that customer satisfaction is the
most important key by investigating the perception and expectation of customers in
ICICI Bank. His study proved that consumers are most satisfied with the services
provided by ICICI Bank. They suggested that ICICI bank should improve their banking
services for better outcomes.
• Siddiqi, (2011) conclude in his study that Consumer satisfaction is one of the essential
outcomes to market activity (Spreng et al.1996). In today’s highly ready for action
banking industry, consumer satisfaction is considered as the concentrate of success.
• Carruthers and Shao (2009) described that general internet banking service quality is
significantly connected to overall customers’ satisfaction in New Zealand banks. They
further added that the delivery of top-quality online service is termed for, for the
continuance or improvement of the bank's customers satisfaction.
• Manoranjan Mobapatra, et al., (2010) About Forty percent of the population in India is
unbanked. Since e-banking has evolved as a platform for future innovations that can
have long ranging socio-economic benefits for India and hence also be able to capitalize
on the Indian government’s dream of, one bank Account Per Indian; established in the
fact that e-banking is the need of the hour in India today. It is a win-win situation for
all concerned, operators’ banks and specialist companies are gradually getting
themselves organized to operate e-banking services banks are able to reach remote areas
without incurring the heavy expenses that opening a branch entails also the ATM
penetrating in rural areas is not that High with only forty ATM s per million people in
India.
• Bernadette D. Silva et al., (2010) conducted an Analysis for internet banking that the
bank corporate to understand that there are certain Parameters in e-banking which are
affected by the demographic status like Gender, Income level and Educational
Qualification etc., for opening internet bank account. Bank operations through internet
can attract longer customer and it will enhance the brand image of banks for usage of
sophisticated technology.
• KR. Kamath (2010) Banks may more towards universal banking driven by the forces
of deregulation, liberalizations, and technological advancement. The pressures would
emanate from super markets, utility service providers etc., Technology has played and
is playing a critical and arguably the most important role in redefining the financial
business. Banks are responding by offering alternative delivery channels like ATMs,
 Tele banking, internet banking, mobile banking etc., Most of the banks have already
implemented core banking solution (CBS) across all offices to provide “anytime
anywhere” banking in true sense.
• Abhijith. M and RemyaVivek Menon (2018), Stated that there are many other factors
like credibility, customer services, easiness of operations etc. which act as a driving
factor for improving customer satisfaction. The study also shows that the banks with
very high profit and closing stock price does not guarantee good customer satisfaction.
From the study it is found that the net profit and closing stock of a bank does not have
an impact in improving the customer satisfaction.
• Shah Malav Vineshkumar and Bhavin Bhatt (2018), Examined that the majority of
respondents are fulfilling their cash requirements through ATM service and they are
also happy with the number of ATM’s available in their locality, but most of
respondents are not happy with the transaction cost charged by banks for ATM service
and their mechanism to address the grievances of the ATM customers.

Limitation of the Study:

• The study is restricted to ICICI Bank branches situated in Tirupur City only.
• The study takes into analysis only the customer satisfaction of the account holders of
ICICI Bank in Tirupur.
• The result is obtained only by means of responses from the respondents, so there is a
chance for misstatement.

Tools for Analysis:

The primary data were coded, classified, tabulated and analysed. The statistical tools
used for analysis of the study are:

• Simple percentage Analysis.

• Likert scale Analysis.
• Ranking Analysis.
Statement of the Problem:

• To overcome the problems in ICICI net banking transactions and to improve customer
relationship management. Mainly to avoid server problems in ICICI mobile application.
To guide ICICI Representatives, to clearly mention the interest rates to the customers
before providing home loans.
• To overcome weakness, positive correlation between customer satisfaction and
customer retention towards ICICI Bank. There is need for an extensive study on the
rural customer’s perceptions on the service quality in banking service offered in rural
areas.

Scope of study:

It covers the banking features offered by the ICICI bank and its impact on customer’s
satisfaction. The scope of the study is restricted to Branches of ICICI in Tirupur only.

Questionnaire:

1. Your name?
_____________________.
2. Gender?
• Male
• Female
• Others

3. Age group?
• Below 20
• 20 – 40
• 40 – 60
• Above 60

4. Qualification of the respondents?

• SSLC
• HSLC
 • Bachelor degree
• Master degree

5. Occupational status?
• Student
• Employee
• Employer
• Others

6. Do you have a bank account in ICICI bank?

• Yes
• No

7. What type of account do you maintain?

• Savings
• Current
• Salary

8. From how many years do you have account with the bank?
• 1 – 3 years
• 3 – 6 years
• More than 6 years

9. Are you satisfied with the interest rates charged by Bank on you?
• Very Satisfied
• Satisfied
• Neutral
• Dissatisfied

10. Do you use Credit Card provided by the Bank?

• Yes
• No
11. Are you satisfied with Credit Card payment policies?
• Very Satisfied
• Satisfied
• Neutral
• Dissatisfied

12. Have you taken any loan from the Bank?

• Yes
• No

13. Are you satisfied with the interest rates charged on Loan?
• Very Satisfied
• Satisfied
• Neutral
• Dissatisfied

14. Do you use ATMs?

• Yes
• No

15. Are you satisfied with mobile banking facilities provided by the bank?
• Very Satisfied
• Satisfied
• Neutral
• Dissatisfied

16. What do you feel about overall service quality of the Bank?
• Good
• Excellent
• Bad

17. Are you satisfied with Internet Banking Facilities?

• Very Satisfied
 • Satisfied
• Neutral
• Dissatisfied

18. Are you satisfied with policies and procedures of the bank?
• Very Satisfied
• Satisfied
• Neutral
• Dissatisfied

19. How quickly were your banking problems and issues addressed by the bank staff?
• Immediately
• Within 48 hours
• More than 3 days

20. Are you able to use banking services online?

• Yes
• No

21. Are you satisfied with online banking?

• Very Satisfied
• Satisfied
• Neutral
• Dissatisfied

22. If you are provided with better service by optional bank. Would you like to move to
another bank?
• Yes
• No

23. Which service satisfies you most?

• ATM
• Net banking
 • Phone banking
• Loans

24. Would you recommend this bank to your friends and family?
• Yes
• No

25. Opinion on various Service charges of the ICICI bank

Very high High Moderate Low Very low

New Cheque
book
DD
Commission
Telegraphic
Transfer
Bill
discounting
Cheque/bill
collection
charge

26. Opinion on various service charges of the ICICI bank.

Very high High Moderate Low Very low

ATM
charges
Safety
locker
Demat
charges
Travelers
cheque
charges
Minimum
balance in
A/C
Other
transaction
charges