Comparison of Customer Satisfaction: Corporate vs Private Banks

Nowadays competitive economy banking sectors has been facing forceful challenges in regarding both customer base and performance. Giving customer satisfaction is highly significant function of service industry in today’s economic environment. Service quality is the excellent strategy and also play a key role in service sector in general and banking sector in particular to satisfy the customer’s need. The main objective of the research is to examine the customer satisfaction level between HDFC and corporative bank and also to find the benefits of customer satisfaction for the bank. There are two source of data - primary data and secondary data. The primary data is collected from questionnaire and secondary data is collected by previous researcher and Internet. There is statistical too, which is used in this study is percentage analysis and gap analysis. From this study the conclusion is that the customer satisfaction level of private bank (HDFC) is high than cooperative bank. Private bank is more polite and friendly to customer than cooperative bank and also private bank take more care in collection of personal information than cooperative bank. Employees are more capable in private bank to solve complaint adequately.

Introduction

History of Banking in India

In India banking system has been created in 18th century. The first bank is the general Bank of India which is opened in 1786 and the second is Bank of Hindustan; both of these banks are not in existence. The oldest bank in presence in India is the State bank of India, which created in the bank of Calcutta in 1806, which without interval became the Bank of Bengal this was one of the three presidency banks, the other are Bank of Bombay and the British East India Company. These banks merged in 1925 to form Imperial bank of India, which after India’s independence, became the State Bank of India.

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Classification of Banks in India

In India banks are basically classified as scheduled and non-scheduled banks. Scheduled banks are further classified as commercial banks and cooperative banks. Commercial banks are also further classified as public sector banks, private sector banks, foreign banks and Regional Rural Bank (RRB). And, cooperative banks are classified as urban and rural.

Cooperative Banks

Cooperatives banks are listed under the Cooperative Societies Act, 1912 and controlled by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws Act, 1965. All cooperatives stick with the principles of ‘one member, one vote’ and ‘no profit, no loss’. Basically, they are formed by a voluntary group of people with the aim of satisfying their economic, social and cultural needs in a joint venture.

HDFC Bank (Private Banks)

Private banks states that banks, whose majority of stake is held by individuals and corporations. HDFC Bank is an India banking and financial service company. It has its headquarters in Mumbai Maharashtra. It has almost 104,154 permanent employees. HDFC Bank is India’s largest private sector lender by assets bank. It ranked 60th in 2019 Brand Top 100 Most valuable Global brands. In 1994 HDFC Bank was incorporated, with its registered office in Mumbai, Maharashtra. Its first corporate office and a full-service branch were installed by the Union Finance Minister, Manmohan Singh.

Customers

A customer is an individual that buying another company’s goods or services. Most businesses compete with other companies to invite customers, either by advertising their products or by giving products at lower prices, in an effect to expand their customer.

Customer Satisfaction

Customer satisfaction shows fulfillment that customers develop from doing business with a firm. In other words, it shows that how happy the customers are with their transaction and also with overall experience with the company.

Objective

1. Examine the customer satisfaction level between HDFC and Corporative Bank.
2. Benefits of customer satisfaction for the Bank.

Literature Review

A review of previous studies shown that studies that examined the customer satisfaction between the co-operative bank in Indian, N. A. Kavitha and Muthumeenakshi says that co-operative bank are commonly formed by persons fitting to the same local or professional community or having a common interest and providing a wide range of banking and financial services like loans, deposits, banking accounts, etc. to the members. The banks were leading many studied to understand how product and service met or exceed customer prospects for the development of performance or quality of service. This study shows the positive attitude toward the service of bank and the behavior of employees for translation services. But related to other private and public banks, co-operative banks are little poorer in the acceptance of technology and modern tools. Slowly the co-operative banks are using more modern technology for facing competition from other banks and also for improving their services in qualitative manner.

A review of previous studies shown that studied that examined the customer satisfaction between the Private bank (HDFC Bank) in India. Rupesh Singh says that, after doing research for relative study of customer satisfaction for HDFC bank and state bank of India we came recognize different requirements of consumers, their respected suggestions, and responses to the different questions. With this data we can say that customer satisfaction level of most respondents is high for SBI and HDFC banks which is provided by survey. SBI and HDFC provider good service for the customers like ATM, NET banking, location advantages etc.

Research Methodology

It describes the source of data, sampling size, study area, sampling method, and testing of questionnaire. This study needs data to be collected from primary source and secondary source. The primary data is collected from questioners and the secondary data is collected from the various earlier research paper and Internet. Primary data was collected from questionnaires; secondary data was collected from different research paper and Internet.

Response of Study

Demographic Representation

1. Gender: Male - 26.9%; Female - 73.1%.
2. Age: 18-25 year - 92.3%; 26-30 year - 7.7%; 31-40 year - 0%; Above 40 - 0%.
3. Profession: Govt. Employee - 0%; Private Employee - 30.8%; Business - 3.8%; Self Employee - 0%; Student - 61.5%; Housewife
4. Monthly Income: Upto 10,000 - 57.9%; 10,000-20,000 - 31.6%; 20,000-30,000 - 5.3%; 30,000-40,000 - 5.3%; Above 40,000 - 0%.

Cooperative Bank Vs Private Bank (HDFC Bank)

According to the survey of this question, experience management team it is found that more people are satisfied in private bank than cooperative bank. The ratio of cooperative bank and private bank is 44.4% and 52%.

According to the survey of this question, care in collection of personal information it was found that more people are satisfied in private bank than corporative bank, the ratio between corporative and private bank is 52% and 68%.

According to the survey of this question, customer friendly environment at bank, it was found that more people are satisfied in private bank than corporative bank, the ratio between corporative and private bank is 52% and 67%.

According to the survey of this question, employees are capable of solving complaint adequately, it is found that more people are satisfied in private bank than cooperative bank. The ratio between cooperative bank and private bank is 52% and 76%.

According to the survey of this question, customer feedback service, it is found that more people are satisfied in private bank than cooperative bank. The ratio between cooperative bank and private bank is 41% and 68%.

According to the survey of this question, there is the provision of financial advices, more people say yes in private bank than cooperative bank. The ratio between cooperative bank and private bank is 62% and 65%.

According to the survey, more people are satisfied with overall service in private bank than cooperative bank. The ratio between cooperative bank and private bank is 66% and 72%.

Gap Analysis

With the help of gap analysis, we find that more care in collection of personal information is taken in private bank that is 68% than cooperative bank that is 52% out of 100%. Private bank has more customer friendly environment at bank than cooperative bank the ratio of cooperative bank and private bank is 52%and 67%. Employees more are capable of solving complaint adequately in private bank than cooperative bank the ratio is 52% and 76%. Customer feedback service is more adequate in private bank than cooperative bank the ratio is 41% and 68%.

Findings

According to the survey for employee of bank have the knowledge to answer customer question both bank customers are satisfied with the employees of bank. Private bank has more polite and friendly staff then cooperative bank. Private bank employees are always willing to help you than cooperative bank. Private bank employees have more experience management team than cooperative bank. Private bank employees are more capable in taking care in collection of personal information than cooperative bank. Private bank has more customer friendly environment than cooperative bank. Private bank employees are more capable of solving complaint adequately then cooperative bank. Customer feedback services is more adequately in private bank than cooperative bank. In private bank there is better provision of financial advices than cooperative bank. In both banks customers are satisfied with the overall service but in private bank customers are more satisfied than cooperative bank.

Conclusion

After directing research for relative study of customer satisfactions in cooperative bank and private bank I derived to know that there are different requirements of consumer and different reactions toward different questions. With the survey I can say that customer satisfaction level of private bank (HDFC) is high than cooperative bank. Private bank is more polite and friendly to customer than cooperative bank and also private bank take more care in collection of personal information than cooperative bank. Employees are more capable in private bank to solve complaint adequately. So, private bank provides more customer satisfaction than cooperative bank.

Limitation of the Study

• The sample was collected from Nagpur city only if we take different city may be the result will be different.
• The sample size was 60 only if we take more samples may be the result will be different.

References

1. Dr.E.Hari Prasad, 2017 (Associate Professor) Service quality and customers satisfaction in HDFC bank, Pacific Business Review International Volume 9 issue 11, May 2017.
2. N.A. Kavitha and Muthumeenaskshi, 2016 A study of Customer Satisfaction and Perception towards the service of co-operative Banks, Published in International Journal of Engineering Technology, Management.
3. Rupesh Singh, SBI and HDFC “Comparative Study of customer’s Satisfaction towards HDFC bank and State Bank of India”.
4. https://www.google.com/search?q=researchgate+link&oq=link+of+resear&aqs=chrome.4.69i57j0l5.15929j0j7&sourceid=chrome&ie=UTF-8
5. https://www.google.com/search?q=investopedia&oq=inves&aqs=chrome.5.69i57j0l5.44817j0j9&sourceid=chrome&ie=UTF-8