EFFECT OF EMPLOYEES’ BEHAVIOUR ON CUSTOMER SATISFACTION IN AXIS BANK: A STUDY OF BRANCHES OF HARYANA REGION

Dr. Shagun Ahuja, Assistant Professor in Commerce, R.G. Government College, Saha

Pawan Kumar, Assistant Professor in Economics, R.G. Government College, Saha

The banking industry is one of the basic instruments of economic growth. It is considered the backbone of economic development, and change in its processes is deemed to have repercussions on the country's growth. Shekhar (2009) evaluated in his research that the essential part of the banking system is its financial viability. Banking: - Banking is defined as "accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, and order or otherwise".[i] Machiraju (2000) analyzed that Bank is being used since long time but there is no clear conception regarding its beginning. According to one view point, origin of the World Bank belongs to the world ‘banque’ to the Greek world ‘banque’. According to other viewpoint, Bank originated from the German world (itail) banque meaning joint fund. Casade San Criorgio was the first bank to be established in 1148.[ii] The first Public Bank was Bank of Venice. It was established in 1157. In the Indian context, banking is really the proxy and indeed the corner and sum total of overall economic growth of the country.

History of AXIS Bank Ltd.

AXIS Bank Ltd. was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 701 Branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. Sherden (1999) focused in his research that the Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. AXIS Bank Ltd. Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.[iii]

Customer Satisfaction:

Today’s companies are facing their toughest competition ever. Companies can outperform the competition if they can move from a product and sales philosophy to a marketing philosophy. John Chambers, CEO of Cisco systems, put it well: “Make your customer the center of your culture.” Too many companies think that it is the marketing or sales department’s job to acquire and manage customers, but, in fact, marketing is only one factor in attracting and keeping customers.[iv] The best marketing department in the world cannot sell products that are poorly made or fail to meet a need. The marketing department can be effective only in companies whose employees have implemented a competitively superior customer value-delivery system. Bank believes that customers estimate which offer will deliver the most value. Customers are value-maximizers, within the bounds of search costs and limited knowledge, mobility, and income. They form an expectation of value and act on it. Whether or not the offer lives up to the value expectation affects both satisfaction and repurchase probability.[v]

Review of Literature

R.R. Krishna (2006)[vi] has defined the profitability analysis in detail. According to him, it is a rate expression profit as a percentage of total aspects or sales or any other variable to represent assets or sales. What should be used in the numerator and the denominator to compute the profit rate depends upon the objective for which it is being measured.

Garg (2007)[vii] in his study on productivity and profitability of banks, measured productivity in terms of average business handled per employee. Average business was the sum of average deposits and average advances which was the output generated by the input of manpower. Profitability was measured as excess of income over expenditure. There were two kinds of income-one from funds based business in the form of interest, and the other from non-funds business in the form of exchange on remittances, commission on guarantee, letter of credit, and fees for services like consultancy. This income was adjusted against interest paid on deposits and borrowings, transaction costs and establishment expenses, to calculate the net income at the corporate level. The profits of individual branches were national based on Transfer Prices Mechanism. Large branches were, however, analyzed on the basis of two additional parameters – gross rate of return and expenses ratio. The study concluded that productivity and profitability could be improved by increasing the deposits and advances at a pace quicker than the pace of increase in the number of employees and also by increasing or decreasing expenditure.

R. Sholvapur (2008)[viii] in his article, “Profitability analysis of bank branches (spread burden approach) observes that profits alone justify the survival and growth of banks. The major activities are carried out at branch level. So it is important that it must be given proper attention. He says that various loss incurring branches must be ex-rayed.

According to CRISIL study (2009),[ix] it was concluded that lower operating expenses improved the profitability of banks, contrary to the popular perception that only trading profits helped the banking sector shore up their bottom lines. The reduction in operating expenses became possible through large scale VRS implemented by PSBs. As this reduction in operating expenses seems sustainable, a brighter future for the banking sector in India is expected. The study concluded that the banking sector is now reaping the benefits of rationalization of employee costs, and under taking various other cost – reduction initiative. The study pointed out that banks ability to repeat and sustain such initiatives would be a deciding factor in maintaining their productivity and profitability in the years to come.

Need and Importance of Study:

The above review literature show that the various studies had been conducted in relation to the Banking Sector in India but the study on the level of satisfaction among the customers of AXIS Bank has not been conducted so far. Further the customer is the centre point of all the marketing processes. Additionally with the increasing competition through the entrance of various banking firms along with the financial institutions, customer is gaining more importance. So the customer satisfaction becomes the significant area of study in the banking sector and AXIS Bank is the fastest growing bank in India. The above reasons prompted the researcher to endure the research work on the topic “Effect of Employees’ behavior on the satisfaction of customers in AXIS Bank Ltd.”.

Objective of the study

The objective of the study was to analyze the level of customer satisfaction with the behaviour of employees in the AXIS Bank Ltd.

Hypothesis of the Study:

Customers of the AXIS Bank Ltd. are satisfied with the employees’ behavior.

Scope of the Study:

The present study analysed the level of satisfaction among the customers of the AXIS Bank Ltd. in relation to the services provided by the AXIS Bank Ltd. The locale of the study was all the branches of the Haryana Region. There are 22 Branches of AXIS Bank Ltd. all over the Haryana region. All the branches were the part of study. The time period of the study was 2012-2016.

Research Methodology:

Descriptive research design was applied for investigation of the research problem. For the purpose of the study both primary and secondary data were used. Primary data was collected from 400 customers of the branches of the Haryana region. Sample of the customers was drawn on the basis of random sampling technique and while drawing the sample, care was taken that all the branches get adequate representation. The primary data was collected by administering an Interview Schedule which included the different queries relating to the selected parameters of the study. Secondary data was collected from the records available at branches and Head office, which included annual report, policy guidelines, books, magazines, journals and many other publications of the Bank. Before analysis of the data it was classified and tabulated. Data analysed through cross tabulation using the statistical parameters to see the effect of various parameters on the Customers satisfaction. Chi-square test was applied to check the association between the independent variables with the query.

AXIS Bank prides itself as a young and vibrant organisation and recognizes its employees as its greatest assets. Consequently, the employee satisfaction level in the Bank is, possibly, amongst the highest in the industry, and does not stem from the compensation package alone. Comprising of people drawn from different specialization and divergent backgrounds, the employees merge into a highly homogeneous working group, catalyzed by the informal and transparent HRD policies pursued by the Bank. In addition to an attractive compensation structure, bank also offers leased housing facilities, Medical, and health insurance and loan options. Employees in the Bank play a great role in making their clients satisfied and to convert them into the loyal customers. Realizing the importance of employees in increasing the level of customers’ satisfaction the AXIS Bank had provided its employees the list of Do’s and Don’ts which is as follow:

List of Do's and Don’ts Applicable to the Directors of Private Sector Banks (As Circulated by Reserve Bank of India)

The Board of Directors of AXIS Bank has adopted the same at its meeting held on 18th February, 2005

Do's

Attend the Board Meetings regularly and effectively.
Study the Board papers thoroughly and use the good offices of the Chief Executive for eliciting any information at the Board meeting.
Ask the Chairman to furnish you with the Board papers and follow-up reports on a definite time schedule.
Involve yourself as Director on the Board thoroughly in the matter of formulation of general policy and also ensure that performance of the bank is monitored adequately at Board levels.
Be familiar with the broad objective of the bank and the policy laid down by the Government and the Reserve Bank.
All constructive ideas for the better management of the bank and for making valuable contribution would be welcome.
You must work as a team and not sponsor or be prejudiced against individual proposals. The management on its part is supposed to furnish full facts and complete papers in advance.
Try to give as much of your wisdom, guidance and knowledge as possible to the management.
Try to analyze the trends of economy, assist in the discharge of management's responsibility to public and formulation of measures to improve customer service and be generally of constructive assistance to the bank management.

Don’ts

Do not send any instruction to any individual officer of the Bank or give direction to individual officer in any matter.
Do not involve yourself in any matter relating to personnel administration - whether it is appointment, transfer, posting or a promotion or a redressal of individual grievances of any employee.
Do not interfere in the day-to-day functioning of the Bank.
Do not approach or influence for sanction of any kind of facility from an individual branch manager or any other officer.
Do not involve yourself in the routine or every day business and in the management functions.
Do not participate in the Board discussion, if a proposal in which you are directly or indirectly interested comes up for discussion. Disclose your interest will in advance to the Chief Executive.
Do not reveal any information relating to any constituent of the Bank to anyone as you are under oath of secrecy and fidelity.
Directors should not send for individual officers of the Bank or give directions to such officers on any matter.
You should discourage the individual employee or unions approaching you in any matter.
You may indicate your directorship of the Bank on your visiting card/letter head, but the logos or distinctive design of the bank should not, however, be displayed on the visiting card/ letterhead.
Directors should not directly call for papers/files/notes recorded by various departments for scrutiny etc. In respect of agenda items to be discussed in the meetings, all information/ clarification that they may require for taking a decision will be made available by the executive.
Directors are expected to ensure confidentiality of the Bank's agenda papers/notes. Ordinarily, it is suggested that by way of abundant precaution, the Board papers may be returned to the Bank after the meeting.
Do not sponsor any loan proposal, building, and sites for Bank's premises, enlistment, or empanelment of contractors, architects, doctors, lawyers etc. Do not do anything, which will interfere with and/or be subversive of maintenance of discipline, good conduct, and integrity of the staff.

Code of Conduct for Employees

The Board of Directors of Axis Bank has adopted the same at its meeting held on 18th February, 2005

Code of Conduct

Every officer shall undertake and perform his duties in such capacity and at such places as he may be directed by the Bank.
Every officer shall maintain good conduct, discipline, punctuality and show courtesy and attention to all persons in their transactions or dealings with the Bank.
Every officer shall discharge his duties with utmost integrity, honesty, devotion, and diligence and do nothing which is unbecoming of him or which is likely to tarnish the image of the Bank. Cases of fraud and dishonesty will attract penalty of dismissal.
An officer shall maintain secrecy about the affairs of the Bank and its customers and will sign a declaration of fidelity and secrecy in the prescribed form.
No officer shall engage in any trade or business or accept employment or fee for any work done by him outside the Bank.
No officer shall take an active part in politics and stand for election anywhere outside the Bank.
No officer shall indulge in gambling or speculative activities in any shares, stocks, securities, commodities or valuables. He can, however, make bonafide investment of his own funds in such securities as he may wish to buy.
As Per SEBI (Investment Advice by Intermediaries) (Amendment) Regulations, 2001, it will be necessary that whenever any of our employees in the course of providing investment advices, speaks about any type of security (be it the Bank's shares or any other shares or debentures) to any analyst / media or in a public forum or writes in any newspaper or other publications, he will have to make a declaration about his own interest including long and short position in the said security. Further, it will also be incumbent upon him to disclose the interest of his dependent family members and of the employer (Bank) including their long and short positions in the said security. Similarly, should an employee recommend scrip for investment where the Bank has an investment, the person rendering such advice will have to disclose his own interests, his dependents' interest as also the Bank's interest.
An officer shall not enter into any personal dealings with customers or service providers (including contractors, consultants, and vendors) of the Bank which may result in undue pecuniary advantages to the officer.
No officer shall guarantee in his private capacity the pecuniary obligations of another person or agree to indemnify in such capacity another person from loss except with the prior approval of the Bank.
An officer shall so manage his private affairs as to avoid insolvency or habitual or excessive indebtedness. Issue of cheques by officers on their personal accounts without keeping sufficient balance therein is an act of serious misconduct and will attract stringent disciplinary action.
No officer shall indulge in sexual harassment which includes such unwelcome sexually determined behaviour (whether directly or by implication) as : physical contact and advances; a demand or request for sexual favours; sexually colored remarks; showing pornography, and Any other unwelcome physical, verbal, or non-verbal conduct of sexual nature.
Whether or not such conduct constitutes an offense of sexual harassment will be determined by a Complaints Committee formed for this purpose, who would receive and deal with the complaints lodged by the aggrieved staff.

Any violation of the code of conduct would constitute an act of misconduct for which disciplinary action may be taken by the Bank and would be punishable under the provisions for penalties. Every officer on first appointment and as on 31st March each year (beginning with 31st March, 2003), shall submit a return of assets and liabilities giving full details of: The immovable property owned or acquired or held by the officer in his/her name or in the name of any member of his / her family* or in the name of any other person; All financial securities and bank deposits including cash balances owned or acquired or held by the officer; Debts and other liabilities incurred by the officer directly or indirectly, including loans from the Bank.

For the purpose of this Rule "Family" means Spouse, whether residing with the officer or not, but does not include a legally separated spouse. Children or step children or adopted children of the officer whether residing with the officer or not and dependent wholly on such officer but does not include children or step children of whose custody the officer has been deprived of by or under any law; and Any other person related to, by blood or marriage to the officer or to the officer's spouse and wholly dependent upon such officer. The Bank may also, at any time, by general or special order, require an officer to furnish within a period to be specified in the order, a statement of moveable or immoveable property owned, held or acquired by the officer or on the officer's behalf or by any member of the officer's family as may be specified in the order. Such a statement shall, if so required by the Bank include the details of the means by which or the sources from which such property was acquired. The above statement of Asset and Liabilities should be furnished in the enclosed format on or before 30th June every year.

Non-submission of the above annual statements by officers would constitute an act of misconduct under the Bank's Staff Rules for which disciplinary action may be taken by the Bank.
Officers posted in branches and zonal offices should submit the form to their respective Zonal Heads. Zonal Heads and officers in Central Office should submit their forms to the Senior Vice President, HR Department at Central Office.
An officer, as a general rule, shall not accept gifts or other benefits other than of nominal value from any individual or concern having official dealings with the Bank or from any officer junior to him/her so as to avoid any possibility of such gifts or benefits even appearing to compromise business or official relationships. Officers must use their discretion in being satisfied that the gifts are indeed of nominal value.
No officer shall take or give or attempt to take or give any undue assistance or use or attempt to use any unfair methods or means in respect of any examination or test conducted or held by the Bank or any other authority or institution.
An officer shall comply with all the terms and conditions in respect of any loan, advance, or other facility granted by the Bank.
No officer shall use his position or influence directly or indirectly, to secure employment for his son, daughter or any other member of his family in any private undertaking having official dealings with the Bank (this will include the Bank's borrowers, contractors, consultants and vendors).

No officer shall grant on behalf of the Bank any loan or advance to himself or his spouse, a Joint Hindu Family of which he or his spouse is a member or a partnership with which he or his spouse is connected in any manner or a trust in which he or his spouse is a trustee, or a private or public limited company, in which he or his spouse hold substantial interest. No officer shall grant on behalf of the Bank any loan or advance to (a) a family member; (b) an individual who is the guarantor of a family member or an individual who is a partner in business of a family member; (c) a Joint Hindu Family in which a family member is a member; (d) a firm in which a family member is a partner, manager or guarantor; and (e) a company in which a family member holds substantial interest or is interested as director manager or guarantor, without prior permission of the Bank.

Officers may not contribute the Bank's funds or assets to any political candidate, party, charity, or similar organization; unless such contribution is expressly permitted by law/ regulation / directive and has been reproved by the appropriate authorized representative of the Bank.

An officer shall comply with all lawful and reasonable directions which may from time to time be given to him by an officer under whose control he may be placed.

Officers who suspect violations of the letter or spirit of the Bank's laid down systems, procedures or staff rules have an obligation to report their concerns to the Bank's designated Vigilance Officer. In relation to the above discussion the employee behaviour is determined by the above mentioned Do’s and Don’ts. The following queries were put to the customers to analyze the behaviour of the employees towards them and their role in increasing their satisfaction.

Table 1: Employees behaviour towards customers is always courteous

Attributes/ Responses	Ranks	Strongly Agree	Agree	Undecided	Disagree	Strongly Disagree	P
Age	Below 20 20-40 years 41-60 years Above 60 years	12 (100.0) 73 (66.40) 148 (68.20) 47 (77.0)	- (0.00) 37 (33.60) 67 (30.90) 14 (23.0)	- (0.00) - (0.00) 2 (0.90) - (0.00)	- (0.00) - (0.00) - (0.00) - (0.00)	- (0.00) - (0.00) - (0.00) - (0.00)	0.584
Educational Qualifications	Matric Graduate Post Graduate Ph.D.	20 (30.80) 58 (24.40) 24 (27.60) - (0.00)	37 (56.90) 137 (57.60) 45 (51.70) - (0.00)	5 (7.70) 31 (13.00) 7 (8.00) - (0.00)	3 (4.60) 7 (2.90) 9 (10.30) - (0.00)	- (0.00) 5 (2.10) 2 (2.30) - (0.00)	0.147
Type of Account	Saving Current F.D. R.D.	7 (21.90) 38 (41.80) 43 (18.60) 14 (38.90)	18 (56.30) 45 (49.50) 135 (58.40) 21 (58.30)	4 (12.50) 6 (6.60) 32 (13.90) 1 (2.80)	2 (6.30) - (0.00) 17 (7.40) - (0.00)	1 (3.10) 2 (2.20) 4 (1.70) - (0.00)	0.001