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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.
  1. 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 AgreeAgreeUndecidedDisagreeStrongly DisagreeP

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 QualificationsMatric

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 AccountSaving

    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
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
The data presented in the Table 1 relating to the query whether the employee behavior towards customer is always courteous. On the basis of variable age all the respondents (100 per cent) below the age of 20 years strongly agreed with the poser and highly significant majority of respondents (above 90.00 per cent) either strongly agreed or agreed with the view point. On the basis of educational qualifications the more of matriculates (87.70 per cent) and graduate respondents (82.00 per cent) as compared to post graduate respondents (79.30 per cent) favored the aspect. Categorizing the data on the basis of type of account of the customers the less proportion of saving account holder (78.20 per cent) and F.D. holders (77.00 per cent) in comparison to the highly significant majority of current A/c holders (91.30 per cent) and R.D. holders (97.20 per cent) found the behavior of the employees of AXIS Bank always courteous.
Statistically significant association was found between the variable type of A/c and the query.
Table 2: Number of employees in the branches of AXIS Bank is satisfactorily
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age in years

Below 20

20 -40

41-60

Above 60
-
(0.00)
27
(24.50)
59
(27.20)
16
(26.20)
-
(0.00)
62
(56.40)
128
(59.00)
29
(47.50)
12
(100.0)
17
(15.50)
15
(6.90)
9
(14.80)
-
(0.00)
3
(2.70)
13
(6.00)
3
(4.90)
-
(0.00)
1
(0.90)
2
(0.90)
4
(6.60)
0.001
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
25
(38.50)
72
(30.30)
32
(36.80)
-
(0.00)
32
(49.20)
125
(52.50)
38
(43.70)
-
(0.00)
4
(6.20)
29
(12.20)
6
(6.90)
-
(0.00)
2
(3.10)
9
(3.80)
11
(12.60)
-
(0.00)
2
(3.10)
3
(1.30)
-
(0.00)
-
(0.00)
0.021
Type of AccountSaving

Current

F.D.

R.D.
10
(31.30)
39
(42.90)
69
(29.90)
11
(30.60)
15
(46.90)
43
(47.30)
119
(51.50)
18
(50.00)
2
(6.30)
7
(7.70)
26
(11.30)
4
(11.10)
4
(12.50)
1
(1.10)
15
(6.50)
2
(5.60)
1
(3.10)
1
(1.10)
2
(0.90)
1
(2.80)
0.354
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
Table 2 highlights the responses to the statement that number of employees in the branches of AXIS Bank is satisfactory. On the basis of age both the respondents in below 20 years of age group remained undecided which show that they visited very less to the office of AXIS Bank whereas the high majority of respondents (73.70 per cent) with above 60 years of age and significant majority of respondents (above 80 per cent) in the remaining two age groups were satisfied with the number of employees and did not find rush in the queues to get their work done. Irrespective of the educational qualifications the significant majority of respondents (above 80.00 per cent) supported the assertion. Highly significant majority of Current A/c holder (90.20 per cent), significant majority of F.D holders (81.40 per cent) and R.D. holders (80.60 per cent) along with the high majority of Saving A/c holder (78.20 per cent) supported the poser. Statistically significant association was found between the variable of age and the statement.
Table 3: Employees listen to the problems of customers is patiently
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
30
(27.30)
71
(32.70)
28
(45.90)
-
(0.00)
63
(57.30)
107
(49.30)
25
(41.00)
12
(100.0)
9
(8.20)
24
(11.10)
4
(6.60)
-
(0.00)
8
(7.30)
11
(5.10)
3
(4.90)
-
(0.00)
-
(0.00)
4
(1.80)
1
(1.60)
0.487
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
20
(30.80)
90
(37.80)
32
(36.80)
-
(0.00)
39
(60.00)
111
(46.60)
43
(49.40)
-
(0.00)
4
(6.20)
12
(5.00)
7
(8.00)
-
(0.00)
2
(3.10)
18
(7.60)
4
(4.60)
-
(0.00)
-
(0.00)
7
(2.90)
1
(1.10)
-
(0.00)
0.411
Type of AccountSaving

Current

F.D.

R.D.
13
(40.60)
41
(45.10)
78
(33.80)
10
(27.80)
12
(37.50)
42
(46.20)
116
(50.20)
23
(63.90)
4
(12.50)
3
(3.30)
14
(6.10)
2
(5.60)
2
(6.30)
4
(4.40)
17
(7.40)
1
(2.80)
1
(3.10)
1
(1.10)
6
(2.60)
-
(0.00)
0.397
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
Analyzing the data presented in the Table 3 it was found that significant majority of respondents (above 80.00 per cent) in the group of above 20 years either agreed or strongly agreed that employees of AXIS Bank listen to their problems patiently but both of respondents in below 20 years remained undecided. In relation to the variable educational qualifications the highly significant majority of matriculates (90.80 per cent) and significant majority of graduates (84.40 per cent) and the postgraduates (86.20 per cent) favored the view point. More of highly significant majority of Current A/c holder (91.30 per cent) and R.D. holders (90.70 per cent) as against high majority of Saving A/c holders (78.10 per cent) and significant majority of (84.00 per cent) of F.D. holders supported the assertion.
Statistically no significant association was found between the variables and the query.
Table 4: High value services are provided to the customers by the employees of AXIS Bank
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
46
(41.80)
76
(35.00)
20
(32.80)
6
(50.00)
56
(50.90)
109
(50.20)
27
(44.30)
-
(0.00)
3
(2.70)
13
(6.00)
7
(11.50)
-
(0.00)
4
(3.60)
17
(7.80)
3
(4.90)
6
(50.00)
1
(0.90)
2
(0.90)
4
(6.60)
0.271
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
29
(44.60)
77
(32.40)
36
(41.40)
-
(0.00)
23
(35.40)
134
(56.30)
34
(39.10)
-
(0.00)
9
(13.80)
13
(5.50)
5
(5.70)
-
(0.00)
4
(6.20)
11
(4.60)
12
(13.80)
-
(0.00)
-
(0.00)
3
(1.30)
-
(0.00)
-
(0.00)
0.002
Type of AccountSaving

Current

F.D.

R.D.
12
(37.50)
35
(38.50)
80
(34.60)
15
(41.70)
15
(46.90)
47
(51.60)
115
(49.80)
14
(38.90)
1
(3.10)
6
(6.60)
15
(6.50)
5
(13.90)
3
(9.40)
2
(2.20)
20
(8.70)
2
(5.60)
1
(3.10)
1
(1.10)
1
(0.40)
-
(0.00)
0.433
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
When the customers were put with the query whether the high value services are provided by the employees to them, the responses obtained are highlighted in the Table 4. On the basis of age the favoring responses of the respondents with more than 20 years declined with the increase in the age of the respondents leading us to infer that those customers who were senior citizens did not find employees of AXIS Bank providing high value services. On the basis of educational qualifications the significant majority of respondents (above 80.00 per cent) irrespective of the educational qualifications either agreed or strongly agreed with the statement. On the basis of type of A/c the maximum of respondents with R.D. A/c (13.90 per cent) remained undecided about the view point. Further the same proportion of Saving A/c holders (84.40 per cent) and F.D. holders (84.40 per cent) favored the aspect along with the highly significant majority of Current A/c holders (90.10 per cent).
Statistically significant association was found between the variable of educational qualifications and the statement.

Table 5: Employees provided the customers suitable suggestions whenever demanded by them
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
44
(40.00)
65
(30.00)
33
(54.10)
-
(0.00)
53
(48.20)
115
(53.00)
23
(37.70)
6
(50.00)
10
(9.10)
14
(6.50)
2
(3.30)
-
(0.00)
3
(2.70)
22
(10.10)
2
(3.30)
        6
(50.00)
-
(0.00)
1
(0.50)
1
(1.60)
0.000
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
27
(41.50)
69
(29.00)
25
(28.70)
-
(0.00)
22
(33.80)
128
(53.80)
44
(50.60)
-
(0.00)
6
(9.20)
16
(6.70)
6
(6.90)
-
(0.00)
8
(12.30)
20
(8.40)
11
(12.60)
-
(0.00)
2
(3.10)
5
(2.10)
1
(1.10)
-
(0.00)
0.296
Type of AccountSaving

Current

F.D.

R.D.
10
(31.30)
32
(42.90)
63
(27.30)
16
(44.40)
14
(43.80)
50
(54.90)
116
(50.20)
14
(38.90)
4
(12.50)
4
(4.40)
17
(7.40)
3
(8.30)
4
(12.50)
2
(2.20)
32
(13.90)
1
(2.80)
-
(0.00)
3
(3.30)
3
(1.30)
2
(5.60)
0.030
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
The data presented in the Table 5 is relating to the query whether the employees provided the customers suitable suggestions whenever demanded by them. It was found that the highly significant majority of respondents (91.80 per cent) who were senior citizens (above 60 years) supported the assertion. Additionally the significant majority of respondents (above 80.00 per cent) in the age group of 20-60 years also found the same. Further the proportion of respondents who remained uncertain decreased with the increase in their age, which shows that customer become more aware with the increase in age. Analyzing the data on the basis of educational qualifications, the proportion of respondents who strongly disagreed with the query declined with the increase in educational qualifications. Interestingly the high majority of respondents (above 70.00 per cent) irrespective of their level of education favored the assertion. In relation to the variable type of A/c the more of highly significant majority of respondents (97.80 per cent) with Current A/c as against the high majority of respondents (75.10 per cent) with Saving A/c and F.D. A/c (77.50 per cent) favored the view that employees provided the customers suitable suggestions whenever demanded.
Statistically significant association was found between the variables of age, type of A/c and the query.
Table 6: Telephonically problems of customers are solved by the employees
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
43
(39.10)
60
(27.60)
18
(29.50)
12
(100.0)
50
(45.50)
106
(48.80)
36
(59.00)
-
(0.00)
7
(6.40)
20
(9.20)
1
(1.60)
-
(0.00)
9
(8.20)
27
(12.40)
3
(4.90)
-
(0.00)
1
(0.90)
4
(1.80)
3
(4.90)
0.148
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
13
(20.00)
55
(23.10)
26
(29.90)
-
(0.00)
23
(35.40)
124
(52.10)
45
(51.70)
-
(0.00)
8
(12.30)
24
(10.10)
5
(5.70)
-
(0.00)
12
(18.50)
20
(8.40)
9
(10.30)
-
(0.00)
9
(13.80)
15
(6.30)
2
(2.30)
-
(0.00)
0.014
Type of AccountSaving

Current

F.D

R.D
10
(31.30)
32
(35.20)
44
(19.00)
8
(22.20)
14
(43.80)
43
(47.30)
121
(52.40)
14
(38.90)
3
(9.40)
5
(5.50)
25
(10.80)
4
(11.10)
4
(12.50)
7
(7.70)
26
(11.30)
4
(11.10)
1
(3.10)
4
(4.40)
15
(6.50)
6
(16.70)
0.088
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
            The data presented in the Table 6 relating to the query that telephonically problems of customers are solved by the employees. On the basis of age it was found that all the respondents in the age group of below 20 years, significant majority of respondents (88.50 per cent) in the age group of above 60 years and between 20-40 years (84.60 per cent) along with the high majority of respondents (76.40 per cent) in the age group of 40-60 years either agreed or strongly agreed that employees of AXIS Bank solve the problem of customers telephonically also. In relation to variable educational qualifications the proportion of respondents favoring the statement increased with the increase in the educational qualifications and maximum of 81.60 per cent of postgraduate respondents supported the query. Further the proportion of undecided, disagree, strongly disagree respondents declined with the increase in educational qualifications. On the basis of the variable type of A/c, the significant majority of respondents (82.50 per cent) who were current A/c holders and high majority of respondents (above 70.00 per cent) in the remaining categories favoured the view point.
Statistically significant association was found between the variable of educational qualifications and the statement.    
Table 7: I had never had any complaint against the employees of the AXIS Bank
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
26
(23.60)
51
(23.50)
17
(27.90)
12
(100.0)
53
(48.20)
104
(47.90)
33
(54.10)
-
(0.00)
16
(14.50)
16
(7.40)
5
(8.20)
-
(0.00)
11
(10.00)
24
(11.10)
6
(9.80)
-
(0.00)
4
(3.60)
22
(10.10)
-
(0.00)
0.166
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
28
(43.10)
71
(29.80)
25
(28.70)
-
(0.00)
25
(38.50)
103
(43.30)
36
(41.40)
-
(0.00)
1
(1.50)
16
(6.70)
6
(6.90)
-
(0.00)
6
(9.20)
29
(12.20)
16
(18.40)
-
(0.00)
5
(7.70)
19
(8.00)
4
(4.60)
-
(0.00)
0.282
Type of AccountSaving

Current

F.D

R.D
14
(43.80)
39
(42.90)
56
(24.20)
15
(41.70)
10
(31.30)
40
(44.00)
99
(42.90)
15
(41.70)
3
(9.40)
2
(2.20)
16
(6.90)
2
(5.60)
3
(9.40)
6
(6.60)
42
(18.20)
-
(0.00)
2
(6.30)
4
(4.40)
18
(7.80)
4
(11.10)
0.004
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
Table 7 highlights the responses to the statement that customer had no complaints against the employees of the AXIS Bank. On the basis of age all the respondents (100.0 per cent) in the age group of below 20 years, high majority of respondents (71.80 per cent) in the age group of 20-40 years and the respondents (71.40 per cent) in the age group of 41 - 60 years along with the significant majority of respondents (82.00 per cent) senior in age (above 60 years) supported the statement that they had no complaint against the employees of the AXIS Bank. The respondents (21.20 per cent) were maximum in the age group of 41-60 years who either disagreed or strongly disagreed with the poser. On the basis of educational qualifications it was found that the proportion of favouring responses to the query declined with the increase in the educational qualifications of the respondents. On the basis of the type of A/c variable, the current A/c holders (86.90 per cent) and R.D. holders (83.40 per cent) were more to support the poser as against the saving A/c holders (75.10 per cent) and F.D. holders (67.10 per cent). Statistically significant association was found between the variable of type of A/c and the statement.

Table 8: Employees give value to the customer’s satisfaction
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
6
(50.00)
34
(30.90)
71
(32.70)
18
(29.50)
6
(50.00)
49
(44.50)
84
(38.70)
30
(49.20)
-
(0.00)
6
(5.50)
10
(4.60)
7
(11.50)
-
(0.00)
15
(13.60)
33
(15.20)
3
(4.90)
-
(0.00)
6
(5.50)
19
(8.80)
3
(4.90)
0.461
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
19
(29.20)
84
(35.30)
33
(37.90)
-
(0.00)
34
(52.30)
124
(52.10)
42
(48.30)
-
(0.00)
6
(9.20)
10
(4.20)
5
(5.70)
-
(0.00)
-
(0.00)
10
(4.20)
5
(5.70)
-
(0.00)
6
(9.20)
10
(4.20)
2
(2.30)
-
(0.00)
0.204
Type of AccountSaving

Current

F.D

R.D
11
(34.40)
32
(35.20)
80
(34.60)
13
(36.10)
11
(34.40)
52
(57.10)
117
(50.60)
20
(55.60)
1
(3.10)
5
(5.50)
12
(5.20)
3
(8.30)
5
(15.60)
1
(1.10)
9
(3.90)
-
(0.00)
4
(12.50)
1
(1.10)
13
(5.60)
-
(0.00)
0.007
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.

The data demonstrated in the Table 8 is in relation to the poser that employees give importance to the customer satisfaction. Regarding the variable age all the respondents (100.0 per cent) of below 20 years of age and high majority of respondents (above 75.00 per cent) in the remaining categories supported the view point. Significant majority of respondents (above 80.00 per cent) irrespective of educational qualifications were in agreement with the poser, the proportion of respondents who strongly disagreed with the query declined with the increase in educational qualifications of the respondents. Highly significant majority of current A/c holders (92.30 per cent) and R.D. holders (91.70 per cent) were in support of the issue. Minimum support to the query was provided by the saving A/c holders (68.80 per cent).
            Statistically significant association was found between the variable of type of A/c and the statement.

Table 9: Behaviour of the employees of AXIS Bank is up to my satisfaction
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
41
(37.30)
73
(33.60)
22
(36.10)
-
(0.00)
57
(51.80)
112
(51.60)
31
(50.80)
12
(100.00)
4
(3.60)
10
(4.60)
6
(9.80)
-
(0.00)
3
(2.70)
11
(5.10)
1
(1.60)
-
(0.00)
5
(4.50)
11
(5.10)
1
(1.60)
0.016
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
19
(29.20)
84
(35.30)
33
(37.90)
-
(0.00)
34
(52.30)
124
(52.10)
42
(48.30)
-
(0.00)
6
(9.20)
10
(4.20)
5
(5.70)
-
(0.00)
-
(0.00)
10
(4.20)
5
(5.70)
-
(0.00)
6
(9.20)
10
(4.20)
2
(2.30)
-
(0.00)
0.204
Type of AccountSaving

Current

F.D

R.D
11
(34.40)
32
(35.20)
80
(34.60)
13
(36.10)
11
(34.40)
52
(57.10)
117
(50.60)
20
(55.60)
1
(3.10)
5
(5.50)
12
(5.20)
3
(8.30)
5
(15.60)
1
(1.10)
9
(3.90)
-
(0.00)
4
(12.50)
1
(1.10)
13
(5.60)
-
(0.00)
0.007
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.

The data presented in the Table 9 about the satisfaction of the customers with the behaviour of the employees of the AXIS Bank. On the basis of age both the respondents in the age group of below 20 years remained undecided about the view point, may be because they were not aware due to their less visits to the Bank. On the other hand the significant majority of respondents (above 80.00 per cent) in the remaining three age groups were satisfied with the behaviour of employees of AXIS Bank. Analysing the data on the basis of educational qualifications the significant majority of respondents in all the categories expressed their satisfaction with the behaviour of the employees. Segregating the data in relation to the variable of type of A/c the more of highly significant majority of respondents (92.30 per cent) who were current A/c holders and R.D. holders (91.70 per cent) were satisfied with the behaviour of employees of AXIS Bank.
Statistically significant association was found between the variables of age, type of A/c and the statement.

Table 10: All my demands/expectations are fulfilled by the employees of AXIS Bank
Attributes/
Responses

Ranks

Strongly AgreeAgreeUndecidedDisagreeStrongly DisagreeP

Age

Below 20

20-40 years

41-60 years

Above 60 years
-
(0.00)
19
(17.30)
53
(24.40)
13
(21.30)
12
(100.0)
29
(26.40)
84
(38.70)
24
(39.30)
-
(0.00)
26
(23.60)
25
(11.50)
5
(8.20)
-
(0.00)
26
(23.60)
36
(16.60)
11
(18.00)
-
(0.00)
10
(9.10)
19
(8.80)
8
(13.10)
0.048
Educational QualificationsMatric

Graduate

Post Graduate

Ph.D.
7
(10.80)
56
(23.50)
22
(25.30)
-
(0.00)
13
(20.00)
94
(39.50)
32
(36.80)
-
(0.00)
17
(26.20)
30
(12.60)
9
(10.30)
-
(0.00)
17
(26.20)
39
(16.40)
17
(19.50)
-
(0.00)
11
(16.90)
19
(8.00)
7
(8.00)
-
(0.00)
0.002
Type of AccountSaving

Current

F.D

R.D
6
(18.80)
24
(26.40)
50
(21.60)
5
(13.90)
9
(28.10)
32
(35.20)
91
(39.40)
7
(19.40)
8
(25.00)
14
(15.40)
26
(11.30)
8
(22.20)
8
(25.00)
14
(15.40)
43
(18.60)
8
(22.20)
1
(3.10)
7
(7.70)
21
(9.10)
8
(22.20)
0.048
Source: Computed from primary data. Figures in parentheses are percentages. p value significant at 0.05 level.
Query was made to the respondents regarding the fulfillment of their demands/expectations from the employees of AXIS Bank. The responses obtained are highlighted in the Table 10. On the basis of age all the respondents (100.0 per cent) in the age group of below 20 years were in agreement with the view point and fair majority of respondents above 41 years of age also felt the same but the respondents in the age group of 20-40 years remained undecided about the assertion. Fair majority of graduates (63.00 per cent) and postgraduates (62.10 per cent) supported the view but matriculates (30.80 per cent) were in very less proportion to do so. In relation to the variable type of A/c the fair majority of current A/c holders (61.60 per cent) and F.D. holders (61.00 per cent) as against the less proportion of saving A/c holders (46.90 per cent) and R.D. holders (33.30 per cent).
            Statistically significant association was found between all variables i.e. age, educational qualifications, type of A/c and the query.
Findings relating to the level of satisfaction of the customers relating to the employees of AXIS Bank:
  • High majority of customers found employees’ behaviour towards them was courteous.
  • Fair majority of customers found the number of employees in the Bank satisfactorily.
  • Employees listen to the problems of the customers patiently. This was found by the high majority of customers.
  • High value services were provided by the employees of the AXIS Bank; this was opined by the high majority of the customers.
  • Suitable suggestions were provided by the employees, this was favoured by the high majority of customers.
  • Fair majority of customers never had complaints against the employees of AXIS Bank.
  • High majority of customers found the employees of AXIS Bank giving importance to their satisfaction.
  • Significant majority of customers were satisfied with the behaviour of employees of AXIS Bank.
  • Less proportion of customers (below 50.00 per cent) favoured the view that their demands/expectations were fulfilled by the employees of AXIS bank.
Problems in improving the level of customer satisfaction:
  • Difficulty in assessing the criterion used by the customer in making their choices:
Today customer is more educated and informed than ever and they also have the tools to verify banks’ claims and seek out the superior alternatives. How then they do ultimately make the choices? As in spite of the limitations of the income, knowledge, and mobility, today customer is the value maxi miser. So it makes difficult for the bank to determine the criterion which the customer follows in choosing the services to be opted from the bank.
  • Difficult to measure customer satisfaction:
There are various methods to measure the level of customer satisfaction but no method is the free from limitations. Further level of customer satisfaction change frequently, so it becomes difficult for the bank to measure the level of customer satisfaction.
  • Assessing Customer Expectation:
It is sometimes become difficult for the Bank to know that how do their clients make their expectations. Further the market has raised the expectations of their clients to such a large extent that it sometimes becomes difficult for the Bank to meet them properly.
  • Difficulty in measuring individual customer profitability:
A profitable customer is a customer that over the time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling, and servicing the customer. So it becomes difficult for the Bank to measure the revenue stream and the cost stream.
  • Difficulty in meeting each customer requirements:
Every individual has his own expectations and demands from the services, further these requirements continuously change over the time, which creates problem for the Bank to meet the changing requirements of all the customers.
  • Customer becoming harder to please:
Today customers are becoming harder to please. They are smarter, more price conscious, more demanding, less forgiving and they are approached by many more competitors with equal or better offers.
  • Challenge is to produce delighted and loyal customers:
It is not necessary to produce satisfied customers, several competitors can do this. The challenge for the Bank is to produce delighted and loyal customers, who not easily switch over to another Bank.
  • CRM May not always hold true:
It may not be the case that it costs less to serve more loyal customers. High volume customers know their value to the Bank and can leverage it to extract premium service. Loyal customers may expect and demand more from the Bank and resent any attempt by the Bank to receive full or higher prices.
Suggestion to overcome the above problems:
  • Delivering High Customer Value:
The key to generate the high customer loyalty is to deliver high customer value. The bank must design a competitively superior value proposition aimed at a specific market segment backed by a superior value system.
  • Properly measuring the customer satisfaction:
The Bank would be wise to measure customer satisfaction regularly. For this customer satisfaction can be rated on the scale of one to five. On level one the customer with low level of satisfaction is positioned and on the level five the highly satisfied customer is positioned.
  • Stress on Total Quality Management (TQM):
The Bank should adopt the system of TQM. This approach will lead to the continuous improvement in the quality of all Bank’s processes, products, and services.
  • Maximizing Customer’s Life Time Value:
The Bank should emphasize on the lifetime stream of revenue and cost and not on the profit from a particular transaction. Customer profitability can be assessed individually by market segment or by channel.
  • Competitive Advantage:
Bank must not only be able to create high absolute value but also high value relative to the competitors at a sufficient low cost as through competitive advantage Bank will be able to perform in one or more ways better than its competitors.
  • Maintaining Customers Relationship:
Customer Relationship Management (CRM) will enable the Bank to provide excellent real time customer service through the effective use of individual account information. Based on what they know about each they know about each valued customer, Bank can customize market offerings, services, program, messages, and media.
  • Differentiate customers in terms of their needs and their value to the Bank:
Bank should spend proportionately more efforts on the Most Valuable Customers (MVC). Apply Activity Based Costing and also calculate customer’s life time value.
  • Interact with individual customer:
The Employees of the bank should interact with the individual customers and improve their knowledge about their preferences and non preferences. Customized offerings should be communicated in a personalized way.
  • Reducing the rate of customer defection:
The Bank should reduce the defection rate. It should select and train employees to be knowledgeable and friendly which will increase the likelihood that the inevitable questions of the customers will be answered satisfactorily.
  • Increasing the longevity of the customer relationship:
The more involved the customer is with the Bank, the more likely he or she will stick with the Bank. So the Bank should increase the longevity of the relationship with its customer.
  • Making Customer Databases:
The marketers must know their customers and in order to know the customer, the Bank must collect information and store it in the database and do database marketing.
So Customers are value maximizers. They form an expectation of value and act on it. Buyers will buy from the firm that they perceive to offer the highest customer – delivered value defined as the difference between total customer value and total customer cost. A customer satisfaction is a function of the service perceived performance and the customer’s expectations. Recognizing that high satisfaction leads to high customer loyalty the AXIS Bank today is aiming for Total Customer Satisfaction (TCS). For the AXIS Bank the customer satisfaction is both a goal and a marketing tool. Loosing profitable customers can dramatically affect the bank’s profits. The cost of attracting a new customer is estimated to be five times the cost of keeping a current customer happy. The key of AXIS Bank to retain its customers is the relationship marketing. Bank is also becoming skilled in Customer Relationship Management (CRM) which focuses on meeting the customers’ needs and making them satisfied.
References
[i] Shekhar and Shekhar (2009), Banking Theory and Practice, Vikas Publishing House Ltd, New Delhi, p3
[ii] Machiraju, R.H., (2000), Indian Financial System, Vikas Publishing House Ltd., New Delhi, p2
[iii] www.axisbank.com
[iv] Sherden.A.William, (November 1994), When Customers Leave, Small Business Reports;p45
[v] Kotler Philip, (2006), Marketing Management, Pearson Education, New Delhi, p136
[vi] Krishna. Dr. R.R., (2006) “Profitability Analysis: an over view, “Indian Banking Today and Tomorrow, Sept.
[vii] Garg, I. K., (2007) “Improving Productivity/Profitability in the Bank”, Indian Banking Today and Tomorrow, April.
[viii] Sholvapur, M.R., “ Profitability Analysis, of Bank Branches (Spread burden approach), 1999
[ix] “Profitability of Banks : A study Conducted by Crisil”, 2009.
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