A

PROJECT REPORT

ON

“IMPACT OF BOM ON RETAIL BANKING AND

CUSTOMER SATISFACTION”

AT

BANK OF MAHARASHTRA

MASTER OF MANAGEMENT STUDIES (MMS)

UNIVERSITY OF MUMBAI

SUBMITTED TO

SINHGAD INSTITUTE OF BUSINESS MANAGEMENT

CHANDIVALI

UNDER THE GUIDANCE OF

(MS.PALLAVI YEWALE)

SUBMITTED BY

(SAPNA PANDEY)

(FINANCE)

1

CERTIFICATE

This is to certify that __________________________________has successfully

completed the project work as a part of academic fulfillment of Masters of Management

Studies (M.M.S.) semester IV examination.

Name & Signature of Project Guide

Date : _________________

DIRECTOR

SIBM

2

DECLARATION

I, Sapna S.P. Pandey of Master of Management Studies Semester III of Sinhgad Institute

of Business Management (SIBM), hereby declare that I have successfully completed this

Project on IMPACT OF BOM ON RETAIL BANKING AND CUSTOMER

SATISFACTION in the academic year 2011-2013.

The information incorporated in this project is true and original to the best of my

knowledge.

_____________________________

Signature

3

IMPACT OF BOM ON RETAIL

BANKING AND

CUSTOMER SATISFACTION

4

ACKNOWLEDGEMENT

To acknowledge all the persons who had helped for the fulfillment of the project is not

possible for any researcher but in spite of all that, it becomes a foremost responsibility of

the researcher and also the part of research ethics to acknowledge those who had played a

great role for the completion of the project.

So in the same sequence at very first, I would like to acknowledge my parents because of

whom I got the existence in the world for the inception and the conception of this project.

Later on I would like to confer the flower of acknowledgement to Mrs Pallawi and other

faculty members who taught me that how to do project through appropriate tools and

techniques. Because BOM has trusted me and given me a chance to do my integrated

research study, I would like to give thanks to the organization and especially to Mr.

Sunil Raikar, chief Manager, BOM, from the depth of my heart.

Rest all those people who helped me are not only matter of acknowledgement but also

authorized for sharing my success.

5

TABLE OF CONTENTS

Sr.No Topic Page

No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

Executive summary

Objective and scope

Introduction

History of bank of Maharashtra

Retail banking

Mission

Research methodology and Research design

Analysis of the data

Findings

Limitations

Conclusion

Questionnaire

Bibliography

7.

8.

10.

11.

12.

13.

15.

18.

27.

28.

29.

30.

32.

6

EXECUTIVE SUMMARY

This project are enable to know the Banking Industry is basically my concern industry, to

work for this was really a complex, and hectic task .I took the challenge and approach

with the project “IMPACT OF BOM ON RETAIL BANKING AND CUSTOMER

SATISFACTION”.

Sample size: Data was collected from 30 customer of BOM.

The main objective of the project is

1) To find out what type of problem customer are facing related to service delivered by

BOM.

2) To find out the level of customer satisfaction from the product marketing of BOM

retail banking.

At the end I concluded from the project that customer availing loan from BOM are

satisfied from the Service and the Employee cooperation as well as the whole loan

procedure was so supportive that they want to avail loan in future from BOM only.

7

OBJECTIVE

The main objective of this project is to study the awareness of the satisfaction of

customers regarding the BOM Retail Banking .During this summer internship program

period I have to achieve some thing, which is helpful for my career, and some value

addition to the Banking Company. It gives me good opportunity to expose and creating

good impression of corporate mind.

1) To find out what type of problem customer are facing related to service delivered by

BOM.

2) To find out the level of customer satisfaction from the product marketing of BOM

retail banking.

8

SCOPE

Money is the centre of world economy and Bank works as a central point for money.

Banking industry is a very growing industry and among all the banks, particularly BOM

is doing very well. In this time of global recession where the other companies are laying

off their staffs but BOM has recruited more than 1400 to 1600 employees in the year

2008.So there is a huge potential for getting jobs in BOM

9

INTRODUCTION

Bank of Maharashtra was founded by Prof. V. G. Kale and the late Shri D. K. Sathe. The

bank commenced operations on 8th February, 1936 with an authorized capital of Rs. 10

Lakhs and issued capital of Rs. 5 Lakhs. The bank got listed in the BSE in the year 1958.

Eleven years hence, the bank was nationalized with 153 other banks. As of 2009, Bank of

Maharashtra boasts of operating 1444 branches, 345 ATMs, total business of over Rs.

90,000 crore and 902 CBS branches. The Bank achieved 100% CBS coverage on 2nd

March, 2010.

Bank of Maharashtra offers deposit schemes, loans and NRI services. Under personal

banking, the bank offers home loans for building own house and/or purchasing new

house/flat (old or new) and/or for repairs/renovation of existing house.

Commonly known as a common man’s bank, Bank of Maharashtra adopts a philosophy

of “Technology with personal touch”, and follows its motto stating “One Family, One

Bank, Bank of Maharashtra”.

All the branches of Bank of Maharashtra have been fully computerized, with Depository

services and Demat facilities being offered at 131 branches as of April 2009. The bank

aims at increasing its ATM network from 345 to 500 soon, apart from planning to install

Biometric ATMs at some selected branches. Apart from it, introduction of Phone

Banking, Internet Banking and Mobile Banking is also on the cards.

10

HISTORY OF BANK OF MAHARASHTRA

The bank was established on 16th Sept 1935 with an initial capital of Rs. 10.00 lakh.

However, Bank of Maharashtra commenced its business operations from 8th Feb 1936,

five months after its inception. During its early operation, the bank provides financial

assistance to small units thereby allowing them to become major industrial houses in the

contemporary world. In 1969, Bank of Maharashtra was nationalized by the Government

of India and this allows the bank to expand rapidly. It has the largest branch network than

any other public sector banks in Maharashtra.

During 1998, the bank attained autonomous status and it began to provide more products

and services through simplified procedures and without the intervention of the

Government. The bank opened its 1000th branch at Indira Vasahat, Pune in 1987. During

the end of the year 2009, Bank of Maharashtra has over 1444 branches, 345 ATMs, 902

CBS branches and the total business cross over Rs 90,000 crores.

11

RETAIL BANKING

Retail banking refers to banking in which banking institutions execute transactions

directly with consumers, rather than corporations or other banks. Services offered

include: savings and checking accounts, mortgages, personal loans, debit cards, credit

cards, and so forth or it is a typical mass-market banking where individual customers use

local branches of larger commercial banks.

Retail Banking has wider connotation and is not the same as that of retail lending. Retail

Banking refers to the efforts of the bankers to reach up to the customers on both fronts of

the balance sheet i.e., Liabilities side as well as Assets side. Under the liabilities side, we

have deposits. Under the assets side, we have credit schemes of the various banks. The

job of the banker has become very difficult in this segment too. Bankers today are

offering various sops to attract the potential customers.

12

MISSION

To ensure quick and efficient response to customer expectations.

To innovate products and services to cater to diverse sections of society.

To adopt latest technology on a continuous basis.

To build proactive, professional and involved workforce.

To enhance the shareholders’ wealth through best practices and corporate

governance.

To enter international arena through branch network.

13

Research Methodology

The Research and Methodology adopted for the present study has been systematic and

was done in accordance to the objectives set which has been detailed as below.

Research Definition

Research is a process in which the researcher wishes to find out the end result for a given

problem and thus the solution helps in future course of action.

According to Redman & Mory, research is defined as a “Systemized effort to gain new

knowledge”.

14

RESEARCH DESIGN

According to “Claire Seltiz”, a research design is the arrangement of condition and

analysis of data in manner that aims to combine relevance to the research purpose with

economy in procedure.

Nature of Research:

Research is basically of two types.

1. Descriptive research

2. Explorative research

1. Descriptive Research:

.

My research design is descriptive as descriptive research –

• Describe the characteristics of certain groups/ samples / populations.

• Estimate proportions in specified populations.

• Make specific predictions.

15

Determining sources of Data:

There are two main sources of data

1. Primary data

2. Secondary data

Primary Data: It consists of original information’s collected for specific

Purpose. Primary data for this research, data are collected through a direct source like

survey to obtain the first hand information is others resources are written below.

Survey.

Face to face interaction.

Secondary Data: It consists of information that already exists somewhere and has been

collected for some specific purpose in the study. The secondary data for this study is

collected from various sources like,

Books.

Website.

Newspaper.

Financial Magazine. ( weekly , business world etc)

Questionnaire:

Sample Size: Total sample size is 30

Questionnaire Development:

16

Questionnaire is the most common instrument in collecting primary data. In order to

gather primary data from viewers. The present questionnaire consists closed ended type

of questions.

SAMPLING

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern, especially

for the purposes of statistical inference.

In my survey, I have taken convenience sampling.

My sampling is probability sampling as probability sampling that has been selected using

simple random selection each unit in the population has a known chance of being

selected.

Moreover, my sampling technique is simple random technique as in simple Random

sampling; each unit of the population has an equal probability of inclusion in the sample.

In my survey, each respondent have equal opportunity to be selected and the data, which

I collected, was from customers of BOM who had taken loan.

Statement of the problem: Procedure of Loan in Bank of Maharashtra

Objective of the study: To know the services and facilities offered by Bank of

Maharashtra to customer.

Purpose of the study: To Know that Customer is satisfied with Loan facilities

producer adopted by Bank of Maharashtra

17

ANALYSIS OF THE DATA

I have analyzed the data collected through the questionnaire and have classified the data

into tables.

TABLE-I

The given below BAR graph shows the response of 30 customer,but the graph has been

represented in the percentage formate.

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SERVICES EXPECTED FROM BOM

QUICK RESPONSE

GOOD CUSTOMER RELATION

EXTRA FACILITY FOR EXISTING CUSTOMER

INTERPRETATION

In the above bar diagram, 38 of them said that they expect QUICK RESPONSE from the

BOM bank, 37 said they expect GOOD CUSTOMER RELATION and 25 customers said

that they expect EXTRA FACILITY FOR EXISTING CUSTOMER.

TABLE-II

The given below BAR graph shows the response of 30 customer,but the graph has been

represented in the percentage formate. “SATISFACTION LEVEL OF CUSTOMER

AFTER AVAILING LOAN”

19

SATISFACTION AFTER

AVAILING LOAN

SATISFIED 42

NORMAL 34

DISSATISFIED 24

0

5

10

15

20

25

30

35

40

45

SATISFIED NORMAL DISSATISFIED

INTERPRETATION

In the above graph, 42 were found SATISFIED after taking loan from BOM , 34

Customer were NORMALY satisfied from BOM and 24 were DISSATISFIED because

of interest charged, and behavior of the employee.

TABLE-III

The given below Bar chart shows the “CUSTOMER WANTS TO TAKE ANOTHER

LOAN FROM BOM”

CUSTOMER WANTS TO TAKE ANOTHER LOAN

FROM BOM

YES 68%

NO 32%

20

0

10

20

30

40

50

60

70

1 2

YES

NO

Interpretation:

The above bar chart shows that, 68 would like to take another loan from BOM but 32

would not like to take another loan from BOM

21

TABLE-IV

The given bar Graph shows the” INFLUENCING FACTOR FOR LOAN FROM

BOM”

22

INFLUENCING FACTOR FOR LOAN FROM

BOM

ADVERTISEMENT 26

FRIENDS 20

EASY AVAILABILITY OF

LOAN 22

TRUST 32

Interpretation:

In the above graph, 32 said trust, 26 said advertisement,22 said easy availability and rest

23

TABLE-V

The given Pie chart shows the processing procedure while availing loan:

Interpretation:

In the above pie chart 42 peoples said good, 30 people said excellent and rest 28 people

said average about the processing procedure while availing the loan.

24

30%

42%

28%

Excellent

GoodAverage

TABLE-VI

The given Pie chart shows the co-operation of the bank employees in processing and

helping in documentation:

21%

55%

24%

Excellent

Good

Average

Interpretation:

In the above pie chart, 55 peoples said good, 21 said excellent and 24 peoples said

average about co-operation of employees in processing and documentation.

25

TABLE-VII

The given Pie chart shows the interest rate charged upon the loan available:

15%

36%

49%Excellent

Good

Average

Interpretation:

In the above pie chart, 49 said averages, 36 said good and 15 said excellent about the

interest rate charged upon the loan available

26

FINDINGS

Customers were satisfied from the quick response and good customer

relationship.

Customer found employees of BOM very helpful and cooperative.

Customer are more influenced for taking loan from BOM because of trust,

customers have on BOM.

Customer found the procedure of availing loan simple and hassle free.

27

LIMITATIONS

The survey was conducted in the BOM.

Target customers and respondents were too busy persons, so it was difficult to get

their time and view for specific questions.

Area covered for the project while doing job also was very large and it was very

difficult to correlate two different customers / respondents’ views in a one.

Every financial customer has his / her own need and according to the

requirements of the customer product customization was not

possible

28

CONCLUSION

BOM is providing good services to the clients during sanctioning the loan. They

cooperate with the clients to given maximum benefits. Different banks offer same

product but services only aspect, which differentiate banks products. Services through

corporate banking, personal banking BOM reaches among the maximum number of

customers across the country and More than average number of customers were found

satisfied by the offered services of BOM.

29

QUESTIONNAIRE

1) Name: 2) Profession:

3) Age group :

A)18-30 yrs. B)31-40 yrs. C)41-50 yrs. D)51-60 yrs.

4) Annual Income (in Rs.)

A) 60000-200000 b) 200000-400000 c) 400000-1000000 d) Above 1000000

5) What kind of service or services do you expect from BOM?

A) Quick Response B) Good Customer Relation

C) Extra Facility for Existing Customer

6) What influence you at taking loan from BOM?

A) Advertisement B) Friend/Relative

C) Easy availability loan D) Trust

7) How do you find the processing procedure while availing the loan?

A) Excellent B) Good C) Average

8) How do you find the cooperation of the bank employees in processing and helping

you with documentation?

A) Excellent B) Good C) Average

9) How do you find the interest rate charged upon the loan available?

A) Excellent B) Good C) Average

30

10) Would you like to take another loan from BOM in future?

A) Yes B) Nos

11) Your overall level of satisfaction with BOM:

A) Satisfied B) Normal C) Dissatisfied

31

BIBLIOGRAPHY

www.bankofmaharashtra.in

www.google.com

Hand book of Bank Of Mharashtra

32