Customer Satisfaction Towards SBI Green Channel...

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Copyright © IJIFR 2014

Original Paper

Dr. D. Moorthy

Associate Professor, School of Commerce,

CMS College of Science and Commerce (Autonomous),

Coimbatore – 641 049, Tamil Nadu

Mrs. V. Pradeepa

Assistant Professor, Department of Commerce,

Sri Krishna Arts & Science College (Autonomous),

Coimbatore – 641 008, TamilNadu

Abstract

Banking sector plays an active role in the economic development of a country. The Green

Channel Counter is functioning in all branches of State Bank of India. The new technologies

help the banks to reduce the work load. The study has been formulated based on the

following objectives. i. to present the advantages of SBI Green Channel Counter ; ii. to

identify the factors that influences the customers’ satisfaction of SBI green channel counter ;

iii. to identify the factors leading to SBI Green Channel Counter ; and iv. to offer suggestion

to satisfy and retain the customers. The green channel counters help the customers to have

convenient and comfortable banking transactions.

1 Introduction

Banking sector plays an active role in the economic development of a country. Their ability to make a

positive contribution in igniting the process of growth depends to a great extent on the way the

banking policies are pursued and the banking structure is evolved. It is, therefore, no exaggeration to

say that an effective, efficient and disciplined banking system greatly helps the growth of economic

development. It functions as a catalytic agent in bringing about economical, industrial and agricultural

growth and prosperity of the country.

2 Green Channel Counter

The Green Channel Counter is functioning in all branches of State Bank of India. The customers can

use such service in all the branches. The Customer has to swipe their ATM card for withdrawal or has

to deposit the money in the counter. The customer has to select the transaction type and enter their

pin number to complete the transaction within time. The information will be displayed to the counter

clerk who in turn would issue a slip to the customer after completion of the transaction. This new

system would enable the customer to complete the transactions without paper work. SBI Officers’

Association Regional Secretary C. Koteswara Rao, main branch Chief Manager S. Nagendrakumar

and ADB branch Chief Manager CR. Balasubramanayam said that the system is eco-friendly since the

Customer Satisfaction Towards SBI Green

Channel Counter – An Empirical Study

Paper ID IJIFR/ V2/ E2/ 009 Page No 319-325 Subject Area Commerce

Key Words Customer Satisfaction, Green Channel Counter and SBI

http://www.ijifr.com/

320

ISSN (Online): 2347-1697 International Journal of Informative & Futuristic Research (IJIFR)

Volume 2, Issue 2, October 2014 14th Edition, Page No: 319-325

Dr. D. Moorthy, Mrs. V. Pradeepa: Customer Satisfaction Towards SBI Green Channel Counter – An Empirical Study

Paper ID: IJIFR/ V2/ E2/ 009

customers need not use deposit and withdrawal forms. Each customer would be allowed to either

deposit or withdraw amount up to Rs.40, 000 per transaction.

3 Need for the study

Dr. Arvind A. Dhond (2013) conducted study tiled “An empirical study on Green Channel Counter in

Banks”. The researcher identified some problem faced by the customers and banks, he given solution

that the green channel counter helps to solve the problems. The objectives are to provide insight into

Green Banking initiative of State Bank of India by introducing Green Channel Counter, to determine

the level of awareness about Green Banking and Green Channel Counter among the public in general

SBI customers and to draw conclusions based on the primary data survey results. He concludes that

the future banks will be customer friendly banking approach and the customers will welcome these

types of green innovations in banking sector. There was no study conducted in SBI Green Channel

Counter except the above study. Based on the above study and related publications the researcher

designed the following objectives.

Objectives

The study has been formulated based on the following objectives.

To present the advantages of SBI Green Channel Counter

To identify the factors that influences the customers’ satisfaction of SBI green channel counter.

To identify the factors leading to SBI Green Channel Counter

To offer suggestion to satisfy and retain the customers

4 Methodology and Tools used

The study is based on primary data. Structured questionnaire was used to collect data from one

hundred and fifty customers those who are using Green Channel Counter in State Bank of India in

Coimbatore. Convenient sampling method was used to collect the data from the respondents. Likert

five point scale technique was used to measure the customers’ satisfaction. Master table was prepared

using MS Excel and the data was uploaded to SPSS 20 for further analysis. The factors influence

Customer satisfaction were identified and mean score were calculated to find out the factor which

highly influence the satisfaction.

5 Descriptive Analyses

The following independent variable were taken by the researcher to know the sample respondents age,

gender, occupation and number of transaction in a month.

Table 1 : Age group of the respondents

Sl. No. Age group Number of Respondents Percentage

1 Up to 25 years 24 16.00

2 26 to 40 years 53 35.33

3 41 to 55 years 32 21.33

4 Above 55 years 41 27.33

Total 150 100

(Source: Survey Data)

The above table shows that twenty four (16.00%) respondents fall under the age group of up to 25

years, Fifty three (35.33%) respondents fall under the age group of 26 to 40 years, Thirty two

(21.33%) respondents fall under the age group of 41 to 55 years and the remaining forty one (27.33%)

respondents are above 55 years. The majority of the respondent falls under the age group of 26 to 40

years.

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Table 2: Gender of the respondents

Sl. No. Gender Number of Respondents Percentage

1 Male 92 61.33

2 Female 58 38.67

Total 150 100


The above table reveals that ninety two (61.33%) respondents fall under the category male and the

remaining fifty eight (38.67%) respondents fall under the category female. It is clear that majority of

respondents are male respondents and this shows that Male are very much interested to have banking

transactions rather than Female.

Table 3: Occupation of the Respondents

Sl. No. Occupation Number of Respondents Percentage

1 Students 16 10.67

2 Employee 55 36.67

3 Employer 41 27.33

4 Retired People 27 18.00

5 Home Maker 11 7.33

Total 150 100

(Source : Survey Data)

The above table clearly leads that sixteen (10.67%) respondents fall under the category students, Fifty

five (36.67%) respondents fall under the category employee, Forty one (27.33%) respondents fall

under the category employer, Twenty seven (18.00%) respondents fall under the retired people

category and the remaining eleven (7.33%) respondents fall under the category home maker. Students

visit bank to pay their tuition fee to their respective Institutions through bank. Employer and

employee visit bank for their personal work and official work. Retired people may visit bank to

collect their pension amount and to have other banking transactions. To conclude, majority of the

respondents fall under the category employee.

Table 4: Number of Transaction per month in a bank

Sl. No. Number of Transaction in

a month Number of Respondents Percentage

1 Up to 5 41 27.33

2 6 to 15 78 52.00

3 Above 15 31 20.67

Total 150 100


The above table shows that forty one (27.33%) respondents have up to 5 transactions in a month,

Seventy eight (52.00%) respondents have 6 to 15 transactions in a month and the remaining thirty one

(20.67%) respondents have more than 15 transactions in a month. Hence it is concluded that majority

of the respondents have 6 to 15 transaction in a month. It shows the frequency of respondents visit to

the banks.

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6 Factors influencing the customer satisfaction

The researcher identified the following factors which influence the customers’ satisfaction towards

SBI Green Channel Counter.

i. Counter Availability ;

ii. ii. Transaction Speed;

iii. iii. Number of transaction per day ;

iv. iv. Amount of Transfer per day ;

v. v. User friendliness ;

vi. vi. Charges;

vii. vii. Staff response;

viii. viii. Convenience.

Table 5: The Mean score values for various variables, based on the responses received from the respondents

Sl. No. Dimension Mean SD Rank

1 Counter Availability 2.73 1.016 VI

2 Transaction Speed 4.47 0.527 I

3 Number of transaction per day 2.53 0.682 VIII

4 Amount of Transfer per day 2.60 0.827 VII

5 User friendliness 4.15 0.958 II

6 Charges 2.74 1.000 V

7 Staff response 3.86 0.905 III

8 Convenience 3.01 1.412 IV

The observations from table-5 clearly indicate the Mean scores of the variables. The highest

mean score was found to be 4.47 for the variable ‘Transaction speed of the Green Channel Counter’,

followed by a mean score of 4.15 for the variable ‘User Friendliness’ of Green Channel counter

which shows that customers are interested to perform some transactions through the machine rather

than doing it manually.

Third rank was given to the variable ‘Staff Response’ with a mean score value of 3.86, this

shows that the staff members in banking industry started realising the importance and value of

customers in order to survive in the competitive market. The mean score of 3.01 was identified for the

variable ‘Convenience’ of using Green Channel Counter, majority of the people felt that the green

channel counter helps them to deposit and withdraw money with no cash limit and with out filling up

of challan through the cash counter. The mean score of 2.74 was given to the variable by the sample

respondents ‘bank charges for using the Green Channel Counter transactions’, people felt that the

charges are reasonable. The mean score of 2.73 of the variable ‘Counter Availability’ because

respondents feel that there is lack of bank staff at all the counters. The mean score of 2.60 was scored

by the variable ‘Amount of transfer per day’ because majority of the respondents felt that amount of

transfer per day should be unlimited. The least mean score of 2.53 scored by the variable ‘number of

transaction per day’.

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CounterAvailability

Transaction Speed No. of transactionper day

Amount ofTransfer per day

User friendly Charges Staff response Convenient

Highly Satisfied Satisfied Netural Dissatisfied Highly Dissatisfied

Figure-1: Diagrammatic Birds Eye View of the results of the Survey.

Table 6 : The Pearson’s Correlation between the various variables that influence the Customer Satisfaction

V1 V2 V3 V4 V5 V6 V7 V8

V1 Pearson Correlation 1

N 150

V2 Pearson Correlation .005 1

N 150 150

V3 Pearson Correlation -.072 .086 1

N 150 150 150

V4 Pearson Correlation .236**

-.009 -.076 1

N 150 150 150 150

V5 Pearson Correlation .028 .088 -.027 -.027 1

N 150 150 150 150 150

V6 Pearson Correlation -.024 .006 .104 -.045 -.079 1

N 150 150 150 150 150 150

V7 Pearson Correlation .210**

.084 .001 -.237**

.008 .115 1

N 150 150 150 150 150 150 150

V8 Pearson Correlation .027 -.103 .080 -.044 .074 -.027 .006 1

N 150 150 150 150 150 150 150 150

**. Correlation is significant at the 0.01 level (2-tailed).

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Table-3 shows the Correlation between the various variables on factors like

a) Counter Availability [V1], b) Transaction Speed [V2], c) No. of transaction per day [V3], d)

Amount of Transfer per day [V4], e) User friendliness [V5], f) Charges [V6],

g) Staff response [V7], h) Convenience [V8]. The amount of transfer per day and staff response has

positive (significant at 1% level) correlation with counter availability. The results of the Correlation

test between the above mentioned variables show that there is positive correlation between the

variables counters availability and transaction speed, amount of transfer per day, user friendliness,

staff response, and convenience significant at 5% level. The variable transaction speed is positive

correlation with number of transaction per day, user friendliness, charges and staff response

significant at 5% level. The variable number of transaction per day is positive correlation with

charges, staff response and convenience significant at 5% level. The variable user friendliness is

positive correlated with the variables staff response and convenience significant at 5% level. The

variable charge is positive correlated with the staff response significant at 5% level. The variables

staff response is positive correlated with convenience significant at 5% level.

7 Recommendations

The following are the recommendations offered by the researcher

1. The State Bank of India introduced Green Channel Counter to reduce the paper work to

save the resources. But the tokens are issued using token machine which is contradictory

to the feature of saving resources. Thus it is suggested that instead of using token

machine to issue tokens SMS system can be introduced to allot the token numbers to the

customers.

2. The Bank introduced Green Channel Counter and Cash Deposit machine but still there is

a big queue to deposit and withdraw money. This shows that customers expect more

number of cash counters and deposit machines to avoid queue and to save time.

3. The banks have to encourage and educate the customers to use online banking which will

help the bankers to save energy, money and time. At the same time it will help the

banking sector to go for paperless work.

8 Conclusion

There is a stiff competition among the commercial banks to capture and withstand in the

market. So State Bank of India introduced green channel counter system to reduce the paper

work and to attract the customers. This system was mainly introduced to avoid token system

and waiting in queue. Using this system customer can directly go to the cash counter, use

their ATM or Green Remit Card to deposit and withdraw the money at the same time

customers need not fill up the withdrawal and deposit slip. This system is more helpful to the

customers to do the banking transactions at ease. The customers will get Confirmation

message to their mobile phone immediately after the completion of the transactions. State

Bank of India encourages its customer to use ATM facility for all banking transactions such

as deposit, withdrawal, fund transfer etc. Now-a-days all the customers started availing ATM

card and green remit card facility to avoid long queue. If all the vacancies in SBI is filled,

there will not be queue for green counter transactions.

The customers felt that the inter branch transaction charges are high but at the same

time they are ready to pay such fee if all the facilities are provided within time. They are

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ready to use such facility because they can save their time and money of personal visit to

branch. The banks should appoint adequate employees to serve the customers effectively.

The green channel counters help the customers to have convenient and comfortable banking

transactions.

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