Servicequalityof Canara Bank

INDE X
CON TEN TS P AGE N O.
1. INTRODUCTION
2. COMPANY PROFILE
3. SERVICE QUALITY IN BANKS
4. RESEARCH OBJECTIVE
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS
7. FINDINGS OF THE REPORT
8. CONCLUSION
9. RECOMMENDATIONS
10. BIBLIOGRAPHY
11. ANNEXURE: QUESTIONNAIRE

RESEARCH OBJECTIVE
AND
RESEARCH M ETHODOLOGY
RESEARCH OBJECTIVE
The objective of the study is as follows:
 To examine the essential dimensions of service quality and its effect on customer’s
Satisfaction.
 To find out the level of perception of the customers from the service qua lity offered
by the banks.
 To know which service quality dimension of the bank is performing well.
 To identify which dimension of service quality needs improvement so that the quality
of service of banks is enhanced
IMPORTANCE AND SCOPE OF THE STUDY
The study would try to throw some insights into the existing services provided by the banks,
perceptions and the actual service quality of the bank. The results of the study would be
able to recognize the lacunae in the system and thus provide key areas where improvement
is required for better performance and success ratio. In the days of intense competition,
superior service is the only differentiator left before the banks to attract, retain and partner
with the customers. Superior service quality enables a firm to differentiate itself from its
competition, gain a sustainable competitive advantage, and enhance efficiency.

SCOPE OF STUDY
The scope of this research is to identify the service quality of bank. This research is based on
primary data and secondary data. This study only focuses on the dimensions of service
quality. It aims to understand the skill of the company in the area of service quality that are
performing well and shows those areas which require improvement. The study was done
taking branche of CANARA bank into consideration. The survey was restricted to the
bank customers in Hyderabad only.

RESEARCH METHODOLOGY
DATA SOURCE
Pri ma ry Data:
The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the banks at branche were approached to fill up the questionnaires. The
questionnaire contains 20 questions which reflect on the type and quality of services provided
by the banks to the customers. The response o f the customer and they are recorded on a
grade scale of strongly disagree, disagree, uncertain, agree and strongly agree for each
question. The filled up information was later analyzed to obtain the required interpretation
and the findings.
Se conda ry Data:
In order to have a proper understanding of the service quality of bank a depth study was
done from the various sources such as books, a lot of data is also collected from the official
websites of the banks and the articles from various search engines like Google, yahoo
search and answers.com.
RESEARCH DESIGN
The research design is exploratory till identification of service quality parameters. Later it
becomes descriptive when it comes to evaluating customer perception of service quality of
the banks.
Descriptive research, also known as s tatis tica l research, describes data and
characteristics about the pop ulat io n or phenomenon being studied. Descriptive research
answers the questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a ca usa l
re la t io ns hip, where one variable affects another. In other words, descriptive research can be
said to have a low requirement for inter na l va lid it y.
The description is used for freq ue nc ies, a vera ges a nd other statistical calculations. O ften the
best approach, prior to writing descriptive research, is to conduct a survey investigation. Q
ua lita t ive researc h o ften has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications of the findings are.
RESEARCH SAMPLE
SAMPLING P LAN :
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.
 Sampling Units: Customers of CANARA BANK
 Sample Technique: Random Sampling.
 Research Instrument: S structured Q questionnaire.
 Contact Method: Personal Interview.

SAMPLE SI ZE:
The work is a case of CANARA BANK, one of the largest bank of Indian banking industry
together representing over 25 per cent of the market share of Indian banking space. The
survey was conducted in the city of Delhi with two branches of canara Bank, with 50
customers
as respo nde nt.
DATA COLLECTION TOOL
Data was collected through a structured questionnaire. Likert scale technique is used. The
format of a typical five- level Likert item is:
1. Strongly disagree
2. Disagree
3. Neither agree nor disagree
4. Agree
5. Strongly agree
Likert scaling is a bipolar sca ling me t hod, measuring either positive or negative response to a
statement. The questionnaire consists of two parts. The first part consists of three questions
concerning the demographic information of the respondent such as the name, age,
educational qualifications and income. The second part consisting of 18 questions exploring
the respondent‟s perception about the service quality of bank. For evaluation of service
quality of canara bank

service quality dimension of reliability, assurance, tangibility, empathy and
responsiveness is used in order to evaluate the actual service quality of canara bank.
RESEARCH LIMITATIONS
The study is only for the canara Bank co nfined to a particular location and a very small
sample of respondents. Hence the findings cannot be treated as representative of the entire
banking industry.
The study can also not be ge ne ra lized for public and private sector banks of the
country.
Respondents may give biased answers for the required data. Some of the respondents
did
not like to respond.
Respondents tried to escape some statements by simply answering “neither agree nor
disagree” to most of the statements. This was one of the most important limitation faced, as it
was difficult to analyse and come at a right conclusion.
In our study we have included 50 customers of bank because of time limit.

DATA ANALYSIS
Ques. Age
AGE CATEGOR Y FREQUENCY PER CENTAGE CUMULATIVE
PER CENTAGE
18-23 Years 10 20 20
24-29 Years 17 34 54
30-35 Years 15 30 84
35 Years and above 8 16 100
TOTAL 50 100
Age
18-23 Years 24-29 Years 30-35 Years 35 Years and above
16% 20%
30%
34%
INTERPR ETATION
From the table and graph above it can be seen that
 20% respondent‟s age are 18 to 23 years.

 16% respondent‟s age are 35 to above years.
Ques. Educational qualifications
CATEGOR Y FREQUENCY PER CENTAGE CUMULATIVE
PER CENTAGE
UNDER GRADUATE 13 26 26
GRADUATE 20 40 66
POS T GRAD UATE 17 34 100
TOTAL 50 100
Educational qualifications
34% 26%
UNDER GRADUATE
GRADUATE
40% POST GRADUATE
INTERPR ETATION
From the table and graph above it can be seen that
 26% respondents are Under graduate.

 40% respondents are Graduate.
 34% respondents are Post graduate.
TANGIBILITY DIMENSION OF SERVICE QUALITY (Ques tions 1 to 4):
Phys ica l fac ilit ies, eq uip me nts a nd app eara nce o f perso nne l
Ques.1 CANARA bank has modern looking equipment.
SCALE FREQUENCY PER CENTAGE CUMULATIVE
PER CENTAGE
STRONGLY DISAGREE 5 10 10
DISAGREE 25 50 60
UNCER TAIN 16 32 92
AGREE 4 8 100
TOTAL 50 100
CANARA bank has modern looking equipment’s
8% 10%
STRONGLY DISAGREE
32%
DISAGREE
50% UNCERTAIN
AGREE
INTERPR ETATION
CANARA bank has modern- looking and hi- tech equipment’s. Here analysis show that
most of the respondents disagreed with this statement. Among the total respondents 50%
disagreed, 32% were neutral and 8% agreed. After analysis I found tha t majority of the
respondents think that CANARA Bank do not have modern looking equipment’s or no hi-
tech equipment’s.
Ques.2 The bank's physical features are visually appealing.
PER CENTAGE
DISAGREE 4 8 8
UNCER TAIN 29 58 66
AGREE 17 34 100
TOTAL 50 100
Bank's physical features are visually appealing
30 29
25
20 17
15
10
4
5
0
DISAGREE UNCERTAIN AGREE
INTERPR ETATION
CANARA bank’s physical facilities are visually appealing. F rom this statement I found that
17 persons agreed. 29 persons were uncertain and 4 persons disagreed. This means 58%
people were uncertain about this statement. Out of the total respondents only 4% disagreed
and no one strongly agreed or disagreed with the statement. 17% people agreed that
CANARA bank‟s physical facilities are visually appealing.
Ques.3 The bank's reception desk emp loyees are neat appearing.
PER CENTAGE
DISAGREE 5 10 10
UNCER TAIN 21 42 52
AGREE 18 36 88
STRONGLY AGREE 6 12 100
TOTAL 50 100
The bank's reception desk employees are neat appearing
STRONGLY 6
AGREE
18
AGREE
21
UNCERTAIN
5
DISAGREE
0 5 10 15 20 25
INTERPR ETATION
Canara bank‟s employees appear neat. Here analysis shows that majority were neutral.
Among the total respondent 21 respondents were neutral, 18 people agreed and 6
respondents strongly agreed. The rest disagreed. From analysis I found that some
respondents agreed with this statement but most of the respondents think the employees of
the Canara bank appear neat.
AGREE 18 36 94
TOTAL 50 100
PER CENTAGE
DISAGREE 7 14 14
UNCER TAIN 22 44 58
Ques.4 Materials associated with the service (such as pamphlets or statements) are
visually
Materials associated with the services are visually appealling at
the
bank
50% 44%
14% 36%
0%
6%
DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
INTERPR ETATION
Materials associated with the service are visually appealing atcanara bank. Here 36 %
respondents agreed with this statement and 6% strongly agreed with this statement. 44% were
neutral that is most and 14% disagreed. There was no respondent who strongly disagreed.
Hence, in general it can be concluded that materials associated with the services such as
pamphlets or statements are visually appealing.

RELIABILITY DIMENSION OF SERVICE QUALITY (Ques tions 5 to 8):
Ab ilit y to per for m t he pro mis ed ser vice depe ndab ly a nd acc ura te ly
Ques.5 When the bank promises to do something by a certain time, it does so.
PER CENTAGE
DISAGREE 26 52 56
UNCER TAIN 5 10 66
AGREE 14 28 94
TOTAL 50 100
When bank promises to do something by certain time, it does so
STRONGLY AGREE 3
AGREE 14
UNCERTAIN 5
DISAGREE 26
STRONGLY DISAGREE 2
0 5 10 15 20 25 30
INTERPR ETATION
My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were
neutral and 2 people strongly disagreed. Hence I concluded that majority of them disagreed
that the bank when promises to do something by certain time, it does so.
Ques. 6 When you have a problem, the bank shows a sincere interest in solving it
PER CENTAGE
DISAGREE 3 6 6
UNCER TAIN 14 28 34
AGREE 26 52 86
TOTAL 50 100
When you have a problem, bank shows sincere interest

in
solving it
30
20
26
10
14
7
3
0
DISAGREE UNCERTAIN AGREE STRONGLY
AGREE
INTERPR ETATION
When you have a problem, canara bank shows sincere interest in solving it. After analysing
this statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also
I found that 28% were neutral with this statement and 6% were committed with disagree.
There was no one who strongly disagreed. Hence canara bank can be said to be reliable.
Ques.7 The bank performs the service right the first time.
PER CENTAGE
DISAGREE 8 16 20
UNCER TAIN 17 34 54
AGREE 17 34 88
TOTAL 50 100
Bank performs the service right the first time
17 17
8
6
2
STRONGLY DISAGREE UNCERTAIN AGREE STRONGLY
DISAGREE AGREE
INTERPR ETATION
Total sample size was 50. Here analysis shows that among the total respondents 17 people
agreed with this statement. They think that canara bank performs the services right the first
time.
6 people strongly agreed with this statement. Also 17 people were neutral and the rest of
the respondents disagreed and strongly disagreed.
Ques.8 The bank insists on error free records.
PER CENTAGE
DISAGREE 5 10 10
UNCER TAIN 10 20 30
AGREE 23 46 76
TOTAL 50 100
STRONGLY DISAGREE
AGREE 10%
24%
UNCERTAIN
20%
AGREE
46%
Bank insist in error free records
INTERPR ETATION
Bank insists on error free records. canara bank has proved from my analysis that it surely
insist on error free records as 46% respondents agreed with this statement and 24% strongly
agreed. Only 10% respondents disagreed and no one strongly disagreed.

RESPONSIVENESS DIMENSION OF S ERVICE QUALITY (Ques tion 9 to
12):
W illingness to he lp c usto mers a nd pro vide p ro mp t ser vices
Ques. 9 Employees in the bank tell you exactly when the services will be performed .
PER CENTAGE
DISAGREE 8 16 28
UNCER TAIN 13 26 54
AGREE 18 36 90
TOTAL 50 100
Employees tell you exactly when the service will be performed
STRONGLY AGREE 5
AGREE 18
UNCERTAIN 13
DISAGREE 8
STRONGLY DISAGREE 6
INTERPR ETATION
Employees in the bank tell you exactly when the services will be performed. Majority of the
respondents agreed with this statement. 26% respondents were uncertain. At the same time
16% disagreed and 12% Strongly disagreed with this statement.
Ques. 10 Emp loyees in the bank give you prompt service.
PER CENTAGE
DISAGREE 5 10 10
UNCER TAIN 16 32 42
AGREE 27 54 96
TOTAL 50 100
Employees in the bank give you prompt services
30
27
20
16
10 5
0
2
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE
INTERPR ETATION
Most of the respondents agreed with this statement. According to my analysis, employees in
canara Bank give prompt service. Among the total respondents agreed respondents were 27
and strongly agreed were 2. 16 people were neutral and 5 disagreed. There was no
respondent who strongly disagreed with this statement.
Ques.11 Employees in the bank are always willing to help you.
PER CENTAGE
UNCER TAIN 12 24 24
AGREE 29 58 82
TOTAL 50 100
Employees in bank are willing to help you
29
12
9
UNCERTAIN AGREE STRONGLY AGREE

INTERPR
ETATION
Employees in canara bank are willing to help you. With this statement no one disagreed
or strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly
agreed, 29 people agreed i.e. 58% respondents agreed and 24% respondents were
neutral.
Ques.12 Employees in the ba nk are never too busy to respond to your

request.
PER CENTAGE
DISAGREE 1 2 2
UNCER TAIN 11 22 24
AGREE 27 54 78
TOTAL 50 100
Employees at bank are never too busy to respond to

your
request
STRONGLY AGREE 11
AGREE 27
UNCERTAIN 11
DISAGREE 1
0 5 10 15 20 25 30
INTERPR ETATION
Employees in canara Bank ltd are never too busy to respond to your request. After analyzing
this statement I found that most of the respondents agreed with this statement. Among the
total respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1
respondent disagreed. No one strongly disagreed.
ASSURANCE DIMENSIO N OF SERVICE QUALITY (Ques tion13 to 16 ):
Knowled ge a nd co ur tes y o f e mp lo yees a nd t he ir ab il it y to insp ire tr us t a nd co nfide nce
Ques.13 The employees of the bank are trustworthy.
PER CENTAGE
DISAGREE 4 8 8
UNCER TAIN 13 26 34
AGREE 28 56 90
TOTAL 50 100
Employees of the bank are trustworthy
28
30
25
20 13
15
4 5
10
5
0
DISAGREE UNCERTAIN AGREE STRONGLY AGREE
INTERPR ETATION
The employees of the bank are trustworthy. According to my findings, 54% respondents
agreed that employees at canara bank are trustworthy. 13% respondents were neutral and 4%
respondents disagreed with this statement.
Ques.14 The behavior of employees in the bank instills confidence in you.
PER CENTAGE
DISAGREE 28 56 56
UNCER TAIN 4 8 64
AGREE 13 26 90
TOTAL 50 100
Behavior of employees in the bank instills confidence in you
28
30
20
10 13
4
0 5
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE
INTERPR ETATION
The behavior of employees in canara bank instills confidence in you. Here analysis shows
that most of the people disagreed. Among the total respondents 28 respondents disagreed, 13
agreed and 5 strongly agreed. There was no respondent who strongly disagreed. This means
56% respondent disagreed with this statement.
Ques.15 You feel safe in your transactions with the bank.

PER CENTAGE
DISAGREE 5 10 10
UNCER TAIN 16 32 42
AGREE 23 46 88
TOTAL 50 100
You feel safe in your transactions with the bank
12% 10%
32%
46%
INTERPR ETATION
With this statement most of the respondents agreed. Among the total respondents 23 agreed
with this statement and 6 strongly agreed. 32% respondents were neutral and 10%
respondents disagreed. But there no one who strongly disagreed.
Ques.16 Employees in the bank have the knowledge to answer your questions.
PER CENTAGE
DISAGREE 2 4 4
UNCER TAIN 9 18 22
AGREE 26 52 74
TOTAL 50 100
Employees in the bank have knowledge to answer
your
questions
13
STRONGLY AGREE
26
AGREE
9
UNCERTAIN
2
DISAGREE
INTERPR ETATION
From my analysis I found that 54% respondents agreed that employees of HDFC bank
have complete knowledge to answer their questions. 26% respondents strongly agreed to
this statement and only 4% disagreed. 18% neither agreed nor disagreed.
EMPATHY DIMENSION OF SERVICE QUALITY (Ques tion17 to 20 ):
Car ing a nd ind ivid ua lized a tte nt io n t hat fir m pro vides to it s c usto me rs
Ques.17 The bank gives you individual attention.
PER CENTAGE
DISAGREE 26 52 52
UNCER TAIN 12 24 76
AGREE 10 20 96
TOTAL 50 100
Bank gives you individual attention
26
12
10
2
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE
INTERPR ETATION
canara bank is not able to give individual attention to its customers as out of the total
respondents 54% disagreed with this statement. 12% of the respondents were neutral and
only
12% agreed and 2% strongly agreed. From this finding it can be concluded that it is unable to
give individual attention to its customers.
Ques.18 The bank has operating hours convenient to all its customers.
PER CENTAGE
DISAGREE 2 4 4
UNCER TAIN 14 28 32
AGREE 27 54 86
TOTAL 50 100
Bank has operating hours convenient to all its customers
STRONGLY AGREE 7
AGREE 27
UNCERTAIN 14
DISAGREE 2
0 5 10 15 20 25 30
INTERPR ETATION
canara bank has operating hours convenient to all its customers. Out of 50 respondents, 27
respondents agreed with this statement and only 2 respondents disagreed. Also 7
respondents strongly agreed that the bank has operating hours convenient to its customers.
Ques.19 The bank has your interests best at heart.
PER CENTAGE
DISAGREE 5 10 16
UNCER TAIN 10 20 36
AGREE 25 50 86
TOTAL 50 100
30
25
20
10 10
3 5
7
0
STRONGLY
DISAGREE
DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
Bank has your interests best at heart
INTERPR ETATION
canara bank has your best interests at heart. Here analysis shows that 25 respondents agreed
and
7 respondents strongly agreed with this statement. 20% were neutral and the rest disagreed
and strongly disagreed.
Ques.20 The employees of the bank understand your specific needs.
PER CENTAGE
DISAGREE 5 10 10
UNCER TAIN 21 42 52
AGREE 20 40 92
TOTAL 50 100
Employees of the bank understand your specific needs
21
20
5
4

INTERPR EATION
Employees of canara bank understand specific needs. With this statement most of the
respondents were neutral. Among the total respondents 20 respondents agreed and 4
respondents strongly agreed. 5 respondents disagreed with this statement.

MEASURING SERVICE QUALITY DIMENSIONS
Measuring the quality of a service can be a very difficult exercise. Unlike product where
there are specific specifications such as length, depth, width, weight, colour etc. a service
can have numerous intangible or qualitative specifications.
Parasuraman, Zeithaml, and Berry (1985) provide a list of determinants of service quality:
access, communication, competence, courtesy, credibility, reliability, responsiveness,
security, understanding, and tangibles. A total of five consolidated dimensions of service
quality are:
Tangibles (ques.1 to 4) - Physical facilities, equipments and appearance of personnel
Reliability (ques.5 to 8) - Ability to perform the promised service dependably and
accurately Responsiveness (ques.9 to 12) – Willingness to help customers and provide
prompt services
Assurance (ques.13 to 16) – (including competence, courtesy, credibility and
security) Knowledge and courtesy of employees and their ability to inspire trust
and confidence
Empathy (ques.17 to 20) – (including access, communication and understanding the
customer) Caring and individualized attention that firm provides to its customer.
In order to calculate which dimension of service qua lity is performing well, a sample of the
questions are used in the questionnaire. Using the questionnaire, obtain the score for each of
the
20 statements. After analysis of the data, O verall score to each statement is given on a scale
of 1 to 5 i.e. 1 is give n to strongly disagreed i.e. the lowest score, then 2= disagreed, 3=
uncertain, 4= agreed and 5= strongly agreed.
Sum the score for each dimension of service quality to obtain a final score which tells which
dimension is performing well and which dimension needs
improvement. The scores are shown in the following table:
Statement Score
1. canara bank has modern looking equipment. 2
2. The bank‟s physical features are visually appealing. 3
3. The bank‟s reception desk employees are neat appearing. 3
4. Materials associated with the service (such as pamphlets or statements) are 3
visually appealing at the bank.
5. When the bank promises to do something by a certain time, it does so. 2
6. When you have a problem, the bank shows a sincere interest in solving it. 4
7. The bank performs the service right the first time. 3.5
8. The bank insists on error free records. 4
9. Employees in the bank tell you exactly when the services will be performed. 4
10. Employees in the bank give you prompt service. 4
11. Employees in the bank are always willing to help you. 4
12. Employees in the bank are never too busy to respond to your request. 4
13. The employees of the bank are trustworthy. 4
14. The behavior of employees in the bank instills confidence in you. 2
15. You feel safe in your transactions with the bank. 4
16. Employees in the bank have the knowledge to answer your questions. 4
17. The bank gives you individual attention. 2
18. The bank has operating hours convenient to all its customers. 4
Statement Score
19. The bank has your best interests at heart. 4
20. The employees of the bank understand your specific needs. 3
The scores for each dimension are summed up and a final score is obtained:
SERVICE QUALITY DIMENSION Points
1. TANGIBILITY (1 TO 4) 11
2. RELIABILITY (5 TO 8) 13.5
3. RESPONSIVENESS (9 TO 12) 16
4. ASSURANCE (13 TO 16) 14
5. EMPATHY (17 TO 20) 13
SERVICE QUALITY OF CANARA BANK

18
16
16
14
14
12 13.5
13
10 11
8
0
TANGIBILITY RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY
FINDINGS OF THE REPORT
 The Reliability dimension of service quality is better as compared to empathy and
tangibility. Still the score is low. For most services, customer‟s perceptions of whether the
service has been performed correctly, and not provider-established criteria, are the major
determinants of reliability. C ustomers of the bank hesitate to rely on the bank. Whenever
they have a problem, the bank shows sincere interest in solving it but the services are not
performed by a certain time as promised. The employees should take this proble m seriously
and take steps to remove this.
 As score for Assurance is at second place after responsiveness, so the customers
of HDFC bank are very confident and feel safe while transacting with the bank. Moreover
the employees of the bank have proved to be trustworthy. Employees are also educated
enough to answer all the questions.
 The score of Tangibility dimension of service quality of canara bank is the lowest.
The service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that
customers notice before or upon entering the bank. C ustomer expectations regarding visual
appealing of canara is very high. F rom my study I found that P hysical facilities and modern
looking
equipment are not sufficient in canara bank. Respondents were uncertain about the neat
appearance of the reception desk employees. So they should work on that and try to fulfill
the gap.
 According to my findings, the score of Empathy is not satisfactory but not

unsatisfactory
also. canara bank is unable to give individual attention to its customers and is unable to
understand specific needs of its customers. But still bank has taken steps to satisfy its
customers by keeping operating hours convenient to its customers and keeping their interest
best at heart.
 In canara bank, the score of Responsiveness is highest so they are focusing on prompt
service, employees are willing to help the customers and say the exact time when the services
will be performed. Employees at bank give their customers first preference and are always
ready to help them. O verall canara bank‟s responsiveness dimension of service quality is the
highest.
 According to the customer perception, canara bank is highly responsive. Customers
are assured while transacting with the bank. The reliability dimension is lower than the first to
dimension. They feel that the bank is unable to give them individual attention and its
equipments are not modern and sufficient for the bank.
 There is not much gap between all the dimensions, this shows that CANARA BANK
is a better service provider in all the dimensions i.e. reliability, assurance, tangibility,
responsiveness and empathy. As a result of which, the customers are satisfied with the
service offered by canara bank.

CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and
reliability are the critical dimensions of service quality of canara bank and they are directly
related to overall service quality. The factors that may delight customers tend to be
concerned more with the intangible nature of the service, commitment, attentiveness,
friendliness, care, and courtesy.
The employees give prompt services, always are ready to answer the questions and are
trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date
technology modern equipments, and neatly dressed up employees. The Tangibility
dimension of service quality of canara bank is highly disappointing and serious steps are
needed to be taken to enhance this dimensio n. C ustomers of the bank are dissatisfied with
the empathy dimension. To satisfy these customers, the management can take some
attempts, noted earlier as recommendations.
The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which customers are
hugely d iss at is fied with the services of the banks against their expectation. This high
degree of dissatisfaction resulting from the services received clearly questions the design of
services or subsequent response of the bank employees. These limitations are too serious to
be avoided as these question the front- line people dealing with the customers and the
approach of the management in taking customers seriously.
The management should understand the benefits of service quality. It include increased
customer satisfaction, improved customer retention, positive word of mo uth, reduced staff
turnover, decreased ope rat ing cost s, enlarged market share, increased profitability, and
improved financial
performance. In the days of intense competition, superior service is the only differentiator
left before the banks to attract, retain and partner with the customers. S uperior service
quality enables a firm to differentiate itself from its competition, gain a sustainable
competitive advantage, and enhance efficiency. Thus, improving service quality leads to
the customer satisfaction and, ultimately, to customer loyalty.

RECOMMENDATIONS
 Reliability is an obvious place to start. C ustomers of the bank want to know their
resources are safe and within trustworthy institutions. A way to ensure this peace of mind
would be to take steps to ensure bank employees are well trained, so each bank associate is
able to offer complete and comprehensive information at all times. Consistent policies
combined with a knowledgeable staff will foster a high degree of institutional cohesion and
reliability.
 Responsiveness, again when associated with a well-trained staff and timely answers
to service-related questions, would make significant inroads into causing canara bank be
regarded as responsive. Staff should be encouraged to present relevant options to banking
customers in a manner that does not resemble salesmanship so much as a desire to serve.
 Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location close
to their home or their workplace. It is natural that customers become comfortable and
habituated to these branch banks, for the same reason they develop familia rity with a
neighborhood supermarket or convenience store. It makes sense that bank employees would
be encouraged to learn to recognize these regular customers, learn their names, and begin to
identify their basic service requirements.
 Learning to understa nd customers‟ needs will allow bank associates to offer
enhanced services, perhaps lowering customers‟ banking costs and increasing their
investment potential. This could also open up the possibility of increased profits for banks,
for when perceived as
mo re service and customer oriented, they will, in effect, become a useful
and pleasant way to “shop.”
 Keeping the bank with up-to-date technologically are important factors. Modern
equipments, new improved technology should be replaced with the old ones. If the staff
inside is pleasant and well- informed, in an aesthetically pleasing environment, then customer
satisfaction will be high.
 The five-dimensional structure could possibly serve as a meaningful framework for
tracking a bank‟s service quality performance over time and comparing it against the
performance of competitors. Items on some dimensions should be expanded if that is
necessary for reliability.
 Thus, the banking industries must continuously measure and improve these dimensions
in order to gain customers‟ loyalty.

BIBLIOGRAPHY
Re fe re nces
Kotler P hilip, marketing management, (Pearson education, 12 th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt. 5th edition)
Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated
customer Focus across the F irm” (4th Edition)
M.K. Rampal : Service Marketing
Webs ite s
www. goo gle.co m
ww w.
hd fcba nk.co m
ww w.
hd fc ind ia.co m
www.wik iped ia.or g
www. ma rketr esearc h. co m

ANNEXURE
QUESTIONNAIRE
Respected S ir/Madam
I am student of SIVA SIVANI INSTITUTE OF MANAGEMEN T, conducting a survey on
“S ERVIC E QUALITY OF CANARA BANK ”. The following statements relate to your
feelings about the canara bank. P lease show the extent to which you believe canara bank has
the feature described in the statement. I request you to √ the option which in your opinion are
believed to be true. All data will be kept confidential.
Name:
Age:
Educational Q ualifications:
Strongly Disagree Disagree Neither agree Agree Strongly Agree

Nor disagree
1. canara bank has modern looking equipment.
2. The bank's physical features are visually appealing.
3. The bank's reception desk employees are
neat appearing.
4. Materials associated with the service (such as
pamphlets or statements) are visually appealing
at the bank.
5. When the bank promises to do something by a
certain time, it does so.
6. When you have a problem, the bank shows a
sincere interest in solving it.

St rongly Disagree Disagree Neither agree Agree Strongly
Agree
Nor disagree
7. The bank performs the service right the first time.
8. The bank insists on error free records.
9. Employees in the bank tell you exactly when
the services will be perfo rmed.
10. Employees in the bank give you prompt service.
11. Employees in the bank are always willing to
help you.
12. Employees in the bank are never too busy to
respond to your request.
13. The employees of the bank are trustworthy.
14. The behavior of employees in the bank
instills confidence in you.
15. You feel safe in your transactions with the bank.
16. Employees in the bank have the knowledge to r
answe your questions.
17. The bank gives you individual attention.
18. The bank has operating hours convenient to all
its customers.
19. The bank has your best interests at heart.
20. The employees of the bank understand
your specific needs.

Servicequalityof Canara Bank

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INDE X

CON TEN TS P AGE N O.

3. SERVICE QUALITY IN BANKS

7. FINDINGS OF THE REPORT

11. ANNEXURE: QUESTIONNAIRE

The objective of the study is as follows:

 To know which service quality dimension of the bank is performing well.

IMPORTANCE AND SCOPE OF THE STUDY

competition, gain a sustainable competitive advantage, and enhance efficiency.

bank customers in Hyderabad only.

and the findings.

search and answers.com.

becomes descriptive when it comes to evaluating customer perception of service quality of

answers the questions who, what, where, when and how.

said to have a low requirement for inter na l va lid it y.

best approach, prior to writing descriptive research, is to conduct a survey investigation. Q

the universe to know about its characteristics.

 Sampling Units: Customers of CANARA BANK

 Sample Technique: Random Sampling.

 Research Instrument: S structured Q questionnaire.

 Contact Method: Personal Interview.

as respo nde nt.

DATA COLLECTION TOOL

format of a typical five- level Likert item is:

3. Neither agree nor disagree

quality of canara bank

not like to respond.

was difficult to analyse and come at a right conclusion.

In our study we have included 50 customers of bank because of time limit.

AGE CATEGOR Y FREQUENCY PER CENTAGE CUMULATIVE

35 Years and above 8 16 100

From the table and graph above it can be seen that

 20% respondent‟s age are 18 to 23 years.

 34% respondent‟s age are 24 to 29 years.

 16% respondent‟s age are 35 to above years.

Ques. Educational qualifications

CATEGOR Y FREQUENCY PER CENTAGE CUMULATIVE

POS T GRAD UATE 17 34 100

40% POST GRADUATE

From the table and graph above it can be seen that

 26% respondents are Under graduate.

 34% respondents are Post graduate.

TANGIBILITY DIMENSION OF SERVICE QUALITY (Ques tions 1 to 4):

Ques.1 CANARA bank has modern looking equipment.

SCALE FREQUENCY PER CENTAGE CUMULATIVE

CANARA bank has modern looking equipment’s

Ques.2 The bank's physical features are visually appealing.

SCALE FREQUENCY PER CENTAGE CUMULATIVE

Bank's physical features are visually appealing

CANARA bank‟s physical facilities are visually appealing.

SCALE FREQUENCY PER CENTAGE CUMULATIVE

STRONGLY AGREE 6 12 100

the Canara bank appear neat.

STRONGLY AGREE 3 6 100

SCALE FREQUENCY PER CENTAGE CUMULATIVE

pamphlets or statements are visually appealing.

SCALE FREQUENCY PER CENTAGE CUMULATIVE

STRONGLY AGREE 3 6 100

When bank promises to do something by certain time, it does so

SCALE FREQUENCY PER CENTAGE CUMULATIVE

STRONGLY AGREE 7 14 100

When you have a problem, bank shows sincere interest