Summer Training Project4 Report

On
“A STUDY ON BANKING SERVICE BASED ON” “Customer
Satisfaction of Cooperative Bank”
Submitted to

I.K GUJRAL PUNJAB TECHNICAL UNIVERSITY

JALANDHAR

In partial fulfillment for the requirement for

the award of
degree of Master of Business Administration (MBA)

Submitted By Supervisor
Noordeep Kaur Name Mr. Amit Garg
University Roll no. Designation Assistant Professor

DEPARTMENT OF MANAGEMENT
MALOUT INSTITUTE OF MANAGEMENT AND INFORMATION TEHNOLOGY
MALOUT
2022-2023

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INTERNSHIP CERTIFICATE

4
 STUDENT DECLARATION

NOORDEEP KAUR, hereby declare that I have undergone my summer training at

MUKTSAR CENTRAL COOPERATIVE BANK LTD.From 23 June 2023 to 06
August 2023. I have completed at research project “A study on Banking Service
based on Customer Satisfication” at “ Cooperative Bank under the guidance of Mr.
Vibhu Bansal (Manager).

Further I hereby confirm that the work presented herein is genuine and original and
has not been published elsewhere

(Signature of Student)

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 FACULTY DECLARATION

I hereby declare that the student Miss. NOORDEEP KAUR of MBA (II) has
undergone his/her summer training under my periodic guidance on the Project
titled““A study on Banking Service based on Customer Satisfaction at
“COOPERATIVE BANK”.
Further I hereby declare that the student was periodically in touch with me
during his/her training period and the work done by student is genuine & original.

(Signature of Supervisor)

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 EXECUTIVE SUMMARY

The project report on “A study on Banking Service based on Customer

Satisfaction ” is studied in the “COOPERATIVE BANK” for a period of 45 days of
training.

It was a great experience to undergo summer in plant training on “A study on

Banking Service based on Customer Satisfaction” at “COOPERATIVE BANK”

.During the study I found that the company is carrying its activity in Web designing,
development and industrial training. The company managers have co-operated me a
lot in completing my training. They have given me all the information that I need for
my study.

In this report the effort is made to know the financial position of the
Cooperative Bank. process to identify the Banking Service of a firm by properly
establishing the relationship between the items of balance sheet and profit or loss
account. Thus, we can say that, Financial Analysis is a starting point for making plans
before using any sophisticated forecasting and planning.

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 DECLARATION

I am NOORDEEP KAUR student of Master of business administration from

“Malout Institute of Management and Information Technology, (Malout)”. hereby
declare that I have completed internship on “A study on Banking Service based on
Customer Satisfaction ”at “CUSTOMER SATISFACTION OF COOPERATIVE
BANK” As part of the course requirement.

I further declare that the information presented in this project is true and original
to the best of my knowledge.

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 ACKNOWLEDGEMENT

An understanding of work life- this is never an outcome of a single person; rather

it bears the imprints of the number of people who directly or indirectly helped me in
completing the present study. I would be failing in my duties if I don’t say a word of
thanks to all those who made my training period education and pleasurable one. I am
thankful to “Cooperative Bank, Mahuana.” For giving me an opportunity to do my 2th
Sem the company.

First of all, I extremely grateful to Mr. Vibhu Bansal (Branch Manager) for his
guidanceduring the course of the internship despite his extremely busy schedule. My
very specialthanks to him for giving me the opportunity to do this project and for his
support throughout as a mentor.

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 CONTENTS
SR. No. TOPICS PAGE NUMBER
1. INTERNSHIP CERTIFICATE 2
2. STUDENT DECLARATION 3
3. FACULTY DECLARATION 4
4. EXECUTIVE SUMMARY 5
5. DECLARATION 6
6. ACKNOWLEDGEMENT 7
7. CHAPTER 1
 Introduction
 Literature Review
 Internal Communication 9-21
 Internal benchmarking
 Research Methodology

Limitation of study
8. CHAPTER 2 22-25
CO-OPERATIVE BANK PROFILE
 Objectives Of The Study
 Review of the Literature

Research Methodology
9. CHAPTER 3 27-50
 Data Presentation and Analysis
 Descriptive Statistics

Regression Analysis
10 CHAPTER 4 51-53
 Summary and Conclusion

Bibliography
11 CLIENT SATISFACION SURVEY 54-57
 Chapter 1

INTRODUCTION

Consumer or customer is the most important person in any organization. a consumer is not
dependent on the business but the business is dependent on the consumer or customer. In that sense a
consumer or customer satisfaction is one of the most important aspect in the organization
development. Consumer satisfaction is the supreme aim in the modern business world. Success and
failure of the whole organization depends on the level of the consumer satisfaction. if the customers
are treated well or if their needs are met they become well satisfied towards the organization and if not
they are not satisfied and this becomes the base for the up liftmen or downfall of the organization as a
whole.

A co-operative is an autonomous body of people united voluntarily to meet their common economic,
social and cultural needs and aspiration by jointly working for betterment and development of each
member. This organization works with the main motto of “one for all and all for one”.

A cooperative is a non profit motive community organization and businesses that are owned and
managed by the people who use their services, get involved in there, live there or bet some benefit
from there. So cooperative can be defined as a joint ownership of people engaging in the production or
distribution of goods or the supplying of services, operated by its members for their mutual benefit. It
is typically organized by consumers and farmers and are more economic resilient than many other

enterprise. Co-operatives are based on the values of self-help, self-responsibility, democracy, equality,
equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical
values of honesty, openness, social responsibility and caring for others.

A saving and credit cooperative is financial cooperative democratically controlled by its members
and operated for the purpose of promoting thrift , providing credit at competitive rates and providing
other financial services to its members .in Nepal the development of cooperative seems to have a long
and detailed history.

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 Literature review
Ravi C. S and Kundan Basavaraj(2013) investigated the preference and satisfaction level
of customer towards loans , deposit schemes, insurance and value added services
rendered by private and public banks in shivamogga district . Business and vehicle loans
are fast moving than other services and overall satisfaction resulted at 50%. Further,
overall satisfaction on bank deposit schemes resulted positively well other service of
banking still need to be given attention by focusing on customer issues . New innovative
schemes, strategies to cater to non users other serviuces have to be adopted

The Co-operative Bank knows that success in the corporate banking sector isn’t a mass
marketing exercise as it may be in retail banking; it’s down to the quality of its
relationships with customers. The front cover of its company brochure does highlight the
phrase ‘good with money’, but your eye is drawn by the strap line ‘As One – Success
built on relationships’. According to Keith Alderson- Managing Director of Corporate
and Business Banking, “We treat our customers as individuals – we really get to know
them and their businesses. Our success comes from a clear commitment to genuine, long
lasting relationships.” To deliver on its ‘relationships’ promise, one of the ways the bank
invests in service and customer relationship, is by giving its relationship managers a
smaller client base and additional support staff to improve their availability and the
customer experience.

The co-operative society puts much of its success in recent years down to it’s fanatical
focus on customer service. The bank knows from its customer satisfaction survey data
that more satisfied customer are more likely to use more of the banks products and are
more likely to recommend- in fact 51% have recommended the bank in the last year. In
recent years the cooperative’s revenue and profit have grown along with customer
satisfaction. There have also been other business successes. For example the bank
maintained a strong and stable capital position and at a time when many of its
competitors have firmly closed the door to companies wanting borrow. Over the last three
years , its network has doubled and it has won numerious new customers who were
dissatisfied with their previous banks.

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corpus of data was collected from a sample comprised of this large cooperative bank’s
customers in Crete, Greece. The combination of exploratory and confirmatory factor
analysis, following a scale purification process, which resulted in a reduced 21-item scale,
has yielded seven determinants: Communication for Building up Trust, Personnel
Relationship, Quality-Price Relationship, Understanding and Consulting, Bank Set of
Values, Serviceability, and Educational Support. The results of regression analysis
indicated that customer satisfaction with the cooperative bank is mostly affected by: Bank
Set of Values, Quality-Price relationship, Understanding and Consulting, and
Communication for Building up Trust.

Service quality, the effective delivery of which has sometimes been disputed ((Voss,
2004)commonly has been viewed as an elusive and complicated construct. In terms of
(croft, 1991)), high quality service is generally defined as a constant process of predicting
and satisfying customers’ requirements and expectations. Oaklands in addition, states that
banking quality service implies the degree to which a specific type of service meets
customers’ expectations. Satisfaction is sometimes defined as an end-state resulting from
a consumer’s purchasing experience, which can either emerge as a cognitive reward or an
emotional response to an experience. Customer satisfaction has been investigated as a
‘perceptual, evaluative and psychological process’ taking place during service delivery .It
may derive from any dimension relevant or irrelevant to quality, and judgments may be
formed by no quality components; it also requires experience for its delivery Scholars
have identified customer- and situational-specific determinants that affect overall
satisfaction. In relation to high -quality confidence - related services such as those
provided in the context of banking, functional quality is emphasized as the most vital
driver for customer satisfaction .Service quality and overall satisfaction have been found
to be closely. The distinction and coherent relationship between service quality and
satisfaction has been a pivotal concern in marketing literature and in academic- as well as
practitioner-oriented relevant research. Although numerous empirical works have
concentrated on the causal order of the constructs at issue, there is little consensus as to
whether expectations for the delivery of a specific service directly affect satisfaction or
whether perceived quality is the main antecedent of satisfaction. Bahia et al. (2000)
suggest that in case of multidimensional, regularly-performed and high-contact services,
such as those delivered in banking settings, service quality is most likely to affect
satisfaction. Similarly, Papasolomou (2002) advocates that service quality in the banking
sector, viewed as a multivariate construct encompassing dimensions, such as
convenience, reliability, service portfolio and service personnel, has had a substantial
impact on customer satisfaction. Overall, researchers have emphasized that perceived
quality, assumed as an antecedent of customer satisfaction, has a direct and positive
impact on overall satisfaction

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S.Sivesan (2012) found the impact of the service quality on customer's satisfaction in
banking sectors. Service qualities are interrelated with customer satisfaction. Manager of
the bank or administrative body needs to identify the primary quality determinants,
clearly, managing the customer expectation, educating the knowledge to customer
regarding the service for improving the service quality of banking in the sector.

Quality Dimensions in Banking: A comprehensive literature review has revealed that

quality, on account of the rather intricate and elusive conceptualization it encompasses,
has often involved -inter alia measurement discrepancies). In this respect, no universal
scale standard, particularly in the banking sector, can ensure valid and reliable
measurement of perceived quality (Wang, et al. 2003). Overall, research has revealed
explicit country- and culture-specific discrepancies in banking services as regards quality
expectations, importance and perceptions. have investigated ethnicity-specific customer
expectations in the Canadian retail banking sector and identified several differentiating
components in retail banking service expectations, depending on ethnic group.
Additionally, Furrer, Liu, and Sudharshan (2002) emphasized that service quality
importance and perceptions are highly contingent upon customers’ values and beliefs,
which are culture-specific. Since the mid 90’s, research has been focused on various
quality determinants, among which the ten major determinants indicated by 58
Satisfaction with Cooperative Banking are considered more likely to generate high levels
of customer satisfaction in the banking sector of various countries. To provide a
comprehensive discussion of the potential quality determinants affecting satisfaction,
BANKSERV, a versatile instrument employed for measuring perceived service quality
delivered to Australian commercial banking customers, comprises four discriminating
factors (totalling 17 items), namely: 1. staff conduct; 2. Credibility; 3. Communication;
and 4. access to teller services. In addition, Bahia, investigated customer expectations and
perceptions and developed the Bank Service Quality (BSQ) measure. They applied an
exploratory factor analysis and identified six dimensions (totalling 31 items), that is, 1.
Effectiveness and assurance; 2 .access; 3. Price; 4. Tangibles ; 5. service portfolio; and
6. Reliability. by investigating quality in various British banks, employed principal
component factor analysis and developed SYSTRA-SQ, which measured customer
perceptions only; thus, they proposed four dimensions (totalling 21 items) : 1. service
system quality; 2. behavioral service quality; 3. machine service quality; and 4. service
transactional accuracy. Similarly, J) by using principal component extraction with an
orthogonal rotation measured only customer perceptions in various banks in the Arabian
Emirates that concluded in four dimensions (totalling 29 items): 1. personal skills; 2.
Reliability; 3. Image; and 4. Value. Multiple regression analysis results demonstrated
that, despite the fact that all four dimensions were indicative of determining quality in
conventional banks by emphasizing value and image, quality in Islamic banks was
determined only by personal skills and values. In addition, Athanassopoulos, Gounaris
and Stathakopoulos (2001) highlighted six country specific dimensions (totaling 25

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items) in Greece: 1. employee competence to deliver bank services; 2. bank reliability; 3.
product innovation; 4. Pricing; 5. physical evidence of the delivered services; and 6.
consumers’ convenience provided by the bank network. Finally, the research conducted
by Mihelis, Grigoroudis, Siskos, Politis and Malandrakis (2000), which involves
measuring satisfaction in private banking in Greece, was based on the assumption that
customer satisfaction represents a modern approach for quality based on the preference
disaggregation model MUSA, and identified five dimensions (totalling 23 items): 1. bank
personnel; 2. bank products; 3 bank image; 4. service delivery; and 5. access. In
conclusion, the various research efforts made in industry-specific contexts with a view to
identifying quality determinants have demonstrated that service quality may be
determined by the individual or aggregate perceptions of (1) the technical and functional
quality of an organization, (2) service products, service delivery, and service
environment, (3) reliability, response, empathy, safety and physical evidence associated
with service delivery, and (4) image, value, pricing and social responsibility.

DR. snehalkumar H| mistry (2013) focused on the factors that are affecting customer
satisfaction in banks and analyze their effects. It is revealed that customer satisfaction is
the key for many banks and cooperatives to survive competition. Customer gives third
preference to assurance factors, it include criteria like safety of transaction consisting in
service etc. so , banks and cooperative weather they are private sector of public sector
they should give more focus on increasing reliability, responsiveness and assurance. For
that they can give training to their employee who will help them to give personalize
service.

A comparative study on customers perception on service quality in cooperative and

nationalized banking sector. Suggested that financial system is the most important
institutional and functional vehicle for the economic transformation in the country.
Banking sector is reckoned as the hub and barometer of the financial system. As a pillar
of the economy, this sector plays a predominant role in the economic development of the
country. The banking sector is considered as growth facilitator. In recent years, the
banking industry around the world has been undergoing a rapid transformation. As India
is moving towards a service economy marketers require knowing more about marketing
service product. Service has increasingly assumed a vital position in the Indian Economy.
There is a prospective market for services and increasing supremacy of services in
economies contribution of service sector have drawn growing attention to the issues of
the service sector. Quality has been recognized as a strategic tool for attaining efficiency
and improved business performance. This paper includes the review of literature on
service quality and behaviour intension and discussed in relation to each of the research
question. The paper concludes with a summary and description of implication of the
findings. The research has examined the customer service in banking sector in this paper
under three major headings, viz.,pre sale service , product features, office services,

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Behavioural Response, post sale services and with regard to satisfaction on service
quality on people, physical evidence and processes. Keywords: service quality, product
features, office services, behavioural intension, post sale services Customer Satisfaction
Customer is the backbone of a business. He is also a core component of a business.
Mahathma Gandhi aptly stressed the significance of the customer in a business.
According to him “ A customer is the most important visitor on our premises. He is not
depended on us, we are dependent on him. He is not an interruption to our work. He is the
purpose of it. He is not an outsider on our business. He is a part of it. We are not doing
him a favour by serving him. He is doing us favour by giving an opportunity to do so”
This is a strong indication that a business cannot survive without customers and a well
built customer base. The extension of proper consideration to the customers with care and
affection thus becomes a pre requisite for the survival and success of a business. The
banking sector, one of the major service sector components is not an exception to this.
The customer is the prime mover of banking activities. In the global competition, one of
the biggest challenges for banks is to meet the rising customer needs and expectations.
The needs and requirements of 18 Journal of Management and Science says customers
are varied, complicated and dynamic in nature and are very hard to satisfy. What is
deemed good today may become obsolete in days to come. The task of attracting,
winning and retaining profitable customers is a complicated and tiresome affair to
achieve. However, banks should exercise vigilance to identify the changing needs of the
customer and monitor his moves and reactions towards the actions taken by the banks for
pleasing him. The customers today are very hard to please, because they have some
peculiarities and uniqueness. Their likes and dislikes are not alike. They are smart in
nature. They are price and time conscious. They demand more and never tolerate lapses.
They want all the services under one roof. They hate to deal with complicated procedures.
The lists of their satisfaction are changing day by day. Thus, today performing banking
business is becoming a challenging affair. To register a win in this situation banks should
possess a mind and a broad mechanism to gauge the changing needs and aspirations of
the customers. Moreover they should be more liberal incorporating changes and novelties
in the service portfolio offered by them to please and retain the customers. “Once good
service is extended to customer a loyal customer will work as an Ambassador to the bank
and facilitate the growth of business”. Customer satisfaction is the buzz word of
marketing. According to Oliver(1980) Customer satisfaction is a summary psychological
state when the emotions surrounding disconfirmed expectations are coupled with the
consumers prior feelings about consumption experience‟. Kotler (2006) also expresses
that satisfaction is a person‟s feelings of pleasure or disappointment resulting from
comparing a product‟s perceived performance in relation to his or her expectation.
Howard and Sheth (1969) defined customer satisfaction as „the buyer‟s cognitive sate of
being adequately or inadequately rewarded for the sacrifices he has undergone‟.
Customer satisfaction results when

15
customers confirm their pre –purchase expectations for a purchased service or positively
disconfirm their expectations regarding purchased services, resulting in some level of
post purchase affect toward the experience . DR.A.H. Sequeira(2012) made an attempt to
address the issues related to customer satisfaction and quickness of transaction in co-
operative banks . It is clear from the results that the customer services are reasonably
satisfactory

A report of customer satisfaction in urban cooperative banks displayed the urban

cooperative banking movement in India can be traced to the close of nineteenth century
when, inspired by the success of the experiments related to the cooperative movement in
Britain and the cooperative credit movement in Germany such societies were set up in
India. From its origins then to today, the thrust of UCBs, historically, has been to
mobilize savings from the middle and low income urban groups and purvey credit to their
members - many of which belonged to weaker sections.So, the application of the
knowledge of customer satisfaction is imperative to establishing and maintaining a long-
term relationship with customers and long-term competitiveness. In this context, for the
better performance and growth of UCBs, it has become very essential to give proper
weight age to the opinions of customers of these banks and at the same time to measure
and monitor the customer satisfaction continuously. In the present paper an attempt has
been made to identify factors (as perceived by customers) which are expected to be
dictating and determining the service quality performance of Urban Cooperative Banks of
Punjab, Haryana and Himachal Pradesh. Customer satisfaction has been considered the
essence of success in today’s highly competitive banking industry.) mentioned that the
customer is the king. Generally speaking, if the customers are satisfied with the provided
goods or services, the probability that they use the services again increases (East, 1997).
Also, satisfied customers will most probably talk enthusiastically about their buying or
the use of a particular service; this will lead to positive advertising (File and Prince, 1992;
Richens, 1983). On the other hand, dissatisfied customers will most probably switch to a
different brand; this will lead to negative advertising .The significance of satisfying and
keeping a customer in establishing strategies for a market and customer oriented
organization cannot be ignored .Singh and Kaur (2011) determined the factors that have
an impact on customer satisfaction as regards the working of select Indian universal
banks. The study was conducted using the survey method. Data were collected through a
well-structured questionnaire from a sample of respondents. The major findings of the
study show that customer satisfaction is influenced by seven factors – employee
responsiveness, appearance of tangibles, social responsibility, services innovation,
positive word-of-mouth, competence, and reliability. The results of multiple regressions
showed that three variables: social responsibility, positive word-of-mouth, and reliability
have major influences on the overall satisfaction of the customer. Ganguli studied the
factors affecting customer satisfaction in the Indian retail banking sector. Online
structured questionnaire developed to determine the factors for customer satisfaction was

15
distributed among the respondents. The dimensions were identified using a factor
analysis. Next the reliability and validity of the factors for customer satisfaction were
established. The paper identifies four generic dimensions in the technology-based
banking services – customer service, technology security and information quality,
technology convenience, and technology usage easiness and reliability. It was found that
customer service and technology usage easiness and reliability have positive and
significant impact on customer satisfaction.

This genuine customer service spirit is one of the main factors behind The Cooperative
Bank’s success in improving customer satisfaction, but it’s not always enough.
Sometimes companies make improvements but customers don’t notice. They have their
own agendas, priorities, busy lives and work pressures. Moreover, human beings have an
unfortunate habit of taking good service for granted but noticing and remembering all the
things that didn’t go quite right. The Co-operative Bank addresses this risk by providing
extensive feedback to customers about the customer survey, its results and the actions
they are taking in the light of what customers have told them.

Customer communications start with a letter before the start of the survey and a thank-
you letter from Keith Alderson after they have taken part which also outlines the key
results. This is followed by a four page feedback leaflet that provides a detailed account
of the survey results and, importantly, the actions that Corporate Banking is taking as a
consequence of the survey. The results and actions are also published on the
Corporate Banking website and in its customer magazine, ‘Insight’. A very effective
measure is Relationship Managers’ use of the printed leaflet in face- to-face meetings
with existing and potential clients or at networking events.

This brings us back to where we started. The extensive feedback on how Corporate
Banking listens to its customers and acts on what it hears helps to reinforce the
relationship between the bank and its customers. It nurtures the like-mindedness, the
feeling that the relationship isn’t just based on a series of transactions (albeit delivered
efficiently and with friendly service) but on a bigger strategic picture that all are working
towards that enhances the long term interests of the bank, its customers and society as a
whole.

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 With this type of customer focused culture, you would expect the bank to monitor its
customers’ satisfaction. It’s done this for quite a few years, the last three of which have
been with The Leadership Factor. The survey is annual since customer bases in corporate
banking are quite small and the bank has promised that no-one will be asked to participate
in the survey more often than once every 18 months. Contacts are interviewed by
telephone, providing a rich vein of customer comments for detailed insight as well as
statistical tracking of performance. In keeping with the bank’s customer focused mission,
Anita Kielty from the Business Management team, is keen to emphasise that “The survey
is not just a tick box exercise– it’s a real tool to help us fully understand how customers
feel about their relationship with The Co-operative Bank. In the corporate banking
market, the level of service plus the depth and quality of relationships with customers are
the main differentiators”.

The customer experience through the customers’ eyes

Anita is conscious that a good customer experience has to be defined and monitored
through the customers’ eyes, not based on what the company thinks is good customer
service. Consequently, The Cooperative Bank began its Customer Survey Measurement
programme with The Leadership Factor by conducting exploratory research (based on
face-to-face in-depth interviews with a representative sample of customers) to thoroughly
understand what factors were most important to them in their relationship with their
corporate banker. The exploratory research confirmed the bank’s belief that at the
forefront of customers’ priorities was the expectation that the bank would:

 Treat them as valued customers

 Keep them well informed
 Make a real effort to understand their business
 Be genuinely interested in their custom.

There’s no denying that The Co-operative Bank’s strong emphasis on customer

relationships has enabled it to achieve very high levels of customer satisfaction and
loyalty. The bank has improved its customer satisfaction index every year over the last
few years and is now well up in the top quartile of The Leadership Factor’s very large
database of organisations’ customer satisfaction performance. Other highlights include
the fact that 88% of customers feel they are treated fairly by the bank, 91%

17
find it easy to contact their Relationship Manager and 84% would definitely use the bank
for any future banking requirements. Moreover, The Co-operative Bank as a whole
(including Retail Banking) is consistently near the top of all key measures (customer
satisfaction, complaint handling and net promoter score) on the UKCSI.

Internal communications

In Corporate Banking Division, the results of the customer satisfaction survey are eagerly
awaited and widely communicated internally. As soon as the results are available they are
presented to the leadership team plus managers of all departments and teams, regional
managers and staff representatives across all touch points of the customer experience.
Following this, Keith Alderson sends a short message with high level results to the whole
business, but as far as the detail is concerned, corporate banking has an excellent system
to ensure that the details from the survey are cascaded to all staff who are involved with
corporate customers, with Chris Wilson, Head of Real Estate and Public Sector
Development and Richard France, Head of Corporate Relationship Banking presenting
findings to their regional teams and ensuring robust action plans are in place addressing
the areas of concern raised via the survey. Customer satisfaction is a regular agenda item
for the monthly manager meetings with both corporate staff and support areas. To ensure
key messages are delivered consistently, every member of the 12,000 staff in CFS
receives a monthly face to face briefing which cascades through the organisation, starting
with Neville Richardson CEO presenting it to his leadership team. Customer Satisfaction
is a key component of this briefing known as “The Understanding”.

Within Corporate Banking dissemination of the survey results is extensive. Anita and her
colleagues provide full details of the customer satisfaction survey results to all relevant
customer facing teams. As well as results for the Regional Managers, the bank can drill
right down to scores and customers’ comments for each individual Relationship Manager
(unless the respondent opts for anonymity). This rich stream of information enables all
teams and each RM to absorb precise and relevant customer insight. Based on this they
all develop their own action plans, sometimes in consultation with their customers to
make sure they’re on the right tracks. And that’s

17
another reason for Corporate Banking’s success. They don’t just make what they think
are improvements, they make what the customer says are improvements!

Taking action

The action plans leave few stones unturned. The Co-operative Bank’s success isn’t based
on a few high profile companywide initiatives - improving customer satisfaction rarely is.
It’s based on myriad small changes at team or individual RM level that are highly
targeted on what specific customers want. For example, the bank’s Queries Team
simplified some forms to make them easier for customers to complete. Another team
improved its ability to keep customers informed by finding out exactly when and how
they wanted to be updated and then making sure that all customers received precisely the
communications they wanted when they expected them. One RM learned that he was
going too many extra miles for customers, giving great personal service but doing too
much himself with adverse impact on his availability to other customers. He improved
customer satisfaction by delegating more to the Customer Support teams.

In Customer Support actions have included the introduction of new technology to allow
call recording and more checks on calls. This has led to more one-to-ones, but with a new
twist where instead of the advisor listening whilst the manager gives feedback on the call,
the advisor reviews it and outlines to their manager what they see as the good points and
the areas for improvement. Then the manager comments and offers help if needed, but
often it’s not necessary because the advisors themselves know exactly how a call could
have been improved. The customer survey results also feed into staff training
programmes for new and existing employees. Based on customer feedback new or
amended training modules have covered answering the phone, handling queries, keeping
customers informed and delivering on promises.

A further example of the bank’s commitment to improve the customer experience is that
they have invested millions of pounds developing their new internet banking platform for
business users. They launched the new electronic banking service in 2010 and are
gradually rolling out the upgraded internet based version of Financial Director.

19
Internal benchmarking

Every month Anita and her colleagues follow up all the action plans. This isn’t a big stick
exercise. The culture is so customer focused that people don’t need monitoring to
implement their action plans. It’s more about sharing information because once Anita’s
up to date, she can update progress on the intranet so that everyone can see what other
teams are doing to improve customer satisfaction. This great cross-communication is
further enhanced by joint customer service workshops across the front line and support
teams.

Maximising the benefits of internal benchmarking in this way is another key ingredient in
Corporate Banking’s success. Following each survey, The Leadership Factor uploads the
results onto a secure interactive web reporting site which team members can access with
passwords. They can compare results across regional teams, Relationship Managers etc,
learning from the teams or individual RMs that have the highest customer satisfaction for
each question but the internal benchmarking extends beyond Corporate Banking.

Customer service culture

Other businesses within Co-operative Financial Services are very interested in Corporate
Banking’s customer satisfaction activities, so in addition to The Understanding, the
survey results are published in the in-house magazine, ‘The Know’, as are other customer
service features.

For example, the December 2010 issue showcased Co-operative Financial Services’
efforts for National Customer Service Week, including visits to call centres by colleagues
from across the business under ‘The Exchange’ scheme, designed to foster mutual
understanding across different teams. There were also training sessions, competitions and
even fancy dress to get everyone into the customer service spirit.

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Research Methodology

Research methodology is simply the study to analyze relation between various variables
and elements. Here in this research we have dependent element as satisfaction and
various independent elements like time, location, interest rate, and flexibility. There is a
dependent factor or element ie. Customer satisfaction.

Primary data collection:

Primary method of data collection is the method in which the information is collected
first hand from the environment or research area. Here, interview and questioner method
is used to collect the data.

Sampling

The study is primarily based on the primary data. A sample of questionnaire is

prepared and administered to respondents.

Interview
Some of the respondents were interviewed to gain proper prospects of the survey.
Data Collection Instrument

Researchers develop a set of questionnaire regarding the description of the respondent,

phenomena of the respondent and collect the data through the questionnaire. There are
basically 3major question related to demographic component. Remaining 16 question is
related the respondent view for independent factor affecting the dependant variable.

20
Limitation of the study:

For the completion of the project there are certain factors that must be considered.
These factors and aspects are considered as limitation of this report. Some of these
limitations of here are as follows.

 This study is based on the willingness of the customers to provide the necessary
Information. So is dependent on their feel and desire to share and give
information.

 The information and data in completion of this report are limited by time and
resources.

 Only 7-8 institutions have been samples and analyzed.

21
 Chapter 2

CO-OPERATIVE BANK PROFILE

Co-operative banks are small-sized units organized in the co-operative sector which operate both
in urban and non-urban regions. These banks are traditionally centered on communities,
localities and work place groups and they essentially lend to small borrowers and businesses.
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary
cooperative banks located in urban and semi-urban areas.

These banks, until 1996, could only lend for non-agricultural purposes. As at end-March 2011,
there were 1,645 UCBs operating in the country, of which majority were non-scheduled UCBs.
Moreover, while majority of the UCBs were operating within a single State, there were 42 UCBs
having operations in more than one State. However, today this limitation is no longer prevalent.
While the co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance, etc. along with some small scale industries and
self-employment driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment, industries, small scale units and home finance.

These banks provide most services such as savings and current accounts, safe deposit lockers,
loan or mortgages to private and business customers. For middle class users, for whom a bank is
where they can save their money, facilities like Internet banking or phone banking is not very
important. Although they are not better than private banks in terms of facilities provided, their
interest rates are definitely competitive. However, unlike private banks, the documentation
process is lengthy if not stringent and getting a loan approved quickly is rather difficult. The
criteria for getting a loan from a UCB are less stringent than for a loan from a commercial bank.

8. Objectives of the Study

1. To know the lending practices of cooperative banks in India.
2. To measure and compare the efficiency of Cooperative Banks of India.
3. To study the impact of „size‟ on the efficiency of the Cooperative Banks.
4. To suggest the appropriate measures to improve the efficiency of the Cooperative banks.
5. To know different type of loans preferred by different sets of customers.
6. To know the satisfaction level of the customers from Bank’s lending policies.

9. Review of the Literature

Various studies conducted and numerous suggestions were sought to bring effectiveness in the
working and operations of financial institutions. Narsimham Committee (1991) emphasized on
capital adequacy and liquidity, Padamanabhan Committee (1995) suggested CAMEL rating (in
the form of ratios) to evaluate financial and operational efficiency, Tarapore Committee (1997)
talked about Non-performing assets and asset quality, Kapoor Committee (1998) recommended
for credit delivery system and credit guarantee and Verma Committee (1999) recommended
seven parameters (ratios) to judge Banking Service and several other committees constituted by
Reserve Bank of India to bring reforms in the banking sector by emphasizing on the
improvement in the financial health of the banks. Experts suggested various tools and techniques
for effective analysis and interpretation of the financial and operational aspects of the financial
institutions specifically banks. These have focus on the analysis of financial viability and credit
worthiness of money lending institutions with a view to predict corporate failures and incipient
incidence of bankruptcy among these institutions.

22
Bhaskaran and Josh (2000) concluded that the recovery performance of co-operative credit
institutions continues to unsatisfactory which contributes to the growth of NPA even after the
introduction of prudential regulations. They suggested legislative and policy prescriptions to
make co-operative credit institutions more efficient, productive and profitable organization in
tune with competitive commercial banking. Jain (2001) has done a comparative performance
analysis of District Central Co-operative Banks (DCCBs) of Western India, namely Maharashtra,
Gujarat and Rajasthan and found that DCCBs of Rajasthan have performed better in profitability
and liquidity as compared to Gujarat and Maharashtra. Singh and Singh (2006) studied the
funds management in the District Central Co-operative Banks (DCCBs) of Punjab with specific
reference to the analysis of financial margin. It noted that a higher proportion of own funds and
the recovery concerns have resulted in the increased margin of the Central Co-operative Banks
and thus had a larger provision for non-performing assets. Mavaluri, Boppana and Nagarjuna
(2006) suggested that performance of banking in terms of profitability, productivity, asset quality
and financial management has become important to stable the economy. They found that public
sector banks have been more efficient than other banks operating in India.Pal and Malik (2007)
investigated the differences in the financial characteristics of 74 (public, private and foreign)
banks in India based on factors, such as profitability, liquidity, risk and efficiency. It is

suggested that foreign banks were better performers, as compared to other two categories of
banks, in general and in terms of utilization of resources in particular. Campbell (2007) focused
on the relationship between nonperforming loans (NPLs) and bank failure and argued for an
effective bank insolvency law for the prevention and control of NPLs for developing and
transitional economies as these have been suffering severe problems due to NPLs. Singla (2008)
emphasized on financial management and examined the financial position of sixteen banks by
considering profitability, capital adequacy, debt-equity and NPA. Dutta and Basak (2008)
suggested that Co-operative banks should improve their recovery performance, adopt new
system of computerized monitoring of loans, implement proper prudential norms and organize
regular workshops to sustain in the competitive banking environment.Chander and Chandel
(2010) analyzed the financial efficiency and viability of HARCO Bank and found poor
performance of the bank on capital adequacy, liquidity, earning quality and the management
efficiency parameters.

4. Research Methodology
Type of Research
Descriptive research is used in this study in order to identify the lending practices of bank and
determining customer’s level of satisfaction. The method used was questionnaire and interview
of the experienced loan officers.

10. 4.2 Collection of data

11. 4.2.1 Primary Data
a. Observation Method
b. Interview Method
c. Structured Questionnaire

12. 4.2.2 Secondary Data

a. Annual reports of the bank
b. Manual of instructions on loans and advances
c. Books
d. Articles and Research Papers
e. Internet

25
13. 4.3 Sampling Unit
The Study population includes the customers of bank and Sampling Unit for Study was
Individual Customer.

14. 4.4 Sampling Size

200spondents
15. 5. Findings of the Study
1. Majority (32% as per the study) of the respondent were having housing loan from this bank.
2. Most (64% as per the study) of the people prefer to take long term loan which is more than
3 years.
3. There is a very simple procedure followed by bank for loan.
4. Easy repayment and fewer formalities are the main factors determining customer’s selection
of loans.
5. Quality of services provided by the staff is satisfactory because bank is catering to a small
segment only and the customers are properly dealt with.
6. Customers are satisfied with the mode of repayment of installments.
7. Average time for the processing of loan is less i.e. approx 7 days.
The Banking Services of Urban Cooperative Banks (UCBs) improved in 2010-11 though
there are some concerns with regard to some of the UCBs reporting negative CRAR. Within the
rural cooperative sector, State Cooperative Banks (StCBs) and District Central Cooperative
Banks (DCCBs) reported profits but the ground level institutions, i.e., Primary Agricultural
Credit Societies (PACS) continued incurring huge losses. The Banking Service of long term
cooperatives was found to be even weaker than their short term counterparts. Also, it was
observed that the branch network of cooperatives, though widespread across the country,
continued to be concentrated in certain regions.
Moreover, the network of cooperatives was not broad based in the north-eastern region of the
country. This suggests that efforts need to be taken to improve banking penetration in the north-
eastern part of the country along with improving the financial health of the ground level
cooperative institutions.

16. 6. Increased Inter-linkages between UCBs and Commercial Banks

In recent years, the integration of cooperative banks with the financial sector has increased
following the inclusion of UCBs in Indian Financial Network (INFINET) and Real Time Gross
Settlement System (RTGS) from November 2010. Further the annual policy statement of the
Reserve Bank for 2010-11 envisages inclusion of financially sound UCBs in the Negotiated
Dealing System (NDS) and opening up of internet banking channel for UCBs satisfying certain
criteria. An analysis of deposits and advances base wise distribution of UCBs revealed that
banking business was predominantly concentrated in favour of larger UCBs. UCBs with larger
deposit base (more than or equal to `500 crore), though accounted for only 4 per cent of total
number of UCBs, contributed almost 53 per cent of total deposits Balance sheet of UCBs
expanded at a rate of 15 per cent at end-March 2011 over the previous year. This expansion in
balance sheet was largely attributed to borrowings on the liabilities side and loans and advances
on the assets side.

17. 7. Problems faced by cooperative banks

1. The cooperative financial institution is facing severe problems which have restricted their
ability to ensure smooth flow of credit
i. Limited ability to mobilize resources.
ii. Low Level of recovery.
iii. High transaction of cost.
iv. Administered rate of interest structure for a long time.
25
2. Due to cooperative legislation and administration, Govt. interference has become a regular
feature in the day–to-day administration of the cooperative institution. Some of the problem area
that arises out of the applicability of the cooperatives legislative is:
Deliberate control of cooperatives by the government. Nomination
of board of director by the government. Participation of the
nominated director by the government. Deputation of government
officials to cooperative institution etc.
3. The state cooperative banks are not able to formulate their respective policies for investment
of their funds that include their surplus resources because of certain restrictions.
4. Prior approval of RBI is mandatory for opening of new branches of SCBs. The SCBs are
required to submit the proposal for opening of new branches to RBI through NABARD, whose
recommendation is primarily taken into consideration while according permission.

18. Suggestions
1. The banks should adopt the modern methods of banking like internet banking, credit cards,
ATM, etc.
2. The banks should plan to introduce new schemes for attracting new customers and
satisfying the present ones.
3. The banks should plan for expansion of branches.
4. The banks should improve the customer services of the bank to a better extent.

19. Limitations
1. The study is based on the data of past three or four years only.
2. The data for study mainly based on a single bank.
3. As majority of the customers are employees of the bank, they might be biased in giving the
information
4. The time period of the research was limited.

25
Problem statement

As stated earlier, the number of cooperative in Nepal is increasing. They are not
expanding only in their number but also in activities and services. On the other hand due to
limitation by provisions, laws rules and services often the customer feels neglected or
indifferent by the organization. Though some of the customers are satisfied and well
treated most are often below the unsatisfactory level. Customers being the life blood of
any organization every individual organization try to satisfy and fulfill the need and want
of the customer to help them be satisfied and content. .under the prevalence of this
situation, the major problem identified regarding the cooperative (saving and credit
cooperative) are:

Research Question

 Is there any relation between customer satisfaction and appearance of the employee in
the organization?

 Is there any relation between customer satisfaction and interest rate defined by the organization?

 Is there any relation between customer satisfaction and location of the organization?

 Is there any relation between customer satisfaction and behavior of the employees in the
organization?

 What are the ways or steps taken by the organization to satisfy the consumer?

 What is the timeframe in payment of the loan?

26
 Conceptual framework

There are various studies done to determine the level of customer satisfaction and factors
affecting them. On the basis of these information and studies we can know that there
number of dependent and independent variable involved in the determination of
customers satisfaction. However of these various independent and dependent variables we
take in consideration only few or major ones due to lack of time and resources to analyze
each and every one of them. Here, research will be conducted on the periphery of saving
and credit cooperative.

Interest
RATe
LoAN

SAVIng

LoCATio SATISFACTIO
n

27
 Chapter 3

Data Presentation and Analysis

Reliability Statistics

Gender

Gender Frequency Percent Cumulative

Percent
Male 14 46.7 46.7
Female 16 53.3 100.0
Total 30 100.0

The given bar graph reveals that out of the total respondents selected as sample for the
survey, 46.7% are male and 53.3% are female.

28
 Age
Particular Frequency Percent Cumulative Percent
below 25 3 10.0 10.0
25-35 10 33.3 43.3
36-45 10 33.3 76.7
46 and above 7 23.3 100.0
Total 30 100.0

The given table and graph represents the age group of the respondents, which reveals that 10% of the
respondents belongs to below 25 age group, 33% belongs to 25-35 age group, 33% belongs to 36-45 age
group and the rest 23.3% belongs to above 46 years. Overall the samples are found to be concentrated to
the age group 25-45.

30
 Education Level of the Respondent

Education level Frequency Percent Cumulative Percent

Masters 9 30.0 30.0
Bachelors 11 36.7 66.7
high school 10 33.3 100.0
Total 30 100.0

The bar shows education level, which reveals that 30% of them are master graduates,
36.7% bachelor graduates and 33.3% high school graduates.

30
 Deposit Interest Rate Lead To My Satisfaction

Dimension Frequency Percent Cumulative Percent

strongly agree 11 36.7 36.7
Agree 5 16.7 53.3
Neutral 3 10.0 63.3
Disagree 2 6.7 70.0
strongly disagree 9 30.0 100.0
Total 30 100.0

Using liker scale, the given bar and graph clearly presents forward the view of people regarding
deposit rate. Here, 36.7% people agree the reason for their satisfaction to be rate of interest in
deposit .similarly, 16% people and 10% agree and are neutral to the issue. Of the total people
only 6% disagree and 30% strongly disagree to the factor’s role for satisfaction.

34
 Interest on loan is proper and effectively determined

Dimension Frequency Percent Cumulative Percent

strongly agree 4 13.3 13.3
Agree 5 16.7 30.0
Neutral 4 13.3 43.3
Disagree 10 33.3 76.7
strongly disagree 7 23.3 100.0
Total 30 100.0

The bar graph represents people’s perception regarding the determination of the loan. Most
people believe that the loan rate is just made up or not effectively determined. It comprises of
33.3% people disagreeing to loan rate effectiveness. This is slightly lower in 23.3% people
strongly disagreeing to it. Similarly 13% people strongly agree, 16.7% agree and 13.33% are
neutral about it.

34
 I Am Satisfied With Interest Rate Provided By This Cooperative

Dimension Frequency Percent Cumulative

Percent
strongly agree 2 6.7 6.7
Agree 4 13.3 20.0
Neutral 4 13.3 33.3
Disagree 13 43.3 76.7
strongly disagree 7 23.3 100.0
Total 30 100.0

The above table and figure show satisfaction level of people with interest provided by the
cooperatives. Here we can see that maximum people are dissatisfied with interest rate provide by
the cooperative. It shows 43.3% people disagreeing and 23.3% strongly disagreeing with interest
rate, only 6.7% are strongly satisfied and 13.3% are satisfied with the interest rate. remaining 13.3
% people are neutral about it.

34
There Are Variety Of Saving Option In This Cooperative Leading To My
Satisfaction

Dimension Frequency Percent Cumulative

Percent
strongly agree 7 23.3 23.3
Agree 6 20.0 43.3
Neutral 10 33.3 76.7
Disagree 4 13.3 90.0
strongly disagree 3 10.0 100.0
Total 30 100.0

34
The above table and figure show variety of saving option that lead to the satisfaction of a
customer. About 33.33% people are neutral about this. Second range with 23.3% people strongly
agrees that saving options lead to their satisfaction. 20% and 13% people agree and disagree
about the topic and only 10% customer strongly with it.

Location Was A Factor For Choosing This Cooperative For Transaction

Dimension Frequency Percent Cumulative

Percent
strongly agree 18 60.0 60.0
Agree 3 10.0 70.0
Neutral 3 10.0 80.0
Disagree 1 3.3 83.3
strongly disagree 5 16.7 100.0
Total 30 100.0

47
using the likert scale, the graph represents the respondent view of location as a factor for
choosing this cooperative for transaction which reveals that 16.7% people strongly
disagree to the fact, 34.1% disagree, 26.8% neutral, 26.4% agree and 9.8% are strongly
agree to the fact.

Location as A Factor For Performance Of The Work Effectively And

Efficiently

Dimension Frequency Percent Cumulative

Percent
strongly agree 6 20.0 20.0
Agree 11 36.7 56.7
Neutral 3 10.0 66.7
Disagree 6 20.0 86.7
strongly disagree 4 13.3 100.0
Total 30 100.0

47
using the liker scale, the graph represents the respondent view of location as a factor for
performance of the work effectively and efficiently which reveals that 13.3% people
strongly disagree to the fact, 20% disagree, 10% neutral, 36.7% agree and 20% strongly
agree to the fact.

employee behavior and treatment is fair in this organization

Dimension Frequency Percent Cumulative

Percent
strongly agree 11 36.7 36.7
Agree 12 40.0 76.7
Neutral 2 6.7 83.3
Disagree 4 13.3 96.7
strongly disagree 1 3.3 100.0
Total 30 100.0

47
 Using the liker scale, the graph represents the respondent view about employee behavior
and treatment is fair in this organization which reveals that 3.3% people strongly disagree
to the fact, 13.3% disagree, 6.7% neutral, 40% agree and 36.7% strongly agree to the fact.
Employee present themselves with a problem solving attitude

Dimension Frequency Percent Cumulative

Percent
strongly agree 3 10.0 10.0
Agree 14 46.7 56.7
Neutral 7 23.3 80.0
Disagree 3 10.0 90.0
strongly disagree 3 10.0 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of Employee presentation of
themselves with a problem solving attitude which reveals that 10% people strongly disagree to the
fact, 10% disagree, 23.3% neutral 46.7% agree and 10% strongly agree to the fact.

47
 Employee are helpful and cooperative towards the customers

Dimension Frequency Percent Cumulative

Percent
strongly agree 8 26.7 26.7
Agree 9 30.0 56.7
Neutral 7 23.3 80.0
Disagree 4 13.3 93.3
strongly disagree 2 6.7 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of Employee presentation
of themselves with a problem solving attitude which reveals that 10% people strongly
disagree to the fact, 10% disagree, 23.3% neutral 46.7% agree and 10% strongly agree to
the fact.

47
 I feel loan procedure of the cooperative is fair and proper

Dimension Frequency Percent Cumulative

Percent
strongly agree 8 26.7 26.7
Agree 6 20.0 46.7
Neutral 1 3.3 50.0
Disagree 10 33.3 83.3
strongly disagree 5 16.7 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of Employee presentation
of themselves with a problem solving attitude which reveals that 10% people strongly
disagree to the fact, 10% disagree, 23.3% neutral 46.7% agree and 10% strongly agree to
the fact.

47
 I feel loan procedure of the cooperative is fair and proper

Dimension Frequency Percent Cumulative

Percent
strongly agree 3 10.0 10.0
Agree 4 13.3 23.3
Neutral 2 6.7 30.0
Disagree 16 53.3 83.3
strongly disagree 5 16.7 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent view of how they feel about
loan procedure which reveals that 16.7% people strongly disagree to the fact, 57%
disagree, 6.7% neutral, 13.3% agree and 10% strongly agree to the fact.

47
 I feel loan procedure of the cooperative is fair and proper

Dimension Frequency Percent Cumulative

Percent
strongly agree 5 16.7 16.7
Agree 8 26.7 43.3
Neutral 6 20.0 63.3
Disagree 7 23.3 86.7
strongly disagree 4 13.3 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent feelings towards loan procedure
of the cooperative being fair and proper which reveals that 13.3% people strongly
disagree to the fact, 23.3% disagree, 20% neutral,26.7% agree and 16.7% strongly agree
to the fact.

47
 The loan issue procedure is fast and reliable

Dimension Frequency Percent Cumulative

Percent
strongly agree 3 10.0 10.0
Agree 7 23.3 33.3
Neutral 8 26.7 60.0
Disagree 6 20.0 80.0
strongly disagree 6 20.0 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent feelings towards loan procedure
being fast and reliable which reveals that 20% people strongly disagree to the fact, 20.%
disagree, 26.7% neutral,23.3% agree and 10% strongly agree to the fact

47
 I am satisfied with this cooperative as a whole

Dimension Frequency Percent Cumulative

Percent
strongly agree 7 23.3 23.3
Agree 4 13.3 36.7
Neutral 6 20.0 56.7
Disagree 10 33.3 90.0
strongly disagree 3 10.0 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent towards the cooperative as a
whole which reveals that maximum people are unsatisfied. It constitutes of 33.3%, most
people are strongly satisfied with 23.3% proportion, some people are neutral with 20%
ratio, .13.3% people are just satisfied. And about 10%people are completely dissatisfied.

47
Descriptive Statistics

Descriptive analysis of interest rate

Particulars Mean Std. remarks

Deviation
Interest 3.26 1.035 Neutral
deposit interest rate lead to my satisfaction 2.77 1.716 Disagree
interest on loan is proper and effectively 3.37 1.377 Neutral
determined
I am satisfied with interest rate provided by this 3.63 1.189 Disagree
cooperative

In the given analysis the interest factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people are neutral about interest that affect the
satisfaction level. The highest mean level is 3.63 and lowest is 2.77 giving the average
3.26. This presents the idea that most people are neutral about the interest rate in the
organization.

Descriptive analysis of saving option

Particulars Mean Std. remarks

Deviation
Saving option 2.92 1.009 Neutral
There are variety of saving option in this 2.67 1.269 Neutral
cooperative leading to my satisfaction
There are variety of credit option in this 3.17 1.262 Neutral
cooperative leading to my satisfaction

In the given analysis the saving factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people are neutral about saving that affect the
satisfaction level. The highest mean level is 3.17 and lowest is 2.67 giving the

47
average2.92. This presents the idea that most people are neutral about the saving option
in the organization.

Descriptive analysis of location

Particulars Mean Std. Remarks

Deviation
Location 2.32 .973 Agree
location was a factor for choosing this 2.07 1.552 Agree
cooperative for transaction
Location of this cooperative has helped me to 2.20 .887 Agree
work effectively and efficiently
Location of this cooperative is suitable for all 2.70 1.368 Neutral
the customers

In the given analysis the location factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people agree about saving that affect the
satisfaction level. The highest mean level is 2.70 and lowest is 2.07 giving the
average2.32. This presents the idea that most people agree about the location for
satisfaction of the customer.

Descriptive analysis of employee

Particulars Mean Std. Remarks

Deviation
Employee behavior 2.38 .791 Agree
employee behavior and treatment is fair in this 2.07 1.143 Agree
organization
Employee present themselves with a problem 2.63 1.129 Neutral
solving attitude
Employee are helpful and cooperative towards 2.43 1.223 Agree
the customers

47
In the given analysis the employee factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people agree about employee that affect the
satisfaction level. The highest mean level is 2.63 and lowest is 2.07 giving the
average2.38. This presents the idea that most people agree about the employee behavior
for satisfaction of the customer.

Descriptive analysis of loan term

Particulars Mean Std. Remarks

Deviation
Loan term 3.13 .801 Neutral
I feel loan procedure of the cooperative is fair 2.93 1.530 Neutral
and proper
I am satisfied with loan procedure of this 3.53 1.224 Disagree
cooperative
The time frame for loan payment is suitable for 2.90 1.322 Neutral
me
The loan issue procedure is fast and reliable 3.17 1.289 Neutral

In the given analysis the loan term for the satisfaction of customer in cooperative is
presented. It shows that majority of the people are neutral about employee that affect the
satisfaction level. The highest mean level is 3.53 and lowest is 2.90 giving the average
3.13. This presents the idea that most people agree about the employee behavior for
satisfaction of the customer.

Descriptive analysis of satisfaction

Particulars Mean Std. Remark

Deviation s
i am satisfied with this cooperative as a whole 2.93 1.363 Neutral

In the given analysis most people are neutral about the cooperative’s level and state
of satisfaction.

47
REGRESSION ANALYSIS

Model Summary
Model R R Square Adjusted Std. Error of the
R Square Estimate

dimension0 1 .468a 0.219 0.056 1.324

a. Predictors: (Constant), Loan term, Location, Saving, Employee, interest

The given table summarizes the model that R for the data or study research is 0.46% and R square
is 21.9. which means 46.8% of independent is explained by dependent variable. Here F is 1.34
and significance level is 0.01

Coefficients
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) .134 1.209 .111 .912
Interest .250 .457 .190 .548 .589
Saving .193 .293 .143 .657 .517
Location .058 .334 .041 .173 .864
Employee .335 .409 .195 .821 .420
Loan term .242 .564 .142 .430 .671

48
Dependent Variable: satisfaction level

In the above table 2.17 the dependent variables are interest, saving location, employee
behavior and long term loan. And it explains that 25% affect is of interest on customer’s
satisfaction, 19.3% of saving options on customers satisfaction, 5.8% of location on
customer’s satisfaction ,33.5% of employee behavior on customers satisfaction and
24.2% is of loan term on customer’s satisfaction..

Since all factors are more than 0.05 level of significance all factors are significant.

Major Findings

A cooperative should focus on the customer’s satisfaction. Customer is the life of the
cooperative. Without proper customer loyalty and devotion in the cooperative the
cooperative will not satisfy. Here various factors that make a customer loyal to the
cooperative are taken in consideration; these factors are considered a reason for the
satisfaction. In other words, the research analyses various factors like location of the
cooperative, interest rate, saving option, loan term etc for satisfaction of the cooperative’s
customers. After analyzing the data we got major findings:

Demographic of the respondents

 After taking the survey of 30 customers as 100% shows the gender of

respondent where 46.7% are male 53.3% are female hence it shows majority
of customers are female.

 As per the age group of the respondents, 10% of the respondents belongs to
below 25 age group, 33% belongs to 25-35 age group, 33% belongs to 36-45
age group and the rest 23.3% belongs to above 46 years. Overall the samples
are found to be concentrated to the age group 25-45.

 The research also focused on the education level of the respondent, which
reveals that 30% of them are master graduates, 36.7% bachelor graduates
and 33.3% high school graduates. Here we can see that most people are
bachelors degree holders. And least are masters degree holders

50
 After the analysis of customer satisfaction it is found that interest rate on saving and deposit
is very important for providing customer satisfaction. About 37.5 % of total feel necessity of
proper interest rate for customer satisfaction in a cooperative.
 Similarly saving option doesn’t plays a very important role for satisfaction of the
cooperative. It was found using liker scale 23.4% people feel the variety of saving options
importance for satisfaction
 Location of the cooperative is also found not so essential for customer satisfaction. The
survey revealed that 9.2 %.feel need of proper location of the cooperative this might be a
small proportion but is essential for providing satisfaction

 Employee behavior also have not much impact on satisfaction of the customer about 33.33%
customer felt that employee behavior is a essential factor for satisfaction of the customer.
 After making analysis of all the data by using data analysis tools such as Correlation,
Regression, Cronbach Alpha Reliability we got major outcome. The overall data shows
positive correlation, significance, reliability, ranking of prior independent variable for
customer’s satisfaction.
 Hence it is concluded that all the service factors loan term, interest etc are very essential for
increasing Customer Satisfaction basically on saving and credit cooperative in Nepal.

50
 CHAPTER 4

SUMMARY AND CONCLUSION

Overall, the ambition with this research was to gain a deeper understanding of customer
satisfaction in the retail banking market segment. In our study, we explained the
underlying dimension behind customer satisfaction in the retail banking industry. We
answered the following research question: What are the relationships between perceived
quality, perceived value, and customer satisfaction? We based our research on the
customers from cooperative banks in the retail banking segment. Our findings indicated
that Perceived Quality contributes to customer satisfaction in cooperative banking to a
larger extend than Perceived Value. Moreover, the study ranked the importance of each
variables impacting customer satisfaction as follow: (1) Accessibility, (2) Employee
Competences, (3) Trust, (4) Reliability, (5) Price Transparency, (6) Reactivity.

Summary of the Findings

The research study made a clear description of the factors that affect the
customer satisfaction. There are various factors and elements that affect the
satisfaction level of the customer’s satisfaction. Some of these factors taken in
consideration to to judge the customers satisfactions were location, interest rate,
employee behavior, saving options and loan term.on the basis of these five
dimensions customers satisfaction was evaluated.

Since the numbers of cooperative are increasing more in numbers day by day it
is essential to evaluate the satisfaction level of the customer from the service
provided by these cooperative. However, due to variety of cooperative’s we,
have focused on the saving and cooperative alone to evaluate the satisfaction
level.

Customer satisfaction has become important due to increase in competition. As,

it is considered very important factor in the survival of the cooperative.
According to these literatures, customer satisfaction with the proper service and
satisfaction in customer will led to higher level of operation and profit. A
satisfied customer is six times more likely to repurchase a product and share his
experience with five or six other people further unsatisfied customer can banish
more business from organization then a highly satisfied customer do i.e. higher
customer satisfaction leads to increase loyalty. There is different research,
surveys conducted by different researcher on this matter. They have given
definitions; statement in this matter how ever gives the same outcome
51
 The study was a survey that used structure questionnaire to the targeted population of
customer inside Kathmandu valley who were involved in the cooperative bisiness as a
customer. Out of 50 customers sampled 30 respondent responded to the questionnaire.
SPSS was used for finding out the result of data analysis. Based on the objective analysis
of data and discussion of result, the following are summary of major findings and
conclusion of the study.

 Analysis of all the data by using data analysis tools such as Correlation, Regression,
Cronbach Alpha Reliability we got positive outcome. The overall data shows the variables
are positively correlation this research was found to be 83% reliable.
 There is significant relationship among the variables as a whole. Cronbach alpha shows
the data are reliable hence, gives the positive outcome. Therefore, it is concluded that all
the service quality factorsemployee behavior,location etc are very essential for increasing
Customer Satisfaction basically on saving and credit cooperative in Nepal.
Conclusion

The study provided insight about the various dimensions and their association with
customer satisfaction. The study has come up with the finding that was quested through
research objectives. The relationship of customer satisfaction dimensions identified
(location ,interest rate, employee behavior, deposit rate, loan term) and are tested with
customer satisfaction.

From the analysis and findings, it is clear that all the factors of comfotability and easiness
are very essential for customer satisfaction. The analysis shows the relationship among
variables is significant as a whole i.e. there is positive relationship between various
dimension and customer satisfaction. So cooperative society should focus on increasing
service quality, proper location, interest rate that lead to increase in customer satisfaction
. Proper focus on these factors all can get economic benefit as well as social benefit
which can be very fruitful for increasing the sales in competitive market for the
cooperative as whole. It is concluded that all the factors like location , deposit rate,
employee behavior etc are very essential for increasing Customer Satisfaction basically
on cooperative in Nepal

52
 Bibliography
“Service Quality And Customer Satisfaction: A Case Study - Banking Sectors In Jaffna
District,Sri Lanka” International Journal of Marketing, Financial Services & Management (S.
Sivesan, 2012).

Measuring Customer (Dr. Snehalkumar H Mistr july 7

2013). ACBG -Association of Cooperative Banks of Greece
(febrary 2011).
Anderson, W. E. ((1994),). “A customer satisfactionn research prospectus.

Bahia and Nantel, B. ((2000)). in their research into a National Bank of Canada ,Montreal.
Canada ,Montreal.

co-operative.coop. (n.d.). Retrieved from report on article:

http://www.co- operative.coop/Corporate/sustainability-report-
2012/downloads/Delivering_value/DV_customers_section.pdf

Dr. A. H. Sequeira, “. E. (2012). Customer Services In Co- Operative Banks: A Case Study”,
science research network, research paper, . Retrieved from ssrn: http://ssrn.com

dr. balwinder singh, f. m. (2000). A report of customer satisfaction in urban cooperative banks.
punjab technical university.

Parasuraman, “. A. (1998). a qualitativeframe work for measuring satisfaction.

Ravi C.S, K. B. (January 2013.). “Customers Preference And Satisfaction Towards Banking
Services With Special Reference To Shivamogg District In Karnataka. Trans Asian Journal of
Marketing & Management Research Vol.2 Issue 1, .

-what you need to know about co-operative banks. (2000). Retrieved from www.rediff.com:
1. http://www.rediff.com/money/report/perfin-what- you-need-to-know-about-co-
operative-banks/

53
 CLIENT SATISFACTION SURVEY COOPERATIVE BANK LIMITED
2022
(Interview Questionnaire)

Date: …………………………..
Name of Interviewer: ………………………………………..
Name of Interviewee: ……………………………………….

A. Socio – demographic information

Age

Education Level 1. IlliterAte

2. LiterATe

3. PrimARy (upto clASs 5)

4. SecondARy (From clASs 6 -10)

5. tfigher SecondARy (11 – 12 clASs)

6. BAChelor

7. MASter or ABove

Occupation 1. FARmer

2. Business

3. Government Service

4. PriVATe Service

5. Others (….specify)

B. Client Satisfaction about the service

1. Very sATisfied

1. Are you overALl sATisfied with the 2. SATisfied

fACili- ties provided by the
3. NormAL
cooperATive?
4. DissATisfied

5. Very dissATisfied
1. Very sATisfied

2. Are you hAPpy with our 2. SATisfied

policy ANd schemes?
3. NormAL

4. DissATisfied

5. Very dissATisfied
54
 Very sATisfied
3. Are you hAppy with our
customer ser- vice? 2. SATisfied

3. NormAL

4. DissATisfied

5. Very disssATisfied
1. Very sATisfied
4. Are you hAppy with our
mAnAgement system? 2. SATisfied

3. NormAL

4. DissATisfied

5. Very dissATisfied
1. Yes
5. Would you like to continue with our
ser- vice for next 5 yEArs? 2. No

3. Don’t know

1. Very sATisfied
6. OverALl service qUALity of
the orgANiZA- tion? 2. SATisfied

3. NormAL

4. DissATisfied

5. Very dissATisfied
1. Yes
7. Does this cooperAtive reflect the
stAnd- ARd of Micro finANce 2. No
services? 3. Don’t know

1. SAVIng only
8. WhAt is the mAin reAson for
coming to this cooperAtive? 2. TAKIng lOANs

1. 3. Others ( specify)

5
5
 Couple of dAYs
9. tfow much time do they tAKe to
provide lOANs? 2. A week

3. Over A week

4. Over A month

5. Don’t know
1. 2 to 4%
10. WhAt should be the interest
gAP be- tween SAVIng ANd LOAN 2. 4 to 5%
products?
3. No idEA

4. Others (……… specify)

1. RemittANce
11. WhAt services could be Added to
en- hAnce the Co-operAtive? 2. DigitAl Account mAnAgement

3. Top up rechARge (Mobile phones

And TV subscriptions)

4. Others (……. specify)

1. Yes
12. Do this cooperATive conduct
AnnUAL GenerAL Meeting (AGM) 2. No
regulARly? 3. Don’t know

1. Yes
13. Is the opening hour of this
cooperAtive convenient foryou? 2. No

1. Yes
14. Did you hAVE to complAIn to the
officiALs on ANy mATters during 2. No

lASt 12 months?

1.

5
6
 Yes
15. Do the frAUDs in cooperATives
hAs AF- fected your 2. No

confidence/belief upon this

cooperAtive?

1. Yes
16. Do you recommend this
orgAniZATion toothers? 2. No

1.

THANK YOU FOR YOUR VALUABLE TIME!

57