Case Study

on
Prime Bank
Presented By
Group-2
Brief about the case
 This case is a greatest example of major
service failure in banking sector
 Mr. Ram Naresh Mehera was the person who
had gone through a very careless service from
the bank
 Mr. Mehra was a faculty at National Institute
of Management Pune
 He had taken a loan from Prime bank, Pune of
Rs. 1,95,000

Group No - 2
 At the time of agreement he was informed by
the DSA about foreclosure & conformed by
Personal loan office by telephone at 2% as
outstanding charges
 Mr. Mehera moved to Mumbai & then to
Chennai
 But while he was in Mumbai he changed his
address & account no. and also paid the cheque
for installment for June

Group No - 2
 Mr. Mehra applied for auto debit system from
July
 But auto debit had done additionally
{Although the money paid back but without
any penalty & reason for mistake}
 For all this harassment Mr. Mehra decided to
close the loan account by foreclose
 For which he called customer care but again he
got 2 different answers

Group No - 2
 Mr. Mehra applied for foreclose & also got foreclosure
statement from courier
 He present that statement in Chennai branch but they did
not accepted it as it was not signed
 Again he was fully confused in payment of outstanding
charges 2% or 4%
 On 25th August Mr. Pramood Ekka called him, and discuss
about the problems faced by Mr. Mehra.
 0% is charged by the bank, for his foreclosure of his loan.
 No Due Certificate is received, but PDC, is returned to
him, after 10 days.

Group No - 2
Service Guarantee
 Forecloser after 6 months, informed by DSA
representative
 2% charge on forecloser
 Auto Debit system should start on July
 Post Dated Cheque should be given to him
within 7 days
 At last bank promised to give a gift

Group No - 2
Service Failure
 Failureof Auto Debit System
 Lack of knowledge about different product of
the bank
 Lack of proper response from the employee of
the bank
 Denied of previous statement by Ms. Priya
Dandekar
 Delay of receiving back the PDC

Group No - 2
Service Recovery
 0% charge on Forecloser statement
 Proper response of his e-mail by Mr. Pramod
Ekka.
 Positively received No Due Certificate from the
bank
 No interest charge during the process of
forecloser of loan account.

Group No - 2
Suggestions
 Step-1
 The bank should apologizes for all misconducts
 Step-2
 Proper response should be made by the employees of
the bank
 Step-3
 Proper training should be given to the employees about
each product
 Step-4
 Customer should be informed about Auto Debit System

Group No - 2
Contd…
 Step-5
 The bank should maintain a proper customer
relationship management
 Step-6
 There should be valid document about each
information
 Step-7
 They should provide some compensation

Group No - 2
THANK
YOU