A Study on Customer Satisfaction on Cash Deposit of Sonali Bank: A Study on Thakurgaon Principal Branch

Posted on 18th Dec 2024 12:45:03 AM Banking, Finance


Introduction

Deposit collection is the major function of all commercial banks, which help to carry out almost all transaction of the bank. Deposit is the most important part for a bank because investment is made by bank from its deposit. It collects fund from the people and invests it. Deposit is considered to be the lifeblood for a bank since it cannot run without it. A commercial bank as a financial intermediary in an economy has two main tasks is to collect deposit at lower interest rate and to provide loan at a higher rate with a view to ensure its survival and to mobilize country’s resources. Without the help of commercial banks, it is not possible to collect sufficient capital for national capital formation. From this point of view, I have conducted a research on “Customer Satisfaction on Cash Deposit of Sonali Bank Limited, Principal Branch, Thakurgaon”. Deposit mobilization has great effect on its investment policy that’s why I choose this topic where I evaluated its overall deposits position including sources and amount and compared trends of different deposit scheme over last 6 years.

So the deposits in commercial bank have a good contribution to the country’s economy. If deposits are well collected and sell mobilized the person as well as country can benefit from it. The study however intends to give general information regarding deposits and prospects of the deposit and its mobilization in the country, which may give the general idea about deposits.

Background of the study

Banking sector plays an important role for economic development of a country like Bangladesh. Besides this, flourishing of banking sector depends on customer satisfaction as well as their willingness of getting services. As stated before, deposit collection is one of the vital functions for a bank to survive itself.

Sonali bank one of the largest banks in our country. Recently, it is facing different scandals, like misappropriation of fund, fraud, and so on. For these reasons, it is in deep problem. But the bank is trying to overcome these obstacles. That is why it is important to know the customers’ perception about cash deposit to Sonali bank, is the bank affected or not, is there any change of satisfaction level on cash deposit or not?

Literature review

Levesque, T and McDougall, G.H.G. (1996), the study investigated the major determinant of customer satisfaction and future behavioral intensions in the retail banking sector. The study identifies the determinants that include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used

Malhotra, M., and Arora, S. (1999). The study investigates that level of customer satisfaction in the public sector banks and the private, with the purpose of helping bank managements to formulate marketing strategies to attract customers towards them. The exploratory study was done by collecting data from the cities of amritsor, Ludhiana and Chandigarh. Twenty attributes were taken into consideration for measuring the level of satisfaction/dissatisfaction.

Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) adopt a different approach and view customer satisfaction as a multi dimensional construct just as service quality, but argues that customer satisfaction should be operationalized along the same factors (and the corresponding items) on which service quality is operationalized. Based on this approach, the link between service quality and customer satisfaction has been investigated. The results indicate that the two constructs are indeed independent but are closely related, implying that an increase in one is likely to lead to an increase in another.

Khatri & Yukti Ahuja (2008) have analyzed customer satisfaction in public and private sector banks and revealed that the Indian banking sector has witnessed heightened competition with so many banks coming up with all their potential and using their global strength to their advantage in order to establish themselves in the market. Private Banks seem to have satisfied its customers with good services and they have been successful in retaining its customers by providing better facilities than Public sector Banks.

Armstrong Robert W., and Seng T.B. (2000), the study extends the current understanding of customer satisfaction at the business –to – business level in the Asian banking industry. It incorporates guanxi(Chinese business relationship), relationship marketing and the disconfirmation paradigm. The research highlights the importance of relational constructs and disconfirmation paradigm in the influencing customer satisfaction at the business – to – business level in the Singapore banking industry.

Gap

Research is an approach to minimize or eradicate the risk or problem. It becomes easier to contribute on literature when researchers get opportunity to analyze previous studies. A few literatures on “customers’ satisfaction on cash deposit” are found those are related to the Sonali Bank. All are those are not remarkable or adaptable. There are various literature are found about various banks and various fields. These literatures are not equally effective because of present situation, time, interest rate, service, process, reliability and ownership. Customers are diversified regarding banks. Besides these many researchers have worked in different perspective according to their objective. These objectives are not same to my objectives. 

Objectives of the study

Every mission has some specific aims or objectives. Research is not an exception than that. The prime motive of research is to gather practical knowledge. In addition to, there have some visible aims of this research those are under as follows:

  • To know Deposit Mix Position and trend of cash deposit of sonali bank principal branch Thakurgaon.
  • To know the level of customer satisfaction.
  • To identify the prospects of improving customer satisfaction.

Methodology of the Study

Research Design

The research is based on explanatory in terms of research type. Exploratory research is one type of research design, which has as its primary objective the provision of insights into and comprehension of the problem situation confronting the researcher. Exploratory research is used in case of problem must define more precisely, identify relevant courses of action, or gain additional insights before an approach can be developed. When an issue is encountered that is already known and have a description of it, there might arise need to begin to wonder why things are the way they are. The desire to know the reason to explain is the purpose of exploratory research. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about customer’s satisfaction on cash deposit of “Sonali Bank PLC”.

Scaling technique

Close ended question followed by Likert scale method are asked to understand the customers opinion towards satisfaction on cash deposit of Sonali bank.

Population: All the branches of Sonali Bank PLC Located in everywhere in Bangladesh has been taken into consideration as population.

Sample: Sonali Bank PLC Principal branch Thakurgaon is taken as a sample.

Sample Size: Sixty customers and all the officers of Sonali Bank PLC, Principal Branch,Thakurgaon considered as sample size.

Data collection method: In order to prepare an research report on ‘‘customer satisfaction on cash deposit of Sonali Bank Limited” relevant data has been collected primarily by observation of different records, papers, documents, operational process. 

Source of Data

In this research two sources are used to collect data and they are primary data source and secondary data source. Primary data are those data which is originated by the author for the specific purpose of describing or analyzing something. Secondary data are data collected for some purpose other than the main facts. Secondary data are quick source of background information.

Primary data source

  • Questionnaire development
  • Survey
  • Face to face conversation

Secondary Data Collection Method

The only source of secondary data was the official record of the Bank. Other sources of secondary data are given below.

  • Some Published and unpublished research report. 
  • Books, Magazines and Papers.
  • Business and Technical Journals.
  • Public records and statistics. 
  • Web site of the Sonali Bank.

To evaluate the trend of cash deposit of the Sonali bank, Principal Branch Thakurgaon, I used annual data from 2008 to 2013.

Techniques of data analysis

The data have been tabulated and analyzed with the help of different financial ratios, statistical tools. These are given below

Tabular form

Here I have presented the deposit mix position, Account wise total deposit position and comparative deposit position over 6 years etc. in tabular form. 

Graphical representation

To evaluate the deposit management system graphical method has employed here. I tried to present graphically trend of deposit position of every account through bar chart and pie chart where I shown how much fluctuate deposit position in every account over 6 years.

Trend analysis of total

Trend analysis is a one kind of criteria, which may be used to measure the performance of a bank. The trend can represent the growth or decline of position of a bank over a period of time. Here I have tried to identify a trend of total deposit of the branch 5 years After trend analysis we found that the total deposit position of this branch is upper trend which implies that its deposit position comparably favorable over 2008 to 2013years.I also have tried to know about change in number of these accounts from year to year. To do so, I have taken into consideration the total number of various accounts had been maintained by the branch from the year 2008 to 2013. And I have also tried to show the trend of account wise total deposit as well as percentage change in deposits over 6 years.

Limitations of the study

There are some specific problems and limitations those were faced during the entire process of preparing the report. Some of them are-

  • Because of time and cost constraints, it was not possible to interview all customers who are very high-profiled personnel and more frequent users of accounts.
  • During the interview, there was some amount of non co-operation from a section of the respondents, which were unavoidable. Hesitation and refusal of the respondents caused one of the major limitations.
  • The lack of experience in the field of research may become another limiting factor.
  • Lack of time and resource constraint has also limited the scope to conduct the survey smoothly and so as to prepare the report.

In spite of all the drawbacks faced, everything has been managed well at the end. I believe the report is a quality report on deposit analysis of the Sonali Bank PLC, Principal Branch Thakurgaon, so readers are requested to consider these limitations while reading and justifying any part of my study.

 

Contact us to read the full 'Research Report' internshipreport12@gmail.com

 

CONTENTS

CHAPTER 1 INTRODUCTION

Introduction

Background of the study

Literature review

Gap

Objectives of the Study

Methodology of the Study

Limitations of the Study

CHAPTER 2 DEPOSIT MANAGEMENT SYSTEM (SONALI BANK LTD. PRINCIPAL BRANCH, THAKURGAON)

Deposit

Types of Deposit Account

Time Deposit

Demand Deposit

CHAPTER 3 TREND ANALYSIS

Deposit Mix Position 31ST December, 2013

Account Wise Total Deposit

Comparative deposit position over 6 years

Deposit Position of Fixed Deposit

Deposit Position of Short-Term Deposit

Deposit Position of DPS

Deposit Position of Savings Deposit

Deposit Position of Current Account

Deposit Position of Call Deposit Account

CHAPTER 4 QUESTIONNAIRE ANALYSIS

Measurement of the various factors

Measurement formula

CHAPTER 5 FINDING, RECOMMENDATIONS AND CONCLUSION

Finding

Recommendation

Conclusion

Reference

Questionnaire



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