SUMMER TRAINING REPORT

ON

COSTUMER SATISFACTION

PROJECT SUPERVISOR Mr.shyam purohit SUBMITTED BY:

Mr. Mohd. Shakeel Sheikh Lucky Institute of Professional Studies
JODHPUR

(BBA Final 2009-10) Final.

A TRANING PROJECT REPORT

ON THE TOPIC

COSTUMER SATISFACTION

Submitted in partial fulfillment for the Award of degree of

Bachelor of Business Administration

Submitted By: MOHD. SHAKEEL SHEIKH

B.B.A. FINAL PART-III

Submitted To:-

EXAMINARS CERTIFICATION
2

THE Project Report Of MOHD. SHAKEEL SHEIKH ON THE TOPIC COSTUMER SATISFACTION Is Approved And Is Acceptable In Quality And Form.

INTERNAL EXAMINER

EXTERNAL EXAMINER

ACKNOWLEDGEMENT
An endeavor to transform itself into success needs efforts. These efforts are individual, standing in isolation. Such individual efforts require three things for their further development. These three things being Reason, Rationality and Self-Esteem. The combination of these three basic traits delivers Productivity. However, time and again this productivity requires encouragement and guidance. This acknowledgement is an effort to recognize these professionals who have made this project a combination of the three fundamental traits. This project report and the learning process behind it would not have been possible without the guidance of my Mr. SHYAM PUROHIT (A.S.M.). He was able to impart me with the right approach that my training required for its successful practical implementation. I was involved with INDUSIND BANK for these two months, and I came across a lot of people who put in their time and effort towards acclimatizing me to the workings of their organization. I express my thanks to Mr. NEERAJ SIGHVI (B.M) under whose guidance and leadership I was able to enhance my financial as well as inter-personal skills. I am grateful for each and every valuable interaction that brought me to a better understanding of the workings of the Investment Banking and of the intricacies of Investment in India, both forming the crux of my report. MOHD. SHAKEEL SHEIKH

PREFACE
It is a matter of great satisfaction and privilege to present before the esteemed readers this report aimed at Developing Customer Referrals and Market Analysis of Indusind Bank products. This project report is a concrete form of the knowledge that was acquired during the summer training. During the training, which is a part of full two year management course, a student gets the opportunity to apply his/her theoretical knowledge in the corporate world, in short it emphasizes on learning by doing the training paves the way for the student for his/her successful entrance in corporate world of banking. The area of work was to know about Costumer Satisfaction in the Indusind Bank along with various banking operations which are performed by Indusind bank. With the study, I made, I have tried my best to provide some fruitful results that would be of great help to the organization.

PLACE: JODHPUR

TABLE OF CONTENTS

CHAPTER-1 Detail about banking industry

1.Introduction 2.Future landscape of Indian banking 3.Changes in structure of banks 4.Technology in banking CHAPTER-2 Banking structure in india CHAPTER-3 Detail about Indusind bank 1.Introduction of bank 2.Tie-ups of bank 3.New schemes launched by bank 4.Products and brands of bank CHAPTER-4 Comparision of annual reports of two years(2008-09) CHAPTER-5 Banking operations CHAPTER-6 CUSTOMER Satisfaction 1. 2. 3. CHAPTER-7 Services offered by bank CHAPTER-8 SWOT Analysis CHAPTER-9 Conclusion CHAPTER-10 Biblography

CHAPTER-1 A DETAIL STUDY OF BANKING INDUSTRY

INTRODUCTION OF BANKING
Financial Sector Reforms set in motion in 1991 have greatly changed the face of Indian Banking. The banking industry has moved gradually from a regulated environment to a deregulated market economy. The market developments kindled by liberalization and globalization have resulted in changes in the intermediation role of banks. The pace of transformation has been more significant in recent times with technology acting as a catalyst. While the banking system has done fairly well in adjusting to the new market dynamics, greater challenges lie ahead. Financial sector would be opened up for greater international competition under WTO. Banks will have to gear up to meet stringent prudential capital adequacy norms under Basel II. In addition to WTO and Basel II, the Free Trade Agreements (FTAs) such as with Singapore, may have an impact on the shape of the banking industry. Banks will also have to cope with challenges posed by technological innovations in banking. Banks need to prepare for the changes. In this context the need for drawing up a Road Map to the future assumes relevance. The idea of setting up a Committee to prepare a Vision for the Indian Banking industry came up in IBA, in this background.Managing Committee of Indian Banks Association constituted a Committee under the Chairmanship of Shri S C Gupta, Chairman & Managing Director, Indian Overseas Bank to prepare a Vision Report for the Indian Banking Industry. The composition of the Committee is given at the end of the report.The Committee held its first meeting on 23rd June 2003 at Mumbai. Prior to the meeting the members were requested to give their thoughts on the future landscape of the banking industry. A discussion paper based on the responses received from members was circulated along with a questionnaire eliciting views of members on some of the specific issues concerning anticipated changes in the banking environment. In the meeting, which served as a brainstorming session, members gave their Vision of the future. A second meeting of the Committee was held at Chennai on 7th August 2003 to have further discussions on the common views, which emerged in the first meeting, and also to examine fresh areas to be covered in the study. The Vision Statement prepared by the Committee is based on common thinking that crystallized at the meetings. In the Chennai meeting it was decided to form a smaller group from among the members to draft the report of the

Committee. The group met thrice to finalize the draft report. The report was adopted in the final meeting of the Committee held at Mumbai.When we talk about the future, it is necessary to have a time horizon in mind. The Committee felt, it would be rather difficult to visualize the landscape of banking industry say, 20 years hence due to the dynamic environment. While Government of India brought out India Vision 2020, the Committee is of the view that the pace of changes taking place in the banking industry and in the field of Information Technology would render any attempt to visualize the banking scenario in 2020, inconceivable. The entire financial services sector may undergo a dramatic transformation. It was, therefore, felt that we should set our goals for the near future say, for 5-10 years hence and appropriately call this exercise Banking Industry Vision 2010.

FUTURE LANDSCAPE OF INDIAN BANKING

Liberalization and de-regulation process started in 1991-92 has made a sea change in the banking system. From a totally regulated environment, we have gradually moved into a market driven competitive system. Our move towards global benchmarks has been, by and large, calibrated and regulator driven. The pace of changes gained momentum in the last few years. Globalization would gain greater speed in the coming years particularly on account of expected opening up of financial services under WTO. Four trends change the banking industry world over, viz. 1) Consolidation of players through mergers and acquisitions, 2) Globalisation of operations, 3) Development of new technology and 4) Universalisation of banking. With technology acting as a catalyst, we expect to see great changes in the banking scene in the coming years. The Committee has attempted to visualize the financial world 5-10 years from now. The picture that emerged is somewhat as discussed below. It entails emergence of an integrated and diversified financial system. The move towards universal banking has already begun. This will gather further momentum bringing non-banking financial institutions also, into an integrated financial system.The traditional banking functions would give way to a system geared to meet all the financial needs of the customer. We could see emergence of highly varied financial products, which are tailored to meet specific needs of the customers in the retail as well as corporate segments. The advent of new technologies could see the emergence of new financial players doing financial intermediation. For example, we could see utility service providers offering say, bill payment services or supermarkets or retailers doing basic lending operations. The conventional definition of banking might undergo changes.The competitive environment in the banking sector is likely to result in individual players working out differentiated strategies based on their strengths and market niches. For example, some players might emerge as specialists in mortgage products, credit cards etc. whereas some could choose to concentrate on particular segments of business system, while outsourcing all other functions. Some other banks may concentrate on SME segments or high net worth individuals by providing specially tailored services beyond traditional banking offerings to satisfy the needs of customers they understand better than

a more generalist competitor. International trade is an area where Indias presence is expected to show appreciable increase. Presently, Indian share in the global trade is just about 0.8%. The long term projections for growth in international trade is placed at an average of 6% per annum. With the growth in IT sector and other IT Enabled Services, there is tremendous potential for business opportunities. Keeping in view the GDP growth forecast under India Vision 2020, Indian exports can be expected to grow at a sustainable rate of 15% per annum in the period ending with 2010. This again will offer enormous scope to Banks in India to increase their forex business and international presence. Globalization would provide opportunities for Indian corporate entities to Banks in India wanting to increase their expand their business in other countries.

international presence could naturally be expected to follow these corporates and other trade flows in and out of India. Retail lending will receive greater focus. Banks would compete with one another to provide full range of financial services to this segment. Banks would use multiple delivery channels to suit the requirements and tastes of customers. While some customers might value relationship banking (conventional branch banking), others might prefer convenience banking (ebanking).One of the concerns is quality of bank lending. Most significant challenge before banks is the maintenance of rigorous credit standards, especially in an environment of increased competition for new and existing clients. Experience has shown us that the worst loans are often made in the best of times. Compensation through trading gains is not going to support the banks forever. Large-scale efforts are needed to upgrade skills in credit risk measuring, controlling and monitoring as also revamp operating procedures. Credit evaluation may have to shift from cash flow based analysis to borrower account behaviour, so that the state of readiness of Indian banks for Basle II regime improves. Corporate lending is already undergoing changes. The emphasis in future would be towards more of fee based services rather than lending operations. Banks will compete with each other to provide value added services to their customers. Structure and ownership pattern would undergo changes. There would be greater presence of international players in the Indian financial system. Similarly, some of the Indian banks would become global players.

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Government is taking steps to reduce its holdings in Public sector banks to 33%. However the indications are that their PSB character may still be retained. Mergers and acquisitions would gather momentum, as managements will strive to meet the expectations of stakeholders. This could see the emergence of 4-5 world class Indian Banks. As Banks seek niche areas, we could see emergence of some national banks of global scale and a number of regional players. Corporate governance in banks and financial institutions would assume greater importance in the coming years and this will be reflected in the composition of the Boards of Banks.Concept of social lending would undergo a change. Rather than being seen as directed lending such lending would be business driven. With SME sector expected to play a greater role in the economy, Banks will give greater overall focus in this area. Changes could be expected in the delivery channels used for lending to small borrowers and agriculturalists and unorganized sectors (micro credit). Use of intermediaries or franchise agents could emerge as means to reduce transaction costs. Technology as an enabler is separately discussed in the report. It would not be out of place, however, to state that most of the changes in the landscape of financial sector discussed above would be technology driven. In the ultimate analysis, successful institutions will be those which continue to leverage the advancements in technology in re-engineering processes and delivery modes and offering state-of-the-art products and services providing complete financial solutions for different types of customers. Human Resources Development would be another key factor defining the characteristics of a successful banking institution. Employing and retaining skilled workers and specialists, re-training the existing workforce and promoting a culture of continuous learning would be a challenge for the banking institutions.

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CHANGES IN THE STRUCTURE OF BANKS

The financial sector reforms ushered in the year 1991 have been well calibrated and timed to ensure a smooth transition of the system from a highly regulated regime to a market economy. The first phase of reforms focused on modification in the policy framework, improvement in financial health through introduction of various prudential norms and creation of a competitive environment. The second phase of reforms started in the latter half of 90s, targeted strengthening the foundation of banking system, streamlining procedures, upgrading technology and human resources development and further structural changes. The financial sector reforms carried out so far have made the balance sheets of banks look healthier and helped them move towards achieving global benchmarks in terms of prudential norms and best practices. Under the existing Basel Capital Accord, allocation of capital follows a one-size-fit-all approach. This would be replaced by a risk based approach to capital allocation. . The internal risk based approach would need substantial investments in technology and development of MIS tools. For a rating tool for internal assessment to be effective, past data for 3 to 5 years would be required and as such, Indian banking system will have to build up the capabilities for a smooth migration to the new method. Another aspect which is included in Basel II accord is a provision for capital allocation for operational risk. This is a new parameter and even internationally evaluation tools are not yet fully developed. This would be another area where banking system will have to reckon additional capital needs and functioning of its processes. The financial sector reforms have brought in the much needed competition in the market place. The competition to the existing banks came mainly from the techno-savvy private sector banks. In the coming years, we expect to see greater flow of foreign capital to come into the Indian banking sector. Opening up of banking sector to global players would see banks facing global competition. Technology is expected to be the main facilitator of change in the financial sector. Implementation of technology solutions involves huge capital outlay. Besides the heavy investment costs, technology applications also have a high degree of obsolescence. Banks will need to look for ways to optimize resources for technology applications. In this regard, global partnerships on technology

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and skills sharing may help. The pressure on capital structure is expected to trigger a phase of consolidation in the banking industry. Banks could achieve consolidation through different ways. Mergers and acquisitions could be one way to achieve this. In the past, mergers were initiated by regulators to protect the interests of depositors of weak banks. In recent years, market led mergers between private banks have taken place. It is expected that this process would gain momentum in the coming years. Mergers between public sector banks or public sector banks and private banks could be the next logical thing / development to happen as market players tend to consolidate their position to remain in competition. Consolidation could take place through strategic alliances / partnerships. Besides helping banks to achieve economy of scale in operations and augment capital base, consolidation could help market players in other ways also to strengthen their competitiveness. The advantage could be in achieving better segmentation in the market. Strategic alliances and collaborative approach, as an alternative to mergers and acquisitions, could be attempted to reduce transaction costs through outsourcing, leverage synergies in operations and avoid problems related to cultural integration. If consolidation is taken too far, it could lead to misuse of dominant market positions. Rapid expansion in foreign markets without sufficient knowledge of local economic conditions could increase vulnerability of individual banks. Public Sector Banks had, in the past, relied on Government support for capital augmentation. However, with the Government making a conscious decision to reduce its holding in Banks, most Banks have approached the capital market for raising resources. This process could gain further momentum when the government holding gets reduced to 33% or below. It is expected that pressures of market forces would be the determining factor for the consolidation in the structure of these banks. If the process of consolidation through mergers and acquisitions gains momentum, we could see the emergence of a few large Indian banks with international character. There could be some large national banks and several local level banksOpening up of the financial sector from 2005, under WTO, would see a number of Global banks taking large stakes and control over banking entities in

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the country. They would bring with them capital, technology and management skills. This will increase the competitive spirit in the system leading to greater efficiencies. Government policy to allow greater FDI in banking and the move to amend Banking Regulation Act to remove the existing 10% cap on voting rights of shareholders are pointers to these developments. The cooperative banks have played a crucial part in the development of the economy. The primary agricultural societies which concentrate on short-term credit and rural investment credit institutions supported by District / State level cooperative banks have played a crucial role in the credit delivery in rural areas. The Urban Cooperative Banks have found their own niche in urban centres. These institutions in the cooperative sector need urgent capital infusion to remain as sound financial entities. Cooperative sector comes under State jurisdiction while commercial banking operations are regulated by the Reserve Bank of India. The duality in control had weakened the supervisory set up for these institutions. It is expected that certain amendments to the Banking Regulation Act introduced recently in the Parliament with the objective of strengthening the regulatory powers of the Reserve Bank of India would pave the way for strengthening of cooperative / financial institutions. It is expected that these banks would upgrade skills of their staff and improve the systems and procedures to compete with commercial bank entities. Consolidation would take place not only in the structure of the banks, but also in the case of services. For instance, some banks would like to shed their non-core business portfolios to others. This could see the emergence of niche players in different functional areas and business segments such as housing, cards, mutual funds, insurance, sharing of their infrastructure including ATM Network, etc. Rationalization of a very large network of branches, which at present has rendered the system cost ineffective and deficient in service would take place. Most of the banks would have adopted core-banking solutions in a fully networked environment. Back office functions would be taken away from branches to a centralized place. While brick and mortar branches would continue to be relevant in the Indian scenario, the real growth driver for cost cutting would be virtual branches viz., ATMs, Internet Banking, mobile banking, kiosks etc.,

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which can be manned by a few persons and run on 24 x 7 basis to harness the real potential of these technological utilities, there will be strategic alliances / partnership amongst banks and this phenomenon has already set in. As we move along, the concept of branch banking will undergo changes. Banks will find that many of the functions could be outsourced more profitably without compromising on the quality of service. Specialized agencies could come forward to undertake Marketing and delivery functions on behalf of banks. This could see banking products being sold outside the four walls of a branch. Banks would then concentrate on developing new products and earning fee based income. The composition of bank staff will change. As total computerization will render a part of the workforce surplus, banks will go for a rightsizing exercise. Some may resort to another round of VRS to shed excess flab while some other may go for re-deployment to strengthen marketing arms. With greater use of technology and outsourcing of services in different areas, the manpower recruitment will mostly be in specialized areas and technology applications. With commitment shifting from the organization to the profession, we could see greater lateral movement of banking personnel. Training and skill development will, however, continue to be key HR functions. With the age profile of staff undergoing changes, banks will have to focus on leadership development and succession planning. Knowledge management will become a critical issue. Management structure of banks will also undergo drastic changes in the coming years. Instead of the present pyramid structure, the banks will move towards reduction in tiers to ultimately settle for a flat structure. Product-wise segmentation will facilitate speedier decision-making.

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TECHNOLOGY IN BANKING
Technology will bring fundamental shift in the functioning of banks. It would not only help them bring improvements in their internal functioning but also enable them to provide better customer service. Technology will break all boundaries and encourage cross border banking business. Banks would have to undertake extensive Business Process Re-Engineering and tackle issues like a) how best to deliver products and services to customers b) designing an appropriate organizational model to fully capture the benefits of technology and business process changes brought about. c) how to exploit technology for deriving economies of scale and how to create cost efficiencies, and d) how to create a customer - centric operation model. Entry of ATMs has changed the profile of front offices in bank branches. Customers no longer need to visit branches for their day to day banking transactions like cash deposits, withdrawals, cheque collection, balance enquiry etc. E-banking and Internet banking have opened new avenues in convenience banking. Internet banking has also led to reduction in transaction costs for banks to about a tenth of branch banking.

Technology solutions would make flow of information much faster, more accurate and enable quicker analysis of data received. This would make the decision making process faster and more efficient. For the Banks, this would also enable development of appraisal and monitoring tools which would make credit management much more effective. The result would be a definite reduction in transaction costs, the benefits of which would be shared between banks and customers. While application of technology would help banks reduce their operating costs in the long run, the initial investments would be sizeable. IT spent by banking and financial services industry in USA is approximately 7% of the revenue as against around 1% by Indian Banks. With greater use of technology solutions, we expect IT spending of Indian banking system to go up significantly. One area where the banking system can reduce the investment costs in technology applications is by sharing of facilities. We are already seeing banks coming together to share ATM Networks. Similarly, in the coming years,

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we expect to see banks and FIs coming together to share facilities in the area of payment and settlement, back office processing, data warehousing, etc. While dealing with technology, banks will have to deal with attendant operational risks. This would be a critical area the Bank management will have to deal with in future. Payment and Settlement system is the backbone of any financial market place. The present Payment and Settlement systems such as Structured Financial Messaging System (SFMS), Centralised Funds Management System (CFMS), Centralised Funds Transfer System (CFTS) and Real Time Gross Settlement System (RTGS) will undergo further fine-tuning to meet international standards. Needless to add, necessary security checks and controls will have to be in place. In this regard, Institutions such as IDRBT will have a greater role to play.

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CHAPTER-2 BANKING

STRUCTURE OF INDIA

Organizational Structure of Banks in India: In India banks are classified in various categories according to differ rent criteria. The following charts indicate the banking structure:

Reserve Bank of India

Commercial Banks

Co-operative Banks Short-term credit

Development Banks

Nationalized

Private

Long-term credit

Agricultural Credit

Urban Credit

EXIM

Industrial

Agricultural

Broad Classification of Banks in India: 1) The RBI: The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the Reserve Bank. 2) Public Sector Banks: State Bank of India and its Associates (8) Nationalized Banks (19) Regional Rural Banks Sponsored by Public Sector Banks (196) (3) Private Sector Banks: Old Generation Private Banks (22)
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Foreign New Generation Private Banks (8)

Banks in India (40) (4) Co-operative Sector Banks: State Co-operative Banks Central Co-operative Banks Primary Agricultural Credit Societies Land Development Banks State Land Development Banks

(5) Development Banks: Development Banks mostly provide long term finance for setting up industries. They also provide short-term finance (for export and import activities) Industrial Finance Co-operation of India (IFCI) Industrial Development of India (IDBI) Industrial Investment Bank of India (IIBI) Small Industries Development Bank of India (SIDBI) National Bank for Agriculture and Rural Development (NABARD) Export-Import Bank of India

Role of Banks:
Banks play a positive role in economic development of a country as repositories of communitys savings and as purveyors of credit. Indian Banking has aided the economic development during the last fifty years in an effective way. The banking sector has shown a remarkable responsiveness to the needs of planned economy. It has brought about a considerable progress in its efforts at deposit mobilization and has taken a number of measures in the recent past for accelerating the rate of growth of deposits. As recourse to this, the commercial banks opened branches in urban, semi-urban and rural areas and have introduced a number of attractive schemes to foster economic development. The

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activities of commercial banking have growth in multi-directional ways as well as multidimensional manner. Banks have been playing a catalytic role in area development, backward area development, extended assistance to rural development all along helping agriculture, industry, international trade in a significant manner. In a way, commercial banks have emerged as key financial agencies for rapid economic development. By pooling the savings together, banks can make available funds to specialized institutions which finance different sectors of the economy, needing capital for various purposes, risks and durations. By contributing to government securities, bonds and debentures of term-lending institutions in the fields of agriculture, industries and now housing, banks are also providing these institutions with an access to the common pool of savings mobilized by them, to that extent relieving them of the responsibility of directly approaching the saver. This intermediation role of banks is particularly important in the early stages of economic development and financial specification. A country like India, with different regions at different stages of development, presents an interesting spectrum of the evolving role of banks, in the matter of inter-mediation and beyond. Mobilization of resources forms an integral part of the development process in India. In this process of mobilization, banks are at a great advantage, chiefly because of their network of branches in the country. And banks have to place considerable reliance on the mobilization of deposits from the public to finance development programmes. Further, deposit mobalization by banks in India acquired greater significance in their new role in economic development.Commercial banks provide short-term and medium-term financial assistance. The short-term credit facilities are granted for working capital requirements. The medium-term loans are for the acquisition of land, construction of factory premises and purchase of machinery and equipment. These loans are generally granted for periods ranging from five to seven years. They also establish letters of credit on behalf of their clients favouring suppliers of raw materials/machinery (both Indian and foreign) which extend the bankers assurance for payment and thus help their delivery. Certain transaction, particularly those in contracts of sale of Government Departments, may require guarantees being issued in lieu of security earnest money deposits for release of advance money, supply of raw materials for processing, full payment of bills on the assurance of the performance etc. Commercial banks issue such guarantees also.

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CHAPTER-3 DETAIL ABOUT INDUSIND BANK INTRODUCTION IndusInd Bank

Type Founded Headquarters Industry Website

Private Bank 1994 Mumbai, India BFSI www.indusind.com

IndusInd Bank Limited is a Mumbai based Indian new generation bank established in 1994. The bank offers commercial, transactional and electronic banking products and services. Indusind Bank was incorporated in April 1994 by Dr. Manmohan Singh the then Union Finance Minister. Indusind Bank is the first among the new-generation private banks in India. The bank started its operations with a capital amount of Rs.1,000 million among which Rs.600 million was donated by the Indian Residents and Rs.400 million was raised by the Non-Resident Indians. The bank has specialized in retail banking services and continuously upgrades its support systems by introducing newer technologies. It is also working on expanding its network of branches all across the country along with meeting the global benchmark. According to the bank, its name is derived from the rich and vivid Indus Valley Civilisation. Slogan IndusInd bank has used many slogans to promote their cause. Some of the slogans used by the bank are We Care... Dil Se and We Make You Feel Richer.IndusInd Bank Ltd is the new generation Indian bank based at Mumbai - the financial capital of the nation. Founded in 1994, IndusInd Bank Ltd provides a range of products and services to its customers, which include transactional, commercial and electronic banking products and services. It is also one of the foremost new generation private banks in India. THE GROWTH Since its incorporation, IndusInd Bank Ltd went through a good climbing phase to reach at its current status within a very short period of time. In 1996-97, IndusInd Bank became the pioneer in launching Internet Banking. In 2000-01, the total business of IndusInd

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crossed Rs. 10,000 crores, which reached Rs. 14,000 crores mark in the next financial year. It recorded the highest productivity in Indian banking sector with a business of Rs. 16 crores per employee. In 2003-04, IndusInd Bank Ltd celebrated its 10th year by touching Rs. 19,000 crores business volume. In the same year, Ashok Leyland Finance also merged with IndusInd. The bank also achieved ISO 9001:2000 Quality Management System certification for its 'Entire Network of Branches'. It's the first Indian Commercial Bank to achieve the distinction. The following years saw further growth of IndusInd Bank Ltd at a great pace. In 2008-09, the total business of IndusInd Bank Ltd crossed Rs. 37,800 crores. Its net worth became Rs. 1429 crores, while the earning per share augmented to Rs. 4.28 from Rs. 2.35. Board of directors: -

BOARD OF DIRECTORS Managing Director, Ashok Leyland Ltd. Former Dy Managing Director of SBI Chartered Accountant and Expert in Agriculture and Rural Economy Professor, Finance & Accounting, IIM, Ahmedabad Practising Lawyer M.D. of Ipca Laboratories Ltd., having practical experience of SSI Mr. Premchand Godha & Agriculture Mr. Ajay Hinduja Businessman Mr. Sushil Chandra I.A.S (Retired), Advocate Tripathi Mr. Ashok Kini Former Managing Director of SBI Mr. Romesh Sobti Managing Director & CEO Mr. R. Seshasayee Mr. R. Sundararaman Mr. T. Anantha Narayanan Dr. T. T. Ram Mohan Mrs. Pallavi Shroff

MILE STONES

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Year Business Achievements 2008-09

Total business crossed Rs. 37,800 crores Net Profit up by 98%. To Rs. 148.34 crores Net Interest Income up by 53% to Rs. 459.03 crores Fee and Other Income up by 53% to Rs. 456.24 crores Net NPA at 1.14 % as compared to 2.27% as on March 31, 2008. Net worth moved to Rs. 1429 crores Earning per share (Basic) increased to Rs 4.28 from Rs 2.35 Capital Adequacy Ratio stood at 12.33 % as against the minimum regulatory norm of 9%. Highest A1+ rating for its Certificates of Deposit by ICRA and the highest P1+ rating for its Fixed Deposits and Certificates of Deposit by CRISIL. Dividend declared 12% up from 6%. Bagged The Economic Times Acer Intel Smart Workplace Award, in the Financial Services category. Mandated as Settlement Banker for Tea auctions at Kolkata, Siliguri, Coonoor and Guwati.

2007-08

Business Turnover touched a figure of Rs 31833.16 crores Network of Branches increased to 180 along with 183 off-site ATMS, thus having presence in over 147 geographical locations spread over 28 States including Union Territories Highest A1+ rating for its Certificates of Deposits by ICRA and the highest P1+ rating for its FDs by CRISIL A strategic tie-up with Religare Securities for offering a value-added 3-in-1 savings accounts-linked package to customers comprising a savings bank account, a depository account, and an Internet trading account Signed an agreement with National Multi Commodity Exchange Ltd. (NMCE) to become their Clearing Bank; It already had such agreements with MCX and NCDEX Strategic partnership with Cholamandalam MS for bancassurance Bestowed with the prestigious 'Corporate Excellence' award by Amity International Business School during its 10th International Business Summit (INBUSH) 2008. The award was presented by H.E. Mr. Salohoddin Nasriddinov, Ambassador, Embassy of Tajikistan Received recognition in the form of a Certificate of Nomination for the Avaya Global Connect Customer Responsiveness Awards. The participants for the award were evaluated on various parameters such as Responsiveness, Intelligence Generation, Intelligence Dissemination, Customer Education, Top management Emphasis, Innovation and learning Received recognition by BSE and NASSCOM Foundation for the Best Corporate Social Responsibility Practice Category

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Featured in The Standard & Poor ESG India index which provided the investors with exposure to liquid and tradable index of 50 of the best performing stocks in the Indian market as measured by environmental, social, and governance (ESG) parameters

2006-07

Net worth crossed a milestone figure of Rs. 1000 crores at Rs. 1056 crores Successful completion of GDR issue of Rs. 145.96 crores Business Trunover touched a figure of Rs 28.700 crores registering a growth of 18.14% over the previous year. Network of Branches increased to 170 along with 99 off-site ATMs, thus having presence in over 141 geographical locations spread over 27 States including Union Territories. Highest A1+ rating for its Certificates of Deposits by ICRA and Highest P1+ rating for its FDs by CRISIL. Bestowed with the prestigious IBA Award for technology implementation (STP). Added a number of new business and product lines, viz the launch of Indus GOLD and Indus Gift Card, E-Remittance facility, tie-up with number of Banks for ATM usage, tie-up with Religare Securities to extend Portfolio Management services and Bancassurance tie-up with Aviva Life Insurance

2005-06

Ranked among the top ten banks in the country in the ET500 list of leading companies in India. Rated as 'The best among the top 10 private-sector banks' in a survey covering 79 banks conducted by Business Standard in its November 2005 issue. Ranked sixth in the overall list, the Bank was also identified he 'Most Efficient Bank' among all banks in India. Bestowed 'Indias Most Productive Bank' status by a Business Today- KPMG Survey Presented 'Outstanding Achiever of the Year 2005- Corporate' (Runner upBanking Technology Award) by IBA, Finacle (from Infosys) and TFCI (Trade Fair and Conference International). Honoured with the 'Award for Corporate social Responsibility (CSR)' at the India Brand summit 2005, Mumbai

2004-05

Business Turnover crossed Rs. 22000 crores Network grew to 115 branches, 9 extension counters and 195 ATMs, spread over 95 geographical locations Bestowed with highest ratings for deposits from reputed rating agencies Highest rating 'P1+' - on Fixed Deposits from CRISIL Highest rating 'P1+' - on Certificate of Deposits from CRISIL

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Highest rating 'F1+' - on Certificate of Deposits from Fitch Ratings India Pvt. Ltd. Bank's second International Representative office opened in London. 100th Branch opened at Dadar, Mumbai. Signed an Agreement with NCDEX as clearing banker. Launched International Mahila Card.

2003-04

Total business volume touches Rs. 19,000 crores. Completes 10 years of banking excellence. Ashok Leyland Finance merges with the Bank. The first Indian Commercial Bank to achieve certification for its 'Entire Network of Branches' under the ISO 9001:2000 Quality Management System. Launch of Debit Card- International Power Card. Banks first International Representative Office in Dubai. One of the first banks to go live on RTGS platform.

2002-03

One of the first banks to implement the RBI- Electronic Funds Transfer scheme.

2001-02

Total business volume touches Rs. 14,000 crores. Highest productivity in the Indian banking sector with Rs. 16 crores of business per employee.

2000-01

Total business volume crosses Rs. 10,000 crores

1998-99

IndusnInd again rated as one of the Top Perfoming Banks in various survey reports, for the second year in succession.

1997-98

IndusInd rated as one of the Top Performing Banks in various survey reports.

1996-97

Pioneer in launching Internet Banking

1994-95 IndusInd Bank comes into existence. Completes first profitable year of operations

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MISSION To position IndusInd Bank limited as a Top 3 performer in the new private bank space in 3 years measured by the 3 parameters of Profitability, Productivity and Efficiency. BRAND Trust, Clarity of vision, Calmness, Communication, Truth, Stability, Harmony, Modernity Creativity, Imagination, Expression, Energy, Expansiveness, Innovation, Warmth, Friendly, Approachability

IndusInd Bank is one of the fastest growing new-generation private-sector banks in India. The Company's principal activity is to provide banking services, including accepting corporate and retail deposits, providing loans, personal, housing and vehicle financing, commercial and institutional credit, trade finance, forex, capital and commodities market services. IndusInd bank was the first bank in India to offer real time electronic funds transfer to its customers. Other activities of the Company include providing short term and long-term loans to different sectors such as agricultural sector, small & large-scale industries. The company successfully completed merger with a group company, Ashok Leyland finance Ltd, a non-banking finance company offering commercial vehicle finance

TIE UPS OF INDUSIND BANK

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A. Aviva Life Insurance ties-up with Indusind Bank New Delhi, Jan 16: Aviva Life Insurance on Tuesday entered into bancassurance tie up with Indusind Bank for offering its products to the bank's customers. "Bancassurance channel contributes close to 65 per cent of Aviva's business in India. With this strategic tie-up, Aviva has found a partner with extensive distribution reach, further strengthening our position in the market," Aviva Life Managing Director Bert Paterson said in a statement. Products like Lifelong, Saveguard Junior, Easylife plus and Pensions Plus would be available to the customers of the bank in the first phase, he said. Aviva Life Insurance is a 74:26 joint venture between Dabur and the UK-based Aviva PLC. B. IndusInd Bank inks Strategic Partnership with Maruti Suzuki

Banking Sector Auto Sector Featured TNM Indusind Bank Maruti Suzuki

Private-sector IndusInd Bank and Maruti Suzuki India Limited have announced a strategic tie-up for financing Maruti Vehicles on all India basis. As per the agreement, Maruti Suzuki India has nominated IndusInd Bank as its preferred financier for financing all Maruti Vehicles. IndusInd Bank will offer financing facilities to all eligible customers for purchasing Maruti Vehicles through its network of 180 branches, spread over 147 geographical locations.

C.Hyundai joins hands with IndusInd Bank for car finance

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New Delhi: The countrys second largest car maker Hyundai Motor India on Friday said it has signed a memorandum of understanding with private-sector lender IndusInd Bank for providing retail financing facilities to its car buyers. We are glad to partner with IndusInd Bank as through this tie-up we will be able to introduce multiple customer centric initiatives for the benefit of the customers, HMIL senior vice-president (Marketing and Sales) Arvind Saxena said. During the last six months, the company has also tied-up with Punjab National Bank, Syndicate Bank and Corporation Bank among other public sector banks to leverage its product range with easy financing options, he added. IndusInd Bank has a network of 180 branches, spread across 147 locations in 28 states and union territories. The lender also has 484 distribution outlets across the country.

NEW SCHEMES LAUNCHED BY INDUSUND BANK

A. IndusInd Bank launches Global Remittance offering Indus Fast Remit Extends its service to NRIs in USA Key features: No Paperwork: Remittance transaction is conducted using a 100% online platform Economical Besides being a FREE service, it also offers a highly competitive Exchange Rate Wide Reach: Money can be transferred from any US bank account to any bank Account in India Support Center Local call centre in the US to assist the Remitter with payment Secure The platform uses a 128 bit SSL encryption to ensure security of each transaction.

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B. IndusInd bank presents Suvarna mudra

Suvarna mudra attractively priced, a range of 999.9 pure gold coins. It is a mangnificentlydesigned product, presented in the tamper- proof assay certified certicard.

PRODUCTS AND BRANDS OF INDUSIND BANK

Product Features Alloy Fine Gold Fine Gold Fine Gold Fineness 999.9 999.9 999.9 Weight 5 gm [Medal] 10 gm [Medal] 50 gm [Medal] Dimensions 180.00mm 22.00mm 27 * 47mm Thickness 1.02mm 2.04mm 2.14mm Edge Serrated Serrated Plain

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PRODUCTS

BRANDING

IndusInd Bank Ltd offers a wide array of transactional, commercial and electronic banking products and services.

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Personal Banking Accounts o Indus classic Savings Account o Indus Easy Savings Account o Demat Account o RFC Account o Current Account o Specialized Account o Indus Privilege Savings Account o Indus Young Saver Deposits o Flexi Term Deposit o Sweep -In / Seep-Out Deposit o Young Saver Deposit o Senior Citizen Scheme o Regular Recurring Deposit o Flexi Recurring Deposit Loans o Home Loans o Small Business Loan o Commercial Vehicle Loan o Car Loan o Two-wheeler Loan o Construction Equipment Loan o Loan Against Shares o Loan Against Property o Loan Against Rent Receivables o Loan Against Mutual Funds o Credit Against Specific Securities o Traders Advances Cards o Regular Debit Card o Gold Debit Card o Indus Money o Summer Swipe Special Wealth Management Services o Portfolio Management o Investments o Insurance o Survana Mudra Corporate Banking o Large Indian Companies o Small & Medium Enterprises o Supply Chain Management International Banking

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Correspondent Banking SWIFT Advisory Services Facilities to Exporters Trade Finance RFC Account for Residents Gold Banking Investment Banking Treasury o Foreign Exchange Desk o Money Market Desk o Derivatives Desk Capital & Commodities Markets o Stock Exchange Cell o Commodities Exchange Cell o Banker to Public / Rights o Debenture Trustee o IPO Funding o Loan Against Demat Shares o Depository Services NRI Services o Deposit Schemes o Value Added Services o Returning NRIs o Remittances o Investments o Taxation Online Banking o IndusNet - Internet Banking o Indus Pay - e-wallet o VISA Money Transfer o ATMs o Indus Billpay o Mobile Top-Ups o Mobile Banking RTGS / NEFT
o o o o o o o

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Our Service Offering includes:

Mergers & Acquisitions Advisory o Buy / sell side advisory across various sectors o Cross border M&A Advisory and India Entry Strategy Advisory Business Strategy, Valuation & Restructuring o In-depth analysis of the company businesses o Identification of core and non core businesses o Developing blue print for restructuring o Business Plan & Business Valuation o Implementation of Restructuring Scheme Debt Restructuring & Syndication o Analyzing Companys capital structure and evaluating various scenarios for restructuring & their impact o Recommendation of optimum financial structure o Corporate Debt Restructuring, Asset Reconstruction Project Finance o Project appraisal and tying up finance for new projects o Structuring / syndication of debt Private Equity o Providing access to private equity Arrangement / Syndication / Placement of FCCB / GDR / ECB o Providing access to international markets through our tie-ups with International Financial Institutions Fund Development (Equity / Real Estate

NRI - SERVICES

At IndusInd, we believe that the best banking experiences are those that give you more than just what's expected and our NRI services have been designed keeping this belief in mind. With IndusInd Bank's range of products and features, you get unmatched benefits that extends well beyond your basic banking needs. Our wide network of 180 branches spread across India, strategic alliances with other banks across the globe and representative offices in Dubai and London, ensure that we are always within reach, wherever you are.

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Experience the world of hassle-free, secure and convenient NRI Banking with IndusInd Bank. Please click on any of the below links for more information on our products and services.
NRI Savings Accounts How Do I?

NRE Premium Savings Account NRO Premium Savings Account NRE Regular Savings Account NRO Regular Savings Account

Open an NRE / NRO Savings Account? Choose whether I need to open a NRE / NRO Account? Locate my nearest branch in India?
Fixed Deposits

Remittances

Indus - Fast Remit (for US based customers) Indus Speed Remit (through Exchange Houses) E-remittance (in alliance with Doha Bank, Qatar and Union National Bank, UAE) SWIFT / Telegraphic Transfer Money Transfer Services Scheme (MTSS)

NRE Fixed Deposits NRO Fixed Deposits FCNR Deposits RFC Deposits

COMPARISION OF THE ANNUAL REPORT OF TWO YEARS (20082009)

BUSINESS HIGHLIGHTS 2008-2009 1. TOTAL BUSINESS CROSSED RS 37800 CRORE. 2. NET PROFIT UP 98% TO RS 148.34 CRORE.

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3. NET INTEREST INCOME UP BY 53% TO RS 459.03 CRORE. 4. FEE AND OTHER INCOME UP BY 53% TO RS 456.24 CRORE. 5. NET NPA AT 1.14% AS COMPARED TO 2.27% AS ON MARCH 31,2008. 6. NET WORTH MOVED TO RS 1429 CRORE. 7. EARNING PER SHARE (BASIC) INCRESED TO RS 428 FROM RS 2.35. 8. CAPITAL ADEQUACY RATIO STOOD AT 12.33% AS AGAINST THE MINIMUM REGULATORY NORM. 9. HIGHEST A1+ RATING FOR ITS CERTIFICATE OF DEPOSIT BY ICRA AND THE HIGHEST P1+ RATING FOR ITS FIXED DEPOSIT AND CERTIFICATE OF DEPOSIT BY CRISIL. 10. DIVIDEND DECLARED 12% UP FROM 6%. 11. MANDATED AS SETTLEENT BANKER FOR TEA AUCTION AT KOLKATTA, SILIGURI, COONOOR AND GUWAHATI. 12. BAGGED THE ECONOMIC TIMES ACER INTEL SMART WORK PLACE AWARD IN THE FINANCIAL SERVICS CATEGORY. BANKS PERFORMANCE FINANCIAL PERFORMANCE AS ON MARCH 31 2009 22110.25 15770.64 412.42 148.34 AS ON MARCH 31 2008 19037.42 12795.31 236.35 75.05

DEPOSIT ADVANCE OPERATING PROFIT (before dep. And provision and contingencies) NET PROFIT Business Performance

The salient features of your Banks operating performance during the year 2008-09 are summarized in the table below:

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2008-09 INTEREST EARNED INTEREST EXPENDED NET INTEREST INCOME OTHER INCOME FEE & MISC. INCOME BAD DEBTS RECOVERY TOTAL OPERATING INCOME OPERATING EXPENSES EXCLUDING DEP. OPERATING PROFIT BEFORE DEP. AND PROVISIONS
LESS: PROVISIONS AND CONTEGENCIES NET PROFIT

2007-08 1880.66 1579.86 300.80 297.58 255.28 42.30 598.38 362.03 236.35
121.13 75.05

2304.47 1850.44 459.03 456.25 427.36 28.89 915.28 502.86 412.42

219.91 148.34

YOY GROWT H 22.80% 17.13% 52.60% 53.32% 67.41% -31.70% 52.96% 38.90% 74.50%
81.55% 97.65%

In spite of a turbulent market environment, your Banks Net Profit, after considering necessary provisions and contingencies and all expenses, rose by 97.65% to Rs.148.34 crores, as against Rs.75.05 crores in the previous year. The Operating Profit (before depreciation and provisions and contingencies) was higher at Rs.412.42 crores as against Rs.236.35 crores in the previous year, a rise of 74.50%. The core earnings of your Bank through Net Interest Income improved by 52.60% to Rs.459.03 crores from Rs.300.80 crores. Yield on advances rose during the year to 13.23%, as against the yield of 11.76% in 200708. Cost of deposits for the year 2008-09 was 8.22% as against 7.84% last year. Net Interest Margin (NIM) improved, pre-amortisation, to 1.96% in 2008-09 compared with 1.53% last year. Non-Interest Income rose to Rs.456.25 crores from Rs.297.58 crores, recording a y-o-y rise of 53.33%. Higher revenue growth and better cost management resulted in Cost / Income Ratio improving to 59.76% in 2008-09 as against67.2% last year. Revenue per employee during the year improved to Rs.21.53 lakhs from Rs.20.86 lakhs last year.

Banking operation performed on daily basis in indusind bank Daily Activities Check list Head Operations Cash: Ensure that:

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1. 2. 3. 4. 5.

Cash is maintained within retention limits Cash at counter is kept to the bare minimum to ensure safety Cash in ATMs is adequate to meet customer requirements for atleast 2-3 days. Cash balance in hand tallies with cash as per Equation/3 while closing cash ATM cash including off site ATMs tallies with cash as per Equation/3 while doing maintenance activities. VISA entries which have not hit should be entered and recorded.

Accounts with other Banks: 1. Balance with other bank tallies with mirror account in Equation/3. (Try and obtain daily emailing of statements / net banking facilities from the Bankers to enable a daily check) 2. Differences if any are followed up immediately for reversal. 3. Balance with Banks is maintained to minimum requirement. Excess amount must be lent to other banks/branches or remitted to RBI Clearing 1. Mark returns received from outward clearing through ARC option and AGI option wherever required. . 2. Release funds through RLF option for cheques booked yesterday 3. Outward Clearing: Check cheques booked thorough report generated by the option X39. Balance in clearing account DCINR tallies with the total amount of outward clearing instruments sent. 4. Inward clearing: Check the postings through the option MSI. Total of inward cheques received must tally with the amount posted. 5. Clear pending cheques in ARS queue to mark returns / pass cheques before the clearing return time. All the returned cheques must be sent to the clearing house. 6. Ensure that the following accounts representing clearing outward, inward, returns etc. is zero at the end of the day. E.g. 830711 356, 800731 356, 830996 001, 810100 001, 800501 001 / 002, 800511 001, 800731 001, 830936 001, 000572 600, 860572-001 etc. 7. The cheques returned in outward clearing must be handed over / couriered to the customers within 24 hours. KYC Checks 1. All the accounts opened during the day are checked with the relative account opening forms. Ensure that all the forms are verified by Head of Operations (RBB) / Ops In charge (CBB) and approved by Business Head (RBB) / Head of Operations (CBBs & Fort Branch).

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2. The purpose of cash deposits / withdrawals above Rs. 10.00 lacs are in accordance to the profile of the customer and record the same on the voucher. Suspicious transactions to be reported to KYC AML Cell. 3. AML alerts received from Corporate Office are attended to on priority. Record Maintenance 1. All the account opening forms along with documents obtained are kept under proper custody. Security stationery is kept in fire proof vaults Daily vouchers are numbered, stitched and kept under proper custody. 4. The total no. Of DDs / POs / TDRs issued tally with the issued details in Equation/3, register. Report checking 1. Ensure meticulous checking of TODBYBATCH reports by officials other than those who have posted the batches and XXXXRESP (entries passed on your branch by other branches) reports. File available under user data P58ARPR1. 2. Report covering deals opened today - P64DLOPTDY available under user data P64ARPR1. 3. Report covering deals closed today - P64AMATTOD available under user data P64ARPR1. The above reports must be checked for the previous day to ensure non occurrence of erroneous postings. General House keeping and safeguards 1. 2. 3. 4. 5. Proper deployment of office boys. Ensure that all the users are using their own IDs to put through transactions. Debit cards and pins are kept under separate custody. Check that lockers operated during the day are in order. Request for deliverables (welcome kit, cheque books etc.) are input in workflow solutions for all the accounts opened today and for cheque book requests received (After verifying the outstanding Cheque Leaves with profile of customer). 6. All the deviations and overrides have the approval of the business head or are diarised for follow up. 7. Transactions have been passed as per passing powers of the executives. 8. No deals are pending for authorization. Vouchers 1. All the vouchers posted during the day are checked through MSI option at periodical intervals

2. 3.

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2. Check all vouchers representing debits to income / expense accounts and ensure that they are signed by the BH. 3. All the vouchers are stamped and signed as per the level of authority. Reconciliation 1. Reconciliation of all accounts figuring in INDUSMART reports Annexure IV through the option ERF.. Follow up for reversal of entries outstanding. Check that the Branch is tallied. Overdrawn Accounts 1. 2. Check 11C report for overdrawn accounts periodically. Follow up for recovery of accounts with debit balances

2.

CHAPTER-7 SERVICES OFFERED BY INDUSIND BANK

Banking covers so many services that it is difficult to define it. However, these basic operations have always been recognized as the hallmark of the genuine banker. These are The receipt of the customers deposits The collection of his cheques drawn on other banks The payment of the customers cheques drawn on himself

There are other various types of banking services like: 1) Advances Overdraft, Cash Credit, etc. 2) Deposits Saving Account, Current Account, etc. 3) Financial Services Bill discounting etc. 4) Foreign Services Providing foreign currency, travelers cheques, etc. 5) Money Transmission Funds transfer etc. 6) Savings Fixed deposits, etc.

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7) Services of place or time ATM Services. 8) Status Debit Cards, Credit Cards, etc. Broad Classification of Services in a bank: The different services in a bank can be broadly classified into: Retail Banking. Trade Finance. Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the wholesale banking operations, which cover treasury operations, are at the hand office or a designated branch. Retail Banking: Deposits Loans, Cash Credit and Overdraft Negotiating for Loans and advances Remittances Book-Keeping (maintaining all accounting records) Receiving all kinds of bonds valuable for safe keeping

Trade Finance: Issuing and confirming of letter of credit. Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promissory notes, drafts, bill of lading and other securities. Treasury Operations: Buying and selling of bullion. Foreign exchange

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Acquiring, holding, underwriting and dealing in shares, debentures, etc. Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They insure, guarantee, underwrite, participate in managing and carrying out issue of shares, debentures, etc. Apart from the above-mentioned functions of the bank, the bank provides a whole lot of other services like investment counseling for individuals, short-term funds management and portfolio management for individuals and companies. It undertakes the inward and outward remittances with reference to foreign exchange and collection of varied types for the Government. Common Banking Products Available: Some of common available banking products are explained below: A) Credit Card: Credit Card is post paid or pay later card that draws from a credit line-money made available by the card issuer (bank) and gives one a pay. If the amount is not paid full by the end of the period, one grace period to is charged interest. A

credit card is nothing but a very small card containing a means of identification, such as a signature and a small photo. It authorizes the holder to change goods or services to his account, on which he is billed. The bank receives the bills from the merchants and pays on behalf of the card holder. These bills are assembled in the bank and the amount is paid to the bank by the card holder totally or by installments. The bank charges the customer a small amount for these services. The card holder need not have to carry money/cash with him when he travels or goes for purchasing. Credit cards have found wide spread acceptance in the metros and big cities. Credit cards are joining popularity for online payments. The major players in the Credit Card market are the foreign banks and some big public sector banks like SBI and Bank of Baroda. India at present has about 3 million credit cards in circulation. B) Debit Cards: Debit Card is a prepaid or pay now card with some stored value.

Debit Cards quickly debit or subtract money from ones savings account, or if one were taking out cash. Every time a person uses the card, the merchant who in turn can get the
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money transferred to his account from the bank of the buyers, by debiting an exact amount of purchase from the card. To get a debit card along with a Personal Identification Number (PIN). When he makes a purchase, he enters this number on the shops PIN pad. When the card is swiped through the electronic terminal, it dials the acquiring bank system either Master Card or Visa that validates the PIN and finds out from the issuing bank whether to accept or decline the transaction. The customer never overspread because the amount spent is debited immediately from the customers account. So, for the debit card to work, one must already have the money in the account to cover the transaction. There is no grace period for a debit card purchase. Some debit cards have monthly or per transaction fees. Debit Card holder need not carry a bulky checkbook or large sums of cash when he/she goes at for shopping. This is a fast and easy way of payment one can get debit card facility as debit cards use ones own money at the time of sale, so they are often easier than credit cards to obtain. The major limitation of Debit Card is that currently only some 3000-4000 shops country wide accepts it. Also, a person cant operate it in case the telephone lines are down. C) Automatic Teller Machine: The introduction of ATMs has given the customers the facility of round the clock banking. The ATMs are used by banks for making the customers dealing easier. ATM card is a device that allows customer who has an ATM card to perform routine banking transaction at any time without interacting with human teller. It provides exchange services. This service helps the customer to withdraw money even when the banks ate closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number and secret Password.ATMs are currently becoming popular in India that enables the customer to withdraw their money 24 hours a day and 365 days. It provides the customers with the ability to withdraw or deposit funds, check account balances, transfer funds and check statement information. The advantages of ATMs are many. It increases existing business and generates new business. It allows the customers. To transfer money to and from accounts. To view account information. To order cash.
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To receive cash.

Advantages of ATMs: To the Customers ATMs provide 24 hrs., 7 days and 365 days a year service. Service is quick and efficient Privacy in transaction Wider flexibility in place and time of withdrawals. The transaction is completely secure you need to key in Personal Identification Number (Unique number for every customer). To Banks Alternative to extend banking hours. Crowding at bank counters considerably reduced. Alternative to new branches and to reduce operating expenses. Relieves bank employees to focus an more analytical and innovative work. Increased market penetration. ATMs can be installed anywhere like Airports, Railway Stations, Petrol Pumps, Big Business arcades, markets, etc. Hence, it gives easy access to the customers, for obtaining cash. D) E-Cheques: The e-cheques consists five primary facts. They are the consumers, the merchant, consumers bank the merchants bank and the e-mint and the clearing process. This chequring system uses the network services to issue and process payment that emulates real world chequing. The payer issue a digital cheques to the payee ant the entire transactions are done through internet. Electronic version of cheaques are issued, received and processed.

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E) Electronic Funds Transfer (EFT): Many modern banks have computerised their cheque handling process with computer networks and other electronic equipments. These banks are dispensing with the use of paper cheques. The system called electronic fund transfer (EFT) automatically transfers money from one account to another. This system facilitates speedier transfer of funds electronically from any branch to any other branch. In this system the sender and the receiver of funds may be located in different cities and may even bank with different banks. Funds transfer within the same city is also permitted.. The other important type of facility in the EFT system is automated clearing houses. These are the computer centers that handle the bills meant for deposits and the bills meant for payment. In big companies pay is not disbursed by issued cheques or issuing cash. The payment office directs the computer to credit an employees account with the persons pay. F) Telebanking: Telebanking refers to banking on phone services.. a customer can access information about his/her account through a telephone call and by giving the coded Personal Identification Number (PIN) to the bank. Telebanking is extensively user friendly and effective in nature. To get a particular work done through the bank, the users may leave his instructions in the form of message with bank. Facility to stop payment on request. One can easily know about the cheque status. Information on the current interest rates. Information with regard to foreign exchange rates. Request for a DD or pay order. D-Mat Account related services. And other similar services.

G) Mobile Banking: A new revolution in the realm of e-banking is the emergence of mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone access to real-time banking services, regardless of their location. But there is much more to mobile banking from just on-lie banking. It provides a new way to pick up information and interact with the banks to carry out the relevant banking business. The potential of mobile banking is limitless and is
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expected to be a big success. Booking and paying for travel and even tickets is also expected to be a growth area. According to this system, customer can access account details on mobile using the Short Messaging System (SMS) technology6 where select data is pushed to the mobile device. The wireless application protocol (WAP) technology, which will allow user to surf the net on their mobiles to access anything and everything. This is a very flexible way of transacting banking business. H) Internet Banking: Internet banking involves use of Internet for delivery of banking products and services. With Internet banking is now no longer confirmed to the branches where one has to approach the branch in person, to withdraw cash or deposits a cheque or request a statement of accounts. In Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. The Internet Banking now is more of a normal rather than an exception due to the fact that it is the cheapest way of providing banking services. As indicated by McKinsey Quarterly research, presently traditional banking costs the banks, more than a dollar per person, ATM banking costs 27 cents and internet banking costs below 4 cents approximately. ICICI bank was the first one to offer Internet Banking in India. Benefits of Internet Banking: Reduce the transaction costs of offering several banking services and diminishes the need for longer numbers of expensive brick and mortar branches and staff. Increase convenience for customers, since they can conduct many banking transaction 24 hours a day. Increase customer loyalty. Improve customer access. Attract new customers. Easy online application for all accounts, including personal loans and mortgages

I) RTGS Real Time Gross Settlement (RTGS) System is set up, operated and maintained by Reserve Bank of India to enable funds settlement on real-time basis across RTGS enabled banks in the country. This is the fastest possible money transfer system through the

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banking channel. The RTGS system is primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh. Financial Transaction on the Internet: Electronic Cash: Companies are developing electronic replicas of all existing payment system: cash, cheque, credit cards and coins. Automatic Payments: Utility companies, loans payments, and other businesses use on automatic payment system with bills paid through direct withdrawal from a bank account. Direct Deposits: Earnings (or Government payments) automatically deposited into bank accounts, saving time, effort and money. Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls, laundry service, library fees and school lunches. Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for payment of goods and services. This system has made functioning of the stock Market very smooth and efficient. Cyber Banking: It refers to banking through online services. Banks with web site Cyber branches allowed customers to check balances, pay bills, transfer funds, and apply for loans on the Internet. Demat: Demat is short for de-materialisation of shares. In short, Demat is a process where at the customers request the physical stock is converted into electronic entries in the depository system

CHAPTER-7 Customer Satisfaction

Customer satisfaction
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard.
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In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.[1] There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.

Contents

1 Measuring customer satisfaction 2 Methodologies 3 Improving Customer Satisfaction 4 See also 5 References

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while targeting non-customers;[2] measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Because are basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Bart Allen and Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Interdepartmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry (Leonard L) [3] between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides

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the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. The usual measures of customer satisfaction involve a survey [4] with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. charnessss....

Methodologies
(ACSI) is a scientific standard of customer satisfaction. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, research has shown that ACSI data predicts stock market performance, both for market indices and for individually traded companies. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc.applies the methodology of the ACSI offline, and Foresee Results applies the ACSI to websites and other online initiatives
American Customer Satisfaction Index

The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model. or RATER is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer[5]) to indicate the gap between customer expectations and experience.
SERVQUAL

provides another measure of customer satisfaction, known for its top-box approach and automotive industry rankings. J.D. Power and Associates' marketing research consists primarily of consumer surveys and is publicly known for the value of its product awards.
J.D. Power and Associates

Other research and consulting firms have customer satisfaction solutions as well. These include A.T. Kearney's Customer Satisfaction Audit process[6], which incorporates the Stages
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of Excellence framework and which helps define a companys status against eight critically identified dimensions. For Business to Business (B2B) surveys there is the InfoQuest box[1]. This has been used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average response rate of 72.74%. The box is targeted at "the most important" customers and avoids the need for a blanket survey.

Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer satisfaction. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organizations attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty.

Customer Satisfaction in 7 Steps

By Adrian Thompson February 11th, 2002 Reader Rating: 8.5 It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved.
1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest

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assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale.
2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologised repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service.
3. Be Friendly and Approachable

A fellow SitePointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of

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their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads: "Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way.
7. Honour Your Promises

It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss.

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Conclusion

Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back.

Customer Satisfaction Model

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KIWI PUMPS has adopted ISO 9001:2000 system and the main aim is to take care of the CUSTOMER SATISFACTION. CUSTOMER FOCUS: Materials are supplied as per the customers order, viz.,

- Quantity. - Variety. - Timely dispatched. - Type of packing. - Transport Selection.

SPECIAL REQUIREMENT OF CUSTOMER: In addition to our regular products, request for special products are received. It is the endeavor of the company to see that special characteristics are in built into the products, to satisfy the specific requirement of the customer. Some of the special requests are :

- Size of end connection.

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- Special packaging requirement. - Special colours of paints used etc.

CUSTOMER GRIEVANCES: As with the business, certain grievances would also be arising. Prompt action is taken to remove any irritants so that grievances are reduced at the first place. Main grievances that the unit gets are :

Supply of material at short notice period in the season. We do inform, the customers, the minimum time required to supply the materials. Quality related problems are very few and the reasons are 1. Quality raw materials are used. 2. Proper processes are adopted at different stages of manufacture etc.

CUSTOMER FEEDBACK: As a part of ISO-9001:2000 system, the company collects feedback from the customers at regular intervals. Such feedbacks are by various methods, viz.,

- By sending a standard format & collecting the data. - From our marketing personnel, while they interact with customers during tours. - As and when the customers visit the unit.

We also send the information, such as ACTION TAKEN, based on the feedback received from various sources. The company receives CUSTOMER PROPERTY, such as LABLES, INSTRUCTION BOOKLETS which are to used before dispatching the products. The company takes care of keeping such property, safely. Customer Communication

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It is very important to have good communication between the unit & the CUSTOMERS for the growth of the business. Various steps are taken to achieve the above goal. PRODUCT LITERATURE: Each of our distributor / dealer are given PRODUCT LITERATURE, which explains various factors, such as type of materials used, performance characteristics, prices etc. which will help in understanding the product quality and also compare with similar products available in the market. PRODUCT DATA: In addition to the above, related product data, i.e. how to install, how to maintain, related materials required to install & use our products etc. are provided. SERVICE INFORMATION: Installation & maintenance booklet gives broad guidelines and helps in carrying out minor service requirements. In case of major problem, the dealer distributor will help in carrying out the services. It required, the company also helps in providing services of special nature. CALL BACK SERVICES:
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The type of product is such that CALLBACK SERVICES are in general not required. In case of any manufacturing defect, the company does the necessary rectification, free of charges. WARRANTY: In general the company offers warranty for the products for a period of one year, for any kind of manufacturing defects. Most of the time, it is observed that the products fails due to 1) Low voltage and 2) Improper installation. ISO-9001:2000 / QUALITY CERTIFICATION: The company has adopted ISO-9001:2000 system and has informed all its customers about this fact. PUBLICITY: The company does issue advertisements in technical magazines on PUMPS and thus communicate the information to the dealers/distributor/customers about the product, company's philosophy, introduction of new items etc. Customer Service All the pumps purchased from KIWI PUMPS or through our nationwide distribution network has the backup of our customer service facilities. Our aim is to offer you the support you need to keep your pumps working efficiently to ensure long, trouble free operation. To provide better service to our customers, we provide specialized training to the technicians, installation personnel on our products, care to be taken during installation, how to analyze faults & carry-out rectification by carrying our minor repairs at the site etc.

Keeping our Customers Satisfied

We exceed in serving our customers with a focus on Quality and Reliable Execution
The basis of our operations and the key to our success is our level of customer satisfaction. Borealis makes significant efforts to continually improve its products and services.

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In a 2009 Townsend Solutions study among PP customers, Borealis ranked number 1 in overall satisfaction, giving proof for our continuous focus on customer satisfaction and services. Borealis' commitment to quality leadership has been reinforced by the creation of our quality policy that has been implemented company-wide. The policy stipulates that:

Quality and customer satisfaction are the responsibility of all employees We achieve customer satisfaction through efficient business and manufacturing processes, managed and executed by competent people with the right attitude and behaviour promoting our zero defects mindset We improve continuously and seek nimble solutions in order to fulfil the customer's future needs Whenever we fail to satisfy customer expectations we do our utmost to recover customer confidence and to avoid that the problem occurs again

In order to measure the level of our customer satisfaction, we regularly conduct customer surveys and participate in independent benchmarking studies. The surveys are valuable sources of information as they show what is important to our customers and suggest where and what we need to improve. We have learned through these surveys that the deliverables of our basic products and services are what matters most to our customers. The surveys also reveal that what a customer values most is:

Consistent products Reliable order and delivery processes

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Prompt response to customer complaints Correct what has gone wrong

Bridging the gap between our operations and our customers

For each product, Borealis has assigned a dedicated Product Owner who:

acts as the customers' voice to our manufacturing plants, communicates market requirements, secures that specifications and controls are established.

The product owners continuously review product performance through the use of statistical methods and propose improvements. The results of these performance reviews, as well as proposed imporvements, are discussed and decided in cross functional Customer Support Teams (CST). CSTs are established in each manufacturing plant and consist of key players along the supply chain. The teams have clear improvement targets and projects that are monitored carefully. Specific problems are also addressed by these teams as they play a key role in handling customer complaints. Complaint handling time has been consistently improved over the last years. Our main target, however, is to reduce the number of defects that lead to complaints. We see each complaint as an opportunity to learn and implement lasting corrective actions. http://www.borealisgroup.com/about/quality/customer-satisfaction/

Measuring Managing Customer Satisfaction

and
It takes continuous effort to maintain high customer satisfaction levels.
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________________________
by Kevin Cacioppo

As markets shrink, companies are scrambling to boost customer satisfaction and keep their current customers rather than devoting additional resources to chase potential new customers. The claim that it costs five to eight times as much to get new customers than to hold on to old ones is key to understanding the drive toward benchmarking and tracking customer satisfaction.

"The gulf between satisfied customers and completely satisfied customers can swallow a business."

Measuring customer satisfaction is a relatively new concept to many companies --Harvard Business Review, that have been focused exclusively on income statements and balance sheets. Companies November/December 1995 now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that today's sharp competitors that their focus must change. Competitors that are prospering in the new global economy recognize that meas-uring customer satisfaction is key. Only by doing so can they hold on to the customers they have and understand how to better attract new customers. The competitors who will be successful recognize that customer satisfaction is a critical strategic weapon that can bring increased market share and increased profits. The problem companies face, however, is exactly how to do all of this and do it well. They need to understand how to quantify, measure and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, analyze and use the data as a strategic weapon to drive the business, no firm can be effective in this new business climate. Plans constructed using customer satisfaction research results can be designed to target customers and processes that are most able to extend profits. Too many companies rely on outdated and unreliable measures of customer satisfaction. They watch sales volume. They listen to sales reps describing their customers' states of mind. They track and count the frequency of complaints. And they watch aging accounts receivable reports, recognizing that unhappy customers pay as late as possible--if at all.

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While these approaches are not completely without value, they are no substitute for a valid, well-designed customer satisfaction surveying program. It's no surprise to find that market leaders differ from the rest of the industry in that they're designed to hear the voice of the customer and achieve customer satisfaction. In these companies: Marketing and sales employees are primarily responsible for designing (with customer input) customer satisfaction surveying programs, questionnaires and focus groups. Top management and marketing divisions champion the programs. Corporate evaluations include not only their own customer satisfaction ratings but also those of their competitors. Satisfaction results are made available to all employees. Customers are informed about changes brought about as the direct result of listening to their needs. Internal and external quality measures are often tied together. Customer satisfaction is incorporated into the strategic focus of the company via the mission statement. Stakeholder compensation is tied directly to the customer satisfaction surveying program. A concentrated effort is made to relate the customer satisfaction measurement results to internal process metrics.

To be successful, companies need a customer satisfaction surveying system that meets the following criteria: The system must be relatively easy to design and understand. It must be credible enough that employee performance and compensation can be attached to the final results. It must generate actionable reports for management.

Defining customer satisfaction

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Because the concept of customer satisfaction is new to many companies, it's important to be clear on exactly what's meant by the term. Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service. The achievement of customer satisfaction leads to company loyalty and product repurchase. There are some important implications of this definition: Because customer satisfaction is a subjective, nonquantitative state, measurement won't be exact and will require sampling and statistical analysis. Customer satisfaction measurement must be undertaken with an understanding of the gap between customer expectations and attribute performance perceptions. There should be some connection between customer satisfaction measurement and bottom-line results.

"Satisfaction" itself can refer to a number of different facts of the relationship with a customer. For example, it can refer to any or all of the following: Satisfaction with the quality of a particular product or service Satisfaction with an ongoing business relationship Satisfaction with the price-performance ratio of a product or service Satisfaction because a product/service met or exceeded the customer's expectations

Each industry could add to this list according to the nature of the business and the specific relationship with the customer. Customer satisfaction measurement variables will differ depending on what type of satisfaction is being researched. For example, manufacturers typically desire on-time delivery and adherence to specifications, so measures of satisfaction taken by suppliers should include these critical variables. Clearly defining and understanding customer satisfaction can help any company identify opportunities for product and service innovation and serve as the basis for performance appraisal and reward systems. It can also serve as the basis for a customer satisfaction surveying program that can ensure that quality improvement efforts are properly focused on issues that are most important to the customer.

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Customer Satisfaction Measurement Facts

Objectives of a customer satisfaction surveying program A 5-percent increase in loyalty can increase profits by 25%85%. A very satisfied customer is nearly six times more likely to be loyal and to repurchase and/or recommend your product than is a customer who is just satisfied. Only 4 percent of dissatisfied customers will complain. The average customer with a problem eventually tells nine other people. Satisfied customers tell five other people about their good treatment.

In addition to a clear statement defining customer satisfaction, any successful surveying program must have a clear set of objectives that, once met, will lead to improved performance. The most basic objectives that should be met by any surveying program include the following: Understanding the expectations and requirements of all your customers Determining how well your company and its competitors are satisfying these expectations and requirements

Developing service and/or product standards based on your findings Examining trends over time in order to take action on a timely basis Establishing priorities and standards to judge how well you've met these goals

Before an appropriate customer satisfaction surveying program can be designed, the following basic questions must be clearly answered: How will the information we gather be used? How will this information allow us to take action inside the organization? How should we use this information to keep our customers and find new ones?

Careful consideration must be given to what the organization hopes to accomplish, how the results will be disseminated to various parts of the organization and how the information will be used. There is no point asking customers about a particular service or product if it won't or can't be changed regardless of the feedback. Conducting a customer satisfaction surveying program is a burden on the organization and its customers in terms of time and resources. There is no point in engaging in this work unless it has been thoughtfully designed so that only relevant and important information is gathered. This information must allow the organization to take direct action. Nothing is more frustrating than having information that indicates a problem
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exists but fails to isolate the specific cause. Having the purchasing department of a manufacturing firm rate the sales and service it received on its last order on a scale of 1 (terrible) to 7 (magnificent) would yield little about how to improve sales and service to the manufacturer. The lesson is twofold. First, general questions are often not that helpful in customer satisfaction measurement, at least not without many other more specific questions attached. Second, the design of an excellent customer satisfaction surveying program is more difficult than it might first appear. It requires more than just writing a few questions, designing a questionnaire, calling or mailing some customers, and then tallying the results.

Understanding differing customer attitudes

The most basic objective of a customer satisfaction surveying program is to generate valid and consistent customer feedback (i.e., to receive the voice of the customer, which can then be used to initiate strategies that will retain customers and thus protect the most valuable corporate asset--loyal customers). As it's determined what needs to be measured and how the data relate to loyalty and repurchase, it becomes important to examine the mind-set of customers the instant they are required to make a pre-purchase (or repurchase) decision or a recommendation decision. Surveying these decisions leads to measures of customer loyalty. In general, the customer's pre-purchase mind-set will fall into one of three categories--rejection (will avoid purchasing if at all possible), acceptance (satisfied, but will shop for a better deal), and/or preference (delighted and may even purchase at a higher price). This highly subjective system that customers themselves apply to their decisions is based primarily on input from two sources: The customers' own experiences--each time they experience a product or service, deciding whether that experience is great, neutral or terrible. These are known as "moments of truth." The experiences of other customers--each time they hear something about a company, whether it's great, neutral or terrible. This is known as "word-of-mouth."

There is obviously a strong connection between these two inputs. An exceptional experience leads to strong word-of-mouth recommendations. Strong recommendations influence the experience of the customer, and many successful companies have capitalized on that link.

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How does a customer satisfaction surveying manager make the connection between the survey response and the customer's attitude or mind-set regarding loyalty? Research conducted by both corporate and academic researchers shows a relationship between survey measurements and the degree of preference or rejection that a customer might have accumulated. When the customer is asked a customer satisfaction question, the customer's degree of loyalty mind-set (or attitude) will be an accumulation of all past experiences and exposures that can be indicated as a score from 1 (very dissatisfied) to 5 (very satisfied). It can also be captured with other response formats with an odd number of choices (e.g., 1 to 3 or 1 to 7) to allow for a neutral response. Obviously, the goal of every company should be to develop customers with a preference attitude (i.e., we all want the coveted preferred vendor status such that the customer, when given a choice, will choose our company), but it takes continuous customer experience management, which means customer satisfaction measurement, to get there-and even more effort to stay there.

About the author

Since completing his master's degree in 1998, Kevin Cacioppo has been working for the leading integrated enclosure manufacturer. In his present role as global account leader, he has applied both theory and experience to support the world's largest semiconductor original equipment manufacturer in the United States and abroad. His work continues to indentify, in the perception of the customer, what steps must be taken to solidify relations and secure future business. E-mail him at [email protected] .

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CHAPTER- Conclusion

CHAPTER-8 SWOT ANALYSIS

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A. STRENGTHS Indusind Bank has excellent brand awareness and high quality image. Indusind Bank has excellent market coverage all over the world and covers a lot on the globe. B. Advanced Technology Providing innovative products & Services Vast pool of skilled manpower WEAKNESS Indusind Bank's product line is not clearly positioned compared with HDFC and IDBI C. It needs a unique selling proposition. Too many competitors High cost of funds Low international credit ratings and Bureaucratic procedures OPPORTUNITIES Consumers are showing increased interest in some good schemes of Indusind Bank. Company develops a device for measuring illumination level. Liberalization of the economy Growing banking sector Use of foreign earnings for investment in foreign activities Indusind uses technology to provide value-added service to its customers. For Indusind; technology is an integral part of their business D. THREATS

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Expansion always brings high risk with itself so that is to be checked. Major prolonged economic depression. Domestic political dominance Competition from other industry rivals like HDFC. Competitors superiority in services and operations.

CHAPTER-9 CONCLUSION
The banking scenario has changed drastically. The changes which have taken place in the last ten years are more than the changes took place in last fifty years because of the institutionalisation, liberalisation, globalisation and automation in the banking industry.If we talk about Indusind bank . it is growing in very progressive way towards its growth path . Providing various types of services to its customers. We can observe about the progress of the bank as its total business crossed rs. 37800 crores and net profit up by 98% to rs 148.34 crores in year 2008-09. It is launching various new schemes for attracting more and more customers . making tieups with other companies for improving its covering area. And for grasping more and more market opportunities . we have already disscused about the services and products offered by indusind bank using new and more innovative technology. We have disscused about the clearing process in detail and other banking operations performed by the bank .At last we can conclude that indusind bank provides a wide array of commercial, transactional and electronic banking products to corporate clients in India, both large, and small and medium scale enterprises. they have innovative

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products designed with focused approach to suit requirements of various segments. they offer corporate banking services including working capital finance, term loans, trade and transactional services, foreign exchange and cash management services. The facilities are structured to meet specific needs of the client taking into account a client's risk profile. With there strong customer oriented approach, we have built relationships with a number of Indian companies including multinationals, well known domestic business houses and public sector companies.

CHAPTER-10 Bibliography
Internet: o
www.indusind bank.com

o www.economictimes.com
o

www.financeyahoo.com

o www.pakistanmba.jimdo.com

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Magazines: o o o Business Today Business World Business India News Papers: o o o Economic times Business standard Business line

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