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Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 11

November 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 300

A Comparative Analysis of the Public Sector and Private

Sector Banks With Reference To Customer Relationship

Management in India

*Jyoti Rani

*Teaching Assistant, Department of Commerce, B.P.S.Mahila Vishvavidalaya,

Khanpur Kalan, Sonipat, Haryana.

Email: jyotibhanwala@gmail.com

Abstract

This paper has specified that a

comparative analysis of the private sector

banks and public sector banks on the basis

of CRM. CRM can be examined on the

basis of the parameters which have

defined the effectiveness from the business

point of view. This study has specifies the

comparative analysis and various factors

analyzed and documented. This paper has

considered the 26 factors in which 8

factors are more significantly important in

the banking sector. Questionnaires are

filled to the public sector banks and

private sector banks. After analyzing the

various factors which are considered in

research, it is observed that 8 factors are

significant as compared to other factors.

The research is done to measure the

customer satisfaction index and to find out

that customer account management in

banks. This study also helps to monitor the

working styles, structure, and economic

objectives of various nationalized banks in

comparison to private sector banks. SPSS

packages has used to analyzed and

compile the collected data from the field

survey. The researcher collected the

original data and frequency distribution

has studied on the collected data. The

research has helped also to find out the

significant difference between the public

sector and private sector banks.

Key Words: CRM, Online and Offline

banking services, Customer Satisfaction

Index

Introduction

Banks have been managing the

information of the customers such as their

profile, location and their saving. They

have a close relationship between the

customers and a good knowledge of their

needs and their cash positions. During the

planned economy period for economic

development, the bank products were

bought in India and not sold. Our public

sector banks have lost their marketing

Page 2 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 11

November 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 301

attitude and marketing is the customer

oriented, without customer no one can be

succeeds. Public sector bank has improved

their customer service which is related to

that processes such as services are quick,

error free and convenient for the

customers. Banks have very strong for the

market intelligence units and in house

research for facing the competition in the

market and customer retention. Marketing

is the combination of demand and supply.

Most of the times, banks world-over a

decade re-engineered their organizations to

improve the efficiency and reduce the cost

for increasing the customers. For this, to

maximize the value of this resource, our

banks need to transfer their branches from

transaction processing centers to customer

centric centers. After transferring the

branches at the customer centric points,

banks earned the benefits by retaining their

customers. Branches helped the customers

to inform and educate about their services

such as customer loans, insurance

products, mutual fund etc. The biggest

challenge our banks face today is that to

establish customer intimacy. It is

important for the banks that they provide

such type of services that the customer

come back to him. CRM has implemented

and integrated correctly in the banking

sector that established a proper

relationship between the banking sector

and the customers.

When a proper channel established in the

banking sector and after that bank has

followed a CRM which improving

customer satisfaction levels. Data mining

used by the banks which helps in

analyzing which has helped in improving

service levels and finding new business

opportunities. It is necessary for the banks

that they established the serious

governance systems for privacy risk

management. The critical issue is that

banks are not enabled to safeguard the

customer privacy completely without

undermining the innovations in banking.

This innovation is beneficial both for the

customers and providers. Which are

product and transaction-oriented and

focused on discrete rather than on the

continuous activities. Most of customers

change their banks due to some problems.

With the help of advanced technology,

banking sector provides such type of

services that is internet banking, ATM’s.

After that customer has freely chosen any

bank for their transactions. This situation

coupled with the pressure of competitive

and dynamic markets which contributed

for the growth of the banking sector.

Objectives of the Study

Page 3 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 11

November 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 302

a) To study & monitor the working

styles, structure, economic

objectives of various Nationalized

Banks in comparison to Pvt. Banks

b) To measure the customer

satisfaction index

c) To evaluate the control criterion for

the level of computerization by

banks to provide efficient services.

Literature Review

Rasmi (2015) aimed to explore the

relationship between the CRM and Indian

Banking Sector. The author has focused on

the perspective customer which facing the

CRM policies in context of the banking

sector. This paper is based to analyze and

implementing the banking system for the

CRM and identify the challenges and as

well as success factor for understanding

the impact of CRM.

Simo , M & Bregasi , M. (2013) found out

that banking marketing as manifested not

merely in the trading techniques but it also

meet the needs of the customer. And the

authors have more focus on the banks that

how the political and customer loyalty

maintained by the banks that operated in

Albania and which ensure the

sustainability growth of the banking

sector.

Balakrishnan , H & Krishaveni , R. (2014)

examined that customer satisfied with the

banking services and the main aim of the

banking sector is to provides the better

services to the existing customer and retain

them by providing better services. The

study is based on the selected private

sector banks.

Rathod, M.G. (2012) aim to explore that

customer are the key indicators of the any

banks. Customers are satisfied by all the

bank which are the private sector,

cooperative and national banks. Customers

has not ignored by the banks. A bank can

grow only when he satisfied their

customers. Many time banking sector

relate to the retail segment which helped to

provide the services to the customer.

Stanley, S. (2012) aim to investigate the

customer relation with the bank. CRM

strategy adopted by the banks for

improving the relation with the loyal

customer and created the new customers.

Customer relationship management has

helped to improve the life time customers

for the banks.

Anbouli, P. & Thiruvenkatraj , T.R. (2013)

examined the relationship of the customers

and the banks. The authors has analyzed

the perception of the customer on the basis

of the CRM as a tool of the banking sector

for the retaining the customers.

Popli, G.S. & Rao, D.N. (2009) aim to

investigated that why the CRM need has

arise in the banking sector. Such as various