Customer Retention Practices of Banks: Evidence from Sivagangai District of Tamil Nadu

--K Ganesamurthy and M Jothi

Customer Retention Management (CRM) is perceived as a technique of banking companies to explore, retain and also increase the loyal customers in the competitive business era. This paper attempts to study the customers’ perspectives on CRM practices of commercial banks in India. A sample of 421 respondents from both public and private sector banks of Sivagangai district in Tamil Nadu was selected for the study. The study reveals that customers’ perception of CRM in banks does not vary with customers’ age, sex, education, occupation, income level, the bank in which customers have an account, type of account maintained, and the period of customers’ association with banks. The validity of the results have been tested statistically by applying techniques such as ANOVA, t-test and discriminant function analysis.

© 2013 IUP. All Rights Reserved.

Effectiveness of Internal Control in the Banking Sector: Evidence from Bank Mellat, Iran

--Mahdi Salehi, Mahmoud Mousavi Shiri and Fatemeh Ehsanpour

Internal control plays a very effective role in organizations. The present study aims to investigate the effectiveness of internal control in the Iranian banking sector during 2011 with special reference to Bank Mellat. A questionnaire was designed and developed for data collection. The results of the study revealed that the internal control system in the banking sector is highly efficient in preventing the incidence of frauds and errors.

© 2013 IUP. All Rights Reserved.

Factors Affecting the Use of Commercial Bank Credit Facility Among Fish Farmers in Ogun and Ondo States, Nigeria

-- Olatomide Waheed Olowa and Omowumi Ayodele Olowa

The importance of a study on peasant credit programs can never be overemphasized because of the importance of credit in agricultural production. Emphasis on commercial bank credit is needed, over other available sources in Nigeria, for fishing sub-sector of agriculture to achieve the expected fish production expansion. The present paper examines the use of commercial bank credit in Nigeria and finds that non-fishing income (b = –0.38), farming experience (b = –0.26), lending rate of other sources of credit (b = 0.49), membership of cooperative society or farmers’ group (b = –0.23) and age of the fish farmers (b = 0.11) are the key determinants. Therefore, the policies, programs and promotional efforts which consider these attributes are likely to be most successful in enhancing the rate of use of commercial bank credit in Nigeria.

© 2013 IUP. All Rights Reserved.

A Study of Gaps in Service Quality at a Leading Private Sector Commercial Bank in Greater Noida

--Amitabh Mishra, B R Kumar and Dharam Bir Singh

Banking is the epicenter of economic development. The banking system in India is undergoing a structural transformation, thanks to globalization, deregulation, technological advancement, and institutional and legal reforms. While the liberalized environment has opened new avenues of business for banks, it has led to a competitive environment. Today, banks have diversified their activities and are entering into new product areas and services that include credit cards, consumer finance, wealth management, life and general insurance, investment banking, mutual funds, pension fund regulation, stockbroking services, custodian services, private equity, etc. The present paper analyzes the service quality of a bank with regard to savings account services provided by the bank using SERVQUAL. Such a study is useful in determining the weak areas of a bank’s service where immediate steps are necessary. If such deficiencies are ignored, it may lead to loss of reputation and credibility, and ultimately switching over of customers.

© 2013 IUP. All Rights Reserved.

Research Note-Acceptance of Internet Banking Among Retail Customers:
Survey Evidence from Ahmedabad Region

--Ashwin G Modi, Kiran J Patel and Kundan M Patel

Pikkarainen et al. (2004) define Internet banking as an “Internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments.”

Internet banking has experienced an explosive growth in many countries and has transformed the traditional banking practice. By offering Internet banking services, traditional financial institutions seek to lower operating costs, improve customer banking services, retain customers, reduce their branch networks, and downsize the number of their service staff (Parisa, 2006). With the exception of cash withdrawals, Internet banking gives customers access to almost any type of banking transaction at the click of a mouse.

© 2013 IUP. All Rights Reserved.

Research Note-Factor Analysis of Customers’ Preference Attributes in Using E-Banking

--Nirmaljeet Virk

The Indian banking industry is changing rapidly, particularly as a result of a variety of services offered to customers, notably with the ease of accessing them at the click of a mouse.

Electronic banking (e-banking), also known as Internet banking, is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels (Daniel, 1999; and Sathye, 1999).

The purpose of this paper is to gain an understanding of the acceptance and preference attributes of Internet banking services among the Indian population where 70% of the population resides in rural areas and 30% in urban areas (Gerrard and Cunningham, 2003).

© 2013 IUP. All Rights Reserved.