View of CUSTOMER’S PERCEPTION TOWARDS SBI SERVICE QUALITY REGARDING AGRICULTURE FINANCE: A CASE STUDY ON STATE BANK OF INDIA, UJJAIN DISTRICT, MADHYA PRADESH

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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal (International Journal) ISSN-2456-1037

Vol. 05,Special Issue 03, (IC-WESD-2020) March 2020, Available Online: www.ajeee.co.in/index.php/AJEEE

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CUSTOMER’S PERCEPTION TOWARDS SBI SERVICE QUALITY REGARDING AGRICULTURE FINANCE: A CASE STUDY ON STATE BANK OF INDIA, UJJAIN

DISTRICT, MADHYA PRADESH

1Dr. R.L Dave, ²Abhishikha Parmar

Abstract:- Customer is a very important part in today’s economic era. Their needs are very valuable for organizations so it’s very necessary to understand their needs. Today’s the employees of any organization, company, institutions etc they are very careful about customer services. Banks are also such organizations that entirely subsist on their relationship with their customers. Therefore it is extremely essential to know the customer perception toward the services they received.

In this study focus on the SBI agriculture finance services provides to customers (Farmers).

The main purpose of this study is to knowing the customers view regarding the services they received by banks.

Keywords:- service quality, agriculture finance, State bank of India, Farmers, customer satisfaction.

1. INTRODUCTION

Agricultural production in this country depends upon millions of small farmers. Their intensity, effort and efficiency have helped in raising yields per acre. Finance in agriculture act as a key to farmers. But farmers‟ money is always inadequate and he needs outside finance or credit. Because of inadequate financial resources and absence of timely credit facilities at reasonable rates, many of the farmers, are unable to go in for improved seeds and manures or to introduce better methods or techniques. State Bank of India is a leader in financing projects in the agriculture sector. State Bank of India Caters to the needs of agriculturists and landless agricultural labourers through a network of 8750 rural and semi-urban branches.

Apart from the branches, there are 428 Agricultural Development Branches (ADBs) which also cater to agriculturists. SBI is the leader in agri finance in the country with a portfolio of Rs. 64,000 crs in agri advances covering around 80 lac accounts. They offer a variety of products like Kisans Credit Card, gold loan for crop production and multi- purpose gold loan for agriculture activities. State bank of India branches have covered a whole gamut of agricultural activities like crop production, horticulture, plantation crops, farm mechanization, land development and reclamation, digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns, processing of agri- products, finance to agri-input dealers, allied activities like dairy, fisheries, poultry, sheep- goat, piggery and rearing of silk worms.

1.1 Objectives

1. To ascertain the customer level of satisfaction for agriculture finance services in Ujjain district SBI branches.

2. To ascertain the employees behavior with customers.

3. To ascertain that customer timely receive the information regarding their service.

2. LITERATURE REVIEW

This section attempts to review the past studies related to agriculture credit and customer relations which necessitate the researchers in getting an insight into the main objectives of the study and finalizing the methodology- Sureshchandar et al(2002).- The study examined relationship between service quality and customer satisfaction in Indian banking sector.

These were found to be independent but closely related. Both constructs vary significantly in core services, human element, systematization of service delivery, tangibles and social responsibility.

Olagunju (2007) [2] agriculture credit is the route of obtaining the command over the use of the money, goods and services in the present in exchange for a promise to repay at a future date . It increases the productivity and promotes the living standard of the small scale farmers. The credit facilities enables the poor farmers to employ the higher resources and capacity utilizations.

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Monica Bedi (2010)-The study investigates relationship between service quality, customer satisfaction and behavioral intentions. The findings also indicated the importance of service quality. The study also found out that banks differed in the service quality parameters.

3. RESEARCH METHODOLOGY

The main method of this paper is primary data collection method. The research for this study is based on data collection to understand customer’s point of view about the SBI employees behavior .This data is assisted in framing important suggestions for the banks.

Sample size for research work is 146 customers (Farmers). This data is collected by schedule interview. In research work data analysis has been conduct with the help of SERVQUAL model.

SERVQUAL model consist of five dimensions:- 1. Reliability

2. responsiveness, 3. Assurance 4. Empathy 5. Tangibles.

4. DATA ANALYSIS AND RESULT

The main source of data collection is primary data. The data is collected through the sources of Schedule interview and discussion with customers (farmers). The data is collected around five dimension of SERVQUAL Model which was developed and implemented by the American marketing Valarie Zeithaml, A. Parasuraman and Leonard Berry in1988. It is a method to capture and measure the service quality experienced by customers. Data has been diagrammatically represented below.

Q1 - Do you agree that the information given by employees are reliable?

Q2- Do you feel that employees behavior is cooperative during the process of agriculture finance?

55 60

50

30 0 10

10 20 30 40 50 60 70

strongly Agree

Agree Neutral disagree strongly Disagree

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Q3- Are you satisfied with the service quality provided by SBI bank?

40 50

25 30

20 0

10 20 30 40 50 60

Strongly Agree

Agree Neutral Disagree Strongly Disagree

Q4- Do you ever received individual attention by bank employees in your problem regarding services or product?

34 30

40

25 0

10 20 30 40 50

Q5– Did you received timely information regarding new services or schemes related to your product?

50 45 40 59

0 20 20 40 60 80

Strongly Agree

5. FINDINGS

1. The Data collected with regards reliable information given by SBI employees represent that 55% customers agree that they receive reliable information by employees of the bank whereas 35% employees gives negative reaction. This shows that the percentage of agree customers are more. Then also employees of SBI be care about information they give by keep in mind that 35% gave negative reaction.

2. It has been identified with the help of scheduled interview that 60% of the customers agree that employee’s behavior are cooperative during the process of agri-loan whereas 30% customers are disagree. So the finding is

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in agri-loan SBI gives proper response to their customers and for negative response they must work more hard.

3. Similarly in service quality view 50% of customers agree that they satisfied with service quality of banks and 30% give negative reaction.

4. In this finding of individual attention by bank employees represent that 34% of customers are agree and 40% of customers are disagree to give individual attention by bank employees. In this negative reaction is more than the positive reaction. So bank need to improve this service.

5. In other finding of received timely information regarding services 45% of customer agree to received timely but 59% of customer refuses to received timely information. In this also SBI need to improve their service because percentage of negative reaction is high.

6. SUGGESTIONS

It was found out while collecting data that there is some more need to improving quality of SBI services.

1. The research has been come up with the valuable suggestion that employees should change their attitude towards helping customers.

Employees of the bank need to give individual attention to the customer’s problem so that the customer easily resolves their problem.

2. The study conducted during the research work suggests that the employees of the SBI banks improve the service of timely information given to the customers related to their products and services.

7. CONCLUSION

After the analysis done by this research work it is understood that, agriculture is the backbone of our country and SBI bank plays a very important role in givi ng the agriculture loan to our farmers. So it is very important for SBI bank to take care of their reputation by providing good services and facilities to their customers. During the data analysis it has been identified that customers are highly satisfied with SBI in Ujjain (M.P.). However, they still looking for a better services and some more personalize treatment and employees help in making situation easier for customers. Once SBI bank improves their this lacking factor, it would be have a profitable an d long term business in the market.

REFERENCES

1. Pawar, P. (2016, September 1). Importance of Learning& Development in Banking . Retrieved April 19, 2017, from bq. Training: https://bq.training/blog/importance - oflearning development -in-banking/.

2. Renuga, D. V., & Durga, D. Customer Relationship Management in Banking Sector.

International Journal of Engineering Science and Computing. 2016;6 (8).

3. Chary T. Satya Narayana & Ramesh, R. (2012). Customer Relationship Management in Banking Sector- A Comparative Study, KKIMRC IJRHRM, 1 (2), 20-29. 7.

4. P. Anbuoli, “a study on customer relationship management in banks” International Research Journal of Business and Management – IRJBM ISSN 2322-083X.

5. Subba Reddy, S. and P. Raghuram., Agricultural Finance and Management, Oxford & IBH Publishing Company Private Ltd., New Delhi, 2005.