Page 1 of 26
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 4
April 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 1
Effect of Employees’ Behaviour on Customer Satisfaction in
Axis Bank: A Study of Branches of Haryana Region
Dr. Shagun Ahuja, Pawan Kumar
Assistant Professor in Commerce, R.G. Government College, Saha
shagun_ahuja82@yahoo.co.in
ABSTRACT
AXIS Bank prides itself as a young and
vibrant organisation and recognizes its
employees as its greatest assets.
Consequently, the employee satisfaction
level in the Bank is, possibly, amongst the
highest in the industry, and does not stem
from the compensation package alone.
Comprising of people drawn from different
specialization and divergent backgrounds,
the employees merge into a highly
homogeneous working group, catalyzed by
the informal and transparent HRD policies
pursued by the Bank. In addition to an
attractive compensation structure, bank also
offers leased housing facilities, Medical, and
health insurance and loan options.
Employees in the Bank play a great role in
making their clients satisfied and to convert
them into the loyal customers.
The banking industry is one of the basic
instruments of economic growth. It is
considered the backbone of economic
development, and change in its processes is
deemed to have repercussions on the
country's growth. Shekhar (2009) evaluated
in his research that the essential part of the
banking system is its financial viability.
Banking: - Banking is defined as "accepting,
for the purpose of lending or investment of
deposits of money from the public,
repayable on demand or otherwise and
withdraw able by cheque, draft, and order or
otherwise".i Machiraju (2000) analyzed that
Bank is being used since long time but there
is no clear conception regarding its
beginning. According to one view point,
origin of the World Bank belongs to the
world ‘banque’ to the Greek world ‘banque’.
According to other viewpoint, Bank
originated from the German world (itail)
banque meaning joint fund. Casade San
Criorgio was the first bank to be established
in 1148.ii The first Public Bank was Bank of
Venice. It was established in 1157. In the
Page 2 of 26
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 4
April 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 2
Indian context, banking is really the proxy
and indeed the corner and sum total of
overall economic growth of the country.
History of AXIS Bank Ltd.
AXIS Bank Ltd. was the first of the
new private banks to have begun operations
in 1994, after the Government of India
allowed new private banks to be established.
The Bank was promoted jointly by the
Administrator of the specified undertaking
of the Unit Trust of India (UTI - I), Life
Insurance Corporation of India (LIC) and
General Insurance Corporation of India
(GIC) and other four PSU insurance
companies, i.e. National Insurance Company
Ltd., The New India Assurance Company
Ltd., The Oriental Insurance Company Ltd.
and United India Insurance Company Ltd.
The Bank today is capitalized to the extent
of Rs. 358.56 crores with the public holding
(other than promoters) at 57.60%. The
Bank's Registered Office is at Ahmedabad
and its Central Office is located at Mumbai.
Presently, the Bank has a very wide network
of more than 701 Branch offices and
Extension Counters. The Bank has a
network of over 2854 ATMs providing 24
hrs a day banking convenience to its
customers. This is one of the largest ATM
networks in the country. Sherden (1999)
focused in his research that the Bank has
strengths in both retail and corporate
banking and is committed to adopting the
best industry practices internationally in
order to achieve excellence. AXIS Bank Ltd.
Ltd. has been promoted by the largest and
the best Financial Institution of the country,
UTI. The Bank was set up with a capital of
Rs. 115 crore, with UTI contributing Rs. 100
crore, LIC - Rs. 7.5 crore and GIC and its
four subsidiaries contributing Rs. 1.5 crore
each.iii
Customer Satisfaction:
Today’s companies are facing their
toughest competition ever. Companies can
outperform the competition if they can move
from a product and sales philosophy to a
marketing philosophy. John Chambers, CEO
of Cisco systems, put it well: “Make your
customer the center of your culture.” Too
many companies think that it is the
marketing or sales department’s job to
acquire and manage customers, but, in fact,
marketing is only one factor in attracting
and keeping customers.iv The best marketing
department in the world cannot sell products
that are poorly made or fail to meet a need.
The marketing department can be effective
only in companies whose employees have
implemented a competitively superior
Page 3 of 26
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 4
April 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 3
customer value-delivery system. Bank
believes that customers estimate which offer
will deliver the most value. Customers are
value-maximizers, within the bounds of
search costs and limited knowledge,
mobility, and income. They form an
expectation of value and act on it. Whether
or not the offer lives up to the value
expectation affects both satisfaction and
repurchase probability.v
Review of Literature
R.R. Krishna (2006)vi has defined
the profitability analysis in detail. According
to him, it is a rate expression profit as a
percentage of total aspects or sales or any
other variable to represent assets or sales.
What should be used in the numerator and
the denominator to compute the profit rate
depends upon the objective for which it is
being measured.
Garg (2007)vii in his study on
productivity and profitability of banks,
measured productivity in terms of average
business handled per employee. Average
business was the sum of average deposits
and average advances which was the output
generated by the input of manpower.
Profitability was measured as excess of
income over expenditure. There were two
kinds of income-one from funds based
business in the form of interest, and the
other from non-funds business in the form of
exchange on remittances, commission on
guarantee, letter of credit, and fees for
services like consultancy. This income was
adjusted against interest paid on deposits
and borrowings, transaction costs and
establishment expenses, to calculate the net
income at the corporate level. The profits of
individual branches were national based on
Transfer Prices Mechanism. Large branches
were, however, analyzed on the basis of two
additional parameters – gross rate of return
and expenses ratio. The study concluded that
productivity and profitability could be
improved by increasing the deposits and
advances at a pace quicker than the pace of
increase in the number of employees and
also by increasing or decreasing
expenditure.
M. R. Sholvapur (2008)viii in his
article, “Profitability analysis of bank
branches (spread burden approach) observes
that profits alone justify the survival and
growth of banks. The major activities are
carried out at branch level. So it is important
that it must be given proper attention. He
says that various loss incurring branches
must be ex-rayed.
