A REPORT

ON

(CUSTOMER PERCEPTION
ON CREDIT CARDS)

BY
Rajkanya Ray
16BSPDD01C130

ICFAI UNIVERSITY
,DEHRADUN
 REPORT
ON
(CUSTOMER PERCEPTION
ON CREDIT CARDS)
BY
Rajkanya Ray
16BSPDD01C130
ICFAI UNIVERSITY DEHRADUN
A report submitted in partial
fulfilment
of the requirements
of MBA program of
IBS DEHRADUN
Date of submission:
s.no Particulars Page
no.
1. Introduction to 11-21
credit cards
2. Company Profile 23-30
3. Weekly Report 32-34
4. Objectives and 36-37
scope
5. Research 39-43
Methodology
6. Questionnaire 45-49

7. Analysis and 51-58

Interpretations
8. Findings and 60-63
Conclusions
9. Suggestions and 65
Recommendations
10. Bibliography 67
AUTHORISATION

This project entitled “customer

perception on credit cards” has been
prepared by the author under the
internship program of SBI CREDIT
CARDS and under the guidance of MR.
KAPIL SHARMA, REGIONAL MANAGER
and MR. VISHAL ARORA.

The report is submitted as partial

fulfilment of the requirement of MBA
program of IBS DEHRADUN.
 ACKNOWLEDGEMENTS

I do take this opportunity to express

my profound gratitude to MR. KAPIL
SHARMA regional manager of SBI
CREDIT CARDS, for allowing me to do
the project and giving the opportunity
to carry out the project successfully.
I would also like to express my sincere
regards to Prof. Puneet Garg , IP
coordinator and Prof. Sonia Gambhir ,
faculty in-charged ,ICFAI BUSINESS
SCHOOL, Dehradun for their moral
support and encouragement in the
completion of this project.
I also express my sincere love and
thanks to my parents, brother and
friends. Without their encouragement,
love, support and help, it would have
been impossible to successfully finish
this project.
 Executive summary
We found that in most of the market,
competition is working fairly well for
consumers. Consumers value the
flexibility offered by credit cards and
use them in different ways, for
example making secure payments and
collecting rewards, spreading the cost
of purchases or as an emergency credit
facility, for paying off other debt, or for
building credit history. We want to
ensure industry is clear about fees and
charges, so consumers can focus on the
overall cost of using credit cards.
 The market is moderately
concentrated but there has been new
entry in recent years. However, higher
credit risk consumers have a more
limited choice of products and
providers than lower risk consumers.
The main barriers to serving this
segment , other than commercial
viability, appear to be the reputational
and regulatory risks associated with
higher risk and higher cost lending.
This project as a whole is divided in
two parts:
The first part gives an insight about
credit cards and its various aspects, the
company profile, objectives of the
study, research methodology. One can
have a brief knowledge about credit
cards and its basics through the
project.
INTRODUCTION
INTRODUCTION
SBI Cards & Payments Services Pvt. Ltd.
Or SBICPSL, is a payment solution
provider in India. It is incorporated as a
joint venture between the STATE BANK
OF INDIA and GE CAPITAL. They have
branches in over 50 cities across India.
For the financial year ended March 31 ,
2016, SBI Card recorded a net profit of
₹ 271 crore and profit before tax of
about ₹ 438 crore.
SBI Card was launched in October 1998
by the STATE BANK OF INDIA and GE
CAPITAL. SBI Cards is headquartered in
GURGAON, HARYANA.

The aim of SBI Card is to offer Indian

consumers a wide range world-class,
value-added payment product and
services. Our endeavour is to simplify
the lives of our customers, employees
and other important stakeholders.
Within a short span of 10 months, we
achieved a credit card customer base
of 1 Lakh. Today, with over 4 million
credit card customers, we are the
second largest credit card issuer in the
country.
In a span of 16 years, we have achieved
numerous milestones. We have
significantly increased our card base,
added new types of cards and received
various awards and recognitions for
our performance, quality and service.
 Advantages of Credit Cards
1) CASH BACK: Many banks offer cash
back opportunities if you use your card
to pay monthly bills (electricity) or for
grocery purchases. Besides online
shopping portals too have cash back
offers on various products.

2)REWARD POINTS: Credit card

companies offer reward points for any
purchases you make with your card.
For example, SBI Cards gives 2 reward
points for every ₹ 100 spent using your
card. You can then use these points to
purchase gifts.
3)EMIs: If you are making a big ticket
purchase (tv, laptop), you can easily
convert it to affordable monthly
instalments. Banks usually charge
interest for conversion to EMI.

4)GRACE PERIOD: One of the main

advantages of using a credit card is
you can defer your payments till your
bill is due. Bank offer a maximum 50
days grace period for paying back
your due.
5)SAFETY: Credit cards are safer than
debit cards as in case of fraud you are
not out of money immediately.
Payment gateway like visa, master
card also offer additional password
protection while using the cards
online.
 DISADVANTAGES OF CREDIT
CARD

1)MINIMUM DUE TRAP: The biggest

con of a credit card is the minimum
due amount that is displayed at the top
of a bill statement. A number of credit
card holders are deceived into the
thinking that the minimum amount is
the total due amount they are obliged
to pay, when in fact it is the least
amount that the company expects you
to pay to continue receiving credit
facilities.
This results in customers assuming
their bill is low and spending even
more, accruing interest on their
outstanding, which could build up to a
large and unmanageable sum over
time.

2)HIDDEN COSTS: Credit cards appear

to be simple and straight forward at
the outset, but have a number of
hidden charges that could rack up the
expenses overall.
Credit cards have a number of taxes
and fees, such as late payment fees,
joining fees, renewal fees and
processing fees.

Missing a card payment could result in

a penalty and repeated late payments
could even result in the reduction of
your credit limit, which would have a
negative impact on your credit score
and future credit prospects.
3)EASE OF OVERUSE: With revolving
credit, since your bank balance stays
the same, it might be tempting to put
all your purchases on your card.
Making you unaware of how much you
owe. This could lead to your over
spending and owing more than you can
pay back.

4)HIGH INTEREST RATE: If you do not

clear dues by your billing due date, the
amount is carried forward and interest
is charges on it. This interest is
occurred over a period of time on
purchases that are made after the
interest free period.
 For example, SBI credit cards interest
rate is 2.25% per month.

5)CREDIT CARD FRAUDS: Though not

very common, there are chances you
might be victim of credit card fraud
. With advances in technology,
it is possible to run a card and
gain access to confidential
information through which
another individual can make
purchases on your card.
COMPANY
PROFILE
 COMPANY PROFILE
Sbi Cards and Payments Services Pvt.
Ltd. Focuses on the marketing and
distribution of credit cards. The
company offers, lifestyle, reward
,shopping, travel and banking
partnership cards for personal needs
and corporate utility purchase cards for
corporate needs.

It provides utility bill payments, card

payment and value added services. The
company was founded in 1998 and is
based in Gurgaon, India.
SBI Cards operates as a subsidiary of
State Bank Of India.

SBI CARDS cater to both individual and

corporate segments. SBI Cards offers a
number of cards under each of the
following categories:
 Premium Cards
 Classic Cards
 Travel & Shopping Cards
 Exclusive Cards
 Corporate Cards
 Kisan Card
 Loan Card
The SBI Card logo has the symbol of
State Bank Of India, which is a circle
and not key hole, and a small man at
the centre of the circle.

AWARDS
 Reader’s Digest “Most
trusted Brand Gold Award”
 Rated#2 in CNBC Consumer
Awards 2 years in a row
 Winner of Best Mature
Captive Delivery Unit in Asia
 Rated #2 in Business World
Survey on Customer
Satisfaction.
GROWTH

The third largest Credit Card issuer SBI

Cards said, it will be focussing on tier 2
and 3 centres for growth in the near
future and clients in these segments
will grow to occupy 20% of the total
over the next three years.
The growth in tier 2 and 3 centres will
outpace growth in tier 1 cities, even
though it occupies a very small share
right now, we are targeting it to
increase to 20% of total number of
cards in 3 years.
The company, which for the past two
fiscals has been posting profit, is also
focussing on growing the average
spend per card and hopes to clock a
growth above the industry average of
25-30%.
ELIGIBILITY

*To avail SBI Credit Card, a person can

be salaried or self-employed.
*To avail SBI Credit Card, an individual
must have a regular income.
*To avail SBI Credit Card, a person
must lie within the age bracket of 21 to
60 years.
FOR SALARIED
INDIVIDUALS

 Minimum salary limit is ₹25000.

 The individual must have

following documents: Aadhaar card,
pan card, DL, voter’s ID, a passport
size photo, salary slip for the latest
two months, current residential
address.
FOR SELF-EMPLOYED
INDIVIDUALS

 Must have a regular monthly

income.
 Should meet the minimum
income criteria defined by the
STATE BANK OF INDIA.
 Must contain the above
mentioned documents.
WEEKLY
REPORT
WEEK-1
On the first day of the training there
was an introductory session for
trainees with MR. Vishal Arora, at the
SBI credit card office situated at tagore
villa. He briefed us about the types of
credit cards and what work we have to
do and how. We were asked to make
notes of the details of credit cards we
were being said about.

Week-2
In the second week of training we
visited sbi branch at 4 convent road
, where Vishal sir accompanied us and
taught us how to deal with customers.
Week-3-7
During this week of training, the task
assigned to me was to visit different
institutions and convince the
customers to buy SBI Credit Cards.

Week-8
In the eighth week we were taught
how to fill unnati card forms, and what
are the additional papers required to
fill that. We were totally given office
work.
Week-9
In the ninth week of training I prepared
a questionnaire on customers
perception regarding SBI Credit Cards.

Week-10
In the tenth week of training, the task
assigned to me was to do a survey on
various customers and the
questionnaire was filled by 50
customers.
OBJECTIVES
AND SCOPE
OBJECTIVES

1. To study the awareness,

perception and satisfaction with SBI
CREDIT CARDS of the customers.
2. To study the extent of utilization
of credit cards by customers.
3. To examine the factors
influencing utilization of credit
cards.
SCOPE OF THE STUDY
A big boom has been witnessed in
credit card industry in recent times.
Everyday number of banks issuing
credit cards is increasing.
The research was carried on in
Dehradun. I had to do sales job of
selling credit cards in the market where
I completed my project work.
I surveyed on my project topic
‘customers perception on credit cards’.
The study will help to know the
perception of customers on credit
cards.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

This report Is based on primary as well

as secondary data, however primary
data collection was given more
importance since it is overhearing
factors in attitude studies. One of the
most important uses of research
methodology is that it helps in
identifying the problem, collecting,
analysing the required information
data and providing an alternative
solution to the problem.
It also helps in collecting the vital
information that is required by the top
management to assist them for the
better decision making both day to day
decision and critical ones.
DATA SOURCES:

Research is totally based on primary

data. Secondary data can be used only
for the reference. Research has been
done by primary data collection, and
primary data has been collected by
interacting with various people. The
secondary data has been collected
through various journals and websites.
SAMPLING:

 Sampling Procedure
The sample was selected of them who
are the customers of State Bank Of
India. It was also collected through
personal visits to persons, by formal
and informal talks and through filling
up the questionnaire prepared.

 Sample Size
The sample size of my project is
limited to 50 people only.
LIMITATIONS

 Some of the persons were not

so responsive.
 Possibility of error in data
collection because many of
customers may have not given
actual answers to my questions.
 Sample size is limited to 50
visitors of State Bank Of India.
 Some respondents were
reluctant to divulge personal
information which can affect the
validity of all responses.
QUESTIONNAI
RE
QUESTIONNAIRE

1) Are the types of cards offered by

SBI CREDIT CARDS enough for
you?
[ ] YES
[ ] NO
[ ] CONFUSED

2) Is the grace period of 50 days

provided by SBI CREDIT CARDS
sufficient ?
[ ] YES
[ ] NO
[ ] CONFUSED
 3) Is the interest rate of 2.25% per
month to be charged by SBI after
50 days satisfactory for you?
[ ] YES
[ ] NO
[ ] CONFUSED

4) Are the benefits provided by SBI

CREDIT CARDS enough for you?
[ ] YES
[ ] NO
[ ] CONFUSED
 5) Is the verification process of SBI
CREDIT CARDS satisfactory for
you?
[ ] YES
[ ] NO
[ ] CONFUSED

6) Are you satisfied with the limits

provided in each type of credit
card ?
[ ] YES
[ ] NO
[ ] CONFUSED
 7) Are the outlets for using/swiping
the SBI CREDIT CARDS enough for
you?
[ ] YES
[ ] NO
[ ] CONFUSED

8) Are you satisfied with the fraud

cover limit provided by SBI CREDIT
CARDS?
[ ] YES
[ ] NO
[ ] CONFUSED
 9) Are you satisfied with the delivery
of credit cards to your address or
it should be more quick?
[ ] YES
[ ] NO
[ ] CONFUSED

10) Are you satisfied with the after card

issue services of SBI CREDIT CARDS?
[ ] YES
[ ] NO
[ ] CONFUSED
 ANALYSIS AND
INTERPRETATIONS
 HYPOTHESIS TESTING

To test the perception of customers

whether it is ‘satisfactory’ or ‘not
satisfactory’ towards SBI CREDIT
CARDS.

Responses X F F*X (X-Ẍ) (X-Ẍ)²

YES 1 30 30 -0.5 0.25
NO 2 15 30 0.5 0.25
CONFUSED 3 5 15 1.5 2.25
TOTAL 50 75 2.75
Sample Size: 50

Sample Mean(Ẍ) : F*X/n

= 75/50
= 1.5

√(𝑋−Ẍ)²
Standard Deviation(δₓ) =
𝑛

2.75
=√
50
= 0.23
STEP 1: Set Hₒ(NULL HYPOTHESIS)
& H₁(ALTERNATIVE HYPOTHESIS)

Null Hypothesis
(Hₒ): µ=µₒ (That means it is not
satisfactory)

Alternative Hypothesis
(H₁): µ≠µₒ (That means it is satisfactory)
STEP 2 : Set level of significance.

Level of significance is denoted by (𝛼)

and it is set as 5% for testing the
hypothesis.
i.e 𝛼 = 5%(0.05)

degree of freedom= (n-1) = (50-1) = 49

STEP 3 : Determine the
appropriate statistical test.

If sample size is equal to or greater

than 30, we use Z-test.
As the sample size is 50 & standard
deviation is known, so Z-test is an
appropriate test for testing null
hypothesis.

(Ẍ−µₒ)
𝑍𝑐𝑎𝑙 =
𝛿ₓ
STEP 4: Set the decision rules.

 We are using two tailed test foe

testing the hypothesis.
 In two tailed test rejection risk is
both sides of the tail of the normal
distribution.
 The Z distribution tabular value for a
two tailed test is 𝑍0.05 = ±1.96 for
degree of freedom of 49.
 If 𝒁𝒕𝒂𝒃 ˃ 𝒁𝒄𝒂𝒍 , then Hₒ accept

 If 𝒁𝒕𝒂𝒃 ˂ 𝒁𝒄𝒂𝒍 , then Hₒ reject and

go for H₁
STEP 5 :
The 𝑍𝑡𝑎𝑏 of Z is 𝑍0.05 = ± 1.96

𝑍𝑐𝑎𝑙 value is

(Ẍ−µₒ)
𝑍𝑐𝑎𝑙 =
𝛿ₓ

(1.5−0)
𝑍𝑐𝑎𝑙 =
0.23

𝑍𝑐𝑎𝑙 = 6.52
STEP 6 :
𝑍5% (df : 49) : ± 1.96 ˂ 𝑍𝑐𝑎𝑙 : 6.52

Hence tabulated value is less than

calculated value.
So, we reject the null hypothesis(Hₒ).

THUS WE CAN CONCLUDE THAT THE

PERCEPTION OF CUSTOMERS
REGARDING SBI CREDIT CARD IS
SATISFACTORY.
FINDINGS AND
CONCLUSIONS
FINDINGS
 It is observed from the hypothetical
test done above that customers are
quite satisfied using SBI CREDIT
CARDS.
 Out of 50 customers surveyed,
approximately 30 customers gave
their answer in [ ] YES
 This shows that they are quite
satisfied by all the facilities provided
by SBI CREDIT CARDS to their
customers.
CONCLUSION
Running a successful credit card
company requires complete
understanding of the needs and
requirements of each customer
regarding the use of a credit card and
peculiarities of the market and
competitors.
This study has made an attempt to
understand the perception of
customers regarding SBI CREDIT
CARDS.
Although the response was
satisfactory, but during the survey I
observed that many people still have
negative perception regarding credit
cards.

Many of the customers think that

credit card is just another face of a loan
which at the end increases both
expenses and liability to repay the
amount.
On the other hand maximum
customers feel it to be a very good use
of plastic money.
 As keeping the money in the savings
account and doing the expenditures
from credit card will help them earn
some more interest amounts on their
savings.

Thus concluding now, from the survey

and hypothetical tests it is clear that
“ customers have a positive or
satisfactory perception regarding State
Bank Of India Credit cards.”
SUGGESTIONS AND
RECCOMENDATIONS
SUGGESTIONS

 The most common suggestion

is that the benefits provided in
gold card or SIMPLY SAVE CARD
should be increased.
 Delivery of credit cards to be
done a little faster.
 The annual charges that are
taken for each type of card
should be reduced a little.
BIBLIOGRAPHY
 BIBLIOGRAPHY

 Newspapers
 Credit card hand book
 Personal interviews
 www.sbicards.com
 www.onlineresearchonline.com
 www.scribd.com
 www.academia.edu
THANK YOU