Abstract:
Banking sector is one of the largest sectors dealing with individual customers directly
and in fact the success and profitability of banks is also based on the number of
customer base and their level of transactions. This study aims to investigate impact of
relationship marketing (employee competence, customer focus and marketing
communication) on deposit mobilization among the employees of commercial bank
categories in Batticaloa district. This study is a descriptive in nature, data was
obtained from employees of 119 commercial bank including managers, assistant
managers, banking assistant and the other front line employees who dealt with
customers (Peoples' bank, BOC, Sampath bank and Commercial Bank) in Batticaloa
district branches under the stratified random sampling using structured questionnaire.
The SPSS software has been used to tabulate and analyze the data. The descriptive
statistics, correlation, and regression analysis were used Jo analyze the data. Results
found that relationship marketing practices of commercial category bank employees
in Batticaloa district are having high level of attribute toward relationship marketing
and all relationship marketing practices were linearly correlated with customer
satisfaction. Regression analysis found that, deposit mobilization variance was
explained by 52.6% of the relationship marketing practices. In addition to the above,
the study offers suggestions and recommendation to the banks to increase the deposit
through adopting effective relationship marketing practices; since deposit money is
the key working capital fund for financial organization. Further banks were earning
profit through the interest income from the loans they lent. And also customers who
maintaining long term relationship are the profitable customers rather than attracting
new customers. The implication of this study recommends that the issue of job
security that has bedeviled banking sector as a result of indiscriminate retrenchment
must be looked into by the banks' helmsmen. This will lead to organization
commitment among the employees that seems to be lacking among the employees
Banks. This will enhance the bank performance. Therefore, they demanding with
respect to service recovery when failure points.
