J&K BANK Final Project Aadil

8/19/2019 J&K BANK Final Project Aadil

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1.1INDUSTRY PROFILE

Banking in India originated in the last decades of the 18th century. The first banks

were The General Bank of India, which started in 1786, and Bank of Hindustan,

which started in 177! both are now defunct. The oldest bank in e"istence in India is

the #tate Bank of India, which originated in the Bank of $alcutta in %une 186, which

al&ost i&&ediately beca&e the Bank of Bengal. This was one of the three 'residency

banks, the other two being the Bank of Bo&bay and the Bank of (adras, all three of

which were established under charters fro& the British )ast India $o&'any. *or

&any years the +residency banks acted as uasi-central banks, as did their successors.

The three banks &erged in 1/1 to for& the I&'erial Bank of India, which, u'on

India0s inde'endence, beca&e the #tate Bank of India in 1.

History by ankit 2ain (erchants in $alcutta established the 3nion Bank in 184, but it

failed in 185 as a conseuence of the econo&ic crisis of 1858-5. The llahabad

Bank , established in 186 and still functioning today, is the oldest %oint #tock bank in

India.Joint Stock Bank co&'any that issues stock and reuires shareholders to be

held liable for the co&'any0s debt9 It was not the first though. That honor belongs to

the Bank of 3''er India, which was established in 1864, and which sur:i:ed until

114, when it failed, with so&e of its assets and liabilities being transferred to the

lliance Bank of #i&la.

*oreign banks too started to a'', 'articularly in $alcutta, in the 186s. The $o&'toir

d0)sco&'te de +aris o'ened a branch in $alcutta in 186, and another in Bo&bay in

186/! branches in (adras and +ondicherry, then a *rench colony, followed. H#B$

established itself in Bengal in 186. $alcutta was the &ost acti:e trading 'ort in India,

&ainly due to the trade of the British )&'ire, and so beca&e a banking center.

The first entirely Indian 2oint stock bank was the ;udh $o&&ercial Bank, established

in 1881 in *ai<abad. It failed in 18. The ne"t was the +un2ab =ational Bank ,

established in >ahore in 18, which has sur:i:ed to the 'resent and is now one of the

largest banks in India.

round the turn of the /th $entury, the Indian econo&y was 'assing through arelati:e 'eriod of stability. round fi:e decades had ela'sed since the Indian (utiny,

1

http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1


http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Bank_of_Calcutta

http://en.wikipedia.org/wiki/Bank_of_Bengal

http://en.wikipedia.org/wiki/Bank_of_Bombay


http://en.wikipedia.org/wiki/Bank_of_Madras

http://en.wikipedia.org/wiki/Imperial_Bank_of_India



http://en.wikipedia.org/wiki/Calcutta

http://en.wikipedia.org/wiki/Allahabad_Bank


http://en.wikipedia.org/wiki/Alliance_Bank_of_Simla

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Comptoir_d'Escompte_de_Paris


http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Pondicherry

http://en.wikipedia.org/wiki/HSBC

http://en.wikipedia.org/wiki/Bengal

http://en.wikipedia.org/wiki/British_Raj


http://en.wikipedia.org/wiki/Faizabad

http://en.wikipedia.org/wiki/Punjab_National_Bank


http://en.wikipedia.org/wiki/Lahore

http://en.wikipedia.org/wiki/Indian_rebellion_of_1857



http://en.wikipedia.org/wiki/Bank_of_Calcutta

http://en.wikipedia.org/wiki/Bank_of_Bengal


http://en.wikipedia.org/wiki/Bank_of_Madras



http://en.wikipedia.org/wiki/Calcutta



http://en.wikipedia.org/wiki/Alliance_Bank_of_Simla

http://en.wikipedia.org/wiki/Kolkata



http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Pondicherry

http://en.wikipedia.org/wiki/HSBC

http://en.wikipedia.org/wiki/Bengal


http://en.wikipedia.org/wiki/Faizabad


http://en.wikipedia.org/wiki/Lahore





and the

social,

industrial

and other

infrastructure had i&'ro:ed. Indians had established s&all banks, &ost of which

ser:ed 'articular ethnic and religious co&&unities.

The 'residency banks do&inated banking in India but there were also so&e e"change

banks and a nu&ber of Indian 2oint stock banks. ll these banks o'erated in different

seg&ents of the econo&y. The e"change banks, &ostly owned by )uro'eans,

concentrated on financing foreign trade. Indian 2oint stock banks were generally under

ca'itali<ed and lacked the e"'erience and &aturity to co&'ete with the 'residency

and e"change banks. This seg&entation let >ord $ur<on to obser:e, ?In res'ect of

banking it see&s we are behind the ti&es. @e are like so&e old fashioned sailing shi',

di:ided by solid wooden bulkheads into se'arate and cu&berso&e co&'art&ents.?

The 'eriod between 16 and 111, saw the establish&ent of banks ins'ired by the

#wadeshi &o:e&ent. The #wadeshi &o:e&ent ins'ired local business&en and

'olitical figures to found banks of and for the Indian co&&unity. nu&ber of banks

established then ha:e sur:i:ed to the 'resent such as Bank of India, $or'oration

Bank , Indian Bank , Bank of Baroda, $anara Bank and $entral Bank of India.

The fer:our of #wadeshi &o:e&ent lead to establishing of &any 'ri:ate banks in

Aakshina annada and 3du'i district which were unified earlier and known by the

na&e South Canara #outh anara 9 district. *our nationalised banks started in this

district and also a leading 'ri:ate sector bank. Hence undi:ided Aakshina annada

district is known as ?$radle of Indian Banking?.

Auring the *irst @orld @ar 115C1189 through the end of the #econd @orld @ar

14C159, and two years thereafter until the inde'endence of India were

challenging for Indian banking. The years of the *irst @orld @ar were turbulent, and

it took its toll with banks si&'ly colla'sing des'ite the Indian econo&y gaining

indirect boost due to war-related econo&ic acti:ities. t least 5 banks in India failed

between 114 and 118 as indicated in the following table

/

Yar! Nu"#r o$ #ank!

that $ai%d

&uthori'd ca(ita%

)R!. Lakh!*

Paid+u( Ca(ita%

)R!. Lakh!*

114 1/ /75 4

115 5/ 71 1

11 11 6

116 14 /41 5

117 76 /

118 7 / 1

http://en.wikipedia.org/wiki/Joint_stock_company


http://en.wikipedia.org/wiki/Swadeshi

http://en.wikipedia.org/wiki/Bank_of_India

http://en.wikipedia.org/wiki/Corporation_Bank


http://en.wikipedia.org/wiki/Indian_Bank


http://en.wikipedia.org/wiki/Bank_of_Baroda


http://en.wikipedia.org/wiki/Canara_Bank


http://en.wikipedia.org/wiki/Central_Bank_of_India


http://en.wikipedia.org/wiki/Dakshina_Kannada


http://en.wikipedia.org/wiki/Udupi_district

http://en.wikipedia.org/wiki/First_World_War

http://en.wikipedia.org/wiki/Second_World_War

http://en.wikipedia.org/wiki/Indian_independence_movement

http://en.wikipedia.org/wiki/Economy_of_India


http://en.wikipedia.org/wiki/Swadeshi

http://en.wikipedia.org/wiki/Bank_of_India








http://en.wikipedia.org/wiki/Udupi_district

http://en.wikipedia.org/wiki/First_World_War

http://en.wikipedia.org/wiki/Second_World_War

http://en.wikipedia.org/wiki/Indian_independence_movement




The 'artition of India in 157 ad:ersely i&'acted the econo&ies of +un2ab and @est

Bengal, 'araly<ing banking acti:ities for &onths. India0s inde'endence &arked the

end of a regi&e of the >aisse<-faire for the Indian banking. The Go:ern&ent of

India initiated &easures to 'lay an acti:e role in the econo&ic life of the nation, and

the Industrial +olicy Desolution ado'ted by the go:ern&ent in 158 en:isaged

a &i"ed econo&y. This resulted into greater in:ol:e&ent of the state in different

seg&ents of the econo&y including banking and finance. The &a2or ste's to regulate

banking included

The Deser:e Bank of India, India0s central banking authority, was established

in 'ril 145, but was nationali<ed on %anuary 1, 15 under the ter&s of the

Deser:e Bank of India Transfer to +ublic ;wnershi'9 ct, 158 DBI, /b9.

In 15, the Banking Degulation ct was enacted which e&'owered the

Deser:e Bank of India DBI9 ?to regulate, control, and ins'ect the banks in India?.

The Banking Degulation ct also 'ro:ided that no new bank or branch of an

e"isting bank could be o'ened without a license fro& the DBI, and no two banks

could ha:e co&&on directors.

Aes'ite the 'ro:isions, control and regulations of Deser:e Bank of India,

banks in India e"ce't the #tate Bank of India or #BI, continued to be owned

and o'erated by 'ri:ate 'ersons. By the 16s, the Indian banking industry

had beco&e an i&'ortant tool to facilitate the de:elo'&ent of the Indian

econo&y. t the sa&e ti&e, it had e&erged as a large e&'loyer, and a debate

had ensued about the nationali<ation of the banking industry. Indira Gandhi,

then +ri&e, e"'ressed the intention of the Go:ern&ent of India in the annual

conference of the ll India $ongress (eeting in a 'a'er entitled E#tray

4

http://en.wikipedia.org/wiki/Partition_of_India

http://en.wikipedia.org/wiki/Punjab,_India


http://en.wikipedia.org/wiki/West_Bengal



http://en.wikipedia.org/w/index.php?title=Indian_independence_goverment&action=edit&redlink=1

http://en.wikipedia.org/wiki/Laissez-faire


http://en.wikipedia.org/wiki/Government_of_India


http://en.wikipedia.org/wiki/Mixed_economy


http://en.wikipedia.org/wiki/Reserve_Bank_of_India






http://en.wikipedia.org/wiki/Indian_economy


http://en.wikipedia.org/wiki/Indira_Gandhi



http://en.wikipedia.org/wiki/Partition_of_India




http://en.wikipedia.org/w/index.php?title=Indian_independence_goverment&action=edit&redlink=1














thoughts on Bank =ationali<ation.? The &eeting recei:ed the 'a'er with

enthusias&.

Thereafter, her &o:e was swift and sudden. The Go:ern&ent of India issued

an ordinance 0Banking $o&'anies cuisition and Transfer of

3ndertakings9 ;rdinance, 16099 and nationali<ed the 15 largest co&&ercial

banks with effect fro& the &idnight of %uly 1, 16. These banks contained

8 'ercent of bank de'osits in the country.%aya'rakash =arayan, a national

leader of India, described the ste' as a ?&asterstroke of 'olitical

sagacity.? @ithin two weeks of the issue of the ordinance,

the +arlia&ent 'assed the Banking $o&'anies cuisition and Transfer of

3ndertaking9 Bill, and it recei:ed the 'residential a''ro:al on ugust 16.

second dose of nationali<ation of 6 &ore co&&ercial banks followed in 18. The

stated reason for the nationali<ation was to gi:e the go:ern&ent &ore control of credit

deli:ery. @ith the second dose of nationali<ation, the Go:ern&ent of India controlled

around 1F of the banking business of India. >ater on, in the year 14, the

go:ern&ent &erged =ew Bank of India with +un2ab =ational Bank . It was the only

&erger between nationali<ed banks and resulted in the reduction of the nu&ber of

nationali<ed banks fro& / to 1. fter this, until the 1s, the nationali<ed banks

grew at a 'ace of around 5F, closer to the a:erage growth rate of the Indian econo&y.

In the early 1s, the then =arasi&ha Dao go:ern&ent e&barked on a 'olicy

of liberali<ation, licensing a s&all nu&ber of 'ri:ate banks. These ca&e to be known

as =ew Generation tech-sa::y banks, and included Global Trust Bank the first of

such new generation banks to be set u'9, which later a&alga&ated with ;riental Bank

of $o&&erce, 3TI Bank since rena&ed "is Bank 9,I$I$I Bank and HA*$ Bank .

This &o:e, along with the ra'id growth in the econo&y of India, re:itali<ed the

banking sector in India, which has seen ra'id growth with strong contribution fro& all

the three sectors of banks, na&ely, go:ern&ent banks, 'ri:ate banks and foreign

banks.

The ne"t stage for the Indian banking has been set u' with the 'ro'osed rela"ation in

the nor&s for *oreign Airect In:est&ent, where all *oreign In:estors in banks &ay be

gi:en :oting rights which could e"ceed the 'resent ca' of 1F,at 'resent it has gone

u' to 75F with so&e restrictions.

5

http://en.wikipedia.org/wiki/Nationalisation


http://en.wikipedia.org/wiki/Jayaprakash_Narayan


http://en.wikipedia.org/wiki/Parliament_of_India

http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1



http://en.wikipedia.org/wiki/Narasimha_Rao


http://en.wikipedia.org/wiki/Liberalization


http://en.wikipedia.org/wiki/UTI_Bank

http://en.wikipedia.org/wiki/Axis_Bank


http://en.wikipedia.org/wiki/ICICI_Bank

http://en.wikipedia.org/wiki/HDFC_Bank







http://en.wikipedia.org/wiki/Parliament_of_India





http://en.wikipedia.org/wiki/UTI_Bank


http://en.wikipedia.org/wiki/ICICI_Bank





The new 'olicy shook the Banking sector in India co&'letely. Bankers, till this ti&e,

were used to the 5-6-5 &ethod Borrow at 5F! >end at 6F!Go ho&e at 59 of

functioning. The new wa:e ushered in a &odern outlook and tech-sa::y &ethods of

working for traditional banks. ll this led to the retail boo& in India. +eo'le not 2ust

de&anded &ore fro& their banks but also recei:ed &ore.

$urrently /19, banking in India is generally fairly &ature in ter&s of su''ly,

'roduct range and reach-e:en though reach in rural India still re&ains a challenge for

the 'ri:ate sector and foreign banks. In ter&s of uality of assets and ca'ital

adeuacy, Indian banks are considered to ha:e clean, strong and trans'arent balance

sheets relati:e to other banks in co&'arable econo&ies in its region. The Deser:e

Bank of India is an autono&ous body, with &ini&al 'ressure fro& the go:ern&ent.

The stated 'olicy of the Bank on the Indian Du'ee is to &anage :olatility but without

any fi"ed e"change rate-and this has &ostly been true.

@ith the growth in the Indian econo&y e"'ected to be strong for uite so&e ti&e-

es'ecially in its ser:ices sector-the de&and for banking ser:ices, es'ecially retail

banking, &ortgages and in:est&ent ser:ices are e"'ected to be strong. ;ne &ay also

e"'ect (s, takeo:ers, and asset sales.

In (arch /6, the Deser:e Bank of India allowed @arburg +incus to increase its

stake in otak (ahindra Bank a 'ri:ate sector bank9 to 1F. This is the first ti&e an

in:estor has been allowed to hold &ore than F in a 'ri:ate sector bank since the DBI

announced nor&s in / that any stake e"ceeding F in the 'ri:ate sector banks

would need to be :etted by the&.

In recent years critics ha:e charged that the non-go:ern&ent owned banks are too

aggressi:e in their loan reco:ery efforts in connection with housing, :ehicle and

'ersonal loans. There are 'ress re'orts that the banks0 loan reco:ery efforts ha:e

dri:en defaulting borrowers to suicide The DBI in 185 for&ed $o&&ittee on

(echanisation in the Banking Industry 1859 whose chair&an was Ar $

Dangara2an, Ae'uty Go:ernor, Deser:e Bank of India. The &a2or reco&&endations of

this co&&ittee was introducing (I$D Technology in all the banks in the &etro'olis

in India.This 'ro:ided use of standardi<ed cheue for&s and encoders.

In 188, the DBI set u' $o&&ittee on $o&'uterisation in Banks 1889 headed by

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Retail_banking


http://en.wikipedia.org/wiki/Warburg_Pincus


http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank

http://en.wikipedia.org/wiki/India




http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank



Ar. $.D. Dangara2an which e&'hasi<ed that settle&ent o'eration &ust be

co&'uteri<ed in the clearing houses of DBI in Bhubaneshwar, Guwahati, %ai'ur, +atna

and Thiru:anantha'ura&.It further stated that there should be =ational $learing of

inter-city cheues at olkata,(u&bai,Aelhi,$hennai and (I$D should be &ade

;'erational.It also focused on co&'uterisation of branches and increasing

connecti:ity a&ong branches through co&'uters.It also suggested &odalities for

i&'le&enting on-line banking.The co&&ittee sub&itted its re'orts in 18 and

co&'uterisation began for& 14 with the settle&ent between IB and bank

e&'loyees association.

In 15, $o&&ittee on Technology Issues relating to +ay&ents #yste&, $heue

$learing and #ecurities #ettle&ent in the Banking Industry 159 was set u' with

chair&an #hri @# #araf, )"ecuti:e Airector, Deser:e Bank of India. It e&'hasi<ed on

)lectronic *unds Transfer )*T9 syste&, with the B==)T co&&unications

network as its carrier.It also said that (I$D clearing should be set u' in all branches

of all banks with &ore than 1 branches.

$o&&ittee for 'ro'osing >egislation ;n )lectronic *unds Transfer and other

)lectronic +ay&ents 19 e&'hasi<ed on )*T syste&. )lectronic banking refers to

A;I=G B=I=G by using technologies like co&'uters, internet and networking,

(I$D,)*T so as to increase efficiency, uick ser:ice, 'roducti:ity and trans'arency

in the transaction.

6



1., CO-P&NY PFROFILE

Pro$i% o$ J/ Bank

+relude

The % Bank was incor'orated on ;ctober 1st 148 co&&enced business on

%uly 5th 14. *ro& a s&all beginning the Bank has grown to beco&e a giant with a

wide network of branches s'read o:er the length and breadth of India. significant

contributing factor for this fast growth is the solid founding 'rinci'les, which are

dedicated to the cause of transfor&ing the bank not only as a financial heart but also

as a social heart of the co&&unity.

The % Bank is the first state owned Bank of the country and 4F of the

euity is held by the Go:t. of %. The Bank has a consistent tract record of growth

and 'rofitability. It has a uniue distinction of being banker to the % #tate Go:t.

and has also been a''ointed by DBI as its agency in %, res'onsible for carrying

general banking business of the central Go:t. and collection of ta"es 'ertaining to the

$entral Board of Airect Ta"es.

The land&ark achie:e&ents in the di:ersification of the Banks functions

include the s'onsoring of the two Degional Dural Banks :i<, a&ra< Dural Bank and

%a&&u Dural Bank! 'er&ission for dealing in foreign e"change, holding the lead bank

res'onsibilities in 1/ out of // districts of % #tate

Technology has 'layed a 'i:otal role in the growth of the bank,1 branches were

co&'uteri<ed during the year taking the total count of co&'uteri<ed business units as

on 41 &arch /1/ to 645 out of a total business unit count of 65 which includes 64

business units and 47 e"tension counters

new #;> were o'ened on core banking 'latfor& during /11 /1/ ,177 T(s

were 'rocured out of which 157 were co&&ended during financial year /11 /1/

taking the aggregate no. of count of T(s to 8.)-banking facility has been &ade

a:ailable at all $B# branches of the bank and the no. of e-banking costu&er accounts

stood at 1658 as on 4141/ .The 'ro2ect $T# co:ering do&estic, fore" and

7



deri:ati:e &odules stands i&'le&ented. The JaD engine also stands i&'le&ented! all

the $B# branches of bank are enabled for DTG# and =)*T facility

$or'orate &odule of $T# cheue truncation9 was de'loyed and &ade functional at

$hennai9

The $$ TJs were installed at /4 &ore branches taking the total count to /1 in

addition $$ TJs were installed at 4 T( locations.

#yste& le:el asset classification for bringing trans'arency and efficiency in asset

classification was i&'le&ented and in the first 'hase asset classification of accounts

with sectioned li&it of Ds lakhs and abo:e was i&'le&ented through the syste&.

% Banks :ision and endea:or for being a de:elo'&ental institution, central to the

#ocio-)cono&ic de:elo'&ent of % #tate has rea'ed rich di:idends for the bank.

The 'olicy enabled the &obili<ation of low-cost de'osits and their de'loy&ent in

highly 'roducti:e, but credit-star:ed sector of the % econo&y. These sectors, a'art

fro& being high-yielding, accelerate the desired di:ersification of the banks credit

'ortfolio and also hel' fulfill the bank 'riority sector obligations.

The bank has set own a&bitious target for go:erning Ds1,, crore business by

(arch /14 with a net 'rofit figure of Ds1 crore.

The achie:e&ent of this &ile stone is 'lanned to coincidence with the 'latinu&

2ubilee celebration in /14.

To achie:e the cherishable target, the bank shall 'ursue a 'an-India aggressi:e growth

strategy, in co&&ission with its strategic business 'lan.

+resently the bank is the fastest growing bank in India with a network of &ore

than 65 branches s'read across the country offering world class banking

'roductsser:ices to the &asses. % Bank is going for& strength to strength Bank

has touched business turno:er of Ds.865/5 crores.

In short, Bank sees tre&endous re:enue growth o''ortunities in all businesses.

Bank will continue to increase its re:enue, and enhance shareholder :alue through

whiche:er &eans is &ost a''ro'riate, including organic de:elo'&ent, acuisitions,

2oint :entures and 'artnershi's. Bank will continue to i&'ro:e o'erational efficiency,

building on success to date, but wont hesitate to rein:est these sa:ings in new

'ro'ositions, new initiati:es, and new businesses es'ecially if they allow bank to

e"'loit 'rofitable growth o''ortunities. % Bank has a 'owerful set of brands that

'eo'le trust. Bank has 'ro:en 'roducts and ser:ices, an integrated distribution

8



network that deli:ers, and financial strength. This is a tre&endous base on which to

grow business 'rofitably. Bank is confident to continue to be a winner.

In recognition of its e"cellent custo&er ser:ice, fair business 'ractices, o:erall

o'erational efficiency, o:erall 'erfor&ance, etc the bank has been felicitated by the

following awards during the last few years.

% Bank has been awarded as the best Bank in the 'restigious ‘Dun & Bradstreet

(D&B) – Polaris Software Banking Awards 2011.

% Bank0s nnual De'ort /8- has won three awards at the 'restigious >$+

/ Jision wards C the world0s largest award 'rogra&&e for nnual De'orts,

organi<ed by $alifornia-based >eague of &erican $o&&unications +rofessionals

>$+9, 3#.

;DG=IKTI;=> #TD3$T3D)

The % Bank has a four tier organi<ational structure, na&ely

$or'orate Headuarters,

Konal ;ffices,

$luster ;ffices and

Branch ;ffices.

1. $;D+;DT) H)AL3DT)D

The cor'orate Headuarter of the Bank is located at #rinagar and is headed by

$hair&an cu& $hief )"ecuti:e officer $);9, who is a''ointed by the %

Go:ern&ent for a 'eriod of 4 to years. Generally, the chair&an is selected for&

re'uted )cono&ists, Bankers or the d&inistrators of the state. The $hair&an is

guided by the Board of Airectors of the Bank.

Board of Airectors



The Board of Airectors of the Bank consists of 8 &e&bers. The Board sits

&ore than a do<en ti&es in a year to re:iew the business acti:ities of the Bank. It also

'lans and regulates the future acti:ities of the Bank through 'olicy decisions and

ad&inistrati:e guidelines. ll the i&'ortant decisions of the Bank ha:e to be endorsed

by the Board of Airectors before their i&'le&entation.

(=G)()=T

The &anage&ent of the Bank consists of the following three categories.

#enior (anage&ent

(iddle (anage&ent, and

%unior (anage&ent.

t the to' of &anage&ent there is $hair&an cu& $);, who is followed by e"ecuti:e

'residents, 'residents, :ice 'resident and assistant :ice 'residents

In the (iddle (anage&ent, there are e"ecuti:e &anagers, senior e"ecuti:e

and e"ecuti:es. nd in the 2unior &anage&ent there are ssociate e"ecuti:es.

/. K;=> ;**I$)

3nder $or'orate Headuarters there are 11 Konal ;ffices s'read all o:er

India. <onal (anager, who is of the rank of :ice 'resident. The :arious de'art&ents

at Konal offices look after following i&'ortant functions

Supervision and ontrol

!redit

(IA

>aw,

Branches,

#ecurity,

General, etc.

1



4. $>3#T)D ;**I$)#

3nder Konal ;ffices, there are $luster ;ffices. The $luster ;ffice is headed

by the ssistant :ice 'resident or senior e"ecuti:e (anager.

5. Branch offices

The :arious branches of the Bank in %a&&u and ash&ir #tate are di:ided

into different categories whereas in Aelhi Kone they are di:ided into / categories,

de'ending on the uantu& of business. These are, in % #tate, as follows

$ategory - :erage working abo:e Ds1. $rores.

$ategory B- :erage working Ds. . crores to Ds.1. $rores.

$ategory $- :erage working Ds.1. crores to Ds.. crores.

$ategory A- :erage working Ds./. crores to Ds.1. crores.

$ategory )- :erage working u' to Ds./.

In Aelhi Kone the :arious categories of the Branches of the Bank are

$ategory I- :erage working abo:e Ds./. crores.

$ategory II- :erage working u' to Ds./. crores.

HI#T;DI$> B$GD;3=A

)ntire banking in the state of %a&&u and ash&ir was 'erfor&ed bytraditional &oneylenders till 1/-4 and that too at e"orbitant interest rates. t the

sa&e ti&e so&e banks functioned but at a :ery li&ited scale, such as +un2ab =ational

Bank, Grind lays Bank and I&'erial bank of India. The role of these banks was

reduced to the acce'tance of de'osits, as they could not grant loans and ad:ances to

the 'eo'le of ht e state owing to the statutory li&itations. 3nder this scenario banks

could not a&eliorate the financial and social 'osition of 'eo'le of the state. To

o:erco&e this critical situation the then (ahara2a of #tate concei:ed an idea of setting

u' of a state Bank in the state. fter, 'rolonged e"ercises and deliberations the

11



assign&ent for establish&ent of EThe %a&&u ash&ir Bank >i&itedM was gi:en to

the late #ir #orab2i = +ochkhanwala, the then (anaging Airector of the $entral Bank

of India. (r. +ochkhanwala for&ulated a sche&e on /5--14, suggesting

establish&ent of a #e&i #tate Bank with 'artici'ation in ca'ital by #tate and 'ublic

under the control of #tate Go:ern&ent. Thus the Bank was for&ally incor'orated on

1st of ;ctober 148 and co&&enced business fro& 5th of %uly 14 at its Degistered

;ffice, Desidency Doad, #rinagar, and ash&ir.

The %a&&u and ash&ir Bank li&ited has been the first of its nature and

co&'osition as a state owned bank in the country. The state Go:ern&ent besides

contributing half of the issued ca'ital also a''ointed it as its bankers for general

banking and treasury business. In its for&ati:e years, the bank had to encounter

se:eral serious 'roble&s, 'articularly around the ti&e of inde'endence, when out of

its total of 1 branches two branches of (u<affar-abad and (ir'ur fell to the other

side of line of control =ow +ak d&inistered ash&ir9 along with cash and other

assets in 157. Howe:er, the #tate go:t. ca&e to its rescue with the assistance of Ds

6. lacks to &eet the clai&s. Howe:er the bank steadfastly o:erca&e its difficulties

and ke't growing. *ollowing the e"tension of central laws to the #tate of %a&&u and

ash&ir, the bank was defined as a Go:t. co&'any as 'er the 'ro:isions of Indian

co&'anies ct 16. The Bank had its first full ti&e $hair&an in 171, following the

social control &easures in banks. The year 171 was a turning 'oint for the bank on

confer&ent of scheduled bank status and witnessed re&arkable 'rogress in all the

:ital fields of o'erations. Deser:e Bank of India declared the Bank as EM class bank

in 176.

1/



1., INTRODUCTION TO T0E STUDY

$usto&er is the nucleus around who& bank business ought to take sha'eo'erate, The

'olicies and 'rocedures should be used as tools to &anage the 'hysical resources, but

&ore i&'ortantly the hu&an resources as, banking ser:ices are rendered by hu&an

beings to hu&an beings. I&'ortant to custo&er ser:ice in banks are the syste&s and

organi<ational arrange&ent, as well as the characteristics and beha:ior of

e&'loyeese&'loyers towards custo&ers. There has been 'heno&enal growth of

ser:ice industries in recent years. (ore 'eo'le are now e&'loyed in ser:ice industriesthan in &anufacturing industries. good 'art of business sector with its banks, hotels,

law fir&s, consultation fir&s, air lines etc, is in the ser:ice business. In the changed

&ilieu, e:ery banking organi<ation tries to utili<e its resources in the &ost efficient

and effecti:e way. This calls for 'ro'ounding new conce'ts, de:elo' new skills,

redefine the ob2ecti:es and goals, for&ulate new strategies and reorient training and

&odify attitudes of the e&'loyees and e"ecuti:es so that 'roducts and ser:ices are

deli:ered to the custo&ers as 'er their de&ands and e"'ectations which would lead to

the satisfaction of custo&ers. $usto&er satisfaction is a do&inant factor in the success

of an enter'rise. In the banking industry where intangible 'roducts are to be &arketed,

the i&'ortance of custo&er satisfaction is all the &ore significant. The custo&er has,

therefore, necessarily and consistently to be the focal 'oint in all decision &aking

relating to the 'olicies, 'rogra&s and 'ractices of an organi<ation. *ro& this 'oint of

:iew, the 'ri&e function of banks can be defined as the creation and deli:ery of need

based custo&er ser:ice in a custo&er -satisfying &anner, to begin with! therefore, a

banker s‟

Task is to identify his custo&er and his needs. The 'roble& would really arise in

locating or identifying a 'otential custo&er on the one hand, and the right &arketing

and de:elo'&ental attitude on the other.

14



.1 RE2IE3 OF LITR&TURE

Decent studies ha:e de&onstrated that knowing satisfying the custo&ers with

co&'etiti:ely su'erior ser:ices is the key to 'rofitable 'erfor&ance. The ser:ice fir&

&ust effecti:ely train &oti:ate its e&'loyees as well as all the su''orting ser:ice

'ersonnel to work as a tea& to 'ro:ide custo&er satisfaction. (any researchers ha:e

contributed a lot on custo&er satisfaction ha:e gi:en their own ideas about how to

satisfy a custo&er. #o&e of the i&'ortant studies are described here under

#tudies abroadHalstead 149 'ro'osed a &odel of satisfaction co&'laint resolution in which the

e"'ectations deter&ined the 'urchase ser:ice the related disconfir&ation. The study

further

#uggested that, to the e"tent the e"'ectations are clearly for&ed, the custo&ers are

&ore satisfied with co&'laint resolution. It also suggests 'ro:iding additional

ser:ices other then whate:er is e"'ected by custo&er, because ser:ice disconfir&ation

is &ore strongly correlated with satisfaction co&'laint resolution than warranty

confir&ation. %ones and #esser 19 re:eals that one of the &ethods of &easuring

the i&'act of uality i&'ro:e&ent 'rocess in cor'orate sector is to create a custo&er

satisfaction sur:ey. The study discussed a sur:ey with one of the co&'any0s senior

officer, the $); 'roudly 'oints out that8/F of custo&ers sur:eyed res'onded with an

o:erall satisfaction and only 18F of its custo&ers were less then satisfied. There

di:isions with a:erage ratings co&'letely satisfied9, 5satisfied9 5.neutral9

4.dissatisfy9 and the lowest rating /.7:ery dissatisfied. The study concludes that

there is tough co&'etition in lubricant di:ision and its 'rice conscious custo&ers will

ne:er be satisfied, as it does not 'ay to &ake additional in:est&ent to try to satisfy

the&.otler 19 in his study co&&ents that so&e co&'anies raise e"'ectations to

&atch their 'erfor&ances. They ai& for total custo&er satisfaction as Nero", e.g.9

guarantees ?Total satisfaction ?and will re'lace at its e"'ense in dissatisfied

custo&er0s eui'&ent0s for a 'eriod of three years after 'urchase with the sa&e or

co&'arable 'roducts. nother co&'any like $igna ad:ertises that their co&'any will

be ne:er 1F satisfied until their custo&ers are too. ;ne of the studies of Toyota

15



buyers showed those highly satisfied buyers shows high custo&er loyalty than those

who are 2ust satisfied. >o:elock and Ooung 179 in an article, ?>ook to consu&ers

to increase 'roducti:ityM, obser:ed that in &any ser:ices, atte&'t to i&'ro:e

'roducti:ity are likely to fail unless the su''ort of consu&ers can be secured. ;n the

contrary, so&e see consu&ers as a barrier to 'roducti:ity. They further obser:ed that

the insensiti:ity towards custo&ers can be a:oid by de:elo'ing custo&er trust in the

'roducti:ity related changes through syste&atic and 'lanned co&&unication 'rogra&

and by understanding custo&ers habit and understand deter&inants of custo&er

beha:ior. The study on ?selected deter&inants of custo&er satisfaction co&'laint

re'orts? by Bearden Teel 1849, ;li:er 189, re:eals that consu&er

satisfaction is based on the 'reference shares-'urchase belief, regarding 'roducts

'erfor&ance, e"'ectation

Aisconfir&ation belief or 'ost 'urchase 'erce'tion that a 'roduct could or could not

'erfor&s as e"'ected ha:e a significant influence on custo&er satisfaction. endall

Duss 179 re:eals that e"'ress warranties are 'ro&ises of co&'laint resolution

they often encourage unsatisfied custo&ers. *urther concluded by the& are that

e"'ectations of warranty ser:iced in case of durable goods are greater then non-

durable goods.>ele #heth 1889 says that for deter&ining custo&er satisfaction,

one of the factors will be the e"'ectations regarding after sale0s su''ort like tool free,

nu&bers, warranties, +arts a:ailability etc. they further re:eals that after sales su''ort

is said to be the lit&us test of fir&0s intentions towards its custo&ers. #olo&on 189

argues that custo&er satisfaction ser:ices with regard to co&'laining 'rocesses a

function of the ?congruence? between 'ercei:ed beha:ior the beha:ior e"'ected by

the role 'layer. Gilbert . $hurchill and $.#ur'renant 18/9 concluded that in

deter&ining custo&er satisfaction, a high correlation e"ists between 'erfor&ance

satisfaction of custo&ers. The study further concludes that in case of durable goods,

the satisfaction is &ore de'endent on the actual 'erfor&ance of the 'roduct then that

of non-durable goods.Bau&garten 17/9 in their nursing ho&e study found no

relationshi' between satisfaction as such functional attributes as the &odernity of the

ho&e, its si<e or any ob2ecti:e feature. To statistically significant degree they found

satisfaction related to the ability of the res'ondents to &ake friends there to the

nu&ber of such friends and to the religious affiliation of the ho&e. Aes'ite a difficulty

in s'ecifying which 'sychosocial :eritable are i&'ortant in any case and in &easuring

1



the&. It is a taste, which should be handed for all but &ost co&&on'lace 'roduct

classification.

., OBJECTI2ES OF T0E STUDY

#tudy for % Bank car loan sche&e

The study ai&s to achie:e the following ob2ecti:es

1. To gauge the satisfaction of the custo&ers in organi<ations under study.

/. To identify the factors which act as i&'edi&ents for the custo&er satisfaction in

banksP

16



. SCOPE OF T0E STUDY

The study was conducted to find out custo&er satisfaction towards % bank

with reference to car loans. Thus hel's in suggesting for solutions to 'ro:ide better 'erfor&ance.

17



.4 NEED FOR T0E STUDY

The study was conducted to study about the custo&er satisfaction of % bank with

res'ect to car loans. There was a need to understand the :arious factors of a''raisalsyste& and gi:e re&edies to run the co&'any s&oothly.

$usto&er satisfaction can be critical baro&eter of how well a co&'any is ser:ing its

custo&ers. This infor&ation can show a co&'any what it needs to do to increase its

custo&er satisfaction le:el unless its &a2ority of custo&ers are totally satisfied. In

order to assess how satisfied or dissatisfied custo&ers are, co&'anies should

undertake sur:eys and understand what custo&ers need, when they 'ro:ide :arious

res'onses.

18



4.1RESE&RC0 -ET0ODOLO5Y

•Desearch Aesign-

custo&er sur:ey was undertaken to assess the custo&ers. n e"'loratory

research design was ado'ted to conduct the study in order to know the i&'act

of % bank car loan sche&e a&ong the 'otential custo&ers. In order to get

the rele:ant data, 'ri&ary data was collected by &eeting the res'ondents

'ersonally.

• #a&'ling +lan-

+o'ulation of the #a&'le

The 'o'ulation of the interest was ash&ir :alley. rando& sa&'le design

was used. %udg&ent si&'le was also done to ensure &a"i&u& co:erage of

% bank custo&ers.

#a&'le #i<e

sa&'le of 1 res'ondents was taken in so&e organi<ations like institutions,

uni:ersities, hos'itals and in so&e sho''ing centers of the :alley.

• Aata collection

#ource of Aata

The re'ort &ainly consists of 'ri&ary data gathered through the

schedule of uestions asked to the res'ondents directly. Infor&ation about the

co&'any, its 'roduct ser:ices, features and &arket share were obtained fro&

the bank and for& other secondary sources such as &aga<ines, 2ournals,

annual re'orts etc.

The inter:iewer a''roached the res'ondents as if the was the &arketinge"ecuti:e of the bank and uestionnaire was for&ulated. The answers, ueries

and res'onses were noted down fro& each res'ondent and accordingly the

results were for&ed.

• Geogra'hical area of the study

The data collection for this 'ro2ect is restricted to the Jalley of ash&ir.

• #tatistical Tools

Tools are used for tabulation of data, 'ercentages are drawn for generali<ing

the study and gra'hs are used for ha:ing better 'ictorial re'resentation.

1



6.1RESULT DISCUSSION

Co"(arati7 ana%8!i! o$ th 7ariou! #ank! in /a!h"ir 7a%%8

19 Head on co&'arison and the features of % bank with its co&'etitors in

the :alley.

#. =o. =a&e of the Bank Tenure Date of Interest

1.

% Bank

3' to 4 Oears 11.F

4 to Oears 11.7F

to 7 Oears 1/.

/. #tate Bank of India 3' to 4 Oears 1.7F

bo:e 4 Oears 11./F

4. +un2ab =ational Bank 3' to 4 Oears 11.F

bo:e 4 to Oears 1/F

5. ;riental Bank of $o&&erce 3' to 4 Oears +>D-1.F

bo:e 4 to Oears +>D-1F

. $entral Bank of India *i"ed Date +>D-/F

6. 3$; Bank *i"ed Date 11F

7. $anara Bank *i"ed Date 11.F

nalysis- It is e:ident fro& abo:e table that % Bank le:y high rate of

interest co&'ared to its arch ri:al co&'etitor state bank of India. if it is

allowed for &ore ti&e that the Bank will lose the hold of the 'otential

custo&ers. Therefore efforts &ust be raised by the bank &anage&ent to reduce

the rate of interest.

/



/9 (argin (oney reuired for a:ailing the sche&e

nalysis - *ro& the gra'h it is obser:ed that the &argin &oney reuired for the sanction of loan of :arious banks is as

% Bank Q1F

3$; Bank Q1F

$anara Bank Q1F

;riental Bank of $o&&erce Q1F

$entral Bank of India Q1F

+un2ab =ational Bank Q1F

#tate Bank of India Q1F

Inference- It is e:ident that &argin &oney reuired is at 'ar with &ost of the banks .

Bank need to reduce it to catch hold of &ost the custo&ers and to &ake &ore

influence on 'otential custo&er.

/1



49De'ay&ent 'eriod of the sche&es for different banks

nalysis- *ro& the gra'h it is obser:ed that the &a"i&u& re'ay&ent 'eriod of

:arious banks is listed as

% Bank Q 7years

3$; Bank Qyears

$anara Bank Q6years

;riental Bank of $o&&erce Q7years

$entral Bank of India Q7years

+un2ab =ational Bank Q7years

#tate Bank of India Q7years

Inference- It is inferred that the % Bank offers only 7 years to &a"i&u&

re'ay&ent 'eriod while its co&'etitors #tate Bank of India so&e other banks also

'ro:ide the sa&e re'ay&ent 'eriod , it needs to be reduced to gi:e choice to the

'otential custo&ers &ake the sche&e &ore co&'etiti:e.

//



59 #ecurity reuired by the :arious banks

#ecurity +ri&ary

Hy'othecation of :ehicle to be 'urchased

and banks charge to be registered with

DT;

$ollateral

a9 =o third 'arty guarantee reuired

in res'ect of 'er&anent e&'loyees

of state and central go:t,

e&'loyees of statecentral go:t

undertakings and autono&ous

bodies drawing salary through our

bank and where letter of

undertaking fro& e&'loyer is

a:ailable.

b9 Guarantee of one 'erson for all

other a''licants

nalysis- 3nder security, all the banks obey stated features.

9Luantu& of &a"i&u& finance offered by different banks

/4



nalysis- *ro& the gra'h it is obser:ed that the &a"i&u& finance offered by :arious

banks is as

% Bank Q/>acks

#BI Q1 >acks

$anara Bank Q1 >acks

$entral Bank of India Q/ >acks

Inference- It is inferred that % Bank has taken a ste' ahead of its co&'etitors

desired custo&ers can a:ail the choice to go for the lu"ury cars.

69)ligibility reuired for a:ailing loan fro& different banks

/5



E%igi#i%it89 • +er&anent e&'loyees of

statecentral go:ern&ent,

e&'loyees of go:ern&ent

se&i-go:ern&entundertakings and

autono&ous bodies.

• )&'loyees of 'ri:ate ltd

co&'anies 'ri:ate

organi<ations, re'uted

establish&ents and

e&'loyees on contractual

bases with centralstate

go:ern&ent,

go:ern&entse&i

go:ern&ent undertakings

and autono&ous bodies.

)ligibility criteria *or a b9

• (ini&u& age of a''licant

/1 years.

• (a"i&u& age of a''licant

at loan &aturity 8 years.

*or institutions, where

retire&ent age is 6 years,

the u''er age li&it shall be

68 years.

• (ini&u& e&'loy&ent The

a''licant &ust ha:e been in

current e&'loy&ent for a

'eriod not less than 1 year.

• (ini&u& net annual

inco&e Ds 7

R)&'loyees on contractual bases

/



with centralstate go:ern&ent,

go:ern&ent! se&i go:ern&ent

undertakings and autono&ous

bodies shall be eligible, if they

ha:e been in current contractual 2ob

for a 'eriod not less than 1 year and

the re&aining contract 'eriod is

longer than the chosen re'ay&ent

'eriod.

Howe:er e&'loyees on adhoc

bases shall not be eligible9.

• Business&en, 'rofessionals

and self-e&'loyed

indi:iduals.

)ligibility criteria *or c9

• (ini&u& age of a''licant

/1 years.

• (a"i&u& age of a''licant

at loan &aturity 6 years

• (ini&u& 'eriod of

e&'loy&ente"istence t

least 4 years in business

• (ini&u& net annual

inco&e Ds 7

nalysis- It is e:ident that for eligibility all bank obey the abo:e described criteria

for the sanction of loan.

79+rereuisite for for&alities.

/6



#. =o. *;D(>ITI)# B=#

1. Inco&e ta" return 3$; Bank, $anara Bank,

;riental Bank of $o&&erce,

$entral Bank of India, +un2ab

=ational Bank, #tate Bank of

India.

/. $ertificate fro& $hartered

ccountant, =o need for IT return

certificate.

% and Bank

4. Bank account state&ent for 're:ious

&onths $urrent sa:ings9

ll banks reuire the state&ent of

accounts for the sanction of loan

nalysis- *ro& abo:e it is e:ident that only % and Bank doesnt reuire IT

certificate which is 'lus 'oint for the bank. Because of this, it is able to gras' &ore

custo&ers under its co:er.

89 =et annual inco&e for a:ailing loan.

/7



nalysis- *ro& the gra'h the &ini&u& gross salary inco&e for a:ailing loan is

% Bank QDs 7

3$; Bank QDs 1./ >acks$anara Bank QDs 1./ >acks

$entral Bank of India QDs 7

Inference- It is found that this is the added feature for % and Bank, with &ini&u&

inco&e of Ds 7 annually &ost of the 'eo'le could go for the sche&e.

9 dded infor&ation about the other banks.

a9 ;riental Bank of co&&erce.

/8



1. ;B$ also 'ro:ides finance to second hand cars under ETrue Jalue #che&eM of

(aruti 3dyog >i&ited.

/. It charges interest rate of +>D S/.F.

4. The re'ay&ent 'eriod is years.

5. (a"i&u& finance for second hand cars under ETrue Jalue #che&eM is 6 >acks.

. (argin &oney reuired is /F.

b9 In addition 3$; and $anara Bank also 'ro:ided finance for second hand

cars.

In addition to these banks, 'ri:ate cor'orate ha:e also entered into this

seg&ent of car financing in the :alley. It is shok >eyland which has been a &a2or

/



'resence in Indias co&&ercial :ehicle industry for decades has also entered into

the line. In addition to 'ro:iding finance to their :ehicles they ha:e also started

'ro:iding finance to cars.

The sche&e goes as under-

1. )ligibility

)&'loyees of go:ern&ent se&i go:ern&ent undertakings, indi:iduals,

li&ited co&'anies, fir&s etc.

/. #ecurity

Hy'othecation of the :ehicle, no reuire&ent of third 'arty guarantee.

4. Date of Interest

It le:ies a constant flat rate of .7F

5. (argin (oney

The &argin &oney reuired for a:ailing loan is /F of the cost of the :ehicle.

. De'ay&ent

The re'ay&ent ti&e for the loan is 4 years in eual &onthly install&ents.

Speial "eatures of t#e S#e$e%

Instant *inance

=o hidden charges.

=o guarantor reuired.

=o ser:ice charges.

Analsis of t#e ' and ank ar loan S#e$e

19wareness about the car loan sche&e a&ong the res'ondents of % and Bank.

Total =o. of Des'ondents Q4

=o. of aware res'ondentsQ/45

=o. of unaware res'ondentsQ66

4



$once't- Gra'h re'resenting the awareness a&ong the res'ondents about the

sche&e.

nalysis- The abo:e gra'h shows 78F res'ondents know about the sche&e while as

//F doesnt ha:e clear idea about the sa&e.

Inference- This suggests that :ery few doesnt ha:e the clear cut :ision about the

sche&e though they are fa&iliar by na&e E*inanceM or E>oanM only, which creates

wrong i&'ression about the sche&e. genuine effort fro& the Bank side could

con:ert this 'ercentage into future custo&ers.

(onthly inco&e of the res'ondents

nalysis- It is e:ident fro& the gra'h that the &onthly inco&e of the res'ondents is

as

Ds---Ds 1 Q/4F

Ds1---Ds 1 Q4/F

Ds1 and abo:e Q5F

/9 +ercentage of custo&ers who ha:e a:ailed the car already through this sche&e.

41



nalysis- It is analy<ed that 44.44F res'ondents who already own a car ha:e

ado'ted the sche&e of the bank while the 66.66F ha:ent got the car through this

sche&e.

Inference- It is inferred that 'ro&otional strategies need to be ado'ted to re:erse the

trend and increase the awareness le:el, as is used by the co&'etitors. +ro'er

awareness ca&'aign will clear the doubts fro& the &inds regarding the sche&e.

59 Deasons for the non-ado'ting of the car loan sche&e.

nalysis- *ro& the gra'h it is clear that the reasons for not ado'ting the car loan

sche&e are

4/

>AQ>ack of ad:ertise&ent

>TQ>ack of attracti:eness

IB+Q Indifference of banking 'eo'le

;BQ ll of abo:e



>ack of ad:ertise&ent Q/F

>ack of attracti:eness co&'ared to co&'etitors Q48F

Indifference of banking 'eo'le Q5.F

ll of abo:e Q44F

Inference- It is inferred that lack of ad:ertise&ent and lack of the sche&e as

co&'ared to #tate Bank of India are the key reasons for the non-ado'tion of the sa&e

by the custo&ers. Therefore, it is essential that ad:ertise&ent and attracti:eness &ust

be done in such a way to counter the co&'etitors and &ade &ore li:ely so that &ore

and &ore 'otential custo&ers could relish the sche&e.

9 wareness about the sche&e of other banks +articularly #tate Bank of India9.

nalysis- The abo:e 'ie chart shows that 84F of 'eo'le are aware about the sche&es

of other banks while 17F are unaware about the sa&e.

Inference- @hen the awareness le:el of % and bank is co&'ared with that of the

other banks it is found to be 78F which is less. #o efforts &ust be &ade by the % and

44

ware. 84F

3naware. 17F





Inference- It is inferred that the 'rint &edia is considered to be the strongest tool in

bringing awareness to the 'eo'le.

79Dating of % Bank car sche&e with other banks

nalysis- *ro& the gra'h the rating of % and bank with other banks is as

Good Q4/F

#atisfactory Q48F

$an i&'ro:e Q4F

)"tre&ely Bad Q.F

Inference- It is obser:ed that &ost of the res'ondents are ha''y with the sche&e and

the res'ondents who said that the sche&e could be i&'ro:ed is because of the

co&'etitors, who offer the sche&e at low rate of interest than ours and the re'ay&ent

'eriod is also long.

89 Deasons for not a:ailing the car loan

4





should take such ste's i.e. at least bring down the rate of interest to the co&'etitors or

less so that &ore and &ore custo&ers &ay a:ail the loan.

9;'inion of custo&ers who a:ailed the car loan

9 *or&alities In:ol:ed-

nalysis- *or&alities in:ol:ed in a:ailing the loan are

$o&'licated Q//F

)asy Q78F

Inference- It is e:ident fro& the chart the 78F of the 'eo'le who ha:e a:ailed the

loan fee the for&alities in:ol:ed are easy. *or a:ailing the loan, the other banks

reuire IT return certificate but % bank doesnt reuire the sa&e, as we know that

&ost of the business 'eo'le doesnt 'ay the ta"es 'ro'erly so surely that will 'refer

% bank.

47



B9 Date of Interest

nalysis- The o'inion of consu&ers about the rate of interest who a:ailed consu&ers

loans.

=eeds to be reduced Q87F

deuate Q14FInference- s &ost of the 'eo'le feel that the rate of the interest is high, as the

co&'etitors are offering the sche&e at reduced rates. Therefore, efforts should be

&ade by the bank to re:ise the interest rates so that &ore 'eo'le &ay a:ail the loan

and re&ain satisfied.

48



$9 (argin (oney

nalysis- The o'inion of consu&ers about the &argin &oney who a:ailed loan is

=eeds to be reduced Q18F

deuate Q8/F

Inference- It is e:ident that &a2ority of the 'eo'le feel that &argin &oney reuired

for loan is adeuate. In order to attract &ore custo&ers the &argin &oney should be

reduced.

4

8

7

6

5

4

/

1

8/

deuate =eed to Deduce

18



:.1 Finding!

):en though % bank en2oys a large &arket share and custo&er loyalty but a

lot need to be done to ta' the 'otential custo&ers and to o:erco&e certain

loo'holes in the sche&e. @ith the result custo&ers are shifting to other Bank

of India 'articularly for car loans as their sche&e are &ore attracti:e and their

se:ere ad:ertising has caused the results. The rate of interest, &argin &oney of

% bank is uite high in co&'arison with co&'etitors. The re'ay&ent 'eriod

and &ini&u& finance offered is also less with the result 'eo'le wanting fewer

a&ounts in install&ents and those who want to buy lu"ury sedans goes out of

reach of bank. s e:ident the for&alities reuired are less and the net annual

inco&e for a:ailing loan is only Ds7, which is healthy for the bank. The

% bank has also introduced financing second hand cars in order to laurel

&ore custo&ers. In addition it should find tool to counter 'sychology &ark of

install&ent of Ds/ of #tate Bank of India which is taking the toll in the

:alley.

5



:., Rco""ndation! and !ugg!tion!

*ro& the fore going 'rocess, it is i&'ortant for the bank to establish a syste& for the

continuous creation of high custo&er satisfaction. The following &easures are

reco&&ended to create growing custo&er base-

1. *irst of all the bank should o:er haul the sche&e to &ake it &ore co&'etiti:e

than the other banks. s we already know the Ds / has already &ade the

i&'act in the &inds of he 'otential custo&ersU.

/. The bank has to definitely reduce the rate of interest, decrease the &argin

&oney and increase the ti&e for the re'ay&ent 'eriod.

4. They should not 'ut any ceiling on the &a"i&u& finance as is done by the

$anara Bank so that 'eo'le can easily a:ail the loan for lu"ury sedans.

5. +rint &edia ad:erting should be done effecti:ely so as to &o:e the custo&ers

to higher le:els in the decision 'rocess for using the finance sche&e.

. The bank needs to go for aggressi:e &arketing of its 'roducts and reuires

increasing the awareness le:el a&ong the custo&ers.

6. Aefinitely 'ersonal selling hel's in increasing the sales and clears the

confusion about the sche&e a&ong the custo&ers. #o bank should kee' a

se'arate force for telling the sche&es and 'olicies of the sa&e. It will

definitely hel' the bank.

7. )&'loyees of the bank &ust be trained to treat the custo&ers &ore

courteously and to be &ore res'onsi:e towards their needs and e"'ectations.

s the satisfied custo&ers will bring in &ore custo&ers.

51



:.Li"itation! o$ th !tud8

Ti&e factor was the &a2or li&itation.

The findings of the re'ort ha:e been &ade in the ash&ir :alley. $are should

be taken in generali<ing the re'ort for other 'laces.

The bias of the res'ondents &ay ha:e introduced errors in the sur:ey findings*

5/



:.4 Conc%u!ion

The ability of the nations and organi<ations within nations de'ends on continuous

increase in custo&er satisfaction. In the increasing global co&'etition, satisfaction

growth is essential for &aintaining and ad:ancing o''ortunities for indi:idual

societies. Its growth is one of the &ost i&'ortant factors that ha:e contributed to the

ad:ance&ent of the ser:ice industry. #er:ice to the society, at the &icro le:el, &eans

ser:ice to custo&ers, 'resent 'otential. *ro& this 'oint of :iew, 0the 'ri&e function

of banks can be defined as the creation of deli:ery of custo&er needed ser:ices in a

custo&er-satisfying &anner. To begin with, therefore, a banker0s task is to identify his

custo&er and his needs. To fulfill and &eet the as'iration of 'resent custo&ers in this

co&'etiti:e fast changing situation, banks dont ha:e a choice to be away fro& new

technology if they ha:e to re&ain in the &arket. In the light of this, the study was

undertaken as to how the banks in north :iew custo&er satisfaction. The &ain

conclusions of the study are described below

The study re:eals that consciousness towards custo&er satisfaction is increasing at all

le:els of the bank and the society, which can be obser:ed fro& good efforts &ade by

the bank officers officials. s the e&'irical study re:eals the :iews of custo&ers

regarding their satisfactiondissatisfaction ha:e been uantified on the basis of a scale

ha:ing different basis on the continuu&. The sur:ey found satisfaction a&ong so&ecusto&ers of the banks under studies :i<., % Bank %B9, #tate Bank of India

#BI9 +un2ab =ational Bank +=B9 in :arying 'ro'ortions.

1.In case of satisfaction of custo&ers on the basis of attitude of the staff the highest

satisfaction of custo&ers is 'ro:ided by #BI as co&'ared to %B and +=B, and!

/.In case of satisfaction of custo&ers on the basis of efficiency of the staff the highest

satisfaction of custo&ers is 'ro:ided by +=B as co&'ared to #BI and %B.

4.The highest satisfaction of custo&ers is 'ro:ided by again +=B, in relation to the

satisfaction on the basis of 'roducts ser:ices of the bank offered to custo&ers as

54









7.@ill you go through finance

a9OesVVVVVVVVVVVVVVVVV

b9=oVVVVVVVVVVVVVVVVVV

8. Through which bank you will o't for loan gi:e 'reference

a9VVVVVVVVVVVVVVVVVV

b9VVVVVVVVVVVVVVVVVV

c9VVVVVVVVVVVVVVVVVV

d9VVVVVVVVVVVVVVVVVV

. Gi:e reasons for reference VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

1. Aid you know about the % Bank car loan sche&e

a9 OesVVVVVVVVVVVVVVVVV

b9 =oVVVVVVVVVVVVVVVVVV

11. Through which &edia you ca&e to know about the sche&e

a9+rint (ediaVVVVVVVVVVV

b9)lectronic (ediaVVVVVVVVVVVVV

c9Bank BranchesVVVVVVVVVVVVVVV

1/. re you aware about the sche&e of other banks

a9 OesVVVVVVVVVVVVVV

b9 =oVVVVVVVVVVVVVVV

14. Dating of % Bank car loan sche&e with other banks

a9 GoodVVVVVVVVVVVVVVVVVVVVVV

b9 #atisfactoryVVVVVVVVVVVVVVVV

c9 $an I&'ro:eVVVVVVVVVVVVVVV

d9 )"tre&ely BadVVVVVVVVVVVVV

15. Deasons for not a:ailing the car loan

a9 High rate of interestVVVVVVVVVVVVVVVVVVVVV

b9 (argin &oneyVVVVVVVVVVVVVVVVVVVVVVVVVVV

c9 #hort re'ay&ent 'eriodVVVVVVVVVVVVVVVVVV

57



d9 $o&'licated for&alitiesVVVVVVVVVVVVVVVVVV

e9 lready owns a carVVVVVVVVVVVVVVVVVVVVVVV

f9 @ill buy in futureVVVVVVVVVVVVVVVVVVVVVVVVV

Documents

J&K BANK Final Project Aadil