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APROJECT REPORT

ON

CUSTOMER SATISFACTION TOWARDS THE JAMMU

CENTRAL CO-OPERATIVE BANK LIMITED WITH

REFERENCE TO CAR LOANS

CONDUCTED FOR

THE JAMMU CENTRAL CO-OPERATIVE BANK LIMITED.

Submitted to BABA GHULAM SHAH BADSHAH UNIVERSITY

RAJOURI in partial fulfillment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY: UNDER SUPERVISION OF:

Kashif Ul Anwar DR. RADHA GUPTA

M.B.A 3rd

sem ASSTT. PROFESSORRoll no: 24-MBA-2010 SCHOOL OF MGMT. STUDIES.


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ACKNOWLEDGEMENT

I avail this opportunity to express my deep sense of gratitude to Mr. Sansar Chand

the respected chief General Manager of The Jammu Central Co-Operative Bank for

providing me an opportunity to work as a project report on the Jammu central co-operative

Bank Ltd.

I also take this opportunity to thank to my guide Mr. Latif Bangroo (Loan

Manager, Main Branch, DODA) for providing me proper direction to my project, for

sparing their valuable time and rendering all possible guidance whenever approached.

Thus, from which I have gained many insights.

Place: (KASHIF UL ANWAR)


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DECLARATION BY THE STUDENT

I here by declare that this project tilted CUSTOMER SATISFACTION

TOWARDS The Jammu Central Co-Operative Bank WITH REFERECE TO CAR

LOANS is based on the original work carried out by me under the supervision of Mr.

Sansar Chand and Mr. Lateef Bangroo, is an original and bonafide work carried out in

partial fulfillment of the requirement of the award of the degree of Master of Business

Administration of BABA GHULAM SHAH BADSHAH UNIVERSITY.

This is my original work and not submitted for any other diploma, fellowship,

award or prizes. This is my sole effort.

Place: (Kashif Ul Anwar)


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CONTENTS

S. No. Title of the Chapter Page No.

I Executive Summery 5

II Industrial Background 7

III Company Profile 14

IV Objectives of the Study 30

V Research Methodology 32

VI Analysis & Interpretation 41

VII Recommendations and Suggestions 53

VIII Limitations 55

IX Conclusion 57

X Bibliography 59


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Even though The Jammu Central Co-Operative Bank enjoys a large market share

and customer loyalty but still it is not able to tap the potential customers because of

the certain loopholes in the scheme. With the result customers are shifting to State

Bank of India & J&K Bank particularly for car loans as their scheme is more

attractive and their severe advertising has caused the results. The rate of interest,

margin money of The Jammu Central Co-Operative Bank is quite high in

comparison with competitors. The repayment period and minimum finance offered

is also less with the result people wanting fewer amounts in installments and those

who want to buy luxury sedans goes out of reach of bank. As evident the

formalities required are less and the net annual income for availing loan is only

Rs75000, which is healthy for the bank. The Jammu Central Co-Operative Bank

should also start financing second hand cars in order to laurel more customers.


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CHAPTER II

INDUSTRIAL BACKGROUND

Industrial background


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Definition:

The Indian Banking Companies Act, 1949 section 5(b), defines banking as

accepting for the purpose of lending or investment of deposits from the public,

repayable on demand or otherwise and withdrawal by cheque, drafts, and orders or

otherwise.

ORIGIN OF BANKS:

A bank is a financial institution that accepts deposits and channels those deposits into

lending activities. Banks primarily provide financial services to customers whileenriching investors. The invention of banking preceded that of coinage. Banking

originated in Ancient Mesopotamia where the royal palaces and temples provided

secure places for the safe-keeping of grain and other commodities. Receipts came to

be used for transfers not only to the original depositors but also to third parties.

Eventually private houses in Mesopotamia also got involved in these banking

operations and laws regulating them were included in the code of Hammurabi.

In Egypt too the centralization of harvests in state warehouses also led to the

development of a system of banking. Written orders for the withdrawal of separate lots

of grain by owners whose crops had been deposited there for safety and convenience,

or which had been compulsorily deposited to the credit of the king, soon became used

as a more general method of payment of debts to other persons including tax gatherers,

priests and traders. Even after the introduction of coinage these Egyptian grain banks

served to reduce the need for precious metals which tended to be reserved for foreign

purchases, particularly in connection with military activities.

ORIGIN OF BANKING IN INDIA:

India has a well developed banking system. Most of the banks in India were founded

by Indian entrepreneurs and visionaries in the pre-independence era to provide

financial assistance to traders, agriculturists and budding Indian industrialists. The

origin of banking in India can be traced back to the last decades of the 18th century.

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


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first banks in India. Both the banks are now defunct. The oldest bank in existence in

India at the moment is the State Bank of India. The State Bank of India came into

existence in 1806. At that time it was known as the Bank of Calcutta. SBI is presently

the largest commercial bank in the country.

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 the Bank of Hindustan,

both of which are now defunct. The oldest bank in existence in India is the State Bank

of India, which originated in the Bank of Calcutta in June 1806, which almost

immediately became the Bank of Bengal. This was one of the three presidency banks,

the other two being the Bank of Bombay and the Bank of Madras, all three of which

were established under charters from the British East India Company. For many years

the Presidency banks acted as quasi-central banks, as did their successors. The three

banks merged in 1921 to form the Imperial Bank of India, which, upon India's

independence, became the State Bank of India.

When the American Civil War stopped the supply of cotton to Lancashire from

the Confederate States, promoters opened banks to finance trading in Indian cotton.

With large exposure to speculative ventures, most of the banks opened in India during

that period failed. The depositors lost money and lost interest in keeping deposits with

banks. Subsequently, banking in India remained the exclusive domain of Europeans

for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s.

The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another

in Bombay in 1862; branches in Madras and Pondicherry, then a French colony,

followed. HSBC established itself in Bengal in 1869. Calcutta was the most active

trading port in India, mainly due to the trade of the British Empire, and so became a

banking centre.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established

in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank,

established in Lahore in 1895, which has survived to the present and is now one of the

largest banks in India.


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Around the turn of the 20th Century, the Indian economy was passing through a

relative period of stability. Around five decades had elapsed since the Indian Mutiny,

and the social, industrial and other infrastructure had improved. Indians had

established small banks, most of which served particular ethnic and religious

communities.

The presidency banks dominated banking in India but there were also some exchange

banks and a number of Indian joint stock banks. All these banks operated in different

segments of the economy. The exchange banks, mostly owned by Europeans,

concentrated on financing foreign trade. Indian joint stock banks were generally

undercapitalized and lacked the experience and maturity to compete with the

presidency and exchange banks. This segmentation let Lord Curzon to observe, "In

respect of banking it seems we are behind the times. We are like some old fashioned

sailing ship, divided by solid wooden bulkheads into separate and cumbersome

compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by

the Swadeshi movement. The Swadeshi movement inspired local businessmen and

political figures to found banks of and for the Indian community. A number of banks

established then have survived to the present such as Bank of India, Corporation

Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

The partition of India in 1947 adversely impacted the economies of Punjab and West

Bengal, paralyzing banking activities for months. India's independence marked the end

of a regime of the Laissez-faire for the Indian banking. The Government of

India initiated measures to play an active role in the economic life of the nation, and

the Industrial Policy Resolution adopted by the government in 1948 envisaged

a mixed economy. This resulted into greater involvement of the state in different

segments of the economy including banking and finance. The major steps to regulate

banking included:

In 1948, the Reserve Bank of India, India's central banking authority, wasnationalized, and it became an institution owned by the Government of India.


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In 1949, the Banking Regulation Act was enacted which empowered the ReserveBank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of anexisting bank could be opened without a license from the RBI, and no two banks

could have common directors.

However, despite these provisions, control and regulations, banks in India except

the State Bank of India continued to be owned and operated by private persons. This

changed with the nationalization of major banks in India on 19 July 1969

By the 1960s, the Indian banking industry had become an important tool to facilitate

the development of the Indian economy. At the same time, it had emerged as a large

employer, and a debate had ensued about the possibility to nationalize the banking

industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of

the GOI in the annual conference of the All India Congress Meeting in a paper

entitled "Stray thoughts on Bank Nationalization." The paper was received with

positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued

an ordinance and nationalized the 14 largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described

the step as a "masterstroke of political sagacity."Within two weeks of the issue of the

ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of

Undertaking) Bill, and it received the presidential approval on 9 August 1969.

The nationalized banks were credited by some; including Home minister P.

Chidambaram, to have helped the Indian economy withstand the global financial crisis

of 2007-2009.

In the early 1990s, the then Narsimha Rao government embarked on a policy

of liberalization, licensing a small number of private banks. These came to be known

as New Generation tech-savvy banks, and included Global Trust Bank which later

amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI

Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in

the economy of India, revitalized the banking sector in India, which has seen rapid


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growth with strong contribution from all the three sectors of banks, namely,

government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in

the norms for Foreign Direct Investment, where all Foreign Investors in banks may be

given voting rights which could exceed the present cap of 10%, at present it has gone

up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of

functioning. The new wave ushered in a modern outlook and tech-savvy methods of

working for traditional banks. All this led to the retail boom in India. People not just

demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of supply,

product range and reach-even though reach in rural India still remains a challenge for

the private sector and foreign banks. In terms of quality of assets and capital adequacy,

Indian banks are considered to have clean, strong and transparent balance sheets

relative to other banks in comparable economies in its region. The Reserve Bank ofIndia is an autonomous body, with minimal pressure from the government. The stated

policy of the Bank on the Indian Rupee is to manage volatility but without any fixed

exchange rate-and this has mostly been true.

Theoretical literature/ framework

Financial statement is that statement which provides information on the firms

position at a point in time and its operation over a period of time.

Financial statement contains information about the wealth of the organization,

which if well analyzed and interpreted can provide valuable insight into firms

performance and its operations. Analysis of financial statement is of interest to

lenders, investors, owners outsiders, shareholders and others.

The traditional financial statement like Profit and loss account and Balance Sheet gives a

summary of the firms resources, obligations and Profits or losses at a particular point in

time. These statement exhibit the nature of financial events occurred only in a given period


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of time. Moreover, they dont make any attempt to explain the changes in the assets,

liabilities, profits or losses. Thus, these statements are viewed as static.


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CHAPTER-III

COMPANY PROFILE


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Profile of The Jammu Central Co-Operative Bank

Brief History of the Bank: The Jammu Central Co-operative Bank Limited was

registered in the year 1914 as a District Central Co-operative Bank with its area of

operation confined to Jammu District only. However, with the partition of the Country

some of the other similar type of Central Co-operative Banks was merged with the Jammu

Central Co-operative Bank Limited Jammu. These Banks were of Districts Rajouri,

Poonch, Doda, Kathua, Udhampur and thus the area of operation of the bank got extended

to whole of the Jammu region comprising of six districts Viz. Jammu, Kathua, Udhampur,

Doda, Rajouri and Poonch. There are 63 Branches and 3 Extension Counters of the Bank.

Formerly, the Bank was having a nominated Board but after 3rd September 2001 there

is duly elected Board of Directors of the Bank.

Financial Indicators

(Amt. in Lakhs)

ParameterPosition as on 31

stMarch

2006 2007 2008 2009 2010

Share Capital 427.55 455.08 479.56 505.68 537.66

Of Which from Govt. 150.50 150.50 150.50 150.50 150.50

Deposits 40378.83 47114.06 50704.68 53595.69 55401.25

Borrowings 650.49 409.61 229.33 111.52 39.73

Loans Issued 4366.84 4494.87 4893.09 5245.92 6736.50

Short Term 1841.06 2148.61 2097.23 2248.79 2583.03

Medium Term 2319.73 2030.11 2372.96 2565.49 3317.43

Long Term 206.05 316.15 422.90 431.64 836.04

Loans Outstanding 11708.26 13176.80 14625.65 15804.89 17730.69


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Short Term 4434.39 4844.96 5111.56 5570.96 5511.16

Medium Term 6801.16 7652.99 8567.38 9092.79 10604.41

Long Term 472.71 678.85 946.71 1141.14 1615.12

Investments 21768.06 25764.30 27691.91 29066.59 28440.59

Recovery

Demand 5706.77 5681.00 6459.00 6867.00 7781.03

Collection 1671.98 1480.55 2081.00 2308.00 2833.52

Percentage of recovery. 29% 26% 32% 34% 36%

Non-Performing Assets 3543.03 3945.78 4098.82 4516.73 4626.13

Of Which from

JAKFED 2177.47 2177.47 2177.47 2177.47 2177.47

C.D. Ratio 29% 28% 29% 29% 32%

Business Per Branch 801.34 927.55 1037.00 1101.60 1160.82

Business Per Employees 77.74 91.00 100.00 106.77 113.03

Net Worth -4802.99 -5172.31 -5335.67 -5484.19 (-) 5734.28

Net Loss 1745.40 483.89 228.14 194.56 284.77

Kissan Credit Cards: Kissan Credit Cards Scheme was operationalized during 99/2000 in

accordance with NABARD's guidelines which improved the quality of Institutional Credit

Delivery for agricultural purposes. Bank has covered a significant proportion of borrowers

under the Kissan Credit Card Scheme which proved an innovative attempt at further

refining the crop absorption capacity of Primary Agricultural Societies. Bank have so far

issued 17710 Cards with credit facility of Rs.1732.21 Lakhs, the year-wise break-up is as

under:


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Y e a r Target of KCC KCC Issued Amount Sanctioned

1998-99 0 152 30.58

1999-00 650 304 41.45

2000-01 11000 7880 728.11

2001-02 57500 4696 431.25

2002-03 25000 2208 212.90

2003-04 5000 721 119.52

2004-05 5000 1749 168.40

Affiliated Societies: There are 1273 societies affiliated with the bank as on 31st March

2009, with district-wise break-up as under:

S.No. District Type of Societies

Primary Secondary Others Total

1 Jammu 456 9 112 577

2 Kathua 113 1 16 130

3 Udhampur 223 3 7 233

4 Rajouri 88 2 6 96

5 Poonch 24 1 6 31

6 Doda 194 2 10 206

Total :- 1098 18 157 1273

Revival of PACS: Based on target to identify one society per block as a Model Society, 43

Societies are identified as per district-wise detail appended hereunder:


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S.No. District No. of Societies identified as Modal

Societies

1 Jammu 11

2 Kathua 8

3 Udhampur 11

4 Doda 4

5 Rajouri 6

6 Poonch 3

Total :- 43

District Managers have been directed to focus their attention particularly towards these

societies for affecting recoveries and subsequently providing loans for seasonal

agricultural operations and other allied activities. Against 43 identified societies, 29

societies have already been made eligible. Efforts are being made to revive other societies

also.

Directions stand issued to all the District Managers for early revival of these societies and

also to enroll more and more families as a member of the society, to bring them under

Cooperative fold. Based on guidelines received from Govt. of India, Bank has targeted to

double the flow of agriculture credit by the end of March 2010.

Development Action Plan (DAP) Strategies thereof: A. Bank attaches considerable

importance to Development Action Plan in an attempt to improve the viability. The

Development Action Plan is prepared, taking into account the strengths and weaknesses of

the Bank. In the process, the efforts are made to deal with the problems and exploit the

business potentials. The different phases in DAPs are:

Diagnosis of problem

Problem definition


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Potential analysis Action Planning Implementation Monitoring and Review Refinement of plan

Future Outlook and Strategies: Looking at the Financial indicators and the working of the

Bank, a specific course of action is planned for:

Reduction in cost of funds Reduction in risk cost Reduction in transaction cost Increase in yield

Reduction in Cost of Funds: Aggregate deposits of the Jammu Central Coop. Bank Ltd are

growing at all times though the rate of growth during certain periods in the past was more

and during certain other periods it was less. But the concern of our bank is not growth rate

perse but the changing composition of deposits portfolio. The volume of time deposits was

growing at a faster rate then the demand deposits. One of the implications - the most

significant one - is higher outgo in the form of interest on these deposits. This along with

the decrease in the lending rates squeezes the margin available.

To reduce the cost of funds, there is no other alternative but to alter the mix of deposits.

The Bank has to mobilize more and more of savings and current account deposits. During

the last two years Bank's Board has taken a policy decision not to encourage term

deposits under reinvestment plan(under Money Multiple Deposit Scheme).Besides1/2

%

extra interest incentive which the Bank was providing to its clients for the last many

years stands withdrawn. Both these decisions checked the growth of Term Deposits.

Whereas percentage of Term deposits (high cost deposits) was 66.85% as on 31st

March

2005, it came down to 56.88% as on 31st

March 2009.This changed composition of

deposit portfolio decreased the interest cost of deposits as Rs.5.64 per hundred rupees

during 2008-09 as against Rs.7.21 per hundred rupees during 2004-05.


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Reduction in Transaction/Risk Cost: A major part of transaction cost is related to

payments to be made to staff. It may not be possible to reduce these costs in absolute

terms. Some of the costs like Stationery, Telephones, Travelling expenditure may be

brought down in absolute terms. But then the reduction may not be very significant. Bank

has to ensure that at least the increased business does not carry proportionate increase in

transaction cost. In the Development Action Plan for the year 2005-06 & 2006-07, COM

is projected at Rs.2.33 and Rs.2.03 respectively as against Rs.2.49 per hundred rupees

ending 31st

March 2005. Keeping in view the past experience and freezing of fresh

appointments in the Bank, it would not be difficult to achieve the target.

Increase in Yield:

In view of the stagnant credit absorption capacity of Primary Agricultural Co-operative Societies, the Bank has to diversify its loan portfolio and to search for

high yield loans to increase the proportion of such assets in the total portfolio. Two

possible courses of action are :-

o To give larger loans by meeting the credit requirements of customers infull and

o to build a loan portfolio which consists of both long term and short termloans.

Managerial talent in the JCCB is more synonymous with deposit mobilizationcapacity instead of "COMPLETE BANKERS" with ability of asset liability

management skills. The emerging scenario shall be changed. The talent shall be

nurtured and recognized more on the lines of raising resources for profitable

deployment, Training infrastructure along with technology support shall be geared

up.

Recovery of interest income is another factor that affects the yield. Bank shall paygreater attention towards monitoring of regular payment of interest by the

borrowers. This would be achieved by reducing the NPAs of the Bank. Process of

recovery of JAKFED's default is in the pipeline and likely to be finalized during

the current financial year. This would not only reduce the accumulated losses of

the bank but recycling of funds (Rs.62.04 Crores) would further generate interest


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income for the Bank. In view of this, the Bank is likely to comply with the

provision of Section 11(i) of the B.R. Act.1949 (AACS) by the end of March 2007.

Another area of concern is "judicious cash management and management offunds. Opportunities for earning income are lost by lack of proper MIS,

insufficient cash handling procedures, ineffective remittance mechanism and

irregular monitoring system. By focusing attention on improving the funds

management system bank would be in a position to maximize the returns from

investments with negligible incremental transaction cost.

Audit Classification/ NABARD Classification: Bank is continuously

being classified under "D" Category by the Audit Team constituted by the Cooperative

Department. Reasons are high level of overdue and accumulated losses (mainly due to

JAKFED's default as not only the level of overdues increased but non recycling of these

funds also affected the further increase in interest income of the Bank, resulting into

increase in accumulated losses)

Human Resource Development Programmes: Key inputs which would make Bank's

planning as successful are those pertaining to human resources and these are being taken

care of. Taking stock of the volume and quality of the human resources available, the

future requirements of the Bank in accordance with the profile of business anticipated in

the next few years shall be planned for. Training and equipping the staff with

relevant expertise for future shall be an integral part of the plan.

Computerization: Bank in 1997-98 had set up its first fully computerized branch in Jammu

in its new Central Office Complex with a concept ofServing one to one basis". Uptill now

9 branches in Jammu City, besides all the District Offices stands already computerized.

Bank intends to have all its District Head Quarter branches fully computerized.

Ensuring continued Public confidence: Bank had been in the past taking steps to improve

public confidence and in 2003-04, set up its first ATM at Parade Branch in collaboration

with Bank of Punjab Ltd.Another ATM has been installed at Rail Head Branch during


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2004-05.Clients of the Bank having ATM Card, can now operate through ATMs of Bank

of Punjab Ltd, all over India. Bank intends to open more such ATMs in other City

Branches.

Vision 2005-2010: Any vision statement refers to a complete set of dispositions that

evolve entire trend of futuristic view. Vision is a combination of vista (V) of any

imaginary (I) situation based on impulses, synthesized and synergized (S) with intuition

(I), optimism (O) and novel (N) ideas for FUTURE.

The life of every individual is guided by the vision he has for the future and the

mission for him is to achieve the same. It is more pertinent for an institution as well as any

structure to have a clearly defined vision and determined mission to reach the goal.

Vision

The Jammu Central Co-operative Bank dedicates itself to all round of growth of PACS by

providing required credit to them. It also swears to serve the general public by extending

improved banking services and enhanced credit dispersal better than any other banking

channel.

Mission

The Jammu Central Co-operative Bank shall have the visionary look and missionary zeal

to achieve its awarded objectives. The Bank shall fine tune its functioning to challenge

the competitive on slaught from the commercial Banks and Regional Rural Banks. For

developing a mission, there shall be a two step process:-

Corporate Mission

As a corporate process, the uniqueness and distinct culture of the Jammu Central Co-

operative Bank is our experience specialization in the field of agricultural credit and vast

clientele base. Therefore, as a corporate mission, our focus would be agricultural finance

and needs of the rural people. In light of above, the corporate mission would be to double

the flow of Agriculture Credit during the next three years.


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Organization Mission

The organizational mission would be to inculcate sense of belongingness by

bringing professionalization in true sense to introduce and upgrade technology based skill

with human face and strengthen its resource base by broadening its customer base.

BOARD OF MANAGEMENT:The Board is the Governing Body of the Bank to whom the management of the affairs of

the Bank is entrusted. Formerly, the Bank was having a nominated Board but after 3rd

September 2001 there is duly elected Board of Directors of the bank .The strength of

elected members of the Board does not exceed sixteen members.The Board is elected as follow:

Members representing individual Share holder not exceeding one. Members representing the share holding Primary Agricultural Credit Societies not exceeding

twelve, elected two from each district by his class of member societies from his District.

Members representing share holding nonagriculture credit societies not exceeding one. Members representing share holding Marketing Societies not exceeding one. Members representing other share holding societies not falling in any of the above category

not exceeding one.

Of the above two seats are reserved for the members who belong to the Scheduled Castes and

other backward classes & one for a women representative. If no such persons are elected theelected members may co-opt the required number of persons entitled to such representation

with the approval of the registrar.

Chief-Executive is the Ex-office Member Secretary of the Board. Besides Govt. nominees as

may be nominated in accordance with Act and the seat shall be reserved for the nominees of

J&K state Cooperative Bank and National Cooperative Development Corporation.


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The term of office of all the elected members of the Board is three years from the date of

election. Should the election be not conducted by the Competent Authority before the expiry of

the term, the term of the Board shall be deemed to have been extended until such time within

which the Competent Authority as prescribed under the Act and Rules get the elections

conducted.


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Organizational Structure of Head Office

Head Office:

1) Mr. Mohinder Singh, Chairman2) Mr. Arun Bakshi, Managing Director3) Mr. C.M. Arora, Deputy General Manager (Banking)4)

Sh.Madan Lal Sharma, Deputy General Manager (Inspection)

5) Mr. Roshan Lal Chaudhary,Asstt. General Manager.(Administration)

6) Mr. Ganesh Chander SharmaAsstt. General Manager (Inspection & Vigilance)

7) Mr. Abdul Qyoom

Asstt. General Manager (Loan)

CHAIRMAN

AND BOARD

OF DIRECTORS

DY.GENERALMANAGER

(Banking)

ASST.GENERAL

MANAGER

(Administration)

DY.GENERALMANAGER

(INSPECTION)

MANAGINGDIRECTOR


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Area Offices:

1) Sh. H. L. Bhagat.Distt. Manager Jammu (Head Office, Parade Branch)

2) Sh. Janak Raj

Distt. Manager, Kathua

3) Sh. Ashwani Kumar Sharma

Distt. Manager, Udhampur

4) Sh. Sansar Chand

Distt Manager, Doda

5) Sh. Parmanand

Distt. Manager, Rajouri

6) Sh. Nanak Chand

Distt. Manager, Poonch

Head Office Premises:

The Head Office of THE JAMMU CENTRAL CO-OPERATIVE BANK LIMITED is located at

SEHAKRI BHAWAN, RAIL HEAD COMPLEX, JAMMU. It was inaugurated by Dr. Farooq

Abdullah, Honble Chief Minister J&K, on 9th

December, 1977.


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BRANCH NETWORK:

District Branches

Jammu 27

Udhampur 10

Doda 09

Rajouri 08

Poonch 04

Kathua 08

Sections of Head Office:

1) Banking

2) Administration (Admn +BP&D)

3) Inspection and loans

Functions of Banking:

Compiling of Statutory and Non Statutory returns General Statistics of the bank Branch Accounting Branch Control Reconciliation Banks/Branches Investments/Borrowings Computer section To prepare review note To prepare budget To prepare/regular interest rates on advances/deposits Asset Management Commercial Banking, Retail Banking


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Diversification Business operations including Deposit Borrowings Regulation Authorities Forecasting Image Building

Functions of Administration +BP&D:

Recruitment Training with officers Postings Disciplinary Action Stationary Printing/Stocking Record Keeping Asset Management Bank security Board matters Co-ordination /employees(Association) Meetings Arranging Tour Program/Diaries Insurance of Employee/Vehicle/Building.etc Vehicle Maintenance & Repairs Building Maintenance & Repairs Purchase of Safe Fixture & Furniture

Function of Inspection & Loans:

Inspection of branches Audit Statutory/Non statutory by NABARD & compliance thereof etc. Customer complaints Society Inspection/Audit All type of loans Field Monitoring


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Loan supervision Returns pertaining to loans and advances Others matter relating to SLBC & DRDA meetings Women Dev.cell Monitoring of recoveries of loans over dues & NPAs


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CHAPTER-IV

OBJECTIVE OF THE STUDY


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Objectives of the Study

1. The primary objective of the study is to know about the satisfaction of customerswith reference to car loans.

2. To study the impact of personal selling on sales of car loan product.3. To study the problems encountered in selling this product.4. To suggest remedial measures, if required.5. To understand how they deal with the car loans in overall.


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CHAPTER-V

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

Research approach and Methodology

It is a documentary process for management of projects that contains

procedures, definitions and explanations of techniques used to collect, store, analyze and

present the information as a part of research process.

TYPE OF RESEARCH

Descriptive method has been used in this research for the collection of data.

As the research is related to the study of consumer behavior, which can more effectively

be studied through direct question. Descriptive research includes surveys and fact-finding

enquiries of different kinds. The major purpose of descriptive research is description of the

state of affairs as it exists at present. In social sciences and business research we quite

often use the term Ex post facto research for descriptive research studies. The main

characteristic of this type of method is that the researcher has no control over the

variables; he can only report what has happened or what is happening. Most ex post facto

research projects are used for descriptive studies in which the researcher seeks to measure

such items as, for example, frequency of shopping, preferences of people, or similar data.

The methods of research utilized in descriptive research are survey methods of all kinds,

including comparative and co- relational methods.

SOURCES OF INFORMATION

The report mainly consists of primary data gathered through the schedule of

questions asked to the respondents directly. Information about the company, its


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product/ services, features and market share were obtained from the bank and form

other secondary sources such as magazines, journals, annual reports etc.

The interviewer approached the respondents as if the was the marketing executive

of the bank and questionnaire was formulated. The answers, queries and responses

were noted down from each respondent and accordingly the results were formed.

Geographical area of the study:The data collection for this project is restricted to the Doda city.

Statistical Tools:Tools are used for tabulation of data, percentages are drawn for generalizing the study and

graphs are used for having better pictorial representation.

Sampling Plan:- Population of the Sample:

The population of the interest was DODA. A random sample design was used.

Judgment sample was also done to ensure maximum coverage of The Jammu

Central Co-Operative Bank customers.

Sample Size:A sample of 50 respondents was taken from different places like Govt offices,

College, hospitals, local places and in some shopping centers of the area.


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Comparative analysis of the various banks in Doda.

(1) Head on comparison and the features of The Jammu Central Co-Operative Bank with

its competitors in the District.

S. No. Name of the Bank Tenure Rate of Interest

1. The Jammu Central Co-Operative

Bank

Up to 3 Years 11%

Above 3 to 5 Years 11.5%

2. State Bank of India Up to 3 Years

9.25%

Above 3 to 5 Years

11.25% floating

3. Punjab National Bank Up to 3 Years

11% fixed

Above 3 to 5 Years

11% fixed

4. J & K Bank Up to 3 Years

12.75%

Above 3 to 5 Years

13.25%

Analysis:- It is evident from above table that The Jammu Central Co-Operative

Bank levy high rate of interest compared to its arch rival competitor state bank of

India. If it is allowed for more time that the Bank will loose the hold of the

potential customers. Therefore efforts must be raised by the bank management to

reduce the rate of interest.


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(2) Margin Money required for availing the scheme

Analysis:- From the graph it is observed that the margin money required for the

sanction of loan of various banks is as:

The Jammu Central Co-Operative Bank =25%

J&K Bank =20%

Punjab National Bank =25%

State Bank of India =25%

Inference:- It is evident that margin money required is high. In order to make more

influence on potential customer the bank management should take steps in order to reduce

the margin money.

0%

5%

10%

15%

20%

25%

30%

JCC SBI J&K PNB

Series1


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(3)Repayment period of the schemes for different banks:

Analysis: - From the graph it is observed that the maximum repayment period of various

banks is listed as:

The Jammu Central Co-Operative Bank =5years

J&K Bank =1yrs to 7yrs

Punjab National Bank =5years

State Bank of India =7years

Inference: - It is inferred that the Jammu Central Co-Operative Bank offers only 5 years to

maximum repayment period while some of its competitors offer 7 years. This in order to

make the scheme more competitive, the management should made efforts to increase the

repayment period to 7 years form 5 years which is crucial and important step.

0

1

2

3

4

5

6

7

8

JCC J&K SBI PNB

Series1


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(4) Security required by the various banks

S.NO SECURITY BANKS

1. Hypothecation

All banks obey these criterias.

2. Third Party guarantee

3. In addition to above 2 Points.

One can keep liquid security

FDR/LIC/ Bank approved shares in

demat form etc.

Analysis: - Under security, all the banks obey stated features.


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(5) Eligibility required for availing loan from different banks

S.No ELIGIBILITY BANKS

1. Employees of Government / semi

Government undertaking

All banks obey these criterias for

the sanction of loan.

2. Autonomous bodies

3. Public sector undertakings

4. Individuals

5. Proprietorship concerns

6. Firms

7. Limited Companies

8. Recognized schools / Colleges.

9. Having regular and known sources

of income

Analysis: - It is evident that for eligibility all bank obey the above described criteria for

the sanction of loan.


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(6) Added information about the other banks.

(a) Jammu and Kashmir Bank..

1. J&K Bankalso provides finance to second hand cars under True

Value Scheme of Maruti Udyog Limited.

2. It charges interest rate of PLR +2.5%.

3. The repayment period is 5 years.

4. Maximum finance for second hand cars under True Value Scheme is 6 Lacks.

5. Margin money required is 25%.

(b) In addition PNB and SBI also provided finance for second hand cars.


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CHAPTER-VI

ANALYSIS &

INTERPRETATION


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(1):- Age group of the respondent?

Analysis:- It is evident from the graph that the age group of the respondents is as:

20-30 = 20%

30-40 = 40%

40-50 = 24%

Above 50 = 16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

20-30 30-40 40-50 above 50

Series1


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(2) Monthly income of the respondents who have availed the loan facility?

Analysis: - It is evident from the graph that the monthly income of the respondents is as:

Rs8000---Rs 10000 =23%

Rs10000---Rs 15000 =32%

Rs15000 and above =45%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

8000-10000 10000-15000 15000 & above

Series1


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(3):- Do you own a car?

Yes = 70%

No =30%

Analysis: - Above graph shows 70% of the respondent had own the car whereas

30 % had not owned the car.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

Series1


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(4):- Do you know the JCC Bank car loan scheme?

Analysis: - Above graph shows 78% of the respondent are aware about the car loan

scheme whereas 22 % doesnt have the clear idea about the scheme.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Aware Unaware

Series1


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(5):- Through which media you came to know about the scheme?

Analysis: - From the graph the main source of knowledge about the awareness of scheme

is:

Print Media =34%

Electronic Media =08%

Bank Branches =58%

0%

10%

20%

30%

40%

50%

60%

70%

Print media Electronic media Bank branches

Series1


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(6):- If you dont own a car, are you interested to buy one?

Analysis: - Above graph shows that 67% of the respondent are interested to buy

the car whereas 33% are not

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

Series1


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(7):- Will you go through finance?

.

Analysis: - Above graph shows that 80% of the respondent are willing to go

through finance whereas 20% are not

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Series1


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(8) Awareness about the car loan scheme of other bank?

Analysis: - The above chart shows that 87% of people are aware about the car loan

schemes of other banks while 13% are unaware about the same.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

aware unaware

Series1


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(9) Sources of knowledge about awareness of schemes of other bank?.

Analysis: - From the graph the main source of knowledge about the awareness of other

banks is:

Print Media =26%

Electronic Media =09%

Bank Branches =65%

0%

10%

20%

30%

40%

50%

60%

70%

Print media Electronic media Bank branches

Series1


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(10) Rating of The Jammu Central Co-Operative Bank car scheme with other banks?

Analysis: - From the graph the rating of Jammu central co-operative bank with other banks

is as:

Good =23%

Satisfactory =28%

Can improve =49%

Extremely Bad =0.0%

0%

10%

20%

30%

40%

50%

60%

Good Satisfactory Can improve Extremely bad

Series1


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(11) Reasons for not availing the car loan?

HRI =High rate of interest

MM =Margin Money

SRP =Short Repayment Period

AO =Already Owns a car

WBF =Will buy in near future

Analysis: - From the graph it is clear that the reasons for not availing the car loan are as:

High rate of interest =55%

Margin Money =12%

Short Repayment Period =18%

Already owns a car =9%

Will buy in near future =6%

0%

10%

20%

30%

40%

50%

60%

HRI MM SRP AO WBF

Series1


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CHAPTER-VII

RECOMMENDATIONS AND

SUGGESTIONS


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Recommendations and suggestions

From the fore going process, it is important for the bank to establish a system for the

continuous creation of high customer satisfaction. The following measures are

recommended to create growing customer base:-

1. First of all the bank should over haul the scheme to make it more competitive thanthe other banks. The bank has to definitely reduce the rate of interest, decrease the

margin money and increase the time for the repayment period.

2. They should not put any ceiling on the maximum finance so that people can easilyavail the loan for luxury sedans.

3. The bank should also provide the loan for the second hand cars in order to createstrong customers base with hand in hand to Marutis Authorized Dealers under

True Value Scheme

4. Print media adverting should be done effectively so as to move the customers tohigher levels in the decision process for using the finance scheme.

5. The bank needs to go for aggressive marketing of its products and requiresincreasing the awareness level among the customers.

6. Definitely personal selling helps in increasing the sales and clears the confusionabout the scheme among the customers. So bank should keep a separate force for

telling the schemes and policies of the same. It will definitely help the bank.

7. Employees of the bank must be trained to treat the customers more courteouslyand to be more responsive towards their needs and expectations. As the satisfied

customers will bring in more customers.


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CHAPTER-VIII

LIMITATIONS


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Limitations of the study:

After conducting the study and research, I found many limitations, some of them are as

follows:

Time factor was the major limitation. The findings of the report have been made in Doda. Care should be taken in

generalizing the report for other places.

The bias of the respondents may have introduced errors in the survey findings. Cost factor is the another constraint in my study. The data provided by the bank officials was not update hence cant be completely

relied upon.

The research study (may not) detect the true official position of the concern.


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CHAPTER-IX

CONCLUSION


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Conclusion

Even though The Jammu Central Co-Operative Bank enjoys a satisfactory market

share and customer loyalty but still it is not able to tap the potential customers because of

the certain loopholes in the scheme. With the result customers are shifting to State Bank of

India particularly for car loans as their scheme is more attractive and their severe

advertising has caused the results. The rate of interest, margin money of The Jammu

Central Co-Operative Bank is high in comparison with competitors. The repayment period

and maximum finance offered is also less with the result people wanting fewer amounts in

installments and those who want to buy luxury sedans goes out of reach of bank. As

evident the formalities required are less and the net annual income for availing loan is only

Rs 75000, which is healthy for the bank. The Jammu Central Co-Operative Bank should

also start financing second hand cars in order to laurel more customers. In addition it

should find tools to counter Rs 2599 of State Bank of India which is taking the toll in the

area and has kept the space of the mind of the potential customers busy.


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CHAPTER-X

BIBLIOGRAPHY


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Bibliography

1. Marketing Management by Philip Kotler.2. Marketing Management by Rajan Saxena.3. Marketing Research by G.C Beri.4. Annual Reports of The Jammu Central Co-Operative Bank Ltd.5. Yearly Journals of The Jammu Central Co-Operative Bank Ltd.6. Websites of The Jammu Central Co-Operative Bank

www.jcc.org.in


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Questionnaire

1. Name_____________________________________________

2. Age Group:

(a) 20-30 years____________ (b) 30-40 years____________

(c) 40-50 years____________ (d) Above 50 years__________

3. Income Bracket:

(a) 8000-10000_________ (b) 10000-15000__________

(c) 15000-20000_________ (d) Above 20000__________

4. Do you own a car?

(a) Yes___________ (b) No___________

5. Did you know about the The Jammu Central Co-Operative Bank car loan scheme?

(a) Yes___________ (b) No___________

6. Through which media, you came to know about the scheme:

(a)Print Media___________ (b) Electronic Media ___________

(c) Bank Branches________

7. If you do not own a car, are you interested to buy one?

(a) Yes___________ (b) No___________

8. Will you go through finance?

(a) Yes___________ (b) No___________

9. Are you aware about the scheme of other banks?


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(a) Yes___________ (b) No___________

10. Sources of knowledge about awareness of schemes of other bank.

(a) Print media_____________ (b) Electronic media ___________

(c) Bank Branches______________

11. Rating of The Jammu Central Co-Operative Bank car loan scheme with other banks:

(a) Good___________ (b) Satisfactory___________

(c) Can improve___________ (d) Extremely bad___________

12. Reasons for not availing the car loan:

(a)High rate of interest________ (b) Margin money_________

(c)Short repayment period_______

(d) Already owns a car___________

(e) Will buy in future_____________

Documents

kashif project12