A PROJECT REPORT

on

SATISFACTION LEVEL OF CUSTOMERS TOWARDS J&K BANK

Maqsudan Campus

{Affiliated to Punjab Technical University, Jalandhar}

Project submitted in the partial fulfillment of degree of BBA under Punjab technical university Jalandhar.

Submitted to Submitted by Ms,Shivani Gagneja Sameer Gowhar Asst.prof in CTIMIT BBA 5thsem ( Jalandhar)

94372450683

ACKNOWLEDGEMET 1

“Expression of feelings by words makes them less significant when it comes to make

statement of gratitude”

As it often happens that words run out when you are really thankful and sincere to express

your feeling of gratitude towards someone but mentioning nothing is more off sense. It gives

us immense pleasure to acknowledge gratefully the debt of all the persons who directly or

indirectly helped me for completion of this work.

First of all, I wish to express my deep sense of gratitude to Mr. Bashir Ahmed wani

(Executive and Process head) for giving me an opportunity and encouragement while

carrying out project entitled “Analysis of products and services provided by j&k bank”

Lastly, no words are enough to express my heartiest gratitude to my parents whose blessings

are inspiration in the foundation of my work.

SAMEER GOWHAR

Student Declaration

2

I am Sameer Gowhar this project report Satisfaction level of cutomers towards J&K bank

is my original work and have not been submitted in any form as a part of any other

project.Information derived from the published and unpublished work of other has been

acknowledgement in the list references in given in the bibliography.

____________ Sameer Gowhar

PROJECT GUIDE

3

This to certify that Sameer Gowhar is the student of our institution .He has done the summer training project titled Satisfaction level of customers towards J&K bank under my guidance.

______________ Shivani Gagneja

TABLE OF CONTENTS

4

Sr.No CHAPTER Page No

1EXECUTIVE SUMMARY 7_9

2

INTRODUCTION 11_31

3OBJECTIVES 33

4RESEARCH METHODOLOGY 34_37

5DATA ANAYSIS AND INTERPRETATION 39_49

6FINDINGS 51

7SUGGESTIONS 52

8CONCLUSION 53

9

LIMITATION 55

10 BIBLIOGRAPHY 56

11 ANNEXURE

5

CHAPTER : 1

EXECUTIVE SUMMARY

The banking industry is the backbone of any monetized economy. The stage of

development of this industry is a good reflection of the development of the economy.

6

The banking industry in India is governed by Banking Regulation Act of India, 1949. Since

1949, this sector has undergone phenomenal reforms due to the efforts and the vision of the

policymakers. The first phase of reform began with nationalization of the 14 banks in 1969.

At this stage, priority sectors were identified and banking support was given to them. The

second phase was the nationalization of 6 more banks in 1980. However, what can be

considered as a breakthrough in banking services was the entry to private sector banks which

was initiated in 1993. Eight new banks entered the market at this stage with art technology

and a brought with them a new wave of professionalism. It was at this time that India was

introduced to the concept of Debit and Credit cards; e-transfer of funds, ATM. The Indian

banking Industry is growing. Every bank is trying to have good client base. Every bank is

providing lot of facilities to its customer e.g. iMobile banking, touch screen banking facility

Banks in India can be categorized into non-scheduled banks and scheduled banks.

Scheduled banks constitute of commercial banks and co-operative banks. There are about

67,000 branches of Scheduled banks spread across India. During the first phase of financial

reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift

from Class banking to Mass banking. Since then the growth of the banking industry in

India has been a continuous process.

As far as the present scenario is concerned the banking industry is in a transition phase. The

Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account

for more than 78 per cent of total banking industry assets. Unfortunately they are burdened

with excessive Non Performing assets (NPAs), massive manpower and lack of modern

technology

On the other hand the Private Sector Banks in India are witnessing immense progress. They

are leaders in Internet banking, mobile banking, phone banking, ATMs. . On the other hand

the Public Sector Banks are still facing the problem of unhappy employees. There has been a

decrease of 20 percent in the employee strength of the private sector in the wake of the

Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely

to succeed in India.

CHART SHOWING INDIAN BANKING SYSTEM

Central Bank & Monetary Authority“RBI”Apex Banking Institutions

7

APEX BANKING INSTITUTION

8

EXIM

BANKNABARDNational HousingBank

HB IDBI

BANKING INSTITUTIONS

State Bank of India

Subsidiary banks

Indian Banks

ForeignBanks

Local Banks

New Banks

Old Banks

Primary Credit Societies

Central Distt. Co-operative Bank

State Co-operative Bank

Subsidiary Companies

Nationalized Banks

State Banks

Commercial Banks

Co-operation Bank

Private Sector Banks

Public sector banks

Regional Rural Banks

TYPES OF BANKS

9

INDUSTRIAL BANK

SAVING BANK

CENTRAL BANK

COMMERCIAL BANK

SCHEDULED BANKS

NON-SCHEDULED BANKS

CO-OPERATIVE BANKS

PRIVATE SECTOR BANKS

PUBLIC SECTOR BANKS

ACCORDING TO FUNCTION

ACCORDING TO LAW

ACCORDING TO OWNERSHIP

AGRICULTURE BANK

EXCHANGE BANK

CHAPTER : 2

INTRODUCTION

INTRODUCTION OF J&K BANK

10

The Jammu and Kashmir Bank Limited was incorporated on 1st October 1938 and

commenced business on 4th July 1939 at Kashmir (India). The bank was started by the

Government of Jammu and Kashmir. The bank is the 1st state owned bank in the country.

According to the extended Central laws of the state, the J&K bank was defined as a

government company as per the provisions of Indian companies act 1956. In the year 1971

the bank received the status of scheduled bank. It was declared as “A” class bank by RBI in

1976.

The new identity for J&K Bank is a visual representation of the Bank’s philosophy and

business strategy. The three colored squares represent the regions of Jammu, Kashmir and

Ladakh. The counter-form created by the interaction of the squares is a falcon with

outstretched wings – a symbol of power and empowerment. The synergy between the three

regions propels the bank towards new horizons. Green signifies growth and renewal, blue

conveys stability and unity, and red represents energy and power. All these attributes are

integrated and assimilated in the white counter-form.

The Jammu and Kashmir bank is governed by the Companies Act and Banking

Regulation Act of India.

The bank is regulated by the Reserve Bank of India and SEBI.

The bank is listed on National Stock Exchange (NSE) and Bombay Stock Exchange

(BSE)

Rated as “P1+”by Standard and Poor – CRISIL connoting highest degree of safety

Unique characteristics: one of a kind

The bank is a private sector bank despite of government holding 53 percent of equity

Plan and non plan funds, tax and non tax revenues routed through the bank.

It is the only private sector bank designated as agent of RBI for banking.

Carries out banking business of the central government.

Collects taxes pertaining to Central Board of Direct Taxes in J&K

The landmark achievements in the diversification of the banks include the sponsoring of two

Regional Rural Banks viz. Kamraz Rural Bank and Jammu Rural Bank ; permission for

dealing in foreign Exchange. The bank has been in responding to the need for technology

adaptation in meeting its commitment to the customers and offers the best services and a

wide range of products. The bank is investing in a big way in information technology;

installation of ATMs at Residency Road (Kashmir), Gandhi Nagar (Jammu), Ahmadabad and

Mera Road (Mumbai) and at other important centers; introduction of EFT and E-mail

services substantiate this fact. The tele-banking facility and anywhere banking facility

11

provided by the bank has been extended many branches. The bank is in the process of

connecting its branches through VSAT and lease lines up to the number of 85.A new concept

of customer facility Touch Screen kiosks shall be installed at many branches of the bank.

J&K BANK- MUTUAL FUND TIE UPS

The J&K bank has entered into tie ups with reputed Asset Management Companies

(AMCs) for the distribution of MUTUAL FUND products. Mutual funds have become an

attractive proposition for investors in the current context and for J&K bank it will be a good

investment option to the have in our product portfolio. This shall be an important step

towards converting the bank branch into a financial supermarket addressing all the financial

needs of the customers thus helping the bank retain the customers within its fold. The AMCs

with which the bank has entered into an arrangement are: UTI, Kotak, and Reliance Mutual

Fund.

RECOGNITION AND AWARDS

The Bank recently won the prestigious Asian Banking Award – 2005 for its ‘Development

Project Financing Programme', contributing significantly to the development of tourism

industry of the J&K State. The award was presented by the Under Secretary Finance,

Philippines, at a glittering Gala Dinner award function held at Manila, Philippines on June

17, 2005.

The annual Asian banking awards recognize and honour Asian banks for outstanding,

innovative and world-class products and programmes implemented during the previous year.

It is the most respected and premier banking awards programme in Asia Pacific region.

It is worth mentioning that the Bank has won the Asian Banking Award consecutively for the

second year. Last year, the Bank won the award for Customer Convenience Programmes and

was also given runners up certificate for its project ‘Motivating Employees for Better

Performance' under ‘operational efficiency programme' category.

12

The Bank was ranked fifth among the top ten Asian banks and 762nd among top 1000 World

banks. A renowned business journal "Business Today” ranked JK Bank among 25 top

investor friendly companies in India, the only bank in the whole Indian Banking industry,

which has been ranked in the magazine among first 10 Investor Friendly Companies. The

Bank for the second consecutive year was ranked Best Private Sector Bank in Financial

Express/Ernest and Young combined Survey for the year 2002-03 released recently. Bank

was awarded ‘Shiromani Award' for outstanding achievements in the field of banking and

commitment to national progress and human welfare during the year under report. The Bank

has figured among 24 Indian companies in Forbes Global - 100 best ‘under a billion Asia's

Rising Companies', listed by Forbes magazine in its issue dated November 01 2006. The

publication has commended J&K Bank for representing economic dynamism' in the region,

sustained growth in all spheres and an excellent track record of rewarding its shareholders.

ANALYSIS OF PRODUCTS AND SERVICES OF J&K BANK

J&K BANK PERSONAL LOAN

Purpose

13

To meet all kinds of personal needs e.g. marriage, family functions etc

Eligibility

o Permanent employees of State, Central governments, autonomous bodies, corporate,

public& private sector undertakings having minimum of 3 years confirmed service.

Loan amount

30 months gross salary or Rs. 7 lacs whichever is less

Documents required

Passport size photograph

Latest salary slip and Form 16(for salaried individuals)

For Self-employed individuals and Professionals

IT returns for the last two financial years,

Proof of Professional Qualification: Copy of highest professional degree held

Proof of official address (shop and establishment certificate/Telephone bill)

Margin &Security

NIL

Interest rates

Salaried employees of State/Central government - 15.50%

Professionals and businessmen - 16.50%

Repayment period

84 monthly installments or remaining period of service whichever is less.

J&K BANK HOUSING LOAN

Purpose

To provide loan for construction, renovation, purchase of readymade house, purchase of land

Eligibility

14

Employees of Govt., Semi-Govt. Dept., Civic Bodies, PSU's with minimum 5 years

service.

Reputed Businessmen with minimum 5 years standing.

Professionals & Self employed like Doctors, Engineers, CA’s, Advocates with

minimum 5 years standing

Loan amount

For Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower.

For repairs/renovation 20 months net salary, subject to a maximum of Rs.10.00 Lacs.

For purchase of land: 20 months net salary/income subject to maximum of Rs.5 Lacs

within J&K and Rs10.00 Lacs outside J&K.

Documents required

Passport size photograph.

Proof of residence. (This applies only to new or non-bank customers, and could be

either a PAN identity card, voter identification card or passport)

Bank account Statement or passbook, for the last six months

For employees or people in service, you also need to provide.

Salary certificate and other information, if any, about your repayment capacity.

Form 16 or a copy of the Income Tax Returns for the last 2 years

For self employed and other IT assesses.

IT returns for the last 3 years Receipts of advance tax paid.

Any other information about your repayment capacity.

In addition to the above mandatory documents, you are also required to furnish one or

more of the following documents wherever applicable.

Letter of allotment from the housing board or society.

Security

Primary: Mortgage of the house Property to be purchased / constructed.

Collateral: Third party Guarantee of one person, or assignment of LIC Policies,

pledge of Govt. securities etc.

Margin

15% for construction/purchase of building house flat.

20% for renovation/purchase of land.

Interest rates

15

Repayment

period

Floating Rate of interest Fixed Rate of interest

Up to Rs.20

lacs

Above Rs.20

lacs

Up to Rs.20

lacs

Above Rs.20

lacs

Up to 5 yrs 10.75% 12.75% 11.50% 13.75%

Above5 up to 10 11.25% 13.50% 12.50% 14.50%

Above 10 up to

15 yrs12.25% 13.75% XXX XXX

Above 15 up to

20 yrs12.50% 14.25% XXX XXX

Repayment

For construction of new house 20 years including 9 months moratorium in equal

monthly installments.

For addition / Renovation 7 years including 2 months moratorium in equal monthly

Installments

J&K BANK CAR LOAN

Purpose

Finance under this scheme shall be available to purchase new car (any make or model)

Eligibility

16

Employees of Government / Semi Government., Civic Bodies, PSU's / Individual /

Proprietorship Concerns / Firms / Limited Companies known to the Bank.

Net annual income should not be less than Rs.60, 000 per annum. The applicant

(individuals) should have a valid driving license in his/her own name.

The employees of the State Govt/Semi Govt. Departments/Other Organizations

should have a minimum of 5 years active service in the organization/department.

Quantum of loan

24 months net monthly income/salary subject to maximum finance of Rs 10.00 lacs.

Documents

Application form

Photograph

Proof of bank account continuity

One income proof for the last two years (ITR, Form 16, salary slip)

One proof of identity (driving license / voters' identity card / passport / PAN card /

photo credit card / photo ration card)

One proof of residence (laminated driving license / voters' identity card / photo ration

card / passport /utility bills for the last 3 months / company ID - limited company or

government / PAN    card)

Security

Primary: Hypothecation of vehicle Financed.

Collateral: Third party guarantee of one person.

17

However, no Third Party Guarantee is required in respect of government employees drawing

salary through the bank and maintaining account with us or where drawing and disbursing

authorities undertake deduction of required monthly installments from their salaries.

In respect of others like professionals, businessmen etc. guarantee of one person good for the

amount is obtained along with an affidavit to the effect that the prospective borrower is not

defaulter with any bank/ branch of the bank.

Interest rates

Up to Rs.4.00 lacs 12.50%

Above Rs.4.00 lacs 13.50%

Repayment

Within 7years

Car Loan for Used Cars

Purpose

The finance under this scheme shall be available for purchase of: An old car / jeep

(not more than 5 years old). (Any make or model)

Eligibility

Permanent employees of Government/Semi-Government Undertakings, Autonomous

bodies, Public Sector Undertakings, Private Companies or reputed establishments.

Professionals or self employed individuals, Proprietorship Concerns. Partnership

Firms, Private /Public Ltd Co.

Age Criteria

Salaried Individual:

The applicant should be at least 21 years old at the time of application, and below 58

years of age at the time of maturity of the loan.

18

For institutions, where retirement age is 60 years, the upper age limit shall be 60

years.

Self- Employed Individual At least 3 years in business.

Partnership Firm should have been in existence for at least 3 years.

Private/Public Ltd Co. Limited Companies should have been in existence for at least 3

years.

Maximum Loan Amount

2.5 times of the net annual income or 15 lacs, whichever is lower. If married, the spouse's

income also considered provided the spouse guarantees the loan. Loan amount for used

vehicles shall be subject to a maximum limit of Rs. 15 lacs.

Documents

Application form

Photograph

Proof of bank account continuity

One income proof for the last two years (ITR, Form 16, salary slip)

One proof of identity (driving license / voters' identity card / passport / PAN card /

photo credit card / photo ration card)

One proof of residence (laminated driving license / voters' identity card / photo ration

card / passport /utility bills for the last 3 months / company ID - limited company or

government / PAN    card)

Security

Primary: Hypothecation of vehicle to be purchased.

Collateral: No third party guarantee required in respect of employees drawing salary through

our branches & where letter of undertaking from employer is available. Third Party

Guarantee of two persons for all other applicants. Third Party Guarantee may be waived off

in case of existing account holders having good reputation. Instead Post Dated Cheques may

be accepted.

Margin

25% for vehicles having age less than 3 years

30% for vehicles having age of 3 years and above up to 5 years.

19

Interest rates

Up to 4 years 14.75%

Above 4 years 15.50%

Repayment Period

Maximum repayment period of 72 months for vehicles having age less than 3 years.

Maximum repayment period of 48 months for vehicles having age of 3 years & above

5 years.

J&K BANK EDUCATIONAL LOAN

Purpose

To provide finance for education

Loan amount

Loan up toRs.7.50 Lacs is provided for studies in India.

20

Loan up to Rs.15.00 Lacs is provided for studies abroad.

Courses Financed

Graduate / P.G Courses in: Medicine, Surgery, Engineering, Hotel Management,

Design, Architecture, Bio-chemistry, Agriculture, Veterinary etc.

P.G Courses in: Business Management, Chartered or Cost Accounting, Company

Secretary Ship.

Eligibility

Student should be an Indian national; the student should have passed the qualifying

examination for admission to the courses& should have secured admission to

professional/technical courses.

Employed person intending to ,improve their educational qualification and/or receive

training in modern technology in India or abroad can also be assisted under this

scheme provided training offers prospects of better placement.

Documents required

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

Borrower's Bank account statement for the last six months

Income tax assessment order, of last 2 year

Proof of Income (i.e. Salary slips/ Form 16 etc)

Margin

For loans up to Rs. 4 lacs - nil

For loans above Rs. 4 lacs Studies in India - 5% Studies abroad - 15%

21

Security

Primary: Personal guarantee of borrower.

Collateral: security equal to amount of loan.

Repayment

Course period + 1 year or 6 months after getting job, whichever is earlier. The loan is to be

repaid in 5 to 7 years after commencement of repayment. If the student is not able to

complete the course within the scheduled time, extension of time for completion of course

may be permitted for a maximum of two years.

SOME OTHER SPECIALISED FINANCE SCHEMES

OF J&K BANK

APPLE SCHEME

22

ROSHNI FINANCING SCHEME

Objective

- To provide finance to occupants desirous of acquiring freehold rights of the land

under their occupation, as per the SRO-64 dated 5th March 2007, issued by Govt of

Jammu & Kashmir.

LOAN FOR TRADE&SERVICE

Purpose

To provide hassle free working capital finance to the borrowers.

Nature of facility

Cash Credit or overdraft

Eligibility

- Retail and wholesale traders and other business enterprises, with a satisfactory track

record of 3 years.

J&K BANK DASTAKAR FINANCE:-

Objective

To promote trade, industry and to preserve the tradition arts and crafts of the state devised a

scheme aimed at the financial needs of the artisan community aptly called J & K Bank

dastakar finance.

Purpose

To make the credit hassle free no third party \collateral guarantee is required.

Nature of facility

The disbursement is phased in quarterly installments and aligned to the status of work in

progress [WIP].

J&K BANK ALL PURPOSE AGRI TERM LOAN:-

Objective

23

The objective has been to provide easy finance to needy farmers through regular channels

of finance and to wean them away from the exploitative circle created by the non banking

intermediaries.

Purpose

The product aims to cater to the needs of the small farmers within very little land holdings

in the rural and semi urban areas of the J & K State.

Nature of facility

This product is available for farmers of cereal crops and vegetables, orchids. It is also

available for unemployed rural youth for setting up of small dairy, poultry units, in

purchase of seeds, pesticides, fertilizers, plough and farm machines.

J&K BANK KHATAMBAND FINANCE:-

Objective

Khatamband craft is a specialized scheme that provides employment to few thousand

people living in the J & K State. A specialized scheme was customized to the people

according to the needs of the Khatamband craftsmen.

Purpose

To cater to the needs of khatamband craftsmen.

Nature of facility

The finance is provided as a revolving facility, eligible for enhancement every year on

the basis on the turn-over. The product has been intentionally targeted at crafts men aged

between 18-55 years, no collateral security is asked for and the documentation process

has been kept simple

JK BANK ZAFRAN FINANCE:-

24

With a view of preserving this prized spice, JK Bank tailored a specific product named JK

Bank Zafran Finance.

Purpose

Its purpose is to provide adequate ,timely and need based finance to Saffron growers.

The scheme is for all saffron growers, especially the smaller and Marginal ones including

even the contract farmers engaging in or intending to start its cultivation.

Nature of facility

The quantum of finance is to proportionate to the land holding of a grower. The product

also provides an additional finance for post harvest and packaging. The disbursement is

done in two phases; 60 % in the first year and 40 % in the second ,when the growers are

in need of funds.

Repayment

The repayment of the advance is scheduled within four year growing cycle of saffron.

OTHER FACILITIES AT THE J&K BANK Ltd:

o Automatic Teller Machines.

o Locker Facility.

o Mobile ATM Service.

o The J&K Bank Credit Cards.

o The J&K Bank Global Access Debit Cards.

o SMS Banking

o Anywhere banking facility

o The J&K bank is the only bank in India which provides Amaranth Yatra Tickets

to pilgrim

Competitors

25

STATE BANK OF INDIA

State Bank of India (SBI) was nationalized in July 1955 under the SBI Act of 1955. The State

Bank of India is the India’s largest commercial bank. The State Bank of India, the country’s

oldest Bank and is today going through a momentous phase of Change and Transformation –

the two hundred year old Public sector behemoth is today stirring out of its Public Sector

legacy and moving with an agility to give the Private and Foreign Banks a run for their

money.

The Bank is forging ahead with cutting edge technology and innovative new banking models,

to expand its Rural Banking base. It is the only Indian bank to feature in the Fortune 500 list.

With about 8500 of its own 10000 branches and another 5100 branches of its Associate

Banks already networked, today it offers the largest banking network to the Indian customer.

The Bank is also in the process of providing complete payment solution to its clientele with

its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards,

mobile banking, etc.

\With four national level Apex Training Colleges and 54 learning Centers spread all over the

country the Bank is continuously engaged in skill enhancement of its employees. Some of the

training programmes are attended by bankers from banks in other countries.

PUNJAB NATIONAL BANK

26

Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies

Act with its office in Anarkali Bazaar Lahore. The Bank, founded by Dyal Singh Majithia

and Lala Harkishen Lal is the second largest government-owned commercial bank in India

and is serving more than 3.5 crore customers through 4540 offices including 421 extensions

counters. PNB offers wide variety of banking services which include corporate banking,

personal banking, industrial banking, finance for trade and international banking. PNB is one

among 300 global companies and seven Indian companies which are expected to emerge as

challengers to world’s leading blue chip companies. The bank features at 1308 position

among Forbes Global 2000 list of global giants and fast growing companies. At the same

time bank is also conscious of its social responsibilities by financing agriculture and small

scale industries.

Bank has been focusing on expanding its operations outside India and has identified some of

emerging economies which offer large business potential. Bank has set up representative

offices ay Almaty, Kazakhstan, SHANGHAI, China and London.

Bank has also launched the concept of Anytime, Anywhere banking. PNB has recently

introduced online utility bill payment. Another step taken by PNB is the launch of

Debit/ATM card. The card can be used to withdraw cash at more than 25000 ATM where the

maestro logo is displayed.

ICICI BANK

ICICI Bank - Industrial Credit and Investment Corporation of India is India's largest private

sector bank in market capitalization and second largest overall in terms of assets. ICICI Bank

27

has total assets of about USD 100 Billion (end-Mar 2008), a network of over 1308 branches

and offices, about 3950, and 24 million customers (as of end July 2007) and has over 33,000

employees.

The Bank now has wholly-owned subsidiaries, branches and representatives offices in 18

countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in

the UK, Canada and Russia, offshore banking units in Singapore and Bahrain, an advisory

branch in Dubai, branches in Sri Lanka, Hong Kong and Belgium, and rep offices in the US,

China, United Arab Emirates, Bangladesh, South Africa, Indonesia, Thailand and Malaysia

particular, the bank is targeting the NRI (Non Resident Indian). In 2008 ICICI launched

iMobile a comprehensive mobile banking solution. iMobile is considered to be a

breakthrough in the innovation in Indian banking which allows a customer to do all possible

transactions through a GPRS enabled mobile phone.

HDFC BANK

HDFC Bank is one amongst the firsts of the new generation; tech-savvy commercial bank of

India was incorporated in August 1994 after the Reserve bank of India allowed setting up of

Banks in the private sector. The Bank was promoted by the Housing Development Finance

28

Corporation Limited a premier housing finance company (set up in 1977) of India. Net Profit

for the year ended March 31, 2006 was Rs. 1,141 corers. Results of the latest quarter ended

June 2007, indicate that the bank continues to grow in a steady manner. HDFC was promoted

with initial share capital of Rs.100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country

through the provision of housing finance in a systematic and professional manner, and to

promote home ownership. Another objective is to increase the flow of resources to the

housing sector by integrating the housing finance sector with the overall domestic financial

markets.

Organizational Goals:-

a) Develop close relationships with individual households

b) Maintain its position as the premier housing finance institution in the country

c) Transform ideas into viable and creative solutions

d) Provide consistently high returns to shareholders

SWOT ANALYSIS

The term SWOT is the acronym made up of four words viz, Strengths, Weaknesses,

opportunities and Threats. The first two variables are internal to an organization whereas the

last two are external. The value of SWOT analysis cannot be over emphasized. It is rightly

29

said” winners recognize their limitations but focus on their strengths; losers recognize their

strength but focus on their limitations.”

SWOT Analysis

________________________________________________________________

__

Internal Environment External

Environment

____________________

____________________

Strengths Weaknesses Opportunities Threats

Internal factors

Strength:

Strength is defined as something which is positive, good or such other characteristics that

give to the company an edge in the competitive market. The Bank has one unique source of

strength which if cultivated carefully, can be virtually impregnable – its roots are in the state,

and as such it shares with the people of Jammu and Kashmir a kinship, and empathy for the

cause of the state’s progress, which no outside bank ever can. The J&K Bank also performs

the leaders role in the J&K. As a leader the Bank continued to discharge its Lead Bank

responsibility in 8 out of 14 districts of J&K State satisfactorily.

Weaknesses:A weakness refers to something which one lacks. It is something which restricts

us to move forward. While doing my summer training in the J&K Bank I found the following

weaknesses;

30

(i) There is less competent staff at lower level.

(ii) Weak competitive capability because of lack of lesser advertisement budget.

(iii) Labour problems because of militancy in the state which results in strikes and tense

conditions.

(iv) The activities of Branch managers are not effectively monitored.

External factors

Opportunities:

Opportunities are entirely external concerning the business environment. Opportunities do

not come very frequently and therefore, the management must exploit them to the maximum

extent without any delay. Each opportunity should be analyzed in terms of its profitability.

The opportunities analyzed by me for the J&K Bank are;

(i) There is agriculture market which is still fully not trapped by the J& K

Bank .There are a lot of schemes regarding agriculture such as post harvest

, preservation scheme and many other schemes

(2) The historical activities of the state such as carpet industry, dastakar

finance, khatamband schemes and many other activities of historical importance

are not still fully covered by J&K Bank

Threats:

With every opportunity, there also goes alongside certain threats which may adversely affect

the profitability and competitive capability of an enterprise. The threats analyzed are;

(i) Competitors like HDFC Bank, Central Co-operative Bank, ICICI Bank etc.

may enter in the field to provide finance facility.

There may be change in the policies of the state government.

31

CHAPTER : 3

OBJECTIVES

To check the customer satisfaction level towards j&k bank.

To know the perception of consumer towards J& K bank and its product and services

32

To know customers relationship management strategies by J&K bank

RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and

methodology can properly refer to the theoretical analysis of the methods

appropriate to a field of study or to the body of methods and principles particular to

a branch of knowledge. A Research methodology has a specified framework for

33

collecting the data in an effective manner. Research methodology means a

"defining a problem, defining the research objectives, developing the research plan,

collecting the information, analyzing the information and presentation of findings."

Such framework is called” Research Design".

PROCESS OF RESEARCH :-

A)Defining the problem

B) Developing the research plan

C) Collection of Data

D) Analysis and Interpretation of Data

E) Presentation of findings

A) Defining the problem and research objectives

My research problem is to study the customer satisfaction of people in j&k bank.

B) Developing the Research Plan

The development of research plan has following steps:

1. Data source

2. Research approach

3. Research instrument

4. Sampling plan

i) Sample unit

ii) Sample size

iii) Contact methods

6. Questionnaire Design

(1) Data Source: The researcher can get two types of data:

a) Primary Data:- a data which did not exist earlier and is being collected by the researcher

first time for its specific objectives. In other words, direct personal interview is conducted

with the help of questionnaire.

b) Secondary data:- Any data which have been collected earlier for containing past or

recent past information like bank's brochures, some purpose are the secondary data. Indirect

collection of data from sources annual publication, books etc.

34

Secondary sources used are:

Text books

Internet sites

Newspaper articles

Broachers

(2) Research Approach :-

Survey is best suited for descriptive and analytical research. Survey are undertaken to learn

about people's knowledge, beliefs, preferences, satisfaction and so on and to measure these

magnitudes in the general public.

(3) Research instrument

Questionnaire:

Questionnaire (also known as self-administered survey) is a type of statistical survey handed

out in paper form usually to a specific demographic to gather information in order to provide

better service or goods. A document that contains a set of questions that has been

specially formulated as a means of collecting information and surveying opinions, etc on a

specified subject or theme, etc .A questionnaire was constructed for my survey.

4. Sampling plan:

Sample is a group of few items which represents the population or universe from where it has

been taken. The sampling plan calls for three decisions;

a) Sample unit

b) Sample size : 100 customers

c) contact methods

a) Sample unit :-

35

The target population must be defined that has to be sampled. It is necessary so

as to develop a sample frame so that everyone in the target population has an

equal chance of being sampled. I have completed my survey in j&k bank branch

Sadiq abad cluster 1 in anantnag zone.

b) Sample size : - how many people have to be surveyed?

Generally, large sample size gives morereliable results than small samples. The

sample consisted of 100 customers.

C) Contact methods :-

Once the sampling plan has been determined the Questionnaire is how the

subject should be contracted i.e. by telephone interview, personal interview,

observation, mail etc. here, in my survey, I have contacted the respondents

through personal interviews.

(5) There are 10 questions in my questionnaire and I asked all these questions

from 100 customers.

(c) Collecting the information

After this, I have collected the information from the respondents with the help of

Questionnaire.

(d) Data Analysis and Interpretation

The next step is to extract the pertinent findings from the collected data have tabulated the

collected data and developed frequency distributions.

e) Presentations of findings

36

LIMITATIONS

The sample size and other parameters were selected accordingly so as to finish the

work within the given time frame.

37

The information given by the respondents might be biased because some of them

might not be interested to give correct information.

Some of the respondents of the survey were unwilling to share information.

The research was carried out on in-house customers. i.e. within the branch in the

small city of Anantnag.

the response may vary by including the respondents from other branches in other

areas as well

38

CHAPTER : 4

DATA ANALYSIS

Banks operating in Anantnag J&K:-

39

Name of Banks and No of Branches Operating in District

58

10

8

8

62

8

J&K Bank

SBI

PNB

CooperativeBankCanara Bank

HDFC

KamarazRural Bank

There are a number of banks operating in the Anantnag District of J&K state which includes

J&K Bank, SBI, Canara Bank, Cooperative Bank, Punjab National Bank, HDFC Bank etc.

The J&K Bank is among the most prominent bank with 29 branches in the town and one

zonal office. The SBI has 5 branches; PNB, Cooperative and Kamaraz Rural Bank are having

4 branches each, Canara bank has 3 and HDFC Bank has 1 branch.

Branch wise comparison

J&K

Bank

SBI PNB Cooperative Canara KRB HDFC Total

58 10 8 8 6 8 2 100

1.Which account you are having in J&K bank ?

40

Current

a/c

Saving

a/c

Fixed deposit

a/c

Demat

a/c

Joint bank

a/c

15% 60% 10% 10% 5%

current saving fixed deposit demat joint bank a/c

no of accounts

2)Q Is J&K Bank providing 24 hour atm services in J&K State

41

Agree Disagree Neutral Strongly agree Strongly disagree

20% 10% 5% 45% 20%

ATM services

agreedisagreeneutralstrongly agreestrongly disagree

INTERPRETATION:

From the survey it was found amongst 100 respondents.in this statement 40% of the Respondants are strongly agreed to this point that j&k bank Is providing 24 hour AtmServices to the customers and 35% of the respondants are disgreed to this statement.

3)Q Is J&K bank having good relation with its customers

42

Agree Disagree

95% 5%

dis Agree

agree

Customers relations

Customers relations

INTERPRETATION

From the survey it was found amongst 100 respondents.in this statement 95% of the Respondants are strongly agreed to this point that j&k bank Is having good relation With its customers and 5% of the respondants are disagreed with this statement.

4)Q Are you satisfied with customer complaint management of J&K bank Extremely Satisfied Neither Dissatisfied Extremely

43

satisfied satisfied nor dissatisfied

dissatisfied

55% 20% 10% 5% 10%

extremely satisfied

satisfied

neither satisfied nor dissatisfied

dissatisfied

extremely dissatisfied

customer satisfac-tionSeries 2Series 1

INTERPRETATION :From the survey it was found amongst 100 respondents.74% of respondants are totally satisfied with the services provided by j&k bank.3 % are somewhat satisfied and 8% ofRespondants are dissatisfied whereas 15% are very satisfied with the customer complaint Management of j&k bank.

Q Do you think J&K bank will lead always in Jammu and Kashmir State

44

1 . yes

2. No

services

YesNo

INTERPRETATION :

From the survey it was found amongst 100 respondents.95% of respondants said that the J&k bank is providing very fast services to its customers and 5% are not agreed to thisStatement.

6)Q: Is J&K bank providing beneficial products to its customers 1.yes

45

90%

95%

5%

2.No

products of j&k bank

yesNo

INTERPRETATION :

From the survey it was found amongst 100 respondents.90% of customers say thatJ&k bank is providing beneficial products to its customers and 10% say that the products Are not beneficial to them.

7)Q : Do you think J&K bank has very good customer services in all branches

46

10%

1.Agree

2. Disagree

customer services in all branches

agreedisagree

INTERPRETATION :

From the survey it was found amongst 100 respondents.85% of customers say that j&kBank is providing very good customer services in all branches and 15% are not agreed With this statement..

47

85%

15%

8)Q Are you satisfied with the security arrangements provided by J&K bank

to its customers

1.satisfied

2dissatisfied

satisfied dissatisfied

security arrangements2security arrangements1

INTERPRETATION :

From the survey it was found amongst 100 respondents.94% of customers say that theyAre satisfied with security arrangements of j&k bank and 6% say that security aarrangements are not so good in j&k bank..

48

94%

6%

9)Q Is J&K bank providing international quality and financial solutions to its

customers?

Strongly

Agree

Agree Neither agree

nor disagree

Disagree Strongly

disagree

45% 25% 5% 10% 15%

financial services

strongly agreeagreeneither agree nor disagreedisagreestrongly disagree

INTERPRETATION :

From the survey it was found amongst 100 respondents.65% of customers say that j&kBank provides international quality and financial solutions to its customers.20% agree,11% Are dissatisfied and 4% are on the statement that jk bank is not providing quality and financial solutions to its customers.

.

49

10)Q Overall, how satisfied are you with J&K bank products Extremely satisfied

Satisfied Neither satisfied nor dissatisfied

Dissatisfied Extremely dissatisfied

55% 20% 10% 5% 10%

extre

mely sa

tisfied

satisfi

ed

neither

satisfi

ed nor d

issati

sfied

dissati

sfied

extre

mely diss

atisfi

ed

INTERPRETATION :

From the survey it was found amongst 100 respondants.45% of respondents are highly satisfied with the products given by j&k bank and 32% respondents are very satisfied .5% and 7% of respondents are highly unsatisfied with the products given by j&k bank.

50

FINDINGS

Respondants are strongly agreed to this point that J&K bank Is providing 24 hour AtmServices to the customers.

Mostly the people of Jammu and Kashmir are having savings account in J&K bank .In a survey 90% of the respondants responsed that they are having savings account in J&K bank .

Almost all the people of J&K are having good relations with J&K bank And people of Jammu & Kashmir are fully satisfied with the customer complaint management of J&K bank.

It is clear from the response of the respondants that J&K bank is providing beneficial products and a quality services to its customers and this is the reason that J&K bank is the leading bank in J&K.

From the survey 85% people of J&K agree with this statement that J&K bank has same customer services in all branches and are fully satisfied with the Security arrangements of J&K of bank.

J&K bank provides international quality and people are totally satisfied with the products and services provided by J&K bank.

SUGGESTION

51

1. Though the J & K bank is providing 24 hours ATM facility but it should install more more ATM’s in the valley. The no. of ATMs should be increased. 2.J&K Bank should make more easy procedure for saving accounts.

3. The bank should standardize its services at all branches so that consumer feels convenient in visiting any of its branches.

4 .They should concentrate on effective complaint management.

5. They should strengthen their security arrangements.

52

CONCLUSION

Though the conclusion of whole project is that the customers are fully satisfied with J&K

Bank .Jammu and Kashmir bank is the leader bank in Jammu and Kashmir state . It is

tonly private sector bank designated as agent of RBI for banking. The bank is a private

sector bank despite of government holding 53 percent of equity.J&K bank always tries

To provide better service to be always as a leader bank in Jammu and Kashmir .J&K

bank is using a great technology machines to provide systematic services and solutions to

its customers.

53

CHAPTER: 5

54

BIBLIOGRAPHY

1.www.google.com

2.www.jkbank.net

3.www.wikipedia.com

ANNEXUR E

55

QUESTIONNIARE

1.which account you are having in J&k Bank

1.Current a/c

2.Saving a/c

3.Fixed Deposit A/c

4.Demat a/c

5 Joint bank a/c

2)Q do you think J&K Bank will lead always in Jammu and Kashmir state

1 . yes

2. No

3)Q Is J&k Bank providing 24 hour atm services in J&K 1.agree 2.disagree 3.neutral 4.strongly agree 5.strongly disagree

4)Q Is J&K Bank having a good relation with its customers a.Agree.......................

56

b.Disagree....................

5)Q how much you are satisfied with customer complaint management of J&K Bank 1.Extremely Satisfied

2.Satisfied

3.Neither Satisfied Nor Dissatisfied

4 .Dissatisfied

5.Extremely Dissatisfied 6)Q .Do you think J&K Bank is very fast in providing services to its customers : 1.yes 2.No

7)Q : is J&k bank having a very good customer services in all branches 1.Agree

2. Disagree

8)Q are you satisfied with the security arrangements provided by J&k bank to

its customers

57

1.satisfied

2dissatisfied

9) Q Is J&K Bank providing international quality and financial solutions to its

customers

a. Strongly Agree

b. Agree

c.Neither Agree Nor Disagree

d. Disagree

e Strongly Disagree

10)Q Overall, how satisfied are you with J&K Bank products a. Extremely Satisfied b. Satisfied c. Neither Satisfied Nor Dissatisfied d. Dissatisfied e. Extremely Dissatisfied

58

59