Jk bank project

A
Project Report
On
STUDY OF
CUSTOMER SATISFACTION OF JAMMU & KASHMIR BANK

“A CRITICAL AND COMPREHENSIVE APPRAISAL OF

CUSTOMER SATISFACTION”

For

THE JAMMU & KASHMIR BANK LTD.

IN PARTIAL FULFILLMENT FOR THE

DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED

BY

IMRAN MOHAMMAD RATHER

ROLL NO.2010MBE09

SHRI MATA VAISHNO DEVI UNIVERSITY

KATRA, JAMMU

ACADEMIC YEAR: 2010-2012

PREFACE

MBA is a stepping stone to management career in order to develop a healthy management and

administration skill among potential managers. Someone has rightly said that field research is far

better than the classroom training. To achieve partial and concrete results, it is necessary that

theoretical knowledge must be supplemented with practical environment.

This research project is a part of the Business Administration Course being taken up at School of

Business Economics, Shri Mata Vaishno Devi University.

I was provided opportunity to undergo training at The Jammu & Kashmir Bank Ltd. at its Main

Branch Pulwama.

The topic assigned to me was:

CUSTOMER SATISFACTION OF J&K BANK

“A critical and comprehensive appraisal of attitude perception and satisfaction level of customers”

This project has been of great help in providing me an insight in to the real life working of an

organization; it gave me a chance to apply, all I had learnt to practical situations, enhancing my

understanding and image of the business world. This experience in decision making and practical

application of knowledge has contributed greatly to my growth both as a person and man.

STUDENT DECLERATION

I declare that project entitled “CUSTOMER SATISFACTION OF J&K BANK”

A critical and comprehensive apprising of customer attitude, perception and satisfaction level

complete as value added and as a part of curriculum studies, is my own work. I also undertake that

the work is purely academic and no part has been copied or taken from anywhere.


M.B.A (BE)

ACKNOWLEDGMENT

It gives me immense pleasure to present the report of my project titled “CUSTOMER

SATISFACTION OF J&K BANK”.

This work would not have been possible without the assistance and guidance of a no. of people .I

would like to take this opportunity to thank each and every one of them.

At first I would like to thank the management of the Jammu & Kashmir Bank Ltd. for providing

me an opportunity to work as summer trainee with their Main Branch at Pulwama.

I also express my sincere gratitude to my guide Mr. Ubaid Ashraf (Manager at Main Branch

Pulwama for taking keen interest in my training/project work and giving me valuable guidance at

every stage.

I can‟t do justice with this project without thanking those entire customers whom I interviewed and

interacted during this period.


MBA(BE)

CHAPTER ONE

INTRODUCTION

TO

THE JAMMU & KASHMIR

BANK LTD.

CHAPER TWO

BANK AT A GLANCE

CHAPTER THREE

CUSTOMER

SERVICES

CHAPTER FOUR

FUNCTIONS OF BANK

CHAPTER FIVE

RESEARCH

OBJECTIVE

CHAPTER SIX

RESEARCH

METHODOLOGY

CHAPTER SEVEN

SUMMARY OF FINDINGS

CHAPTER ELEVEN

SUGGESTIONS

CHAPTER TWELVE

ANNEXURE

&

BIBLIOGRAPHY

EXECUTIVE SUMMARY

Objective of the research:

1. To know the customers perception of service provided by J&K Bank.

2. To identify the customer grievance if any.

3. To examine the banker-customer relationship.

4. To seek suggestion for improvement of service for customer satisfaction.

Source of information:

Primary source:

Through structured questions.

Face to face interview.

Secondary source:

Records maintained by the bank.

Websites.

Research Methodology:

The study pertains to behavior aspects such as their perception, attitude and expectations towards

the benefits and service of Jammu & Kashmir bank Ltd. An exploratory research design was

adopted to conduct the study. Field survey was carried out to collect necessary data.

Data used:

Both primary and secondary data was used .Bank broaches, diaries, books, other written material

and bank‟s website were used to collect secondary data.

Questionnaire:

A structured type of schedule of questions was used with both closed-end questions to collect the

response from respondents.

Data collection:-

Field survey method was used to collect the data. The respondents were given a copy of

questionnaire. They were given some instructions to ensure high response rate and eliminate

wrong responses. The interview noted down the responses and a few descriptive interviews.

Sample size and procedure:

The total sample size was 200.The customers were approached mostly at their working places. The

customer with different profession were chooses, however the majority was those of businessmen.

Random sampling was carried out.

Summary of findings:

1. The J&K Bank is the leading bank in the surveyed area with the marked share of 93%.

2. 52.69% of the respondents ranked the bank good

3. 82.25% of the customers are satisfied with the bank.

4. Among the dissatisfied customers majority is of those who attributed it to the rude

behavior of some of the employees.

5. Majority of the customers demand quick service in the bank.

Recommendations:

1. Marketing side of the bank needs improvement.

2. Much improvement is needed in HRD Department. The employees should be trained about

new business trends and their motivation level should be improved.

3. The bank should come out with new and innovative financial and deposit products in order

to satisfy customers.

4. There should be no delay in customer service.

5. The bank should provide easy and quick financial facilities to small scale industries,

retailers.

COMPANY PROFLE

Moneylenders have been part of Indian society since ancient times. Modern banking in India began

some 200 years ago. First Bank in India was established under the name and style of bank of

Calcutta in 1806(a presidency Bank).In 1840 Bombay presidency Bank and in 1843 Madras

presidency Bank came into existence. In 1921, these three presidency Banks were merged as

imperial Bank of India. In 1955, imperial Bank was renamed as State Bank of India.

Aimed this scenario, entire banking in the State of Jammu and Kashmir was performed by

traditional moneylenders and that too at exorbitant interest rates. At the same time some banks like

Punjab National Bank, Grindalay‟s Bank and imperial Bank of India functioned in the State to a

limited extent. The role of these banks was reduced to the people of the State owing to the

statutory limitations. Under this Scenario banks could not ameliorate the financial social position

of the people of the State.

To overcome this crisis, the then Maharaja of the State, His Highness Maharaja Hari Singh,

conceived the idea to establish a bank to help people of the State to come out of the economic

backwardness. The scheme of forming the bank was formulated by an eminent banker sir Sorabji

N.Pochkanwala, the then Managing Director of Central Bank of India. The outcome of the efforts

of Sir Sorabji resulted in the establishment of the Jammu & Kashmir Bank Limited on October 1,

1938.And the Bank formally commenced its business on July 4, 1939.The bank opened its first

branch at Residency Road, Srinagar. Encouraged by the support of public, it opened its another

branch at Jammu. By 1946, the number of branches of the bank went up to 12.

Precisely, banking in the State of Jammu & Kashmir actually began in 1939, when Jammu &

Kashmir Bank started its operation. Since then, with the continuous changes taking place in the

financial services scenario, the banking in Jammu & Kashmir went under tremendous. Besides

exhibiting its commercial character, the bank has been meeting the social obligation of the people

of the State too.

The Jammu & Kashmir Bank is the first of its nature and composition as a State owned bank in the

country. The State government besides contributing half of the issued capital also appointed the

bank as bankers for general banking and treasury business of the State government. In its

formative years, the bank had to coup up several serious problems, particularly around the time of

independence, when two of its branches at Muzaffarabad and Mirpur fell to the other side in

1947.However, the State government came with assistance of Rs 6.00 lacto meet the claims.

Following the extension of Central laws to the State of Jammu & Kashmir, the Bank was defined

as a government companies Act 1956.

The real growth of its operations and business started after 1969, the area of nationalization of

major banks, when the union government announced control on banking. It began to emerge from

its regional shell, opening branches beyond the State boundaries and emerged as a leading bank. In

1971, the bank was included in the second schedule of the RBI Act 1934.It had its first full time

chairman following social control measures in banks in the country. Five years later (in 1976) it

was declared an „A‟ Class bank. By the end of 1980, its branches numbered 212 with aggregate

deposits of Rs. 191.67 corer and advance of Rs. 61.67crores.

The bank became pioneer in the finance of road transport, horticulture and hostels to promote

tourism and extended finance to the artisans to promote traditional handicrafts. In fact the bank

was the first commercial Indian bank to introduce schemes for financing fruit crops on standing

trees in the State of Jammu & Kashmir, a policy that was subsequently emulated by other banks

elsewhere in the country.

The bank expanded its area of operation and widened its credit base by financing schemes like

integrated Rural Development Programmers (IRDP), SEEDY, PMRY, NRY and other self-

employed programmers sponsored by the State and Central Governments. In 1976, Bank became

the first and the only bank, which was permitted by the Reserve Bank of India to sponsor two

regional banks, namely, Kamraz Rural Bank and Jammu Rural bank. The bank has also been

entrusted with lead bank responsibility in eight of the fourteen districts and governorship of the

State Level Bankers committee in J&K State.

The bank has played a key role in the economic development of the State in particular and the

country in general. In the last ten turbulent years, it was the only commercial bank to sustain

economic and business activity as most of the nationalized banks in the State downed their

shutters. During this difficult period, it was the J&K Bank alone that supported various aimed at

alleviating poverty and generating self-employment opportunities.

With a substantial increase in its capital base, the bank is participating more extensively in

financing of infrastructure projects. A number of leading corporate and blue chip companies as

well as prominent public sector undertakings of the Indian government have become part of its

clientele. The financial of the bank are very strong. The banks debt instruments have been highly

rated by CRISIL (Credit Rating Information Service of India Limited), which has reaffirmed its

P1+rating of the banks certificate of deposits, including strong degree of safety with regards to

timely payments. The bank is governed by the companies act and banking regulation act of India

.It is regulated by the Reserve Bank of India and Security and Exchange Board Of India (SEBI).At

the end of May 2006,the bank had 517 branches spread from Kashmir to Kanyakumari with 98%of

its business computerized. The bank has been playing a vital role in the development of the

economy of the state and bolstering industry, trade, commerce and agriculture in the state. The

bank has put a commendable performance in all aspects of banking .The performance of J&K

Bank, its growth, profitability, diversification of product portfolio, modernization of its operations

and its achievements in other areas have made it one of top most banks of the country.

Sri Sohan Lal Kothari was the first manager of the bank and the then chief Minister major general

Roy Bahadur Dewan Bishan Das was appointed as the foundation stone of the Residency road

Srinagar branch building. Since 1977 the bank has been responsible for payment of civil pension

and receipt of various states taxes. Findings overall performances of the bank good, the RBI issued

a license to the J&K Bank to deal in all types of foreign exchange presence in 1980. The bank

installed first ATM in valley connected globally to all master card networks ATMs. All the

branches of the bank are connected through V-SAT.

On 10-08-2001 the bank took over the Srinagar branch of standard chattered Grindlays bank. The

bank inaugurated its new corporate headquarter building at M.A road Srinagar-on 2

september2001.

J&K Bank is today one of the fastest growing bank of India with a network of 517 branches offices

spread across the country offering world class banking products and service to its customers.

Today the bank has the status of value driven organization and is always working towards building

trust with shareholders, employees, customers, borrower‟s etc. for which it has adopted strategy

directed to developing a sound foundation of relationship and trust aimed at achieving excellence

which of course comes from the womb of good corporate governance.

The J&K Bank has recorded an outstanding achievement in the key areas of operations. The total

deposits as on 3103-2006 were Rs 23484.64 crores against Rs21644.97 crores for the fiscal year

2004-2005.

Thus deposits have shown a growth of 8.50%.The reserves and surplus of the bank grove‟ by

8.28% from Rs 1616.9 cr. of the previous year to Rs 1750.9cr.on ending March 2006.other

borrowing of the bank decreased from Rs 319.48 cr. To Rs 263.9 cr. other liabilities for the fiscal

year 2005-2006 ending 31 March stood at Rs 900.9cr. against Rs 792.9 cr. for the previous year.

The Bank has made the total investment of Rs 900.34 cr. on 31 March 2006 the advances have

increased from Rs 11517.14 cr. as on 31 March 2005 to Rs 14483.10 cr. as on 31 March 2006

showing a growth of 25.75% over the previous year.

The balance sheet has grown up to Rs 26449 cr. as on 31-03-2206 against Rs 24422 cr. as on 31-

03-2005 recording an increase of 8.29%.The fixed assets of the bank amount for Rs 194.7 cr. and

other assets are worth Rs 481.4 cr. The J&K Bank has the total cash and balance with RBI Rs

937.88 cr. and balance with banks and money at C&S notice is Rs 1349.cr as on 31-03-2006.

In the state of Jammu and Kashmir, the J&K Bank has been the major contributor in providing

credit to poor artisans, retailers, small business, agriculture and other allied activities, small scale

industries and technically qualified entrepreneurs. In these sectors with Rs 137.89 cr. in agriculture

sector, Rs 145.38cr.in industries sector and Rs 241.09 cr. in service sector.

J&K Bank having a strong network of 410 branches across the state has made total advances of Rs

5941.02 cr. in J&K State as on ending March 2006 as against its total deposits of Rs 12236.98 cr.

Thus achieving a current deposit ratio of 48.55%.

Maintaining a progressive outlook, the J&K Bank is keeping pace with the changing technology.

The bank continues to leverage information technology as strategic tool for its business operators.

The IT strategy emphasizes enhanced level of customer service through 24x7 hours availability,

multi channel banking and cost efficient through optimal use of electronic channels, wider market

reach and opportunities for cross selling.

Currently more than 90.5% of the banks business is computerized. The J&K Bank is the first bank

to launch ATM cum debit card in Kashmir. The bank launched ATM cum Debit card “J&K Bank

global access card” in collaboration with the master card international. The bank has grown the

number of ATMs to 182 at the end of March 2006.

The bank has launched the three variant types of credit cards with different limits with an interest

free credit facility for 20 to 50 days at accept at 125000 mercantile establishments across the globe.

The customers have the access to their money for all the 365 days of a year and 24 hours per day.

The credit and debit cards of the bank are accept of cash with draws at 7000 ATMs in India and 1

million ATMs across the globe. To maximize value to its customers, the innovation in products

and improving the quality and speed of the services in the Hall Mark of banks business strategy.

The bank has launched several unique financial and deposit products like education loans, car

loans, consumer loans, flexi deposit recurring plus and Mehandi deposits schemes to meet the

needs of customers. the bank has recently won the prestigious Asian banking awards 2004 for

customer convenience programmmes. The award is given each to recognize and honor the bank in

Asia pacific region for outstanding innovating and world-class products services, projects and

programmers.

J&K Bank has embarked on brand strategy exercise and engaged removed consultants to work on

business development possibility and engaged over all processes that could be improved in the

future to enhance the overall profitability of the bank.

This would increase branding of the banks products in order to increase the value for its customers.

And now with the right kind of leadership efforts of dedicated employees and State of art

technology, the J&K Bank is on the path of growth and success building trust profit, peace and

property.

BANK AT A GLANCE

Profile:-

Incorporated in 1938 as a limited liability company.

Governed by companies Act and Banking regulation Act of India.

Regulated by the Reserve bank of India and SEBI.

Listed on National Stock Exchange (NSE) and Bombay Stock exchange (BSE).

53 per cent owned by the Govt. of J&K.

Rated “p1+”by standard and poor-CRISIL connecting highest degree of safety.

Four decades of uninterrupted profitability and dividends.

Share Holding pattern (as on 03-09-2005)

S.NO Particulars as on 30-09-2005 Percentage of share

holding

1 Govt.of Jammu & Kashmir 53.17

2 Foreign institutional investors 27.79

3 Resident individual 14.32

4 Indian Mutual Funds 1.71

5 Insurance companies 1.27

6 Bodies corporate 1.26

7 Non resident Indians 0.40

8 Banks 0.03

9 Transit/clearing members 0.03

10 Trusts 0.02

Unique characteristics: one of a kind

Private sector Bank despite Government holding 53% of equity.

Sole bankers and lender of last resort to the Govt.of J&K.

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

Salaries of Govt. officials disbursed by the bank.

Only Private sector designed as agent of RBI for banking business.

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

Infrastructure. Global Standards

The fastest growing Bank with 510 branches across the country.

Over 98 per cent of the business computerized.

Banking, Tele-banking and SWIFT facilities available.

Internet Banking, SMS and Mobile Bank provided.

ATMs connected globally to all Master card Networked ATMs.

Mobile ATM Service available-first of its kind in Northern India.

J&K bank Global Access Debit card cirrus and Maestro enabled own Credit card.

Live on RTGS System of RBI.

Financial Services Portfolio: One stop for all financial needs.

Insurance joint venture with MetLife international.

Distributor of :

 Life Insurance products of MetLife (India) Pvt. Ltd.

 Non-life insurance products of Bajaj Allianz General Insurance Co. Ltd

Providing depository Services.

Offering Stocks Barking Service.

Collection Agent for utility Services provided by State and private sector.

New Business Initiatives: Shaping ourselves to serve better.

To meet the growing needs of the economy, in tune with the competitive banking innovative

financial products.

Monetizing the Bank‟s branch network.

Third party products distribution.

Investment Banking.

Offshore Banking.

.

Demand Deposits

Saving Account

Min. Initial Deposit: Rs50/-in non-computerized branches.

Rs500/-in computerized branches.

Min. Balance requirements: Rs50/-in non-computerized branches

Rs500/-in computerized branches.

Anywhere Banking Facility: Available at all computerized branches.

Debit Card: Maestro & Cirrus enabled Debit Card which can be used on Master Enabled

ATM‟s & POS machines both within & outside the country.

Minimum balance requirements for debit card: Rs1000/-

Debit Card Charges :Issuing charge:Rs50/-,Usage Charges-Rs50/-

Charged half-yearly.

Standing Instruction: Rs15/instruction at computerized branches.

Rs10/-in non-computerized branches.

Penalty:

Computerized Branches:Rs1/-per day for the period the balance remains below Rs 200/-

in accounts without cheques book Rs 1/-per day(min 5)for the period balance remains,

Below Rs1000/-with a minimum of Rs 5/-for accounts with Cheque book facility.

Non-computerized Branches:Rs 0.25/-per day for the period the balance remains below

Rs 50/-in case of SB account without Cheque book facility Rs 0.50/-per day for the period

balance remains below Rs500/-for account with cheque.

Current Account.

Min.intial Deposit & Min Balance Required:

Computerized branches

Rural Branches Rs 1000.

Semi-urban branches Rs2000/-

Urban Branches Rs3000/-

Metropolitan branches Rs5000/-

Non-Computerized Branches





Anywhere Banking Facility: Available at all computerized branches. No incidental

charges where average minimum balance is above Rs-1.00 lac.

Avg. minimum balance charges

Rs 75.000 to below Rs 1, 00,000. Rs 750/-per quarter.

Rs 50.000 to below Rs 75,000. Rs 1,000/-per quarter

Rs 25.000 to below Rs 50,000. Rs 1250/-per quarter

Below Rs 25.000. Rs 1500/-per quarter

Debit Card: Master & Cirrus enabled debit card which can be used on Master Enabled

ATM‟s & POS machines both within & outside the country.

Minimum balance requirements for debit card:





Debit Card Charges: Issuing charges-Rs 50/-

Usage Charges-Rs 50/-charged half-yearly.

Standing Instructions: Rs 15/instruction at computerized branches.

Rs 10 at non-computerized branches.

Free Remittances:

Avg. Monthly balance/month Aggregate value of

Remittances/month all as per

Rs 1.00 lack to below 2.00 lack Rs 3.00 Lac




Above 5 Lac Free up to Rs 10 lacks & 50%

Concession above Rs 10 lacs

Penalty:

Computerized Branches: Rs 1/-per day is charged for the period the balance remains below

the prescribed limits.

Non-Computerized Branches: Rs 2/-per day is charged for the period the balance remains

below the prescribed limits.

Term Deposits

Single initial-deposit based term products.

Fixed Deposit

Target: Retail LIG short term investors.

Minimum Deposit: Rs 100/-and above in multiple of Rs 1/-

Maturity: 7 days to 10 years.

Interest Rate: Fixed.

Interest Calculation: Simple Interest.

Interest payouts: Quarterly/on maturity

Add-ons: Loan facility up to 90% of amount, deposited plus interest accrued

Penalty: 0.5% penalty up to Rs 5.00 Lacs premature withdrawal

0.50% penalty above Rs 5.00 Lacs premature withdrawal.

Variants of Fixed Deposit

Super Earner Deposit

Target: Retail MIG short term investors.


Maturity: 1year to 10 years.

Interest Rate: Floating

Interest Calculation: Simple Interest.

Interest payouts: Quarterly/On maturity

Add-ons: Loan facility up to 90% of amount, deposited plus interest accrued.



Cash Certificates

Target: Retail LIG short term investors.


Maturity: 6 months to 10 years

Interest Calculation: Quarterly Compounding basis.

Interest payouts: On maturity.

Add-ons: Loan facility up to 90% of amount, deposited plus interest accrued.

Penalty: 0.25% penalty up to Rs 5.00 Lacs premature withdrawal.


Variants of Cash Certificate

Millennium Deposit

Target: Retail MIG/HIG long term investors seeking returns as well as liquidity.





Add-ons: The deposit is kept in units of Rs 500/- Any number of units can be withdrawn

anytime provided the total deposit balance does not fall below Rs 1000/-

Penalty: Only on the premature withdrawal of the entire deposited amount.

Flexi-Deposit

Target: Retail LIG long term investors seeking easy access to credit.


Maturity: 6 months to 10 years.



Add-ons: Loan facility up to 90% of amount deposited plus interest accrued. No separate

requisition, no execution of loan documents and no surrendering of the original Flexi

Deposit Receipt.



Maturity: 7,10,12 and 15 years.


Mehandi Deposit

Target: Parents/Guarding of Girl child. However, the scheme can be availed for male

child also.

Minimum Deposits: Depends upon the maturity tenor and Maturity slabs.

Interest payouts: On maturity

Add-ons: Accidental Insurance Cover



Super Reinvestment Deposit

Target: Retail MIG long term investors seeking high returns.


Maturity: 1years to 10 years

Interest rate: Floating


Interest payouts: Quarterly/On maturity.

Add-ons: Loan facility up to 90% of amount deposited plus interest accrued.



Monthly Yield Deposit

Target: Retail MIG long term investors seeking regular monthly returns.

Minimum Deposit: Rs 1000/-and its multiples.

Maturity: 1years to 10 years.

Interest rate: Fixed.

Interest Calculation: Monthly

Interest payouts: Quarterly/On maturity.


Penalty: 0.25% penalty up to Rs 5.00 Lacks premature withdrawal.

0.50% penalty above Rs 5.00 Lacks premature withdrawal.

Term Deposits

Monthly Deposit based term products.

Recurring Deposit

Target: Retail LIG investors having desiring regular monthly investments.

Minimum Deposit: Rs 50/-and its multiples of Rs 5/-

Maturity: 1years to 10 years

Interest rate: Fixed

Interest Calculation: Quarterly Compounding basis

Interest payouts: at maturity.



0.50% penalty above Rs 5.00 Lacs premature withdrawal

Recurring plus Deposit

Target: Retail LIG investors having with irregular investible income.

Minimum Deposit: Rs 100/-and its multiples thereof with no upper limit.


Interest rate: Fixed

Interest Calculation: Quarterly Compounding interest.

Interest payouts: at maturity.



0.50% penalty above Rs 5.00 Lacs premature withdrawal

Childcare Deposit Scheme

Target: Parents/Guardians investing long term with regular monthly savings for their

child.

Minimum Deposit: Rs 100/-and multiples thereof

Maturity: 7,9 and 10 years as recurring plus 5,7 and 10 years respectively as term

deposit

Interest Calculation: Quarterly Compounding basis


Add-ons: Accidental insurance cover linked to the size of monthly deposit amount.

Penalty: 0.25% penalty up to Rs 5.00 Lacks premature withdrawal

0.50% penalty above Rs 5.00 Lacks premature withdrawal

Deposit Pension Scheme

Target: Person who do not enjoy pension benefits either from their present employees or

their parent business.

Minimum Deposit: Rs 50/-and multiples, thereof

Maturity: 84,105 or 111 months.

Payment Pattern: Monthly payouts from 86th ,101 th and 113th months respective to

the maturity tenors.

Interest Calculation: Quarterly Compounding basis for the first term Simple interest

on 2nd term.

Interest payouts: Regular monthly payouts starting from commencement of 2nd term

.Full amount paid at the end of second term.

Penalty:0.25% penalty up to Rs 5.00 Lacks premature withdrawal.

“SB UJALA” Saving Deposit Scheme
In compliance to the direction of direction of Reserve Bank of India to have a basic banking “No-

frills” account to ensure financial inclusion of vast sections of population and also to strive for

making our service liberally and easily accessible to all segments of society including the deprived

and underprivileged ones, our Bank is introducing a new variant of Saving Bank account under

the name of “ SB UJALA” Account The main features of the scheme are:

Eligibity: The scheme shall be open to all people who are eligible to open Savings Bank

account with our Bank in ordinary course.

Minimum Initial Deposit: The account can be opened with a minimum initial cash deposit

of Rs 50/-.However, customer may also be allowed to open the account with banking

instruments like Banker‟s cheques, etc. without being insisted upon to deposit the

minimum prescribed amount in cash for opening the account.

Minimum Balance: The minimum balance to be maintained for keeping the account

operational shall be Rs 50/-

Permissible withdrawals per month: The number of permissible withdrawals per half

year shall be 24,with a maximum of 4 withdrawals per month.

Cheque-Book facility: No Cheque book facility shall be ordinary provided on this

account.

However, Cheque-book may be issued to the account holders in case the average quarterly balance

for past 6 months is maintained at Rs 1000/- and above .

All Branches/Extensions Counters are advised to transfer all those existing Saving Bank accounts

having average balance of Rs 50/-and above but less than the minimum balance prescribed

otherwise for Saving Bank Account having average balance of Saving Bank Account to this

newly created separately portfolio, namely “SB UJALA” Saving Deposit Account. Entire

segregation should be completed before ensuring year ending, i.e, 31.03.2006.Information about

the number of accounts opened under this scheme may be submitted to this office on quarterly

basis for onwards submission to Reserve Bank of India. Branches are advised to popularize this

scheme by creating adequate awareness among the masses in their respective service areas with the

objective of financial inclusion of maximum number of people.

BANKER AND CUSTOMER

It is not easy to define bankers. However an attempt has been made by various people in order to

formulate the definition of terms “Bankers” and “Customer”.

The essential business of banker is to buy money and debt, by creating other.debts.A banker is

therefore essentially dealer in debts or credits.

“A banker or a bank is a person or company carrying on the business of receiving money and

collecting drafts, for customer”.

“No one can be a banker who does not take deposit accounts, take current accounts, issue and pay

cheques, crossed and uncrossed, or his customer”.

“A customer is a person who has some sort of an account, either deposits or current accounts or

some similar relations with the banker. It implies that any person corporate body will become by

opening a deposit or current account s, or by negotiating an advance on current or loan account”.

“The word customer signifies a relationship in which duration is not of essence. A person who has

been accepted by the bank on the footing that they undertake to honors Cheques up to the amount

standing to his connection is of long or short standing. The contrast is not between a person a

habitual and a new comer but between a persons for whom the bank performs a casual service e.g.

cashing a cheque, for a person whom the bank performs a casual service e.g. cashing a Cheque, for

a person introduced by one of their customer, and a person who has account of his own at the

bank”

To sum up, the mere opening of an account will constitute a person, a customer of a bank,

irrespective of whether his connection is of long or short standing.

RELATIONSHIP BETWEEN A BANKER AND

A CUSTOMER

“The relation of a banker and a customer begins as soon as the first cheque paid and accepted for

collection. It is necessary that the person should have drawn any money or even that he should be

in a position to draw any money”.

The true relationship between a banker and his customer is that of debtor and a creditor.

Money when paid in the bank ceases altogether to be the money of the principal, it is then the

money of the banker who is bound to return an equivalent by paying a similar sum to that

deposited with him, when he is asked for it. The money paid to the bankers is money known by the

banker, it is then banker‟s money, he is known to deal with it at its own, he makes what profit he

can, that profit he retains for himself, paying back only the principal, according to the customer of

banker in other places……that being established to be relative situation and a customer, the banker

is not an agent or factor, but he is a debtor.

CHEQUES

According to the section 6 of the Indian Negotiable Instrument Act-881. “A bill is a bill of

exchange drawn from on a specified banker and not expressed to be payable otherwise than on

demand”. According to section 5 of the Act. “A bill of exchange is an instrument in writing

containing an unconditional order, signed by the maker directing certain to pay sum of money,

only to, or to the order of, a certain person or to the bearer of the instrument”. From the above

definition it follows that an instrument to be called a Cheque must fulfill certain conditions. They

are:

1. The instrument must be in writing. Legally speaking the writing may be done by a pen or a

pencil, unless confirmed by the drawer. This is easy to make authorized alternation when a

Cheque in pencil.

2. The instrument must contain an un-conditional order. For instance, if the banker is ordered

to pay a certain sum provided the payee fulfill certain conditions, it cannot be considered

a Cheque as the order is a condition one .However, if such instructions are addressed to the

payee and not to the banker, the order to pay may be regarded unconditional.

3. The maker must sign the instrument. In order to be a valid Cheque, the instrument must

contain the signature of the drawer. In the case of an illiterate person, his thumb impression

will suffice. Though legally permissible, pencil signatures are discouraged by bankers. So

also signatures impressed on the Cheque by means of a rubber stamp is not permitted

generally.

4. The order to pay must be addressed to a banker, and that banker must be a specified one. In

other words, the instruments should not be drawn on a banker but a banker on a specified

banker.

5. The order must be for a certain sum of money only. The term money means legal tender

currency. Thus if the order is for something other than legal currency, the instrument

cannot be considered a Cheque. Further the sum of money must be considered as certain.

LOANS AND ADVANCES

Advance, apart from contributing to main share of banks profiles, enable trade, commerce,

industry and agriculture to meet their short coming requirements for funds. Banks, finance

industries to meet their day to day requirements for funds. Banks, finance industries to meet their

fixed assets.

Similarly banks grant advances to farmers for raising crops, for purchasing implement, tractors,

seeds and pesticides and for irrigational facilities etc.

During the last few years, the part played by banks in granting advances has undergone a marked

change. The scheme of social control introduced in 1967 by the Govt. of India laud emphasis on

diversification of advances portfolios in favor of priority sector such as exports agriculture, and

small scale industries. This change has been adopted by fourteen major banks in 1969 the advance

granted by commercial banks are expected to develop all sectors of national economy.

Policy Document on Grievance Redressal

In the present scenario of competitive banking, excellence in customer service is the most

important tool for sustained business growth. Customer complaints are part of the business life of

any corporate entity. This is more so for banks because banks are service organizations. As a

service organization, customer service and customer satisfaction should be the prime concern of

any bank. The bank believes that providing prompt and efficient service is essential not only to

attract new customers, but also to retain existing ones. This policy document aims at minimizing

instances of customer complaints and grievances through proper service delivery and review

mechanism and to ensure prompt redressal of customer complaints and grievances. The review

mechanism should help in identifying

shortcomings in product features and service delivery. Customer dissatisfaction would spoil bank‟s

name and image. The bank‟s policy on grievance redressal follows the under noted principles.

 Customers be treated fairly at all times

 Complaints raised by customers are dealt with courtesy and on time

 Customers are fully informed of avenues to escalate their complaints/grievances within the

organization and their rights to alternative remedy, if they are not fully satisfied with the response

of the bank to their complaints.

 Bank will treat all complaints efficiently and fairly as they can damage the bank‟s reputation

and business if handled otherwise.

 The bank employees must work in good faith and without prejudice to the interests of the

customer.

The policy document will be made available at all branches and shall also be displayed on the

Bank‟s website. The Bank shall also ensure that all employees concerned are informed about the

complaint handling process and its subsequent updates.

The customer complaint arises due to:

a. The attitudinal aspects in dealing with customers

b. Inadequacy of the functions/arrangements made available to the customers or gaps in standards

of services expected and actual services rendered.

The customer is having full right to register his complaint if he is not satisfied with the services

provided by the bank. He can give his complaint in writing, orally or over telephone. If customer‟s

complaint is not resolved within given time or if he is not satisfied with the solution provided by

the bank, he can approach Banking Ombudsman with his complaint or other legal avenues

available for grievance redressal.

Internal Machinery to handle Customer complaints/ grievances

Internal procedures: -

i. If you want to make a compliant, we will tell you how to do this and what to do if you are not

satisfied with the outcome. Our staff will help you to the best of your satisfaction with any queries

you have.

ii. We have installed „complaint boxes‟ at every branch where you can drop your

complaints/feedback.

iii. The customers can use our website http://www.jkbank.net/grievance.php for sending their

complaints/feedback to the grievance redressal cell.

iv. The customers can contact our customer care cell through phone for redressal of issues.

v. Customers can also use our Internet banking facility for sending their complaints/suggestions

to the concerned branches/offices.

vi. Within one week of receiving your complaint, we will send you a written acknowledgement. If

your complaint is relayed over phone at our customer care helpdesk number, we shall provide you

a complaint reference number and keep you informed of the progress within a reasonable period of

time.

vii. After examining the matter, we will send you our final response within six weeks and will tell

you how to take your complaint further if you are not satisfied with the response of the Bank.

Banking Ombudsman Service and other avenues for redressal

Within 30 days of lodging a complaint with us, if you do not get a satisfactory response from us

and you wish to pursue other avenues for redressal of grievances, you may approach Banking

Ombudsman appointed by Reserve Bank of India under Banking Ombudsman Scheme 2002.

Details of Banking Ombudsman are displayed in the branch notice boards. Our staff would explain

you the procedure in this regard.

Customer Service Committee of the Board

The Bank has constituted a sub-committee of the Board known as „Customer Service Committee‟

with the objective of bringing improvements in the quality of customer service and to examine any

otherissues having a bearing on the quality of customer service rendered. The sub committee is

responsible for supervising and reviewing the grievance redressal mechanism of the Bank. The sub

Committee would also be supervising and reviewing the functioning of Standing Committee on

Customer Service.

Standing Committee on Customer Service

The Bank has also constituted a „Standing Committee on Customer Service‟, which is responsible

for implementation and compliance of the „code of banks commitment to customers‟. The

committee is chaired by the Chairman and CEO of the Bank and consists of official and

nonofficial members. The non-official members have been included in the standing committee so

as enable an independent feedback on the quality of customer service rendered by the Bank. The

committee is entrusted with the following functions.

 Evaluate feedback on quality of customer service received from various quarters and also

review comments/feed-back on customer service and implementation of commitments in the Code

of Bank‟s Commitments to Customers received from BCSBI.

 The Committee is responsible to ensure that the bank follows all regulatory instructions

regarding customer service. Towards this, the committee would obtain necessary feedback from

zonal/regional managers/ functional heads.

 The committee also considers unresolved complaints/grievances referred to it by functional

heads responsible for redressal and offers their advice.

 The committee submits report on its performance to the customer service committee of the

board at quarterly intervals.

Nodal Officer and other designated officials to handle complaints and

grievances *

The Bank has designated President Customer Care Division as the Chief Nodal Officer who will

be responsible for the implementation of customer service and complaint handling for the entire

bank. Besides the Chief Nodal Officer, the Bank has also designated Vice Presidents of the

respective Zonal Offices as Nodal officers who will be handling complaints/grievances in respect

of branches falling under their control.

Resolution of Grievances

Branch Manager is responsible for the resolution of complaints/grievances in respect of customer

service rendered by the branch. He would be responsible for ensuring closure of all complaints

received at the branches. It is his foremost duty to see that the complaint is resolved to thehe

should be provided with alternate avenues to escalate the issue. If the

branch manager feels that it is not possible at his level to solve the problem he/she can refer the

case to the Nodal officer at the Zonal Office for guidance. Similarly, if the Nodal Officer at Zonal

office finds that they are not able to solve the problem such cases may be referred to the Chief

Nodal Officer at the corporate office. Branches and zonal offices must send action taken report on

complaints received to the head office at the end of every month.

Interaction with customers

The bank recognizes that customer‟s expectation/requirement/grievances can be better appreciated

through personal interaction with customers by bank‟s staff. In this regard the Bank has constituted

customer advisory forums at each branch, which are holding regular customer meets to apprise

the customers about the new products and services of the Bank and

also seek feedback/suggestions from them for improving the customer services. Many of the

complaints arise on account of lack of awareness among customers about bank services and such

interactions will help the customers appreciate Banks services better. As for the Bank the feed

back from customers would be valuable input for revising its product and services to meet

customer requirements.

Sensitizing operating staff on handling complaints

Staff shall be properly trained for handling complaints. The Bank deals with people and hence

difference of opinion and areas of friction can arise. With an open mind and a smile on the face we

should be able to win the customer‟s confidence. It shall be the responsibility of the Nodal Officer

to ensure that internal machinery for handling complaints/grievances

operates smoothly and efficiently at all levels. He shall give feed back on training needs of staff at

various levels to the HR Dept.

Research Objective

The primary objective of the research is “Customer Service/Satisfaction of J&K Bank, other

objectives of the research are:

1. To know the customer perception of service provided by J&K Bank.

2. To examine the banker customer relationship.

3. To identify the customer grievances if any.

4. To seek the suggestion for improvement of service for customer satisfaction.

Achievement of the major objective that would lead to accomplishment of this project was based

on minor objective which were systematically streamlined to yield the former objective.

Research Methodology

The study is an exercise involving estimation of parameters as regard to organizational

requirements. Research was designed so as to get the relevant information that can be used for

various organizational purposes. The information is to be collected from the different sources of

data.

Sample size for the research was 200 customers.

Data for research was collected through pre-structured questionnaire method.

The research is exploratory in nature.

Data collection: the data collection method used was none other than survey method which

is usually incorporated for collection the raw information. The survey method is

advantageous because it helps to collect a great deal of information about an individual

respondent.

Survey: The type of survey undertaken was that of sample type keeping in consideration the

time constraint and paraphemalic, besides the viability of census survey, the sample survey

thus being taken to the right path to reach the desired destination was carefully planed to

convert of the operation by using selected samples.

Statistical Tool:

The tool for obtaining the information was questionnaire. A structured questionnaire was

administered. The questionnaire was designed in the view both major and minor objective of

study.

Sampling: with the customer being unknown and given the time and resource constraints

random sample was obtained from different people.

Sample size: The sample size was taken to be 200 in the cluster population of customer

universe.

Age of customers dealing with J&K Bank

The customers were divided into four categories on the basis of age. These categories were<25

years, 25-40 years and lastly >60 years.

The results were as follows:

Customer group <25 = 17.5%

25-40 = 55.5%

40-60 = 24%

>60 = 3%

3%

24% 17% <25
25-40
56% 40-60
>60

The group having 25-40 constitute lightest radio i.e, 56%of the customer.

Monthly income of customer

The customer were also divided into four groups on the basis of their monthly income.

These groups were<5000, 5000-10000, 10000-15000,>15000.

The results were as follows:

Customers groups <5000 = 8.5%

5000-10000 = 40.5%

10000-15000 = 36%

>15000 = 15%

percent

15% 9% <5000
5000-10000
36% 41%
10000-15000
>15000

Customers dealing with J&K Bank

To ascertain the market share of J&K Bank, I approached 200 respondents and asked them with

which bank they deal at present. The answer provided the following information.

Dealing with J&K Bank = 93%

Not dealing with J&K Bank = 7%

percent

7%
Dealing with J&K Bank
93%
Not dealing with J&K Bank

The above figure depicts that J&K Bank is the major player in the valley of Jammu & Kashmir.

Distribution of various customer services

Saving Account holders = 42.7%

Fixed Account holders = 6.6%

Current Account holders = 27.79%

Loan holders = 3.12%

A.T.M/Debit card holders = 7.99%

Credit Card holders = 5.9%

Insurance Policies = 2.78%

Cash Credit = 3.12%

percent

Saving Account holders
Fixed Account holders
6% 3% 3%
8% Current Account holders
3% 43%
Loan holders
28%
A.T.M/Debit card holders
Credit Card holders
6%
Insurance Policies
Cash Credit

The above figure shows that majority of customers are using saving account and current account

services.

Satisfaction Level of customers

To know the percentage of satisfied and dissatisfied customer and the level of satisfaction and

dissatisfaction among them. The responses were as follows:-

1. satisfied = 82.25%

2. Dissatisfied = 17.75%

percent

18%
satisfied
82% dissatisfied

Observation: The majority of the respondents are satisfied, but service delivery should be done

customers friendly the remaining 17.75%.

Customers opinion about the cooperation and

help by employees in giving information

about services of the Bank

In order to see customer about the cooperation and help of employees, I have consulted

respondents and their response were as following.

Cooperative and helping = 73.65%

Non cooperative & Rude = 26.35%

percent

26% Cooperative and helping
74%
Non cooperative & Rude

The above chart shows that majority of customer are satisfied with the cooperation and help

provided by the employees of the J&K Bank.

Rating by customers for the Bank
To find out how customers evaluate the Bank, I met respondents of the concerned areas. There

responses were as:

Excellent = 13.98%

Good = 52.69%

Average = 24.73%

Poor = 8.06%

Very poor = 0.54%

percent

0%
Excellent
8% 14%
25% Good
Average
53%
Poor
Very poor

Many of the respondents were of the opinion that the services is good,13.98% views it as excellent,

24.73% describes it average, while as 8.06% describes as poor and only 0.54% describes as very

poor.

Reasons for availing J&K Bank Services

More flexibility = 11.92%

Simplistic Procedure = 37.30%

More number of branches = 46.11%

Easy access = 4.67%

percent

More flexibility
5% 12%

Simplistic Procedure
46% 37%
More number of branches

Easy access

The figure depicts that many of the respondents are availing J&K Bank Services because of more

number of branches and simplistic procedure.

Customers feel that the following are

bottlenecks in gathering the information of

banking services

Indifferences of bank officials = 34.22%

Difficult access to bank officials = 16.45%

Lack of proper advertisement = 49.33%

percent

Indifferences of bank officials

49% 34%
Difficult access to bank
17% officials

Lack of proper
advertisement

The above data shows that majority of respondents is, e 49.33% feel that the bottlenecks in

gathering the information of the Banking Services is because of lack of proper advertisement,

34.22% felt it is because of indifference of bank officials and only 16.45% is because of difficult

access to the bank officials.

According to customers the bank should

choose the following media to inform the

customers
T.V = 40%

Radio = 24.45%

Print Media = 21.33%

Through local branches = 8%

Internet = 4.45%

Any other = 1.77%

percent

T.V
8% 4% 2%
Radio
40%
21% Print Media
25%
Through local branches
Internet
Any other

The above data shows that 40% customers prefers that the bank should choose T.V to inform the

customers about the services, 24.45% prefer radio,21.33% prefer print media,8% prefer through

local branches, 4.45% prefer internet and 1.77% want any other media.

Limitations Faced While Doing this Research

While doing this research I face certain problems which are mentioned as below:-

1. Respondents were not ready to answer my questionnaire due to fear of interfering

into the internal bank matters.

2. Respondents that were complaining about services were not ready to give their

identity.

3. Operational on part of sample units to respond properly to all the question of

questionnaire.

4. Reluctance on part of sample units to respond properly to all the question of

questionnaire.

5. Respondents were giving answer to the questions that were written on the

questionnaire, but efforts were made to get more and more information about

bank service from them.

Conclusions

It is good to see that the J&K Bank has introduce giving all its major service to the customer and

has captured a marked share of around 93% in the town which is very high in spite of its tough

competitors like SBI, State cooperative Bank etc. The J&K Bank has succeeded in satisfying its

majority of customers, however there are some areas of Improvement, but the staff is trying all the

customers.

The J&K Bank should introduce a grievance cell for the redressal of customers complaints and

staff should be customer friendly. The J&K Bank should use a promotional mix prepared and

presented. There should be no delay in service and withdrawal of money should be available till

4pm.

Weaknesses

The finding of this study reveals the following weaknesses of Jammu & Kashmir Bank.

1. Delay in servicing.

2. Sometimes loans were not given to suitable and eligible persons.

3. When an illiterate customer comes to bank. The banker doesn‟t pay any attention towards

him. He is not said what he has to do, and how he can get the cheque cashed & how he has

to deposit his deposits.

4. Some influential persons while coming to the bank to get their cheques cashed or to deposit

some money in the bank don‟t remain in queue but instead go directly in the concerned

officers.

Suggestions

In the light of the findings of the study the following are made for improvement of the customer

service in J&K Bank.

1. Staff of the bank should be customer friendly. Moreover there should be a grievance cell at

bank for the redressal of customer complains.

2. Staff should be increased at most of the branches.

3. There should be more number of receipt and payment counter so that the customers need

not to wait for long time.

4 There should be no delay in servicing.

5 Money should be available after 4pm as well on working days.

6 Loans should be given after proper verification.

7 Promotional mix i.e. the best combination of advertising, personal selling, sales Promotion,

electronic as well as print media should be prepared and presented to sell the different

services at very important branch.

Questionnaire

1. Name:

2. Age:

a. <25Yrs.

b. 25-40Yrs.

c. 40-60Yrs.

d. >60Yrs.

3. Occupation:

4. Address:

5. Monthly Income

a. <5000

b. 5000-10,000

c. 10000-15000

d. >15000

6. Education

a. Under Graduate

b. Graduate

c. Post Graduate

d. Any other, please specify

7. Do you have any account in J&K Bank?

a. Yes b. No

8. If yes which service?

a. Saving Account.

b. Fixed Deposit Account.

c. Various loan Accounts.

d. Current Account.

e. ATM/Debit cards.

f. Credit Cards.

g. Insurance Policies.

h. Any other please specify

9. If no please specify the reason.

a. Accounts in any other Bank

b. Poor service then the other Bank Banks

c. Staff Not cooperative.

d. Takes more time in settlement of transaction

e. Inefficient management.

f. Any other reason, Please Specify

10. Are you satisfied with the service of the J&K Bank?

a. Yes b. No

11. If no, specify the reason

12. Are the employees of J&K Bank cooperative and helpful in giving information

about service of the Bank?

a. Yes b. No

13. How do you rank J&K Bank service?

a. Good.

b. Excellent.

c. Average.

d. Poor.

e. Very Poor.

14. You choose the avail service of the Bank because of its:

a. More Flexibility

b. Simplistic Procedure.

c. More number of branches.

d. Any other reason please specify

15. What do you feel are the bottlenecks in gathering the information of banking

service?

a. Indifference of Bank officials.

b. Difficult access to bank officials.

c. Lack of proper advertisement.

e. All of these.

16. Which media would you like the bank to choose to inform the customers?

a. T.V

b. Radio

c. Print Media.

d. Through Local branches.

e. Internet.

f. Any other please specify

17. Comment on the bank

18. Any suggestion for improvement

Thank you

Bibliography and Reference

During the completion of this project work I have taken reference from various sources.

They are mentioned as below:

 Annual report of Jammu & and Kashmir Bank Ltd.

 Magazines such as business India and Harvard Business Review (Dec.2005)

 News paper such as Economic Times, times of India and Greater Kashmir.

 Yearly Journals of Jammu & Kashmir Bank Ltd.

 Websites of J&K Bank

www.j&kbank.net

www.j&kbank.com

www.jammuandkashmir.com

Various Management Books

1. Service Marketing By Zeithmal.

2. Marketing Management of Philip Kotler.

3. Marketing Research by Naresh Malhotra.

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