Arif Complete

8/9/2019 Arif Complete

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

Cutomer ati!a"tion #ae$ on

t%e "omparati&e ana'(i o! 'oan

Pro"e$ure !o''o)e$ #( $i!!erent #an*+,

Su#mitte$to Lo&e'( Pro!eiona' Uni&erit(

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration

Submitted by:

Arif lateef Gilkar.

10800545

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

-ALAND.AR NE/ DEL.I GT ROAD

P.AG/ARA

PUN-A0


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ACKNO!"D#"M"N$

I here%& ta'e an opportunit& to e(press m& profound gratitude of all those who

ha)e helped and en*ouraged me towards the su**essful *ompletion of the summertraining report+ It has %een a great e(perien*e wor'ing with ,D-C Ban'+ or'ing

under the super)ision of Ms+ Nan*& .Asstt+ Professor/0 Mr+ ,ilal Ahmad0 Mr+ Rouf

Ahmad and Ms+ ,uma Dar was a great opportunit& for me to learn something+ I am

highl& than'ful for their support and 'ind attitude whi*h helped me a lot and made m&

proe*t a su**ess+

A%o)e all m& famil& mem%ers ha)e alwa&s %een m& %iggest supporters+ In spite of

m& serious efforts to *omplete this proe*t if I ha)e *ommitted an& error it should %eloo'ed upon with s&mpath&+

Arif !ateef #il'ar 12322454


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$a%le of Contents7 8 Page No+"(e*uti)e 9ummar& 2:82;

Certifi*ate 12

Chapter 1 11

1+1Introdu*tion to loans0 and Ad)an*es 16815

1+6Ba*'ground of the stud&+ 1481:

1+


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5+6+1"ligi%ilit& 43

5+6+6Do*umentation+ 43

5+6+?K %an' Car loans :4

5+:+2Car loans :4

5+:+1"ligi%ilit& :4

5+:+69e*urit& :4

5+:+?K %an' sed *ar !oan ::


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5+:+=Purpose ::

5+:+3"ligi%ilit& ::

5+:+;Margin ::

5+:+12Ma(+ loan amount :=

5+:+11Repa&ment :=

5+:+169e*urit& :=

5+:+1?K %an' 114

:+6+< for PNB 11:

:+6+5 for 9BI 11=

Chapter = .Bi%liograph&/ 1138162

Chapter 3 .Appendi(/ 1618164

""C$I" 9MMARE


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MBA is stepping stone to management *areer+ In order to de)elop a health&

management and administration s'ill among potential managers0 someone has rightl&

said that partial training is far %etter than the *lassroom training+ $o a*hie)e partial

and *on*rete results0 it is ne*essar& that theoreti*al 'nowledge must %e supplemented

with an e(posure of the real %usiness en)ironment+

Keeping this in )iew and to get an e(posure0 I ha)e done m& summer

training in the FAgri*ulture loan and Car loan se*tionG of ,D-C Ban'+ B& doing this

training0 I ha)e learnt a lot whi*h would *ertainl& help me in the future+ $his proe*t

*o)ers the *ustomer satisfa*tion asso*iated with ea*h %an' and to what e(tent the

*ustomers want a *hange in the goods and ser)i*es offered %& their %an's+ It also

highlights the )arious wa&s or reasons wh& the *ustomers want to swit*h to new

%an's and wh& the& are satisfied with their preferred %an's+ I ha)e de)ised a

questionnaire whi*h %rings into front the )arious attri%utes of the %an'ing se*tor to

whi*h the *ustomers are attra*ted and re)eals their 'now how a%out the %an'ing

poli*ies and pro*edures+

$he name of m& proe*t is FCustomer satisfa*tion %ased on the Comparati)e

anal&sis of loan pro*edures followed %& different %an'sG in whi*h I wor'ed sa))&+

I ha)e de*ided to underta'e a proe*t whi*h would %e titled as F*ustomer satisfa*tion

%ased on the *omparati)e anal&sis of loan pro*edures followed %& different %an'sG+

nder this title0 I will stud& the *ustomer satisfa*tion asso*iated with ea*h %an'

.>?K0 ,D-C0 PNB0 ? 9BI/+ $he %asis of *omparison will %e different loan

pro*edures that the %an's follow while pro)iding loans to their *ustomers++ $hese

pro*edures will re)eal how and wh& a parti*ular *ustomer wants to %e with a

parti*ular %an' and wh& not with others+ In addition0 it will furthermore throw some

light a%out the )arious short*omings of these %an's and at last there would some

re*ommendations from m& side to the other %an's %& the help of whi*h the& *an also

e(*el in this %usiness and 'eep going in this long run+

$he anal&sis will %e done with the help of a questionnaire to 'now how satisfied a

*ustomer is with his preferred %an' and what *hange he wants to %e in the %an'Hs

offering to him+

$he stud& entitle FCustomer 9atisfa*tion %ased on the Comparati)e anal&sis of loan

pro*edures followed %& different %an'sG has %een underta'en with the o%e*ti)e to


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anal&e and interpret the *ustomerHs satisfa*tion le)el asso*iated with ea*h %an'+ $he

anal&sis of the %an's was underta'en with the help of the %enefits asso*iated with the

loan pro*edures that different %an's follow whi*h helped to determine wh& and how a

*ustomer was satisfied with a parti*ular %an'+ Ma& %e it is %e*ause of the ser)i*es0 *o8

operation of the staff or the %an'Hs a%ilit& to *ome up with )arious s*hemes whi*h

were the need of hour for their *ustomers and are important tools to attra*t them+ $he

importan*e of agri*ulture *an %e do*umented at least se)eral thousand &ears %a*'

when our nomadi* an*estors %egan to settle and grow their own food0 human so*iet&

was fore)er *hanged+ Not onl& did )illages0 towns and *ities %egin to flourish0 %ut so

did 'nowledge0 the arts and the te*hnologi*al s*ien*es+

In modern times0 howe)er0 man& in the ur%an world ha)e forgotten this fundamental

*onne*tion+ Insulated %& the apparent a%undan*e of food that has *ome from new

te*hnologies for the growing0 transportation and storage of food0 humanit&Js

fundamental dependen*e on agri*ulture is often o)erloo'ed+ $he up*oming orld

-ood 9ummit ser)es as an important opportunit& to re*onsider the fundamental

importan*e of agri*ulture and the degree to whi*h the glo%al and independent nature

of human so*iet& toda& requires a re8thin'ing of our attitudes and approa*hes to world

food produ*tion and distri%ution+ 9in*e that resolution0 progress toward food se*urit&

has %een made+ In man& nations0 agri*ultural produ*tion has in*reased0 food

pur*hasing power has risen0 and diets ha)e impro)ed+ On the other hand the most

important fa*tor that pla&ed an essential role in in*reasing produ*tion is *redit fa*ilit&

pro)ided %& different finan*ial institutions+

ltimatel&0 it is onl& through enhan*ed pro*esses of so*ial de)elopment whi*h

re*ognie the fundamental )alue of spiritual prin*iples in edu*ation0 *ommunit&

organiation0 and the appli*ation of te*hnolog& that true food se*urit& *an %e

esta%lished+ It is ne*essaril& a long term solution0 %ut la&s a firm foundation for a

sustaina%le and se*ure food suppl& for all+ India is an agri*ultural *ountr&+ $he Indian

e*onom& is %asi*all& agrarian+ In spite of e*onomi* de)elopment and

industrialiation0 agri*ulture is the %a*'%one of the Indian e*onom&+ As Mahatma

#andhi said0 India li)es in )illages and agri*ulture is the soul of Indian e*onom&+


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Nearl& two8thirds of its population depends dire*tl& on agri*ulture for its li)elihood+

Agri*ulture is the main sta& of IndiaJs e*onom&+ It *ontri%utes a%out 6: per*ent of the

gross domesti* produ*t+ Agri*ulture meets food requirements of the people and

produ*es se)eral raw materials for industries+

-rom agri*ultural point of )iew0 India is a unique *ountr&+ It has )ast e(panse of le)el

land0 ri*h soils0 wild *limati* )ariations suited for )arious t&pes of *rops0 ample

sunshine and a long growing season+ $he net sown area in India toda& is a%out 15alandhar is a %onafide resear*h wor' *arried out %& Arif

!ateef #il'ar0 %earing Registration No78 12322454 under m& guidan*e and

super)ision+ No part of this report has %een su%mitted for e)aluation in partial

fulfillment of the requirements for the degree of Masters in Business Administration+

$he assistan*e and help re*ei)ed during the *ourse of in)estigation has %een full&

a*'nowledged+

M+ Nan"(

2Att Pro!eor+3


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C,AP$"R81

Introdu*tion


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4+4 Intro$u"tion

!oans and ad)an*es is the most important unit of an& %an'ing organiation+ !oan is a

t&pe of de%t+ !i'e all de%t instruments0 a loan entails the redistri%ution of finan*ial

assets o)er time+ $he %orrower initiall& re*ei)es an amount of mone& from the lender0

whi*h the& pa& %a*'0 usuall& %ut not alwa&s in regular installments0 to the lender+

$his ser)i*e is generall& pro)ided ata *ost0 referred to as interest on the de%t+A sum

of %orrowed mone& .prin*ipal/ that is generall& repaid with interest+ !oan8to8alue

Ratio5 isthe relationship %etween the amount of the mortgage loan and the appraised

)alue of the propert& e(pressed as a per*entage+

!o*' !enderJs guarantee that the mortgage rate quoted will %e good for a spe*ifi*

num%er of da&s from da& of appli*ation+ Mone& Margin0 the amount a lender adds to

the inde( on an adusta%le rate mortgage to esta%lish the adusted interest rate+

Ad)an*e is a term that des*ri%es a se*ured loan made to a mem%er+ Ad)an*es are

offered at fi(ed or floating rates with spe*ifi* maturities or with em%edded options for

earl& redemption+ $here are different t&pes of loans offered %& a %an'+ Different loans

fet*h a different rate of interest and ha)e different se*urities against them+

9ome of the loans offered %& the %an's are7 8

Consumer loans

,ousing loans

Car loans

"du*ation loan

Personal *onsumption laon

!oan against mortigage

!oan against fi(ed deposits%ondshares

Mortgage loan for trade

Agri*ulture loan


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A %an' is a lawful organiation0 whi*h a**epts deposits that *an %e withdrawn on

demand+ It also lends mone& to indi)iduals and %usiness houses that need it+ Ban's

also render man& other useful ser)i*es li'e *olle*tion of %ills0 pa&ment of foreign

%ills0 safe8'eeping of eweller& and other )alua%le items0 *ertif&ing the *redit8

worthiness of %usiness0 and so on+ Ban's a**ept deposits from the general pu%li* as

well as from the %usiness *ommunit&+ An&one who wants to sa)e mone& for future

*an deposit his sa)ings in a %an'+ Businessmen ha)e in*ome from sales out of whi*h

the& ha)e to ma'e pa&ment for e(penses+ $he& *an 'eep their earnings from sales

safel& deposited in %an's to meet their e(penses from time to time+ On deposits0

%an's gi)e interest0 whi*h adds to the original amount of deposit+ It is a great

in*enti)e to the depositor+ On the %asis of deposits %an's also grant loans and

ad)an*es to farmers0 traders and %usinessmen for produ*ti)e purposes+ $here%& %an's

*ontri%ute to the e*onomi* de)elopment of the *ountr& and well %eing of the people in

general+ Ban's also *harge interest on loans+ $he rate of interest is generall& higher

than the rate of interest allowed on deposits+ Ban's also *harge fees for the )arious

other ser)i*es0 whi*h the& render to the %usiness *ommunit& and pu%li* in general+

Interest re*ei)ed on loans and fees *harged for ser)i*es whi*h e(*eed the interest

allowed on deposits are the main sour*es of in*ome for %an's from whi*h the& meet

their administrati)e e(penses+ $he a*ti)ities *arried on %& %an's are *alled %an'ing

a*ti)it&+ Ban'ingH as an a*ti)it& in)ol)es a**eptan*e of deposits and lending or

in)estment of mone&+ It fa*ilitates %usiness a*ti)ities %& pro)iding mone& and *ertain

ser)i*es that help in e(*hange of goods and ser)i*es+ $herefore0 %an'ing is an

important au(iliar& to trade+ It not onl& pro)ides mone& for the produ*tion of goods

and ser)i*es %ut also fa*ilitates their e(*hange %etween the %u&er and seller+

ROLE OF 0AN6ING7 8

i+ It a*ts as an intermediar& %etween people ha)ing surplus mone& and those

requiring mone& for )arious %usiness a*ti)ities+

ii+ It fa*ilitates %usiness transa*tions through re*eipts and pa&ments %& *heques

instead of *urren*&+

iii+ It pro)ides loans and ad)an*es to %usinessmen for short term and long8term

purposes+


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i)+ It also fa*ilitates import e(port transa*tions+

)+ It helps in national de)elopment %& pro)iding *redit to farmers0 small8s*ale

industries and self8emplo&ed people as well as to large %usiness houses whi*h

lead to %alan*ed e*onomi* de)elopment in the *ountr&+

)i+ It helps in raising the standard of li)ing of people in general %& pro)iding

loans for pur*hase of *onsumer dura%le goods0 houses0 automo%iles0 et*+

$he Indian %an'ing *an %e %roadl& *ategoried into nationalied .go)ernment

owned/0 pri)ate %an's and spe*ialied %an'ing institutions+ $he Reser)e Ban' of

India a*ts a *entralied %od& monitoring an& dis*repan*ies and short*oming in the

s&stem+ $he need to %e*ome highl& *ustomer fo*used has for*ed the slow8mo)ing

pu%li* se*tor %an's to adopt a fast tra*' approa*h+ $he Indian %an'ing has finall&

wor'ed up to the *ompetiti)e d&nami*s of the newH Indian mar'et and is addressing

the rele)ant issues to ta'e on the multifarious *hallenges of glo%aliation+ Ban's that

emplo& I$ solutions are per*ei)ed to %e futuristi*H and proa*ti)e pla&ers *apa%le of

meeting the multifarious requirements of the large *ustomerHs %ase+ Pri)ate Ban's

ha)e %een fast on the upta'e and are re8orienting their strategies using the internet as a

medium $he Internet has emerged as the new and *hallenging frontier of mar'eting

with the *on)entional ph&si*al world tenets %eing ust as appli*a%le li'e in an& other

mar'eting medium+$he Indian %an'ing saw dramati* *hanges in the last de*ade or so

e)er sin*e the ad)ent of li%eraliation and IndiaHs integration with the world e*onom&+

$hese e*onomi* reforms and the entr& of pri)ate pla&ers saw nationalied %an's

re)amp their ser)i*e and produ*t portfolio to in*orporate new0 inno)ati)e *ustomer8*entri* s*hemes+ $a'ing a leaf out of the pri)ate se*tor %an's0 the pu%li* se*tor %an's

too went for maor image *hanges .in*luding *orporate %rand %uilding e(er*ises/ and

*ustomer friendl& s*hemes+ $hese *ustomer friendl& programs in*luded re)amping of

the produ*t and ser)i*e portfolio %& introdu*ing new produ*t ? ser)i*e s*hemes .li'e

*redit *ards0 hassle8free housing loan s*hemes0 edu*ational loans and fle(i8deposit

s*hemes/ integration of the %ran*h networ' %& using ad)an*e networ'ing te*hnolog&

and *ustomer personaliation programs .through A$Ms and an&time %an'ing et*+/+ $o


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*ater to the in*reasing *ustomer demands and the surge in %usiness )olumes0 man&

pu%li* se*tor %an's ha)e ploughed %a*' funds to in)est hea)il& in te*hnolog&

upgrades and s&stems li'e !ANs0 ANs0 9A$s et*+

4+9 0a"*groun$ o! t%e tu$(+

No one *an sa& for *ertain where the histor& of loans %egan+ It is li'el& that people

ha)e %een pra*ti*ing lending and %orrowing for as long as there has %een a *on*ept of

ownership+ $he histor& of loans *an %e do*umented at least se)eral thousand &ears

%a*' forms of lending were e)ident in an*ient #ree' and Roman times0 and monetar&

loans were e)en mentioned in the Christian %i%le+ $he modern histor& of loans started

mu*h later than these an*ient times0 of *ourse it is0 howe)er0 important to realie that

lending started mu*h earlier than man& people would imagine and has its origin in

mu*h older times+ $he earl& forms of loans were7 8

a3 In$enture$ 'oan

One of the earl& forms of lending that should %e e(plored in the histor& of loans is the

indentured loan .also 'nown as indentured ser)itude+/ Initiall& pra*ti*ed in the Middle

Ages and through the 1;th *entur& %& landowners and the wealth& indentured

ser)itude allowed poor indi)iduals to %orrow the mone& needed for maor e(penses

su*h as tra)el and real estate+

On*e the land owner or wealth& indi)idual had se*ured a ship passage or pie*e of real

estate for an indi)idual0 that indi)idual would then ha)e to wor' off their de%t o)er

the *ourse of se)eral &ears@ unfortunatel&0 man& a times the land owner was )er&dishonest and would greatl& inflate the de%t or would *ontinue to add pro)isions to

the de%t long after it had %een repaid+ Indentured ser)ants often had )er& few rights0

and were seen %& some wealth& indi)iduals as a wa& to maintain sla)e la%or long after

sla)er& had %een a%olished+

#3 0an*ing 'oan


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!u*'il&0 legitimate %an's were de)eloping e)en as indentured ser)itude was rampant+

Indi)iduals 'nown as mone&lenders pla&ed an important part in the histor& of loans+

In fa*t0 itJs from the Italian mone&lenders of the Middle Ages that we get %oth the

"nglish words F%an' and F%an'rupt that we use toda&+

Italian mone&lenders would set up %en*hes in the lo*al mar'etpla*e .with the word

for %en*h %eing F%an*a from whi*h0 we e)entuall& deri)ed the word F%an'/+ $he

mone&lenders would *harge interest on their loans at a rate that the& set0 and would

sometimes %e quite su**essful and %e*ome )er& wealth&+

As an interesting side note to the histor& of loans0 if the mone&lenders were not

su**essful0 though0 the& would %rea' up their %en*hes and pursue other )enues+ $he

!atin e(pression for %rea'ing up a %en*h in this wa& was %an*a rupta,0 whi*h

e)entuall& %e*ame the "nglish word F%an'rupt .whi*h *arries a mu*h steeper

*onnotation than simpl& a %ro'en %en*h/+

Mo$ern #an*ing 'oan

Of *ourse0 the histor& of loans has progressed quite a %it sin*e the da&s of the Middle

Ages mone&lender+ Interest rates are mu*h more *ontrolled0 loan terms ha)e a mu*h

higher degree of fairness to them0 and the %an's of our era arenJt out to simpl& get as

mu*h mone& out of %orrowers as the& *an+

$he modern %an's0 finan*e *ompanies0 and online lenders that pro)ide loans to the

pu%li* and pri)ate se*tors pro)ide a great ser)i*e to the world e*onom&0 and are

regulated %& %oth lo*al and go)ernmental poli*& so as to ma'e sure that nothing

interferes with that ser)i*e+

,owe)er0 if not for some of the oppression and misdealing that was present

throughout the histor& of lending0 then the fairness and opportunit& that e(ists in

%an'ing toda& might not %e possi%le+ ")en the oppression that resulted from

indentured ser)itude in the past helped to esta%lish modern %an'ing %& showing what

fa*tors needed to %e eliminated so as %est to %enefit %oth lender and %orrower+


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4+: O#;e"ti&e o! t%e tu$(

i+ $o stud& the pro*ess and formalities *ompleted for a*quiring the loan+

ii+ $o pro)e that whi*h %an' is leading in terms of *ustomer satisfa*tion+

iii+ $o pro)e that the agri*ultural se*tor should %e prime *on*ern of the %an's

in >?K+

i&+ $o find whether the agri*ultural loans offered %& the %an's are %enefi*ial

to the people

&+ $o 'now wh& *ustomers are attra*ted to different %an's

&i+ $o 'now whether the *ustomers are satisfied with the wa& the %an'Hs )alue

their land for mortgage+

&ii+ $o 'now a%out the effe*ti)e *ommuni*ation medium for *reating %an'Hs

awareness in the people

4+< S"ope o! t%e tu$(

$o %e *ompetiti)e and su**essful in modern *orporate world0 *onstant *apital flow is

essential+ hether to e(pand &our %usiness or to relo*ate &our produ*tion unit to

some other pla*e for *ost effe*ti)eness0 &ou require finan*e+ ItHs not alwa&s possi%le

to fund them through internal sour*es+ A dela& of a few da&s *an *ost &ou in millions+

$o ma'e &our enterprise su**essful and to run &our %usiness strategi*all&0 a se*ured

%usiness loan is an option worth tr&ing for+ !ife *an ta'e an ad)erse turn at an&

moment+ e *anHt %e *ertain a%out our future responsi%ilities and o%ligations+ In an

hour of need0 we loo' for )arious options to raise mone&+ Man& new wa&s ha)e %een

e)ol)ed to raise mone&0 %ut as a human %eing0 we tend to rel& on the most fa)ored

options+ A se*ured loan pro)ides easier and olden wa& to a*quire loan+


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One *an easil& plan his future in)estments and *an easil& fulfill his requirements and

needs of life without ris'+

!oans li'e housing loans0 *ar loans0 edu*ational ha)e made people to fulfill their

needs at )er& ease+

Benefits to the lender

a/ $he lender of the loan gets the desired rate of interest on the amount he has

owed to the %orrower+

%/ $he lender *an plan his in)estments and *an earn solid amount of returns on

the in)estment to %e utilied in the future and *an %uild a good reputation in

the mar'et+

Benefits to the borrower

a/ $he ad)antage with loans is that &ou *an design &our repa&ment period as well

as monthl& installments a**ording to &our finan*ial *apa*it&+ A se*ured

%usiness loan *omes at a lower interest rate when *ompared with other

%usiness loans+ As these loans are ta'en against *ollateral0 an& default in

repa&ment *an put &our *ommer*ial propert& at ris'+

%/ Interest rates offered on se*ured %usiness loan is )aria%le and easil&

afforda%le+ 9u*h opportunities are pro)ided to entrepreneurs to en*ourage

them and ultimatel& enhan*e the e*onom& of the region+ B& promoting

%usiness or industries0 lo*al go)ernment *an e)en eradi*ate unemplo&ment

and impro)e o)erall standard of li)ing+

4+= Limitation

M& resear*h was limited %e*ause of the fa*t that the maor sour*e of data was from

the annual reports of the *ompanies0 whi*h were su%e*t to a**ounting poli*ies and

pra*ti*es followed %& the *ompan&+
http://www.finance-hub.co.uk/securedbusinessloan.htmlhttp://www.finance-hub.co.uk/securedbusinessloan.htmlhttp://www.finance-hub.co.uk/securedbusinessloan.htmlhttp://www.finance-hub.co.uk/securedbusinessloan.html


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$he maor limitations are

1+ Due to stri*t *onfidentialit& poli*& of the *ompan& the ad)an*e department

pro)ided onl& s*reened information+

6+ A**ura*& of the data pro)ided *annot %e guaranteed whi*h does not *lear idea

with regard to the a*tual fun*tioning+


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)+ Con*lusion0 findings and suggestions+

Resear*h as a pro*ess in)ol)es defining pro%lems0 h&pothesis0 formulation and

organiation and e)aluating data0 deri)ing dedu*tions0 interferen*es and *on*lusion

after *areful testing+

Purpoe o! t%e tu$(

$he main purpose of the stud& is to find out the *ustomer satisfa*tion asso*iated with

ea*h %an' %ased on the *omparati)e anal&sis of the loan pro*edures followed %&

different %an's+

O#;e"ti&e o! genera' reear"%

1+ It e(tends0 )erifies or *orre*ts 'nowledge+

6+ It ena%les us to ha)e a %etter understanding of our world+

?K+

i&+ $o find whether the agri*ultural loans offered %& the %an's are %enefi*ial

to the people

&+ $o 'now wh& *ustomers are attra*ted to different %an's

&i+ $o 'now whether the *ustomers are satisfied with the wa& the %an'Hs )alue

their land for mortgage+

&ii+ $o 'now a%out the effe*ti)e *ommuni*ation medium for *reating %an'Hs

awareness in the people

.(pot%ei


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Nu'' .(pot%ei7 $here is no ne*essit& for anal&ing the *ustomer satisfa*tion

asso*iated with different %an's+

A'ternati&e .(pot%ei7 $here is immense ne*essit& for anal&ing the *ustomer

satisfa*tion asso*iated with different %an's+

Reear"% $eign

A resear*h design is a framewor' or %lueprint for *ondu*ting the resear*h

proe*t+ It spe*ifies the details of the pro*edures ne*essar& for o%taining the

information needed to stru*ture andor sol)e resear*h pro%lem+

On the %asis of fundamental o%e*ti)es of the resear*h we *an *lassif& resear*h design

into two general t&pes7

"(plorator& resear*h

Con*lusi)e resear*h

"(plorator& resear*h is one t&pe of resear*h design0 whi*h has its primar&

o%e*ti)e the pro)ision of insights into0 and *omprehension of0 the pro%lem situation

*onfronting the resear*her+

Con*lusi)e resear*h is designed to assist the de*ision ma'er in

determining e)aluating and sele*ting the %est *ourse of a*tion to ta'e in a gi)en

situation+

Con*lusi)e resear*h *an %e further di)ided into two t&pes78

i+ Des*ripti)e

ii+ "(perimental

$he resear*h design used in this proe*t is a des*ripti)e design+

Des*ripti)e stud& as the name implies is designed to des*ri%e something+ $he term

des*ripti)e resear*h refers to the t&pe of resear*h question0 design0 and data anal&sis

that will %e applied to a gi)en topi*+ It *an in)ol)e *olle*tions of quantitati)e

information that *an %e ta%ulated along a *ontinuum in numeri*al form+ Des*ripti)e


22/124

resear*h in)ol)es gathering data that des*ri%e e)ents and then organies0 ta%ulates0

depi*ts0 and des*ri%es the data *olle*tion+

"(plorator& resear*h is often *ondu*ted %e*ause a pro%lem has not %een *learl&

defined as &et0 or its real s*ope is as &et un*lear+ It allows the resear*her to familiarie

himherself with the pro%lem or *on*ept to %e studied0 and perhaps generate

h&potheses .definition of h&pothesis/ to %e tested+ It is the initial resear*h0 %efore

more *on*lusi)e resear*his underta'en+ "(plorator& resear*h helps determine the %est

resear*h design0 data *olle*tion method and sele*tion of su%e*ts,and sometimes it

e)en *on*ludes that the pro%lem does not e(istQ

In m& proe*t I ha)e used "(plorator& as well as Des*ripti)e Resear*h to understand

the %eha)ior of different t&pes of *ustomers whi*h in turn pro)ided me an opportunit&

to 'now a%out their thin'ing pattern and thus made it easier for me to formulate the

a%o)e mentioned h&pothesis so that m& proe*t *ould rea*h to a logi*al *on*lusion+

As mentioned a%o)e the "(plorator& resear*h was *arried so as to *ome up with the

real pro%lem whi*h was to re)eal the pattern %& how the different t&pes of people

sele*t their desired %an's and what are the *hara*teristi*s that the& o%ser)e in their

%an's %efore going for them+ $his pro%lem was sol)ed %& this e(plorator& resear*h as

it made *lear what the people e(pe*ted from their %an's and wh& the& made the

sele*tion of a parti*ular %an'+

Samp'ing P'an7

9ample nit7 Customers+

9ample $e*hnique7

i+ Pro%a%ilit& and Non Pro%a%ilit& 9ampling0

ii+ Con)enien*e 9ampling

I ha)e used *on)enien*e sampling te*hnique+ Con)enien*e sampling is used in

e(plorator& resear*h where the resear*her is interested in getting an ine(pensi)e

appro(imation of the truth+ As the name implies0 the sample is sele*ted %e*ause the&

are *on)enient+

9ample 9ie7


23/124

A questionnaire is a resear*hinstrument *onsisting of a series of questionsand other

prompts for the purpose of gathering information from respondents+ Although the& are

often designed for statisti*alanal&sis of the responses+

Met%o$ o! "onta"t7$elephone0 personal inter)iew+

Met%o$ o! $ata "o''e"tion

Data is of primaril& of two 'inds+

1+ Primar& data

6+ 9e*ondar& data+

Primar& data *onsists of original information for the spe*ifi* purpose at hand+ It is

first hand information for the dire*t users or respondents+ $he tools used to *olle*t the

data ma& )ar& depending upon the nature of the pro%lem+ $he primar& data was

*olle*ted through uestionnaire0 Inter)iews

9e*ondar& data ma& %e defined as data that has %een *olle*ted earlier for some

purpose other than the purpose of the present stud&+ An& data that is a)aila%le prior to

the *ommen*ement of the resear*h proe*t is se*ondar& data and it is *alled histori*

data

USES OF SECONDARY DATA

It a*ts as a referen*e for the present stud&+

$he se*ondar& data *an %e a useful %en*hmar'0 whi*h the findings of the stud&

*an %e tested+

At times it ma& %e the onl& sour*e of data+

SOURCES OF SECONDARY DATA

Pu%lished 9our*es

npu%lished sour*es
http://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Questionhttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Questionhttp://en.wikipedia.org/wiki/Statistics


24/124

Data "o''e"tion met%o$ "an #e "'ai!ie$ a !o''o)

i+ O%ser)ation

ii+ Inter)iewing

iii+ "(perimentation

i)+ 9imulation

)+ Proe*ti)e te*hniques

)i+ uestionnaire

In this proe*t three methods of *olle*tion were used+ $he& are88888888888888

1+ Inter)iewing+

6+ Pu%lished sour*e of data in the form of %oo's of a**ounts+


25/124

Chapter86

0AN6 PROFILES


26/124

9+? .ouing De&e'opment Finan"e Corporation Limite$ 2.DFC3

$he ,ousing De)elopment -inan*e Corporation !imited .,D-C/ was amongst

the first to re*ei)e appro)al from the Reser)e Ban' of India .RBI/ to set up a %an' in

the pri)ate se*tor0 as part of RBIHs li%eraliation of the Indian Ban'ing Industr&+

,D-C Ban' was in*orporated in August 1;;5 and *ommen*ed operation as a

Commer*ial Ban' in >anuar& 1;;4+ Currentl&0 ,D-C Ban' has a nation spread o)er

112 *ities a*ross the *ountr& and operates in three segments+

a/ holesale %an'ing0

%/ Retail %an'ing

*/ $reasur& ser)i*es+

,D-C Ban' !imited is a pri)ate se*tor %an' in India engaged in retail %an'ing0

wholesale %an'ing and treasur& operations+ $he retail %an'ing di)ision pro)ides loans

against se*urities0 agri*ultural loans0 auto loans0 personal loans0 two8wheeler loans

and %usiness %an'ing loans to small %usinesses0 %ill pa&ment ser)i*es0 *redit *ards0

de%it *ards0 third8part& distri%ution0 in)estment ad)isor& ser)i*es0 *ard and automatedteller ma*hine .A$M/ a*quiring transa*tions and depositar& ser)i*es+ $hrough its

wholesale %an'ing operations0 the Ban' pro)ides loans0 deposit produ*ts0

do*umentar& *redits0 guarantees0 %ullion trading and foreign e(*hange and deri)ati)e

produ*ts+ It also pro)ides *ash management ser)i*es0 *learing and settlement ser)i*es

for sto*' e(*hanges0 ta( and other *olle*tions for the go)ernment0 *ustod& ser)i*es

for mutual funds and *orrespondent %an'ing ser)i*es+ $he treasur& group manages its

%alan*e sheet and pro)ides foreign e(*hange and deri)ati)e produ*ts for its *lients+


27/124

,D-C Ban' !imited+ $he #roupJs prin*ipal a*ti)ities are the pro)ision of %an'ing

and other finan*ial ser)i*es+ $he #roupJs holesale %an'ing operations in*ludes a

wide arra& of *ommer*ial0 transa*tional and ele*troni* %an'ing produ*ts through

inno)ati)e produ*t de)elopment and a well integrated approa*h to relationship

management to *orporate and institutional *lients+ $he $reasur& ser)i*es of the #roup

*onsist of foreign e(*hange ? deri)ati)es0 mone& mar'ets ? de%t se*urities and

equities in)estments ? ad)isor&+ $he Retail %an'ing ser)i*es in*ludes

A$Ms0 phone %an'ing and net %an'ingL and *apital mar'ets infrastru*ture

whi*h pro)ides transa*tional %an'ing and pa&ment ser)i*es for *apital mar'et related

pa&ments su*h as di)idends0 interests0 et*+ and strategi* in)estments+

9+?+4 T%e "%a''enge7

"ffi*ientl& Deplo& Criti*al Appli*ations to Bran*h offi*es+ 7 8 $he sheer sie and

*omple(it& of ,D-C Ban'Hs operation made it diffi*ult to deplo& new %usiness8

*riti*al %an'ing appli*ations to hundreds of %ran*hes swiftl& and effi*ientl&+

Operating in an industr& where speed0 effi*ien*& and *ustomer responsi)eness are 'e&

performan*e metri*s0 dela&s in appli*ation deplo&ment mean a loss of produ*ti)it&0

and spiraling maintenan*e and support *osts+

F,owe)er0 the e(isting I$ *hallenges at ,D-C Ban' also entailed %ringing a

standardied s&stem a*ross the enterprise that would ena%le us to a*hie)e a %roader

spe*trum of operational and strategi* %enefitsG+

9+?+9 Promoter

,D-C is IndiaJs premier housing finan*e *ompan& and eno&s an impe**a%le tra*'

re*ord in India as well as in international mar'ets+ 9in*e its in*eption in 1;==0 the

Corporation has maintained a *onsistent and health& growth in its operations to

remain a mar'et leader in mortgages+ Its outstanding loan portfolio *o)ers well o)er a

million dwelling units+ ,D-C has de)eloped signifi*ant e(pertise in retail mortgage

loans to different mar'et segments and also has a large *orporate *lient %ase for its

housing related *redit fa*ilities+ ith its e(perien*e in the finan*ial mar'ets0 a strong

mar'et reputation0 large shareholder %ase and unique *onsumer fran*hise0 ,D-C was


28/124

ideall& positioned to promote a %an' in the Indian en)ironment+

9+?+: 0uine Fo"u7 8

,D-C Ban'Js mission is to %e a orld8Class Indian Ban'+ $he Ban'Js aim is to %uild

sound *ustomer fran*hises a*ross distin*t %usinesses so as to %e the preferred pro)ider

of %an'ing ser)i*es in the segments that the %an' operates in and to a*hie)e health&

growth in profita%ilit&0 *onsistent with the %an'Js ris' appetite+ $he %an' is *ommitted

to maintain the highest le)el of ethi*al standards0 professional integrit& and regulator&

*omplian*e+ ,D-C Ban'Js %usiness philosoph& is %ased on four *ore )alues7

a/ Operational "(*ellen*e

%/ Customer -o*us

*/ Produ*t !eadership

d/ People+

Time 0an* Ama'gamation

In a milestone transa*tion in the Indian %an'ing industr&0 $imesBan' !imited

.another new pri)ate se*tor %an' promoted %& Bennett0 Coleman ? Co+$imes #roup/

was merged with ,D-C Ban' !td+0 effe*ti)e -e%ruar& 6:0 6222+ As per the s*heme of

amalgamation appro)ed %& the shareholders of %oth %an's and the Reser)e Ban' of

India0 shareholders of $imes Ban' re*ei)ed 1 share of ,D-C Ban' for e)er& 4+=4

shares of $imes Ban'+ $he amalgamation added signifi*ant )alue to ,D-C Ban' in

terms of in*reased %ran*h networ'0 e(panded geographi* rea*h0 enhan*ed *ustomer

%ase0 s'illed manpower and the opportunit& to *ross8sell and le)erage alternati)e

deli)er& *hannels+

9+?+< Ditri#ution Net)or*

,D-C Ban' is headquartered in Mum%ai+ $he Ban' at present has an en)ia%le

networ' of o)er 5


29/124

strong retail *ustomer %ase for %oth deposits and loan produ*ts+ $he Ban' also

has a networ' of o)er 12:; networ'ed A$Ms a*ross these *ities+ Moreo)er0

,D-C Ban'Js A$M networ' *an %e a**essed %& all domesti* and international

isaMasterCard0 isa "le*tronMaestro0 PlusCirrus $he Ban'Js Board of

Dire*tors is *omposed of eminent indi)iduals with a wealth of e(perien*e in

pu%li* poli*&0 administration0 industr& and *ommer*ial %an'ing+ 9enior

e(e*uti)es representing ,D-C are also on the Board+ 9enior %an'ing

professionals with su%stantial e(perien*e in India and a%road head )arious

%usinesses and fun*tions and report to the Managing Dire*tor+ #i)en the

professional e(pertise of the management team and the o)erall fo*us on

re*ruiting and retaining the %est talent in the industr&0

9+?+= Te"%no'og(

,D-C Ban' operates in a highl& automated en)ironment in terms of information

te*hnolog& and *ommuni*ation s&stems+ $he entire %an'Js %ran*hes ha)e *onne*ti)it&

whi*h ena%les the %an' to offer speed& funds transfer fa*ilities to its *ustomers+

Multi8%ran*h a**ess is also pro)ided to retail *ustomers through the %ran*h networ'

and Automated $eller Ma*hines .A$Ms/+

$he Ban' has made su%stantial efforts and in)estments in a*quiring the %est

te*hnolog& a)aila%le internationall& to %uild the infrastru*ture for a world8*lass %an'+

In terms of software0 the Corporate Ban'ing %usiness is supported %& -le(*u%e0 while

the Retail Ban'ing %usiness %& -inware0 %oth from i8fle( 9olutions !td+

$he Ban' has prioritied its engagement in te*hnolog& and the internet as one of its

'e& goals and has alread& made signifi*ant progress in we%8ena%ling its *ore

%usinesses+ In ea*h of its %usinesses0 the Ban' has su**eeded in le)eraging its mar'et

position0 e(pertise and te*hnolog& to *reate a *ompetiti)e ad)antage and %uild mar'et

share+

9+?+> 0uine Pro!i'e @ Rating

0uine Pro!i'e

,D-C Ban' *aters to a wide range of %an'ing ser)i*es *o)ering *ommer*ial and

in)estment %an'ing on the wholesale side and transa*tional %ran*h %an'ing on the


30/124

retail side+ $he %an' has three 'e& %usiness areas+ 78

a//%o'ea'e 0an*ing Ser&i"e

$he Ban'Js target mar'et is primaril& large0 %lue8*hip manufa*turing *ompanies in the

Indian *orporate se*tor and to a lesser e(tent0 emerging mid8sied *orporate+ -or these

*orporate0 the Ban' pro)ides a wide range of *ommer*ial and transa*tional %an'ing

ser)i*es0 in*luding wor'ing *apital finan*e0 trade ser)i*es0 transa*tional ser)i*es0 *ash

management0 et*+ $he %an' is also a leading pro)ider of stru*tured solutions whi*h

*om%ine *ash management ser)i*es with )endor and distri%utor finan*e for

fa*ilitating superior suppl& *hain management for its *orporate *ustomers+ Based on

its superior produ*t deli)er& ser)i*e le)els and strong *ustomer orientation0 the Ban'

has made signifi*ant inroads into the %an'ing *onsortia of a num%er of leading Indian

*orporate in*luding multinationals0 *ompanies from the domesti* %usiness houses and

prime Pu%li* 9e*tor *ompanies+ It is re*ognied as a leading pro)ider of *ash

management and transa*tional %an'ing solutions to *orporate *ustomers0 mutual

funds0 sto*' e(*hange mem%ers and %an's+

%/Retai'0an*ing Ser&i"e7 8$he o%e*ti)e of the Retail Ban' is to pro)ide its target

mar'et *ustomers a full range of finan*ial produ*ts and %an'ing ser)i*es0 gi)ing the

*ustomer a one8stop window for all hisher %an'ing requirements+ $he produ*ts are

%a*'ed %& world8*lass ser)i*e and deli)ered to the *ustomers through the growing

%ran*h networ'0 as well as through alternati)e deli)er& *hannels li'e A$Ms0

PhoneBan'ing0 NetBan'ing and Mo%ileBan'ing+

$he ,D-C Ban' preferred program for high net worth indi)iduals0 the ,D-C Ban'

Plus and the In)estment Ad)isor& 9er)i*es programs ha)e %een designed 'eeping in

mind needs of *ustomers who see' distin*t finan*ial solutions0 information and ad)i*eon )arious in)estment a)enues+ $he Ban' also has a wide arra& of retail loan produ*ts

in*luding Auto !oans0 !oans against mar'eta%le se*urities0 Personal !oans and !oans

for $wo8wheelers+ It is also a leading pro)ider of Depositor& 9er)i*es to retail

*ustomers0 offering *ustomers the fa*ilit& to hold their in)estments in ele*troni* form+

*/Treaur( Operation7 8ithin this %usiness0 the %an' has three main produ*t areas

8 -oreign "(*hange and Deri)ati)es0 !o*al Curren*& Mone& Mar'et ? De%t

9e*urities0 and "quities+ ith the li%eralisation of the finan*ial mar'ets in India0


31/124

*orporates need more sophisti*ated ris' management information0 ad)i*e and produ*t

stru*tures+ $hese and fine pri*ing on )arious treasur& produ*ts are pro)ided through

the %an'Js $reasur& team+ $o *ompl& with statutor& reser)e requirements0 the %an' is

required to hold 64 of its deposits in go)ernment se*urities+

Rating

,D-C Ban' has its deposit programmes rated %& two rating agen*ies 8 Credit

Anal&sis ? Resear*h !imited .CAR"/ and -it*h Ratings India P)t+ !td+ $he Ban'Js

-i(ed Deposit programme has %een rated JCAR" AAA .-D/J S$riple AT %& CAR"0

whi*h represents instruments *onsidered to %e of the %est qualit&0 *arr&ing negligi%lein)estment ris'+ CAR" has also rated the Ban'Js Certifi*ate of Deposit .CD/

programme PR 1U whi*h represents superior *apa*it& for repa&ment of short term

promissor& o%ligations+ -it*h Ratings India P)t+ !td+ .122 su%sidiar& of -it*h In*+/

has assigned the tAAA .ind/ rating to the Ban'Js deposit programme0 with the

outloo' on the rating as sta%le+ $his rating indi*ates highest *redit qualit& where

prote*tion fa*tors are )er& high+ In ea*h *ase referred to a%o)e0 the ratings awarded

were the highest assigned %& the rating agen*& for those instruments+

9+?+ Corporate Go&ernan"e Rating78

$he %an' was one of the first four *ompanies whi*h su%e*ted itself to a Corporate

#o)ernan*e and alue Creation .#C/ rating %& the rating agen*&0 $he Credit Rating

Information 9er)i*es of India !imited .CRI9I!/+ $he rating pro)ides an independent

assessment of an entit&Hs *urrent performan*e and an e(pe*tation on its %alan*ed

)alue *reation and *orporate go)ernan*e pra*ti*es in future+ $he %an' has %eenassigned a CRI9I! #C !e)el 1J rating whi*h indi*ates that the %an'Js *apa%ilit&

with respe*t to wealth *reation for all its sta'eholders while adopting sound *orporate

go)ernan*e pra*ti*es is the highest+ It is well8re*ognied fa*t that the qualit& of

finan*ial management is a 'e& ingredient in determining the su**ess of an

organiation+ $his is e)en more rele)ant in a ser)i*e industr& li'e %an's+ At ,D-C

Ban'0 the& wor' for ultimate identit& and su**ess of their %an' will reside0 as it

alwa&s has0 in the e(*eptional qualit& of their people and their e(traordinar& effort+


32/124

$he %an' is onl& as strong as its infrastru*ture and its pro*esses+ At ,D-C Ban'0 right

from in*eption0 the& ha)e in)ested in a ro%ust te*hnolog& platform that is seamlessl&

integrated with *entralied and audited pro*esses+ $his has ena%led them to e(pand

rapidl& and grow manifold while maintaining a**epta%le ser)i*e standards+ $he

%an'Hs well8do*umented pro*edures0 high le)els of automation0 intensi)e training of

personnel and ongoing audit re)iew had ena%led then to impro)e the relia%ilit& of

their operational pro*esses+ I9O ;226 *ertifi*ations of their *ash management0 retail

*entralied pro*essing and *ustod& and depositor& operations are indi*ati)e of their

a*hie)ements in this regard+


33/124

9+4 -@6 0an*

>?K Ban' fun*tions as a uni)ersal %an' in >ammu ? Kashmir and as a spe*ialied %an' in

the rest of the *ountr&+ It is also the onl& pri)ate se*tor %an' designated as RBIHs agent for

%an'ing %usiness0 and *arries out the %an'ing %usiness of the Central #o)ernment0 %esides

*olle*ting *entral ta(es for CBD$+ $he >ammu ? Kashmir Ban' is toda& one of the fastest

growing %an's in India with a networ' of more than 422 %ran*hesoffi*es spread a*ross the

*ountr& offering world *lass %an'ing produ*tsser)i*es to its *ustomers+ $oda&0 the Ban'

has a status of )alue dri)en organiation and is alwa&s wor'ing towards %uilding trust with

9hareholders0 "mplo&ees0 Customers0 Borrowers0 Regulators and other di)erse

9ta'eholders0 for whi*h it has adopted a strateg& dire*ted to de)eloping a sound foundation

of relationship and trust aimed at a*hie)ing e(*ellen*e0 whi*h of *ourse0 *omes from the

wom% of good Corporate #o)ernan*e+ #ood #o)ernan*e is a sour*e of *ompetiti)e

ad)antage and a *riti*al input for a*hie)ing e(*ellen*e in all pursuits+

>?K Ban' *onsiders good Corporate #o)ernan*e as the sine qua non of a good %an'ing

s&stem and has adopted a poli*& %ased on all the four pillars of good go)ernan*e

transparen*&0 dis*losures0 a**ounta%ilit& and )alue0 ena%ling it to pra*ti*e trusteeship0

transparen*&0 fairness and *ontrol0 leading to sta'eholders delight0 enhan*ed shareholder)alue and ethi*al *orporate *itienship+ It also ensures that %an' is managed %& an

independent and highl& qualified Board following %est glo%all& a**epted pra*ti*es0

transparent dis*losures and empowerment of shareholders0 %esides ensuring to meet

shareholders aspirations and so*ietal e(pe*tations following the prin*iples of managementJs

e(e*uti)e freedom to dri)e the %an' forward without undue restraints %ut within the

framewor' of effe*ti)e a**ounta%ilit&+

$he e(*ellen*e a*hie)ed %& the %an' in its operations stemming from the roots of )oluntar&

good #o)ernan*e has not gone unre*ognied and Ban' has re*entl& %agged three )er&

prestigious awards for following fair %usiness pra*ti*es and *ommitment to so*ial

o%ligations+


34/124

9+4+4 Compan( .itor(

"ntire %an'ing in the state of >ammu and Kashmir was performed %& traditional lenders till

1;62 8


35/124

!OAN9 AND ADANC"9

-ollowing the e(tension of Central laws to the state of >ammu ? Kashmir0 the %an' was

defined as a go)t+ *ompan& as per the pro)isions of Indian *ompanies a*t 1;4:+$he %an'

had its first full time *hairman in 1;=10 following so*ial Central measures in %an's +$he

&ear 1;=1 was a turning point for the %an' on *onferment of s*heduled %an' status and

witnessed remar'a%le progress in all the )ital fields of operations +$he %an' was de*lared

as A Class Ban' %& Reser)e Ban' of India in 1;=: +In re*ognition of dominant role and

e(alted performan*e0 Reser)e %an' of India appointed the %an' as its agent for performing

the general %an'ing %usiness of the Central #o)t+ espe*iall& in maintaining *urren*& *hests

and *olle*tion of ta(es+

9+4+9 Corporate O&er&ie)

$he Ban' has also a*hie)ed the distin*tion of winning the Runner up troph& at prestigiousAsian Corporate 9o*ial Responsi%ilit& -orum re*entl&+ Corporate 9o*ial Responsi%ilit&

.C9R/ is trul& em%edded in the Ban'Js da&8to8da& %usiness0 poli*& and strateg& and

addresses all sta'eholders+ C9R is not ust an add8onJ or a one time onl& su%e*t0 %ut is

integrated into the organiationJs management pra*ti*es+

$he Board of Dire*tors and Management of the Ban' are full& aware of Ban'Js Corporate

Responsi%ilit& as a *orporate *itien and are a*ti)el& in)ol)ed and *ommitted towards their

*orporate o%ligations towards all the sta'eholders+ $he Ban' follows the *on*ept that

e(*ellen*e in C9R is e(*eeding the minimum regulator& framewor' in whi*h the

organiation operates and to stri)e to understand and respond to the e(pe*tations of their

sta'eholders in so*iet&+ $he C9R poli*& of the Ban' in)ol)es meeting the needs of all

sta'eholders and not ust shareholders against some form of ethi*al %asis+ $he Ban' is

*ommitted to the %est and transparent *orporate go)ernan*e pra*ti*es+ It %elie)es that

proper *orporate go)ernan*e pra*ti*es lead to effe*ti)e management and *ontrol of

%usiness0 whi*h in turn pro)ides %est )alue to all its sta'eholders+

$he Ban'Js C9R is rooted in its Corporate #o)ernan*e philosoph&0 whi*h in turn is wo)en

around Ban'Js *ommitment to ethi*al pra*ti*es in the *ondu*t of its %usiness0 while stri)ing

in the *onstant quest to grow with profits and enhan*e shareholders )alue and align


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interests of the shareholders0 sta'eholders and so*iet& through adoption of %est

international pra*ti*es and standards+ Managing C9R is not )iewed as an e(tra *ost or

%urden %ut is )iewed not onl& as ma'ing good %usiness sense %ut also *ontri%uting to the

long8term prosperit& of our Ban' and ultimatel& its sur)i)al+ Being good neigh%ors and

showing that &ou *are on the one hand and %eing a su**essful %usiness on the other0 are flip

sides of the same *oin+

$he three *olored squares represent the regions of >ammu0 Kashmir and !ada'h+ $he

*ounter8form *reated %& the intera*tion of the squares is a fal*on with outstret*hed wings

a s&m%ol of power and empowerment+ #reen signifies growth and renewal0 %lue *on)e&s

sta%ilit& and unit& and red represents energ& and power+H $he >?K Ban' is rated P1U0

indi*ating the highest degree of safet& %& 9tandard ? Poor and CRI9I!

9+4+: Viion7 8 $o *atal&e e*onomi* transformation and *apitalie on growth+

9+4+< Miion7 8 $o pro)ide the people of >?K international qualit& finan*ial ser)i*e and

solutions and to %e a super8spe*ialist %an' in the rest of the *ountr&+ $he two together will

ma'e it the most profita%le Ban' in the *ountr&+


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9+9 State 0an* o! In$ia

9tate Ban' of India .9BI/ is the largest %an'ing and finan*ial ser)i*es*ompan& in India %&

re)enue0 assets and mar'et *apitaliation+ It is a state8owned *orporation with its

headquarters in Mum%ai0 Maharashtra+ As of Mar*h 62110 it had assets of 9V


38/124

raise loans from time to time and also pro)ide a degree of sta%ilit& to the pri*es of

go)ernment se*urities

!isted on the left are 9er)i*es0 9BI offers to its *ustomers+

Domesti* treasur&

Bro'ing ser)i*es

Re)ised ser)i*e *harges

A$M ser)i*es

Internet %an'ing

"8pa&


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9+: Pun;a# Nationa' 0an*

Puna% National Ban' .PNB/ is an Indian finan*ial ser)i*es*ompan& %ased inNew Delhi0

India+ PNB is the third largest %an' in India %& assets+ It was founded in 13;5 and is

*urrentl& the se*ond largest state8owned *ommer*ial %an' in India ahead of Ban' of

Barodawith a%out 4222 %ran*hes a*ross =:5 *ities+ It ser)es o)er


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Chapter ul& 1;;


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Loan

A loan is granted for a spe*ifi* time period+ #enerall& *ommer*ial %an's pro)ide

short8term loans+ But term loans0 i+e+0 loans for more than a &ear ma& also %e granted+ $he

%orrower ma& %e gi)en the entire amount in lump sum or in installments+ !oans are

generall& granted against the se*urit& of *ertain assets+ A loan is normall& repaid in

installments+ ,owe)er0 it ma& also %e repaid in lump sum+

A$&an"e

An ad)an*e is a *redit fa*ilit& pro)ided %& the %an' to its *ustomers+ It differs from

loan in the sense that loans ma& %e granted for longer period0 %ut ad)an*es are normall&

granted for a short period of time+ -urther the purpose of granting ad)an*es is to meet the

da&8to8da& requirements of %usiness+ $he rate of interest *harged on ad)an*es )aries from

%an' to %an'+ Interest is *harged onl& on the amount withdrawn and not on the san*tioned

amount+

:+4 T(pe o! A$&an"e

Ban's grant short8term finan*ial assistan*e %& wa& of *ash *redit0 o)erdraft and %ill

dis*ounting+

a3 Ca% Cre$it

Cash *redit is an arrangement where%& the %an' allows the %orrower to draw

amount up to a spe*ified limit+ $he amount is *redited to the a**ount of the *ustomer+ $he

*ustomer *an withdraw this amount as and when he requires+ Interest is *harged on the

amount a*tuall& withdrawn+ Cash Credit is granted as per terms and *onditions agreed with

the *ustomers+

#3 O&er$ra!t

O)erdraft is also a *redit fa*ilit& granted %& %an'+ A *ustomer who has a *urrent

a**ount with the %an' is allowed to withdraw more than the amount of *redit %alan*e in his

a**ount+ It is a temporar& arrangement+ O)erdraft fa*ilit& with a spe*ified limit ma& %e

allowed either on the se*urit& of assets0 or on personal se*urit&0 or %oth+

"3 Di"ounting o! 0i''

Ban's pro)ide short8term finan*e %& dis*ounting %ills0 that is0 ma'ing pa&ment of

the amount %efore the due date of the %ills after dedu*ting a *ertain rate of dis*ount+ $he

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part& gets the funds without waiting for the date of maturit& of the %ills+ In *ase an& %ill is

dishonored on the due date0 the %an' *an re*o)er the amount from the *ustomer+

ii3 Se"on$ar( !un"tion

In addition to the primar& fun*tions of a**epting deposits and lending mone&0 %an's

perform a num%er of other fun*tions+ $hese are as follows0

a+ Issuing letters of *redit0 tra)elerHs *heque0 et*+

%+ nderta'ing safe *ustod& of )alua%les0 important do*ument and se*urities

%& pro)iding safe deposit )aults or lo*'ers+

*+ Pro)iding *ustomers with fa*ilities of foreign e(*hange dealings+

d+ $ransferring mone& from one a**ount to anotherL and from one %ran*h to another

%ran*h of the %an' through *heque0 pa& order0 demand draft+

e+ 9tanding guarantee on %ehalf of its *ustomers0 for ma'ing pa&ment for pur*hase of

goods0 ma*hiner&0 )ehi*les et*+

f+ Colle*ting and suppl&ing %usiness information+

g+ Pro)iding reports on the *redit worthiness of *ustomers+

i+ Pro)iding *onsumer finan*e for indi)iduals %& wa& of loans on eas& terms for

pur*hase of *onsumer dura%les li'e tele)isions0 refrigerators0 et*+

:+9 9hett& assessed the dimensional *hange in *redit deplo&ment during the first fi)e

&ears of nationaliation in relation to *hanges in output and pri*es+ $he rationale for his

anal&sis was the fa*t that0 in an& a**epted model of demand for mone&0 one *ommon

)aria%le is the gross national produ*t or some other )ariant of it in real terms+

Consequentl&0 he h&pothesied that *redit for an& se*tor or industr& o)er a period has to

ha)e some relationship with its performan*e in real terms0 parti*ularl& output+ ,e

o%ser)ed a de*lining trend in the *redit e(tended %& %an's to industries sin*e

nationaliation0 though it was higher than other se*tors+ On finding that the share ofmanufa*turing se*tor in %an' *redit is higher than its share in Net Domesti* Produ*t

.NDP/ he *on*ludes that in*rease in %an' *redit has o**urred far in e(*ess of in*rease in

output during the &ears 1;:31:; to 1;=


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In his other paper0 shett&5 o%ser)ed that the share of medium and large industr& in total

%an' *redit had de*lined due to priorit& se*tor lending+ Another o%ser)ation in line with his

earlier finding was that growth in %an' *redit had alwa&s %een disproportionate to growth

of their ph&si*al output0 espe*iall& in industries li'e *otton te(tiles+ ,is o%ser)ation for the

&ears re)ealed7

In*rease in a)erage %an' *redit had %een higher than the growth of NDP

originating in registered manufa*turing se*tor e)en at *urrent pri*es+

An appre*ia%le in*rease in the rate of short8term %an' *redit to in)entories and

Relati)el& higher relian*e on trade *redit

In line with these o%ser)ations0 he suggested poli*ies to s*rutinie *redit *laims )igorousl&

and relate *redit to the genuine produ*tion requirements so that funds are not tied up with

these large %orrowers+

:+: Di)atia and shan'ar in their paper dis*ussed the role of internal and e(ternal sour*es

of funds and their *omponents in finan*ing *apital formation of the pri)ate *orporate

se*tor+ $he stud& was %ased on the RBI *ompan& finan*e studies relating to medium and

large pu%li* and pri)ate limited *ompanies and *o)ered the period 1;:18=:+ $he& also

dis*ussed the trends and patterns of finan*ing for four indi)idual industries0 )i0 *otton

te(tiles0 ute0 sugar and *ement+

:+< 9 Ad)e had some interesting findings in his arti*le -inan*ial Pra*ti*es in Indian

Corporate 9e*tor0 %ased on the RBI *ompan& finan*e data+ ,e underlined the rising

dependen*e on %orrowed *apital in relation to the total *apital emplo&ed in the Indian

*orporate se*tor+ $rade *redit was pointed out to %e important sour*es of *apital when the

%an' *redit was squeeed+ Ma'ing an industr& wise anal&sis the author *ame to the

*on*lusion that the industries with large profit margins and those with large depre*iation

and de)elopment re%ate reser)es had a relati)el& lower order of o)erall inde%tedness and

man& of them also had a lower order of %an' %orrowings in relation to o)erall

inde%tedness+ Industries with high profit margin su*h as sil' and ra&on te(tiles0 aluminum0

%asi* industrial *hemi*als and medi*ine and pharma*euti*al preparations had lower

551 P a g e


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proportion of %orrowed funds as *ompared to the a)erage of the medium and large pu%li*

!td+ *ompanies+

:+= M+9+>oshi e(amined the role of finan*ial intermediaries in pro)iding finan*e to

large8s*ale industries in the pri)ate se*tor+ After anal&ing the *ontri%ution of ea*h

important intermediar& towards industrial de)elopment in India0 he estimated that these

intermediaries ha)e parti*ipated with 1= of in)estment in )arious industries against Among the re*ent studies0 9unandaJs stud& of institutional agri*ultural *redit in

>?K highlights the inter distri*t disparit&+ 9he re)iews the so*io8e*onomi* %a*'ground for

the origin and growth of %an's in Kerala .performan*e of *ommer*ial %an's and *o8

operati)es onl&/ and *on*entrates on the agri*ultural *redit dis%ursed %& them+ In *redit

per he*tare0 Kulgam and Ko'ernag stood highest while Anantnag ran'ed the lowest+

Regional in*reased+ 9he has used Prin*ipal Component Anal&sis to e(plain the )ariation+

$hree sets of )aria%les are used for e(plaining the )ariation of *redit per he*tare from

*ommer*ial %an's and *o8operati)es )i Ban'ing )aria%les0 Asset )aria%les0 Produ*ti)it&

)aria%les+

:+ Indigenous -inan*ial Agen*ies $he a)aila%ilit& of literature on indigenous finan*ial

s&stem is s*ar*e+ $he Central and Pro)in*ial Ban'ing "nquir& Committee Reports gi)e

*omprehensi)e information regarding the wor'ing of the agen*ies+ But e)en su*h

information appears to ha)e %e*ome outdated in man& respe*ts as the enquir& was

*ondu*ted more than 44 &ears ago+ $he Rural *redit sur)e& and Central %an'ing "nquir&

Committee attempted to o%tain quantitati)e information0 in*luding *apital in)ested in the

%usiness from the agen*ies %ut failed in their tas'+ ,en*e as far as the quantitati)e aspe*t

is *on*erned0 it is impossi%le to *olle*t *orre*t information from these agen*ies as theirnature of %usiness is sele*ti)e and also as their e(a*t num%er is not 'nown+

:+B BA Pra'sh pro)ides an interesting a**ount of the fun*tioning of pri)ate finan*ing

firms in >?K+ $he stud& %ased on a sur)e& of the pri)ate finan*ing firms in 9rinagar town

see's to e(amine the fa*tors0 whi*h *ontri%uted to the emergen*e of these institutions0 the

541 P a g e


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method of their fun*tioning and their importan*e as a parallel %an'ing s&stem+ ,owe)er

he is silent on questions su*h as t&pes of %orrowers0 total amount of un*ounted mone&

generated %& the pri)ate finan*ing firms0 safet& of depositorsJ mone& and so on+

:+ Intro$u"tion to -ammu an$ 6a%mir7 8

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>ammu and Kashmir is the northernmost state of India+ It is situated mostl& in the

,imala&anmountains+ >ammu and Kashmir *onsists of three regions7 >ammu0 the Kashmir

)alle& and !ada'h+ 9rinagaris the summer *apital0 and >ammuis the winter *apital+ hile

the Kashmir )alle& is famous for its %eautiful mountainous lands*ape0 >ammuJs numerous

shrines attra*t tens of thousands of ,indu pilgrims e)er& &ear+ !ada'h0 also 'nown as

!ittle $i%et+ Be*ause of >ammu and KashmirJs wide range of ele)ations0 its %iogeograph&

is di)erse+ In >ammu and Kashmir0 the prin*ipal spo'en languages are Kashmiri0 rdu0

Dogri0 Pahari0 and Pashto+ ,owe)er0 rdu written in the Persian s*ript is the offi*ial

language of the state+ Man& spea'ers of these languages use ,indior "nglish as a se*ond

language+ >ammu and Kashmir is the onl& state in India whi*h eno&s spe*ial autonom&

underArti*le ammu and Kashmir unless it is ratified %& the state legislature

of >ammu and Kashmir+

>ammu and KashmirJs e*onom& is predominantl& dependent on ari!ulture and allied

a*ti)ities+ $he Kashmir )alle& is also 'nown for its seri*ultureand *old8water fisheries+

ood from Kashmir is used to ma'e high8qualit& *ri*'et %ats0 popularl& 'nown as Kashmir

illow+ Kashmiri saffronis also )er& famous and %rings the state a handsome amount of

foreign e(*hange+ Agri*ultural e(ports from >ammu and Kashmir in*lude apples0 %arle&0

*herries0 *orn0 millet0 oranges0 ri*e0 pea*hes0 pears0 saffron0 sorghum0 )egeta%les0 and

wheat+ $he #o)ernment of India has %een 'een to e*onomi*all& integrate >ammu and

Kashmir with the rest of India

9e)eral %an's operating in >?K are as78

1+ >?K Ban'6+ ,D-C Ban'?K0 therefore it is a point of *on*ern for ea*h %an' to

maintain their *ustomer lo&alt&+ As the *onditions are getting stiffer da& %& da&0 the %an's

5=1 P a g e
http://en.wikipedia.org/wiki/States_and_territories_of_Indiahttp://en.wikipedia.org/wiki/Himalayashttp://en.wikipedia.org/wiki/Jammuhttp://en.wikipedia.org/wiki/Kashmir_valleyhttp://en.wikipedia.org/wiki/Kashmir_valleyhttp://en.wikipedia.org/wiki/Ladakhhttp://en.wikipedia.org/wiki/Srinagarhttp://en.wikipedia.org/wiki/Jammu_(city)http://en.wikipedia.org/wiki/Shrinehttp://en.wikipedia.org/wiki/Hinduhttp://en.wikipedia.org/wiki/Tibethttp://en.wikipedia.org/wiki/Biogeographyhttp://en.wikipedia.org/wiki/Kashmiri_languagehttp://en.wikipedia.org/wiki/Urduhttp://en.wikipedia.org/wiki/Dogrihttp://en.wikipedia.org/wiki/Pahari_languageshttp://en.wikipedia.org/wiki/Pashtohttp://en.wikipedia.org/wiki/Hindihttp://en.wikipedia.org/wiki/Article_370http://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Sericulturehttp://en.wikipedia.org/wiki/Saffronhttp://en.wikipedia.org/wiki/States_and_territories_of_Indiahttp://en.wikipedia.org/wiki/Himalayashttp://en.wikipedia.org/wiki/Jammuhttp://en.wikipedia.org/wiki/Kashmir_valleyhttp://en.wikipedia.org/wiki/Kashmir_valleyhttp://en.wikipedia.org/wiki/Ladakhhttp://en.wikipedia.org/wiki/Srinagarhttp://en.wikipedia.org/wiki/Jammu_(city)http://en.wikipedia.org/wiki/Shrinehttp://en.wikipedia.org/wiki/Hinduhttp://en.wikipedia.org/wiki/Tibethttp://en.wikipedia.org/wiki/Biogeographyhttp://en.wikipedia.org/wiki/Kashmiri_languagehttp://en.wikipedia.org/wiki/Urduhttp://en.wikipedia.org/wiki/Dogrihttp://en.wikipedia.org/wiki/Pahari_languageshttp://en.wikipedia.org/wiki/Pashtohttp://en.wikipedia.org/wiki/Hindihttp://en.wikipedia.org/wiki/Article_370http://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Sericulturehttp://en.wikipedia.org/wiki/Saffron


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are stri)ing to 'eep their *ustomers and are pro)iding them with all the promotional

s*hemes that attra*t their *ustomers to their respe*ti)e %an's+ inning a *ustomer is an art

and the %an's should %e quiet ni*e in doing so+ $here are )arious promotional s*hemes that

are %eing pro)ided %& the %an's+ $he two main promotional s*hemes that are of main

importan*e to the people of >?K and are rele)ant to m& proe*t are7 8

1+ Agri*ultural loan+6+ Car loan+

1. Agri"u'tura' Se"tor'oan7 8

A d&nami* and growing agri*ultural se*tor needs adequate finan*e through %an's to

a**elerate the o)erall growth+ $he target for agri*ultural *redit in 621681< is Rs 40=40222

*rore+ $he go)ernment has allo*ated Rs 120222 *rore to the National Ban' for Agri*ulture

and Rural De)elopment .NABARD/ for refinan*ing Regional Rural Ban's .RRBs/ to

dis%urse short8term *rop loans to small and marginal farmers+ $he short8term *rop loans

s*heme offers *redit to farms at = per *ent interest rate per annum+ -armers who repa& in

time would get *rop loans at 5 per *ent interest rate+ In order to redu*e post8har)est losses0

farmers are also eligi%le to get post8har)est loans up to si( months at 5 per *ent interest ratepro)ided the& 'eep their produ*e in warehouses+

>ammu ? Kashmir 9tate is predominantl& an agrarian e*onom& with a%out 32

of its population engaged in agri*ulture and allied se*tors+ $he agro8*limati* di)ersit& of

the 9tate )ar&ing from su%8tropi*al in >ammu0 temperate in Kashmir and *old arid in

!ada'h0 ma'es it ideal for )aried *ulti)ation+ $he goal %efore different Ban's is to enhan*e

the in*ome of farmers and to generate emplo&ment in agri*ulture and allied se*tors+ $he

strateg& adopted for this purpose is to in*rease produ*tion and produ*ti)it& of the *rops and

to ena%le farmers to di)ersif& their *rop produ*tion so as

to ta'e ad)antage of mar'et opportunities+ Agri*ulture has0 after a )er& long time0 o**upied

*entre stage in the e*onomi* and administrati)e dis*ourse in the 9tate at a time when all

seemed lost due to the dwindling interest of the &ounger generation in agri*ulture a*ti)ities+

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$he *on*erted efforts of the pu%li* as well as pri)ate se*tor %an's ha)e triggered a new

hope among the people0 whi*h promises profita%ilit& and dignit& in the agri*ulture as an

o**upation+ $he %an's pro)ide need8%ased agri*ultural loans of )ar&ing tenors to all *redit

worth& *lients engaged in farming of staple as well as *ash *rops0 horti*ulture0 plantations0

poultr&0 animal hus%andr&0 dair&ing0 seeds0 warehousing0 et*+ $he %an' also finan*es the

supplies of a wide range of agri*ultural inputs li'e seeds0 fertiliers0 pesti*ides0 mi*ro

nutrients and mi*ro irrigation tools+ $he %an's ha)e identified transportation0 storage and

pro*essing of food and other agri*ultural *ommodities as a thrust area and offer wor'ing

*apital and term loans of )ar&ing tenors to eligi%le pro*essors0 %ased on not onl& their

finan*ials %ut also on the strengths of underl&ing *ommodities+ $hese t&pes of finan*ing are

adapted to the spe*ifi* finan*ial needs of farmers0 whi*h are determined %& planting0

har)esting and mar'eting *&*les+ -arming is an important e*onomi* a*ti)it& of the state+

$he maorit& of the indigenous lo*al population of >ammu and Kashmir depends on

agri*ulture and its related a*ti)ities to earn their li)elihood+ $he Department of Agri*ulture

of >ammu and Kashmir imparts the farmers of the state with modern te*hnologi*al

'nowledge of growing )ariet& of *rops+

Genera' agri"u'ture pro!i'e o! -@6 tate7 8

a+ 32 population dependant on agri*ulture+

%+ 9mallMarginal -armers are 34+

*+ 9mall and fragmented land holdings .A)+ holding sie7 2+:: ha+/+

d+ ,uge di)ersit& in ph&sio8graphi* features and agro *limate at mi*ro ? ma*ro le)el

.su% tropi*al0 temperate0 inter mediate ? *old arid ones e(ist/+

e+ ,ill& terrain

f+ In*reasing pressure on land due to growing ur%aniation+

g+ -ragile 9oil in hill& areas sus*epti%le to soil erosion+

h+ 9ingle Cropping season in temperate high altitude areas+

i+ Inadequate and unorganied mar'eting infrastru*ture+

+ Distant mar'ets for e(port outside the 9tate

'+ -ood grain produ*tion is around 1: la'h M$

l+ Contri%utes 6= to 9tate #ross Domesti* Produ*t+

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(Area under various crops in J&K state):

Crop Area2La" .a+3

Pa$$( 6+43 !a* ,a

Maie


51/124

Keeping all the a%o)e mentioned fa*ts and features in )iew0 I ha)e de*ided to underta'e a

proe*t whi*h would %e titled as FC9$OM"R 9A$I9-AC$ION BA9"D ON $,"

COMPARA$I" ANA!E9I9 O- !OAN PROC"DR"9 -O!!O"D BE DI--"R"N$

BANK9G+ nder this title0 I will stud& the *ustomer satisfa*tion asso*iated with ea*h %an'

.>?K0 ,D-C0 PNB0 ? 9BI/+ $he %asis of *omparison will %e different loan pro*edures that

the %an's follow while pro)iding loans to their *ustomers+ $hese pro*edures will re)eal

how and wh& a parti*ular *ustomer wants to %e with a parti*ular %an' and wh& not with

others+ In addition0 it will furthermore throw some light a%out the )arious short*omings of

these %an's and at last there would some re*ommendations from m& side to the other %an's

%& the help of whi*h the& *an also e(*el in this %usiness and 'eep going in this long run+

$he anal&sis will %e done with the help of a questionnaire to 'now how satisfied a

*ustomer is with his preferred %an' and what *hange he wants to %e in the %an'Hs offering

to him+

Chapter 5

411 P a g e


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A#RIC!$R" AND CAR !OAN

PROC"DR"

Agri"u'ture @ Car Loan Pro"e$ure


53/124

pesti*ides0 mi*ro nutrients and mi*ro irrigation tools+ $he %an' fa*ilitates the food *hain

from the farm gate to the food plate+ $he %an' is e(panding its rural presen*e rapidl& in

order to deli)er these produ*ts effe*ti)el& at the doorsteps of their )alued *ustomers0 at

afforda%le pri*es+


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55/124

Residen*e telephone proof must %e gi)e+


56/124


57/124


58/124

A*ti)ities li'e %ullo*' pur*hase or other similar pur*hases0 no do*uments required+

!arge loan amounts will require proe*testimatequotation reports+

!oan for land %ased a*ti)ities will need land re*ords+

-or loan amounts greater than 6402220 no due *ertifi*ates are required from other %an's in

that area+


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Y !atest 9alar& 9lip and -orm 1: in the *ase of salaried person+

Y I$ returns for the last two finan*ial &ear in *ase of self emplo&ed or professionals+

Y A person not ha)ing an a**ount with 9BI *an also get the loan on depositing their identit&

proof and residential proof+

T%e ot%er #ene!it t%at a peron "an get !rom S0I Car Loan are a !o''o)7

Y !ow Interest Rates+

Y $he loan *an %e repaid within a period of 35 months from the time the loan is san*tioned+

Y 9BI e(empts their *ustomers from an& administration *harges+

Y $here is no hassle of pa&ing ad)an*e "MI+

Y Interest is le)ied on dail& redu*ing %alan*e method+ hen a *ustomer pa&s one

instalment0 the interest is automati*all& *al*ulated on the redu*ed %alan*e thereafter+


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-i(ation of limit7 !imit is fi(ed for term loan and wor'ing *apital requirement limit for

agri*ultural and allied a*ti)ities0 et*+0 %ased on the unit *ost of the assets proposed to %e

a*quired %& the farmer0 the allied a*ti)ities alread& %eing underta'en on the farm repa&ing

*apa*it&+


61/124


62/124

For In$i&i$ua' Proprietor%ip Con"ern7 64 times of the monthl& net salar& OR Rs+64

la*s .for one or more )ehi*les/0 whi*he)er is lower+ In*ome of parent.s/ spouse *an %e

ta'en into a**ount for determining loan amount+

For 0uine Con"ern 2Corporate or non8"orporate37No *eiling on loan amount .for

one or more )ehi*les/+


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64/124

All Persons engaged in agri*ultural and allied in 9emi ur%an and Rural areas

in*luding all *ategories of farmers+


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-le(i%le repa&ment options ranging from 16 to 35 months in equal monthl&

installments+

+=MaHimum Loan Amount

Ue$ "ar7 8

+ Purpoe $he finan*e under this s*heme shall %e a)aila%le for pur*hase of7 An old *ar eep

.not more than 4 &ears old/+ .An& ma'e or model/

+BE'igi#i'it( Permanent emplo&ees of #o)ernment9emi8#o)ernment nderta'ings0

Autonomous %odies0 Pu%li* 9e*tor nderta'ings0 Pri)ate Companies or reputed

esta%lishments+ Professionals or self emplo&ed indi)iduals0 Proprietorship

Con*erns+ Partnership -irms0 Pri)ate Pu%li* !td Co+

+ Margin 64 for )ehi*les ha)ing age less than < &ears+

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Chapter 4

Data Anal&sis and Interpretation

1+ hat is &our o**upationa+ #o)t+ "mplo&ee %+ Professional *+ Business d+ 9tudent

Ans78

,D-C >?K %an'

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PNb SBI

Ana'(i7 8 As re)ealed %& the graphs0 the ma(imum num%ers of go)ernment emplo&ees

are wor'ing with ,D-C %an'+ $his *reates a *ompetiti)e edge for the %an' as it is eas& for

the %an' to )erif& the *redentialit& of the *ustomers+ In *ontrast to it the num%er of %usiness

men wor'ing with >?K %an' is more+ $he %an' needs to )erif& its *ustomerHs re*ords to

measure the *redit worthiness of the *ustomers+ As with the ,D-C %an'0 the #o)t+

emplo&ees are a%le to repa& their dues on time or the remaining dues are automati*all&

dedu*ted from their a**ounts at the end of the month+ $his ma'es the %an'Hs re*olle*tion

easier+

6+ Are &ou aware of the different loan s*hemes offered %& different %an's

a+ Ees %+ No

Ans78

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.a/ .%/

.*/ .d/Anal&sis78

-rom the a%o)e mentioned data0 it is *lear that the ,D-C %an' *ustomers are leading in

awareness a%out loans+ 9in*e the %an' alwa&s tries to in*rease its *ustomer %ase0 and one

wa& to do the same is to ma'e more and more people aware a%out the different loan

s*hemes+ $he a)aila%ilit& of desired loans ma'e the *ustomers more lo&al as the& get what

the& want and that too at the easiest possi%le wa&+ $he least aware *ustomers are those of

PNB %an' whi*h *reates a lot of pro%lems in its operations+ 9e*ond to the ,D-C %an'

stands >?K %an' whi*h is doing all it *ould to in*rease the awareness of loans among its

*ustomers+

$hus0 ,D-C %an'Hs *ustomers are most ad)an*ed in terms of 'nowledge a%out loans and

are thus satisfied with their %an'Hs response towards edu*ating them+

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Anal&sis78

-rom the statisti*s it is *lear that the *ustomerHs of >?K %an' are leading in appl&ing

agri*ultural loans0 followed %& PNB and then %& ,D-C %an'+ $he main reason %ehind this

response is that the >?K %an' was the onl& %an' in the state operating from the )er&

%eginning+ $hus the *ustomers who were in need of loans approa*hed it and got their loans

san*tioned+ ,D-C is lagging %ehind as the& were not in that segment %ut now the& ha)e

also started to ad)an*e their operations and are pro)iding loans at afforda%le *osts+ $he

interest *harged on the agri*ultural loans is simple interest whi*h gets lowered with the

pa&ment of the remaining dues &ear after &ear+ $he offering of loans is also followed %&

after ser)i*es whi*h satisf& a *ustomer %& ma'ing him realie that the %an' *ares for them+

5+ Do &ou thin' that agri*ultural loans should %e prime *on*ern of the %an's 'eeping

the o**upation of the )alle& in )iewa+ Ees %+ No

Ans7 8

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Anal&sis78

-rom the a%o)e mentioned data it is *lear that a maorit& of people in the state are of the

opinion that the agri*ulture should %e gi)en prime importan*e 'eeping the o**upation of

the people of the state in )iew+ 9in*e a maorit& of the people are dependent on agri*ulture

and its allied a*ti)ities0 therefore it is must for them that the& get some sort of help in

esta%lishing their %usiness whi*h *ould %e possi%le onl& if the Ban's would *ome to their

res*ue and help them in the need of hour+

4+ A**ording to &ou0 are the agri*ultural loans offered %& different %an's %enefi*iala+ 9trongl& agree %+ Agree *+ Neutral d+ Disagree

e+ 9trongl& Disagree

Ans78

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Anal&sis78

As per the )iews of the people o%tained0 it is *on*luded that the agri*ultural loans offered

%& the %an's are reall& %enefi*ial for the people+ $he statisti*s o%tained re)eal that the

people reall& admire %an's for pro)iding timel& assistan*e to them in the form of loans+this

trend ma& %e ustified %& ha)ing a loo' on the graph %ars whi*h show the num%er of people

who are a*tuall& ion fa)our of the same+ $he loans are used %& the *ustomers to finan*e

their agri*ultural requirements and with the time the& pa& it %a*' with the interest the& had

a**epted it+

=


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:+ hi*h *hara*teristi* of %an'ing attra*ts &ou most while appl&ing for loana+ !ow interest %+ ,assle free+ *+ Con)enien*e d+ Co8operation of

staff

Ans78

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Anal&sis78

-rom the a%o)e mentioned statisti*s it *an %e *on*luded that Flow interestG has got the

ma(imum num%er of )otes followed %& the hassle free and *on)enien*e li'e traits+ $he

main requirement of the people of the state seems to %e that of the low interest that should

%e *harged on the loan amount the& %orrow from the %an'+ People often tend to return the

loan amount after a stipulated time %ut o**asionall& the& fail to do so %e*ause of the

interest *harged on the amount+ If the interest would %e *harged less0 then the people would

feel it eas& to return the said amount+ -urther the hassle free pro*ess of o%taining loans is

also a prime *on*ern a%out the people+ $he& do not want to sit in lines 0 waiting for hours

for their turn0 what in fa*t the& want is prompt response to their requests+

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=+ Ran' the %an's in terms of their produ*ts and ser)i*es and the followingparameters+

.Infrastru*ture0 Customer 9er)i*e0 Promotional 9*hemes0 Customer relationship

mgt+/

a+ >?K %+ ,D-C *+ PNB d+ 9BI

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Ran' 1 8888888888888888888888888888

Ran' 6 8888888888888888888888888888

Ran' < 8888888888888888888888888888

Ran' 5 8888888888888888888888888888

Ans7 8

Anal&sis78

-rom the a%o)e data0 it ma& %e stated that the people fa)or >?K %an' more than others in

terms of the stated parameters+ $he main reason for the a%o)e mentioned *hoi*e is the

*on)enien*e fa*tor that the >?K %an' offers to its *ustomers+ It is lo*ated in e)er& noo'

and *orner and pro)ides ser)i*es that others are still to offer+ -urther the >?K %an' has its

roots from the )er& %eginning so0 the *ustomer %ase is )er& large and e)er in*reasing+ $he

glo%aliation of the %an' has pa)ed wa& to its rapid growth and the ease the *ustomers get

%& wor'ing with a %an' that is glo%alised and is a**essed e)er&where+ $he *ore

*ompeten*& of the >?K %an' lies in its )ast stru*ture that offers a di)ersified and

te*hnologi*all& modified ser)i*es and produ*ts+

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3+ On the %asis of a%o)e mentioned parameters whi*h %an' do &ou *onsider most

appropriate while appl&ing for loana+ >?K %+ ,D-C *+ PNB d+ 9BI

Please spe*if& wh&

Ans78

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Anal&sis78

All the respondents preferred their own %an's due the relationship whi*h the& shared o)er

&ears+ $he& were of the opinion that their %an' would *onsider their wants and desires and

would surel& wor' for their %enefit+ None of the respondents li'ed to swit*h o)er to an&

new %an' for meeting its requirements whi*h support the %an'Hs moti)e for 'eeping its

*ustomers with it and ser)ing them profita%l&+

;+ Are &ou satisfied with the wa& the produ*ts and ser)i*es of agri*ultural importan*e

are deli)ered %& &our preferred %an'a+ 9trongl& agree %+ Agree *+ Neutral d+ Disagreee+ 9trongl& disagree

Ans78 a] ,D-C Chosen *ustomers0 %] >?K %an' *hosen *ustomers0 *] PNB *hosen

*ustomers0 d] 9BI *hosen Customers

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2a3

2#3

2"3 2$3

Anal&sis78

Out of the graph plotted a%o)e0 the ma(imum num%ers of *ustomers that are satisfied with

their %an'Hs offering %elong to ,D-C Ban' where as the lowest num%er of satisfied

*ustomers %elong to >?K %an'+ $his is %e*ause of the reason that the loan appl&ing

pro*edure of the >?K %an' is )er& *um%ersome+ $he *ustomers ha)e to wait for months in

getting their %ill passed for required materials+ -urther the do*umentation pro*ess is also

not upto mar' and the do*uments often get lost on the wa& to final appro)al+ In *ase of

,D-C %an'0 the %an' is *onstantl& stri)ing hard in meeting its *ustomers da& to da&

requirements and a file of the materials required %& the *ustomer is made at the time of the

san*tion of the loan+ $his ma'es the *ustomers feel more se*ure as the& would get ea*h ande)er& thing the& demanded and at the right time+ $hus0 the ma(imum satisfied *ustomers

%elong to the ,D-C %an' whi*h is re)ealed from the statisti*s mentioned a%o)e

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12+ 9uggest an& *hange in &our %an'Hs offering in terms of produ*ts and ser)i*es and

the poli*ies and terms used %& %an's

Ans78 Com%ining all the responses that I ha)e re*ei)ed0 it ma& %e %rought into light the

people of the state want a *hange in the interest rates on whi*h the loans are %eing offered+

-urther the *um%ersome poli*ies must also %e eliminated so as to lift the e(tra %urden that

the %an's ma'e on the people+ $he poli*ies and guidelines must %e formulated 'eeping the

li)ing standards of the people in )iew+ Also mar'et sur)e&s should %e done to ta'e a**ount

of the needs that the *ustomers might en*ounter witin the due *ourse of the time+

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11+ ould &ou li'e to %e in a long term relationship with &our %an'a+ Ees %+ No+

Ans78 a] ,D-C Chosen *ustomers0 %] >?K %an' *hosen *ustomers0 *] PNB *hosen

*ustomers0 d] 9BI *hosen Customers

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2a 3 2#3

2 " 3 2$3

Anal&sis78

As is e)ident from the a%o)e mentioned graphs0 the *ustomer lo&alt& resides more with the

,D-C %an' %e*ause of the *onstant and persistent *are the %an' ta'es in ser)ing its

*ustomers+ It resorts to sur)e&s0 organies meetings with its *ustomers and often as's for

their responses regarding *ertain issues whi*h ma'es its *ustomers more lo&al and in turn

the& want to sta& with

Arif Complete

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