Arif Complete

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    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.







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    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:


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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&


    M+ Nan"(

    2Att Pro!eor+3

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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


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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&+
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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+


    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


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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


    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

  • 8/9/2019 Arif Complete


    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

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    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*



    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+


    Pu%lished 9our*es

    npu%lished sour*es
  • 8/9/2019 Arif Complete


    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+

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  • 8/9/2019 Arif Complete


    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+

  • 8/9/2019 Arif Complete


    ,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

  • 8/9/2019 Arif Complete


    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

  • 8/9/2019 Arif Complete


    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


    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

  • 8/9/2019 Arif Complete


    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

  • 8/9/2019 Arif Complete


    *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+


    ,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+

  • 8/9/2019 Arif Complete


    $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+

  • 8/9/2019 Arif Complete


    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


  • 8/9/2019 Arif Complete


    9+4+4 Compan( .itor(

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

    1;62 8

  • 8/9/2019 Arif Complete



    -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

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    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


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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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    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+


    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


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

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


    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

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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&


    :+ 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

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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

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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


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    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 $,"


    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

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

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

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    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


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    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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    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&


    +=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


    ,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


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

    a+ Ees %+ No


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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


    $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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    -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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    -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


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    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



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    -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


    a+ >?K %+ ,D-C *+ PNB d+ 9BI

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    Ran' 1 8888888888888888888888888888

    Ran' 6 8888888888888888888888888888

    Ran' < 8888888888888888888888888888

    Ran' 5 8888888888888888888888888888

    Ans7 8


    -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&


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    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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    2"3 2$3


    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


    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