Bindu Project

8/2/2019 Bindu Project

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SUMMER PROJECT REPORT

ON

CUSTOMERS PERCEPTION ABOUT CREDIT POLICIES AND FACILITIES

OF

SUBMITTED IN PARTIAL FULFILLMENT OF

DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

SESSION (2010-2012)

PAPER CODE-(CP-303)

SUBMITTED BY:

INDU BALA

MBA 3rd

SEM

University Roll No.

SUBMITTED TO

ICL INSTITUTE OF ENGINEERING AND TECHNOLOGY

SOUNTLI

(KURUKSHETRA UNIVERSITY, KURUKSHETRA)


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DECLARATION

I hereby declare that, the project entitled CUSTOMERS PERCEPTION ABOUT CREDIT

POLICIES AND FACILITIES OF KCC BANK assigned to me for the partial fulfillment of

MBA degree from Kurukshetra University, Kurukshetra. The work is originally completed by

me and the information provided in the study is authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for the award of any other

degree.

INDU BALA

MBA 3rd

SEM

University Roll No.


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ACKNOWLEDGEMENT

Gratitude is the hardest of emotions to express and one often does not find adequate words toconvey what one feels and trying to express it

The present project file is an amalgamated of various thoughts and experiences .The successful

completion of this project report would have not been possible without the help and guidance of

number of people and specially to my project guide in the company, Mrs Tripta Sharma I take

this opportunity to thank all those who have directly and indirectly inspired, directed and helped

me towards successful completion of this project report.

I am also immensely indebted to my project guide, Mrs pooja AnandLecturer, ICL, for his

illumining observation, encouraging suggestions and constructive criticisms, which have helped

me in completing this research project successfully.

There are several other people who also deserve much more than a mere acknowledgement at

their exemplary help. I also acknowledge with deep sense of gratitude and wholehearted help and

cooperation intended to me by them.

INDU


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PREFACE

Summer Training is the bridge for a student that takes him from his theoretical knowledge world

to practical industry world. The main purpose of industrial visit is to expose for industrial and

business environment, which cannot be possible in the classroom.

The advantages of this sort of integration, which promotes guided to corporate culture,

functional, social and norms along with formal teaching are numerous.

1) To bridge the gap between theory and practical.

2) To install the feeling of belongingness and acceptance.

3) To help the student to develop the better understanding of the concept and questions

already raised or to be raised subsequently during their research period.

The present report gives a detailed view of the CUSTOMERS PERCEPTION ABOUT

CREDIT POLICIES AND FACILITIES OF KCC BANK The research is definitely going to

play an important role in developing an aptitude for hard self-confidence.


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CONTENTS

1) CHAPTER-1 INTRODUCTION TO

INDUSTRY

COMPANY

PROJECT

2) CHAPTER -2

OBJECTIVES

3) CHAPTER-3

RESEARCH METHODOLOGY

4) CHAPTER-4

ANALYSIS AND INTERPRETATION

5) CHAPTER-5

FINDINGS

6) CHAPTER-6

LIMITATIONS

7) CHAPTER-7

RECOMMENDATIONS

8) CHAPTER-8

CONCLUSION

BIBLIOGRAPHY

ANNEXURE


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CHAPTER

1

INTRODUCTION


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INDUSTRY PROFILE

The Origin and growth of Banking

For centuries bank have played an important role in financial system of any economy. vital role

continues even today although the forms of banking have changed with the changing need of

economies . Banking in the crude form is an age old phenomenon and its invention preceded that

of coinage. As new and more sophisticated instrument of currency evolved, so did banking. It

evolved as business expended and barter system gave way to money, which needed save

deposit. In its simple form ,it originated temples royal places around 1000 B. C. in Babylon, as

strongest faith of people ,which were also functioning as treasuries against receipts, was perhaps

the earliest form of banking.

When coins made of precious metals like gold and silver emerged as commonly accepted form

of wealth, lending activity at an interest began. Goldsmiths were the initial bankers and their

receipts for money received guaranteed payments or goldsmiths receipts were the earliest

form of bank instrument


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Origin of Banking in India

A money economy existed in India since the days of Buddha, but banking in India flourished in

the ancient Vedic times. Even in the RIG Veda, there was mention about indebtedness and the

earliest dharm shastras lay down rates of interest and regulations governing debts and

mortages.Refrences to money lending business are found in the Manu Smriti too. The literature

of Buddhist period,the Jatahas and archeological discoveries contain evidence of existence of

Sreshthisor bankers. They were extensive references in law of Manu to money lending and

other problem .Trade guilds acted as bankers and in South India, the village communes

occasionally advanced loans to peasants. The emergence Vishays as indigenous bankers and

hundi as the earliest form of Indian banking .Indigenous bankers played a very important role in

lending money for trade and commerce . Every town, big or small, had a Seth,a Shah, a Shroff or

a Chattier, who performed a number of banking function.

Development Bank

Developments banks are those financial institutions, which provide long term capital for

industries and agriculture ,namely:

Industrial Finance Corporation of India

Industrial Development Bank of India

Industrial Credit & Investment Corporation of India

Small Industries Development Bank of India

National Housing Bank

History of Bank

The origins of states bank of India date bank to 1806 when the Bank of Calcutta(later called the

Bank of Bengal)was established in 1921,the Bank of Bengal and two other Presidency


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bank(Bank of Madras and the Bank of Bombay) were amalgamated to form the imperial Bank of

India. In 1955, the controlling interest in the imperial Bank of India .

Today branches spanning all time zones. SBI,s International Banking Group delivers the full

range of border finance solution through its four wings- the Domestic, division. State Bank of

India has spread its arms around the world and has network.

PostIndependence

The partition of India in1947 had adversely impacted the economics of Punjab and West Bengal,

and banking activities had remained paralyzed for months Indias independence marked the end

of a regime of the Lassiesfaire for the Indian Banking. The GOVT. OF India initiated measure

to play an activity role in the economic life of nation and industrial policy Resolution adopted by

the Govt. in 1948 envisaged a mixed economy. This resulted into greater involvement of the

state in different segment of the economy including banking and finance. The major steps to

regulate banking included:

In1948,The Reserve Bank OF india,Indias central banking authority, was nationalized, and it

became an institution owned by the Govt. of India.

In 1949, the Banking Regulation Act was enacted which empowered the RBI to regulate,

control and inspect the banks of India.

INTRODUCTION OF BANK

The essential function of a bank is to provide services related to the storing of value and the

extending credit. The evolution of banking dates back to the earliest writing, and continues in the

present where a bank is a financial institution that provides banking and other financial services.

Currently the term bank is generally understood an institution that holds a banking license.

Banking licenses are granted by financial supervision authorities and provide rights to conduct

the most fundamental banking services such as accepting deposits and making loans. There are

also financial institutions that provide certain banking services without meeting the legal

definition of a bank, a so-called non-bank. Banks are a subset of the financial services industry.


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The word bank is derived from the Italian banca, which is derived from German and means

bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to

an out of business bank, having its bench physically broken. Moneylenders in Northern Italy

originally did business in open areas, or big open rooms, with each lender working from his own

bench or table.

Typically, a bank generates profits from transaction fees on financial services or the interest

spread on resources it holds in trust for clients while paying them interest on the asset.

Services typically offered by banks

Although the type of services offered by a bank depends upon the type of bank and the country,

services provided usually include:

Directly take deposits from the general public and issue checking and savings accounts

Lend out money to companies and individuals (see moneylender)

Cash checks.

Facilitate money transactions such as wire transfers and cashiers checks

Issue credit cards, ATM, and debit cards.

Online banking.

Storage of valuables, particularly in a safe deposit box.

Investment solutions safe and profitable investment options

Types of banks

There are several different types of banks including:

Central banks usually control monetary policy and may be the lender of last resort in the

event of a crisis. They are often charged with controlling the money supply, including

printing paper money. An example of central bank is the Reserve Bank Of India.

Investment banks underwrite stock and bond issues and advise on mergers. Examples of

investment banks are Goldman Sachs of the (USA) or Kotak Mahindra Bank Ltd

(India).


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Merchant banks were traditionally banks, which engaged in trade financing. The

modern definition, however, refers to banks, which provides capital to firms in the

form of shares rather than loans. Unlike Venture capital firms, they tend not to invest

in new companies.

Private banks manage the assets of the very rich.

Savings banks write mortgages exclusively.

Offshore banks are banks located in jurisdictions with low taxation and regulation, such

as Switzerland or the Channel Islands. Many offshore banks are essentially private

banks.

Commercial banks primarily lend to businesses (corporate banking)

Retail banks primarily lend to individuals.

Universal banks engage in several of these activities. For example, Citigroup, a large

American bank, is involved in commercial and retail lending; it owns a merchant bank

(Citicorp Merchant Bank Limited) and an investment bank (Salomon Smith Barney); it

operates a private bank (Citigroup Private Bank); finally, its subsidiaries in tax-havens

offer offshore banking services to customers in other countries.

Banks are prone to crisis

The traditional bank has an inherent tendency to crisis. This is because the bank borrows short

term and lends leveraged long term. The sum of deposits and the bank's capital will never equal

more than a modest percentage of the loans the bank has outstanding.

Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a bad

portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in the

late 1980s and early 1990s is such an incident.


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Role in the money supply

A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing

financial instruments in the money market or a security. Market. The bank then lends out most of

these funds to borrowers.

However, it would not be prudent for a bank to lend out all of its balance sheet. It must keep a

certain proportion of its funds in reserve so that it can repay depositors who withdraw their

deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This

behavior is called fractional-reserve banking and it is a central issue of monetary policy. Some

governments (or their central banks) restrict the proportion of a bank's balance sheet that can be

lent out, and use this as a tool for controlling the money supply. Even where the government

does not control the reserve ratio, a minimum figure will still be set by regulatory authorities as

part of banking supervision.

Regulation

The combination of the instability of banks as well as their important facilitating role in the

economy led to banking being thoroughly regulated. The amount of capital a bank is required to

hold is a function of the amount and quality of its assets. Banks are usually required to purchase

deposit insurance to make sure smaller investors are not wiped out in the event of a bank failure.

Another reason banks are thoroughly regulated is that ultimately, no government can allow the

banking system to fail. There is almost always a lender of last resortin the event of a liquidity

crisis (where short term obligations exceed short term assets) some element of government will

step in to lend banks enough money to avoid bankruptcy.

Also the bulk of all money transactions today involve the transfer of bank deposits. Depository

institutions, which we normally call banks, are at the very center of our monetary system. Thus a

basic knowledge of the banking system is essential to an understanding of how money works.

Bank Deposits and Reserves:


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The monetary base is created by the Fed when it buys securities for its own portfolio. Bank

deposits themselves are not base money, rather they are claims on base money. A bank must

hold reserves of base money in order to meet its depositors' cash withdrawals and to cover the

checks written against their accounts. Reserves comprise a bank's vault cash and what it holds

on deposit at the Fed, known as Fed funds. The Fed requires banks to maintain reserves of at

least 10% of their demand deposits, averaged over successive 14-day periods.

The Movement of Bank Reserves:

When a depositor writes a check against his account, his bank must surrender that amount in

reserves to the payees bank for the check to clear. Reserves are constantly moving from one

bank to another as checks are written and cleared. At the end of the day, some banks will be

short of reserves and others long. Banks redistribute reserves among themselves by trading in

the Fed funds market. Those long on reserves will normally lend to those short. The annualized

interest rate on interbank loans is known as the Fed funds rate, and varies with supply and

demand.

The reserve requirement applies only to the bank's demand deposits, not its term or savings

deposits. Thus when a bank depositor converts funds in a demand deposit into a term or savings

deposit, he frees up the reserves that were held against the demand deposit. The bank can then

use those reserves in several ways. For example, it can hold them to back further lending, buy

interest-earning Treasury securities, or lend them to other banks in the Fed funds market.

Controlling the Fed Funds Rate:

The supply of reserves changes whenever base money enters or leaves the banking system. This

occurs when the Fed buys or sells securities or when the public deposits or withdraws cash from

banks. The demand for reserves changes whenever total demand deposits change, which occurs

when banks increase or decrease aggregate lending. The Fed controls the Fed funds rate byadjusting the supply of reserves to meet the demand at its target interest rate. It does so by

adding or draining reserves through its open market operations.

The Fed funds rate effectively sets the upper limit on the cost of reserves to banks, and thus

determines the interest rates that banks must charge the public for loans. Bank interest rates


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influence the demand for loans, and thereby the net amount of bank lending. That in turn

determines the liquidity of the because the Treasury transfers funds from its commercial bank

accounts to replace the funds spent out of its Fed account.private sector, which is important in

terms of aggregate demand and inflationary pressures. The selection and control of the Fed

funds rate is the key monetary policy instrument of the Fed.

The Effects of Government Spending:

The Fed acts as a depository for the Treasury as well as member banks. All government

spending is paid out of the Treasury's account at the Fed. Whenever the government spends, the

Fed debits the Treasury's account and credits the Fed account of the payees bank. The Treasury

replenishes its Fed account with transfers from its commercial bank accounts where it deposits

the receipts from taxes, and the sale of its securities.

In order to minimize variations in aggregate banking system reserves, the Treasury maintains a

nearly constant balance in its Fed account. In effect, Treasury payments are simply transfers

from its commercial bank accounts to the bank accounts of the public. Funds move in the

reverse direction when the public pays taxes or buys securities from the Treasury. The Treasury

must maintain a positive balance in its commercial bank accounts to avoid having to borrow

directly from the Fed. However it has no need for, and does not accumulate, balances in excess

of its near-term payment obligations.

On average, government spending does not affect the aggregate bank deposits of the private

sector. The Treasury sells or redeems securities as required to balance its inflows against

outflows. However short-term variations occur because receipts cannot be synchronized with

spending. Banking system reserves remain essentially unaffected by government spending


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COMPANY

PROFILE


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OVERVIEW

Kangra central co-operative Bank Ltd., is an entity formed with the coming together of erstwhile,

kcc Bank Ltd, a premier bank in the Indian Private Sector.The origin of the erstwhile KCCB was

pretty humble. It was in the 17 march 1920 that a team of visionaries came together to form a

bank that would extend a helping hand to those who weren't privileged enough to enjoy banking

services.It's been a long journey since then and the Bank has grown in size and stature to

encompass every area of present-day banking activity and has carved a distinct identity of being

India's Premier Private Sector Bank.In 1970, the Bank completed fifty years of service to the

nation and post 1985; the Bank made rapid strides to reach the high position in banking. In 1980,

the bank completed its Diamond Jubilee year. The 75th anniversary, the Platinum Jubilee of the

bank was celebrated during 1995.

The origin of KCCB Group

1. -74. Came into existence on 17th March 1920 (License No. RPCD.09/2009-10).

2. Indora Banking Union was merged and 2nd Branch of the Bank opened at Nurpur in

Jan1956

3. Palampur Banking Union was merged and 3rd Branch of the Bank opened at Palampur

in Jan1957

4. Nadaon Banking Union was merged and 4th Branch of the Bank opened at Hamirpur in

Oct1958

5. The Bank suffered losses because of the partition in 1947 to the tune of Rs.10.64 Lacs

6. In Mar 1962, the bank suffering from the setback of partition was granted Rs.4.09 Lacs

by the Govt.

7. Govt also provided Interest Free Relief Loan of Rs.3.98 Lacs and Govt of India Loan of

Rs.4.97 Lacs @ 3.87% in 1962 In 1971-72

8. The Bank entered into the deposit mobilization scheme of Pong Dam Area aggressively

and secured maximum share of Deposit Bank Deposits increased from Rs. 256 Lacs in

1971-72 to Rs. 1054 Lacs in 1973


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2.1Distt.Central Cooperative Bank:

Co-operation emphasizes the idea of a voluntary association of individuals for the achievementof the common goods. It stands for the principle of ALL FOR EACH AND EACH FOR ALL

.theory for cooperation is that an isolated and weak individual can, by associated with others and

by moral development and mutual support, obtain in his own degree, the material advantage

available to wealthy or powerful persons, and there-by develop himself to the fullest extent of his

natural abilities.A Distt.Central Cooperative Bank operates at the middle tier in the cooperative

structure i.e. at the Distt. Level. The middle tier exists between Primary Agriculture Credit

Societies And Apex Bank.

According To NABARD:

Central Cooperative Bank means the principal cooperative society in a Distt. of a state, the

primary object of which is the financing of other cooperative societies in the

2.2Some objects of the Kangra Central Cooperative Banks Ltd:

To promote the economic interest of the member of the bank in accordance with the co-

operative principles and to facilitate the operations of the cooperative societies registered

under the Act.

1. To serve as balancing centre and clearing house for Co-operative Societies in its area of

operation registered under the Act.

2. To start and maintain funds calculated to benefit its staff members or ex-staff members

and their dependents

3. To facilitate the operations of any society.

4. To advice societies in the matter of principles and practices of banking and inspect them

as and when necessary for the purpose.

5. To open its Branches/pay offices in the area of operations of the bank with the prior

approval of the Registrar.

6. To act as the custodian of the Reserve Fund of societies.


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( H.P.)

2 Shri Bhagwan Dass, Vice Chairman

VPO Sanghol, Tehsil Jaisinghpur

Distt. Kangra ( H.P.).

9418187839(M)

3 Shri Desh Raj MLA, Director

Village Dah, P.O. Dah Kulara

Tehsil Indora, Distt. Kangra

9816285008 (M)

4 Shri Ajit Paul Mahajan, Director

VPO Dohab, Tehsil Shahpur

Distt. Kangra ( H.P.)

9418489605 (M)

5 Shri Gurcharan Singh Thakur, Director

Village Harmittan P.O. Nehran Pukhar

Tehsil Dehra, Distt. Kangra(H.P.)

9816258935 (M)

6 Shri Joginder Singh Guleria, Director

VPO Dehra, Tehsil Dehra

Distt. Kangra ( H.P.)

9418085733 (M)

7 Smt. Prem Lata Thakur Director, VPO

Bhutti Colony, Tehsil & Distt.

Kullu (H.P.)

9816002221 (M)

8 Shri Subhash Sahore, Director 9805257503 (M)


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VPO Rajput Sahore,

Tehsil & Distt. Una ( H.P.)

9 Shri Karnail Singh Rana, Director

Village Kandi, P.O. Bhugnara

Tehsil Nurpur, Distt. Kangra(H.P.)

9418122286 (M)

10 Shri Jaid Nath Sharma Director

Village Hatli, P.O.Galore,

Tehsil Nadaun, Distt. Hamirpur (H.P.)

9418090816 (M)

11. Shri Ramesh Chand Bhatia, Director

Village Amtrar,P.O. Suneher

Tehsil & Distt. Kangra ( H.P.)

9816250324 (M)

12 Shri Ranjeet Singh Rana, DirectorVillage

Bhilla,P.O. Bachhwai

Tehsil Palampur, Distt. Kangra( H.P.)

9816340135 (M)

13. Shri Amrit Lal Bhardwaj, Director

Village & P.O. Dehlan, Tehsil &

Distt. Una ( H.P.)

9816031863 (M)

14. Shri Davinder Kumar, Director

VPO Charara, Tehsil Bangana,

Distt. Una ( H.P.)

9816644040 (M)


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15. Shri Karan Singh Pathania, Director

Village Bain Attarian

P.O. Kandrori, Tehsil Indora

Distt. Kangra(H.P.)

9805366394 (M)

16. Shri Rajinder Singh Director

Village Tharass,P.O. Hurla

Tehsil & Distt. Kullu ( H.P.)

9418060287 (M)

17. Shri Rigizen Samphel Hayerpa, Director

VPO Kawaring, Tehsil Keylong

Distt. Lauhal & Spiti(HP)

9418550400 (M)

18. Shri Pawan Kumar, Director

VPO Ambota, Tehsil Amb,

Distt. Una ( H.P.)

9816613905 (M)

19. Shri Rakesh Thakur, Director

VPO Samirpur, Tehsil Bhoranj

Distt. Hamirpur ( H.P.)

9418476833 (M)

20. Shri S.K. kangra, Director(RCS Nominee)

Dy. RCS, Dharmshala

9418134914 (M)

21 Sh. Jagdev Singh Pathania, HAS,

Managing Director

9418024970 (M)


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HEAD OFFICES

MANAGING DIRECTOR

JAGDEV SINGH PATHANIA

(01892-224969)

J.S. RANA

GENERAL MANAGER

01892-223280

AJEET CHOUHAN

GENERAL MANAGER

01892-224607

S.S. SHARMA

DY. GENERAL MANAGER

01892-222353


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2.7 ZONAL OFFICES

Name and Phone Number

Baijnath (01894)-262248

Banjar (01903)-222620

Daulatpur Chowk (01976)-265569

Dehra (01970)-233654

Hamirpur (01972)-223208

Indora (01893)-241475

Kangra (01892)-265682

Kullu (01902)-222416

Nadaun (01972)-232298

Nagrota Bagwan (01892)-252946

Nurpur (01893)-220275

Palampur (01894)-235417

Samirpur (01972)-275748

Una (01975)-22617


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Some facts about KCCB bank

KCCB bank branches works on profit centre.

Around 14 zonal office and 22 branches in HIMACHAL PARDESH.

Bank

AssetsLiabilities

A thing owned by a

someone having

some

A thing for which one is

responsible

CASA OthersTD/FD

Current account Term deposits

Lockers

PRODUCTS


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CO-OP. SOCIETIES INDIVIDUALS

Agriculture loan Agriculture loan

Non Farm Sector loan Non Farm Sector loan

Personal Vehicle loan Personal Vehicle loan

Weavers/Industrial/Housing loan Housing loan

Cash Credits loan Cash Credits loan

Savings account Fixed Depoits

Life Insurance General Insurance

Recurring

Deposits

LOAN

PRODUCT


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INTRODUCTION

TO

PROJECT


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CUSTOMERS PERCEPTION ABOUT CREDIT POLICIES AND FACILITIES

OF

INTRODUCTION

Customer perception is quite a complex issue and there is a lot of debate and confusion about

what exactly is required and how to go about it. This study is an attempt to review the necessary

requirements, and discuss the steps that need to be taken in order to measure and track customer

satisfaction .

The ultimate purpose of this topic was to know about the customers perceptions about the

different products of the bank, and to know about operational process. how these products can

attract them and how the company can generate maximum profit by convincing them through

personal banker and to better understand customer requirement and to understand operational

methodology.

The process of bank related transaction, bank related various terms, work environment of KCC

Bank. Different products and services provided by the bank. Customer perception about the

different product and the brand image of the bank. What are the problems faced by customer on


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daily basis. How to communicate with the customers. Different techniques of dealing with the

customers. How to convince and convert a customer into a real customer.

The literature available in the field under reference is very limited in nature and scope.The

literature obtained by investigation in the form of reports of the committees. Commissions

working groups established by the Union Government and RBI, the Research studies/articles

of researchers/ bank officials/ economists and the comments of economic analysts and news is

reviewed here in this section:

MEANING OF CREDIT POLICIES AND FACILITIES.

Guidelines that spell out how to decide which customers are sold on open account, the exact

payment terms, the limits set on outstanding balances and how to deal with delinquent accounts .

guidelines (1) the terms and conditions for supplying goods on credit, (2) customer qualification

criteria, (3) procedure for making collections, and (3) steps to be taken in case of customer

delinquency. Also called collection policy. Though most consumers expect to pay cash or use a

credit card when making a purchase, commercial customers typically want to be billed for any

products and services they buy. You need to decide how much credit you're willing to extend

them and under what circumstances. There's no one-size-fits-all credit policy--your policy will

be based on your particular business and cash-flow circumstances, industry standards, current

economic conditions, and the degree of risk involved. As you create your policy, consider the

link between credit and sales. Easy credit terms can be an excellent way to boost sales, but they

can also increase losses if customers default. A typical credit policy will address the following

points:

Credit limits. You'll establish dollar figures for the amount of credit you're willing to

extend and define the parameters or circumstances.

Credit terms. If you agree to bill a customer, you need to decide when the payment will

be due. Your terms may also include early-payment discounts and late-payment penalties.

Deposits. You may require customers to pay a portion of the amount due in advance.
http://www.businessdictionary.com/definition/terms-and-conditions.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/credit.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/qualification.htmlhttp://www.businessdictionary.com/definition/criteria.htmlhttp://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/collection.htmlhttp://www.investorwords.com/11189/step.htmlhttp://www.businessdictionary.com/definition/delinquency.htmlhttp://www.businessdictionary.com/definition/collection-policy.htmlhttp://www.businessdictionary.com/definition/collection-policy.htmlhttp://www.businessdictionary.com/definition/delinquency.htmlhttp://www.investorwords.com/11189/step.htmlhttp://www.businessdictionary.com/definition/collection.htmlhttp://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/criteria.htmlhttp://www.businessdictionary.com/definition/qualification.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/credit.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/terms-and-conditions.html


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Credit cards and personal checks. Your bank is a good resource for credit card

merchant status and for setting policies regarding the acceptance of personal checks.

Customer information. This section should outline what you want to know about a

customer before making a credit decision. Typical points include years in business, length

of time at present location, financial data, credit rating with other vendors and credit

reporting agencies, information about the individual principals of the company, and how

much they expect to purchase from you.

Documentation. This includes credit applications, sales agreements, contracts, purchase

orders, bills of lading, delivery receipts, invoices, correspondence, and so on.For

assistance, ask your particular industry's trade or professional association for guidelines.

Part of your research should include finding out what your competitors' terms are and

taking them into consideration when determining your own requirements.An often-

overlooked element in setting a credit policy is the design of invoices and statements. The

invoice is the document that describes what the customer is being billed for; the statement

is the follow-up document that indicates the status of the account. One collection and

creditor rights expert says that invoices and statements that are clear, easy to read, and

allow the customer to quickly identify what is being billed are likely to be paid faster.

Here are several points to include on the invoice:

An invoice number

An invoice date

A customer number or other identifying code

A complete and clear description of the product or service and item numbers, if

appropriate. Avoid abbreviations your customer may not understand.

The customer's purchase order, job order or other reference information that will make

identifying the invoice easier

The total dollar amount due, clearly indicated and Payment terms and due date (and

specify any early-payment incentives or late-payment penalties).


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CREDIT POLICIES AND FACILITIES OF KCC BANK

Kisan Credit Card Scheme

Kisan Credit Card Scheme (KCC) aims at providing adequate and timely support from the

banking system to the farmers for their short-term credit needs for cultivation of crops. This

mainly helps farmer for purchase of inputs etc.,during the cropping season. Credit card scheme

proposed to introduce flexibility to the sytem and improve cost efficiency.

Benefit of KCC Scheme

Simplifies disbursement procedures

Removes rigidity regarding cash and kind

No need to apply for a loan for every crop

Assured availability of credit at any time enabling reduced interest burden for the

farmer.

Helps buy seeds, fertilizers at farmers convenience and choice

Helps buy on cash-avail discount from dealers

Credit facility for 3 yearsno need for seasonal appraisal

Maximum credit limit based on agriculture income

Any number of withdrawals subject to credit limit

Repayment only after harvest

Rate of interest as applicable to agriculture advance

Security, margin and documentation norms as applicable to agricultural advance

How to get Kisan Credit Card?

Approach your nearest public sector bank and get the details

Eligible farmers will get a Kisan Credit Card and a pass book. It has the name,

address, particulars of land holding, borrowing limit, validity period, a passport size


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photograph of holder which may serve both as an identity card and facilitate

recording of transactions on an ongoing basis.

Borrower is required to produce the card cum pass book whenever he/she operates

the account.

Kisan Credit Cards from leading banks in India

Allahabad Bank - Kisan Credit Card (KCC)

Andhra Bank - AB Kisan Green Card

Bank of Baroda - BKCC

Bank of India - Kisan Samadhan Card

Canara Bank - KCC

Corporation Bank - KCC

Dena Bank - Kisan Gold Credit Card

Oriental Bank of Commerce -Oriental Green Card (OGC)

Punjab National bank - PNB Krishi Card

State Bank of Hyderabad -KCC

State Bank of India -KCC

Syndicate Bank -SKCC


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Vijaya Bank -Vijaya Kisan Card

Personal Accident Insurance Scheme to cover Kisan Credit Card holder

'Personal Accident Insurance Package" is provided to the Kisan Credit Card (KCC)

holders.

Salient features of the scheme

Scope of Cover - This scheme covers all the Kisan Credit Card Holders against

death or permanent disability within the country.

Persons Covered - All KCC holders up to the age of 70 years.

Risk coverage - The benefits under the scheme are as under;

Death due to accident caused by outward, violent and visible means: Rs.50,000/-

Permanent total disability: Rs.50,000/-

Loss of two limbs or two eyes or one limb and one eye: Rs.50,000/-

Loss of one limb or one eye: Rs.25,000/-

Period of Master Policy - Valid for a period of 3 years.

Period of Insurance - Insurance cover will be in force for a period of one year

from the date of receipt of premium from the participating Banks in cases where

annual premium is paid. In case of three year cover, the period of insurance

would be for three years from the date of receipt of premium.

Premium - Out of the Annual premium of Rs.15/- per KCC holder, Bank has to

pay Rs.10/- and Rs.5/- has to be recovered from KCC holder. Operational procedure - The servicing of the business will be undertaken by

the four Insurance Companies on zone-wise basis- United India Insurance Co

Ltd covers Andhra Pradesh, Karnataka, Kerala, Andaman and Nicobar,

Pondicherry, Tamil Nadu and Lakshadweep.


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Implementing branches have to remit the Insurance premium on a monthly basis

along with the list of farmers to whom KC cards have been issued during the

month.

Claims Procedure - In case of death, disablement claims & death due to

drowning: Claim administration will be done by the designated office of the

Insurance Companies. Separate procedure is to be followed.

SAVING BANK ACCOUNT FACILITY

Key Features:

Opened with minimum balance of 500.

Interest type is compounded.

Payable frequency half year

Interest for public is 3.5

Interest for societies is3.5

For senior citizen is 3.5

Free 2 Demand Drafts

Free unlimited usage of payable at par of Cheques transactions.

Free Transfer of funds across all branches

Pan no. is compulsory for with a value exceeding Rs. 50,000/- in one transaction.

Full facility of account transferred to one branch to another b

Eligibility:

Individuals above the age of 18.

Upwardly mobile tech savvy professionals, entrepreneurs in metros and urban areas.

Guardians on behalf of minors.

Salaried individuals.

Trusts / Societies and Charitable Institutions


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Credit Card Scheme:

The KCC was introduced in August 1998 for short- and medium-term loans to provide adequate

and timely credit support from the banking system in a flexible and cost-effective manner, covers

644.65 lakh farmers throughout India as on 30 December 2006. The scheme has been extended

with effect from 31October 2006 for all kinds of loan requirements of borrowers of the

SCARDBs under the KCC, viz, short-, medium- and long-term and a reasonable component of

consumption credit.

National Agricultural Insurance Scheme (NAIS):

This scheme, with increased coverage of farmers, crops and risk commitment, was introduced in

India from Rabi1999-2000, replacing the erstwhile Comprehensive Crop Insurance Scheme

(CCIS).The main objective of the scheme is to protect farmers against crop losses suffered on

accountof natural calamities, such as drought, flood, hailstorm, cyclone, pests and diseases. The

scheme is being implemented by the Agriculture Insurance Company of India Ltd(AICL).9.13

The scheme is available to all farmersboth loanee and non-loaneeirrespectiveof their size of

holding. It envisages coverage of all food crops (cereals, millets andpulses), oilseeds and

annualcommercial/horticultural crops, in respect of which past yielddata is available for an

adequate number of years.Among the annualcommercial/horticulturalcrops,

sugarcane,potato,cotton, ginger, onion, turmeric, chillies pineapple, annual banana, jute, tapioca,

coriander, cumin and garlic, have already been.covered under the scheme. All other annual

commercial/horticultural crops are stipulateto be insured in due course of time, subject to

availability of past yield data. The schemeis operating on the basis of area approach, i.e.,

defined areas for each notified crop.9.14 The premium rates are 3.5 per cent (of sum insured) for

bajra and oilseeds; 2.5 percent for other Kharif crops; 1.5 per cent for wheat, and 2 per cent for

other Rabi crops. Inthe case of commercial/horticultural crops, actuarial rates are being charged.

Small andmarginal farmers are entitled to a subsidy of 50 per cent of the premium charged from

them, which will be shared 50:50 by the central and state governments. The premium

subsidy will be phased out over a period of five years. During 2006-07, a 10 per cent

subsidy on the premium is available to small and marginal farmers.


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Review of NAIS: Over a period of implementation of the NAIS, certain

limitations/shortcomings relating to unit area of insurance, calculation of guaranteed

income, low indemnity level, delay in settlement of insurance claims etc., have been

observed. Keeping in view the limitations in the existing scheme, a joint group was

constituted to study the improvements required in the existing crop insurance schemes.

The group made an in-depth study of the related issues and submitted its report, following

which the report was circulated among the states/UTs and various other quarters for

comments/views. Most of the states/UTs have agreed to the suggestions given by the

joint group. Based on the recommendations of the joint group and comments received

from various states/UTs and other concerned organisations, a review of the NAIS is under

consideration of the Government of India. The proposed modified scheme with improved

features, likely to be implemented from the year 2007-08, will provide an effective risk

mitigation mechanism to the farming community in the form of effective crop insurance

solutions.

Central Financial Assistance: In order to strengthen the cooperative credit

structure for meeting the credit requirement of the farmers, central assistance is released

to the state government under the scheme viz. investment in debentures of SLDBs.

Under the NAIS, the Government of India releases the central share towards payment of

indemnity claims, premium subsidy, operational expenses, etc. to the AICL.

Cheque book facility for cash drawals

In tune with the model scheme the banks have allowed withdrawal under KCC either by

withdrawal slips or by cheques. While the Co-operative banks have by and large issued

cheque books to all the borrowers, the CBs have issued the same only to the literate borrowers


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LOCKERS FACILITY

Key Features:

In this locker they can keep his those things which is not safe in his house like jewelry and other

costly things.

Bank gives a key to his customer to operate his locker a/c

Free Transfer of funds in all branches.

Free Statement of Account by calling

Customer Service Line facility

Benefits:

Customers can use this a/c to secure his costly things.

No unexpected service charges in this a/c

Free limited access in this a/c.

They any time withdraw their funds in to his a/c .

Eligibility:


Guardians on behalf of minors.

Costly thing necessary for a locker a/c.


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FIXED DEPOSITS ACCOUNT:

Key Features:

Opened account with minimum balance 500

Interest type is simple

Payable frequency monthly/quartly/half yearly/on maturity.

Terms of interest in FD.

7 to 14 days: 2.50

15 to 45 days: 2.75

46 to 90 days: 4.00

91 to 179 days: 5.25

180 to 1 year: 6.25

1 year and less than 2 year: 7.25

2 years and less than 3 years: 7.50

3 years to 10 years: 8.00

Free issue of personalized cheque books.

Free transfer of funds across all the branches of ING.

Free Customer Service Line

Free joint account status with one other family member.

Full facility of account transferred to one branch to another branch.

Adhoc Checkout* (Temp Overdraft) to an extent of 50 % of the last salary credit charged

at 18 % for the number of days overdrawn. Service Charge of Rs.100/- for every month

that the account is overdrawn..

Pan no. is compulsory for with a value exceeding Rs. 50,000/- in one transaction.


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Eligibility:


The minimum number of employees of the corporate, whose salary accounts are to be

opened, should be 1

Where there is a joint account holder, the normal KYC norms need to be adhered to for

the joint account holder Preferably corporate to have a current account with

KCCB PRVIDES THE INSURANCE SERVICES WITH THE HELP OF

THESE COMPANIES:-

Corporate Tie-up

Sometime we have to reach out in new directions in order to change and grow

National Insurance Company Limited

The Bank has signed a MOU with National Insurance Company Limited for Corporate Agency

Arrangement to provide non-life Insurance Services to Customers and General public along with the Banking

Services at a single window through various branches of the Bank.

Kotak Mahindra, Old Mutual Life Insurance Limited

We are pleased to inform you that Bank has entered into a Referral Agreement with Kotak Mahindra, Old


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Mutual Life Insurance Limited. Under the agreement, the Bank will refer its customers and prospective

customers through its branches to the insurance company for distribution and providing its life insurance

products viz. Sukhi Jeewan and Eternal Life.

Hero Honda

We are pleased to inform you that Bank has entered into an MOU with Hero Honda Motors for financing

Motor Cycles

Tata Motors

We are pleased to inform you that Bank has entered into an MOU with Tata Motors for financing Tata

Vehicles

AXIS, HDFC and ICICI Bank

The Bank has also corporate tie-up with AXIS, HDFC and ICICI Bank for remittance and collection

purposes

For Co-operative society:

Agriculture

Non firm sector

LOAN

PRODUCT


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Personal vehicle

Weavers/individuals/housing

Cash credit

For individual:

Agriculture

Non firm sector

Personal vehicle

Housing

Cash credit

CATEGORY INTREST RATE

COOP.SOCIETIES OTHERS

1.AGRICULTURE LOAN

Crop loan/agriculture - 8% 9%

Kisan credit card-

Up to 3 lacs 6.5% 7%

RS.3, 00,001/-above 8% 9%

M t agriculture & allied 10.50% 11.0%

Activities (fisheries, poultry, herbal, bee keeping)

Tractor & Mechanization/irrigation - 12%

Personal vehicle loan


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For first year 8.00%

For second year 10.00%

For third & subsequent year 10.50%

Commercial vehicle

Up to Rs 2.00 lacs 12.00%

Rs 2, 00,001-to 5.00 lacs 12.00%

Rs 5, 00,001-& above 12.00%

House loan

Up to 5 years 8.50%

Above 5 years to 10 years 9.00%

Above 10 years to 15 years 9.50%

Above 15 years 10.00%

Hiring of bank accommodation

Up to 5 yrs 12.25% 12.75%

Above 5 yrs 12.75% 13.25%

Term loan weavers

Up to Rs 2.00 lac 10.00% 10.25%

Rs 2, 00,001- & above 11.00% 11.25%

Education loan

Up to Rs 2 lac 10.50%

Rs 2 lac to above


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Other facilities must be provide to the customer:

The bank should provide life time valid ATM card to all its customers.

Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000, so

that people who are not financially strong enough can maintain their account properly.

The company should provide a pass book to all its customers.

Make people understand about the various benefits of its products.

Company should organize the program in the society, so that people will be aware

about the company and different products of the bank.

company should open more branches in different cities

KCC bank provides free phone banking & net banking services.


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CHAPTER

2

OBJECTIVE

OF

THE STUDY


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OBJECTIVES OF THE STUDYThe objective behind the conducting project exercise was to get useful insight about the banking

sector. I have prepared this report with some specific objectives. The primary objective of our

study is to analyze the efficiency and effectiveness by the kcc bank. The objective of our study

is as under:

PRIMARY OBJECTIVES:

To study the customers perception about KCC Bank.

To know the customer prefrences while investing.

To understand the policies and facilities of bank.

To measure the awareness level of people regarding direct banking channels, products

offered by KCC bank.

To study brand image of the bank.

To know about which type of services satisfied customers.

SECONDARY OBJECTIVES:

To evaluate the overall satisfaction level of customers regarding services and products

offered by the bank.

To find the different way of convincing customers.

To assess the customer contribution towards the growth of the bank (in terms of

recommendations for changes and improvements).

To know whether the staff of kcc bank is co operative or not.


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CHAPTER

3

RESEARCH

METHODLOGY


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RESEARCH METHODOLOGY

Introduction and meaning

Research methodology is way to systematically solve the research problem. The research

methodology includes the various methods and techniques for conducting a research. D.

Salinger and M. Stephenson in the encyclopedia of social sciences define research as the

manipulation o things, concepts or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art

Research is a careul investigation or inquiry especially through search for new facts in branch of

knowledge: market research specifies information. Required to address these issues: designs

the method for collecting information: manage and implements the data collecting process

analyses the results and communicates the finding and their implecations.

RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT

PROBLEM DEFINATION:

Personal Banker were with good background human being and through rigorous process of

recruitment but still not able to perform up to the expectation level of company, HR is not able to

sort out the problem why the performance is not coming even after giving the full marketing and

operational support. So there is need to study the customers perception and attitude towards the

various products and services provided by the bank.

RESEARCH: - It means search for facts, answers to questions and solutions to problems.

RESEARCH DESIGN:


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Research design constitutes the blue print for the collection, measurement and analysis of data.

The present study seeks to identify the perception of consumers on KCC Bank in Kangra. The

research design is exploratory in nature. The research has been conducted on users within

Kangra. For the selection of the sample, convenient sampling method was adopted and an

attempt has been made to include all the age groups and gender within different occupation.

Type of Research

The present study will adopt the exploratory approach wherein, there is a need to gather large

amount of information before making a conclusion.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time

limitation and other constraints direct personal interview method is used. A structured

questionnaire was framed as it is less time consuming, generates specific and to the point

information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.

COLLECTION OF DATA:

1: SECONDARY DATA: It was collected from internal sources. The secondary data was

collected on the basis of organizational file, official records, news papers, magazines,

management books, preserved information in the companys database and website of the

company.

2: PRIMARY DATA: All the people from different profession were personally visited andinterviewed. They were the main source of Primary data. The method of collection of primary

data was direct personal interview through a structured questionnaire.


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SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary

to take sample from the universe to know about its characteristics.

Sampling Units: Different professionals. Chartered Accountants, Tax Consultants, Lawyers,

Business Man, Professionals and Students of Kangra.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 100 respondents. Since it was not

possible to cover the whole universe in the available time period, it was necessary for me to take

a sample size of 50 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of

collection of data will be based on Survey Method and Field Activity. Primary data collection

will base on personal interview. I have prepared the questionnaire according to the necessity of

the data to be collected.


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CHAPTER

4

ANALYSIS

INTERPERTATION


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QUESTIONS WITH ANALYSIS AND INTERPRETATION:

A questionnaire was used as the primary source of data collection and the detailed question wise

analysis of the data is given below:-

Q.1 What is Your Occupation?

Category No. of Respondents Percentage

Business 28 28

Profession 24 24

Service 36 36

Students 12 12

Interpretation:-From above response it can be seen that.

28% respondents Occupation is Business.

24% respondents Occupation is Profession.

36% respondents Occupation is Service.

12% respondents Occupation is Student.

28%

24%

36%

12%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Business Profession Service Student

%age

%age


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Q.2 From which bank you have bank account?


KCC Bank 50 50

PNB 30 30

OTHERS 20 20

Interpretation:- From above response it can be seen that

50% respondents have account with KCC bank.

30% respondents have account with PNB bank.

20% respondent have account with others bank.

No. of Respondents

KCC Bank

PNB

OTHERS


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Q.3. Do you already had an account with KCC bank?


Yes 65 65

No 35 35

Interpretation :- From above response it can be seen that.

65% respondents are already customers of KCC bank.

35% respondents have no any account with kcc bank.

CategoryNo. of Respondents

Percentage


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Q.4.what makes you to open another account with kcc bank ?


Efficient service 48 48

Convenient location 28 28

Acquaintance 16 16

Others 8 8

Interpretation :- From above response it can be seen that

From the survey we came to know that 48% people prefer services of the bank for

opening the account.

About 28% people open account in the bank for the convenient location.

26% people open account because of acquaintance with the bank officers only 8% people

open account because of other reason

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%50%

Efficient service Convenient

location

Acquaintance Other

48%

28%

16%

8%

%age

%age


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Q.5 Do KCC Bank provide better credit facilities and services

than other public sector banks?

Number of

respondents

Percentage

Yes 82 82

No 18 18

INTERPRETATION:

KCC provide better facilities than other banks which is indicated as 82% are

preferring KCC bank as compared to other public sector banks as only 18%.

Yes

No

0

10

20

30

40

50

60

70

80

90

Number of

respondents Percentage

Yes

No


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Q.6 What facilities or benefits kcc provide?

Facilities and benefits Percentage

High interst rate of return 12

Many credit schems 30Less legal fprmalities 10

More time duration 48

Interpretation:-

In this pie chart shows that kcc bank provide facilities like 12% high interst rate of

return,30%many credit schems,10% less legal formalities and 48%more time duration.

High interst rate

Many credit schems

Less legal fprmalities

More time duration


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Q.7 What is the base of investment of customer while investing in kcc bank?

CUSTOMERS PREFERENCES NO. OF PEOPLE

Better Services 22

Goodwill 21

Norms are low 18

Interst rate 23

Immediate Feedback 16

TOTAL 100

Interpretation:

This Analysis shows that customer prefer Kangra Central Co-operative Bank for

its features like Better Services, Good Reputation, for Low Norms and high

Interest Rates as compared to other investment organizations

22%

21%

18%

23%

16%

Customer Preferences

Better Services

Good Reputation

Norms are Low

Interest Rate

Immediate Feedback


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Q.8 What bank does to promote its customers relationship

management?

contents Percentage

Provide personlise services 20

Provide customers services 50

Makes waitings time plesurable 30

Interpretation:-

From above diagram it be seen that KCC bank provide 50% customers services , 20%provide

personlise services and30%makes waiting time pleasureable.

0

10

20

30

40

50

Provide

personlise

services

Provide

customers

services

Makes waitings

time plesurable

percentage

percentage


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Q9. From which type of service are you satisfied with?

Option Total no Percentage

Personnel accidental

insurance scheme

20 20

Cheque back facility for

cash drawals

32 32

National agricultural

insurance scheme

16 16

Any other 32 32

Interpretation: - It clearly shows that the 40% of the people were satisfied with the personalaccidental insurance scheme services provided by bank and 64 % were of the views that cheque

book facility is the best and 32% of the people were of the views that the national agriculture

insurance scheme is the most satisfied services given by kcc bank and 64% of the people were

having views that some other services are most suitable respectively

0

5

10

15

20

25

30

35

Percentage

Total no


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Q.10 what is your perception about different products/services provided by

KCC bank?


Lucrative 24 48

Not Lucrative 21 42

No Idea 5 10

Interpretation:- From above response it can be seen that.

48% respondents perception about different products is lucrative.

42% respondents perception about different products is not lucrative.

10% respondents have no idea.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

LUCRATIVE NOT LUCRATIVE NO IDEA

48%

42%

10%

%AGE

%AGE


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Q.11 Are you aware that the KCC bank provides you free phone banking

& net banking services.


Yes 64 64

No 36 36

Interpretation:- From above response it can be seen that

64% respondents are aware of it.

36% respondents are not aware of it.

64%

36%

%AGE

YES

NO


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Q.12 Are you aware of different terms and conditions which are very much

essential to maintain an account at KCC Bank?


Yes 34 34

No 66 66


34% respondents are familiar with different terms and conditions which are very much

essential to maintain account with the bank.

66% respondents have no idea about it.

34%

66%

0%

10%

20%

30%

40%

50%

60%

70%

YES NO

%AGE

%AGE


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Q.13 Is the staff of KCC bank is co-operative ?


Yes 68 68

No 22 22

No Idea 10 10


68% respondents believe that staff of KCC bank is co-operative.

22% respondents believe that staff of KCC bank is not co-operative and10% respondentshave no idea.

0%

10%

20%

30%

40%

50%

60%

70%

YES NO NO IDEA

68%

22%

10%

%AGE

%AGE


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Q,14 How the staff co-operative of kcc bank?

contents PercentageEfficient quiery handling 25

Provide complete information 50

Efficient after sale services 25

Interpretation:-

In this diagram it shows how kcc bank staff is co-operative 25% efficient quiery handling

,50%provide complete information and 25% provide efficent after sale services.

0

10

20

30

40

50

Efficient quieryhandling

Providecomplete

information

Efficient aftersale services

Percentage

Percentage


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Q.15 Do you think that KCC bank provides innovative products and superior

services?


Yes 74 74

No 26 26

Interpretation :-From above response it can be seen that

74% respondents believe that KCC bank provides innovative products and superior services.

26% respondents believe that KCC bank does not provide innovative products and superiorservices.

74%

26%

Sales

YES

NO


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CHAPTER5

FINDINGS


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Since our sample was collected from dharamshala majority of the respondent were Business

man and govt.employees mainly in the age group of 26-35.Most of the respondent used kcc

&SBI and pnb banks instead of other public/private sector banks.

KCC scored the highest when it came to acquaint oneself with saving account pattern in

banks closely followed by private banks.

As far as number of transactions and visit to the bank is concerned in one month majority of

them used it more than 7 times .As far as financial services are concerned majority of them

used it.

Other banks clearly scored over government banks when it came to facilities ATM

availability and satisfaction with value added services and satisfaction with value added

services and perceives it to be a value for money proposition when it came to choosing

banks.

Most of the peoples believe that KCC bank provides innovative products and superior

services.

40% of the people were satisfied with the personal accidental insurance scheme services

provided by bank and 64 % were of the views that cheque book facility is the best .

32% of the people were of the views that the national agriculture insurance scheme is the

most satisfied services given by kcc bank and 64% of the people were having views that

some other services are most suitable respectively.

To know whether the staff of kcc bank is co operative or not.


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CHAPTER

6

LIMITATION


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LIMITATIONS OF THE STUDY

Sincere efforts have been made to eliminate discrepancies as far as possible but few would have

remained due to limitation of the study.

Time seemed to be our most limited resource. To conduct a comprehensive research

project in a 6 week period is very difficult.

The absence of appropriate funding limited the extent of our study. With additional

financial resources, the scope of our study could have been enlarged, resulting in a

more representative study.

Interview bias could not be avoided as in case of many surveys open ended questions

involve the use of probing techniques that increase interview bias. However, as our

study did not use many open ended questions, the extent of the bias was reduced.

It was not possible to understand thoroughly about the different marketing aspects of

the Financial Consultant within 45 days. As stipend, money was not given it was

difficult to continue the project work.

All the work was limited in some limited areas of Kangra and dharamshala so the

findings should not be generalized. The area of research was Kangra and dharamshala

it was too vast an area to cover within 45 days.


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CHAPTER

7RECOMMENDATION

AND

SUGGESTION


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RECOMMENDATION AND SUGGESTION

Finally some recommendations for the company are as follows:-

To make people aware about the benefit of becoming a customer of KCC Bank,

following activities of advertisement should be done through

1. Print Media. 2. Hoarding & Banners.

3. Stalls in Trade Fares 4. Distribution of leaflets containing details information.

The bank should provide life time valid ATM card to all its customers.

Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000,

so that people who are not financially strong enough can maintain their account

properly.

The company should provide a pass book to all its customers.

Make people understand about the various benefits of its products.

Company should organize the program in the society, so that people will be aware

about the company and different products of the bank.

Company should open more branches in different cities.


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CHAPTER

8

CONCLUSION


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CONCLUSION

KCC Bank, the banking arm of KCC is expected to go on stream. The bank already has good

number of employees on board and is recruiting personal banker heavily to take the headcount to

many more. It is on the brim of increasing its customers through its attractive schemes and offer.

The project opportunities provided was market segmentation and to know the perception of

prospective customers in potential geographical location and convincing them to attract more

customers so that new business opportunities of the bank can be explored. Through this project,

it could be concluded that people are not much aware about the various products of the bank and

many of them not interested to open an account, to invest money at all. Majority of people have

more faith in public sector banks as compare to private banks. Professionals and businessman are

more attracted towards the products and services provided by the KCC bank as compare to

people in services and students. Services was considered as unsought good which require hard

core selling, but in changing trend in income and people becoming financially literate, the

demand for banking sector is increasing day by day.So, at last the conclusion is that there is

tough competition ahead for the company from its major competitors in the banking sector. Last

but not the least I would like to thank KCC Bank for giving me an opportunity to work in the

field of Marketing and Operation. I hope the company finds my analysis relevant.


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BIBLIOGRAPHYBOOKS NAME:

.

C.R.KOTHARY Research Methodology,

S.K DUTTA Accounting and finance for bankers

NEWS PAPERS: Times of India

Financial Express

WEB REFERENCES

http:www.kccb.com/consumer perception_rshn.htm

http:[email protected]/profile/paper.htm

http:www.faculty.rsu.edu/history/mgtfayol.html

http:www.mr-guide.com/data/G510.htm

http:www.sancharnet.com/lo_index.htm


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ANNEXURES

1. QUESTIONNAIRE

Dear Sir/Madam,

Name: ..

Address: ..

Contact No :( O) (M)

City: ...............Pin: .State:

I am a student of ICL Group of colleges presently doing a project onCustomers

Perception on KCC Bank.

Q.1 What is your occupation?

Business

Profession

Service

Student

Q.2From which bank you have bank account?

Kcc bank

P.N.B

Others


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Q.3 Do you already had an account with kcc bank?

Yes

No

Q.4 What makes you to open another account with kcc bank?

Efficient Service

Convinient location s

Acquaintance

Others

Q5. Do Kcc bank provide better credit facilities and services than other public sector

banks?

yes

No

Q.6 What facilities or benefits kcc bank provide?

High interst rate of return

Many credit schems

Less legal formalities

More time duration

Q.7 What is the base of investment of customers while investing in kcc bank?

Better sevices

Godwill


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Norms are low

Interst rate

Immediate feedback

Q.8 What bank does to promote its customers relationship management?

Provide personlise services

Provide customise services

Makes waiting time pleasurable

Q.9 From which type of services are you satisfied with?

Personnel accidental insurance scheme

Cheque back facility for cash drawals

National agricultural insurance scheme

Any other

Q.10 What is your perception about different products and services offered by KCC Bank?

Lucrative

Not lucrative

No idea

Q.11 Are you aware of that KCC Bank provide you free phone banking & net banking

services. ?

yes

No


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Q.12 Are you aware of different terms and conditions which are very much essential to

maintain an account at KCC Bank?

Yes

No

Q.13 Is the staff of KCC bank is co-operative ?

Yes

No

Q.14 How the staff co-operative of kcc bank?

Efficent query handling

Provide complete information

Efficent after sale services

Q.15 Do you think that KCC bank provides innovative products and superior services?

Yes

No

Date:

Place: Signature

Thank You

Documents

Bindu Project