Conducted For: A Summer Training Report On

A SUMMER TRAINING REPORT ON
CUSTOMER SATISFACTION TOWARDS J&K BANK WITH REFERECE TO CAR LOANS
CONDUCTED FOR
THE JAMMU & KASHMIR BANK LTD.
Submitted to Punjab Technical University in partial fulfillment of the requirement for the award of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:
ZAHID HUSSAIN SOFI M.B.A (3rd) Roll no: 81403317119
UNDER THE GUIDANCE OF

Mr. SYEED ATHAR
&
SHEIK ALTAF AHMAD
ACADEMIC SESSION
2008-2010
St. Soldier Management and Technical Institute, Basti Mithu, Jallandhar

1
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
ACKNOWLEDGEMENT I avail this opportunity to express my deep sense of gratitude to Mr. SHEIK ALTAF AHMAD the respected Sr. EXECUTIVE Manager of the Jammu and Kashmir Bank for providing me an opportunity to work as a summer trainee in the Jammu and Kashmir Bank Ltd. I also take this opportunity to thank to my guide Mr. SYEED ATHAR (Marketing Manager, Zonal Office, Srinagar) for providing me proper direction to my project, for sparing their valuable time and rendering all possible guidance whenever approached. Thus, from which I have gained many insights.
Place:
(ZAHID HUSSAIN SOFI)
DECLARATION BY THE STUDENT
I here by declare that this project tilted CUSTOMER SATISFACTION TOWARDS J&K BANK WITH REFERECE TO CAR LOANS is based on the original work carried out by me under the supervision of Mr.SYEED ATHAR (Marketing Manager Zonal Office srinagar) is an original and bonafide work carried out in partial fulfillment of the requirement of the award of the degree of Master of Business Administration of Punjab Technical University. This is my original work and not submitted for any other diploma, fellowship, award or prizes. This is my sole effort.
Place:
(ZAHID HUSSAIN SOFI)
CERTIFICATE
This is certified that the project report entitled CUSTOMER
SATISFACTION TOWARDS J&K BANK WITH REFERECE TO CAR LOANS is submitted for the degree of Master of Business
Administration under Punjab Technical University, Jalandhar is a bonafide research work carried out by Zahid Hussain Sofi, Roll No : 81403317119 under the guidance and supervision. No part of this report has been submitted for evaluation in partial fulfillment of the requirements for the degree of Master in Business Administration. The assistance and help received during the course of investigation has been fully acknowledged.
Ms.Bindu Verma H.O.D.
Dr. Amarnath Principal
Contents
S. No. I II III IV V VI VII VIII IX X XI Title of the Chapter Executive Summery Theoretical Background Company Profile Objectives of the Study Research Design Analysis & Interpretation Limitations Conclusion Recommendations and Suggestions New Plans and Schemes Bibliography Page No. 6 9 12 21 23 26 50 52 54 57 74
CHAPTER-I
Executive Summary
Executive Summary Objectives of the study 1. To study the impact of personal selling on sales of our car loan product. 2. To study the problems encountered in selling this product 3. To suggest remedial measures, if required. Sources of information Primary source Face to face interview Secondary Source Management books Websites Annual reports Research Methodology Sample size for the research was 100 customers. Findings and conclusions
Even though J&K bank enjoys a large market share and customer loyalty but still it is not able to tap the potential customers because of the certain loopholes in the scheme. With the result customers are shifting to State Bank of India particularly for car loans as their scheme is more attractive and their severe advertising has caused the results. The rate of interest, margin money of J&K bank is quite high in comparison with competitors. The repayment period and minimum finance offered is also less with the result people wanting less amount in installments and those who want to buy luxury sedans goes out of reach of bank. As evident the formalities required are less and the net annual income for availing loan is only Rs75000, which is healthy for the bank. The J&K bank should also start financing second hand cars in order to laurel more customers. In addition it should find tool to counter Rs2599 of State Bank of India which is taking the toll in the valley.
Recommendations
From the fore going process, it is important for the bank to establish a system for the continuous creation of high customer satisfaction. The following measures are recommended to create growing customers base:1. First of all, the bank should over haul the scheme to make more competitive than the other banks [As we already know that Rs2599 has already made the impact in the minds of the potential customers.] 2. The bank has to definitely reduce the rate of interest, decrease the margin money and increase in the repayment period. 3. They should not put any ceiling on the maximum finance as is done by the Canara bank so that people can easily avail the loan for luxury sedans. 4. The bank should also provide the loan for the second hand cars in order to create strong customers base with hand in hand to Marutis Authorized Dealers under True Value Scheme which operates mostly outside state. 5. Print media advertising should be done effectively so as to move the customer to higher levels in the decision process for using the finance scheme. 6. The bank needs to go for aggressive marketing of its products and requires increasing the awareness level among the customers. 7. Definitely personal selling helps in increasing the sales and clears the confusion about the scheme among the customers. So bank should keep a separate force for telling the schemes and policies of the bank. It will definitely help the bank. 8. Employees of the bank must be trained to treat the customers more courteously and to be more responsive towards their needs and expectations. As the satisfied customers will bring in more customers.
CHAPTER-II
Theoretical Background
What is Marketing? Marketing is the process by means of which good and services are exchanged and their value determined in terms of money. It is that phase of business activities through which human wants are satisfied by exchange of goods and services. According to American Marketing Association, Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives. Marketing Management Marketing management represents marketing concept in action i.e. pre-planned demand management under customer oriented marketing to philosophy. It can be defined as the process of planning and executing the conception, pricing, promotion and distribution of goods, services and ideas to create exchange with target groups that satisfy customers and organizational objectives. Marketing Mix Determination Marketing Mix is that set of marketing tools that the firm uses a to pursuer its marketing objectives in the target market. It can be defined as a set of controllable variables that a firm can use to influence the buyers response within a given target market. The marketer has to take a series of decisions on four major ingredients frequently referred to as the marketing mix variables. Product, price, place and promotion. However there are other Ps which effects the market situation e.g. marketing mix tools that the firm uses to pursue packing, pride, political clout, persistence, public relation prestige etc.
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The Promotion Mix Firms select a mix of promotional tools to effectively communicate with their target customer group. The different elements of this mix are: (a) Advertising (b) Personal selling (c) Sales promotion (d) Public relations Not each element is helpful or effective in all product market situations. Promotion decisions are important as they help move the product from the manufacturing and to the consumption. Personal Selling: Selling is an important aspect of marketing. Customers get to know the firm and the product through the salesperson. The image is created or tarnished by the quality of selling demonstrated in the fields by salespeople. They could be order takers (when they adopt stimulus response theory or product oriented approach) or problem solvers, consultants, or even a person who is held in esteem by the prospect. This happens when the salesperson uses need satisfaction approach and does things that help him or her build a positive relationship. A sales call goes through five stages---opening, need exploration, presentation, managing objections and closing. Probing and negotiating are the two key tools required to succeed in the market today.
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CHAPTER-III
Company Profile
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Profile of J&K Bank Prelude The J&K Bank incorporated on October 1st 1938 commended business on July 4th 1939. from a small beginning the Bank has grown to become a giant with a wide network of branches spread over the length and breadth of India. A significant contributing factor for this fast growth is the solid founding principles, which are dedicated to the cause of transforming the bank not only as a financial heart but also as a social heart of the community. The J&K Bank is the first state owned Bank of the country and 53% of the equity is held by the Govt. of J&K. The Bank has a consistent tract record of growth and profitability. It has a unique distinction of being banker to the J&K State Govt. and has also been appointed by RBI as its agency in J&K, responsible for carrying general banking business of the central Govt. and collection of taxes pertaining to the Central Board of Direct Taxes. The landmark achievements in the diversification of the Banks functions include the sponsoring of the two Regional Rural Banks viz, Kamraz Rural Bank and Jammu Rural Bank; permission for dealing in foreign exchange, holding the lead bank responsibilities in eight of the fourteen districts in J&K. Nearly 450 branches have been either partly or fully computerized covering 90% of the total business of the bank. The bank has already installed around 330 ATMs at vital installations of the country. The ATMs are interconnected and thus provide the customer convenient and 24-hour banking facilities. Bank also introduced Global Access Card in collaboration with MasterCard international, thus increasing the acceptability of card to all maestro locations throughout the globe. Bank has also commissioned
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anywhere banking facilities at more than 103 branches throughout the country. The bank has already make available the EFT and Email facilities at all of its computerized branches and also Telebanking facilities at most of these branches. Presently the bank is the fastest growing bank in India with a network of more than 500 branches spread across the country offering world class banking products/services to the masses. J&K Bank is going form strength to strength: Bank has touched business turnover of Rs.29946 crores. In short, Bank sees tremendous revenue growth opportunities in all businesses. Bank will continue to invest t increase to revenue, and enhance shareholder value through whichever means is most appropriate, including organic development, acquisitions, joint ventures and partnerships. Bank will continue to improve operational efficiency, building on success to date, but wont hesitate to reinvest these savings in new propositions, new initiatives, and new businesses especially if they allow bank to exploit profitable growth opportunities. J&K Bank has a powerful set of brands that people trust. Bank has proven products and services, an integrated distribution network that delivers, and financial strength. This is a tremendous base on which to grow business profitably. Bank is confident to continue to be a winner. In recognition of its excellent customer service, fair business practices, overall operational efficiency, overall performance, etc the bank has been felicitated by the following awards during the last few years. Asian Banking Award-2004 No. 1 Bank in India_ET_CMIE Survey 98-99 The Best Bank-Rediff.com & PWC Survey Indias Fastest Growing Bank-Business Standard Excellence Award-Institute of Economic Studies. Ranked as No.1 on Safety Parameters-Business Standard Survey
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Ranked as No.2 on profitability front_ Business Standard Survey Jamnalal Bajaj Uchit Vyavahar Puraskar2002- Council for Fair Business Practices dated 26th March 2003 Best Private Sector Bank Award-Financial Express, presented by Dr. Bimal Jalan, Governor, Reserve Bank of India on 4th April 2003. Best Universal Bank Award- Financial Express, Presented by Dr. Bimal Jalan Governor, Reserve Bank of India on 4th April 2003. Ranked 87th among Indias Top 500 Companies by Worlds renowned rating agency-DUN & BRADSTREET Asian Banking Award 2004 for the customer Convenience Programme. Presently the bank is headed by Mr. Haseeb-Drabu, Chairman cum Chief Executive Officer, who has been felicitated by the following awards: Udyog Rattan Award by IES presented by Mr. K.K. Gujral, former Honble Prime Minister of India. Pride of India and IMM Award for excellence as Top Professional Manager and outstanding performance in Management Quality and Innovations in the field of banking by Mr. H.D. Deve Gowda, fomer Honble prime Minister of India. Excellence Award by Institute of Economic Studies, Delhi. Pride of India Gold Award. Indira Gandhi Priyadarshini Award. J&K Govt. Award for outstanding work in J&K Bank presented by the governor of Jammu and Kashmir on Independence day. Best Banker of the year 2001 Award by Rotary Club of Delhi Capital Presented by Sh. L.K. Advani, Deputy Prime Minister, Govt. of India.
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Shiromani Award for outstanding achievements in the field of banking and commitment to national progress and human welfare presented by Mr. I.K Gujral, former Prime Minister if India on August 30, 2003. ORGANIZATIONAL STRUCTURE The J&K Bank has a four tier organizational structure, namely: Corporate Headquarters, Zonal Offices, Area and District Offices, and Branch Offices.
1. CORPORATE HEADQUARTER: The corporate Headquarter of the Bank is located at Srinagar and is headed by Chairman cum Chief Executive officer (CEO), who is appointed by the J&K Government for a period of 3 to 5 years. Generally, the chairman is selected form reputed Economists, Bankers or the Administrators of the state. The Chairman is guided by the Board of Directors of the Bank. Board of Directors: The Board of Directors of the Bank consists of 14 members. The Board sits more than a dozen times in a year to review the business activities of the Bank. It also plans and regulates the future activities of the Bank through policy decisions and administrative guidelines. All the important decisions of the Bank have to be endorsed by the Board of Directors before their implementation. MANAGEMENT:
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The management of the Bank consists of the following three categories. Senior Management Middle Management, and Junior Management. At the top of management there is Chairman cum CEO, who is followed by one Chief General Manager and five General Managers. The chief General Manger looks after the portfolio of administration. General Manager looks after the portfolio of corporate Credit, ALM & Investments: Law, company Affairs and Accounts, Retail Credit & Stationary, I&V and Insurance, Estates & Card business. The General Managers are assisted by seven joint General Managers and eight Deputy General Managers, who in turn are assisted by the Assistant General Managers, are assisted by the chief Managers. In the Middle Management, there are Managers of Scale III, II and in the junior Management there are Managers of Scale I. 2. ZONAL OFFICE: Under Corporate Headquarters there are 4 Zonal Offices spread all over India. A zonal Manager, who is of the rank of Joint General Manager/Deputy General Manager of senior Management cadre, heads Zonal Offices and is assisted by the Assistant General Managers/Chief Managers heading respective Departments. The various departments at Zonal offices look after following important functions: Inspections and Estates, I&V, RC & Sty., CC & I, Law,
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Trainings, Credit, Branches, Security, Advertisement, General, etc. 3. AREA/ DISTRICT OFFICES: Under Zonal Offices, there are Area/District Offices. The District Office is headed by the concerned District Manager. The Branch Managers report to their respective District Manager. Presently the Bank has 11 District Offices and 3 Area Offices. 4. Branch offices: The various branches of the Bank in Jammu and Kashmir State are divided into 5 different categories whereas in Delhi Zone they are divided into 2 categories, depending on the quantum of business. These are, in J&K State, as follows: Category A- Average working above Rs150.00 Crores. Category B- Average working Rs. 50.00 crores to Rs.150.00 Crores. Category C- Average working Rs.15.00 crores to Rs.50.00 crores. Category D- Average working Rs.2.00 crores to Rs.15.00 crores. Category E- Average working up to Rs.2.00 In Delhi Zone the various categories of the Branches of the Bank are: Category I- Average working above Rs.25.00 crores. Category II- Average working up to Rs.25.00 crores.
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HISTORICAL BACKGROUND
Entire banking in the state of Jammu and Kashmir was performed by traditional moneylenders till 1920-30 and that too at exorbitant interest rates. At the same time some banks functioned but at a very limited scale, such as Punjab National Bank, Grindlays Bank and Imperial bank of India. The role of these banks was reduced to the acceptance of deposits, as they could not grant loans and advances to the people of ht e state owing to the statutory limitations. Under this scenario banks could not ameliorate the financial and social position of people of the state. To overcome this critical situation the then Maharaja of State conceived an idea of setting up of a state Bank in the state. After, prolonged exercises and deliberations the assignment for establishment of The Jammu & Kashmir Bank Limited was given to the late Sir Sorabji N Pochkhanwala, the then Managing Director of the Central Bank of India. Mr. Pochkhanwala formulated a scheme on 24-09-1930, suggesting establishment of a Semi State Bank with participation in capital by State and public under the control of State Government. Thus the Bank was formally incorporated on 1st of October 1938 and commenced business from 4th of July 1939 at its Registered Office, Residency Road, Srinagar, and Kashmir. The Jammu and Kashmir Bank limited has been the first of its nature and composition as a state owned bank in the country. The state Government besides contributing half of the issued capital also appointed it as its bankers for general banking and treasury business. In its formative years, the bank had to encounter several serious problems, particularly around the time of independence, when out of its total of 10 branches two branches of Muzaffar-abad and Mirpur fell to the other side of line of control (Now Pak Administered Kashmir) along with cash and other assets in 1947. However, the State govt. came to its rescue with the assistance of Rs 6.00 lacks to meet the claims. However the bank steadfastly overcame its difficulties and kept growing. Following the extension of central laws to the State of Jammu and Kashmir, the bank was
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defined as a Govt. company as per the provisions of Indian companies Act 1956. The Bank had its first full time Chairman in 1971, following the social control measures in banks. The year 1971 was a turning point for the bank on conferment of scheduled bank status and witnessed remarkable progress in all the vital fields of operations. Reserve Bank of India declared the Bank as A class bank in 1976.
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CHAPTER-IV
Objectives of the Study
21
Study for J&K Bank car loan scheme A study of actualization rate of promotional tools (Personal Selling) into immediate sales. Objectives of the Study 1. To study the impact of personal selling on sales of our car loan product. 2. To study the problems encountered in selling this product. 3. To suggest remedial measures, if required.
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CHAPTER-V
Research Design
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Research approach and Methodology Research Design:A customer survey was undertaken to assess the customers. An exploratory research design was adopted to conduct the study in order to know the impact of J&K bank car loan scheme among the potential customers. In order to get the relevant data, primary data was collected by meeting the respondents personally. Sampling Plan: Population of the Sample: The population of the interest was Kashmir valley. A random sample design was used. Judgment simple was also done to ensure maximum coverage of J&K bank customers. Sample Size: A sample of 100 respondents was taken in some organizations like institutions, universities, hospitals and in some shopping centers of the valley. Data collection: Source of Data: The report mainly consists of primary data gathered through the schedule of questions asked to the respondents
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directly. Information about the company, its product/ services, features and market share were obtained from the bank and form other secondary sources such as magazines, journals, annual reports etc. The interviewer approached the respondents as if the was the marketing executive of the bank and questionnaire was formulated. The answers, queries and responses were noted down from each respondent and accordingly the results were formed. Geographical area of the study: The data collection for this project is restricted to the Valley of Kashmir. Statistical Tools: Tools are used for tabulation of data, percentages are drawn for generalizing the study and graphs are used for having better pictorial representation.
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Chapter-VI
Analysis & Interpretation
26
Comparative analysis of the various banks in Kashmir valley
(1) Head on comparison and the features of J&K bank with its competitors in the valley. S. No.
1.
Name of the Bank

J&K Bank
Tenure
Up to 3 Years Above 3 to 5 Years
Rate of Interest
9.5% 11% 9% 9.25% 9.25% 9.5% PLR-1.5% PLR-1% PLR+2% 11% 11.5%
2.
State Bank of India
3.
Punjab National Bank
4.
Oriental Bank of Commerce
5. 6. 7.
Central Bank of India UCO Bank Canara Bank
Fixed Rate Fixed Rate Fixed Rate
Analysis:- It is evident from above table that J&K Bank levy high rate of interest compared to its arch rival competitor state bank of India. if it is allowed for more time that the Bank will loose the hold of the potential customers. Therefore efforts must be raised by the bank management to reduce the rate of interest.
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(2) Margin Money required for availing the scheme
Analysis:- From the graph it is observed that the margin money required for the sanction of loan of various banks is as: J&K Bank =25% UCO Bank =15% Canara Bank =10% Oriental Bank of Commerce =10% Central Bank of India =20% Punjab National Bank =25% State Bank of India =25% Inference:- It is evident that margin money required is high. In order to make more influence on potential customer the bank management should take steps in order to reduce the margin money.
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(3)Repayment period of the schemes for different banks:
Analysis:- From the graph it is observed that the maximum repayment period of various banks is listed as: J&K Bank UCO Bank Canara Bank Oriental Bank of Commerce Central Bank of India Punjab National Bank State Bank of India =5years =5years =5years =7years =7years =5years =7years
Inference:- It is inferred that the J&K Bank offers only 5 years to maximum repayment period while its competitors State Bank of India offers 7 years. This in order to make the scheme more competitive, the management should made efforts to increase the repayment period to 7 years form 5 years which is crucial and important step.
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(4) Security required by the various banks S.NO 1. 2. SECURITY Hypothecation Third Party guarantee BANKS
3.
In addition to above 2 All banks Points. criterias. One can keep liquid security FDR/LIC/ Bank approved shares in demat form etc.
obey
these
Analysis:- Under security, all the banks obey stated features.
(5)Quantum of maximum finance offered by different banks

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Analysis:- From the graph it is observed that the maximum finance offered by various banks is as: J&K Bank UCO Bank Canara Bank Central Bank of India =5Lacks =7.5 Lacks =No ceiling on maximum amount =10 Lacks
Inference:- It is inferred that J&K Bank should raise the quantum of finance to bring into clutches more potential customers under its canopy. It is for those customers who go for the luxury cars.
(6)Eligibility required for availing loan from different banks

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S.No 1.
ELIGIBILITY Employees of Government / semi Government undertaking Autonomous bodies Public undertakings Individuals sector
BANKS
2. 3. 4. 5. 6. 7. 8.
Proprietorship concerns Firms Limited Companies Recognized Colleges. schools /
All banks obey these criterias for the sanction of loan.
9.
Having regular and known sources of income
Analysis:- It is evident that for eligibility all bank obey the above described criteria for the sanction of loan.
(7)Prerequisite for formalities.

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S. No. 1.
FORMALITIES Income tax return
BANKS UCO Bank, Canara Bank, Oriental Bank of Commerce, Central Bank of India, Punjab National Bank, State Bank of India.
2.
Certificate from Chartered Accountant, No need for IT J and K Bank return certificate. Bank account statement for All banks require the previous months (Current / statement of accounts for savings) the sanction of loan
3.
Analysis:- From above it is evident that only J and K Bank doesnt require IT certificate which is plus point for the bank. Because of this, it is able to grasp more customers under its cover.
(8) Net annual income for availing loan.

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Analysis:- From the graph the minimum gross salary / income for availing loan is: J&K Bank UCO Bank Canara Bank =Rs 75000 =Rs 1.2 Lacks =Rs 1.2 Lacks
Central Bank of India =Rs 75000
Inference:- It is found that this is the added feature for J and K Bank, with minimum income of Rs 75000 annually most of the people could go for the scheme.
(9) Added information about the other banks.

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(a) Oriental Bank of commerce. 1. OBC also provides finance to second hand cars under True Value Scheme of Maruti Udyog Limited. 2. It charges interest rate of PLR +2.5%. 3. The repayment period is 5 years. 4. Maximum finance for second hand cars under True Value Scheme is 6 Lacks. 5. Margin money required is 25%. (b) In addition UCO and Canara Bank also provided finance for second hand cars.
(10) Ashok Leyland Finance Company:35
In addition to these banks, private corporate have also entered into this segment of car financing in the valley. It is Ashok Leyland which has been a major presence in Indias commercial vehicle industry for 5 decades has also entered into the line. In addition to providing finance to their vehicles they have also started providing finance to cars. The scheme goes as under:1. Eligibility: Employees of government / semi government undertakings, individuals, limited companies, firms etc. 2. Security: Hypothecation of the vehicle, no requirement of third party guarantee. 3. Rate of Interest: It levies a constant flat rate of 5.07% 4. Margin Money: The margin money required for availing loan is 20% of the cost of the vehicle. 5. Repayment: The repayment time for the loan is 3 years in equal monthly installments. Special Features of the Scheme: Instant Finance No hidden charges. No guarantor required.
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No service charges. Analysis of the J and K bank car loan Scheme (1)Awareness about the car loan scheme among the respondents of J and K Bank.
Unaware 22%
Aware 78%
Total No. of Respondents =300 No. of aware respondents=234 No. of unaware respondents=66 Concept:- Graph representing the awareness among the respondents about the scheme. Analysis:- The above graph shows 78% respondents know about the scheme while as 22% doesnt have clear idea about the same. Inference:- This suggests that very few doesnt have the clear cut vision about the scheme though they are familiar by name Finance or Loan only, which creates wrong impression about the scheme. A genuine effort from the Bank side could convert this percentage into future customers.
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Monthly income of the respondents:
Analysis:- It is evident from the graph that the monthly income of the respondents is as:
Rs5000---Rs 10000 =23% Rs10000---Rs 15000 =32% Rs15000 and above =45%
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(2) Percentage of customers who have availed the car already through this scheme.
Analysis:- It is analyzed that 33.33% respondents who already own a car have adopted the scheme of the bank while the 66.66% havent got the car through this scheme. Inference:- It is inferred that promotional strategies need to be adopted to reverse the trend and increase the awareness level, as is used by the competitors. Proper awareness campaign will clear the doubts from the minds regarding the scheme.
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(4) Reasons for the non-adopting of the car loan scheme.

LAD:=Lack of advertisement LAT=Lack of attractiveness IBP= Indifference of banking people AOB= All of above
Analysis:- From the graph it is clear that the reasons for not adopting the car loan scheme are:
Lack of advertisement Lack of attractiveness compared to competitors Indifference of banking people All of above =25% =38% =4.0% =33%
Inference:- It is inferred that lack of advertisement and lack of the scheme as compared to State Bank of India are the key reasons for the non-adoption of the same by the customers. Therefore, it is essential that advertisement and attractiveness must be done in such a way to counter the competitors and made more lively so that more and more potential customers could relish the scheme.
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(5) Awareness about the scheme of other banks (Particularly State Bank of India).
Unaware. 17%
Aware. 83%
Analysis:- The above pie chart shows that 83% of people are aware about the schemes of other banks while 17% are unaware about the same.
Inference:- When the awareness level of J and K bank is compared with that of the other banks it is found to be 78% which is less. So efforts must be made by the J and K bank to make more people aware about their schemes so that the percentage will be higher than the current one.
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(6) Sources of knowledge about awareness of schemes of other banks.

45 40 35 30 25 20 15 10 5 0
42
27
13
Print Media
Elect. Media
Bank Branches
Analysis:- From the graph the main source of knowledge about the awareness of other banks is: Print Media =42% Electronic Media =13% Bank Branches =27% Inference:- It is inferred that the print media is considered to be the strongest tool in bringing awareness to the people.
42
(7)Rating of J&K Bank car scheme with other banks
Analysis:- From the graph the rating of J and K bank with other banks is as: Good Satisfactory Can improve Extremely Bad =32% =38% =30% =0.0%
Inference:- It is observed that most of the respondents are happy with the scheme and the respondents who said that the scheme could be improved is because of the competitors, who offer the scheme at low rate of interest than ours and the repayment period is also long.
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(8) Reasons for not availing the car loan:
HRI MM SRP CF AO WBF WBWF
=High rate of interest =Margin Money =Short Repayment Period =Complicated Formalities =Already Owns a car =Will buy in near future =Will buy without finance.
Analysis:- From the graph it is clear that the reasons for not availing the car loan are as:
High rate of interest Margin Money Short Repayment Period Complicated Formalities Already owns a car Will buy in near future Will buy without finance. =65.30% =8.10% =5.10% =1.02% =9.10% =6.12% =5.10%
Inference:- The main reasons for not awaiting the car loan is the rate of interest, as 56% respondents say that rate of interest is high for not adopting the loan. This factor contributes towards the inadequate response. Margin money and short repayment period are also the reasons for the non adoption of scheme. Therefore, management should take such steps i.e. at least bring down the rate
44
of interest to the competitors or less so that more and more customers may avail the loan. (9)Opinion of customers who availed the car loan: (A) Formalities Involved:-
Analysis:- Formalities involved in availing the loan are: Complicated Easy =22% =78%
Inference:- It is evident from the chart the 78% of the people who have availed the loan fee the formalities involved are easy. For availing the loan, the other banks require IT return certificate but J&K bank doesnt require the same, as we know that most of the business people doesnt pay the taxes properly so surely that will prefer J&K bank.
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(B) Rate of Interest
Analysis:- The opinion of consumers about the rate of interest who availed consumers loans. Needs to be reduced Adequate =87% =13%
Inference:- As most of the people feel that the rate of the interest is high, as the competitors are offering the scheme at reduced rates. Therefore, efforts should be made by the bank to revise the interest rates so that more people may avail the loan and remain satisfied.
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(C) Margin Money
90 80 70 60 50 40 30 20 10 0
82
18
Adequate
Need to Reduce
Analysis:- The opinion of consumers about the margin money who availed loan is Needs to be reduced Adequate =18% =82%
Inference:- It is evident that majority of the people feel that margin money required for loan is adequate. In order to attract more customers the margin money should be reduced.
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(10) Total number of respondents who availed the car loan scheme under study.
Analysis:- It is found that 99% of respondents did not availed the scheme while 1% of respondents received the car under the scheme. Inference:- It is inferred that the main reason for not applying for the car under the scheme is high rate of interest as compared to the competitors. The scheme of State bank of India had made the space in peoples mind particularly Rs 2599.
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(11)Total number of respondents who really got interested in the scheme and availed the scheme.
Analysis:- It is fond that 83% did not availed the scheme and 17% got the benefit of the scheme.
Inference:- As evident some respondents were not interested in the scheme at all while the others required time to settle at the decision of the kind of the car to buy.
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CHAPTER-VII
Limitations
50
Limitations of the study Time factor was the major limitation.
The findings of the report have been made in the Kashmir valley. Care should be taken in generalizing the report for other places.
The bias of the respondents may have introduced errors in the survey findings.
51
CHAPTER-VIII
Conclusion
52
Conclusion Even though J&K bank enjoys a large market share and customer loyalty but still it is not able to tap the potential customers because of the certain loopholes in the scheme. With the result customers are shifting to State Bank of India particularly for car loans as their scheme is more attractive and their severe advertising has caused the results. The rate of interest, margin money of J&K bank is quite high in comparison with competitors. The repayment period and maximum finance offered is also less with the result people wanting less amount in installments and those who want to buy luxury sedans goes out of reach of bank. As evident the formalities required are less and the net annual income for availing loan is only Rs 75000, which is healthy for the bank. The J&K bank should also start financing second hand cars in order to laurel more customers. In addition it should find tools to counter Rs 2599 of State Bank of India which is taking the toll in the valley and has kept the space of the mind of the potential customers busy.
53
CHAPTER-IX
Recommendations and suggestions
54
Recommendations and suggestions From the fore going process, it is important for the bank to establish a system for the continuous creation of high customer satisfaction. The following measures are recommended to create growing customer base:1. First of all the bank should over haul the scheme to make it more competitive than the other banks. [As we already know the Rs 2599 has already made the impact in the minds of he potential customers]. 2. The bank has to definitely reduce the rate of interest, decrease the margin money and increase the time for the repayment period. 3. They should not put any ceiling on the maximum finance as is done by the Canara Bank so that people can easily avail the loan for luxury sedans. 4. The bank should also provide the loan for the second hand cars in order to create strong customers base with hand in hand to Marutis Authorized Dealers under True Value Scheme which operates mostly outside state.
55
5. Print media adverting should be done effectively so as to move the customers to higher levels in the decision process for using the finance scheme.
6.
The bank needs to go for aggressive marketing of its products and requires increasing the awareness level among the customers.
7. Definitely personal selling helps in increasing the sales and clears the confusion about the scheme among the customers. So bank should keep a separate force for telling the schemes and policies of the same. It will definitely help the bank. 8. Employees of the bank must be trained to treat the customers more courteously and to be more responsive towards their needs and expectations. As the satisfied customers will bring in more customers.
56
CHAPTER-X
Bibliography
57
Bibliography
1. Marketing Management by Philip Kotler. 2. Marketing Management by Rajan Saxena. 3. Marketing Research by G.C Beri. 4. Annual Reports of J&K Bank Ltd. 5. Yearly Jounals of J&K Bank Ltd. 6. Magazines such as Business India, Trust etc. 7. Websites of J&K Bank
www.jkbank.net www.jkbank.org
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Questionnaire 1. Name_____________________________________________
2. Age Group: (a)20-30 years____________ (b)30-40 years____________ (c)40-50 years____________ (d)Above 50 years__________
3. Income Bracket: (a)5000-10000_________ (b)10000-50000________ (c)15000-20000________ (d)Above 20000________
4. Do you own a car: (a)Yes___________ (b)No___________
5. If yes, did you get the car through finance: (a)Yes___________ (b)No___________
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6. If you do not own a car, are you interested to buy one: (a)Yes___________ (b)No___________
7. Will you go through finance: (a)Yes___________ (b)No___________
8. Through which bank you will opt for loan give preference: (a) _________________ (b) _________________ (c) _________________ (d) _________________
9. Give reasons for preference (a):______________________________________
10. Did you know about the J&K bank car loan scheme: (a)Yes___________ (b)No___________
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11. Through which media, you came to know about the scheme: (a)Print Media___________ (b)Electronic Media ___________ (c)Bank Branches________
12. Are you aware about the scheme of other banks: (a)Yes___________ (b)No___________ 13. Rating of J&K bank car loan scheme with other banks: (a)Good___________ (b)Satisfactory___________ (c)Can improve___________ (d) Extremely bad___________ 14. Reasons for not availing the car loan: (a)High rate of interest________ (b)Margin money_________ (c)Short repayment period_______ (d)Complicated formalities________ (e) Already owns a car___________ (f) Will buy in future_____________
61

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A SUMMER TRAINING REPORT ON

CUSTOMER SATISFACTION TOWARDS J&K BANK WITH REFERECE TO CAR LOANS

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

St. Soldier Management and Technical Institute, Basti Mithu, Jallandhar

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

(ZAHID HUSSAIN SOFI)

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

DECLARATION BY THE STUDENT

(ZAHID HUSSAIN SOFI)

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

Ms.Bindu Verma H.O.D.

Dr. Amarnath Principal

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

Objectives of the Study

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

Analysis & Interpretation

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

Comparative analysis of the various banks in Kashmir valley

Name of the Bank

State Bank of India

Up to 3 Years Above 3 to 5 Years

Punjab National Bank

Up to 3 Years Above 3 to 5 Years

Oriental Bank of Commerce

Up to 3 Years Above 3 to 5 Years

Central Bank of India UCO Bank Canara Bank

Fixed Rate Fixed Rate Fixed Rate

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

(2) Margin Money required for availing the scheme

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

(3)Repayment period of the schemes for different banks:

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

Analysis:- Under security, all the banks obey stated features.

(5)Quantum of maximum finance offered by different banks

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

(6)Eligibility required for availing loan from different banks

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

Proprietorship concerns Firms Limited Companies Recognized Colleges. schools /

All banks obey these criterias for the sanction of loan.

Having regular and known sources of income

(7)Prerequisite for formalities.

3. Income Bracket: (a)5000-10000_ (b)10000-50000 (c)15000-20000 (d)Above 20000

4. Do you own a car: (a)Yes_ (b)No_

7. Will you go through finance: (a)Yes_ (b)No_