customer satisfaction towards j&k bank with special reference to car loans

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A PROJECT REPORT ON “CUSTOMER SATISFACTION TOWARDS J&K BANK WITH REFERENCE 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: Sheikh Sajad Kousar M.B.A 4 th sem. Roll no: 7045224137 1

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Page 1: Customer Satisfaction Towards j&k Bank With Special Reference to Car Loans

APROJECT REPORT

ON“CUSTOMER SATISFACTION TOWARDS J&K

BANK WITH REFERENCE 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:Sheikh Sajad Kousar

M.B.A 4th sem. Roll no: 7045224137

ACADEMIC SESSION2007-2009

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

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CERTIFICATE -I

Certified that research project entitled “Customer Satisfaction towards J&K Bank with reference to car loans “is a bonafide research work conducted by me under the supervision and guidance of Miss Kanika Juneja submitted to Punjab Technical University Jalandhar in partial fulfillment for the degree of Masters of Business Administration. No part of the research project is submitted for any other degree.

Sheikh Sajad kousar

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CERTIFICATE-II

This is to certify that the research project entitled “Customer Satisfaction towards J&K Bank with reference to car loans” submitted by Sheikh Sajad kousar is a bonafide research work conducted under our guidance and supervision. No part of the research project has been submitted for evaluation in partial fulfillment of the requirement for the degree of MBA. The assistance and help received during the course of investigation has been duly acknowledged.

(Miss Kanika Juneja) (Dr.Amarnath)

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CERTIFICATE -III

This is to certify that the research project entitled “Customer Satisfaction towards J&K Bank with reference to car loans” submitted by Sheikh Sajad Kousar to Punjab Technical University Jalandhar in partial fulfillment of the requirement for the degree of Master of Business Administration has been approved by the students advisory committee after an oral examination of the same in collaboration with an external examiner.

(Dr. Amarnath) (Miss.Kanika Juneja) Advisor- I Advisor- II

External Examiner

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ACKNOWLEDGEMENT

I avail this opportunity to express my deep sense of gratitude

to Mr. P.Z. Lateef Ahmad the respected chief General Manager of

the Jammu and Kashmir Bank for providing me an opportunity to

work as a project report on the Jammu and Kashmir Bank Ltd.

I also take this opportunity to thank to my guide Mr. Layek

Ahmad Jan (Marketing Manager, Zonal Office, Srinagar) and Mr.

Manzoor Ahmad Wani (Marketing Manager, Zonal Office

Anantnag) 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: (Sheikh Sajad Kousar)

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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. Layek Ahmad Jan and Mr. Manzoor

Ahmad Wani 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: (Sheikh Sajad kousar)

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Contents

S. No. Title of the Chapter Page No.

I Executive Summery 8

II Theoretical Background 10

III Company Profile 13

IV Objectives of the Study 22

V Research Design 24

VI Analysis & Interpretation 27

VII Recommendations and Suggestions 52

VIII Research Methadology 55

IX Limitations 57

X Conclusion 59

XI Bibliography 61

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CHAPTER-I

EXECUTIVE SUMMARY

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Executive Summary

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.

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CHAPTER-II

THEORETICAL BACKGROUND

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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 P’s which effects the market situation e.g. marketing mix

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tools that the firm uses to pursue packing, pride, political clout, persistence, public relation prestige etc.

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

PreludeThe 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 Bank’s 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 350 branches have been either partly or fully computerized covering 90% of the total business of the bank. The bank has already installed around 130 ATMs at vital installations of the country. The ATMs are interconnected and thus provide the customer convenient and 24-hour banking facilities. Bank also

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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 anywhere banking facilities at more than 103 branches throughout the country. The bank has already make available the EFT and E-mail facilities at all of its computerized branches and also Tele-banking 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 won’t 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 India’s Fastest Growing Bank-Business Standard

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Excellence Award-Institute of Economic Studies. Ranked as No.1 on Safety Parameters-Business Standard

Survey 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 India’s Top 500 Companies by World’s 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 Hon’ble 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, former Hon’ble 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.

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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.

“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.

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MANAGEMENT: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:

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Inspections and Estates, I&V, RC & Sty., CC & I, Law, 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

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overcame its difficulties and kept growing. Following the extension of central laws to the State of Jammu and Kashmir, the bank was 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

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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 300 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

directly. Information about the company, its product/ services,

features and market share were obtained from the bank and

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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

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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. Name of the Bank Tenure Rate of Interest

1. J&K Bank Up to 3 Years 9.5%

Above 3 to 5 Years 11%

2. State Bank of India Up to 3 Years 9%

Above 3 to 5 Years 9.25%

3. Punjab National Bank Up to 3 Years 9.25%

Above 3 to 5 Years 9.5%

4. Oriental Bank of Commerce Up to 3 Years PLR-1.5%

Above 3 to 5 Years PLR-1%

5. Central Bank of India Fixed Rate PLR+2%

6. UCO Bank Fixed Rate 11%

7. Canara Bank Fixed Rate 11.5%

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 =5yearsUCO Bank =5yearsCanara Bank =5yearsOriental Bank of Commerce =7yearsCentral Bank of India =7yearsPunjab National Bank =5yearsState Bank of India =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 SECURITY BANKS

1. Hypothecation

All banks obey these criteria’s.

2. Third Party guarantee

3. In addition to above 2 Points.

One can keep liquid security FDR/LIC/ Bank approved shares in demat form etc.

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

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(5)Quantum of maximum finance offered by different banks

Analysis:- From the graph it is observed that the maximum finance offered by various banks is as:

J&K Bank =5LacksUCO Bank =7.5 LacksCanara Bank =No ceiling on maximum amountCentral Bank of India =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.

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(6)Eligibility required for availing loan from different banks

S.No ELIGIBILITY BANKS

1. Employees of Government / semi Government undertaking

All banks obey these criteria’s for the sanction of loan.

2. Autonomous bodies

3. Public sector undertakings

4. Individuals

5. Proprietorship concerns

6. Firms

7. Limited Companies

8. Recognized schools / Colleges.

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.

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(7)Prerequisite for formalities.

S. No. FORMALITIES BANKS

1. Income tax return 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 return certificate.

J and K Bank

3. Bank account statement for previous months (Current / savings)

All banks require the statement of accounts for the sanction of loan

Analysis:- From above it is evident that only J and K Bank doesn’t

require IT certificate which is plus point for the bank. Because of

this, it is able to grasp more customers under its cover.

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(8) Net annual income for availing loan.

Analysis:- From the graph the minimum gross salary / income for

availing loan is:

J&K Bank =Rs 75000

UCO Bank =Rs 1.2 Lacks

Canara Bank =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.

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(9) Added information about the other banks.

(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.

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(10) Ashok Leyland Finance Company:-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 India’s 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:

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Instant Finance

No hidden charges.

No guarantor required.

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.

Total No. of Respondents =300No. of aware respondents=234No. 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% doesn’t have clear idea about the same.

Inference:- This suggests that very few doesn’t have the clear cut

vision about the scheme though they are familiar by name

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Aware78%

Unaware22%

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“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.

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%

haven’t got the car through this scheme.

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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.

(4) Reasons for the non-adopting of the car loan scheme.

Analysis:- From the graph it is clear that the reasons for not adopting the car loan scheme are:

Lack of advertisement =25%Lack of attractiveness compared to competitors =38%Indifference of banking people =4.0%All of above =33%

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LAD:=Lack of advertisementLAT=Lack of attractivenessIBP= Indifference of banking peopleAOB= All of above

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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.

(5) Awareness about the scheme of other banks (Particularly State Bank of India).

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.

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Aware. 83%

Unaware. 17%

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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.

(6) Sources of knowledge about awareness of schemes of other banks.

43

45

40

35

30

25

20

15

10

5

0

42

13

27

Print Media Elect. Media Bank Branches

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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.

(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 =32%Satisfactory =38%Can improve =30%

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Extremely Bad =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.

(8) Reasons for not availing the car loan:

HRI =High rate of interestMM =Margin MoneySRP =Short Repayment PeriodCF =Complicated FormalitiesAO =Already Owns a carWBF =Will buy in near futureWBWF =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 =65.30%Margin Money =8.10%Short Repayment Period =5.10%Complicated Formalities =1.02%Already owns a car =9.10%Will buy in near future =6.12%Will buy without finance. =5.10%

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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

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 =22%Easy =78%

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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 doesn’t require the same, as we know that most of the

business people doesn’t pay the taxes properly so surely that will

prefer J&K bank.

(B) Rate of Interest

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Analysis:- The opinion of consumers about the rate of interest who

availed consumers loans.

Needs to be reduced =87%

Adequate =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.

(C) Margin Money

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90

80

70

60

50

40

30

20

10

0

82

Adequate Need to Reduce

18

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Analysis:- The opinion of consumers about the margin money who

availed loan is

Needs to be reduced =18%

Adequate =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.

(10) Total number of respondents who availed the car loan scheme under study.

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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 people’s mind particularly Rs 2599.

(11)Total number of respondents who really got interested in the scheme and availed the scheme.

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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

RECOMMENDATIONS AND SUGGESTIONS

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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 Maruti’s Authorized Dealers under “True Value

Scheme” which operates mostly outside state.

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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.

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CHAPTER-VIII

RESEARCH METHADOLOGY

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The report in hands relate to the Jammu and Kashmir bank at Srinagar.

Under the study all the data required for the purpose of the study has been collected by primary as well as secondary data.

PRIMARY DATA:

Face to face

SECONDARY DATA:

Management books Websites Annual reports

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CHAPTER-IX

LIMITATIONS

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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.

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CHAPTER-X

CONCLUSION

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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.

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CHAPTER-XI

BIBLIOGRAPHY

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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 Journals 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___________

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) _________________

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9. Give reasons for preference (a):

___________________________________________________

10. Did you know about the J&K bank car loan scheme?

(a) Yes___________ (b) No___________

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_____________

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