Download - Raja Waseem
-
8/4/2019 Raja Waseem
1/61
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 OFMr. SYEED ATHAR
&
SHEIK ALTAF AHMAD
ACADEMIC SESSION2008-2010
St. Soldier Management and Technical Institute,
Basti Mithu, Jallandhar
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
1
-
8/4/2019 Raja Waseem
2/61
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)
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
2
-
8/4/2019 Raja Waseem
3/61
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)
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
3
-
8/4/2019 Raja Waseem
4/61
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 Dr. Amarnath
H.O.D. Principal
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
4
-
8/4/2019 Raja Waseem
5/61
Contents
S. No. Title of the Chapter Page No.
I Executive Summery 6
II Theoretical Background 9
III Company Profile 12
IV Objectives of the Study 21
V Research Design 23
VI Analysis & Interpretation 26
VII Limitations 50
VIII Conclusion 52
IX Recommendations and Suggestions 54
X New Plans and Schemes 57
XI Bibliography 74
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
5
-
8/4/2019 Raja Waseem
6/61
CHAPTER-I
Executive Summary
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
6
-
8/4/2019 Raja Waseem
7/61
Executive Summary
Objectives of the study1. 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 resultpeople 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
7
-
8/4/2019 Raja Waseem
8/61
Recommendations
From the fore going process, it is important for the bank toestablish 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, decreasethe 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 tomove 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
8
-
8/4/2019 Raja Waseem
9/61
CHAPTER-II
Theoretical Background
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
9
-
8/4/2019 Raja Waseem
10/61
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 tophilosophy.
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, politicalclout, persistence, public relation prestige etc.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
10
-
8/4/2019 Raja Waseem
11/61
The Promotion Mix
Firms select a mix of promotional tools to effectivelycommunicate 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 toknow 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 twokey tools required to succeed in the market today.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
11
-
8/4/2019 Raja Waseem
12/61
-
8/4/2019 Raja Waseem
13/61
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 afinancial 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. andcollection 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
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
13
-
8/4/2019 Raja Waseem
14/61
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 opportunitiesin 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 powerfulset 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 lastfew 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
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
14
-
8/4/2019 Raja Waseem
15/61
Ranked as No.2 on profitability front_ Business Standard
Survey
Jamnalal Bajaj Uchit Vyavahar Puraskar2002- Council forFair 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 4 th April
2003.
Ranked 87th among Indias Top 500 Companies by Worldsrenowned 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
15
-
8/4/2019 Raja Waseem
16/61
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 ifIndia 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:
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
16
-
8/4/2019 Raja Waseem
17/61
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 Managementcadre, 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,
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
17
-
8/4/2019 Raja Waseem
18/61
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. TheBranch 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
18
-
8/4/2019 Raja Waseem
19/61
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
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
19
-
8/4/2019 Raja Waseem
20/61
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 year1971 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
20
-
8/4/2019 Raja Waseem
21/61
CHAPTER-IV
Objectives of the Study
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
21
-
8/4/2019 Raja Waseem
22/61
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
22
-
8/4/2019 Raja Waseem
23/61
CHAPTER-V
Research Design
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
23
-
8/4/2019 Raja Waseem
24/61
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 loanscheme 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
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
24
-
8/4/2019 Raja Waseem
25/61
directly. Information about the company, its product/ services,
features and market share were obtained from the bank andform 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
25
-
8/4/2019 Raja Waseem
26/61
Chapter-VI
Analysis & Interpretation
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
26
-
8/4/2019 Raja Waseem
27/61
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
27
-
8/4/2019 Raja Waseem
28/61
(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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
28
-
8/4/2019 Raja Waseem
29/61
(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 =5years
UCO Bank =5yearsCanara Bank =5years
Oriental Bank of Commerce =7years
Central Bank of India =7years
Punjab National Bank =5years
State 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
29
-
8/4/2019 Raja Waseem
30/61
(4) Security required by the various banks
S.NO SECURITY BANKS
1. Hypothecation
All banks obey these
criterias.
2. Third Party guarantee
3. In addition to above 2Points.
One can keep liquid
security FDR/LIC/ Bank
approved shares in demat
form etc.
Analysis:- Under security, all the banks obey stated features.
(5)Quantum of maximum finance offered by different banks
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
30
-
8/4/2019 Raja Waseem
31/61
Analysis:- From the graph it is observed that the maximum finance
offered by various banks is as:
J&K Bank =5Lacks
UCO Bank =7.5 Lacks
Canara Bank =No ceiling on maximum amount
Central 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.
(6)Eligibility required for availing loan from different banks
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
31
-
8/4/2019 Raja Waseem
32/61
S.No ELIGIBILITY BANKS
1. Employees of
Government / semi
Government undertaking
All banks obey these
criterias 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.
(7)Prerequisite for formalities.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
32
-
8/4/2019 Raja Waseem
33/61
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 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
33
-
8/4/2019 Raja Waseem
34/61
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 LacksCentral 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
34
-
8/4/2019 Raja Waseem
35/61
(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:-
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
35
-
8/4/2019 Raja Waseem
36/61
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 vehicleindustry 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
36
-
8/4/2019 Raja Waseem
37/61
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 =300
No. 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 aboutthe 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
37
Aware
78%
Unaware
22%
-
8/4/2019 Raja Waseem
38/61
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%
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
38
-
8/4/2019 Raja Waseem
39/61
(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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
39
-
8/4/2019 Raja Waseem
40/61
(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%
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
40
LAD:=Lack of advertisement
LAT=Lack of attractiveness
IBP= Indifference of banking people
AOB= All of above
-
8/4/2019 Raja Waseem
41/61
(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.
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
41
Aware. 83%
Unaware. 17%
-
8/4/2019 Raja Waseem
42/61
(6) Sources of knowledge about awareness of schemes of other
banks.
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
42
45
40
35
30
25
20
15
10
5
0
42
13
27
Print Media Elect. Media Bank Branches
-
8/4/2019 Raja Waseem
43/61
(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%
Extremely Bad =0.0%
Inference:- It is observed that most of the respondents are happywith 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
43
-
8/4/2019 Raja Waseem
44/61
(8) Reasons for not availing the car loan:
HRI =High rate of interest
MM =Margin MoneySRP =Short Repayment Period
CF =Complicated Formalities
AO =Already Owns a car
WBF =Will buy in near future
WBWF =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%
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
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
44
-
8/4/2019 Raja Waseem
45/61
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%
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
45
-
8/4/2019 Raja Waseem
46/61
(B) Rate of Interest
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
46
-
8/4/2019 Raja Waseem
47/61
(C) Margin Money
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
47
90
80
70
60
50
40
30
20
10
0
82
Adequate Need to Reduce
18
-
8/4/2019 Raja Waseem
48/61
(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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
48
-
8/4/2019 Raja Waseem
49/61
(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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
49
-
8/4/2019 Raja Waseem
50/61
CHAPTER-VII
Limitations
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
50
-
8/4/2019 Raja Waseem
51/61
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
51
-
8/4/2019 Raja Waseem
52/61
CHAPTER-VIII
Conclusion
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
52
-
8/4/2019 Raja Waseem
53/61
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
53
-
8/4/2019 Raja Waseem
54/61
CHAPTER-IX
Recommendations and suggestions
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
54
-
8/4/2019 Raja Waseem
55/61
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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
55
-
8/4/2019 Raja Waseem
56/61
5. Print media adverting should be done effectively so as to
move the customers to higher levels in the decision processfor 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.
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
56
-
8/4/2019 Raja Waseem
57/61
CHAPTER-X
Bibliography
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
57
-
8/4/2019 Raja Waseem
58/61
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
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
58
http://www.jkbank.net/http://www.jkbank.org/http://www.jkbank.net/http://www.jkbank.org/ -
8/4/2019 Raja Waseem
59/61
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___________
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
59
-
8/4/2019 Raja Waseem
60/61
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___________
ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE
60
-
8/4/2019 Raja Waseem
61/61
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