Arif Complete

LOVELY PROFESSIONAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
Report on Summer Training

Customer satisfaction based on
the comparative analysis of loan
Procedures followed by different banks.
Submitted to Lovely Professional University
In partial fulfillment of the

Requirements for the award of Degree of
Master of Business Administration
Submitted by:
Arif lateef Gilkar.
10800545
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD
PHAGWARA
PUNJAB
1|Page
ACKNOWLEDGEMENT
I hereby take an opportunity to express my profound gratitude of all those who
have helped and encouraged me towards the successful completion of the summer
training report. It has been a great experience working with HDFC Bank. Working
under the supervision of Ms. Nancy (Asstt. Professor), Mr. Hilal Ahmad, Mr. Rouf
Ahmad and Ms. Huma Dar was a great opportunity for me to learn something. I am
highly thankful for their support and kind attitude which helped me a lot and made my
project a success.
Above all my family members have always been my biggest supporters. In spite of
my serious efforts to complete this project if I have committed any error it should be
looked upon with sympathy.
Arif Lateef Gilkar
10800545
2|Page
Table of Contents: -
Page No.
Executive Summary
06-09
Certificate
10
Chapter 1
11
1.1Introduction to loans, and Advances
12-14
1.2Background of the study.
15-16
1.3Objectives of the study
17
1.4Scope of the study
17-18
1.5Limitations of the study.
18-19
1.6Researchrch Methodology
19-24
Chapter 2( Banking Profiles)
25
2.0HDFC Bank
26-32
2.1J&K Bank
33-36
2.2SBI
37-38
2.3PNB
39
Chapter 3 (Review of Literature)
40
Review of Literature Contd
40-46
Introduction to J&K
47-51
Chapter 4 (Agriculture and car loan

procedures)
4.0.0HDFC Agriculture loan
52
4.0.1Features
53
4.0.2Eligibility
53
4.0.3Documentation.
54
4.1.0HDFC Car loans
55
4.1.1Eligibility for salaried individuals.
55
4.1.2Documentation.
55
4.1.3Eligibility for self employed
55
4.1.4Documentation
55-56
4.1.5HDFC Car loans for used cars
56
4.1.6Eligibility for salaried individuals
56
4.1.7Documentation.
56
4.1.8Eligibility for self employed
56
4.1.9Documentation.
56-57
4.2.0SBI Agriculture loans
58
3|Page
53
4.2.1Eligibility
58
4.2.2Documentation.
58
4.2.3Interest Rate
58
4.2.4SBI car loans
59
4.2.5Documentation.
59
4.2.6Other benefits
59
4.3.0PNB Agriculture loans
60
4.3.1Purpose
60
4.3.2Eligibility
60
4.3.3Extension of loans
60
4.3.4Max. limit
60-61
4.3.4Repayment of loans
61
4.4.0PNB Car Loans
62
4.4.1Eligibility
62
4.4.2Amount of loan
62
4.4.3Margin
62
4.4.4Security
62-63
4.4.5Repayment
63
4.4.6Disbursement
63
4.5.0J&K bank
64
4.5.0J&K bank Agriculture loan
64
4.5.1Nature
64
4.5.2Objective
64
4.5.3Purpose
64
4.5.4Eligibility
64
4.5.5Quantum of finance
64
4.5.6Repayment
64
4.6.0J&K bank Car loans
65
4.6.0Car loans
65
4.6.1Eligibility
65
4.6.2Security
65
4.6.3Margin
65
4.6.4Repayment
65
4.6.5Max. loan amount
66
4.6.6J&K bank Used car Loan
66
4|Page
4.6.7Purpose
66
4.6.8Eligibility
66
4.6.9Margin
66
4.6.10Max. loan amount
67
4.6.11Repayment
67
4.6.12Security
67
4.6.13Prepayment
67
4.6.14Valuation of vehicle
67
Chapter 5 (Data analysis)
68-109
Chapter 6 (Findings, conclusion,

Suggestion for the banks)
6.0 Findings
110
6.1 Conclusion
113
6.2 Suggestions
114
6.2.1 for HDFC bank
114
6.2.2 for J&K bank
115
6.2.3 for PNB
116
6.2.4 for SBI
117
Chapter 7 (Bibliography)
118-120
Chapter 8 (Appendix)
121-125
111-112
EXECUTIVE SUMMARY
5|Page
MBA is stepping stone to management career. In order to develop a healthy

management and administration skill among potential managers, someone has rightly
said that partial training is far better than the classroom training. To achieve partial
and concrete results, it is necessary that theoretical knowledge must be supplemented
with an exposure of the real business environment.
Keeping this in view and to get an exposure, I have done my summer
training in the Agriculture loan and Car loan section of HDFC Bank. By doing this
training, I have learnt a lot which would certainly help me in the future. This project
covers the customer satisfaction associated with each bank and to what extent the
customers want a change in the goods and services offered by their banks. It also
highlights the various ways or reasons why the customers want to switch to new
banks and why they are satisfied with their preferred banks. I have devised a
questionnaire which brings into front the various attributes of the banking sector to
which the customers are attracted and reveals their know how about the banking
policies and procedures.
The name of my project is Customer satisfaction based on the Comparative
analysis of loan procedures followed by different banks in which I worked savvy.
I have decided to undertake a project which would be titled as customer satisfaction
based on the comparative analysis of loan procedures followed by different banks.
Under this title, I will study the customer satisfaction associated with each bank
(J&K, HDFC, PNB, & SBI). The basis of comparison will be different loan
procedures that the banks follow while providing loans to their customers.. These
procedures will reveal how and why a particular customer wants to be with a
particular bank and why not with others. In addition, it will furthermore throw some
light about the various shortcomings of these banks and at last there would some
recommendations from my side to the other banks by the help of which they can also
excel in this business and keep going in this long run.
The analysis will be done with the help of a questionnaire to know how satisfied a
customer is with his preferred bank and what change he wants to be in the banks
offering to him.
The study entitle Customer Satisfaction based on the Comparative analysis of loan
procedures followed by different banks has been undertaken with the objective to
6|Page
analyze and interpret the customers satisfaction level associated with each bank. The
analysis of the banks was undertaken with the help of the benefits associated with the
loan procedures that different banks follow which helped to determine why and how a
customer was satisfied with a particular bank. May be it is because of the services, cooperation of the staff or the banks ability to come up with various schemes which
were the need of hour for their customers and are important tools to attract them. The
importance of agriculture can be documented at least several thousand years back
when our nomadic ancestors began to settle and grow their own food, human society
was forever changed. Not only did villages, towns and cities begin to flourish, but so
did knowledge, the arts and the technological sciences.
In modern times, however, many in the urban world have forgotten this fundamental
connection. Insulated by the apparent abundance of food that has come from new
technologies for the growing, transportation and storage of food, humanity's
fundamental dependence on agriculture is often overlooked. The upcoming World
Food Summit serves as an important opportunity to reconsider the fundamental
importance of agriculture and the degree to which the global and independent nature
of human society today requires a re-thinking of our attitudes and approaches to world
food production and distribution. Since that resolution, progress toward food security
has been made. In many nations, agricultural production has increased, food
purchasing power has risen, and diets have improved. On the other hand the most
important factor that played an essential role in increasing production is credit facility
provided by different financial institutions.
Ultimately, it is only through enhanced processes of social development which
recognize the fundamental value of spiritual principles in education, community
organization, and the application of technology that true food security can be
established. It is necessarily a long term solution, but lays a firm foundation for a
sustainable and secure food supply for all. India is an agricultural country. The Indian
economy
is
basically
agrarian.
In
spite
of
economic
development
and
industrialization, agriculture is the backbone of the Indian economy. As Mahatma

Gandhi said, "India lives in villages and agriculture is the soul of Indian economy".
7|Page
Nearly two-thirds of its population depends directly on agriculture for its livelihood.
Agriculture is the main stay of India's economy. It contributes about 26 percent of the
gross domestic product. Agriculture meets food requirements of the people and
produces several raw materials for industries.
From agricultural point of view, India is a unique country. It has vast expanse of level
land, rich soils, wild climatic variations suited for various types of crops, ample
sunshine and a long growing season. The net sown area in India today is about 143
million hectares. India has the highest percentage of land under cultivation in the
world. In spite of the fact that large areas in India, after independence, have been
brought under irrigation, only one-third of the cropped area is actually irrigated. The
productivity of agriculture is very low. Farming depends mainly upon monsoon rain.
Most of the production comprises food crops. About one-third of the land holdings are
small, less than one hectare in size. Farmers own their own small prices of land and
grow crops primarily for consumption. Even storage facilities for crops are
inadequate. Now use of pesticides and fertilizers has increased and large areas have
been brought under high yielding variety of seeds. This led to green revolution in
several parts of India. This has helped in increasing yields per hectare as well as total
production of different crops.
Agriculture is the backbone of our Indian economy. Agricultural development is a
precondition of our national prosperity. It is the main source of earning livelihood of
the people. Nearly two-thirds of its population depends directly on agriculture.
Agriculture provides direct employment to 70 percent of working people in the
country. It is the main stay of India's economy. Apart from those who are directly
involved in the agrarian sector, a large number of the population is also engaged in
agro-based activities. Agriculture meets the foods requirements of large population of
India. It ensures food security for the country. Substantial increase in the production
of food grain like-rice, wheat etc. and non-food grains like-tea, coffee, spices, fruits
and vegetables, sugar, cotton etc. has made India self-sufficient. Agriculture also
contributes to the national income of our country. It accounts for 26 percent of the
gross domestic product. The growth of most of the industries depends on agriculture.
8|Page
It produces several materials for industries. It forms the basis of many industries of
India like-cotton, textile, jute, sugar industries etc by providing cotton, sugarcane,
oilseeds etc. People engaged in agriculture also buy the products of industries liketractors, pesticides, fertilizers, pump-set etc. Agriculture contributes in foreign
exchange of our country. India exports agricultural products like tea, coffee, sugar,
tobacco, spices etc and earns foreign currency. Exports from the agricultural sector
have helped India in earning valuable foreign exchange and thereby boosting
economic development. From above mentioned facts it is very clear that in spite of
industrial development still agriculture is the backbone of the Indian economy.
Besides having an adequate food to eat, having your own transportation device would
be nice thing to happen nowadays since you can freely go anywhere you want as
much as you like. It is true that public transportations have their own benefits such as
cheaper and available in many places. However, privacy and safety is something
which able to make you reconsider and wanted to your own transportation device
instead. Among vehicles which become peoples favorite as their private
transportation device, car is considered as the most popular one. However, it is
important to remember that car is not cheap thus; the value can be considered as the
second most expensive possession after your food and house. It can be help that even
though it is not cheap, many people wanted to have it for their own since they are very
convenience and help you with many things. For people with big family or having
many family members, car can help them to move from one destination to another at
once without leaving anyone behind, for this the purchasing car on finance is one of
the alternate solution for this.
9|Page
CERTIFICATE
This is certified that the summer training report entitled Customer Satisfaction based
on the comparative analysis of loan procedures followed by different banks is
submitted for the degree of Masters of Business Administration under Lovely
Professional University, Jalandhar is a bonafide research work carried out by Arif
Lateef Gilkar, bearing Registration No:- 10800545 under my
guidance and
supervision. No part of this report has been submitted for evaluation in partial
fulfillment of the requirements for the degree of Masters in Business Administration.
The assistance and help received during the course of investigation has been fully
acknowledged.
Ms. Nancy
(Asstt Professor.)
10 | P a g e
CHAPTER-1
Introduction
11 | P a g e
1.1 Introduction
Loans and advances is the most important unit of any banking organization. Loan is a
type of debt. Like all debt instruments, a loan entails the redistribution of financial
assets over time. The borrower initially receives an amount of money from the lender,
which they pay back, usually but not always in regular installments, to the lender.
This service is generally provided at a cost, referred to as interest on the debt. A sum
of borrowed money (principal) that is generally repaid with interest. Loan-to-Value
Ratio, is the relationship between the amount of the mortgage loan and the appraised
value of the property expressed as a percentage.
Lock Lender's guarantee that the mortgage rate quoted will be good for a specific
number of days from day of application. Money Margin, the amount a lender adds to
the index on an adjustable rate mortgage to establish the adjusted interest rate.
Advance is a term that describes a secured loan made to a member. Advances are
offered at fixed or floating rates with specific maturities or with embedded options for
early redemption. There are different types of loans offered by a bank. Different loans
fetch a different rate of interest and have different securities against them.
Some of the loans offered by the banks are: Consumer loans
Housing loans
Car loans
Education loan
Personal consumption laon
Loan against mortigage
Loan against fixed deposits/bond/shares
Mortgage loan for trade
Agriculture loan
12 | P a g e
A bank is a lawful organization, which accepts deposits that can be withdrawn on

demand. It also lends money to individuals and business houses that need it. Banks
also render many other useful services like collection of bills, payment of foreign
bills, safe-keeping of jewellery and other valuable items, certifying the creditworthiness of business, and so on. Banks accept deposits from the general public as
well as from the business community. Anyone who wants to save money for future
can deposit his savings in a bank. Businessmen have income from sales out of which
they have to make payment for expenses. They can keep their earnings from sales
safely deposited in banks to meet their expenses from time to time. On deposits,
banks give interest, which adds to the original amount of deposit. It is a great
incentive to the depositor. On the basis of deposits banks also grant loans and
advances to farmers, traders and businessmen for productive purposes. Thereby banks
contribute to the economic development of the country and well being of the people in
general. Banks also charge interest on loans. The rate of interest is generally higher
than the rate of interest allowed on deposits. Banks also charge fees for the various
other services, which they render to the business community and public in general.
Interest received on loans and fees charged for services which exceed the interest
allowed on deposits are the main sources of income for banks from which they meet
their administrative expenses. The activities carried on by banks are called banking
activity. Banking as an activity involves acceptance of deposits and lending or
investment of money. It facilitates business activities by providing money and certain
services that help in exchange of goods and services. Therefore, banking is an
important auxiliary to trade. It not only provides money for the production of goods
and services but also facilitates their exchange between the buyer and seller.
ROLE OF BANKING: i. It acts as an intermediary between people having surplus money and those
requiring money for various business activities.
ii. It facilitates business transactions through receipts and payments by cheques
instead of currency.
iii. It provides loans and advances to businessmen for short term and long-term
purposes.
13 | P a g e
iv. It also facilitates import export transactions.
v. It helps in national development by providing credit to farmers, small-scale

industries and self-employed people as well as to large business houses which
lead to balanced economic development in the country.
vi. It helps in raising the standard of living of people in general by providing
loans for purchase of consumer durable goods, houses, automobiles, etc.
The Indian banking can be broadly categorized into nationalized (government
owned), private banks and specialized banking institutions. The Reserve Bank of
India acts a centralized body monitoring any discrepancies and shortcoming in the
system. The need to become highly customer focused has forced the slow-moving
public sector banks to adopt a fast track approach. The Indian banking has finally
worked up to the competitive dynamics of the new Indian market and is addressing
the relevant issues to take on the multifarious challenges of globalization. Banks that
employ IT solutions are perceived to be futuristic and proactive players capable of
meeting the multifarious requirements of the large customers base. Private Banks
have been fast on the uptake and are re-orienting their strategies using the internet as a
medium The Internet has emerged as the new and challenging frontier of marketing
with the conventional physical world tenets being just as applicable like in any other
marketing medium. The Indian banking saw dramatic changes in the last decade or so
ever since the advent of liberalization and Indias integration with the world economy.
These economic reforms and the entry of private players saw nationalized banks
revamp their service and product portfolio to incorporate new, innovative customercentric schemes. Taking a leaf out of the private sector banks, the public sector banks
too went for major image changes (including corporate brand building exercises) and
customer friendly schemes. These customer friendly programs included revamping of
the product and service portfolio by introducing new product & service schemes (like
credit cards, hassle-free housing loan schemes, educational loans and flexi-deposit
schemes) integration of the branch network by using advance networking technology
and customer personalization programs (through ATMs and anytime banking etc.). To
14 | P a g e
cater to the increasing customer demands and the surge in business volumes, many
public sector banks have ploughed back funds to invest heavily in technology
upgrades and systems like LANs, WANs, VSATs etc.
1.2 Background of the study.

No one can say for certain where the history of loans began. It is likely that people
have been practicing lending and borrowing for as long as there has been a concept of
ownership. The history of loans can be documented at least several thousand years
back forms of lending were evident in ancient Greek and Roman times, and monetary
loans were even mentioned in the Christian bible. The modern history of loans started
much later than these ancient times, of course it is, however, important to realize that
lending started much earlier than many people would imagine and has its origin in
much older times. The early forms of loans were: a) Indentured loans
One of the early forms of lending that should be explored in the history of loans is the
indentured loan (also known as indentured servitude.) Initially practiced in the Middle
Ages and through the 19th century by landowners and the wealthy indentured
servitude allowed poor individuals to borrow the money needed for major expenses
such as travel and real estate.
Once the land owner or wealthy individual had secured a ship passage or piece of real
estate for an individual, that individual would then have to work off their debt over
the course of several years unfortunately, many a times the land owner was very
dishonest and would greatly inflate the debt or would continue to add provisions to
the debt long after it had been repaid. Indentured servants often had very few rights,
and were seen by some wealthy individuals as a way to maintain slave labor long after
slavery had been abolished.
b) Banking loans
15 | P a g e
Luckily, legitimate banks were developing even as indentured servitude was rampant.
Individuals known as moneylenders played an important part in the history of loans.
In fact, it's from the Italian moneylenders of the Middle Ages that we get both the
English words bank" and bankrupt" that we use today.
Italian moneylenders would set up benches in the local marketplace (with the word
for bench being banca" from which, we eventually derived the word bank"). The
moneylenders would charge interest on their loans at a rate that they set, and would
sometimes be quite successful and become very wealthy.
As an interesting side note to the history of loans, if the moneylenders were not
successful, though, they would break up their benches and pursue other venues. The
Latin expression for breaking up a bench in this way was banca rupta, which
eventually became the English word bankrupt" (which carries a much steeper
connotation than simply a broken bench).
Modern banking loans
Of course, the history of loans has progressed quite a bit since the days of the Middle
Ages moneylender. Interest rates are much more controlled, loan terms have a much
higher degree of fairness to them, and the banks of our era aren't out to simply get as
much money out of borrowers as they can.
The modern banks, finance companies, and online lenders that provide loans to the
public and private sectors provide a great service to the world economy, and are
regulated by both local and governmental policy so as to make sure that nothing
interferes with that service.
However, if not for some of the oppression and misdealing that was present
throughout the history of lending, then the fairness and opportunity that exists in
banking today might not be possible. Even the oppression that resulted from
indentured servitude in the past helped to establish modern banking by showing what
factors needed to be eliminated so as best to benefit both lender and borrower.
16 | P a g e
1.3 Objectives of the study

i. To study the process and formalities completed for acquiring the loan.
ii. To prove that which bank is leading in terms of customer satisfaction.
iii. To prove that the agricultural sector should be prime concern of the banks
in J&K.
iv. To find whether the agricultural loans offered by the banks are beneficial
to the people?
v. To know why customers are attracted to different banks?
vi. To know whether the customers are satisfied with the way the banks value
their land for mortgage.
vii. To know about the effective communication medium for creating banks
awareness in the people?
1.4 Scope of the study
To be competitive and successful in modern corporate world, constant capital flow is
essential. Whether to expand your business or to relocate your production unit to
some other place for cost effectiveness, you require finance. Its not always possible
to fund them through internal sources. A delay of a few days can cost you in millions.
To make your enterprise successful and to run your business strategically, a secured
business loan is an option worth trying for. Life can take an adverse turn at any
moment. We cant be certain about our future responsibilities and obligations. In an
hour of need, we look for various options to raise money. Many new ways have been
evolved to raise money, but as a human being, we tend to rely on the most favored
options. A secured loan provides easier and olden way to acquire loan.
17 | P a g e
One can easily plan his future investments and can easily fulfill his requirements and
needs of life without risk.
Loans like housing loans, car loans, educational have made people to fulfill their
needs at very ease.
Benefits to the lender
a) The lender of the loan gets the desired rate of interest on the amount he has
owed to the borrower.
b) The lender can plan his investments and can earn solid amount of returns on
the investment to be utilized in the future and can build a good reputation in
the market.
Benefits to the borrower
a) The advantage with loans is that you can design your repayment period as well
as monthly installments according to your financial capacity. A secured
business loan comes at a lower interest rate when compared with other
business loans. As these loans are taken against collateral, any default in
repayment can put your commercial property at risk.
b) Interest rates offered on secured business loan is variable and easily
affordable. Such opportunities are provided to entrepreneurs to encourage
them and ultimately enhance the economy of the region. By promoting
business or industries, local government can even eradicate unemployment
and improve overall standard of living.
1.5 Limitations
My research was limited because of the fact that the major source of data was from
the annual reports of the companies, which were subject to accounting policies and
practices followed by the company.
18 | P a g e
The major limitations are

1. Due to strict confidentiality policy of the company the advance department
provided only screened information.
2. Accuracy of the data provided cannot be guaranteed which does not clear idea
with regard to the actual functioning.
3. Due to busy schedule of advance manager, the companies financial statements
obtain secondary data.
4. The study was limited by shortage of time also.
5. The results are drawn from the peoples responses, so they are biased due to
many reasons.
6. The scope of the study is limited to Anantnag city. It is a current time period
study.
7. The cost is also a relevant limiting factor that has creted a sort of hindrance as
the banks were located far apart. This created problems in collecting data and
recording customer responses.
1.6 Research Methodology
Research may mean the first small step in an endeavor to understand better the change
occurring and at times forced upon us as individuals or as society. Every project work
is based on certain methodology, which is a way to systematically solve the problem
or attain its objectives. It is a very important guideline and lead to completion of any
project work through observation, data collection and data analysis.
Research Methodology comprises of defining & redefining problems, collecting,
organizing &evaluating data, making deductions &researching to conclusions.
Accordingly, the methodology used in the project is as follows: i.
Defining the objectives of the study
ii.
Framing of questionnaire keeping objectives in mind (considering

the objectives)
19 | P a g e
iii.
Feedback from the respondents
iv.
Analysis of feedback
v.
Conclusion, findings and suggestions.
Research as a process involves defining problems, hypothesis, formulation and

organization and evaluating data, deriving deductions, interferences and conclusion
after careful testing.
Purpose of the study
The main purpose of the study is to find out the customer satisfaction associated with
each bank based on the comparative analysis of the loan procedures followed by
different banks.
Objectives of general research
1. It extends, verifies or corrects knowledge.
2. It enables us to have a better understanding of our world.
3. It aids in purposive planning.
4. Research initiates, formulates, deflects and clarifies theory.
Objectives of my research
i. To study the process and formalities completed for acquiring the loan.
ii. To prove that which bank is leading in terms of customer satisfaction.
iii. To prove that the agricultural sector should be prime concern of the banks
in J&K.
iv. To find whether the agricultural loans offered by the banks are beneficial
to the people?
v. To know why customers are attracted to different banks?
vi. To know whether the customers are satisfied with the way the banks value
their land for mortgage.
vii. To know about the effective communication medium for creating banks
awareness in the people?
Hypothesis
20 | P a g e
Null Hypothesis: There is no necessity for analyzing the customer satisfaction

associated with different banks.
Alternative Hypothesis: There is immense necessity for analyzing the customer
satisfaction associated with different banks.
Research design
A research design is a framework or blueprint for conducting the research
project. It specifies the details of the procedures necessary for obtaining the
information needed to structure and/or solve research problem.
On the basis of fundamental objectives of the research we can classify research design
into two general types:
Exploratory research
Conclusive research
Exploratory research is one type of research design, which has its primary
objective the provision of insights into, and comprehension of, the problem situation
confronting the researcher.
Conclusive research is designed to assist the decision maker in
determining evaluating and selecting the best course of action to take in a given
situation.
Conclusive research can be further divided into two types:i.
Descriptive
ii.
Experimental
The research design used in this project is a descriptive design.

Descriptive study as the name implies is designed to describe something. The term
descriptive research refers to the type of research question, design, and data analysis
that will be applied to a given topic. It can involve collections of quantitative
information that can be tabulated along a continuum in numerical form. Descriptive
21 | P a g e
research involves gathering data that describe events and then organizes, tabulates,
depicts, and describes the data collection.
Exploratory research is often conducted because a problem has not been clearly
defined as yet, or its real scope is as yet unclear. It allows the researcher to familiarize
him/herself with the problem or concept to be studied, and perhaps generate
hypotheses (definition of hypothesis) to be tested. It is the initial research, before
more conclusive research is undertaken. Exploratory research helps determine the best
research design, data collection method and selection of subjects, and sometimes it
even concludes that the problem does not exist!
In my project I have used Exploratory as well as Descriptive Research to understand
the behavior of different types of customers which in turn provided me an opportunity
to know about their thinking pattern and thus made it easier for me to formulate the
above mentioned hypothesis so that my project could reach to a logical conclusion.
As mentioned above the Exploratory research was carried so as to come up with the
real problem which was to reveal the pattern by how the different types of people
select their desired banks and what are the characteristics that they observe in their
banks before going for them. This problem was solved by this exploratory research as
it made clear what the people expected from their banks and why they made the
selection of a particular bank.
Sampling Plan:
Sample Unit: Customers.
Sample Technique:
i.
Probability and Non Probability Sampling,
ii.
Convenience Sampling
I have used convenience sampling technique. Convenience sampling is used in

exploratory research where the researcher is interested in getting an inexpensive
approximation of the truth. As the name implies, the sample is selected because they
are convenient.
Sample Size: 320 (160 for agricultural loan and 160 for car loan)
Data Collection Instrument: Questionnaire
22 | P a g e
A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. Although they are
often designed for statistical analysis of the responses.
Methods of contact: Telephone, personal interview.
Methods of data collection

Data is of primarily of two kinds.
1. Primary data
2. Secondary data.
Primary data consists of original information for the specific purpose at hand. It is
first hand information for the direct users or respondents. The tools used to collect the
data may vary depending upon the nature of the problem. The primary data was
collected through Questionnaire, Interviews
Secondary data may be defined as data that has been collected earlier for some
purpose other than the purpose of the present study. Any data that is available prior to
the commencement of the research project is secondary data and it is called historic
data
USES OF SECONDARY DATA
It acts as a reference for the present study.
The secondary data can be a useful benchmark, which the findings of the study
can be tested.
At times it may be the only source of data.
SOURCES OF SECONDARY DATA
Published Sources
Unpublished sources
23 | P a g e
Data collection methods can be classified as follows

i. Observation
ii.
Interviewing
iii.
Experimentation
iv.
Simulation
v.
Projective techniques
vi.
Questionnaire
In this project three methods of collection were used. They are-------------1. Interviewing.
2. Published source of data in the form of books of accounts.
3. Questionnaire.
Statistical tools used
The main statistical tools used for the collection and analyses of data in this project
are:
Pie- chart.
Bar chart.
24 | P a g e
Chapter-2
BANK PROFILES
25 | P a g e
2.0 Housing Development Finance Corporation Limited (HDFC)

The Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of RBIs liberalization of the Indian Banking Industry.
HDFC Bank was incorporated in August 1994 and commenced operation as a
Commercial Bank in January 1995. Currently, HDFC Bank has a nation spread over
110 cities across the country and operates in three segments.
a) Wholesale banking,
b) Retail banking
c) Treasury services.
HDFC Bank Limited is a private sector bank in India engaged in retail banking,
wholesale banking and treasury operations. The retail banking division provides loans
against securities, agricultural loans, auto loans, personal loans, two-wheeler loans
and business banking loans to small businesses, bill payment services, credit cards,
debit cards, third-party distribution, investment advisory services, card and automated
teller machine (ATM) acquiring transactions and depositary services. Through its
wholesale banking operations, the Bank provides loans, deposit products,
documentary credits, guarantees, bullion trading and foreign exchange and derivative
products. It also provides cash management services, clearing and settlement services
for stock exchanges, tax and other collections for the government, custody services
for mutual funds and correspondent banking services. The treasury group manages its
balance sheet and provides foreign exchange and derivative products for its clients.
26 | P a g e
HDFC Bank Limited. The Group's principal activities are the provision of banking
and other financial services. The Group's Wholesale banking operations includes a
wide array of commercial, transactional and electronic banking products through
innovative product development and a well integrated approach to relationship
management to corporate and institutional clients. The Treasury services of the Group
consist of foreign exchange & derivatives, money markets & debt securities and
equities investments & advisory. The Retail banking services includes
ATMs, phone banking and net banking; and capital markets infrastructure
which provides transactional banking and payment services for capital market related
payments such as dividends, interests, etc. and strategic investments.
2.0.1 The challenge:

Efficiently Deploy Critical Applications to Branch offices. : -
The sheer size and
complexity of HDFC Banks operation made it difficult to deploy new businesscritical banking applications to hundreds of branches swiftly and efficiently.
Operating in an industry where speed, efficiency and customer responsiveness are key
performance metrics, delays in application deployment mean a loss of productivity,
and spiraling maintenance and support costs.
However, the existing IT challenges at HDFC Bank also entailed bringing a
standardized system across the enterprise that would enable us to achieve a broader
spectrum of operational and strategic benefits.
2.0.2 Promoter
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain a market leader in mortgages. Its outstanding loan portfolio covers well over a
million dwelling units. HDFC has developed significant expertise in retail mortgage
loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise, HDFC was
27 | P a g e
ideally
positioned
to
promote
bank
in
the
Indian
environment.
2.0.3 Business Focus: HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to build
sound customer franchises across distinct businesses so as to be the preferred provider
of banking services in the segments that the bank operates in and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is committed
to maintain the highest level of ethical standards, professional integrity and regulatory
compliance. HDFC Bank's business philosophy is based on four core values:
a) Operational Excellence
b) Customer Focus
c) Product Leadership
d) People.
Times Bank
Amalgamation
In a milestone transaction in the Indian banking industry, TimesBank Limited

(another new private sector bank promoted by Bennett, Coleman & Co./Times Group)
was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank. The amalgamation added significant value to HDFC Bank in
terms of increased branch network, expanded geographic reach, enhanced customer
base, skilled manpower and the opportunity to cross-sell and leverage alternative
delivery channels.
2.0.4 Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over
438 branches spread over
200 cities across the country. All
branches are linked on an online real-time basis. Customers in 90 locations are

also serviced through Phone Banking. The Bank's expansion plans take into
account the need to have a presence in all major industrial and commercial
centers where its corporate customers are located as well as the need to build a
28 | P a g e
strong retail customer base for both deposits and loan products. The Bank also
has a network of over
1069 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus The Bank's Board of
Directors is composed of eminent individuals with a wealth of experience in
public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board. Senior banking
professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on
recruiting and retaining the best talent in the industry,
2.0.5 Technology
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. The entire bank's branches have connectivity
which enables the bank to offer speedy funds transfer facilities to its customers.
Multi-branch access is also provided to retail customers through the branch network
and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally to build the infrastructure for a world-class bank.
In terms of software, the Corporate Banking business is supported by Flexcube, while
the Retail Banking business by Finware, both from i-flex Solutions Ltd.
The Bank has prioritized its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its market
position, expertise and technology to create a competitive advantage and build market
share.
2.0.6 Business Profile & Rating
Business Profile
HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the
29 | P a g e
retail side. The bank has three key business areas.
:-
a) Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing companies in the
Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these
corporate, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions which
combine cash management services with vendor and distributor finance for
facilitating superior supply chain management for its corporate customers. Based on
its superior product delivery / service levels and strong customer orientation, the Bank
has made significant inroads into the banking consortia of a number of leading Indian
corporate including multinationals, companies from the domestic business houses and
prime Public Sector companies. It is recognized as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.
b) Retail Banking Services: -The objective of the Retail Bank is to provide its target
market customers a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The products are
backed by world-class service and delivered to the customers through the growing
branch network, as well as through alternative delivery channels like ATMs,
PhoneBanking, NetBanking and MobileBanking.
The HDFC Bank preferred program for high net worth individuals, the HDFC Bank
Plus and the Investment Advisory Services programs have been designed keeping in
mind needs of customers who seek distinct financial solutions, information and advice
on various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans
for Two-wheelers. It is also a leading provider of Depository Services to retail
customers, offering customers the facility to hold their investments in electronic form.
c)Treasury Operations: - Within this business, the bank has three main product areas
- Foreign Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalisation of the financial markets in India,
30 | P a g e
corporates need more sophisticated risk management information, advice and product
structures. These and fine pricing on various treasury products are provided through
the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities.
Rating
HDFC Bank has its deposit programmes rated by two rating agencies - Credit
Analysis & Research Limited (CARE) and Fitch Ratings India Pvt. Ltd. The Bank's
Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,
which represents instruments considered to be "of the best quality, carrying negligible
investment risk". CARE has also rated the Bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)
has assigned the "tAAA (ind)" rating to the Bank's deposit programme, with the
outlook on the rating as "stable". This rating indicates "highest credit quality" where
"protection factors are very high". In each case referred to above, the ratings awarded
were the highest assigned by the rating agency for those instruments.
2.0.7 Corporate Governance Rating:The bank was one of the first four companies which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entitys current performance and an expectation on its "balanced
value creation and corporate governance practices" in future. The bank has been
assigned a CRISIL GVC Level 1' rating which indicates that the bank's capability
with respect to wealth creation for all its stakeholders while adopting sound corporate
governance practices is the highest. It is well-recognized fact that the quality of
financial management is a key ingredient in determining the success of an
organization. This is even more relevant in a service industry like banks. At HDFC
Bank, they work for ultimate identity and success of their bank will reside, as it
always has, in the exceptional quality of their people and their extraordinary effort.
31 | P a g e
The bank is only as strong as its infrastructure and its processes. At HDFC Bank, right
from inception, they have invested in a robust technology platform that is seamlessly
integrated with centralized and audited processes. This has enabled them to expand
rapidly and grow manifold while maintaining acceptable service standards. The
banks well-documented procedures, high levels of automation, intensive training of
personnel and ongoing audit review had enabled then to improve the reliability of
their operational processes. ISO 9002 certifications of their cash management, retail
centralized processing and custody and depository operations are indicative of their
achievements in this regard.
32 | P a g e
2.1 J&K Bank

J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialized bank in
the rest of the country. It is also the only private sector bank designated as RBIs agent for
banking business, and carries out the banking business of the Central Government, besides
collecting central taxes for CBDT. The Jammu & Kashmir Bank is today one of the fastest
growing banks in India with a network of more than 500 branches/offices spread across the
country offering world class banking products/services to its customers. Today, the Bank
has a status of value driven organization and is always working towards building trust with
Shareholders, Employees, Customers, Borrowers, Regulators and other diverse
Stakeholders, for which it has adopted a strategy directed to developing a sound foundation
of relationship and trust aimed at achieving excellence, which of course, comes from the
womb of good Corporate Governance. Good Governance is a source of competitive
advantage and a critical input for achieving excellence in all pursuits.
J&K Bank considers good Corporate Governance as the sine qua non of a good banking
system and has adopted a policy based on all the four pillars of good governance
transparency, disclosures, accountability and value, enabling it to practice trusteeship,
transparency, fairness and control, leading to stakeholders delight, enhanced shareholder
value and ethical corporate citizenship. It also ensures that bank is managed by an
independent and highly qualified Board following best globally accepted practices,
transparent disclosures and empowerment of shareholders, besides ensuring to meet
shareholders aspirations and societal expectations following the principles of management's
executive freedom to drive the bank forward without undue restraints but within the
framework of effective accountability.
The excellence achieved by the bank in its operations stemming from the roots of voluntary
good Governance has not gone unrecognized and Bank has recently bagged three very
prestigious awards for following fair business practices and commitment to social
obligations.
33 | P a g e
2.1.1 Company History
Entire banking in the state of Jammu and Kashmir was performed by traditional lenders till
1920 -30 and that too at exorbitant interest rates .At the same time some banks functioned
at a very limited scale, such as Punjab National Bank Limited, Grind lays Bank and
Imperial Bank of India (SBI).
The role of these banks was reduced to the acceptance of deposits, as they could not grant
loans and advances to the people of the state owing to the statutory limitations. Under this
scenario banks could not ameliorate the financial and social position of the people of the
state. To overcome this critical situation the then Maharaja of the state conceived an idea of
setting up of a state bank in the state. After a prolonged exercise and deliberations the
assignment for establishment of The Jammu and Kashmir Bank Limited was given to the
late Sir Sorabji N Pochkhanwala, the then Managing Director of the Central Bank of India.
Mr.Pochkhawala formulated a scheme on 24-09-1930, suggesting establishment of a semi
state Bank with participation in capital by state and the public under the control of state
Government. Thus, the bank was formally incorporated on the 1st of October 1938 and
commenced business from 4th of July 1939 at its Registered Office Residency Road
Srinagar, Kashmir.
The Jammu & Kashmir Bank Limited has been the first of its nature and composition as a
State owned bank in the country .The state Govt. 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 ten branches two branches of
Muzaffarabad and Mirpur fell to the other side of the 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 lakhs to meet the claims, however the
bank fastly over came its difficulties and kept growing.
34 | P a g e
LOANS AND ADVANCES
Following the extension of Central laws to the state of Jammu & 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 social Central 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 .The bank was declared
as "A" Class Bank by Reserve Bank of India in 1976 .In recognition of dominant role and
exalted performance, Reserve bank of India appointed the bank as its agent for performing
the general banking business of the Central Govt. especially in maintaining currency chests
and collection of taxes.
2.1.2 Corporate Overview
The Bank has also achieved the distinction of winning the Runner up trophy at prestigious
Asian Corporate Social Responsibility Forum recently. Corporate Social Responsibility
(CSR) is truly embedded in the Bank's day-to-day business, policy and strategy and
addresses all stakeholders. CSR is not just an add-on' or a one time only subject, but is
integrated into the organization's management practices.
The Board of Directors and Management of the Bank are fully aware of Bank's Corporate
Responsibility as a corporate citizen and are actively involved and committed towards their
corporate obligations towards all the stakeholders. The Bank follows the concept that
excellence in CSR is exceeding the minimum regulatory framework in which the
organization operates and to strive to understand and respond to the expectations of their
stakeholders in society. The CSR policy of the Bank involves meeting the needs of all
stakeholders and not just shareholders against some form of ethical basis. The Bank is
committed to the best and transparent corporate governance practices. It believes that
proper corporate governance practices lead to effective management and control of
business, which in turn provides best value to all its stakeholders.
The Bank's CSR is rooted in its Corporate Governance philosophy, which in turn is woven
around Bank's commitment to ethical practices in the conduct of its business, while striving
in the constant quest to grow with profits and enhance shareholders value and align
35 | P a g e
interests of the shareholders, stakeholders and society through adoption of best

international practices and standards. Managing CSR is not viewed as an extra cost or
burden but is viewed not only as making good business sense but also contributing to the
long-term prosperity of our Bank and ultimately its survival. Being good neighbors and
showing that you care on the one hand and being a successful business on the other, are flip
sides of the same coin.
The three colored squares represent the regions of Jammu, Kashmir and Ladakh. The
counter-form created by the interaction of the squares is a falcon with outstretched wings
a symbol of power and empowerment. Green signifies growth and renewal, blue conveys
stability and unity and red represents energy and power. The J&K Bank is rated P1+,
indicating the highest degree of safety by Standard & Poor and CRISIL
2.1.3 Vision: - To catalyze economic transformation and capitalize on growth.
2.1.4 Mission: - To provide the people of J&K international quality financial service and
solutions and to be a super-specialist bank in the rest of the country. The two together will
make it the most profitable Bank in the country.
36 | P a g e
2.2 State Bank of India

State Bank of India (SBI) is the largest banking and financial services company in India by
revenue, assets and market capitalization. It is a state-owned corporation with its
headquarters in Mumbai, Maharashtra. As of March 2011, it had assets of US$370 billion
with over 13,577 outlets including 157 overseas branches and agents globally. SBI provides
a range of banking products through its vast network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). The State Bank Group, with over
18,324 branches, has the largest banking branch network in India. SBI is a regional banking
behemoth and is one of the largest financial institutions in the world. It has a market share
among Indian commercial banks of about 20% in deposits and loans. The State Bank of
India is the 29th most reputed company in the world according to Forbes. Also, SBI is the
only bank featured in the coveted "top 10 brands of India" list in an annual survey
conducted by Brand Finance and The Economic Times in 2010. The State Bank of India is
the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank
and HDFC Bankits main competitors The State Bank of India, the countrys
oldest Bank and a premier in terms of balance sheet size, number of branches, market
capitalization and profits is today going through a momentous phase of Change and
Transformation the two hundred year old Public sector behemoth is t o d a y s t i r r i n g
o u t o f i t s P u b l i c S e c t o r l e g a c y a n d m o v i n g w i t h a n ability to give the
Private and Foreign Banks a run for their money. The bank is entering into many new
businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services,
Private Equity, Mobile banking
The business of the banks was initially confined to discounting of bills of
exchange or other negotiable private securities. D e m a n d p r o m i s s o r y n o t e s were
signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank.
Lending against shares of the banks or on the mortgage of houses, land or other real
property was, however, forbidden. Indians were the principal borrowers against deposit of
Company's paper, while the business of discounts on private as well as salary bills was
almost the exclusive monopoly of individuals Europeans and their partnership firms. The
main function of the banks, as far as the government was concerned, was to help the latter
37 | P a g e
raise loans from time to time and also provide a degree of stability to the prices of
government securities
Listed on the left are Services, SBI offers to its customers.
Domestic treasury
Broking services
Revised service charges
ATM services
Internet banking
E-pay
38 | P a g e
2.3 Punjab National Bank

Punjab National Bank (PNB) is an Indian financial services company based in New Delhi,
India. PNB is the third largest bank in India by assets. It was founded in 1894 and is
currently the second largest state-owned commercial bank in India ahead of Bank of
Baroda with about 5000 branches across 764 cities. It serves over 37 million customers.
PNB has the distinction of being the first Indian bank to have been started solely with
Indian capital that has survived to the present. Punjab National Bank was ranked #26 in the
Fortune India 500 ranking of 2011. Punjab National Bank was ranked #1243 in the Forbes
Global 2000. Punjab National Bank has entered into a strategic alliance with Metlife India
Insurance, headquartered in Bangalore and Gurgaon, which has operated in India since
2001 and is an affiliate of MetLife. The new entity, PnbMetlfe markets insurance products
through PNB's branches. Since its inception, PNB Bank has offered a whole range of
banking products and services hardly compared by few others. An important achievement
of the bank is that all its branches are covered under Core Banking Solution thereby
enabling customers to get 'anytime anywhere' banking facilities. Punjab National Bank also
offers Internet Banking facilities to core banking branch customers. The bank provides a
wide variety of products and services under personal banking, corporate banking, social
banking, NRI banking and business banking facilities. The following is a list showing the
financial products and services made available by PNB Bank.
2.3.1 Personal Banking: Savings Fund Account, Total Freedom Salary Account, Current Account, PNB Smart
Roamer Fixed Deposit Schemes, Recurring Deposit Scheme, Housing Loan, Car Loan,
Personal Loan, Education Loan Scheme
2.3.2 Social Banking: Krishi Card, Agriculture Credit Schemes, PNB Farmers Welfare Trust, Scheme for House
Wife and Other Women, Mahila Udyam Nidhi Scheme
2.3.3 Corporate Banking: Loan Against Future Lease Rentals, EXIM Finance, Cash Management Services , Gold
Card Scheme for Exporters.
39 | P a g e
Chapter 3
REVIEW OF LITERATURE
40 | P a g e
3.0 Review of literature

Banks can be broadly categorized into commercial banks, public sector banks, regional
rural banks, private sector banks, foreign banks, co-operative banks, and term lending
institutions, non-banking finance companies / housing finance companies. Public sector
banks make up the largest category of banks in the Indian banking system. There are 28
public sector banks in India. In July 1993, as part of the banking reform process and as a
measure to induce competition in the banking sector, RBI permitted entry by the private
sector into the banking system. This resulted in the introduction of nine private sector
banks. The Government of India permits foreign banks to operate through branches; a
wholly owned subsidiary; or a subsidiary with aggregate foreign investment of up to 74%
in a private bank. Banks have to maintain certain percentage of deposit with Reserve bank
of India (RBI) as CRR (Cash Reserve Ratio) on which they earn lower interest. The Second
part of regulatory requirement is to invest in G-Securities, which is called as statutory
liquidity ratio (SLR). The banks revenue is basically derived from the interest it earns from
the loans it gives out as well as from the fixed income investments. Liquidity Adjustment
Facility- Repo and Reverse Repo rates. It is a tool used in monetary policy that allows
banks to borrow money through repurchase agreements. It is used in resolving any short
term cash shortages during period of economic instability or from any other form of stress
caused by forces beyond their control. Repo is a form of short term borrowing for dealers
in government securities. Prime lending rate is the interest rate charged by banks to their
most credit worthy customers. Adequate capital helps financial intermediaries to survive
even during substantial losses. It gives time to re-establish the business and avoid any break
in operations. This requirement is called Capital Adequacy, and is specified for banks and
Non Banking Financial Corporations (NBFCs). Two types of capital are measured: tier one
capital is core capital; this includes equity capital and disclosed reserves. Tier two capital is
secondary bank capital that includes item such as undisclosed reserves, general loss reserve
and subordinated term debt. The net interest income (NII) is the revenue on the assets and
the cost of servicing the liabilities. In other words, the NII is the difference between the
interest payments to the bank on loans and the interest payments by the bank to the
customers on the deposits.
41 | P a g e
Loans
A loan is granted for a specific time period. Generally commercial banks provide
short-term loans. But term loans, i.e., loans for more than a year may also be granted. The
borrower may be given the entire amount in lump sum or in installments. Loans are
generally granted against the security of certain assets. A loan is normally repaid in
installments. However, it may also be repaid in lump sum.
Advances
An advance is a credit facility provided by the bank to its customers. It differs from
loan in the sense that loans may be granted for longer period, but advances are normally
granted for a short period of time. Further the purpose of granting advances is to meet the
day-to-day requirements of business. The rate of interest charged on advances varies from
bank to bank. Interest is charged only on the amount withdrawn and not on the sanctioned
amount.
3.1 Types of Advances
Banks grant short-term financial assistance by way of cash credit, overdraft and bill
discounting.
a)
Cash Credit
Cash credit is an arrangement whereby the bank allows the borrower to draw
amount up to a specified limit. The amount is credited to the account of the customer. The
customer can withdraw this amount as and when he requires. Interest is charged on the
amount actually withdrawn. Cash Credit is granted as per terms and conditions agreed with
the customers.
b)
Overdraft
Overdraft is also a credit facility granted by bank. A customer who has a current
account with the bank is allowed to withdraw more than the amount of credit balance in his
account. It is a temporary arrangement. Overdraft facility with a specified limit may be
allowed either on the security of assets, or on personal security, or both.
c)
Discounting of Bills
Banks provide short-term finance by discounting bills, that is, making payment of
the amount before the due date of the bills after deducting a certain rate of discount. The
42 | P a g e
party gets the funds without waiting for the date of maturity of the bills. In case any bill is
dishonored on the due date, the bank can recover the amount from the customer.
ii)
Secondary functions
In addition to the primary functions of accepting deposits and lending money, banks
perform a number of other functions. These are as follows,
a.
Issuing letters of credit, travelers cheque, etc.
b.
Undertaking safe custody of valuables, important document and securities

by providing safe deposit vaults or lockers.
c.
Providing customers with facilities of foreign exchange dealings.
d.
Transferring money from one account to another; and from one branch to another
branch of the bank through cheque, pay order, demand draft.
e.
Standing guarantee on behalf of its customers, for making payment for purchase of
goods, machinery, vehicles etc.
f.
Collecting and supplying business information.
g.
Providing reports on the credit worthiness of customers.
i.
Providing consumer finance for individuals by way of loans on easy terms for
purchase of consumer durables like televisions, refrigerators, etc.
3.2 Shetty assessed the dimensional change in credit deployment during the first five
years of nationalization in relation to changes in output and prices. The rationale for his
analysis was the fact that, in any accepted model of demand for money, one common
variable is the gross national product or some other variant of it in real terms.
Consequently, he hypothesized that credit for any sector or industry over a period has to
have some relationship with its performance in real terms, particularly output. He
observed a declining trend in the credit extended by banks to industries since
nationalization, though it was higher than other sectors. On finding that the share of
manufacturing sector in bank credit is higher than its share in Net Domestic Product
(NDP) he concludes that increase in bank credit has occurred far in excess of increase in
output during the years 1968169 to 1973174.
43 | P a g e
In his other paper, shetty4 observed that the share of medium and large industry in total
bank credit had declined due to priority sector lending. Another observation in line with his
earlier finding was that growth in bank credit had always been disproportionate to growth
of their physical output, especially in industries like cotton textiles. His observation for the
years revealed:
Increase in average bank credit had been higher than the growth of NDP
originating in registered manufacturing sector even at current prices.

An appreciable increase in the rate of short-term bank credit to inventories and
Relatively higher reliance on trade credit
In line with these observations, he suggested policies to scrutinize credit claims vigorously
and relate credit to the genuine production requirements so that funds are not tied up with
these large borrowers.
3.3 Divatia and shankar in their paper discussed the role of internal and external sources
of funds and their components in financing capital formation of the private corporate
sector. The study was based on the RBI company finance studies relating to medium and
large public and private limited companies and covered the period 1961-76. They also
discussed the trends and patterns of financing for four individual industries, viz, cotton
textiles, jute, sugar and cement.
3.4 S Adve had some interesting findings in his article "Financial Practices in Indian
Corporate Sector," based on the RBI company finance data. He underlined the rising
dependence on borrowed capital in relation to the total capital employed in the Indian
corporate sector. Trade credit was pointed out to be important sources of capital when the
bank credit was squeezed. Making an industry wise analysis the author came to the
conclusion that the industries with large profit margins and those with large depreciation
and development rebate reserves had a relatively lower order of overall indebtedness and
many of them also had a lower order of bank borrowings in relation to overall
indebtedness. Industries with high profit margin such as silk and rayon textiles, aluminum,
basic industrial chemicals and medicine and pharmaceutical preparations had lower
44 | P a g e
proportion of borrowed funds as compared to the average of the medium and large public
Ltd. companies.
3.5 M.S.Joshi examined the role of financial intermediaries in providing finance to
large-scale industries in the private sector. After analyzing the contribution of each
important intermediary towards industrial development in India, he estimated that these
intermediaries have participated with 17% of investment in various industries against 39%
in share capital of public Ltd. companies.
3.6 Among the recent studies, Sunanda's study of institutional agricultural credit in
J&K highlights the inter district disparity. She reviews the socio-economic background for
the origin and growth of banks in Kerala (performance of commercial banks and cooperatives only) and concentrates on the agricultural credit disbursed by them. In credit
per hectare, Kulgam and Kokernag stood highest while Anantnag ranked the lowest.
Regional increased. She has used Principal Component Analysis to explain the variation.
Three sets of variables are used for explaining the variation of credit per hectare from
commercial banks and co-operatives viz Banking variables, Asset variables, Productivity
variables.
3.7 Indigenous Financial Agencies The availability of literature on indigenous financial
system is scarce. The Central and Provincial Banking Enquiry Committee Reports give
comprehensive information regarding the working of the agencies. But even such
information appears to have become outdated in many respects as the enquiry was
conducted more than 55 years ago. The Rural credit survey and Central banking Enquiry
Committee attempted to obtain quantitative information, including capital invested in the
business from the agencies but failed in their task. Hence as far as the quantitative aspect
is concerned, it is impossible to collect correct information from these agencies as their
nature of business is selective and also as their exact number is not known.
3.8 BA Praksh provides an interesting account of the functioning of private financing
firms in J&K. The study based on a survey of the private financing firms in Srinagar town
seeks to examine the factors, which contributed to the emergence of these institutions, the
45 | P a g e
method of their functioning and their importance as a parallel banking system. However
he is silent on questions such as types of borrowers, total amount of uncounted money
generated by the private financing firms, safety of depositors' money and so on.
3.9 Introduction to Jammu and Kashmir: 46 | P a g e
Jammu and Kashmir is the northernmost state of India. It is situated mostly in the
Himalayan mountains. Jammu and Kashmir consists of three regions: Jammu, the Kashmir
valley and Ladakh. Srinagar is the summer capital, and Jammu is the winter capital. While
the Kashmir valley is famous for its beautiful mountainous landscape, Jammu's numerous
shrines attract tens of thousands of Hindu pilgrims every year. Ladakh, also known as
"Little Tibet". Because of Jammu and Kashmir's wide range of elevations, its biogeography
is diverse. In Jammu and Kashmir, the principal spoken languages are Kashmiri, Urdu,
Dogri, Pahari, and Pashto. However, Urdu written in the Persian script is the official
language of the state. Many speakers of these languages use Hindi or English as a second
language. Jammu and Kashmir is the only state in India which enjoys special autonomy
under Article 370 of the Constitution of India according to which, no law enacted by the
Parliament of India, except for those in the field of defense, communication and foreign
policy, will be extendable in Jammu and Kashmir unless it is ratified by the state legislature
of Jammu and Kashmir.
Jammu and Kashmir's economy is predominantly dependent on agriculture and allied
activities. The Kashmir valley is also known for its sericulture and cold-water fisheries.
Wood from Kashmir is used to make high-quality cricket bats, popularly known as Kashmir
Willow. Kashmiri saffron is also very famous and brings the state a handsome amount of
foreign exchange. Agricultural exports from Jammu and Kashmir include apples, barley,
cherries, corn, millet, oranges, rice, peaches, pears, saffron, sorghum, vegetables, and
wheat. The Government of India has been keen to economically integrate Jammu and
Kashmir with the rest of India
Several banks operating in J&K are as:1.
2.
3.
4.
5.
6.
J&K Bank
HDFC Bank
SBI
PNB
ICICI
AXIS Bank
Since a lot of banks are operating in J&K, therefore it is a point of concern for each bank to
maintain their customer loyalty. As the conditions are getting stiffer day by day, the banks
47 | P a g e
are striving to keep their customers and are providing them with all the promotional
schemes that attract their customers to their respective banks. Winning a customer is an art
and the banks should be quiet nice in doing so. There are various promotional schemes that
are being provided by the banks. The two main promotional schemes that are of main
importance to the people of J&K and are relevant to my project are: 1. Agricultural loan.
2. Car loan.
1. Agricultural Sector/loan: -
A dynamic and growing agricultural sector needs adequate finance through banks to
accelerate the overall growth. The target for agricultural credit in 2012-13 is Rs 5,75,000
crore. The government has allocated Rs 10,000 crore to the National Bank for Agriculture
and Rural Development (NABARD) for refinancing Regional Rural Banks (RRBs) to
disburse short-term crop loans to small and marginal farmers. The short-term crop loans
scheme offers credit to farms at 7 per cent interest rate per annum. Farmers who repay in
time would get crop loans at 4 per cent interest rate. In order to reduce post-harvest losses,
farmers are also eligible to get post-harvest loans up to six months at 4 per cent interest rate
provided they keep their produce in warehouses.
Jammu & Kashmir State is predominantly an agrarian economy with about 80%
of its population engaged in agriculture and allied sectors. The agro-climatic diversity of
the State varying from sub-tropical in Jammu, temperate in Kashmir and cold arid in
Ladakh, makes it ideal for varied cultivation. The goal before different Banks is to enhance
the income of farmers and to generate employment in agriculture and allied sectors. The
strategy adopted for this purpose is to increase production and productivity of the crops and
to enable farmers to diversify their crop production so as
to take advantage of market opportunities. Agriculture has, after a very long time, occupied
centre stage in the economic and administrative discourse in the State at a time when all
seemed lost due to the dwindling interest of the younger generation in agriculture activities.
48 | P a g e
The concerted efforts of the public as well as private sector banks have triggered a new
hope among the people, which promises profitability and dignity in the agriculture as an
occupation. The banks provide need-based agricultural loans of varying tenors to all credit
worthy clients engaged in farming of staple as well as cash crops, horticulture, plantations,
poultry, animal husbandry, dairying, seeds, warehousing, etc. The bank also finances the
supplies of a wide range of agricultural inputs like seeds, fertilizers, pesticides, micro
nutrients and micro irrigation tools. The banks have identified transportation, storage and
processing of food and other agricultural commodities as a thrust area and offer working
capital and term loans of varying tenors to eligible processors, based on not only their
financials but also on the strengths of underlying commodities. These types of financing are
adapted to the specific financial needs of farmers, which are determined by planting,
harvesting and marketing cycles. Farming is an important economic activity of the state.
The majority of the indigenous local population of Jammu and Kashmir depends on
agriculture and its related activities to earn their livelihood. The Department of Agriculture
of Jammu and Kashmir imparts the farmers of the state with modern technological
knowledge of growing variety of crops.
General agriculture profile of J&K state: a. 80% population dependant on agriculture.
b. Small/Marginal Farmers are 85%.
c. Small and fragmented land holdings (Av. holding size: 0.66 ha.).
d. Huge diversity in physio-graphic features and agro climate at micro & macro level
(sub tropical, temperate, inter mediate & cold arid zones exist).
e. Hilly terrain
f. Increasing pressure on land due to growing urbanization.
g. Fragile Soil in hilly areas susceptible to soil erosion.
h. Single Cropping season in temperate / high altitude areas.
i. Inadequate and unorganized marketing infrastructure.
j. Distant markets for export outside the State
k. Food grain production is around 16 lakh MT
l. Contributes 27 % to State Gross Domestic Product.
49 | P a g e
(Area under various crops in J&K state):

Crops
Area(Lac Ha.)
Paddy
2.58 Lac Ha
Maize
3.19 Lac Ha
Wheat
2.62 Lac Ha
Pulses
0.30 Lac Ha
Vegetables
0.51 Lac Ha
Flowers
0.00250 Lac Ha
Other cereals & millets 0.38 Lac Ha
Oilseeds
0.62 Lac Ha
2. Car Loan
In today's fast paced world, a vehicle is but a necessity. Yet other expenses and plans in life
take priority and the dream of owning a car takes a back seat. Whether as a comfortable and
dependable means of transport or as a status symbol in society, everyone wants to be the
owner of a vehicle. The Car Loans from different banks are designed to finance the car that
suits our need and matches to our status & taste. Car Loans are designed for those who
wish to finance a car for personal use. It is the way you can borrow money from future. A
car loan can give you immediate use of the car of your choice in exchange for regular
payments over an agreed period of time. The features of car loan are detailed as follow.
i.
Payments can be arranged to suit your requirements.
ii.
Cost like Registration cost, Road cost, Loan insurance & Comprehensive
vehicle insurance may be able to be financed on the loan contract.
iii.
For repayment, you can choose monthly or fortnightly to pay during normally
terms range from 12 to 60 months.
iv.
A deposit may not be required, moreover if you do, maybe you will receive
some benefits like lower repayment or shorter term.
50 | P a g e
Keeping all the above mentioned facts and features in view, I have decided to undertake a
project which would be titled as CUSTOMER SATISFACTION BASED ON THE
COMPARATIVE ANALYSIS OF LOAN PROCEDURES FOLLOWED BY DIFFERENT
BANKS. Under this title, I will study the customer satisfaction associated with each bank
(J&K, HDFC, PNB, & SBI). The basis of comparison will be different loan procedures that
the banks follow while providing loans to their customers. These procedures will reveal
how and why a particular customer wants to be with a particular bank and why not with
others. In addition, it will furthermore throw some light about the various shortcomings of
these banks and at last there would some recommendations from my side to the other banks
by the help of which they can also excel in this business and keep going in this long run.
The analysis will be done with the help of a questionnaire to know how satisfied a
customer is with his preferred bank and what change he wants to be in the banks offering
to him.
Chapter 4
51 | P a g e
AGRICULTURE AND CAR LOAN

PROCEDURE
Agriculture & Car Loan Procedures

4.0.0 HDFC bank Agricultural loan:HDFC Bank, as a leading Indian private sector bank, is fully committed to ensure that the
benefits of world-class banking reach all sectors of the country, particularly in the rural
areas and in the agriculture sector. The bank provides need-based agricultural loans of
varying tenors to all credit worthy clients engaged in farming of staple as well as cash
crops, horticulture, plantations, poultry, animal husbandry, dairying, seeds, warehousing,
etc. The bank also finances the supplies of a wide range of agri inputs like seeds, fertilizers,
52 | P a g e
pesticides, micro nutrients and micro irrigation tools. The bank facilitates the food chain
from the "farm gate to the food plate". The bank is expanding its rural presence rapidly in
order to deliver these products effectively at the doorsteps of their valued customers, at
affordable prices.
4.0.1 Basic Features of HDFC Agriculture Loan:
1. The huge range of agricultural equipments which are manufactured in India is financed
by HDFC Bank.
2. Offers low rate of interest to the farmers.
3. Provides loan up to 85% of the value of the equipments.
4. Flexibility in repayment periods which ranges from 12-84 months.
5. Minimum documentation is required
4.0.2 The Eligibility criteria for the farmers are:
1. Minimum age of the applicant to apply for the loan is 18 years and maximum 60 years.
2. To avail HDFC Agriculture Loan Annual Income of the farmer should not be less than 1
Lac.
3. To avail HDFC loan should possess 12 acres of cultivated land.
4.0.3 Documents required are:
1. Identity proof, which can be a Voter ID card, Driving license, xerox of the first page of
the Bank Pass book where details of customers name, address and photograph is duly
attested by the Bank etc.
2. Address proof- Ration card, Property card etc are required.
3. Bank Statement- Bank statement for last 6 months is required in certain cases.
4. Signature proof- signature proof is required for the customer to avail HDFC Agriculture
Loan.
53 | P a g e
4.1.0 CAR LOAN

HDFC bank provides car loans to its customers for a wide range of car models. These
HDFC car loans are available for both new cars as well as old cars.
4.1.1Eligibility for salaried individuals:
Applicant must have a minimum age of 21 years.
Maximum age allowed is 58 years on loan maturity.
Minimum of 1 year employment with current employer and at least 2 years of total
employment.
Minimum net annual income of Rs 1 lac.
54 | P a g e
Residence telephone proof must be give.
4.1.2 Documents required for HDFC Car Loan
Identity proof.
Income proof.
Address proof.
Bank Statement. (not mandatory)
4.1.3 Eligibility for Car Loan for Self-employed individuals
Minimum 3 years in business.
Minimum net annual income of Rs 1 lac (net profit) for mid-sized and premium
cars and minimum net annual income of Rs 60,000 (net profit) for standard car.
4.1.4 Documents required for HDFC Car Loan
Identity proof.
Income proof. (Latest ITR)
Address proof.
Bank Statement. (waived in case the income is more than Rs. 1.5 lakhs)
4.1.5 HDFC car loans for USED CAR

4.1.6 Eligibility for Salaried individuals:
Minimum of 1 year employment with current employer and at least 2 years of total
employment.
Minimum gross annual household income of Rs 60,000.
55 | P a g e
4.1.7 Documents required
Identity proof.
Age proof.
Income proof.
Address proof.
Sign verification proof.
4.1.8 Eligibility for Self-employed individuals
Minimum 3 years in business.
Minimum net annual income of Rs 60,000.
4.1.9 Documents required
Identity proof.
Age proof.
Income proof. (Latest ITR)
Address proof.
Sign verification proof
56 | P a g e
4.2.0 SBI Agriculture loan: SBI provides SBI Agriculture loan (term loan) for asset (bullocks, farm machinery, sheep
etc.) purchase as well as asset creation (poultry, orchard development, dairy development
etc.) which are connected with activities in rural areas and fall under horticulture,
agriculture, sericulture, plantation, animal husbandry etc. the loan is to be repaid at a span
of 3 years
4.2.1 Eligibility:
All categories of farmers as well as agricultural laborers are eligible for this loan.
Loan Amount:
100% of project/asset cost for loans up to Rs 50,000.
85% of project/asset cost for loans more than Rs 50,000
4.2.2 Documentation:
57 | P a g e
Activities like bullock purchase or other similar purchases, no documents required.

Large loan amounts will require project/estimate/quotation reports.
Loan for land based activities will need land records.
For loan amounts greater than 25,000, no due certificates are required from other banks in
that area.
4.2.3 Interest rate for SBI Agriculture loan:
The rate of interest varies from 8.5% to 12.75% depending on the loan amount and in the
extreme cases of very high loan amounts, credit risk assessment is required.
Repayment period:
Repayment period varies from 5-15 years and is based on the income generation of the
activity for which the loan was taken.
4.2.4 SBI CAR LOAN

A person can avail the State Bank of India or SBI Car Loan from its personal banking
branches and from 60,000 other branches across India. A person can avail this benefit for
purchasing a new car, jeep, Multi Utility Vehicle or for a used car or jeep which is not more
than 5years old. There is no upper limit on amount of loan but a maximum loan amount of
2.5 times can be sanctioned on the persons net annual income which should be around
1lakh. This loan includes finance for one time road tax, registration and insurance. The
margin charged by SBI is 15% of on the road price for both new and used vehicles.
4.2.5 The Documents required for SBI Car Loan are below:
The person should have a Savings Account in SBI.
Bank Statement for the last 6 Months.
Two Passport Size Photographs.
58 | P a g e
Latest Salary Slip and Form 16 in the case of salaried person.

IT returns for the last two financial year in case of self employed or professionals.
A person not having an account with SBI can also get the loan on depositing their identity
proof and residential proof.
4.2.6 The other benefits that a person can get from SBI Car Loan are as follows:
Low Interest Rates.
The loan can be repaid within a period of 84 months from the time the loan is sanctioned.
SBI exempts their customers from any administration charges.
There is no hassle of paying advance EMI.
Interest is levied on daily reducing balance method. When a customer pays one
instalment, the interest is automatically calculated on the reduced balance thereafter.
4.3.0 PNB Agriculture Loan.

4.3.1 PURPOSE: Loan is provided to cover short term working capital for agriculture
activities and other domestic requirements.
4.3.2 ELIGIBILITY: Progressive literate and illiterate farmers who are owner cultivators,
tenants, lessee or allottee farmers with recorded occupancy rights or farmers with
ancestral/perpetual rights of cultivation/Joint Liability Groups(JLGs). Oral tenants can be
eligible for loan only if land owners agree to become co-borrowers. In the accounts which
are secured by liquid securities like FDR,NSC/KVP etc., the cards to oral tenants can be
issued without stipulating the condition of land owners to be made co-borrowers. Landeless
labourers, share croppers, tenant farmers and oral lessees can be issued PNB Krishi Card
upto limit of Rs 50,000 on the basis of affidavit.
4.3.3 EXTENT OF LOAN: Maximum Rs.10 lakh
59 | P a g e
Fixation of limit: Limit is fixed for term loan and working capital requirement limit for
agricultural and allied activities, etc., based on the unit cost of the assets proposed to be
acquired by the farmer, the allied activities already being undertaken on the farm repaying
capacity.
4.3.4 Maximum limit of Rs 10 lakh is allowed as under:
Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs &
working capital for allied activities. Entire cash credit limit under the scheme may be
disbursed in cash. For consumption needs, loan may be sanctioned upto 25% of the limit or
Rs 50000/-, whichever is lower.
Need based term loan within overall ceiling of Rs 10 lakh including cash credit limit
mentioned above & loan (maximum up to Rs.50,000) for relief against indebtedness from
non-institutional money-lenders
Existing borrower farmers having satisfactory track record of minimum 2 years can be
sanctioned limit upto Rs. 20 lakh. However, the production credit limit including
consumption loan will be restricted upto Rs. 10 lakh. The condition of satisfactory dealing
of 2 years can be waived in cases where the collateral security to the extent of 200% of the
loan amount is available.
4.3.5 REPAYMENT OF LOAN: Term loan including loan for relief against indebtedness
from non-institutional lenders may be repayable in 5 years. However, in case of term loan
where repayment period is more than 5 years, longer repayment period as prescribed under
the respective scheme is allowed.
60 | P a g e
4.4.0 CAR LOAN: Available for purchase of New Car/ Van/ Jeep/ Multi Utility Vehicle (MUV)/ Sports Utility
Vehicle (SUV) or for old vehicles that are not older than 3 years (Depriciation @ 15% p.a.
on current invoice / showroom invoice). Finance will be provided for purchase of vehicle
of indigenous/ foreign makes.
4.4.1 Eligibility
Individuals as well as Business Concerns (Corporate or non-corporate).
Minimum net monthly salary / pension / income 20000/-. Income of spouse /Parent can
be added.
4.4.2 Amount of Loan
61 | P a g e
For Individuals / Proprietorship Concerns: 25 times of the monthly net salary OR Rs.25
lacs (for one or more vehicles), whichever is lower. Income of parent(s) / spouse can be
taken
into
account
for
determining
loan
amount.
For Business Concerns (Corporate or non-corporate): No ceiling on loan amount (for

one or more vehicles).
4.4.3 Margin
For New Vehicles: 15%
For Old Vehicles: 30%
Under Tie-up Arrangement : 10%
4.4.4 Security
The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be
registered in the name of the borrower jointly with the Bank.
Guarantee / Collateral Security
i)
Third party guarantee / collateral security is waived in following cases:
Permanent Employees of Central Govt. /State Govt. /PSUs/ MNCs/ Listed

Companies at NSE/ BSE whose Shares are actively traded and quoted above par.
For other than salaried class borrowers where ex showroom cost of the car is
exceeding Rs.6 lakh.
ii)
However the Guarantee of Parent(s) / Spouse will be taken in case their income
has been considered for determining loan amount
4.4.5 Repayment
For New Vehicle: The loan amount together with interest is to be repaid maximum
in 84 Equated Monthly Installments (EMIs).
For Old Vehicle: The loan amount together with interest is to be repaid maximum
in 60 Equated Monthly Instalments (EMIs)
62 | P a g e
4.4.6 Disbursement
The intending borrower will be required to settle the transaction for purchase of vehicle
needed by him/her with the seller and will be required to deposit the difference of the cost
of the vehicle to amount of loan, and thereafter, the advance will be allowed to him/her
from the bank by paying the entire price of the vehicle to the seller directly on behalf of the
borrower.
4.5.0 J&K Bank Agriculture loan.

4.5.1Nature of Facility
Agricultural Term Loan
4.5.2 Objective
To provide adequate and timely credit for comprehensive requirements of farmers
with flexible and simple features
4.5.3 Purpose
Purchase of assets (farm equipments, bullocks, etc)
Any other activity under Agriculture, Horticulture, Sericulture, Animal Husbandry,

Plantation, Fisheries etc.
An indicative list of activities is presented herein below.
1.1. Setting up of small Dairy/Poultry units Orchard Development

1.2. Crops (Paddy, wheat, maize, oil seeds, saffron, vegetables etc)
1.3. Purchase of Farm Machinery eg. Water pumps/Spray pumps
1.4. Purchase of seeds, pesticides/fertilizers Vegetable farming
4.5.4 Eligibility
63 | P a g e
All Persons engaged in agricultural and allied in Semi urban and Rural areas
including all categories of farmers.
4.5.5 Quantum of finance

Max. 1.00 Lac depending upon the activity to be financed. Multiple activities can
also be considered for assessing the quantum of finance.
4.5.6 Repayment
5 years after a moratorium of three months.
4.6.0 Car loan

4.6.1 Eligibility
a) Permanent Employees of State / Central Government, Employees of Government /
Semi-Government Undertakings & Autonomous Bodies
b) Employees of Private Limited Companies, Private Organizations, Reputed
Establishments & Employees on contractual basis with Central/State Govt,
Government/ Semi-Government Undertakings& Autonomous bodies*
c) Businessmen, Professionals and self employed individuals.
4.6.2 Security
Primary
Hypothecation of vehicle to be purchased & Banks charge to be registered with
RTO.
Collateral
1. No third party guarantee required in respect of permanent employees of
State and Central Government, employees of State / Central Government
Undertakings & Autonomous bodies drawing salary through our Bank and
where letter of undertaking from employer is available.
2.
Guarantee of one person for all other applicants of the bank.
4.6.3 Margin
For Government Employees maintaining salary accounts with us 5%

For Others 10%
4.6.4 Repayment
64 | P a g e
Flexible repayment options ranging from 12 to 84 months in equal monthly

installments.
4.6.5 Maximum Loan Amount

30 months net monthly salary of the applicant or 2.5 times net annual income. However, in
case of employees of private organizations & employees on contract basis as mentioned
above, the maximum finance shall be limited to 18 times net monthly salary or 1.5 times
net annual income.
a)
In case of married individuals, certified income of spouse can also be considered

provided the spouse guarantees the loan.
b)
The upper ceiling on the loan amount shall be
25 lacs.
c)
The number of Vehicles to be sanctioned to a single borrower under Car Finance

(New Cars) at any point of time should not exceed more than 2 vehicles subject to
maximum prescribed limit of
4.6.6 Used cars:
25.00 lac.
4.6.7 Purpose
The finance under this scheme shall be available for purchase of: An old car / jeep
(not more than 5 years old). (Any make or model)
4.6.8 Eligibility
Permanent
employees of Government/Semi-Government Undertakings,
Autonomous bodies, Public Sector Undertakings, Private Companies or reputed
establishments. Professionals or self employed individuals, Proprietorship
Concerns. Partnership Firms, Private /Public Ltd Co.
4.6.9 Margin
25% for vehicles having age less than 3 years.
65 | P a g e
30% for vehicles having age of 3 years and above upto 5 years.
4.6.10 Maximum Loan Amount

2.5 times of the net annual income or 15 lacs, whichever is lower. If married, the
spouse's income also considered provided the spouse guarantees the loan.
The number of vehicles to be sanctioned to a single borrower under Car Finance
(Used) at any point of time should not exceed more than 2 vehicles subject to
maximum prescribed limit of 15.00 lac.
4.6.11 Repayment Period

Maximum repayment period of 72 months for vehicles having age less than 3 years.
Maximum repayment period of 48 months for vehicles having age of 3 years &
above to 5 years.
4.6.12 Security
Primary: Hypothecation of vehicle to be purchased.
Collateral: No third party guarantee required in respect of employees drawing salary
through our branches & where letter of undertaking from employer is available.
4.6.13 Prepayment
Prepayment of any amount allowed any time after a period of 6 months at

prepayment penalty @2% for the amount prepaid
4.6.14 Valuation of the Vehicle

The value of the vehicle will be ascertained on the basis of present market value of
the new car of same variety & configuration less the depreciation, which shall be as
follows
Age of the vehicle
% Of Depreciation for
fixing value.
Not exceeding 6 months.
5%
Exceeding 6 months but not exceeding 1 year.
15%
Exceeding 1 year but not exceeding 2 years.
20%
2 years but not exceeding 3 years.

66 | Exceeding
Page
30%
Exceeding 3 years but not exceeding 4 years.
40%
Exceeding 4 years but not exceeding 5 years.
50%
Chapter 5
Data Analysis and Interpretation
1. What is your occupation?

a. Govt. Employee
b.
Professional
c. Business
d.
Student
Ans:-
HDFC
67 | P a g e
J&K bank
PNb
SBI
Analysis: - As revealed by the graphs, the maximum numbers of government employees

are working with HDFC bank. This creates a competitive edge for the bank as it is easy for
the bank to verify the credentiality of the customers. In contrast to it the number of business
men working with J&K bank is more. The bank needs to verify its customers records to
measure the credit worthiness of the customers. As with the HDFC bank, the Govt.
employees are able to repay their dues on time or the remaining dues are automatically
deducted from their accounts at the end of the month. This makes the banks recollection
easier.
2. Are you aware of the different loan schemes offered by different banks?
a. Yes
b. No
Ans:-
68 | P a g e
(a)
(c)
(b)
(d)
Analysis:From the above mentioned data, it is clear that the HDFC bank customers are leading in
awareness about loans. Since the bank always tries to increase its customer base, and one
way to do the same is to make more and more people aware about the different loan
schemes. The availability of desired loans make the customers more loyal as they get what
they want and that too at the easiest possible way. The least aware customers are those of
PNB bank which creates a lot of problems in its operations. Second to the HDFC bank
stands J&K bank which is doing all it could to increase the awareness of loans among its
customers.
Thus, HDFC banks customers are most advanced in terms of knowledge about loans and
are thus satisfied with their banks response towards educating them.
69 | P a g e
3. Have you ever applied for any type of agricultural loan?

a. Yes
b. No
70 | P a g e
Analysis:From the statistics it is clear that the customers of J&K bank are leading in applying
agricultural loans, followed by PNB and then by HDFC bank. The main reason behind this
response is that the J&K bank was the only bank in the state operating from the very
beginning. Thus the customers who were in need of loans approached it and got their loans
sanctioned. HDFC is lagging behind as they were not in that segment but now they have
also started to advance their operations and are providing loans at affordable costs. The
interest charged on the agricultural loans is simple interest which gets lowered with the
payment of the remaining dues year after year. The offering of loans is also followed by
after services which satisfy a customer by making him realize that the bank cares for them.
4. Do you think that agricultural loans should be prime concern of the banks keeping
the occupation of the valley in view?
a. Yes
b. No
Ans: -
71 | P a g e
Analysis:From the above mentioned data it is clear that a majority of people in the state are of the
opinion that the agriculture should be given prime importance keeping the occupation of
the people of the state in view. Since a majority of the people are dependent on agriculture
and its allied activities, therefore it is must for them that they get some sort of help in
establishing their business which could be possible only if the Banks would come to their
rescue and help them in the need of hour.
5. According to you, are the agricultural loans offered by different banks beneficial?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
Ans:72 | P a g e
Analysis:As per the views of the people obtained, it is concluded that the agricultural loans offered
by the banks are really beneficial for the people. The statistics obtained reveal that the
people really admire banks for providing timely assistance to them in the form of loans.this
trend may be justified by having a look on the graph bars which show the number of people
who are actually ion favour of the same. The loans are used by the customers to finance
their agricultural requirements and with the time they pay it back with the interest they had
accepted it.
73 | P a g e
6. Which characteristic of banking attracts you most while applying for loan?
a. Low interest
b. Hassle free.
c. Convenience d. Co-operation of
staff
Ans:-
74 | P a g e
Analysis:From the above mentioned statistics it can be concluded that low interest has got the
maximum number of votes followed by the hassle free and convenience like traits. The
main requirement of the people of the state seems to be that of the low interest that should
be charged on the loan amount they borrow from the bank. People often tend to return the
loan amount after a stipulated time but occasionally they fail to do so because of the
interest charged on the amount. If the interest would be charged less, then the people would
feel it easy to return the said amount. Further the hassle free process of obtaining loans is
also a prime concern about the people. They do not want to sit in lines , waiting for hours
for their turn, what in fact they want is prompt response to their requests.
75 | P a g e
7. Rank the banks in terms of their products and services and the following
parameters.
(Infrastructure, Customer Service, Promotional Schemes, Customer relationship
mgt.)
a. J&K
76 | P a g e
b.
HDFC
c. PNB
d. SBI
Rank 1 ---------------------------Rank 2 ---------------------------Rank 3 ---------------------------Rank 4 ---------------------------Ans: -
Analysis:From the above data, it may be stated that the people favor J&K bank more than others in
terms of the stated parameters. The main reason for the above mentioned choice is the
convenience factor that the J&K bank offers to its customers. It is located in every nook
and corner and provides services that others are still to offer. Further the J&K bank has its
roots from the very beginning so, the customer base is very large and ever increasing. The
globalization of the bank has paved way to its rapid growth and the ease the customers get
by working with a bank that is globalised and is accessed everywhere. The core
competency of the J&K bank lies in its vast structure that offers a diversified and
technologically modified services and products.
77 | P a g e
8. On the basis of above mentioned parameters which bank do you consider most
appropriate while applying for loan?
a. J&K
b. HDFC
Please specify why
Ans:-
78 | P a g e
c. PNB
d. SBI
Analysis:All the respondents preferred their own banks due the relationship which they shared over
years. They were of the opinion that their bank would consider their wants and desires and
would surely work for their benefit. None of the respondents liked to switch over to any
new bank for meeting its requirements which support the banks motive for keeping its
customers with it and serving them profitably.
9. Are you satisfied with the way the products and services of agricultural importance
are delivered by your preferred bank?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
Ans:- a= HDFC Chosen customers, b= J&K bank chosen customers, c= PNB chosen
customers, d= SBI chosen Customers
79 | P a g e
(a)
(b)
(c)
(d)
Analysis:Out of the graph plotted above, the maximum numbers of customers that are satisfied with
their banks offering belong to HDFC Bank where as the lowest number of satisfied
customers belong to J&K bank. This is because of the reason that the loan applying
procedure of the J&K bank is very cumbersome. The customers have to wait for months in
getting their bill passed for required materials. Further the documentation process is also
not upto mark and the documents often get lost on the way to final approval. In case of
HDFC bank, the bank is constantly striving hard in meeting its customers day to day
requirements and a file of the materials required by the customer is made at the time of the
sanction of the loan. This makes the customers feel more secure as they would get each and
every thing they demanded and at the right time. Thus, the maximum satisfied customers
belong to the HDFC bank which is revealed from the statistics mentioned above
80 | P a g e
10. Suggest any change in your banks offering in terms of products and services and
the policies and terms used by banks?
Ans:- Combining all the responses that I have received, it may be brought into light the
people of the state want a change in the interest rates on which the loans are being offered.
Further the cumbersome policies must also be eliminated so as to lift the extra burden that
the banks make on the people. The policies and guidelines must be formulated keeping the
living standards of the people in view. Also market surveys should be done to take account
of the needs that the customers might encounter witin the due course of the time.
81 | P a g e
11. Would you like to be in a long term relationship with your bank?
a. Yes
b. No.
82 | P a g e
(a )
(b)
(c)
(d)
Analysis:As is evident from the above mentioned graphs, the customer loyalty resides more with the
HDFC bank because of the constant and persistent care the bank takes in serving its
customers. It resorts to surveys, organizes meetings with its customers and often asks for
their responses regarding certain issues which makes its customers more loyal and in turn
they want to stay with their bank for prolonged period. Further the bank also listens and
responses its customers in a vey polite and respectful way which creates a positive image of
it in their minds.
83 | P a g e
12. Are the staff members co-operative and do they possess sufficient knowledge about
the policies and the products and services offered by the bank?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
84 | P a g e
(a)
(b)
(c)
(d)
Analysis:It is evident from the above mentioned graphs that the staff members of HDFC bank are
both co-operative as well as they possess sufficient knowledge about the schemes that are
being offered. This brings into light that the bank is consistent in providing its customers
with the best offered services and is making each and every effort to avoid
miscommunication among its customers. For this purpose the bank has established a
separate section for those who want to enquire for something and it is the continuous
endeavour of the bank to serve its customers with what is best.
85 | P a g e
13. Would you like to refer your bank name to others in terms of its customer service?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
86 | P a g e
(a)
(c)
(b)
(d)
Analysis:The above mentioned graph reveals that the customers belonging to HDFC bank would like
to suggest others of working with this bank. This is due to the fact that the customers are
getting each and every possible help and products and services that they need in their day
to day life. Further the bank keeps them updated with its latest offerings which might have
something to do with the customers daily needs. The bank also takes certain responses on
a number of issues related to its working, and the way operations need to be handled,
which creates a positive sense in customers.
87 | P a g e
14. As per you what should be the medium of communication for your bank to increase
its public visibility?
a. Print media
b. Web
c. Radio
d. Any other
88 | P a g e
(a)
(b)
(c)
( d)
Analysis:-Radio as indicated by the HDFC customers followed by the print media should
be the medium of communication to increase the public visibility of the concerned bank.
The state of J&K is comprised of 22 districts which has a population of about 1.25crore.
But each and every district is not so advanced in terms of education. Keeping the
educational status of people in view, it might be a good way to publicize through print
media, but still majority of the people in the state listen to radios which is thought of as a
cheaper way to communicate the desired information. Various beneficial programs are
broadcasted through radio sets to educate the farmers about how to increase their crop
production.
89 | P a g e
15. Are you satisfied with the amount of land hold by the bank as mortgage and does
your bank fairly values your land?
a. Yes
b. No
90 | P a g e
(a)
(c)
(b)
(d)
Analysis:The Mortgaged land is not being fairly valued by any of the banks. The customers are
continuously stressing to review the mortgaging procedure which the bank authorities are
taking for granted. The customers are being made to mortgage land that is twice of the
amount which is to be taken as loan, but on the other side there is a varying pattern in
valuation of the land. So a contradiction arises about the valuation of the land
91 | P a g e
16. Does your banks location play an important role in your choice of bank?
a. Yes
b. No.
92 | P a g e
(a)
(b)
(c )
(d)
Analysis:The convenience factor does not play a very crucial role in the selection of the desired
bank. As in indicated by the graph about 72.50% people do not find it necessary that the
convenience matters to them. What matters is the service and the way the operations are
performed. The customers are willing to travel far distances if their relationship with the
bank is worth it. But for the HDFC and PNB customers the convenience matters as is
evident from their votes.
The convenience in terms of location is important for them in
choosing their desired banks, which will help them in reaching to their intended
destinations with ease and comfort.
93 | P a g e
5.2 Car Loan

1) Q.No 1:- What is your occupation?
a) Employee. b) Professional. c) Student. d) Self Employed
(a)
94 | P a g e
(b)
(c)
(d)
As per the graphs, the maximum numbers of government employees are working with J&K
bank, it helps the bank to minimize the risk of default by the borrower. On the other hand
the number of professionals working with SBI bank is more followed by HDFC bank.
2) What is your annual income?

50000 to 1 lakh. b) 1 lakh to 4 lakhs c) 4 lakhs to 8 lakhs d) Above 8 lakhs
(a)
95 | P a g e
(b)
( c)
(d)
As suggested by the above mentioned graph most of the respondents fall under the annual
income basket of 1 lakh to 4 lakh, out of which most of respondents are customers of
HDFC bank and J&K bank is on the next position. It further reviles that all these
respondents are having enough money to repay the borrowed money which reduces the
default risk to the bank.
3) What is your age group?

a) 20 to 30 years b) 30 to 40 years c) 40 to 50 years d) above 50
96 | P a g e
(a)
(b)
(c)
(d)
Age is considered one of the important factor in providing finance to the customer as per
the above mentioned data most the respondents fall under the age group of 30-40 years,
most of the respondents under this age group are working with PNB which helps the bank
in having well reputed and responsible customers.
4) Are you aware about various car loan schemes offered by various banks?
a) Strongly agree b) agree c) neutral d) disagree e) Strongly disagree
(a)
97 | P a g e
(b)
(c)
(d)
From the above mentioned data, it is clear that the HDFC bank customers are leading in
awareness about loans. As more and more customers get aware about the different loan
schemes they automatically get added to the customer base of the bank which is the prime
concern of HDFC bank.
.
5) As per you does the financing of cars by banks really beneficial for common
people?
(a)
98 | P a g e
(b)
(c)
(d)
It is concluded from the above data that the financing of cars is really beneficial for the
people. From the above most of the customers of HDFC bank aspirated the car loan facility
provided by the bank which helps the bank to attract more customers due to the easy and
flexible schemes, after that most of the customers of SBI aspirated the financing of cars.
6) Do you own a financed car and with which bank?

a) YES
b) NO
(a)
99 | P a g e
(b)
(b)
(d)
From the above mentioned data it is reviled that there is approximately 50-50% of the
respondents that own a financed car, which provides a good opportunity for the banks to
provide a preferred finance scheme to the customers for satisfying their need. So there is a
cut throat competition among banks to tap the unserved customers or who do not own the
financed car.
7) If No, With which bank you would like to avail finance facility?
a) HDFC bank b) J&K bank c) PNB d) SBI
(a)
100 | P a g e
(b)
(c)
(d)
As per the collected data those customers who do not own the financed car they preferred
to avail the facility from the banks with which they are already working, it further reveals
loyalty of the customers and their satisfaction level which stands witness of their banks
performance.
9) Through which medium you came to know about this scheme?

a) Print Media b) Web based c) Radio d) television
(a)
101 | P a g e
(b)
(c)
(d)
Radio and television as indicated by the HDFC customers followed by the J&K bank
customers should be the medium of communication to increase the public visibility of the
concerned bank, as indicated by the customers these two medium of communication should
be followed because most of the customers came to know about the scheme through these
mediums of communication.
10) Does your bank keep you updated with their beneficial offers regarding car loans?

Ans:- a= HDFC Chosen customers, b= J&K bank chosen customers,
c= PNB chosen customers, d= SBI chosen Customers
(a)
102 | P a g e
(b)
(c)
(d)
Most of the customers accepted that their respective banks keep them updated with
the beneficial offers but out of all the respondents J&K bank customers were most
satisfied followed by HDFC bank. This will help the bank in creating long term
relation with their customers.
11)
Is the scheme offered by your preferred bank flexible and convenient?
a)
Strongly agree b) agree c) neutral d) disagree e) Strongly disagree
(a)
103 | P a g e
(b)
(c)
(d)
As concluded from the above mentioned data maximum number of customers of J&K bank
appreciated that car loan scheme offered by their bank is flexible and convenient on the
other hand most of the customers of HDFC bank appreciated the car loan scheme of their
bank. It further reviles who cooperative are the staff of the banks are.
12) Are you satisfied with the services offered by your preferred bank?
a)

(a)
104 | P a g e
(b)
(c)
(d)
As per the collected data out of all the respondents HDFC banks respondents where more
satisfied with the services offered by the bank, which is followed by SBI. The customers
are being provided with appropriate information about the different schemes offered by the
banks which increases their level of satisfaction.
13) Rate your satisfaction level

a) 0 -30% b) 30 50% c) 50 -70% d) 70 100%
(a)
105 | P a g e
(b)
(c)
(d)
As per the collected data the satisfaction level among customers of SBI bank is more than
other banks followed by HDFC bank, from this we came to know how well these banks are
serving their customers and maintaining long term relations with them.
14) Is the amount of margin money kept by your preferred bank fair enough?
(a)
106 | P a g e
(b)
(c)
(d)
From the above collected data we came to know that customers of HDFC bank are more
satisfied with the amount of margin money kept by bank, the margin money is being fairly
charged by any of the banks. The customers are being made to pay near about 20-25% of
the amount financed. arises about the valuation of the land
15) Does the banks location affect your choice for any particular bank? Keeping the far
end customers in view
a) YES
b) NO
Ans:a= HDFC Chosen customers, b= J&K bank chosen customers, c= PNB chosen customers,
d= SBI chosen Customers
107 | P a g e
(b)
(c)
(b)
(d)
The convenience factor play a very crucial role in the selection of the desired bank. As in
indicated by the graph maximum number of people find it necessary that the convenience
matters to them. But for the HDFC and PNB customers the convenience matters as is
evident from their votes.
Chapter 6
108 | P a g e
6.0 Findings.
The study entitle Customer Satisfaction based on the Comparative analysis of loan
procedures followed by different banks has been undertaken with the objective to analyze
and interpret the customers satisfaction level associated with each bank. The analysis of
the banks was undertaken with the help of the benefits associated with the loan procedures
that different banks follow which helped to determine why and how a customer was
satisfied with a particular bank. May be it is because of the services, co-operation of the
staff or the banks ability to come up with various schemes which were the need of hour for
their customers and are important tools to attract them.
In general, the banks have achieved tremendous progress over the years. All the
banks have healthy financial performances. But the bank who leads all with its products
and services is HDFC bank. Due to the sophisticated technology and the use of IT based
network, the bank has worked wonders by fulfilling all its customers desires. The bank
109 | P a g e
has been able to achieve heavy growth across multiple parameters, including customers
acquisition, geographical spread, business volumes and revenues.
The major advantages that HDFC bank has over all others are: 1) HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank's branches have online connectivity,
which enables the bank to offer speedy funds transfer facilities to its customers.
2) The Bank's business is supported by scalable and robust systems which ensure that the
clients always get the finest services that are offered.
3) HDFCs Good Governance is a source of competitive advantage and a critical input for
achieving excellence in all pursuits.
4) The banks publicity is also worth mentionable. It has worked a lot to create public
awareness which gets reflected from its ever increasing customer base. The bank also offers
a variety of beneficial schemes keeping the needs of the people in view and working on the
same to bring dreams into reality.
5) The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People. These will definitely help the bank in achieving what other banks
cannot.
110 | P a g e
6.1 CONCLUSION:As we observe the trends in Indian financial sector is changing rapidly through innovation,
dependability of loans and advances has also increased and much awareness of this concept
has been found.
Loans and advances have become the important source of raising the finance among the
individual, corporate as well as for the higher organizations. A secured business loan can be
taken for a variety of purposes like diversification, research and development or to buy
plants and machineries.
The advantage with loans is that you can design your repayment period as well as monthly
installments according to your financial capacity. A loan comes at a lower interest rate
when compared with other business loans. To be competitive and successful in modern
corporate world, constant capital flow is essential. Whether to expand your business or to
relocate your production unit to some other place for cost effectiveness, you require
finance. Its not always possible to fund them through internal sources.
111 | P a g e
As is revealed from the above mentioned statistics, the customer satisfaction in case of
agricultural loans is maximum among HDFC customers keeping the benefits and the
awareness of the customers in view. They are striving hard and making each and every
possible effort to win the customer by virtue of their technology, hassle free way of getting
loans passed, and the prompt response that the bank gives to its customers. In case of car
loans there is a varied opinion among the people about their satisfaction. It is true that the
numbers of customers that are satisfied with one parameter of the bank are not quite
satisfied with the other one. Among the banks operating, J&K bank customers are most
satisfied but on the other hand, the customers working with HDFC bank are quite satisfied
too with their banks performance as is evident from the satisfaction level that they have
shown above. The margin money kept by the bank is a source of advantage to it. Thus, the
conclusion goes as:
Agricultural loan: HDFC customers most satisfied.
Car Loan: J&K bank as well as HDFC bank customers are satisfied with their banks
performance.
6.2 SUGGESTIONS
6.2.1 Suggestions for HDFC bank1) First of all the convenience should be a matter of prime concern as the branches are
located far from each other.
2) Public awareness should be enhanced by making more and more people aware about the
offered products and services.
3) Surveys should be conducted with extreme precision so as to know about the peoples
wants and needs
4) The land for mortgage should be fairly valued so as to come up to the exp[ectations of
the people
5) The staff should be quite courteous and should be well knowledgeable. They must be
able to provide all the required information to the customers
6) Documentation process should be simple and customers should be kept updated through
mobile conversations.
112 | P a g e
7) The interest rate should be set as per the income level of the population concerned.
8) The bank should promote discounts for quick repayment of loan
9) The communication medium should be selected so as to target every class of the society.
10) Strengthen incentives and accelerate results oriented training and communication
program for staff to encourage the use of new technology.
11) Depending upon the market conditions and competition from other financial and non
financial institutions there should be flexible interest rate options available to the
customers.
6.2.2 Suggestions for J&K Bank:1) The documentation process is very hectic which creates problems to the customers. It
should be made hassle free.
2) Proper co-ordination among different sections is lacking. Therefore a customer gets
varying responses from varying people. It must be avoided to create a good atmosphere.
3) Although there is sufficient convenience, but the technology used is not upto date and
the customer has to wait for hours in cue for his turn. It should also be avoided if the bank
has to prosper in real means.
4) Infrastructure should also be improved so that it creates a positive atmosphere in the
bank and the customers feel delighted to work with that bank.
Interest rate should also be kept as per the economic conditions of the people of valley in
view. This will create a sense of positive response among the people towards the bank.
113 | P a g e
5) The communication medium should be chosen keeping the educational status of the
people in view so that each one may be able to interpret the message rightly.
6) The bank should come up with attractive promotional schemes that draws the attention
of people towards them
7) It should immediately shift to latest technology by replacing the old one, this will
improve the quality of services to desired level
8) To ensure better customer satisfaction & maintain higher level of Customer relationship
management, the operational department has to be more effective & efficient.
9) To retain existing customers means offering the best scheme. This Would automatically
attract new customers
6.2.3 Suggestions for PNB:1) More and more branches should be opened so that the people can reach easily to their
preferred bank.
2) Local staff should be recruited so that they might make good relations with the locals
and close a deal with them.
3) The bank should increase its public visibility in the state as the number of customers is
not as much as the other banks are having.
4) Proper knowledge about the banks products and services should be provided to the
customers from time to time to win them.
5) Proper listening and responding should be there from banks side if it wants to increase
its customer base.
6) Considering customer needs is the most important step which is to be taken as and when
they arise. For tech-savvy customers who may prefer around-the-clock support via the
114 | P a g e
Internet, the company should focus on offering Internet-based support and backing that up
with live support via telephone and/or email
7) In order to ensure its pace in the long run, PNB needs to be prompt in delivering
products and services to its customers.
8) There should be no compromise in service quality and the products offered.
9) New product or service launches should be accompanied by an aggressive ad campaign,
which surely will pull new customers to the bank.
10) The Bank should take in to account not only the value of the security offered but also
the character and technical ability of the borrower, their prospects for the industry, the
nature and quality of goods produced, etc
6.2.4 Suggestions for SBI: 1. Communicate with customers so as to know what they want. Distribute surveys, request
feedback, and make it easy for customers to let you know how they feel. It will
definitely build a value in their minds regarding the Banks offerings.
2. SBI needs to explain to front-line staff the importance of being empathetic and listening
to customers' needs. It should empower these staff members to not only deal well with
upset customers on an emotional level but also to provide tangible benefits.
3. The use of local language and the locals in the banks would prove beneficial as the
locals are quite familiar with the trends and traditions among the people. It could surely
help the bank in making its customers.
4. SBI need to make changes by listening to its customers. Then, make the next step and
implement the suggestions.
115 | P a g e
5. The interest rates should be decided as per the income of the people and keeping in
view their varying nature.
6. Convenience should be of prime importance for the bank as the people often prefer
those banks which are convenient and are approached easily.
7. The use of latest technology will drive the bank forward and will increase its customer
base to a large extent.
8. The occasional meet with its customers so as to know what they want and what they
perceive of a product or service to be will surely increase its worth among the people.
9. Incase of any default in loan repayment, the Banks should take the facilities provided
under the Credit Guarantee Scheme which is operated by the RBI, which enables the
Banks of the guarantee facilities to cover a part of their risk. The maximum amount of
loss recoverable under the scheme is Rs. 1 lakhs, which is substantial in relation to the
size of a small unit
10. The Bank should pay more attention for screening the Entrepreneurs and their projects
so that the rapid growth of sick units can be arrested
116 | P a g e
Chapter 7
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:-
NAME OF THE BOOK
NAME OF THE AUTHOR
EDITION
Financial Management
I.M.Pandey
6th
Marketing of banking services
Lewis h. Haney
3rd
Marketing Management
Philip Kottler
4th
Fundamentals of financial management (Authored by vyuptakesh sharan, chapter

16. Page no:230)
117 | P a g e
ANNUAL REPORTS: Annual reports of Jammu and Kashmir bank ltd.

Annual reports of HDFC ltd.
Annual reports of PNB.
Annual reports of SBI.
WEBSITES:i. http://www.jkbank.net
ii. http://www.jammukashmirbank.com
iii. http://www.hdfcbank.com
iv. http://www. sbi.co.in
v. http://www.pnbindia.in
vi. http://www.hdfcbank.com/aboutus/News_Room/hdfc_profile.htm
vii. http://www.jkbank.net/
viii. http://www.jkbank.net/history.php
ix. http://www.moneycontrol.com/stocks/company_info/sector_info.php?
sub_sector=Banks%20-%20Public%20Sector
x. http://www.vital-connections.com/finance_links.htm
xi. http://www.blurtit.com/q764912.html
xii. http://en.wikipedia.org/wiki/Jammu_and_Kashmir
News papers
Economic times 8th July 2012
Greater Kashmir 2nd June 2012
The times of India 7th June 2012
118 | P a g e
The Hindu
Appendix 1:I am a student of Lovely Professional University Punjab. The topic of my research project
is Customer satisfaction based on the comparative analysis of loan procedures followed by
different banks. You are requested to participate in this research by giving your precious
feedback regarding certain questions. The information provided by you would be highly
confidential and would be used only for academic purpose. Thanking to you in anticipation
of a favorable request. Thanks!
1 What is your occupation?
b. Govt. Employee
b. Professional
c. Business
d. Student
2 Are you aware of the different loan schemes offered by different banks?
b. Yes
b. No
3 Have you ever applied for any type of agricultural loan?
b. Yes
b. No
4 Do you think that agricultural loans should be prime concern of the banks keeping the
occupation of the valley in view?
b. Yes
b. No
119 | P a g e
5 According to you, are the agricultural loans offered by different banks beneficial?
b. Strongly agree
b. Agree
c. Neutral
d. Disagree
e.
Strongly Disagree
6 Which characteristic of banking attracts you most while applying for loan?
b. Low interest
b. Hassle free.
c. Convenience d. Co-operation of
staff
7 Rank the banks in terms of their products and services and the following parameters.
(Infrastructure, Customer Service, Promotional Schemes, Customer relationship
mgt.)
b. J&K
b.
HDFC
c. PNB
d. SBI
Rank 1 ---------------------------Rank 2 ---------------------------Rank 3 ---------------------------Rank 4 ---------------------------8 On the basis of above mentioned parameters which bank do you consider most
appropriate while applying for loan?
b. J&K
b. HDFC
c. PNB
d. SBI
Please specify why

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
_______________
9 Are the satisfied with the way the products and services of agricultural importance are
delivered by your preferred bank?
b. Strongly agree
b. Agree
c. Neutral
d. Disagree
10 Suggest any change in your banks offering in terms of products and services and the
policies and terms used by banks?
___________________________________________________________________
___________________________________________________________________
120 | P a g e
___________________________________________________________________
_______________
11 Would you like to be in a long term relationship with your bank?
b. Yes
b. No.
Please specify the reason?

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
_______________
12 Are the staff members co-operative and do they possess sufficient knowledge about
the policies and the products and services offered by the bank?
b. Strongly agree
b. Agree
c. Neutral
d. Disagree
f. Strongly disagree
13 Would you like to refer your bank name to others in terms of its customer service?
b. Strongly agree
b. Agree
c. Neutral
d. Disagree
g. Strongly disagree
14 As per you what should be the medium of communication for your bank to increase
its public visibility?
b. Print media
b. Web
c. Radio
d. Any other
15 Are you satisfied with the amount of land hold by the bank as mortgage and does
your bank fairly values your land?
b. Yes
b. No
16 Does your banks location play an important role in your choice of bank?
b. Yes
b. No.
121 | P a g e
Car loan questionnaire:1. What is your occupation?

a) Govt.Employee. b) Professional.
c) Student.
d) Self Employed
2. What is your annual income?

a) 50000 to 1 lakh. b) 2 lakh to 4 lakhs c) 4 lakhs to 8 lakhs d) Above 8 lakhs.
3. What is your age group?
a) 20 to 30 years
b) 30 to 40 years
c) 40 to 50 years
d) above 50
4. Are you aware about various car loan schemes offered by various banks?
a) Strongly agree
b) agree
c) neutral
d) disagree
e) Strongly disagree
5.As per you does the financing of cars by banks really beneficial for common
people?
a) Strongly agree
e) Strongly disagree
122 | P a g e
b) agree
c) neutral
d) disagree
6.Do you own a financed car and with which bank?

a)
YES
b) NO
7.With which bank you are availing finance facility

a) HDFC bank
b) J&K bank
c) PNB
d) SBI
8. Give reasons for your choice?

--------------- ---------------------------9. Through which medium you came to know about this scheme?
a) Print Media
b) Web based
c) Radio
d) television
10.Does your bank keep you updated with their beneficial offers regarding car loans?
a)
11) Is the scheme offered by your preferred bank flexible and convenient?
a)
12) Are you satisfied with the services offered by your preferred bank?
13) Rate your satisfaction level
a) 0 -30%
b) 30 50% c) 50 -70% d) 70 100%
14) Is the amount of margin money kept by your preferred bank fair enough?
a) Strongly agree
b) agree c) neutral d) disagree e) Strongly disagree
15) Does the banks location affect your choice for any particular bank? Keeping the
far end customers in view
a) YES
123 | P a g e
b) NO
124 | P a g e

Arif Complete

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Arif Complete

Hochgeladen von

Copyright:

Verfügbare Formate

LOVELY PROFESSIONAL UNIVERSITY

Report on Summer Training

Submitted to Lovely Professional University

In partial fulfillment of the

1.1Introduction to loans, and Advances

1.2Background of the study.

1.3Objectives of the study

1.4Scope of the study

1.5Limitations of the study.

Chapter 2( Banking Profiles)

Chapter 3 (Review of Literature)

Review of Literature Contd

Chapter 4 (Agriculture and car loan

4.1.0HDFC Car loans

4.1.1Eligibility for salaried individuals.

4.1.3Eligibility for self employed

4.1.5HDFC Car loans for used cars

4.1.6Eligibility for salaried individuals

4.1.8Eligibility for self employed

4.2.0SBI Agriculture loans

4.2.4SBI car loans

4.3.0PNB Agriculture loans

4.4.0PNB Car Loans

4.5.0J&K bank Agriculture loan

4.6.0J&K bank Car loans

4.6.5Max. loan amount

4.6.6J&K bank Used car Loan

4.6.10Max. loan amount

Chapter 5 (Data analysis)

Chapter 6 (Findings, conclusion,

6.2.1 for HDFC bank

6.2.2 for J&K bank

6.2.3 for PNB

6.2.4 for SBI

MBA is stepping stone to management career. In order to develop a healthy

industrialization, agriculture is the backbone of the Indian economy. As Mahatma

A bank is a lawful organization, which accepts deposits that can be withdrawn on

iv. It also facilitates import export transactions.

v. It helps in national development by providing credit to farmers, small-scale

1.2 Background of the study.

1.3 Objectives of the study

The major limitations are

Defining the objectives of the study

Framing of questionnaire keeping objectives in mind (considering

Feedback from the respondents

Conclusion, findings and suggestions.

Research as a process involves defining problems, hypothesis, formulation and

Null Hypothesis: There is no necessity for analyzing the customer satisfaction

The research design used in this project is a descriptive design.

Probability and Non Probability Sampling,

I have used convenience sampling technique. Convenience sampling is used in

A questionnaire is a research instrument consisting of a series of questions and other

Methods of contact: Telephone, personal interview.

Methods of data collection

It acts as a reference for the present study.

At times it may be the only source of data.

SOURCES OF SECONDARY DATA

Data collection methods can be classified as follows

2.0 Housing Development Finance Corporation Limited (HDFC)

2.0.1 The challenge:

The sheer size and

In a milestone transaction in the Indian banking industry, TimesBank Limited

438 branches spread over

200 cities across the country. All