PROJECT REPORT

ON
CONSUMER PRECEPTION TOWARDS INTEREST
RATES OF KCC BANK IN GAGGAL REGION

SUBMITTED IN PARTIAL FULFILMENT FOR THE

AWARD OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

OF
GOVT. POST GRADUATE COLLEGE DHARAMSHALA
By
ABHISHEK KARDVAL
Reg. No. 15-DBBA-03

UNDER THE GUIDANCE OF

MISS. SUJATA KAUNDAL
 PREFACE
Someone has rightly said that practical experience is better for closer.
To the real world then mere theoretical exposure. The practical
Experience helps the students view the real business world closely.
Which is turn widely influences their perceptions and arguments their
understanding of the real situation.
The phenomenon of creation is along process requiring, energy, time
and Dedications as well as skill and experience of those people engaged
in task.
Ultimately in the outcome as the final form of embodiment of the
Creations vision. Research work constitutes backbone of any program.
A management student has do research work do quite frequently during
his entire span. The project is prepared on the basis of awareness of
KCC Consumer Perceptions towards interest rates in the market and
understanding the requirement of proper guidance to customers.
Now, I am feeling the great pleasure in delivering this project because of
a better skill of handling the situation and customer understanding.
 ACKNOWLEDGEMENT
Exchange of ideas generates a new object to work in a better way. Whenever a
person is helped and cooperated by others, his heart is bound to pay gratitude and
obligation to them.
Every work requires assistance and support, without which no work can be
completed in completing the present project file, I was also in need of support and
assistance and I was supported by all concerned.
This project is a result of efforts, time and skills contributed by a number of
people. I would like to take this opportunity to thanks all of those who have
worked towards successful completion of this project report.
I would like to express my gratitude to all my loved ones both home and outside,
who have supported and encouraged me through my project report especially
through my rough and tough times.
I also owe a special gratitude to god for the grace and ability to complete this
project.

Abhishek Kardval
 DECLARTION
I, hereby certify that the work embodied in the summer training project
CONSUMER PERCEPTION TOWARDS INTEREST RATES OF KCC BANK
IN GAGGAL for the partial fulfillment of Degree of Bachelor of Business
Administration program of GOVT. POST GRADUATE COLLEGE
DHARAMSHALA is an original work of mine and data provided in the study is
substitute to the best of my knowledge.
I have not submitted this report to any other institute or University for award of my
other degree.

:- ABHISHEK KARDVAL
 GUIDE CERTIFICATE
It is certified that the Project Report titled CONSUMER PERCEPTION
TOWARDS INTEREST RATES OF KCC BANK IN GAGGAL
Being submitted by ABHISHEK KARDVAL student of BBA 5th semester is
genuine work carried out under my supervision and guidelines.
This Project Work is the partial fulfillment of the requirement for the degree of
bachelor of Business Administration program of GOVT. POST GRADUATE
COLLEGE DHARMSHALA.
 EXECUTIVE SUMMARY
I have done my Summer Internship project from KCC BANK GAGGAL (H.P)
During my Summer Internship Project. I implemented many concepts of finance &
marketing in the real life situation.
This project work helped me to apply theoretical knowledge into practical aspects
on collected data which was a worthy experience and during the discussion with
company guide I realized that how important the project report is for the company
and me.
I also realized how teamwork goal orientation and managing interpersonal
relationships are integral part of professional life; therefore this will definitely help
me to develop qualities required for executives. In addition, I understood products
of my company and its targeted customers. Also I got information what are the
basic categories of bank products.
The main purpose of this project work is to analyze the customer relationship
management services provided by the KCC bank and to check the level of
satisfaction, towards this service among the customers. Consumer perception has
become challenging issue for every financial institution as every organization is
trying to provide services superior to the competitors.
We did our research at the KCC bank, branch GAGGAL (H.P) and the
information we received there, along with the secondary research, helped us in
strengthening our knowledge base regarding the topic.
A questionnaire was a chosen as a data gathering tool because given the time and
cost, restraints, this proved to be the most effective method.
In general customers give the following suggestions like customized products,
more number of customers, how service provide the kcc bank in the customer.
Most of the customers were satisfied with the overall services of the bank and
todays scenario they recommend to choose KCC bank.

Index
CONTENTS
 CHAPTER 1

Introduction of study:

Bank
History of KCC bank

CHAPTER 2
Company profile:
Mission and vision

Board of directors

Corporate tie up

Interest rates

TER 3 CHAPTER 3
Literature review

CHAPTER 4
Research methodology

Objectives of study

Need and scope and limitation

CHAPTER 5
Data Analysis and interpretation

CHAPTER 6
Conclusion

Recommendation
Limitations of study

Bibliography
 CHAPTER 1
INTRODUCTION
Bank
A bank is a financial institution that accepts deposits from the public and
creates credit. Lending activities can be performed either directly or indirectly
through capital markets. Due to their importance in the financial stability of a
country, banks are highly regulated in most countries. Most nations have
institutionalized a system known as fractional reserve banking under which banks
hold liquid assets equal to only a portion of their current liabilities. In addition to
other regulations intended to ensure liquidity, banks are generally subject to
minimum capital requirements based on an international set of capital standards,
known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the prosperous
cities of Renaissance Italy but in many ways was a continuation of ideas and
concepts of credit and lending that had their roots in the ancient world. In the
history of banking, a number of banking dynasties notably, the Medicis, the
Fuggers, the Welsers, the Berenbergs and the Rothschilds have played a central
role over many centuries. The oldest existing retail bank is Banca Monte dei
Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.
TYPES OF BANK
 HISTORY OF COOPERATIVE BANKS
The commercial Banks were operating for the years, but it was being felt that these
banks were not paying necessary head to the credit requirements of common masses.
Further the commercial banks, were mainly concentrating their business in the urban
area and the banking facilities to rural people were not available consequently, the
Co-operative Banks came into picture after 1904. Himachal Pradesh has the
distinction of having first Coop. Society Registered in India. Cooperative were
primarily visualized as specialized agency for financing the credit requirement of
rural people in the country particularly agriculture
All the branches of the bank remain open for six days a week with full day
banking service on Saturday. For the convenience of its customers it is having
agency arrangement with HDFC Bank which enables the bank to issue Demand
Drafts on HDFC branches across the country, to arrange collection of out-station
cheques within a week or ten days. Bank is also maintaining C-SGL A/c with
HDFC and also participates in the non-competitive bids of RBI for the purchased
of Govt. Securities.

For its employees bank has introduced several good schemes like cover of
med claim insurance, covering expenses up to 2.00 lacs requiring
hospitalization of the employee, his or her spouse &upto two children.
Facility of housing loan up to ten lacs is also available for the staff.

It has in place well defined service rules which ensure career growth to its
employees. It also celebrates annual day in which awards for best branch,
workers etc. are also given.

Bank has also introduced welfare schemes for its employees which
includes grant of Rs.1 lacs on death and on permanent disability on duty.
Additional reimbursement is also given in case of serious deceases like
heart, kidney transplantations, cancer, T.B. etc.

In order to improve the knowledge of the staff guest lectures are also
arranged on important topics related to the banking activities from time to
time.
COOPERATIVE BANKS: The word cooperative stands for willing to work
together in the production and marketing of goods, it is profitable to both producer
and consumer to avoid middlemen. If, for instance, farmers can set up their own
markets instead of sending their produce to a wholesaler, they can sell at a price
that includes only their costs and a fair profit: Additional wholesale and retail costs
are avoided, and prices to the consumer are kept relatively low. In order to take
part in this kind of direct productionmarketing enterprise, people have formed
cooperatives these are voluntary associations of either producers or consumers who
band together for the group members' benefits.
 CHAPTER 2

COMPANY PROFILE

The Kangra Cooperative Bank Ltd. started in a very humble way as a small
Thrift/Credit Society in March, 1960 by a few friends of Distt. Kangra of Himachal to
help out the people of Himachal residing in Delhi to uplift their economic conditions
and tide over the financial hardships. Dedication, sincerity and honesty of these
members/associates brought rich fruits and this Thrift/Credit Society grew up into a
big society within twelve years after its formation and successful running was
converted into a primary urban Cooperative Bank in 1972 by RBI and was permitted
to carry out banking activities including acceptance of deposits from public (non-
members) by opening their Saving, Current and RD A/cs. Twenty three years there
from in June 1995 it was granted a license to carry out the banking business by the
Reserve Bank of India. Thereafter, it was granted license to open branches and
consequently six more branches were added in February, May, December 1996, June
1998 ,October 2008 and the last one in July 2009. In May 1970 it purchased
Paharganj building and reconstructed the same in 1993. In October, 1997 it purchased
the present premises at Janakpuri to set up administrative and HO. Central accounts
and Personnel department are functioning from this building. It has a board meeting
room. One branch also functions here. The main branch along with its service
branch, arbitration and recovery department is situated in its own three storied
building at Paharganj. It purchased another Building in April 2008 At Jagatpuri
where its one of the existing Branches has already been functioning.
 PROMOTER

KCC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. , the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well. Over a million dwelling units.
KCC 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, KCC was ideally positioned to
promote a bank in the Indian environment.

Mission & vision

Mission/Targets of the bank is to help the self-helped groups by providing them

loans at low rate. Providing the education to the workers/employees of the
cooperative societies.Managing the financial status of the cooperative societies.
Connecting all the branches with the core banking system (C.B.S.) to provide the
online banking facility till 2010.

Installing the A.T.M machines in all the branches.

1. Achieving the schedule status for the bank.

2. Providing the retail banking to the customers with the help of Information
Kiosk.
3. Providing the SAMAGR banking facilities to the customers in one branch.
 Vision:

1. To providing the loans to the cooperative societies to establish the viaduct

pariyojana.
2. Starting the new schemes for the cooperative societies to recover the
N.P.A.(non-performing assets )
3. Opening the education center for cooperative societies to improve/increase
the business through giving them proper training & suggestions.
4. Providing the loans for new schemas time to time.
5. Repairing the plans for encouraging & awarding the employees of the Bank.

BOARD OF DIRECTORS

Sr. Name of the Designation

No.

1. Shri Jagdish Sapehia Chairman

2 Shri Kuldeep Singh Pathania Vice Chairman

3 Shri Ajit Paul Mahajan Director

4 Shri KeshavKorla Director

5 Thakur AtamPrakash Director

6 Smt. PremLata Thakur Director

7 Shri ChheringTashi Director

8 Shri Karnail Singh Rana Director

 9 Shri Manohar Lal Director

10 Shri Rajeev Gautam Director

11 Shri Jaswant Singh Rana Director

12 Shri Lekh Raj Kanwar Director

13 Shri Sunil Dutt Director

14 Shri Sanjeev Rana Director

15 Shri Hiteshwar Singh Director

16 Shri Prakash Chand Director

17 Shri Anil Verma Director

18 Shri Yog Raj Director

19 Shri Bodh Raj, Ex MLA Director

20 DRCS Director

21 Shri Dinesh Kumar Sharma Director

22 Shri PC Akela Managing Director

CORPORATE TIE UP

"Sometime we have to reach out in new directions in order to change and grow"
 National Insurance Company Limited
The Bank has signed a MOU with "National Insurance Company Limited" for
Corporate Agency Arrangement to provide non-life Insurance Services to
Customers and General public along with the Banking Services at a single window
through various branches of the Bank.

Kotak Mahindra, Old Mutual Life Insurance Limited

We are pleased to inform you that Bank has entered into a Referral Agreement
with Kotak Mahindra, Old Mutual Life Insurance Limited. Under the agreement,
the Bank will refer its customers and prospective customers through its branches to
the insurance company for distribution and providing its life insurance products
viz. SukhiJeewan and Eternal Life.

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

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

AXIS, HDFC and ICICI Bank

The Bank has also corporate tie-up with AXIS, HDFC and ICICI Bank for
remittance and collection purposes.
 OBJECTIVES
Cooperative banks have become important parts of many financial systems, with
attendant potential financial stability issues. Yet the ways they different from
commercial banks are largely ignored by financial regulators, and cooperatives still
operate with governance structures designed for small, community-based entities.
Cooperative banks arose in 19th-Century Europe as small institutions serving the
financial needs of local customers. But they have grown and proliferated, in some
cases becoming more dominant in the retail sector than their commercial bank
counterparts.

In France, for example, cooperatives control nearly 60 percent of bank branches

and 25 percent of banking system assets. In Austria, they account for nearly 53
percent of branches and about 35 percent of assets, and in Germany about 40
percent of branches and 10 percent of assets. In terms of consolidated equity, five
of the 25 biggest banks in Europe are cooperatives. Although they are particularly
numerous in Europe, their presence is growing worldwide.

Yet, cooperative institutions operate largely under the radar of financial regulators,
in a prudential framework generally designed for commercial banks. For example,
the 2004 Basel II Revised Capital Framework, aimed at preserving capital
adequacy in banks, does not mention cooperatives, and the accord's third pillar,
market discipline, has significantly reduced effectiveness for cooperative banks.

To bring stable returns

How cooperatives are governed
Measuring Consumer Surplus
No final owners
Reduced market discipline
Financial stability
Mutual support mechanisms
Policy implications
 DEPOSIT PRODUCTS

Saving Product Interest Type Payable Frequency

Saving Bank Compounded Half Yearly
Account
Fixed Deposit Simple Monthly/Quarterly/Half
Yearly/On Maturity
Term Deposit Compounded Monthly/Quarterly/Half
Yearly/On Maturity
Recurring Deposit Compounded Monthly

Interest Rates on Deposits w.e.f. 01/01/2017

Deposit Scheme Public (%) Societies (%) Sr.Citizen (%)

Saving Bank Account 4% 4% 4%

(w.e.f. 15/09/2015)

Term/Fixed Deposits

7 days to 14 days 4.5% 4.5% 4.5%

15 days to 45 days 5% 5% 5%

46 days to 90 days 6% 6% 6%

91 days to 364 days 6.5% 6.5% 6.5%

1 year to less than 2 years 6.5% 7.00% 7.00%

2 years and upto 3 years 6.45% 6.95% 6.95%

3 years and upto 5 years 6% 7% 6.5%

 5 years and upto 10 years 6% 7% 6.5%

Recurring Deposit

1 year to less than 2 years 6.5% 7.00% 7.00%

2 years and upto 3 years 6.45% 6.95% 6.95%

3 years and upto 5 years 6% 7% 6.5%

5 years and upto 10 years 6% 7% 6.5%

In case of Fixed Deposit Schemes, the customer has the option to withdraw the
Interest Amount as per the agreed frequency. In case of Term Deposit & Recurring
Deposit Schemes the Total Matured Amount will be payable on maturity only with
a option to discontinue the Deposit subject to penal clauses.
 LOAN PRODUCTS
Co-Op. Societies Individuals
Agriculture Agriculture
Non Farm Sector Non Farm Sector
Personal Vehicle Personal Vehicle
Weavers/Industrial/Housing Housing
Cash Credits Cash Credits

Interest Rates on Loans & Advances w.e.f08/03/2017

S.N CATEGORY SOCIET PUBLI

O Y C

1 KISAN CREDIT CARD

UP TO RS.300000 6.00% 7%

ABOVE RS.300000 6.00% 10.50%

2 MT AGRICULTURE& ALLIED
ACTIVITIES(ALL AGRICULTURAL
RELATED ACTIVITIES)

UPTO RS.50000 9.75% 10.25%

ABOVE RS.50000 10.00% 10.50%

3 TRACTOR 10.25%
MECHNIZATION/IRRIGATION
4 SHORT TERM LOAN OTHER PURPOSES 10.50% 11.00%

5 CCL/TL SHG

UPTO RS.50000 10.50%

50001 TO RS.200000 10.50%

ABOVE RS.200000 10.50%

6 GCC/ECC/CONSUMER/COMPUTER 12.00%

7 LOAN AGAINST PROPERTY 10.50%

8 LOAN AGAINST FIXED DEPOSITS 1% above 1% above

the rate of the rate
interest of of
deposit interest
of
deposit

9 SECURED LOAN TO INDIVIDUAL 1% above 1% above

the rate of the rate
interest of of
deposit interest
 of
deposit

10 STAFF AT PAR

11 CCL FOR (PDS/FERTILIZER/WEAVER)

UPTO RS.100000 10.75% 11.50%

ABOVE RS. 100000 11.00% 12.00%

12 CCL HYPO TO INDIVIDUAL

UPTO RS.100000 11.75%

1000001 TO 4000000 12.00%

ABOVE 40 LAKH 12.00%

13 CCL PLEGE 12.75% 13.25%

14 SLI AGAINST NSC/KVP/LIC 12.5%

15 SLI TO STAFF AGAINST NSC/KVP/LIC AT PAR

16 PERSONAL VEHICLE LOAN

UPTO 3 YEARS 8.75%

3YEARS TO 5 YEARS 8.75%

ABOVE 5 YEARS 8.75%

17 COMMERCIAL VEHICLE

UPTO RS. 300000 10.25%

ABOVE RS 300000 10.25%

18 CCL FOR TRANSPORT BUSINESS

12.00%

19 TWO WHEELER

FOR GOVT. EMP

UPTO 3 YEARS 11.50%

ABOVE 3 YEARS 11.50%

FOR OTHERS

UPTO 3 YEARS 11.50%

ABOVE 3 YEARS 11.50%

20 SECOND HAND VEHICLES/USER 14.00%
VEHICLES

21 LOAN FOR HOUSE

CONSTRUCTION/REPAIR/PURCHASE

UPTO 5 YEARS 10.10%

ABOVE 5 YEARS TO 10 YEARS 10.20%

ABOVE 10 YEARS TO 15 YEARS 10.25%

ABOVE 15 YEARS 10.50%

22 HIRING OF BANK BUILDING 12.00%

ACCOMODATION

23 NFS/SSI/HOTEL/MOTEL/K&VIB/DIC/OT
HER NPS ACTIVITIES

UPTO 5 YEARS 11.00%

UPTO 10 YEARS 11.25%

UPTO 15 YEARS 11.25%

ABOVE 15 YEARS 11.25%

24 DOCTOR/PROFESSIONAL LOAN

UPTO 5 YEARS 10.25%

 UPTO 10 YEARS 11.00%

UPTO 15 YEARS 11.25%

ABOVE 15 YEARS 11.50%

25 TERM LOAN WEAVERS

UPTO RS.200000 10.00% 10.50%

ABOVE RS.200000 10.75% 11.00%

26 SGSY/SJSRY/SCC/SCAVANGER/SME

UPTO RS.50000 10.50%

ABOVE RS.50000 10.75%

27 EDUCATION LOAN

UPTO RS.400000 10.00%

400001 TO RS.700000 10.25%

ABOVE RS. 700000 11.00%

28 OVERDRAFT 15%
 29 TERM LOAN/CCL TO as per
KAPARD/BOARDS/CORPORATIONS/ICD sanction
P letter

1) Penal interest @2%shall be charged on the overdue amount on all types of

loans. The penal interest will be charged on product/scheme basis and may not be
capitalized.

2) Interest rate of LAFD to societies i.e. 1% higher than deposit will be effective
from 02.03.2016.
 CHAPTER 3
LITERATURE REVIEW
CONSUMER PERCEPTION
In biology, perception refers to the senses that any organism uses to collect
information about its environment. Wade &Tavris (1987) note that the
senses corresponding to the human sense organs have been categorized
at least since Aristotle's time as: vision (our eyes), hearing (our ears), taste
(our tongues), touch (our skin) and smell (our noses). Walters & Bergiel
(1989) continue the biological viewpoint by explaining that according to the
modem outlook, our sense of smell and taste are our olfactory senses due
to the fact that our senses of smell and taste are so closely entwined. They
continue by stating that humans also perceive in a kinesthetic mode (using
muscle sand joints) and in a vestibular mode (through our internal organs).
In consumer behaviour, however, perception refers to much more than just
the biological use of our sense organs. It includes the way stimuli are
interacted and integrated by the consumer.
Although there are numerous definitions in literature explaining
perception from a consumer behavior perspective, the one used by Walters
et al (1989, p. 333) provides particular clarity on the topic:
"The entire process by which an individual becomes aware of the
environment and interprets it so that it will fit into his or her frame of
reference." Walters et al (1989) expand on the definition by stating that
every perception involves a person who interprets through the senses
something, event, or relation which may be designated as the percept.
Vander Walt (1991) adds that perception occurs when sensory receptors
receive stimuli via the brain, code and categorize them and assign certain
meanings to them, depending on the person's frame of reference. A
person's frame of reference consists of a/l his previous held experiences,
beliefs, likes, dislikes, prejudices, feelings and other psychological
reactions of unknown origin. From the discussion it is eminent that the
perception process has long been recognized as the most significant
barrier to effective communication. It is at this point that the sender does or
does not get through to the receiver (Aaker et ai, 1987). since correct
decoding of marketing information hinges on the consumer's perception of
the communication content (Van der Walt, 1991).
A problem though with perception and related studies (Schiffman et ai,
1991) is that two individuals may be subject to the same stimuli under
apparently the same conditions, but how they recognise, select, organise
and interpret them is a highly individual process based on each person's
own needs, values, expectations and the like. Individuals furthermore act
and react on the basis of their perceptions, not on the basis of objective
reality. With this in mind (Schiffman et ai, 1991), it is important that
marketers understand the whole notion of perception and its related
concepts so that they can more readily determine what influences
consumers to buy. The perception process is also complicated due to the
possibility that individuals may be stimulated below their level of conscious
awareness (known as subliminal perception), i.e they can perceive stimuli
without being consciously aware of the stimuli in question. Individuals also
experience a certain amount of risk when making a purchasing decision
and have a limited capacity to process a\l the different stimuli directed at
them. This leads to a selective perception process where individuals will
expose themselves selectively to marketing stimuli, pay selective attention
to these stimuli and then interpret it to conform with previous held beliefs
and attitudes. Only messages conforming to held beliefs will be retained.

Definition: Customer Perception

Customer perception refers to the process by which a customer
selects, organizes, and interprets information/stimuli inputs to
create a meaningful picture of the brand or the product. It is a
three stage process that translates raw stimuli into meaningful
information.

Consumer perception applies the concept of sensory perception to

marketing and advertising. Just as sensory perception relates to how
humans perceive and process sensory stimuli through their five senses,
consumer perception pertains to how individuals form opinions about
companies and the merchandise they offer through the purchases they
make. Merchants apply consumer perception theory to determine how
their customers perceive them. They also use consumer perception
theory to develop marketing and advertising strategies intended to retain
current customers -- and attract new ones
 CHAPTER 4
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying now research is done systematically. In
that various steps, those are generally adopted by a researcher in studying his
problem along with the logic behind them.
It is important for research to know not only the research method but also know
methodology. The procedures by which researchers go about their work of
describing, explaining and predicting phenomenon are called methodology.
Methods comprise the procedures used for generating, collecting and
evaluatingdata.
All this means that it is necessary for the researcher to design his methodology for
his problem as the same may differ from problem to problem. Data collection is
important step in any project and success of any project will be largely depend
upon now much accurate you will be able to collect and how much time, money
and effort will be required to collect that necessary data, this is also important step.

Research Design:
A research design is the detailed blueprint used to guide a research study towards
its objective. It includes all the steps from problem/opportunity identification till
solution to the problem and its implication.

Collection of data:

1. PRIMARY DATAcollected using an appropriate questionnaire and

observing it.

2.SECONDARY DATA- collected from the official records and official

website kccb.in.
Research instrument:
Questionnaire was the research instrument prepared for the purpose of
collection of primary data. Questionnaire designed were of multiple choice.

Sample unit:
Customers of KCC bank.

Sample size:
My sample size for this project was 50 respondents. Since it was not possible
to cover the whole universe in the available time period.

Sampling method:
Sampling method used is Random Sampling.

Tools and techniques:

Pie charts
Bar graphs
Questionnaire
Tables
 OBJECTIVES OF THE STUDY
This project is based on the study of interest rates on lans and deposits of Kangra
central co-operative bank. Objectives of the study are:

The general objective is to gain practical job experience for

flourishing my career.
To gain the experience of the corporate life.
To get the idea about the banking scenario of India.
To know about the consumers perception towards Kangra Central
Co-operative Bank Ltd.
To measure and compare the efficiency of Kangra Central Co-
operative Bank Ltd.
To know satisfaction level of customer from bank lending policy.
To know the market position of Kangra Central Co-operative Bank
Ltd.
To know different type of loans preferred by different sets of
customer.

Relevance of the study:

Banks are in the business of giving several services to its customers. It

accepts deposits, give out loans and provide several other value added
benefits such as phone banking, internet banking, sms banking and
many more.

Banking procedures comprise of all the procedures viz. simple deposit of

cash, loans withdrawal of cash through cash cheque etc. and recovery
procedures. Banking is the procedure of personally connecting to the
customers and deals them individually. Relevance of this project lies in
the fact that it attempts to study banking procedures with special
SCOPE:
KCC Bank Ltd. offers a bunch of products and services to meet the every need of
the people. The company cares for both, individuals as well as corporate and small
and medium enterprises. For individuals, the company has a range accounts,
investment, and pension scheme, different types of loans and cards that assist the
customers. The customers can choose the suitable one from a range of products
which will suit their life-stage and needs. For organizations the company has a host
of customized solutions that range from funded services, Non-funded services,
Value addition services, Mutual fund etc. These affordable plans apart from
providing long term value to the employees help in enhancing goodwill of the
company. The products of the company are categorized into various sections which
are as follows:
Accounts and deposits. Loans.
Investments and Insurance. Payment services.
Cards. Customer center.

LIMITATIONS
Every work has its own limitation. Limitations are extent to which the process
should not exceed. Limitations of this project are:
The project was constrained by time limit of onemonth.
Mindset of people depending upon their age, gender, income etc.
Getting appointment from the concern person was very difficult.
People mind set about the survey was obstacles in acquiring complete
Respondents were very busy in their schedule. So it was very time consuming for
information & positive interaction, them to answer all the questions properlymay
vary.
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION:

A questionnaire was used as the primary source of data collection and the detailed
question wise analysis of the data is given below:-

Q1. What is the age of customers while opening the

account?
AGE NO. OF CUSTOMERS %AGE
Less than 18 years 07 14%
Between 18-35 years 18 36%
Between 35-60 years 15 30%
Above 60 years 10 20%
50
 AGE OF CUSTOMERS

14%
20%

< 18
18-35
35-60
60<
36%
30%

INTERPRETATION :- From above diagram we can see that

14% of customers are less than 18 years of age , 36% of
customers are between 18-35 years of age,30% of customers
are between the age of 35-60 years and 20% of customers are
more than 60 years of age.

Q2. What is your education qualification?

CATEGORY NO. OF %AGE
CUSTOMERS
Under graduate 9 18%
Graduate 23 46%
Post graduate 18 36%
50
EDUCATIONAL QUALIFICATION
50%

45%

40%

35%

30%

25%
46%
20%
36%
15%

10% 18%
5%

0%
UNDERGRADUATE GRADUATE POST GRADUATE

INTERPRETATION:- From above diagram we can see that 18%

of customers are undergraduate , 46% 0f customers are
graduate and 36% of customers are postgraduate.

Q3. What is the occupation of customers?

CATEGORY NO. OF %AGE
CUSTOMERS
Business 15 30%
Profession 10 20%
Service 18 36%
Students 07 14%
50
 14%

30% BUSINESS
PROFESSION
SERVICE
STUDENTS

36%

20%

INTERPRETATION:- From above response it can be seen

that occupation of 30% customers is Business, 20% customers
are professional, 36% customers are employees and 14%
customers are is Student.

Q4. In which bank you have bank account?

CATEGORY NO. OF %AGE
CUSTOMERS
KCC Bank 16 32%
Others 34 68%
50
 %age of customers
70%
64%

60%

50%

40%
32% PERCENTAGE OF
30% RESPONDANTS

20%

10%

0%
KCC BANK OTHERS

INTERPRETATION:- From above response it can be seen

that 32% customers are having their account with KCC bank and
68% customers have their account with other banks.

Q5. Which account do you have in KCC bank?

CATEGORY NO. OF %AGE
CUSTOMERS
Fixed deposits 08 16%
Loan account 05 10%
Savings 15 30%
Others 22 44%
50
 16%

44% 10%

30%

FIXED DEPOSIT LOAN ACCOUNT SAVING OTHERS

INTERPRETATION:-From above diagram we can say that 16%

of customers have fixed deposit, 10% of customers have loan
account, 30% of customers have saving account and 44%
customers have others account in KCC bank.

Q6. . What type of account do you have in KCC

bank?
TYPE NO. OF %AGE
CUSTOMERS
Individual account 26 52%
Joint account 18 36%
Others 06 12%
 50

60%

50%

40%

30%
52%

20% 36%

10%
12%

0%
INDIVIDUAL JOINT ACCOUNT OTHERS
ACCOUNT

INTERPRETATION:- From above data we conclude that 52%

of customers are made their individual account, 36% of
customer are made joint account and 12% are made other
account.

Q7. Why have you open your account in KCC bank?

CATEGORY NO. OF %AGE
RESPONDENTS
Low rate of interest on 12 24%
loan
Savings 24 48%
Locker facility 06 12%
 Others 04 08%
50

%age of customers

8%
12% 24%

low rate of interest on loan

savings
locker facilty
48% others

Interpretation: From above response it can be seen that 24%

of customers have a/c in the bank because of low rate of interest
on loan & 48% of customers have a/c for saving purpose & 12%
of customers have a/c due to locker facility & 8% of customers
have other reasons.

Q8Which type of loan do you want to take?

CATEGORY NO. OF %AGE
CUSTOMERS
Educational loan 04 8%
Home loan 14 28%
Vehicle loan 21 42%
Others 11 22%
 50

%age of customers

8%
22%

educational loan
28% home loan
vehivle loan
others

42%

INTERPRETATION:- From above data we can see that 8% of

customers took educational loan, 22% of customers took home
loan, 42% of customers took vehicle loan and 22% of customers
took other loans.

Q9. Why do you want to take loan from KCC bank?

CATEGORY NO. OF %AGE
CUSTOMERS
Efficient service 10 20%
Convenient location 21 42%
Acquaintance 11 22%
Others 09 18%
50
 %age of customers

18% 20%

efficient service
convenient location
acquaintance
22%
others

42%

INTERPRETATION:- From above response it can be seen

that 20% people prefer services of the bank for opening the
account, about 42% people open account in the bank for the
convenient location, 22% people open account because of
acquaintance with the bank officers and only 18% people open
account because of other reason.

Q10. Are you interested to take loan?

CATEGORY NO. OF %AGE
RESPONDENTS
Yes 21 42%
No 29 58%
50

%age of customers
 60%

50%

40%

30%

20%
58%
42%
10%

0%
YES NO

INTERPRETAION:- From this data we conclude that only 42%

of customers are interested to take loan and 58% are not
interested.

Q11. Are you satisfied with rate of interest?

CATEGORY NO. OF %AGE
CUSTOMERS
Yes 39 78%
No 11 22%
50
 %age customers

no 22%

yes 78%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

INTERPRETATION: From above response it can be seen

that 78% respondents are satisfied with rate of interest. 22%
respondents are not satisfied with rate of interest.

Q12. Are you aware of interest rates on loan and

deposits of KCC bank?
CATEGORY NO. OF %AGE
CUSTOMERS
Yes 22 44%
No 28 56%
50
 100%
90%
80%
70% 56%
60%
50%
40% NO
30%
44% YES
20%
10%
0%
%AGE OF
CUSTOMERS

INTERPRETATION:- From above response it can be seen

that 44% customers are aware of it 56% customers are not
aware of it.
Q13. How long do you have your account in KCC
bank?
TIME PERIOD NO. OF %AGE
CUSTOMERS
Less than 1 year 10 20%
Between 1-3 year 11 22%
Between 3-5 year 15 30%
More than 5 year 14 28%
50
 %age of customers

20%
28%
less than 1 year
b/w 1-3
b/w 3-5
22% more than 5

30%

INTERPRETATION:- From this data we conclude that 20%

of customer have account less than one year, 22% of customers
have account between 1-3 year, 30% of customers have account
between 3-5 years and 28% of customer have account more than
5 years.
Q14. Are you satisfied with the services of KCC bank?
CATEGORY NO. OF %AGE
CUSTOMERS
Yes 37 74%
No 13 26%
50
 %age of customers

no
26%

yes
74%

INTERPRETATION:- This data conclude that 74% of

customers are satisfied with the services provided by bank and
26% of customers are not satisfied

Q15. Are you aware of different terms and conditions

which are very much essential to maintain an account
in KCC Bank?
CATEGORY NO. OF %AGE
CUSTOMERS
Yes 30 60%
No 20 40%
50
 %age of customers

YES
NO

Interpretation: From above response it can be seen that 60%,

respondents are familiar with different terms and conditions
which are very much essential to maintain account with the bank
40% respondents have no idea about it.
 CHAPTER 5
CONCLUSIONS:
KCC Bank, the banking arm of KCC is expected to go
on stream. The bank already has good number of employees on
board and is recruiting personal banker heavily to take the
headcount to many more. It is on the brim of increasing its
customers through its attractive schemes and offer.
The project opportunities provided was to know the
perception of prospective customers in potential geographical
location and convincing them to attract more customers so that
new business opportunities of the bank can be explored.
Through this project, it could be concluded that people are not
much aware about the various products of the bank and many of
them not interested to open an account, to invest money at all.
Majority of the people doesnt know more about the rate of
interest charged on loans and advances and deposits. Majority of
people have more faith in public sector banks as compare to
private banks. Most of the people prefer kcc bank due to their
convenience. Professionals and businessman are more attracted
towards the products and services provided by the KCC bank as
compare to people in services and students. Services was
considered as unsought good which require hard core selling,
but in changing trend in income and people becoming
financially literate, the demand for banking sector is increasing
day by day.
So, at last the conclusion is that there is tough
competition ahead for the company from its major competitors
in the banking sector. Last but not the least I would like to thank
KCC Bank for giving me an opportunity to work in the field of .
I hope the company finds my analysis relevant.
RECOMMENDATION:
Finally some recommendations for the company are as
follows:-
To make people aware about the benefit of becoming a
customer of KCC Bank, following activities of advertisement
should be done through:-
1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.

Other facilities must be providing to the customer:

The bank should provide life time valid ATM card to all its
customers.
Minimum balance for savings account should be reduced from
Rs 5000 to Rs 1000, so that people who are not financially
strong enough can maintain their account properly.
The company should provide a pass book to all its customers.
Make people understand about the various benefits of its
products.
 Company should organize the program in the society, so that
people will be aware about the company and different products
of the bank.
Company should open more branches in different cities.

LIMITATIONS OF STUDY

During my study period although the employee staff member of KCCB

(head office dharamshala) were very co-operative and extended their
full support, but there were following limitations associates with my
study:-

Difficulty in fill up of questionnaire.

Not enough time got to them.

Some responses are not filled up with sincerity by respondents.

It is costly method.
 Efficiency of training is only depend upon the trainer.

Limited questions is asked by respondents in questionnaire.

Sample size is too small to reflect the opinion of the whole

organization.

Training feedback has to be continuous and should be taken from

top management.

Bibliography

www.kccb.in
www.wikipedia.org/j&kbank3
www.wikipedia.org/homeloan