A BRIEF HISTORY OF INDIAN BANKING SYSTEM

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
process.
The government's regular policy for Indian bank since 1969 has paid rich dividends with
the nationalization of 14 major private banks of India. Not long ago, an account holder
had to wait for hours at the bank counters for getting a draft or for withdrawing his own
money. Today, he has a choice. Gone are days when the most efficient bank transferred
money from one branch to other in two days. Now it is simple as instant messaging or
dials a pizza. Money has become the order of the day.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency

Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first
phase the growth was very slow and banks also experienced periodic Failures between
1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the
functioning and activities of commercial banks, the Government of India came up with
The Banking Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was
vested with extensive powers for the supervision of banking in India as the Central
Banking Authority.

PhaseII
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in

the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.

Phase-III
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was
set up by his name which worked for the liberalization of banking practices. The country
is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more importance than
money.
The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have
limited foreign exchange exposure.

Nationalization of Banks in India

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then
prime minister. It nationalized 14 banks then. These banks were mostly owned by
businessmen and even managed by them.

Central Bank of India

Bank of Maharashtra
Dena Bank
Punjab National Bank
Syndicate Bank
Canara Bank
Indian Bank
Indian Overseas Bank
Bank of Baroda
Union Bank
Allahabad Bank
United Bank of India
3

UCO Bank
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Bank of India

Before the steps of nationalization of Indian banks, only State Bank of India (SBI) was
Nationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization of
Seven State Banks of India (formed subsidiary) took place on 19th July, 1960
The State Bank of India is India's largest commercial bank and is ranked one of the top
five banks worldwide. It serves 90 million customers through a network of 9,000
branches and it offers -- either directly or through subsidiaries -- a wide range of banking
services.
The second phase of nationalization of Indian banks took place in the year 1980. Seven
more banks were nationalized with deposits over 200 crores. Till this year, approximately
80% of the banking segments in India were under Government ownership. After the
nationalization of banks in India, the branches of the public sector banks rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.
1969: Nationalization of 14 major banks.
1980: Nationalization of seven banks with deposits over 200 crores.

Bank
A bank is a commercial or state institution that provides financial services, including
issuing money in form of coins, banknotes or debit cards, receiving deposits of money,
lending money and processing transactions. A commercial bank accepts deposits from
customers and in turn makes loans based on those deposits. Some banks (called Banks of
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issue) issue banknotes as legal tender. Many banks offer ancillary financial services to
make additional profit; for most banks also rent safe deposit boxes in their branches.
Despite common assumptions, banks do not create money; banks merely change debt
from one form (loans) to another (banknotes).
Currently in most jurisdictions commercial banks are regulated and require permission to
operate. Operational authority is granted by bank regulatory authorities which provides
rights to conduct the most fundamental banking services such as accepting deposits and
making loans. A commercial bank is usually defined as an institution that accepts both
deposits and makes loans; there are also financial institutions that provide selected
banking services without meeting the legal definition of a bank. Banks have influenced
economies and politics for centuries. The primary purpose of a bank was to provide loans
to trading companies. Banks provide funds to allow businesses to purchase inventory, and
collected those funds back with interest when the goods were sold. For centuries, the
banking industry only dealt with businesses, not consumers. Commercial lending today is
a very intense activity, with banks carefully analyzing the financial condition of its
business clients to determine the level of risk in each loan transaction. Banking services
have expanded to include services directed at individuals and risks in these much smaller
transactions are pooled.

Banks in India
In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target market.

Few of them only work in rural sector while others in both rural as well as urban. Many
even are only catering in cities. Some are of Indian origin and some are foreign players
Major Banks in India

ABN-AMRO Bank
Abu Dhabi Commercial Bank
American Express Bank
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharastra
Bank of Punjab
Bank of Rajasthan
Bank of Ceylon
BNP Paribas Bank
Canara Bank
Catholic Syrian Bank
Central Bank of India
Centurion Bank
China Trust Commercial Bank
Citi Bank
City Union Bank
Corporation Bank
Dena Bank
Deutsche Bank
Development Credit
Indian Overseas Bank
IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
JPMorgan Chase Bank
Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab & Sind Bank
Scotia Bank
South Indian Bank
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Standard Chartered Bank

State Bank of India (SBI)
State Bank of Bikaner &Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
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Bank
Dhanalakshmi Bank
Federal Bank
HDFC Bank
HSBC ICICI Bank
IDBI Bank
Indian Bank
State Bank of Saurastra
State Bank of Travancore
Syndicate Bank
Taib Bank
UCO Bank
Union Bank of India
United Bank of India
United Bank Of India
United Western Bank
UTI Bank
Vijaya Bank

Foreign Banks in India

Foreign banks have brought latest technology and latest banking practices in India. They
have helped made Indian Banking system more competitive and efficient. Government
has come up with a road map for expansion of foreign banks in India.
The road map has two phases. During the first phase between March 2005 and March
2009, foreign banks may establish a presence by way of setting up a wholly owned
subsidiary (WOS) or conversion of existing branches into a WOS. The second phase will
commence in April 2009 after a review of the experience gained after due consultation
with all the stake holders in the banking sector. The review would examine issues

concerning extension of national treatment to WOS, dilution of stake and permitting

mergers/acquisitions of any private sector banks in India by a foreign bank.
Major foreign banks in India are:

ABN-AMRO Bank
Abu Dhabi Commercial Bank Ltd
American Express Bank Ltd
BNP Paribas
Citibank
DBS Bank Ltd
Deutsche Bank
HSBC Ltd

Services Offered By Banks

Although the basic type of services offered by a bank depends upon the type of bank and
the country, services provided usually include:

Taking deposits from their customers and issuing current (UK) or checking (US)

accounts and savings accounts to individuals and businesses

Extending loans to individuals and businesses
Cashing cheques
Facilitating money transactions such as wire transfers and cashiers checks
Issuing credit cards, ATM cards, and debit cards
Storing valuables, particularly in a safe deposit box
Cashing and distributing bank rolls
Consumer & commercial financial advisory services
Pension & retirement planning
Financial transactions can be performed through many different channels:
A branch, banking centre or financial centre is a retail location where a bank or

financial institution offers a wide array of face to face service to its customers
ATM is a computerized telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space without

the need for a human clerk or bank teller

Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages containing
other matter, are delivered to destinations around the world
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Telephone banking is a service provided by a financial institution which allows its

customers to perform transactions over the telephone

Online banking is a term used for performing transactions, payments etc. over the
Internet through a bank, credit union or building society's secure website.

Types of Banks
Banks' activities can be divided into retail banking, dealing directly with individuals and
small businesses; business banking, providing services to mid-market business; corporate
banking, directed at large business entities; and investment banking, relating to activities
on the financial markets. Most banks are profit-making, private enterprises. However,
some are owned by government, or are non-profits.
Central banks are non-commercial bodies or government agencies often charged with
controlling interest rates and money supply across the whole economy. They generally
provide liquidity to the banking system and act as Lender of last resort in event of a
crisis.

Types of retail banks

Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that
banks only engage in banking activities, whereas investment banks were limited
to capital market activities. Since the two no longer have to be under separate
ownership, some use the term "commercial bank" to refer to a bank or a division
of a bank that mostly deals with deposits and loans from corporations or large
businesses.

Community Banks: locally operated financial institutions that empower

employees to make local decisions to serve their customers and the partners
Community development banks: regulated banks that provide financial
services and credit to underserved markets or populations.
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Postal savings banks: savings banks associated with national postal systems.
Private Banks: manage the assets of high net worth individuals.
Offshore banks: banks located in jurisdictions with low taxation and

regulation. Many offshore banks are essentially private banks.

Savings bank: in Europe, savings banks take their roots in the 19th or
sometimes even 18th century. Their original objective was to provide easily
accessible savings products to all strata of the population. In some countries,
savings banks were created on public initiative, while in others socially
committed individuals created foundations to put in place the necessary
infrastructure. Nowadays, European savings banks have kept their focus on retail
banking: payments, savings products, credits and insurances for individuals or
small and medium-sized enterprises. Apart from this retail focus, they also differ
from commercial banks by their broadly decentralized distribution network,
providing local and regional outreach and by their socially responsible approach
to business and society.

Building societies and Lands banks: conduct retail banking.

Ethical banks: banks that prioritize the transparency of all operations and
make only social-responsible investments.

Types of investment banks

Investment banks "underwrite (guarantee the sale of) stock and bond
issues, trade for their own accounts, make markets, and advise
corporations on capital markets activities such as mergers and

acquisitions.
Merchant banks were traditionally banks which engaged in trade
financing. The modern definition, however, refers to banks which provide
capital to firms in the form of shares rather than loans. Unlike Venture
capital firms, they tend not to invest in new company.

Banks In The Economy

1) Role in the money supply
A bank raises funds by attracting deposits, borrowing money in the interbank market, or issuing financial instruments in the money market or a
capital market. The bank then lends out most of these funds to borrowers.
2) Size of global banking industry
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Worldwide assets of the largest 1,000 banks grew 15.5% in 2005 to reach
a record $60.5 trillion. This follows a 19.3% increase in the previous year.
EU banks held the largest share, 50% at the end of 2005, up from 38% a
decade earlier. The growth in Europes share was mostly at the expense of
Japanese banks whose share more than halved during this period from
33% to 13%. The share of US banks also rose, from 10% to 14%. Most of
the remainder was from other Asian and European countries.
The US had by far the most banks (7,540 at end-2005) and branches
(75,000) in the world. The large number of banks in the US is an indicator
of its geography and regulatory structure, resulting in a large number of
small to medium sized institutions in its banking system. Japan had 129
banks and 12,000 branches. In 2004, Germany, France, and Italy had more
than 30,000 branches eachmore than double the 15,000 branches in the
UK.

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COMPANY PROFILE
INTRODUCTION TO THE J&K BANK Ltd.
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 on a very limited scale, such as Punjab National Bank Limited, Grind-lays
Bank and Imperial Bank of India.
The role of these banks was reduced to the acceptance of deposits, as they could not grant
loans and advances to the people of 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 Ist 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 on the other side of the line of control along with cash and
other assets; in 1947.
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However the State Govt. came to its rescue with the assistance of Rs.6.00 Lacks to meet
the claims thereafter, the bank stead fastily over came its difficulties and kept growing.
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

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VISION AND MISSION OF THE BANK

vision
The Bank's vision is To catalyze economic transformation and capitalize on growth.
The bank aspires to make Jammu and Kashmir the most prosperous state in the country,
by helping create a new financial architecture for the J&K economy, at the center of
which will be the J&K Bank. The Bank is committed to achieve healthy growth in
profitability and simultaneously to remain consistent with the Bank's risk appetite and at
the same time ensuring the highest levels of ethical standards, professional integrity and
regulatory compliance.

Mission
The companys mission is two-fold: 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.

Financials of the Bank

The aggregate business of the bank stood at`115720.46 Crore at the end of the financial
year 2013-14, an increase of ` 12299.43 Crore over the previous years figure of
`103421.03 Crore. In percentage terms, the growth registered was 11.89%. The total
deposits of the Bank have grown by ` 10,873.72 Crores from ` 53,346.90 Crores, as on
31st March, 2012, to ` 46,220.62 Crores, as on 31st March, 2013, registering a growth of
20.38%. CASA deposits of the Bank at ` 25,191 Crores constituted 39.23% of total
deposits of the Bank. Cost of deposits for current FY stood at 6.87%. The Bank continued
its prudent approach in expanding quality credit assets in line with its policy on Credit
Risk Management. The net advances of the Bank increased by ` 6,122.99 Crores from `
33,077.42 Crores, as on 31st March, 2012, to ` 39,200.41 Crores, as on 31st March, 2013,
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a growth of 18.51%.Yield on advances for the current FY improved to 12.59%, compared

to 12.12% for FY 2011-12 . Priority sector advances (Gross) stood at ` 11,591.58 Crores,
as on 31st March, 2013. The Banks performance in the recovery of NPAs during the year
continued to be good. The Bank effected cumulative cash recovery; upgradation of NPAs
and technical write-off of ` 327.83 Crores, compared to ` 316.91 Crores in the previous
year. Investment portfolio of the bank increased by ` 4,116.74 Crores from ` 21,624.32
Crores, as on 31st March, 2012, to ` 25,741.06 Crores, as on 31st March, 2013

Insurance Business
The Bank has diversified its business activities into insurance, both life and non-life. The
Bank not only became the strategic partner of, M/S METLIFE INDIA INSURANCE CO.
Ltd but also has been acting as corporate agent of the said company for distribution
of their life insurance products through network of its branches. The Bank also entered
into a tie-up with BAJAJ ALLIANZ GENERAL INSURANCE COMPANY for
distribution of their non-life insurance products. In view of Bank's deep branch network
and loyal customer base particularly in Jammu and Kashmir, the Bank has been able to
distribute insurance products in deep rural and far flung areas and has made penetration
in the new areas thereby adding to its non-interest and fee based income.
The banks insurance business continued to record splendid growth. During the year
under report the bank as a corporate agent further extended the marketing of products of
M/S METLIFE INDIA INSURANCE CO. Ltd into new areas, which were hitherto
neglected by the traditional competitors in the business. Bank has sold 9019 life policies
of METLIFE INDIA and collected annualized premium amount of Rs. 1277.84 lacks
during the year. In the non-life business, the bank has shown a better performance and
collected aggregate premium amount of Rs. 1759.03 lacks. This has yielded non-interest
income of Rs.509.21 lacks to the bank

Income Analysis
The Interest income of the bank recorded a growth of `630.20 Crore and increased from

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`6136.80 Crore in the year 2012-13 to `6767.00Crore in the year 2013-14. Interest
expenses

Recognition and Awards

The Bank recently won the prestigious Asian Banking Award 2005 for its
Development Project Financing Programmers', contributing significantly to the
development of tourism industry of the J&K State. The award was presented by the
Under Secretary Finance, Philippines, at a glittering Gala Dinner award function held at
Manila, Philippines on June 17, 2005.
The annual Asian banking awards recognize and honor Asian banks for outstanding,
innovative and world-class products and programs implemented during the previous year.
It is the most respected and premier banking awards program in Asia Pacific region.
It is worth mentioning that the Bank has won the Asian Banking Award consecutively for
the second year. Last year, the Bank won the award for Customer Convenience
Programs and was also given runners up certificate for its project Motivating Employees
for Better Performance' under operational efficiency programs' category.
The Bank was ranked fifth among the top ten Asian banks and 762nd among top 1000
World banks. A renowned business journal "Business Today ranked JK Bank among 25
top investor friendly companies in India, the only bank in the whole Indian Banking
industry, which has been ranked in the magazine among first 10 Investor Friendly
Companies. The Bank for the second consecutive year was ranked Best Private Sector
Bank in Financial Express/Ernest and Young combined Survey for the year 2002-03
released recently. Bank was awarded Shiromani Award' for outstanding achievements in
the field of banking and commitment to national progress and human welfare during the
year under report. The Bank has figured among 24 Indian companies in Forbes Global 100 best under a billion Asia's Rising Companies', listed by Forbes magazine in its issue
dated November 01 2006. The publication has commended J&K Bank for representing

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economic dynamism' in the region, sustained growth in all spheres and an excellent
track record of rewarding its shareholders.

Csr Aspect Of J&K Bank

At J&K Bank, sustainability entails acting responsibly on behalf of future generations to
achieve economic, environmental and social progress. The Bank has maintained its
reputation of being a remarkably responsible premier institution. We have formulated an
all-embracing Corporate Social Responsibility (CSR) policy, which extends beyond the
framework of familiar philanthropy with a broader perspective of socio-economic
empowerment. The Banks key initiatives in this regard focus primarily on providing
education facilities to the disadvantaged sections of society, extending financial
assistance for medical treatment and taking meaningful initiatives for preserving and
promoting the endemic culture, heritage and handicraft of Jammu and Kashmir.
Major Csr Initiatives
I Increased the number of sponsored special students (mentally- challenged) of Voluntary
Medicare Societys Shafakat School from 10 to 25.
II Enhanced the Cancer Society of Kashmirs Annual Revolving Fund from Rs.1.50 lacs
to Rs.5.00 lacs in view of the alarming increase in cancer diagnosis in the state. Besides,
an amount of Rs.10 lacs was donated to the society for the purchase of Hospital Furniture
and other related items.
III Gifted several computers, sewing machines, knitting machines, musical instruments,
interlock machine, electric irons and a gas connection to differently abled persons,
helping the vulnerable sections of society.
IV Sponsored the education of 16 most deserving students of HELP Foundation, a nongovernmental organization pursuing the welfare of poor, orphans and underprivileged
children to widen educational opportunities for the underprivileged.

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V Sponsored various state-level sports tournaments including tournaments organized for

physically challenged persons; paid entry fee of three local athletes for participation in
sports activities at Estonia, Europe.

Policy
With the objective of promoting the philanthropic activities, other social and
environmental issues, the bank has a CSR policy in place embodying the broader
principles for providing donations. The donations are made within the prescribed limit of
1% of the published profit for the previous year. It focuses on economic, social, cultural
and geographical backwardness of the area.

Future, Growth and Prospectus

The Bank will continue its efforts to make every single process technology driven. All
business units will be migrated to CBS platform and more importantly, 0-Data Loss
system(3 Way DC/ DR) will be setup by March 2012. Other future IT initiatives include
introduction of mobile banking, back-up solution upgrade tape library for DC/ DR,
setting up of call centre, enhanced IT security through oracle audit vault and video
surveillance for 50 new business units.

Customer Services
The Bank understands the philosophy of improving customer delight through continuous
and ceaseless efforts. We seek to meet the highest standards of customer delight and
providing time efficient, responsible and helpful services. We continuously strive for
strengthening and cultivating customer relationships at each point of interaction. Besides,
providing latest tech-savvy and customer friendly services and products to our customers,
human resources of the Bank are being consistently motivated to ensure customer
convenience of optimal standards.

Promoting Compliance
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The policy standards and systems adopted by the Bank are in conformity with the
regulatory guidelines and strict adherence is ensured through a well-defined structure of
roles and responsibilities for enterprise-wide compliance.

Key Features:
I. The bank provides financial assistance for the benefit of Handicapped persons/orphans/
poor patients suffering from serious ailments.
II Provides direct assistance or through Prime Minister's Relief Fund or Chief Minister's
Relief Fund or any other national level or state level calamity relief fund to needy who
have suffered due to natural disaster and calamities.
III Helps in rehabilitation of handicapped children/ persons belonging to depressed
classes of society.
IV. Provides for procurement of devices / apertures for kidney transplantation; cardiac
interventions; cancer patients; AIDS HIV and other dreaded diseases, philanthropic
support for people belonging to economically deprived sections of the society.
V Provides financial support to orphanages.
VI. Provides scholarships to meritorious students of depressed sections of the society at
various levels with focus on the needy.
VII Provides technical and financial support for the Heritage Preservation through
sponsorship of awareness seminars, organizing social service camps, sponsoring Art and
Literary works and preservation and development of important Historical, religious,
tourist sites, museums, libraries, archives, scientific organizations and National
properties.

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Services Provided By The Jammu And Kashmir Bank To Customers

Under Various Schemes:

The J&K Bank Savings Accounts

The J&K Bank Current Accounts
The J&K Bank Fixed Deposits
The J&K Banks various Loans Schemes
The J&K Bank various Depository Schemes

Other Facilities At The J&K Bank Ltd:

Automatic Teller Machines.

Locker Facility.
Mobile ATM Service.
The J&K Bank Credit Cards.
The J&K Bank Global Access Debit Cards.
SMS Banking
Anywhere banking facility
The J&K bank is the only bank in India which provides Amaranth Yatra Tickets to
pilgrims.

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Banks New Identity

The new identity for J&K Bank is a visual representation of the Banks philosophy and
business strategy. 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. The synergy between the
three regions propels the bank towards new horizons. Green signifies growth and
renewal, blue conveys stability and unity, and red represents energy and power. All these
attributes are integrated and assimilated in the white counter-form.

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Swot Analysis
The term SWOT is the acronym made up of four words viz, Strengths, Weaknesses,
opportunities and Threats. The first two variables are internal to an organization whereas
the last two are external. The value of SWOT analysis cannot be over emphasized. It is
rightly said winners recognize their limitations but focus on their strengths; losers
recognize their strength but focus on their limitations.
SWOT Analysis

Internal Environment

Strengths

External Environment

Weaknesses

Opportunities

Threats

Internal factors
Strength:
Strength is defined as something which is positive, good or such other characteristics that
give to the company an edge in the competitive market. The Bank has one unique source
of strength which if cultivated carefully, can be virtually impregnable its roots are in the
state, and as such it shares with the people of Jammu and Kashmir a kinship, and
empathy for the cause of the states progress, which no outside bank ever can. The J&K
Bank also performs the leaders role in the J&K. As a leader the Bank continued to
discharge its Lead Bank responsibility in 8 out of 14 districts of J&K State satisfactorily.

Weaknesses:

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A weakness refers to something which one lacks. It is something which restricts us to

move forward. While doing my summer training in the J&K Bank I found the following
weaknesses;
(i) There is less competent staff at lower level.
(ii) Weak competitive capability because of lack of lesser advertisement budget.
(iii) Labour problems because of militancy in the state which results in strikes and tense
conditions.
(iv) The activities of Branch managers are not effectively monitored

External factors
Opportunities:
Opportunities are entirely external concerning the business environment. Opportunities
do not come very frequently and therefore, the management must exploit them to the
maximum extent without any delay. Each opportunity should be analyzed in terms of its
profitability. The opportunities analyzed by me for the J&K Bank are;
(i) There is un served market comprising of carpet manufacturers in the state of Jammu
and Kashmir this is opportunity for the Bank to exploit the segment.
(ii) The opportunity in the same segment is to market the products of carpet
manufacturers by employing the Special Purpose Vehicle (SPV) as has been analyzed that
they will co-operate heartedly.By exploiting these opportunities the Bank can have twoway profit, firstly by financing these business units profit in the form of interest.
Secondly, profit by marketing the products of these business units.

Threats:

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With every opportunity, there also goes alongside certain threats which may adversely
affect the profitability and competitive capability of an enterprise. The threats analyzed
are;
(i) Competitors like HDFC Bank, Central Co-operative Bank, ICICI Bank etc. may enter
in the field to provide finance facility to carpet manufacturers.
(ii) There may be change in the policies of the state government

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
Research. D. Slesinger and M.Stephenson in the encyclopedia of Social Sciences define
Research as the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.
Research is a careful investigation or inquiry especially through search for new facts in
branch of knowledge: market research specifies the information. Required to address
these issues: designs the method for collecting information: manage and implements the
data collection process analyses the results and communicates the finding and their
implications. Research problem is the one which requires a researcher to find out the best
solution for the given problem that is to find out the course of action, the action the
objectives can be obtained optimally in the context of a given environment.

Techniques:
The problem definition can be said to be the quite essential part of the research process;
as it determine precisely, what the managerial problem is and the type of information that
the research can generate to help the problem before conducting the fieldwork. It is better
to decide upon the method/technique of data collection. Generally, there are two
technique of data collection are:

1. Census Technique
24

2. Sample Technique or Convenient sampling

A census is a complete enumeration of each and every unit of population where as in a
sample only a part of the universe is studied and conclusion about the entire universe is
drawn about that basis. The census method is costlier and more time consuming as
compared to sampling method but the result are near representatives than sample
method.The availability of resources, time factor degree of accuracy desire and scope of
the problem enable us to apply sample technique.

2. Data Collection:
The objectives of the project are such that both primary and secondary data is required to
achieve them. So both primary and secondary data was used for the project. The mode of
collecting primary data is questionnaire mode and sources of secondary data are various
magazines, books, newspapers, & websites etc.

Primary Data:
The primary data was collected to measure the customer satisfaction regarding J&K
Bank. The primary data was collected by means of direct personal interview method
through structured questionnaire and analysis was done on the basis of response received
from the customers. The source for the primary data was a questionnaire. The
questionnaire is the most popular and useful method for the collecting survey data and
helps in analyzing the information from the framed questions to get the real picture of the
subject.
The questionnaire has been designed in such a manner that the customers satisfaction
level can be measured and consumer can enter his/her responses easily. The questionnaire
that was used for the collection of the research data contained 10 questions. Out of which,
9 questions were closed question based on options and 1 open end question. The
questions were based on variables like markets segmentation.
The questions used in the questionnaire contained information and details about the bank
like
25

Details of the person interacted about product being utilized

Customers current level of knowledge regarding bank product
Customers preferences about the product which they would rate higher than other
product and
Customers media preference or the way in which they would like the product to be
advertised or promoted
The questionnaire was distributed to 63 customers in rural, semi urban and urban areas in
Jammu And Kashmir State. The customers were:

Students.
Customers of different bank branches.
Govt employees.
Pensioner.

SECONDARY DATA:
The secondary data used in the research was collected from
The Jammu and Kashmir banks magazines.
Articles from newspapers.
Websites.
Dairies.

26

INTRODUCTION ABOUT TOPIC

CUSTOMER SATISFACTION TOWARDS DIFFERENT
BANKS
Introduction
Banking operations are becoming increasingly customer dictated. The ability of banks
to offer clients access to several markets for different classes of financial
instruments has become a valuable competitive edge. Convergence in the industry to
cater to the changing demographic expectations is now more than evident. With the
phenomenal increase in the country's population and the increased demand for banking
services; speed, service quality and customer satisfaction are going to be key
differentiators for each bank's future success. Thus it is imperative for banks to get
useful feedback on their actual response time and customer service quality aspects of
banking, which in turn will help them, take positive steps to maintain a competitive edge.
The working of the customer's mind is a mystery, which is difficult to
solve, and understanding the nuances of what customer satisfaction is; which is a
challenging task. This research will give us an insight into the parameters of customer
satisfaction and their measurement. This vital information will help us to build
satisfaction amongst the customers and customer loyalty in the long run which is an
integral part of any business. The customer's requirements must be translated and
quantified into measurable targets. This provides an easy way to monitor improvements,
and deciding upon the attributes that need to be concentrated on in order to improve
customer satisfaction
The Need to Measure Customer
Satisfied customers are central to optimal performance and financial returns. In many
27

places in the world, business organizations have been elevating the role of the customer
to that of a key stakeholder over the past twenty years. Customers are viewed as a group
whose satisfaction with the enterprise must be incorporated in strategic planning efforts.
Forward-looking companies are finding value in directly measuring and tracking
customer satisfaction (CS) as an important strategic success indicator. Evidence is
mounting that placing a high priority on CS is critical to improved organizational
performance in a global market place. With better understanding of customers
perceptions, companies can determine the actions required to meet the customers' needs.
They can identify their own strengths and weaknesses, where they stand in comparison
to their competitors, chart out path future progress and improvement. Customer
satisfaction measurement helps to promote an increased focus on customer outcomes
and stimulate improvements in the work practices and processes usedwithin the
company. When buyers are powerful, the health and strength of the company's
relationship with its customers its most critical economic asset is its best predictor of
the future. Assets on the balance sheet basically assets of production

are good

predictors only when buyers are weak.

So it is no wonder that the relationship between those assets and future income is
becoming more and more tenuous. As buyers become empowered, sellers have no choice
but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is
more important to pay attention to the customer .Customer satisfaction is quite a complex
issue and there is a lot of debate and confuse on about what exactly is required and how
to go about it. This article is an attempt to review the necessary requirements, and discuss
the steps that need to be taken in order to measure and track customer satisfaction.
Expectations have a central role in influencing satisfaction with
services, and these in turn are determined by a very wide range of factors lower
expectations will result in higher satisfaction ratings for any given level of service
quality. This would seem sensible; for example, poor previous experience with the
service or other similar services is likely to result in it being easier to pleasantly surprise
customers. However, there are clearly circumstances

28

where negative preconceptions of a service provider will lead to lower expectations, but
will also

make it harder to

achieve high

satisfaction ratings and where positive

preconceptions and high expectations make positive ratings more likely. The expectations
theory in much of the literature therefore seems to be an over-simplification Service
quality has become an essential part of organizational success due to increased
customer expectations and customization of services in many markets. Good service
quality used to mean that the output was made to conform to the specifications set by the
process designers.
Today, the concept of service quality is evolving to mean uniformity of the service output
around an ideal (target) value determined by the customer. However, when the
dimensions or performance of a service output exceed allowable limits, the variation
needs to be identified so the problem can be corrected. Four factors represent major
explanations for the existence of process variation in services: heterogeneous
customers with different service expectations; lack of rigorous policies and processes;
high employee turnover; and stature of customization.
The financial performance of a financial service institution is driven to a large extent by
its ability to attract and retain customers. Customers increasingly have alternatives from
which they can choose. We are interested in whether a customer's decision whether to
stay with her current service provider might be more sensitive to variability of service
than the level of service quality

1) The Relationships Of Customer Satisfaction, Customer Loyalty, And

Profitability: An Emperical Study.
Presents the findings of a study performed on data from a large banks retail-banking
operations. Illustrates the relationship of customer satisfaction to customer loyalty and
customer loyalty to profitability, using multiple measures of satisfaction, loyalty, and
profitability. An estimate of the effects of increased customer satisfaction on profitability
(assuming hypothesized causality) suggests that attainable increases in satisfaction could
dramatically improve profitability

29

2) Effective Measurement Of Customer Service In Banks

The success of any organization depends upon how far they meet the needs and
preferences of the customers. Particularly, in the service sector it is more important for
the service marketers to understand the service expectations of the customers and meeting
them. Because of globalization and liberalization many economies are shifting from
industrial sector to service sector because of which there is tremendous growth in the
service sectors in both developed and developing economies. Banking sector is an
important service sector organization which is operating in high competitive environment
because of the entry of private sector, in this context, for the survival and growth of
banks, it has become very essential for the managers to provide quality customer service
and measure and monitor it continuously.
While accurate measurement of customer service is important, of even greater importance
is making the measurement more effectively so that the result can be used to improve
service operations. An attempt is made in this paper to discuss five most important
customer service measurement methods: disconfirmation model, SERVQUAL model,
SERVPERF model, direct investigation approach and effective market share method.

3) Service Quality
In the field of computer networking and other packet-switched telecommunication
networks, the traffic engineering term quality of service (QoS) refers to resource
reservation control mechanisms rather than the achieved service quality
Service Quality Unit
The Service Quality Unit has been formed as an independent body to monitor the quality
of the service provided by the University's student related administrative units.
SERVICE QUALITY
Quality Dimension
Tangibles: Appearance of physical
facilities, equipment, personnel, printed
and visual materials

Samples of questions to ask

Are facilities attractive?
Is staff dressed appropriately?
Are written materials easy to understand?
30

Reliability: Ability to perform

promised service dependably and
accurately

Responsiveness: Willingness to help

customers to provide prompt service

Competence: Possession of required

skill and knowledge to perform servide

Courtesy: Politeness, respect,

consideration and friendliness of
contact personnel

Does technology look modern

If a response is promised in a certain time,
does it happen?
Are exact specifications of client
followed?
Are statements or reports free of error?
Is service performed right the first time?
Is level of service same at all times of day
and for all members of staff?
Responsiveness: Willingness
When

there is a problem, does

organization respond to it quickly?
Is staff willing to answer client questions?
Are specific times for service
accomplishments given to client?
Are public situations treated with care and
seriousness

Can staff provide service without fumbling

around?
Are materials provided appropriate and up
to date?
Can staff use the technology quickly and
skillfully?
Does staff appear to know what they are
doing?

Does staff member have a pleasant

demeanor?
Does staff refrain from acting busy or
being rude when clients ask questions?
Are those who answer the telephone
considerate and polite?
Does staff observe consideration of the
property and values of clients?

31

Credibility: Trustworthiness,
believability, honesty of the service
provider

Security: Freedom from danger, risk,

or doubt

Access: Approachability and ease of

contact.

Does service organization have a good

reputation?
Do staff members refrain from pressuring
the client?
Are responses given accurate and
consistent with other reliable sources?
Does the organization guarantee its
services

Is it safe to enter the premises and to use

the equipment?
Are documents and other information
provided for the client held securely?
Are use records of clients safe from
unauthorized use?
Can client be confident that service
provided was done correctly

How easy is it to talk to knowledgeable

staff member when client has a problem?
Is it easy to reach the appropriate staff
person
o In person?
o By telephone
o By email?
Are service access points conveniently
located?

Communication:
Listening
to when clients service point, will staff person
customers and acknowledging their listen to their problem and demonstrate
comments;
Keeping
customers understanding and concern
informed in a language they can
understand

32

Understanding the Customer: Making

the effort to know customers and their Does someone on staff recognize each
needs
regular client and address them by name?
Does staff try to determine what client's
specific objectives are?
Is level of service and cost of service
consistent with what client requires and can
afford?
Are service providers flexible enough to
accommodate to client's schedule?

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while targeting
non-customers;[measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace Customer
satisfaction is an ambiguous and abstract concept and the actual manifestation of the state
of satisfaction will vary from person to person and product number of both psychological
and physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The l 'Qlity Values' which influence satisfaction behavior, further
expanded on a of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease
improvement and organizational change measurement and are most often utilized to
develop the architecture for satisfaction between the cusr's being measured Element of
business strategy

Customer Satisfaction in 7 Steps

It's a well known fact that no business can exist without customers. In the business of
Website design, it's important to work closely with your customers to make sure the site
33

or system you create for them is as close to their requirements as you can manage.
Because it's critical that you form a close working relationship with your client, customer
service is of vital importance. What follows are a selection of tips that will make your
clients feel valued, wanted and loved

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers face to
face at least once or even twice during the course of a project
My experience has shown that a client finds it easier to relate to and work with someone
they've actually met in person, rather than a voice on the phone or someone typing into an
email or messenger program. When you do meet them, be calm, confident and above all,
take time to ask them what they need. I believe that if a potential client spends over half
the meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers queries within the space of a few hours, but at least email or call them back
and let them know you've received their message and you'll contact them about it as soon
as possible. Even if you're not able to solve a problem right away, let the customer know
you're working on it

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This is
very true. It's very important to be friendly, courteous and to make your clients feel like
you're their friend and you're there to help them out. There will be times when you want
to beat your clients over the head repeatedly with a blunt object - it happens to all of us.

34

It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at
all times remain polite and courteous

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a
customer has a problem, what should they do? If the first option doesn't work, then what?
Should they contact different people for billing and technical enquiries? If they're not
satisfied with any aspect of your customer service, who should they tell? There's nothing
more annoying for a client than being passed from person to person, or not knowing who
to turn to. Making sure they know exactly what to do at each stage of their enquiry should
be of utmost importance. So make sure your customer service policy is present on your
site -- and anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalized sign-up confirmation email for a service that
you could tell was typed from scratch? These little niceties can be time consuming and
aren't always cost effective, but remember to do them. Even if it's as small as sending a
Happy Holidays email to all your customers, it's something. It shows you care; it shows
there are real people on the other end of that screen or telephone; and most importantly, it
makes the customer feel welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them
Out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship. Take this
as an example: you're working on the front-end for your client's exciting new ecommerce
endeavor. You have all the images, originals and files backed up on your desktop
computer and the site is going really well. During a meeting with your client he/she
happens to mention a hard-copy brochure their internal marketing people are developing.
35

As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete

with high resolution versions of all the images you've used on the site. A note
accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide
you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able
to make use of some in your brochure."Your client is heartily impressed, and remarks to
his colleagues and friends how very helpful and considerate his Web designers are.
Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that
morning, safe in the knowledge this happy customer will send several referrals your way.

7. Honor Your Promises

It's possible this is the most important point in this article. The simple message: when you
promise something, deliver. The most common example here is project delivery dates.
Clients don't like to be disappointed. Sometimes, something may not get done, or you
might miss a deadline through no fault of your own. Projects can be late, technology can
fail and sub-contractors don't always deliver on time. In this case a quick apology and
assurance it'll be ready ASAP wouldn't go amiss

36

DATA ANALYSIS AND INTERPRETATION

Q NO.1:- Gender?
(A) male
(b) female

Male

Female

175

25

gender
25
male
female
175

37

Interpretation
The above graph shows that 87% of the total responds belongs to the male category while
as remaining 13% of the total respondents belongs to female category this shows that
males are more knew towards banking

Q NO.2: - OCCUPATION OF THE RESPONDENT?

Student

Service

Business

other

25

76

94

occupation of the respondent

5
94

25

student
service
76

Interpretation

38

business
other

From the above fig. It is clear that majority of the respondents i.e. 46% deals with
business,38% respondents are the service persons .13% respondents are the students and
only 3%respondents have occupied other occupation

QNO.3: -With which bank do you maintain your banking relationship.

JK BANK

HDFC

PNB

SBI

71

43

30

34

ICI
CI

22

Sales

jk bank

22

71

34

hdfc
pnb
sbi

30

icici

43

39

Interpretation
The above chart shows that 36% respondents have maintained their banking relationship
with J&K Bank, 21% respondents maintained their banking relationship with HDFC
Bank, 17% respondents maintained relationship with state bank of India (SBI) and 15%
respondents have build their banking relationship with Punjab national bank (PNB) and
only 11% respondents showed that they have maintained their relationship with ICICI
bank

Q NO.4: - Are you aware about the various products and services provided by
the bank.

yes

No

49

151

awareness about products and services

49
yes
no
151

Interpretation:
40

The above pi-chart shows that 73% respondents are not aware about the various products
and services of the bank and only 25% respondents indicated that they are aware about
the products and services offered by the bank.

Q NO.5: - Which bank do you think provides the best customer service.

HDFC

J&K BANK

SBI

PNB

ICICI BANK

44

96

22

18

20

service provide by bank

hdfc
44

18 20
22

jk bank
sbi
pnb

96

Interpretation:
41

icici

The above diagram shows that 48% respondents indicated that J&K bank provides the
best customer service, 22% respondents showed that HDFC bank provides the better
customer service to their customers while as 11% respondents give their favor towards
SBI bank and only 10% respondents suggest that ICICI Bank provides the best customer
service

Q NO.6: - Are you satisfied with the overall services provided by the ba?

H. dissatisfied

Dissatisfied

Neutral

Satisfied

H.satisfied

12

18

93

59

customerSatisfaction about overall services

12

59

18

H.dissatisfied
Dissatisfied
Neutral
Satisfied
H.satisfied

93

42

Interpretation:
The above pi-chart indicates that 46% respondents are satisfied with the over all services
provided by the particular bank 30% respondents are highly satisfied with services of the
bank 9%respondents are neutral above this and very few respondents are highly
dissatisfied with the services provided by the bank.

Q NO.7: - Which factor satisfies you most from the bank.

Promised service

Safety

Mod.Technology

Problem solving

119

52

17

12

Most satisfying factor

17

12

Promised service
Safety

52

119

Mod.Technology
Problem solving

Interpretation:
43

The above chart shows that 59% respondents responded that promised service is the most
satisfying factor for them, 26% respondents considered safety as an important satisfying
factor from the bank and only 9% respondents considered modern equipment as most
satisfying factor for them.

Q NO.8: - Is the service available to you when you needed it.

YES

NO

168

32

44

Service Availibility
32
yes
no
168

Interpretation:
From the above diagram it is clear that majority of the respondents(84%) accept that the
service is available to them when they needed it from the bank and very few
respondents(16%) replied that service is not available from the bank when they needed it.

Q NO.9: - Which bank provides you the fast service recovery.

PNB

HDFC

SBI

J&K BANK

ICICI

19

50

28

83

20

45

fAST SERVICE RECOVERY

20

8.2

PNB
50

HDFC
SBI

83

28

J&K BANK
ICICI

Interpretation:
The above bar chart shows that 41% respondents interpreted that J&K bank the fast
service recovery as compared to other banks in the valley, 25% respondents answered
that HDFC bank provides the fast service recovery while 14% respondents replied that
SBI bank provides the and only 20% respondents showed that ICICI bank and PNB both
provides the fast service recovery.

Q NO.10: - Bank is handling customer grievances very well.

Strongly

Disagree

Agree

Disagree

46

Strongly Agree

95

62

34

Managing grievances
strongly disagree

9 8.2

disagree

34

agree
62

strongly agree

Interpretation:
The above pi-chart shows that 47% respondents strongly disagree with the above
statement that bank is handling customer grievances very well, 31% respondents disagree
with the statement. Only 17% respondents agree with the statement that bank is handling
customer grievances very well and only 5% respondents strongly agree with the
statement.

Q NO.11: - Which service facility do you avail most at the bank.

47

Loan facility

Deposit A/C

Credit. Cards

All the above

25

81

52

19

23

Availness of service facility

19

23

25

Loan facility
ATM
Deposit A/C

52

81

Credit. Cards
All the above

Interpretation:
The above bar chart shows that majority of respondents i.e.41% respondents use ATM
service of the bank, 26% respondents mostly avail the service of deposit accounts while
as 12%respondents mostly use the loan facility of the bank and only 11% respondents use
other services of the bank

QN0.12: - which factor is important to you while starting relationship with you.

48

Ambience

Emp. behavior

Att.interst.rates

location

others

35

52

101

5
52

Ambience
Emp. behavior

101

Att.interst.rates
location
other

Interpretation:
The above pi-chart shows that 50% respondents considered location an important factor
for them while choosing a particular bank while as 25% respondents considered
employee behavior as an important factor while starting a relationship with a bank and
very few respondents considered interest rate and ambience as important factors for
starting banking relationship.

OBJECTIVES OF THE STUDY

49

Every company has a particular goal. A study without objectives cannot reach the
destination. My project work was also directed to some particular targets and the main
objectives of the study are as bellow:
To study the customer Satisfaction towards various products and services of J&K Bank.
To study the major factors responsible for their satisfaction.
To study the brand image of the bank.
To make bank employees aware about the customer problems and give suggestions to
solve them so that the Bank can retain and maintain the loyal customers.
To know the awareness of customers about products and services provided by
The bank
To determine the performance of the bank

FINDINGS
50

The study reveals that 36% 0f respondents maintained their relationship with J&K
bank .While next major group of respondents i.e. 21% respondents have
maintained their banking relationship with HDFC bank with this the loyalty of

customers can be interpreted.

the most important factor while starting relationship with the is found as location
as 50% respondents were of this opinion while 25% respondents replied that
employee behavior is the most important factor for starting relationship so better

location can play a great role in developing customer share .

The study reveals that 41% respondents use the ATM facility of the bank and
other major group of respondents (26%) revealed that they use the deposit
accounts of the bank therefore the ATMS must be maintained and available at the

proper places that can be used easily.

the study showed that majority of respondents i.e. 53% respondents are not
satisfied with the customer education provided by the bank while as 27%
respondents are satisfied with the customer education provided by the bank this
study reveals that a proper education should be provided to the customers of the

bank so that they can use the better service of the bank .
Majority of respondents i.e. 73% responded that they are not aware about the
products and services that bank provides and only 25% respondents said they are
aware about the products and services of the bank. The study reveals that it is
necessary for any bank to give proper awareness to their customers through

different ways .like advertisement, by conducting seminars, awareness programs.

Majority of respondents i.e. 48% said that J&K bank provides the best customer
service as compared to other banks, 22% respondents responded that HDFC bank
provides the best customer service and only 11% respondents said that state bank

of India provides best service.

The study revealed that 41 %respondents replied that J&K bank is the only bank
that provides the fast service recovery to their customers, 25% respondents are

with HDFC bank that it provides the fast service recovery.

The 84% respondents accept that the service is available to them when they
needed it and only 14% respondents reject that to them the service is not available
when they needed it.

51

The study revealed that 46% respondents are satisfied with the overall services
from the bank, 30% respondents are highly satisfied with the services of the bank

and 9% respondents are dissatisfied and neutral about the services of the bank.
Majority of the respondents i.e. 59 % said that promised service is the most
satisfying factor for them and the next major group of respondents i.e. 26% said

that safety is the most satisfying factor from the bank.

47% respondents strongly disagreed that bank is handling customer grievances
well, while as 31% disagreed with the statement and only 17% respondents

agreed that bank is handling grievances well.

The majority of the respondents i.e. 48% respondents disagreed with the
statement that processing of bank is poor and only 22% respondents agreed that

processing of bank is poor.

The study revealed that 60% respondents agree that ATM machines of the bank
are maintained very well and 22% respondents disagreed that ATM machines are

not maintained well.

80% respondents strongly disagreed than bank is providing toll free numbers for
any grievance and only 4% respondents agreed that bank is providing toll free

numbers.
The study revealed that 57 % respondents agreed that employees of the bank are
very courticious with them and only 10% respondents strongly disagree that

employee of bank is courticious.

the majority of the respondents i;e79% strongly disagree that parking facility of

bank is well and only 4% respondents agree that parking facility of bank is well .
54% respondents disagree with the statement that infrastructure of bank is lacking
while as 25% respondents agree that infrastructure of bank is lacking.

SUGGESTIONS & RECOMMENDATIONS

52

The customer education should be provided with proper information about the

services of the bank.

Bank must be placed at proper location so that customers can easily reach their.

This will help bank is maintaining good relationship with customers.

The services should be made available at every time to meet expectations of

customers.
Grievances of customers must be handled in a proper way and within the shorter

period of time by doing this the image of bank adopts in the eyes of customers.
The no. of ATM machines should be increased an d it should be located at proper
places and at proper distances it will help bank do interact with maximum

customers.
Parking facility is the biggest problem of customers. Proper parking facility
should be made available which will reduce the problems of customers to some

extent.
The bank must be filled with modern technology so as to provide service within
the short time.

LIMITATION OF THE STUDY

Every research is limited by its imagination is true,but we definitely have some
limitations on this research. The limitations are as follows:
The study was restricted to J&K bank customers only.
53

 Considering the size of population that we have, the sample size that I have taken was
very small.
Some customers were reluctant to give detailed information.
Time factor was one of big limiting factor.
Data given by the respondents are limited to their own attitude, satisfaction,
knowledge, feeling and awareness.

BIBLIOGRAPHY
Reference

54

The information contained in this report was accessed from a variety of public, corporate
and classified sources and every effort has been made to acknowledge that these sources
where reliable and appropriate.
Books

Reference to a book:
Kotler, P. (2006), Marketing Management, Pearson Publications Ltd., New Delhi.
Reference for an article:
Chwla, Surbhi, (2008), Banking Services.., 4Ps Business and Marketing,

New Delhi, June, p.18

Reference to web page:
http://otn.oracle.com/docs/products/banking
BOOK CONSULTED
Zeithmal, A.V. (2006). Service marketing. Tata McGraw-Hill publishing

company, vol.6, 16-78

Kotler, p., Keller, k., Koshy, A. & Jha, M. (2007). Marketing management.
Pearson Education, VOL.12, 339-359.

WEB SITES

www.jkbank.net
www.google.com
www.myiris.com

QUESTIONNAIRE
Q NO.1:- With which bank do you maintain your banking relationship?
(a) J&K Bank
(b) HDFC

55

(c) PNB
(d) State Bank of India
(e) ICICI
Q NO.2:- Which factor is important for you while starting relationship with bank?
(a) Ambience
(b) Employee Behavior
(c) Attractive Interest Rates
(d) Location
(e) Others
Q NO.3:- Which service facility do you avail most at the bank?
(a) Loan facility
(b) ATM
(c) Deposit A/C
(d) Credit Cards
(e) All the above

Q NO.4:- Are you satisfied with customer education provided by the bank?
(a) Highly Dissatisfied
(b) Dissatisfied
(c) Satisfied

56

(d) Highly Satisfied

Q NO.5:- Are you aware about various products and services provided by the bank?
(a) Yes (b) No
Q NO.6:- Which bank do you think provides the best customer service?
(a) HDFC
(b) J&K Bank
(c) SBI
(d) PNB
(e) ICICI
Q NO.7:- Which bank provides you the fast service recovery?
(a) PNB
(b) HDFC
(c) SBI
(d) J&K Bank
(e) ICICI

Q NO.8:- Is the service available to you when you needed it?

(a) Yes (b) No
Q NO.9:- Are you satisfied with overall services provided by the bank?
(a) Highly Dissatisfied

57

(b) Dissatisfied
(c) Neutral
67
(d) Satisfied
(e) Highly satisfied
Q NO.10:- Which factor satisfied you most from the bank?
(a) Promised Service
(b) Safety
(c) Modern Equipment
(d) Problem salvation
Q NO.11:- Respond the statements in terms of
SD= Strongly Disagree D= Disagree A= Agree SA= Strongly Agree
QN0.12: - which factor is important to you while starting relationship with you.
(a)
(b)
(c)
(d)

Ambience
Emp. Behavior
Att.interst.rates
Location
(e) other

58