arzoo project report

SRI SAI UNIVERSITY PALAMPUR

ASUMMER TRAINING PROJECT

REPORTON

“CONSUMER’S PERCEPTIONS ON KCC BANK LTD.”

at KCC Bank Ltd.

IN PARTIAL FULLFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (BATCH 2012–14)

Submitted To: Submitted By:

Mr. Karan Arju Sharma

Assistant Prof. MBA 3rd Sem.

Sri Sai University Roll No. 612012015

Palampur. Sri Sai University

Palampur.

1

DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic

entitled “Consumer’s Perception on KCC Bank” in Branch Office Nagri

(Palampur).

I further declare that this project work is based on my original work and no

part of this project has been published or submitted to anybody.

Arju Sharma

Reg. No. 612012015

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ACKNOWLEDGEMENT

I Arju, MBA Student in SRI SAI UNIVERSITY PALAMPUR, is highly

grateful to all those who guided me in completing this project.

First of all, I would like to pay my heartiest thanks to entire staff of KCC

BANK especially Mr. O P Mehta, Branch manager, who provided me such a

wonderful opportunity to do Summer Training and provided their valuable

suggestions in understanding the work of Research Project.

I would also like to thank Mr. Karan for his guidance and

encouragement throughout my work.

Last but not the least, I would like to thank all faculty of management who

gave me the useful tips and suggestions regarding project.

Arju Sharma

3

PREFACE

The present era is undoubtedly a management era. Management is an

important function in any organization. A management is one of the most

important fields which are widely used in every stage of life. The effective

management can be achieved only by effective management training and

developing skill to understand the organizational level this project work is a

part of the course of MBA and was done at KCC Consumer Perceptions.

This project is prepared on the basis of awareness of KCC Consumer

Perceptions in market and understanding the requirement of proper guidance

to customers.

KCC offers loans for homes-for buying or constructing your home, refinance

a Consumer Perception availed from other institutions or even to extend or

improve your existing home. This project helps me to better understanding of

market and financial products and their benefits.

Now I am feeling the great pleasure in delivering this project because of a

better skill of handling the situation and customer understanding.

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INDEX

Sr. No

Chapter No.

Topic Page No.

I Acknowledgement 4

II Preface 5

III Executive summary 7-8

1. Company profile 9-26

2. Review of literature 28-32

3. Need, scope and research methodology 33-36

4. Objective of the study 37-38

5. Data analysis and interpretation 39-49

6. CONCLUSION AND RECOMMENDATION 50-52

Annexure-I (Questionnaire ) 53-56

Annexure-II (Bibliography) 57-58

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EXECUTIVE SUMMARY

I have done my Summer Internship Project from “KCC BANK

NAGRI(PALAMPUR)”. During my Summer Internship Project; I

implemented many concepts of 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 executive. 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 customers which were not aware about the scheme says that KCC bank

should improve their promotional area through different media like T.V.

radio. Print media, and through IMC (Integrated Marketing Approach) and

most of them votes for IMC. More than 80% of the customers were satisfied

with location and condition of the Bank and more than 50% were satisfied

with the process of disbursement, but maximum of the customers were

dissatisfied with the behavior of the employees, they give suggestions to that

the KCC Bank employees should change and improve their behavior towards

their customers, from my findings I found that this behavior of employees is

due to daily routine work load from which they got stressed. I recommend the

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bank to change the location of the employees from one branch to another and

give them more and more incentives and also to employ more employees from

which work load gets less and the employees will not feel any pressure and

they will not feel any stress. Most of the customers choose KCC Bank because

of simple procedures and more number of branches and the interest rates

regarding their business was suitable according to them. Most of the

customers rank good about KCC bank.

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 Kangra and the information we received there, along with the secondary research, helped us in strengthening our knowledge base regarding the topic.

A questionnaire was chosen as a data gathering tool because given the time and cost restraints, this proved to be the most effective method. Each of us verbally administered the questionnaire to the customers and recorded the responses.

In general customers give the following suggestions like customized products, more number of counters, improvement in employee behavior, provision of new schemes, use of IT and to improve the promotional area. Most of the customers were satisfied with the overall services of the bank and today’s scenario they recommend to choose KCC bank.

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CHAPTER NO-1

COMPANY PROFILE

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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/c’s.

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 function 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.

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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.

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MISSION

KCC Bank’s began operations in 1995 with a simple mission to be a World

Class Indian Bank. We realized that only a single-minded focus on product

quality and service excellence would help us get there. Today, the bank is on

the way towards that goal. It is extremely gratifying that its efforts towards

providing customer convenience have been appreciated both nationally and

internationally.

The bank’s aim is to build a sound customer franchise across distinct

businesses so as to be the preferred provider of banking services in the

niche segments that the bank operates in and to achieve healthy growth

in profitability, consistent with the bank’s risk appetite.

BUSINESSES

KCC Bank offers a wide range of commercial and transactional banking

services and treasury products to wholesale and retail customers. The bank

has three key business segments:

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WHOLE SALE BANKING SERVICES

The Bank's target market ranges from large, blue-chip manufacturing

companies in the Indian corporate to small & mid-sized corporate and agri-

based businesses. For these customers, the Bank provides a wide range of

commercial and transactional banking services, including working capital

finance, trade services, transactional services, cash management, etc. The

bank is also a leading provider of structured solutions, which combine cash

management services with vendor and distributor finance for facilitating

superior supply chain management for its corporate customers. Based on its

superior product delivery / service levels and strong customer orientation, the

Bank has made significant inroads into the banking consortia of a number of

leading Indian corporates including multinationals, companies from the

domestic business houses and prime public sector companies. It is recognised

as a leading provider of cash management and transactional banking

solutions to corporate customers, mutual funds, stock exchange members and

banks.

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RETAIL BANKING SERVICES

The objective of the Retail Bank is to provide its target market customers a

full range of financial products and banking services, giving the customer a

one-stop window for all his/her banking requirements. The products are

backed by world-class service and delivered to the customers through the

growing branch network, as well as through alternative delivery channels like

ATMs, Phone Banking, Net Banking and Mobile Banking.

The KCC Bank Preferred program for high net worth individuals, the KCC

Bank Plus and the Investment Advisory Services programs have been

designed keeping in mind needs of customers who seek distinct financial

solutions, information and advice on various investment avenues. The Bank

also has a wide array of retail loan products including Auto Loans, Loans

against marketable securities, Personal Loans and Loans for Two-wheelers. It

is also a leading provider of Depository Participant (DP) services for retail

customers, providing customers the facility to hold their investments in

electronic form.

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CAPITAL STRUCTURE :

Financial Position as on 31st March 2009

figures in lacsShare Capital 205.50 Funds 50352.90 Deposits 328199.81 Investment 235879.62 Loan 132823.37 Profit 4508.76 Working Capital 397383.83

TREASURY

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government

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securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

GROWTH

KCC Bank is a young and dynamic bank, with a youthful and enthusiastic

team determined to accomplish the vision of becoming a world-class Indian

bank. Our business philosophy is based on four core values - Customer Focus,

Operational Excellence, Product Leadership and People. We believe that the

ultimate identity and success of our bank will reside in the exceptional quality

of our people and their extraordinary efforts. For this reason, we are

committed to hiring, developing, motivating and retaining the best people in

the industry.Our mission is to be "a World Class Indian Bank",

benchmarking ourselves against international standards and best practices in

terms of product offerings, technology, service levels, risk management and

audit & compliance. The objective is to build sound customer franchises

across distinct businesses so as to be a preferred provider of banking services

for target retail and wholesale customer segments, and to achieve a healthy

growth in profitability, consistent With the Bank's risk appetite. We are

committed to do this while ensuring the highest levels of ethical standards,

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professional integrity, corporate governance and regulatory compliance.Our

business strategy emphasizes the following :

Increase our market share in India’s expanding banking and financial

services industry by following a disciplined growth strategy focusing on

quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver

more products to more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined

credit risk management.

Develop innovative products and services that attract our targeted

customers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce our cost of funds.

Focus on high earnings growth with low volatility.

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FINANCIAL POSITION

Membership 35442

Clientele other than members

97932

Share money16.57 crores

Reserve/Other funds 15.34 crores

Working Capital 365.63 crores

Deposits 299.27 crores

Advances 191.65 crores

Net Profit 5.47 crores

NPA0.84%

CRAR19.16%

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WORK PLACE TRANSFORMATION

FIVE “S” PART OF KAIZEN

Focus on effective work place organization

believe in

“Small changes lead to large improvement”

Every successful organization have their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. KCC BANK also acquired the Japanese technique for smooth running of work and effective work place organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank for easy and systematic work place and eliminating unnecessary things from the work place.

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BENEFIT OF FIVE “S”

It can be started immediately.

Every one has to participate.

Five “S” is an entirely people driven initiatives.

Brings in concept of ownership.

All wastage are made visible.

FIVE ‘S’

S-1 SORT SEIRI

S-2 SYSTEMATIZE SEITON

S-3 SPIC-N-SPAN SEIRO

S-4 STANDARDIZE SEIKETSU

S-5 SUSTAIN SHITSUKE

1. SORT:

It focus on eliminating unnecessary items from the work place. It is excellent

way to free up valuable floor space. It segregate items as per “require and

wanted”.

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2. SYSTEMATIZE:

Systematize is focus on efficient and effective Storage method. That means it

identify, organize and arrange retrieval. It largely focus on good labeling and

identification practices.

Objective: “A place for everything and everything in its place”.

3. SPIC- n - SPAN:

Spic-n-Span focuses on regular clearing and self inspection. It brings in the

sense of ownership.

4. STANDERDIZE:

It focuses on simplification and standardization. It involves standard rules

and policies. It establish checklist to facilitate autonomous maintenance of

workplace. It assigns responsibility for doing various jobs and decides on Five

S frequency.

5. SUSTAIN:

It focuses on defining a new status and standard of organized work place.

Sustain means regular training to maintain standards developed under S-4. It

brings in self- discipline and commitment towards workplace organization.

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HUMAN RESOURCES

The Bank continued to focus on training its employees, both on-the-job as

well as through training programs conducted by internal and external

faculty. The Bank has consistently believed that broader employee ownership

of its shares has a positive impact on its performance and employee

motivation. KCC Bank lists ‘people’ as one of its stated core values. The

Bank believes in empowering its employees and constantly takes various

measures to achieve this.

Management :-

Sh.Rasil Singh Mankotia Hon'ble Chairman of the Bank

Senior banking professionals with substantial experience in India and abroad

head various businesses and functions and report to the Managing Director.

Given the professional expertise of the management team and the overall

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focus on recruiting and retaining the best talent in the industry, the bank

believes that its people are a significant competitive strength.

Board of Directors

Sr. No. Name of the Director Phone No.

1. Shri Rasil Singh Mankotia, Chairman

V.P.O. Kale Amb, Tehsil & Distt. Hamirpur ( H.P.)

9418076361(M)

2 Shri Bhagwan Dass, Vice Chairman

VPO Sanghol, Tehsil Jaisinghpur

Distt. Kangra ( H.P.).

9418187839(M)

3 Shri Desh Raj MLA, Director

Village Dah, P.O. Dah Kulara

Tehsil Indora, Distt. Kangra

9816285008 (M)

4 Shri Ajit Paul Mahajan, Director

VPO Dohab, Tehsil Shahpur

Distt. Kangra ( H.P.)

9418489605 (M)

5 Shri Gurcharan Singh Thakur, Director Village Harmittan P.O. Nehran Pukhar Tehsil Dehra, Distt. Kangra(H.P.)

9816258935 (M)

6 Shri Joginder Singh Guleria, Director

9418085733 (M)

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VPO Dehra, Tehsil Dehra

Distt. Kangra ( H.P.)

7 Smt. Prem Lata Thakur Director,VPO Bhutti Colony, Tehsil & Distt.

Kullu (H.P.)

9816002221 (M)

8 Shri Karnail Singh Rana, Director

Village Kandi, P.O. Bhugnara

Tehsil Nurpur,Distt. Kangra(H.P.)

9418122286 (M)

9 Shri Jaid Nath Sharma Director

Village Hatli, P.O.Galore,

Tehsil Nadaun, Distt. Hamirpur (H.P.)

9418090816 (M)

10 Shri Ramesh Chand Bhatia, Director

Village Amtrar,P.O. Suneher

Tehsil & Distt. Kangra( H.P.)

9816250324 (M)

11 Shri Ranjeet Singh Rana, DirectorVillage Bhilla,P.O. Bachhwai

Tehsil Palampur, Distt. Kangra( H.P.)

9816340135 (M)

12 Shri Amrit Lal Bhardwaj, Director

9816031863 (M)

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Village & P.O. Dehlan, Tehsil &

Distt. Una ( H.P.)

13 Shri Davinder Kumar, Director

VPO Charara, Tehsil Bangana,

Distt. Una ( H.P.)

9816644040 (M)

14 Shri Karan Singh Pathania, Director

Village Bain Attarian

P.O. Kandrori, Tehsil Indora

Distt. Kangra(H.P.)

9805366394 (M)

15 Shri Rajinder Singh Director

Village Tharass,P.O. Hurla

Tehsil & Distt. Kullu ( H.P.)

9418060287 (M)

TECHNOLOGY

KCC Bank Ltd. operates in a highly automated environment in terms of

information technology and communication systems. All the bank's branches

have online connectivity, which enables the bank to offer speedy funds

transfer facilities to its customers. Multi-branch access is also provided to

retail customers through the branch network and Automated Teller Machines

(ATMs). The Bank has made substantial efforts and investments in acquiring

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the best technology available internationally, to build the infrastructure for a

world class bank. The Bank's business is supported by scalable and robust

systems which ensure that our clients always get the finest services we offer.

The Bank has prioritized its engagement in technology and the internet as one

of its key goals and has already made significant progress in web-enabling its

core businesses. In each of its businesses, the Bank has succeeded in

leveraging its market position, expertise and technology to create a

competitive advantage and build market share.

KCC BANk Ltd. business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial

services industry by following a disciplined growth strategy focusing on

quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more

products to more customers and to control operating costs. Maintain current

high standards for asset quality through disciplined credit risk

management.Develope innovative products and services that attract the

targeted customers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce bank’s cost of funds.

Focus on high earnings growth with low volatility.

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2.2 PRODUCT 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.

Forex and payment services.

Cards.

Customer center.

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PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING SERVICES

A. Accounts & Deposits

Savings Account

Regular Savings Account

Savings Plus Account

Savings Max Account

Senior Citizens Account

No Frills Account

Institutional Savings Account

Payroll Salary Account

Classic Salary Account

Regular Salary Account

Premium Salary Account

Defence Salary Account

Kid's Advantage Account

Pension Saving Bank Account

Family Savings Account

Kisan No Frills Savings Account

Kisan Club Savings Account

Current Account

Plus Current Account

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Trade Current Account

Premium Current Account

Regular Current Account

Apex Current Account

Max Current Account

Reimbursement Current Account

Fixed Deposit

Regular Fixed Deposit

Super Saver Account

Sweep-in Account

Recurring Deposit

Demat Account

Safe Deposit Locker

B. Loans

Personal Loans

Home Loans

Two Wheeler Loans

New Car Loans 33333

Used Car Loans

Overdraft against Car

Express Loans

Loan against Securities

Loan against Property

Commercial Vehicle Finance

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Working Capital Finance

Construction Equipment Finance

C. Investments & Insurance

Mutual Funds

Insurance

Bonds

Financial Planning

Knowledge Centre

Equities & Derivatives

Mudra Gold Bar

D. Forex Services

Trade Finance

Traveler’s Cheques

Foreign Currency Cash

Foreign Currency Drafts

Foreign Currency Cheque Deposits

Foreign Currency Remittances

Forex Plus Card

E. Payment Services

Net Safe

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Prepaid Refill

Bill Pay

Direct Pay

Visa Money Transfer

E-Monies Electronic Funds Transfer

Excise & Service Tax Payment

F. Access Your Bank - One View

Insta Alerts

Mobile Banking

ATM

Phone Banking

Branch Network

G. Cards

Silver Credit Card

Gold Credit Card

Woman's Gold Credit Card

Platinum plus Credit Card

Titanium Credit Card

Value plus Credit Card

Health plus Credit Card

KCC Bank Idea Silver Card

KCC Bank Idea Gold Card

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2. WHOLESALE BANKING SERVICES

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Clearing Sub-Membership

RTGS – sub membership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

3. NRI BANKING SERVICES

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Payment Services

Net Safe

Bill Pay

Insta Pay

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Direct Pay

Visa Money

Online Donation

Remittances

MILESTONES IN THE HISTORY

KCC Bank began its operations in 1960 with a simple mission to be a "World-

class Indian Bank". They realized that only a single-minded focus on product

quality and service excellence would help us get there. Today, they are proud

to say that they are well on our way towards that goal. It is extremely

gratifying that their efforts towards providing customer convenience have

been appreciated both nationally and internationally.

QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy.

The bank does this by offering life insurance and pension products.

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TRUST: The bank appreciates the trust placed by their policy holders in the

bank. Hence, it will aim to manage their investments very carefully and live

up to this trust.

INNOVATION: Recognizing the different needs of our customers, the bank

offers a range of innovative products to meet these needs.

SWOT ANALYSIS

STRENGTH

1. The biggest strength of Bank is Direct Banking channels. As Direct

banking channels saves time and money both as a customer does not

need to go to bank for any kind of transaction except cash withdrawal

and cash deposits all other things are done sitting any where in the

world.

2. All services or products of KCC Bank are available through direct

banking channels.

3. Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours

services.

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4. Very easy to access and use.

5. A highly personalized services provided by the bank.

6. KCC’s Direct Banking channels provide real time and accurate

information.

WEAKNESS:

1. Unawareness about all Direct Banking Channels due to less

advertisement.

2. Other private banks have started direct banking channels it may put

some competition to KCC Bank in near future.

3. Resistance to Change.

4. One should have the knowledge of the operations of the computers

and of course the Internet.

OPPURTUNITIES:

1. Centralized banking makes easy for KCC Bank to provide

services to customers.

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2. Huge market of shareholders.

THREATS:

1. Vulnerable to reactive attack by competitors.

2. Attacks of web hackers.

3. Lack of infrastructure in rural areas could constrain investment.

4. High volume / low cost market is intensely competitive.

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CHAPTER NO-2

REVIEW OF

LITERATURE

36

Consumer’s Perceptions On KCC Bank

At KCC Bank, I was assigned with the topic as “Consumers Perceptions on

KCC Bank” for my project work. I joined the company as a Personal Banker.

The selection of the topic was to know how the company generates business

through them.

Personal Banker are those sources of a company who have their own relations

and personal contacts among common public that they use to generate

business through.

1.2 REASON FOR SELECTION OF THIS TOPIC:

The financial sector is one of the booming and increasing sectors in India. The

Personal Banker are one of the most powerful, efficient and effective channel

through which the company sales its various types of financial products and

company takes operational work also. It is really difficult to convince

customers and sell a single product and accomplish operational work.

Satisfied customers are central to optimal performance and financial returns.

In many 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

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be incorporated in strategic planning efforts. Forward-looking companies are

finding value in directly measuring and tracking customer satisfaction as an

important strategic success indicator. Evidence is mounting that placing a

high priority on customer satisfaction is critical to improved organizational

performance in a global marketplace.

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 used within 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

confusion about what exactly is required and how to go about it. This study is

38

an attempt to review the necessary requirements, and discuss the steps that

need to be taken in order to measure and track customer satisfaction.

IMPORTANCE TO THE COMPANY:

The ultimate purpose of giving me this topic was to know about the

customer’s perceptions about the different products of the bank, and to know

about operational process. how these products can attract them and how the

company can generate maximum profit by convincing them through personal

banker and to better understand customer requirement and to understand

operational methodology.

LEARNING FROM THE STUDY:

The process of bank related transaction, bank related various terms, work

environment of KCC Bank. Different products and services provided by the

bank. Customer perception about the different product and the brand image

of the bank. What are the problems faced by customer on daily basis. How to

communicate with the customers. Different techniques of dealing with the

customers. How to convince and convert a customer into a real customer.

The literature available in the field under reference is very limited in nature

and scope.The literature obtained by investigation in the form of reports of

the committees. Commissions working groups established by the Union

Government and RBI, the Research studies/articles of researchers/ bank

39

officials/ economists and the comments of economic analysts and news is

reviewed here in this section:

Patel and sayed (1980) of the National Institute of Banking Management made

a

valuable analysis of performance and prospects of RRBs. They also gave a

comparative

picture of performance in deposits, branch expansion and credit deployment

of the cooperative banks, commercial banks and RRBs in a specified area.

This was an eye opener for many researcher engaged in this field of rural

credit.

Financial Express, (1986) published a study on RRBs viability, which was

conducted by

Agriculture Finance Corporation in 1986 .The study revealed that viability of

RRBs was essentially dependent upon the fund management strategy, margin

between resources mobility and their deployment and on the control exercised

on current and future costs with advances. The proportion of the

establishment costs to total cost and expansion of branches were the critical

factors, which affected their viability. The study further concluded that RRBs

incurred losses due to defects in their systems and as such, there was need to

rectify these and make them viable. The main suggestions of the study

included improvement in infrastructure facilities and opening of branches by

commercial banks in such areas where RRBs were already in operation.

40

However the main limitation of the study was that its generalizations were

based on the study of the Gramin Bank Kangra.

RENDIL. (1988) conducted a study on RRBs taking a sample of 48

beneficiaries of

rural artisans in various district of kashmir under J&K Bank. In this study, it

was concluded that the beneficiaries were able to find an increase in their

income because of the finance provided by the bank

BALMI (1990) in his study on Performance and Growth of Regional Rural

Banks in Kangra found that these banks had benefited the beneficiaries in

raising their income, productivity, employment and use of modern practices

and rehabilitate the rural artisans

SINDHU (1993) carried out a study on the topic “Growth and Performance

of RRB in kangra.” On the basis of the study of all RRB of kangra, it is found

that there was an enormous increase in deposits and outstanding advances.

The researcher felt the need to increase the share capital and to ensure

efficient use of distribution channels of finance to beneficiaries.

RASIL SINGH (1996) conducted a study with the objective of analyzing the

role of Regional Rural Banks in Economic Development and revealed that

RRBs have been playing a vital role in the field of rural development.

Moreover, RRBs were more efficient in disbursal of loans to the rural

borrowers as compared to the commercial banks. Support from state

Governments, local participation, proper supervision of loans and opening

41

urban branches were some steps, which should be taken to make RRBs

'further efficient.

SAMEER (2002) Policies of current phase of financial liberalization have had

animmediate, direct, and dramatic effect on rural credit. There has been a

contraction in rural banking in general and in priority sector landing and

preferential landing to the poor in particular.

AJIT PAL (2004) has examined the growth and regional distribution of rural

banking over the period 1975-2002. The documents gains made by historical

underprivileged region of east, north-east, and central kangra during the

period of social and development banking. These gains were reversed in the

1990s.

42

CHAPTER NO-3NEED,SCOPE,AND RESAERCH METHODOLOGY

43

RESEARCH METHODOLOGY

Introduction and meaning

Research methodology is way to systematically solve the research problem. The research methodology includes the various methods and techniques for conducting a research. D. Salinger and M. Stephenson in the encyclopedia of social sciences define research as “the manipulation o things, concepts or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art”

Research is a careul investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies information. Required to address these issues: designs the method for collecting information: manage and implements the data collecting process analyses the results and communicates the finding and their implecations.

RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT

PROBLEM DEFINATION:

Personal Banker were with good background human being and through

rigorous process of recruitment but still not able to perform up to the

expectation level of company, HR is not able to sort out the problem why the

performance is not coming even after giving the full marketing and

operational support. So there is need to study the customers perception and

attitude towards the various products and services provided by the bank.

44

RESEARCH: - It means search for facts, answers to questions and solutions

to problems.

RESEARCH DESIGN:

Research design constitutes the blue print for the collection, measurement and

analysis of data. The present study seeks to identify the perception of

consumers on KCC Bank in Kangra. The research design is exploratory in

nature. The research has been conducted on users within Kangra. For the

selection of the sample, convenient sampling method was adopted and an

attempt has been made to include all the age groups and gender within

different occupation.

Type of Research

The present study will adopt the exploratory approach wherein, there is a

need to gather large amount of information before making a conclusion.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self

Administration. Due to time limitation and other constraints direct personal

interview method is used. A structured questionnaire was framed as it is less

time consuming, generates specific and to the point information, easier to

tabulate and interpret. Moreover respondents prefer to give direct answers.

45

COLLECTION OF DATA:

1: SECONDARY DATA: It was collected from internal sources. The

secondary data was collected on the basis of organizational file, official

records, news papers, magazines, management books, preserved information

in the company’s database and website of the company.

2: PRIMARY DATA: All the people from different profession were

personally visited and interviewed. They were the main source of Primary

data. The method of collection of primary data was direct personal interview

through a structured questionnaire.

SAMPLING PLAN: Since it is not possible to study whole universe, it

becomes necessary to take sample from the universe to know about its

characteristics.

Sampling Units: Different professionals. Chartered Accountants, Tax

Consultants, Lawyers, Business Man, Professionals and Students of Kangra.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

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, it

was necessary for me to take a sample size of 50 respondents.

46

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of

collection of data will be based on Survey Method and Field Activity. Primary

data collection will base on personal interview. I have prepared the

questionnaire according to the necessity of the data to be collected.

LIMITATIONS OF THE STUDY

It is said, “nothing is perfect” and there would be few shortcoming in this

project also. Sincere efforts have been made to eliminate discrepancies as far

as possible but few would have remained due to limitation of the study.

Time seemed to be our most limited resource. To conduct a comprehensive

research project in a 6 week period is very difficult.

The absence of appropriate funding limited the extent of our study. With

additional financial resources, the scope of our study could have been

enlarged, resulting in a more representative study.

Interview bias could not be avoided as in case of many surveys open ended

questions involve the use of probing techniques that increase interview bias.

However, as our study did not use many open ended questions, the extent of

the bias was reduced.

It was not possible to understand thoroughly about the different marketing

aspects of the Financial Consultant within 45 days. As stipend, money was not

given it was difficult to continue the project work. All the work was limited in

some limited areas of Kangra so the findings should not be generalized. The

area of research was Kangra and it was too vast an area to cover within 45

days.

47

CHAPTER NO-4OBJECTIVES

48

OBJECTIVES OF THE STUDY

The objective behind the conducting project exercise was

to get useful insight about the banking sector. I have

prepared this report with some specific objectives. The

primary objective of our study is to analyze the efficiency and effectiveness by

the kcc bank. The objective of our study is as under:

PRIMARY OBJECTIVES:

To study the customers perception about KCC Bank.

To measure the awareness level of people regarding direct banking

channels, products offered by KCC bank.

To study brand image of the bank.

To increase the business of the bank.

SECONDARY OBJECTIVES:

To evaluate the overall satisfaction level of customers regarding

services and products offered by the bank.

To acquire new customer by convincing them and to promote the

benefits of those which are provided by the bank.

To find the different way of convincing customers.

49

To assess the customer contribution towards the growth of the bank

(in terms of recommendations for changes and improvements).

To determine the need and purpose of a personal banker

CHAPTER

NO-5

ANALYSIS AND

INTERPRETATION

50

QUESTION WITH 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:-

Q.1 Your Occupation?

Category No. of Respondents Percentage

Business 14 28

Profession 12 24

Service 18 36

Students 6 12

51

Business Profession Service Student0%

5%

10%

15%

20%

25%

30%

35%

40%

28%

24%

36%

12%

%age

%age

Interpretation From above response it can be seen that.

• 28% respondents Occupation is Business.

• 24% respondents Occupation is Profession.

• 36% respondents Occupation is Service.

• 12% respondents Occupation is Student.

•

Q.2 From which bank you have bank account?


KCC Bank 17 34

Others 33 66

52

34%

66%

%age

KCC BankOther

Interpretation From above response it can be seen that

34% respondents have account with KCC bank.

66% respondents have account with others bank.

Q.3. Why you want to open an account in bank ?


Efficient service 24 48

Convenient location 14 28

Acquaintance 8 1653

Others 4 8

Efficient service Convenient location Acquaintance Other0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

48%

28%

16%

8%

%age

%age


• From the survey we came to know that 48% people prefer services of the bank for opening the account.

• About 28% people open account in the bank for the convenient location.

• 26% people open account because of acquaintance with the bank officers

• only 8% people open account because of other reason.

Q.4. Do you want to open an account with KCC bank?

54


Yes 12 24

No 21 42

Not Idea 17 34

24%

42%

34%

%age

YESNONot Idea


24% respondents want to open an account in KCC bank.

42% respondents does not want to open an account in KCC bank.

34% respondents are already customers of KCC bank.

55

Q.5. what is your perception about different products/services provided by

KCC bank?


Lucrative 24 48

Not Lucrative 21 42

No Idea 5 10

LUCRATIVE NOT LUCRATIVE NO IDEA0%5%

10%15%20%25%30%35%40%45%50%

48%

42%

10%

%AGE

%AGE


48% respondent’s perception about different products is lucrative.

42% respondent’s perception about different products is not lucrative.

10% respondent’s have no idea.

56

Q.6.Are you aware that the KCC bank provides you free phone banking & net

banking services.


Yes 32 64

No 18 36

64%

36%

%AGE

YESNO


64% respondents are aware of it.

36% respondents are not aware of it.

57

Q.7. Are you aware of different terms and conditions which are very much

essential to maintain an account at KCC Bank?


Yes 17 34

No 33 66

YES NO0%

10%

20%

30%

40%

50%

60%

70%

34%

66%%AGE

%AGE


34% respondents are familiar with different terms and conditions

which are very much essential to maintain account with the bank.

66% respondents have no idea about it.

Q.8. Is the staff of KCC bank is co-operative ?58


Yes 34 68

No 11 22

No Idea 5 10

YES NO NO IDEA0%

10%

20%

30%

40%

50%

60%

70%

68%

22%

10%

%AGE

%AGE


68% respondents believe that staff of KCC bank is co-operative.

22% respondents believe that staff of KCC bank is not co-operative.

10% respondents have no idea.

59

Q.9. Do you think that KCC bank provides innovative products and superior

services?


Yes 37 74

No 13 26

74%

26%

Sales

YESNO


74% respondents believe that KCC bank provides innovative products and

superior services.

26% respondents believe that KCC bank does not provide innovative

products and superior services.

60

Q.10. If you get opportunity in future would you like to be attached with

KCC bank ?


Yes 38 76

No 12 24

76%

24%

Sales

YESNO


76% respondents want to attach with KCC bank.

24% respondents doesn’t want to attach with KCC bank.

61

CHAPTER

NO-6CONCLUSION

AND

RECOMMENDATION

62

CONCLUSIONS AND RECOMMENDATION

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 market segmentation and 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

people have more faith in public sector banks as compare to private banks.

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.

63

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 Marketing and Operation. I hope the company finds my analysis

relevant.

64

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 provide 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

65

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 two months.

Mindset of people may very 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 properly.

66

ANNEXURE-1

QUESTINNAIRE

ANNEXURES

67

1. QUESTIONNAIRE

I am a student of “Sri Sai University Palampur” presently doing a project on“Consumers Perception on KCC Bank”. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential.

Dear Sir/Madam,

Name: ………………………………………………………………………..

Address: ……………………………………………………………………..

Contact No :®………………( O)……………… (M)………………………

City: ………..................... Pin: ………………….…………………

1. Your Age: ____________________

2. Education Qualification.

a. Undergraduate

b. Graduate

c. Postgraduate

3. Marital Status .

a. Married

b. Single

4. Number Of year’s Are You in Kangra.

a. Less than five year’s

b. More than five year’s

68

5. Occupation.

a. Business

b. Profession

c. Service

d. Student

6. Your annual household income.

a. <than 2 lack

b. Between 2 to 5 lack

c. Between 5 to 8 lack

d. >than 8 lack

7. From which bank you have account?

a. KCC

b. Others

8. Why you want to open an account in bank ?

a. Efficient Service

b. Convinient location

c. Acquaintance

d. Others

9. What is your perception about different products and services offered by

KCC Bank?

a. Lucrative

69

b. Not lucrative

c. No idea

10. Do you want to open an savings account with KCC Bank?

a. Yes

b.No

11. Are you aware of that KCC Bank provide you free phone banking & net

banking services.

If you open a new savings account with KCC bank?

a. yes

b. No

12. Are you aware of different terms and conditions which are very much

essential to maintain an account at KCC Bank?

a.Yes

b.No

13. Is the staff of KCC bank is co-operative ?

a.Yes

b.No

14. Do you think that KCC bank provides innovative products and superior

services?

a.Yes

b.No

15. If you get opportunity in future would you like to be attached with KCC

bank?

a.Yes

70

b.No

Date:

Signature

Thank You

71

ANNEXURE-2

BIBLIOGRAPHY

72

BIBLIOGRAPHY

S.NO AUTHOR’S NAME: NAME OF THE BOOK

1. PHILIP KOTLER Marketing Management

(10th Edition),

2. V.S.RAMASWAMY Marketing Management

(3rd Edition),

3. C.R.KOTHARY Research Methodology

(2nd Edition),

4. S.P.KASANDE Research methodology

(3rd Edition),

NEWS PAPERS: Times of India

Financial Express

WEB REFERENCES

http:www.kccb.com/consumer perception_rshn.htm

http:[email protected]/profile/paper.htm

http:www.faculty.rsu.edu/history/mgtfayol.html

http:www.mr-guide.com/data/G510.htm

http:www.sancharnet.com/lo_index.htm

73

arzoo project report

Documents

project work

project report

work of research project

summer internship project

kcc bank nagripalampur

kcc consumer perceptions

effective management

management era