customer satisfaction towards j&k bank by wani aadil

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SUMMER TRAINING REPORT

ON

“ANALYSIS OF CUSTOMER SATISFACTION IN BANKING

SECTOR OF JAMMU & KASHMIR BANK”

Submitted in partial fulfilment of the requirements

for the award of degree of

Bachelor of Business Administration (BBA)

Affiliated To

Deenbandhu Chhotu Ram University of Science & Technology (DCRUST), Murthal

Submitted to:- Submitted by:-

Vikas Deswal Aadil Hussain Wani

(Astt. Proffessor) R.NO:- 13004031001

BBA 5th Sem.

Bharat Institute Of Technology Sonepat(BITS)

Haryana-131001

Batch (2013-16)

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CERTIFICATE

This is to certify that the project work titled “ANALYSIS OF CUSTOMER SATISFACTION” is abonafied work of Aadil Hussain Wani, Roll No-13004031001. It is carried out in the partialfulfillment for the award of degree BBA of DCRUST Murthal under mutual guidance. Thisreport has not been submitted earlier for the award of any degree/diploma of any otherinstitution/University.

Signature of the Guide

Date:

Name of the Guide:

Designation:

Countersigned

Prof.

Director

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Analysis of Customer Satisfaction inBanking Sector of Jammu & Kashmir Bank”. The work would not have been possible tocome to the present shape without the able guidance, supervision and help to me bynumber of people.......................................

With an overwhelming sense of gratitude, I acknowledge the valuable guidance andconsistent encouragement extended to me by our knowledgeable faculty members likeGulzar Ahmad with whose guidance, I am able to accomplish this endeavour. Their technicalacumen and years of experience have provided me with crucial inputs at a critical stage.

I also extend my heartfelt thanks to my family and friends for their support directly orindirectly provided to me.

.........................................

Enrolment no.______________________

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EXECUTIVE SUMMARY

In the present age, the corporate world has become highly competitive. Hence, only thatservice company can sustain which enjoys a competitive edge over the others. This requiresthe formulation of policies and strategies keeping in view the existing financial position, butformulation of these strategies is only possible when the company enjoy a strongknowledge base of the environment prevailing. Assessments of environmentalposition/condition of an industry/a company on the part of managementtrainee/management require coupling his/her theoretical knowledge with some practicalexposure and experience.

The project is an attempt to find out the way of customer satisfaction adopted by the banksin the real world. So that it would be useful for a manager and staff in the real businesswhen he will have the responsibility to do the same .

The research methodology in this project is of descriptive nature. A comprehensive studywas done to gather the primary data by conducting personal interview.

For any bank, which exists, the prime motive is that it should be concerned with thecustomer satisfaction. In today’s competitive scenario where there is a lot of competition,the emphasis was to study the usefulness of the current schemes and services of the J&KBank Ltd, and also to study the working result so as to find out what is still required in thebanking industry to face competition at all levels.

The project was a great source of learning and a good experience as it made us aware ofprofessional culture and conduct that exist in the organization.

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CONTENTS

S.no Topic Page No.

1 Certificate(s) 2

2 Acknowledgements 3

3 List of Abbreviations 6

4 Chapter-1: Profile of the Firm/Company 7

5 Chapter-2: SWOT Analysis of the company 28

6 Chapter-3: Analysis of Financial Reports of the company 30

7 Chapter-4: Lessons Learnt 49

8 Body of the report 58

9 Reference/Bibliography 59

10 Appendices 60

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LIST OF ABBREVIATIONS

S.No. Abbreviated Name Full Name

1 CRM Customer Relationship Managment

2 EPS Earning Per Share

3 CS Customer Satisfaction

4 Int Introduction

5 DA Data Analysis

6 R/B Reference & Bibliography

7 MRK Marketing

8 TC Table of Content

9 J&K B Jammu & Kashmir Bank

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CHAPTER-I

PROFILE OF THE COMPANY

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PROFILE OF THE COMPANY

INTRODUCTION

What is bank?

Bank is defined as an institution for the keeping, landing and exchanging etc. of money.Economists have also defined a bank highlighting its various functions. According toCrowther, the banker business is to take the debt of other people to offer his own inexchange and thereby create money.’’ Thus a bank is an institution that accepts depositsfrom the public in turn advances loans by creating credit.

It is different from other financial institutions in that they can’t create credit though theymay be accepting deposits and making advances.

Types of banks

Commercial banks: are those banks, which perform all kinds of banking functional such asaccepting deposits, advancing loan and agency functions. They are also called joint stockbanks as they are organized in the same manner as joint stock companies. They usuallyadvance short term loans to customers some of commercial banks in India are Andhra Bank,Canara Bank, Indian Bank, PNB etc.

Exchange banks: are those banks, which deal in foreign exchange and specialize in financingtrade. They are called foreign exchange banks. In India these exchange banks have theirhead offices located outside India. These banks also render other services such as collectingand supplying information about the foreign customers providing remittance facilities etc.such as chartered bank, Gridlays bank.

Industrial banks: are those banks, which provide medium term and long term finance forindustries for the purchase of land, machinery, etc. They underwrite the debenture andshares of industries and also subscribe to them such as industrial development bank ofIndia, industrial finance corporation of India etc.

Agricultural banks: are those banks, which provide cr. To farmers for short term, mediumterm and long term needs. In India, commercial banks, regional rural banks and agriculturalco-operative banks provide short term loans to farmers. Such as national bank foragriculture and rural development, NABARD

Cooperative banks: are those banks, which are organized on the principle of cooperation.They provide short term, medium term loans to their members. In rural area there areagriculture cooperative banks, which are also cooperative banks, which perform thefunction of ordinary commercial banks but give loan to their members only.

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They also get funds from the RBI. There is a state cooperative bank in every state of Indiawith its branches at the district level known as the central cooperative banks.

Saving banks: helps promote small saving and mobilize them. They have been verysuccessful in Japan and Germany. In India post office act as saving bank.

Central banks: is the apex bank, in a country, which controls its monetary, and bankingstructure. It is owned by the govt. of the country and operates in national interest. Itregulates and issues currency, performs banking and agency services for the state, keepscash reserves of commercial bank, keeps & manages international currency, act as thelender of the last resort, acts as the clearing house and controls of credit. The RBI is thecentral bank in India.

Banking system

The banking system is an integral sub-system of the financial system. It represents animportant channel of collecting small saving from the households and lending it to thecorporate sector.

The Indian banking system has the RBI as the apex body for all matters relating to thebanking system. It is the ‘central bank’ of India. It is the bankers to all other banks.

Functions of RBI:

1. Currency issuing authority.2. Banker to the government.3. Banker to other banks.4. Farming of monetary policy.5. Exchange control.6. Custodian to foreign exchange and gold reserves.7. Development activities.8. Research and development in the banking sector.

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1.1 company profile of the organization

The Jammu & Kashmir bank is today one of the fastest growing banks in India network ofmore than 664 branches/offices spread across the country offering world class bankingproducts/services to its customers . Today, the Bank has a status value driven organizationand is always working towards building trust with Shareholders, Employees, Customers,Borrowers, Regulators and other diverse stakeholders, for which it has adopted a strategydirected to developing a sound foundation of relationship and trust aimed at achievingexcellence in all pursuits. J&K Bank considers good Corporate Governance. GoodGovernance is a source of competitive advantage and a critical input for achievingexcellence in all pursuits. J&K Bank considers good corporate Governance as the sine quanon of a good banking system and has adopted a policy based on all the four pillars of goodgovernance-transparency, fairness and control, leading to stakeholders delight, enhancedshareholder value and ethical corporate citizenship. It also ensures that bank is managed byan independent and highly qualified Board following best globally accepted practices,transparent disclosures and empowerment of shareholders, besides ensuring to meetshareholders aspirations and societal expectations following the principals of management’sexecutive freedom to drive the bank forward without undue restraints but within theframework of effective accountability. The excellence achieved by the bank in its operationsstemming from the roots of voluntary good Governance has not gone unrecognized andBank has recently bagged three very prestigious awards for following fair business practicesand commitment to social obligations.Only on domestic front but also for the foreign exchange earnings. The bank disturbedadvances to the tune of Rs 5.76Lakh in first year Entire banking in the state of Jammu andKashmir was performed by traditional lenders till 1920-30 and that too at exorbitant interestrates. At the same time some banks functioned at a very limited scale, such as PunjabNational Bank Limited, Grindlay’s Bank and Imperial Bank of India.

The role of these banks was reduced to the acceptance of deposit, as they could not grantloans and advances to the people of the state owing to the statutory limitations. Under thisscenario banks could not ameliorate the financial and social position of the people of thestate. To overcome this critical situation then Maharaja of the state conceived an idea ofsetting up of a state bank in the state. After a prolonged exercise and deliberations theassignment for establishment of “The Jammu and Kashmir Bank Limited” was given to thelate Sir Sorabji N Pochkhanwala, the Managing Director of the Central Bank of India.

Mr. Pochkhawala formulated a scheme on 24-09-1930, suggesting establishment of a semistate Bank with participation in capital by state and the public under the control of stateGovernment. Thus the bank was formally incorporated on the 01-10-1938 and commencedbusiness from 4th of July 1939 at its registered Office Residency Road Srinagar, Kashmir.

The Jammu and Kashmir Bank Limited has been the first of its nature and composition as astate owned bank in the country. The state government besides contributing half of the

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issued capital also appointed it as its bankers for general banking and treasury business. Inits formative years, the bank had to encounter several serious problems, particularly aroundthe time of independence, when out of its total of ten branches two branches ofMuzaffarabad and Mirpur fell to the other side of the line of control(now Pak AdministeredKashmir) along with cash and other assets in 1947. However the State Govt. came to itsrescue with the assistance of Rs 6.00Lacs to meet the claims however the bank stead fastilyover came its difficulties and kept growing.

Following the extension of Central laws to the state of Jammu & Kashmir, the bank wasdefined as a govt. company as per the provisions of Indian companies act 1956. The bankhad its first full time chairman in 1971, following social Central measures in banks. The year1971 was a turning point for the bank on conferment of scheduled bank status andwitnessed 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 exaltedperformance, Reserve bank of India appointed the bank as its agent for performing thegeneral banking business of the Central Govt. especially in maintaining currency chests andcollection of taxes. The landmark achievement of the bank in some important fields ofoperation since its inception to March 2011 are detailed below:

Brief Profile: Jammu & Kashmir Bank is the only Bank in the country with majorityownership vested with a state government- the Government of Jammu & Kashmir.

J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialized bank in therest of the country. It is also the only private sector bank designated as RBI’s agent forbanking business, and carries out the banking business of the Central Government, besidescollecting central taxes for CBDT.

J&K Bank follows a two-legged business model whereby it seeks to increase lending in itshome state which results in higher margins despite modest volumes, and at the same time,seeks to capture niche lending opportunities on a pan-India basis to build volumes andimproves margins.

J&K Bank operates on the principle of ‘socially empowering banking’ and seeks to deliverinnovative financial solutions for household, small and medium enterprises.

The Bank, incorporated in 1938, and is listed on the NSE and the BSE. It has a track record ofuninterrupted profits and dividends for four decades. The J&K Bank is rated P1+, indicatingthe highest degree of safety by Standard & Poor and CRISIL.

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Registered Office

M A Road Srinagar 190001 Jammu & Kashmir

Corporate Headquarters

M A Road Srinagar 190001 Jammu & Kashmir www.jkbank.net

1.2. Explain the nature of the organization and its business support services

Technology application has remained the thrust area of the Bank for last many years with anobjective to offer state of the art world class banking facilities to its customers. The Bankcontinued to leverage information technology as a strategic tool for its business operations,to gain competitive edge in customer service as well as improving productivity andefficiency. The Bank’s IT strategy emphasizes enhanced level of customer services through24*7 availability, multi-channel Banking and cost efficiency through optimal use ofelectronic channels, wider market reach and opportunities for cross-selling. The Bank’sfocus is on harnessing technology for integrating diverse products and services. Keeping thisin view, the Bank continued to widen the scope of multiple delivery channels such as ATMinstallations. Anywhere Banking, Internet Banking and SMS Banking at more & morecentres.

Anywhere Banking Features

Power to Access to your accounts across our branch network. The facilities include Cash Deposit/Withdrawal and transfer. Outstation Cheque collection.

Internet Banking Features

Available for both Retail and Corporate users SMS Banking Funds Transfer Submit the filled form at your branch for creation of your Internet banking user

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Corporate/Retail Internet Banking

Both corporate and retail clients can access their accounts anytime and from any locationvia the World Wide Web. Presently following services are available to the corporate clients:

Access/view of accounts

Transfer of Funds between self linked accounts maintained with our bank. Transfer of Funds from their own accounts to external accounts (e.g. vendor

payment). Transfer of Funds from external to own accounts (e.g. dealer collection). Transfers of Bulk upload. Transfer to non J & K Bank accounts holders through RBI NEFT/RTGS. Utility bill payments.

E-commerce facility for JK Bank E-banking customers

J &K Bank Secure Payment Gateway, to provide e-commerce facility to the e-bankingcustomers.

Tie up with M/S Avenues India Pvt. Ltd (Ceavenue) and M/S Bill Desk, for extendinge-commerce facility to the e-banking customers.

The facility shall be available to only such e-banking users, which have been enabledby the Bank for Bill Payment facility.

E-banking users intending to purchase goods online through the Ceavenue shoppingsite shall be required to:

Logon to the Master Merchant’s (M/S Avenues India Pvt. Ltd.) websitehttp://world.ceavenue.com/content/clients.jsp.,

Select the item to be purchased. Select e-banking as the mode of payment. Select the J & K Bank and the system will take the user to the J & K Bank’s e-banking

site promoting him to enter his e-banking user-id and password. After entering the Bank’s e-banking site the customer will be able to pay the amount

of bill by debit to its own account. M/S Bill Desk-is a useful service that provides customers a single point of contact for

all your payment needs. Our customer can pay bills and make other paymentsonline. Instead of writing a cheque each time, now our customers can use any deviceconnected to the internet (computer, kiosk, etc) and make payments with the clickof a mouse. In effect, through Bill Desk customers can now make All Payments at aSingle Location.

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E-Payment of Tax for

JK Bank Banking customers NSDL (National Securities Depository Ltd.), the first and largest depository in India,

established in August 1996 and promoted by institutions of national statureresponsible for economic development of the country has since established a

national infrastructure of international standards that handles most of the securitiesheld and settled in dematerialised form in the Indian capital market.

Tax Information Network (TIN), a repository of nationwide tax related information,has been established by National Securities Depository Limited on behalf of IncomeTax Department of India (ITD).

Although India had a vibrant capital market which is more than a century old, thepaper-based settlement of trades caused substantial problems like bad delivery anddelayed transfer of title recently.

E-payment facilities payment of direct taxes online by taxpayers. To avail of thisfacility the taxpayer is required is required to have a net-banking account with any ofthe banks certified by NSDL, CBDT and RBI for collection of Direct TAX. J&K Bank hasbeen added to the list. Also, e-payment of Indirect Tax for J&K state Govt. has beenadded to our services.

SMS Banking

Be in touch with your account on the move features Balance Enquiry Transaction Enquiry Cheque Status Enquiry

ATM Services Features

A network of more than 390 ATMs deployed across the country. Accepting Maestro/Cirrus/MasterCard/VISA/NFS ATM/debit/credit cards.

Debit Cards Features

Pin Based-Maestro/Cirrus Debit Card. Provides online access to saving or current account. Accepted at all domestic as well as international MasterCard™, Maestro™, Cirrus™

Enabled ATM’s and Point of Sale locations. Accepted at National Financial Switch (NFS) ATM’s. No transaction Fee at JK Bank ATM’s. No transaction Fee on purchases.

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Credit Cards Features

20-50 day Credit Free Period. Revolving Credit Facility on playing of minimum payment due in the same billing

period. Hassle free credit facility at competitive rate of interest. Cash Withdrawal Facility up to 20% of total credit limit. Loyalty programme MasterCard® Secure Code™ enabled Credit Cards J&K Bank lets you sop securely

online with your J&K Bank MasterCard Credit Card. This service through a simplecheckout process, conforms your identity when you make purchases on the internet

To use the facility, you would: Connect to the internet and shop online using your Bank Credit Card. You don’t need any special software to use MasterCard Secure Code. Using this facility is as easy as using a PIN for ATM transactions. Grievance Nodal Officer for Credit Cards. Mr. Parvez Ahmad 0194-2486427 [email protected] Card Issuing and Acquiring Department; Corporate Headquarters J&K Bank

Most Important Terms and Conditions (JK Bank Credit Card)

One Time Password (OTP) for IVR transactions: Effective January 1, 2011, as mandated byReserve Bank of India (RBI), Credit-Card-issuing Banks in India have introduced an additionalmeasure of security for IVR transactions (Interactive Voice Response transactions are thosetransactions which are made over the phone where certain Credit-Card details are to beentered into an automated system in order to make payment to a merchant for thepurchase of goods/services) through their Credit Cards & the OTP (One Time Password)generation.

What is an OTP?

An OTP is a six-digit code, valid for a limited period from the time of placing a request for it.You will need to obtain an OTP before every IVR payment transaction.

How to obtain an OTP?

You can obtain the OTP by visiting http://www.jkbank.net/jksip.php and logging in to J&KBank Secure Internet Payment. A link Pre OTP is available for generating the OTP whichwould be emailed to your registered email. Alternatively, the OTP can be displayed on thescreen by clicking on the small check box provided for the purpose.

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How to use the OTP?

The OTP is required at the time of making payment on the IVR, where you will be promptedto enter it along with the other details like your credit-card number, card expiry date andCVV number.

Merchant Acquiring/ Features

All types of Visa & MasterCard based cards Accepted. Quick Merchant Payment. Merchant Helpdesk and Onsite Support. Competitive Commission Rates. No hidden Charges.

Basic Information

Depository: A depository is like a bank where securities are held in electronic(dematerialized) form.

Dematerialization: It is the process of converting the securities held in physical form(certificates) to an equivalent number of securities in electronic form and crediting the sameto the investor's demat account. Dematted securities do not have any certificate numbers ordistinctive numbers and are dealt only in quantity i.e. the securities are replaceable.

Stock Broking through INVESTMART an initiative of ILFS: You can avail the facility of buyingand selling of shares under single roof. It integrates your Broker, DP and Bank on a singleplatform. You may open a trading account by opening a Demat account with J&K BANK,SAVING ACCOUNT with J&K BANK and Stock Broking Account by filling Investor Registrationform of INVESTMART an initiative of ILFS and our business partner for providing brokingservices. For further queries you may contact the DP branches of J&K Bank.

Depository Participant of NSDL and CDSL: In our country there are two central depositories- National Securities Depositories Limited (NSDL) and Central Depository Services Limited(CDSL).J&K BANK is Depository Participant of both NSDL and CDSL.

Under the Depositories Act, investors can avail of the services of the depositories throughDepository Participants (DPs) such as J&K BANK. DPs are like bank branches wherein sharesin physical forms need to be deposited for converting the same to electronic (demat) form.Market transaction: When securities are transferred from a beneficiary account of aninvestor to a clearing member account of a broker for ensuring delivery of securities on astock exchange, then it is a market transaction.

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Off-market transactions: When securities are transferred from the beneficiary account ofone investor to that of another, and the transaction does not get routed to the stockexchange, it is an off-market transaction.

Rematerialisation (Remat)

It is the process of conversion of securities from electronic to physical form.

Third party service of Mutual Funds

J&K Bank has entered into tie-ups with reputed Asset Management Companies fordistribution of Mutual Fund products.

Mutual Fund industry is one of the fastest growing segments in financial services in India.Over the years, banks in India have emerged as the biggest distributors of financial products.This has helped the banks to capture and retain their huge client base and simultaneouslyadding a steady stream of fee based income.

Mutual Funds have become an attractive proposition for investors in the current contextand for J&K Bank it will be a good investment option to have in our product portfolio. Thisshall be an important step towards converting the bank branch into a financial supermarketaddressing all the financial needs of the customers thus helping the bank retain thecustomers within its fold.

Moreover the branch can augment its fee based income the Bank aims to match to industrystandards.

The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak andReliance Mutual Fund. The Bank shall undertake distribution of their current schemes aswell as NFO (New Fund Offer) as and when the AMC comes up with the same.

Insurance Services -Life Insurance

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and wasincorporated as a joint venture between MetLife International Holdings, Inc., The Jammu andKashmir Bank, M. Pallonji and Co. Private Limited and other private investors.MetLife is one of the fastest growing life insurance companies in the country. It serves itscustomers by offering a range of innovative products to individuals and group customers atmore than 600 locations through its bank partners and company- owned offices. MetLife hasmore than 32,000 Financial Advisors, who help customers achieve peace of mind across thelength and breadth of the country.MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas,Asia Pacific and Europe. Affiliated companies, outside of India, include the number one lifeinsurer in the United States (based on life insurance in force), with over 140 years ofexperience and relationships with more than 90 of the top one hundred FORTUNE 500®companies. The MetLife companies offer life insurance, annuities, automobile and home

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insurance, retail banking and other financial services to individuals, as well as groupinsurance, reinsurance and retirement and savings products and services to corporations andother institutions.The bank is also Corporate Agent of MetLife and is marketing its products through its strongbranch network. Visit the MetLife Website for the details on products

1.3. Mission & Vision

VISION“To catalyse economic transformation and capitalise on growth.”

Our vision is to engender and catalyse economic transformation of Jammu and Kashmir andcapitalise from the growth induced financial prosperity thus engineered. The Bank aspires tomake Jammu and Kashmir the most prosperous state in the country, by helping create anew financial architecture for the J&K economy, at the center of which will be the J&K Bank.MISSIONOur mission is two-fold: To provide the people of J&K international quality financial serviceand solutions and to be a super-specialist bank in the rest of the country. The two togetherwill make us the most profitable Bank in the country.VALUES: Customer Sovereignty, Passion for Excellence, Continuous Innovation,Transparency & Integrity, People Orientation and Social Responsibilities are the corevalues at the J&K Bank.PHILOSOPHY: The Banks Corporate Governance philosophy is woven around its totalcommitment to the ethical practices in the conduct of its business, while striving in theconstant quest to grow with profits and enhance shareholders value and align the interestsof the Stakeholders and Society through adoption of best international practices andstandards. The Corporate Governance policies of your Bank recognize the accountability ofthe Board vis-a-vis its various constituents including customers, shareholders, investors,employees, Government and regulatory authorities and societal responsibilities as acorporate citizen.J&K Bank is committed to the best and transparent corporate governance practices. Itbelieves that proper corporate governance practices leads to effective management andcontrol of business, which in turn provides best value to all its stakeholders through highlymotivated personnel, visionary leadership, respect for people and society, innovation andsound fiscal discipline.Your Directors have immense pleasure in presenting the 67th Annual Report on the businessand operations of your Bank together with the audited accounts for the year ended March31.2014.

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1.4. Product range of the companyLoansHousing Loan Scheme: Quantum of loanFor Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower. Forrepairs/renovation 20 months net salary, subject to a maximum of 10.00 Lacs.For purchase of land: 20 months net salary/income subject to maximum of 5 Lacs within J&Kand 10.00 Lacs outside J&K. Also as an incentive for small borrowers, the loans up to 1.5Lacs granted for repairs/renovations of existing houses would now be secured by third partyguarantee of two persons or such other security as is deemed appropriate by the Bank.InsuranceLife Insurance Segment/ MetLife India Insurance

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and wasincorporated as a joint venture between MetLife International Holdings, Inc., The Jammuand Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors.MetLife is one of the fastest growing life insurance companies in the country.It serves its customers by offering a range of innovative products to individuals and groupcustomers at more than 600 locations through its bank partners and company- ownedoffices. MetLife has more than 32,000 Financial Advisors, who help customers achieve peaceof mind across the length and breadth of the country.MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas,Asia Pacific and Europe. Affiliated companies, outside of India, include the number one lifeinsurer in the United States (based on life insurance in force), with over 140 years ofexperience and relationships with more than 90 of the top one hundred FORTUNE 500®companies. The MetLife companies offer life insurance, annuities, automobile and homeinsurance, retail banking and other financial services to individuals, as well as groupinsurance, reinsurance and retirement and savings products and services to corporationsand other institutions.The bank is also Corporate Agent of MetLife and is marketing its products through its strongbranch network.

Tax Products/PlanningTax Products & Planning (Tax Saver Term Deposit Scheme)Purpose: To enable our customers to place long term deposits to earn higher rate of interestand also to avail the tax benefits under section 80C of Income Tax Act, 1961.

Savings & Deposits Savings Bank Deposit Scheme

Salient Features Account can be opened with a minimum initial deposit of 100/- to 500/- Convenient and easy to operate account to save time and money. Suitable for irregular income group No time bar on depositing or withdrawing

money.Who can open this Account?

A person in his/her name More than one person in their joint names. Minor through guardian or himself if above 10 years of age. Illiterate persons.

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Blind persons. - Associations, clubs, Societies, Trusts, etc.Facilities

Anywhere banking facility. ATM/Debit card. Telebanking facility. Cheque book facility.

Cards Global Access Card. Salient Features. Pin Based -Maestro / Cirrus Debit Card. Provides online access to savings or current account. Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™

Enabled ATM's and Point Of Sale locations. Accepted at National Financial Switch (NFS) ATM's. No Transaction Fee at JK Bank ATM's. No Transaction Fee on purchases.

Mutual FundsJ&K Bank has entered into tie-ups with reputed Asset Management Companies for

distribution of Mutual Fund products.Mutual Fund industry is one of the fastest growing segments in financial services in India.Over the years, banks in India have emerged as the biggest distributors of financialproducts. This has helped the banks to capture and retain their huge client base andsimultaneously adding a steady stream of fee based income.Mutual Funds have become an attractive proposition for investors in the current contextand for J&K Bank it will be a good investment option to have in our product portfolio. Thisshall be an important step towards converting the bank branch into a financial supermarketaddressing all the financial needs of the customers thus helping the bank retain thecustomers within its fold.Moreover the branch can augment its fee based income the Bank aims to match to industrystandards.The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak andReliance Mutual Fund. The Bank shall undertake distribution of their current schemes aswell as NFO (New Fund Offer) as and when the AMC comes up with the same.Non Resident BankingA deposit plan that provides standard banking facilities such as Cheque book, provision fornomination and other remittance facilities and also allows repatriation of entire funds.

1.5. SIZE OF ORGANIZATION.

3200 employees across India in J&K Bank

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1.6.Market share & position of the company in the Industry

Shareholding Pattern as on May 08, 2015 vis-à-vis May 09, 2014:

Face value split – From Rs 10 per share to Re 1 per share during quarter ended Sep, 2014

S No. PARTICULARSNumber of

Shares Held ason May 08, 2015

% toCapital

Number ofShares Held ason May 09, 2014

% toCapital

1. GOVERNMENT OF J&K 257752660 53.17% 25775266 53.17%

2. INDIAN MUTUAL FUNDS 24415016 5.04% 2054622 4.24%

3. INSURANCE COMPANIES 14166398 2.92% 215608 0.44%

4. BANKS 111039 0.02% 15818 0.03%

5. NON RESIDENT INDIANS 3152381 0.65% 264129 0.54%

6.FOREIGN INSTITUTIONALINVESTORS 113295468 23.37% 13564700 27.98%

7. FOREIGN PORTFOLIO INVESTORS 4153356 0.86%

8. BODIES CORPORATES 10746454 2.22% 1679188 3.46%

9. RESIDENT INDIVIDUALS 56446283 11.64% 4848747 10.00%

10. CLEARING MEMBERS 538965 0.11% 42702 0.09%

11. TRUSTS 0 0.00% 17022 0.04%

TOTAL 484778020 100.00% 48477802 100.00%

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1.7. Present Leadership

J&K Bank’s diverse and rich culture is abundantly evident in its Board Members, whoprovide direction to the Bank in order to achieve its vision. A brief profile of our eminentBoard Members is as under:

Brief Profile of Directors

MUSHTAQ AHMAD:

Having joined the Bank in 1972 as Probationary Officer (PO), Mr. Mushtaq Ahmad has adistinguishing career of 36 years as a prudent banker. His personal progression has been avital and contributing element of the unfolding success story of J&K Bank since more thanthree decades.

Before his retirement as Executive Director of the Bank in February 2008, he held some ofthe most significant positions in the bank and discharged all his duties with honesty anddistinctive vision.

His person makes an ideal blend of specialized knowledge and practical experience in almostall the critical fields of contemporary banking, which include Credit/Risk Management,Strategy and Business Development, Assets & Liability Management, Human ResourceDevelopment, Investments, Treasury, Forex operations, International Banking, Insurance etc.

As a leading banker, he commands huge respect for his prudence, esteem for his disciplineand affection for his leadership skills in the Bank as well as the industry. As a top executive,Mushtaq Ahmad lays great emphasis on talent search, human resources development, skillenhancement, besides team building.

SUDHANSHU PANDEY, IAS:

Mr. Sudhanshu Pandey, IAS, is Commissioner Secretary to Government, FinanceDepartment, J&K, Govt. A post graduate in Life Science (Botany) with specialization inEnvironmental Management and Ecology (Gold Medal), University of Allahabad, MBA inFinancial Management; Business Management and Financial Management, Institute of

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Management, Ahmadabad, Reforms in Government, Indian Institute ofManagement,Bangalore and Decentralized Industrial Development, Japan.

Mr. Sudhansh Pandey began his career with Indian Forest Services in 1985 and thereafter,joined the Indian Administrative Services in 1987. Mr. Sudhanshu Pandey has served the IASin various distinguished capacities, which include Sub-Divisional Magistrate, Bhaderwah(J&K), Additional Secretary Education(GOJK), Addl. Chief Executive, Shri Mata VaishnoDevi Shrine Board, Katra (Udhampur), District Development Commissioner and DistrictMagistrate, Doda, J&K, Special Secretary to Governor, J&K, Managing Director, SIDCO,Director Information, Director Employment and Special Secretary, Labor and Employment,J&K, Director & PS to MoS , Ministry of Commerce and Industry, GOI, Director & PSto Mos , Ministry of External Affairs, GoI, Counselor and Director, Tagore Centre forInformation.

ARNAB ROY:

Mr. Arnab Roy, the Regional Director, Reserve Bank of India is a holder of Masters Degreesin Arts and also Business Administration (MBA). He has more than 27 years of valuableexperience serving the Reserve Bank in various capacities, prominent being GeneralManager, Issue Department and DBS. He has also been associated for a short while withBanking Ombudsman and is presently the Regional Director, of J&K State.

VIKRANT KUTHIALA:

Mr. Vikrant Kuthiala is B.com (Hons) from Hindu College, Delhi University. He is aprominent Businessman from Jammu with interests in steel manufacturing and hydel projects.He is also representing on the committees of various academic and professionalorganizations, prominent being the Regional Advisory Committee of Central Excise &Customs, J&K, Chamber of Commerce & Industry, Jammu and J&K State Committee ofFederation of Industries of India, New Delhi. He is also a Member of India Islamic CulturalCentre, New Delhi and INTACH, J&K Chapter, Jammu.

24

PROF. NISAR ALI:

Prof. Nisar Ali is a Ph.D in Economics from Osmania University, Hyderabad. He is aProfessor from Post-Graduate Department of Economics, University of Kashmir. Prof. NisarAli is also Dean, Faculty of Social Sciences University of Kashmir and Member, J&K StateFinance Commission. He has served in various prominent positions with the University andhas many research papers and publications to his credit.

A. M. MATTO:

Mr. A. M. Matto is a Graduate in Commerce and World Explorer. He is a high silhouetteBusinessman having his interests in the manufacture and export of Kashmir Handicrafts. Hehas made significant contribution to commerce industry by being associated with it in thecapacity of President and other prominent positions. Mr. A. M. Matto has had a longassociation with the Bank as Director, during which he has made valuable contribution to theInstitution with his rich and varied experiences.

RAKESH KUMAR GUPTA:

Mr. R.K. Gupta, aged 47 years, is a professional Chartered Accountant with 25 yearsstanding possessing skill in Finance, Taxation, Auditing and Corporate Legal Affairs. Hestarted his professional career with M/s Gupta & Associates in January 1986 and headsthis renowned firm of Chartered Accountants since then.

Mr. Gupta remained in Executive Committee of the Jammu & Kashmir Branch of theInstitute of Chartered Accountants of India for three terms from 1991-1994; 1994- 1998 and2006-2009.During these three terms he represented the Branch as its Treasurer, Secretary,Vice-Chairman and Chairman. Mr. Gupta has been member of Tax Payers Committee of this

25

Region. He has also been member of Research Committee & Direct Tax Committee of TheInstitute of Chartered Accountants of India. He is also empanelled as Peer Reviewer withPeer Review Board of the ICAI. Having authored various articles, Mr. Gupta has to his creditpublished Articles in The Chartered Accountant Journal and also in Current Tax.com on theissues of Taxation and Accounting Standards. Mr. Gupta has been Guest Speaker on manyoccasions for various Seminars and Study Circle meets of Chartered Accountants & others.

Mr. Gupta is Member of Taxation Advisory Committee and other Committees of Chamber ofCommerce & Industry, Jammu. He is also a Trustee in Charitable Institutions providingeducation to the under privileged children and relief to the needy. In view of his interest insocial activities and sports, Mr. Gupta is also a member of Sports and Health Committee ofPrestigious Social Club.

NIHAL GARWARE:

Mr. Nihal Chandrakant Garware is a holder of Bachelor of Arts Degree (U.S.A.) and thescion of well known Industrialist family of India-the Garwares. Mr. Nihal ChandrakantGarware, is at present Head of the Legal Department and Liaison Department in some of theGarware Companies. He has been a Director in various companies in the Garware Group,where his responsibilities have ranged from Production, Sales, Legal, Liaison to Finance. Heis Advisor to outside Companies like Ama Pvt. Ltd., D. Y. Patil Group and Sharad PawarInternational School.

He is also the founder member of The Youth Wing of Indian Merchants Chamber OfCommerce.

26

1.8. Source of data collection

OBJECTIVES

To find out parameters of customer satisfaction. Help the bank to know customer needs from the bank, so that accordingly they can

equip themselves accordingly to the market. To do the performance evaluation of the organization with respect to growth,

productivity and profitability.

Research Design:

There are 3 types of researches:

- Exploratory research

- Descriptive research

- Casual research

From the above researches, I decided to employ blend of exploratory research and descriptiveresearch, as it is concerned with discovering the general nature of the problem and thevariables that relate to it.

Data Collection Method:

Data collection is done mainly through two sources namely primary and secondary.Secondary source is nothing but utilizing somebody else’s earlier effort and work.Primary source is when the data collection is done for the first time. I had taken up bothsecondary database and to have greater accuracy I decided to go in for collection of primarydatabase.

To tap secondary database I went through the brochures of the companies and even throughthe web sites of all the companies.

To tap the primary database I decided to go in for Survey Method. Various tools can be usedto conduct a survey. These tools are very important to trigger a stimulus, which would bringout their attitude and ideas. I have used Questionnaire as a tool for the above-mentionedpurpose.

27

QUESTIONNAIRE DESIGN

A close-ended Questionnaire has been used in this Project to know the satisfaction level ofthe customers of the Bank in order to improve the services in the near future.

SAMPLE DESIGN

SAMPLE SIZE: 100

60 Males and 40 Females

SURVEY AREA: The survey was carried out in North Delhi.

SAMPLING TECHNIQUE: Stratified sampling technique has been used.

TIME FRAME: The time frame has been six to Seven weeks.

LIMITATIONS OF THE STUDY

The main source of data is primary data, though secondary data has not been ignored. 100 samples do not reflect the opinion of customers as whole. Time limit was another limitation and there may be possibility of committing a

general error. Due to change in time, policies may change.

28

CHAPTER-2

SWOT ANALYSIS OF THE COMPANY

29

S.W.O.T ANALYSIS OF J&K BANK

STRENGTH

The main strength of the bank is that it is located in the residential as well ascommercial areas due to which the bank is able to cover both residential and marketshare.

The bank has six days/week working schedule due to which it provide extra workinghours to its customers.

Bank has authority to deal in foreign exchange.

A wide range of scheme and services to meet diverse customer needs.

Net profit of the year 508.60 Cr.

Total assets for the year ending 2014 RS.78,620 Cr.

80% dividend to its shareholder.

Deposits increase by 16%.

WEAKNESS

No branch in foreign country.

Unable to provide value added services to the customer.

The look of the bank is not very attractive for the customer.

The bank lacks in sales promotion and advertisement its products and services.

Number of ATM services is very less.

OPPORTUNITY

Identifying the potential customer and creating market by proper channel advertising.

Bonding the customers by paying immediate attention towards their grievances thusenhancing customer satisfaction.

They can move easily towards universal bank.

THREATS

Existing competitors.

Attitude of concerned body towards Pvt. Bank.

Foreign players.

30

CHAPTER-3

ANALYSIS OF FINANCIAL REPORTS OF THE

COMPANY

31

ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

Table 3.1: Profit & Loss Account

Profit & Loss Account Amount in Rupees

crore

* EPS for periods upto quarter ended June, 2014 has been recast consequent upon split of Bank’sshare during quarter ended Sep, 2014

ParticularsQ 4

FY ’14-15

Q 4

FY ’13-14%

ChangeYear ended

Mar, ’15

Year ended

Mar, ’14%

Change

Interest Earned 1744.97 1777.50 -1.83% 7061.13 6767.00 4.35%

Interest Expended 1062.40 1076.32 -1.29% 4410.22 4082.52 8.03%

Net Interest Income 682.57 701.18 -2.65% 2650.91 2684.48 -1.25%

Other Income 278.53 111.10 150.70% 593.97 390.26 52.20%

Operating Income 961.10 812.28 18.32% 3244.88 3074.74 5.53%

Operating Expenses 385.64 330.84 16.56% 1409.05 1174.99 19.92%

Operating Profit 575.46 481.44 19.53% 1835.83 1899.75 -3.36%

Provisions & Contingencies 380.76 60.57 528.63% 1015.52 147.88 586.72%

PBT 194.70 420.87 -53.74% 820.31 1751.87 -53.18%

Tax Provision 93.09 170.27 -45.33% 311.71 569.40 -45.26%

Net Profit 101.61 250.60 -59.45% 508.60 1182.47 -56.99%

Share Capital 48.49 48.49 0.00% 48.49 48.49 0.00%

EPS in Rs. * 2.10 5.17 -59.38% 10.49 24.39 -56.99%

Net Interest Margins 0.98% 1.03% - - - -

Net Interest Margins (Ann.) 3.92% 4.13% - 3.81% 4.16% -

32

Table 3.2: Balance sheet

Balance Sheet Amount in Rupeescrore

Particulars As on March31, 2015

As on March31, 2014

%Change

Capital & Liabilities

Capital 48.49 48.49 0.00%

Reserves & Surplus 6061.56 5675.12 6.81%

Deposits 65756.19 69335.86 -5.16%

Borrowings 2339.67 1765.00 32.56%

Other Liabilities & Provisions 1879.54 1795.26 4.69%

Total 76085.45 78619.73 -3.22%

Assets

Cash & Bank Balance 2373.05 3045.59 -22.08%

Balance with Banks and Money at Call & Short Notice 1360.71 1168.31 16.47%

Investments 25124.30 26195.07 -4.09%

Advances 44585.82 46384.60 -3.88%

Fixed Assets 688.91 533.81 29.05%

Other Assets 1952.66 1292.35 51.09%

Total 76085.45 78619.73 -3.22%

33

DATA ANALYSIS

CUSTOMERS RESPONCE

01. Are you aware that the J&K Bank is having ATM Centers?

o Yes----------------------------------------------------------75%o No-----------------------------------------------------------25%

Fig.3.1:

INTERPRETATION

1. 75% of the Customers are aware of the J&K Bank’s ATM Centers.2. 25% the Customers are not aware of the J&K Bank’s ATM Centers.

YES,75%

NO ,25%

YES

NO

34

02. Credit Card owned

o Yes----------------------------------------------------40%o No-----------------------------------------------------60%

Fig.3.2:

INTERPRETATION

1. 40% of the Customers are having J&K Bank’s Credit Cards.2. 60% of the Customers are not having J&K Bank’s Credit Cards.

YES,40%

NO ,60%YES

NO

35

03. Are you intending to take loans for financing your Assets?

o Yes-------------------------------------------------------------------------67%o No--------------------------------------------------------------------------33%

Fig.3.3:

INTERPRETATION

1. 67% of the Customers are intending to take loans for financing their Assets.2. 33% of the Customers are not intending to take loans.

YES,67%

NO ,33%

YES

NO

36

04. Do you have a Demat account?

o Yes-----------------------------------------------------------------46%o No------------------------------------------------------------------54%

Fig.3.4:

INTERPRETATION

1. 46% of the Customers have Demat account.2. 54% of the Customers don’t have Demat account.

YES,46%

NO ,54%

YES

NO

37

05. A Convenient Branch to get to

o Yes------------------------------------------------------75%o No-------------------------------------------------------25%

Fig.3.5:

INTERPRETATION

1. 75% of the Customers said that the Branch is Convenient to get it.2. 25% of the Customers said that the Branch is not Convenient to get it.

YES,75%

NO ,25%

YES

NO

38

06. Branch Hours are convenient

o Excellent-------------------------------------------------------------------------------25%o Good------------------------------------------------------------------------------------47%o Satisfactory----------------------------------------------------------------------------20%o Poor--------------------------------------------------------------------------------------08%

Fig.3.6:

INTERPRETATION

1. 25% of the Customers said that the Branch Hours is Excellent.2. 47% of the Customers said that the Branch Hours is Good.3. 20% of the Customers said that the Branch Hours is Satisfactory.4. 08% of the Customers said that the Branch Hours is Poor.

Excellent25%

Good47%

Satisfactory20%

Poor08%

Excellent

Good

Satisfactory

poor

39

07. The Branch layout is spacious and uncluttered.


Fig.3.7:

INTERPRETATION

1. 21% of the Customers said that the Branch Layout is Excellent.2. 73% of the Customers said that the Branch Layout is Good.3. 13% of the Customers said that the Branch Layout is Satisfactory.4. 03% of the Customers said that the Branch Layout is Poor.

Excellent21%

Good73%

Satisfactory13%

Poor03%

Excellent

Good

Satisfactory

poor

40

08. I spend very little time waiting in line to get service from the tellers.


Fig.3.8:

INTERPRETATION

1. 9% of the Customers said that the service Excellent.2. 50% of the Customers said that the service Good.3. 06% of the Customers said that the service Satisfactory.4. 04% of the Customers said that the service Poor.

Excellent09%

Good50%

Satisfactory06%

Poor04%

Excellent

Good

Satisfactory

poor

41

09. Counter Staff is immediately available to provide counter service.

o Yes--------------------------------------------------------------67%o No---------------------------------------------------------------13%

Fig.3.9:

INTERPRETATION

1. 67% of the Customers said that the Counter staff is immediately available to providecounter service.

2. 33% of the Customers said that the Counter staff is not immediately available toprovide counter service.

YES,67%

NO ,33%

YES

NO

42

10. Phone calls to the Branch are handled quickly and efficiently.


Fig.3.10:

INTERPRETATION

1. 31% of the Customers said that the phone calls attending services is Excellent.2. 50% of the Customers said that the phone calls attending services is Good.3. 10% of the Customers said that the services is Satisfactory.4. 09% of the Customers said that the phone calls are not attended Properly.

Excellent31%

Good50%

Satisfactory10%

Poor09%

Excellent

Good

Satisfactory

poor

43

11. The staff is very courteous and helpful.


Fig.3.11:

INTERPRETATION

1. 80% of the Customers said that the Staff is Excellent.2. 10% of the Customers said that the Staff is Good.3. 02% of the Customers said that the Staff is Satisfactory.4. 08% of the Customers said that the Staff is Poor.

Excellent80%

Good10%

Satisfactory02%

Poor08%

Excellent

Good

Satisfactory

poor

44

12. The staff is well informed about the banks product and services.


Fig.3.12:

INTERPRETATION

1. 75% of the Customers said that the staff well informed.2. 25% of the Customers said that the staff not well informed about the products &

services.

YES,75%

NO ,25%

YES

NO

45

13. The Branch has a pleasant and friendly atmosphere.


Fig.3.13:

INTERPRETATION

1. 80% of the Customers said that Branch atmosphere is Excellent.2. 15% of the Customers said that Branch atmosphere is Good.3. 03% of the Customers said that Branch atmosphere is Satisfactory.4. 02% of the Customers said that Branch atmosphere is Poor.

Excellent80%

Good 15%

Satisfactory3%

Poor2%

Excellent

Good

Satisfactory

poor

46

14. My accounts are handled accurately.


Fig.3.14:

INTERPRETATION

1. 64% of the Customers said that Account handling is Excellent.2. 27% of the Customers said that the Account handling is Good.3. 6% of the Customers said that the Account handling is Satisfactory.4. 3% of the Customers said that the Account handling is Poor.

Excellent64%

Good27%

Satisfactory6%

Poor3%

Excellent

Good

Satisfactory

poor

47

15. I am well informed concerning any changes in services.


Fig.3.15:

INTERPRETATION

1. 46% of the Customers said that they are well informed about any changes inservices.

2. 34% of the Customers said that they almost get informed about any changes inservices.

3. 19% of the Customers said that they sometimes get informed about the changes.4. 1% of the Customers said that they are not at all get informed about any changes in

services.

Excellent46%

Good34%

Satisfactory19%

Poor1%

Excellent

Good

Satisfactory

poor

48

CHAPTER-4

LESSONS LEARNT

49

LESSONS LEARNT

The bank was incorporated with the authorized capital of Rs.2.00 Lakh shares of Rs.25/- eachamounting to Rs.50.00 Lakh. The first issue comprised 80,000 shares amounting to Rs.20.00Lakh .A total number of 62716 shares of the value of Rs.15, 67,900/ were authorized andRs.7.66 Lakh paid up as on 30.06.1940 .The authorized capital was subsequently reduced to1.20 lakh shares amounting to Rs.30.00 Lacs in 1958 and latter enhanced to 40.00 Lacs in1992 and 80.00 Lacs in 1993 amounting to Rs.10.00 Corers and Rs.20.00 Corersrespectively. The issue capital of 28.00 lakh shares amounting to 7.00 Corers standssubscribed and paid up as on March 31,1997 Rs.28 per share. Thus where as the paid upcapital would be increased to Rs. 48.50 Cr, simultaneously the bank be able to earn the sharepremium of Rs.86.80 Corers.The bank has paid special attention to the vital aspect since its inception .The first Reserveswere created by the bank when amount of Rs.10, 000 / were transferred to the account as on30.06.1941.The reserves were created not only to meet the statutory requirements but also forbad and doubtful debts and for meeting other contingencies. The free reserves which were ofthe order of less than one lakh in 1944 and Rs.7.00 lakh in 1966 stood at Rs.42.50 Lacs in1975 and less than one Cr in 1979. In a span of just over 16 years the reserves have grown tenthousand times and crossed Rs.100 Cr mark in 1995, excluding those held for the riskweighted assets.The Bank came out with unsecured non-convertible redeemable, subordinated tier-II Bondissue of Rs.75 corers in December 2000. The issue received an overwhelming response andthe Bank mobilized Rs.87 crores against the size of Rs.75 crores at 11.75% p.a. with a tenureof 63 months.The Capital & Reserves of the Bank continued to witness a remarkable growth duringthe year 2004-05. It increased to Rs.1665.40 Cr during the year from Rs.1593.74 Cr of theprevious year.

DEPOSITSThe public has reposed its confidence in the standing of the bank from its very inception andthe same has been growing ever since that date; despite the shocks it received as consequenceof partition because of loss of two branches within eight years. In the first year of itsoperation the bank succeeded mobilizing deposits to the tune of Rs.14 Lacs after which therewas no looking back .The deposits which stood at just over one Cr’s in 1949 and less than100 Cr’s in 1978, grew with amazing pace within a span of 16 years .The growth of thedeposits accelerated at an amazing pace for the decade 1980-1990, from Rs.191.67 Cr’s toRs.1046.35 Cr’s. Barring few occasions, the growth rate has been more than the nationalaverage, doubling in 1991-1994 (in just four years) despite the slag economic trends in thestate due to turmoil and difficult working conditions .It will be in order to reveal that when allnationalized banks closed down their offices in valley in 1990, the J & K bank alonebraved against all odds and discharged its banking services to the public at great risks. Notonly in deposits, the bank discharged its duties under those difficult situations in all spheresand made inroads in multifarious levels in pattern of client base. The bank performedcommendably during the year by registering the growth rate of 26.40% against the nationalaverage of 16.1%. The deposits of the bank stood at Rs.3658.14 Crores as on March 31st,1997 against the Rs.2895.18 Crores as on 31.03.1996. The deposit base of the Bank touchednew high at 11,168 crores at the end of financial year 2011-12. The average deposits perbranch work out to Rs.30.15 Cr against the previous year figure of Rs.26.17 crore. Theaverage deposit per employee stood at Rs. 172 lakh against Rs.150 lakh of the previous year.

50

During the financial year 2012-13, the rate of growth in deposits was commendable whencompared to 14.1% at national level. The aggregate Deposits of the Bank recorded anappreciable accretion of 16% to Rs.21644.97 crore during the year from the previous yearfigure of Rs.18661.38 Cr.

CREDIT DISPENSATION

The J&K Bank Ltd. was established with a sole aim of improving the economic conditions ofthe people of the state as then existing banks could not fulfill such needs because of variouslimitations as stated earlier. On the very next day of opening a loan on Rs.1.20 Lacs wasgranted to the borrower. This may bee a laughable amount today, but it carried a slogan thattime .The people of the state regard J &K bank as their own bank owing to its localorientation and characteristics and bank in turn has been fulfilling there aspirations by spearheading the credit dispensation not only under the normal lending schemes but also throughthe central and state Govt. sponsored schemes .The bank has been instrumental in theeconomic upliftment of the people of the state which other wise would have been difficult inview of its backwardness ,topographical conditions and above all conservative attitude ofother banks.

Bank has been playing its role devotedly towards the economic development not, while as theone Crores mark was achieved after 25 years only. There after the credit disbursals gainedmomentum .The amount of advances stood at 131 Crores in 1980 recorded 10 fold increaseand stood at Rs.1208 Crores at 31.03.1995. During the last two years the advances registeredan emphatic growth and were recorded at Rs.4763 Crores as on 31.03.2014. J K bank is oneof the few banks, which has been able to show exemplary performance in adjusting to therigorous prudential norms that came into force during 1992-93.The bank has not only enhanced the quantitative but also qualitative approval of the creditportfolio. On some occasions the bank's credit deposit ratio and priority sector lending hasexceeded the desired or prescribed limits. Bank has not only fulfilled its commitmentstowards the Govt. of J & K but also has come to its rescue in the hours of financialcrises.The lending to the state Govt. has been a constant phenomenon for the decades now and infact upsets various ratios related to credit on some occasions. The bank has witnessed asteady growth in the borrower client base, which is spread to more than one Lacs accountspresently. The credit portfolio of the Bank recorded a healthy growth of 24% during thefinancial year 2012-13. The total advances of the Bank stood at Rs.11517.14 crore as at theend of March 2014 as against Rs.8010.95 crores of the previous year. The outstanding topriority sector lending increased by Rs.544 crore to Rs.2510 crore at the end of March 2014from Rs.1966 crore of the previous year.

INVESTMENTS

Right from the beginning, the liquidity, safety and profitability of the funds has remained andcontinues to be the focus of bank's policies. During the first few years, the surplus funds werekept either in current or fixed deposit accounts with other banks. It was in the year 1944 whenan amount of ten Lacs was invested in Govt. securities. There after the growth of investmentportfolio has been phenomenal one .The investment holdings of the bank have been farbeyond the statutory requirements.

51

The total investments in Govt. and other approved securities, bonds debentures was to thetune of Rs.792 Crores as on 31.03.1995.During the last few years bank's investmentsportfolio grew at amazing pace as the Bank's investment policy continued to focus onincreasing returns through investments in safe and liquid securities. During the year 2012-13,the investment portfolio has recorded a growth of 7.55% to Rs.9089.23 crore fromRs.8451.10 crore of the previous years.

PROFITABILITY

Except for the first year of business, when bank suffered a loss of Rs.0.07 Lacs as on30.06.1941, the bank has a consistent track record of growth and profitability .In just thesecond year of commencement of business, it recorded an impressive profit of Rs.0.48 Lacsand wiped out the losses of previous year. With excellent fund management, the profits of thebank jumped from 177 Lacs in 1990 to 1251 Lacs in March in 1994 after providing for all thestatutory and mandatory provisions.The Bank posted a net profit of Rs.115.07 crore for the financial year 2009-10 as against theprevious year figure of Rs.406.33 crore.

Financials

The Bank recorded an outstanding achievement in the last fiscal (2009-10) in key areas of itsoperations. During the year 2012-13, the Bank achieved an all time high business turnover ofRs.33162.11 crore from Rs.27946.32 crore of the previous years registering an increase of18.66%. The Capital & Reserves of the Bank increased by Rs.71.66 crore to Rs.1665.40crore during the year from Rs.1593.74 crore of the previous year. The Capital AdequacyRatio stood at 15.15%, which is comfortably much above the minimum stipulated by ReserveBank of India. The Bank posted a net profit of Rs.115.07 crore in the last fiscal as against theprevious year figure of Rs.406.33 crore .The dip in the profits is in line with overall industrytrend which witnessed diminishing yields in the securities portfolio held by banks andconsequential booking of losses. The Bank could not remain insulated to the said affects ofinflation and hardening of interest rates, which besides impacting the yields also, depreciatedthe investment portfolio. In order to insulate the securities portfolio from future market riskand to reduce the duration of its investments, Bank transferred securities of Rs.2602.03 crorefrom AFS to HTM category and also disposed off long duration securities, thereby bookingdepreciation /loss on investment portfolio aggregating Rs.222.47 crore.

Bank's aggregate deposits recorded an appreciable accretion of 16% to Rs.21644.97 crore atthe end of financial year 2012-13 from the previous year figure of Rs.18661.38 crore. Therate of growth is commendable when compared to 14.1% at national level.

The credit portfolio of the Bank also recorded an appreciable growth during the year. Thetotal advances of the Bank increased to Rs.11517.14 crore against Rs.9284.94 crore of thecorresponding periods of the previous year registering a growth of 24%. The outstanding topriority sector increased by Rs.544 crore to Rs.2510 crore at the end of March 2013 fromRs.1966 crore of the previous years. The investment portfolio recorded a growth of 8% toRs.9089.23 crore from Rs.8451.10 crore of the previous years. The net NPAs stood at 1.41%,against 1.48% of the previous year, which is one of the lowest in the industry.

52

During the year, the Foreign Exchange business recorded an impressive growth of 29%,moving to Rs.5964.67 crore against Rs.4637 crore of the previous years. The contribution ofthis segment to the Bank's gross income has been to the tune of Rs.38.22 crore againstRs.34.80 crore of the previous years. The export turnover of the Bank increased fromRs.1928.86 crore to Rs.2211.51 crore registering an increase of 15%.Keeping in view overall performance of the Bank, the Bank, after the approval ofshareholders, paid 80% dividend (free of tax) for the year ended 31st March 2013. Theproductivity levels continued to show sustained growth with per branch and per employeebusiness increasing to Rs.6632.4 lakhs and Rs.482.50 lakhs respectively.

Technology Driven Operations:

Maintaining a progressive outlook, the J&K Bank is keeping pace with the changingtechnology. The Bank continues to leverage information technology as a strategic tool for itsbusiness operations. The IT strategy emphasizes enhanced level of customer services through24x7 availability, multi-channel banking, and cost efficiency through optimal use ofelectronic channels, wider market reach and opportunities for cross- selling.

The initiatives already under way have been given a further push to accelerate growth withtech commitment. The Bank had issued over 1.25 lakh „JK Bank Global AccessDebit Cards' until March end 2013. Besides, the bank also launched its Credit Card, which isavailable at all, branches of the bank across the country. Tele Banking Facility is nowavailable at 32 business locations of Jammu and Kashmir Zones. Currently 97.4 % businessof the Bank is computerized. The number of branches /offices brought under computerizationprogramme has increased to 423 at the end of March 2013 against 360 branches of theprevious year. The Bank has an ambitious plan of achieving total automation of operations bythe year 2013.

Anywhere banking facility was extended to many new locations/branches, thereby giving thecustomers the advantage of Anywhere Banking at 200 branches at the end of 31st March2013. The number of ATMs of the Bank (both off-site and on-site) already installed or underprocess of installation has increased to 170 during the year under report. Moreover to furtherimprove the customer service and have total connectivity, the Bank has set-up a CentralDATA Center and 78 branches/offices of Delhi and Mumbai Zones have already beenmigrated to (Core Banking Solution) CBS and roll over of rest of the branches of these Zonesis in progress. The migration of branches in Jammu Zone from Bancs 2000 to Finacle hasalso been taken up. The Bank launched Internet Banking and SMS banking services,available at our CBS branches. These delivery channels shall give easy access to ourcustomers on viewing their accounts and performing other non-financial transactions. TheFinancial transactions would be available after, a nod from RBI. For convenience of ourATM card holders and all sections of cardholders, multilingual (Hindi, Urdu & English)screens shall be available soon on all ATMs of your Bank. Besides Fund Transfer Facilityfrom one account to another account shall also be available soon on Bank's ATMs. The Banklaunched its Credit Card in association with MasterCard, with three variants Gold, Silver andBlue .The cardholders can use these cards at any ATM carrying the Master card logo forwithdrawing cash or POS terminal at merchant establishments for shopping. The Bank hasalso enrolled as member of NFS (National Financial Services) set by IDRBT by virtue ofwhich our ATM switch has been connected with NFS switch.

53

The connectivity will offer facility to our debit cardholders to access other Bank's ATMs,which are members of NFS in India at lower transaction costs. During the year under report,you will be glad to know that the Bank introduced Mobile ATM Service that is unique of itskind in northern part of. The Mobile ATM offers service at the footsteps of the customer. TheBank has customized software solution in place to handle Asset Liability Management(ALM) system of the Bank. At present almost all the ALM sensitive data is captured inautomated form ensuring the compilation of ALM picture at short notice. Besides CIBILreporting system and MIS architecture has been improved to match set standards. The Bankhas launched its INTRANET SITE for surfing by the staff .The site shall keep them updatedabout policies and directions of the organization at their workplace besides helping them inresolving their customer grievances /complaints instantly.

Innovative Products:

To maximize value to its customers, the innovation in products and improving the quality andspeed of services is the hallmark of Bank's business strategy. In keeping with this objective,the bank has launched several unique and innovative deposit products, which include“Mehendi Deposit Scheme” , “Recurring Plus Deposit Account” , “Flexi Deposit Scheme"etc. The scheme has flexibility of depositing variable monthly installments as per theconvenience of the depositor. As a measure to enhance speed and efficiency of service“Single Point Commit system” was introduced at its select branches, with both front and backoffices manned by officers providing end-to-end service to the customer at the same counter.At 126 branches the said system has been extended and are in the process to extend it to equalnumber of more branches.

The Bank is fast emerging as the most preferred DP in the chosen market providing qualityDepository Services of National Securities Depository Services Limited (NSDL) and CentralDepository Services Limited (CDSL) to more than 20000 customers with custody ofsecurities worth Rs5450 crores.

Bank is extending broking services at its DP centers in association with M/S IL&FSInvestsmart Limited. The Bank is having a vision to transform its DP centers into CapitalMarket Bank and share trading services, which will provide wide range of financial productsto its existing and prospective customers.

Diversification of Business

The Bank diversified its business activities into insurance, both life and non-life. The Banknot only became the strategic partner of MetLife Insurance India (P) Limited, but also hasbeen acting as corporate agent of the said company for distribution of their life insuranceproducts through network of its branches. The Bank also entered into a tie-up with BajaAllianz General Insurance Company for distribution of their non-life insurance products. Inview of Bank's deep branch network and loyal customer base particularly in Jammu andKashmir, the Bank has been able to distribute insurance products in deep rural and far flungareas and has made penetration in the new areas thereby adding to its non interest and feebased income.

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Recognition and Awards

The Bank recently won the prestigious Asian Banking Award -2005 for its ‘DevelopmentProject Financing Programme', contributing significantly to the development of tourismindustry 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 June17, 2011.

The annual Asian banking awards recognize and honor Asian banks for outstanding,innovative and world-class products and programmes implemented during the previous year.It is the most respected and premier banking awards programme in Asia Pacific region. It isworth mentioning that the Bank has won the Asian Banking Award consecutively for thesecond year. Last year, the Bank won the award for Customer Convenience Programmes andwas also given runners up certificate for its project ‘Motivating Employees for BetterPerformance' under ‘operational efficiency programme' category.

The Bank was ranked fifth among the top ten Asian banks and 762 nd among top 1000 Worldbanks. A renowned business journal "Business Today" ranked JK Bank among 25 topinvestor 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. TheBank for the second consecutive year was ranked Best Private Sector Bank in FinancialExpress/ Ernest and Young combined Survey for the year 2002-03 released recently. Bankwas awarded ‘Shiromani Award' for outstanding achievements in the field of banking andcommitment 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 abillion Asia's Rising Companies', listed by Forbes magazine in its latest issue datedNovember 1. The publication has commended J&K Bank for representing ‘economicdynamism' in the region, sustained growth in all spheres and an excellent track record ofrewarding its shareholders.

Corporate Social Responsibility:

The Bank has also achieved the distinction of winning the Runner up trophy at prestigiousAsian Corporate Social Responsibility Forum recently. Corporate Social Responsibility(CSR) is truly embedded in the Bank's day-to-day business, policy and strategy and addressesall stakeholders. CSR is not just an add-on' or a one time only subject, but is integrated intothe organization's management practices. The Board of Directors and Management of theBank are fully aware of Bank's Corporate Responsibility as a corporate citizen and areactively involved and committed towards their corporate obligations towards all thestakeholders. The Bank follows the concept that excellence in CSR is exceeding theminimum regulatory framework in which the organization operates and to strive tounderstand and respond to the expectations of their stakeholders in society. The CSR policyof our Bank involves meeting the needs of all stakeholders and not just shareholders againstsome form of ethical basis. The Bank is committed to the best and transparent corporategovernance practices. It believes that proper corporate governance practices lead to effectivemanagement and control of business, which in turn provides best value to all its stakeholders.

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The Bank's CSR is rooted in its Corporate Governance philosophy, which in turn is wovenaround Bank's commitment to ethical practices in the conduct of its business, while strivingin the constant quest to grow with profits and enhance shareholders value and align interestsof the shareholders, stakeholders and society through adoption of best international practicesand standards. Managing CSR is not viewed as an extra cost or burden but is viewed not onlyas making good business sense but also contributing to the long-term prosperity of our Bankand ultimately its survival. Being a good neighbour and showing that you care on the onehand and being a successful business on the other, are flip sides of the same coin.

In early 1990's when most of the banks closed their business in J&K State particularly inKashmir valley owing to onset of militancy, it was only J&K Bank that sustained itsoperations with perceptible growth in its business besides expanding its network of brancheseven into the remotest areas of the State. The Bank has a heritage of braving all odds anddespite hostile operating environments; the Bank has been on a growth path and has achievedimpressive business results during last few years. Bank manages social issues in the samemanner as it manages any other strategic business issue. CSR is not just recognized aspromulgating the Bank's own values and principles but also the values and principles of allthose who have a stake in, or are affected by, its operation. The Bank, in addition to playingits role in economic development of the state and country, also contributes significantlytowards social cause. The bank has carved a niche for itself among the poor and the needy bydonating generously for various philanthropic activities aimed at ameliorating theirsufferings. Be it fire victims, disabled or patients with serious ailments who lack reliablemeans of survival, the bank continued its support and help to them. The bank adopts orphansby providing financial support to orphanage homes and donating computer systems to enablethe socially/economically deprived children to acquire IT knowledge. The bank as aresponsible corporate citizen provides donations to patients for the treatment of dreadeddiseases needing Heart Surgery, Kidney Transplantation, etc and helps the needy & poorin acquiring hearing aids, artificial limbs, pace makers etc. The Bank has made donation tothe tune of Rs.60 lakhs in the recent past. A three days rehabilitation camp for physicallydisabled persons was organized by the Bank in association with Bhagwan Mahaveer ViklangSahayata Samiti, Jaipur (India) where 210 persons were provided with artificial limbs andappropriate treatment to many more.

The Bank donated a van to Society for Rural and Urban Development (SRUD), Srinagar, forthe use of physically and mentally challenged children. An Ultrasound machine was donatedby the Bank to the Cancer Society of Kashmir, Srinagar for the treatment of economicallydeprived patients. The Bank donated Gastro Fibrescope Endoscopic Machine, costing aboutRs.5.67 lakhs to the Cancer Society of Kashmir for the benefit of poor patients who sufferfrom serious digestive ailments.

To provide timely relief to the victims of the devastating earthquake in Gujarat, the Bankdonated a sum of Rs.10.00 lakhs to the Jammu & Kashmir Chief Minister's Relief Fund. Theofficers of the Bank also donated their one-day's salary amounting to Rs.11 lakhs to theRelief Fund. Recently the Bank donated Rs.one lakh to Maharaja Ranjit Singh Trust, NewDelhi, for the upliftment of downtrodden sections of the society. The Bank gave donation tothe Foundation for inter-community Relations Delhi for upliftment of society. A financialassistance to the tune of Rs.1.00 lakh for the welfare of Gujjars was given to Gurjar DeshCharitable Trust, Jammu.

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The Bank donated sewing machines to destitute widows through Barites Dalit SahityaAcademy, Jammu. Showing its eagerness for the upliftment of women, the Bank donatedembroidary machines to Women's Welfare Society, Kachhama, and Kupwara. The Bank alsogave donation to NGO Friends Association for Ladies and Orphans Welfare (FALOW),Srinagar.

Devastating fire in village Batpora (Wathora), Kashmir rendered hundreds of peoplehomeless and two persons lost their lives. The Bank organized a relief camp and distributed50 kgs of rice and Rs.5, 000 to each of the affected family. Similarly, another relief camp wasorganized for the fire victims at Seer, Anantnag (South Kashmir), where blankets, eatablesand domestic utensils were distributed among the sufferers. A camp was also organised bythe Bank at Lasipora, Pahalgam, where cash was distributed among the fire victims.With a view to help Kargil war sufferers of Drass area in Ladakh region in theirrehabilitation, the Bank organized a relief camp. Blankets and eatables were distributedamong the people covering about 1500 families settled in 17 villages in and around Drass,who had migrated to Sankoo, Saliskote and other far flung areas of Kargil. Stationery itemswere distributed among the school children.

CONCLUSION

1. J & K bank being the largest bank in the private sector has pioneered the concept ofmodern banking as opposed to the traditional and conventional approach to banking of thenationalized banks.

2. The product and the services of the bank have captured the customer interest and the bankhas grown Phenomenally within a short period of time.

3. The study helps in providing useful information to the J&K Bank about the services,product features and the satisfaction level of the customers.

4. The study helps in understanding the competitive environment in which the new operationprivate Bank are operating today design to meet Banking needs and customer satisfaction.

RECOMMENDATIONS

The bank should open its branches in rural areas to trap more customers for the bank.

Brochure if the forthcoming schemes should send to the customers along with theremonthly and quarterly statements.

Banks should try to find out a way to provide door services to its customers, as this isvery convenient for the businessman and shopkeepers of the area.

Competitive strategy should be adopted to capture the market.

Customers usually prefer loan, therefore loan provisions should be given moreemphasis.

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Body of the report (As per Appendix A)

CHAPTER -1: PROFILE OF THE COMPANY

CHAPTER -2: SWOT ANALYSIS OF THE COMPANY

CHAPTER -3: ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

CHAPTER-4: LESSONS LEARNT

References Bibliography Appendices

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REFERENCES/BIBLIOGRAPHY

BOOKS

The History of Banks- by Richard Hildreath

The Multilateral Development Banks - by Diana Tussie

WWW.JKBANK.NET

WWW.NSEINDIA.COM

PNBINDIA.COM

WWW.BANKSPOWER.COM

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APPENDICES

QUESTIONNAIRE

Please help us to please you, but first...thank you for being our customer.

We are extremely anxious to make our operation the finest possible, but we need your help,principally because you see us objectively. Will you be kind enough to check off someanswers on the “self-improvement” questionnaire?

NAME: _______________________________

1. How would you rate the overall Quality of service you receive from THE J&K Bank?o EXCELLENTo GOODo SATISFACTORYo POOR

2. A Convenient Branch to get too EXCELLENTo GOODo SATISFACTORYo POOR

3. Branch Hours are conveniento EXCELLENTo GOODo SATISFACTORYo POOR

4. The Branch layout is spacious and uncluttered.o EXCELLENTo GOODo SATISFACTORYo POOR

5. I spend very little time waiting in line to get service from the tellers.o EXCELLENTo GOODo SATISFACTORYo POOR.

6. Counter staff is immediately available to provide counter service.o EXCELLENTo GOODo SATISFACTORYo POOR

7. Phone calls to the Branch are handled quickly and efficiently.o EXCELLENT

60

o GOODo SATISFACTORYo POOR.

8. The staff is very courteous and helpful.o EXCELLENTo GOODo SATISFACTORYo POOR

9. The staff is well informed about the Bank’s products and services.

o EXCELLENTo GOODo SATISFACTORYo POOR

10. The Branch has a pleasant and friendly atmosphere.


11. My accounts are handled


12. I am well informed concerning any changes in serviceso EXCELLENTo GOODo SATISFACTORYo POOR

Signature: ___________________

Name: ______________________