Transcript
Page 1: Final Report Prime Bank

DECLARATION

I, JIGNESH VEGADA, DO hereby declare that the project “Customer

perception and attitude study at “PRIME co-operative bank limited” fixed

deposit scheme among bank’s customers” submitted in partial fulfillment of the

award of the Master Of Business Administration Degree of the VEER

NARMAD SOUTH GUJRAT UNIVERSITY has been carried out by me under

the guidance and supervision of M/s. JANKI MISTRY, faculty of MBA

Department, DEPARTMENT OF BUSINESS AND INDUSTRIAL

MANGEMENT.

DATE: JIGNESH VEGADA

ACKNOWLEDGMENTACKNOWLEDGMENT1 PRIME Co-operative Bank Ltd

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I would like to take this opportunity and express our gratitude and thanksI would like to take this opportunity and express our gratitude and thanks

to all the supporters, who helped and guided us during the completion of ourto all the supporters, who helped and guided us during the completion of our

project work.project work.

I would also like to express our sincere thanks to our faculty Ms. JANKII would also like to express our sincere thanks to our faculty Ms. JANKI

MISTRY for exposing us to such kind of field experience and supporting andMISTRY for exposing us to such kind of field experience and supporting and

guiding us during the project work.guiding us during the project work.

I am also thankful to I am also thankful to “PRIME Co-operative bank ltd” at Surat forat Surat for

providing the required support and giving us permission for our work in theirproviding the required support and giving us permission for our work in their

bank.bank.

I am also thankful those people who give their precious time for fillingI am also thankful those people who give their precious time for filling

the questionnaire.the questionnaire.

And at last, I would like to thank all who have directly or indirectly helpAnd at last, I would like to thank all who have directly or indirectly help

us to develop our project and that respondence that provide us their kindus to develop our project and that respondence that provide us their kind

responses. responses.

-JIGNESH VEGADA-JIGNESH VEGADA

CONTENTS

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Title.

Page No.

Chapter 1………………………………………………………………………………..….. 09

Introduction

Chapter 2…………………………………………………………………………………….12

Industry Profile

Chapter 3……………………………………………………………………………….........18

Company Profile

Chapter 4……………………………………………………………………………….........34

4.1 Research Methodology…………………………………………………….......35

4.2 Research problem statement …………………………………………………..35

4.3 Objectives of the Study …………………………………………………….....35

4.4 Variable of the study ……………………………………………………….....36

4.5 Formulation of Hypothesis…………………………………………………….36

4.6 Research Design ……………………………………………………………....37

4.7 Limitations of the study.……………………………………………………....38

4.8 Need and Scope …………………………………………………………….....38

4.9 Data analysis plan ……………………………………………………………..38

Chapter 5…………………………………………………………………………………….39

5.1 Review of Literature

Chapter 6…………………………………………………………………………………….41

6.1 Analysis and Interpretation

Chapter 7…………………………………………………………………………………….61

7.1 Findings ………………………………………………………………………..62

7.2 Suggestions …………………………………………………………………….63

7.3 Conclusion ……………………………………………………………………..64

Bibliography………………………………………………………………………………...65

Annexure……………………………………………………………………………………67

LIST OF TABLES3 PRIME Co-operative Bank Ltd

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Table no

Title Pg no

1. Table showing gender ratio using fixed deposit service of prime co-operative bank ltd

42

2. Table showing income wise customer using fixed deposit service of prime co-operative bank ltd 43

3. Table showing occupational wise customer using fixed deposit service of prime co-operative bank ltd 44

4. Table showing awareness about fixed deposit service45

5. Table shows prime bank customers who are investing money in other bank. 46

6. Table shows prime bank customers who are investing money in other bank. 47

7. The table shows chi-square test relationship between customer income and

customer investing money in other bank.48

8. The table shows cross tabulation between “customer incomes” and “for

different time period customer investing money in fd scheme”.50

9.The table shows cross tabulation between “customer occupation” and “a

customer think fd is better option of investment”.51

10. The table shows chi-square test relationship between “customer income” and

“security of money”.52

11. The table shows chi-square test relationship between “customer occupation”

and “prime bank support and service”.54

12.The table shows chi-square test relationship between “customer incomes” and

“for future family support”.56

13. The table shows cross tabulation between “customer occupation” and “trust

on bank”.58

14.The table shows cross tabulation between “customer income” and “easy

reception of money after maturity”.59

15.The table shows frequency distribution fixed deposit scheme on an overall

basis60

LIST OF CHARTS

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Table no

Title Pg no

1. Chart showing gender ratio using fixed deposit service of prime co-operative bank ltd

42

2. Chart showing income wise customer using fixed deposit service of prime co-operative bank ltd 43

3. Chart showing occupational wise customer using fixed deposit service of prime co-operative bank ltd 44

4. Chart showing awareness about fixed deposit service45

5. Chart shows prime bank customers who are investing money in other bank. 46

6. Chart shows prime bank customers who are investing money in other bank.47

7. Chart shows chi-square test relationship between customer income and

customer investing money in other bank.49

8.Chart shows cross tabulation between “customer incomes” and “for different

time period customer investing money in fd scheme”.50

9. Chart shows cross tabulation between “customer occupation” and “a

customer think fd is better option of investment”.51

10. Chart shows chi-square test relationship between “customer income” and

“security of money”.53

11.Chart shows chi-square test relationship between “customer occupation” and

“prime bank support and service”.55

12. Chart shows chi-square test relationship between “customer incomes” and

“for future family support”.57

13.Chart shows cross tabulation between “customer occupation” and “trust on

bank”.58

14.Chart shows cross tabulation between “customer income” and “easy

reception of money after maturity”.59

15.Chart shows frequency distribution fixed deposit scheme on an overall basis

60

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SUMMARY

EXECUTIVE SUMMARY

The SIP titled ‘To study the Customer Perceptions study at “PRIME co-

operative bank ltd fixed deposit scheme among bank’s customers” banking

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Services among the Customers in SURAT’. The main objective of the study

was to know how the customers of “PRIME co-operative bank ltd” fixed

deposit scheme Services in Surat City and also to identify the factors affecting

the preferences of the customers. The sampling technique used for this study

was simple random sampling and the sample size was 100. The tool which I

used to analysis the data was simple average method and the data’s where put in

tabular form as well as in chart form also. And I have also used chi-square test

in my study.

As a result of this survey I was able to conclude that the customer was

satisfied with fixed deposit scheme provided by “PRIME co-operative bank

ltd”. And the factors like customer service, technical factors affected the

preference of consumers in choosing “PRIME co-operative bank ltd”

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CHAPTER -1

INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

CUSTOMER

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A customer is someone who makes use of the paid products of an individual or

organization. This is typically through purchasing or renting goods or services.

The word historically derives from “custom”, meaning “habit”; a customer was

someone who frequented a particular shop, who made it a habit to purchase goods of the sort

the shop sold their rather than elsewhere, and with whom the shopkeeper had to maintain a

relationship to keep his or her “custom”, meaning expected purchases in the future. The

shopkeeper remembered the sizes and preferences of his or her customers, for example. The

word did not refer to those who purchased things at a fair or bazaar, or from a street vendor.

CUSTOMER SATISFACTION

Customer satisfaction is a business term which is used to capture the idea of

measuring how satisfied an enterprise’s customers are with the organization’s efforts in a

market place.

Every organization has customers of some kind. The organization provides products

(goods and/or services) of some kind to its customers through the mechanism of a

marketplace. The products that organization provides are subject to competition whether by

similar products or by substitution products. The reason an organization is interested in the

satisfaction of its customers is because customers purchase the organization’s products. Te

organization is interested in retaining its existing customers and increasing the number of its

customers.

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person. The state of

satisfaction depends on a number of both psychological and physical variables.

The level of satisfaction can also vary depending on other options the customer may

have and other products against which the customer can compare the organization’s products.

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The usual measures of customer satisfaction involve a survey instrument with a set of

statements. The customer is asked to evaluate each statement and then select from a scale

how the customer agrees or disagrees with statement.

GENERAL MODEL:

A general model of the buyer decision process consists of the following steps:

Want recognition;

Search of information on products that could satisfy the needs of the buyer;

Alternative selection:

Decision-making on buying the product;

Post-purchase behavior.

Customer satisfaction measurement program:

Customer satisfaction research is not an end unto itself. The purpose, of course, in

measuring customer satisfaction is to see where a company stands in this regard in the eyes of

its customers, thereby enabling service and product improvements which will lead to higher

satisfaction levels. The research is just one component in the quest to improve customer

satisfaction.

Customer satisfaction and consumer behavior are very closely related. Consumer

behavior is lightly different from customer satisfaction. Consumer Behavior is the study of

how people buy, what they buy, when the buy and why they buy. It is a sub category of

marketing that blends elements from psychology, sociology, socio psychology, anthropology

and economics. It attempts to understand the buyer decision making process, both

individually and in groups, it studies characteristics of individual consumers such as

demographics, psychographics, and behavioral variables in an attempt to understand people’s

wants, it also tries to assess influences on the consumer from groups such as family, friends,

reference groups, and society in general, today the customer satisfaction is also termed as

customer delight; rather than satisfaction present day marketers try to make the customers

delight. Indian business is facing a variety of newer challenges. The economy requires a

different set of marketing responses, a major business response is to sustain freshness in

marketing and, to locate business response is to sustain freshness in marketing and, to locate

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better approaches for delighting customers, the name of the current marketing game is to

sharply focus on customer satisfaction and retaining the satisfied customer for life. The idea

of delighting customers may sound simple. However, it demands extreme concentration and

creativity in making it happen, it requires an organizational approach. Thus, the route to

customer delight is most enduring when the entire organization is structured and geared for it

under the challenge leadership of marketing. The marketers need an array of marketing skills,

concepts and frame works for ensuring customer delight.

Models of consumer behavior:

One of the best known of the explanatory models that have been developed to

explain the interactions involved is that of Howard and Sheth. This contains a deal of

common sense, although, as is often the case with such models, the rather obscure

terminology makes it appear more confusing than it really is. The ‘inputs’ (stimuli) that the

consumer receives from his or her environments are

1. Significative – the ‘real’ (physical) aspects of the product or service (which the consumer will

make use of)

2. Symbolic – the ideas or images attached by the supplier (for example by advertising)

Howard and Seth group these into two areas:-

1. Perceptual – those concerned with obtaining and handling information about the product or

service,

2. Learning – the processes of learning that lead to the decision itself

Such models can help theorists to explain consumer behavior better, but it can be

difficult to put them to practical use.

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CHAPTER -2

INDUSTRY PROFILE

INDUSTRY PROFILE

Banking in India originated in the first decade of 18th century with The General Bank

of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these

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banks are now defunct. The oldest bank in existence in India is the State Bank of India being

established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later,

foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that

point of time, Calcutta was the most active trading port, mainly due to the trade of the British

Empire, and due to which banking activity took roots there and prospered. The first fully

Indian owned bank was the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab

National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which

were founded under private ownership. The Reserve Bank of India formally took on the

responsibility of regulating the Indian banking sector from 1935. After India's independence

in 1947, the Reserve Bank was nationalized and given broader powers.

Nationalization

By the 1960s, the Indian banking industry has become an important tool to facilitate

the development of the Indian economy. At the same time, it has emerged as a large

employer, and a debate has ensued about the possibility to nationalize the banking industry.

Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the

annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on

Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her

move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest

commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a

national leader of India, described the step as a "masterstroke of political sagacity." Within

two weeks of the issue of the ordinance, the Parliament passed the Banking Companies

(Acquit ion and Transfer of Undertaking) Bill, and it received the presidential approval on

9th August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit

delivery. With the second dose of nationalization, the GOI controlled around 91% of the

banking business of India.

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer

to the average growth rate of the Indian economy.

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Liberalization

In the early 1990s the then Narasimha Rao government embarked on a policy of

liberalization and gave licences to a small number of private banks, which came to be known

as New Generation tech-savvy banks, which included banks such as UTI Bank (now re-

named as Axis Bank) (the first of such new generation banks to be set up), ICICI Bank and

HDFC Bank. This move, along with the rapid growth in the economy of India, kick started

the banking sector in India, which has seen rapid growth with strong contribution from all the

three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in

the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights which could exceed the present cap of 10%, at present it has gone up to 49%

with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning.

The new wave ushered in a modern outlook and tech-savvy methods of working for

traditional banks. All this led to the retail boom in India. People not just demanded more from

their banks but also received more.

Current Situation

Currently (2007), banking in India is generally fairly mature in terms of supply,

product range and reach-even though reach in rural India still remains a challenge for the

private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian

banks are considered to have clean, strong and transparent balance sheets relative to other

banks in comparable economies in its region. The Reserve Bank of India is an autonomous

body, with minimal pressure from the government. The stated policy of the Bank on the

Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly

been true.

With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector-the demand for banking services, especially retail banking,

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mortgages and investment services are expected to be strong. One may also expect M&as,

takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its

stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an

investor has been allowed to hold more than 5% in a private sector bank since the RBI

announced norms in 2005 that any stake exceeding 5% in the private sector banks would

need to be vetted by them.

Meaning (definition) of Bank:

It is generally said that the word "BANK" has been originated in Italy. In the middle

of 12th century there was a great financial crisis in Italy due to war. To meet the war

expenses, the government of that period a forced subscribed loan on citizens of the country at

the interest of 5% per annum. Such loans were known as 'Compare', 'minto' etc. The most

common name was "Monte'. In Germany the word 'Monte was named as 'Bank' or 'Banke'.

According to some writers, the word 'Bank' has been derived from the word bank.

It is also said that the word 'bank' has been derived from the word 'Banco' which

means a banch. The Jews money lenders in Italy used to transact their business sitting on

banches at different market places. When any of them used to fail to meet his obligations, his

'Banco' or banch or banch would be broken by the angry creditors. The word 'Bankrupt'

seems to be originated from broken Banco. Since, the banking system has been originated

from money leading business; it is rightly argued that the word 'Bank' has been originated

from the word "Banco'.

Present Situation

In the present situation, banking in India has attained fair amount of maturity in terms

of supply, product range and reach-even though reach in rural India still remains a challenge

for the private sector and foreign banks. In terms of quality of assets and capital adequacy,

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Indian banks are considered to have clean, strong and transparent balance sheets relative to

other banks in comparable economies in its region.

India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is

with the Government of India holding a stake), 29 private banks (these do not have

government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign

banks. They have a combined network of over 53,000 branches and 17,000 ATMs.

According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75

percent of total assets of the banking industry, with the private and foreign banks holding

18.2% and 6.5% respectively.

According to researches carried out by the Reserve Bank of India (RBI), on an all

India basis, 59 per cent of the adult population in the country has bank accounts and 41 per

cent don’t. In rural areas, the coverage of banks is 39 per cent, against 60 per cent in urban

areas. There is only one bank for a population of13000.

BANK I NG S YS T EM IN IN D IA

Apex Banking Institution

RBI

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CHAPTER -3

COMPANY PROFILE

COMPANY PROFILE:

PRIME BANK

Prime is a name of the bank where the bank is ready to serve its banking services to

all customers under the slogan of “YOUR BANK FOR YOU”

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Prime co-operative bank ltd was promoted by an experienced and visionary

entrepreneur named Mr. GOKUL BAKSHI, he is the Founder Chair person of the bank and

continues to supervise its growth and development.

The Bank started off with exemplary combination of talented Board & potential staff

team, stuffed with extreme professionalism and well designed contours of working method.

The bank started as a paperless unit employing tele-banking, remote banking, off-time

banking, Sunday banking, holiday banking and many more allied methodologies from the

very beginning right from the D-day.

Your Bank for You

Prime Co-operative Bank Ltd. known as a “Fully Equipped High Tech Banking Super

Market” in South Gujarat Area. Our slogan is “Your BANK FOR You”. There are so many

products & services we have launched first in South Gujarat Area. Therefore, we are

trendsetter to others for our unique, extraordinary, high tech, speedy services & products.

Achievements

BEST PERFORMING CO.OP. BANK AWARD RECEIVED FOR SECURING 3RD

RANK IN GUJARAT AND 6TH RANK IN INDIA BASED ON LAST THREE YEARS

FINANCIAL PERFORMANCE.

PRIME BANK PROFILE

Prime is a name of the bank where the bank is ready to serve its banking services to

all customers under the slogan of “YOUR BANK FOR YOU”

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The bank is governed by the Gujarat co-operative societies act, a legislation enacted

by the state of Gujarat in India.

Prime co-operative bank ltd was promoted by an experienced and visionary

entrepreneur named Mr. GOKUL BAKSHI, he is the Founder Chair person of the bank and

continues to supervise its growth and development.

The Bank started off with exemplary combination of talented Board & potential staff

team, stuffed with extreme professionalism and well designed contours of working method.

The bank started as a paperless unit employing tele-banking, remote banking, off-time

banking, Sunday banking, holiday banking and many more allied methodologies from the

very beginning right from the D-day.

The bank emerged as an exemplary unit offering a wide range of specialized services

in various sectors. Unlike majority of the banks where working timings are linked with

employee-convenience. PRIME BANK decided to hold timings as per convenience of the

cluster of clients whom it caters.

In the line with the same philosophy some of our branches in the residential area work

all the seven days of the week, without a break. They work on Sundays w/o any alternative

drop during the week. Likewise to focus special attention on the senior citizens the bank

offers to credit monthly interest in their account with any bank before 5th day of every

month.

PRIME BANK HISTORY

Landmark achievements in its growth are:

Year Achievements

1994 Bank was incorporated under the chairmanship of Mr. Gokul Bakshi. Bank

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commenced business from a rented location. Retail banking was the initial

activity of the bank. Focus of strategy was stability, market penetration,

resources build up and steady growth.

1995 Product development strategy initiated. Bank started financing small scale

industries as recommended by RBI from Goiporia Committee and Narsimha

committee.

1996 “Customer is a king” approach initiated concept of information technology

were used like TELE Banking/Remote Banking with the advent of

computerized operations. Off time banking concept were introduced i.e.

evening 6:00 p.m. to 8:00 p.m. were provided for bank’s retail customer to

reduce their Cash risk and continue as on date.

1997 Branch Expansion Strategy initiated and bank started its first branch Bhulka

Bhavan Branch at Adajan in August 1997 within the very next month i.e.

Sept.97 bank had started another Branch at Katargam GIDC.

1998 Branch Expansion had continued during the year and 3rd branch was opened in

June 98 at M.G.Road, 4th branch was opened in oct-98 at new sardar market &

5th branch was opened in Dec-98 at bhatar char rasta.

1999 Bank has taken permission from RBI to accept the NRI deposits. Introducing

“smart cash” – a smart alternative of cash named as “prime purse”. It is useful

at 143 places in the entire Surat area and response encouraging received from

valuable class of people of Surat.

2000 Bank started with opening of a new millennium branch at navsari (millennium

branch in feb.2000 first bank in south Gujarat to open its out city branch. Bank

has opened another outstation branch at Bharuch in sep-2000, starting to open

D-MAT a/c in November 2000

2004 Prime Completed its 10th anniversary, and introduced schemes like Prime

Sarasvatee, Prime Health Card and Prime Citizen for its valued customers

2005 Prime joined its hands with Worlds Number 5 raked Insurance Provider named

AVIVA Insurance, providing Life Insurance and with IFFCO-TOKIO for

providing Marine Insurance and General Insurance to its customers.

2006 Introduced Schemes like Loan for Gold in partnership with ICICI Bank. Also

opened a Bill Collection Centre at its Bharuch Branch for collecting Gas Bills

of Gujarat Gas Co. Ltd. To make payment system qicker RBI has launched

RTGS scheme for scheduled bank, Prime has joined hands with Kalupur

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Commercial Bank to help its customers to have the advantages of RTGS.

Prime has done a remarkable job as Baroda District Industrial Co-operative

Bank’s merger with Prime Co-operative Bank, placing its management on its 7

branches, which has increased area of its working up to Chotta Udaipur in

Gujarat just 72 km away from the MP border.

Prime started the process of Franking on 21st Nov. at Surat & Baroda, where

customers can bring in their blank papers and convert them to a stamp paper

without paying additional fees.

2007 Prime has done a remarkable job as Adajan Nagrik Co-Op. Bank's merger with

Prime Co-operative Bank, placing its management on it, which has increased

area of its working in Surat city.

Prime Bank has started business of Mutual Funds on a referral basis. Bank has

tied with Principal PNB Mutual Fund, UTI, Benchmark, ICICI Prudential,

Reliance, SBI, Lotus, Birla, Kotak, Sundaram ETC.

2008 Prime Bank has received Category-2 License to carry out Foreign Exchange

Business

Prime Bank had done Hat trick in Merger of weak Banks."

      -In June 2006 Vadodara 50 year old bank with its 7

        branches, 'Baroda Industrial Co-Op. Bank.'

      -In June 2007 Surat's 'Adajan Nagrik Co-Op. Bank' and

      -In June 2008 Nadiad's 38 year old bank with its 3

branches 'United Mercantile Co-Op. Bank.

2009 Tie-up with Paul Merchants for foreign inward remittance facility

through Western Union Money Transfer.

Two branches opened on 1-06-2009 – one at Bodeli dist. Bodeli and another

one at Vyara Dist. Tapi.

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Fourth merger taken place on 22-09-09. Sanand Urban Co-op. Bank Ltd.,

Sanand taken into merger.

BALANCE SHEET

BALANCE SHEET AS AT 31st MARCH 2011.

3/31/2010 CAPITAL AND LIABILITIES Annex. (unaudited)

       

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76,649,600.00 SHARE CAPITAL 1 97,899,600.00

- RESERVE FUND OTHER FUNDS 2 285,818,825.91

- DEPOSIT 3 5,005,926,763.11

1,370,779,.60 BORROWINGS Against FD   11,514.00

 BILLS FOR COLLECTION BEING

BILLS   

5,466,301.44 RECEIVABLE (as per contra)   14,989,846.92

7,986,694.00 INTEREST PAYABLE   9,556,474.00

86,016,986.30 Overdue Interest Reserve   57,995,911.66

- BRANCH ADJUSTMENT   4,603.33

- OTHER LIABILITES 5 68,425,704.38

34,027,774.10 Profit & Loss Account 6 29,692,925.43

       

211,518,135.44 -   5,911,,712,038.99

       

  PROPERTY & ASSETS    

       

75,335,419381 CASH IN HAND   110,717,920.81

236,050,983.53 BALANCE WITH BANKS 7 221,261,432.08

2,191,684,814.7

6INVESTMENT 8 2,711,926,661.81

2,085,007,060.7

1ADVANCES 9 2,551,490,795.03

122,211,653.30 INTEREST RECEIVABLES 10 115,699,781.66

  BILL RECEIVABLES BEING    

5,466,301.44BILL FOR COLLECTION (as per

contra)  14,989,846.92

31,756,919.48FIXED ASSETS INCLUDING LEASED

ASSETS (DEPRECIATED VALUE)  37,715,475.51

78,540,581.53 OTHER ASSETS 11 102,230,893.17

17,724,000.00 Loss of Merged Banks   8,398,000.00

- BRANCH ADJUSTMENT    

37,281,250.00 Other Investments   37,281,250.00

4,881,058,984.5     5,911,712,038.99

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6

  CONTINGENT LIABILITY    

2,920,870.00 Guarantee issued   5,567,130.00

Fixed Deposit Meaning:

In deposit terminology, the term Fixed Deposit refers to a savings account or

certificate of deposit that pays a fixed rate of interest until a given maturity date. Funds

placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can perhaps

only be withdrawn with advanced notice and/or by having a penalty assessed.

Fixed Deposit Scheme:

Prime FD Interest         :  We are pleased to inform you that with effect from 16th August

2010, rate of interest on fixed deposits will be changed as under –

                                    Period                                                 Rate of Interest

                                    7 – 30 days (minimum Rs.15 Lacs)    6.50%

                                    31 –180 days                                        6.50%

                                    181 – 365 days                                     7.00%

                                    Above 1-3 years                                   8.00%

                                    Above 3 years                                      7.50%

Prime Advantage   :  Deposit of Rs.15.00 Lacs & above & get 0.50% extra Interest.

Prime Time             :  It is auto renewal fixed deposit scheme. Which can renew at every 30

days automatically at 6.50% rate of interest? Effective yield will be 6.61% (Limit for TDS –

Rs.151, 200/-)

Prime Citizen          :  1% extra interest on Deposit or Recurring Account of Senior Citizen

of 60 Year & more. Get your interest of fixed deposit monthly, quarterly, Half Year or Yearly

to your Savings Account (If in other bank also) facility.        

Prime Gem              :  A scheme to get flexible interest monthly, quarterly, half yearly or

yearly.

25 PRIME Co-operative Bank Ltd

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Prime Gold              :  A cumulative interest scheme to get Rs.1, 000/- on maturity for

deposit Rs.906/- for 15 months or Rs.690/- for 60 months.

Min. Deposit        Period                Interest          Effective Yield            Limit for                           (Months)            Rates                                                   TDS               Rs.   933/-              12                       7.00%              7.18%                    1,39,017/-Rs.   906/-              15                       8.00%              8.30%                    1,21,404/-Rs.   854/-              24                       8.00%              8.55%                    1,21,268/-Rs.   789/-              36                       8.00%              8.91%                    1,20,717/- Rs.   743/-              48                       7.50%              8.65%                    1,26,310/-Rs.   690/-              60                       7.50%              8.99%                    1,29,030/-

Prime Plus               :  Get more than double in 112 months @7.50 rate of interest.  Effective

Yield 10.72% (limit for TDS – Rs. 69,700/-) more than double

Prime Recurring Scheme:

Prime Gift               :  A scheme is design for betterment of your children’s future (Lakhpati

Scheme).  Invest Rs.1295/- per month for 63 month & get Rs.1, 00,905/- on maturity @

7.50% rate of interest.

Prime Life               :  Life Insurance Coverage of LIC linked monthly recurring scheme. To

invest Rs.235/- per month for 84 month (7 Year) with coverage of Rs.25,000/- Life Insurance

of LIC with guaranteed return of 6.50% rate of interest.                

Monthly Deposit           Ins. Coverage                                    Rs.  235/-                               Rs.  25,000/-                                    Rs.  470/-                               Rs.  50,000/-                                    Rs.  705/-                               Rs.  75,000/-                                    Rs.  940/-                               Rs.1,00,000/-                                    Rs.1175/-                               Rs.1,25,000/-                                    Rs.1410/-                               Rs.1,50,000/-                                    Rs.1645/-                              Rs.1,75,000/-                                    Rs.1880/-                               Rs.2,00,000/-

Prime Silver            :  Bank rate linked monthly recurring scheme. To invest minimum

Rs.100/- or in multiple or deposit unlimited amount without fear of TDS for 39 months.

There will be no TDS applicable for this scheme. At present interest rate is 9% (Bank

Rate=6% + 3%=9%)

Over Draft Facility with Savings Bank Account

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Prime Money          :  A unique & fantastic over draft facility with savings bank account.

You can also get 3.50% interest of interest on your credit balance of savings.

PRIME BANK SERVICES:

Bank Assurance

Life Insurance        :  We are first Co-operative Bank of South Gujarat Area who has tie up

& start Life Insurance Products Business with Aviva Life Insurance Co. India Ltd. As a

“Bank Assurance”. (Corporate Basis)

 Please note: The insurance products are underwritten by Aviva Life Insurance

Company India Limited, Registered Address - Aviva Tower, Sector Road, Opp. Golf Course,

DLF Phase - V, Sector-43, Gurgaon-122003, Haryana. Prime Cooperative Bank acts as a

corporate agent of Aviva Life Insurance Company India Limited. License No: 4811452. For

more details on risk factors, terms and conditions please read the specific product brochure

carefully before concluding a sale.

 

Insurance is a subject matter of solicitation.

General Insurance: We are first Co-operative Bank of South Gujarat Area who has tie up &

start Life Insurance Products Business with Iffco Tokio General Insurance Co. Ltd. as a

“Bank Assurance”. 

Stamp Franking Services: We provide stamp franking service at following branches 

      * Main Branch, Khatodara, Surat.

      * Dandia Bazar Branch, Baroda.

      * Sayajiganj Branch, Baroda.

      * Navsari Branch. 

      * Nadiad Branch. 

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      * Bodeli Branch, Dist. Baroda

      * Vyara. Dist. Tapi

Mutual Funds         :  We are first & only Co-operative bank of South Gujarat Area who has

been staring business of Mutual Funds as a referral basis.

Prime Lockers        :  There is one & only Co-operative bank of the South Gujarat – Prime

Bank has been offered Rent Free Locker Facility to the customers since the inception of the

Prime Bank.

Prime Fore. Exch.  :  We can cater Foreign Exchange (Latter of Credit & Bank Guarantee)

through IndusInd Bank. Now, we have been doing the business of Money

Exchange/Changing Business. 

Inward Foreign Remittance: We have tied up with Western Union Money Transfer for

inward foreign remittance

Prime Dmate         :  We can cater Dmate account facility through HDFC Bank.

Prime RTGS              :  Now you can Transfer you fund or to receive the fund from any City

or place of India (RTGS-Real Time Gross Settlement).

Prime ePayment: We have tied up with AXIS Bank for ePayment of TDS and Income Tax

Mobile Banking      :  We are a first & only Co-operative High Tech Banking Super Market

to cater your Bank’s inquiry on your finger tips in South Gujarat Area. You can also get

cheque status on your mobile phone. You can also get lass three transactions on you cell.

Prime ABB               :  We are a first & only Fully Equipped, High Tech, Professional

Banking Super Market of South Gujarat offered Any Branch Banking. You can make Cash,

Clearing & Transfer Transaction from any of Prime Bank’s Branch. You can also get

Statement of your account or pass book of your savings bank account.  So you are not a

Customer of specific Branch of Prime Bank but you are Customer of Prime Bank.

Seven Day working our various branches working for 7 days. 1) Bhulka Bhavan Branch 2)

Bhatar Road Branch

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SCHEMES

Life Insurance Bank has tied with Aviva Life Insurance Co ltd. It is joint

venture between Dabur – Indian FMCG Co & AVIVA – UK’s

No 1 & world’s No 5 insurance co. All the branches are offering

all the insurance products of AVIVA viz for your child

education, daughter’s marriage, your retirement solution, term

plan etc.

General Insurance Bank has tied with IFFCO-TOKIYO General Insurance. It is

joint venture between IFFCO a big fertilizer company in co-

operative sector & TOKIYO General Insurance – Japan’s No 1 &

world’s No 5 General Insurance Co. All the branches are offering

all the products viz Mediclaim, Accident insurance, Vehicle

Insurance, House Insurance, factory & Shop keeping Insurance.

Mutual Fund Bank has tied with Principal PNB Mutual Fund, UTI,

Benchmark, ICICI Prudential, Reliance, SBI, Lotus, Birla,

Kotak, Sundaram ETC.

Lockers Rent free locker facility are available in Baroda at Kareli Baug,

Bodeli, at Bharuch, Navsari & at following branches of Surat

1. Bhulka Bhavan (Adajan) Road,

2. Palanpur Road

3. Citylight Road,

4. Bhatar Char Rasta

5. Sardar Market Branch and

6. Lalgate Branch

PRIME BANK CHARGES:

Service charges w.e.f. 1-01-2009.

All types of Savings Bank A/c – No frills A/c

Minimum Balance – Rs. 500/-

Charges for non maintenance thereof – NIL

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Other savings bank account facilities

Issue of Duplicate Statement – Rs. 10/- per page.

Issue of loose cheque leaves  – Rs. 5/- per leaf

Issue of duplicate pass book  – Rs. 25/-

 

Remittance Facilities through own bank

DD/PO- Issue:       Rs. 10/- per instrument However against cash

                               Rs. 20/- per instrument.

DD/PO Stop Payment   - Rs. 50/- per instrument

RTGS-Outward            -  Rs. 25/- per request up to Rs. 5 lacs 

                                     -  Rs.50/- per request beyond Rs. 5 lacs

RTGS-Inward               - Free.

Collection of Cheques

Foreign Exchange Transactions

Remittance Outward /Inward         Actual charges by other bank 

                                                         + Rs. 100/- per request.

TCs – Selling / Encashing                         as above

Outstation Cheque Collection

                                     Own             Direct              Other bank           

Outstation (Rs.)            0.00       Actual + 35/-                35/-   

                                              (not more than Rs. 100/-)       

Bouncing of cheques     35/-      Actual + 75/-                75/-  

Inward Bills Collection

0.20 % with Minimum Rs. 10/- + Rs. 25/- postages

Clearing Return charges 

Return of cheques deposited  – Rs. 25/-

Return of cheques issued       – Rs. 75/- + interest @ 18% for a day  

                                                  if amount is beyond Rs. 1.00 lac 

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                                                  ( Days of Holiday to be added)

 ECS return charges              – Rs. 75/-

Incidental Charges 

Customers who are using  : Rs. 1.45 per entry subject to 

MICR Cheque Books          minimum Rs. 70/- per quarter

                                                                                              

Customers who are using  : 50 paisa per entry subject to 

Non-MICR Cheque Books  minimum Rs. 35/- per quarter

 

Processing Charges : Rs. 250/- annually in March,  on CC & OD    

                                       (except OD against NSC/KVP/LlC/FD) 

Prepayment Charges                   - Nil 

No due Certificates                     - Nil 

Charges for late payment of EMI - 3% p.a. on overdue amount 

 

E-Payment of Tax :

Up To Rs.5000/- = Rs.20/-

Above Rs.5000/- = Rs.50/-

SOCIAL CONTRIBUTIONS:  

Prime bank does not lag behind in offering contribution for the social activities, particularly

in the field of education and medicines. Out of activities, particularly in the field of education

and medicines. Out of the substantial profits earned by the Prime bank every year after the

year, several goodwill gestures are made such as,

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·          Prime Bank Computer lab at Vankal

·          TV & VCD to Deaf & Dumb School. 

·          Prime Bank conference Hall at the Commerce Bhavan (KP college of

Commerce, Surat)

·          Prime Bank computer Center at the Engineering college run by the Sarvajanik

education Society of Surat.

·          Prime Bank Computer Center at T&TV School, Gopipura, Surat.

·          Distribution of blankets among the people affected by the September’98 flood.

·          Special Scheme to encourage bright children of the shareholders, carrying on

Further studies and also for their medical treatment.

·          Contribution for relief services under the auspices of the service organization

“Chhaydo” offered at the civil medical campus for patients and their caretakers

coming from the surrounding villages.

·          Award of shields at the skating and other sports activities.

·          Award of shields to the brilliant student (institution of Interior Designs.)

·          Charity Contribution towards Mahavir Cardiac Hospital of Rs. 11, 25,000/- in

the year 2000-01.

·          Scholarships to students as well as Medical Expense relief to members under

the Scheme of Member Welfare.

·          Sponsored an unforgettable Sports Event for the Children of almost 60 schools

of Surat, organized by Rotary Club.

·          Contributed a Traffic Island at Bardoli & Navsari.

·          Have arranged Blood Donation Camp.

·          Beautiful Traffic Island at Panch Batti, Bharuch.

The above are just a few out of the innumerable events and charities where the Prime

Bank has actively taken part, and the list will go on until the Bank exists.

SHARE HOLDER BENEFIT:

      (1) Reimbursement of 50% hospitalization Expenses to first named share holder, subject

to limit of Rs.5000/-

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      (2) Scholarship of Rs.500/- to Children of Share Holders on getting 70%

Marks in SSC/HSC, on getting 60% in Graduation      (Arts, Commerce,

Science, Management), on getting Cleared CA Inter / CA Final exam and on getting

Admission in Degree Engineering, Medical College. Scholarship will be given every

year till he / she clear the exam.

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Chapter 4

RESEARCH METHODOLOGY

4.1 RESEARCH METHODOLOGY

The success of the analysis mostly depends on the methodology on which it is carried

out. The appropriate methodology will improve the validity of the findings.

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AREA OF THE STUDY:

The study was mainly concentrated on Surat city and different branches of the Prime

co-operative bank ltd.

4.2 PROBLEM STATEMENT

Customer perception and attitude study at “PRIME co-operative bank limited” fixed

deposit scheme among bank’s customers”

4.3 OBJECTIVES OF THE STUDY

The summer placement study helps the student to check whether the theory and

practice actually matches. Organizational exposure helps the student to know how effectively

they performed in the market.

The primary objectives of the study is,

To identify which factors lead to the selection of prime co-operative banks fixed

deposit scheme.

The secondary objectives of the study is,

To identify the problems faced by the fixed deposit customers.

To understand the competition environment of the bank

To study how the customer choose their respective fixed deposit services in bank.

To identify the customer trust on bank

4.4 VARIABLES

CATEGORICAL VARIABLES

Nominal

Education

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Name

Gender

Occupation

CONTINUOUS VARIABLES

Ratio

Attitude

Perception

4.5 FORMULATION OF HYPOTHESIS

• There is no significant relationship between “customer income” and “for different

time period customer investing money in FD scheme”.

• There is no significant relationship between “customer occupation” and “prime bank

support and service”.

• There is no significant relationship between “customer income” and “security of

money”.

• There is no significant relationship between “customer income” and “FD is important

for future family support”.

4.6 RESEARCH DESIGN:

Descriptive Research: Descriptive research includes survey and fact-findings enquire of

different kinds. The major purpose of descriptive research is description of the state affairs, as

it exists at present.

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DATA COLLECTION:

The study is based on the data collected through primary and secondary sources.

SECONDARY DATA:

PRIMARY DATA:

A questionnaire was designed to collect primary data from various fixed deposit

customer.

SAMPLING DESIGN:

The sampling design mainly consists of the sample taken for the study along with the

sample size, sample frame and sampling method.

SAMPLE UNIVERSE:

The data of All customers using fixed deposit service was taken as the sample

universe.

SAMPLE SIZE:

From the universe, sample sizes of 100 customers were selected for the purpose of the

study.

SAMPLE FRAME:

The customers were selected on convenience sampling.

SAMPLING METHOD:

Convenience sampling was used, based on the willingness and availability of the

respondents. The study was conducted on consumers with different type of business.

4.7. LIMITATIONS OF THE STUDY

a) The behavior of the customer while approaching them to fill the questionnaire was

unpredictable.

b) The shortage of time was another constrain for the study.

c) There may be error due to bias of respondent

d) Lack of customer’s cooperation was a major constraint.

e) Some of the customer was too aggressive in nature.

37 PRIME Co-operative Bank Ltd

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f) When asking the question about them incomes that time they are some hesitate to give

the information.

g) Majority of the customer are senior citizen and that’s why they didn’t interact

properly.

4.8. NEED AND SCOPE OF THE STUDY

Today, for any organization or firm to survive in this competitive world depends on

its ability to be dynamic and be different from the competition to be unique in the industry.

Customer Satisfaction helps every organization to keep the existing customer and to build

new customer.

This research is aimed at profiling the standard customer with an aim to increase

the network and improve company-customer relations. The information gathered through this

research can be used by the company to improve its services and became more customers

friendly. This can increase the goodwill of the company and its overall performance.

Thus this study is aimed to provide the management with some knowledge about

its status in market both in terms of sales and customer awareness. The research also aims to

provide some ideas to improve the company’s present condition.

4.9 DATA ANALYSIS PLAN

Data will be analyzed using SPSS (Statistical Package for Social Sciences)

package v 17.0 by IBM. The data analysis tool applied here is frequencies, cross tabulation,

and chi-square analysis.

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Chapter 5

Review of literature

Review of literature

A brief literature would be of immense help to the researcher in gaining insight into

selected problem. The researcher would gain good background knowledge of the problem by

reviewing certain studies. A reference to these entire studies will be related in the contest of

the shaping the present study.

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YOGESH KUMAR FOUZDAR, in his study an observation recorded is that people are not very

keen on buying FDs as the interest rates are very low in comparison to products like mutual

funds, shares, etc. and so people think that they are getting very less returns than expected on

their investments.

1. YOGESH KUMAR FOUZDAR, “Enhancing the Fixed Deposit Penetration in Retail

Banking”, a study with a reference to HDFC bank”, an unpublished MBA. Dissertation,

submitted to Hindustan institute of management and computer study, Mathura July 2009-

2010.

2. Rajesh R (2010), in his study “Whether Today's Customers are Satisfied? A Study

with Banks”. The study reveals that on an average 80% of its customers are

satisfied.

3. Nikhil Chandra Shil (2010), in his study, “Analysis of Gap in Service Quality through

SERVQUAL: A Case of Deposit Service Provided by a Bank in Bangladesh”. A

questionnaire survey is administered to calculate the gap score using SERVQUAL scale and

thrust areas have been identified on the basis of the gap score where management should give

more attention.

4. M.Muzakkeerul Huda, in his study,” Explicating Customer Satisfaction: A Survey

on Private Commercial Banks”. Customer satisfaction is more prioritized in recent

years due to the quality drive among customers. The current research also targets to

accommodate the quality issue on satisfaction from service providers’ point of

view. Services of private commercial banks are evaluated to study the level of

satisfaction achieved by them in satisfying their clients.

40 PRIME Co-operative Bank Ltd

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Chapter 6

ANALYSIS AND INTERPRETATION

Table showing gender ratio using fixed deposit service of prime

co-operative bank ltd

GenderFrequenc

yPercent Valid

PercentCumulative

Percent

Valid

Male 77 77.0 77.0 77.0

Female

23 23.0 23.0 100.0

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Total 100 100.0 100.0

CHART 1

INTERPRETATION:

The Interpretation is that 77% male have using fixed deposit service, while the other side

23% female using fixed deposit service of Prime co-operative bank ltd.

Table showing income wise customer using fixed deposit service of prime co-operative bank ltd

IncomeFrequency Percent Valid Percent Cumulative Percent

Valid

Below Rs. 120000 11 11.0 11.0 11.0

120000-180000 22 22.0 22.0 33.0

180000-240000 26 26.0 26.0 59.0

Above 240000 41 41.0 41.0 100.0

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Total 100 100.0 100.0

CHART 2

INTERPRETATION:

The Interpretation is that 11% customer whose income is Below Rs.120000, 22% customer

whose income are between 120000-180000, and 26% customer whose income is 180000-

240000, and 41% customer whose income is Above 240000.

Table showing occupational wise customer using fixed deposit service of prime co-operative bank ltd

Occupation Frequency Percent Valid Percent Cumulative Percent

Valid

Student 5 5.0 5.0 5.0

Business 33 33.0 33.0 38.0

Professional 14 14.0 14.0 52.0

Government service 15 15.0 15.0 67.0

Other 33 33.0 33.0 100.0

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Total 100 100.0 100.0

CHART 3

INTERPRETATION:

The Interpretation is that 5% customer is student, 33% is business man, 14% is professional,

15% is government service, and 33% who are retired person and housewife those are

investing money in prime bank FD scheme.

Table showing awareness about fixed deposit service

Awareness about the FD Frequency Percent Valid Percent Cumulative Percent

Valid

yes 99 99.0 99.0 99.0

not sure 1 1.0 1.0 100.0

Total 100 100.0 100.0

CHART 4

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INTERPRETATION:

The Interpretation is that 99% customer is aware about the fixed deposit scheme and only 1%

customer is not aware about the fixed deposit scheme of prime co-operative bank ltd.

Table showing prime bank customers who are investing money in

other bank

Investing money in other banks FDFrequenc

yPercent Valid Percent Cumulative Percent

Valid yes 49 49.0 49.0 49.0

no 51 51.0 51.0 100.0

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Total 100 100.0 100.0

CHART 5

INTERPRETATION:

The Interpretation is that 49% of customer who invested money in prime bank fixed deposit

scheme they are also invested money in other banks FD scheme and 51% of customer they

are not invested money in other banks fixed deposit scheme.

Table shows prime bank customers who are investing money in other

bank.

bank Frequencies

Responses Percent of CasesN Percent

investment in other Investment SBI 19 21.1% 38.8%

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bank

Investment ICICI 1 1.1% 2.0%

Investment SURAT PEOPLES BANK

17 18.9% 34.7%

investment BOB 9 10.0% 18.4%

Investment HDFC 3 3.3% 6.1%

Investment POST OFFICE 24 26.7% 49.0%

Investment ANY OTHER 17 18.9% 34.7%

Total 90 100.0% 183.7%

CHART 6

Investm

ent S

BI

Investm

ent IC

ICI

Investm

ent S

URAT PEO

PLES BANK

investm

ent B

OB

Investm

ent H

DFC

Investm

ent P

OST O

FFICE

Investm

ent A

NY OTH

ER0

5

10

15

20

25

30

CHI-SQUARE TEST:

THE TABLE SHOWS CHI-SQUARE TEST RELATIONSHIP BETWEEN

“CUSTOMER INCOME” AND “CUSTOMER INVESTING MONEY IN OTHER

BANK”.

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Cross tabulation

Count

Investing money in other banks FD Total

Yes no

Income

Below Rs. 120000 3 8 11

120000-180000 14 8 22

180000-240000 10 16 26

Above 240000 22 19 41

Total 49 51 100

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 5.475a 3 .140

Likelihood Ratio 5.592 3 .133

Linear-by-Linear Association .446 1 .504

N of Valid Cases 100

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.39.

The chi-square value is 0.140 which is more than 0.05 that’s why null hypothesis

is failed to rejected. There is no significant relationship between “customer

income” and “customer investing money in other bank”.

CHART 7

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INTERPRETATION:

As per the data showing we can say that 41% customer income is more than 240000 among

that 54% customer investing money in other bank fixed deposit scheme and 46% customer is

not investing money in other bank fixed deposit scheme. 11% customer income is below

120000 among that 27% customer investing money in other banks FD and 73% customer is

not investing money in other bank FD.

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THE TABLE SHOWS CROSS TABULATION BETWEEN “CUSTOMER INCOME”

AND “FOR DIFFERENT TIME PERIOD CUSTOMER INVESTING MONEY IN FD

SCHEME”.

Cross tabulation

Count

For what time period have you invested Total

7-30 days

6.50%

31-180 days

6.50%

181-365

days 7.00%

above 1-3

years 8.00%

above 3

years 7.50%

Income

Below Rs.

120000

1 1 1 8 0 11

120000-180000 0 0 5 17 0 22

180000-240000 1 0 3 20 2 26

Above 240000 4 2 4 28 3 41

Total 6 3 13 73 5 100

CHART 8

INTERPRETATION:

As per the data showing we can say that 41% customer income is more than 240000 among

that 10% customer investing money in 7-30 DAYS 6.50% FD scheme and 5% customer is

investing money in 31-180 days 6.50% FD scheme, 10% customer investing money in 181-

365 days 7% FD scheme, 68% customer investing money in above 1-3 years 8% FD scheme

and 7% customer investing money in above 3 years 7.50% FD scheme.

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THE TABLE SHOWS CROSS TABULATION BETWEEN “CUSTOMER

OCCUPATION” AND “A CUSTOMER THINK FD IS BETTER OPTION OF

INVESTMENT”.

Cross tabulation

Occupational statusA better option of investment Total

Strongly agree Agree Neutral

Disagree

student 0 2 1 2 5

Business 2 19 12 0 33

Professional 0 4 10 0 14

Government service 0 5 10 0 15

other 2 18 12 1 33

Total 4 48 45 3 100

CHART 9

INTERPRETATION:

As per the data showing we can say that 33% customer occupation is business among that 6%

customer is strongly agree about FD is better option of investment and 58% customer is agree

about FD is better option of investment, 36% customer is neutral about FD is better option of

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investment and no one is disagree.14% customer occupation is professional among that 29%

customer is agree and 71% customer is neutral about FD is better option of investment.

THE TABLE SHOWS CHI-SQUARE TEST RELATIONSHIP BETWEEN

“CUSTOMER INCOME” AND “SECURITY OF MONEY”.

Cross tabulation

Count

Security of money Total

Strongly agree Agre

e

Neutral Disagree

Incom

e

Below Rs.

120000

3 4 4 0 11

120000-180000 4 14 3 1 22

180000-240000 3 22 1 0 26

Above 240000 8 30 3 0 41

Total 18 70 11 1 100

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 15.771a 9 .072

Likelihood Ratio 13.624 9 .136

Linear-by-Linear Association 1.878 1 .171

N of Valid Cases 100

a. 11 cells (68.8%) have expected count less than 5. The minimum expected count

is .11.

The chi-square value is 0.072 which is more than 0.05 that’s why null hypothesis

is failed to rejected. There is no significant relationship between “customer

income” and “security of money”.

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CHART 10

INTERPRETATION:

As per the data showing we can say that 41% customer income is more than 240000 among

that 20% customer is strongly agree with security of money in prime bank and 73% customer

is agree, 7% customer is neutral with security of money in prime bank.11% customer income

is below 120000 among that 27% customer is strongly agree with security of money in prime

bank, 36% customer is agree, 36% customer is neutral with security of money in prime bank.

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THE TABLE SHOWS CHI-SQUARE TEST RELATIONSHIP BETWEEN

“CUSTOMER OCCUPATION”AND “PRIME BANK SUPPORT AND SERVICE”.

Cross tabulation

Bank support and service Total

Strongly agree Agree Neutral

Occupational status

student 1 3 1 5

Business 21 10 2 33

Professional 11 3 0 14

Government service 4 10 1 15

other 18 13 2 33

Total 55 39 6 100

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 12.910a 8 .115

Likelihood Ratio 13.488 8 .096

Linear-by-Linear Association .099 1 .753

N of Valid Cases 100

a. 7 cells (46.7%) have expected count less than 5. The minimum expected count is .30.

The chi-square value is0.115 which is more than 0.05 that’s why null hypothesis

is failed to rejected. There is no significant relationship between “customer

occupation” and “prime bank support and service”.

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CHART 11

INTERPRETATION:

As per the data showing we can say that 33% customer occupation is business among that

64% customer is strongly agree about bank support and service of prime bank and 30%

customer is agree about bank support and service of prime bank, 6% customer is neutral

about bank support and service of prime bank and no one is disagree.14% customer

occupation is professional among that 79% customer is strongly agree and 21% customer is

agree about bank support and service of prime bank.

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THE TABLE SHOWS CHI-SQUARE TEST RELATIONSHIP BETWEEN

“CUSTOMER INCOMES” AND “FOR FUTURE FAMILY SUPPORT”.

Cross tabulation

Count

For future family support Total

Strongly agree Agre

e

Neutral Disagree Strongly

disagree

Incom

e

Below Rs.

120000

1 6 2 1 1 11

120000-180000 2 11 8 1 0 22

180000-240000 2 14 9 1 0 26

Above 240000 7 23 11 0 0 41

Total 12 54 30 3 1 100

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 13.663a 12 .323

Likelihood Ratio 10.745 12 .551

Linear-by-Linear Association 3.835 1 .050

N of Valid Cases 100

a. 13 cells (65.0%) have expected count less than 5. The minimum expected count

is .11.

The chi-square value is 0.323 which is more than 0.05 that’s why hypothesis is

failed to rejected. There is no significant relationship between “customer

incomes” and “for future family support”.

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CHART 12

INTERPRETATION:

As per the data showing we can say that 41% customer income is more than 240000 among

that 17% customer is strongly agree with FD is good for future family support and 56%

customer is agree, 27% customer is neutral with FD is good for future family support. 11%

customer income is below 120000 among that 9% customer is strongly agree with FD is good

for future family support, 55% customer is agree, 18% customer is neutral with security of

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money in prime bank, 9% customer is neutral and 9% customer is strongly disagree about FD

is better for future family support.

THE TABLE SHOWS CHI-SQUARE TEST RELATIONSHIP BETWEEN

“CUSTOMER OCCUPATION” AND “TRUST ON BANK”.

Cross tabulation

Trust on bank Total

Strongly agree

Agree Neutral

Disagree

Occupational status

student 0 3 0 2 5

Business 12 19 1 1 33

Professional 8 6 0 0 14

Government service

4 10 0 1 15

other 12 19 0 2 33

Total 36 57 1 6 100

CHART 13

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INTERPRETATION:

As per the data showing we can say that 33% customer occupation is other among that 36%

customer is strongly agree with trust on bank and 58% customer is agree with trust on bank,

6% customer is disagree with trust on bank. 15% customer occupation is government service

among that 27% customer is strongly agree and 67% customer is agree, 7% customer is

disagree with the trust on bank.

THE TABLE SHOWS CHI-SQUARE TEST RELATIONSHIP BETWEEN

“CUSTOMER INCOME” AND “EASY RECEPTION OF MONEY AFTER

MATURITY”.

Cross tabulation

Easy reception of money after maturity Total

Strongly agree Agre

e

Neutral Disagree

Incom

e

Below Rs.

120000

4 6 0 1 11

120000-180000 9 13 0 0 22

180000-240000 10 15 1 0 26

Above 240000 20 21 0 0 41

Total 43 55 1 1 100

CHART 14

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INTERPRETATION:

As per the data showing we can say that 41% customer income is more than 240000 among

that 49% customer is strongly agree with easy reception of money after maturity and 51%

customer is agree, and no one is disagree. 11% customer income is below 120000 among that

36% customer is strongly agree , 54% customer is agree and 9% customer is disagree with

easy reception of money after maturity.

THE TABLE SHOWS FREQUENCY DISTRIBUTION FIXED DEPOSIT

SCHEMEON AN OVERALL BASIS

Frequency Percent

poor 1 1.0

fair 9 9.0

good 31 31.0

very good 35 35.0

excellent 24 24.0

Total 100 100.0

CHART 15

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INTERPRETATION:

24% customer said that FD scheme of prime bank is excellent, 35% customer said that very

good, 31% customer said that good and 9% customer said that fair and only 1% customer

said that poor FD scheme of prime bank all over basis.

Chapter 7

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Finding and suggestion and conclusion

7.1. FINDINGS

1. Quality of the service provided plays an important role in keeping the existing

customers and to bring new customers.

2. Large number of the customers having FD scheme of Prime Co-operative Bank belong

to businessman and other, in other category there are retired persons and housewife

those are using the FD around 66%. Thus FD scheme has attracted attention of

different people.

3. Large numbers of the customers having the FD scheme of Prime Co-operative Bank

belong to middle and higher income group ranging from Rs. 1.80 lacs – to above Rs.

2.40lacs. Thus the FD scheme has perfectly targeted the middle and higher income

group people.

4. Most of the prime bank customer they are also investing money in different banks FD

scheme, around 49% customer investing in different bank FD scheme.

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5. Majority of the customers think that FD is the better option of investment because the

return given by bank is fixed for particular rate of interest given on different scheme.

6. Majority customer has trust on prime co-operative bank, some of the customer don’t

have the trust on prime bank so prime bank have to build the trust on those customer

who think the prime bank is not trustful, this is the most important.

7. Majority of the customer are satisfy by the easy reception of money after maturity, this

saw the relationship between bank and customer is good.

8. Around 73% customers are investing money in the 1-3 years scheme because the rate

of interest given by bank is 8% which is high in comparison with the other FD scheme.

9. Large number of the customers having FD scheme are Satisfied with the bank support

and service provided by the Prime Co-operative Bank for FD .94% customer agreed

that service provided by Prime Bank is excellent.

10. Majority of the customer are feeling that security of money in prime co-operative bank

is very good.

11. Large number of the customers having FD scheme are satisfied with the FD scheme is

the important for future family support, around 94% customers agreed that.

7.2. SUGGESTIONS

On completion of the project work “Customer perception and attitude towards

“PRIME bank” fixed deposit scheme service among customers of SURAT, I would like to

give my suggestions which the company can make use of:-

1. The customer rate bank support and service for fixed deposit scheme as the most relevant

one and hence “prime bank” should maintain bank support and service and should make

improvements in this feature.

2. If any complaint is observed from the customers, it should be dealt quickly. This will

reduce the chance for dissatisfaction.

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3. Prime bank have to maintain those customer who are also investing money in other bank,

because most of the customer investing other bank also and fulfill those customer need and

give them good service.

4. Most of the customer investing money in 1-3 years scheme because the rate of interest give

by this time period is high so in other scheme customer investing money low, so bank have to

increase the customer to invest money those time period also.

5. Those customer who are thinking that prime bank is not trustful, so this making the

dissatisfaction and that’s why bank have to increase the trust on customer that is most

important.

7.3. CONCLUSION

The project titled “Customer perception and attitude towards fixed

deposit investments at the PRIME CO-OPERATIVE BANK LTD” was

carried out among the customers in SURAT. The overall objective of the study

was to find out how the customer perceives “Prime bank fixed deposit scheme

and service and to find out their satisfaction towards the service against other

bank. The study revealed the picture of customers’ perception and satisfaction

which help “PRIME co-operative bank ltd” to encourage more people to be

the customers/consumers of “Prime bank”.

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BIBILIOGRAPHY

BOOK REFERENCES

Philip Kotler & Keller, Koshy and Jha (2009), Marketing Management, 13th Edition,

Asian Perspective, Prentice Hall Inc .

Cooper Donald, R. & Schindler Pamela, S. (2006).Marketing Research Concepts

&Cases. Edition, Tata McGraw Hill Publishing Company Limited.

Field, A.P. (2005), Discovering Statistics Using SPSS, 2nd Edition, London Sage

WEBSITE REPERENCES:

HTTP//WWW. primebankindia.com

http://finance.indiabizclub.com/info/indian_banking_industry

http://www.blurtit.com/q361870.html

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Annexure

QUESTIONNAIRE

Dear sir/madam, I am a student of NIS Academy Vadodara and I am undertaking a study

on “Customer perception and attitude towards fixed deposit investments at the

PRIME CO-OPERATIVE BANK LTD.” as my project topic. I request you to give your

objective and unbiased opinion. The information will be kept confidential.

-Rahul Sondharwa

PERSONAL DETAILS:

Name : _______________________________________________

Gender: [ ] Male [ ] Female

Income:

[ ] Below Rs. 120000 [ ] 120000-180000

[ ] 180000-240000 [ ] Above 240000

Occupational Status:

[ ] Student [ ] Business [ ] Professional

[ ] Government Service [ ] Others. Specify: __________

1. Are you aware about the fixed deposit scheme of the Prime Co-op bank?

[ ] yes

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[ ] no

[ ] not sure

2. Have you invested your money in fixed deposit scheme of prime co-operative

bank?

[ ] yes

[ ] no

3. Have you invested money in any other’s bank fixed deposit scheme?

[ ] yes

[ ] no

(If answer to question no. 3 is yes, than answer the question no. 4, otherwise skip

it)

4. In which other bank(s) have you invested your money in fixed deposit scheme,

(Multiple tick marks possible)

[ ] SBI [ ] ICICI [ ] AXIS BANK [ ] BOB

[ ] UNION BANK [ ] POST OFFICE [ ] ANY OTHER_________________

5. What would you say about the fixed deposit scheme of Prime Co-op Bank when

Compared with other banks fixed deposit scheme?

[ ] Much better [ ] somewhat better [ ] same [ ] worse

6. For what time period have you invested your money in FD of Prime Co-op

bank?

Period    Rate of Interest

[ ] 7 – 30 days (minimum Rs.15 Lacs) 6.50%

[ ] 31 –180 days 6.50%

[ ] 181 – 365 days 7.00%

[ ] above 1-3 years 8.00%

[ ] above 3 years 7.50%

7. Do you have any knowledge about the loan provided by prime co-operative

bank against fixed deposit?

[ ] yes

[ ] no

[ ] not sure

8. Rate the following reasons for investing in fixed deposit scheme, on the scale of

1-5, Where, (1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly

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disagree)

No Attributes Scale

1 2 3 4 5

1 Good rate of interest

2 A Better option of investment

3 Security of money

4 Bank support and service

5 For loan against fixed deposit

6 For future family support

7 Trust on bank

8 Easy reception of money after maturity

9. Rate the fixed deposit scheme of prime co-operative bank on overall basis.

[ ] Poor [ ] Fair [ ] good [ ] very good [ ] Excellent

70 PRIME Co-operative Bank Ltd


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