PROJECT REPORTON

“EFFECTIVENESS OF CUSTOMER RELATIONSHIP MANAGEMENT PROGRAMME IN thee SAS NAGAR CENTRAL CO-OPERATIVE BANK LTD.

Submitted in thee partial fulfillment of thee requirement for thee award of thee degree of Bachelor of Commerce.

VISHAL GILHOTRA

College Roll No:- CUN130502075

This is to certify that above statement made by thee candidates are correct to best

of my knowledge.

SUPERVISOR

MR. RAJIT VERMA

LIST OF TABLES

Serial no.

Name of table Page no.

1 No. frequencies for since when they are availing thee services of bank

2 No. of frequencies for which type of account are they availing

3 No. of frequencies are satisfied with thee services offered by bank staff

4 No. of frequencies for various factor on which customer are satisfied

5 No. of frequencies for various factor on which customer are not satisfied

6 No. of frequencies for in addition to cooperative bank, which bank’s services customer are availing.

7 No. of frequencies for what is prompting to customer not avail thee services of only cooperative bank.

8 No. of frequencies for aware of various services offered by cooperative bank.

9 No. of frequencies for customer which services are they aware of.

10 No. frequencies for what are various problems that they come to face while dealing with bank.

11 No. of frequencies for what would they recommend to improve bank service’s further.

LIST OF FIGURES:

SERIAL NO. NAME PAGE NO.

1 Model of CMR

2 Basic customer experience

3 No. frequencies for since when they are availing thee services of bank

4 No. of frequencies for which type of account are they availing

5 No. of frequencies are satisfied with thee services offered by bank staff

6 No. of frequencies for various factor on which customer are satisfied

7 No. of frequencies for various factor on which customer are not satisfied

8 No. of frequencies for in addition to cooperative bank, which bank’s services customer are

availing.

9 No. of frequencies for what is prompting to customer not avail thee services of only cooperative bank.

10 No. of frequencies for aware of various services offered by cooperative bank.

11 No. of frequencies for customer which services are they aware of?

12 No. frequencies for what are various problems that they come to face while dealing with bank.

13 No. of frequencies for what would they recommend to improve bank service’s further.

CONTENTS

• Introduction to CRM

• Executive Summary 

• Objective of study

• Research Methodology

• Data presentation, analysis & interpretation

• Findings

• SWOT analysis

• Conclusion

• Recommendations

• Limitations

• Appendix

INTRODUCTION TO BANKING

The financial sector is in thee process of rapid transformation. Reforms are continuing as part of

thee overall structural reforms aimed at improving thee productivity & efficiency of thee

economy. thee role of an integrated financial infrastructure is to stimulate & sustain economic

stability. Banking sector has display stability for thee last several years, even when other

markets in thee Asian region were facing crises. thee stability was ensured through thee

resilience that has been built thee system over time. thee financial sector has kept pace with

growing needs of cooperate & other borrowers. Banks, capital markets participants & insurers

have developed a wide range of products & services to suit varied customer requirements. thee

Reserve bank of India has successfully introduced a regime where interest rates are more in line

with market forces. Financial institutions have combated thee reduction in interest rates &

pressure on their margins by constantly innovating & targeting attractive consumer segments.

Bank & trade financiers have also played an important role in promoting foreign of thee country.

WHAT IS BANK?

To a layman, a bank is one that accepts deposits from public & lends money. Few

DEFINATIONS of bank are discussed below:-

“Bank is an establishment for thee custody of money, which it pays out on customer’s

order”

The definition emphasizes that a bank accepts money for safe custody that is repayable on

order of thee depositor.

THE CONCISE OXFORD DICTIONARY

“Bank collects money from those who have it to spare or who are saving it out of their

income, and

It lends this money to those who require it.”

This definition brings out thee two important functions of a banker namely, acceptance of

deposits & lending.

“A bank is a commercial establishment- a dealer in debts which aims at earning profit by

accepting deposits from public, which are repayable on demand or otherwise through cheques,

drafts or otherwise which are used for lending or investment.”

The Indian banking system has large geographic & functional coverages.. While commercial

banks cater to short & medium term financing requirement, national level & state level financial

institutions meet thee requirement. This distinction is getting blurred with commercial banks

extending project finance. Banking today has transformed into a technology intensive &

customer friendly model with a focus on convenience. thee sector is set to witness thee

emergence of financial supermarket in thee form of universal banks providing a suite of services

from retail to corporate banking & industrial lending to investment banking. While corporate

banking is clearly thee largest segment, a personal, financial service is thee highest growth

segment. thee recent favorable government policies for enhancing limits of foreign investments

to 49 percent among other key initiatives have encouraged such activity. Large banks will be

able to mobilize sufficient capital to finance asset expansion & fund investments in technology.

CLASSIFICATION OF BANKS ON BASIS OF OWNERSHIP

On thee basis of ownership banks are of thee following types:

1. PUBLIC SECTOR BANK

Public sector banks are those banks which are owned by thee Government. thee Govt.

runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6

banks were also nationalized. Therefore in 1980 thee number of nationalized banks is 20.

But at present there are 9 banks are nationalized. All these banks are belonging to public

sector category. Welfare is their principle objective.

2. PRIVATE SECTOR BANKS

These banks are owned & run by thee private sector like various banks in thee country

such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in

preparation to thee share of thee banks held by him.

3. CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term & medium

term loans to there members. Co-operative banks are in every state of India. Its branches

at district level are known as thee central co-operative bank. thee central co-operative

bank in turn has its branches both in thee urban & rural areas. Every state co-operative

bank is an apex bank which provides credit facilities to thee central co-operative bank. It

mobilized financial resources from richer section of urban population by accepting

deposit & creating thee credit like commercial bank & borrowing from thee money mkt.

It also gets funds from RBI.

INTRODUCTION TO CO-OPERATIVE BANKS

The cooperative bank has history of almost 100 years. thee cooperative banks are an important

constituent of thee Indian Financial System, judging by thee role assigned to them, thee

expectations they are supposed to fulfill their number & the number of offices they operates. thee

co-operative movement originated in thee West, but thee importance that such banks have

assumed in India is rarely paralleled anywhere else in thee world. Their role in rural financing

continues to be important even today, & their business in thee urban areas has increased

phenomenally in thee recent years mainly due to thee sharp increase in thee number of primary

co-operative banks. While thee co-operative banks in rural areas mainly finance agricultural base

activities including farming, cattle , milk, hatchery , personal finance etc. along with some small

scale industries & self-employment driven activiyies, thee co-operative banks are quite forward

looking & have developed sufficient core competencies to challenge state & private sector banks.

According to NAICUB, thee total deposits & lending of Co-operative banks are much more than

old private sector banks

& also thee new private sector banks. This exponential growth of Co-operative banks is

attributed mainly to their much better local reach personal interaction with customers, & their

ability to catch thee nerve of thee local clientele.

Though registered under thee Co-operative societies act of thee Respective State (where formed originally) thee banking related activities of thee cooperative banks are also regulated by thee Reserve Bank of India. They are governed by thee Banking Regulation Act 1949 & banking laws Act 1965 thee cooperative banks are small sized units organized in thee cooperative sector, which operat both in urban & non urban center. They finance small borrowers in industrial & trade sector besides professional & salary classes

TECHNOLOGY USED

Since April 2007 thee PSCB is under Core Banking Solutions, having thee Core Banking

Solution from world famous company I- Flex solutions in Banking. Flex cube core banking

technology, powered by Oracle Database & Oracle Real Application Clusters is being used in

thee bank. A dedicated data center is set up at Chandigarh for core banking solution to run

continuously 24 x 7 days with specific norms, specialized precision air- conditioned ,

gaseous fire fighting equipments , dedicated uninterrupted power supply, specific data

cabling & internet connectivity, easy emergency services support, control panels, Security

system & monitoring systems. This data center is providing 24 x 7 days service to Apex bank

Chandigarh & all District Central Cooperative banks in Punjab State, where there are

sophisticated servers & networking equipments are installed.

AWARDS 

The Punjab State Cooperative Bank has already been awarded “BEST PERFORMANCE AWARD” from NABARD & NAFSCOB. For thee year 2003-04, Cooperative Bank has been selected for NABARD's  “Best Performance Award " which is based on performance of all thee SCBs in thee country. Similarly our Jalandhar DCCB has also been selected for NABARD’s “Best Performance Award” out of all thee DCCBs in thee country for thee year 2003-04

TYPES OF CO-OPERATIVE BANKS

The co-operative banks are small-sized units which operate both in urban & non-urban centers. They finance small borrowers in industrial & trade sectors besides professional & salary classes. Regulated by thee Reserve Bank of India, they are governed by thee Banking Regulations Act

1949 & banking laws (co-operative societies) act, 1965. thee co-operative banking structure in India is divided into following 5 components:

PRIMARY COOPERATIVE CREDIT SOCIETY

It is a village institution , which directly deals with thee rural people .It encourages savings

among thee agriculturalists , accept deposits from them, gives loan to thee needy borrowers &

collects repayments. thee funds of thee society are derived from thee share capital, deposits of

members & loan from CCBs. thee borrowing powers of thee members as well as of thee society

are fixed.

CENTRAL COOPERATIVE BANKS (CCBs)

These are thee federation of primary credit societies in a district. They are of 2 types:

There can be cooperative banking unions whose membership is open only to cooperative

societies.

There can be mixed CCBs whose membership is open to both individuals & cooperatives

societies. thee funds of thee bank consist of share capital, deposits, loans & overdrafts

from SCBs. thee bank provides loans to primary credit societies within thee limit of thee

borrowing capacity of societies. However, some loans are also given to individuals &

others.

STATE COOPERATIVE BANKS (SCBs)

These are thee apex institutions in thee 3 tier cooperative structure at thee state level. thee SCB is

a federation of central cooperative bank & act as watchdog of cooperative banking structure in

thee state. Its funds are obtained from share capital, deposits, loan & overdrafts from thee RBI.

thee SCBs lend money to CCBs & primary societies & not directly to farmers.

LAND DEVELOPMENT BANKS

Beside short term credits, agriculturalists also needs long term credit for making permanent

improvement in land, for repaying old debts, for purchasing machinery & other implements.

Cooperative banks & commercial banks by their very nature are not in position to provide long

term loans because their deposits are mainly demand deposits. Thus, there was great need for a

specialized institution for supplying long term credit to agriculturalists. thee establishment of

land development banks now known as cooperative & rural development banks (CARDBS) is an

effort in this direction. This state government & RBI govern LDBs. Recently; thee supervision of

LDBs was given to national bank of agriculture & rural development (NABARD). These sources

of funds for thee banks are debentures subscribes by both central & state government. These

banks do not accept deposits from general public.

Thus, thee Apex of thee cooperative organization in thee state is thee state bank to which Central

Banks into local unions for thee purpose of supervision. All of them are forbidden to lend to non

members except with thee sanction of thee registrar of thee cooperative societies.

Urban Co-operative Banks

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary co-operative banks located in urban & semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities, work place groups. They essentially lend to small borrowers & businesses. Today, their scope of operations has widened considerably.

thee origins of thee urban co-operative banking movement in India can be traced to thee close of nineteenth century. Inspired by thee success of thee experiments related to thee cooperative movement in Britain & the co-operative credit movement in Germany, such societies were set up in India. Co-operative societies are based on thee principles of cooperation, mutual help, democratic decision making, & open membership. Cooperatives represented a new & alternative approach to organization as against proprietary firms, partnership firms, & joint stock companies which represent thee dominant form of commercial organization. They mainly rely upon deposits from members & non-members & in case of need, they get finance from either thee district central co-operative bank to which they are affiliated or from thee apex co-operative bank if they

work in big cities where thee apex bank has its Head Office. They provide credit to small scale industrialists, salaried employees, & other urban & semi-urban residents

OBJECTIVES OF CO-OPERATIVE BANK

To serve as a balancing center for corporative societies in thee state of Punjab registered

under thee Punjab Cooperative societies Act 1961 for thee time being in force.

To promote thee economic interest of thee members of thee bank & cooperative societies

in thee state in according with cooperative society registered under thee said act.

To establish & support or aid in establishment of & support to associations, institutions,

trusts, & convenience of such persons to grant pension & allowances & make payment

toward insurance.

To carry on banking & credit business.

To act as higher financing agency for thee member Central Cooperative bank

To promote & develop saving & credit instrument for thee economic & social welfare of thee members in particular & others in general in Punjab state.

Vision:

To stand out as a pioneer banking institution in india & contribute significantly to thee national economy

Mission:

High quality financial services with thee help of thee latest technology

Fast & accurate customer service

Balanced growth strategy

High standard business ethics.

Steady return on shareholders' equity.

Innovative banking at a competitive price.

Attract & retain quality human resource.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Customer relationship management (CRM) is a strategy used to learn more about customers' needs & behaviors in order to develop stronger relationships with them. thee more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness & market trends. CRM can be adopted to build thee long term relationship with thee customer’s with regularly contacting them on phone or continuously meeting with thee customers.

The adoption of CRM is very necessary for long-term relationship with customers & to create customer loyalty are thee most important part of thee organization. & ultimately increasing thee value of existing customer by cross selling of other product as a result it improves thee profitability of organization

What is Customer Relationship Management?

It is a comprehensive approach that provides smooth coordination between sales, customer service, marketing & field support & other customer touching functions. CRM integrates people, process & technology to maximize relationship with all customers including e-customers, distribution channels & suppliers.

It is customer focused business strategy designed to optimize revenue, profitability & customer loyalty. By implementing a CRM strategy, an organization can improve thee business processes & technology solutions around selling & marketing & servicing functions across all customer touch.

Value of CRM to business

A CRM strategy is designed to increase revenue & profitability by attracting new customers, growing customer business, increasing customer satisfaction & loyalty, enabling more efficient business processes & utilizing lower cost technologies

The primary goal of CRM is higher revenue, not cutting costs. A CRM solution improves sales & marketing efforts & enables organizations to provide superior service to customers. New customers are gained, & existing customers are retained & buy more in greater quantity. & customer’s benefits are receiving superior customer service & getting thee products & services they want, when they want them.

Why is it necessary?

Many companies are turning to customer relationship management systems to better understand customer wants & needs.

CRM applications often used in combination with data warehousing e-commerce application & call-center, which allows companies to assess information about customers buying history, preferences, complaints & other data so they can better anticipate what customer will want. thee goal is to instill greater customer loyalty.

Other benefits include:

The ability to provide faster response to customer inquiries. Increase efficiency through automation. Having a deeper knowledge of customers. Getting more marketing of cross selling opportunities. Identifying thee most profitable customers. Receiving thee customer feedback that leads to new & improved product & services. Doing One to One marketing.

Important aspect for customer relationship managementCustomer satisfaction:

Customer satisfaction it is equivalent to making sure that product & service performance meets customer expectations. It is thee perception of thee customer that thee outcome of a business transaction is equal to or greater than his/her expectation.

We want to know what our customers Want? We want to know if our customers are satisfied. Satisfaction, Of course, means that what we delivered to a customer met thee customer’s Approval. We want to know if customers are delighted & willing to comeback, & so on.

Customer loyalty

Customer loyal is when customer is satisfied & wishes to continue relationship with bank in future banks are struggling by developing & measuring customer loyalty programs to influence their behavior & encourage banks' loyalty rewards programs, thee programs do exist & typically fall into these categories:

Points programs reward consumers for maintaining a product or service with thee bank. Relationship packages bundle products & services together & provide or special pricing to

consumers.

Customer Retention:

Customer Retention is thee activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with thee first contact an organization has with a customer & continues throughout thee entire lifetime of a relationship.

MODEL OF CRM

We now consider thee Business Strategy Perspective on CRM. Here, we propose a model, which is a cross breed, & run of thee mill of a considerable lot of thee models & charts of CRM that you will discover on thee Internet & in famous books on thee point of eMarketing/eCommerce. thee model has three key stages & three logical components-

Three key phases-• 1. Customer Acquisition.• 2. Customer Retention.• 3. Customer Extension.

Three contextual factors-

• 4. Marketing Orientation.• 5. Value Creation.• 6. Innovative IT.

1. Customer Acquisition -This is thee procedure of pulling in our consumers for thee primary their first buy. We have obtained our consumer.Growth - .Through business sector introduction, inventive IT & worth creation we mean to build thee quantity of consumers that buy from us interestingly2. Customer Retention - Our consumers comes back to us & purchases for a brief moment time. We keep them as a consumer. This is destined to be thee buy of a comparative item or administration, or thee following level of item or administration. Growth -Through business sector introduction, imaginative IT & quality creation we expect to build thee quantity of consumers that buy from us consistently. 3. Customer Extension - Our consumers are consistently coming back to buy from us. We acquaint items & administrations with our dedicated consumers that may not completely identify with their unique buy. These are extra, supplementary buys. Obviously once our dedicated consumers have obtained them, we will probably hold them as consumers for thee expanded items or administrations.Growth - Through market orientation, innovative IT & value creation we aim to increase thee number of customers that purchase additional or supplementary products & services.4. Marketing Orientation - implies that thee wholes association is engaged upon thee requirements of consumers. consumers needs are tended to by thee Three Levels of a Product whereby thee associations supplies thee real, substantial item, as well as thee center item & its advantage, furthermore thee expanded item, for example, a guarantee & consumers administration. Showcasing introduction will center upon thee necessities of customers for everry one of thee three levels of an item. (N.B. ‘market’ introduction & ‘showcasing’ introduction are not thee same). 5. Value Creation - focuses on thee era of shareholder quality based upon thee fulfillment of consumers needs (as with promoting introduction) & thee conveyance of a reasonable upper hand.6. Innovative IT - is precisely that - Information Technology must be avant-garde. It ought to be proficient, fast & center upon thee requirements of consumers. Whilst IT and/or programming are not thee whole story for CRM, it is key to its prosperity. CRM programming gathers information on shoppers & their exchanges. Immense databases store information on people & gatherings of people.

Customer ExperiencesThe initial move towards effectively winning, holding & developing thee benefit of private saving money consumers is to comprehend what their needs & needs are, so that thee association can be worked around serving those requirements. Just when an association has done

this & joined this into its procedure would it be able to begin to outline its quality suggestion & a consumers experience that will empower it to accomplish a separated aggressive position in thee private keeping money business sector, & all thee more significantly, do as such in a monetarily reasonable way.

The Basic Customer Experience

Challenges in Customer Relationship Management

1. Accessing customer information

2. Collecting customer information

3. Storing customer information

4. Analyzing customer behaviour

5. Marketing more effectively 6. Enhancing thee customer experience

Internship Position, Duties & Responsibilities

The report has been prepared on thee basis of expertise gathered throughout thee amount of post. Within this time of amount, I mainly work with client to facilitate & recommendation customers thee vary & scope of my work shall range from serving to customers with their account details to giving recommendation on money investments .

Initiate activities to ensure on time & scheduled response to customers.

Ensure to alert Banker with respect to any delays together with potential problems.

Support to open & link new accounts on One Source.

Provide securities details, quotes & valuations to customers.

Ensure to alert Banker of prospective sales opportunities surface from discussions with customers.

Conduct evaluation of consumer’s accounts.

Collect mandatory info to analyze shopper scenario.

Perform as key contact point

Executive summary

In thee last term of final year of Bachelor of commerce (b.com) course, I was sent to central co-operative bank to have a practical exposure on banking activities under thee program “effectiveness of comsumer relationship management “of central co-operative bank Ltd (A Study on kumbra Branch)”.central co-operative bank is a leading private government Bank which starts it operation on under Regulated by thee Reserve Bank of India, they are governed by thee Banking Regulations Act 1949 & banking laws (co-operative societies) act, 1965. Through its countrywide branch network, it is providing a comprehensive & competitive banking service to its clients .With thee starting thee operation of central co-operative bank, thee main branch continue its operation. Throughout my overall study I have mainly tried to critically review thee General Banking Activities of central co-operative bank. kumbra Branch. General banking comprises of account opening, bills, remittance, clearing cash & computer sections. Through these sections it establishes Banker customer relationship, collects bills for customers, remit funds of customers from one place to another, honoree cheques drawn on this branch. General Banking department provides these services in a faster & better manner.

This project reveals thee study of various deposits Operating in thee bank. Bank have different

deposits like fixed deposits, saving ,recurring & current.

The customer have various deposits in thee bank. They are satisfied with thee services of thee bank but suggested that thee formalities should be reduced. Moreover they suggested that thee bank should adopt thee latest technology of thee banking like ATMs, internet / online banking, credit cards etc. so as to bring thee bank at par with thee private sector banks

Last but not thee least Section focused my 4 months internship experience which I learned from central co-operative bank kumbra Branch as well as thee some sort of problem which I have found from my observation. In this part I also try to recommend some solution to solve these problem & conclusion based on my study.. Through thee report I mainly try to critically review thee consumer satisfction kumbra Branch of central co-operative bank.

OBJECTIVE OF STUDY & SCOPE.

I am dealing with thee undertaking of thee adequacy of consumer relationship administration in thee SAS NAGAR CENTRAL COOPERATIVE BANK LTD. thee primary goal of my study is to decide how this bank has thee biggest consumer base & how it is giving thee best administrations to thee consumers. How it is giving thee administrations individual to every consumer regardless of entire consumers.. In last to find that thee consumer is fulfill from these different items & administrations of bank, from their dealings, their offices gave, their conduct with thee consumers & so on.?

Furthermore, thee extent of my study is not just limited to one class. However, I have secured every one of thee classifications of items & administrations furthermore all thee classes of consumers since I have gathered thee information from inside thee Bank, business sector & a few companions home.

The main Scope of thee study is:

1)To find out thee customers’ satisfaction level.

2) To find out why customers have an account in more than one bank.

3) To find thee pitfall in thee services of thee bank.

4) To throw light on how banks are meeting thee needs of customers separately in order to maintain long relation.

5) & what bank should improve to increase its customers’ base & to compete other banks?

RESEARCH DESIGN & METHODOLOGY

RESEARCH PROBLEM: -“ Effectiveness of customer relationship management in thee SAS NAGAR CENTRAL COOPERATIVE BANK LTD.

TYPE OF RESEARCH: - Mix of Descriptive technique has been utilized as a part of this exploration for thee accumulation of information. As thee exploration is identified with thee investigation of shopper fulfillment, which can all thee more viably be considered through direct inquiries, individual meeting & casual talks-exploratory examination won't much compelling. Likewise, considering thee time requirements, unmistakable examination prompting indisputable result is thee most reasonable outline for this exploration as it is identified with why anything happening. It checks thee conduct components of a consumer.

DATA COLLECTION METHOD: -

PRIMARY DATA: - Questionnaire Method

The information has been gathered through poll strategy. thee survey was outlined in such an approach to cover whatever number parts of customer conduct as would be prudent. Numerous inquiries have been approached in it for input from consumers. In it both opened finished inquiries & close finished inquiries have been requested study.

Secondary Data:-

Under this information is taken from thee web. Every one of thee information identified with its profile, mission & capital structure is taken. Indeed, even information identified with this study is additionally taken from thee book which is sent to bank's administrator every year furthermore quarterly identified with its administration, mission & numerous different things.

SAMPLE DESIGN: - Random Sampling

SAMPLE SIZE: - 100

SAMPLE UNIT: - Individual

GEOGRAPHICAL LOCATION: -MOHALI

STATISTICAL TECHNIQUES USED: - Percentage Analysis.

Ques -- 1 Since when are you availing thee services of thee SAS NAGAR COOPERAVTIVE BANKL LTD.?

YEARS

PERCENTAGELess than 1 yr 36

1-3 yr 34

More than 3 yr 30

36%

34%

30%

PERCENTAGE

less than 1 yr 1-3 yr more than 3 yr