PROJECT REPORT

ON

Customer satisfaction survey of J&K Bank

AT JAMMU AND KASHMIR BANK BASHOLI JAMMU

SU B MI TT ED I N TH E P A RT I AL F UL F ILLM E N T O F TH E R E QU I R EM EN T O F
MA ST E R S D E G R E E

In

BU S IN E S S AD M IN IS T R AT IO N ( M BA )

SU B MI TT ED BY: SU B MI TT ED TO

Sumit Slathia Mr. MASROOR AHMAD

S/o: Jarnail Singh (Asst. Professor)
ROLL NO: 366

CORDIA INSTITUTE OF BUSINESS MANAGEMENT SANGHOL

PUNJABI UNIVERSITY PATIALA

1
 DECLARATION

I do hereby declare that the Project entitled “CUSTOMER SATISFACFTION SERVAY

OF J&K BANK” is an authentic work developed by me at J&K Bank Ltd. Under the
guidance of Mr. SURINDER SINGH submitted in partial fulfillment of the requirements
for the award of the degree of Master of Business Administration (MBA) to the CORDIA
INSTITUTE OF BUSINESS MANAGEMENT, SANGHOL (Punjab).

I also declare that, any or all contents incorporated in this Project have not been
submitted in any form for the award of any degree or diploma of any other institution or
university.

SUMIT SLATHIA

MBA 3rd Semester

366

Dated:

2
 ACKNOWLEDGEMENT
Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.
There is always a sense of gratitude, which we express to others for the help and the needy
services they render during the different phases of our lives. I too would like to do it as I really
wish to express my gratitude toward all those who have been helpful to me directly or indirectly
during the development of this project.

I would like to thank my project guide Mr. SURINDER SINGH was always there to help and
guide me when I needed help. His perceptive criticism kept me working to make this project
more full proof. I am thankful to his for his encouraging and valuable support. Working under his
was an extremely knowledgeable and enriching experience for me. I am very thankful to his for
all the value addition and enhancement done to me.

No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so as to enable me to do this work successfully.

SUMIT SLATHIA

MBA 3rd Semester

366

3
 PREFACE
As an integral of the course curriculum, all MBA students are required to undergo major
training in an industry or organization. The main objectives are to supplement Student’s
theoretical knowledge with an exposure to the working environment of an organization.

I have chosen to work with J&K BANK Ltd on the project “Consumer satisfaction survey
of j& k bank” which provided me with an insight of welfare activities of the company.

It has been my best effort to present this report in the systematic manner to make dry
material come alive.

SUMIT SLATHIA

MBA 3rd Semester

366

4
CERTIFICATE
The Jammu & Kashmir Bank Limited
Corporate Headquarters T +91(0)194 2481922 E [email protected]

M.A Road Srinagar 190001 W www.jkbnk.net [email protected]

Kashmir India

Trainings, Career Development Wing

\Ref: HRDD/TRNG-2017-226
AUGUST, 01, 2017

TO WHOM IT MY CONCERN

This is to certify that Mr. SUMIT SLATHIA, pursuing MBA at CORDIA

INSTITUTE OF BUSINESS MANAGEMENT has completed six weeks (JULY-
AUGUST) project training/summer training on “Customer satisfaction survey
of J&K Bank” in our Bank.

His work and conduct has remained satisfactorily during this period.

We wish him all success ahead.

5
 Contents

Chapter 1 Profile of the Jammu and Kashmir bank

Chapter 2 Introduction to the consumer satisfaction

Chapter 3 Policy of j&k bank towards consumer

satisfaction
Chapter 4 Consumer identification requirement

Chapter 5 Objectives of the study

Chapter 6 Research methodology

Chapter 7 Data analysis and interpretation

Chapter 8 SWOT analysis

Chapter 9 findings

Chapter 10 Limitations and suggestions

Chapter 11 Bibliography and references

Chapter 13 Annexure

6
COMPANY PROFILE

7
History of J&K Ban k
The Jammu & Kashmir Bank was founded on October 1, 1938 under
letters patent issued by the Maharaja of Jammu and Kashmir, Hari Singh.
The Maharaja invited eminent Kashmiri investors to become founding
directors and shareholders of the bank, the most notable of which were
Abdul Aziz Mantoo, Pesten Gee and the Bhaghat Famil y, all of whom
acquired major shareholdings. The Bank commenced business on Jul y 4,
1939 and was considered the first of its nature and composition as a State
owned bank in the country. The Bank was established as a semi -State
Bank with participation in capital by State and the public under the
control of State Government. The bank had to face serious problems at the
time of independence when out of its total often branches two branches of
Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of
control (now Pakistan -administered Kashmir) along with cash and other
assets. Following the extension of Central laws to the state of Jammu &
Kashmir, the bank was defined as a government company as per the
provisions of Indian companies act 1956. Mushtaq Ahmed is the new CEO
& Chairman of J&K bank.
It was in the year 1971 that Jammu and Kashmir Bank was granted
the status of a 'Scheduled Bank'. Five years later, it was declared as "A"
Class Bank, by the Reserve Bank of India (RBI). As the years passed on,
the bank started achieving mor e and more success. Today, it boasts of
more than 500 branches across the country. It was onl y recentl y that
Jammu and Kashmir Bank became a billion dollar company. Governed by
the Companies Act and Banking Regulation Act of India, it is regulated b y
RBI and SEBI. It finds a listing on the National Stock Exchange (NSE)
and Bombay Stock Exchange (BSE) as well. J&K Bank’s Annual Report
2008-09 has won three awards at the prestigious LACP 2009 Vision

8
Awards – the world’s largest award programme for Annual Repo rts,
organized by California -based League of American Communications
Professionals (LACP), USA. The LACP is a forum within the public
relations industry that facilitates discussion of best -in-class practices in
public relations and recognizes exemplary com munication capabilities at a
global level. The awards received include – Rank 73 on the top hundred
lists of annual reports from around the world, Platinum Award in the
Commercial Banks – Up to $10billon annual revenue from the Asia
Pacific Region and Silv er Award for Most Creative Report across all
sectors from the Asia Pacific Region. DrHaseebDrabu was chairman and
chief executive of the bank for the period 2005 to 2010.
Organizational Profile of Jammu And Kashmir Bank:
 Despite government holding 53% of equit y shares, still its
private sector bank.
 It is Government Company under Indian companies Act 1956.
 It is an Operational exclusivit y - a virtual monopol y in
J&K and functional distinctiveness - government owned private
bank.
 It is a sole banker of the Government of J&K.
 It is the onl y private sector bank designated as agent of RBI
for banking business.
 It carries out banking business of the Central Government in J&K.
 It collects taxes pertaining to Central B oard of Direct Taxes in
J&K.
INFRASTRUCTURE: Global Standards of J&K Bank:
 It is the fastest growing bank with 520 branches across the
country
 98% of the business of J&K bank is computerized.

9
  Anywhere banking Tele - Banking and SWIFT are facilities
available in J&K bank.
 Internet banking, SMS and mobile banking is provided by J&K
Bank.
 ATMs connected globall y to all Master - Card networked ATMs.
 Mobile ATM services are available - first of its kind in Northern
India.
 J&K bank Global access Deb it Cards: Cirrus and Maestro enabled.
 Own credit card are available.
 It is live on RTGS S ystem of RBI
 It has Electronic Fund Transfer (EFT) S ystem available
Financial Services portfolio: One stop for all financial needs:
 Insurance joint venture for distribution of these are: -
1. It has life insurance products of MetLife (India) Pvt. Limited.
2. It has non -life insurance products of Bajaj Allianz General
Insurance Co. Limited.
 Offering UTI, Reliance and Kotak Mutual Funds.
 It provides deposit dory services.
 It has collected agent for utilit y services provided by State
and Private sector.
 It always tie -ups for sale of consumer goods with number
of Companies like Bajaj Auto, Honda Genset, HCL, etc
Financials & Future Plans:
J&K Bank has posted record net profit of Rs 615.20 crores for the
financial year 2010 -11 against net profit of Rs. 512.38 Crores for the
previous year thereby recording growth of 20%. During this period,
operating profit of the Bank has incre ased from Rs. 958.20 crores to Rs.
1149.49 crores.

10
 The Business of the Bank recorded increase of Rs. 10000 crores
during the year and the total business reached Rs. 70870 crores, recording
a growth of 18%. Deposits increased by 20% to Rs. 44675 crores aga inst
Rs. 37237 crores for the previous financial year. The Loans and Advances
at Rs 26194 crores recorded growth of 14% in comparison to Rs. 23057
crores as at the end of March/2010. The growth in loans and advances is
in spite of the fact that Government of Jammu & Kashmir repaid in full
the Ways and Means facilit y of Rs. 2300 crores in March 2011.
The results were announced after the Board of Directors of the Bank
adopted the audited results for the financial year 2010 -11 in a meeting
held on May 14. The Board recommended an all time high dividend of
260% (Rs. 26/ - per share) subject to the approval of shareholders at the
ensuing Annual General Meeting scheduled to be held on Jul y 9, 2011.
Commenting on the results, Chairman & CEO Mushtaq Ahmad said
“the financial results reflect implementation of business strategy aimed at
qualitative and quantitative growth in business of the Bank. The
performance during the year has put the bank on a growth trajectory for
achieving the planned target of business of Rs. 100000 crore and profit of
Rs. 1000 crore by March 2013.” In his brief remarks on the functioning of
the Bank, Chairman & CEO stated that in spite of the challenges faced
during the last financial year the new business strategy has enabled the
Bank to conv ert the challenges into opportunities. As a result of these
measure net NPA ratio declined to 0.20% against 0.28% for the previous
year. Against the regulatory norm of 70%, the provision coverage ratio of
the Bank is at 92.71% as on 31/03/2011. All signifi cant ratios have
registered satisfactory improvement during the year. Net worth at Rs.
3478.68 crore (up by 15.55%), Earnings per share at Rs. 126.90 (up b y
20%), Book value at Rs. 717.58 (up by 15.55%) and NIM at 3.62% (up by
58 bps) reflect strong fundam entals of the Bank.

11
 The Chairman & CEO stated that the Bank will focus on playing its
role of a developmental financial institution in the State of Jammu and
Kashmir and lay emphasis on the growth and development of agriculture,
industry, and services sect or. He further stated that the policies of the
Bank would be aimed at socio economic development of the State b y
active participation in financing employment generation and povert y
alleviation programs of the State Government. The Bank has taken a lead
role in implementing the Sher -i-Kashmir Employment and Welfare
Program for Youth (SKEWPY) promoted by the State Government as a
mission. As a hand holding measure and to achieve the objective of
alternate employment generation the Bank has constituted a task force for
monitoring implementation of this scheme.
It was disclosed by the Chairman that for registering high volume
business in rest of the country new branches would be opened at all
important commercial centers. During the year 2010 -11 the Bank opened
16 new branches and thereby increased its branch network to 548 branches
in addition to 35 extension counters. The new branches were opened in
under banked rural areas for providing basic banking facilities to
unbanked population. 94% of branches covering more than 99% of the
Bank’s business are networked under Core Banking Solution (CBS). All
CBS branches have been enabled for RTGS and NEFT facilities. During
the year, 73 new ATMs have been commissioned taking the network
strength to 361.
In order to cover the unbanked population in rural areas, the bank
has formulated the comprehensive financial inclusion plan for providing
basic banking services in 535 SLBC allotted villages and in other 725
unbanked villages of the State in a phased manner up to March -2013. The
bank is implementing plan to increase its branch and ATM network to 600
each during the current year to further supplement its direct reach. It was

12
stated by the Chairman & CEO that all these measures were aimed at
providing banking services and other facilities of international standards
to its customers. The bank maintained its reputation of being remarkabl y
responsible premier institution by implementing a well conceived
Corporate Social Responsibilit y (CSR) policy. The key initiatives
undertaken by the bank in this regard have focused primaril y on providing
educational facilities to under privileged sections of the societ y,
extending financial assistance for medical treatment of destitute and
taking meaningful initiatives for preserving and pro moting, heritage and
handicrafts in the State. The chairman & CEO expressed his gratitude to
the government of Jammu & Kashmir, RBI, customers & all other stake
holders of the Bank for their support and patronage.
Brand Identity:
The new identit y for J&K B ank is a visual representation of the
Bank’s philosophy and business strategy. The three colored squares
represent the regions of Jammu, Kashmir and Ladakh. The counter -form
created by the interaction of the squares is a falcon with outstretched
wings – a symbol of power and empowerment.

The s ynergy between the three

regions propels the bank towards

13
new horizons. Green signifies growth and renewal, blue conveys stabilit y
and unit y, and red represents energy and power. All these attributes are
integrated and assimilated in the white counter -form.

Channels of Distribution:
The Bank has continued to expand its distribution network to
augment its geographical reach and maintain business growth momentum.
This has helped the Bank particularl y in the acquisition of low-cost retail
deposits. Out of total 556 branches (including extension counters and
service branches), 344 branches are in semi urban and rural areas. This
reach will help carry on the growth of momentum particularl y in
generating low cos t deposits and credit disbursement to agriculture,
artisan and SME sectors. The ATM network of the Bank has increased
from 460 to 600 during the year, and today constitutes the largest ATM
network in J&K.
The Bank’s branch network (excluding extension coun ters and
service branches) as on 31 s t March 2011 was as under:
Area Branches
Metro 62
Urban 185
Semi urban 73
Rural 290
Total 610
Products/Services offered by J&K Bank:
 Saving Bank Deposits

1. Savings Bank Deposit Scheme SB Ujala -No Frills Account

2. Millennium Deposits Scheme

3. Flexi Deposits Scheme

4. Fixed Deposits Scheme

14
 5. Child Care Scheme

6. Cash Certificates

7. Super Earner Deposits Scheme

8. Recurring Deposits Scheme

9. Recurring Plus Account

10. Smart Saver Scheme

11. Depositors Pension Scheme

12. Tax Saver Term Deposit Scheme

13. Mehandi Deposit Certificate

 Current Accounts

1. Gift Cheque Scheme

2. Platinum Current Account

3. Gold Current Account

4. Premium Plus

5. Current Account

6. Premium Current Account

7. Basic Current Account

 Loans

1. Housing Loan Scheme

2. Education Loan Scheme
3. Car Loan Scheme
4. Car Loan for Used Car
5. Commercial Vehicle Finance
6. Commercial Vehicle Finance (Used Vehicles)
7. Two Wheeler Finance

15
 Other Finances
1. Consumer Loan.
2. Consumption Loan.
3. Personal Loan to Pensioners Mortgage
4. Loan for Trade & Service Sector
5. Loans against Mortgage of Immovable Property
6. Fair Price Shop Scheme
 Specialized Finance Schemes
1. Help Tourism (For Kashmir valley only)
2. All Purpose AgriTerm Loan
3. Fruit Advances Scheme (Apple)
4. Zafran Finance
5. Roshni Financing S cheme
6. Craft Development Finance
7. Dastkar Finance
8. Giri Finance Scheme
9. Khatamband Craftsmen Finance
10. Commercial Premises Finance
11. Laptop/PC Finance
 CREDIT CARDS

1. Global Access Card

2. Empowerment Credit Cards

Types of Cards
 Blue Empowerment Card
 Silver Empowerment Card
 Gold Empowerment Card
 INSURANCE
The Bank diversified its operations when it ventured into the
insurance business, both life and non -life segments.

16
  Life Insurance Segment
 MetLife India Insurance
 Non Life Insurance Segment
 Bajaj Allianz General Insurance Co. Ltd.
Division of Business on the basis of Zones
The Jammu & Kashmir Bank has been divided into 11 Zones which are
presented below:

North
North
Zone
Zone

Central
Kashmir Central
Jammu
Zone
Division Zone
Division

South West
Zone Zone

17
Corporate Headquarters:
The Corporate Headquarters , registered office of the Bank is
located at Srinagar and is headed by Chairman and Chief Executive
officer (CEO), who is appointed by the J&K Government for a
period of 3 to 5 years. General l y, the Chairman is selected among
reputed Economists, Bankers or/and the Administrators of the State.
The Chairman is guided by the Board of Directors of the bank.
Board Of Directors:
Currentl y there are 8 members on the Boar d of Directors in
the bank, excluding Chief Executive Officer. The Board sits
more than a dozen times in a year to review the business
activities of the bank. It also plans and regulates the future
activities of the bank through policy decisions and administrative
guidelines. All the important decisions of the bank have to be
endorsed by the Board of Directors before their implementation.
Following are the Names of Current Board of D irectors of the Bank
1. Mushtaq Ahmad(CEO)
2. SudhanshuPandey, IAS
3. Arnab Roy
4. Abdul Majid Mir
5. M. I. Shahdad
6. Prof. Nisar Ali
7. NihalGarware

18
 8. A. M. Matto
9. Rakesh Kumar Gupta
VISION
“To catal yze economic transformation and capitalize on
growth.”Our vision is to engender and catal yze economic transformation
of Jammu and Kashmir and capitalize from the growth induced financial
prosperit y thus engineered. The Bank aspires to make Jammu and Kashmir
the most prosperous state in the country, by helping create a new fin ancial
architecture for the J&K econom y, at the center of which will be the J&K
Bank.
MISSION
Our mission is two -fold: To provide the people of J&K international
qualit y financial service and solutions and to be a super -specialist bank in
the rest of the c ountry. The two together will make us the most profitable
Bank in the country.

FUTURE MISSION
JK Bank has traversed a long way from the day one with the solitary
aim of ‘social benefit’ and substantial progress has already been made
towards this end.
Computerization and up gradation of technologies, rationalization
of area wise branch structure, staffing, development of human resources
and strengthening of corporate management studies are issues which Bank
will address and implement in the coming years . At the same time the
emphasis will shift to greater self -regulation through adherence to
prudential norms, corporate governance and strengthening of internal
supervision and audit system as per guidelines of RBI. Further shift will
be on re-orientation and retraining of staff in tune with the changes in the
operating environment; the need to widen the scope and range of products

19
and services and above all an improvement in the delivery system and
customer service levels. However, it will remain Bank’s endeavour to
reduce the non-performing loans both in percentage as well as in absolute
terms.
CORPORATE SOCIAL RESPONSIBILITY
The Corporate Social Responsibilit y (CSR) of the J&K Bank seeks
to recognize obligations towards societ y and aims to integrate the CSR
ideals into its mission for optimizing both business and social
performance. It stresses on promoting work life balance, give attention to
social and environmental concerns and host of factors that facilitate
business pursuits and accomplishment of ec onomic goals. The CSR is not
just recognized as promulgating the Bank's own values and principles of
philanthropy but also the values and principles of all those who have a
stake in it or are affected by its operations. By supporting social cause
aligned to the mission the CSR strategy differentiates the Bank's brand
and enhances its reputation. The Bank manages social issues in the same
manner as any other strategic business issues
The Bank besides playing its role in economic development of the State
and country contributes significantl y towards the social cause. The Bank
has established its credentials for the poor and needy by donating
generousl y for various philanthropic activities aimed at ameliorating their
sufferings. Be it victims of natural calamit y, like fire, flood, snowstorm
or tsunami and disabled or patients with serious ailment who lack reliable
means of survival, the bank has been all through supporting them. The one
and a half decades long turmoil in the State of J&K has added to the
agonies of people with hundreds of children losing their parents to fend
for themselves in this harsh world. The Bank realizing its responsibilit y
of saving the life/ future of these blooming children, adopt several of
them by providing financial support either t hrough various orphanages

20
where they are sheltered or directl y to the orphans by bearing their
educational or other expenditure. The Bank would continue to provide
study scholarships to the poor and needy students including students from
far-flung areas, w ho without such support would have been school
dropouts. The Bank shall continue donations for the development of
infrastructure (computers, books, TV's, prosthetic support etc) to various
NGOs, societies, trusts, institutions, etc. involved in socio -economic
development of the societ y. The physicall y challenged persons belonging
to sociall y and economicall y deprived classes especiall y children shall be
helped by acquiring prosthetic support by meeting partl y or full y cost of
surgery with pre and post medic ation.
Heritage preservation is an important responsibilit y of every
conscious individual, institution or agency. The thrust areas to assist in
this respect for the Bank will be preservation of historical/religious
monuments, development of tourist sites, national properties, museums,
libraries, protection of environment/ecology etc. and sponsoring seminars
and awareness camps, art and literary works, 3rd cultural activities, social
service camps, college or universit y students clubs etc.
Apart from above activities the Bank has been
constructing/developing the public utility service like public parks, bus
stands, drinking water posts, lavatories, conveniences, rain shelters. In
addition to this, the bank organizes relief camps, service camps, night
shelters, health resorts, health clinics, disaster & calamit y management
centers, rehabilitation centers etc.

21
INTRODUCTION TO
TOPIC

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 CUSTOMER SATISFACTION
Customer satisfaction , a term frequently used in marketing , is a
measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals. In a survey of nearl y 200 senior marketing
managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses.
It is seen as a key performance indicator within business and is often part
of a Balanced Scorecard . In a competitive marketplace where businesses
compete for customers, customer satisfaction is seen as a key
differentiator and increasingl y has become a key element of business
strategy.
"Within organizations, customer satisfaction ratings can have
powerful effects. They focus employees on the importance of fulfilling
customers’ expectations. Furthermore, when these ratings dip, they warn
of problems that can affect sales and profitabilit y. . . . These metrics
quantify an important dynamic. When a brand has loya l customers, it
gains positive word -of-mouth marketing, which is both free and highl y
effective.
Therefore, it is essential for businesses to effectivel y manage
customer satisfaction. To be able do this, firms need reliable and
representative measures of satisfaction.
"In researching satisfaction, firms generall y ask customers whether
their product or service has met or exceeded expectations. Thus,
expectations are a key factor behind satisfaction. When customers have
high expectations and the realit y fall s short, they will be disappointed and
will likel y rate their experience as less than satisfying. For this reason, a

23
luxury resort, for example, might receive a lower satisfaction rating than
a budget motel—even though its facilities and service would be d eemed
superior in 'absolute' terms
The importance of customer satisfaction diminishes when a firm has
increased bargaining power. For example, cell phone plan providers, such
as AT&T and Verizon, participate in an industry that is an oligopol y,
where onl y a few suppliers of a certain product or service exist. As such,
many cell phone plan contracts have a lot of fine print with provisions
that they would never get away if there were, say, a hundred cell phone
plan providers, because customer satisfaction would be way too low, and
customers would easil y have the option of leaving for a better contract
offer. There is a substantial body of empirical literature that establishes
the benefits of customer satisfaction for firms Purpose

PURPOSE
"Customer satisfaction provides a leading indicator of consumer
purchase intentions and loyalt y." "Customer satisfaction data are among
the most frequentl y collected indicators of market perceptions. Their
principal use is twofold:"
1. "Within organizations, the collection, analysis and dissemination of
these data send a message about the importance of tending to
customers and ensuring that they have a positive experience with
the company’s goods and services."
2. "Although sales or market share can indicate how well a firm is
performing currently, satisfaction is perhaps the best indicator of
how likel y it is that the firm’s customers will make further
purchases in the future. Much research has focused on the
relationship between customer satisfaction and retent ion. Studies
indicate that the ramifications of satisfaction are most strongl y

24
 realized at the extremes." On a five -point scale, "individuals who
rate their satisfaction level as '5' are likel y to become return
customers and might even evangelize for the f irm. (A second
important metric related to satisfaction is willingness to
recommend. This metric is defined as "The percentage of surveyed
customers who indicate that they would recommend a brand to
friends." When a customer is satisfied with a product, he or she
might recommend it to friends, relatives and colleagues. This can be
a powerful marketing advantage.) "Individuals who rate their
satisfaction level as '1,' by contrast, are unlikel y to return. Further,
they can hurt the firm by making negative com ments about it to
prospective customers. Willingness to recommend is a key metric
relating to customer satisfaction."

CONSTRUCTION
Organizations need to re tain existing customers while targeting
non-customers. Measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services
to the marketplace.
"Customer satisfaction is measured at the individu al level, but it is
almost always reported at an aggregate level. It can be, and often is,
measured along various dimensions. A hotel, for example, might ask
customers to rate their experience with its front desk and check -in
service, with the room, with t he amenities in the room, with the
restaurants, and so on. Additionall y, in a holistic sense, the hotel might
ask about overall satisfaction 'with your stay. ”
As research on consumption experiences grows, evidence suggests
that consumers purchase goods and services for a combination of two
types of benefits: hedonic and utilitarian. Hedonic benefits are associated

25
with the sensory and experiential attributes of the product. Utilitarian
benefits of a product are associated with the more instrumental and
functional attributes of the product (Batra and Athola 1990)
Customer satisfaction is an ambiguous and abstract concept and the
actual manifestation of the state of satisfaction will vary from person to
person and product/service to product/service. The state of satisfaction
depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate.
The level of satisfaction can also vary depending on other options the
customer may have and oth er products against which the customer can
compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L)
between 1985 and 1988 provides the basis for the measurement of
customer satisfaction with a service by using the gap b etween the
customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which
is objective and quantitative in nature. Work done by Cronin and Taylor
propose the "confirmation/dis confirmation" theory of combining the "gap"
described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation of performance) into a single measurement of
performance according to expectation.

"Customer satisfaction data c an also be collected on a 10 -point

scale.""Regardless of the scale used, the objective is to measure
customers’ perceived satisfaction with their experience of a firm’s
offerings." It is essential for firms to effectivel y manage customer
satisfaction. To b e able do this, we need accurate measurement of
satisfaction.

26
 Good qualit y measures need to have high satisfaction loadings,
good reliabilit y, and low error variances. In an empirical study comparing
commonl y used satisfaction measures it was found that tw o multi -item
semantic differential scales performed best across both hedonic and
utilitarian service consumption contexts. According to studies by Wirtz&
Lee (2003), they identified a six -item 7-point semantic differential scale
(e.g., Oliver and Swan 1983), which is a six -item 7-point bipolar scale,
that consistentl y performed best across both hedonic and uti litarian
services. It loaded most highl y on satisfaction, had the highest item
reliabilit y, and had by far the lowest error variance across both studies. In
the study, the six items asked respondents’ evaluation of their most recent
experience with ATM services and ice cream restaurant, along seven
points within these six items: “ please me to displeased me”, “contented
with to disgusted with”, “very satisfied with to very dissatisfied with ”,
“did a good job for me to did a poor job for me ”, “wise choice to poor
choice” and “happy with to unhappy with ”.
A semantic differential (4 items) scale (e.g., Eroglu and Machleit
1990) [ 9 ] , which is a four -item 7-point bipolar scale, was the second best
performing measure, which was again consistent across bo th contexts. In
the study, respondents were asked to evaluate their experience with both
products, along seven points within these four items: “ satisfied to
dissatisfied ”, “favorable to unfavorable”, “pleasant to unpleasant ” and “I
like it very much to I didn’t like it at all ”.
The third best scale was single -item percentage measure, a one -item
7-point bipolar scale (e.g., Westbrook 1980) [ 1 0 ] . Again, the respondents
were asked to evaluate their experience on both ATM services and ice
cream restaurants, along seven points within “ delighted to terrible”.
It seems that dependent on a trade -off between length of the
questionnaire and qualit y of satisfaction measure, these scales seem to be

27
good options for measuring customer satisfaction in academic and applied
studies research alike. All other measures test ed consistently performed
worse than the top three measures, and/or their performance varied
significantl y across the two service contexts in their study. These results
suggest that more careful pretesting would be prudent should these
measures be used.
Finall y, all measures captured both affective and cognitive aspects
of satisfaction, independent of their scale anchors. [ 8 ] Affective measures
capture a consumer’s attitude (liking/disliking) towards a product, which
can result from any product information or experience. On the other hand,
cognitive element is defined as an appraisal or conclusion on how the
product’s performance compared against expectations (or exceeded or fell
short of expectations), was useful (or not useful), fit the situation (or did
not fit), exceeded the requirements of the situation (or did not exceed).
Customer satisfaction research is that area of marketing research
which focuses on customers' perceptions with their shopping or purchase
experience.Many firms are interested in understanding what their
customers thought about their shopping or purchase experience, because
finding new customers is generall y more costl y and difficult than
servicing existing or repeat customers.Many people are famili ar with
"business to customer" ( B2C) or retail -level research, but there are also
many "business to business" ( B2B) or wholesale-level projects
commissioned as well.

28
POLICY OF J&K BANK
TOWARDS CUSTOMER
SATISFACTION

29
 POLICY OF J&K BANK TOWARDS CUSTOMER SATISFACTION

‘Know Your Customer’ Guidelines

Anti Money Laundering Standards

1. Know Your Customer Standards

a) The objective of the KYC guidelines is to prevent banks from being
used, intentionall y or unintentionall y, by criminal elements for mone y
laundering activities. KYC procedures enable banks to know/understand
their customers and their financial dealings be tter which in turn help them
manage their risks prudentl y. The revised KYC policy of the bank
incorporates the following
four elements:
i. Customer Acceptance Policy (CAP)
ii. Customer Identification Procedures (CIP)
iii. Monitoring of Transactions; and
iv. Risk Management
b) A customer for the purpose of KYC Policy is defined as:
-- A person or entity that maintains an account and/or has a business
relationship with the bank
-- One on whose behalf the account is maintained (i.e., the beneficial
owner)
-- Beneficiaries of transactions conducted by professional intermediaries,
such as Stock Brokers, Chartered Accountants, Solicitors, etc as permitted
under the law

-- Any person or entit y connected with a financial transaction which can

pose significantreputational or other risks to the bank, say, a wire transfer
or issue of high value demand draft as single transaction.

30
2. Customer Acceptance Policy (CAP)
a) The following Customer Acceptance Policy indicating the criteria for
acceptance of customersshallb e followed in the bank. The branches shall
accept customer strictl y in accordance with the said
policy:

i. No account shall be opened in anonymous or fictitious/benami

name(s)
ii. Parameters of risk perception shall be clearl y defined in terms
of the nature of business activit y, location of customer and his clients,
mode of payments, volume of turnover, social and financial status etc., to
enable categorization of customers into low, medium
and high risk called Level I, Level II and Level III respectiv el y;
Customers requiring very high level of monitoring e.g., Politicall y
Exposed Persons (PEPs) may be categorized as Level IV.
iii. The branches shall collect documents and other information
from the customer depending on perceived risk and keeping in mind the
requirements of AML Act, 2002 and guidelines issued by RBI from time
to time
iv. The branches shall close an existing account or shall not open a
new account where it is unable to appl y appropriate customer due
diligence measures i.e., branch is unable to verify the identit y and/or
obtain documents required as per the risk categorization due to non
cooperation of the customer or non reliabilit y of data/information
furnished to the branch. The branches shall, however, ensure that these
measures do not lead to the harassment of the customer. However, in case
the account is required to be closed on this ground, the branches shall do
so onl y after permission of J/DGM (I&V) of their concerned Zonal
Offices is obtained. Further, the customer should be gi ven a prior notice

31
of at least 20 days wherein reasons for closure of his account should also
be mentioned.
v. The Updated Manual of Instructions (Chapter 2 Volume I)
provides detailed guidelines as to the mode of operations of different
types of accounts and the circumstances in which acustomer is permitted
to act on behalf of another person/entity. The branches are advised to
strictl y follow these instructions.
vi. The branches shall make necessary checks before opening a new
account so as to ensure tha t the identit y of the customer does not match
with any person with known criminal background or with banned entities
such as individual terrorists or terrorist organizations, etc. RBI has been
circulating lists of terrorist entities notified by the Governm ent of India
so that banks exercise caution against any transaction detected with such
entities. The branches shall invariabl y consult such lists to ensure that
prospective person/s or organizations desirous to establish relationship
with the bank are not in any way involved in any unlawful activit y and
that they do not appear in such lists

b) The branches shall prepare a profile for each new customer based on
risk categorization. The bank has devised a revised Composite Account
Opening Form for recordin g and maintaining theprofile of each new
customer. Revised form is separate for Individuals, Partnership Firms,
Joint Customers, Corporates and other legal entities or special accounts
e.g., account in the name ofbrand names, domain names, etc. The nature
and extent of due diligence shall depend on the risk perceived by the
branch. The branches should continue to follow strictl y the instructions
issued by the bank regarding secrecy of customer information. The
branches should bear in mind that the adoption of customer acceptance
policy and its implementation does not become toorestrictive and should

32
not result in denial of banking services to general public, especiall y
tothose, who are financiall y or sociall y disadvantaged.

c) The risk to the customer shall be assigned on the following basis:

i. Low Risk (Level I):
Individuals (other than High Net Worth) and entities whose identities and
sources of wealth can be easil y identified and transactions in whose
accounts by and large conform to the known profile ma y be categorized as
low risk. The illustrative examples of low risk customers could be
salaried employees whose salary structures are well defined, people
belonging to lower economic strata of the societ y whose accounts show
small balances and low turnover , Government Departments and
Government owned companies, regulators and statutory bodies etc. In
such cases, onl y the basic requirements of verifying the identit y and
location of the customer shall be met.
ii. Medium Risk (Level II):
Customers that are lik el y to pose a higher than average risk to the bank
may be categorized as medium or high risk depending on customer’s
background, nature and location of activity, country
of origin, sources of funds and his client profile etc; such as:

a) Persons in business/ industry or trading activit y where the area of

his residence or place of business has a scope or history of unlawful
trading/business activit y.

b) Where the client profile of the person/s opening the account,

according to the perception of the branch is uncertain and/or
doubtful/dubious.
iii. High Risk (Level III):

33
The branches may appl y enhanced due diligence measures based on the
risk assessment, thereby requiring intensive ‘due diligence’ for higher
risk customers, especiall y those for whom the sources of funds are not
clear. The examples of customers requiring higher due diligence may
include
a) Non Resident Customers,
b) High Net worth individua ls
c) Trusts, charities, NGOs and organizations receiving donations,
d) Companies having close famil y shareholding or beneficial
ownership
e) Firms with ‘sleeping partners’
f) Politicall y Exposed Persons (PEPs) of foreign origin
g) Non-face to face customers, and
h) Those with dubious reputation as per public information available,
etc.
The persons requiring very high level of monitoring may be
categorized as Level IV.
3. Customer Identification Procedure (CIP)
a) Customer identification means identifying the person and verifying
his/her identit y by using reliable, independent source documents,
data or information. The branches need to obtain sufficient
information necessary to establish, to their satisfaction , the
identit y of each new customer, whether regular or occasional, and
the purpose of the intended nature of banking relationship. Being
satisfied means that the branch is able to satisfy the competent
authorities that due diligence was observed based on the risk profile
of the customer in compliance of the extant guidelines in place.
Besides risk perception, the nature of information/documents
requiredwould also depend on the t ype of customer (individual,

34
 corporate, etc). For customers that are natural persons, the branches
shall obtain sufficient identification data to verify the identit y of
thecustomer, his address/location, and also his recent photograph.
For customers that are legal persons or entities, the branches shall
(i) verify the legal status of the legal person/entit y through proper
and relevant documents (ii) verify that any person purporting to act
on behalf of the legal person/entit y is so authorized and identify
and verify the identity of that person (iii) understand the ownership
and control structure of the custom er and determine who are the
natural persons who ultimatel y control the legal person. Customer
Identification requirements in respect of a few t ypical cases,
especiall y, legal persons requiring an extra element of caution are
given in Annexure I for the gu idance of branches.
b) If the branch decides to accept such accounts in terms of the
Customer Acceptance Policy, the branch shall take reasonable
measures to identify the beneficial owner(s) and verify his/her/their
identit y in a manner so that it is satisfied that it knows who the
beneficial owner(s) is/are. An indicative list of the nature and t ype
of documents/information that may be relied upon for customer
identification is given in Annexure II.
4. Monitoring of Transactions
a) Continuous monitoring is an essential ingredient of effective KYC
procedures and the extent of monitoring should be according to the
risk sensitivit y of the account. Branches shall pay special attention
to all complex, unusuall y large transactions and all unusual patterns
which have no apparent economic or visible lawful purpose.
Transactions that involve large amount of cash inconsistent with the
size of the balance maintained may indicate that the funds are being

35
 ‘washed’ through the account. High risk accounts shall be su bjected
to intensive monitoring.
c) The branches shall continue to follow strictl y the instructions
regarding cash transactions issued vide our Circular No.326
reference No. BDS&P/MRC/2003 -1980 dated 05.03.2003, wherein a
threshold limit of Rs.5 lakh for cash transactions and Rs.10 lakh for
fund transfer transactions was set for reporting details thereof.
However, as per revised KYC policies and procedures, the branches
are now required to maintain proper record of all cash transactions
(both deposits and with drawals) of Rs.10 lakh and above only. The
details of cash transactions involving deposits and withdrawals of
Rs.10 lakh and above are to be furnished to the concerned Joint
General Manager/Deput y General Manager (I&V), Zonal Offices on
fortnightl y basis v iz., as on every 15 t h and last working day of the
month containing full particulars such as name of the account
holder, account number, date of opening of account and other
details as mentioned in Circular No.74/95 reference No.
BDS&P/878/95/460 dated 25.08.1995 and reiterated vide Circular
No.168 reference No. PDA/CPPD -01/02-18 dated 27.09.2002 and
Circular No.326 reference No.BDS&P/MRC/2003 - 1980 dated
05.03.2003. These statements have to reach the concerned
JGM/DGM (I&V), Zonal Office within seven days from the
stipulated date of the fortnightl y statement .
.
d) The I&V Department, Corporate Headquarters shall ensure
adherence to the KYC policies and procedures. Concurrent/Internal
Auditors shall specificall y check and verify the application of KYC
procedures at the branches and comment on the lapses if any
observed in this regard. The compliance in this regard shall be put

36
 up before the Audit Committee of the Board on quarterl y intervals.
All staff members shall be provided training on Anti Money
Laundering as conveyed vide Circu lar No.326 reference No.
BDS&P/MRC/2003-1980 dated 05.03.2003. The focus of training
shall be different for frontline staff, compliance staff and staff
dealing with new customers.
5. Risk Management.

a) The bank’s KYC policies and procedures covers manageme nt

oversight, systems and controls, segregation of duties, training and
other related matters. For ensuring effective implementation of the
bank’s KYC polices and procedures, the Branch Managers shall
explicitl y allocate responsibilities within the branch. The Branch
Manager shall authorize the opening of all new accounts. However,
in case of branches with business of Rs.50 crore or above, where
there is usuall y another senior Officer next below the Branch
Manager heading the Accounts Department may authori ze the
opening of new accounts. The branches shall prepare risk profiles
of all their existing and new customers and appl y Anti Money
Laundering measures keeping in view the risks involved in a
transaction, account or banking/business relationship.
b) Training encompassing applicable money laundering laws and
recent trends in money laundering activit y as well as the bank’s
policies and procedures to combat money laundering shall be
provided to all the staff members of the bank periodicall y in phases.
The HRD Department, Corporate Headquarters shall determine the
frequency of training and identify personnel to be trained at each
branch.

37
 c) The General Manager, Planning & Accounts Department shall be
empowered to prescribe threshold limits for a particular group of
accounts and the branches shall pay particular attention to the
transactions which exceed these limits. The threshold limits sha ll be
reviewed annuall y and changes, if any, conveyed to branches for
monitoring.
d) The bank’s internal audit and compliance functions have an
important role in evaluating and ensuring adherence to the KYC
policies and procedures. The compliance function sh all provide an
independent evaluation of the bank’s own polices and procedures,
including legal and regulatory requirements. The bank shall ensure
that the audit machinery of the bank is staffed adequatel y with
individuals who are well versed in such polic ies and procedures.
Concurrent/ Internal Auditors shall specificall y check and verify the
application of KYC procedures at the branches and comment on the
lapses observed in this regard. The compliance in this regard shall
be put up before the Audit Committ ee of the Board on quarterl y
intervals.
6. Customer Education
Implementation of KYC procedures requires branches to
demand certain information from the customers that may be of
personal in nature or which have hitherto never been called for.
This can sometimes lead to a lot of questioning by the customer as
to the motive and purpose of collecting such information.
Therefore, the front desk staff needs to handle such situations
tactfull y while dealing with customers and educate the customer of
the objectives of the KYC program The branches shall also be
provided specific literature/pamphlets to educate customers in this
regard.

38
7. New Technologies
The KYC procedures shall invariabl y be applied to new
technologies including ‘JK Bank Global Access Debit Card’
products and/or ‘JK Bank Credit Card’ products, including Internet
banking/Mobile banking facilit y or such other product which may
be introduced by the bank in future that might favor anonymity, and
take measures, if needed to prevent their use in money l aundering
schemes. Branches should ensure that appropriate KYC procedures
are dul y applied before issuing the cards to the customers. It is also
desirable that if at any point of time bank appoints/engages agents
for marketing of these cards / products are also subjected to KYC
measures.
8. Appointment of Principal Officer
To ensure compliance, monitoring and report compliance of
Anti Money Laundering policy of the bank, Senior Executive
heading the I&V Department of the bank at Corporate Headquarters
shall act as Principal Officer. He shall be responsible to monitor
and report transactions and share information on Anti Money
Laundering as required under the law. The Principal Officer shall
maintain close liaison with enforcement agencies, banks and any
other institutions that are involved in the fight against money
laundering and combating financing of terrorism. The Principal
Officer shall furnish a compliance certificate to the Board on
quarterl y basis certifying that Revised Anti Money laundering
Policy is being strictly followed by all the branches of the bank.

Annexure- I

39
 CONSUMER
IDENTIFICATION
REQUIREMENT

40
Customer Identification Requirements – Indicative Guidelines

Accounts of companies and firms

Branches need to be vigilant against business entities being used by
individuals as a ‘front’ for maintaining accounts with banks. Branches
should examine the control structure of the entit y, determine the source of
funds and identify the natural persons who have a controlling interest and
who comprise the management. These requirements may be moderated
according to the risk perception e.g. in the case of a public company it
will not be necessary to identify all the shareholders. But at least
promoters, directors and its executives need to be identified adequatel y.

Client accounts opened by professional intermediaries

When the branch has knowledge or reason to believe that the client
account opened by a professional intermediary is on behalf of a single
client, that client must be identified. Branches may hold 'pooled' accounts
managed by professional intermediaries on behalf of entities like mutual
funds, pension funds or other t ypes of funds. Branches should also
maintain 'pooled' accounts managed by lawyers/chartered accountants or
stockbrokers for funds held 'on deposit' or 'in escrow' for a range of
clients. Where funds held by theintermediaries are not co -mingled at the
branch and there are 'sub -accounts', each of them attributable to a
beneficial owner, all the beneficial owners must be identified. Where such
accounts are co -mingled at the branch, the branch should still look
through to the beneficial owners. Where the bank rel y on the 'customer
due diligence' (CDD) done by an intermediary, it shall satisfy itself that
the intermediary is regulated and supervised and has adequate systems in
place to compl y with the KYC requirements.

41
Accounts of Politically Exposed Persons(PEPs) resident outside India
Politicall y exposed persons are individuals who are or have been
entrusted with prominen t public functions in a foreign country, e.g.,
Heads of States or of Governments, senior politicians, senior
government/judicial/military officers, senior executives of state -owned
corporations, important political part y officials, etc. Branches should
gather sufficient information on any person/customer of this category
intending to establish a relationship and check all the information
available on the person in the public domain. Branches should verify the
identify of the person and seek information abou t the sources of funds
before accepting the PEP as a customer. The branches should seek prior
approval of their concerned Zonal Heads for opening an account in the
name of PEP.

Accounts of non -face-to-face customers

With the introduction of telephone and electronic banking,
increasingl y accounts are being opened by banks for customers without
the need for the customer to visit the bank branch. Inthe case of non -face-
to-face customers, apart from appl ying the usual customer identification
procedures, there must be specific and adequate procedures to mitigate the
higher risk involved. Certification of all the documents presented shall be
insisted upon and, if necessary, additional documents may be called for.
In such cases, branches may also require the firs t payment to be effected
through the customer's account if any with another bank which, inturn,
adheres to similar KYC standards. In the case of cross -border customers,
there is the additional difficult y of matching the customer with the
documentation and the branches might have to rel y on third part y
certification/introduction. In such cases, it must be ensured that the third

42
part y is a regulated and supervised entity and has adequate KYC systems
in place.

Correspondent Banking

a) Correspondent banking is the provision of banking services by one

bank (the 'correspondent bank') to another bank (the 'respondent
bank'). These services may include cash/funds management,
international wire transfers, drawing arrangements for demand
drafts and mail transfers, payable-through-accounts, cheques
clearing, etc. The bank while entering into any kind of
correspondent banking arrangement shall gather sufficient
information to understand full y the nature of the business of the
correspondent/respondent bank. Information on the other bank’s
management, major business activities, level of AML/CFT
compliance, purpose of opening the account, identit y of any third
part y entities that will use the correspondent banking services, and
regulatory/supervisory framework in the corresp ondent's
respondent’s country shall be of special relevance. Similarly, the
bank shall also ascertain from publicl y available information
whether the other bank has been subject to any money laundering or
terrorist financing investigation or regulatory act ion. Such
relationships shall be established onl y with the prior approval of the
Board. The Board may in the alternative delegate powers in this
regard to a committee headed by the Chairman/CEO of the bank and
lay down clear parameters for approving such r elationships.
Proposals approved by the Committee should invariabl y be put up to
the Board at its next meeting for post facto approval. The
responsibilities of each bank with whom correspondent banking

43
 relationship is established should be clearl y document ed. In the
case of payable-through- accounts, the correspondent bank should
be satisfied that the respondent bank has verified the identit y of the
customers having direct access to the accounts and is undertaking
ongoing 'due diligence' on them. The bank s hall also ensure that the
respondent bank is able to provide the relevant customer
identification data immediatel y on request.

b) Bank shall not enter into a correspondent relationship with a 'shell

bank'. A Shell bank is a bank which is incorporated in a c ountry
where it has no physical presence and is unaffiliated to any
regulated financial group. “Shell banks” are not permitted to
operate in India. Bank shall also guard against establishing
relationships with respondent foreign financial institutions that
permit their accounts to be used by “shell banks”. The Bank shall
move cautiousl y while continuing relationships with respondent
banks located in countries with poor KYC standards and countries
identified as 'non-cooperative' in the fight against money la undering
policies and procedures in place and apply enhanced 'due diligence'
procedures for transactions carried out through the correspondent
accounts.

44
OBJECTIVES OF THE
STUDY

45
OBJECTIVE OF THE STUDY:
The study of consumers helps firms and organizations improve their
marketing strategies by understanding issues such as how :

1) To determine the present P osition and satisfaction of customer in j & k

bank.
2) To determine the market share of j&k bank.
3) Responses of customer for the services provided by bank .
4) To know about the process of service providing is satisfactory for
customers.

46
 RESEARCH
METHODOLOGY

47
INTRODUCTION
METHODOLOGY is the systematic, theoretical anal ysis of the methods
applied to the field of the study. It comprises the theoretical anal ysis of
the body of methods and principles associated with a branch of
knowledge. Typically, it encompasses concepts such as paradigm,
theoretical model, phases and quantitative or qualitative techniques.
Success or failure of any project entirel y depends upon methodology
adopted by the researcher. Methodologies basicall y use different methods
of research systematicall y and scientificall y. Objective of the study, its
research design, its sampling design, coding and editing methods,
presentations and anal yses of the data together with interpretation of the
data are essential part of research methodology.

A methodology does not set out to provide solution -it is, therefore, not
the same thing as a method. Instead, it offers theoretical underpinning
which method, set of methods or so called “best practice” can be applied
to specific case, for example, to calculate a specific results.
It has been defined also as follows:

1. “The anal ysis of the principles of methods, rules, and postulates

employed by a discipline”.
2. “The systematic study of methods that are , can be, or have been
applied within a discipline”.
3. “The study or descrip tion of methods”.

“The goal of the research process is to produce new knowledge, which

takes three main forms (although, as previously discussed, the
boundaries between them may be obscure.) ”

48
Research can also fall into two distinct types:

Primary research (collection of data that does not already exist) in this type of
research that data is collected by the researcher through various methods. Like survey,
questionnaire, direct observation etc.
Secondary research (summary, collected and/or synthesis of existing research) in
this type of research the data is already available on various sources, a researcher can
easily collect all the related data from these source, e .g magazines, books, newspapers,
syndicated agencies etc.

In social science and, later in other disciplines, the following two methods can be applied,
depending on the properties of the subject matter and on the objectives of the research:
Qualitative research : (understanding of human behavior and the reasons that govern
such behavior )
Quantitative research : (systematic empirical investigation of quantitative properties
and phenomena and their relationships)

RESEARCH DESIGN
Type of research:-The type of research was descriptive.
Nature of research:-The research was qualitative in nature.
Type of questionnaire:-The type of questionnaire during survey was structured
questionnaire.
Form of questions:-close ended
Type of analysis:-The type of analysis carried out during the survey was statistical
analysis.
SOURCES OF INFORMATION
Secondary sources :- Referred to various books on marketing, business
magazines & bank website.

49
Primary sources:- The primary sources of collecting data for research was
through questionnaire.

SAMPLE DESIGN:
 Population: the population comprised of permanent residents of
Jammu division
 Sample element: sample element were consumers who use service of j
&K bank
 Sample size: the size of sample for questionnaire was 50
 Sample extent: the geographical extent of sample was
 DISTRICT KATHUA
 Sample duration : The sample duration was 45 days
 Sample procedure: Sample procedure selected was random sampling

50
DATA ANALYSIS

51
 DATA INTERPRETATIONAND ANALYSIS
Personal detail
Classes No. of respondents
(age)
18-24 4
24-35 19
35-45 16
45-55 8
55-65 3

20
No of Respondents
18
16
14
12
10
8
6 No of Respondents

4
2
0
18-24 24-35 35-45 45-55 55-65

INTERPRETATION
Above diagram consist five classes of different age groups. Here customer 19 customer
bilges to 25-35 age groups, 16 customers fall in the age grou35-45 years Other 8
customer comes are in the class 45-55 years the age group of 18-24 consists four
customer reaming customer is in age group 55-65 years. Here majority of customer
belong to the group 25-35 years.

52
Q1. Do you think is it essential to have bank account?

Yes no Total
No. of Respondents 45 5 50
% of Respondents 90 10 100

50
45
45

40

35

30

25 yes
no
20

15

10
5
5

0
No of respondents

INTERPRETATION
To this question 45 customers reported YES and 5 consumers reported NO

53
Q2.how will you rate the services given by j &k bank?
No of % of
Respondents Respondents
Poor - -
Average 16 32
Good 28 56
Excellent 6 12
TOTAL 50 100

60 56

50

40
32
30 28 No of REspondents
% of Respondents

20 16
12
10 6

0 0
0
poor Average Good Excellent

INTERPRETATION
Out of 50 respondents 57% have ratted J&K bank service as good and 32%
have ratted as average. And remaining 12% have ratted excellent.

54
Q3 customers dealing with j&k bank

To ascertain the market share of J&K Bank, I approached 50 respondents

and asked them with which bank they deal at present. The answer
provided the following information.

Dealing with bank 92%

Not dealing with bank 8%

% of customers
100
90
80
70
60
50
% of customers
40
30
20
10
0
customers dealing with j&k bank customers not dealing with j&k bank

INTERPRETATION: -
The above figure shows that the j&k bank is the major player in the
valley of Jammu and Kashmir .it clearly shows that more than 90%
customers have an account in j&k bank.

55
Q4 how much time it takes to open a new account in j&k bank
Few hours 70%
One day 26%
One weak 3%

One month 1%

% of respondents
80

70

60

50

40
% of respondents
30

20

10

0
Few hours One day Oneweek One month

INTERPRETATION:-

The above figure clearly shows that the majority of respondents says it takes
few hours and 26% says it takes one day .

56
Q5. Formalities involved for opening new accounts are
complicated 14%
Normal 24%
Simple 60%
Too much complicated 2%

&age of Respondents
70

60

50

40

30 &age of Respondents

20

10

0
Complicated Normal Simple Too much
complicated

INTERPRETATION:-
Its clear by the above chart that 60% says formalities are simple 24% says its normal 14%
are in favor of complicated and only 2% says its too much complicated

57
Q6 how much satisfied you are with debit and credit cards of the bank?
Very satisfied 30%
Satisfied 60%
Average satisfied 16%
Not satisfied 4%

%age of respondents
60

50

40

30
%age of respondents

20

10

0
Very satisfied Satisfied Average satisfied Not satisfied

INTERPRETATION:-
From the above chart its clear that majority of respondents are satisfied with j &k bank
Debit and Credit cards.

58
Q7 reasons for availing j&k bank services

More flexible 30%

Simple procedure 36%
More number of branches 20%
Easy access 14%

no of percentage
40

35

30

25

20
no of percentage
15

10

0
More flexibility Simplistic More no of Easy Acces
procedure branches

INTERPRETATION: -
The figure depicts that many of the Respondents are availing j &k bank
services because of more flexibilit y and simplistic procedure.

59
Q8 according to customers the bank should choose the
following media to inform the customers

Television 40%
Radio 24.45%
Print media 21.33%

Through local branches 8%

Internet 4.45%
Any other 1.77%

45

40

35

30

25

20

15

10

0
T.V Radio Print media Through local internet Any other
branches

INTERPRETATION:-
The above Data shows that 40% customers prefers that the bank should
choose T.V to inform the customers about the services,24.45% prefer
radio,21.33% prefer print media,8%prefer through local branches,4.45%
prefer internet and 1.77%want any other.

60
 Q9 Distribution of Various customer services

Savings account holders 42.27%

Fixed account holders 6.6%
Current account holders 27.79%
Loan holders 3.12%
Debit card holders 7.99%
Credit card holders 5.9%
Insurance policies 2.78%
Cash credit 3.12%

%age of respondents
45
40
35
30
25
20
15
%age of respondents
10
5
0

INTERPFRETATION:-
The above figure shows that majorit y of customers are using saving
account and current account services.

61
Q10 Satisfaction Level of Customers

To know the percentage of satisfied and dissatisfied customer and the

level of satisfaction and dissatisfaction among them. The responses were
as follows:-

Satisfied 82.55%
Dissatisfied 17.75%

percentage of respondents
90

80

70

60

50

40 percentage of respondents

30

20

10

0
Satisfied Dissatisfied

INTERPRETATION: -
The majorit y of the respondents are satisfied, but service delivery should
be done customer friendl y the remaining 17.75%

62
Q11 Customers opinion about the cooperation and help by
employees in giving information about services of the Bank

In order to see customer about the cooperation and help on employees,

I have consulted respondents and their response were as following:

Cooperative and helping 73.65%

Non cooperative and rude 26.35%

%age of Respondents
80

70

60

50

40
%age of Respondents
30

20

10

0
Cooperative and helping Non coperative and Rude

INTERPRETATION:-

The above chart shows that majorit y of customers are satisfied with the
cooperation and help provided by the employees of the j&k bank.

63
Q12 Do have any suggestion for J&K Bank?
Yes 78%
No 22%

120

100

80

YES
60
NO
TOTAL
40

20

0
No of Respondents % of Respondents

INTERPRETATION:-
To this question 39 consumers reported YES and 11 consumers
reportedNO .

64
SWOT ANALYSIS OF
JAMMU & KASHMIR
BANK

65
SWOT ANALYSIS OF J&K BANK

SRENGTHS:

 Good reputation, excellent growth and customer loyalt y and trust.

 A listed company on BSE and NSE with four decades of
uninterrupted profitabilit y and dividend payments.
 Wide network of branches across the state and country
 World class banking services like Telebanking and excellent ATM
network
 Innovative in products and services supported in latest technology
 Best practices in corporate governments
WEAKNESS:

 Lesser branches in far areas of the J&K state

 Lesser promotions and advertisement of bank and its products
 Bank doesn’t have any branch outsides India to enter global market
OPPORTUNITIES:

 The bank can play proactive role in the development of J&K

econom y
 The bank can have tie ups with national and international
financial institutions to offer new and upgraded services and
products
 The bank enjoys very well customer loyalt y. It can diversify
its business so as not to lose the customers to the competing
rivals.
THREATS:

 High level of competition from the other national banks

particularl y outside j&k state

66
 Policies regarding interest rate have to be flexible to compete
with other banks in this stiff competition
 Technological changes in the banking sector on changing
rapidl y. The need of the hour is that the bank should have
innovation in the products and services and keep itself
updated with latest technologies.
 Customer friendl y services and products should be given
priorit y as other banks are posing stiff competition by
offering new customers tuned products and services to attract
customers of other banks.

67
FINDINGS

68
 FINDINGS
1) Majorit y of the population in the state are dealing with j&k bank
2) 82.26%of the customers are satisfied with the services provided by
the bank
3) Bank has covered vast area of state ,that is beneficial for
customers
4) Formalities for opening a new bank account are easy, about 60% of
customers agree with.
5) 37.30% of the customers are availing the services of bank because of
simple procedure
6) 42.7% of the customers Using are the bank for their savings
7) 30% of customers are very satisfied and 50% of customers are
satisfied with the debit and credit card services of the bank

69
LIMITATIONS &
SUGGESTIONS

70
Limitations Faced While Doing this Research

While doing this research I face certain problems which are mentioned a
below:

1. Respondents were not ready to answer my questionnaire due to gear

of interfering into the internal bank matter,

2. Respondents that we complaining about services were not ready to

give their identit y.

3. Operational on part of sample units to respond properl y to all the

question of questionnaire.

4. Reluctance on part of sample units to respond properl y to all the

questions of questionnaire.

5. Respondents were giving answer to the questions that were written

on the questionnaire, but efforts were made to get more and more
information about bank service from them.

71
Suggestions
In the light of the findings of the study the following are made f or
improvement of the customer service in J&K Bank:

1. Staff of the bank should be customer friendl y. Moreover there

should be a grievance cell at bank for the redressal of customer
complains.

2. Staff should be increased at most of the branches.

3. There should be more number of receipt and payment counter so that

the customers need not to wait for long time.

4. There should be no delay in servicing.

5. Money should be available after 4 Pm as well on working days.

6. Loans should be given after proper verification.

7. Promotional mix i.e the best combination of advertising, personal

selling, sales Promotion, electronic as well as print media should be
prepared and presented to sell the different services at very
important branch.

72
CONCLUSION

73
Conclusions

It is good to see that the J&K Bank has introduce giving all its major
service to the customer and has captured a marked share of around 93% in
the town which is very high in spite of its tough competitors like SBI,
State Cooperative bank, etc. The J&K Bank has succeed ed in satisfying its
majorit y of customers , however there are some areas of improvement, but
the staff is trying all the customers.

The J &K Bank should introduce a grievance cell for the redressed of
customers complaints and staff should be customer friendly. The J&K
bank should use a promotional mix prepared and presented. There should
be no delay in service and withdrawal of money should be available till 4
PM

74
REFRENCES

75
Reference

During the Completion of this project work I have taken reference from
various sources.

They are mentioned as below:

 Annual report of Jammu & Kashmir bank ltd.

 Magazines such as business India and Harvard

Business review (Dec. 2005)

 News paper such as Econo mic Times, Times of India and Greater
Kashmir.

 Yearl y Journals of Jammu & Kashmir bank Ltd.

 Websites of J&K Bank Ltd.

o www.j&kbank.net

o www.J&kbank.com

o www.jammuandkashmir.com

Various Management Books

1. Service marketing by Zeithmanl

2. Marketing Management of Philip Kotler.

3. Marketing research by NareshMalhotra.

76
ANNEXURE

77
QUESTIONNAIRE

1. Personal detail
Name:_____________________

2.Age
18-24 ___________25-35___________35 -45______________
45-55 ____________55 and above____________________

Phone No.

Email.

Office Address: - Residential Address: -

_________________ ________________
_________________ ________________
_________________ ________________
_________________ ________________

3. Do You Think Is It Essential To Ha ve Bank Account?

YES_________________ NO________________

4. How Will You Rate The Services Given J&K BANK?

a) Poor

78
b) Average
c) Good
d) Excellent

5. How much time it takes to open a new account in j &k Bank

Few hours

One Day

One weak

One month

6. Formalities Involved For Opening New Accounts Are

1. Complicated

2. Normal

3. Simple

4. Too much complicated

7. How Much Satisfied You Are With Debit And Credit Cards Of The Bank?

Very satisfied

Satisfied

Average satisfied

Not satisfied

79
8. Which Of The Following Services You Get From Bank?

a. Saving Account

b. Fixed Deposit Account.

c. Various loan Accounts

d. Current Account

e. ATM/ Debit cards.

f. Credit Cards.

g. Insurance Policies

h. Any other please specify ________________________

______________________________________________

9 .You Choose The Avail Service Of The Bank Because Of Its:

a. More flexibilit y

b. Simplistic procedure/

c. More number of branches,

d. Any other reason please specify _________________

____________________________________________

10 .Which Media Would You Like The Bank To Choose To Inform the
customers?

a. T.V.

b. Radio

80
c. Print Media

d. Through Local Branches

e. Internet.

f. Any other please specify ______________________

11. Are You Satisfied With The Service Of The J&K Bank?

a. Yes b. No

12.Do Have Any Suggestion For J&K BANK?

YES___________________ NO_____________________

13 Are The Employees Of J&K Bank Cooperative And Helpful In

Giving Information About Service Of The Bank?

a. Yes b. No

14. Comment on other bank________________________

_____________________________________________

15. Any suggestion for improvement _________________

_____________________________________________

81