Raja Waseem

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A SUMMER TRAINING REPORT ON

CUSTOMER SATISFACTION TOWARDS J&K BANK WITH

REFERECE TO CAR LOANS

CONDUCTED FOR

THE JAMMU & KASHMIR BANK LTD.

Submitted to Punjab Technical University in partial fulfillment

of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:ZAHID HUSSAIN SOFI

M.B.A (3rd)

Roll no: 81403317119

UNDER THE GUIDANCE OFMr. SYEED ATHAR

&

SHEIK ALTAF AHMAD

ACADEMIC SESSION2008-2010

St. Soldier Management and Technical Institute,

Basti Mithu, Jallandhar

ST.SOLDIER MANAGEMENT & TECHNICAL INSTITUTE

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ACKNOWLEDGEMENT

I avail this opportunity to express my deep sense of gratitude

to Mr. SHEIK ALTAF AHMAD the respected Sr. EXECUTIVE

Manager of the Jammu and Kashmir Bank for providing me an

opportunity to work as a summer trainee in the Jammu and Kashmir

Bank Ltd.

I also take this opportunity to thank to my guide Mr. SYEED

ATHAR (Marketing Manager, Zonal Office, Srinagar) for

providing me proper direction to my project, for sparing their

valuable time and rendering all possible guidance whenever

approached. Thus, from which I have gained many insights.

Place: (ZAHID HUSSAIN SOFI)


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DECLARATION BY THE STUDENT

I here by declare that this project tilted CUSTOMER

SATISFACTION TOWARDS J&K BANK WITH REFERECE TO

CAR LOANS is based on the original work carried out by me

under the supervision of Mr.SYEED ATHAR (Marketing Manager

Zonal Office srinagar) is an original and bonafide work carried out

in partial fulfillment of the requirement of the award of the degree

of Master of Business Administration of Punjab Technical

University.

This is my original work and not submitted for any other

diploma, fellowship, award or prizes. This is my sole effort.

Place: (ZAHID HUSSAIN SOFI)


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CERTIFICATE

This is certified that the project report entitled CUSTOMER

SATISFACTION TOWARDS J&K BANK WITH REFERECE TO

CAR LOANS is submitted for the degree of Master of Business

Administration under Punjab Technical University, Jalandhar is a bonafide

research work carried out by Zahid Hussain Sofi, Roll No : 81403317119

under the guidance and supervision. No part of this report has been submitted

for evaluation in partial fulfillment of the requirements for the degree of

Master in Business Administration.

The assistance and help received during the course of investigation has

been fully acknowledged.

Ms.Bindu Verma Dr. Amarnath

H.O.D. Principal


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Contents

S. No. Title of the Chapter Page No.

I Executive Summery 6

II Theoretical Background 9

III Company Profile 12

IV Objectives of the Study 21

V Research Design 23

VI Analysis & Interpretation 26

VII Limitations 50

VIII Conclusion 52

IX Recommendations and Suggestions 54

X New Plans and Schemes 57

XI Bibliography 74


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CHAPTER-I

Executive Summary


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Executive Summary

Objectives of the study1. To study the impact of personal selling on sales of our car

loan product.

2. To study the problems encountered in selling this product

3. To suggest remedial measures, if required.

Sources of information

Primary source

Face to face interview

Secondary Source Management books

Websites

Annual reports

Research Methodology

Sample size for the research was 100 customers.

Findings and conclusions

Even though J&K bank enjoys a large market share and customer

loyalty but still it is not able to tap the potential customers because

of the certain loopholes in the scheme. With the result customers

are shifting to State Bank of India particularly for car loans as

their scheme is more attractive and their severe advertising has

caused the results. The rate of interest, margin money of J&K

bank is quite high in comparison with competitors. The repayment

period and minimum finance offered is also less with the resultpeople wanting less amount in installments and those who want to

buy luxury sedans goes out of reach of bank. As evident the

formalities required are less and the net annual income for

availing loan is only Rs75000, which is healthy for the bank. The

J&K bank should also start financing second hand cars in order to

laurel more customers. In addition it should find tool to counter

Rs2599 of State Bank of India which is taking the toll in the

valley.


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Recommendations

From the fore going process, it is important for the bank toestablish a system for the continuous creation of high customer

satisfaction. The following measures are recommended to create

growing customers base:-

1. First of all, the bank should over haul the scheme to make more

competitive than the other banks [As we already know that

Rs2599 has already made the impact in the minds of the

potential customers.]

2. The bank has to definitely reduce the rate of interest, decreasethe margin money and increase in the repayment period.

3. They should not put any ceiling on the maximum finance as is

done by the Canara bank so that people can easily avail the

loan for luxury sedans.

4. The bank should also provide the loan for the second hand cars

in order to create strong customers base with hand in hand to

Marutis Authorized Dealers under True Value Scheme

which operates mostly outside state.

5. Print media advertising should be done effectively so as tomove the customer to higher levels in the decision process for

using the finance scheme.

6. The bank needs to go for aggressive marketing of its products

and requires increasing the awareness level among the

customers.

7. Definitely personal selling helps in increasing the sales and

clears the confusion about the scheme among the customers. So

bank should keep a separate force for telling the schemes and

policies of the bank. It will definitely help the bank.

8. Employees of the bank must be trained to treat the customers

more courteously and to be more responsive towards their

needs and expectations. As the satisfied customers will bring in

more customers.


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CHAPTER-II

Theoretical Background


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What is Marketing?

Marketing is the process by means of which good and services are

exchanged and their value determined in terms of money. It is that phase

of business activities through which human wants are satisfied by

exchange of goods and services.

According to American Marketing Association, Marketing is the

process of planning and executing the conception, pricing, promotion

and distribution of ideas, goods and services to create exchange that

satisfy individual and organizational objectives.

Marketing Management

Marketing management represents marketing concept in action i.e.

pre-planned demand management under customer oriented marketing tophilosophy.

It can be defined as the process of planning and executing the

conception, pricing, promotion and distribution of goods, services and

ideas to create exchange with target groups that satisfy customers and

organizational objectives.

Marketing Mix Determination

Marketing Mix is that set of marketing tools that the firm uses a to

pursuer its marketing objectives in the target market. It can be defined

as a set of controllable variables that a firm can use to influence the

buyers response within a given target market. The marketer has to take a

series of decisions on four major ingredients frequently referred to as

the marketing mix variables. Product, price, place and promotion.

However there are other Ps which effects the market situation e.g.

marketing mix tools that the firm uses to pursue packing, pride, politicalclout, persistence, public relation prestige etc.


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The Promotion Mix

Firms select a mix of promotional tools to effectivelycommunicate with their target customer group. The different elements

of this mix are:

(a) Advertising

(b) Personal selling

(c) Sales promotion

(d) Public relations

Not each element is helpful or effective in all product market situations.

Promotion decisions are important as they help move the product from

the manufacturing and to the consumption.

Personal Selling:

Selling is an important aspect of marketing. Customers get toknow the firm and the product through the salesperson. The image is

created or tarnished by the quality of selling demonstrated in the fields

by salespeople. They could be order takers (when they adopt stimulus

response theory or product oriented approach) or problem solvers,

consultants, or even a person who is held in esteem by the prospect.

This happens when the salesperson uses need satisfaction approach and

does things that help him or her build a positive relationship. A sales

call goes through five stages---opening, need exploration, presentation,

managing objections and closing. Probing and negotiating are the twokey tools required to succeed in the market today.


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Profile of J&K Bank

Prelude

The J&K Bank incorporated on October 1st 1938 commended

business on July 4th 1939. from a small beginning the Bank has

grown to become a giant with a wide network of branches spread

over the length and breadth of India. A significant contributing

factor for this fast growth is the solid founding principles, which are

dedicated to the cause of transforming the bank not only as afinancial heart but also as a social heart of the community.

The J&K Bank is the first state owned Bank of the country

and 53% of the equity is held by the Govt. of J&K. The Bank has a

consistent tract record of growth and profitability. It has a unique

distinction of being banker to the J&K State Govt. and has also

been appointed by RBI as its agency in J&K, responsible for

carrying general banking business of the central Govt. andcollection of taxes pertaining to the Central Board of Direct Taxes.

The landmark achievements in the diversification of the

Banks functions include the sponsoring of the two Regional Rural

Banks viz, Kamraz Rural Bank and Jammu Rural Bank; permission

for dealing in foreign exchange, holding the lead bank

responsibilities in eight of the fourteen districts in J&K.

Nearly 450 branches have been either partly or fully

computerized covering 90% of the total business of the bank. The

bank has already installed around 330 ATMs at vital installations of

the country. The ATMs are interconnected and thus provide the

customer convenient and 24-hour banking facilities. Bank also

introduced Global Access Card in collaboration with MasterCard

international, thus increasing the acceptability of card to all maestro

locations throughout the globe. Bank has also commissioned


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anywhere banking facilities at more than 103 branches throughout

the country. The bank has already make available the EFT and E-

mail facilities at all of its computerized branches and also Tele-banking facilities at most of these branches.

Presently the bank is the fastest growing bank in India with a

network of more than 500 branches spread across the country

offering world class banking products/services to the masses. J&K

Bank is going form strength to strength: Bank has touched business

turnover of Rs.29946 crores.

In short, Bank sees tremendous revenue growth opportunitiesin all businesses. Bank will continue to invest t increase to revenue,

and enhance shareholder value through whichever means is most

appropriate, including organic development, acquisitions, joint

ventures and partnerships. Bank will continue to improve

operational efficiency, building on success to date, but wont

hesitate to reinvest these savings in new propositions, new

initiatives, and new businesses especially if they allow bank to

exploit profitable growth opportunities. J&K Bank has a powerfulset of brands that people trust. Bank has proven products and

services, an integrated distribution network that delivers, and

financial strength. This is a tremendous base on which to grow

business profitably. Bank is confident to continue to be a winner.

In recognition of its excellent customer service, fair business

practices, overall operational efficiency, overall performance, etc

the bank has been felicitated by the following awards during the lastfew years.

Asian Banking Award-2004

No. 1 Bank in India_ET_CMIE Survey 98-99

The Best Bank-Rediff.com & PWC Survey

Indias Fastest Growing Bank-Business Standard

Excellence Award-Institute of Economic Studies.

Ranked as No.1 on Safety Parameters-Business Standard

Survey


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Ranked as No.2 on profitability front_ Business Standard

Survey

Jamnalal Bajaj Uchit Vyavahar Puraskar2002- Council forFair Business Practices dated 26th March 2003

Best Private Sector Bank Award-Financial Express, presented

by Dr. Bimal Jalan, Governor, Reserve Bank of India on 4th

April 2003.

Best Universal Bank Award- Financial Express, Presented by

Dr. Bimal Jalan Governor, Reserve Bank of India on 4 th April

2003.

Ranked 87th among Indias Top 500 Companies by Worldsrenowned rating agency-DUN & BRADSTREET

Asian Banking Award 2004 for the customer Convenience

Programme.

Presently the bank is headed by Mr. Haseeb-Drabu,

Chairman cum Chief Executive Officer, who has been

felicitated by the following awards:

Udyog Rattan Award by IES presented by Mr. K.K. Gujral,

former Honble Prime Minister of India. Pride of India and IMM Award for excellence as Top

Professional Manager and outstanding performance in

Management Quality and Innovations in the field of banking

by Mr. H.D. Deve Gowda, fomer Honble prime Minister of

India.

Excellence Award by Institute of Economic Studies, Delhi.

Pride of India Gold Award.

Indira Gandhi Priyadarshini Award.

J&K Govt. Award for outstanding work in J&K Bank

presented by the governor of Jammu and Kashmir on

Independence day.

Best Banker of the year 2001 Award by Rotary Club of Delhi

Capital Presented by Sh. L.K. Advani, Deputy Prime

Minister, Govt. of India.


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Shiromani Award for outstanding achievements in the field

of banking and commitment to national progress and human

welfare presented by Mr. I.K Gujral, former Prime Minister ifIndia on August 30, 2003.

ORGANIZATIONAL STRUCTURE

The J&K Bank has a four tier organizational structure,

namely:

Corporate Headquarters,

Zonal Offices,

Area and District Offices, and

Branch Offices.

1. CORPORATE HEADQUARTER:

The corporate Headquarter of the Bank is located at Srinagar

and is headed by Chairman cum Chief Executive officer (CEO),

who is appointed by the J&K Government for a period of 3 to 5

years. Generally, the chairman is selected form reputed Economists,

Bankers or the Administrators of the state. The Chairman is guided

by the Board of Directors of the Bank.

Board of Directors:

The Board of Directors of the Bank consists of 14 members.

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.

MANAGEMENT:


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The management of the Bank consists of the following three

categories.

Senior Management

Middle Management, and

Junior Management.

At the top of management there is Chairman cum CEO, who is

followed by one Chief General Manager and five General

Managers.

The chief General Manger looks after the portfolio of

administration. General Manager looks after the portfolio of

corporate Credit, ALM & Investments: Law, company Affairs and

Accounts, Retail Credit & Stationary, I&V and Insurance, Estates

& Card business. The General Managers are assisted by seven joint

General Managers and eight Deputy General Managers, who in turn

are assisted by the Assistant General Managers, are assisted by the

chief Managers.

In the Middle Management, there are Managers of Scale III, II

and in the junior Management there are Managers of Scale I.

2. ZONAL OFFICE:

Under Corporate Headquarters there are 4 Zonal Offices

spread all over India. A zonal Manager, who is of the rank of Joint

General Manager/Deputy General Manager of senior Managementcadre, heads Zonal Offices and is assisted by the Assistant General

Managers/Chief Managers heading respective Departments. The

various departments at Zonal offices look after following important

functions:

Inspections and Estates,

I&V, RC & Sty.,

CC & I,

Law,


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Trainings,

Credit,

Branches,

Security,

Advertisement,

General, etc.

3. AREA/ DISTRICT OFFICES:

Under Zonal Offices, there are Area/District Offices. The

District Office is headed by the concerned District Manager. TheBranch Managers report to their respective District Manager.

Presently the Bank has 11 District Offices and 3 Area Offices.

4. Branch offices:

The various branches of the Bank in Jammu and Kashmir

State are divided into 5 different categories whereas in Delhi Zone

they are divided into 2 categories, depending on the quantum of

business. These are, in J&K State, as follows: Category A - Average working above Rs150.00 Crores.

Category B - Average working Rs. 50.00 crores to

Rs.150.00 Crores.

Category C - Average working Rs.15.00 crores to

Rs.50.00 crores.

Category D - Average working Rs.2.00 crores to

Rs.15.00 crores.

Category E - Average working up to Rs.2.00

In Delhi Zone the various categories of the Branches of the Bank

are:

Category I - Average working above Rs.25.00 crores.

Category II - Average working up to Rs.25.00 crores.


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HISTORICAL BACKGROUND

Entire banking in the state of Jammu and Kashmir was

performed by traditional moneylenders till 1920-30 and that too at

exorbitant interest rates. At the same time some banks functioned

but at a very limited scale, such as Punjab National Bank, Grindlays

Bank and Imperial bank of India. The role of these banks was

reduced to the acceptance of deposits, as they could not grant loans

and advances to the people of ht e state owing to the statutory

limitations. Under this scenario banks could not ameliorate the

financial and social position of people of the state. To overcome

this critical situation the then Maharaja of State conceived an idea

of setting up of a state Bank in the state. After, prolonged exercises

and deliberations the assignment for establishment of The Jammu

& Kashmir Bank Limited was given to the late Sir Sorabji N

Pochkhanwala, the then Managing Director of the Central Bank of

India. Mr. Pochkhanwala formulated a scheme on 24-09-1930,

suggesting establishment of a Semi State Bank with participation in

capital by State and public under the control of State Government.

Thus the Bank was formally incorporated on 1st of October 1938

and commenced business from 4th of July 1939 at its Registered

Office, Residency Road, Srinagar, and Kashmir.

The Jammu and Kashmir Bank limited has been the first of its

nature and composition as a state owned bank in the country. The

state Government besides contributing half of the issued capital also

appointed it as its bankers for general banking and treasury

business. In its formative years, the bank had to encounter several

serious problems, particularly around the time of independence,

when out of its total of 10 branches two branches of Muzaffar-abad

and Mirpur fell to the other side of line of control (Now Pak

Administered Kashmir) along with cash and other assets in 1947.

However, the State govt. came to its rescue with the assistance of

Rs 6.00 lacks to meet the claims. However the bank steadfastly

overcame its difficulties and kept growing. Following the extension

of central laws to the State of Jammu and Kashmir, the bank was


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defined as a Govt. company as per the provisions of Indian

companies Act 1956. The Bank had its first full time Chairman in

1971, following the social control measures in banks. The year1971 was a turning point for the bank on conferment of scheduled

bank status and witnessed remarkable progress in all the vital fields

of operations. Reserve Bank of India declared the Bank as A

class bank in 1976.


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CHAPTER-IV

Objectives of the Study


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Study for J&K Bank car loan scheme

A study of actualization rate of promotional tools (Personal

Selling) into immediate sales.

Objectives of the Study

1. To study the impact of personal selling on sales of our car

loan product.

2. To study the problems encountered in selling this product.3. To suggest remedial measures, if required.


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CHAPTER-V

Research Design


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Research approach and Methodology

Research Design:-

A customer survey was undertaken to assess the customers.

An exploratory research design was adopted to conduct the

study in order to know the impact of J&K bank car loanscheme among the potential customers. In order to get the

relevant data, primary data was collected by meeting the

respondents personally.

Sampling Plan:-

Population of the Sample:

The population of the interest was Kashmir valley. A random

sample design was used. Judgment simple was also done to

ensure maximum coverage of J&K bank customers.

Sample Size:

A sample of 100 respondents was taken in some organizations

like institutions, universities, hospitals and in some shopping

centers of the valley.

Data collection:

Source of Data:

The report mainly consists of primary data gathered

through the schedule of questions asked to the respondents


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directly. Information about the company, its product/ services,

features and market share were obtained from the bank andform other secondary sources such as magazines, journals,

annual reports etc.

The interviewer approached the respondents as if the was the

marketing executive of the bank and questionnaire was

formulated. The answers, queries and responses were noted

down from each respondent and accordingly the results were

formed.

Geographical area of the study:

The data collection for this project is restricted to the Valley

of Kashmir.

Statistical Tools:

Tools are used for tabulation of data, percentages are drawn

for generalizing the study and graphs are used for having

better pictorial representation.


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Chapter-VI

Analysis & Interpretation


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Comparative analysis of the various banks in Kashmir valley

(1) Head on comparison and the features of J&K bank with its

competitors in the valley.

S. No. Name of the Bank Tenure Rate of Interest

1. J&K Bank Up to 3 Years 9.5%

Above 3 to 5 Years 11%

2. State Bank of India Up to 3 Years 9%

Above 3 to 5 Years 9.25%

3. Punjab National Bank Up to 3 Years 9.25%

Above 3 to 5 Years 9.5%

4. Oriental Bank of Commerce Up to 3 Years PLR-1.5%

Above 3 to 5 Years PLR-1%

5. Central Bank of India Fixed Rate PLR+2%

6. UCO Bank Fixed Rate 11%

7. Canara Bank Fixed Rate 11.5%

Analysis:- It is evident from above table that J&K Bank levy high

rate of interest compared to its arch rival competitor state bank of

India. if it is allowed for more time that the Bank will loose the

hold of the potential customers. Therefore efforts must be raised

by the bank management to reduce the rate of interest.


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(2) Margin Money required for availing the scheme

Analysis:- From the graph it is observed that the margin

money required for the sanction of loan of various banks is

as:

J&K Bank =25%

UCO Bank =15%Canara Bank =10%

Oriental Bank of Commerce =10%

Central Bank of India =20%

Punjab National Bank =25%

State Bank of India =25%

Inference:- It is evident that margin money required is high. In

order to make more influence on potential customer the bank

management should take steps in order to reduce the margin money.


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(3)Repayment period of the schemes for different banks:

Analysis:- From the graph it is observed that the maximum

repayment period of various banks is listed as:

J&K Bank =5years

UCO Bank =5yearsCanara Bank =5years

Oriental Bank of Commerce =7years

Central Bank of India =7years

Punjab National Bank =5years

State Bank of India =7years

Inference:- It is inferred that the J&K Bank offers only 5 years to

maximum repayment period while its competitors State Bank of

India offers 7 years. This in order to make the scheme more

competitive, the management should made efforts to increase the

repayment period to 7 years form 5 years which is crucial and

important step.


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(4) Security required by the various banks

S.NO SECURITY BANKS

1. Hypothecation

All banks obey these

criterias.

2. Third Party guarantee

3. In addition to above 2Points.

One can keep liquid

security FDR/LIC/ Bank

approved shares in demat

form etc.

Analysis:- Under security, all the banks obey stated features.

(5)Quantum of maximum finance offered by different banks


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Analysis:- From the graph it is observed that the maximum finance

offered by various banks is as:

J&K Bank =5Lacks

UCO Bank =7.5 Lacks

Canara Bank =No ceiling on maximum amount

Central Bank of India =10 Lacks

Inference:- It is inferred that J&K Bank should raise the quantum of

finance to bring into clutches more potential customers under its

canopy. It is for those customers who go for the luxury cars.

(6)Eligibility required for availing loan from different banks


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S.No ELIGIBILITY BANKS

1. Employees of

Government / semi

Government undertaking

All banks obey these

criterias for the sanction

of loan.

2. Autonomous bodies

3. Public sector

undertakings

4. Individuals

5. Proprietorship concerns

6. Firms

7. Limited Companies

8. Recognized schools /

Colleges.

9. Having regular and

known sources of income

Analysis:- It is evident that for eligibility all bank obey the above

described criteria for the sanction of loan.

(7)Prerequisite for formalities.


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S. No. FORMALITIES BANKS

1. Income tax return UCO Bank, Canara

Bank, Oriental Bank of

Commerce, Central Bank

of India, Punjab National

Bank, State Bank of

India.

2. Certificate from Chartered

Accountant, No need for IT

return certificate.

J and K Bank

3. Bank account statement for

previous months (Current /

savings)

All banks require the

statement of accounts for

the sanction of loan

Analysis:- From above it is evident that only J and K Bank doesnt

require IT certificate which is plus point for the bank. Because of

this, it is able to grasp more customers under its cover.

(8) Net annual income for availing loan.


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Analysis:- From the graph the minimum gross salary / income for

availing loan is:

J&K Bank =Rs 75000

UCO Bank =Rs 1.2 Lacks

Canara Bank =Rs 1.2 LacksCentral Bank of India =Rs 75000

Inference:- It is found that this is the added feature for J and K

Bank, with minimum income of Rs 75000 annually most of the

people could go for the scheme.

(9) Added information about the other banks.


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(a) Oriental Bank of commerce.1. OBC also provides finance to second hand cars under True

Value Scheme of Maruti Udyog Limited.

2. It charges interest rate of PLR +2.5%.

3. The repayment period is 5 years.

4. Maximum finance for second hand cars under True Value

Scheme is 6 Lacks.

5. Margin money required is 25%.

(b) In addition UCO and Canara Bank also provided finance

for second hand cars.

(10) Ashok Leyland Finance Company:-


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In addition to these banks, private corporate have also entered

into this segment of car financing in the valley. It is Ashok Leyland

which has been a major presence in Indias commercial vehicleindustry for 5 decades has also entered into the line. In addition to

providing finance to their vehicles they have also started providing

finance to cars.

The scheme goes as under:-

1. Eligibility:

Employees of government / semi government undertakings,

individuals, limited companies, firms etc.

2. Security:

Hypothecation of the vehicle, no requirement of third party

guarantee.

3. Rate of Interest:

It levies a constant flat rate of 5.07%

4. Margin Money:

The margin money required for availing loan is 20% of the

cost of the vehicle.

5. Repayment:

The repayment time for the loan is 3 years in equal monthly

installments.

Special Features of the Scheme:

Instant Finance

No hidden charges.

No guarantor required.


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No service charges.

Analysis of the J and K bank car loan Scheme(1)Awareness about the car loan scheme among the respondents of

J and K Bank.

Total No. of Respondents =300

No. of aware respondents=234No. of unaware respondents=66

Concept:- Graph representing the awareness among the respondents

about the scheme.

Analysis:- The above graph shows 78% respondents know aboutthe scheme while as 22% doesnt have clear idea about the same.

Inference:- This suggests that very few doesnt have the clear cut

vision about the scheme though they are familiar by name

Finance or Loan only, which creates wrong impression about

the scheme. A genuine effort from the Bank side could convert this

percentage into future customers.


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Aware

78%

Unaware

22%


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Monthly income of the respondents:

Analysis:- It is evident from the graph that the monthly income of

the respondents is as:

Rs5000---Rs 10000 =23%Rs10000---Rs 15000 =32%

Rs15000 and above =45%


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(2) Percentage of customers who have availed the car already

through this scheme.

Analysis:- It is analyzed that 33.33% respondents who already own

a car have adopted the scheme of the bank while the 66.66%

havent got the car through this scheme.

Inference:- It is inferred that promotional strategies need to be

adopted to reverse the trend and increase the awareness level, as is

used by the competitors. Proper awareness campaign will clear the

doubts from the minds regarding the scheme.


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(4) Reasons for the non-adopting of the car loan scheme.

Analysis:- From the graph it is clear that the reasons for not

adopting the car loan scheme are:

Lack of advertisement =25%

Lack of attractiveness compared to competitors =38%

Indifference of banking people =4.0%

All of above =33%

Inference:- It is inferred that lack of advertisement and lack of the

scheme as compared to State Bank of India are the key reasons for the

non-adoption of the same by the customers. Therefore, it is essential that

advertisement and attractiveness must be done in such a way to counter

the competitors and made more lively so that more and more potential

customers could relish the scheme.


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LAD:=Lack of advertisement

LAT=Lack of attractiveness

IBP= Indifference of banking people

AOB= All of above


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(5) Awareness about the scheme of other banks (Particularly State

Bank of India).

Analysis:- The above pie chart shows that 83% of people are aware

about the schemes of other banks while 17% are unaware about the

same.

Inference:- When the awareness level of J and K bank is compared

with that of the other banks it is found to be 78% which is less. So

efforts must be made by the J and K bank to make more people

aware about their schemes so that the percentage will be higher than

the current one.


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Aware. 83%

Unaware. 17%


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(6) Sources of knowledge about awareness of schemes of other

banks.

Analysis:- From the graph the main source of knowledge about the

awareness of other banks is:

Print Media =42%

Electronic Media =13%

Bank Branches =27%

Inference:- It is inferred that the print media is considered to be the

strongest tool in bringing awareness to the people.


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45

40

35

30

25

20

15

10

5

0

42

13

27

Print Media Elect. Media Bank Branches


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(7)Rating of J&K Bank car scheme with other banks

Analysis:- From the graph the rating of J and K bank with other

banks is as:

Good =32%

Satisfactory =38%

Can improve =30%

Extremely Bad =0.0%

Inference:- It is observed that most of the respondents are happywith the scheme and the respondents who said that the scheme

could be improved is because of the competitors, who offer the

scheme at low rate of interest than ours and the repayment period is

also long.


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(8) Reasons for not availing the car loan:

HRI =High rate of interest

MM =Margin MoneySRP =Short Repayment Period

CF =Complicated Formalities

AO =Already Owns a car

WBF =Will buy in near future

WBWF =Will buy without finance.

Analysis:- From the graph it is clear that the reasons for not

availing the car loan are as:

High rate of interest =65.30%Margin Money =8.10%

Short Repayment Period =5.10%

Complicated Formalities =1.02%

Already owns a car =9.10%

Will buy in near future =6.12%

Will buy without finance. =5.10%

Inference:- The main reasons for not awaiting the car loan is the

rate of interest, as 56% respondents say that rate of interest is high

for not adopting the loan. This factor contributes towards the

inadequate response. Margin money and short repayment period are

also the reasons for the non adoption of scheme. Therefore,

management should take such steps i.e. at least bring down the rate


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of interest to the competitors or less so that more and more

customers may avail the loan.

(9)Opinion of customers who availed the car loan:

(A) Formalities Involved:-

Analysis:- Formalities involved in availing the loan are:

Complicated =22%

Easy =78%

Inference:- It is evident from the chart the 78% of the people who

have availed the loan fee the formalities involved are easy. For

availing the loan, the other banks require IT return certificate but

J&K bank doesnt require the same, as we know that most of the

business people doesnt pay the taxes properly so surely that will

prefer J&K bank.


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(B) Rate of Interest

Analysis:- The opinion of consumers about the rate of interest who

availed consumers loans.

Needs to be reduced =87%

Adequate =13%

Inference:- As most of the people feel that the rate of the interest is

high, as the competitors are offering the scheme at reduced rates.

Therefore, efforts should be made by the bank to revise the interest

rates so that more people may avail the loan and remain satisfied.


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(C) Margin Money

Analysis:- The opinion of consumers about the margin money who

availed loan is

Needs to be reduced =18%

Adequate =82%

Inference:- It is evident that majority of the people feel that margin

money required for loan is adequate. In order to attract more

customers the margin money should be reduced.


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90

80

70

60

50

40

30

20

10

0

82

Adequate Need to Reduce

18


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(10) Total number of respondents who availed the car loan scheme

under study.

Analysis:- It is found that 99% of respondents did not availed the

scheme while 1% of respondents received the car under the scheme.

Inference:- It is inferred that the main reason for not applying for

the car under the scheme is high rate of interest as compared to the

competitors. The scheme of State bank of India had made the space

in peoples mind particularly Rs 2599.


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(11)Total number of respondents who really got interested in the

scheme and availed the scheme.

Analysis:- It is fond that 83% did not availed the scheme and 17%

got the benefit of the scheme.

Inference:- As evident some respondents were not interested in the

scheme at all while the others required time to settle at the decision

of the kind of the car to buy.


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CHAPTER-VII

Limitations


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Limitations of the study

Time factor was the major limitation.

The findings of the report have been made in the Kashmir

valley. Care should be taken in generalizing the report for

other places.

The bias of the respondents may have introduced errors in the

survey findings.


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CHAPTER-VIII

Conclusion


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Conclusion

Even though J&K bank enjoys a large market share and

customer loyalty but still it is not able to tap the potential customers

because of the certain loopholes in the scheme. With the result

customers are shifting to State Bank of India particularly for car

loans as their scheme is more attractive and their severe advertising

has caused the results. The rate of interest, margin money of J&K

bank is quite high in comparison with competitors. The repayment

period and maximum finance offered is also less with the result

people wanting less amount in installments and those who want to

buy luxury sedans goes out of reach of bank. As evident the

formalities required are less and the net annual income for availing

loan is only Rs 75000, which is healthy for the bank. The J&K bank

should also start financing second hand cars in order to laurel more

customers. In addition it should find tools to counter Rs 2599 of

State Bank of India which is taking the toll in the valley and has

kept the space of the mind of the potential customers busy.


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CHAPTER-IX

Recommendations and suggestions


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Recommendations and suggestions

From the fore going process, it is important for the bank to establish

a system for the continuous creation of high customer satisfaction.

The following measures are recommended to create growing

customer base:-

1. First of all the bank should over haul the scheme to make it

more competitive than the other banks. [As we already know

the Rs 2599 has already made the impact in the minds of he

potential customers].

2. The bank has to definitely reduce the rate of interest,

decrease the margin money and increase the time for the

repayment period.

3. They should not put any ceiling on the maximum finance as

is done by the Canara Bank so that people can easily avail the

loan for luxury sedans.

4. The bank should also provide the loan for the second hand

cars in order to create strong customers base with hand in

hand to Marutis Authorized Dealers under True Value

Scheme which operates mostly outside state.


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5. Print media adverting should be done effectively so as to

move the customers to higher levels in the decision processfor using the finance scheme.

6. The bank needs to go for aggressive marketing of its products

and requires increasing the awareness level among the

customers.

7. Definitely personal selling helps in increasing the sales and

clears the confusion about the scheme among the customers.

So bank should keep a separate force for telling the schemes

and policies of the same. It will definitely help the bank.

8. Employees of the bank must be trained to treat the customers

more courteously and to be more responsive towards their

needs and expectations. As the satisfied customers will bring

in more customers.


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CHAPTER-X

Bibliography


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Bibliography

1. Marketing Management by Philip Kotler.

2. Marketing Management by Rajan Saxena.

3. Marketing Research by G.C Beri.

4. Annual Reports of J&K Bank Ltd.

5. Yearly Jounals of J&K Bank Ltd.

6. Magazines such as Business India, Trust etc.

7. Websites of J&K Bank

www.jkbank.net

www.jkbank.org


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http://www.jkbank.net/http://www.jkbank.org/http://www.jkbank.net/http://www.jkbank.org/


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Questionnaire

1. Name_____________________________________________

2. Age Group:

(a)20-30 years____________

(b)30-40 years____________

(c)40-50 years____________

(d)Above 50 years__________

3. Income Bracket:

(a)5000-10000_________

(b)10000-50000________

(c)15000-20000________

(d)Above 20000________

4. Do you own a car:

(a)Yes___________

(b)No___________

5. If yes, did you get the car through finance:

(a)Yes___________

(b)No___________


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6. If you do not own a car, are you interested to buy one:

(a)Yes___________

(b)No___________

7. Will you go through finance:

(a)Yes___________

(b)No___________

8. Through which bank you will opt for loan give preference:

(a) _________________

(b) _________________

(c) _________________

(d) _________________

9. Give reasons for preference

(a):______________________________________

10. Did you know about the J&K bank car loan scheme:

(a)Yes___________

(b)No___________


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11. Through which media, you came to know about the scheme:

(a)Print Media___________

(b)Electronic Media ___________

(c)Bank Branches________

12. Are you aware about the scheme of other banks:

(a)Yes___________

(b)No___________

13. Rating of J&K bank car loan scheme with other banks:

(a)Good___________

(b)Satisfactory___________

(c)Can improve___________

(d) Extremely bad___________

14. Reasons for not availing the car loan:

(a)High rate of interest________

(b)Margin money_________

(c)Short repayment period_______

(d)Complicated formalities________

(e) Already owns a car

Raja Waseem

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