LIST OF ABBREVATION USED

SBOP: State Bank of Patiala

IRDA: Insurance Regulatory Development Authority

UTI: Unit Trust of India

SAMF: Sum Assured Multiplier Factor

DHCB: Daily Hospital Cash Benefits

ICUB: Intensive Care Unit Benefits

MSME: Micro Small Medium Enterprises

NBHC: National Bulk Handling Corporation Ltd

ACABCs: Agri Clinics and Agri Business

KGC: Kisan Gold Card

SGSY: Swaranjayanti Gram Swarojgar Yojana

FLCCs: Financial Literacy Credit Counseling Centre  

WAP : Wireless Application Protocol

SCB: State Cooperative Banks

SLDB: State Land Development Banks

UCB: Urban Cooperative Banks

CCB: Central Cooperative Banks

CLDB: Central Land Development Banks

PACS: Primary Agricultural Credit Societies

PLDB: Primary Land Development Banks

RRB: Regional Rural Banks

Cop: Cooperative

1

PSADB: Punjab State Agricultural Development Bank

PSCB: Punjab State Cooperative Bank

PADB: Primary Cooperative Agricultural Development Bank

A/c: Account

PAN: Permanent Account Number

HUF: Joint Hindu Family

FDR: Fixed Deposit Receipt

SB: Savings

RCC: Revolving Cash Credit

NFS: Non Farming Sector

CASS: Cooperative Agricultural Savings Societies

A. LIST OF FIGURES

Page No.

STRUCTURE OF INDIAN BANKING 8

STRUCTURE OF COOPERATIVE BANKING 41

B. LIST OF TABLES

Page No.

PERFORMANCE HIGHLIGHTS 2011-2012 9

PERFORMANCE OF LAST 5 YEARS

BOARD OF DIRECTORS

TOP MANAGEMENT

FLCC CENTRES

10-11

11-12

12-13

22-23

2

CORE BANKING SOLUTIONS: VALUE ADDED SERVICES

DEPOSIT AND INTEREST SCHEMES INTEREST RATES

25-27

27-28

DIFFERENT LOAN SCHEMES OF STATE BANK OF PATIALA 28-39

DEPOSIT AND LOAN RATE OF INTEREST COOPERATIVE BANKS 45

LEVEL OF PREFERENCE 62

C. LIST OF GRAPHS

Page No.

6.1 DEMOGRAPHIC ANALYSIS BASED ON OCCUPATION 50

6.2 TYPE OF ACCOUNT 51

6.3 CUSTOMERS WHO HAVE TAKEN LOAN FROM THE BANK 52

6.4 INFORMATION SOURCE OF SCHEMES AND SERVICES OF BANK 53

6.5 RATE OF INTEREST PREFERRED 54

6.6 APPRECIATION FOR BEING A GOOD CUSTOMER 55

6.7 FUTURE PREFERABLE BANK (A) (B) 56-57

6.8 MOTIVATIONAL FACTORS 58

6.9 INFLUENCE OF IMAGE OR BRAND OF THE BANK 59

6.10 ESSENTIALITY OF COMPUTERIZED BANKING 60

6.11 CUSTOMER DIFFER IN PERCEPTION FOR A GOVT. & PRIVATE BANK 61

3

EXECUTIVE SUMMARY

The report contains introduction to Banks, which includes past, present and future of

banks and challenges for banking industry in future. Banks plays the most important role in

providing various banking services. Earlier the banks were engaged in accepting and lending

money. But in the recent past the scope of services provided by the banks has increased. The

growing competition requires prompt and efficient services to the customers at reasonable cost.

These days bank aim to provide maximum satisfaction to their customers. Next Part contains

bank profile, Bank profile shows the Bank status, Mission and Vision of STATE BANK OF

PATIALA. The main purpose of this Bank was to cater the rapidly developing financial services

sector. The Bank mainly deals in Deposits and Loans. This part also contains the Bank profile of

CENTRAL COOPERATIVE BANK, because the project is about the comparison of the

customer perception of the State Bank of Patiala and Cooperative Bank. Next Chapter is about

the Research Methodology, which includes justification about the topic selected, the objective of

the study, Scope of the study and sources of information (primary as well as secondary). It also

includes various limitations during the course of the project. Next part of this report is about the

data interpretations and its findings. Next are the Recommendations, the various proposals that

the Cooperative bank could apply for maintaining its position in the region and to face future

challenges and the suggestions for the improvement. Then there are the limitations and the

conclusion of the study.

4

CHAPTER I

INTRODUCTION TO BANKING SECTOR

A Bank is a financial institution licensed by a government. Its primary activities include

borrowing and lending money. Many other financial activities were allowed over time. For

example banks are important players in financial markets and offer financial services such as

investment funds. The level of government regulation of the banking industry varies widely, with

countries

TYPES OF BANKS

Banks' activities can be divided into:-

Retail banking, dealing directly with individuals and small businesses;

Business banking, providing services to mid-market business; corporate banking, directed at

large business entities;

Private banking, providing wealth management services to high net worth individuals and

families;

Investment banking, is relating to activities on the financial markets. Most banks are profit-

making, private enterprises. However, some are owned by government, or are non-profit

organizations.

Central banks are normally government-owned and charged with quasi-regulatory

responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They

generally provide liquidity to the banking system and act as the lender of last resort in event of a

crisis.

5

IMPORTANCE OF A BANK

SAFETY OF MONEY:

The money with the bank remains in safe custody there is always risk in keeping cash with

one’s own self. It may be lost or stolen. Businessman likes to keep money with a bank to

avoid risks of money the customer need not keep large some of money.

IT CULTIVATES HABIT OF SAVING:

Banks cultivates the habit of saving in the Bank on the one hand are safe and on the other

earned interest for the depositor who prompted to safe and deposit money in their banks

accounts.

FINANCIAL HELP TO CUSTOMER:

Banks allows overdraft facilities to their customer so whenever a customer needs money he

can even withdraw more money then the balance in his account. Bank also grants loans and

credit facilities to their customers.

SAFE CUSTODY OF VALUABLE ARTICLES :

Valuable articles deals security etc. can also be deposited in the bank for safe custody. Safe

deposit vaults are provided by bank storing for these valuables.

OTHER INFORMATION:

By opening an account with a bank, the customers may also take advantages of various other

services providing by the banks, such a purchase and sale of securities, travelers cheque etc.

BANKING IN INDIA

Without having sound and effective banking system India cannot have healthy economy.

The banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors. Banking in India

originated in the last decades of the 18th century. The first banks were The General Bank of

India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now

defunct. The oldest bank in existence in India is the State Bank of India, which originated in the

6

Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was

one of the three presidency banks, the other two being the Bank of Bombay and the Bank of

Madras, all three of which were established under charters from the British East India Company.

For many years the Presidency banks acted as quasi-central banks, as did their successors. The

three banks merged in 1921 to form the Imperial Bank of India, which, upon India's

independence, became the State Bank of India in 1955.The oldest bank in existence in India is

the State Bank of India, a government-owned bank that traces its origins back to June 1806 and

that is the largest commercial bank in the country. Central banking is the responsibility of the

Reserve Bank of India, which in 1935 formally took over these responsibilities from the then

Imperial Bank of India, relegating it to commercial banking functions. After India's

independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the

government nationalized the 14 largest commercial banks; the government nationalized the six

next largest in 1980.

Currently, India has 293 scheduled commercial banks (SCBs) - 27 public sector banks

(that is with the Government of India holding a stake), 30 private banks (these do not have

government stake; they may be publicly listed and traded on stock exchanges) and 40 foreign

banks.

The oldest bank in existence in India is the State Bank of India, which originated in the

Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was

one of the three presidency banks, the other two being the Bank of Bombay and the Bank of

Madras, all three of which were established under charters from the British East India Company.

For many years the Presidency banks acted as quasi-central banks, as did their successors. The

three banks merged in 1925 to form the Imperial Bank of India, which, upon India's

independence, became the State Bank of India

7

RESERVE BANK OF INDIA (RBI)

SCHEDULED BANKS IN INDIA

COMMERCIAL BANKS COOPERATIVE BANKS

REGIONAL RURAL BANKS (196)

PRIVATE SECTOR BANKS (30)

PUBLIC SECTOR BANKS (27)

FOREIGN BANKS (40)

NEW (8)

OLD (22)

NATONALIZED BANKS (19)

SBI AND ASSOCIATE BANKS (8)

URBAN COOPERATIVES (52)

STATE COOPERATIVES (16)

STRUCTURE OF INDIAN BANKING

8

CHAPTER II

INTRODUCTION TO STATE BANK OF PATIALA

An Associate Bank of the State Bank of India, State Bank of Patiala (SBP) was established in

1917 by Late His Highness Bhupinder Singh, the Maharaja of erstwhile Patiala state. SBP started

its operations from one branch called 'Chowk Fort', in Patiala. During the time of the

establishment, the state owned Bank was known as Patiala State Bank. It was set up for the

purpose of promoting the growth of agriculture, trade and industry.

Patiala State Bank was renamed State Bank of Patiala on 1 April 1960, when it became a

wholly owned undertaking of the Government of Punjab. On that day, SBP became a subsidiary

of the State Bank of India (SBI). Since it was renamed, SBP has grown significantly in terms of

its size and the volume of business. It is now one of the prominent Banks of India. Another

milestone in the history of SBP was the computerization of all its branches on 24 January 2003.

With this development, the Bank became India's first fully computerized Public Sector Bank.

The bank is principally engaged in the provision of commercial and retail banking services to the

individuals and business customers. The bank offers a range of services to the including personal

banking, agriculture and rural banking.

PERFORMANCE HIGHLIGHTS FOR 2011-12        

Total Business crossed Rs. 1,43,500 crores.

Operating Profit is Rs.1762.90 crore (growth 0.21%).

The Capital Adequacy Ratio under Basel-II is 12.30%.

NIM is 3.13% .

Provisioning Coverage Ratio is 67.90%.

Bank’s Credit-Deposit Ratio stood at 81.03 %.

Book value of Rs.100 per share improved from Rs.1389 to Rs 1622.

Cost of Deposit is 7.26%.

9

PERFORMANCE FOR THE LAST 5 YEARS

Particulars 2007-08 2008-09 2009-10 2010-11 2011-12

Total Income 4905.94 6435.69 6649.71 7233.65 8872.13

Total Expenditure

including provisions4492.21 5904.15 6098.82 6580.69 8075.69

Net Profit 413.73 531.54 550.89 652.96 796.45

Earning per share of

Rs.100 each (Rs.)1672 193* 200** 221.53 270.21

Return on Average Assets

(%)0.83 0.83 0.79 0.88 0.93

Return on Equity (%) 15.27 16.96 14.70 15.94 16.66

Yield on Advances (%) 10.53 11.32 10.75 10.58 11.93

Cost of Deposits 7.31 7.89 6.82 5.99 7.26

 

Paid up Capital &

Reserve & Surplus2709 3134 3747 4095 4781

Deposits 48570.54 60006.18 64551.94 68066.05 79416.60

Advances (including

Bills)36400.04 43634.12 46347.23 51433.20 62934.49

Total Assets/Liabilities 59060.04 69665.44 76076.97 81286.25 98498.20

Number of Branches 798 846 886 1008 1055

Capital Adequacy

Ratio(%) Basel-I

Basel-II

12.50

13.56

11.44

12.60

12.45

13.26

12.25

13.41

10.79

12.30

Net NPAs (%) 0.60 0.60 1.04 1.21 1.35

Business per Branch 106.48 122.51 125.17 119.35 136.07

 

10

* Bank raised its capital from Rs.24.75 crores to Rs.274.75 crores.

** Bank raised its capital from Rs.274.75 crores to Rs.294.75 crores.

BOARD OF DIRECTORS          

Shri Pratip Chaudhuri,

Chairman,

State Bank of India,

Corporate Centre,

MUMBAI.

Shri Achal Kumar Gupta,

Managing Director,

State Bank of Patiala, ,

Head Office,

The Mall,

PATIALA 147001.

Shri Shyamal Acharya,

Dy. Managing Director & Group

Executive,

(Associates & Subsidiaries)

State Bank of India ,

Corporate Centre,

Mumbai 400021.

Shri Vijay Chugh,

Chief General Manager,

Department of Payment & Settlement

Systems,

Reserve Bank of India,

14th Floor,

Central Office Building,

Shaheed Bhagat Singh Marg,

MUMBAI 400001.

Shri A.K. Deb,

Chief General Manager

(Associates & Subsidiaries),

State Bank of India,

Corporate Centre,

MUMBAI 400021.

Shri Srikant Hota,

Dy. General Manager,

(Associates & Subsidiaries),

State Bank of India,

Corporate Centre,

MUMBAI 400021.

Shri Verjinder Kumar Gupta, Shri Arun Kumar Agarwal,

11

261, Dalima Vihar,

RAJPURA 140401

B-142, Shivalik,

Malviya Nagar,

New Delhi 110017.

Shri Jagdish Sharma,

Workmen Director,

State Bank of Patiala,

Shastri Bhawan Branch,

NEW DELHI

Shri Swarn Singh Boparai,

House No. 67,

Sector 9 A,

CHANDIGARH.

Shri Ashwani Kumar Gupta,

85, Green Park,

Cool Road,

JALANDHAR CITY

Shri Meher Singh Azad,

Under Secretary,

Government of India,

Department of Financial Services,

Ministry of Finance,

Jeevan Deep Building,

Sansad Marg,

NEW DELHI 110001.

Dr. Abhijit Mukherjee,

Director,

Thapar University,

Patiala

Shri Chaman Lal Singla

Non - Workmen Director,

State Bank of Patiala,

Head Office,

Patiala.

TOP MANAGEMENT

Shri. Achal Kumar Gupta

Managing Director

Fax: 0175 2214311

Shri. A.K.BASU

Chief General Manager (Corporate

Shri. S.Vijaykumar

Chief General Manager (National

12

Banking)

Phone: 0175-2214425

Fax: 0175-2214303

Banking)

Phone: 0175-2209400

Fax: 0175-2301226

Shri. J C DAS

General Manager (Planning & New

Business)

Phone: 0175-2225378

Fax: 0175-2200416

General Manager (Treasury &

Inspection)

Phone: 0175-2214680

Fax: 0175-2215490

Shri. PUKHRAJ KANTHER

General Manager (HR & CDO)

Phone: 0175-2304943

Fax: 0175-2213266

Shri. V.SRINIVASAN

General Manager ( Commercial

Banking)

Phone: 0175-2214323

Fax: 0175 -2215503

General Manager (Vig)

Phone: 0175-2214709, 0175-2220105

Fax: 2301923

Shri. JOSEPH PHILIP

GENERAL MANAGER (Tech .,

Risk & Outreach)

Phone: 0175-2303078

Fax: 0175-2220317

Shri. RAVI JHA

General Manager (Operations)

Phone: 0175 - 2300501

Fax: 0175-2304501

 

Branches And ATM Services

13

The business of State Bank of Patiala has grown manifold since its establishment. Recent

records say that State Bank of Patiala is networked by its 830 service outlets. There are as many

as 750 branches of SBP, spread across the major cities of India, out of which, the majority of

branches are located in its home State, Haryana, Himachal Pradesh, Rajasthan, Jammu &

Kashmir, Delhi and Chandigarh. The Bank provides easy access to money to its customers

through its ATMs spread over 16 states of India.

STATE BANK SERVICES:

State Bank of Patiala offers various types of services to its clients. SBP shares its ATM

network with other State Bank group members, so this means that the bank's customers have

access to the more than 7000 State Bank Group ATMs across the country. Some of the services

offered by the bank consist of:

NRI Services

Govt. Business

Personal Banking

Internet Banking

MSME & Corporate Banking

Agriculture & Rural Banking

RELATED PRODUCTS & SERVICES    

Our Bank offers other fruitful products like Life Insurance, Mutual Fund Investments, General

14

Insurance and Credit Cards under tie up arrangements with various companies as under:-

 

Sr. No. Tie-Up Company Type of Product

1 SBI Life Insurance Co. Ltd. All types of Life Insurance products

2 SBI Mutual Fund, UTI MF, Franklin

Templeton MFMutual Fund Products

3 United India Insurance Co. Ltd. Non-Life Insurance Products

4 SBI Cards & Payment Services Ltd.

(SBICPSL)Credit Card Products

 

A. SBI Life Insurance Products* :- SBI Life Insurance products are of two types:-

1. Group Products

a. Group Swadhan Insurance: - This is a simple insurance product available for all account

holders of our bank in the age group of 18 to 50 years at a very affordable premium. Under the

scheme Sum Assured for ` 50,000, ` 1 lac, `3 lac & ` 5 lac is available.

b. RiNnRaksha Scheme: - This scheme covers the House, Vehicle, Education & Personal Loan

borrowers of the bank. In unfortunate event of death the loan outstanding amount (according to

EMI Schedule) is adjusted with the claim received from SBI Life Insurance Co.

2. Individual Products: - These products can be sold by the Certified Insurance

Felicitators(CIF, a staff member specifically trained, as per IRDA norms, for sale of individual

insurance products).At present the main products for sale are :-

 

Saral Shied

It is an individual without profit pure term insurance plan. Minimum age: 18 years Max Entry

age: 60 years Maturity/vesting age: 65 years Min. term 5 years, Minimum Sum Assured

Rs.7.50 Lacs/Maximum Rs. 24.00 Lacs, Riders: Preferred Term/Accidental Death

Benefit/Accidental Total Permanent Disability is also available.

 

15

Smart Shield

It is an individual without profit pure term insurance plan. Minimum age: 18 years Max Entry

age: 65 years Maturity/vesting age: 70 years Min. term 5 years, Minimum Sum Assured-

Rs.25.00Lacs/Maximum-no limit, Riders: Preferred Term/Accidental Death Benefit/Accidental

Total P

ermanent Disability is also available

 

Smart Money Back

It is an individual endowment assurance product with money back plan where in case

policyholder is alive at specific durations (end of policy years).During the policy term, a fixed

% of the basic sum assured is paid to him as survival benefit in fixed number of installments.

Minimum Age: 14 years Max Entry Age: 58 years Maturity/vesting age: 70 years, Term

12/15/20/25 years.

 

Subh Nivesh

It is an individual participating traditional savings cum whole life endowment plan primarily

designed as savings vehicle with protection along with income generation and wealth

transformation. It is a regular premium plan for a term varies from 5 to 30 years with a

minimum annual premium payment of Rs. 6000.00 per annum and minimum/maximum entry

age is 18/60 years.

 

Smart Wealth

It is an individual Unit Link single premium insurance product. This product provides the

policyholders two types of investment return, namely Guaranteed Return and Market Linked

Return. Minimum Term 10 years, Minimum Premium Amount Rs.50000

 

Flexi Smart Insurance

It is an individual, non-linked traditional life insurance cum saving plan with guaranteed

interest rate of 2.50%p.a. for the entire policy term. This product provides the flexibilities to

policy holders to choose option of premium holiday during the policy term, increase or

16

decrease the Sum Assured (SA), SA multiplier factor (SAMF),boost investment through Top-

ups. Minimum Age: 8 years Max. Entry age: 60 Years, Maturity/Vesting Age: 70 Years,

Premium term: 10 to 20 years, Premium Mode: Regular Premium.

 

Hospital Cash

It is an Individual/Non- unit–linked/Health Plan which provides daily cash benefit to cover

hospitalization expenses due to sickness/accident. In the product 3 types of benefit is available:

-

(a) Daily Hospital Cash Benefit (DHCB) – this benefit is payable in the event of

hospitalization (other than ICU) of the Life Assured for a continuous period of more than 24

hours of hospitalization

(b) Intensive Care Unit Benefit (ICU) – This benefit is payable in the event of hospitalization

in an ICU of the Life Assured for a continuous period of more than 24 hours of hospitalization.

(c) Family Care Benefit – if in case, members covered under the same policy are hospitalized

simultaneously due to same ailment or due to same event of accident for at least 5consecutive

days, then an additional lump sum equivalent to Rs.10000

Minimum age: 1 years Max Entry age: 65 years Maturity/vesting age: 75 years Min. term 3

years (Fixed) Max Term 3 years (Fixed) Premium Mode: Regular Premium

 

Smart Horizon

It is a unit-linked product with an option of both active fund management and/or passive fund

management with the feature of Automatic Asset Allocation. The customer can also choose a

mix between Passive & Active fund management. minimum and maximum annual premium

under yearly premium mode of Rs. 24,000/- & Rs 74,000/- respectively. The policy term is of

10 years and any term between 15 years and 30 years.

 

Smart Pension

It is a ULIP pension product with minimum single premium mode of Rs. 50,000/-and no

maximum limit of premium. It has 4 fixed policy terms: 10/15/20/25 years. The minimum &

maximum entry age is 30 years and 65 years respectively Minimum Term 10 years, Maturity

Benefit: 1/3rd of commutable, 2/3rd Annuity (compulsory), Death Benefit, Fund Value.

17

 

Smart Scholar

It is a unit-linked non-participating product for securing the future needs of the child. The risk

cover is on the life of the proposer who is the life assured. The nominee at the point of sale

must be a child whose interest the policyholder wants to protect. Entry Age for child- 0 to17

years, for parents 18 to 57 years.Maturity/Vesting Age 65 years, Minimum Term 8 years,

Maximum Term 25 years, Guaranteed Addition available from 8th Policy year 1% x (Average

fund value over the 1st day of the last 24 policy months).

 

Smart Elite

It is an individual unit-linked product designed mainly for preferred (HNI) customer. It offers

Limited Premium paying Term and Single Premium payment option. Minimum Entry 18 years,

Max Entry age: 60 years, Maturity/Vesting Age 65 years, Minimum Term 5 years, Maximum

Term 20 years.

 

B. Mutual Fund Investments :- The main products are as under :-

1. SBI Gold Fund

2. SBI Magnum Tax Gain

3. SBI Magnum Emerging Business

4. Magnum FMCG

5. Magnum Global

6. Franklin India Blue Chip

7. Franklin India Tax Shield

8. Franklin India Prima Plus

9. UTI Opportunities

10. UTI Dividend Yield

 

C. General Insurance Business: -

1. Insurance Cover of buildings, Machinery, Goods, Vehicles etc. can be got from our branches

through United India Insurance Co. Ltd.

18

2. Our account holders can have accidental insurance cover of ` 2.5 lacs at annual premium of `

50 only and cover of ` 5 lacs (with PAN Card) at ` 98 only

 

D. SBI Credit Cards :-

1. Our bank is only sourcing the applications for SBI Credit Cards. The credit decision

regarding the approval or otherwise of the applications sourced would vest with SBICPSL.

2. This product is available at selected centres approved SBI Credit Cards.

 

PERSONAL BANKING    

 

Deposits Advances

Suraksha Saving Bank Account

Suraksha Plus Saving Bank Account

Account Opening Form for

Individuals

Minimum Balance Requirements

Savings Bank Rules

No Frills Savings Bank Accounts

Corporate Salary Package Money

Multiplier SB A/c

SBP - Tax Saving Term Deposit

SB Star Account

SB Sanjeevan

SBP - Home Loan

SBP - Reality

SBP - Rent

SBP - Car Loan ( For New Vehicles)

SBP - Car Loan ( For Used Vehicles)

SBP Gyan Joyti - Education Loan

Scheme

SBP - Loan For Earnest Money

SBP - Loan to Pensioners

SBP - Two Wheeler Loan

Personal Segment Advances: SBP

Career Loan

SBP - Gram Niwas-Scheme For

Financing Rural Housing

SBP - Personal Loan Against

Equitable Mortgage of Immovable

Property

SBP - Personal Loan

SBP - Reverse Mortgage

19

SBP - Education Loan Scheme for

Vocational education and training

SBP - Gold Loan

SBP - Scholar Scheme

SBP - Maxgain Home Loan

 

Other Schemes

Avail ASBA

1% Interest Subvention Scheme

EWS Scheme

ISHUP

Gold Banking Scheme

 

AGRICULTURE & RURAL BANKING    

1. Finance against warehouse receipt issued by National Bulk Handling Corporation Ltd.

(NBHC)

2. Loans granted under tie-up arrangement with Milkfed Punjab & Haryana Dairy

Development Corporation Ltd., Haryana.

3. Establishment of dairy unit of 02 milch animals under schedule caste sub plan in the state

of Punjab.

4. Finance to Farmers under KIisan Card and Golden Card Schemes.

5. Financing Commercial Dairy units

6. Indirect loans given through Primary Agricultural Cooperative Society (PACS)/ Farmer

Service Society (FSS)/ Large sized Adivasi/Agricultural Multipurpose Society (LAMPS)

7. Loans to self help Groups

8. Tractor Loans

20

Agriculture Schemes

Financial Literacy Credit Counseling Centre

AGRICULTURE SCHEMES    

Agricultural Debt Waiver and Debt Relief Scheme, 2008

Malwa Gramin Bank

Model Scheme for financing Net House for Vegetable Cultivation

Produce Marketing Loan Scheme

SBP-Patiala Bank Kisan Card (PBKC) Scheme

Scheme for Construction Renovation Expansion of Rural Godowns

Scheme for Financing Commercial Dairy

Scheme for Financing Commission Agents

Scheme for Financing Farmers for Purchase of Land for Agricuture Purpose

Scheme for Financing of Agri Clinics and Agri Business Centres (ACABCs)

Scheme for Financing under SBP - Kisan Gold Card (KGC)

Scheme for Financing Warehouse Receipts issued by NBHC Ltd

Swaranjayanti Gram Swarojgar Yojana (SGSY)

FINANCIAL LITERACY CREDIT COUNSELING CENTRE    

State Bank of Patiala has established FLCCs as per Reserve Bank of India Model Scheme on

FLCCs at seven centers in Punjab, Patiala Fatehgarh Sahib. Muktsar, Sangrur, Mansa,

Bathinda and Barnala. These centers have been opened to:    

Provide financial counseling services through personal interaction as well as through

media like e-mail, fax, mobile etc.

Provide Education on responsible borrowing, offering debt counseling to individuals

who are indebted to formal and/or informal financial sector.

Educate the people in rural and urban areas with regard to various financia products and

services available from financial sector.

Make the people aware of the advantages of being connected with the formal financial

21

sector.

   

the centre provides free financial literacy; educa tion and credit couselling including on debt

restructuring to non customers/customers of any bank.          

S.No. Name of FLCC Address of the

FLCC Centre

Name of the Counsellor

Contact NO. and e-mail

adddress

1. FLCC, Patiala

(Punjab)

S.C.O.36,

New Grain Market,

Patiala

PIN 147001

Sh. Bhagwant Singh,

Mobile:9815380809

Tel: 175-2358543

e-

mail:flccpta@gmail.com

2. FLCC, Fatehgarh

Sahib

(Punjab)

Opposite Civil

Hospital

Fatehgarh Sahib

PIN-140406

Sh. Sukhdev Singh

Tiwana

Mobile: 9463598373

Tel:01763-232298

e-

mail:flccfgs@yahoo.com

3. FLCC Muktsar Ist floor, Lead Bank

Office,

New Gramin Market,

Muktsar

PIN-152026

Sh. A.N.Garg,

Mobile: 9815378102

Tel: 01633-262060

e-

mail:flccmks@yahoo.in

4. FLCC Sangrur Inside Distt.

Agricultural Office

complex

Sangrur

Sh. C.S.Musafir

Mobile 7696606051

Tel: 01672-231577

e-

22

PIN- 148001 mail:flccsng@gmail.com

5. FLCC Mansa Mini Sectt.

D.C.Complex,

Mansa

Sh. S.S.Sidhu

Mobile:9876023224

Tel:01652-227063

e-mail:flccmansa@

gmail.com

6. FLCC Bathinda Kiker Bazar

Bathidna

Sh. O.P.Gupta

Mobile: 9918116765

Tel 0164-2238445

e-

mail:flccbti@gmail.com

7. FLCC Barnala Vikas Bhawan

BDPO Office

Barnala - PIN-

148101

Sh. N.K.Kapoor

Mobile:9814567023

Tel: 01679230226

 

GOVERNMENT BUSINESS    

Pay Taxes through our Branches

Government Accounts

Centralised Pension Processing Center (CPPC)

(FAQ) Centralised Pension Processing Center

Public Provident Fund

Senior Citizens Savings Scheme

Government Business Authorised Branches

New Pension Scheme / Swavalamban

State Bank Freedom - Mobile Banking Services    

Highlights Of This Service

IMPORTANT NOTICE

23

Away from home, bills can be paid or money sent to the loved ones or balance enquiries done

anytime 24x7!!! That is what State Bank FreedoM offers -convenience, simple, secure,

anytime and anywhere banking.

Mobile Banking Service over Application/ Wireless Application Protocol (WAP)

The service is available on java enabled mobile phones over SMS/ GPRS where the user is

required to download the application on to the mobile handset. The service can also be availed

via WAP on both java and non java phones with GPRS connection.

The following functionalities are available in the application based service/ WAP:

Funds transfer (within and outside the bank –using NEFT)

Enquiry services (Balance enquiry/ Mini statement)

Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations,

Subscriptions

M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV connections

and receive recharge pins for DigitalTV/Videocon d2h, Merchant payment, SBI life insurance

premium)

-----------------------------------------------------------------------------

Business Rules governing Mobile Banking Service over Application / WAP

The Mobile Banking Service will be available to all the customers having Current/ Savings

Bank Account(Personal segment). The customers will have to register for the services.

Daily transaction limits for fund transfer/ bill/ merchant payment is Rs.50,000/- per

customer with an overall calendar month limit of Rs.2,50,000.00

The service will be carrier-agnostic i.e. all customers can avail the mobile banking

service with the Bank irrespective of the service provider for their mobiles.

The service is free of charge. However, the cost of SMS / GPRS connectivity will have

24

to be borne by the customer.

CORE BANKING SOLUTIONS: VALUE ADDED SERVICES

CORE POWER AND MULTICITY CHEQUES

 

CORE POWER : PERSONAL SEGMENT

S.No. P-SEGMENT (INCLUDING AGRI.)

1. TRANSFER OF FUNDS

Transfer of funds by debiting Savings Bank/Current Account from home branch to

any other account (self or third party) at another branch, for same day credit

At home centre.

For such local transfers : No ceiling and no charges.

Non-home centre :

Upto Rs.20000.00 : No charges Above RS.20000.00 : RS.20.00 per

transaction.

2. DEPOSIT OF CASH

Deposit of cash, by the customer or by the third party, for same day credit to the deposit/loan

account from a non-home branch up to

 

Maximum Ceiling : Rs.20000.00

Charges : NIL

 

 

3.

COLLECTION OF CHEQUES/ INSTRUMENTS

For same day credit to the account in respect of cheques/ instruments.

a)     Deposited at the home branch and drawn on other branches at home centre.

- No charges will be levied on such credits irrespective of the amount.

 

25

b)     Deposited at home branch and drawn on our branches at non-home centre.

c)      Deposited at our non-home branch and drawn on our home/other branches

 

For b) and c) above :

-              Upto Rs.20000 : No

Charges

- Above Rs.20000 Rs.20

per transaction

 

 

4 COLLECTION OF CHEQUE

Deposit of cheques/instruments at any outstation branch (for credit to the account at home

branch) which are drawn on at that outstation centre on

 

a) Our branches

b) On other banks’ branches.

On clearance, proceeds of such cheques/instruments will be credited to the customer’s

account at the home branch..

Upto Rs.20000.00 No Charge

Above Rs.20000.00 Rs.20 per transaction

 

To be recovered from the clearing proceeds.

 

As tendering of such cheques/instruments will be done mostly through “Drop Boxes”,

acceptance of these transactions will be based upon the account number/information

provided in the pay-in-slip/Cheque.

5 ENCASHMENT OF CHEQUES

Encashment of SB/CA cheques by the account holder at any branch.

Such encashments can be for

a) Cash withdrawl

b) For transfer the proceeds to any other SB/CA account (self or third party) at another

26

branch.

c) For issuances of Drafts/Banker’s Cheque/TT

 

 

Encashment of cheques as above upto

Rs.20000/- : No Charges

Above Rs.20000/- Transactions will be allowed only through Multicity cheque(s).

In case of ©, normal charges of issuance of drafts/ Banker cheque (s) issuance / TT issuance

will charged additionally @ Rs.2.50 per Rs.1000/- (Min. Rs.25/- Max. Rs.10000/-) For

remittance by cash deposit above Rs.10000/- Rs.20/- extra will be charged).

 

 

DEPOSIT ACCOUNTS RATE OF INTEREST (1.7.2012)

NATURE RATE OF INTEREST MINIMUM BALANCE

  NORMAL SENIOR

CITIZEN

Rural Semi

Urban

Urban

ACCOUNT          

1.  Savings Bank A/c   w.e.f. 03.05.2011      

                      

A. Domestic

a.  with cheque book

facility

4.00 4.00 500 1000 1000

b.  without cheque book

facility

4.00 4.00 250 500 500

27

c.  No Frills Account 4.00 4.00 0 0 0

B.  Non-Resident          

a.  NRO 4.00 4.00 Same as domestic deposits

b.  NRE 4.00 4.00

 

2.  Term Deposit

A. Domestic Rate of Interest (w.e.f. 01.07.2012)

Term Deposits (All maturities) Below Rs.1 Corer

7 to 14 days 7.00#

15 to 45 days 7.00

46 to 90 days 7.00

91 days to 180 days 8.00

181 days to < 1 year 8.25

1 year to 554 days 9.25

555 days 9.50

556 days to 2 year 9.00

> 2 year to 998 days 9.00

999 days 9.00

1000 days to 3 year 9.00

3 year to 5 year 9.00

5 year to 8 year 9.00

8 year to 10 year 9.00

RATES OF INTEREST OF LOANS

  RATE OF INTEREST (w.e.f. 17.08.2011) PROCESSING

CHARGES

LOANS          

28

1.  Housing Loan Upto Rs

30  Lac

More than

Rs.30   Lac

to 75 lac

Above

Rs. 75 lac

Above

Rs.    Lac

Floating

Category (w.e.f.

21.05.2012)

 10.75%  10.75%  11.50%    0.25% Max. 20,

000/-   

 

Fixed Category          

Upto 10 years 12.75% 12.75% -    0.25% Max. 20,

000/-   

2. Personal

Loan scheme

17.25% - - - 1.10%

3.  Vehicle Loan          

a)  Two Wheeler

Loans

16.75% - - - 1.10%

b)  Three Wheel

Loans

N.A.        

c)  Car Loan Upto 3

yrs

>3 to 5 yrs. > 5 to 7 yrs    

 For New Cars 11.25% 11.25% 11.25% - 0.50%

  For Old Cars 17.00% 17.25% 17.25% - 0.50%

4.  Educational

Loans

Upto Rs. 7.50 lakhs Rs.7.50 lakhs upto 20

lakhs

 

  13.50% 13.00%  

Different Deposit And Loan Schemes Offered By The Bank

The Bank is offering various schemes of deposit and loans .These can be studied under the two

different headings separately as following.

29

I. Different Types Of Deposit Accounts

1. Saving Bank A/c

A Saving Bank A/c can be opened with an initial deposit of Rs.500/- without Cheque Book

facility and Rs.1000/-with Cheque Book facility.

Eligible categories to open SB A/c:

1. Any individuals

2. Joint A/c with others in the form of 'either or Survivor', 'Former or Survivor', and 'joint' etc.

3. Joint Hindu family (HUF)

4. Coop Societies, Clubs, Societies, Associations etc.

The intending customer should visit the bank to fill in A/c opening forms with complete

particulars such as parentage, occupation, address, latest two passport size photographs,

residence such as copies of Voter card, Passport, Telephone/Electricity bill etc. and PAN or form

No.60. The accounts are required to be introduced properly by the existing account holder of the

bank or any person known to the bank. Only 30 withdrawals are allowed per half year for a

saving Bank A/c exceeding which service charges are levied by the bank.

A minimum balance of Rs.500/- (without Cheque Book) and Rs.1000/- (with Cheque Book)

has to be maintained in the account, otherwise services charges are levied on monthly Basis.

At the time of opening the account, pass book is issued to the customer, which needs to be

accompanied every time when payment is drawn through a withdrawals form. Maximum limit of

withdrawal form is Rs.2000/- with passbook. Nomination facility is also in these accounts. A

depositor or depositors can nominate one Person only.

2. Current A/c

A Current A/c can be opened with the initial deposit of Rs.5000/-. It can be opened in the

name of individual, a Sole Proprietary Concern partnership firm, club, Religious Institution,

Association Govt. / Semi Govt. Dept., Local Bodies. As usual, all prospective applicants need to

fill in the Account opening forms wherein following documents are required to be attached:

1. Sole Proprietary Concern - Declaration of Sole Proprietorship

2. Partnership firm - Partnership Deed duly attested

30

3. Clubs, Schools, Societies, Association.

4. 1. Certificate of Registration

2. Copy of Bye Laws.

3. Memorandum of Association, if any.

4. Resolution of Board of Directors.

5. Limited Companies, Pvt. Ltd. Companies

6. Trusts

1. Instrument or Document of Trust

2. Resolution

3. Certification of registration.

All Current A/c need to be introduced properly from another current account A/c holder

only. Staff members are not allowed to introduce a Current A/c.

A minimum balance of Rs.5000/- has to be maintained.

Recent Passport size photographs of the operator/s need to be affixed on the AOF. All

payment is made by Cheques only. There is no restriction on the number of withdrawals unlike

that in SB A/c Pass Book is issued at the time of opening of account. Statement of account can

also be got issued.

3. Recurring Deposit A/c

A Recurring Deposit A/c can be opened with a certain initial deposit wherein a Depositor

needs to deposit money by way of monthly installments over stipulated period. The period may

be 2, 24, 36, 48, 60 month etc. On the expiry of the period, the accumulated amount along with

interest is paid in lump sum. All individuals, jointly with others minors, blind/illiterate person

etc. can open the A/c. Rate of interest on Recurring Deposits for various periods will be the rate

applicable on term deposit for that period.

Minimum monthly installment of the A/c is Rs.100/-

Maximum period is 10 years.

The intending customer should fill in A/c opening form with complete particulars such as

parentage, occupation, address etc. Two passport size photographs are required to be affixed

along with furnishing of residence proof such as copies of ration card, Voter card, Passport,

Telephone/Electricity bill etc. and PAN or Form No.60. The account is required to be introduce

31

properly by the existing A/c holder of the bank of any person know to the bank. On the expiry of

the stipulated period, accumulated amount is paid to the customer.

4. Term Deposit A/c

Term Deposit is a deposit received by the bank for a specific fixed period which is withdraw able

after expiry of said period.

 Eligible categories to open Term Deposit A/c

Individual

Joint A/c with other in the form of Either or Survivor , Former or Survivor, any one or

survivor jointly etc.

Minors

Illiterate persons

Blind person

Joint Hindu Family (HUF)

Coop. Dept, Clubs, Societies, Associations etc.

The intending customer should fill A/c opening form with complete particulars such as

parentage, occupation, address etc. Two passport size photographs are required to be affixed

along with furnishing of residence proof such as copies of Voter Card, Passport, Telephone/

Electricity bill etc and PAN or Form No.60. The account is required to be introduced properly by

the existing A/c holder of the bank or any person known to the bank. A minimum of Rs.1000/-

can be placed in a term deposit. Minimum & maximum period for which the amount is place in a

term deposit are fixed by the bank from time to time.

In a fixed deposit A/c, it usually ranges from 7 days to 120 months whereas in Long Term

Deposit, The minimum period is 12 months. Rate of interest is fixed by the bank from time to

time, keeping in view the market trends. Interest on Fixed Deposit can be fixed quarterly, half

yearly or yearly etc. But in Long term deposit it is cumulative with quarterly rests with the

result that is paid only on maturity. After opening the account in Computer, FDR is issued to the

customer.

A TDS is to be deducted at source as per Income Tax Act. The mode of operation should be

clearly mentioned while opening the A/c. Term deposit A/c can also be opened with Cheques

32

drawn on the same branch or other banks. After getting proper discharge on the back side of the

FDR from the depositor payment can be made on due date. For payment before due date, The

FDR has to be discharged on the back side by all the operators. FDRs can be renewed on due

date by mentioning the period for which they are to be renewed on the back side. TDS is

deducted if interest is Rs.10000/- and more in a financial year prohibition for payment in cash –

The payment of FDR is prohibited to be made in each if the amount of the FDR along with

interest exceeds Rs.20,000/- . So usually the payment of FDR should be made either by way of

Bank Draft/ Pay order or through an a/c.

5. Saving Bank-No frill A/c

The No Frill A/c can be opened by any person without furnishing any resident proof or any

proper introduction. The A/c Can be opened with a minimum amount of Rs.10 /- only. In such

accounts, the Balance should not exceed Rs.50000/- otherwise, it will become an ordinary SB

A/c. No cheque book is allowed to be issued to the customer. The condition of maintaining any

minimum balance in this A/c is waived off.

LOANS SCHEMES OF STATE BANK OF PATIALA

SBP- HOME LOAN

Puspose To purchase or construct a newfold house/flat.

To repair/renovate/extend/alter an existing house.

Eligibility criteria Age over 21 year and repaid up to the age of 70 year

Loan to value ratio Upto rs. 20 lacs :- 90%

Above Rs. 20 lacs :- 80%

Repayment 25 years under floating interst rate option

10 years under fixed interst rate option

Interst rate per

annum

Upto Rs.30 lacs :- 10.75%

Rs.30 lacs to Rs. 75 lacs :-10.75%

33

Above Rs. 75 lacs :- 11.50%

Pre –payment/pre

closure penalty No pre-payment / pre-closure penalty for all Home Loans

Loan available At all branches of state bank of patiala

SBP-RENT

Puspose Finance against assignment of future rentals to owners of

residential buildings / commercial property to meet business

needs and/or other genuine personal needs of the owners

(lessors) but shall not be for any speculative purpose

whatsoever.

Eligibility criteria Owners of residential buildings and commercial properties

situated in Metro and Urban areas, which are to be rented or

already rented to PSU’s / MNCs / Banks / large & medium

size Corporates with External credit rating (ECR) of not

below BBB (Investment grade).

Loan quantum

Lowest of

i).60% of value of the property mortgaged (as per latest

valuation report of the Bank’s approved valuer) OR

ii).Maximum permissible under the scheme OR

iii).60% of (total rent receivable for the residual current lease

period or loan period, whichever is lower minus total of

advance deposit, estimated amount of property tax, service

tax, TDS and other statutory dues for the period)

Min. Rs.1 lacs.

Max. Rs.1 crore for non-corporates and Rs.5 crores for

34

corporates.

Repayment EMI shall be for the same frequency at which rent is

received & installment shall be front ended i.e. shall be

recovered at beginning of the period.

Pre –payment/pre

closure penalty

1% of the loan amount prepaid

Processing charges

2% of loan amount. Maximum Rs. 1,00,000/-

SBP- CAR LOAN ( FOR NEW VEHICLES)

Puspose For purchase of new passenger cars/jeeps/multi utility vehicles

(MUVs)

and SUVs)

Eligibility criteria Age: 21 to 65 years. However the loan should be repaid upto

70 years

Loan to value ratio No ceiling of loan amount.

Maximum loan amount to be 30 times the net monthly income

/ 2.5 times the net annual income.

The income of spouse, father, mother, brother and sister can

be

included provided he / she guarantees the loan.

Repayment The loan to be repaid in suitable monthly/quarterly

installments within a period of 7 years.

Interst rate per

annum

11.25%

margin 15% of the road price of the vehicle.

35

SBP- LOAN TO PENSIONERS

Puspose

To meet personal expenses.

Eligibility criteria

All Central, State Govt, Defence and

SBP-Pensioners/family pensioners whose pension accounts

are maintained by our branches.

Loan to value ratio

A maximum of 12 months net pension with a ceiling of

Rs.3,00,000/- For family pensioners 9 months net pension

with the ceiling amount is Rs.1,50,000/-

Subject to EMI / NMI ratio not to exceed 40% in any case.

Repayment

Up to the age of 65 yrs = 48 M Maximum

>65 yrs to 70 yrs = 36 M Maximum

>70 yrs to 72 yrs = 24 M Maximum

Loan avialble

All branches maintaining pension accounts.

The loan to be given by the branch paying the pension.

SBP- LOAN FOR EARNEST MONEY

Puspose

To finance applicants for earnest money for booking of

36

residential plots/built up houses to be sold by Govt. housing

agencies such as Urban Development Authorities like

HUDA/PUDA and State/UT Housing Boards etc.

Eligibility criteria

Individuals above 21 years of age with a steady source of

income with capacity of repayment.

Loan amount

100% of applicable money, subject to maximum of Rs. 10

Lacs

Repayment

In case of unsuccessful applicants:

On receipt of refund from the concerned authority.

In case of successful applicants:

Lumsum repayment of the loan.

If the applicant avails regular housing loan from us for

constructions on the plot allotted or for purchase of plot

under SBP-Realty, the loan may be paid in lump sum out of

the proceeds of the SBP-Housing / Realty loan.

Interst rate per

annum 4.50% above Base Rate (Base Rate is 10.50% w.e.f.

17.08.2011)

Processing fee

0.50% of the loan amount minimum Rs. 100/-

Loan available At all branches of state bank of patiala

SBP GYAN JOYTI – EDUCATION LOAN SCHEME

Puspose To provide financial assistance to deserving and meritorious

student for Pursuing higher studies in India or abroad.

37

Eligibility criteria

Should be an Indian.National Secured admission to

professional/ technical courses through Entrance Test/

Selection process secured admission to foreign

university/Institution

Loan amount

Need based finance subject to repaying capacity of

the parents/students with margin and the following

ceilings.

Studies in India – Max Rs.10 lacs

Studies abroad – Max. Rs.20 lacs.

Repayment After completion of mortatorium period . loan should be

repaid in 5-7 years

Interst rate per

annum 4.50% above Base Rate (Base Rate is 10.50% w.e.f.

17.08.2011)

Processing fee

0.50% of the loan amount minimum Rs. 100/-

Loan available At all branches of state bank of Patiala

SBP-PERSONAL LOAN

Puspose General-purpose loan for individuals for meeting their

38

varying needs.

Minimum

Monthly

Income

Rs. 6000/- per month for employees/ pensioners and

Rs. 60000/- p.a. for professionals and self employed

individuals as per latest income tax return.

Loan limit

Rs.25000 to Rs. 7.50 lacs

Repayment

Up to 60 months in equated monthly instalments

Interst rate per

annum 17.25%

Processing fee

1.00% of the loan amount + service tax

Loan available At all branches of state bank of Patiala

CHAPTER III

COOPERATIVE BANKING INTRODUCTION

39

Cooperative banking is retail and commercial banking organized on a cooperative basis.

Cooperative banking institutions take deposits and lend money in most parts of the world. The

Cooperative banks have a history of almost 100 years. The Cooperative banks are an important

constituent of the Indian Financial System, judged by the role assigned to them, the expectations

they are supposed to fulfill, their number, and the number of offices they operate. The

cooperative movement originated in the West, but the importance that such banks have assumed

in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to

be important even today, and their business in the urban areas also has increased phenomenally

in recent years mainly due to the sharp increase in the number of primary cooperative banks.

While the cooperative banks in rural areas mainly finance agricultural based activities including

farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and

self-employment driven activities, the co-operative banks in urban areas mainly finance various

categories of people for self-employment, industries, small scale units, home finance, consumer

finance, personal finance, etc.

DEFINITION

A cooperative bank is a financial entity which belongs to its members, who are at the same time

the owners and the customers of their bank.

STRUCTURE OF COOPERATIVE BANKING

40

RBI

NABARD

SCBs SLDBs UCBs

CCBs CLDBs

PLDBs BRANCHES OF SLDBs

PACS

SCBs: State Cooperative Banks

SLDBs: State Land Development Banks

UCBs: Urban Cooperative Banks

CCBs: Central Cooperative Banks

CLDBs: Central Land Development Banks

PACS: Primary Agricultural Credit Societies

PLDBs: Primary Land Development Banks

41

TYPES OF COOPERATIVE BANKS

1) STATE COOPERATIVE BANKS (SCBs)

State cooperative banks are a federation of central cooperative banks and act as a

watchdog of the cooperative banking structure in the state. Its funds are obtained from share

capital, deposits, loans and overdrafts from the Reserve Bank of India. State cooperative banks

lend money to central cooperative banks and primary societies and not directly to farmers.

2) CENTRAL COOPERATIVE BANKS (CCBs)

Central cooperative banks are the federations of primary credit societies in a district and

are of two types – those having a membership of primary societies only and those having a

membership of societies as well as individuals. The funds of the bank consist of share capital,

deposits, loans and overdrafts from state cooperative banks and joint stocks. These banks finance

member societies within the limits of the borrowing capacity of societies.

3) PRIMARY AGRICULTURAL CREDIT SOCIETIES (PACS)

Cooperatives have played a major role in the supply of finance to agricultural sector for

the development of land, irrigation system and for its mechanization. The agricultural

cooperative credit in Punjab is divided into two sectors mainly, one dealing with short and

medium-term credit and the other with the long-term credit. The long term credit is awarded

from the Punjab State Cooperative Land Mortgage Banks at the apex and the Primary

Cooperative Land Mortgage Banks at district/tehsil level.

4) PRIMARY COOPERATIVE BANKS (PCBs)

They are non-agricultural societies. These are of two types: Urban cooperative banks and

Salary earners’ societies. Development of PCBs is looked after by the RBI. The RBI and IDBI

offer them concessional refinance facility on a selected basis. They operate in urban and semi-

urban areas. They provide housing finance and loans and advances for various purposes such as

petty trade and industry.

MISSION:-   Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency

and structural reforms.

42

VALUES & PRINCIPLES:-  

"Cooperatives"   A cooperative is an system voluntarily to meet

their common economic, social and cultural needs and aspirations through a jointly-owned and

democratically controlled enterprise.   

PRINCIPLES:-  

Voluntary and open membership :     Cooperatives and voluntary organisations, open to all

persons able to use their services and willing to accept the responsibilities of membership,

without social , racial , political and religious discrimination.  

Democratic member Control :      Cooperatives are democratic organisations controlled by

their members , who actively participate in setting their policies and making

decisions . Men and women serving as elected representatives are accountable to the

membership.  

Members' Economic Participation :      Members contribute equitably to,

and democratically control, the capital of their cooper-ative. At least partially that capital is

usually the common property of the cooperatives. Members usually receive limited

compensation, if any, on Capital Subscribed as a condition of membership.Members allocate

surpluses for any or all of the following purposes ::       1.Developing their cooperatives possibly

by setting up reserves, part of which at    least would be indivisible       2.Benefiting

the members in proportion to their transaction with the cooperative    and

supporting other activities approved by the membership  

Autonomy and Independence:     Cooperatives are autonomous , self-help

organisations controlled by their members . If they enter into agreements with other

organisations, including governments, or raise capital from external sources,they do so on terms

that ensure democratic control by their members and maintain their cooperatives autonomy.

Education, Training and Information:    Cooperatives provide Education and Training for

their members, Managers and employees so they can contribute effectively to the development of

their cooperatives.  

43

Cooperation among Cooperatives :       Cooperatives serve their members

most effectively and strengthen the cooperatives movement by working together through Local,

National, Regional and International structures.  

Concern for Community :      Cooperatives work for the sustainable development of

their communities through policies approved by their members. There motto is to make the

progress line go higher and higher.

DIFFICULTIES FACED BY COOPERATIVE

BANKS IN RURAL AREAS

1) Slow progress: The progress of co-operative banks is not up to the expectation and is slow

when comparing other type of banks because of many restrictions on their operations.

2) Limited scope of investment: The main objective of co-operative banks is to provide credit

facilities to the poor people i.e., to small and marginal farmers and other weaker sections. They

were originally having limited scope to invest their surplus funds freely.

3) Delay in decision making: The co-operative banks directly or indirectly by various agencies

i.e., NABARD, RBI. Thus it takes long time to take decision on some important issues. This, in

turn affects the progress of co-operative banks.

4) Lack of training facilities: Generally the staff of co-operative banks is urban oriented and

they may not know the problems and conditions of rural areas. Lack of training facility

concerning these areas also affects the growth of co-operative banks.

5) Poor recovery rate: The recovery performance of the co-operative banks is not up to the

mark. the reason for poor recovery of loans and mounting overdue are; inadequate supervision

and follow up action to assess the end use of credit by co-operative banks due to inadequate staff

in banks, poor Identification of beneficiaries, inadequate generation of output and income by the

beneficiaries, poor marketing facilities.

6) Lack of local participation: Rural co-operative banks have not received sufficient local

participation. The cooperative banks have been thrust upon the rural people from above without

involving local people in its operation and management. In this connection, it is suggested that

44

knowledgeable persons in the rural areas need be associated with the management of co-

operative banks.

7) Lack of co-ordination: There is lack of proper co-ordination between co-operative banks and

other institutional financing agencies like commercial banks and RRBs. Also, there is inadequate

co-ordination between co-operative banks and other developmental agencies operating in rural

areas. This has hampered the progress of co-operative banks.

8) Poor development of rural areas: In spite of several efforts made during the course o

development plans to promote the development of rural areas, it has not taken place in a

significant way. The areas, at present lack economic infra- structures like; facilities of marketing

storage and distribution of inputs. Besides, social infrastructure like; schools, medical facilities.

As a result, co-operative banks find it extremely difficult to operate in such areas.

DEPOSIT SCHEMES INTEREST RATES

Interest Rates on Deposits with effect from 30th july, 2010

Period Below Rs.1.00 Cr. Rs.1.00 Cr. & above

7 Days to 14 Days 3.00% 3.00%

15 days to 45 days 3.50% 3.50%

46 Days to 90 Days 4.25% 3.50%

91 Days to 179 Days 5.50% 4.25%

180 to <1 year 6.50% 5.50%

1 year to < 2 years 7.00% 6.25%

2 year to < 5 years 7.25% 6.25%

5 years and above 7.50% 6.25%

*Interest Rate @ 0.50% over and above these rates to the Senior Citizens will be

admissible on single Fixed Deposit Receipt of Rs.5000/- and above for one year and

above.

45

CHAPTER IV

PROJECT

COMPARATIVE STUDY OF THE CUSTOMER PERCEPTION OF THE

SBOP AND COOPERATIVE BANK

PROJECT OVERVIEW

In today competitive environment where corporate are constantly searching for ways to

keep a float and sustain the market share, they have to find newer and better ways to satisfy the

customer needs. To run any organization successfully the management needs to think always for

the betterment of their service and product, every time there is a chance of improvement in the

functioning of every organization specially when we talk about the banking sector in past there is

very less or no competition in the market and the banks has no pressure to provide better

facilities to the peoples but in recent years the competition is increased due to the entry of the

private banks and other money lending units. Considering this the state cooperative banks need

to be more careful and needs to take such steps which favors hem to stay ahead in the market.

This has always been the motto of Cooperative Banks and in order to achieve this, I was

entrusted in the dual task of doing a comparison of customer perception analysis of the

Cooperative bank branch and the SBOP branch in the village Daun Kalan, Patiala.

RATIONALE OF THE STUDY

Banking operations are becoming increasingly customer dictated. The ability of banks to

offer clients access to several markets for different classes of financial instruments has become a

valuable competitive edge. By going with the topic they can identify their own strengths and

46

weaknesses, where they stand in comparison to their competitors, chart out path future progress

and improvement. This comparison helps to promote an increased focus on customer outcomes

and stimulate improvements in the work practices and processes used within the bank and

outside. With better understanding of customers' perceptions, banks can determine the actions

required to meet the customers' needs.

OBJECTIVES OF THE STUDY

1 To have a comparison between the Customer Perception of the Village Daun Kalan Branches

of Patiala Central Cooperative Bank and State Bank of Patiala.

2 To compare the different factors of the banks which influence the customer perception.

3 To study and understand the factors which motivate the customers while going for Banking

Services

4 To understand and compare the level of Advertisement impact on customers followed by the

both banks

5 To study that if customer prefers the computerized banking or not.

6 To compare that if there is influence of image or brand of the bank on the customer

7 To have a comparison that if the customer is differing in his perception for a Government

oriented bank and private Bank.

47

CHAPTER V

RESEARCH METHODOLOGY

Research Problem

Comparison of the customer perception of the State Bank of Patiala and Cooperative

Bank .

Research Design

Research Design is exploratory and descriptive which helps me to explore the factors

influencing the perception of the customers and to describe the gap between the banks at various

levels.

Sampling Design

The study aimed to survey 100 samples who are the customers, visiting in the banks. 50

respondents are of the customers of the SBOP and the other 50 are the customers of the

Cooperative Bank. Sampling Design was such to have a comparison of the Customer Perception

of the both banks. The respondents were selected on the basis of convenience sampling.

Data Collection:

Both primary and secondary data have been collected for meeting the objectives of the

current study.

For the purpose of the collection of the primary data, personal interview of the

respondents was conducted. An unbiased, undisguised structured questionnaire was prepared

which was administered to the respondent for the purpose of getting the information. With the

reference of certain previously carried studies, certain statements for getting out the customer

perception were formulated and these were clubbed together to formulate the questionnaire

having two parts: First part was having 10 general questions in addition to the demographic

details and the second part dealt with the 10 elements of the bank showing the customer level of

preference.

48

For the purpose of secondary data, secondary sources of information like magazines,

newspapers, journals; studies conducted in past etc. have been referred. The main sources of

secondary data in the study

1. Banks’ Detail Books

2. Websites

3. Books

Analysis Techniques

The questionnaire is having the alternative choices. Questions having alternative choices

have been analyzed by taking percentages and by the use of Likert scaling.

Scope of the study

The scope of the study is limited to the customers visiting to the i.o.c.branch of the State

bank of Patiala and the customer visiting to cooperative bank branch in Mansa. Present study has

been restricted to time period from June 2012 to July 2012.

49

CHAPTER VI

DATA ANALYSIS AND INTERPRETATION

6.1 Demographic Analysis of the Customers based on occupation.

Option no. of

respondents in

sbop

percentage no. of

respondents in

coopetaive bank

Percentage

farmer 20 40% 25 50%

businessman 15 30% 10 20%

Salaried

employe

10 20% 12 24%

other 5 10% 3 6%

farmer businessman Salaried employee

other0

5

10

15

20

25

30

35

40

45

50

sbop cooperative bank

Analysis And Interpretation - Out of the respondent customers of Cooperative Bank and SBOP

Majority is of farmers. Cooperative bank has more farmer customers in comparison with SBOP

because it is mainly a rural bank. It doesn’t mean that it has less percentage of customers of the

businessman and salaried employees. Businessman and the salaried employees are more among

the respondents of the SBOP. Other customers are students or housewives.

50

6.2 Type of account

Option no. of respondents

in sbop

percentage no. of

respondents in

coopetaive bank

Percentage

Savings 24 48% 20 40%

FD 14 28% 15 30%

Both 10 20% 10 20%

Other 2 4% 5 10%

Savings FD Both Other 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

sbopcooperative bank

Analysis and Interpretation – The comparison of the type of accounts which the respondents

are having in their respective banks, have little difference. The respondent customers of

Cooperative Bank are having Savings, Fixed Deposit Accounts. Comparatively Savings

percentage is more and FD percentage is less in SBOP. Perhaps the rate of interest offered can be

the reason of this minor difference.

51

6.3 No. of Respondents who have ever taken any loan from the bank

Option no. of respondents

in sbop

percentage no. of respondents

in coopetaive bank

percentage

Yes 27 54% 32 64%

No 23 46% 18 36%

yes no0%

10%

20%

30%

40%

50%

60%

70%

sbopcooperative bank

Analysis and Interpretation – Majority of the respondents of the Cooperative Bank have taken

loan from the bank. On the other side of there is approx equal number of customers of the SBOP

have taken loan and who have not. They only are having deposit account in the bank. The reason

may be the Cooperative Bank as a main rural lending bank.

52

6.4 Information source of the schemes and services of the bank

Option no. of respondents

in sbop

percentage no. of respondents

in coopetaive bank

percentage

Personal visit 19 38% 26 52%

Advertisement 13 26% 5 10%

Word of mouth 10 20% 12 24%

other 8 16% 7 14%

Personal visit Advertisement Word of mouth other0%

10%

20%

30%

40%

50%

60%

sbopcooperative bank

Analysis and Interpretation - Data shows that Majority of the respondents from the

Cooperative Bank and SBOP respectively, come to know about the schemes and services of the

bank by visiting personally. Cooperative Bank is lacking in its advertisement in comparison to

SBOP. Word of Mouth is also an information source. Reason may be interpreted that branches of

the bank do not pay much heed to advertisement and also the customers prefer to visit the bank

personally for the detail of banking services offered.

53

6.5 Type of rate of interest preferred

Option no. of respondents

in sbop

percentage no. of respondents

in coopetaive bank

percentage

Yearly 2 4% 4 8%

Half yearly 18 36% 24 48%

monthly 30 60% 22 44%

Yearly Half yearly monthly0%

10%

20%

30%

40%

50%

60%

sbopcooperative bank

Analysis and Interpretation – Most of the customers of Cooperative Bank are from

agricultural background so that half yearly rate of interest is preferred, because of their crop

cycle. Salaried employee and businessmen prefer to pay monthly Rate of interest.

54

6.6 Appreciation for being a good Customer

Option no. of

respondents in

sbop

percentage no. of

respondents in

coopetaive bank

percentage

Yes 36 72% 15 30%

No 14 28% 35 70%

yes no0%

10%

20%

30%

40%

50%

60%

70%

80%

sbopcooperative bank

Analysis and Interpretation – Less number of the respondents from the Cooperative Bank says

that they have a received positive appreciation from the bank for being a good customer, while

the majority denies it. Looking at the data of SBOP respondents the percentage is however

opposite, Majority is favoring. There is set procedure in the bank that if you are a good customer

sthe interest but there is no such procedure in Cooperative Bank.

55

6.7 (A) Future Preferable bank

option No. of respondents in sbop Percentage

cooperative 13 26%

Stick to same 27 54%

Some other 10 20%

cooperative Stick to same Some other0%

10%

20%

30%

40%

50%

60%

sbop

sbop

6.7 (B) Future Preferable bank

option No. of respondents in cooperative bank Percentage

Sbop 17 34%

Stick to same 23 46%

Some other 10 20%

56

Sbop Stick to same Some other0%5%

10%15%20%25%30%35%40%45%50%

cooperative bank

cooperative bank

Analysis and Interpretation - By the experience near about half of the respondents of the

Cooperative bank say that they will also stick to the same bank for same requirement in future,

while other majority wants to shift to SBOP and some other bank. The data analysis of SBOP

shows that most of respondents want to remain with SBOP. While other want to go for

Cooperative Bank and to shift for some other bank. The reason may be the requirement of the

customer, schemes offered, rate of interest offered and also the personal attachment.

57

6.8 Motivational Factors

Option no. of respondents

in sbop

percentage no. of

respondents in

coopetaive bank

percentage

Interst 18 36% 12 24%

Schemes 15 30% 23 46%

Popularity 7 14% 4 8%

All 10 18% 9 18%

Other 0 2% 2 4%

Interst Schemes Popularity All Other 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

sbopcooperative bank

Analysis and Interpretation - From the survey it was found that motivational factor, for opting

for the banking service, of the most of the respondents of Cooperative bank is Schemes offered

by the bank while other factors are like rate of interest, popularity etc. Data interpretation of the

SBOP shows that maximum percentage is with rate of interest, while other factors are schemes

and popularity. Almost equal number considers these all factors in both of the banks.

58

6.9 Influence of image or brand of the bank on the customers

Option no. of respondents

in sbop

percentage no. of

respondents in

coopetaive bank

Percentage

Agree 39 78% 28 56%

Disagree 11 22% 22 44%

agree disagree0%

10%

20%

30%

40%

50%

60%

70%

80%

sbopcooperative bank

Analysis and Interpretation – Majority of the respondents from SBOP and Cooperative bank

agree that image or name of the bank has its influence on customers. Customers consider the

brand of the bank while going for the banking. It can be interpreted that it might influence the

decision of the customers and prospects.

59

6.10 Essentiality of computerized Banking

Option no. of

respondents

in sbop

percentage no. of

respondents in

coopetaive bank

Percentage

Strongly disagree 0 0% 0 0%

Somewhat disagree 0 0% 2 4%

neutral 10 20% 11 22%

Somewhat Agree 15 30% 18 36%

Strongly agree 25 50% 19 38%

strongly disagree

somewhat disagree

neutral somewhat agree

strongly agree0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

sbopcooperative bank

Analysis and Interpretation – Major part of the respondents from the cooperative bank agree

and strongly agree to the need of computerized system in the bank. By the response of SBOP

customers, majority of response agree and strongly agree to that computerized system is essential

for modern banking. Cooperative Bank is still using the manual books for accounts instead of

computerized banking as it is in SBOP.

60

6.11 Customer differs in his perception for a Government Bank & private

bank

Option no. of

respondents

in sbop

percentage no. of respondents

in coopetaive bank

Percentage

Strongly disagree 0 0% 0 0%

Somewhat disagree 8 16% 5 10%

neutral 14 28% 16 32%

Somewhat Agree 22 44% 24 48%

Strongly agree 6 12% 5 10%

strongly disagree

somewhat disagree

neutral somewhat agree

strongly agree0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

sbopcooperative bank

Analysis and Interpretation – More than half of the respondents from the cooperative bank

agree that customer differ in his perception for a govt. bank and private bank. From the response

of SBOP customers, it may be interpreted majority also agree to it. The reason may be

interpreted as the customer feel that there is a genuine difference between a Govt. oriented bank

and a private bank regarding the services, rate of interest, infrastructure and other factors.

61

LEVEL OF PREFERENCE

Range

10 Statements and 50 respondents of each bank

Score

Max. Score = 5*50 = 250 (strongly agree)

Avg. Score = 3*50 = 150 (neutral)

Min. Score = 1*50 = 50 (strongly disagree)

Sr. No Basis of Comparison Scores

Cooperative SBOP

1 Schemes Offered 193 186

2 Rate of Interest 177 186

3 Loan Passing & Repayment 182 179

4 Flexibility of Schemes 158 170

5 Transparency 154 170

6 Number of Staff 118 194

7 Customer Dealing 149 179

8 Bank Environment 123 202

9 Advertisement 119 194

10 Bank Image 153 182

Analysis and Interpretation

62

1. Schemes Offered: There is favorable response for the schemes offered by both of the

banks. However it is more in case of Cooperative Bank because it is established for

mainly the rural and agriculture services. So the village customer is more satisfied with

the schemes offered by this bank.

2. Rate of Interest: Rate of Interest is also generating favorable response in both of the

banks. However it is less favorable in case of Cooperative Bank. May be the customer

feels that the rate of interest is less charged or the structure of rate of interest is more

convenient in the SBOP.

3. Loan Passing and repayment: Survey shows that the loan passing and the repayment

process is generating almost equal response in both of the banks. This process is

favorable in both of the banks. May be the banks are adopting such a procedure where

customer feels minimum harassment.

4. Flexibility of Schemes: Data analysis shows that SBOP customers are more favorable to

the flexibility of schemes which they avail than in case of Cooperative bank.

5. Transparency: Research shows that both banks are having more than average response

regarding the statement. But there is gap in the customer preference in both of the banks.

SBOP is having more favorable response than Cooperative bank.

6. Number of Staff: Data analysis shows that the scoring of the Cooperative Bank

respondents is much low than the average response but it is much higher in SBOP.

Reason is that the Cooperative Bank is only having 3 staff members including branch

manager for the service of customers. On the other side the number is seven in case of

SBOP.

7. Customer Dealing: Cooperative Bank is also lacking in the customer dealing in

comparison to SBOP, as scored by the respondents. The reason may be interpreted as the

63

staff of the cooperative bank is less trained in comparison with the SBOP. Moreover the

manual working, due to lack of computerized system, also affects the customer dealing.

8. Bank Environment: Survey analysis shows Customer is negatively scoring the banking

environment in the cooperative bank because of less infrastructure facilities, the shortage

of staff, the non-availability of computerized system, the staff behavior. SBOP is having

positive score in this respect because of all the above stated factors and a fully air

conditioned branch.

9. Advertisement: Survey analysis shows that majority of the respondents from the

cooperative bank disagree with the advertisement campaign of the bank because most of

the customers come to know about the schemes by the bank through their personal visit.

The score given is the clear evidence of it. The respondents of the SBOP are favorable to

the advertisement by the bank.

10. Bank Image: Cooperative has been given average score regarding its bank image while

it is favorable in case of SBOP. The reason may be concluded the scam did by the

previous branch manager of Cooperative Bank. The last branch manager has been

accused of manipulating certain amount of loan. This had its influence on the bank

image.

CHAPTER VII

64

FINDINGS OF THE STUDY

3. Majority of the customers of the cooperative bank and SBOP belong to agricultural

background.

4. The percentage of respondents who have taken loan from Cooperative is more in

comparison with SBOP.

5. This is shown by the research that personal visit of customers is the main source of

information for knowing the bank schemes.

6. Most of the customers of the Cooperative Bank prefer to pay half yearly interest rate,

while the salaried employees prefer to pay the interest monthly, this is also same in the

case of SBOP.

7. Majority of the respondents do not respondents in Cooperative Bank do not receive any

appreciation for being a good customer. But things are opposite in case of SBOP.

8. About the Future Bank Service, Majority of the respondents of the customers of SBOP

want to stick with SBOP as in comparison with the Cooperative Bank.

9. Analysis shows that Schemes offered by the banks is the main motivational factor for the

respondents of Cooperative Bank and the interest rate is the main motivational factor in

case of SBOP.

10. Majority of the both respondents from the both admits that image or name or brand of the

bank do influence the customer.

11. Essentiality of computerized banking is agreed by the respondents of the both banks.

12. Majority of respondents from both the banks agree that whether it is a Government Bank

or Private Bank, customer perception is differing about the both type of banks.

13. The comparison between the schemes offered by the both banks reveals that Schemes

offered by Cooperative Bank, being a rural lending bank, are little bit more preferred than

SBOP.

14. The comparison between the interest rate offered by the both banks shows that interest

rates of SBOP are little bit more attractive than the Cooperative Bank.

15. The customers’ perception about the loan passing and its repayment process is almost

same in the both of the banks.

65

16. The percentage of different accounts having the customers of the two banks is relatively

same.

17. Flexibility of schemes offered and transparency of the customer related processes is more

satisfactory in the SBOP in comparison with Cooperative Bank.

18. The branch of the Cooperative Bank is lacking in its staff number. While the branch of

SBOP is having sufficient number of staff members according to perception of its

customers.

19. Customer service and dealing is also far behind the point in the Cooperative bank as it is

satisfactory in SBOP.

20. Customers do not agree with the Cooperative bank environment. Comparatively, SBOP

branch has a fully satisfied environment according to the perception of the customer.

21. Mainly Cooperative Bank is lacking in advertisement at local level. On the other side

SBOP advertisement campaign makes agree its customers.

22. The bank image of Cooperative Bank is little bit lacking in comparison with SBOP, as

going with the response of the customers.

RECOMMENDATION AND SUGGESTIONS

1. More mass awareness campaigns should be organized in order to enhance market share

of bank. So Bank should concentrate on its advertisement itself.

2. Bank should refocus on its interest rate as responded by people. Periodic review of the

interest rate should be done.

3. There should be computerized system in the bank as it will reduce the time wastage of

manual work and will lead to the better performance of the bank.

4. Training of the employees should be there to meet the needs of the time.

5. Proper posting of the staff should be done.

6. Customer’s satisfaction must be the top priority of the bank.

66

7. Maximum practical exposure should be provided to the job trainees so that they may

handle the various enquiries of customer effectively.

8. Communication gap within the bank and with the head-office should be reduced.

9. Infrastructure facilities should be provided to the branch of Cooperative Bank, as it is

catering to the 5-6 near by villages.

10. Banks is also advised to have proper internal control measures for monitoring its

functions and transactions.

LIMITATIONS OF THE STUDY

1 Some respondents were hesitant in providing complete information.

2 The findings of this study are based on the expressed opinion of the respondents.

3 Difficulty was faced in getting the responses to various questions because the customers

could not devote enough time to us and the communication problem was there.

4 This study only relates to one organization, so conclusions drawn may not be finding its

utility in all the other banks.

5 Even the employees of the bank hesitated to give the complete & accurate data.

CONCLUSION

67

The project was undertaken to analyze and compare the customer perception of the two

banks one is Cooperative Bank and other is State Bank of Patiala. The study concludes that State

Bank of Patiala is providing various services to people . All functions performed by bank are

computerized . core banking solutions like internet banking, ATMs, mobile banking helps the

people at a very large scale . bank provide various facilities to its customers. Loans are provided

to people at reasonable rates . in spite of this It is lacking at various elements, particularly at the

branch levels, which reveals the edge of private sector banks over the SBOP, the lines at which

the bank is lacking behind. Indiscipline and lack of commitment in these banks make people’s

trust in the cooperative sector a casualty. People are still unaware of the services provided by the

state bank of patiala due to lack of advertisement.

There is a need to analyze and pick up early warning signals. A change is needed today in

the state bank of patiala which is built on confidence in human capital - the most important of all

resources - in commitment, creativity and innovation brought about by proactive management,

membership and employees. The ability to capture knowledge and wisdom gives state bank their

competitive advantage. A prerequisite is that participants from all parts of a cooperative

organization know and understand its purpose, core values and visions.

In this way, by keeping in mind the certain shortcomings, appropriate measures to

overcome them should be adopted. So that the real purpose of the state bank of Patiala must be

realized with a competitive advantage and the gap between the customer perception of the state

bank of patiala and the other private and public sector bank, i.e. cooperative bank can be

reduced.

BIBLIOGRAPHY

68

a. Books:

i. Kothari C.R.(2007), “Research Methodology”; revised second edition; pages 71-

76, 84-85, 100-102

b. Web Pages:

1. http://en.wikipedia.org/wiki/Bank

2. http://en.wikipedia.org/wiki/Bank#Types_of_banks

3. http://www.sbp.co.in/aboutus.asp

4. http://www.sbp.co.in/boardofdirectors.asp

5. www.sbp.co.in/top-management.asp

6. http://www.sbp.co.in/highlights.asp

7. http://www.sbp.co.in/personal-banking.asp

8. http://www.sbp.co.in/agri_schemes.asp

9. www.sbp.co.in/financial_literacy.asp

10. http://www.sbp.co.in/cross_selling/cross_selling_forms.asp

11. http://www.sbp.co.in/personalbaking/sb-star-account.pdf

12. http://www.sbp.co.in/personalbaking/sbp_236.pdf

13. http://www.sbp.co.in/personalbaking/01sbphome_loan.pdf

14. http://www.sbp.co.in/personalbaking/01sbphome_loan.pdf

15. http://www.sbp.co.in/personalbaking/01sbphome_loan.pdf

16. http://www.sbp.co.in/personalbaking/04sbp_car_loan_newvehicles.pdf

17. http://www.sbp.co.in/personalbaking/04sbp_car_loan_newvehicles.pdf

18. http://www.sbp.co.in/personalbaking/04sbp_car_loan_newvehicles.pdf

19. http://www.sbp.co.in/personalbaking/08sbp_loan_to_pensioner.pdf

20. http://www.sbp.co.in/personalbaking/11sbp_gam_niwas_scheme_forfinancing_rural_housing.pdf

21. http://www.sbp.co.in/personalbaking/11sbp_gam_niwas_scheme_forfinancing_rural_housing.pdf

22. http://www.sbp.co.in/MainInterestRates.aspx

23. http://www.sbp.co.in/rates%20english.pdf

24. http://pbcooperatives.gov.in/PSCB.htm

25. http://www.pscb.in/index.php?mod=interest_rate&opt=Deposit

26. http://www.pscb.in/index.php?mod=interest_rate&opt=Loans

69

ANNEXURE

Dear respondent,

I would be extremely thankful if you spare some time to answer the following questions.

All the facts disclosed by you will be used for academic purpose only.

Personal details:

a. Name: ______________________________

b. Age: _____

c. Gender: Male Female

d. Occupation: Farmer Businessman Salaried Employee Other

1. Which type of account do you have? Please tick. SB FD Both other

2. Have you taken ever any loan from this bank? Yes No

3. How do you come to know about the schemes and services of the bank?

Personal Visit Advertisement Word of Mouth Other

4. Which type of rate of interest do you prefer, offered? Yearly Half yearly Monthly

5. Do you avail any appreciation from bank for being a good customer? Yes No

6. In future service of which bank will you prefer?

SBOP Cooperative Stick to same some other

70

7. What factors motivate you while going for a particular banking service?

Interest rate Schemes & terms Popularity of bank All Other

8. Do you agree that image or brand of the bank has its influence on the customers?

Agree Disagree

9. Do you think that computerized Banking is the essential of modern banks?

Strongly Disagree Somewhat Disagree Neutral

Somewhat Agree Strongly Agree

10. Do you think that customer differ in his perception for a Government Bank & private bank?

Strongly Disagree Somewhat Disagree Neutral

Somewhat Agree Strongly Agree

11. Indicate your level of preference for the following statements regarding the bank.

Schemes Offered

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Interest Rate Offered

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Loan Passing & Repayment Process

Strongly Somewhat Neutral Somewhat Agree Strongly Agree

71

Disagree Disagree

Flexibility of Schemes

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Transparency of the process

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Number of Staff Members

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Customer Dealing

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Bank environment

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

72

Advertisement

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Bank Image

Strongly

Disagree

Somewhat

Disagree

Neutral Somewhat Agree Strongly Agree

Thanks for Your Cooperation

73