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ACKNOWLEDGEMENT
It is imperative for successful completion of a task to complement those who made that
task work.
I sincerely bow my head and thank the almighty for bestowing his blessings on me. This
is utmost pleasure of mine, to show my heartfelt gratitude to those individuals who have
given their considerate support and guidance. This project would not have been
possible without them.
I am falling short of words to express my sincere thanks to the management of Punjab
State Co-operative Bank, Sangrur for providing me an opportunity to undergo
training in their reputed organization. I am deeply motivated and encouraged after
working with the very efficient and cooperative staff of PSCB.
I am highly indebted to my faculty members of School of Govt. Ranbir College Sangrur
for helping me in various ways.
My sincere regards to my friends who worked with me all through the project and helped
me in the noble accomplishment.
I thank my parents who have always been my driving force to work hard and keep the
learning process continuous and never ending.
TABLE OF CONTENTS
SR.NO
1.
2.
3
4.
5.
6.
7.
8.
9.
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12.
13.
14.
15.
TOPIC
PAGE NO.
Certificate
Acknowledgement
List of tabs
Abstract/Summary
INTRODUCTION
Industry
Company Background
Project Detail
7
13
37
Research Methodology
Research Design
Literature Review
Chapterisation
Data Analysis and Interpretation
Limitations
Conclusions
Recommendations
Bibliography
Annexures
38
39
40
45
46
58
58
59
60
61
2
3
5
6
LIST OF TABS/FIGURES
SRNO.
TOPIC
PAGE NO.
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2.
3.
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5.
6.
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9
15
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23
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8.
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SUMMARY
The Cooperative Sector has been playing a significant role in the area of disbursing
agricultural credit, providing market support to farmers, distribution of agricultural inputs
and imparting cooperative education and training etc. The basic objective of the
Cooperation Division is to design long term and short term strategies for reducing
economic disparities between the downtrodden rural people and the rural rich as well as
regional imbalances including rural and urban differences.
In todays competitive environment where corporates are constantly searching for ways
to keep a float and sustain the market share, they have to find newer and better ways to
satisfy customer needs. To run any organization successfully the management needs to
think always for the betterment of their service and product.
Banking business is now expanding three folds and is facing tough competition. The
Private sector along with the public sector is performing high on scale and ruling the
markets. Adding to the glory, there are foreign banks that have also captured a
commendable market share.
Considering this, the State Cooperative Banks need to take such steps which assist
them in marching ahead in the race and survival of the fittest. This has always been the
motto of Cooperative Banks and in order to achieve this, we are hereby analyzing the
level of satisfaction of PSCB customers and their expectations.
WHAT IS A BANK
Bank is a financial institution that undertakes the banking activity that is, it accepts
deposits and then lends same to earn certain profit.
COMMERCIAL
BANKS
COOPERATIVE
BANKS
CENTRAL COOPERATIVE
BANKS
STATE
COOPERATIVE
BANKS
PRIMARY
AGRICULTURAL
CREDIT
SOCITIES
UNSCHE
DULED
BANKS
PUBLIC
SECTOR
SBI &
ASSOCIAT
ES
PRIVATE
SECTOR
FOREIGN
BANKS
OTHER
NATIONALISE
D BANKS
REGIONA
L RURAL
BANKS
TYPES OF BANKS
The banking industry can be divided into following sectors, based on the clientele
served and products and services offered:
1. Retail Banks
2. Commercial banks
Public Banks
Private Banks
3.
4.
5.
6.
Cooperative banks
Investment Banks
Specialized banks
Central banks
Retail Banks:
Retail banks provide basic banking services to individual consumers. Examples include
savings banks, savings and loan associations, and recurring and fixed deposits.
Products and services include safe deposit boxes, checking and savings accounting,
certificates of deposit (CDs), mortgages, personal, consumer and car loans.
Commercial Banks:
Banking means accepting deposits of money from the public for the purpose of lending
or investment. Commercial Banks provide financial services to businesses, including
credit and debit cards, bank accounts, deposits and loans, and secured and unsecured
loans. Due to deregulation, commercial banks are also competing more with investment
banks in money market operations, bond underwriting, and financial advisory work.
Commercial banks in modern capitalist societies act as financial intermediaries, raising
funds from depositors and lending the same funds to borrowers. The depositors claims
against the bank, their deposits, are liquid, meaning banks are expected to redeem
deposits on demand, instantly.
Banks claims against their borrowers are much less liquid, giving borrowers a much
longer span of time to repay money owed banks. Because a bank cannot immediately
10
reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up on
a given day to withdraw all their money.
THERE ARE TWO TYPES OF COMMERCIAL BANKS, PUBLIC SECTOR AND
PRIVATE SECTOR BANKS.
Public Sector Banks:
Public sectors banks are those in which the government has a major stake and they
usually need to emphasize on social objectives than on profitability.
Private sector banks:
Private sector banks are owned, managed and controlled by private promoters and they
are free to operate as per market forces.
Investment Banks:
An investment bank is a financial institution that assists individuals, corporations and
governments in raising capital by underwriting and/or acting as the client's agent in the
issuance of securities. An investment bank may also assist companies involved in
mergers and acquisitions, and provide ancillary services such as market making, trading
of derivatives, fixed income instruments, foreign exchange, commodities, and equity
securities.
Investment banks aid companies in acquiring funds and they provide advice for a wide
range of transactions. These banks also offer financial consulting services to companies
and give advice on mergers and acquisitions and management of public assets.
Cooperative Banks:
Cooperative Banks are governed by the provisions of State Cooperative Societies Act
and meant essentially for providing cheap credit to their members. It is an important
source of rural credit i.e., agricultural financing in India.
Specialized Banks:
11
Specialized banks are foreign exchange banks, industrial banks, development banks,
export-import banks catering to specific needs of these unique activities. These banks
provide financial aid to industries, heavy turnkey projects and foreign trade.
Central Banks:
Central banks are bankers banks, and these banks trace their history from the Bank of
England. They guarantee stable monetary and financial policy from country to country
and play an important role in the economy of the country. Typical functions include
implementing monetary policy, managing foreign exchange and gold reserves, making
decisions regarding official interest rates, acting as banker to the government and other
banks, and regulating and supervising the banking industry.
These banks buy government debt, have a monopoly on the issuance of paper money,
and often act as a lender of last resort to commercial banks
12
COMPANY BACKGROUND
(PUNJAB COOPERATION AT A GLANCE)
ORIGIN OF COOPERATIVE BANKS IN INDIA
Cooperative movement is quite well established in India. The first legislation on
cooperation was passed in 1904. In 1914 the Maclagen committee envisaged a three
tier structure for cooperative banking viz. Primary Agricultural Credit Societies (PACs) at
the grass root level, Central Cooperative Banks (CCBs) at the district level and State
Cooperative Banks at state level or Apex level. The first urban cooperative bank in India
was formed nearly 100 years back in Baroda.
In the beginning of 20th century, availability of credit in India, more particularly in rural
areas, was almost absent. Agricultural and related activities were starved of organized,
institutional credit. The rural folk had to depend entirely on the money lenders, who lent
often at high rate of interest.
The cooperative banks arrived in India in the beginning of 20 th Century as an official
effort to create a new type of institution based on the principles of cooperative
organization and management, suitable for problems peculiar to Indian conditions.
These banks were conceived as substitutes for money lenders, to provide timely and
adequate short term and long term institutional credit at reasonable rates of interest. In
the formative stage Cooperative Banks were Urban Cooperative Societies run on
community basis and their lending activities were restricted to meeting the credit
requirements of their members. The concept of Urban Co-operative Bank was first spelt
out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative Bank.
Provisions of Section 5(CCV) of Banking Regulation Act, 1949 (as applicable to Cooperative Societies) defined an Urban Co-operative Bank and was made applicable in
1966.
13
Cooperatives have brought both the services and resources at the doorsteps of villagers
in Punjab. These have been enthusiastically serving the people of Punjab in area such
as agriculture, housing, spinning, sugar production, weaving and dairy etc.
The performance of Cooperative Movement in Punjab is very impressive. Cooperatives
constitute the major source of institutional credit for agriculture.
Cooperatives are playing a pivotal role in socio-economic development of the State.
These are key instruments of the State to develop and sustain its rural economy, which
is primarily agrarian. The Department of Cooperation has accelerated Cooperative
movement in Punjab during the last three years
MISSION
Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency and
structural reforms.
VALUES
A Cooperative is a system voluntarily to meet their common economic, social and
cultural needs and aspirations through a jointly-owned and democratically controlled
enterprise.
14
SCBs
SLDBs
CCBs
CLDBs
PACS
15
PLDBs
UCBs
BRANCHES OF
SLDBS
16
17
Training Institutions
Regional Institute of Cooperative
Management, Sector-32 Chandigarh.
Punjab Institute of Coop. Training, Ltd;
Chandigarh.
Junior Level Training Cell (JLTC),
Chandigarh.
Agriculture Cooperative Staff Training
Institute, Jalandhar
Milkfed Training Centre, Jallandhar
18
19
MISSION
Promotion and sustenance of economic interest & providing easy finance, cost effective
and quality banking services to customer & PACs
OBJECTIVES
To serve as a balancing Centre for Cooperative societies in the State for
Cooperatives Societies in the state of Punjab registered under Cooperative
Societies Act, 1961for the time being in force.
To promote the economic interest of the member banks and cooperative
Societies in accordance with the cooperative principles and to facilitate the
development and funding of any Cooperative society registered under the said
Act.
To carry on banking and credit business
VISION
Enforce the future challenges with grit and take every possible step for the
development of our institution.
More steps will be taken to provide efficient services.
20
21
NAME OF BRANCH
Main branch-34, S.C.O. 175-187,Sector-34,CHD
Branch Office-8, S.C.O. 130-31, Sector-8C,CHD
Branch Office-10, S.C.O.19, Sector-10,C.H.D
Branch Office-17, S.C.O.17, Sector-17,C.H.D
Branch Office-20, S.C.O.34, Sector-20 C, C.H.D
Branch Office-22, S.C.O.2453,Sector-22C,C.H.D
Branch Office-27, S.C.F.3, Sector-27 D,C.H.D
Branch Office-30, S.C.O.9, Sector-30 D,C.H.D
Branch Office-32, S.C.O.378, Sector-32,C.H.D
Branch Office-35, S.C.O.451-452, Sector- 35 C,
C.H.D
Branch Office-36, S.C.O.211, Sector-36 D,C.H.D
Branch Office-37, S.C.O.392, Sector-37 C,C.H.D
Branch Office-38, S.C.O.84, Sector-38 C,C.H.D
Branch Office-40, S.C.O.232, Sector-40 D,C.H.D
Branch Office-44, S.C.O.362, Sector-44 D,C.H.D
Branch Office-47, S.C.O.60, Sector-47-D,C.H.D
Branch Office Manimajra, Motor Market, MM,
C.H.D
DATE OF OPENING
10.02.2000
01.10.1977
05.01.1994
31.08.1949
04.04.1994
15.01.1971
24.01.1976
02.03.1990
05.10.1982
06.07.1982
13.12.1993
04.05.1979
04.04.1994
11.09.1989
29.04.1992
28.12.1985
24.10.1994
18.
19.
20.
04.04.1994
23.05.1972
23.05.1972
22
200
PSCB-8
PSCB-10
PSCB-17
PSCB-20
150
PSCB-22
PSCB-27
PSCB-30
PSCB-32
100
PSCB-34
PSCB-35
PSCB-36
PSCB-37
50
PSCB-38
PSCB-40
PSCB-44
PSCB-47
0
2009-10
2009-11
2009-12
PSCB-MM
PSCB-MS
PSCB-RD
-50
-100
23
PSCB-SECTT
Any individual
Joint Account with others in the form of either or survivor, Former or Survivor
Minors
Illiterate persons
Blind person
Joint Hindu Family
Cooperative Societies, Clubs, Associations etc.
Only 30 withdrawals are allowed per half year for a savings bank account
exceeding which service charges will be levied.
Maximum limit of withdrawal form is Rs. 20,000/-
Any individual
Joint Account with others in the form of either or survivor, Former or Survivor
Minors
Illiterate persons
Blind person
Joint Hindu Family
Cooperative Societies, Clubs, Associations etc.
Minimum amount to be kept is Rs.1000/-
24
The terms and conditions regarding rate of interest and time period are
determined by bank from time to time.
4. Recurring Deposit A/c
It can be opened with certain initial deposit wherein a Depositor needs to deposit
money by way of monthly installments over a stipulated period.
The period may be 2, 24, 36, 48, 60 months etc.
On the expiry of the period, the accumulated amount along with interest is paid in
lumpsum.
All the parties are eligible for this account
The rate of interest applicable on recurring deposit will be the rate of interest
applicable on term deposit for that period
Minimum monthly installment for this account is Rs.100/-.
Maximum period is 10 years
5. Current A/c
Initial deposit of Rs.5000/-.
Eligible parties
Sole Proprietorship
Partnership firm
Club/Association
Religious institution
Government/Semi-Govt
Local bodies
6. Locker A/c
Facility of locker is available in four different sizes viz. small, medium, large and
extra large.
A prospective buyer who wants the locker facility has to have a Saving Bank
account with the bank so that annual Locker Rent can be Debited from that
Account
Lockers can be hired in individual capacity or jointly with others.
25
TARGET FOR TERM DEPOSITS FOR THR FINANCIAL YEAR APRIL 2013-MARCH
2014
100%
90%
80%
70%
30.03.2014
60%
30.12.2013
50%
30.09.2013
40%
30.06.2013
30%
20%
10%
0%
PSCB
PSCB-MM
26
Saving Bank
A/c
Saving BankNO frill A/c
Term Deposit
A/c
Term Deposit
A/c
Term Deposit
A/c
Term Deposit
A/c
Term Deposit
A/c
Period
from
Period up
to
Rate of
Rate of
interest(Public) interest(Sr.citizen)
4.00%
4.00%
4%
4%
7days
14 days
30 days
4%
4.50%
5.00%
5.50%
15days
31 days
45 days
6.50%
7.00%
46days
90 days
6.75%
7.25%
91 days
179 days
7.00%
7.50%
8.
9.
10.
11.
12.
13.
14.
Term Deposit
A/c
Term Deposit
A/c
Recurring
Deposit A/c
Current A/c
Locker A/c
Term Deposit
A/c
Term Deposit
A/c
180
<1 year
7.75%
8.25%
1year
<2years
8.75%
9.25%
4.00%
0
0
4.00%
0
0
2 years
3 years
8.50%
9.00%
3 years
And above
8.50%
9.00%
27
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment
Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin
28
Repayment Period
Collateral Security
Installment
Maximum 5 years
2 good sureties as per the satisfaction of bank
Rs.1087.00 for 5 years
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment
Loan Amount
Rate of Interest
Margin
Repayment Period
29
Any individual
To offer instant solutions relating to ocio-economic needs and
business Needs such as childrens higher education, Travel,
daughters marriage Medical emergencies etc
Maximum amount up to Rs.25.00 Lac
14%
No margin required
Maximum 6 years
Collateral Security
Installment
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Any individual
To meet financial requirement towards earnest money deposit
to book residential plot/built house of flat by Govt. Approved
Agency
As per Scheme of the Agency
As fixed by the bank
No margin required
On receipt of refund from housing board
No immovable Security is required. Only two post dated Cheque
Required
Installment
30
TARGET FOR LOANS FOR THE FINANCIAL YEAR APRIL 2013-MARCH 2014
(Figure in Lakhs)
5000
4500
4000
3500
3000
PSCB- MM
2500
PSCB-TOTAL
2000
1500
1000
500
0
CONSUMER
LOAN
PERSONAL
LOAN
HOUSING
LOAN
VEHICLE
LOAN
EDUCATION
LOAN
SCHEMES
RATE OF
INTEREST
1.
2.
3.
4.
5.
15.00%
15.00%
13.00% up to
Rs.3.00 lac and
13.50
% above that
10.50%
13.00%
6.
7.
8.
31
11.50%
10.00%
7.25%
RATE OF
INTEREST
(Sr.citizen)
15.00%
15.00%
11.00%
10.50%
13.00%
11.50%
10.00%
7.25%
9.
10.
11.
14.00%
14.00%
9.00%
9.00%
FINACLE SOFTWARE
Finacle core banking solutions is a comprehensive, integrated, yet modular and agile
business solution, addressing all the core needs of banks, in easy-to-configure
modules. Finacle provides all building blocks of business functionality, enabling users to
configure products and processes flexibly in order to adapt to a dynamic environment.
With a 360 degree single source view into customer accounts, banks can empower
customers with relevant information and delight them with the right offerings, presented
at the right time through the right channel.
Finacle is centralized, multi-currency, multi lingual, functionally rich solution that
addresses the retail and corporate banking requirements.
TYPES OF USER GROUPS IN FINACLE
GENERAL USER This user group performs the regular banking and front office
functions. Example Opening of accounts, creation and verification of financial
items.
SYSTEM OPERATORS This group is in charge of executing system related
functions such as data backup and data restore.
DATA BASE ADMINISTRATOR These are responsible for up keeping and
maintaining database. They prepare various reports for the use of general users.
INSPECTION AUDIT This group performs routine audit in banks
These user groups have been divided on the basis of kind of banking operations they
perform. In order to use the software the user groups are required to login through their
unique Ids and passwords.
32
FINACLE USES
33
PSCB SANGRUR
Pscb- Sangrur was formed in 1952 and is located in centre of the city and is easily
accessible to all the business and Service class working in the Sangrur township.
LOANS
2000
1000
0
2010
34
2011
2012
3
2
1
0
31/03/2010
35
31/03/2011
31/03/2012
700
600
500
Savings Deposit
400
Term Deposit
300
Current Deposit
200
100
0
2010
2011
2012
200
100
0
2010
36
2011
2012
PROJECT DETAILS
In todays competitive environment where corporates are constantly searching for ways
to keep a float and sustain the market share, they have to find newer and better ways to
satisfy customer needs. To run any organization successfully the management needs to
think always for the betterment of their service and product.
Banking business is now expanding three folds and is facing tough competition. The
Private sector along with the public sector is performing high on scale and ruling the
markets. Adding to the glory, there are foreign banks that have also captured a
commendable market share.
Considering this, the State Cooperative Banks need to take such steps which assist
them in marching ahead in the race and survival of the fittest. This has always been the
motto of Cooperative Banks and in order to achieve this, we are hereby analyzing the
level of satisfaction of PSCB customers and their expectations.
RATIONALE OF STUDY
The Object here is to enhance my knowledge in Banking Industry. The proposed project
is a window giving me a view into gigantic and comprehensive Banking Industry. The
PSCB Schemes are chosen as the Project Topic because the Banks Cooperative credit
and deposits business is expanding day by day, and it contributes maximum in the
Rural Banking Industry. Apart from its pertinence and performance, the cooperative
banking measures to solutions and roads to its advancement will be discussed in this
project.
OBJECTIVES OF STUDY
Market trends in the field of Deposits and Credit Financing.
Market Potential of Punjab State Co-operative Banks.
To Study some of the Schemes of Punjab State Co-operative Bank in detail and idea of
types of Schemes available.
To conduct a Comparative Study of PSCB Schemes and other Banks.
To find out main obstacles while availing different schemes under PSCB.
37
Brief idea about the benefits available to Punjab State Co-operative Societies
Employees and customers.
Recent Development in Market and Punjab State Co-operative Bank in the field of
deposits and credit
RESEARCH METHODOLOGY
RESEARCH PROBLEM
Measuring the level of satisfaction prevailing among customers and their expectations in
context with PSCBs schemes.
RESEARCH DESIGN
Research deign is exploratory and descriptive which helps me to explore the factors
influencing the perception of customers.
SAMPLING DESIGN
SAMPLE SIZE The sample size is 20 that include local customers that
regularly visit the bank.
SAMPLING TECHNIQUE Simple Random Sampling has been followed.
DATA COLLECTION
38
Both primary and secondary data have been collected for meeting the objectives of
current study.
For the purpose of collection of primary data, personal interview of the respondents
was conducted. An unbiased, undisguised structured questionnaire was prepared which
was administered to respondants for the purpose of getting the information. The
questionnaire consist questions covering both deposits and loan schemes.
For the purpose of secondary data, secondary sources of information like magazines,
newspapers, journals, studies conducted in past, have been referred. The main sources
of secondary data in the study are:
1. Banks Detail Books
2. Banks website
RESEARCH INSTRUMENT
Questionnaires permit us to gather information that cannot be found elsewhere in any
secondary sources like books, newspapers and internet resources. Hence,
questionnaire survey was the best method to collect data for this study.
ANALYSIS TECHNIQUE
The questionnaire is having alternative choices. Analysis has been done with help of
charts, bar graphs, pie charts, likert scaling and co-relation.
SCOPE OF STUDY
The scope of study is limited to customers visiting Punjab State Cooperative Bank,
Sangrur. Present study has been restricted to time period from June 2013 to July
2013.
39
LITERATURE REVIEW
The Cooperative Sector has been playing a significant role in the area of disbursing
agricultural credit, providing market support to farmers, distribution of agricultural inputs
and imparting cooperative education and training etc. The basic objective of the
Cooperation Division is to design long term and short term strategies for reducing
economic disparities between the downtrodden rural people and the rural rich as well as
regional imbalances including rural and urban differences.
It much is admitted that though co-operative movement in India has not indeed
succeeded in curing all the economic and social evils, yet it has no doubt, led to some
beneficial results.
BENEFICIAL RESULTS:
1) Spread of banking Habit:
With the progress of co-operation the banking habit is slowly but steadily developing in
rural and urban areas.
2) Social benefit:
Co operation constitutes an admirable means of popular social improvement. It tends to
check the petty quarrels and bitterness of village life and binds together men into
friendly relationship.
3) Growth of self Reliance:
Co operative societies have created the spirit of self reliance among the village poor.
The individual farmer who is not able to start a new venture alone due to limited farmer
who is not able to start a new venture alone due to limited resources, can have a
chance to do the same through co-operation.
4) Welfare Activities:
Some societies have made liberal contribution towards various charitable and pubic
purposes. It has also provided scholarships and aids for higher studies, research works.
In this way the co-operative societies have promoted welfare activities.
DEFINITION OF LOAN
An arrangement in which a lender gives money or property to a borrower, and
the borrower agrees to return the property or repay the money, usually along with
40
interest, at some future point(s) in time. Usually, there is a predetermined time for
repaying a loan, and generally the lender has to bear the risk that the borrower may not
repay a loan (though modern markets have developed many ways of managing this
risk).
IMPORTANCE OF LOANS IN TODAY'S LIFE
Everyone needs money at every stage of their life. Sometimes it so happens that they
have keen desire to purchase their favorite stuff but they are incapable to purchase due
to shortage of money. Here lies a question that a person who does not have a good
amount of money at particular time has no right to see dreams? Is he not authorized to
fulfill his desires on time? Should he stop dreaming? No, because there is solution for
these queries. Loans are available for these purposes only. Loans are provided to
people for such critical circumstances which may occur at anytime. In anyone's life a
situation may come when all of sudden you require cash. A moment when you do not
want to borrow cash from your relatives. There may occur any kind of emergency when
you need huge amount of money. There are various types of loans like home loans,
personal loans, student loan, business loan etc. You can take any type of loan you
need. For each and every kind of need, loans are available. Home loans are available
for general home purposes like buying a luxurious car, going for a holiday trip,
educational purpose, home improvement etc. Many of your desires can be fulfilled by
this loan. Personal loans are available for personal requirements like
wedding ceremony, purchasing a home etc. Student loan as it itself suggest is that it is
provided basically to students for higher education. Students who want to study more
but cannot afford can get apply for such loans and continue their studies. To start a new
business you require a huge amount of money. A person willing to setup a business
may not have that much cash which can meet out his requirements. For this business
loans are available. You can get business loans to start and well establish a
new business in market. Whatever may be the kind of loan, all have full
fledged facilities. All kind of loans have their own importance. Above all, need of money
explains the importance of loan. Appling for loan is very easy. Apply for that loan
whichever is needed to you. But before applying you should go through different
lender's policies and apply for that lender which is beneficial for you. Different lenders
have different policies. If you get loan for long term with low rate of interest then it is
beneficial for you. Due to competition, lenders are trying their best to attract people by
providing different schemes which in turn is good for people. And cooperative bank is
also one of them.
WHAT IS A PROCEDURE?
A procedure is a specified series of actions or operations which have to be executed in
the same manner in order to always obtain the same result under the same
circumstances (for example, emergency procedures). Less precisely speaking, this
word can indicate a sequence of tasks, steps, decisions, calculations and processes,
41
that when undertaken in the sequence laid down produces the described result, product
or outcome. A procedure usually induces a change.
IMPORTANCE OF PROCEDURE MANUALS
One of the worst case scenarios of office problems involves a very important job that
cannot be completed by the support of staff because of a lack of information on
procedures. Nearly every company prepares job descriptions, but most neglect efficient,
exact and up-to-date procedures manuals. A job description entails. A procedures
manual gives a detailed and informative guide to how the job is done and enables
someone to do the job in an emergency. Henrik Ibsen once said, "A community is like a
ship; everyone ought to be prepared to take the helm." Likewise, an office - people
should be able to pitch in and get the job done. This is possible only if they are
provided with the proper instructions and materials. Every job entails a certain
sequence of paperwork, routine tasks and contacts. For example, someone might be in
charge of travel arrangements. A job description would state that the job entails making
both domestic and foreign travel arrangements and processing invoices for this. A
procedures manual would give the names and phone numbers of various travel
agencies used for the firm, the best people to contact, how to process the invoices by
explaining the forms and what department handles them. If the person in charge of
travel arrangements is out of the office, someone else can open the procedures manual
and follow the directions to do the job. Managers should see that every support staff
employee in his or her department prepares a procedures manual for each job. At the
beginning, the manager should meet with each employee individually and discuss the
preparation of the manual so that its function is fully understood. An outline of what is
expected should be prepared and given to each employee to follow.
1. What - A description of the task.
2. When - How often it is done.
3. Who - What people are involved in completing the task.
4. How To - Sequence of steps to complete the job. Phone numbers, addresses, chain
of command, forms or materials needed (and where they are kept), potential problems
and solutions based on experience. If office machines are involved (computers
or word processors), a description of how they are operated for this particular job
(i.e. if disks are used, where information is stored, how to retrieve the information,
electronic mail, etc.). If a computer sequence is followed to complete forms or reports
for the task, copies of each screen used should be made and placed in the procedures
manual in the proper order. A "dummy" of each page should be filled out so that it can
be easily followed.
42
Age
Service Tenure
Loan Limit
Rate of Interest
Payment Of
Loan
Security
Loan is repayable in equated monthly installments in the form of postdated cheques. The 1st installment will start after one month.
No collateral security is required, only two guarantors known to the
Bank (of the same institution as of the borrower).
No employees will be given this loan facility who has defaulted in
repayment of loan in any other scheme.
General
43
DEFINATION OF DEPOSITS
In deposit terminology, the term- Bank Deposit refers to an amount of money in cash or
check form or sent via wire transfer that is placed into a bank account. The target
account for the Bank deposit can be any kind of account that accepts deposits.
44
CHAPTERISATION
CHAPTER 1 INTRODUCTION
A. Introduction to Banking Industry
B. Company Background
C. Project Detail
CHAPTER 5 ANNEXURES
A. Questionnaire
B. Comparison of loan Interest Rates of different Banks
C. Comparison of Deposit Interest Rates
45
0
MALE
Gender Classification
FEMALE
FIRMS
46
MONTHLY INCOME
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
FEMALE
MALE
FIRMS
FIRMS
MALE
FEMALE
47
OCCUPATION
10
9
8
7
6
Business
Employement
4
3
2
1
0
Loans Borrowers
Depositors
48
8
7
6
5
Personal Loan
Consumer loan
Savings Account
Current Account
3
2
1
0
Loans
Deposits
49
Personal Visit
Advertisement
Word Of Mouth
Other
50
No. Of Customers
12
10
8
6
No. Of Customers
4
2
0
Savings
51
Loans
Deposits
2
1
0
Faster
Processing
Interest Rates
Others
Around 50% of customers from both deposits and loan schemes believe that
bank has a very fast processing rate.
Following with the conclusion that Banks customer dealing is quiet effective and
efficient.
30% got attracted with the Interest rates offered by bank.
It was observed that the interest rate of Personal Loan scheme was
comparatively less than some private banks.
The bank as such has no Brand image like other public and private banks in the
market, but the bank is famous among the rural folks and is rightly called as the
SAHKARI BANK.
The bank does offer some margin amount in its schemes which again works in
favor of the bank and customers.
52
COR-RELATION ANALYSIS
Correlation analysis attempts to determine the degree and direction of relationship
between the two variables. If two or more variables vary in sympathy so that the
movements in one variable tend to be accompanied by corresponding movement in the
other, then they are said to be correlated.
Framework for the projected study is set as follows:
INDEPENDENT
VARIABLE
(QUALITY
SERVICES)
INDEPENDENT
VARIABLE
(EMPLOYEE
BEHAVIOUR)
INDEPENDENT
VARIABLE (RATE
OF INTEREST)
DEPENDENT
VARIABLE
(CUSTOMER
SATISFACTIO
N)
INDEPENDENT VARIABLES
EMPLOYEE BEHAVIOR: Employees are key stakeholders in the value delivery
and brand/supplier success. It is believed that employee commitment and
advocacy behavior have a direct and profound relationship with the customer
loyalty and corporate sales and profitability.
SERVICE QUALITY: The banks need to understand that the customers will be
loyal only if they receive greater value then competitors. This variable is widely
used to evaluate the performance of employees.
RATE OF INTERESTS: An interest rate is the rate at which interest is paid by
borrowers for the use of money that they borrow from a lender.
53
DEPENDENT VARIABLE
CUSTOMER SATISFACTION: Customer satisfaction, a term frequently used
in marketing, is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals.
RESEARCH QUESTIONS
Q1. Does service quality effect customer satisfaction in the context of PSCB?
Q2. Does employee behavior affect the satisfaction level?
Q3. Do the interest rates motivate customers to transact with PSCB?
In the questionnaire, the respondants were asked to score the variables out of five.
These scores were taken to be the quantitative values of variables for the purpose of
calculation of correlation coefficient.
ANALYSIS AND INTERPRETATION:
According to the Spearman correlation coefficient the relation between the customer
satisfaction and other three variables is 0.24 which shows moderate degree of positive
correlation.
54
EXPECTATIONS OF CUSTOMERS
E-BANKING
No Of Customers
YES
NO
4
12
CANT SAY
55
No of Customers
YES
NO
56
800
700
600
500
MM Branch
400
Head Office
Pscb total
300
200
100
0
2009-10
2010-11
2011-12
-100
57
LIMITATIONS
The findings of the study are based on the expressed opinion of the respondents.
Some respondents were hesitant in providing complete information.
Difficulty was faced in getting the responses to various questions because the
customers could not devote enough time.
There was communication problem also as some of the customers belong to
rural class so they could not understand the questionnaire easily.
This study only relates to one organization, so conclusions drawn may not be
finding its utility in all the other banks.
Even the employees of the bank were hesitated to give the complete and
accurate data.
CONCLUSION
The project was undertaken to analyze and measure the level of satisfaction prevailing
among customers and the expectations in context with Punjab State Co-operative
Banks schemes.
The study concludes that the dealing of bank with the customers is quite effective and
efficient which is the most important element of marketing in todays scenario.
As per the study it was observed that the bank has very and efficient processing system
in relation to its both loan and deposit schemes.
Most of the customers get attracted with the PSCB as the interest rates offered by the
bank is comparatively more in relation to other public and private banks.
Also the bank offers some margin amount in its schemes which again works in favor of
customers as well as the bank.
As such the bank has no brand image like other public and private banks in the market,
but the PSCB is famous among the rural folks and is rightly called as SAHAKARI
BANK.
58
RECOMMENDATIONS
In todays world most of the banks provides ATM facility. So to meet the
competition in the market Punjab State Co-operative Bank should also provide
the ATM facility.
Bank should refocus on its interest rate as responded by people. Periodic Review
of the interest rate should be done.
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.
Training of the employees should be there to meet the needs of the time.
More mass awareness campaigns should be organized in order to enhance
market share of bank. So bank should concentrate on its advertisement itself.
Rate of interest should be re viewed periodically.
If the interest rate has been reduced or has become non- favorable to the
customer, the bank should inform him/her.
There should be complaint boxes installed in the banks that should be opened
weekly and proper redressal of complaints should done.
Maximum practical exposure should be provided to the job trainees so that they
may handle the various enquiries of customer efficiency.
Communication gap within the bank and with the head office should be reduced.
Better infrastructure facilities should be provided to the PSCB Sangrur.
Banks are advised to have proper internal control measures for monitoring its
functions and transactions.
PSCB should open new branches in the rural and urban areas to achieve the
targets.
59
BIBLIOGRAPHY
Banking & Insurance R.K.Sharma & Shashi.K.Gupta
Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on
31.03.2010
Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on
31.03.2011
Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on
31.03.2012
PSCB Directory
PSCB Loan Schemes
http://www.punjabcooperation.gov.in/html/aboutus.html
http://pscb.in/welcome.htm
http://www.sify.com/finance/compare_interest_rates/
60