Kindler Volume XIV January - December 2014

THE JOURNAL OF ARMY INSTITUTE OF MANAGEMENT KOLKATA
(FORMERLY NATIONAL INSTITUTE OF MANAGEMENT CALCUTTA)

VOL - XIV NUMBERS 1 & 2 ISSN 0973-0486
RESEARCH
CONTRIBUTIONS
STUDENTS'
CONTRIBUTIONS
Article
Project Synopses
BOOK REVIEW
CPP - 9830348209
JANUARY-JUNE 2014
JULY-DECEMBER 2014
Perception towards Green Marketing among

Indian Youth: An Empirical Study
Dr. Zia Ul Haq
Social Media Marketing and its Role in Enhancing

a Brands Equity
K. Venkateswara Raju &

Dr. D.Prasanna Kumar
A Study on Investor Perception of Small Savings

Schemes in West Bengal
Satarupa Roychowdhury
Customers Perspective regarding Problems from

Bancassurance Services: A Study of Public and
Private Sector Banks
Nancy Arora &

Dr. Arti Gaur
Identification of Measures to be taken for Sustainable

Green Banking in India
Dr Swapna Datta Khan
Study on Biscuit Brands and its Market Sweeping

Promotional Offers: A Case Study of Kolkata
Chiranjit Senapati
Internal Capital Adequacy Assessment Process

of UCO Bank
Anirban Saha
Investor Behavior in Financial Market
Manish Jaggi
Understanding Organizational Behaviour
Prof. Udai Pareek
Principles of Macroeconomics
N. Gregory Mankiw
Kindler - The Journal of Army Institute of Management Kolkata (Formerly, National

Institute of Management Calcutta)
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Prof Sougata Majumder
Editorial Advisory Board

Dr. S. C. Jain, VSM** (Retd.)
Director
Army Institute of Mgmt. Kolkata
Alipore
Kolkata 700 027
Prof. C. Madhavi
Dept. of Business Administration
Annamalai University
5, Adinarayana Salai
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Dr. Tamal Datta Chaudhuri

Professor
Dr. Malini Majumder

Associate Professor
Army Institute of Mgmt. Kolkata
Alipore
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Dr. Arnab K Laha

Indian Institute of Management
Vastrapur
Ahmedabad 380 015
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Indian Statistical Institute
203, BT Road
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Department of Commerce
University of Calcutta
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Dr. Pinaki Mitra

Indian Institute of Technology
Guwahati
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Indian Institute of Engg. Science &
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Books: Keegan, D. (1986), Foundations of Distance Education, London: Croom Helm
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KINDLER
THE JOURNAL OF ARMY INSTITUTE OF MANAGEMENT KOLKATA
(FORMERLY NATIONAL INSTITUTE OF MANAGEMENT CALCUTTA)
VOLUME XIV q NUMBERS 1 & 2 q ISSN 0973-0486 q JANUARY-JUNE 2014, JULY-DECEMBER 2014
Page No.
EDITOR'S NOTE
RESEARCH CONTRIBUTIONS
Perception towards Green Marketing among Indian Youth:
An Empirical Study
Dr. Zia Ul Haq

Social Media Marketing and its Role in Enhancing a Brands Equity
K. Venkateswara Raju & Dr. D.Prasanna Kumar
19
A Study on Investor Perception of Small Savings Schemes

in West Bengal
Satarupa Roychowdhury
35
Customers Perspective regarding Problems from Bancassurance

Services: A Study of Public and Private Sector Banks
Nancy Arora & Dr. Arti Gaur
45
Identification of Measures to be taken for Sustainable Green Banking in India

Dr Swapna Datta Khan
55
STUDENTS CONTRIBUTIONS
Article
Study on Biscuit Brands and its Market Sweeping Promotional Offers:
A Case Study of Kolkata
Chiranjit Senapati
69
Project Synopsis
Internal Capital Adequacy Assessment Process of UCO Bank
Anirban Saha
79

Manish Jaggi
89
Page No.
BOOK REVIEW
Prof. Udai Pareek
N. Gregory Mankiw
95
99
Editor's Note
Mangalayaan or the Mars Orbiter Mission of India entered the Mars orbit in 2014,
making India the only nation in the world to be successful in its first attempt. India is
also the first Asian nation and fourth in the world to achieve this feat. The year also
symbolized change with the birth of a new state Telangana and formation of a new
Government at the Centre promising Achche Din (Good Days). The year also
reasserted the might of the electorate in a democracy when the same newly elected
government was not favored in Delhi, voting instead for a corruption-free capital.
This concept of change is reflected in the current issue of Kindler with articles
focusing on Green marketing and Green banking. This issue is skewed towards Finance
with contributions from both researchers and students on Finance-related topics like
Small Savings Schemes, Bancassurance Services,
Internal Capital Adequacy
Assessment Process and Investor Behavior in Financial Market. The issue also contains
papers on Social Media Marketing and Brand Equity and a student contribution on
promotional offers on Biscuits.
With hopes for Achche Din in 2015

Editor, Kindler
Perception towards Green Marketing among

Indian Youth: An Empirical Study
Dr. Zia Ul Haq*
ABSTRACT
Companies have been using green marketing for many reasons such as green policies are profitmaking; the business world is more and more implicated in the social responsibilities. Furthermore,
consumers have been having change of attitudes and due to the government and the competitive
pressures it is essential for firms to consider the green adjective to marketing strategies.
Consumers now have worries about the future of the world and as a result of this, they mostly prefer
environment-friendly products. In return to these attitudes of the consumers, companies have
started to form their marketing strategies so as to appeal to the increasing awareness of this
environment-friendliness. These marketing strategies, named as green marketing practices, have
caused companies to adopt green policies in their pricing, promotion, product features and
distribution activities.
Taking into consideration that companies are socio-economic entities, it cant be expected that
they remain unresponsive to the Environmental Awareness that may direct consumer behaviors.
Particularly Marketing Managers have encounters with consumers who are sensible to
environmental issues. The old perception on how businesses are established with no other objective
but profit is leaving its place rapidly to a new perception which defines companies as establishments
that are sensible to social problems. Consumers encounter with terms such as ozone-friendly,
environment-friendly and recyclable products in green marketing. However, green marketing isnt
limited to these terms but is a much wider concept of marketing activity which can be applied to
consumer goods, industrial goods and even to services.
Key Words: Green Marketing, Attitude, Consumerism, Pollutants, Behavior.
INTRODUCTION
Although environmental issues influence all human activities, few academic disciplines have
integrated green issues into their literature. As society becomes more concerned with the
natural environment, businesses have begun to modify their behavior in an attempt to address
societys new concerns. Some businesses have been quick to accept concepts like
environmental management systems and waste minimization, and have integrated
environmental issues into all organizational activities. One business area where environmental
issues have received a great deal of discussion in the popular and professional press is
Green Marketing. Green marketing has been an important academic research topic for at
least three decades and has been defined in many different ways.
According to The American Marketing Association, Green or Environmental Marketing consists
of all activities designed to generate and facilitate any exchanges intended to satisfy human
needs or wants, such that the satisfaction of these needs and wants occurs with minimal
detrimental impact on the natural environment. Thus, we can say that, Green Marketing
*
Assistant Professor, Department of Management Studies, Central University of Kashmir, J & K. Email:
zia@cuakshmir.ac.in
Kindler Vol. XIV l Nos. 1 & 2 l January-June 2014, July-December 2014
involves: Manufacturing and providing products to the consumers which are of good quality
and at the same time not harmful to them even in long run. Use the resources for development
in such a manner which will enable the future generations to avail the resources to meet their
needs leading to Sustainable Development. Framing and implementing policies which will
not have any detrimental effect on the environment, i.e., at present as well in future. Thus,
Green Marketing refers to holistic marketing concept, wherein production, marketing
consumption an disposal of products and services happen in a manner that is less detrimental
to the environment with growing awareness about the implications of global warming, nonbiodegradable solid waste, harmful impact of pollutants, etc. Both marketers and consumers
are becoming increasingly sensitive to the need for switch to green products and services.
While the shift to green may appear to be expensive in the short term, it will definitely prove
to be indispensable and advantageous cost-wise too, in the long run. The first wave of Green
Marketing occurred in the 1980s. Two tangible milestones for wave one of green marketing
came in the form of published books, both of which were called Green Marketing. They were
by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993).
REVIEW OF LITERATURE
The negative consequences on the environment due to companies and human activities have
led companies to develop eco-friendly products. Remember that Sustainable development is
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs (Halle and Mark, 2002). This definition appeared for the
first time in 1987, in the Brundtland report also called: Our Common Future. Grant (2007)
defines sustainability as the idea that environmental (and ethical) objectives are not
incompatible with ongoing economic prosperity. The consumption of eco-friendly products
and consumers attitudes towards these products has led to the development of the green
marketing mix which preserves environmental resources and at the same time deliver value
added products and services (Datta and Ishaswini, 2011).
Green marketing term appeared at the end of the 1980s. This concept has been defined by
many researchers such as Stanton and Futrell (1987), Mintu and Lozanda (1993) and Polonsky
(1994), (cited in Ghosh, 2010) in a broad sense it is the marketing activities which facilitate
exchanges to satisfy consumer needs and wants by minimizing the impact of these activities
on the physical environment. According to Chen and Chai (2010), green marketing is defined
as the activities taken by firms concerned about environmental problems or green problems,
by delivering the environmental sound goods or services to create customers and societys
satisfaction. Welford (2000, cited in Chen and Chai, 2010) defined green marketing as the
management process responsible for identifying, anticipating and satisfying the requirements
of customers and society in a profitable and sustainable way. Green marketing has been
developing because even if the human wants are unlimited the natural and artificial resources
are limited (Kumar, 2010). Green marketing-mix elements and eco-friendly products are
designed and developed as having less harmful for the environment (Chitra 2007).
There is a resultant increase in the concern expressed towards environmental protection
leading to green consumerism (Eriksson, 2004). The growth of green marketing and green
consumer is perhaps the biggest opportunity for enterprise and invention the industrial world
has ever seen (Cairncross 1992). A green consumer can be identified to be one who avoids
any product which may cause damage to any living organism, cause deterioration of the
environment during process of manufacturing or during process of usage, consume a large
8
amount of non-renewable energy , involves unethical testing on animals or human subjects

(Elkington, 1994). There have been a number of different factors which are instrumental in
promoting green consumers to purchase green products. Extensive research over the years
identifies that heightened awareness of green issues, increased level of information availability
on environmental sustenance; green advertising by corporations, increased concern for the
environment, increase in popularity of green products by social and environmental charities
as some factors. Due to this overwhelming increase in the overall environmental consciousness
among different consumer profiles there have been efforts undertaken by firms to go green
by presenting the concept of corporate environmentalism (Banerjee, et al 2003; Hay and
Lichter 2000). Today, green development are identified as opportunities by business firms as
opportunities to improve their marketing niche rather than just actions which need to be
carried out. It has always been believed by consumer behaviorists that an individuals actions
can be predicted by their attitudes. There have been a number of attempts to improve the
ability to predict an individuals actions and a variety of factors have also been suggested to
involve factors which can be classified as either dispositional or situational. Spruyt et al
(2007) indicates that prediction of behavior is directly dependent on attitude of the consumer
which is found to be associated with knowledge and personal experience they have (Davidson
et al., 1985). The impact of beliefs and attitude on consumer buying habits has been studied
extensively (Fazio and Zanna 1981; Ajzen 1989). Furthermore, research in this area has
indicated that if attitudes are to be used in predicting the consumers behaviors then there are
a number of methodological issues that have to be sorted out. According to Ajzen and Fishbein,
(1977), behavior and attitudes have to be measured at the same correspondence level. There
are a number of theories that have been put forth to explain the process by which attitudes
predict behavior.
The growth of green marketing and green consumer is perhaps the biggest opportunity for
enterprise and invention the industrial world has ever seen (Cairncross 1992). A green consumer
can be identified to be one who avoids any product which may cause damage to any living
organism, cause deterioration of the environment during process of manufacturing or during
process of usage, consume a large amount of non -renewable energy and involves unethical
testing on animals or human subjects (Elkington, 1994).
RESEARCH GAP
Most of the surveys, studies and literature which cover the green marketing determine the
factors that determine the green marketing attitudes towards the purchase of the products.
For example, a study by Gan et al (2008), studied the impact of price consciousness and the
brand loyalty towards green marketing. But, the study did not take into account other factors
like Consumer opinions, beliefs, ability to act, etc.
Another survey carried out in United States of America (Cone Green Gap Trend Trecker,
2012), which studied more than 1000 people revealed that 44% of the consumers trust the
environment claim of the business units and 42% respondents are discouraged to buy green
products because they think price of environmental friendly products is more than that of
usual products of similar nature.
Likewise, Solomon et al (2010) studied the consumerism on lifestyles of health and
sustainability of green products on the consumer and business market. This is an emerging
area on which researchers are showing keen interest throughout the globe.
This research could have significant and vital impact on the readers and marketers as far as
consumer behavior and green marketing relationship is concerned. This research could also
be of vital importance to organizations that are concerned with safeguarding of the earth from
depleting natural resources. It could also help marketers to formulate strategies that can
cater in a better manner, as far as green products are concerned.
RESEARCH OBJECTIVES
1. To understand the concepts and importance of green marketing.
2. To understand the level of awareness regarding green marketing among consumers.
3. To understand the buying behavior of consumers related to green marketing.
METHODOLOGY AND SCOPE
Research Design
The research design used for the study is exploratory research design.
Population
The study includes respondents (consumers as well as prospects) across all income and
age groups ranging from 18 to 34, i.e., without differentiating between users and non-users of
the green-marketing product.
Sample Size
The sample size for the study undertaken is 400.
Population
Population of the research is youth between 18-34 years of Jammu and Kashmir.
Sampling Design
Convenience sampling has been used and the respondents who were easily accessible were
consulted for collection of primary data.
Sources of Data
Both primary and secondary sources of data were used. Primary data was collected through
questionnaires from the respondents. Secondary was collected from internet and some research
papers about the pattern of green marketing.
Scope
As green marketing is a broad topic, as such, the scope of the research is limited to address
the objectives of the study. So as to keep the research focussed some of the areas like
ethical business practices, social responsibility, carbon footprint, green refurbishing, etc.
have been touched upon.
Hypotheses
Ho1:-Age is not a significant factor while determining the impact of green marketing on
consumers.
Ho2:- Gender is not a potent factor which affects the sensitivity of customers towards green
marketing.
10
DATA ANALYSIS
Reliability Analysis
S.No.
Variable
Cronbachs Alpha
Opinion & Beliefs
.563
Awareness
.889
Attitude
.786
Action Taken
.815
Ability to Act
Knowledge Dimension
.862
Green Consumer Values
.869
Cronbachs alpha is a statistical measure of reliability whose value varies between 0-1. A
value of 0.6 and above is desired and considered as reliable. So, here on the basis of reliability
analysis of the scale used, the scale shows a fairly high reliability. Therefore, we can conclude
that the scale used is reliable.
One-way Anova
Annova technique has been done on the data to check the effect of demographic variables
(age and gender) on the consumer sensitivity towards green marketing.
ANOVA(age)
AOB
AAW
AATT
AAT
AA1
AGCV
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Between Groups
Within Groups
Total
Sum of Squares
df
Mean Square
Sig.
3.009
139.741
142.750
1.216
109.034
110.250
1.745
69.505
71.250
1.787
110.324
112.111
1.864
139.136
141.000
.459
113.604
114.062
2
97
299
2
97
299
2
97
299
2
97
299
2
97
299
2
97
299
1.505
1.441
1.044
.356
.608
1.124
.541
.584
.872
.717
1.217
.300
.893
1.137
.785
.459
.932
1.434
.650
.524
.229
1.171
.196
.822
11
ANOVA(gender)
AOB
AAW
AATT
AAT
AA1
Sum of Squares
Df
Mean Square
Sig.
Between Groups
.036
.036
.025
.875
Within Groups
142.714
298
1.456
Total
142.750
299
Between Groups
.008
.008
.007
.932
Within Groups
110.242
298
1.125
.169
.682
1.047
.309
.034
.855
Total
110.250
299
Between Groups
.123
.123
Within Groups
71.127
298
.726
Total
71.250
299
Between Groups
1.185
1.185
Within Groups
110.926
298
1.132
Total
112.111
299
Between Groups
.049
.049
Within Groups
140.951
298
1.438
Total
141.000
299
Age
Variables
Opinions and beliefs
Awareness
Attitude
Action taken
Ability to act
Green consumer values
Significance
.356
.584
.300
.459
.524
.822
A significance of .01 to .05 is considered as relevant. Therefore, on the basis of the result
taken from annova, none of the variables show a significant relation with age as all the values
fall above the desired level of significance. Thus, we accept the null hypothesis (H-1) and
conclude that age is not a determining factor for assessing the sensitivity of consumers
towards green marketing.
Gender
Variables
Opinions and beliefs
Awareness
Attitude
Action taken
Ability to act
Green consumer values
12
Significance
.875
.932
.682
.309
.855
.945
Similarly, we accept the null hypothesis (H-2) and conclude that gender has no impact while
determining the consumer awareness towards green marketing.
Regression: It is used to check the dependency of one variable with respect to other variables.
Here the dependent variable entered is AGCV(green consumer values) and the value of r
determines the extent to which all other variables i.e., AA(ability to act), ATT(attitude), opinions
and beliefs(OB) , AW(awareness), AT(action taken) make an impact on the dependent variable.
Variables Entered/Removed
Model
Variables Entered
Variables Removed
Method
AA, AAT, AOB, AAW, AATTb
Enter
a. Dependent Variable: AGCV

b. All requested variables entered.
Model Summary
Model
R Square
Adjusted R Square
Std. Error of the Estimate
.2989a
.979
.978
.15948
a. Predictors: (Constant), AOB, AAT, AAW, AA1, AATT

Therefore, the value of R square comes out to be .979 which implies that the model is 97.9 %
significant i.e. our dependent variable is impacted by all other independent variables by 97.9
%. Thus, we conclude that green consumer values share a significant relationship with the
other independent variables.
Correlation: - It is used to check the relationship between the variables. A +ve correlation
indicates an increase in the value of one variable with reference to the increase in other. The
value of correlation varies between -1 and +1. -1 implies a negative correlation between variables.
Usually a value of .5 and above signifies a significant correlation for research purposes.
AOB
AAW
AATT
AAT
AGCV
AA
.630
-.706
-.188
.705
.631
.000
.000
.030
.000
.000
300
300
300
300
300
300
Correlation
.630
-.776
-.334
.953
.7298
Sig. (1-tailed)
.000
.000
.000
.000
.000
300
300
300
300
300
300
Correlation
-.706
-.776
.643
-.825
-.873
Sig. (1-tailed)
.000
.000
.000
.000
.000
300
300
300
300
300
Pearson
Correlation
AOB
Sig. (1-tailed)
N
Pearson
AAW
Pearson
AATT
300
13
Pearson
AAT
Correlation
-.188
-.334
.643
Sig. (1-tailed)
.030
.000
.000
300
300
300
.705
.953
.000
-.468
-.496
.000
.000
300
300
300
-.825
-.468
.877
.000
.000
.000
300
300
300
300
300
300
Correlation
.631
.7298
-.873
-.496
.877
Sig. (1-tailed)
.000
.000
.000
.000
.000
300
300
300
300
300
Pearson
Correlation
AGCV Sig. (1-tailed)
N
.000
Pearson
AA
variables
AAW
AGCV
AA
AOB
.630
.705
.631
AAW
.953
.7298
AOB
.7298
.953
.877
AATT
.643
.643
.631
AAT
AGCV
AAT
.630
AATT
AA
300
.705
The table above shows positive correlations among the variables. Since the correlation coefficient
of .5 and above is desired, therefore we conclude that the extent of relationship among
variables affects the consumer sensitivity towards green marketing.
CONCLUSIONS AND RECOMMENDATIONS
Green marketing is not going to be an easy concept. The firm has to plan and then carry out
research to find out how feasible it is going to be. Green marketing has to evolve since it is
still at its infancy stage. Adoption of green marketing may not be easy in the short run, but in
the long run it will definitely have a positive impact on the firm. Green Marketing is still in the
stage of childhood in the Indian companies. Lots of opportunities are available in Indian
market. Customers too are ready to pay premium price for green products. This transformation
in consumers behavior is compelling corporate to think about the harmful impact of their
activities on the natural environment of the world. The rapid increase for the environment
concern in last two decades is stressing companies to prove the change to ensure the
sustainable growth of the society. Green marketing should not be considered as just one
more approach to marketing, instead it should be pursued with greater vigor as it has societal
and environmental dimensions. Marketers also have the responsibility to make the stakeholders
aware about the need and the advantages of green products. Organizations are now aware
with the fact that without adopting green in the core of their strategy they cannot survive in the
14
present competitive era. Indian FMCG companies are also adopting green to retain their
image in the market. The companies are involved in various activities to show their concern
for environment as well as society, but at the same time it is necessary for the companies to
understand that green marketing should not overlook the economic aspect of marketing.
Green marketing helps in the effective outcomes like cost cutting, employee satisfaction,
waste minimization, society welfare for the companies as well for society also. Only thing
required is the determination and commitment from the all the stakeholders of the companies.
Marketers also have the responsibility to make the consumers understand the need for and
benefits of green products as compared to non-green ones and the benefits they can reap in
the future. The green marketers can expect full support of the Government, and the consumers
also will not mind paying more for a cleaner and greener environment. Finally, consumers,
industrial buyers and suppliers need to promote the positive effects of green marketing on the
environment. Green marketing assumes even more importance and relevance in developing
countries in the world like India which should be path breakers and trendsetters for all others
to follow.
LIMITATIONS OF THE STUDY
The seven variables were used purposely on this research to examine the influence of the
consumers attitude towards green product. However, some researchers have extended and
added some factors, for instance, 4Ps of Marketing, people and process as the employees
and method of producing the green products are vital to look into. Furthermore, the answering
of questionnaire could also be influenced by the cultural factor since it is an important factor
in attitudes towards green products and purchase of these products.
Furthermore, young population of 18 to 34 years of age from India were used as part of the
respondents to look into their attitudes towards green products, even though; they have rich
experience and knowledge on the green products but their attitude and behavior are not
representative of the general population or of many other specified defined target population
(Shiu et al, 2009). Finally, convenient sample was used on this research, however, Shiu et al
(2009) emphasizes that it is not normally guaranteed for representation of the population.
SCOPE AND FURTHER RESEARCH
Although the current study tries to develop a representative sample of the population but still
the sample members are younger, having more income and high educational attainment
compared with the average consumer in India. Future studies can extend the results by
replicating the current research in different other areas/population of the country. The current
study does not consider the differences among the different green product categories. It is
possible that these results and scores will differ while taking any particular green product.
Future research can concentrate on a particular product category or try to capture and explain
the variations in different product categories.
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17
18
Social Media Marketing and its Role in

Enhancing a Brands Equity
K. Venkateswara Raju* & Dr. D.Prasanna Kumar**
ABSTRACT
Social media marketing refers to the process of gaining traffic or attention through social media
sites. For instance, Twitter is a social site designed to let people share short messages or updates
with others. Facebook, in contrast is a full-blown social networking site that allows for sharing
updates, photos, joining events and a variety of other activities. Social Media had become one of
the best opportunities for a brand to connect with prospective consumers. Social media networks
have become a place where millions of people socialize. These networks win the trust of several
consumers of various brands by connecting them at deeper intrinsic levels. Social media marketing
has become the new mantra for several brands since a couple of years. Marketers began to take
note of social media marketing opportunities and began implementing new social initiatives.
Sophisticated Social media marketing had taken the way brands reach consumers to a new level.
Social media marketing programs usually center on efforts to create content that attracts attention
and encourages readers to share it with their social networks. A corporate message spreads from
user to user and presumably resonates because it appears to come from a trusted, third-party
source, as opposed to the brand or company itself. Hence, this form of marketing is driven by
word-of-mouth, meaning it results in earned media rather than paid media. Social media has
become a platform that is easily accessible to anyone with internet access. Increased
communication for organizations foster brand awareness and often, improved customer service.
Additionally, social media serves as a relatively inexpensive platform for organizations to implement
marketing campaigns. This research paper gives us a peek into Social Media Marketing and
whether advertising through social media is effective and accepted by the people and also their
level of acceptance. This was done with a survey through a questionnaire. The survey found that
social media advertisement is accepted and is effective.
Key Words: Social Media, Advertising, Acceptance, Significance.
INTRODUCTION
Social networking is not something new. As this social networking guide will explain, social
networks have been around for far longer than we have been on the web. Weve all belonged
to social networks, and we still participate in social networks. High school is an excellent
example of basic social networking in action. There are various cliques like the geeks, the
socials, the athletes, the band, etc. These cliques are social groups, and a person can be a
member of one of them, a member of several, or a member of none. Social networking on the
web is not much different. At first, you will find yourself without friends, but as you participate,
your friends list will grow. And, like life, the more you participate, the more you will get out of
it. Social networks are built around the friends concept. They arent always called friends.
LinkedIn, a business-oriented social network, calls them connections. But, they operate in
much the same way regardless of what they are called. Social networking websites allow
*
**
Research Scholar, K L U Business School, Guntur, Andhra Pradesh. Email: mail4venkey@gmail.com

Associate Professor, K L U Business School, Guntur, Andhra Pradesh. Email: dr.prasanna@kluniversity.in
19
you to find friends in various ways. There are often search features that allow you to search
for friends who are interested in the same hobbies, of a certain age group, or live in a certain
region of the world. You can also find friends through groups. Social media differentiates itself
from traditional media in many aspects like quality, reach, usability, frequency, immediacy
and permanence. According to Nielsen, internet users continue to spend more time with
social media sites than any other type of site. At the same time, the total time spent on
social media in the U.S. across PC and mobile devices increased by 37 percent to 121 billion
minutes in July 2012 compared to 88 billion minutes in July 2011.
Much criticism about social media is about its exclusiveness as most of these sites do not
allow the free transfer of information from one to the other, disparities in information available,
issues related to trustworthiness and also reliability of the information presented, ownership
of the media content, and the different perceptions about interactions created by social media.
However, social media has positive effects too like democratization of the internet while
allowing individuals to advertise about themselves and forming friendships.
Most people associate social media with positive outcomes, yet it may not always be the
case. There are dangers associated with social networking including data theft and viruses,
which are on the rise. The most prevalent danger though often involves online predators or
individuals who claim to be someone that they are not. Although danger does exist with
networking online, it also exists in the real world, too. Just like youre advised when meeting
strangers at clubs and bars, school, or work you are also advised to proceed with caution
online. Social Networks decrease face-to-face interactions. Social media may expose children
to images of alcohol, tobacco, and sexual behaviors.
Geocities, created in 1994, was one of the first social media sites. The concept was for users
to create their own websites, characterized by one of six cities that were known for certain
characteristics.
As people take control over their data while spreading their Web presence, they are not
looking for privacy, but for recognition as individuals. This will eventually change the whole
world of advertising (Esther Dyson, 2008). Dell and their Digital Nomads program, aimed at
a specific segment of Dells customer base that hinges on the availability of online internet
connection. Digital nomads are people who are productive in the office or outside of it, are
always in touch with friends and update their colleagues on their work in progress through
social networks. A common attribute identifying Digital Nomads is a combination of lifestyle
and digital tools, also with an intention to get connected in any situation. Dell states that its
hardware powers the nomadic lifestyle of this group of on-the-go professionals. We have to
recognize that communities like Take Your Own Path and Digital Nomads are not aimed
with a non-profit or business or consumer motive but by the needs and desires of participants
within these communities.
Brand Outposts
An alternative approach to connect a brand or organization with online community also exists:
We can create a place for brand presence called as a brand outpost within a network or
online community like a Twitter presence in a Facebook Business Page, or a YouTube channel.
While creating a brand outpost there need not be any reason except the expectation for the
20
brand to be present and business objectives that will be served by such presence. There is
need for a relevant contribution by the brand/product/service to the online community it wants
to join. Simple posting of TV commercials in YouTube, for example, in most cases does not
produce engagement beyond the firms own employees and may be their families watch
these commercials. Most Facebook members expect their favorite brands online on Facebook.
Aircel, the Indian Telecom Service provider, created an online Facebook application that
embeded the Aircel voice-mail service within Facebook, thereby providing a link to its
customers in an important online media channel and also acts as a point of competitive
differentiation. Aircel subscribers present on Facebook, generally is a group that is younger
and savvier when it comes to usage of the social web who will use this application to stay
connected with voicemail without easily leaving Facebook. To fulfill its own business objectives
in and around customer service, Australias Telstra has created its very own Twitter presence
(@telstra) partly out of recognizing act that Twitter is an ever burgeoning customer service
portal and also thatas is the case with Facebook, YouTube, and as with other leading
social networks: its very own customers are expecting it to be there.
Online presence of brands in existing social networks would be welcome as it makes sense
even from the perspective of consumers. Most of the brands are present in all the other
places where people are willing to spend time: like on TV, on the radio, in the movies, in all
forms of outdoor advertising, and at even sports events and the like. Social sites which are
the new gathering places will be no exception. IT companies, MNCs, banks, soft drink brands,
movie studios, celebrities, auto manufacturers and more are busy building brand outposts
on Facebook, YouTube, Orkut, and other social sites because even their customers are
spending significant time on all those sites. Almost all the brands and organizations participating
in this social web are in the process of skipping the future development of dedicated product
micro-sites and also even major TV brand campaigns in the favor of having a stronger presence
in most of these social sites. We cannot overlook the fact that Orkut, Facebook, Twitter,
LinkedIn, Slide share, Delicious all offer places where businesses and organizations can add
big value to all the larger social communities formed around these social applications.
CLASSIFICATION OF SOCIAL MEDIA
While Facebook, Twitter and LinkedIn might be the first sites that come to mind when thinking
of social networking, these popular websites do not represent the full scope of social networks
that exist. There are various options available for people to interact and collaborate with each
other online. There are seven major social network categories.
Social Connections
Keeping in touch with friends and family members is one of the greatest benefits of social
networking. Here is a list of the most widely-used websites for building social connections
online.
Facebook: Arguably the most popular social media utility, Facebook provides a way for
users to build connections and share information with people and organizations they
choose to interact with online.
Twitter: Share your thoughts and keep up with others via this real-time information network.
Google+: This relatively new entrant to the social connection marketplace is designed to
allow users to build circles of contacts that they are able to interact with and that is
integrated with other Google products
21
MySpace: Though it initially began as a general social media site, MySpace has evolved
to focus on social entertainment, providing a venue for social connections related to
movies, music games and more.
Multimedia Sharing
Social networking makes it easy to share video and photography content online. Here are
some of the most popular sites for multimedia sharing.
YouTube: Social media platform that allows users to share and view video content
Flickr: This site provides a powerful option for managing digital photographs online, as well as
for sharing them with others.
Picasa: Similar to Flickr, Picasa provides a way to organize and share photos. It is a Google
product and so offers integrated tagging and sharing with Google+.
Professional
Professional social networks are designed to provide opportunities for career-related growth.
Some of these types of networks provide a general forum for professionals to connect, while
others are focused on specific occupations or interests. A few examples of professional
social networks are listed below.
LinkedIn: As of November of 2011, LinkedIn had more than 135 million members, making it
the largest online professional network. Participants have an opportunity to build relationships
by making connections and joining relevant groups.
Classroom 2.0: Social network specifically designed to help teachers connect, share and
help each other with profession-specific matters.
Nurse Connect: Online community designed to help individuals in the nursing profession
connect and communicate with each other.
Informational
Informational communities are made up of people seeking answers to everyday problems.
For example, when you are thinking about starting a home improvement project or want to
learn how to go green at home, you may perform a web search and discover countless blogs,
websites, and forums filled with people who are looking for the same kind of information. A few
examples include:
Super Green Me: Online community where individuals interested in adopting green living
practices can interact
Do-It-Yourself Community: Social media resource to allow do-it-yourself enthusiasts to interact
with each other.
Educational
Educational networks are where many students go in order to collaborate with other students
on academic projects, to conduct research for school, or to interact with professors and
teachers via blogs and classroom forums. Educational social networks are becoming extremely
popular within the educational system today. Some examples of such educational social
networks are listed below.
The Student Room: UK-based student community featuring a moderated message board and
useful resources related to school
22
The Math Forum: A large educational network designed to connect students with an interest
in math, this site provides interaction opportunities for students by age group.
ePALS School Blog: This international social network for K-12 students is designed to build
international connections to promote world peace.
Hobbies
One of the most popular reasons many people use the Internet is to conduct research on
their favourite projects or topics of interest related to personal hobbies. When people find a
website based on their favourite hobby, they discover a whole community of people from
around the world who share the same passion for those interests. This is what lies at the
heart of what makes social networks work, and this is why social networks that are focused
on hobbies are some of the most popular. A few examples of hobby-focused social networking
sites include:
My Place at Scrapbook.com: Designed specifically for scrapbooking enthusiasts, users can
create profiles, share information, post updates and more.
Sport Shouting: An online destination for sports fans to voice their opinions and connect with
other enthusiasts.
Academic
Academic researchers who want to share their research and review results achieved by
colleagues may find academic-specific social networking to be quite valuable. An example of
online communities for academics is:
Academia.edu: Users of this academic social network can share their own research, as well
as follow research submitted by others.
23
There are a vast number of social media sites that could be used for advertising; however for
this study we used different social media like Facebook, YouTube, Twitter, BlogSpot and
Google+.
FUNDAMENTALS OF SOCIAL MEDIA MARKETING
Leveraging the power of content and social media marketing can help elevate the customer
base dramatically. Understanding social media marketing fundamentals will help build a
foundation that will serve customers, the brand and also improve the companys bottomline.
1. LISTENING
Succeeding in social media and content marketing will need more of listening and less of
talking. We shall read target audiences online content and join their discussions to learn
whats important to them. Only then we can create content and spark conversations that add
value rather than clutter to their lives.
2. FOCUS
A highly-focused social media and content marketing strategy with an intention to build a
strong brand has more chances for success than broad strategies that attempt to do all
things to all people.
3. QUALITY
Quality trumps quantity. It will be better to have 10,000 online connections who read, share
and talk about your content with their own audiences than 10,00,000 connections who
disappear after connecting with you the first time.
4. PATIENCE
Success in Social media and content marketing doesnt come overnight. In order to achieve
big, its more likely that you need to commit to the long haul to achieve results.
5. COMPOUNDING
If we publish amazing, quality content and build online audience of quality followers, theyll
share it with their friends on Facebook, Twitter, LinkedIn, their own blogs and more. This
sharing and discussing of content opens entry points for search engines like Google to find it
in keyword searches. Those entry points could grow to hundreds or thousands of more potential
ways for people to find you online.
6. INFLUENCE
Spend time to find online influencers who have quality audiences likely to be interested in the
companys products, services and business. Connect and build relationships with them. If
you succeed to get on their radar as an authoritative, interesting source of useful information,
they might share your content with their friends, which could put your business in front of a
huge new audience.
7. VALUE
Do not spend all your time on the social web promoting your products and services as people
will stop listening. Add value to the conversation. You should focus less on conversions and
more on creating amazing content while developing relationships with online influencers.
They will become a powerful catalyst for word-of-mouth marketing for your business.
24
8. ACKNOWLEDGMENT
We will not ignore someone who reaches out to us in person so should not ignore people who
want to connect online. Building online relationships is an important part of social media
marketing success, so we shall ways acknowledge every person who reaches out to us.
9. ACCESSIBILITY
We should not disappear after publishing the content. Always we shall try to be available to
our audience. It means we should consistently publish content and participate in conversations.
Online followers are fickle minded and they wont hesitate to replace you, if you disappear for
weeks or months.
10. RECIPROCITY
Dont expect others to share our content and talk about us if you dont do the same for them.
So, spend time on social media focusing on sharing and talking about content published by
others.
OBJECTIVES OF THE STUDY
1. To study the effectiveness of Marketing through social media.
2. To study the level of acceptance of social media marketing.
3. To offer suggestions for the improvement of social media marketing.
4. To study if social media account subscribers are sharing the Posts that they go
through.
5. To study if brand followers are following the posts of the BRANDs Page in social
media.
SCOPE OF STUDY
The study is conducted to understand the various aspects of Social media Marketing and
whether advertising through social media is effective and accepted by the people and also
their level of acceptance by collecting data from respondents at various Internet Kiosks in
Hyderabad. The findings and conclusions from this study are based on responses of people
in the city only. This study will be helpful to some extent in gaining an insight into Social
Media Marketing.
RESEARCH METHODOLOGY
Research Design
The main purpose of this study is to know about effect of Advertisements in Social media on
internet users. Descriptive research is used here for studying customer preferences. The
main goal of this Descriptive research is to describe the data and characteristic about the
subject that is under study. The study is conducted on customers at various Internet cafes.
The sampling frame used in this study included the members of various social networks like
Facebook, Twitter, YouTube in Hyderabad. Structured questionnaires were being distributed
to customers on a random basis. Customer survey method was used for collecting the required
data from internet caf visitors. We requested the respondents to fill the given questionnaire,
by self after clearly explaining the various questions in it. The size of the sample taken in this
25
study is 110.For analysis and interpretation, only primary data is used. However, for conclusion
and recommendations, both primary and the secondary data along with the verbal knowledge
and information obtained from respondents, though they are outside the parameters of
questionnaire were also included. The data collected from these sources were analyzed
using various tools like percentage analysis, chi-square test, cross table analysis method. A
standard questionnaire is formulated for the collection of survey data from various customers.
The Questionnaire is designed in such a way that it would collect all the needed information
for the study and cover all the aspects defined in the objectives. SPSS version 16 will be used
to tabulate and analyze the valid responses. Initially, a comprehensive data file was created.
Then, variables and their labels were defined. Statistical tools like Chi-Square and cross
tabling were used for the analysis.
ANALYSIS AND INTERPRETATION
General Profile of the Respondents
SEX
Male
68
42
AGE
18-24
25-30
31-36
37-42
Above 42
21
36
24
16
13
EDUCATION
ILLITERATE
DIPLOMA
GRADUATION
PG
16
19
42
PROFESSION
STUDENT
BUSINESS
IT-EMP
31
25
32
15
INCOME
<10,000
10,000-20,000
20,000-30,000
>30000
21
22
29
38
HOW OFTEN DO YOU USE YOUR SOCIAL

MEDIA ACCOUNTS?
ONCE A DAY
Female
33
MANUFACTURING-EMP OTHERS
7
ONCE A WEEK ONCE IN TWO WEEKS
43
36
31
FACEBOOK
YOUTUBE
GOOGLE+
LINKEDIN
TWITTER
35
24
16
21
14
WHAT KIND OF ADVERTISING MEDIA YOU

PREFER THE MOST?
PRINT MEDIA
ELECTRONIC
MEDIA
SOCIAL MEDIA
TRANSIT MEDIA
22
47
34
REASON FOR YOU TO USE SOCIAL MEDIA
TO BE IN
CONTACT
WITH YOUR
FRIENDS
TO ENTERTAIN
YOURSELF
TO PASS TIME
TO GET LATEST UPDATE
47
31
18
14
THE SOCIAL MEDIA SITE YOU PREFER
Interpretation:
From the above table, we infer that 68(62%) of the total respondents are male and 42(38%)
are female.
On further classification according to age group, we find that of all the respondents 21(19%)
are between 18-24 years old, 36(33%) are of the age group 25-30, 24(22%) are of the age
group 31-36, 16(15%) are of the age group 37-42 and 13(12%) are above 42 years.
26
On the basis of Monthly income, 43(39%) are below the income of 20,000, 67(61%) are
above the income level of Rs 20,000. Most of the Social Media users 47(43%) cited To Be In
Contact With Your Friends as the reason for joining it.
On the basis of Profession, Students and IT Employees formed the bulk of users of Social
Media.
Customer satisfaction levels of various parameters of service provided at organized

retail outlets
DO YOU OBSERVE ANY ADVERTISEMENT WHILE USING YOUR SOCIAL MEDIA SITE?
DO YOU SHARE WITH YOUR FRIENDS THE INFORMATION ABOUT THE ADVERTISEMENT YOU
SEE ABOUT A PRODUCT ON YOUR SOCIAL MEDIA SITE ?
SA
NUETRAL
DA
31
24
32
23
SDA
0
43
38
29
DO YOU ACCEPT ADVERTISEMENT INTERRUPTING YOU WHILE USING THE SOCIAL MEDIA ?
38
31
24
12
DO YOU FOLLOW SOCIAL MEDIA ADVERTISEMENTS?
50
28
32
DO YOU FIND CLAIMS MADE IN THE ADVERTISEMENTS TO BE BELIEVABLE?
22
24
31
33
DO YOU ENQUIRE MORE ABOUT THE PRODUCT WHICH YOU HAVE SEEN ADVERTISED IN THE
SOCIAL MEDIA
DO YOU FOLLOW THE BRAND PAGE OF YOUR FAVORITE BRAND?
31
34
22
19
52
28
30
ARE YOU REGULARLY FOLLOWING THE POST POSTED BY THAT COMPANY
49
34
27
27
CHI-SQUARE TEST
Is There a Relation between MONTHLY INCOME and SOCIAL MEDIA USAGE?
28
CHI-SQUARE:
From the above SPSS calculation we infer that there is a significant relation between MONTHLY
INCOME and SOCIAL MEDIA USAGE.
Is There a Relation between AUDIENCE SEEING SOCIAL ADS and THEM BELIEVING
IN SOCIAL ADS?
CHI-SQUARE:
29
From the above SPSS calculation we infer that there is a significant relation between AUDIENCE
SEEING SOCIAL ADS and THEM BELIEVING IN SOCIAL ADS.
Is There a Relation between AUDIENCE SEEING SOCIAL ADS and THEM SHARING
SOCIAL ADS?
CHI-SQUARE:
30
From the above SPSS calculation we infer that there is a significant relation between AUDIENCE
SEEING SOCIAL ADS and THEM SHARING SOCIAL ADS indicating Audiences are sharing
more number of Ads.
Is There a Relation between AUDIENCE FOLLOWING A BRAND PAGE and THEM SEEING
REGULAR POSTS FROM IT?
CHI-SQUARE:
From the above SPSS calculation we infer that there is no significant relation between
AUDIENCE FOLLOWING A BRAND PAGE and THEM SEEING REGULAR POSTS FROM
IT. So it indicates that Indian Customers are demanding Value-for-Money Products and are
not that much Brand Specific.
CONCLUSION
Social media advertising has a significant impact over the people who use social media sites.
A very less number of people do not have any information about social media advertisement.
Social media advertising is taking the way towards the bright future in the advertising field.
People accept social media advertisement so marketers must concentrate more on social
media advertisement.
31
Companies now have to look more towards the social media advertisement as it is taking
over as one of the new and the best form of advertising. Even people who come on social
media should be asked what kinds of advertisements they like to see while using the social
media.
Social media today has started playing a key role in the purchase decision of the consumers
and even people accept social media advertisement and even it is being one of the best ways
for the marketers to market their products directly to their targeted consumer.
Social media marketing helps by increasing Website traffic, Conversions, Brand Awareness
and creating a brand identity and positive brand association by improving Communication
and interaction with key audiences and measure social media ROI.
SUGGESTIONS
To improve Social Media Marketing some steps to be taken are:
Planning a social media marketing strategy is essential. We should do keyword research
and brainstorm our content ideas to arouse target audience.
Content is the king when it comes to social media marketing. Make sure you offer valuable
information that customers find interesting. Create content using images, videos, and info
graphics in addition to the classic text-based one.
Using social media for marketing will enable us to project our brand image across different
social media platforms.
Blogging is a social media marketing tool that lets us share information and content with
readers. The company blog will also serve as our social media marketing blog, in which we
blog about our recent social media efforts, contests, and events.
If social media for marketing relies on businesses sharing own unique, original content to
gain followers it will be great to link to outside articles as well if they provide great, valuable
information that target audience will enjoy as it improves trust and reliability.
Tracking Competitors is important as it can provide valuable data for doing keyword research,
where to get industry-related links and also other social media marketing insight. If our
competitors are using a certain social media marketing technique that seems to be working
for them, we can do the same thing, better.
We can analyze the success of social media marketing strategies by tracking data. Google
Analytics can be used as a great social media marketing tool that helps measure triumphant
social media marketing techniques and determine which strategies are to be abandoned.
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Communication, & Society, 8 (2), 125-147.
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Symposium on Information Visualization (pp. 33-40). Minneapolis, MN: IEEE Press.
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Hjorth, L., & Kim, H. (2005). Being there and being here: Gendered customising of mobile
3G practices through a case study in Seoul. Convergence, 11 (2), 49-55.
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Hodge, M. J. (2006). The Fourth Amendment and privacy issues on the new Internet:
Facebook.com and MySpace.com. Southern Illinois University Law Journal, 31, 95-122.
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Jagatic, T., Johnson, N., Jakobsson, M., & Menczer, F. (2007). Social phishing.
Communications of the ACM, 5(10), 94-100.
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vs. social browsing. Proceedings of CSCW-2006 (pp. 167-170). New York: ACM Press.
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routing in social networks. Proceedings of National Academy of Sciences, 102 (33) 11,62311,628.
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34
http://www.
A Study on Investor Perception of Small

Savings Schemes in West Bengal
Satarupa Roychowdhury*
ABSTRACT
Investors, institutions, and microfinance customers are worried about returns to investors following
the recent Chit Fund crisis in West Bengal. Investors attitude towards local chit fund serves as a
major investment tool and has always been a back support for the investors appetite which is
largely attributed to both cognitive and affective components of attitude. The research study focuses
on investors attitudes from three perspectives: investors attitudes towards the chit fund, towards
investees (small level finance companies) and formation of consumer attitudes based on external
stimulus. Investors generally invest more in chit funds because of safety, liquidity, capital gains
and transparency. The savings and investments behavior of investors such as purpose of savings,
current holding of investment, etc. are evaluated after focusing on general profile of the respondents
in this study. Focus of the study is based on the factors that influence investors investment behavior
before the chit fund crisis hit West Bengal. The undertaken investigation outlined that mostly the
investors had positive approach towards investing in chit funds. The research study indicates that
the satisfaction level of the investors towards the service provided by the investee is 90%. The data
clearly shows that 56% of the respondents earn a profit of 15% and more and this shows that the
profit earned through chit funds is a very considerable amount.
Keywords: investment, finance, attitude, chit funds.
INTRODUCTION
Savings form an important part of the economy of any nation. With the savings invested in
various options available to the people, the money acts as the driver for growth of the country.
Indian financial scene too presents a plethora of avenues to the investors. Investors attitude
about saving schemes will have a significant impact on the saving behavior of people. For
example, people who have positive perception about the scheme in which they have invested
will continue to invest in the same scheme. Very often, they will start investing on other
schemes from the same institutions. People with positive perception might tell good things
about the schemes to other people. In fact, they might act as unpaid publicity agents. Hence,
it is necessary to study about the attitude or perception that exists among investors about
saving schemes and institutions offering such instruments. The sooner one starts investing
the better it is. By investing early, you allow your investments more time to grow, whereby
the concept of compounding increases your income year after year.
Chit is a kind of savings scheme practiced in India. In a chit scheme, a specific number of
individuals come together to pool a specific amount at periodic intervals. Usually the number
of individuals and the number of periods will be same. At the end of each period, there will be
an auction of the money. Members of the chit will participate in this auction for the pooled
money during that interval. The money will be given to the lowest bidder. The bid amount will be
divided by members, and thus determining per head contribution during that period. Usually
*
Assistant Professor, Army Institute of Management, Kolkata 700027; Email: satarupa.roy@gmail.com
35
the discount will continue to decrease over periods. The person getting money in the last
period will receive the full scheme amount. Such chit fund schemes may be conducted by
organized financial institutions or may be unorganized schemes conducted between friends or
relatives. There are also variations of chits where the savings are done for a specific purpose.
Investors, institutions, and microfinance customers are worried about returns to investors
following the recent Chit Fund crisis in West Bengal. India has a large low-income rural
population with low access to formal banking facilities. A web of parallel informal banking
arose to fill the vacuum. At its centre were moneylenders, who used to charge exorbitant
rates of interest. To curb this practice several Moneylenders Acts were enacted by the state
governments by 1950s. However, failure to replace the role of money lenders gave rise to flyby-night financial operators who ran Ponzi schemes in various disguises. However, some
commentators place the blame for such Ponzi schemes on greed rather than exclusion from
formal banking systems.
The relatively prosperous rural economy of West Bengal had previously relied on small savings
schemes run by Indian Postal Service. However, low rates of interest in the 1980s and 90s
encouraged the rise of several Ponzi schemes in speculative ventures such as Sanchayita
Investments, Overland Investment Company, Verona Credit and Commercial Investment
Company. Together, these scams eliminated close to 10 billion INR in investor wealth.
According to the Corporate Affairs Ministry, there were 4,156 chit funds registered in India as
of 2008, governed by the Chit Funds Act, 1961 (Madras Act) and the amended 1982 (Central)
Act. As of now, India has nearly 10,000 registered chit fund companies, the largest one being
run by the Kerala government which has been in existence since 1969. However, unregistered
chit funds would be several times the number. Two major reasons for the growth of chit funds,
legitimate or otherwise, and other dubious collective investment schemes are the lack of safe
savings schemes in rural areas, and a poor regulatory framework to check fraudulent
companies. The Saradha scam has duped 1.4 million investors of Rs 4,000 crore, but this
could well be the tip of the iceberg. Driven by the lack of legitimate savings schemes for the
rural poor, inadequate regulations and political patronage, hundreds of illegal Ponzi schemes
masquerading as collective investment schemes or chit funds have sprung up across India.
West Bengal, it seems, is slowly turning out to be the hot bed of fraudulent or Ponzi schemes
in India. Data collated by the government show more than 8 out of 10 multi-level marketing
and finance schemes against which authorities have received complaints are run out of West
Bengal. State-wise details of such schemes against which government agencies have received
complaints, show the proliferation of such suspicious schemes in West Bengal that have
raised thousands of crores of rupees from gullible investors. As on March 14, 2013, the
government had received complaints against 87 companies from across the countries that
were suspected to be carrying out Ponzi or multi-level schemes. As many as 73, i.e. 84% of
these companies, are from West Bengal and more than 30 or nearly half of these are believed
to be related to the scam-scarred Sudipta Sen-promoted Saradha group.
The present study undertakes to find out the motives behind investing in chit funds in the
state of West Bengal just before the infamous Sharadha scam stunned the nation.
LITERATURE REVIEW
A number of studies have been undertaken in India to examine the investment habits and
preferred investment avenues among the households.
36
Tamilkodi (1983), has stated that small savings schemes have a psychological appeal and it
provides an opportunity for ordinary men, women, and even youngster to park their savings. It
reaches a large number of people and covers a wide range of areas. She also suggested that
efforts should be taken to simplify small savings schemes to suit the needs of illiterate and
socially downtrodden people.
Arangasami (1992), has observed that more and more dependence on mobilization of resources
through small savings will ensure and promote self-reliance. He concluded that the Central
government should give proper assistance and encouragement to the small savings agencies,
which will be useful not only in mobilization of funds but also for the economic development.
Somasundaram (1998), has found that bank deposits and chit funds were the best known
mode of savings among investors. Attitudes of investors were highly positive and showed
their intention to save for better future.
Karthikeyan (2001), has conducted research on Small Investor's perception and the study
found that majority (73.3 per cent) of investors of both semi urban and urban areas were very
much willing to invest in small savings schemes in future provided they have more for savings.
N. S. Chiteji (2002), in his paper says that rotating savings and credit associations (Roscas)
are a popular form of informal finance in developing countries. This paper examines the Roscas
ability to enforce its terms of membership and the implications that this has for their existence
in an economy. A connection between enforcement costs and the desirability of Roscas
formation is illustrated using a framework that focuses on the nature of the financial contract
that the Roscas offers, allowing inferences to be drawn about the likely viability of Roscas
throughout the development process and the implications this has for debates about financial
dualism.
Desigan et al (2006) conducted a study on women investors perception towards investment
and found that women investors basically are indecisive in investing in mutual funds due to
various reasons like lack of knowledge about the investment protection and their various
investment procedures, market fluctuations, various risks associated with investment,
assessment of investment and redressal of grievances regarding their various investment
related problems.
Chou et al (2010) focused on Investor attitudes and behavior towards inherent risk and potential
returns in financial products; attempts were made to establish a model by which attitudes
and behavior of investors towards investment risk could be measured. A sample of Taiwanese
investors was surveyed to determine their past investment experience and recorded their
responses when exposed to economic signals. They concluded that Investors with trading
experience have higher risk propensity and tend to have a risk-embracing character. However,
investors with less experience have extremely high risk perception for stocks.
METHODOLOGY
This study is exploratory in nature and is based on questionnaire survey method. The study
aims at finding out the attitude of the investors towards investment in local chit funds among
semi-urban and rural investors in the middle to low income category in West Bengal. The
primary data was collected from the investors of local chit funds with help of a questionnaire
which were supplied among the investors of West Bengal. Some secondary data were also
collected from the book and journals. By adopting convenience sampling, 200 respondents
37
were selected for this study. The attitude level of the respondents was examined with the help
of their demographic variables. In order to study the factors on which the attitude of the investors
with the investment in local chit funds depends, a structured questionnaire was used. The
opinions of investors were collected in Likert five-point scale. Factor Analysis was used to
reduce variables into smaller number of manageable variables by exploring common dimensions
available among the variables. The variables which had common response and high correlation
were grouped under a common factor. Variables which did not have any significant effect were
suppressed. The reduced factors were found to be distinct from each other.
First, the suitability of data for the purpose of factor analysis was tested using two analyses,
namely, KMO test and Bartletts test of sphericity. The Kaiser-Meyer-Olkin Measure of
sampling adequacy is a statistic which indicates the proportion of variance in the variables
which might be caused by new factors. High values generally indicate that a factor analysis
may be useful with the data. Values less than 0.50, indicate that the results of the factor
analysis probably will not be very useful.
FINDINGS
The study was conducted mainly among semi-urban and rural investors in the middle to low
income category in West Bengal. To start with the demographic profile of the investor percentage
analysis was used.
An analysis of the demographic profile of the investors revealed that a relatively high degree
of investment (74 %) among the categories of working whereas only 26% of the non-working
have invested in local chit funds. 57% of the respondents were male, 33% were female, while
interestingly 10% marked in others. Coming to age level, the study found out that among
those keen and interested in local chit fund investing, 34% were above 50 years of age, 28%
are within 35-40 years of age group and 27% within 20-30 years age group. The education
level has witnessed a high level score of 32% for educated upto Class 8, 28% with school
education up to Class 12 followed by 26% for graduate. The income level states 57% who
were interested with local chit fund investment had an earning below Rs. 1,50,000 and 43%
had an income above Rs. 1,50,000. Under marital status, 74% of married were interested in
local chit fund investing followed by a mere 26% of the single.
Table 1: Investors Perception of Investment Avenues
Investors Perception of Investment Avenues
Investment Avenues
Frequency
%age
Chit Funds
Gold savings
44
6
22
3
Bank Deposits
40
20
Postal Savings
70
35
Insurance
26
13
Micro Finance
Total:
14
200
Source: Primary Data

Table 1 states the perception of investors towards the different investment avenues. The
38
research study witnessed that nearly 35% of the investors were opting for the postal savings
schemes as an investment avenue, followed by the chit fund schemes with 22%. The third
and fourth avenue options were given to bank deposits and insurance with 20% and 13%
respectively. 7% investors opted for microfinance and there was 3% score for gold savings.
This shows that chit funds are the second best alternative after postal savings schemes.
Perception of investors about saving schemes has a significant impact on the saving behaviour
of people. We consider the study of the factors that influence investor perception towards chit
funds. Table 2 shows that the KMO value is 0.783, which signifies that the factor analysis is
useful with the data. The chi-square value for Bartletts test of sphericity is 2491.043 and the
significant value is 0.000 which is significant at more than 99 per cent level of confidence.
This meant that the data was very much suitable for factor analysis.
Table 2: KMO Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
0.783
Bartletts Test of
Sphericity
2491.043
253
0.000
Approx. Chi-Square
df
Sig.
(Source: Primary Data)

The next step in the process was to decide about the number of factors to be derived. The
rule of thumb is applied to choose the number of factors for which Eigen values with greater
than unity is taken by using Principal component Analysis method. The component matrix
so formed is further rotated orthogonally using varimax rotation algorithm.
By performing factor analysis, twenty-six variables are reduced to seven component factors
otherwise called perceptual factors (Table 3). Each component factor includes some
statements which are otherwise called variables. Each component represents perception of
investors about one particular aspect of investment variable like investment institutions, and
statements under each factor explain the feature of such perceptual factor. The seven perceptual
factors which have Eigen values more than unity alone are taken for consideration. The seven
perceptual factors represent around 55 per cent of total variance which is very significant and
the remaining variance is explained by other factors. The first perceptual factor explains more
than 9 per cent of total variance and other six perceptual factors accounts for the remaining
46 per cent of variance.
Table 3: List of perceptual factors with percentage of variance explained
Factors
Convenient Setting
Eigen Value
4.531
% Variance Explained
9.406
% Cumulative Variance
9.407
Risk & Return

Better than Post Office
1.923
1.468
9.402
8.126
18.807
26.933
Awareness
Government Aid
1.446
1.394
7.911
7.812
34.846
42.656
Nationalistic
Others
1.053
1.019
6.927
6.192
49.585
55.776
(Source: Factor Analysis on Primary Data)

39
The list of seven component factors along with variables (statements) included under these
factors are listed in Table 4.
Table 4: Component Factors along with the variables
A.
Convenient Setting
1. Easy accessibility of services attracts more investors towards the chit fund
schemes.
2. Chit funds provide easier source of finance
3. Procedural formalities are rather simple and easy for investing money in chit funds
4. I invest in chit funds because I can borrow in times of emergency
B.
Risk & Return

5. Chit funds are riskier investment options
6. Huge number of agents enable investor attraction towards the chit fund schemes
7. Perception of government support for the chit funds help mobilize more funds
8. Chit funds give higher rate of return than any other investment schemes
C.
Better than Post Office

9. Chit funds are more convenient forms of investment than post office schemes
10. Chit funds are a better place of investment than post office/ banks
11. Chit funds give higher returns than post office
12. Chit funds allow both savings and borrowal
D.
Awareness
13. Awareness level of small savings schemes among public is very less
14. I know all the features of chit fund schemes
15. I can distinguish between a Chit fund and MFI
16. I dont want to know much about the details of a scheme if I am convinced of
government support
17. I trust my agent fully
18. Chit funds should be highly regulated to provide more assurance to people
E.
Government Aid
19. Post offices play an effective role in mobilizing small savings, particularly from the
middle and poor classes in the rural areas
20. Postal saving really helps the small investor
21. Government is giving high interest to small saving than bank interest only to help
the small investor
22. Post office employees are customer-friendly to the investors
23. Post offices advances against small saving certificate are helpful
24. All small saving schemes are government-sponsored schemes
25. Government is not spending adequate money for advertisement on small savings
F.
Nationalistic
26. All Indians should put money in productive saving instruments
27. All Indians do have good saving habit
28. Government need not offer any saving schemes
29. Household savings help the economic development of the country
40
G.
Others
30. Range of products (schemes) in small savings must be increased
31. Availability of banking channels must be extended to the semi-urban and rural
areas
32. Agents play a vital role in mobilizing the savings of people
Factor Analysis gives out 7 component factors which are Convenient setting, Risk & Return,
Better than Post Office, Awareness, Government Aid, Nationalistic and Others guiding in
investor perception and investment behavior.
The chit funds were one of the preferred investment avenues amongst the respondents just
before the Saradha Scam surfaced. This can be substantiated with secondary data on the
growth rate of small savings deposits in West Bengal just before the Scam was unfolded.
There was a significant drop in the net collection of small savings in the West Bengal from
2006-07 as depicted in Figure 1 below.
Figure 1: Asset Mobilization under Postal Savings Schemes
(Source: Statistical Appendix, Economic Review, 2012-13, Government of West Bengal)

In 2005-06, the net collection was Rs 9895.53 crore, which decreased to Rs 6238.93 crore
and further to only Rs 490.64 crore in 2007-08. If we compare this with the effective rate of
interest on small savings given in Table 5, it is seen that there was a significant decline in the
rate of interest since 2006-07. Between 2005-06 and 2007-08 therefore a large amount of
money amounting to at least Rs 9000 crore went out of the small savings schemes in West
Bengal. This huge amount of money must have found some alternative source of investment
during the period between 2006 and 2008. It is therefore not a coincidence that the fraud
financial companies like Saradha started their operations in and around this period.
Subsequently, again between 2010-11 and 2011-12, there has been yet another drastic fall in
the net collection of small savings in West Bengal. During this period, however the rate of
interest did not decrease. In fact, it increased marginally on small savings schemes. But still
the net collection fell drastically. The only change that West Bengal witnessed during this
period was expansion and the change in government. The apparent clout that Saradha had
41
Table 5: Growth Rate of Bank Deposits and Small Savings Deposits (in %) and
Interest Rates
Year
Growth Rate of Bank

Deposits (in %)
Growth Rate of Small

Savings Deposits (in %)
Effective Interest Rates in

small saving schemes
2002-03
16.1
19.8
11.06
2003-04
17.5
19.4
11.86
2004-05
13
22
8.53
2005-06
24
16
9.86
2006-07
23.8
9.3
9.97
2007-08
22.4
-0.2
9.25
2008-09
19.9
-1.4
7.79
2009-10
17.2
8.8
10.87
(Source: Report of the Committee on Comprehensive Review of Small Savings Fund, 2011)
with the ruling parties (and vice versa) enabled Saradha to mobilize huge amounts of money
with the active connivance of ruling party leaders at various levels. The expansion and
consolidation of groups like Saradha began with the fall in the small savings between 200609, which was due to the faulty policies of the central government in terms of reducing the
attractiveness of small savings by reducing interest rates on them. But with the new government
coming to power, this slide gathered pace and filled the coffers of Saradha-like companies.
CONCLUSION
From the analysis presented here, it is clear that perception of investors has an impact on
their risk-bearing capacity and venue of investment. It is also stated that perception is influenced
by age, experience, and tax payment and it has an association with saving motives and
behaviour of individuals. In the small savings sector, Microfinance and Chit funds are good
options to explore alongside post-office savings schemes. Chit funds was a preferred investment
option amongst the respondents before the Saradha Chit fund scam was discovered. With
the money it collected, many of the funds did not create the assets it promised it would. It
merely gave money collected from one depositor to pay off another. The motives behind
investing in Chit Funds were analysed by performing factor analysis and twenty-six variables
are reduced into seven component factors otherwise called perceptual factors. The study
was further reinforced by studying secondary data on assets mobilized by postal savings
scheme over the years. After the Saradha Scam was unfolded, there has been a shift of
preference in the investment avenues of investors towards the traditional schemes like the
post office savings schemes and insurance.
REFERENCES
1.
Arangasami, A., (1992), A study of small savings schemes in Tamil Nadu with special
reference to Madras District during 1981-82 to 1990-91, unpublished thesis, University of
Madras, Tamilnadu, India.
2.
Chiteji, N.S., (2002), Promises Kept: Enforcement and the Role of Rotating Savings and
Credit Associations in an Economy Journal of International Development, 14, pp. 393-411.
3.
Chou, S. R., Huang, G. L., and Hsu, H. L. (2010). Investor Attitudes and Behavior towards
42
Inherent Risk and Potential Returns in Financial Products, International Research Journal
of Finance and Economics, 44, pp. 16-29.
4.
Desigan et al. (2006), Women Investors Perception towards Investment: An empirical Study,
Indian Journal of Marketing. Retrieved from: http://www. google.com. (accessed on
09.12.2013)
5.
Karthikeyan, B., (2001), Small Investors Perception on Post Office Small Savings Schemes,
unpublished thesis, Madras University, Tamilnadu, India.
6.
Ministry of Finance, Government of India, (2011). Report of the Committee on Comprehensive

Review of Small Savings Fund.
7.
Somasundaram, V.K., (1998), A Study on Savings and Investment Pattern of Salaried Class
in Coimbatore district, unpublished thesis, Bharathiyar University, Coimbatore, Tamilnadu.
8.
Statistical Appendix, Economic Review, 2012-13, Government of West Bengal.
9.
Tamilkodi, A.P.P., (1983), Small Savings Schemes in Tamil Nadu: A Trend Study (1970-80),
unpublished thesis, University of Madras, Tamilnadu.
43
44
Customers Perspective regarding Problems

from Bancassurance Services: A Study of
Public and Private Sector Banks
Nancy Arora* & Dr. Arti Gaur**
ABSTRACT
Bancassurance is an agreement in which a bank and an insurance company form a partnership
so that the insurance company can put up for sale its products to the banks client base. Through
this paper, an attempt has been made to trace the problems of customers from public and private
sector banks for the bancassurance (State Bank of India, Bank of Baroda, Punjab National Bank,
Bank of India, HDFC, ICICI, Kotak Mahindra Bank and Axis Bank). This paper explored the effects
of age, banking sectors and gender on the problems faced by the customers from bancassurance
services. The relevant data in this regard has been analyzed with help of ANOVA. The major
findings, results and implications of the study have been interpreted on the basis of such analysis.
The results showed that the bancassurance services are better in private sector banks as compared
to public sector banks. Further, it is also found that customer faces more problems in public sector
banks. Gender has no significant impact on the problem faced by the customers but on the
contrary, age has significant impact on it.
Keywords: Customers Perspective, Bancassurance Services, Public Sector Banks, Private Sector
Banks.
INTRODUCTION
Bancassurance is the partnership or relationship between a bank and an insurance company
whereby the insurance company employs the bank sales channel in order to sell insurance
products. According to IRDA, Bancassurance refers to banks acting as corporate agents for
insurers to distribute insurance products. It is an agreement in which a bank and an insurance
company form a partnership so that the insurance company can put up for sale its products
to the banks client base. Bancassurance allows the insurance company to preserve smaller
direct sales teams as their products are sold through the bank to bank clients by bank staff
and employees as well. Bank staff and tellers, rather than an insurance seller, become the
point of sale and point of contact for the customer. Bank staff are directed and supported
by the insurance company through product information, marketing campaigns and sales
education. The bank and the insurance company divide the commission. Insurance policies
are practiced and administered by the insurance company.
This partnership agreement can be profitable for both companies. Banks can make additional
revenue by selling the insurance products while insurance companies are able to expand their
customer base without having to expand their sales forces or disburse commissions to insurance
*
**
Ph.D, Research Scholar; Department of Business Administration, CDLU, Sirsa-125055; Harayana; Email:
nancyarora142@gmail.com
Assistant Professor, Department of Business Administration, CDLU, Sirsa-125055; Harayana; Email:
artigaur2009@gmail.com
45
agents or brokers. This can assist the consumer in some situations; for example, when a
bank requires life insurance for those obtained a mortgage loan, the consumer could purchase the
insurance directly from the bank. Some critics think that bancassurance gives the bank too
much control. Bancassurance is not legal in all countries, but it is legal in the India.
In India, the process started in 2000. IRDA came with regulation on registration of Indian
companies. Government of India also issued a notification specifying Insurance as an allowable
form of business that could be undertaken by banks under Section 6(1) (o) of the Banking
Regulation Act, 1949. However it was clarified that any bank intending to take up the business
would have to get specific approval from RBI. All scheduled commercial banks were allowed
to undertake insurance business as agent of insurance companies on fee basis without any
risk participation. Specific rules were outlined for setting up of joint venture companies for
undertaking insurance business with risk participation. Traditionally, insurance products were
sold only through individual agents and they accounted for a major chunk of the business in
retail section. With the opening up of this sector to private players, competition has become
stronger and the public sectors major player LIC has been challenged with an overflow of new
products and new means of marketing. Insurance industry in India has been progressing at a
rapid speed since opening up of the sector to the entry of private companies in 2000.
In India, there are a number of causes why bancassurance could play a natural role in the
insurance market. First, banks have a vast network across the country. Second, banks can
offer fee-based returns for the employees for insurance sales. Third, banks are ethnically
more acceptable than insurance companies. Some bank products have ordinary
complementary insurance products. For example, if a bank provides out a home loan, it
might insist on a life insurance cover so that in case of death of the borrower, there is no
problem in paying off the home loan. Similarly, a car loan could only be given if comprehensive
auto insurance is received out on that particular car. It is therefore a core issue for the best
path ahead of many developing countries that the correct emphasis should be placed upon
insurance. In particular, it is essential that the best environmentregulatory, legal, social,
and politicalshould be produced to foster the effective growth of good insurance products.
Neelamegam and Veni (2008) reviewed that Indian economy is growing at 9% of growth rate,
increasing PPP (purchasing power parity), huge inflow of FDI, expansion of middle income
class Indians and huge banking infrastructure across urban, semi urban and rural India. They
found that bancassurance, if taken in right spirit and implemented properly can be a win-win
situation for all the participants, viz., banks, insurers and the customers.
G. Raju (2009) advised that insurance is an important segment under financial services. The
life insurance sector provides long-term funds for development of infrastructure. The pace of
growth of life insurance in India accelerated with the process of opening up of the economy
through globalization and liberalization. However, the level of penetration is less when compared
to the World average and many other countries. The results of this case study reveal that life
insurance is preferred mainly for risk coverage and tax benefits.
Singh (2009) examined many products under basis of common basic constituent elements.
According to the author, LIC products are weak as compared to private insurers, so he
suggested that the corporation must design stable products strategies with durable elements
like private player that can fulfill the needs of various customers and further build its image
46
and good will to retain. He added that private insurers are advised to improve their age-wise
strategies as a whole life plan to compete with LIC. IRDA should also make provisions regarding
the issues of life plans according to the changing economic conditions, as we use the clothes
according to the seasons, to save the innocent customers from the probable loss and give
the real benefit of the insurance to them. In the present state of recession in the economy
only the traditional plans should be allowed to sell and not the ULIPs because it may result
into great losses for the customers. He added further that if ULIPs are allowed, then it should
be only with guaranteed returns.
Pasricha & Singh (2009) in their PhD thesis revealed that why LIC is not going ahead and
proposed the basic reason is that their products as well as technology are not upgraded and
also there is need to improve the processes and popularize the scheme. With the entry of
private insurers in the industry many new channels of distribution have become available.
However, LIC has not used them to the desired level. So author recommended that such
channels be used aggressively by LIC to meet the rising level of competition. He also highlighted
that advertisements plays an important role. With the help of advertisement it increases
awareness about life insurance products among the masses.
Tiwari and Yadav (2012) focused to know the level of customer awareness, satisfaction and
perception towards buying life insurance products from bancassurance; a new model of
distribution of insurance products. The study revealed that a large number of respondents
were not aware of the concept of bancassurance. Hence, there is a need to spread awareness
about bancassurance among the general public. The study described that a majority of the
respondents are buying life insurance policy for tax benefits. Hence, Insurance company
should communicate right message to the people and motivate people for buying policy for
life protection. Trust and safety is the main reason for which most of the respondents were
buying life policy through banks. People have more faith on bank in comparison to other
modes of distribution channel. The survey studied that a majority of the respondents were
buying life policy from agents. Hence, agent is the most acceptable and popular mode of
distribution channel in Indian life Insurance Industry. Most of the respondents were only
moderately satisfied with various services of banks. Therefore, bank needs to improve the
quality of its services to get more customer and high satisfaction.
T. Hymavathi Kumari (2012) explained that there is lot of opportunities available in the Indian
market to the banks to cross sells insurance products. Identification of target customer
market and specific insurance products increases the banks performance to cross-sell the
insurance products. Therefore, banks in India should try to exploit the existing opportunities
to cross-sell insurance products through their branch network, by designing a clear and
effective marketing strategy aimed at increasing awareness and customers willingness to
choose banks as insurance providers. Banks should focus on integrated marketing
communication strategy that encompasses advertising, public relations and direct marketing
in order to inform their customers about the provision of insurance services via their branch
network. This is a good indication for the emerging development of the Indian economy.
Gonulal (2012) conducted research at Mexican insurance market. Bancassurance has been
used both by insurance companies that belong to financial groups and by other insurers.
Both have taken advantage of the interface offered by the banking infrastructure to reach a
large number of clients. The large participation of bancassurance in the insurance policies
issued indicates an important potential for growth in most lines of business. Although traditional
47
channels are still the main mechanism of insurance distribution, sales through bank branches
are a market practice that represents a distribution channel with a high potential to increase
market penetration, being able to reach population segments in Mexico that still remain with
little or no access to insurance products.
Rajan and Gomatheeswaran (2013) reviewed the level of bancassurance satisfaction towards
the bancassurance services. They found that the public and private sector banks are competing
each other which in turn influence the economy. And majority of the general public is not giving
much importance to public or private sector banks instead they are giving priority for the
convenience.
OBJECTIVES OF THE STUDY
To explore the customers perspective regarding problems from bancassurance services

in selective public sector banks and private sector banks.
To study the impact of the personal factors including gender and age on the problems of
customers from public and private sector banks for the bancassurance service.
To compare the problems of customers from public and private sector banks for the
bancassurance service.
Hypothesis of the Study
H01: There is no significant impact of gender on the problems faced by the customers
from bancassurance services of the public and private sector banks.
H02: There is no significant difference between the problems faced by the customers
from bancassurance services in the public and private sector banks.
H03: There is no significant impact of age on the problems faced by the customers from
bancassurance services in the public and private sector banks.
Sample Profile
PUBLIC SECTOR BANKS
Selected Banks
Sample Size
1.
State Bank of India
40 respondents from
2.
Bank of Baroda
each selected Bank
3.
Punjab National Bank
4.
Bank of India
Total Sample Size For Public Banks
160
PRIVATE SECTOR BANKS

Selected Banks
Sample Size
5.
HDFC Bank
40 respondents from
6.
ICICI Bank
each selected Bank
7.
Kotak Mahindra Bank
8.
Axis Bank
Total Sample Size For Public Banks
160
TOTAL SAMPLE SIZE 320

48
Sampling Technique
Judgment sampling technique has been used for data collection. Every sincere effort has
been taken by the researcher to avoid bias in selection of respondents.
Data Collection
Primary and secondary data has been used. Primary data has been collected from wellstructured questionnaire which have been prepared with all the important details regarding
bancassurance services and about the habits of customers whereas secondary data has
been collected from various annual reports of IRDA and RBI, books, journals, newspapers,
magazines, websites, etc.
Data Analysis Technique
The collected data has been analyzed with help of statistical tool ANOVA. The application of
this tool has been identified as relevant to the objectives of the study frame.
DATA ANALYSIS
This research deals with primary data collected from bancassurances customers through
structured questionnaire. 320 customers have responded from eight selected banks in Haryana.
To prove the hypothesis, statistical technique i.e., ANOVA has been used. The observation of
the questionnaire was studied on the basis of Likert scale from Strongly Agree=1, Agree=2,
Uncertain=3, Disagree=4, Strongly Disagree=5, hence lower the mean score, higher was the
agreement towards that statement.
Table- 4.1(a) Impact of gender on the problems faced by the customers from
bancassurance services
Statements
Sig.
Absence of posters and communication on bancassurance
.125
.512
Absence of brochure on bancassurance policies, rules and procedures.
.159
.598
Lack of updates on product knowledge, product training and

product awareness.
.763
.295
Lack of interest and motivation among bank staff in promoting bancassurance.
.729
.540
Lack of details of bancassurance at contact point counters like advances,

fixed deposit counters and new account opening counters.
1.250
.128
No sharing of commission as incentive to bankers.
.841
.542
The rates of premium for bancassurance are not competitive.
.129
.890
Corporate clients have affinity towards international insurance company.
.204
.593
Absence of new product, better technology and diversified insurance

product for car, house and property.
.319
.235
Acknowledgment kit timely delivered to customer.
.831
.385
* Significant at 5% level
Source - Survey Data
Table 4.1(a) depicts the results of ANOVA. For assessing the impact of the gender on the
problems of customers from public and private banks for the bancassurance services, ten
49
statement related to the problems of customers towards the bancassurance services were
taken. Out of these, no statement is found to be significantly affected by the gender that is
shown in table (as there is no significance value which is less than 0.005). Therefore, null
hypothesis H01 is accepted which shows that there is no significant impact of gender on the
problem faced by the customers from bancassurance services of the public and private sectors
banks. Males and females both are facing same kind of problems.
Table- 4.2(a) Effect on various banks of the problems faced by the customers from
Statements
Sig.
1.510
.238
7.207
.002*
Lack of updates on product knowledge, product training and product awareness.
19.801
.001*
29.714
.000*
Lack of details of bancassurance at contact point counters like advances, fixed

deposit counters and new account opening counters.
.422
.766
No sharing of commission incentives to bankers.
5.266
.004*
8.148
.000*
7.323
.001*
Absence of new product, better technology and diversified insurance product for
car, house and property.
10.055
.000*
3.654
.053
Table 4.2(a) portrays the effect of various banks on problems faced by the customers from
bancassurance services. For this ten statements were being studied and out of these
statements, seven statements (marked by *) were found to have significant impact on the
various banks, which is shown in the above mentioned table. The significance value of these
statements is less than 0.05. So these statements are found to have significant impact at
5% level of significance. Therefore null hypothesis H02 is rejected which shows that there is
significant difference in the problems faced by the customers from bancassurance services
of public and private sectors banks.
Table-4.2(b) Descriptive mean of various banks on the problems faced by the
customers from bancassurance services.
Absence of brochure on
bancassurance policies, rules
and procedures.
50
State
Bank
of
India
Bank
of
Baroda
Punjab
National
Bank
Bank
of
India
2.1250
2.6558
1.9618
2.2886
HDFC
Bank
ICICI
Bank
Kotak
Mahindra
Axis
Bank
3.5896
6
4.2000
0
4.1477
3.9871
1
Lack of updates on product

knowledge, product training
and product awareness.
2.8926
2.7185
2.5806
2.6138
3.5189
9
3.9500
0
4.0897
4.1458
8
Lack of interest and motivation

among bank staff in promoting
bancassurance.
1.8952
2.2256
1.0228
1.7756
4.1258
8
4.1000
0
3.8799
4.3569
9
2.9215
3.1525
3.0257
3.4456
3.2351
1
2.9250
0
The rates of premium for

bancassurance are not
competitive.
3.1226
2.9758
3.0061
2.1515
2.9165
5
2.3500
0
2.9652
2.9892
2
Corporate clients have affinity

towards international insurance
company.
2.5618
2.9463
2.7819
2.8465
3.0125
5
2.7750
0
2.9879
3.0789
9
1.2546
1.0125
1.7849
1.2158
4.0158
8
4.0050
0
No sharing of commission
incentives to bankers.
Absence of new product, better

technology and diversified
insurance product for car, house
and property.
3.0859
4.1298
3.0147
7
4.0012
2
It is clear from the descriptive mean analysis that problems faced by the customers in public
sectors banks are more than the private sector banks. The brochure on bancassurance is
available more in private sector banks than public sector banks as is displayed in above
table 4.2(b) and its corresponding mean value in State Bank of India (2.1250), Bank of Baroda
(2.6558), Punjab National Bank (1.9618), Bank of India (2.2886), HDFC (3.5896), ICICI Bank
(4.2000), Kotak Mahindra Bank(4.1477) and Axis Bank (3.9871). The average mean score of
statement Lack of updates on product knowledge, product training and product awareness
show that the problems faced by customers in public sector is more than those in the private
sector bank as it is shown in the above table. Mean values of selective banks are as
follows:State Bank of India (2.8926), Bank of Baroda (2.7185), Punjab National Bank (2.5806),
Bank of India (2.6131), HDFC (3.5189) , ICICI Bank (3.9500), Kotak Mahindra Bank(4.0897)
and Axis Bank (4.1458).The problem of lack of interest and motivation among staff in promoting
bancassurance is more in the public sector than in the private sector banks as is revealed in
the above table. The corresponding mean value are in State Bank of India (1.8952), Bank of
Baroda (2.2256), Punjab National Bank (1.0228), Bank of India (1.7756), HDFC (4.1258),
ICICI Bank (4.1000), Kotak Mahindra Bank (3.8799) and Axis Bank (3.3569). Customers
response on statement The rates of premium for bancassurance are not competitive.is
neutral for both banking sector as it is presented in the table. The same kind of response has
got from the other problem Corporate clients have affinity towards international insurance
company where mean score of all banks are around the 3 which indicates the uncertain
behavior of customers. Absence of new product, better technology and diversified insurance
product for car, house and property is more in public sector banks as compared to the private
sector banks. Hence, it is interpreted that the variation among the responses are significantly
differ.
51
Table- 4.3 (a) Impact of age on the problems faced by the customers from
Statements
Significance
.541
.633
2.085
.210
Lack of updates on product knowledge, product training and product

awareness.
.752
.581
3.029
.001*
Lack of details of bancassurance at contact point counters like advances, fixed

deposit counters and new account opening counters.
.782
.403
No sharing of commission incentives to bankers.
1.500
.167
1.201
.188
4.440
.002*
Absence of new product, better technology and diversified insurance product

for car, house and property.
2.506
.183
1.051
.140
(Source - Survey Data)
Table 4.3(a) illustrates the effect of age on the problems faced by the customers from
bancassurance services of the public and private sectors banks. Ten statements were being
studied related to the problems of customers towards the bancassurance services. Out of
these, two statements (marked by *) are found to be significantly affected by the age of
customers as shown in the Table- 4.3 (a). The statements Lack of interest and motivation
among bank staff in promoting bancassurance and Corporate clients have affinity towards
international insurance company have 0.001 and 0.002 significant values respectively which
is less than 0.05. These statements are found to be significant at 5% level of significance.
Therefore, null hypothesis H03 is rejected which shows that there is significant impact of age
on the problems faced by the customers from bancassurance services of the public and
private sectors banks.
Table-4.3 (b) Descriptive mean of impact of age on the problems faced by the
customers from bancassurance services
Statements
21-30
31-40
41-50
51-60
Lack of interest and motivation among bank

staff in promoting bancassurance
4.1726
3.1781
2.1500
1.8182
Corporate clients have affinity towards

international insurance company
3.0785
3.2415
2.7400
2.1364
52
(Source - Survey Data)
Table - 4.3 (b) shows the mean score of problems face by customers of various age groups.
The customers of age group 21-30 and 31-40 years are more inclined towards agreeing with
the problem lack of interest and motivation among bank staff in promoting bancassurance
compared to the other age groups (41-50 and 51-60) of customers. The young age groups
(21-30 and 31-40) have indifferent response towards the statement Corporate clients have
affinity towards international insurance company but on the other hand, age groups of 41-50
and 51-60 are tending towards the agree with a mean score of around 2. Thus, it can be
concluded that age of customers plays a significant role on the problems faced by the
customers from bancassurance service.
CONCLUSION
Today all the banks give importance to retain their customers as they are inevitable part of the
business. Bancassurance income can only be raised by providing better services. The better
services which can be provided only by reducing the problems which customers face from
bancassurance services. This study helps the banking sector to understand the attitude of
customer towards bancassurance services. It revealed that the bancassurance services
provided by the private sector banks are better than the public sector banks. The reason
behind it is that the private sector banks provide better insurances products, better environment
and better technology to their customers. On the other hand, the public sector banks customers
face many problems like absence of new technology, new product and absence of better
environment in the banks. The private sector banks make available brochure on bancassurance
policies, rules, procedures for their customers. But public sector banks do not offer any of
this services.This is the reason why numbers of bancassurance services customers in private
sectors banks are more than in public sector banks. Advertisement and communication on
bancassurance services attract the customer to buy the product. This opportunity of
advertisement is not properly exploited by any of the banking sector. While purchasing the
bancassurance product, gender does not play any significant role. It means males and females
face equal problems in bank. But this is not in the case of age; the bank staff shows more
interest in customers of young age group as compared to old age group customers for selling
their products. There are a lot of opportunities available in the Indian market to the banks to
cross sell insurance products. So banks should focus on improving the bancassurance services
to retain the customers.
REFERENCES
1.
Gonulal,O.S., Goulder, N., and Lester, R. (2012),Bancassurance: A Valuable Tool for

Developing Insurance in Emerging Markets, Policy Research Working Paper, pp 61-96
2.
Kumari, T. (2012). Customer Attitude Towards Bancassurance An Indian Perspective. Global

Journal Of Current Research, 39-49
3.
Neelamegam, D. R., & Veni, M. K. (2008). Bancassurance An Emerging Concept In India.

The Journal, 49-54
4.
Pasricha & Singh, G. (2009), Performance ofLife Insurance Corporation of India (LIC)- An
Appraisal , Phd Thesis, Submitted in The Department Of Commerce, Punjabi Papers
5.
Rajan, J & Gomatheeswaran, M. (2013). Bancassurance: A Comparative Study on Customer

Satisfaction Towards Public and Private Sector Banks in Pathanamthitta District - Haryana .
The International Journal of Engineering and Science, 2 (7), 12-18
53
6.
Raju,G. (2009). Factors Determining Life Insurance Purchase: A Study of the Customer
Behavior, Insurance Chronicle, ICFAI University Press, Hyderabad, 34-37
7.
Singh, K.(2009) A Comparative Study Of The Product Strategies of Public And Private Life
Insurance Companies in The Post Reform Period, Ph.D. Thesis Submitted In The Institute
of Management Studies and Research, Maharishi Dayanand University, Rohtak (Haryana)
8.
Tiwari, D. A., & Yadav, M. B. (2012). A Customer Survey & Perception Towards Bancassurance
(With Reference To Life Insurance Industry). South Asian Journal of Marketing & Management
Research
54
Identification of Measures to be taken for

Sustainable Green Banking in India
Dr Swapna Datta Khan*
ABSTRACT
Banking is often associated with formal and rigid approaches and the sector generally perceives
itself as environmentally neutral. There has not been many inventions in respect of Green Initiatives
by the banks in India though they play an active role in Indias emerging economy. This paper lists
possible steps and measures to promote Green Banking in India
Keywords: Green Initiatives, Green Processes, Eco-Friendly
INTRODUCTION
Various global initiatives are underway to counter the ill effects of development that we encounter
today such as global warming and climate change. A common thread running across all
these initiatives is the focus on reducing the demand for fossil fuels by implementing the 3Rs
viz., Reduce, Reuse and Recycle. Though the internal operations of banks are considered
environment-friendly, the customer services do have a negative impact on the environment.
The banking sector also finances various industrial projects such as steel, paper, cement,
chemicals, fertilizer, power, textiles, which cause considerable carbon emission. Green
Banking refers to the banking business conducted in such areas and in such a manner that
helps the overall reduction of external carbon emission and internal carbon footprint. Green
Banking in India is yet in its nascent stage and this paper humbly enumerates measures to
be taken to ensure a route to sustainable Green Banking in our country.
OBJECTIVE
To identify and enumerate the steps that can be taken towards sustainable Green Banking in
India.
METHODOLOGY
This research paper is exploratory and inferences are obtained by the study and compilation
of results from contemporary literature. Desk research has been undertaken to collect and
arrange facts picked out of published data from within the expanse of literature available on
the Internet and then, a set of steps conceptualized after the study of such data. The study
does not take into account the magnitude of need and relate exactly to the present status of
Green Banking in India. None-the-less, this research can guide banking and financial
organizations in sustainable green banking.
LITERATURE REVIEW: CONCEPT REVIEW
Green Banking:
In their paper, Jha & Bhome (2013), have said that Green Banks, falling within the category of
*
Assistant Professor, Army Institute of Management, Kolkata; Email: captsdk@gmail.com
55
Ethical banks, aim to protect the environment and conserve natural resources. Though
controlled by the same authorities as the traditional Indian bank, they involve the tenets of
sustainability, ethical lending, conservation of energy and natural resources, alongside or
above profit generation. Thus, sustainable practices by banks, with the aim of reduction of
carbon footprint involving initiatives towards energy and natural resources conservation, apart
from profit making, define the Green Bank. (www.infosys.com/finacle/solutions/thought-papers/
.../Green-Banking.pdf, 2012), (Jha & Bhome, 2013).
Sustainable Green Banking
Biswas (2011) in his paper articulated that Green Banking strategies involve two components
viz. managing environment risk and identifying opportunities for innovative environmentally
oriented financial products. To manage environment risk, the banks have to design systems
to evaluate the risks in investment projects, introducing differential interest rates and
withdrawing from financing high risk projects. The second component of Green Banking entails
creation of financial products and services that support commercial development with
environmental benefits. Also, banks must prepare an environmental risk and liability guidelines
on the development of protective policies, reporting for each project financed, make adequate
environmental assessment for projects seeking finance and classify projects based on potential
environmental impact. Banks need to note that being green makes economic sense as adoption
of eco-friendly technology and processes brings in higher profit, thus enabling banks to serve
both commercial and social purposes. (Biswas, 2011)
LITERATURE REVIEW: RESEARCH REVIEW
Steps already taken in the banking sector towards going green
Jha & Bhome (2013), in their paper have found - from analysis of empirical data - that some
of the steps towards going green in the banking sector are: Go Online, Use Green Checking
Accounts, Use Green Loans for Home Improvements, Usage of Power Savings Equipments,
Usage of Green Credit Cards, Saving of Paper, Utilization of Solar and Wind Energy and
Mobile Banking. (Jha & Bhome, 2013)
In their thought paper, Infosys noted some proactive initiatives of banks globally as: Paperless
Communication, Channelization of funds to conservation charities as an incentive for choosing
green product, Special line of credit to home owners for investment in energy efficient upgrades.
(www.infosys.com/finacle/solutions/thought-papers/.../Green-Banking.pdf, 2012)
In her paper, Bahl (2012) has mentioned that Green Banking product coverage includes:
Green Mortgages, Green Loans, Green Credit Cards, Green Savings Accounts, Green CDs,
Green Money Market Accounts, Mobile Banking, Online Banking, and Remote Deposit (RDC).
She has also listed the following measures for the promotion of Green Banking:
1.
2.
3.
4.
5.
6.
7.
8.
56
Construction of Website
Education on environmental awareness through Banks Internet and Public Website
Participation in related events
Set up outlets to promote green business
Communication through press
Communication through leaflets.
Green banking as a part of social responsibility of the bank
Carbon footprint reduction by man transportation pooling
9. Impart education through e-learning programs

10. Making Green banking initiatives a part of Annual Environment Report
(Bahl, 2012)
Jinwala (2013) has apprised us of the Energy Efficient Mortgage (EEM) in the US, which is
approved by the US Department of Housing and Urban Development, that credits the customer
for his homes energy efficiency in the mortgage itself.
Mr Anand Sinha, the Chairman IDRBT (http://www.idrbt.ac.in, 2013) emphasized that as
providers of finance, banks can ensure that businesses adopt environment-friendly practices.
Incentives by way of offering cheaper funds for adopting green technologies will have a long
term beneficial impact on the environment. As major implementers of technology, banks
themselves can adopt green practices and thereby lead the way in this global initiative. Also,
product innovation and leveraging on the use of technology enable banks and their customers
today to reduce the usage of resources such as paper, thereby aiding in environmental protection.
(http://www.idrbt.ac.in, 2013)
Indian banks can develop innovative Green Banking financial products which can directly or
indirectly help in the reduction of carbon emissions. Banks can introduce Green Fund to
provide climate conscious customers the option of investing in environment friendly projects.
Besides introducing specific Green Banking products, banks can incorporate an Environmental
Impact Assessment (EIA) in their project appraisal while financing any project to measure
the nature and magnitude of environmental impact as well as suggest environmental risk
mitigation measures. Banks can also conduct environmental audits of the financed projects.
Banks are also recommended by Bahl (2012) to convert to CBS and electronic communication,
reducing carbon footprint. The banks can contribute to the development of energy consciousness
by adopting effective office time management and automation, reducing pollution and using
Compact Fluorescent Lighting (CFL), thus saving on energy consumption considerably. They
can also switch over to renewable energy (solar, wind etc) to manage their offices and ATMs.
Banks may also improve Green Efficiency by pooling transport within a location. As part of
green banking strategy, Indian banks can initiate various social responsibility services such
as tree plantation camps, maintenance of parks, pollution checkup camps. (Bahl, 2012)
IndusInd Bank implemented Mumbais first solar-powered ATM as part of its Green Office
Project campaign Hum aur Hariyali. It also unveiled a Green Office Manual - A Guide to
Sustainable Practices, prepared in association with the Centre for Environmental Research
and Education (CERE). The State Bank of India (SBI), as part of its Green Banking Policy,
had set up windmills to generate 15 MW of power in Tamil Nadu, Maharashtra and Gujarat for
its own consumption. SBI introduced the new Green Home Loan Scheme that would support
environment-friendly residential projects and would offer various concessions - reduced
margins, lower interest rate and zero processing fees. These loans would be sanctioned for
projects rated by the Indian Green Building Council (IGBC). Union Bank had decided to
undertake an electrical energy audit annually. In addition, the bank had installed solar water
heaters at various facilities maintained by them. IDBI Bank is a member of the Council of
National Action Plan on Climate Change (NAPCC). The Bank is also a signatory investor to
Carbon Disclosure Project (CDP), which aims to create a relationship between shareholders
and corporations regarding the implications for shareholder value and commercial operations
presented by climate change. The Corporate Environmental Stewardship Programme with
the Bombay Natural History Society (BNHS) was pioneered by ICICI Bank to sensitize various
57
corporate bodies, financial institutions/banks and government agencies involved in project

planning on issues regarding biodiversity, wildlife habitats, various environmental laws and
conventions. ICICI Bank has also been assisting various organizations to undertake clean
energy and environmentally sustainable projects/initiatives. ICICI Bank has assisted projects
that would specifically promote energy efficiency, renewable energy, biomass co-generation,
biomass gasification, demand side management (by utilities), waste heat recovery, Energy
Service Companies (ESCOs) that demonstrate substantial savings in energy on a shared
savings basis as well as projects that lead to pollution prevention and waste minimization at
source. ICICI Bank has assisted ESCOs to facilitate various urban local bodies and
manufacturing companies in reducing their energy bills. ICICI Bank introduced the municipal
shared saving ESCO model for the first time in India. Through the retail branches, Yes Bank
is incorporating community development initiatives such as clean and green drives, energy
efficiency practices, workplace health and safety and the development of local disaster
management plans through its Yes Community initiatives. Yes Community engages with the
local communities surrounding their bank branches in India through micro-events under the
aegis of Planet Earth. ABN AMRO launched the Indian Sustainable Development Fund opening
up a new emerging market for socially responsible investors. (Bihari, 2011)
IDBRT has drawn up a Framework guiding banking organizations towards Green Initiatives
and they list infrastructural steps that involve:
Notebook Computers connected to Green chargers

Employees to reduce the brightness of the monitor to the appropriate level and use
monitor only when absolutely necessary
Maximum usage of power saving profiles, reducing the amount of energy consumed by
the computer
When an application is not in use, employees must close the application and also stop
the background processes that are not being used
Multi-tasking is a tradeoff between CPU time spent executing tasks and inefficiencies
brought in by context switching. Thus employees must attempt to reduce the number of
tasks when slowing down of computer due to multitasking is noticed
The more the processes that are set to start at startup, the more the amount of time the
laptop needs to boot up, thus resulting in more unproductive time for the processor and
the monitor. So, employees must keep the number of processes that start at the startup
of the computer to a minimum
The required applications can be started as and when needed only
Bank must develop Green Data Centers: A green IT data center is designed keeping in
view many design parameters, creating an eco-foundation, and leading to a lower cost
of ownership. These parameters range from physical layout and design, cooling system,
cabling, and power system, IT infrastructure including servers and storage devices; and
IT design parameters like consolidation and virtualization for most energy efficient and
optimal utilization.
(http://www.idrbt.ac.in, 2013)
Policies and Reports regarding the promotion of Green Banking

The Equator Principles
The Equator Principles (EPs) is a risk management framework, adopted by financial institutions,
for determining, assessing and managing environmental and social risk in projects and is
58
primarily intended to provide a minimum standard for due diligence to support responsible
risk decision-making. Equator Principles Financial Institutions (EPFIs), in countries that have
officially adopted the EPs, cover a large part of international Project Finance debt in emerging
markets. EPFIs commit to implementing the EP in their internal environmental and social
policies, procedures and standards for financing projects and will not provide Project
Finance or Project-related Corporate Loans to projects where the client will not, or is unable
to, comply with the EP. While the EP are not intended to be applied retroactively, EPFIs
apply them to the expansion or upgrade of an existing project where changes in scale or
scope may affect environmental and social risks significantly. The draft of the Equator Principles
includes ten principles that are: Review and Categorization, Environmental and Social
Assessment, Applicable Environmental and Social Standards, Environmental and Social
Management System and Equator Principles Action Plan, Stakeholder Engagement, Grievance
Mechanism, Independent Review, Covenants, Independent Monitoring and Reporting, Reporting
and Transparency. Only IDFC Ltd is an EPFI from India. (http://www.equator-principles.com/
index.php/about-ep/about-ep,2013), (http://www.equator-principles.com/ resources/
equator_principles_III.pdf, 2013)
The IDRBT Report
The IDRBT developed a report in July 2013, followed by a framework for the promotion of
Green Banking in India. Considering the nature of banking processes and infrastructures, in
this report, they offered guidelines for greening banking in two levels.
Greening Processes, Products, Services, and Strategies: Making day-to-day business

operations, banking products and services greener by following simple practices and
making them environmentally friendly.
Greening Infrastructure: Making IT infrastructure (including data center) and physical
infrastructure (including buildings) greener and taking initiatives so that a bank could
itself generate electricity for its own consumption.
Green processes emphasize the entities within Supply Chain Management, Enterprise
Resource Management, Customer Relationship, Sourcing and Procurement, Product Life
Cycle Management. Green Banking Infrastructure emphasized the need for the greening use
of Laptops, Desktop Computers and Servers and Green IT Data Centers. In their report, they
have also, through fictitious case studies illustrated how a bank may proactively develop into
a Green Bank. (http://www.idrbt.ac.in, 2013)
The IDRBT has proposed the introduction of a standard rating for green efficient banks and
banking practices among Indian Banks. Under this rating system, both the infrastructure and
operations of the banks can be considered. They have coined the term of Green Rating
Standard as Green Coin Rating, as illustrated in Figure 1 below. Banks primary business
must not be money making only, but it should also keep in mind social and environmental
issues relating to its operations. Banks will be judged based on the rate of carbon emission
out of their operations, the amount of reuse, refurbish and recycling concept being used in
their building furnishings and in the systems used by them such as computers, servers,
networks, printers. They will also be evaluated on the number of green projects being financed
by them and the amount of rewards and recognition they are paying for turning businesses
green.
59
The primary objectives behind Green Coin Rating are as follows:
Improving the energy and carbon efficiency of bank
To estimate energy usage and wastage
Comparative assessment of banks and its products efficiency for the customers and
other stakeholders in relation to Environment Impact Assessment
Recognize and reward the environment-conscious financial institutions (http://

www.idrbt.ac.in, 2013)
In his paper, Biswas (2011) has emphasized that the Government needs to conduct
environmental audits to determine the environmental status of a facility, property and operation,
financed by the bank, identify regulatory compliance status and potential environmental risks
and liabilities. The Government must enact legislation to force banks to produce a formal
environment policy statement and make this publicly available and thereafter also, enforce
such legislation (Biswas, 2011).The Government can offer eco deposits to public as Tax
Saving instruments to enhance public participation, ensure the reality sector adheres to all
norms required for eco building, set up a mandatory certification body to screen such green
applications and sanction loans, extend subsidies and tax breaks to banks meeting eco
loans target to ensure they remain profitable and repay the eco deposits with bonus credits.
The Government must ensure proactive regulatory services to monitor the eco assets
investments, foresee possible NPAs and take corrective measures. (www.infosys.com/finacle/
solutions/thought-papers/.../Green-Banking.pdf, 2012)
Figure 1: Green Coin Rating

(Source: http://www.idrbt.ac.in, 2013)
Further Literature regarding the promotion of Sustainable Green Banking
Bhardwaj & Malhotra (2013) said that while entrepreneurial activity has been an important
force for social and ecological sustainability, its efficacy is dependent upon the nature of
market incentives. The effect of green development and environmental aspects as well as
CSR and local community engagement on financial performance is considered as positive,
60
but mainly indirect through non-financial performance from the employee perspective. Not
only does environmental responsiveness help organizations to remain competitive and increase
market share but also there is some evidence showing increase in customer loyalty. Green
product quality had positive effects on green customer satisfaction and green customer loyalty.
Green management in organizations has to go beyond regulatory compliance and needs to
include conceptual tools such as pollution prevention, product stewardship and corporate
social responsibility. Moving towards sustainable development, therefore, is now a major
concern in most of the developed countries, resulting in stricter regulations concerning the
impact of the products during their manufacturing, use and end of life including the obligation
to define reverse logistics strategies and systems. They conceptualized a model, depicted in
Figure 2 as a step towards sustainable Green Banking. (Bhardwaj & Malhotra, 2013)
Figure 2: Conceptual Model for Green Banking Strategies

(Source: Bhardwaj & Malhotra, 2013)
Drobnjakovi (2013) said that there are several main reasons why any business top manager
with a sense of corporate responsibility should apply the concept of environment business
management in his firm. Without environment minded companies there can be no environmentminded economy and without an environment-minded economy, the human race cannot expect
to survive for a life that is worth living. The inclusion of environmental protection in the corporate
mission statement will be the first step to publicizing the commitment of a company, which
will have to be followed by specific actions endorsed by the owners and managers of the
company. Protection of natural environment cannot become a corporate priority if employees
do not believe in it. Communications of the company objectives, programmes and practices
to the employees, as well as their participation, is a crucial part of successful environment
management system. (Drobnjakovi, 2013)
Inferences
The compilations of steps to be taken to ensure sustainable Green Banking are thus as
follows:
Green Banking Products such as Green Mortgages, Green Loans, Green Credit Cards,
Green Savings Accounts, Green CDs, Green Money Market Accounts, Mobile Banking,
Online Banking, and Remote Deposit (RDC) need to be innovated, promoted and sold.
Besides,
o
o
o
Banks may provide loans with concessions to corporates or individuals who

undertake environment-friendly projects such as projects employing sun, wind
equipment, manufacturers of fuel-efficient automobiles
Banks can introduce green funds for customers who would like to invest in
environment-friendly projects
Banks can involve themselves in carbon credit business, wherein they can provide
61
o
o
all the services in the area of clean development mechanisms and carbon credit
business
Banks can support projects ranging from community to national initiatives on climate
change, water, air, biodiversity and more.
Banks may launch Sustainable Development Funds, such as ABN Amro
Green Banking Services such as the following need to be encouraged:

o
Electronic and telephone banking, facilitating customers to perform most of their
banking needs anytime, anywhere
o
Automatic payments reduce the need to write and send cheques by mail
o
Electronic (paperless) statements, product information, guides and annual reports
to customers and stakeholders
o
Offering and promoting mutual funds that focus investment in green companies
o
Offering a special line of credit to help homeowners invest in energy-efficiency
upgrades for their home
o
Offering credit cards co-branded with environmental charities
o
Channelization of funds to conservation charities as an incentive for choosing green
product
o
Special line of credit to home owners for investment in energy efficient upgrades
o
Mobilize social media, use mobile technology and online kiosks at branches for
promotions and marketing instead of pamphlets and brochures
o
Renew operational processes to introduce and emphasize paperless
communication
o
Invest in new Core-Banking solutions to launch eco products which reduces time
to market (www.infosys.com/finacle/solutions/thought-papers/.../GreenBanking.pdf, 2012)
Strategies to ensure sustainable Green Banking are as follows:

o
Engage with key stakeholders and create awareness of environmental issues and
their impact on the economy, the environment, and the society. Also, explain to
them the business and environmental value and the necessity of greening the
bank processes, products, and services
o
Include environment conservation within the corporate mission statement of the
bank
o
All stakeholders and employees must be motivated to contribute for the conservation
of energy of the bank
o
Conduct energy audits and review equipment purchases and disposal policies and
practices
o
Assess ITs environmental and cost impact and identify areas to be greened
o
Set SMART (Specific, Measurable, Attainable, Realistic, and Timely) green goals
as the internal targets to reduce carbon footprint. Develop criteria for measuring
progress towards the goals
o
Develop and implement a green policy that aims to achieve higher utilization of
systems while reducing energy use and lessening their environmental impact
o
Encourage, motivate, and energize the workforce to follow the green path and to
come up with and implement their own ideas. In addition, also encourage clients,
suppliers, and outsourcers to adopt green practices
62
o
o
o
o
o
o
o
o
o
o
o
Monitor the progress regularly; watch industry trends and new developments. Revise
the green policy as required on an annual basis
Publicize your environmental policy, actions, and achievements and thereby get
credits and accolades from customers, peers, industry groups, environmental
advocates, government agencies, and society at large
Initiate social responsibility services with Green objectives
Dedicate a link on the banks website to relate steps towards Green Banking,
generate an awareness of eco-riendly products and also ask for feedback and
suggestions from the visitor of the website
Mobilize customer support towards Green Initiatives using Social Media
Educate about environmental awareness through Banks Internet and Public
Website
Mandatory Declaration regarding the carbon footprint generated by the bank,
accessible as a link on the bank website and a part, also, of the citizen charter, if
any
Banks may research and develop innovative financial solutions and redesign the
existing ones so as to incorporate environmental perspectives
Bank may proceed to tie-up with an NGO, an entrepreneur or a subsidiary to
conduct activities promoting Green Banking
Bank must incorporate Green Coin Ratings (http://www.idrbt.ac.in, 2013), and
publish the same on their website
Bank must strive to be an EPFI (http://www.equator-principles.com/index.php/aboutep/about-ep, 2013)
Steps that can be taken regarding Banking Infrastructure towards Green banking
o
Observe effective time management
o
Use energy efficient and Energy Star Rated devices
o
Use CFL lighting
o
Make use of solar and wind energy, wherever possible
o
Use Green Chargers for electronic devices
o
Reduce Computer Monitor time and brightness to appropriate levels
o
Use power saving profiles
o
Shut down unnecessary background processes
o
Banks must develop and maintain Green Data Centers
Steps to be taken by Banking Regulators towards sustainable Green Banking:

o
Regulatory bodies must conduct environmental audits to determine the
environmental status of a facility, property and operation, financed by the bank,
identify regulatory compliance status and potential environmental risks and liabilities.
o
Regulatory bodies must enact legislation to force banks to produce a formal
environment policy statement and make this publicly available and thereafter also,
enforce such legislation.
o
The Government can offer eco deposits to public as Tax Saving instruments to
enhance public participation
o
The Government must ensure that the reality sector adheres to all norms required
for eco building, set up a mandatory certification body to screen such green
applications and sanction loans, extend subsidies and tax breaks to banks meeting
63
eco loans target to ensure they remain profitable and repay the eco deposits with
bonus credits
The Government must ensure proactive regulatory services to monitor the eco
assets investments foresee possible NPAs and take corrective measures
Glossary
ATM: Automated Teller Machine
BNHS: Bombay Natural History Society
CBS: Core Banking Solutions
CD: Compact Disc
CDP: Carbon Disclosure Project
CERE: Center for Environmental Research and Education
CFL: Compact Fluorescent Lighting
CPU: Central Processing Unit
EEM: Energy Efficient Mortgage
EIA: Environmental Impact Assessment
EP: Equator Principles
ESCOs: Energy Service Companies
ICICI: Industrial Credit and Investment Corporation of India
IDFC: Infrastructure Development Finance Company
IDRBT: Institute of Development and Research in Banking Technology
IGBC: Indian Green Building Council
IT: Information Technology
NAPCC: National Action Plan on Climate Change
NPA: Non Performing Assets
SBI: State Bank of India
REFERENCES
1.
Bahl, S. (2012). Green Banking - The New Strategic Imperative. Asian Journal of Research In
Business, Economics And Management (AJRBEM) , 2 (2), 176 - 185.
2.
Bahl, S. (2012). The Role of Green Banking in Sustainable Growth. International Journal of
Marketing, Financial Services and Management Research , 1 (2), 27 - 35.
3.
Bhardwaj, B. R., & Malhotra, A. (2013). Green Banking Strategies:Sustainability through

Corporate Entrepreneurship. Greener Journal of Business and Management Studies , 3 (4),
180 - 193.
4.
Bihari, S. C. (2011). Green banking-towards socially resonsible banking in India. International

Journal of Business Insights and Transformation , 4 (1), 82 - 87.
5.
Biswas, N. (2011). Sustainable Green Banking Approach: The Need of the Hour. Business
Spectrum , I (1), 32 - 38.
6.
Drobnjakovi, M. (2013). Green banking. Journal of Economic Development, Environment

and People , 2 (2), 31 - 40.
64
7.
http://www.equator-principles.com/index.php/about-ep/about-ep. (2013, Dec). Retrieved from

http://www.equator-principles.com.
8.
http://www.equator-principles.com/resources/equator_principles_III.pdf. (2013, Jun).

Retrieved Dec 2013, from http://www.equator-principles.com.
9.
http://www.idrbt.ac.in. (2013, Jul). http://www.idrbt.ac.in/publications/Frameworks/

Green%20Banking%20Framework%20%282013%29.pdf. Retrieved from http://
www.idrbt.ac.in/.
10.
Jha, N., & Bhome, S. (2013). A Study of Green Banking Trends in India. International Monthly
Refereed Journal of Research In Management & Technology , II, 127 - 132.
11.
Jinwala, A. A. (2013). Green Banking in India. International Multidisciplinary Journal of Applied

Research , 1 (7), 84 - 86.
12.
www.infosys.com/finacle/solutions/thought-papers/.../Green-Banking.pdf. (2012). Retrieved

from www.infosys.com.
65
STUDENTS CONTRIBUTIONS
l
ARTICLE
PROJECT SYNOPSIS
68
ARTICLE
Study on Biscuit Brands and its Market

Sweeping Promotional Offers:
A Case Study of Kolkata
Chiranjit Senapati*
ABSTRACT
The project Study on Biscuit Brands and its Market Sweeping Promotional Offers was conducted
at Spencers, South City Mall, Kolkata. The main purpose of the project was to find the different
promotional offers that biscuit brands offer in different days of a week. The main reason for choosing
this study was to find the market sweeping promotional offers that were offered by different biscuit
brands in Kolkata. This study gives a clear picture regarding sales promotion and may be treated
as a good example for understanding the same.
INTRODUCTION
Sales promotions are the set of marketing activities undertaken to boost sales of the product
or service. Media and non-media marketing communications are employed for a predetermined, limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include contests, coupons, freebies, loss leaders, point of
purchase displays, premiums, prizes, product samples, and rebates.
Sales promotion is needed to attract new customers, to hold present customers, to counteract
competition, and to take advantage of opportunities that are revealed by market research. It
is made up of activities both outside and inside to enhance company sales. Outside sales
promotion activities include advertising, publicity, public relations activities, and special sales
events. Inside sales promotion activities include window displays, product and promotional
material display and promotional programs such as premium awards and contests.
But, sales promotion activity aimed at the final consumer are called consumer schemes.
These are used to create a pull for the product and are advertised in public media to attract
attention. Maximum schemes are floated in festival times, like Diwali or Christmas. Examples
are buy soap, get diamond free; buy biscuits, collect runs; buy TV and get some discount or
a free item with it and so on. Consumer schemes become very prominent in the maturity or
decline stages of a product life cycle, where companies vie to sell their own wares against
severe competition.
The impact of sales promotions: Sales promotions typically increase the level of sales for
the duration they are floated. Usually, as soon as the schemes end, the sales fall, but
thankfully, settle at a higher level than they were before the sales promotion started. For the
company, it can be a means to gain market share, though an expensive way.
Student, Batch: MBA17 (2013-15); Army Institute of Management; Email: jitsenapati@gmail.com
69
For consumers, these can offer great value for money. But sustained sales promotions can
seriously damage a brand and its sales, as consumers wait specifically for the sales promotion
to buy and not otherwise. Therefore, sales promotions are to be used as a tactical measure
as part of an overall plan, and not as an end itself.
BAKERY INDUSTRY IN INDIA WITH FOCUS ON BISCUIT INDUSTRY: AN OVERVIEW
The sustained economic growth in the country has led to increased disposable incomes
among Indian consumers. Urban dwellers are becoming increasingly health conscious and
are demanding healthier options. Along with this, consumers are also willing to spend more
and experiment. As more women join the work force, convenience and time have become
major factors among urban households. Consumers are increasingly relying on snacks and
baked goods as substitutes to traditional breakfast. With the launch of a series of cookies
and sandwich biscuits offerings, biscuits are now being viewed as a quick breakfast option
among women and children. This has helped drive sales of biscuits, especially cookies and
sandwich biscuits, over 2013.
The industry can be classed into two separate sectors organized and unorganized. Biscuits
and breads are the major components of the Indian bakery industry and together these two
account for almost 80 percent of the aggregate production. The biscuit industry is said to
have a better production and value level than bread. Now-a-days, biscuit industry contributes
approximately 33 percent of the total production of the bakery industry. 70 percent of the
biscuits in India are produced by small scale sector that is made up of both the non-factory
and factory workers.
These smaller entities have also prevented leading companies like Cadbury, Brooke Bond
and Nestle from entering the biscuit market. The Federation of Biscuit Manufacturers of India
(FBMI), set up by the Union Government in 1953, has stated that in the coming years the
industry will see an approximate yearly growth of 15 percent and the exports will also
successfully reach the global markets.
Production:
The Indian biscuit industry has a yearly production of almost INR 3 thousand crores and is
the biggest among all the food based industries operating in the country. The Indian
subcontinent on the whole is regarded to be one of the top producers of biscuits in the world
along with countries like the US.
Consumption
Per capita consumption of biscuits in India has been estimated at 2 kilos. At present the
following states can be regarded as the biggest consumers of biscuits in India:
Maharashtra
Karnataka
West Bengal
Uttar Pradesh
Andhra Pradesh
The rural sector in India presently accounts for almost 55 percent of the biscuit consumption
in India.
70
Export & Import

India is also one of the leading producers of biscuits in the world along with the US and China.
Approximately 17 percent of the biscuits produced in India are exported to locations such as
the following:
Haiti
Ghana
Angola
UAE
The US
It has also been calculated that the biscuit imports do not form a significant part of the
production, which has been estimated at INR 4350 crores.
Major Players
The biscuits category is dominated by Britannia Industries, Parle Products and ITC, which
together are set to hold a combined retail value share of 80% in 2013. These are well established
domestic players and have strong distribution networks across the entire country, including
rural areas.
Major Brands
Main categories of biscuits are broadly Glucose, Marie-Sweet, Cream, Salty and Milk. Glucose
and Marie are two varieties of biscuits which represent the largest segments. Table 1 gives
the contribution of various biscuit segments as per the industry estimates. Like any other
consumer product, consumers have strong preference for branded products. Irrespective of
income group in urban area, the preference of purchase of branded Marie biscuits is of the
tune of 80-90%. However, the rural market constitutes 55% of total sale mainly comprising
unbranded products.
Table 1: BISCUIT SEGMENTATION
Serial No.
Product Segment
Percent
1.
Glucose
44
2.
Marie
13
3.
Cream
10
4.
Cracker
13
5.
Milk
12
6.
Others
(Source :foodbizdaily.com/Indian-biscuit-industry, Production data 2000-01)

As stated earlier, the market in India is diverse and biscuit sector is divided into organized
sector (40%) and unorganized sector (60%). The branded and organized biscuit sector has a
forecast of annual growth of 17%. Major players in this segment include Britannia, Parle, ITC,
Priya Gold, etc. Growth in the un-branded biscuit sector, which currently has a smaller
market, is only 8% per year.
71
MARKET SHARE OF BISCUITS (BRAND WISE)
OBJECTIVE
The objective of this project is a study of different promotional offers given by different biscuit
brands.
SCOPE
This survey was conducted in Spencers, South City mall, Kolkata among the biscuit brands
of Parle, Britannia, Anmol, Sunfeast, Priya, and McVities. The main aim of the survey was to
find the promotional offer given by Spencers to its customers on different days of a week.
METHODOLOGY
Research method was descriptive research. In this study, the area of descriptive research is
promotion research. The problem was well defined, and the study aimed at discovering the
market sweeping promotional offers that are often carried out by different biscuit brands in
different categories and understanding of the same. The data was collected from Spencers
retail located at South City mall, Kolkata twice a week, i.e., on Monday and Thursday. These
days were chosen because maximum promotional offers were given on Thursday while there
were no promotional offers, except for any special occasion, in the rest of the week; Monday
was taken as a normal day without any promotion.
FINDINGS & ANALYSIS
It was observed that Britannia gives the maximum promotional offers compared to any other
biscuit brands present. In Marie biscuits, Britannia was the only company offering promotional
offers, other brands like Sunfeast, Parle, Anmol, etc. did not have anything to offer.
72
73
In Nutritious biscuits brands Sunfeast, McVities as well as Britannia were providing promotional
offers. But, Britannia was the brand with maximum variant along with maximum price discount.
Sunfeast and McVities were also providing price discounts but variants were less.
74
In Sweet and Salty biscuits category, Britannia and Parle were the only companies offering
same type of promotional offers. In cookies, Britannia was the only company with promotional
offers.
75
76
In Cream biscuits category, Parle, Sunfeast and Britannia all have something good to offer.
Whereas, Cadbury was the only brand which did not have any price discount to offer.
CONCLUSION
So from the above study, it can be concluded that Britannia is the leader in promotional offers
amongst all other biscuit brands. It can also be concluded from the study that nutritious
77
biscuits have the most market sweeping offers which proves that brands are trying to penetrate
in this segment. As nutritious biscuits provide health benefits to people, health conscious
people in the country are focusing more in these type of biscuits, but as the price of these
biscuits are high normal people dont buy these biscuits frequently for consumption and thus
the market share of these biscuits are low. In order to increase the market share as well as
considering the health of the people some biscuit brands like Britannia, Sunfeast and McVities
are coming with market sweeping promotional offers in this segment.
This study clearly shows how sales promotion can be applied effectively and even the unexplored
segment of the brand can be visualized in the market.
REFERENCES
1.
http://business.mapsofindia.com/top-brands-india/top-biscuit-brands-in-india.html/
accessed on 09.11.2014
2.
http://economictimes.indiatimes.com/definition/sales-promotion/accessed on 9.11.2014
3.
http://www.euromonitor.com/biscuits-in-india/report accessed on 9.11.2014
78
PROJECT SYNOPSIS
Internal Capital Adequacy Assessment Process

of UCO Bank
Anirban Saha*
ABSTRACT
The Reserve Bank of India decided in April 1992 to introduce a risk asset ratio system for banks
(including foreign banks) in India as a capital adequacy measure in line with the Capital Adequacy
Norms prescribed by Basel Committee. Basel II prescribes the risk weights for the balance sheet
assets, non-funded items and other off-balance sheet exposures and the minimum capital funds
to be maintained as ratio to the aggregate of the risk weighted assets and other exposures, as
also, capital requirements in the trading book, on an on-going basis. In other words, Basel II
provides the guidelines how the risks are to be charged into equivalent risk weighted assets
and thereafter the CRAR or Capital to Risk weighted Asset Ratio is to be calculated. This CRAR
reflects the health of the bank. According to the Basel II Capital adequacy guidelines, a minimum
CRAR of 9% is mandatory for all banks.
While the Basel I framework was confined to the prescription of only minimum capital
requirements for banks, the Basel II framework expands this approach not only to capture certain
additional risks in the minimum capital ratio but also includes two additional areas, namely, the
Supervisory Review Process and Market Discipline through increased disclosure requirements
for banks. Thus, the Basel II framework rests on the following three mutually- reinforcing pillars:
Pillar 1: Minimum Capital Requirements which prescribes a risk-sensitive calculation of capital
requirements that, for the first time, explicitly includes operational risk in addition to market and
credit risk.
Pillar 2: Supervisory Review Process (SRP) which envisages the establishment of suitable
risk management systems in banks and their review by the supervisory authority.
Pillar 3: Market Discipline which seeks to achieve increased transparency through expanded
disclosure requirements for banks
The present article is generated in view of fulfilling the requirement of pillar II. This requires
banks to implement an internal process, called the Internal Capital Adequacy Assessment
Process (ICAAP), for assessing their capital adequacy in relation to their risk profiles as well as
a strategy for maintaining their capital levels.
The detailed basis of calculation of ICAAP is confidential. This article is made by extensively
studying the behavior and dependence of various factors involved in obtaining the Banks CRAR.
Then those factors are put into certain projected stress scenarios to observe what will be the
banks condition in those scenarios and what may be the proposed measures.
INTRODUCTION
The term Risk is defined as The possibility of an outcome not occurring as expected. It can
be measured and is not the same as uncertainty, which is not measurable. In financial terms,
*
Student, Batch: MBA16 (2012-14); Army Institute of Management; Email: anirban.saha34@gmail.com
79
risk refers to the possibility of financial loss. It can be classified as credit risk, market risk
and operational risk.
Risk Asset Ratio - A banks risk asset ratio is the ratio of a banks risk assets to its capital
funds. Risk assets include assets other than highly rated government and government agency
obligations and cash, for example, corporate bonds and loans. The capital funds include
capital and undistributed reserves. The lower the risk asset ratio the better the banks capital
cushion
Credit Risk
Credit risk is most simply defined as the potential that a banks borrower or counterparty may
fail to meet its obligations in accordance with agreed terms. It is the possibility of losses
associated with diminution in the credit quality of borrowers or counterparties. In a banks
portfolio, losses stem from outright default due to inability or unwillingness of a customer or
a counterparty to meet commitments in relation to lending, trading, settlement and other
financial transactions. Alternatively, losses result from reduction in portfolio arising from actual
or perceived deterioration in credit quality.
Market Risk
Market risk refers to the risk to a bank resulting from movements in market prices in particular
changes in interest rates, foreign exchange rates and equity and commodity prices. In simpler
terms, it may be defined as the possibility of loss to a bank caused by changes in the market
variables. The Bank for International Settlements (BIS) defines market risk as the risk that
the value of on or off balance sheet positions will be adversely affected by movements in
equity and interest rate markets, currency exchange rates and commodity prices. Thus,
Market Risk is the risk to the banks earnings and capital due to changes in the market level
of interest rates or prices of securities, foreign exchange and equities, as well as, the volatilities
of those changes.
ICAAP
The ICAAP and SREP are the two important components of Pillar 2 and could be broadly
defined as follows:
The ICAAP comprises a banks procedures and measures designed to ensure the following:
a) An appropriate identification and measurement of risks;
b) An appropriate level of internal capital in relation to the banks risk profile; and
c) Application and further development of suitable risk management systems in the bank.
The SREP consists of a review and evaluation process adopted by the supervisor, which
covers all the processes and measures defined in the principles listed above. Essentially,
these include the review and evaluation of the banks ICAAP, conducting an independent
assessment of the banks risk profile, and if necessary, taking appropriate prudential measures
and other supervisory actions. (Not in the scope of this article)
CRITERIA GOVERNING ICAAP
The Basel II document of the Basel Committee also lays down the following four key principles
in regard to the SRP envisaged under Pillar 2:
80
Principle 1: Banks should have a process for assessing their overall capital adequacy in
relation to their risk profile and a strategy for maintaining their capital levels.
Principle 2: Supervisors should review and evaluate banks internal capital adequacy
assessments and strategies, as well as their ability to monitor and ensure their compliance
with the regulatory capital ratios. Supervisors should take appropriate supervisory action if
they are not satisfied with the result of this process.
Principle 3: Supervisors should expect banks to operate above the minimum regulatory
capital ratios and should have the ability to require banks to hold capital in excess of the
minimum.
Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from
falling below the minimum levels required to support the risk characteristics of a particular
bank and should require rapid remedial action if capital is not maintained or restored.
It would be seen that the principles 1 and 3 relate to the supervisory expectations from banks
while the principles 2 and 4 deal with the role of the supervisors under Pillar 2.
An analysis of the foregoing principles indicates that the following broad responsibilities have
been cast on banks and the supervisors:
Banks responsibilities:
a.
b.
c.
d.
e.
f.
g.
h.
Banks should have in place a process for assessing their overall capital adequacy in
relation to their risk profile and a strategy for maintaining their capital levels (Principle 1)
Banks should operate above the minimum regulatory capital ratios (Principle 3)
Supervisors responsibilities
Supervisors should review and evaluate a banks ICAAP. (Principle 2)
Supervisors should take appropriate action if they are not satisfied with the results of
this process. (Principle 2)
Supervisors should review and evaluate a banks compliance with the regulatory capital
ratios. (Principle 2)
Supervisors should have the ability to require banks to hold capital in excess of the
minimum. (Principle 3)
Supervisors should seek to intervene at an early stage to prevent capital from falling
below the minimum levels. (Principle 4)
Supervisors should require rapid remedial action if capital is not maintained or restored.
(Principle 4)
PURPOSE
To study the computation of the Banks CRAR in details in accordance to the RBIs
Capital Adequacy Ratio under BASEL II framework.
To study the working mechanism of ICAAP in UCO Bank in details.
To conduct stress test on a given real life scenario of the bank to find the CRAR of the
bank in 2013-2014 under different stress conditions.
Risk Management Proportionality:

UCO Banks operations are mainly confined to domestic operations with limited presence
overseas. It also has very limited exposures to derivatives and have not originated securitization
81
PROJECT SYNOPSIS

Manish Jaggi*
ABSTRACT
The project provides knowledge of financial service industry of which insurance, stocks, fixed
deposits and mutual funds form an integral part. The project focuses on the investors behaviour in
financial market towards financial companies. It provides an overall view on the financial standing
of the company, products offered and services provided by the competitors in the industry and
where the investors invest more in financial market. Lastly, the project also includes an analysis of
how much risk the investors take and for how many years they invest in the market.
INTRODUCTION
Edelweiss Capital Limited is a Mumbai-based company which started its operation in the
year 1995. The mission statement of the company is Ideas create, values protect. It provides
services like investment banking, institutional equities, private client broking, asset
management, wealth management, investment advisory services, treasury, insurance broking,
wholesale financing and mutual funds. The major clients are corporations, institutional investors,
and high net-worth individuals (HNI).
OBJECTIVES
To identify the target consumer for invest in the market.

To get a feel of the customers perception about Edelweiss services products.
To find an appropriate communication message for attracting the people to
Edelweiss.
To study the perception of the customers with reference to the share market.
To analyze the level of satisfaction of customers transacting business.
To offer suggestions for increasing the level of satisfaction of the customers.
To study the customers satisfaction with reference to Edelweiss.
SCOPE AND METHODOLOGY

To understand and analyze the awareness of the investors about the financial market and
finding out the ways for better promotion to provide the best services at the most competitive
prices and provide recommendations of any deviation from that purpose.
The project is in two parts. The first part of the project is comprised of the study of Indian
Financial Market and various financial products offered by Edelweiss Broking Ltd as a whole
and the second part deals with the investors perception regarding their investment preferences
about investment in various financial products.
*
Student, Batch: MBA17 (2013-15); Army Institute of Management Kolkata Email: manishjaggi99@gmail.com
89
FINDINGS AND ANALYSIS

Distribution of sampling size
Individual
HNI
Large
Corporate
Medium
Corporate
Small
Corporate
200
80
68
32
20
INTERPRETATION
Most of respondents who took part actively gave the response and most of individuals gave
good response which shows that they wereinterested to invest in the financial market.
RECOMMENDATIONS
Edelweiss Broking Ltd has made a great progress since its inception and today it is amongst
one of the best broking company in India, but a lot needs to be done to achieve its target to
be the number one broking company in India. The main purpose of the study was to see what
is the perception of Edelweiss Broking in the minds of the investors and to highlight the
perceived strengths and weakness of Edelweiss Broking Ltd. The recommendations, after a
detailed analysis of the study, are as discussed below:
90
Mutual Funds are amongst the most preferred investment vehicle. So the focus
should be to try to tap as many investors as possible.
Schemes should be devised keeping in mind the basic need of the people, i.e.,
safety and stability.
The investors who do not invest in financial products are also willing to invest in
financial products provided they are made aware of the concept of financial product.
So, effort should be made to convert this segment, and measures should be taken
to implement it, like hiring a dedicated person for this task alone.
Service and relationship aspect of the financial product should be improved upon
which was found out to be a major hindrance in the development of the investor
base in Kolkata.
REFERENCES
1.
http://edelweiss.in/
2.
http://www.edelweissfin.com/Home/AboutUs.aspx
3.
http://www.edelweissfin.com/
4.
http://www.edelweissfin.com/Home/Careers.aspx
91
BOOK REVIEW
94

Prof. Udai Pareek
Publisher: Oxford University Press
First edition published in 2004
Revised third edition published in 2011
ABOUT THE AUTHOR
Late Prof. Udai Pareek was considered to be the father of Organizational
Behaviour (OB) in India. He started his career as a teacher of Psychology in
Jaipur and went on to teach at various prestigious institutes such as the University
of Delhi, Indian Agricultural Research Institute, the University of North Carolina,
and IIM Ahmedabad. He was also on the governing boards of several institutes
and companies.
Revised and updated by Sushama Khanna, Dean and Director (Outreach), UPHRLABS, EMPI Business School, New Delhi.
Organizational Behaviour is an important component of Human Resource Management in
todays business scenario to sustain company need to hire, motivate and retain the best fit.
Another important challenge that all the major MNCs are facing is how to manage the diversified
culture. So, Organizational Behaviour a growing field - has got tremendous scope and
opportunity.
There are many books available in this area. But this book has got certain special features
which are discussed below. The entire book is divided into five parts comprising 26 chapters.
Part 1 Introduction. This part deals with an introduction to Organizational Behaviour. It is
further sub divided into three chapters.
Chapter 1 - Introduction to OB: It gives an overview of OB which include its history, trends,
approaches in India and how it influences organization and its members.
Chapter 2 - Changing Context: This chapter has been expanded in the revised edition by
including topics like employee engagement, retention, IT and CSR.
Chapter 3 - Positive Perspective: This chapter of the book focus on positive approach of
individuals by self management, trust, collaboration, positive thinking and positive reinforcement.
Part 2- Individual. The second part of the book deals with influence of OB on individual. It is
sub divided into seven chapters.
Chapter 4 Foundation of Individual Behaviour: This chapter throw lights on individual behaviour
and how factors like personal, psychological, organizational and environmental factors affect
individual behaviour.
Chapter 5 Personality and Personal Effectiveness: In this chapter, the author focuses on
different theories and approaches of Personality, Emotion and Personal Effectiveness.
Chapter 6 Learning Process: In this chapter, the author discusses different learning theories
95
including experimental learning theory.

Chapter 7 Motivational Process: This chapter of the book consists of major theories of
motivation, including both need based theories and cognitive or process theories of motivation.
Chapter 8 Managing work motivation: The chapter mainly focuses on organizational implication
of motivation. The revised versions include integrated theory of motivation.
Chapter 9 Perceptual Process, Attitude and Values: In this chapter, the author discusses
Perception, its process and errors. He also covers Attitude, its approaches and glimpses of
value and ethics in organizational setting in this chapter.
Chapter 10 - Attributional Process - Internality and Optimism: This chapter discusses
importance of internality on individual and also discusses optimism and pessimism on individual
effectiveness.
Part 3 - The Role. The third part of the book mainly covers importance of role, managing
stress, decisional process and interpersonal relationship. Like earlier parts, this part also
includes four chapters
Chapter 11- Roles and Role Effectiveness: The chapter defines roles, its efficacy, with special
focus on role intervention.
Chapter 12- Coping with Frustration, Stress, and Burnout: It discusses frustration which
leads to stress and its coping strategies.
Chapter 13- Decisional Process and Consensus Building: In this chapter, the author
emphasises on different models of decision making, various decision making styles and
consensus building.
Chapter 14- Transactional Analysis and Managerial Interpersonal Style:This chapter discusses
the importance of interpersonal relationship with the help of different models.
Part4 -The Team. The fourth part of the book gives insight to team and its implication in
organizational context. Like previous parts, this part consists of five chapters which are as
follows:
Chapter 15- Effective Group and Teams: After going through this chapter, readers will get an
overview about group and how it is different from team.
Chapter 16- Conflict Management: In this chapter, author wants to make the reader aware
about the concept of conflict and how to resolve the conflict.
Chapter 17- Developing Collaboration: After reading this chapter readers will know the
importance of socialization and collaboration in organization.
Chapter 18- Leadership Theories and Style: Though all the chapters are relevant, but I
personally feel this chapter is very important as in this chapter the author highlights upon
different theories of leadership and its implication in organizational set up.
Chapter 19- Developing Leadership for Tomorrow: In continuation with the previous chapter, in
this chapter also the author discusses the modern theories of leadership with some good
models of leadership from the leading Indian companies.
Part 5 - The Organisation. This is the last part of the book which deals with organization
and its different aspects. Like other parts, this part consists of seven chapters.
96
Chapter 20 - Organizational Structure: In this chapter, the author discusses about different
aspects related to organization structure and organization design.
Chapter 21 - Communication: This chapter focuses on communication process, barriers,
types, feedback and also on communication effectiveness.
Chapter 22 - Power & Politics: In this chapter, the author emphasises on the concept of
power, its bases and some ideas on organizational politics with strategies for acquiring power.
Chapter 23 - Organizational Culture and Climate: This chapter deals with various aspects
related to culture with a special emphasis on Indian culture and management.
Chapter 24 - Organizational Learning and the Learning Organization: Concept related to
organizational learning including its process and mechanism along with the concept of learning
organization are discussed in this chapter.
Chapter25- Organizational Change: Change management, its process and its implementation
are discuss in this chapter.
Chapter26- Organization Development: This chapter discusses various aspects of OD.
The book is lucidly written by the author in easy language which will be beneficial for all the
readers. Special feature of the book is that at the end of each chapter, the author has provided
case study related to the topics discussed in that particular chapter. This practical approach
will help the students, teachers and other readers to understand the topic better. The author
has also provided some review questions so that readers can revise their learning. Another
important aspect of the book is that the main points are highlighted in a separate box.
However, I feel some real life examples from Indian corporate can enrich the readers more.
Reviewed by :
Prof Sougata Majumder
Assistant Professor HR
Email: sougata_majumder@rediffmail.com
97
98
N. Gregory Mankiw
Publisher: Cengage Learning
6th edition
ABOUT THE AUTHOR
N. Gregory Mankiw is Professor of Economics at Harvard University. He has
taught macroeconomics, microeconomics, statistics, and principles of
economics. He is a prolific writer and a regular participant in academic and
policy debates. Professor Mankiw has been a Research Associate of the National
Bureau of Economic Research, an advisor to the Congressional Budget Office
and the Federal Reserve Banks of Boston and New York, and a member of the
ETS test development committee for the Advanced Placement Exam in
Economics. He has also served as Chairman of the Presidents Council of
Economic Advisers from 2003 to 2005. His work has been published in various
scholarly journals such as the American Economic Review, Quarterly Journal of
Economics as well as in various popular forums such as The New York Times
and the Wall Street Journal.
The term economy is derived from Greek word Oikonomia where Oikos means house
and nemein mean to manage. Thus, etymologically the term economy means managing a
household with the limited funds available in the most economical manner. Our wants are
limitless whereas the resources to satisfy these wants are limited. Study of economics
ensures efficient utilization of these resources in a manner in which maximum amount of
output can be produced. Economics is regarded as a social science which deals with economic
activities of human beings living in the society. It is that branch of knowledge which is concerned
with the production, consumption, and transfer of wealth. According to Adam Smith,
Economics is the science of wealth. Economic theory can be divided into two parts: microeconomic theory and macro-economic theory also known as microeconomics and
macroeconomics respectively.
The book is divided into 9 parts which are further subdivided into 23 chapters. Part wise
layout of the book is discussed below.
Part 1 of the book comprises 3 chapters, out of which the first one deals in detail with the
fundamental principles of economics and the relevance of such principles in our lives. The
chapter is accompanied by important terms necessary to understand the basic idea behind
these principles along with case studies and current affairs relevant for the same. The 2nd
chapter is a guide on how to think like an economist. It helps to modify the thinking pattern of
students and budding economists to suit the growing demands of the subject and the
profession. How economists qualify as scientists, or policy advisors or how and why their
views conflict with each other, have all been discussed in detail. Chapter 3 covers in details
as to how interdependence fosters trade relations and ensures profitable gains for all the
99
participating nations. The chapter shows graphically how a single transaction can prove to be
a benefit for both the parties involved in it.
Part 2 of the book, which is divided into 3 chapters, primarily focuses on how markets work,
with thorough discussion on the law of demand and supply. What is a market, what are the
different types of market, what is the law of demand and supply, what is the relation between
demand and price have been discussed in-depth with the help of diagrams and graphs. The
next chapter offers a better understanding of the elasticity of demand and supply, various
types of demand elasticities and its application in local and international markets. The ultimate
chapter of this part delves deep into how demand and supply determine government policies.
Policies controlling prices, effects of tax on sellers and buyers are some of the main topics
covered in this chapter.
Part 3 of the book, which is divided into 3 chapters, acquaint us with the various other facets
of market that ensure economic well-being followed by taxation and international trade. The
very first chapter deals primarily with welfare economics and explains as to how buyers and
sellers benefit from the transactions to which they are parties and how the society is supposed
to increase these benefits as far as possible. Taxation has once again been discussed in this
part with principle focus on how taxation affects the economic well-being of the market
participants. The very last chapter of part 3 puts forth the level of economic well-being that
can be achieved with the help of international trade. The profits and losses that flow from
international transactions, the effects of taxes and tariffs imposed on imported goods and the
barriers that oppose free trade form the main portion of this chapter.
As we move further, we find part 4, comprising 2 chapters, where the author finally brings the
theories of microeconomics and macroeconomics in the forefront. The theories are interspersed
with real life examples which help readers understand them better. Thereafter, the most
important portion of macroeconomics i.e. National Income is discussed in detail with reference
to Gross Domestic Product (GDP) along with its various components. Thereafter, this part
covers how cost of living is measured and inflation analyzed with the help of Consumer Price
Index, difficulties in measuring the cost of living, and comparing dollar figures of different
times.
The real economy in the long run is discussed in Part 5 with the help of 4 chapters which
essentially deal with production and growth, the financial system, tools of finance and the
problem of unemployment. The very first chapter consists of in-depth discussion on the
determinants, functions and effects of production and productivity on overall economic growth.
The next chapter mainly discusses the advantages of saving and investment, the working of
the financial system and the important financial institutions. Thereafter, we are explained as
to how the value of money, at different points of time, is calculated and how to successfully
deal with risks so as to determine value of assets. This part ends with detailed presentation
of the problem of unemployment, reasons behind the problem and its effect on the economy.
In part 6, comprising 2 chapters, we enter a very important area dealing with money and
prices. The author defines what money exactly is, the function it performs in the economy,
and its various kinds. Bank, as a powerful institution of finance, and the various tools of
monetary control are also discussed under this chapter. The final chapter of this part delves
deep into the theories of inflation, its causes and effects along with effects of monetary
injection and how prices are stabilized by exercising control over money supply.
100
Part 7, consisting of 2 chapters, proceeds with the concept of open-economy macroeconomics

where its basic concepts are discussed with special reference to export and import. Thereafter,
this part focuses on forces that determine trade balance and exchange rate of an economy.
Flow of financial resources in the national and international sphere, exchange-rate
determination, and budget deficits are some of the topics dealt with in the chapter.
Short-run economic fluctuations have been discussed in Part 8, forming the penultimate part
of this book, comprising 3 chapters. The very first chapter in this part deals with the chief
features of economic fluctuations and most importantly the two variables with which these
fluctuations vary, namely, aggregate demand and aggregate supply. After this, the discussion
shifts to the impact of monetary and fiscal policy on aggregate demand. In the 3rd chapter the
indicators of economic performance, namely inflation and unemployment and the relation
between them are dealt with in detail.
Part 9 speaks out the ultimate and final thought regarding macroeconomic policy. The chapter
is presented in the form of a debate where important matters regarding macroeconomic
policy are discussed from various points of view.
This book is a must-have for students who wish to expertise in the field of economics while
keeping their base equally strong. It provides a comprehensive knowledge on the concept of
economics with key focus on macroeconomics using simple language and an easy to read
pattern. Every theoretical concept is followed by well supported diagrams and graphs to
make the understanding easier. Every chapter contains real-life information and current affairs
based on the topic discussed in that particular chapter. This makes the reading more analytical.
Each chapter is also followed by a list of unsolved problems which will improve a students
hold over that topic. Thus, this book offers a complete set of knowledge both theoretically as
well as analytically.
Reviewed by:
Prof Rabin Mazumder
Assistant Professor Economics
Email: rabin_eco@yahoo.com
101

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(FORMERLY NATIONAL INSTITUTE OF MANAGEMENT CALCUTTA)

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Dr. Arnab K Laha

Prof. Sudipti Banerjea

Dr. Pinaki Mitra

Dr. Indranil Mukherjee

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Calcutta Business School

Diamond Harbour Road

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Note for Contributors

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Opinion & Beliefs

Green Consumer Values

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AA, AAT, AOB, AAW, AATTb

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Std. Error of the Estimate

a. Predictors: (Constant), AOB, AAT, AAW, AA1, AATT

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and Influence of Industry Type. Journal of Marketing, 67(2), 106-122.

Chitra, K. (April-September 2007). In search of the Green Consumers: A perceptual Study.

Elkington, J. (1994). Toward the Sustainable Corpor-ation: Win-Win-Win Business Strategies

Eriksson, C. (2004). Can green consumerism replace environmental regulation?A

Ghosh, M. (2010) Green Marketing A changing concept in changing time. BVIMR

Peattie, Ken (1992), Green Marketing, London: Pitman Publishing.

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Solomon, M. R., G. Bamossy, S. Askegaard, and M. K. Hogg (2010). Consumer Behaviour: A

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Social Media Marketing and its Role in

Research Scholar, K L U Business School, Guntur, Andhra Pradesh. Email: mail4venkey@gmail.com