SRI SAI UNIVERSITY PALAMPUR

A SUMMER TRAINING PROJECT REPORT ON

CONSUMERS PERCEPTIONS ON KCC BANK LTD.

at KCC Bank Ltd. IN PARTIAL FULLFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (BATCH 201214)

Submitted To: Mr. Karan Assistant Prof. Sri Sai University Palampur.

Submitted By: Arju Sharma MBA 3rd Sem. Roll No. 612012015 Sri Sai University Palampur.

DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic entitled Consumers Perception on KCC Bank in Branch Office Nagri (Palampur).

I further declare that this project work is based on my original work and no part of this project has been published or submitted to anybody.

Arju Sharma Reg. No. 612012015

ACKNOWLEDGEMENT

I Arju, MBA Student in SRI SAI UNIVERSITY PALAMPUR, is highly grateful to all those who guided me in completing this project.

First of all, I would like to pay my heartiest thanks to entire staff of KCC BANK especially Mr. O P Mehta, Branch manager, who provided me such a wonderful opportunity to do Summer Training and provided their valuable suggestions in understanding the work of Research Project.

I would also like to thank Mr. Karan for his guidance and encouragement throughout my work. Last but not the least, I would like to thank all faculty of management who gave me the useful tips and suggestions regarding project.

Arju Sharma

PREFACE

The present era is undoubtedly a management era. Management is an important function in any organization. A management is one of the most important fields which are widely used in every stage of life. The effective management can be achieved only by effective management training and developing skill to understand the organizational level this project work is a part of the course of MBA and was done at KCC Consumer Perceptions. This project is prepared on the basis of awareness of KCC Consumer Perceptions in market and understanding the requirement of proper guidance to customers. KCC offers loans for homes-for buying or constructing your home, refinance a Consumer Perception availed from other institutions or even to extend or improve your existing home. This project helps me to better understanding of market and financial products and their benefits. Now I am feeling the great pleasure in delivering this project because of a better skill of handling the situation and customer understanding.

INDEX
Sr. No I II III 1. 2. 3. 4. 5. 6. Chapter No. Topic Acknowledgement Preface Executive summary Company profile Review of literature Need, scope and research methodology Objective of the study Data analysis and interpretation
CONCLUSION AND RECOMMENDATION

Page No. 4 5 7-8 9-26 28-32 33-36 37-38 39-49 50-52 53-56 57-58

Annexure-I (Questionnaire ) Annexure-II (Bibliography)

EXECUTIVE SUMMARY

I have done my Summer Internship Project from KCC BANK NAGRI(PALAMPUR). During my Summer Internship Project; I

implemented many concepts of marketing in the real life situation. This project work helped me to apply theoretical knowledge into practical aspects on collected data which was a worthy experience and during the discussion with company guide I realized that how important the project report is for the company and me. I also realized how teamwork, goal orientation and managing interpersonal relationships are integral part of professional life; therefore this will definitely help me to develop qualities required for executive. In addition, I understood products of my company and its targeted customers. Also I got information what are the basic categories of bank products. The customers which were not aware about the scheme says that KCC bank should improve their promotional area through different media like T.V. radio. Print media, and through IMC (Integrated Marketing Approach) and most of them votes for IMC. More than 80% of the customers were satisfied with location and condition of the Bank and more than 50% were satisfied with the process of disbursement, but maximum of the customers were dissatisfied with the behavior of the employees, they give suggestions to that the KCC Bank employees should change and improve their behavior towards their customers, from my findings I found that this behavior of employees is due to daily routine work load from which they got stressed. I recommend the
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bank to change the location of the employees from one branch to another and give them more and more incentives and also to employ more employees from which work load gets less and the employees will not feel any pressure and they will not feel any stress. Most of the customers choose KCC Bank because of simple procedures and more number of branches and the interest rates regarding their business was suitable according to them. Most of the customers rank good about KCC bank. The main purpose of this project work is to analyze the customer relationship management services provided by the KCC bank and to check the level of satisfaction, towards this service, among the customers. Consumer perception has become challenging issue for every financial institution as every organization is trying to provide services superior to the competitors. We did our research at the KCC bank, branch Kangra and the information we received there, along with the secondary research, helped us in strengthening our knowledge base regarding the topic. A questionnaire was chosen as a data gathering tool because given the time and cost restraints, this proved to be the most effective method. Each of us verbally administered the questionnaire to the customers and recorded the responses. In general customers give the following suggestions like customized products, more number of counters, improvement in employee behavior, provision of new schemes, use of IT and to improve the promotional area. Most of the customers were satisfied with the overall services of the bank and todays scenario they recommend to choose KCC bank.

CHAPTER NO-1
COMPANY PROFILE

COMPANY PROFILE

The Kangra Cooperative Bank Ltd. started in a very humble way as a small Thrift/Credit Society in March, 1960 by a few friends of Distt. Kangra of Himachal to help out the people of Himachal residing in Delhi to uplift their economic conditions and tide over the financial hardships. Dedication, sincerity and honesty of these members/associates brought rich fruits and this Thrift/Credit Society grew up into a big society within twelve years after its formation and successful running was converted into a primary urban Cooperative Bank in 1972 by RBI and was permitted to carry out banking activities including acceptance of deposits from public (non-members) by opening their Saving, Current and RD A/cs.

Twenty three years there from in June 1995 it was granted a license to carry out the banking business by the Reserve Bank of India . Thereafter, it was granted license to open branches and consequently six more branches were added in February, May, December 1996, June 1998 ,October 2008 and the last one in July 2009. In may 1970 it purchased Paharganj building and reconstructed the same in 1993. In october, 1997 it purchased the present premises at Janakpuri to set up administrative and HO. Central accounts and Personnel department are functioning from this building. It has a board meeting room. One branch also function here. The main branch along with its service branch, arbitration and recovery department is situated in its own three storied building at Paharganj. It purchased another Building in April 2008 At Jagatpuri where its one of the existing Branches has already been functioning.

PROMOTER

KCC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. , the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well. over a million dwelling units. KCC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, KCC was ideally positioned to promote a bank in the Indian environment.

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MISSION KCC Banks began operations in 1995 with a simple mission to be a World Class Indian Bank. We realized that only a single-minded focus on product quality and service excellence would help us get there. Today, the bank is on the way towards that goal. It is extremely gratifying that its efforts towards providing customer convenience have been appreciated both nationally and internationally.

The banks aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of banking services in the niche segments that the bank operates in and to achieve healthy growth in profitability, consistent with the banks risk appetite.

BUSINESSES

KCC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:

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WHOLE SALE BANKING SERVICES The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agribased businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

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RETAIL BANKING SERVICES The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The KCC Bank Preferred program for high net worth individuals, the KCC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

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CAPITAL STRUCTURE : Financial Position as on 31st March 2009

Share Capital Funds Deposits Investment Loan Profit Working Capital

figures in lacs 205.50 50352.90 328199.81 235879.62 132823.37 4508.76 397383.83

TREASURY

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government
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securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

GROWTH

KCC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a world-class Indian bank. Our business philosophy is based on four core values - Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in the industry.Our mission is to be "a World Class Indian Bank", benchmarking ourselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent With the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical standards,

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professional integrity, corporate governance and regulatory compliance.Our business strategy emphasizes the following :

Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce our cost of funds. Focus on high earnings growth with low volatility.

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FINANCIAL POSITION

Membership Clientele other than members Share money Reserve/Other funds Working Capital Deposits Advances Net Profit NPA CRAR

35442 97932 16.57 crores 15.34 crores 365.63 crores 299.27 crores 191.65 crores 5.47 crores 0.84% 19.16%

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WORK PLACE TRANSFORMATION FIVE S PART OF KAIZEN Focus on effective work place organization believe in Small changes lead to large improvement

Every successful organization have their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. KCC BANK also acquired the Japanese technique for smooth running of work and effective work place organization.

Five S Part of Kaizen is the technique which is used in the bank for easy and systematic work place and eliminating unnecessary things from the work place.

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BENEFIT OF FIVE S

It can be started immediately. Every one has to participate. Five S is an entirely people driven initiatives. Brings in concept of ownership. All wastage are made visible. FIVE S S-1 S-2 S-3 S-4 S-5 SORT SYSTEMATIZE SPIC-N-SPAN STANDARDIZE SUSTAIN SEIRI SEITON SEIRO SEIKETSU SHITSUKE

1. SORT:

19

It focus on eliminating unnecessary items from the work place. It is excellent way to free up valuable floor space. It segregate items as per require and wanted.

2. SYSTEMATIZE: Systematize is focus on efficient and effective Storage method. That means it identify, organize and arrange retrieval. It largely focus on good labeling and identification practices. Objective: A place for everything and everything in its place.

3. SPIC- n - SPAN: Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership. 4. STANDERDIZE: It focuses on simplification and standardization. It involves standard rules and policies. It establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility for doing various jobs and decides on Five S frequency.

5. SUSTAIN:

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It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization.

HUMAN RESOURCES

The Bank continued to focus on training its employees, both on-the-job as well as through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. KCC Bank lists people as one of its stated core values. The Bank believes in empowering its employees and constantly takes various measures to achieve this. Management :-

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Sh.Rasil Singh Mankotia Hon'ble Chairman of the Bank Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

Board of Directors Sr. No. Name of the Director 1. Shri Rasil Singh Mankotia, Chairman Phone No. 9418076361(M)

V.P.O. Kale Amb, Tehsil & Distt. Hamirpur ( H.P.) Shri Bhagwan Dass, Vice 9418187839(M) Chairman VPO Sanghol, Tehsil Jaisinghpur Distt. Kangra ( H.P.). Shri Desh Raj MLA, Director Village Dah, P.O. Dah Kulara Tehsil Indora, Distt. Kangra Shri Ajit Paul Mahajan, Director 9418489605 (M) VPO Dohab, Tehsil Shahpur
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9816285008 (M)

Distt. Kangra ( H.P.) Shri Gurcharan Singh Thakur, Director Village Harmittan P.O. Nehran Pukhar Tehsil Dehra, Distt. Kangra(H.P.) Shri Joginder Singh Guleria, Director VPO Dehra, Tehsil Dehra Distt. Kangra ( H.P.) Smt. Prem Lata Thakur Director,VPO Bhutti Colony, Tehsil & Distt. Kullu (H.P.)

9816258935 (M)

9418085733 (M)

9816002221 (M)

Shri Karnail Singh Rana, Director Village Kandi, P.O. Bhugnara Tehsil Nurpur,Distt. Kangra(H.P.) Shri Jaid Nath Sharma Director Village Hatli, P.O.Galore, Tehsil Nadaun, Distt. Hamirpur (H.P.) Shri Ramesh Chand Bhatia, Director Village Amtrar,P.O. Suneher Tehsil & Distt. Kangra( H.P.)

9418122286 (M)

9418090816 (M)

10

9816250324 (M)

23

11

Shri Ranjeet Singh Rana, DirectorVillage Bhilla,P.O. Bachhwai Tehsil Palampur, Distt. Kangra( H.P.) Shri Amrit Lal Bhardwaj, Director Village & P.O. Dehlan, Tehsil & Distt. Una ( H.P.) Shri Davinder Kumar, Director VPO Charara, Tehsil Bangana, Distt. Una ( H.P.) Shri Karan Singh Pathania, Director Village Bain Attarian P.O. Kandrori, Tehsil Indora Distt. Kangra(H.P.) Shri Rajinder Singh Director Village Tharass,P.O. Hurla Tehsil & Distt. Kullu ( H.P.)

9816340135 (M)

12

9816031863 (M)

13

9816644040 (M)

14

9805366394 (M)

15

9418060287 (M)

TECHNOLOGY

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KCC Bank Ltd. operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

KCC BANk Ltd. business strategy emphasizes the following: Increase market share in Indias expanding banking and financial

services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk

management.Develope innovative products and services that attract the

25

targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.

2.2 PRODUCT SCOPE: KCC Bank Ltd. offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards.
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 Customer center.

PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING SERVICES A. Accounts & Deposits Savings Account Regular Savings Account Savings Plus Account Savings Max Account Senior Citizens Account No Frills Account Institutional Savings Account Payroll Salary Account Classic Salary Account Regular Salary Account Premium Salary Account Defence Salary Account Kid's Advantage Account
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 Pension Saving Bank Account Family Savings Account Kisan No Frills Savings Account Kisan Club Savings Account

Current Account Plus Current Account Trade Current Account Premium Current Account Regular Current Account Apex Current Account Max Current Account Reimbursement Current Account

Fixed Deposit Regular Fixed Deposit Super Saver Account Sweep-in Account Recurring Deposit Demat Account Safe Deposit Locker

B. Loans Personal Loans Home Loans

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 Two Wheeler Loans New Car Loans 33333 Used Car Loans Overdraft against Car Express Loans Loan against Securities Loan against Property Commercial Vehicle Finance Working Capital Finance Construction Equipment Finance

C. Investments & Insurance Mutual Funds Insurance Bonds Financial Planning Knowledge Centre Equities & Derivatives Mudra Gold Bar

D. Forex Services Trade Finance Travelers Cheques

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 Foreign Currency Cash Foreign Currency Drafts Foreign Currency Cheque Deposits Foreign Currency Remittances Forex Plus Card

E. Payment Services Net Safe Prepaid Refill Bill Pay Direct Pay Visa Money Transfer E-Monies Electronic Funds Transfer Excise & Service Tax Payment

F. Access Your Bank - One View Insta Alerts Mobile Banking ATM Phone Banking Branch Network

G. Cards Silver Credit Card

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 Gold Credit Card Woman's Gold Credit Card Platinum plus Credit Card Titanium Credit Card Value plus Credit Card Health plus Credit Card KCC Bank Idea Silver Card KCC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES Funded Services Non Funded Services Value Added Services Internet Banking Clearing Sub-Membership RTGS sub membership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies
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3. NRI BANKING SERVICES Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Payment Services Net Safe Bill Pay Insta Pay Direct Pay Visa Money Online Donation Remittances

MILESTONES IN THE HISTORY

KCC Bank began its operations in 1960 with a simple mission to be a "Worldclass Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help us get there. Today, they are proud to say that they are well on our way towards that goal. It is extremely gratifying that their efforts towards providing customer convenience have been appreciated both nationally and internationally.
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QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, the bank offers a range of innovative products to meet these needs.

SWOT ANALYSIS

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STRENGTH 1. The biggest strength of Bank is Direct Banking channels. As Direct banking channels saves time and money both as a customer does not need to go to bank for any kind of transaction except cash withdrawal and cash deposits all other things are done sitting any where in the world. 2. All services or products of KCC Bank are available through direct banking channels. 3. Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours services. 4. Very easy to access and use. 5. A highly personalized services provided by the bank. 6. KCCs Direct Banking channels provide real time and accurate information.

WEAKNESS: 1. Unawareness about all Direct Banking Channels due to less advertisement. 2. Other private banks have started direct banking channels it may put some competition to KCC Bank in near future. 3. Resistance to Change.
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4. One should have the knowledge of the operations of the computers and of course the Internet.

OPPURTUNITIES: 1. Centralized banking makes easy for KCC Bank to provide services to customers. 2. Huge market of shareholders.

THREATS: 1. Vulnerable to reactive attack by competitors. 2. Attacks of web hackers. 3. Lack of infrastructure in rural areas could constrain investment. 4. High volume / low cost market is intensely competitive.

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CHAPTER NO-2

36

REVIEW OF LITERATURE

Consumers Perceptions On KCC Bank

At KCC Bank, I was assigned with the topic as Consumers Perceptions on KCC Bank for my project work. I joined the company as a Personal Banker. The selection of the topic was to know how the company generates business through them.

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Personal Banker are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through.

1.2 REASON FOR SELECTION OF THIS TOPIC:

The financial sector is one of the booming and increasing sectors in India. The Personal Banker are one of the most powerful, efficient and effective channel through which the company sales its various types of financial products and company takes operational work also. It is really difficult to convince customers and sell a single product and accomplish operational work.

Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction as an important strategic success indicator. Evidence is mounting that placing a high priority on customer satisfaction is critical to improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison
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to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company.

When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer.

Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This study is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.

IMPORTANCE TO THE COMPANY:

The ultimate purpose of giving me this topic was to know about the customers perceptions about the different products of the bank, and to know about operational process. how these products can attract them and how the company can generate maximum profit by convincing them through personal
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banker and to better understand customer requirement and to understand operational methodology.

LEARNING FROM THE STUDY:

The process of bank related transaction, bank related various terms, work environment of KCC Bank. Different products and services provided by the bank. Customer perception about the different product and the brand image of the bank. What are the problems faced by customer on daily basis. How to communicate with the customers. Different techniques of dealing with the customers. How to convince and convert a customer into a real customer. The literature available in the field under reference is very limited in nature and scope.The literature obtained by investigation in the form of reports of the committees. Commissions working groups established by the Union Government and RBI, the Research studies/articles of researchers/ bank

officials/ economists and the comments of economic analysts and news is reviewed here in this section: Patel and sayed (1980) of the National Institute of Banking Management made a valuable analysis of performance and prospects of RRBs. They also gave a comparative picture of performance in deposits, branch expansion and credit deployment of the cooperative banks, commercial banks and RRBs in a specified area.
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This was an eye opener for many researcher engaged in this field of rural credit. Financial Express, (1986) published a study on RRBs viability, which was conducted by Agriculture Finance Corporation in 1986 .The study revealed that viability of RRBs was essentially dependent upon the fund management strategy, margin between resources mobility and their deployment and on the control exercised on current and future costs with advances. The proportion of the establishment costs to total cost and expansion of branches were the critical factors, which affected their viability. The study further concluded that RRBs incurred losses due to defects in their systems and as such, there was need to rectify these and make them viable. The main suggestions of the study included improvement in infrastructure facilities and opening of branches by commercial banks in such areas where RRBs were already in operation. However the main limitation of the study was that its generalizations were based on the study of the Gramin Bank Kangra. RENDIL. (1988) conducted a study on RRBs taking a sample of 48 beneficiaries of rural artisans in various district of kashmir under J&K Bank. In this study, it was concluded that the beneficiaries were able to find an increase in their income because of the finance provided by the bank BALMI (1990) in his study on Performance and Growth of Regional Rural Banks in Kangra found that these banks had benefited the beneficiaries in
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raising their income, productivity, employment and use of modern practices and rehabilitate the rural artisans SINDHU (1993) carried out a study on the topic Growth and Performance of RRB in kangra. On the basis of the study of all RRB of kangra, it is found that there was an enormous increase in deposits and outstanding advances. The researcher felt the need to increase the share capital and to ensure efficient use of distribution channels of finance to beneficiaries. RASIL SINGH (1996) conducted a study with the objective of analyzing the role of Regional Rural Banks in Economic Development and revealed that RRBs have been playing a vital role in the field of rural development. Moreover, RRBs were more efficient in disbursal of loans to the rural borrowers as compared to the commercial banks. Support from state Governments, local participation, proper supervision of loans and opening urban branches were some steps, which should be taken to make RRBs 'further efficient. SAMEER (2002) Policies of current phase of financial liberalization have had animmediate, direct, and dramatic effect on rural credit. There has been a contraction in rural banking in general and in priority sector landing and preferential landing to the poor in particular. AJIT PAL (2004) has examined the growth and regional distribution of rural banking over the period 1975-2002. The documents gains made by historical underprivileged region of east, north-east, and central kangra during the period of social and development banking. These gains were reversed in the 1990s.
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CHAPTER NO-3
43

NEED,SCOPE,AND RESAERCH METHODOLOGY

RESEARCH METHODOLOGY

Introduction and meaning Research methodology is way to systematically solve the research problem. The research methodology includes the various methods and techniques for conducting a research. D. Salinger and M. Stephenson in the encyclopedia of social sciences define research as the manipulation o things, concepts or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art Research is a careul investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies information. Required
44

to address these issues: designs the method for collecting information: manage and implements the data collecting process analyses the results and communicates the finding and their implecations.

RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT PROBLEM DEFINATION: Personal Banker were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing and operational support. So there is need to study the customers perception and attitude towards the various products and services provided by the bank. RESEARCH: - It means search for facts, answers to questions and solutions to problems.

RESEARCH DESIGN: Research design constitutes the blue print for the collection, measurement and analysis of data. The present study seeks to identify the perception of consumers on KCC Bank in Kangra. The research design is exploratory in nature. The research has been conducted on users within Kangra. For the selection of the sample, convenient sampling method was adopted and an attempt has been made to include all the age groups and gender within different occupation. Type of Research
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The present study will adopt the exploratory approach wherein, there is a need to gather large amount of information before making a conclusion.

DEVELOPING THE RESEARCH PLAN: The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.

COLLECTION OF DATA: 1: SECONDARY DATA: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companys database and website of the company.

2: PRIMARY DATA: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.

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SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Different professionals. Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and Students of Kangra. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 50 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 50 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected.

LIMITATIONS OF THE STUDY It is said, nothing is perfect and there would be few shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have remained due to limitation of the study.
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Time seemed to be our most limited resource. To conduct a comprehensive research project in a 6 week period is very difficult. The absence of appropriate funding limited the extent of our study. With additional financial resources, the scope of our study could have been enlarged, resulting in a more representative study. Interview bias could not be avoided as in case of many surveys open ended questions involve the use of probing techniques that increase interview bias. However, as our study did not use many open ended questions, the extent of the bias was reduced. It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 45 days. As stipend, money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Kangra so the findings should not be generalized. The area of research was Kangra and it was too vast an area to cover within 45 days.

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CHAPTER NO-4
OBJECTIVES

OBJECTIVES OF THE STUDY

The objective behind the conducting project exercise was to get useful insight about the banking sector. I have prepared this report with some specific objectives. The primary objective of our study is to analyze the efficiency and effectiveness by the kcc bank. The objective of our study is as under: PRIMARY OBJECTIVES:
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To study the customers perception about KCC Bank. To measure the awareness level of people regarding direct banking channels, products offered by KCC bank. To study brand image of the bank. To increase the business of the bank. SECONDARY OBJECTIVES: To evaluate the overall satisfaction level of customers regarding services and products offered by the bank. To acquire new customer by convincing them and to promote the benefits of those which are provided by the bank. To find the different way of convincing customers. To assess the customer contribution towards the growth of the bank (in terms of recommendations for changes and improvements). To determine the need and purpose of a personal banker

CHAPTER NO-5
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ANALYSIS AND INTERPRETATION

QUESTION WITH ANALYSIS AND INTERPRETATION: A questionnaire was used as the primary source of data collection and the detailed question wise analysis of the data is given below:-

Q.1 Your Occupation?

Category Business Profession

No. of Respondents 14 12

Percentage 28 24
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Service Students

18 6

36 12

%age
40% 35% 30% 25% 20% 15% 10% 5% 0% Business Profession Service Student 12% 28% 24% 36%

%age

Interpretation From above response it can be seen that. 28% respondents Occupation is Business. 24% respondents Occupation is Profession. 36% respondents Occupation is Service. 12% respondents Occupation is Student. Q.2 From which bank you have bank account?

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Category KCC Bank Others

No. of Respondents 17 33

Percentage 34 66

%age
34%

66% KCC Bank Other

Interpretation From above response it can be seen that 34% respondents have account with KCC bank. 66% respondents have account with others bank.

Q.3. Why you want to open an account in bank ?

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Category Efficient service Convenient location Acquaintance Others

No. of Respondents 24 14 8 4

Percentage 48 28 16 8

%age
48% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Efficient service

28% 16% %age 8%

Convenient location

Acquaintance

Other

Interpretation From above response it can be seen that From the survey we came to know that 48% people prefer services of the bank for opening the account. About 28% people open account in the bank for the convenient location. 26% people open account because of acquaintance with the bank officers
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 only 8% people open account because of other reason.

Q.4. Do you want to open an account with KCC bank?

Category Yes No Not Idea

No. of Respondents 12 21 17

Percentage 24 42 34

%age
24% 34% YES NO Not Idea

42%

Interpretation From above response it can be seen that

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24% respondents want to open an account in KCC bank. 42% respondents does not want to open an account in KCC bank. 34% respondents are already customers of KCC bank.

Q.5. what is your perception about different products/services provided by KCC bank?

Category Lucrative Not Lucrative No Idea

No. of Respondents 24 21 5

Percentage 48 42 10

%AGE

48% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% LUCRATIVE 42%

NOT LUCRATIVE

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Interpretation From above response it can be seen that. 48% respondents perception about different products is lucrative. 42% respondents perception about different products is not lucrative. 10% respondents have no idea.

Q.6.Are you aware that the KCC bank provides you free phone banking & net banking services.

Category Yes No

No. of Respondents 32 18

Percentage 64 36

%AGE

36%

YES NO 64%

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Interpretation From above response it can be seen that 64% respondents are aware of it. 36% respondents are not aware of it.

Q.7. Are you aware of different terms and conditions which are very much essential to maintain an account at KCC Bank?

Category Yes No

No. of Respondents 17 33

Percentage 34 66

%AGE
70% 60% 34% 50% 40% 30% 20% 10% 0% YES NO

66%

%AGE

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Interpretation From above response it can be seen that. 34% respondents are familiar with different terms and conditions which are very much essential to maintain account with the bank. 66% respondents have no idea about it.

Q.8. Is the staff of KCC bank is co-operative ?

Category Yes No No Idea

No. of Respondents 34 11 5

Percentage 68 22 10

68%

%AGE

70% 60% 50% 40% 30% 20% 10% 0% YES NO NO IDEA 22% 10% %AGE

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Interpretation From above response it can be seen that. 68% respondents believe that staff of KCC bank is co-operative. 22% respondents believe that staff of KCC bank is not co-operative. 10% respondents have no idea.

Q.9. Do you think that KCC bank provides innovative products and superior services?

Category Yes No

No. of Respondents 37 13

Percentage 74 26

Sales
26%

YES NO

74%

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Interpretation From above response it can be seen that 74% respondents believe that KCC bank provides innovative products and superior services. 26% respondents believe that KCC bank does not provide innovative products and superior services. Q.10. If you get opportunity in future would you like to be attached with KCC bank ?

Category Yes No

No. of Respondents 38 12

Percentage 76 24

Sales
24%

YES NO

76%

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Interpretation From above response it can be seen that 76% respondents want to attach with KCC bank. 24% respondents doesnt want to attach with KCC bank.

CHAPTER NO-6
CONCLUSION AND RECOMMENDATION
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CONCLUSIONS AND RECOMMENDATION

CONCLUSIONS:

KCC Bank, the banking arm of KCC is expected to go on stream. The bank already has good number of employees on board and is recruiting personal banker heavily to take the headcount to many more. It is on the brim of increasing its customers through its attractive schemes and offer.

The project opportunities provided was market segmentation and to know the perception of prospective customers in potential geographical location and convincing them to attract more customers so that new business opportunities of the bank can be explored. Through this project, it could be concluded that people are not much aware about the various products of the bank and many of them not interested to open an account, to invest money at all. Majority of people have more faith in public sector banks as compare to private banks. Professionals and businessman are more attracted towards the products and services provided by the KCC bank as compare to people in services and students. Services was considered as unsought good which require hard core
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selling, but in changing trend in income and people becoming financially literate, the demand for banking sector is increasing day by day.

So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least I would like to thank KCC Bank for giving me an opportunity to work in the field of Marketing and Operation. I hope the company finds my analysis relevant.

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RECOMMENDATION Finally some recommendations for the company are as follows: To make people aware about the benefit of becoming a customer of KCC Bank, following activities of advertisement should be done through

1. Print Media. 3. Stalls in Trade Fares information.

2. Hoarding & Banners. 4. Distribution of leaflets containing details

Other facilities must be provide to the customer: The bank should provide life time valid ATM card to all its customers. Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000, so that people who are not financially strong enough can maintain their account properly. The company should provide a pass book to all its customers. Make people understand about the various benefits of its products. Company should organize the program in the society, so that people will be aware about the company and different products of the bank. Company should open more branches in different cities.
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LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are: The project was constrained by time limit of two months. Mindset of people may very depending upon their age, gender, income etc. Getting appointment from the concern person was very difficult. People mind set about the survey was obstacles in acquiring complete Respondents were very busy in their schedule. So it was very time consuming for information & positive interaction, them to answer all the questions properly.

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ANNEXURE-1
QUESTINNAIRE
67

ANNEXURES

1. QUESTIONNAIRE I am a student of Sri Sai University Palampur presently doing a project onConsumers Perception on KCC Bank. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. Dear Sir/Madam, Name: .. Address: .. Contact No :( O) (M) City: ..................... Pin: .

1. Your Age: ____________________

2. Education Qualification. a. Undergraduate b. Graduate c. Postgraduate

3. Marital Status

.
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a. Married b. Single 4. Number Of years Are You in Kangra. a. Less than five years b. More than five years

5. Occupation. a. Business b. Profession c. Service d. Student

6. Your annual household income. a. <than 2 lack b. Between 2 to 5 lack c. Between 5 to 8 lack d. >than 8 lack

7. From which bank you have account? a. KCC b. Others

8. Why you want to open an account in bank ? a. Efficient Service

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b. Convinient location c. Acquaintance d. Others 9. What is your perception about different products and services offered by KCC Bank?

a. Lucrative b. Not lucrative c. No idea

10. Do you want to open an savings account with KCC Bank? a. Yes b.No

11. Are you aware of that KCC Bank provide you free phone banking & net banking services. If you open a new savings account with KCC bank? a. yes b. No 12. Are you aware of different terms and conditions which are very much essential to maintain an account at KCC Bank? a.Yes b.No 13. Is the staff of KCC bank is co-operative ? a.Yes b.No
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14. Do you think that KCC bank provides innovative products and superior services? a.Yes b.No 15. If you get opportunity in future would you like to be attached with KCC bank? a.Yes b.No

Date: Signature

Thank You

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ANNEXURE-2
BIBLIOGRAPHY
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BIBLIOGRAPHY S.NO AUTHORS NAME:

NAME OF THE BOOK

1.

PHILIP KOTLER

Marketing Management (10th Edition),

2.

V.S.RAMASWAMY

Marketing Management (3rd Edition),

3.

C.R.KOTHARY

Research Methodology (2nd Edition),

4.

S.P.KASANDE

Research methodology (3rd Edition),

NEWS PAPERS:

Times of India Financial Express

WEB REFERENCES http:www.kccb.com/consumer perception_rshn.htm http:www.mdkccb@sancharnet.in/profile/paper.htm http:www.faculty.rsu.edu/history/mgtfayol.html

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http:www.mr-guide.com/data/G510.htm http:www.sancharnet.com/lo_index.htm

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