SUMMER PROJECT REPORT ON

CUSTOMERS PERCEPTION ABOUT CREDIT POLICIES AND FACILITIES OF

SUBMITTED IN PARTIAL FULFILLMENT OF DEGREE OF MASTERS OF BUSINESS ADMINISTRATION SESSION (2010-2012) PAPER CODE-(CP-303) SUBMITTED BY: INDU BALA MBA 3rd SEM University Roll No. SUBMITTED TO ICL INSTITUTE OF ENGINEERING AND TECHNOLOGY SOUNTLI (KURUKSHETRA UNIVERSITY, KURUKSHETRA)

DECLARATION

I hereby declare that, the project entitled CUSTOMERS PERCEPTION ABOUT CREDIT POLICIES AND FACILITIES OF KCC BANK assigned to me for the partial fulfillment of MBA degree from Kurukshetra University, Kurukshetra. The work is originally completed by me and the information provided in the study is authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for the award of any other degree.

INDU BALA MBA 3rd SEM University Roll No.

ACKNOWLEDGEMENT Gratitude is the hardest of emotions to express and one often does not find adequate words to convey what one feels and trying to express it The present project file is an amalgamated of various thoughts and experiences .The successful completion of this project report would have not been possible without the help and guidance of number of people and specially to my project guide in the company , Mrs Tripta Sharma I take this opportunity to thank all those who have directly and indirectly inspired, directed and helped me towards successful completion of this project report.

I am also immensely indebted to my project guide, Mrs pooja Anand Lecturer, ICL, for his illumining observation, encouraging suggestions and constructive criticisms, which have helped me in completing this research project successfully.

There are several other people who also deserve much more than a mere acknowledgement at their exemplary help. I also acknowledge with deep sense of gratitude and wholehearted help and cooperation intended to me by them. INDU

PREFACE

Summer Training is the bridge for a student that takes him from his theoretical knowledge world to practical industry world. The main purpose of industrial visit is to expose for industrial and business environment, which cannot be possible in the classroom. The advantages of this sort of integration, which promotes guided to corporate culture, functional, social and norms along with formal teaching are numerous.

1) To bridge the gap between theory and practical. 2) To install the feeling of belongingness and acceptance. 3) To help the student to develop the better understanding of the concept and questions already raised or to be raised subsequently during their research period.

The present report gives a detailed view of the CUSTOMERS PERCEPTION ABOUT CREDIT POLICIES AND FACILITIES OF KCC BANK The research is definitely going to play an important role in developing an aptitude for hard self-confidence.

CONTENTS

1) CHAPTER-1 INTRODUCTION TO 2) CHAPTER -2 OBJECTIVES 3) CHAPTER-3 RESEARCH METHODOLOGY 4) CHAPTER-4 ANALYSIS AND INTERPRETATION 5) CHAPTER-5 FINDINGS 6) CHAPTER-6 LIMITATIONS 7) CHAPTER-7 RECOMMENDATIONS 8) CHAPTER-8 CONCLUSION BIBLIOGRAPHY ANNEXURE

INDUSTRY COMPANY PROJECT

CHAPTER 1 INTRODUCTION

INDUSTRY PROFILE

The Origin and growth of Banking For centuries bank have played an important role in financial system of any economy. vital role continues even today although the forms of banking have changed with the changing need of economies . Banking in the crude form is an age old phenomenon and its invention preceded that of coinage. As new and more sophisticated instrument of currency evolved, so did banking. It evolved as business expended and barter system gave way to money, which needed save deposit. In its simple form ,it originated temples royal places around 1000 B. C. in Babylon, as strongest faith of people ,which were also functioning as treasuries against receipts, was perhaps the earliest form of banking. When coins made of precious metals like gold and silver emerged as commonly accepted form of wealth, lending activity at an interest began. Goldsmiths were the initial bankers and their receipts for money received guaranteed payments or goldsmiths receipts were the earliest form of bank instrument

Origin of Banking in India A money economy existed in India since the days of Buddha, but banking in India flourished in the ancient Vedic times. Even in the RIG Veda, there was mention about indebtedness and the earliest dharm shastras lay down rates of interest and regulations governing debts and mortages.Refrences to money lending business are found in the Manu Smriti too. The literature of Buddhist period,the Jatahas and archeological discoveries contain evidence of existence of Sreshthisor bankers. They were extensive references in law of Manu to money lending and other problem .Trade guilds acted as bankers and in South India, the village communes occasionally advanced loans to peasants. The emergence Vishays as indigenous bankers and hundi as the earliest form of Indian banking .Indigenous bankers played a very important role in lending money for trade and commerce . Every town, big or small, had a Seth,a Shah, a Shroff or a Chattier, who performed a number of banking function.

Development Bank
Developments banks are those financial institutions, which provide long term capital for industries and agriculture ,namely: Industrial Finance Corporation of India Industrial Development Bank of India Industrial Credit & Investment Corporation of India Small Industries Development Bank of India National Housing Bank

History of Bank
The origins of states bank of India date bank to 1806 when the Bank of Calcutta(later called the Bank of Bengal)was established in 1921,the Bank of Bengal and two other Presidency

bank(Bank of Madras and the Bank of Bombay) were amalgamated to form the imperial Bank of India. In 1955, the controlling interest in the imperial Bank of India . Today branches spanning all time zones. SBI,s International Banking Group delivers the full range of border finance solution through its four wings- the Domestic, division. State Bank of India has spread its arms around the world and has network.

Post Independence
The partition of India in1947 had adversely impacted the economics of Punjab and West Bengal, and banking activities had remained paralyzed for months Indias independence marked the end of a regime of the Lassies faire for the Indian Banking. The GOVT. OF India initiated measure to play an activity role in the economic life of nation and industrial policy Resolution adopted by the Govt. in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segment of the economy including banking and finance. The major steps to regulate banking included: In1948,The Reserve Bank OF india,Indias central banking authority, was nationalized, and it became an institution owned by the Govt. of India. In 1949, the Banking Regulation Act was enacted which empowered the RBI to regulate, control and inspect the banks of India.

INTRODUCTION OF BANK The essential function of a bank is to provide services related to the storing of value and the extending credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so-called non-bank. Banks are a subset of the financial services industry.

The word bank is derived from the Italian banca, which is derived from German and means bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to an out of business bank, having its bench physically broken. Moneylenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying them interest on the asset. Services typically offered by banks Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include:
Directly take deposits Lend Cash

from the general public and issue checking and savings accounts

out money to companies and individuals (see moneylender) checks. money transactions such as wire transfers and cashiers checks cards, ATM, and debit cards.

Facilitate

Issue credit

Online banking. Storage of

valuables, particularly in a safe deposit box. solutions safe and profitable investment options

Investment

Types of banks There are several different types of banks including:

Central

banks usually control monetary policy and may be the lender of last resort in the

event of a crisis. They are often charged with controlling the money supply, including printing paper money. An example of central bank is the Reserve Bank Of India.
Investment

banks underwrite stock and bond issues and advise on mergers. Examples of

investment banks are Goldman Sachs of the (USA) or Kotak Mahindra Bank Ltd (India).

 Merchant

banks were traditionally banks, which engaged in trade financing. The

modern definition, however, refers to banks, which provides capital to firms in the form of shares rather than loans. Unlike Venture capital firms, they tend not to invest in new companies.
Private banks Savings

manage the assets of the very rich.

banks write mortgages exclusively. banks are banks located in jurisdictions with low taxation and regulation, such

Offshore

as Switzerland or the Channel Islands. Many offshore banks are essentially private banks.
Commercial Retail

banks primarily lend to businesses (corporate banking)

banks primarily lend to individuals. banks engage in several of these activities. For example, Citigroup, a large

Universal

American bank, is involved in commercial and retail lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to customers in other countries. Banks are prone to crisis The traditional bank has an inherent tendency to crisis. This is because the bank borrows short term and lends leveraged long term. The sum of deposits and the bank's capital will never equal more than a modest percentage of the loans the bank has outstanding. Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a bad portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in the late 1980s and early 1990s is such an incident.

Role in the money supply A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a security. Market. The bank then lends out most of these funds to borrowers. However, it would not be prudent for a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This behavior is called fractional-reserve banking and it is a central issue of monetary policy. Some governments (or their central banks) restrict the proportion of a bank's balance sheet that can be lent out, and use this as a tool for controlling the money supply. Even where the government does not control the reserve ratio, a minimum figure will still be set by regulatory authorities as part of banking supervision. Regulation The combination of the instability of banks as well as their important facilitating role in the economy led to banking being thoroughly regulated. The amount of capital a bank is required to hold is a function of the amount and quality of its assets. Banks are usually required to purchase deposit insurance to make sure smaller investors are not wiped out in the event of a bank failure. Another reason banks are thoroughly regulated is that ultimately, no government can allow the banking system to fail. There is almost always a lender of last resortin the event of a liquidity crisis (where short term obligations exceed short term assets) some element of government will step in to lend banks enough money to avoid bankruptcy. Also the bulk of all money transactions today involve the transfer of bank deposits. Depository institutions, which we normally call banks, are at the very center of our monetary system. Thus a basic knowledge of the banking system is essential to an understanding of how money works. Bank Deposits and Reserves:

The monetary base is created by the Fed when it buys securities for its own portfolio. Bank deposits themselves are not base money, rather they are claims on base money. A bank must hold reserves of base money in order to meet its depositors' cash withdrawals and to cover the checks written against their accounts. Reserves comprise a bank's vault cash and what it holds on deposit at the Fed, known as Fed funds. The Fed requires banks to maintain reserves of at least 10% of their demand deposits, averaged over successive 14-day periods. The Movement of Bank Reserves: When a depositor writes a check against his account, his bank must surrender that amount in reserves to the payees bank for the check to clear. Reserves are constantly moving from one bank to another as checks are written and cleared. At the end of the day, some banks will be short of reserves and others long. Banks redistribute reserves among themselves by trading in the Fed funds market. Those long on reserves will normally lend to those short. The annualized interest rate on interbank loans is known as the Fed funds rate, and varies with supply and demand. The reserve requirement applies only to the bank's demand deposits, not its term or savings deposits. Thus when a bank depositor converts funds in a demand deposit into a term or savings deposit, he frees up the reserves that were held against the demand deposit. The bank can then use those reserves in several ways. For example, it can hold them to back further lending, buy interest-earning Treasury securities, or lend them to other banks in the Fed funds market. Controlling the Fed Funds Rate: The supply of reserves changes whenever base money enters or leaves the banking system. This occurs when the Fed buys or sells securities or when the public deposits or withdraws cash from banks. The demand for reserves changes whenever total demand deposits change, which occurs when banks increase or decrease aggregate lending. The Fed controls the Fed funds rate by adjusting the supply of reserves to meet the demand at its target interest rate. It does so by adding or draining reserves through its open market operations. The Fed funds rate effectively sets the upper limit on the cost of reserves to banks, and thus determines the interest rates that banks must charge the public for loans. Bank interest rates

influence the demand for loans, and thereby the net amount of bank lending. That in turn determines the liquidity of the because the Treasury transfers funds from its commercial bank accounts to replace the funds spent out of its Fed account.private sector, which is important in terms of aggregate demand and inflationary pressures. The selection and control of the Fed funds rate is the key monetary policy instrument of the Fed. The Effects of Government Spending: The Fed acts as a depository for the Treasury as well as member banks. All government spending is paid out of the Treasury's account at the Fed. Whenever the government spends, the Fed debits the Treasury's account and credits the Fed account of the payees bank. The Treasury replenishes its Fed account with transfers from its commercial bank accounts where it deposits the receipts from taxes, and the sale of its securities. In order to minimize variations in aggregate banking system reserves, the Treasury maintains a nearly constant balance in its Fed account. In effect, Treasury payments are simply transfers from its commercial bank accounts to the bank accounts of the public. Funds move in the reverse direction when the public pays taxes or buys securities from the Treasury. The Treasury must maintain a positive balance in its commercial bank accounts to avoid having to borrow directly from the Fed. However it has no need for, and does not accumulate, balances in excess of its near-term payment obligations. On average, government spending does not affect the aggregate bank deposits of the private sector. The Treasury sells or redeems securities as required to balance its inflows against outflows. However short-term variations occur because receipts cannot be synchronized with spending. Banking system reserves remain essentially unaffected by government spending

COMPANY PROFILE

OVERVIEW

Kangra central co-operative Bank Ltd., is an entity formed with the coming together of erstwhile, kcc Bank Ltd, a premier bank in the Indian Private Sector.The origin of the erstwhile KCCB was pretty humble. It was in the 17 march 1920 that a team of visionaries came together to form a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services.It's been a long journey since then and the Bank has grown in size and stature to encompass every area of present-day banking activity and has carved a distinct identity of being India's Premier Private Sector Bank.In 1970, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the high position in banking. In 1980, the bank completed its Diamond Jubilee year. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 1995. The origin of KCCB Group 1. 2. -74. Came into existence on 17th March 1920 (License No. RPCD.09/2009-10). Indora Banking Union was merged and 2nd Branch of the Bank opened at Nurpur in Jan1956 3. Palampur Banking Union was merged and 3rd Branch of the Bank opened at Palampur in Jan1957 4. Nadaon Banking Union was merged and 4th Branch of the Bank opened at Hamirpur in Oct1958 5. 6. The Bank suffered losses because of the partition in 1947 to the tune of Rs.10.64 Lacs In Mar 1962, the bank suffering from the setback of partition was granted Rs.4.09 Lacs by the Govt. 7. Govt also provided Interest Free Relief Loan of Rs.3.98 Lacs and Govt of India Loan of Rs.4.97 Lacs @ 3.87% in 1962 In 1971-72 8. The Bank entered into the deposit mobilization scheme of Pong Dam Area aggressively and secured maximum share of Deposit Bank Deposits increased from Rs. 256 Lacs in 1971-72 to Rs. 1054 Lacs in 1973

2.1Distt.Central Cooperative Bank: Co-operation emphasizes the idea of a voluntary association of individuals for the achievement of the common goods. It stands for the principle of ALL FOR EACH AND EACH FOR ALL .theory for cooperation is that an isolated and weak individual can, by associated with others and by moral development and mutual support, obtain in his own degree, the material advantage available to wealthy or powerful persons, and there-by develop himself to the fullest extent of his natural abilities.A Distt.Central Cooperative Bank operates at the middle tier in the cooperative structure i.e. at the Distt. Level. The middle tier exists between Primary Agriculture Credit Societies And Apex Bank. According To NABARD: Central Cooperative Bank means the principal cooperative society in a Distt. of a state, the primary object of which is the financing of other cooperative societies in the 2.2 Some objects of the Kangra Central Cooperative Banks Ltd:

To promote the economic interest of the member of the bank in accordance with the cooperative principles and to facilitate the operations of the cooperative societies registered under the Act. 1. To serve as balancing centre and clearing house for Co-operative Societies in its area of operation registered under the Act. 2. To start and maintain funds calculated to benefit its staff members or ex-staff members and their dependents 3. To facilitate the operations of any society. 4. To advice societies in the matter of principles and practices of banking and inspect them as and when necessary for the purpose. 5. To open its Branches/pay offices in the area of operations of the bank with the prior approval of the Registrar. 6. To act as the custodian of the Reserve Fund of societies.

7. To do in general all such things as are incidental or conducive to the promotion or advancement of business of the bank. To do any other form of business which the Banking Regulation Act or State Government specify as a form of business in which it is lawful or the bank to engageTo carry on and manage the affairs of society the committee of which has been suspended or superseded under the Act.

ABOUT ORGANISATION KANGRA CENTRAL COOPRATIVE BANK

BOARD OF DIRECTOR

Sr. No. 1.

Name of the Director Shri Rasil Singh Mankotia, Chairman V.P.O. Kale Amb, Tehsil & Distt. Hamirpur

Phone No. 9418076361(M)

( H.P.) 2 Shri Bhagwan Dass, Vice Chairman VPO Sanghol, Tehsil Jaisinghpur Distt. Kangra ( H.P.). 3 Shri Desh Raj MLA, Director Village Dah, P.O. Dah Kulara Tehsil Indora, Distt. Kangra 4 Shri Ajit Paul Mahajan, Director VPO Dohab, Tehsil Shahpur Distt. Kangra ( H.P.) 5 Shri Gurcharan Singh Thakur, Director Village Harmittan P.O. Nehran Pukhar Tehsil Dehra, Distt. Kangra(H.P.) 6 Shri Joginder Singh Guleria, Director VPO Dehra, Tehsil Dehra Distt. Kangra ( H.P.) 7 Smt. Prem Lata Thakur Director, VPO Bhutti Colony, Tehsil & Distt. Kullu (H.P.) 8 Shri Subhash Sahore, Director 9805257503 (M) 9816002221 (M) 9418085733 (M) 9816258935 (M) 9418489605 (M) 9816285008 (M) 9418187839(M)

VPO Rajput Sahore, Tehsil & Distt. Una ( H.P.) 9 Shri Karnail Singh Rana, Director Village Kandi, P.O. Bhugnara Tehsil Nurpur, Distt. Kangra(H.P.) 10 Shri Jaid Nath Sharma Director Village Hatli, P.O.Galore, Tehsil Nadaun, Distt. Hamirpur (H.P.) 11. Shri Ramesh Chand Bhatia, Director Village Amtrar,P.O. Suneher Tehsil & Distt. Kangra ( H.P.) 12 Shri Ranjeet Singh Rana, DirectorVillage Bhilla,P.O. Bachhwai Tehsil Palampur, Distt. Kangra( H.P.) 13. Shri Amrit Lal Bhardwaj, Director Village & P.O. Dehlan, Tehsil & Distt. Una ( H.P.) 14. Shri Davinder Kumar, Director VPO Charara, Tehsil Bangana, Distt. Una ( H.P.) 9816644040 (M) 9816031863 (M) 9816340135 (M) 9816250324 (M) 9418090816 (M) 9418122286 (M)

15.

Shri Karan Singh Pathania, Director Village Bain Attarian P.O. Kandrori, Tehsil Indora Distt. Kangra(H.P.)

9805366394 (M)

16.

Shri Rajinder Singh Director Village Tharass,P.O. Hurla Tehsil & Distt. Kullu ( H.P.)

9418060287 (M)

17.

Shri Rigizen Samphel Hayerpa, Director VPO Kawaring, Tehsil Keylong Distt. Lauhal & Spiti(HP)

9418550400 (M)

18.

Shri Pawan Kumar, Director VPO Ambota, Tehsil Amb, Distt. Una ( H.P.)

9816613905 (M)

19.

Shri Rakesh Thakur, Director VPO Samirpur, Tehsil Bhoranj Distt. Hamirpur ( H.P.)

9418476833 (M)

20.

Shri S.K. kangra, Director(RCS Nominee) Dy. RCS, Dharmshala

9418134914 (M)

21

Sh. Jagdev Singh Pathania, HAS, Managing Director

9418024970 (M)

22

Sh. J.S. Rana, General Manager

9418791237 (M)

Financial Position as on 31st March 2010

figures in lacs Share Capital Funds Deposits Investment Loan Profit Working Capital 250.50 50352.90 3281199.81 235879.62 132823.37 4508.76 397383.83

The co-operative banks has a history of almost 100 years. The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary cooperative banks.

HEAD OFFICES

MANAGING DIRECTOR
JAGDEV SINGH PATHANIA (01892-224969) J.S. RANA GENERAL MANAGER 01892-223280 S.S. SHARMA DY. GENERAL MANAGER 01892-222353 AJEET CHOUHAN GENERAL MANAGER 01892-224607

2.7 ZONAL OFFICES

Name and Phone Number Baijnath (01894)-262248 Banjar (01903)-222620 Daulatpur Chowk (01976)-265569 Dehra (01970)-233654 Hamirpur (01972)-223208 Indora (01893)-241475 Kangra (01892)-265682 Kullu (01902)-222416 Nadaun (01972)-232298 Nagrota Bagwan (01892)-252946 Nurpur (01893)-220275 Palampur (01894)-235417 Samirpur (01972)-275748 Una (01975)-22617

Some facts about KCCB bank

KCCB bank branches works on profit centre.

Around 14 zonal office and 22 branches in HIMACHAL PARDESH.

Bank

Assets

Liabilities

A thing owned by a someone having some value PRODUCTS

A thing for which one is responsible

CASA

TD/FD

Others
Lockers

Current account

Term deposits

Recurring Savings account Fixed Depoits Deposits

Life Insurance

LOAN PRODUCT

General Insurance

CO-OP. SOCIETIES Agriculture loan Non Farm Sector loan Personal Vehicle loan Weavers/Industrial/Housing loan Cash Credits loan

INDIVIDUALS Agriculture loan Non Farm Sector loan Personal Vehicle loan Housing loan Cash Credits loan

INTRODUCTION

TO

PROJECT

CUSTOMERS PERCEPTION ABOUT CREDIT POLICIES AND FACILITIES OF

INTRODUCTION

Customer perception 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 . The ultimate purpose of 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 banker and to better understand customer requirement and to understand operational methodology. 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:

MEANING OF CREDIT POLICIES AND FACILITIES.

Guidelines that spell out how to decide which customers are sold on open account, the exact payment terms, the limits set on outstanding balances and how to deal with delinquent accounts . guidelines (1) the terms and conditions for supplying goods on credit, (2) customer qualification criteria, (3) procedure for making collections, and (3) steps to be taken in case of customer delinquency. Also called collection policy. Though most consumers expect to pay cash or use a credit card when making a purchase, commercial customers typically want to be billed for any products and services they buy. You need to decide how much credit you're willing to extend them and under what circumstances. There's no one-size-fits-all credit policy--your policy will be based on your particular business and cash-flow circumstances, industry standards, current economic conditions, and the degree of risk involved. As you create your policy, consider the link between credit and sales. Easy credit terms can be an excellent way to boost sales, but they can also increase losses if customers default. A typical credit policy will address the following points:

Credit limits. You'll establish dollar figures for the amount of credit you're willing to extend and define the parameters or circumstances.

Credit terms. If you agree to bill a customer, you need to decide when the payment will be due. Your terms may also include early-payment discounts and late-payment penalties.

Deposits. You may require customers to pay a portion of the amount due in advance.

Credit cards and personal checks. Your bank is a good resource for credit card merchant status and for setting policies regarding the acceptance of personal checks.

Customer information. This section should outline what you want to know about a customer before making a credit decision. Typical points include years in business, length of time at present location, financial data, credit rating with other vendors and credit reporting agencies, information about the individual principals of the company, and how much they expect to purchase from you.

Documentation. This includes credit applications, sales agreements, contracts, purchase orders, bills of lading, delivery receipts, invoices, correspondence, and so on.For assistance, ask your particular industry's trade or professional association for guidelines. Part of your research should include finding out what your competitors' terms are and taking them into consideration when determining your own requirements.An oftenoverlooked element in setting a credit policy is the design of invoices and statements. The invoice is the document that describes what the customer is being billed for; the statement is the follow-up document that indicates the status of the account. One collection and creditor rights expert says that invoices and statements that are clear, easy to read, and allow the customer to quickly identify what is being billed are likely to be paid faster.

Here are several points to include on the invoice:

An invoice number An invoice date A customer number or other identifying code A complete and clear description of the product or service and item numbers, if appropriate. Avoid abbreviations your customer may not understand.

The customer's purchase order, job order or other reference information that will make identifying the invoice easier

The total dollar amount due, clearly indicated and Payment terms and due date (and specify any early-payment incentives or late-payment penalties).

CREDIT POLICIES AND FACILITIES OF KCC BANK Kisan Credit Card Scheme
Kisan Credit Card Scheme (KCC) aims at providing adequate and timely support from the banking system to the farmers for their short-term credit needs for cultivation of crops. This mainly helps farmer for purchase of inputs etc.,during the cropping season. Credit card scheme proposed to introduce flexibility to the sytem and improve cost efficiency.

Benefit of KCC Scheme

Simplifies disbursement procedures Removes rigidity regarding cash and kind No need to apply for a loan for every crop Assured availability of credit at any time enabling reduced interest burden for the farmer. Helps buy seeds, fertilizers at farmers convenience and choice Helps buy on cash-avail discount from dealers Credit facility for 3 years no need for seasonal appraisal Maximum credit limit based on agriculture income Any number of withdrawals subject to credit limit Repayment only after harvest Rate of interest as applicable to agriculture advance Security, margin and documentation norms as applicable to agricultural advance

How to get Kisan Credit Card?

Approach your nearest public sector bank and get the details Eligible farmers will get a Kisan Credit Card and a pass book. It has the name, address, particulars of land holding, borrowing limit, validity period, a passport size

photograph of holder which may serve both as an identity card and facilitate recording of transactions on an ongoing basis.

Borrower is required to produce the card cum pass book whenever he/she operates the account.

Kisan Credit Cards from leading banks in India

Allahabad Bank - Kisan Credit Card (KCC)

Andhra Bank - AB Kisan Green Card

Bank of Baroda - BKCC

Bank of India - Kisan Samadhan Card

Canara Bank - KCC

Corporation Bank - KCC

Dena Bank - Kisan Gold Credit Card

Oriental Bank of Commerce -Oriental Green Card (OGC)

Punjab National bank - PNB Krishi Card

State Bank of Hyderabad -KCC

State Bank of India -KCC

Syndicate Bank -SKCC

Vijaya Bank -Vijaya Kisan Card

Personal Accident Insurance Scheme to cover Kisan Credit Card holder

'Personal Accident Insurance Package" is provided to the Kisan Credit Card (KCC) holders. Salient features of the scheme

Scope of Cover - This scheme covers all the Kisan Credit Card Holders against death or permanent disability within the country.

Persons Covered - All KCC holders up to the age of 70 years. Risk coverage - The benefits under the scheme are as under; Death due to accident caused by outward, violent and visible means: Rs.50,000/Permanent total disability: Rs.50,000/Loss of two limbs or two eyes or one limb and one eye: Rs.50,000/Loss of one limb or one eye: Rs.25,000/Period of Master Policy - Valid for a period of 3 years. Period of Insurance - Insurance cover will be in force for a period of one year from the date of receipt of premium from the participating Banks in cases where annual premium is paid. In case of three year cover, the period of insurance would be for three years from the date of receipt of premium.

Premium - Out of the Annual premium of Rs.15/- per KCC holder, Bank has to pay Rs.10/- and Rs.5/- has to be recovered from KCC holder.

Operational procedure - The servicing of the business will be undertaken by the four Insurance Companies on zone-wise basis- United India Insurance Co Ltd covers Andhra Pradesh, Karnataka, Kerala, Andaman and Nicobar, Pondicherry, Tamil Nadu and Lakshadweep.

Implementing branches have to remit the Insurance premium on a monthly basis along with the list of farmers to whom KC cards have been issued during the month.

Claims Procedure - In case of death, disablement claims & death due to drowning: Claim administration will be done by the designated office of the Insurance Companies. Separate procedure is to be followed.

SAVING BANK ACCOUNT FACILITY

Key Features:
Opened with minimum balance of 500. Interest type is compounded. Payable frequency half year Interest for public is 3.5 Interest for societies is3.5 For senior citizen is 3.5 Free 2 Demand Drafts Free unlimited usage of payable at par of Cheques transactions. Free Transfer of funds across all branches Pan no. is compulsory for with a value exceeding Rs. 50,000/- in one transaction. Full facility of account transferred to one branch to another b

Eligibility:
Individuals above the age of 18. Upwardly mobile tech savvy professionals, entrepreneurs in metros and urban areas. Guardians on behalf of minors. Salaried individuals. Trusts / Societies and Charitable Institutions

Credit Card Scheme:

The KCC was introduced in August 1998 for short- and medium-term loans to provide adequate and timely credit support from the banking system in a flexible and cost-effective manner, covers 644.65 lakh farmers throughout India as on 30 December 2006. The scheme has been extended with effect from 31October 2006 for all kinds of loan requirements of borrowers of the SCARDBs under the KCC, viz, short-, medium- and long-term and a reasonable component of consumption credit.

National Agricultural Insurance Scheme (NAIS):

This scheme, with increased coverage of farmers, crops and risk commitment, was introduced in India from Rabi1999-2000, replacing the erstwhile Comprehensive Crop Insurance Scheme (CCIS).The main objective of the scheme is to protect farmers against crop losses suffered on accountof natural calamities, such as drought, flood, hailstorm, cyclone, pests and diseases. The scheme is being implemented by the Agriculture Insurance Company of India Ltd(AICL).9.13 The scheme is available to all farmers both loanee and non-loanee irrespectiveof their size of holding. It envisages coverage of all food crops (cereals, millets andpulses), oilseeds and annualcommercial/horticultural crops, in respect of which past yielddata is available for an adequate number of years.Among the annualcommercial/horticulturalcrops,

sugarcane,potato,cotton, ginger, onion, turmeric, chillies pineapple, annual banana, jute, tapioca, coriander, cumin and garlic, have already been.covered under the scheme. All other annual commercial/horticultural crops are stipulateto be insured in due course of time, subject to availability of past yield data. The schemeis operating on the basis of area approach, i.e., defined areas for each notified crop.9.14 The premium rates are 3.5 per cent (of sum insured) for bajra and oilseeds; 2.5 percent for other Kharif crops; 1.5 per cent for wheat, and 2 per cent for other Rabi crops. Inthe case of commercial/horticultural crops, actuarial rates are being charged. Small andmarginal farmers are entitled to a subsidy of 50 per cent of the premium charged from them, which will be shared 50:50 by the central and state governments. The premium subsidy will be phased out over a period of five years. During 2006-07, a 10 per cent subsidy on the premium is available to small and marginal farmers.

Review of NAIS: Over a period of implementation of the NAIS, certain limitations/shortcomings relating to unit area of insurance, calculation of guaranteed income, low indemnity level, delay in settlement of insurance claims etc., have been observed. Keeping in view the limitations in the existing scheme, a joint group was constituted to study the improvements required in the existing crop insurance schemes. The group made an in-depth study of the related issues and submitted its report, following which the report was circulated among the states/UTs and various other quarters for comments/views. Most of the states/UTs have agreed to the suggestions given by the joint group. Based on the recommendations of the joint group and comments received from various states/UTs and other concerned organisations, a review of the NAIS is under consideration of the Government of India. The proposed modified scheme with improved features, likely to be implemented from the year 2007-08, will provide an effective risk mitigation mechanism to the farming community in the form of effective crop insurance solutions.

Central Financial Assistance: In order to strengthen the cooperative credit structure for meeting the credit requirement of the farmers, central assistance is released to the state government under the scheme viz. investment in debentures of SLDBs. Under the NAIS, the Government of India releases the central share towards payment of indemnity claims, premium subsidy, operational expenses, etc. to the AICL.

Cheque book facility for cash drawals

In tune with the model scheme the banks have allowed withdrawal under KCC either by withdrawal slips or by cheques. While the Co-operative banks have by and large issued cheque books to all the borrowers, the CBs have issued the same only to the literate borrowers

LOCKERS FACILITY

Key Features: In this locker they can keep his those things which is not safe in his house like jewelry and other costly things. Bank gives a key to his customer to operate his locker a/c Free Transfer of funds in all branches. Free Statement of Account by calling Customer Service Line facility

Benefits:

Customers can use this a/c to secure his costly things. No unexpected service charges in this a/c Free limited access in this a/c. They any time withdraw their funds in to his a/c .

Eligibility:

Individuals above the age of 18. Guardians on behalf of minors. Costly thing necessary for a locker a/c.

FIXED DEPOSITS ACCOUNT:

Key Features:
Opened account with minimum balance 500 Interest type is simple Payable frequency monthly/quartly/half yearly/on maturity. Terms of interest in FD. 7 to 14 days: 2.50 15 to 45 days: 2.75 46 to 90 days: 4.00 91 to 179 days: 5.25 180 to 1 year: 6.25 1 year and less than 2 year: 7.25 2 years and less than 3 years: 7.50 3 years to 10 years: 8.00 Free issue of personalized cheque books. Free transfer of funds across all the branches of ING. Free Customer Service Line Free joint account status with one other family member. Full facility of account transferred to one branch to another branch. Adhoc Checkout* (Temp Overdraft) to an extent of 50 % of the last salary credit charged at 18 % for the number of days overdrawn. Service Charge of Rs.100/- for every month that the account is overdrawn.. Pan no. is compulsory for with a value exceeding Rs. 50,000/- in one transaction.

Eligibility:

Individuals above the age of 18.

The minimum number of employees of the corporate, whose salary accounts are to be opened, should be 1 Where there is a joint account holder, the normal KYC norms need to be adhered to for the joint account holder Preferably corporate to have a current account with

KCCB PRVIDES THE INSURANCE SERVICES WITH THE HELP OF THESE COMPANIES:-

Corporate Tie-up
Sometime

we have to reach out in new directions in order to change and grow

National Insurance Company Limited

The Bank has signed a MOU with National Insurance Company Limited for Corporate Agency Arrangement to provide non-life Insurance Services to Customers and General public along with the Banking Services at a single window through various branches of the Bank.

Kotak Mahindra, Old Mutual Life Insurance Limited

We are pleased to inform you that Bank has entered into a Referral Agreement with Kotak Mahindra, Old

Mutual Life Insurance Limited. Under the agreement, the Bank will refer its customers and prospective customers through its branches to the insurance company for distribution and providing its life insurance products viz. Sukhi Jeewan and Eternal Life.

Hero Honda
We are pleased to inform you that Bank has entered into an MOU with Hero Honda Motors for financing Motor Cycles

Tata Motors
We are pleased to inform you that Bank has entered into an MOU with Tata Motors for financing Tata Vehicles

AXIS, HDFC and ICICI Bank

The Bank has also corporate tie-up with AXIS, HDFC and ICICI Bank for remittance and collection purposes

LOAN PRODUCT

For Co-operative society:

Agriculture Non firm sector

Personal vehicle Weavers/individuals/housing Cash credit

For individual:
Agriculture Non firm sector Personal vehicle Housing Cash credit

CATEGORY COOP.SOCIETIES

INTREST RATE OTHERS

1.AGRICULTURE LOAN
Crop loan/agriculture 8% Kisan credit cardUp to 3 lacs RS.3, 00,001/-above M t agriculture & allied 6.5% 8% 10.50% 7% 9% 11.0% 9%

Activities (fisheries, poultry, herbal, bee keeping) Tractor & Mechanization/irrigation 12%

Personal vehicle loan

For first year For second year For third & subsequent year Commercial vehicle Up to Rs 2.00 lacs Rs 2, 00,001-to 5.00 lacs Rs 5, 00,001-& above House loan Up to 5 years Above 5 years to 10 years Above 10 years to 15 years Above 15 years Hiring of bank accommodation Up to 5 yrs Above 5 yrs 12.25% 12.75% Term loan weavers Up to Rs 2.00 lac Rs 2, 00,001- & above 10.00% 11.00% Education loan Up to Rs 2 lac Rs 2 lac to above

8.00% 10.00% 10.50%

12.00% 12.00% 12.00%

8.50% 9.00% 9.50% 10.00%

12.75% 13.25%

10.25% 11.25%

10.50%

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 KCC bank provides free phone banking & net banking services.

CHAPTER 2 OBJECTIVE OF THE STUDY

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:
To study the customers perception about KCC Bank. To know the customer prefrences while investing. To understand the policies and facilities of 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 know about which type of services satisfied customers.

SECONDARY OBJECTIVES:
To evaluate the overall satisfaction level of customers regarding services and products offered 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 know whether the staff of kcc bank is co operative or not.

CHAPTER 3 RESEARCH METHODLOGY

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 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
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.

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 100 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.

CHAPTER 4 ANALYSIS INTERPERTATION

QUESTIONS 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 What is Your Occupation? Category

Business Profession Service Students

No. of Respondents
28 24 36 12

Percentage
28 24 36 12

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

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? Category

KCC Bank PNB OTHERS

No. of Respondents
50 30 20

Percentage
50 30 20

No. of Respondents

KCC Bank PNB OTHERS

Interpretation:- From above response it can be seen that

50% respondents have account with KCC bank. 30% respondents have account with PNB bank. 20% respondent have account with others bank.

Q.3. Do you already had an account with KCC bank?

Category Yes No No. of Respondents 65 35 Percentage 65 35

Category No. of Respondents Percentage

Interpretation :- From above response it can be seen that.

65% respondents are already customers of KCC bank. 35% respondents have no any account with kcc bank.

Q.4.what makes you to open another account with kcc bank ? Category
Efficient service Convenient location Acquaintance Others

No. of Respondents
48 28 16 8

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 only 8% people open account because of other reason

Q.5 Do KCC Bank provide better credit facilities and services than other public sector banks?
Number respondents Yes No 82 18 82 18 of Percentage

90 80 70 60 50 40 30 20 10 0 Number of respondents Percentage

Yes No No Yes

INTERPRETATION: KCC provide better facilities than other banks which is indicated as 82% are preferring KCC bank as compared to other public sector banks as only 18%.

Q.6 What facilities or benefits kcc provide? Facilities and benefits High interst rate of return Many credit schems Less legal fprmalities More time duration Percentage 12 30 10 48

High interst rate Many credit schems Less legal fprmalities More time duration

Interpretation:In this pie chart shows that kcc bank provide facilities like 12% high interst rate of return,30%many credit schems,10% less legal formalities and 48%more time duration.

Q.7 What is the base of investment of customer while investing in kcc bank?
CUSTOMERS PREFERENCES Better Services Goodwill Norms are low Interst rate Immediate Feedback TOTAL NO. OF PEOPLE 22 21 18 23 16 100

Customer Preferences

16%

22%

Better Services

Good Reputation
Norms are Low
23% 21%

Interest Rate Immediate Feedback

18%

Interpretation:
This Analysis shows that customer prefer Kangra Central Co-operative Bank for its features like Better Services, Good Reputation, for Low Norms and high Interest Rates as compared to other investment organizations

Q.8 What bank does to promote its customers relationship management? contents
Provide personlise services Provide customers services Makes waitings time plesurable

Percentage
20 50 30

percentage
50 40 30 20 10 0 Provide personlise services Provide customers services Makes waitings time plesurable percentage

Interpretation:From above diagram it be seen that KCC bank provide 50% customers services , 20%provide personlise services and30%makes waiting time pleasureable.

Q9. From which type of service are you satisfied with? Option Personnel accidental insurance scheme Total no 20 Percentage 20

Cheque back facility for 32 cash drawals National agricultural insurance scheme Any other 16

32

16

32

32

35 30 25 20 15 10 5 0 Percentage Total no

Interpretation: - It clearly shows that the 40% of the people were satisfied with the personal
accidental insurance scheme services provided by bank and 64 % were of the views that cheque book facility is the best and 32% of the people were of the views that the national agriculture insurance scheme is the most satisfied services given by kcc bank and 64% of the people were having views that some other services are most suitable respectively

Q.10 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 NOT LUCRATIVE NO IDEA 10% %AGE 42%

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

Category Yes No

No. of Respondents 64 36

Percentage 64 36

%AGE

36%

YES NO 64%

Interpretation:- From above response it can be seen that

64% respondents are aware of it. 36% respondents are not aware of it.

Q.12 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 34 66

Percentage 34 66

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

66%

%AGE

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

Category
Yes No No Idea

No. of Respondents
68 22 10

Percentage
68 22 10

68%

%AGE

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

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 and10% respondents have no idea.

Q,14 How the staff co-operative of kcc bank?

contents Efficient quiery handling Provide complete information Efficient after sale services

Percentage 25 50 25

Percentage
50 40 30 20 10 0 Efficient quiery handling Provide complete information Efficient after sale services Percentage

Interpretation:In this diagram it shows how kcc bank staff is co-operative 25% efficient quiery handling ,50%provide complete information and 25% provide efficent after sale services.

Q.15 Do you think that KCC bank provides innovative products and superior services?

Category
Yes No

No. of Respondents
74 26

Percentage
74 26

Sales
26%

YES NO

74%

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.

CHAPTER 5 FINDINGS

 Since our sample was collected from dharamshala majority of the respondent were Business man and govt.employees mainly in the age group of 26-35.Most of the respondent used kcc &SBI and pnb banks instead of other public/private sector banks. KCC scored the highest when it came to acquaint oneself with saving account pattern in banks closely followed by private banks. As far as number of transactions and visit to the bank is concerned in one month majority of them used it more than 7 times .As far as financial services are concerned majority of them used it. Other banks clearly scored over government banks when it came to facilities ATM availability and satisfaction with value added services and satisfaction with value added services and perceives it to be a value for money proposition when it came to choosing banks. Most of the peoples believe that KCC bank provides innovative products and superior services. 40% of the people were satisfied with the personal accidental insurance scheme services provided by bank and 64 % were of the views that cheque book facility is the best . 32% of the people were of the views that the national agriculture insurance scheme is the most satisfied services given by kcc bank and 64% of the people were having views that some other services are most suitable respectively. To know whether the staff of kcc bank is co operative or not.

CHAPTER 6 LIMITATION

LIMITATIONS OF THE STUDY

Sincere efforts have been made to eliminate discrepancies as far as possible but few would have remained due to limitation of the study. 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 and dharamshala so the findings should not be generalized. The area of research was Kangra and dharamshala it was too vast an area to cover within 45 days.

CHAPTER 7
RECOMMENDATION

AND SUGGESTION

RECOMMENDATION AND SUGGESTION

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

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

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.

CHAPTER 8 CONCLUSION

CONCLUSION
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 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.

BIBLIOGRAPHY
BOOKS NAME: . C.R.KOTHARY Research Methodology, S.K DUTTA Accounting and finance for bankers

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

ANNEXURES
1. QUESTIONNAIRE

Dear Sir/Madam, Name: .. Address: .. Contact No :( O) (M) City: ...............Pin: .State: I am a student of ICL Group of colleges presently doing a project onCustomers

Perception on KCC Bank.

Q.1 What is your occupation? Business Profession Service Student

Q.2From which bank you have bank account? Kcc bank P.N.B Others

Q.3 Do you already had an account with kcc bank? Yes No

Q.4 What makes you to open another account with kcc bank?
Efficient Service Convinient location Acquaintance Others s

Q5. Do Kcc bank provide better credit facilities and services than other public sector banks? yes No

Q.6 What facilities or benefits kcc bank provide? High interst rate of return Many credit schems Less legal formalities More time duration

Q.7 What is the base of investment of customers while investing in kcc bank? Better sevices Godwill

Norms are low Interst rate

Immediate feedback

Q.8 What bank does to promote its customers relationship management?

Provide personlise services Provide customise services

Makes waiting time pleasurable

Q.9 From which type of services are you satisfied with? Personnel accidental insurance scheme Cheque back facility for cash drawals National agricultural insurance scheme Any other

Q.10 What is your perception about different products and services offered by KCC Bank? Lucrative No idea

Not lucrative

Q.11 Are you aware of that KCC Bank provide you free phone banking & net banking services. ? yes No

Q.12 Are you aware of different terms and conditions which are very much essential to maintain an account at KCC Bank? Yes No

Q.13 Is the staff of KCC bank is co-operative ? Yes No

Q.14 How the staff co-operative of kcc bank? Efficent query handling Provide complete information Efficent after sale services

Q.15 Do you think that KCC bank provides innovative products and superior services? Yes No

Date: Place: Signature

Thank You