Professional Documents
Culture Documents
Customer Satisfaction of Rajkot Dist Coop Bank
Customer Satisfaction of Rajkot Dist Coop Bank
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HEAD OFFICE
SHREE RAJKOT DISTRICT CO-OPERATIVE BANK RAJKOT
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DECLARATION
I,____________________ Student of ________________hereby declare that the project work presented in this report is my contribution and has been carried out under supervision of Professor _________________________ of ___________________________________
The objective of the training undertaken is to get specialized knowledge in the specialized field, which further sharpen the skill and add practicality in the specialization.
This work has not been previously submitted to any other university for any other examination
DATE:
SIGNATURE (student)
PLACE:
CERTIFICATE
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This is to certify that Mr. _____________________ has satisfactorily completed the project work entitled Customer Satisfaction survey with reference to Rajkot Dist. Cooperative Bank Based on the declaration made by the candidate and my association as a guide for carrying out this work, I recommended this project report for evaluation as a part of the MBA program of _____________________.
Place: Date:
PREFACE
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I know that training is for the development and enhancement of the knowledge in particular field. It can never be possible to make a mark in todays competitive era only with theoretical knowledge when industries are developing at global level, practical knowledge of administration and management of business is very important. Hence, practical study is of great importance to M.B.A. student.
With a view to expand the boundaries of thinking, I have undergone training at RAJKOT DISTRICT CO-OPERATIVE BANK LTD. I have made a deliberate to collect the required information and fulfill training objective.
ACKNOWLEDGEMENT
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To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way.
I find words inadequate to express my gratitude to the companys Deputy Branch Manager Mr. R.V.PANARA for providing me an opportunity to carry out my training as such a well reputed and leading banking company Shri Rajkot District Co-operative Bank Ltd.
At the very outset of the training I deem it is my pious duty to express my sincere thanks also to companys Branch Manager Mr. B.M.Sangani for his continuous guidance and supervision and support during the training period.
I would like to thank PROF.______________________who has guided me for my project work and provided encouragement through out my training period.
DATE: PLACE:
SIGNATURE (student)
EXECUTIVE SUMMARY
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Experience is the best teacher. This saying has played a said the industry visit as a part of the curriculum of the MBA program. This visit & consequent report on the student took practically visit the industry & study real Business area. This practical training in the MBA program develops the feeling of awareness among the students of management studies. Along with theoretical knowledge this training has imparted the complete education of practical world, which is the value addition in our course. To fulfill these objectives an industrial visit & project report have becomes an important part of the MBA program. This is to have a practical out look of the managerial aspect & witness the function of management in real business. I have tried my best to meet the requirement by producing report that is highly illustrative and clearly explaining concepts that I have learnt during the training period. I have also paid enough attention to revising and refining the discussion of major concepts customer satisfaction in RDCBank. This project really has enhanced my practical knowledge of the different management areas, which will be very much fruitful for me in future.
DATE:
SIGNATURE (student)
PLACE:
CONTENT
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Sr. No. 1
4 5 6 7 8 9 10
Topic Introduction of Banking Early history of banking The origin of word Bank Type of Bank Introduction of Rajkot Dist. Co. Op. Bank Highlights Board of Director Accomplishment of RDBC Bank Important designation Organization Chart SWOT Analysis Main fund inflow Fund Outflow Credit management Time wise bifurcation of advances Security wise bifurcation of advances Process of Credit Research Methodology Problem statement and objective Sample design Research design Data Interpretation &Analysis Findings Suggestion Conclusion Bibliography Abbreviation Questionnaire
Page No. 09 11 12 16 19 21 22 23 24 25 26 28 31 31 32 40 41 42 43 76 78 79 80 81 82
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As early as 2000 B.C., the Babylonians has developed a banking system. There is evidence to show the temples of Babylon were used as banks. After a period of time, there was a spread of irreligion, which soon destroyed the public sense of security in depositing money and valuable in temples. The priests were longer acting as financial agents. The Romans did minute regulations, as to conduct private banking and to create confidence in it. Loan banks were also common in Rome. From these the poor citizens received loans without paying interest, against security of land for 3 or 4 years.
During the early periods, although private individuals mostly did the banking business, many countries established public banks either for the purpose of facilitating commerce or to serve the government.
However, upon the revival of civilization, growing necessity forced the issued in the middle of the 12th century and banks were established at Venice and Genoa. The Bank of Venice established in 1157 is supposed to be the most ancient bank. Originally, it was not a bank in the modern sense, during simply an office for the transfer of the public debt.
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Again the origin of modern banking may be traced to the money dealers in Florence, who received money on deposit, and were lenders of money in the 14th century and also in 1349, the business of banking was carried on by drapers of Barcelona.
In India, as early as the Vedic Period, banking, in most crude from existed. The books of Manu contain references regarding deposits, pledges, policy of loans, and rate of interest. True, the banking in those days largely mint money lending and they did not know the complicated mechanism of modern banking.
This is true not only in the case of India but also of other countries. Although, the business of banking is as old as authentic history, banking institutions have since than changed in character and content very much. They have developed from a few simple operation involving the satisfaction of a few individual wants to the complicated mechanism of modern banking, involving the satisfaction of capital slowly seeking employment and thus providing the very life blood of commerce.
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The word Bank itself derived from the word bancus or banque that is a French. There were others of the opinion that the word Bank is originally derived from the German word back meaning joint for which was Italianised into banco.
STATUS WISE BIFURCATION OF BANKS Scheduled Banks. Non-Scheduled Banks. Scheduled Bank
In first schedule, Government of India notifies the Primary Banks, which are licensed and whose demand and time liability are not less than 50 crores in 1987. Government of India notifies the Primary banks, which are licensed and whose demand and time liability are not less than 100 crores can only qualify to be included in the second schedule since 1993. A bank becomes scheduled when it fulfils the followings: A grade rating from RBI Demand and Time Liability over 100 Crores Satisfy the RBI guidelines related to CRR and SLR As per the norms Priority Sector wise lending Benefits of Being a Scheduled co-operative are described below: RBI would provide Rediscounting facility at nominal rate. RBI gives remittance facility at par. The demerit of being a scheduled co-operative bank is that the bank will not get 0.5% subsidy from RBI.
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The conferment of scheduled status on the banks has certain advantages like refinance facility, directly industrial finance from Reserve Bank of India, avail of Reserve Bank of India Remittance facility scheme, accept deposits from local bodies, quasi-government organization, religious, and charitable institutions, guarantees and cheques issued by Banks are accepted by Government Departments. At the same time, it casts greater responsibility on the banks in the maintenance of books of accounts and submission of returns.
Non-Scheduled Bank The banks, which are not applicable as per the criteria of Scheduled Banks, are called as a Nonscheduled Banks. These are very small banks.
TYPES OF BANKS
Reserve Bank of India Nationalize Bank State Bank Group Co-operative Bank Private Bank Foreign Bank
RESERVE BANK OF INDIA The Hilton-young commission, appointed in 1926 has recommended the necessity of centrally empowered institution to have effective control over currency and financial transaction in the
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country. Accordingly, the Government had then passed Reserve Bank of India Act, 1934 and established the Reserve Bank of India with effect from 1st April 1935. The principal aim behind this was to organize proper control over the currency management in the interest of country benefits and to maintain financial stability. With this, the RBI mainly looks after the following important functions: To keep effective control over creation of credits and currency supply To control the Banking transactions of Central and State Governments To act as Central administered Authority of all other Banks in the Country. To organize control over Foreign Currency Transaction To assist for improvement in financial aspects of the country
Nationalize Banks
The Banking Company Act establishes it in July 1969 by nationalization of 14 major banks of India. The sent percent ownership of the bank is of government of India.
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Foreign Banks
Foreign Bank means multi-countries bank. In case of India Foreign Banks are such Banks, which open its branch office in India and their head office is outside of India.
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Co-operative Banks
State Co-operative Banks State Co-operative Bank means the principal Co-operative society in the state. The primary objective of which is the financing other co-operative societies in the state.
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RDCB - The Small Mans Big Bank SHRI RAJKOT DISTRICT CO-OPERATIVE BANK LTD. RAJKOT HIGHLIGHT (As on 31/03/2010) Bank was registered in1959 and has commenced working in 1960. Bank is holding business license No. RPCD AHM 5 C DT 14/9/1994. Bank having 131 branches in the district. Bank having 67 its own Branch building including head office. 72 branches having its own Safe Deposit Lockers facilities (including H.O.) Bank having 1000+ employees as on DT. 31/03/2010 All 127 Branches + Head office are fully computerized. Last 32 years bank is obtaining Audit class A. The total deposit Rs.889.53 crores, which consist 61.67% low cost deposit. Bank having share capital of Rs.30.71 Crores, reserve fund and other fund Rs.140.90 crores. Total investment is Rs.471.03 crores (with building furniture& computer). Bank has obtained loans of 317.99 crores. Total advances o/s are Rs.731/-crores. Bank is earning profit since its beginning .As on 31st march, 2010 after enough provisioning the net profit was of Rs.13.50 crores. Bank is paying maximum dividend according to provision of the act, since last 15 years.
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Capital risk adequacy ratio s on 31-03-2010 is 11.72%. Since last 30 year bank is maintaining first rank in Gujarat state for the recovery performance. as on 30th June, 2010 recovery was 99.90%. Rate of interest on deposit are between 5% to 9.00 %. As on year ending 2010 there is non-performance Assets were Rs.18.16 crores thus gross NPA 2.48% and net NPA is 0.39% of total advances. As per prudential norm bank has made provision of Rs.28.99 Crores against the requirement Rs. 24.38 Crores for NPA principal and interest. Bank has introduced a group P.A. insurance policy to cover the risk of Rs.1.50 lakhs for regular loanee member of the society. Bank has paid Rs.158 lakhs out of total premium of Rs.219 lakhs. Bank has started to provide the medical benefit scheme for PACS member from Dt.22/6/04 and end of this year total paid RS.24, 87,400/- to 458 kidney, stone, cancer, brain hamrage, paralysis, heard attack patient as social obligation of bank. Bank always doing preplanning for better recovery. Bank is arrange regular meeting at taluka level place for the proper planning, in the presence of branch manager, inspector, zonal officer Dy.manager, manager, local director and secretaries of the society. Rajkot district bifurcated in five zone headed with DY. Manager zonal. Every possible effort are mad for better and in the time 100% recovery Bank has received five time in a raw the best performance award for the better performance in the all aspect of the working at the state level along with the shield, certificate of merits and cash prize from NABARD . As per NABARD and G.O.I. guidelines bank has issued 1.77 Lakhs Kisan credit card.
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Bank is first in India for launching Smart Kisan Credit Card from year 2004-05 as a addition facility to K.C.C. holder. Total priority sector loan outstanding of Rs.603.06 Crores as on 31/3/10 Bank has issued 1,276-swarojgar credit card under NABARDS Scheme. There are 1,053 SHGs & SB A/c with bank branches. and bank has sanctioned loan of Rs. 0.53 Crores for 166 SHGs. Bank is awarded for S.H.G. linkages programme for Two years. This bank is first to launch mahalaxami self help credit card scheme for the members of self help group with the motto to getting loan smoothly from the bank.
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Shri Maganbhai Ghoniya(Director Shri) Shri Dayabhai Patel(Director Shri) Shri Arvindbhai Tagadiya(Director Shri) Shri Chhaganbhai Sojitra(Director Shri) Shri Gordhanbhai Ghameliya(Director Shri) Shri Dineshbhai Bhuva(Director Shri) Shri Hardevbhai Jadeja(Director Shri) Shri Lalitbhai Radadiya(Director Shri) Shri Jerambhai Patel(Director Shri) Shri Pravinbhai Raiyni (Director Shri) Shri Mahamad Pirjada(Director Shri) Shri Harjibhai Ajani(Director Shri) Shri yagneshbhai Joshi(Director Shri) Shri Dr.balubhai Aradva(Director Shri) Shri Nanubhai v.vaghani(Director Shri) Shri Harichandrasinh Jadeja(Director Shri) Shri Mansukhbhai Bhut(Director Shri) Shri Hadabhai Radravadiya(Director Shri) Shri B.C. Sakhiya(Director Shri) Shri C.N.Tarapara(General manager )
COSIDERABLE POINT
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o During last ten year bank has raised deposit Rs. 515 corers to Rs. 1455 Corers. o Bank having Rs. 10.1 Crore fund for shareholder, which has reached upto Rs.30.71 Crore within 10 years time span. o Bank have Rs. 50.81 Crore reserve which has reached Rs.140.9 Crore. By doing this bank makes very Strong financial condition. o This bank has got Best performance award and prize last five year by prime minister and finance minister. o First bank in India, which gives credit at 5.5% on KCC and after paying tax liability of Rs.335 lacs although net, profit Rs.775 lacs. o Bank has also got Decade award and prize by state co-operative bank and by doing 99.90% Recovery bank has got first position in the state it maintains last 13 year. This is the first bank in agriculture development bank in state. o Bank has given KCC and smart card facility for all farmers. o All farmers and employees got shield of personal accident assurance policy amount of Rs. 1,50,000. o The group member of linkage self help group can get easily credit so that bank has start plan of Mahalaxmi Self Help Credit Card o Bank also helpful in different disease likes cancer, heart attack, brain hemorrhage, by fulfill all terms and condition. o Bank has commercial building located in a pose area in Rajkot. any KCC holder can stay in guest house by paying Rs.10.
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o Locker facility available for 24 hours and 365 days, you can get loan of rs.100000 against gold ornament from 10 am to 10 p.m o Enhancing non-banking facility by tied up with ING VYASYA and IFFCO TOKIO GENERAL INSURANCE CO. for getting personal life insurance and Home insurance o All branches have been fully computerized. o According to RBI, bank has net NPA of 0.39 % only.
ACCOMPLISHMENT OF RDCBANK
Continuously get audit class A still to 31 year For the last 13 years, 15% dividend distribute according to maximum limit of regulation. Continuously get best performance award still to last five year. Decade award from apex bank (state co-operative bank) for best recovery. NABARD gives title of pioneer Bank Agriculture affiliate credit gave very liberal and very quick and 100% crop credit by kissan credit card. Among Banks total credit 84% for priority sector 41% for small farmers and financial backward class.
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IMPORTANT DESIGNATION
Chairman Shri:
General Manager:
Managing director:
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General Manager
Administration
Finance
Accounts
Personnel
Loans
Depu.admion
Depu.finance
Depu.account
Depu.pernel
Depu.pernel
Clerk
Clerk
Clerk
Clerk
Clerk
Interpretation:
Organization chart of RDCBank clearly shows that it is fully systematic as well as departmental. The specify works has been performed according line organization. Here we can see that the flow of authority moves up to down and responsibility moves down to up. So the organization operate by different department
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SWOT ANALYSIS
Strengths Quality Based service Reliable Consumers Loyal Employees Highly Trained Employees High Commercial Building locate in reputed area Powerful management Employees always ready to carry challenges
Weaknesses Weak Updating of the Web site NIL presence outside Gujarat.
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Deposits
It is sum of current deposits, fixed deposits, saving deposits, special saving deposits, NRI deposits, inoperative deposits, etc. It is the main Cash Inflow for any institution.
Borrowings
The borrowed funds consisting of borrowings from other banks (as per some writer deposits of various types is also part of borrowed funds), debentures offered to public, etc.
Others
Increase in current liabilities, reduction in debtors, fund from operations like net income, depreciation, and reserves, less payment to creditors, reduction in advances, reduction in inventories, reduction in cash, sold marketable securities, etc.
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and time liability amount in the security approved by reserve bank of India. These securities are converted into cash and therefore they are termed as liquid assets and 25% amount termed as liquid ratio. The reserve bank of India is empowered to raise this liquidity ratio from 25% to 40%. It is maintained average fortnight and reported to RBI.
Loanable Fund
Credit deposit ratio is not more than 70%. Loanable funds means amount of money, which is applicable for lending. Three main factors own fund, deposits, and borrowings decide it. Advances can never be more than loanable fund.
Others
Purchase of fixed assets, purchase of marketable securities, addition to advances, addition to inventories, payment to creditors, payment of dividend, etc...
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MEANING OF CREDIT
The word credit is actually derived from the Latin word Credere. Credere means to have trust or faith. Thus credit is directly related with trust. That is why State Ford stated that Credit is nothing more than that of trust. By this we can say that credit is a tool that is resulted by the complete mutual trust/faith. Credit creation implies a situation when a bank may receive interest simply by permitting customer to overdraw their accounts or by purchasing securities and paying for them its own cheque or bank may pay amount to borrower or directly to seller of goods whom against borrower get amount.
CREDIT MANAGEMENT
Credit management means the total process of lending start from inquiry from potential borrower to recover the lending amount from borrower. Whenever my study is concern, credit management in sense of banking sector is the set of activities like Except application, loan appraisal, Shakh posting, monitoring, recovery, NPA management, etc.
FORMS OF CREDIT/ADVANCES
Loan/term loan
In case of a loan a specified amount is sanctioned by the banker to the customer, who may either draw the amount in case immediately or may like the amount to be credited to his current account. But legally it is presumed that he has withdrawn the amount from the bank and
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deposited it in his current account. He is required to pay interest on the full amount from the date of sanction. A loan may be repayable in installments or in lump sum.
Cash credit
Cash credit is the main method of lending in India and accounts for above 70% of total bank credit. Under the system, the banker specifies the limit, called the cash credit limit for each customer, up to which the customer is permitted to borrower against the security of tangible assets or guarantees. The customer withdraws from his cash credit account as and when requires the funds and deposits any amount of money, which he finds surplus with him on any day. The cash credit amount is thus an active and running account to which deposits and withdrawals may be affected frequently. The customer is required to provide tangible assets as security to cover the amount borrowed from the banker. The borrower is charged interest on the actual amount utilized by borrower and for the period actually utilized only.
Overdrafts
When a current amount holder is permitted by the banker to draw more than what stands to his credit, such an advance is called an overdraft. The banker may take some collateral security or may grant such advance on the personal security of the borrower. The customer is permitted to withdraw the amount as and when he needs it and to repay it by means of deposit in his account as and when it is feasible for him. Interest is charged on the exact amount overdrawn by the customer and for the period of its actual utilization
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Bills Purchase
The Banker credits customers account with the amount of the bill after deduction his charges. As the demand bills are repayable on demand and there is no maturity, the banker is entitled to demand their payment immediately on presentation before of drawee. Their practice adopted in the case of demand bills, is known as purchase of the bills.
Bills Discount
In case of bills discounting, a bank credits the amount of the bill to the drawers account before the realization of the bill and thus lends its funds to him after deduction his charges. The bills purchased and bills discounted by a bank are, therefore, shown in its balance sheet as part of loans and advances. In case of a bill maturing after a period of time maximum for 180 days in RDCB, the banker retains the bill for that period and realizes the amount of bill from the drawee on its due date. This practice is called discounting of the bill.
Bank Guarantee
It is a contract to perform the promise or discharge the liability of a third person in case of his default. In case of guarantee, Bank is taking responsibility to pay the amount to seller if buyer will not pay amount in time.
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TIME WISE BIFURCATION OF ADVANCES Short-term Finance : Up to 26 months : 26 to 66 months : Above 66 months
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Shakh report
This is one of the strangest facility of RDCB compare with other co-operative banks in Rajkot district because of its computerization. This facility provides bank to total kundali of the borrower related to dealing with bank not only as a borrower but also as partner, as a director also as a guarantor and same detail of the guarantor also and also about all the types of loans, which are already paid up, which are overdue, which are running and also about past performance of particular.
Advocate report
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Bank through its legal departments staff in two matters prepares advocate report mostly, which are given below: In case of land and building loan Before equitable of immovable property as a security When the bank prepares advocate report, bank charges some amount from borrower.
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Purpose of advance Requirement of the borrower and its reasonableness Adequacy of the margin Provision of security Period of payment And prepare the appraisal report for committee approval
Inspection report
Before presenting appraisal report against the committee, bank sends his field officer/inspection officer to on site inspection. The situation which created by borrower by providing information of his business to bank is it fact or not? After the inspection report, this application is ready for putting against the loan committee of the bank. Inspection varies according to the various loans. For e.g. In case of cash credit he personally visits the business site and verifies the original books of accounts with that of submitted books of accounts. He verifies the real stock with the stock mentioned if any difference is found it is clearly mentioned in the report. In case of housing loan inspection officer visits the place and check whether the building is really in existence or not, whether the construction is as per the statical figure provided to him and plan is as per sanctioned by the municipal corporation.
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Once the application is duly processed, it is put for sanction to the appropriate authority. Here appropriate authority means various loan committees, standing committee and board of directors. Loan manager is a sanctioning authority only in case of review of cash credit facility. Types of committee and its lending powers are given below: If appropriate authority gives sanction, along with the sanction of advance the bank specifies the terms and conditions applicable to the advance. These usually cover the followings: The amount of loan or maximum limit of the advances The nature of the advances The period for which advance is valid The rate of interest applicable to the advance The primary security to be charged The insurance of the security The detail of collateral security, if any, to be provided The margin to be maintain Other restrictions or obligations on the part of the borrower
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Name Of Committee 1.Board of directors 1. Standing committee 2. Reconsideration committee 3. Loan committee (Rs.500001 to 1000000) 4. Loan committee (Rs.300001 to 500000) 5. Loan sub-committee/1 (Rs.150001 to 300000) 6. Loan sub-committee/2 (Rs.75001 to 150000) 7. Loan sub-committee/3 (Up to Rs.75000) 8. Loan sub-committee/4 (Up to Rs.5,000) 9. Committee for loan against immovable property/1 (Rs.2,50,001 to 5,00,000) 10. Committee for loan against immovable property/2 (Rs.1,50,001 to 2,50,000) 11. Committee for loan against immovable property/3 (Rs.25,001 to 1,50,000) 12. Committee for loan against immovable property/4 (Up to Rs.25,000) 13. Recovery committee/1 (more than Rs.3,00,000) 14. Recovery committee/2 (Rs.1,50001 to 3,00,000) 15. Recovery committee/3 (Up to Rs.1,50,000)
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It is common banking practice to incorporate important terms and conditions on a stamped security document to be executed by the borrower. Rate of stamp duties are given follows: Demand promissory note Letter of guarantee *Agreement letter (Letter of lien) Letter of pledge Letter of continuity Agreement letter for Cash credit/Overdraft Up to 5,00,000 : Rs. 110 Above 5,00,000 Maximum limit of stamp duty is Rs. 2,00,000 : Rs. 2/thousand : Rs. 1 : Rs. 60 Up to 5,00,000 : Rs. 50 Above 5,00,000 : Rs. 2/thousand : Rs. 50 : Rs. 50
*Agreement letter is in case of vehicle loan, security loan, bills purchase, bills discounting, guarantee, education loan, etc.
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Equitable mortgage on non-judicial stamp paper Amount of sanctioned loan loan of non-judicial stamp paper for equitable mortgage
Make/sign document
This application is now in the document department, document department take signature of loanee and guarantors in specimen card and also on the sanction letter to seat beside and verify all the documents. Types of documents are discussed in each type of loan separately. This process is last for borrower, after this loan is sanctioned. No formality is remaining at the borrower side.
Open account
Now loan is sanctioned, all formalities are completed. So bank is giving your amount of loan either by credited in your account or pay the amount to the party, whose quotation is provided by borrower to bank. Bank opens your account with himself to get the actual transaction between bank and borrower.
Insurance posting
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It is must for loanee to insure the property or equipment, which is hypothecated with the bank against loan as a security. This policy is assigned in favor of bank, which is also required. In case of immovable property or new purchase of machinery, equipment, etc. insurance of same amount and in case of old machinery, goods stock, etc. twice of the price insurance is needed. In case of education loan, the life insurance of student is required. Shakh department is posting it in borrowers account.
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PROBLEM STATEMENT
As there are hundreds of customers of R.D.C.BANK.LTD. So it becomes compulsory to know their level of satisfaction.
And company can also have idea about the improvement, which is to be brought in companys service.
RESEARCH OBJECTIVE
satisfied.
To check out the customers satisfaction level about the account they are using. To improve the Banking as well as management queries where the customer are not
To find out the loopholes where the bank is lacking behind in financial aspects.
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SAMPLING DESIGN
Sampling design is one of the most important aspects where the design must be appropriate in order to have the desired result. Sampling design includes various aspect and they are as follows:
RAJKOT DISTRICT
Methods:
The method used in the research (survey) is of convenience type as we are unaware about the results. It can be either of the side. It is under area of Rajkot under which we have to conduct the research.
The research is based on convenient sampling. In which we made strata according to the customers and Account and then are selected according to my convenience.
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RESEARCH DESIGN
Research Data Source Research Method Research Technique Type of Questionnaire Type of Questions No of Questions Place
: : : : :
Data Collection
Primary Data : First hand information will be used thorough Questionnaire survey which
are considered under primary data.
Secondary Data : As for the pictures and the graph it had been under the Banking related
magazines and while for the financial information it was founded from the Annual Report 20092010.
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Chapter 4 Data Analysis and Interpretation TO MEASURE SATISFACTION LEVEL OF THE RDCBANK CUSTOMER .
Demographic Profile:
Group of Age less than 30 year 30-35 year 35-45year more than 45 year Total
Age:
Respondents 32 20 30 18 100
Group Of Age
Findings:- From the survey we have found out that the proportion of less the 30 year is 32%and 30%of 35-45 Age group people along with RDCBank
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Recommendation: here we can see the proportion of less than 30 year is high compare to all so, bank have introduce the special scheme for who lying under 30 year because it is help full to attract mid adult.
Gender:
Gender
32 Male Female 68
FINDINGS : here we can see that proportion of female is very less compare to male so, male accountholder significantly deal with bank.
RECOMANDATION: figure of male and female very disturb it is not shows balance between them so; banks have introduced some special scheme for women, which is attractive for women.
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Occupation:
Respondents 18 12 22 24 24
FINDINGS: in this question 24 respondents employed which is first highest and than second highest business people and also 24 respondents are lying in miscellaneous.
RECOMANDATION: Student, Porfession, Business, Employed&Other so in other 24 respondents are including among them most of the farmer, shepherd& small worker who are taking avail of Smart Kissan Credit Card, Farmers Club And Medium term agriculture and those all are occupied in ruler area so bank have lives day to day content and inform to them by
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regularly corresponding the new introduce scheme. And also regularly doing arrangement of seminar as well meeting, which is helpful to remove ambiguity.
Monthly Income:
Monthly income less than7500 7501-12500 12501-20000 More than 20000 Responses 15 48 28 09
Monthly Income
60 50 income 40 30 20 10 0 less 7501-12500 than7500 1250120000 More than 20000 15 9 28 48 less than7500 7501-12500 12501-20000 More than 20000
Income Margine
FINDINGS: the chart of monthly income clearly shows that most of the customer are including in 7501-12500 slab. It is almost near by 50% follows by 12501-20000.
RECOMANDATION: Here we can suggest that most of the customer of bank is comes from middle class.so, bank should always target the middle class. By introducing attractive scheme, subsidy at lower cost, credit at low rate. By doing these activity it is directly helpful to expanding the market share.
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42 25 12 21
Interpretation: as we have seen that the Graphical representation clearly shows that 12
customers with bank till to less than 3 year,42 customer with bank till to less than 6 year,25 customer with bank till to less than 9 year and 21 customers with bank more than 9 year.
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(2) View according to preference after considering Overall performance under given bank.
Name of bank ICICI HDFC RDCB AXIS BANK KOTAK MAHINDRA NAGARIK SAHAKARI BANK
Responses 10 15 41 15 6 13
Miscellenious banks
45 40 35 30 25 20 15 10 5 0 Response 41
MAHINDRA
Name of bank
Interpretation:
Consideration of the allover performance of give bank .we can see that response of the existence customer clearly specify that people along with bank satisfied through the performance of the bank because 41 respondents gave positive response toward RDCBank.
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KOTAK
NAGARIK
RDCB
HDFC
ICICI
AXIS
SAHAKARI BANK
10
15
15
13
Question: Dose there any relation between different account which introduce by bank and
Level of satisfaction?
NULL HYPOTHYSIS:
H 0 = There is no relation between scheme and satisfaction level H1 =There is direct relation between scheme and satisfaction level
Observed Data:
Scheme Current Acco. Saving Acco. Fixed Deposit Total Low 6 14 5 25 Level of Satisfaction Medium 7 24 6 37 High 5 23 10 38 Total 18 61 21 100
Scheme Current Acco. Saving Acco. Fixed Deposit Total Low 4.5 15.25 5.25 25
(6 4.2) 2 (7 6.66) 2 (5 6.84) 2 (14 15.25) 2 ( 24 22.57) 2 ( 23 23.18) 2 = + + + + + + 4.2 6.66 6.84 15.25 22.57 23.18 (5 5.25) 2 (6 7.77) 2 (10 7.98) 2 + + 5.25 7.77 7.98
=4
X 0.05 orX
2 2 t
= 2.132
Interpretation: here we can interpret that no relation between the schemes introduce by the
bank and level of satisfaction because it prove by the testing so, null hypothesis reject.
51.
ANOVA ANALYSIS
Which of the following type of Account do you use?
Scheme Current Acco. Saving Acco. Fixed Deposit Level of Satisfaction Low 6 14 5 Medium 7 24 6 High 5 23 10
X
j i
ij 2
= 62 + 7 2 + + 6 2 + 10 2
= 36+49+25+-----------------36+100
= 1572 j 2 = 252 + 37 2 + 382 = 3438 i = 182 + 612 + 212
2
= 4486
52.
Corrector Factor =
t2 n
100 2 9
= 1111.11
ij 2
2 t j i n = 1572-1111.11 = 460.88 i2 t 2 SSR(Sum of Squares Between Row)= n h 3438 1111.11 = 3 = 1146-1111.11 = 34.89 j2 t 2 SSC(Sum of Squares between Columns)= n k 4486 = 1111.11 3 = 384.2233 SSE(Sum of Squares between Residuals)= SST-SSR-SSC = 460.68-34.89-384.2233 = 41.5667
Sources SSR
Variance F ( 2, 4) = 17.445
SSC
384.2233
SSE SST
41.5667 460.88
53.
F ( 2, 4 )= 1.6790 Table value, 5% significance level and (2,4) degree of freedom F=6.9443 so table value is more than calculate value so we conclude that the account scheme of satisfaction do not differ significantly.
F ( 2, 4)= 18.4905 Table value, 5% significance level and (2,4) degree of freedom F=6.9443 so
table value is less than calculated values so we conclude that satisfaction level of account scheme do not differ significantly.
54.
Service Current&saving Deposit Recurring Deposit Term Deposit Demand Draft Facility Out Station Cheque Facility Letter of Credit
Responses 38 14 19 19 5 5
D ifferent Service
5 5
R curring D e eposit T erm D eposit Dm e and D Facility raft O Station C ut heque Facility
19 14
Lette of C r redit
Interpretation: Among the existence customer most of them are regularly use service
current & saving Deposit service in terms of percentage 38% and it follow by Demand Draft Facility & Term Deposit.
55.
Reason for using service Bank Charges Rate of Interest Convenient Availability
response 19 18 35 28
Interpretation: reason for using the service most appropriate reason behind convenient
than Availability than bank charges and rate of interest so we can says that people are use the banking service according to convenient so bank charge, rate of interest and availability which is least concern.
56.
N 24 o,
Y , 76 es
Interpretation: Here we can interpret that among 100 customer 76 percent are invest money
in fixed deposit. So fixed deposit account is the best option to invest the money. we also interpret that people where satisfied with rate for fixed deposit.
57.
15-45 days rate 5.00% 46-90 days rate 5.50% 91-179 days rate 7.00% 180-1year rate 7.50% Between 1 to 3 year 9.00% 3-5 year rate 9.50% 5-10 year rate 10.10%
Rate of Interest
58.
= 30.2632%
59.
No 35%
yes 65%
Interpretation: Here 65 customers are take benefit of credit facility and 35 people are
refused. most of credit taker are farmer, small worker, and small businessman.
60.
(9) If yes then which kind of facility are you use?(credit facility)
Vehicle loan [18] Bank overdraft [08] Cash Credit [14] Bill of Payment [10] Bank Guarantee [15]
Creditholder
18 8
14
10
15
Vehicle loan
Bank overdraft
Cash Credit
Bill of Payment
Bank Guarantee
Type of Credit
Interpretation: 65 respondent are take avail of credit facility 18 customer take credit for
vehicle loan,15 take bank guarantee,14 cash credit and 8 bank overdraft.
61.
Subsidyholder
44 56
Yes No
62.
(11) If yes than specify which facility of subsidy are take? ( Subsidy)
Type of Subsidy Medium term Agriculture Loan. Annual Credit Plan Self Employment Credit Card Self Help Group-Bank Linkage Programme Farmers Club Smart Kissan Credit Card Subsidy holder 4 10 16 12 4 10
Type of Subsidy
10
4 Plan 10
Annual Credit
12
16
63.
(12) Level of satisfaction according your Bank charges: Opinion about Bank Charges Low Moderate High Level of Satisfaction Low Medium High 5 8 11 6 20 6 8 31 5
Question: Dose there any relation between opinion about bank charges and
Level of satisfaction?
NULL HYPOTHYSIS: H 0 = There is no relation between Bank Charges and satisfaction level H1 =There is direct relation between Bank Charges and satisfaction level
Observed Data:
Opinion about Bank Charges Low Moderate High Total Low 05 08 11 24 Level of Satisfaction Medium 06 20 06 32 High 08 31 05 44 19 59 22 100 Total
Expected Data:
64.
Opinion about Bank Charges Low Moderate High Total Low 4.56 14.16 5.28 24
Level of Satisfaction Medium 6.08 18.88 7.04 32 High 8.36 25.96 9.68 44
Total 19 59 22 100
(5 4.56) 2 (6 6.08) 2 (8 8.36) 2 (8 14.16) 2 (20 18.88) 2 (31 25.96) 2 (11 5.28) 2 (6 7.04) 2 + + + + + + + 4.56 6.08 8.36 14.16 18.88 25.96 5.28 7.04 2 (5 9.68) + 9.68 =
= 0.042456+.001053+0.01550+2.679774+0.066440+0.978489+6.19667+0.1536 =2.2625
2
Xc
= .22 2 65
= (3-1) (3-1)
= 2 2
=4
X 0.05 orX
2 2 t
Interpretation: here we can interpret that bank charges, which is significantly, impact on
satisfaction level because it prove by the testing so, null hypothesis reject. we can also says that when the customer select the bank at that time bank charges consider.
65.
Question: Dose there any relation between Scheme and Level of satisfaction?
NULL HYPOTHYSIS: H 0 = There is no relation between Scheme option and satisfaction level H1 =There is direct relation between Scheme option and satisfaction level
Observed Data:
Scheme Option Inadequate Convenient More Convenient
Low 07 07 05 Level of Satisfaction Medium 06 20 05 Total High 05 35 10 18 62 20
Total
19
31
50
100
Expected Data:
66.
Scheme Option
Low
(7 3.42) 2 (6 5.58) (5 9) 2 (7 11.78) 2 (20 19.22) 2 (35 31) 2 (5 3.8) 2 (5 6.2) = + + + + + + + 3.42 5.58 9 11.78 19.22 31 3.8 6.2 2 (10 10) + 10 = 3.74748+0.0316129+1.7778+1.9396+0.03154+0.1290+0.3789+0.232270 =8.2683
2
Xc
= .28 8 63
=4
X 0.05 orX
2 t
= 2.132
So, Xt 2 X C
Interpretation: here we can interpret that there relation between Scheme opinion and levels
of satisfaction because it proves by the testing so, null hypothesis reject.so, concluded that the scheme opinion gives positive which direct helpful to satisfaction.
67.
Opinion about Availability, service& Response of Employees Excellent Good Moderate Poor
Level of Satisfaction
Low 6 8 5 6
Medium 5 22 6 6
High 9 17 5 5
NULL HYPOTHYSIS:
H0 = The availability, Service & Response of Employees Could not impact on Level of
Satisfaction H1 = The availability, Service & Response of Employees Could impact on Level of Satisfaction
Observed Data:
68.
Expected Data:
Opinion about Availability, service& Response of Employees Excellent Good Moderate Poor Total
06 08 05 06 25 05 22 06 06 39 09 17 05 05 36 20 47 16 17 100 Low Level of Satisfaction Medium High Total
69.
(6 5) 2 (5 7.80) 2 (9 7.20) 2 (8 11.75) 2 ( 22 18.33) 2 (17 16.92) 2 + + + + + 5 7.80 7.20 11.75 18.33 16..92 2 2 2 2 2 (5 4) (6 6.24) (5 5.76) (6 4.25) (6 6.63) (5 6.12) 2 + + + + + + 4 6.24 5.76 4.25 6.63 6.12 = =0.2+0.3590+0.45+1.1968+0.7348+.0004+0.25+0.0092+0.10028+0.7206+0.05986+0.2050 =4.2859
Xc
2
= .2 5 4 89
X 0.05 orX
2 t
=6
= 2.1.943
Interpretation: here we can interpret The availability, Service & Response of Employees
Could impact on Level of Satisfaction. So, we can conclued that availability, service and reply of employees and level of satisfaction direct positive relation.
70.
24
Yes No
76
Interpretation: After tanking 100 sample surveys we can conclude that 76 customer give
positive reply for banking service. So more than 75% customer satisfied and they will continue with
71.
Locker U ser
Y es 30%
No 70%
Interpretation: Here we clearly see that very less customer are uses the locker facilities it is
near by 30 percentages .So bank have necessarily inform to customer for use the facility.
72.
No 20%
Yes 80%
Interpretation: 80Out of 100 give favorable response toward RDCBank After considering
the overall performance, facility, service, and different schemes.so, existing most of customer are satisfied.20% are not satisfied with the bank so those customer may go other bank.
73.
(18) Mention problems faced by you from RDCBank Services: Customer define the problems most them facing the problem of Absence of core banking facility Absence of ATM facility. Absence of E-banking facility It is just available in Rajkot district area. Procedure for cheque clearance is very time taking process.
So, we can conclude that most of customer want to facility of ATM, core banking facility, e banking facility but it is might be not possible because the most of the branches are situated in Rajkot district rural area where not available facility of inter net and it is very costly so, it may burden for the bank which inversely impact on profit.
74.
B a n k S elec tio n
Customer Reply
No
26
Ye s
74
10
20
30
40
50
60
70
80
Re sp o n d e n t Y es No
Interpretation: 74 customers will continue with bank and 26 customers moves to other
bank. Among 26 Customer refused most of them want to join with
bank of Baroda, Punjab National bank, State Bank of India and unit trust bank of India.
75.
Chapter 5 Findings
From the survey I have found out that mid adult people significantly deal with banks According to sex-68% are mail and 22% are female deal with bank. Students, farmers, employed, profession people are the regular customers of the bank. Qualification level of existing customer most of them graduate and higher secondary. The existing customer most of them come from meddle class or laying under 7501 to 12500 proportional approximately 50%.
Most of respondent have using this bank less then six year. The quality of different services meeting the customers requirement nobody was in opinion of filling bed quality this shows that the quality of RDC Bank services is up to the mark.
Customers also satisfied with bank performance after considering overall performance. Most of customers have a saving account with moderate satisfaction. Current and saving deposit, recurring deposit and terms deposit they are regularly use but current and saving deposit most frequently using service.
Bank charges, rate of interest, availability and convenient these are the major causes for using the service but convenient most frequently reply of 35 out of 100.
On the basis of survey I found that 76% are interesting to invest in fixed deposit. 76% customers are fully satisfied in term of service and 24% give negative response. Almost all customers getting their complains properly handed by the company no way in negative opinion or having bad experience.
76.
Chapter 6 Suggestion
When the survey was conducted it was also asked for any suggestion for improvement for RDC Bank models. I have found out some suggestion for the bank through survey. They are as follow.
The bank should focus more on its bank charges strategy for its loyal and regular as well as other customers. Bank charges rate should be competitive and economic.
No doubt most of the customers are happy with the banking services but still some of them of the customers are not satisfied with the banking services. Thus and immediate action is required to find the causes for such event and appropriate action should be taken.
The company should send their sales executive person in personal to meet the customers and take their reviews and make the customers aware about recent development in service and other policy change. In this way they even influence the decision of the customers to reuse the service. This will also provide the company with the specific needs of the customers and so they can make improvement in the service. This will also lead to batter customer relationship and loyalty of the customers.
There is an immediate need of improvement the complaint handling system. System of the bank, regular feedback from the customers, regular conduct the survey from the customers will again help them to take strategic decision.
77.
Chapter 7 Conclusion
After conducting the survey for RDC Bank and staying with this bank for a period of 8 weeks I concluded that it is almost the highly developing bank with great potential. Account depart is operate well but still there is a requirement of skill full staff.
Quality wise its services are well accepted. This is one of the most advantageous and prestigious achievements of RDC Bank.
Through the survey done, I have found that models which are their in the market of RDC Bank are giving best service to with customer and also have good amount of market share in Rajkot district.
If we take out and average most of customers are satisfied with the overall performance of RDC Bank as practical knowledge has got large difference in compare to theoretical here the scenario total different.
I felt that my purpose of training have been solved as I was given well support and guide lines without hesitation from employees and they shows keen interest in my work. That ultimately resulted in to well managed and real research study.
78.
Chapter 8 Bibliography
Sites
www.capitaline.com www.investopedia.com www.wikipedia.com www.themanagementor.com www.planwere.com www.rdcbank.in
Magazines
Business world RBI bulletin
Books
Financial Management I M Pandey Human Resources Management Ahwathappa Marketing Management Kotler & Kelvin Business statistics -- S.P.Gupta&M.P.Gupta
79.
Chapter 09 Abbreviation
K.P.V.- Kissan Vikas Patra K.C.C- Kissan Credit Card. PACS- Primary Agriculture Society NSC.- National Saving Certificates JPA-Janta Personal Accident Policy. SLR-statutory Liquidity Rate.
80.
Chapter 10 Questionnaire TO MEASURE SATISFACTION LEVEL OF THE RDC BANK CUSTOMER IN RAJKOT DISTRICT REGION.
Demographic Profile Name: _______________________________ Age: Less than 30 Year 30-35 Year 36-45 Year More Than 45 Year Male Female Student Profession Business Employed Other If other then mentioned it ___________________
Sex: Occupation:
Qualification: Up to 10th Standard Up to 12th Standard Graduation Post Graduation Monthly Income: Less than 7500 12501 20000
7501 12500
More than20000
81.
82.
(1) Since how long you are using this Bank? 0-3 Year 3-6 Year More than 9 Year
6-9 Year
(2) Give your view according to preference after considering Overall performance under give bank. ICICI HDFC RDCB UTI
(3) Which of the following type of Account do you use? Scheme Current Acco. Saving Acco. Fixed Deposit Level of Satisfaction Low Medium High
83.
Current & Saving Deposits Recurring Deposits Term Deposits Demand draft facility
(5) Reason for using above service: Bank Charges Convenient Rate of Interest Availability
If other then clarify it. ______________________ (6) Are you invest excess money in fixed deposit? Yes No
(7) If yes then in which scheme you have avail of? 15-45 days rate 5.00% 46-90 days rate 5.50% 91-179 days rate 7.00% 180-1year rate 7.50% Between 1 to 3 year 9.00% 3-5 year rate 9.50%
84.
5-10 year rate 10.10% (8) Have you use any kind facility of Credit? Yes No
(9) If yes then which kind of facility are you use? Vehicle loan Bank overdraft Cash Credit Bill of Payment Bank Guarantee Other If other then clarify it .
(11) If yes than specify which facility of subsidy are take? Medium term Agriculture Loan. Annual Credit Plan Self Employment Credit Card
85.
Farmers Club Smart Kissan Credit Card (12) Level of satisfaction according your Bank charges: Opinion about Bank Charges Low Moderate High
High
High
86.
Opinion about Availability, Level of Satisfaction Low Medium service& Response of Employees Excellent Good Moderate Poor
High
(15) Are you satisfied with available service of Banking? Yes [ ] No [ ] (16) Have you used the locker facility? Yes No
87.
88.