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A SUMMER TRAINING PROJECT REPORT ON “CONSUMER’S PERCEPTIONS ON KCC BANK LTD. UNDERTAKEN IN SUBMITTED IN PARTIAL FULLFILLMENT OF REQUIREMENT OF DEGREE IN MASTER OF BUSINESS ADMINSTRATION SESSION – 2009-11 SUBMITTED TO : SUBMITTED BY : 1
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Page 1: 54208596 Project Report

ASUMMER TRAINING PROJECT

REPORTON

“CONSUMER’S PERCEPTIONS ON KCC BANK LTD.”

UNDERTAKEN IN

SUBMITTED IN

PARTIAL FULLFILLMENT OF REQUIREMENT

OF DEGREE IN MASTER

OF BUSINESS ADMINSTRATION

SESSION – 2009-11

SUBMITTED TO : SUBMITTED BY:

Miss Isha khera ABHINAV GUPTA

Lecturer (CT IMS) ROLL NO-90212233149

SECTION-3RD ‘B’

CT INTITUTION OF MANAGEMENT STUDIES

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DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic entitled

“Consumer’s Perception on KCC Bank” in Branch Office KANGRA

I further declare that this project work is based on my original work and no part of this project

has been published or submitted to anybody.

(ABHINAN GUPTA)

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GUIDE CERTIFICATE

This is to certify that ABHINAV GUPTA of M.B.A. 3rd semester bearing university roll number

-90212233173 has completed his summer training project under my guidance.

Project Guide

(Isha Khera)

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ACKNOWLEDGEMENT

I, ABHINAV GUPTA, MBA Student in CT INSTITUTION OF MANAGEMENT

STUDIES, Jalandhar is highly greatful to all those who guided me in completing this project.

First of all, I would like to pay my heartiest thanks to entire family of KCC BANK especially

Mr. Kishan Chand, Branch manager, who provided me such a wonderful opportunity to do

Summer Training and provided their valuable suggestions in understanding the work of Research

Project.

Last but not the least, I would like to thanks all faculties of PTU, Jalandhar, who gave me the

useful tips and suggestions regarding project.

Words can never express the deep sense of gratitude, I feel for KCC BANK employees, who has

been a constant source of inspiration and encouragement for me.

ABHINAV GUPTA

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PREFACE

The present era is undoubtedly a management era. Management is an important function in any

organization. A management is one of the most important fields which are widely used in every

stage of life. The effective management can be achieved only by effective management training

and developing skill to understand the organizational level this project work is a part of the

course of MBA and was done at KCC Consumer Perceptions.

This project is prepared on the basis of awareness of KCC Consumer Perceptions in market and

understanding the requirement of proper guidance to customers.

KCC offers loans for homes-for buying or constructing your home, refinance a Consumer

Perception availed from other institutions or even to extend or improve your existing home. This

project helps me to better understanding of market and financial products and their benefits.

Now I am feeling the great pleasure in delivering this project because of a better skill of handling

the situation and customer understanding.

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INDEX

Sr. No

Chapter No.

Topic Page No.

I Acknowledgement 4

II Preface 5

III Executive summary 7-8

1. Company profile 9-26

2. Review of literature 28-32

3. Need, scope and research methodology 33-36

4. Objective of the study 37-38

5. Data analysis and interpretation 39-49

6. CONCLUSION AND RECOMMENDATION 50-52

Annexure-I (Questionnaire ) 53-56

Annexure-II (Bibliography) 57-58

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EXECUTIVE SUMMARY

I have done my Summer Internship Project from “KCC BANK KANGRA”. During my

Summer Internship Project; I implemented many concepts of marketing in the real life situation.

This project work helped me to apply theoretical knowledge into practical aspects on collected

data which was a worthy experience and during the discussion with company guide I realized

that how important the project report is for the company and me. I also realized how teamwork,

goal orientation and managing interpersonal relationships are integral part of professional life;

therefore this will definitely help me to develop qualities required for executive. In addition, I

understood products of my company and its targeted customers. Also I got information what are

the basic categories of bank products.

The customers which were not aware about the scheme says that KCC bank should improve

their promotional area through different media like T.V. radio. Print media, PR and through IMC

(Integrated Marketing Approach) and most of them votes for IMC. More than 80% of the

customers were satisfied with location and condition of the Bank and more than 50% were

satisfied with the process of disbursement, but maximum of the customers were dissatisfied with

the behavior of the employees, they give suggestions to that the KCC Bank employees should

change and improve their behavior towards their customers, from my findings I found that this

behavior of employees is due to daily routine work load from which they got stressed. I

recommend the bank to change the location of the employees from one branch to another and

give them more and more incentives and also to employ more employees from which work load

gets less and the employees will not feel any pressure and they will not feel any stress. Most of

the customers choose KCC Bank because of simple procedures and more number of branches

and the interest rates regarding their business was suitable according to them. Most of the

customers rank good about KCC bank.

The main purpose of this project work is to analyze the customer relationship management services provided by the KCC bank and to check the level of satisfaction, towards this service,

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among the customers. Consumer perception has become challenging issue for every financial institution as every organization is trying to provide services superior to the competitors.

We did our research at the KCC bank, branch Kangra and the information we received there, along with the secondary research, helped us in strengthening our knowledge base regarding the topic.

A questionnaire was chosen as a data gathering tool because given the time and cost restraints, this proved to be the most effective method. Each of us verbally administered the questionnaire to the customers and recorded the responses.

In general customers give the following suggestions like customized products, more number of counters, improvement in employee behavior, provision of new schemes, use of IT and to improve the promotional area. Most of the customers were satisfied with the overall services of the bank and today’s scenario they recommend to choose KCC bank. 

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COMPANY PROFILE

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The Kangra Cooperative Bank Ltd. started in a very humble way as a small Thrift/Credit Society in March, 1960 by a few friends of Distt. Kangra of Himachal to help out the people of Himachal residing in Delhi to uplift their economic conditions and tide over the financial hardships. Dedication, sincerity and honesty of these members/associates brought rich fruits and this Thrift/Credit Society grew up into a big society within twelve years after its formation and successful running was converted into a primary urban Cooperative Bank in 1972 by RBI and was permitted to carry out banking activities including acceptance of deposits from public (non-members) by opening their Saving, Current and RD A/c’s.  Twenty three years there from in June  1995 it was granted a license to carry out the banking business by the Reserve Bank of India .   Thereafter, it was granted license to open  branches and consequently six more branches were added  in February, May, December 1996, June 1998 ,October 2008 and the last one in July 2009.  In may 1970 it purchased  Paharganj building and reconstructed the same in 1993. In october, 1997 it purchased the present premises at Janakpuri to set up administrative and HO.  Central accounts and Personnel department  are functioning from this building. It has a board meeting room.  One branch also function here.  The main branch along with its service branch, arbitration and recovery department is situated in its own three storied building at Paharganj.  It purchased another Building in April 2008 At Jagatpuri where its one of the existing Branches has already been functioning.

PROMOTER

KCC is India's premier housing finance company and enjoys an impeccable track record in India

as well as in international markets. , the Corporation has maintained a consistent and healthy

growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio

covers well.

over a million dwelling units. KCC has developed significant expertise in retail mortgage loans

to different market segments and also has a large corporate client base for its housing related

credit facilities. With its experience in the financial markets, a strong market reputation, large

shareholder base and unique consumer franchise, KCC was ideally positioned to promote a bank

in the Indian environment.

MISSION

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KCC Bank’s began operations in 1995 with a simple mission to be a World Class Indian Bank.

We realized that only a single-minded focus on product quality and service excellence would

help us get there. Today, the bank is on the way towards that goal. It is extremely gratifying that

its efforts towards providing customer convenience have been appreciated both nationally and

internationally.

The bank’s aim is to build a sound customer franchise across distinct businesses so as to

be the preferred provider of banking services in the niche segments that the bank

operates in and to achieve healthy growth in profitability, consistent with the bank’s risk

appetite.

BUSINESSES

KCC Bank offers a wide range of commercial and transactional banking services and treasury

products to wholesale and retail customers. The bank has three key business segments:

WHOLE SALE BANKING SERVICESThe Bank's target market ranges from large, blue-chip manufacturing companies in the Indian

corporate to small & mid-sized corporate and agri-based businesses. For these customers, the

Bank provides a wide range of commercial and transactional banking services, including

working capital finance, trade services, transactional services, cash management, etc. The bank is

also a leading provider of structured solutions, which combine cash management services with

vendor and distributor finance for facilitating superior supply chain management for its corporate

customers. Based on its superior product delivery / service levels and strong customer

orientation, the Bank has made significant inroads into the banking consortia of a number of

leading Indian corporates including multinationals, companies from the domestic business

houses and prime public sector companies. It is recognised as a leading provider of cash

management and transactional banking solutions to corporate customers, mutual funds, stock

exchange members and banks.

RETAIL BANKING SERVICES 11

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The objective of the Retail Bank is to provide its target market customers a full range of financial

products and banking services, giving the customer a one-stop window for all his/her banking

requirements. The products are backed by world-class service and delivered to the customers

through the growing branch network, as well as through alternative delivery channels like

ATMs, Phone Banking, Net Banking and Mobile Banking.

The KCC Bank Preferred program for high net worth individuals, the KCC Bank Plus and the

Investment Advisory Services programs have been designed keeping in mind needs of customers

who seek distinct financial solutions, information and advice on various investment avenues. The

Bank also has a wide array of retail loan products including Auto Loans, Loans against

marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider

of Depository Participant (DP) services for retail customers, providing customers the facility to

hold their investments in electronic form.

CAPITAL STRUCTURE :

Financial Position as on 31st March 2009

figures in lacsShare Capital 205.50 Funds 50352.90 Deposits 328199.81 Investment 235879.62 Loan 132823.37 Profit 4508.76 Working Capital 397383.83

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the

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financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

GROWTH

KCC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to

accomplish the vision of becoming a world-class Indian bank. Our business philosophy is

based on four core values - Customer Focus, Operational Excellence, Product Leadership

and People. We believe that the ultimate identity and success of our bank will reside in the

exceptional quality of our people and their extraordinary efforts. For this reason, we are

committed to hiring, developing, motivating and retaining the best people in the industry.Our

mission is to be "a World Class Indian Bank", benchmarking ourselves against international

standards and best practices in terms of product offerings, technology, service levels, risk

management and audit & compliance. The objective is to build sound customer franchises across

distinct businesses so as to be a preferred provider of banking services for target retail and

wholesale customer segments, and to achieve a healthy growth in profitability, consistent With

the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical

standards, professional integrity, corporate governance and regulatory compliance.Our business

strategy emphasizes the following :

Increase our market share in India’s expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to

more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk

management.

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Develop innovative products and services that attract our targeted customers and address

inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce our cost of funds.

Focus on high earnings growth with low volatility.

FINANCIAL POSITION

Membership 35442 Clientele other than members 97932Share money 16.57 croresReserve/Other funds 15.34 crores Working Capital 365.63 crores

Deposits  299.27 crores

Advances 191.65 crores 

Net Profit 5.47 crores NPA 0.84%   

CRAR 19.16%  

WORK PLACE TRANSFORMATION

FIVE “S” PART OF KAIZEN

Focus on effective work place organization

believe in

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“Small changes lead to large improvement”

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

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

BENEFIT OF FIVE “S”

It can be started immediately.

Every one has to participate.

Five “S” is an entirely people driven initiatives.

Brings in concept of ownership.

All wastage are made visible.

FIVE ‘S’

S-1 SORT SEIRI

S-2 SYSTEMATIZE SEITON

S-3 SPIC-N-SPAN SEIRO

S-4 STANDARDIZE SEIKETSU

S-5 SUSTAIN SHITSUKE

1. SORT:

It focus on eliminating unnecessary items from the work place. It is excellent way to free up

valuable floor space. It segregate items as per “require and wanted”.

2. SYSTEMATIZE:

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Systematize is focus on efficient and effective Storage method. That means it identify, organize

and arrange retrieval. It largely focus on good labeling and identification practices.

Objective: “A place for everything and everything in its place”.

3. SPIC- n - SPAN:

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.

4. STANDERDIZE:

It focuses on simplification and standardization. It involves standard rules and policies. It

establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility

for doing various jobs and decides on Five S frequency.

5. SUSTAIN:

It focuses on defining a new status and standard of organized work place. Sustain means regular

training to maintain standards developed under S-4. It brings in self- discipline and commitment

towards workplace organization.

HUMAN RESOURCES

The Bank continued to focus on training its employees, both on-the-job as well as through

training programs conducted by internal and external faculty. The Bank has consistently

believed that broader employee ownership of its shares has a positive impact on its performance

and employee motivation. KCC Bank lists ‘people’ as one of its stated core values. The Bank

believes in empowering its employees and constantly takes various measures to achieve this.

Management :-

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Sh.Rasil Singh Mankotia Hon'ble Chairman of the Bank

Senior banking professionals with substantial experience in India and abroad head various

businesses and functions and report to the Managing Director. Given the professional expertise

of the management team and the overall focus on recruiting and retaining the best talent in the

industry, the bank believes that its people are a significant competitive strength.

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

V.P.O. Kale Amb, Tehsil & Distt. Hamirpur ( H.P.)

9418076361(M)

2 Shri Bhagwan Dass, Vice Chairman

VPO Sanghol, Tehsil Jaisinghpur

Distt. Kangra ( H.P.).

9418187839(M)

3 Shri Desh Raj MLA, Director

Village Dah, P.O. Dah Kulara

Tehsil Indora, Distt. Kangra

9816285008 (M)

4 Shri Ajit Paul Mahajan, Director

VPO Dohab, Tehsil Shahpur

9418489605 (M)

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Distt. Kangra ( H.P.)5 Shri Gurcharan Singh Thakur, Director

Village Harmittan P.O. Nehran Pukhar Tehsil Dehra, Distt. Kangra(H.P.)

9816258935 (M)

6 Shri Joginder Singh Guleria, Director

VPO Dehra, Tehsil Dehra

Distt. Kangra ( H.P.)

9418085733 (M)

7 Smt. Prem Lata Thakur Director,VPO Bhutti Colony, Tehsil & Distt.

Kullu (H.P.)

9816002221 (M)

 

8 Shri Karnail Singh Rana, Director

Village Kandi, P.O. Bhugnara

Tehsil Nurpur,Distt. Kangra(H.P.)

9418122286 (M)

9 Shri Jaid Nath Sharma Director

Village Hatli, P.O.Galore,

Tehsil Nadaun, Distt. Hamirpur (H.P.)

9418090816 (M)

10 Shri Ramesh Chand Bhatia, Director

Village Amtrar,P.O. Suneher

Tehsil & Distt. Kangra( H.P.)

9816250324 (M)

11 Shri Ranjeet Singh Rana, DirectorVillage Bhilla,P.O. Bachhwai

Tehsil Palampur, Distt. Kangra( H.P.)

9816340135 (M)

12 Shri Amrit Lal Bhardwaj, Director

Village & P.O. Dehlan, Tehsil &

Distt. Una ( H.P.)

9816031863 (M)

13 Shri Davinder Kumar, Director 9816644040 (M)

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VPO Charara, Tehsil Bangana,

Distt. Una ( H.P.) 14 Shri Karan Singh Pathania, Director

Village Bain Attarian

P.O. Kandrori, Tehsil Indora

Distt. Kangra(H.P.)

9805366394 (M)

15 Shri Rajinder Singh Director

Village Tharass,P.O. Hurla

Tehsil & Distt. Kullu ( H.P.)

9418060287 (M)

TECHNOLOGY

KCC Bank Ltd. operates in a highly automated environment in terms of information technology

and communication systems. All the bank's branches have online connectivity, which enables the

bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also

provided to retail customers through the branch network and Automated Teller Machines

(ATMs). The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. The Bank's business

is supported by scalable and robust systems which ensure that our clients always get the finest

services we offer. The Bank has prioritized its engagement in technology and the internet as one

of its key goals and has already made significant progress in web-enabling its core businesses. In

each of its businesses, the Bank has succeeded in leveraging its market position, expertise and

technology to create a competitive advantage and build market share.

KCC BANk Ltd. business strategy emphasizes the following:

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Increase market share in India’s expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and delivering

high quality customer service. Leverage our technology platform and open scaleable systems to

deliver more products to more customers and to control operating costs. Maintain current high

standards for asset quality through disciplined credit risk management.Develope innovative

products and services that attract the targeted customers and address inefficiencies in the Indian

financial sector. Continue to develop products and services that reduce bank’s cost of funds.

Focus on high earnings growth with low volatility.

2.2 PRODUCT SCOPE:

KCC Bank Ltd. offers a bunch of products and services to meet the every need of the people.

The company cares for both, individuals as well as corporate and small and medium enterprises.

For individuals, the company has a range accounts, investment, and pension scheme, different

types of loans and cards that assist the customers. The customers can choose the suitable one

from a range of products which will suit their life-stage and needs. For organizations the

company has a host of customized solutions that range from funded services, Non-funded

services, Value addition services, Mutual fund etc. These affordable plans apart from providing

long term value to the employees help in enhancing goodwill of the company. The products of

the company are categorized into various sections which are as follows:

Accounts and deposits.

Loans.

Investments and Insurance.

Forex and payment services.

Cards.

Customer center.

PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING SERVICES

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A. Accounts & Deposits

Savings Account

Regular Savings Account

Savings Plus Account

Savings Max Account

Senior Citizens Account

No Frills Account

Institutional Savings Account

Payroll Salary Account

Classic Salary Account

Regular Salary Account

Premium Salary Account

Defence Salary Account

Kid's Advantage Account

Pension Saving Bank Account

Family Savings Account

Kisan No Frills Savings Account

Kisan Club Savings Account

Current Account

Plus Current Account

Trade Current Account

Premium Current Account

Regular Current Account

Apex Current Account

Max Current Account

Reimbursement Current Account

Fixed Deposit

Regular Fixed Deposit

Super Saver Account 21

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Sweep-in Account

Recurring Deposit

Demat Account

Safe Deposit Locker

B. Loans

Personal Loans

Home Loans

Two Wheeler Loans

New Car Loans 33333

Used Car Loans

Overdraft against Car

Express Loans

Loan against Securities

Loan against Property

Commercial Vehicle Finance

Working Capital Finance

Construction Equipment Finance

C. Investments & Insurance

Mutual Funds

Insurance

Bonds

Financial Planning

Knowledge Centre

Equities & Derivatives

Mudra Gold Bar

D. Forex Services

Trade Finance

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Traveler’s Cheques

Foreign Currency Cash

Foreign Currency Drafts

Foreign Currency Cheque Deposits

Foreign Currency Remittances

Forex Plus Card

E. Payment Services

Net Safe

Prepaid Refill

Bill Pay

Direct Pay

Visa Money Transfer

E-Monies Electronic Funds Transfer

Excise & Service Tax Payment

F. Access Your Bank - One View

Insta Alerts

Mobile Banking

ATM

Phone Banking

Branch Network

G. Cards

Silver Credit Card

Gold Credit Card

Woman's Gold Credit Card

Platinum plus Credit Card

Titanium Credit Card

Value plus Credit Card

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Health plus Credit Card

KCC Bank Idea Silver Card

KCC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Clearing Sub-Membership

RTGS – sub membership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

3. NRI BANKING SERVICES

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Payment Services

Net Safe

Bill Pay

Insta Pay

Direct Pay

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Visa Money

Online Donation

Remittances

MILESTONES IN THE HISTORY

KCC Bank began its operations in 1960 with a simple mission to be a "World-class Indian

Bank". They realized that only a single-minded focus on product quality and service excellence

would help us get there. Today, they are proud to say that they are well on our way towards that

goal. It is extremely gratifying that their efforts towards providing customer convenience have

been appreciated both nationally and internationally.

QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy. The bank does this

by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will

aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, the bank offers a range of

innovative products to meet these needs.

SWOT ANALYSIS

STRENGTH

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1. The biggest strength of Bank is Direct Banking channels. As Direct banking channels

saves time and money both as a customer does not need to go to bank for any kind of

transaction except cash withdrawal and cash deposits all other things are done sitting any

where in the world.

2. All services or products of KCC Bank are available through direct banking channels.

3. Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours services.

4. Very easy to access and use.

5. A highly personalized services provided by the bank.

6. KCC’s Direct Banking channels provide real time and accurate information.

WEAKNESS:

1. Unawareness about all Direct Banking Channels due to less advertisement.

2. Other private banks have started direct banking channels it may put some competition

to KCC Bank in near future.

3. Resistance to Change.

4. One should have the knowledge of the operations of the computers and of course the

Internet.

OPPURTUNITIES:

1. Centralized banking makes easy for KCC Bank to provide services to

customers.

2. Huge market of shareholders.

THREATS:

1. Vulnerable to reactive attack by competitors.

2. Attacks of web hackers.

3. Lack of infrastructure in rural areas could constrain investment.

4. High volume / low cost market is intensely competitive.

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Consumer’s Perceptions On KCC Bank

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At KCC Bank, I was assigned with the topic as “Consumers Perceptions on KCC Bank” for my

project work. I joined the company as a Personal Banker. The selection of the topic was to know

how the company generates business through them.

Personal Banker are those sources of a company who have their own relations and personal

contacts among common public that they use to generate business through.

1.2 REASON FOR SELECTION OF THIS TOPIC:

The financial sector is one of the booming and increasing sectors in India. The Personal Banker

are one of the most powerful, efficient and effective channel through which the company sales its

various types of financial products and company takes operational work also. It is really difficult

to convince customers and sell a single product and accomplish operational work.

Satisfied customers are central to optimal performance and financial returns. In many places in

the world, business organizations have been elevating the role of the customer to that of a key

stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with

the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are

finding value in directly measuring and tracking customer satisfaction as an important strategic

success indicator. Evidence is mounting that placing a high priority on customer satisfaction is

critical to improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the actions

required to meet the customers' needs. They can identify their own strengths and weaknesses,

where they stand in comparison to their competitors, chart out path future progress and

improvement. Customer satisfaction measurement helps to promote an increased focus on

customer outcomes and stimulate improvements in the work practices and processes used within

the company.

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When buyers are powerful, the health and strength of the company's relationship with its

customers – its most critical economic asset – is its best predictor of the future. Assets on the

balance sheet – basically assets of production – are good predictors only when buyers are weak.

So it is no wonder that the relationship between those assets and future income is becoming more

and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing

on competition has its place, but with buyer power on the rise, it is more important to pay

attention to the customer.

Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about

what exactly is required and how to go about it. This study is an attempt to review the necessary

requirements, and discuss the steps that need to be taken in order to measure and track customer

satisfaction.

IMPORTANCE TO THE COMPANY:

The ultimate purpose of giving me this topic was to know about the customer’s 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.

LEARNING FROM THE STUDY:The process of bank related transaction, bank related various terms, work environment of KCC

Bank. Different products and services provided by the bank. Customer perception about the

different product and the brand image of the bank. What are the problems faced by customer on

daily basis. How to communicate with the customers. Different techniques of dealing with the

customers. How to convince and convert a customer into a real customer.

The literature available in the field under reference is very limited in nature and scope.The

literature obtained by investigation in the form of reports of the committees. Commissions

working groups established by the Union Government and RBI, the Research studies/articles

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of researchers/ bank officials/ economists and the comments of economic analysts and news is

reviewed here in this section:

Patel and sayed (1980) of the National Institute of Banking Management made a

valuable analysis of performance and prospects of RRBs. They also gave a comparative

picture of performance in deposits, branch expansion and credit deployment of the cooperative

banks, commercial banks and RRBs in a specified area. This was an eye opener for many

researcher engaged in this field of rural credit.

Financial Express, (1986) published a study on RRBs viability, which was conducted by

Agriculture Finance Corporation in 1986 .The study revealed that viability of RRBs was

essentially dependent upon the fund management strategy, margin between resources mobility

and their deployment and on the control exercised on current and future costs with advances. The

proportion of the establishment costs to total cost and expansion of branches were the critical

factors, which affected their viability. The study further concluded that RRBs incurred losses due

to defects in their systems and as such, there was need to rectify these and make them viable. The

main suggestions of the study included improvement in infrastructure facilities and opening of

branches by commercial banks in such areas where RRBs were already in operation. However

the main limitation of the study was that its generalizations were based on the study of the

gramin bank kangra.

RENDIL. (1988) conducted a study on RRBs taking a sample of 48 beneficiaries of

rural artisans in various district of kashmir under J&K Bank. In this study, it was concluded that

the beneficiaries were able to find an increase in their

income because of the finance provided by the bank

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BALMI (1990) in his study on Performance and Growth of Regional Rural Banks in Kangra

found that these banks had benefited the beneficiaries in raising their income, productivity,

employment and use of modern practices and rehabilitate the rural artisans

 SINDHU (1993) carried out a study on the topic “Growth and Performance of RRB in kangra.”

On the basis of the study of all RRB of kangra, it is found that there was an enormous increase in

deposits and outstanding advances. The researcher felt the need to increase the share capital and

to ensure efficient use of distribution channels of finance to beneficiaries.

RASIL SINGH (1996) conducted a study with the objective of analyzing the role of Regional

Rural Banks in Economic Development and revealed that RRBs have been playing a vital role in

the field of rural development. Moreover, RRBs were more efficient in disbursal of loans to the

rural borrowers as compared to the commercial banks. Support from state Governments, local

participation, proper supervision of loans and opening urban branches were some steps, which

should be taken to make RRBs 'further efficient.

SAMEER (2002) Policies of current phase of financial liberalization have had animmediate,

direct, and dramatic effect on rural credit. There has been a contraction in rural banking in

general and in priority sector landing and preferential landing to the poor in particular.

AJIT PAL (2004) has examined the growth and regional distribution of rural banking over the

period 1975-2002. The documents gains made by historical underprivileged region of east,

north-east, and central kangra during the period of social and development banking. These gains

were reversed in the 1990s.

 

 

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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

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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 company’s 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.

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SAMPLE SIZE: My sample size for this project was 50 respondents. Since it was not possible

to cover the whole universe in the available time period, it was necessary for me to take a sample

size of 50 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data

will be based on Survey Method and Field Activity. Primary data collection will base on

personal interview. I have prepared the questionnaire according to the necessity of the data to be

collected.

LIMITATIONS OF THE STUDY

It is said, “nothing is perfect” and there would be few shortcoming in this project also. Sincere

efforts have been made to eliminate discrepancies as far as possible but few would have

remained due to limitation of the study.

Time seemed to be our most limited resource. To conduct a comprehensive research project in a

6 week period is very difficult.

The absence of appropriate funding limited the extent of our study. With additional financial

resources, the scope of our study could have been enlarged, resulting in a more representative

study.

Interview bias could not be avoided as in case of many surveys open ended questions involve the

use of probing techniques that increase interview bias. However, as our study did not use many

open ended questions, the extent of the bias was reduced.

It was not possible to understand thoroughly about the different marketing aspects of the

Financial Consultant within 45 days. As stipend, money was not given it was difficult to

continue the project work. All the work was limited in some limited areas of Kangra so the

findings should not be generalized. The area of research was Kangra and it was too vast an area

to cover within 45 days.

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OBJECTIVES OF THE STUDY

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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 measure the awareness level of people regarding direct banking channels, products

offered by KCC bank.

To study brand image of the bank.

To increase the business of the bank.

SECONDARY OBJECTIVES:

To evaluate the overall satisfaction level of customers regarding services and products

offered by the bank.

To acquire new customer by convincing them and to promote the benefits of those

which are provided by the bank.

To find the different way of convincing customers.

To assess the customer contribution towards the growth of the bank (in terms of

recommendations for changes and improvements).

To determine the need and purpose of a personal banker

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

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Q.1 Your Occupation?

Category No. of Respondents Percentage

Business 14 28

Profession 12 24

Service 18 36

Students 6 12

Business Profession Service Student0%

5%

10%

15%

20%

25%

30%

35%

40%

28%

24%

36%

12%

%age

%age

Interpretation From above response it can be seen that.

• 28% respondents Occupation is Business.

• 24% respondents Occupation is Profession.

• 36% respondents Occupation is Service.

• 12% respondents Occupation is Student.

Q.2 From which bank you have bank account?

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Category No. of Respondents Percentage

KCC Bank 17 34

Others 33 66

34%

66%

%age

KCC BankOther

Interpretation From above response it can be seen that

34% respondents have account with KCC bank.

66% respondents have account with others bank.

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

Category No. of Respondents Percentage

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Efficient service 24 48

Convenient location 14 28

Acquaintance 8 16

Others 4 8

Efficient service Convenient location Acquaintance Other0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

48%

28%

16%

8%

%age

%age

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

Category No. of Respondents Percentage

Yes 12 2441

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No 21 42

Not Idea 17 34

24%

42%

34%

%age

YESNONot Idea

Interpretation From above response it can be seen that

24% respondents want to open an account in KCC bank.

42% respondents does not want to open an account in KCC bank.

34% respondents are already customers of KCC bank.

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

KCC bank?

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Category No. of Respondents Percentage

Lucrative 24 48

Not Lucrative 21 42

No Idea 5 10

LUCRATIVE NOT LUCRATIVE NO IDEA0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

48%

42%

10%

%AGE

%AGE

Interpretation From above response it can be seen that.

48% respondent’s perception about different products is lucrative.

42% respondent’s perception about different products is not lucrative.

10% respondent’s have no idea.

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

net banking services.

Category No. of Respondents Percentage43

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Yes 32 64

No 18 36

64%

36%

%AGE

YESNO

Interpretation From above response it can be seen that

64% respondents are aware of it.

36% respondents are not aware of it.

Q.7. Are you aware of different terms and conditions which are very much

essential to maintain an account at KCC Bank?

Category No. of Respondents Percentage44

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Yes 17 34

No 33 66

YES NO0%

10%

20%

30%

40%

50%

60%

70%

34%

66%%AGE

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

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Category No. of Respondents PercentageYes 34 68

No 11 22

No Idea 5 10

YES NO NO IDEA0%

10%

20%

30%

40%

50%

60%

70%

68%

22%

10%

%AGE

%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.

10% respondents have no idea.

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

services?

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Category No. of Respondents PercentageYes 37 74

No 13 26

74%

26%

Sales

YESNO

Interpretation From above response it can be seen that

74% respondents believe that KCC bank provides innovative products and superior services.

26% respondents believe that KCC bank does not provide innovative products and superior

services.

Q.10. If you get opportunity in future would you like to be attached with

KCC bank ?

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Category No. of Respondents Percentage

Yes 38 76

No 12 24

76%

24%

Sales

YESNO

Interpretation From above response it can be seen that

76% respondents want to attach with KCC bank.

24% respondents doesn’t want to attach with KCC bank.

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CONCLUSIONS AND RECOMENDATION

CONCLUSIONS:

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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.

RECOMMENDATION

Finally some recommendations for the company are as follows:-

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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. 2. Hoarding & Banners.

3. Stalls in Trade Fares 4. Distribution of leaflets containing details information.

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.

LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should not

exceed. Limitations of this project are:

The project was constrained by time limit of two months.

Mindset of people may very depending upon their age, gender, income etc.

Getting appointment from the concern person was very difficult.

People mind set about the survey was obstacles in acquiring complete Respondents were

very busy in their schedule. So it was very time consuming for information & positive

interaction, them to answer all the questions properly.

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ANNEXURES

1. QUESTIONNAIRE

Dear Sir/Madam,

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Name: ………………………………………………………………………..

Address: ……………………………………………………………………..

Contact No :®………………( O)……………… (M)………………………

City: ………...............Pin: ………………….State: ………………………

I am a student of “ct group of institution jalandhar” presently doing a project on“Consumers

Perception on KCC Bank”. I request you to kindly fill the questionnaire below and I

assure you that the data generated shall be kept confidential.

1. Your Age: ____________________

2. Education Qualification.

Undergraduate □

Graduate □

Postgraduate □

3. Marital Status .

Married □

Single □

4. Number Of year’s Are You in Kangra.

Less than five year’s □

More than five year’s □

5. Occupation.

Business □

Profession □

Service □

Student □

(Please mention below the type of business/profession you are in incase of service please

mention your organization name and designation)

6. Your annual household income.

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<than 2 lack □

Between 2 to 5 lack □

Between 5 to 8 lack □

>than 8 lack □

7. From which bank you have account?

KCC □

Others □

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

• Efficient Service □

• Convinient location □

• Acquaintance □

• Others □

9. What is your perception about different products and services offered by KCC Bank?

Lucrative □

Not lucrative □

No idea □

10. Do you want to open an savings account with KCC Bank?

yes □

No □

11. Are you aware of that KCC Bank provide you free phone banking & net banking services.

If you open a new savings account with KCC bank?

yes □

No □

12. Are you aware of different terms and conditions which are very much essential to maintain

an account at KCC Bank?

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Yes □

No □

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

Yes □

No □

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

Yes □

No □

15. If you get opportunity in future would you like to be attached with KCC bank?

Yes □

No □

Date:

Place: Signature

Thank You

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BIBLIOGRAPHY

S.NO AUTHOR’S NAME: NAME OF THE BOOK

1. PHILIP KOTLER Marketing Management

(10th Edition),

2. V.S.RAMASWAMY Marketing Management

(3rd Edition),

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3. C.R.KOTHARY Research Methodology

(2nd Edition),

4. S.P.KASANDE Research methodology

(3rd Edition),

NEWS PAPERS: Times of India

Financial Express

WEB REFERENCES

http:www.kccb.com/consumer perception_rshn.htm

http:[email protected]/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

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