FUNCTIONING OF SIDBI: AN OPINION SURVEYshodhganga.inflibnet.ac.in/bitstream/10603/54468/13... · The second part analysed the impact of SIDBI financing in MSME units. The opinion

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CHAPTER VII

FUNCTIONING OF SIDBI: AN OPINION SURVEY

This chapter throws light on the opinion of entrepreneurs regarding

functioning of the bank. The study is based upon the primary data collected through

filling up of a questionnaire from entrepreneurs financed by the SIDBI. This chapter

has been divided into two parts. The first part provides the general profile of the

entrepreneurs assisted by the bank. The second part seeks to examine the perception

of entrepreneurs regarding functional and operational aspects of SIDBI. Further,

cross-comparison has also been made between socio-economic profiles of the

beneficiaries to examine the point of difference, if it exists.

Part-I

This part highlights the general information of 100 entrepreneurs. The

information is based on the entrepreneur‟s age, educational qualification, experience

in the industry, location of branch, annual turnover, nature of business organisation,

nature of industry and type of organisational set-up.

AGE-WISE DISTRIBUTION

Tables 7.1 and 7.2 show the age-wise/education-wise and age-

wise/experience-wise distribution of respondents respectively. Age-wise distribution

of the respondents have been bifurcated into four categories, viz. „below 40 years‟,

„40 to 50 years‟, „50 to 60 years‟, and „above 60 years‟. Table 7.1 reveals that

majority of respondents (35 per cent) belong to age group „60 years or above‟,

followed by age groups, „40 to 50 years‟, (26 per cent), „50 to 60 years‟, (25 per cent)

and „below 40 years‟ (14 per cent).

Education-wise the respondents have been divided into three categories, viz.

„Under-graduates‟, „Graduates‟, and „Post-graduates‟. The table reveals that 76.9 per

cent of the respondents are „graduates‟, belong to age group 40 to 50 years, followed

by 72.0 per cent respondents belong to age group 50 to 60 years, and 64.3 per cent

respondents belong to age group below 40 years. Further, 35.7 per cent respondents

are „post-graduates‟, belong to age group below 40 years and 25.7 per cent

respondents are „undergraduates‟, belong to age group 60 years or above.

174

Table 7.1

Age-wise/Education-wise Distribution of Sample Units

Age Undergraduates Graduates Post-

Graduates

Total

Below 40 years 0(0.0) 9(64.3) 5(35.7) 14(14.0)

40-50 years 1 (3.8) 20(76.9) 5(19.2) 26(26.0)

50-60 years 3(12.0) 18(72.0) 4(16.0) 25(25.0)

60 years or

above

9(25.7) 20(57.1) 6(17.1) 35(35.0)

Total 13(13.0) 67(67.0) 20(20.0) 100(100)

Note: The figures given in parentheses indicate percentages to total in all tables.

Table 7.2

Age-wise/Experience-wise Distribution of Sample Units

Age Below 10 years 10-20

years

More than 20

years

Total

Below 40 years 2(14.3) 12(85.7) 0(0.0) 14(100)

40-50 years 5(19.2) 12(46.2) 9(34.6) 26(100)

50-60 years 4(16.0) 16(64.0) 5(20.0) 25(100)

60 years or

above

3(8.6) 18(51.4) 14(40.0) 35(100)

Total 14(14.0) 58(58.0) 28(28.0) 100(100)

Experience-wise, the respondents have been divided into three groups, viz.

„below 10 years‟, „10 to 20 years‟, and „more than 20 years‟. Table 5.2 depicts that

majority of the respondents (85.7 per cent) having „10 to 20 years‟ of experience in

the industry belong to age group „below 40 years‟. It is followed by age groups „50 to

60 years‟ (64.0 per cent) and „60 years or above‟ (51.4 per cent), having „10 to 20

years‟ of experience in the industry. Further, 40 per cent of the respondents having

„more than 20 years‟ of experience belong to age group „60 years or above‟.

EDUCATIONAL QUALIFICATION/EXPERIENCE-WISE DISTRIBUTION

Table 7.3 presents education-wise and experience-wise classification of

respondents. Table 5.3 indicates that large proportion of respondents (67.0 per cent)

are „graduates‟, followed by „post-graduates‟, (20.0 per cent) and „under-graduates‟,

175

(13.0 per cent). Experience-wise, the table shows that 69.2 per cent of the respondents

are „undergraduates‟ and 59.7 per cent of the respondents are „graduates‟ having 10 to

20 years of experience in the industry, whereas 45 per cent each of the respondents

having 10 to 20 years and more than 20 years of experience are „post-graduates‟.

Table 7.3

Educational Qualification/Experience-wise Distribution of Sample Units

Age Below 10 years 10-20

years

More than 20

years

Total

Under-graduates 1(7.7) 9(69.2) 3(23.1) 13(100)

Graduates 11(16.4) 40(59.7) 16(23.9) 67(100)

Post-Graduates 2(10.0) 9(45.0) 9(45.0) 20(100)

Total 14(14.0) 58(58.0) 28(28.0) 100(100)

BRANCH-WISE DISTRIBUTION

Branch-wise, the 100 respondents surveyed have been divided into three

categories, viz. „Jalandhar‟, (34) respondents „Ludhiana‟, (33) respondents and

„Chandigarh‟ (33) respondents. Tables 7.4, 7.5 and 7.6 depict the turnover-wise,

nature of industry-wise and organisation set up-wise classification of respondents

among these branches respectively.

Table 7.4

Branch Location/Turnover-wise Distribution of Sample Units

Branch Below Rs 5

crore

Rs 5-15 crore Above Rs 15

crore

Total

Jalandhar 14(41.2) 16(47.1) 4(11.8) 34(100)

Ludhiana 10(30.3) 15(45.5) 8(24.2) 33(100)

Chandigarh 14(42.4) 12(36.4) 7(21.2) 33(100)

Total 38(38.0) 43(43.0) 19(19.0) 100(100)

Turnover-wise, the respondents surveyed have been classified into three

categories, viz. „Below Rs 5 crore‟, „Rs 5 to 15 crore‟ and „Above Rs 15 crore‟. Table

7.4 highlights that a large number of respondents having annual turnover of „Rs 5 to

15 crore‟ belong to Jalandhar branch (47.1 per cent), followed by Ludhiana branch

176

(45.5 per cent) and Chandigarh branch (36.4 per cent) respectively. Chandigarh

branch registered highest share (42.4 per cent), among the respondents having

turnover „below Rs 5 crore‟, followed by Jalandhar branch (41.2 per cent) and

Ludhiana branch (30.3 per cent). However, 24.2 per cent of the respondents having

turnover „above Rs 15 crore‟ belong to Ludhiana branch, followed by Chandigarh

branch (21.2 per cent) and Jalandhar branch (11.8 per cent).

Table 7.5

Branch Location/Nature of Industry-wise Distribution of Sample Units

Branch Micro Small Medium Total

Jalandhar 0(0) 29(85.3) 5(14.7) 34(100)

Ludhiana 0(0) 26(78.8) 7(21.2) 33(100)

Chandigarh 1(3.0) 22(66.7) 10(30.3) 33(100)

Total 1(1.0) 77(77.0) 22(22.0) 100(100)

Industry-wise, the respondents surveyed have been categorized into three

groups, viz. „Micro‟, „Small‟, and „Medium‟. Table 7.5 highlights that highest number

of respondents (85.3 per cent) having „small‟ enterprises belong to Jalandhar branch.

It is followed by respondents from Ludhiana branch (78.8 per cent) and Chandigarh

branch (66.7 per cent) whereas, 30.3 per cent of the respondents having „medium‟

enterprises belong to Chandigarh branch, followed by Ludhiana branch (21.2 per

cent) and Jalandhar branch (14.7 per cent). While, only one respondent has „micro‟

enterprise (3 per cent) belongs to Chandigarh branch.

Table 7.6

Branch Location/Set up-wise Distribution of Sample Units

Branch Proprietorship Partnership Company Total

Jalandhar 12(35.3) 14(41.2) 8(23.5) 34(100)

Ludhiana 13(39.4) 6(18.2) 14(42.4) 33(100)

Chandigarh 13(39.4) 11(33.3) 9(27.3) 33(100)

Total 38(38.0) 31(31.0) 31(31.0) 100(100)

On the basis of Organisation set-up, the respondents have been grouped into

three categories, viz. „Proprietorship‟, „Partnership‟ and „Company‟. Table 7.6 shows

177

that 42.4 per cent of the respondents having „company‟ form of organisation belong to

Ludhiana branch, followed by Chandigarh branch (27.3 per cent) and Jalandhar

branch (23.5 per cent). However, 41.2 per cent of the respondents engaged in

„partnership‟ business belong to Jalandhar branch, followed by Chandigarh branch

(33.3 per cent) and Ludhiana branch (18.2 per cent). Further, 39.4 per cent each of the

respondents engaged „proprietorship‟ business belong to Ludhiana and Chandigarh

branches, followed by Jalandhar branch (35.3 per cent).

TURNOVER-WISE DISTRIBUTION

Turnover-wise, the respondents surveyed have been classified into three

categories, viz. „Below Rs 5 crore‟, „Rs 5 to 15 crore‟ and „Above Rs 15 crore‟. Table

7.7 shows the organisation set up-wise classification of respondents among these

categories respectively.

Table 7.7

Turnover/Set-up-wise Distribution of Sample Units

Turnover Proprietorship Partnership Company Total

Below Rs 5 crore 20(52.6) 12(31.6) 6(15.8) 38(100)

Rs 5-15 crore 14(32.6) 13(30.2) 16(37.2) 43(100)

Above Rs 15 crore 4(21.1) 6(31.6) 9(47.4) 19(100)

Total 38(38.0) 31(31.0) 31(31.0) 100(100)

Set-up-wise, Table 7.7 reveals that 52.6 per cent respondents engaged in

„proprietorship‟ business have turnover below Rs 5 crore, whereas 47.4 per cent

respondents engaged in „company‟ form of organisation have turnover above Rs 15

crore, followed by 37.2 per cent respondents with turnover of Rs 5 to 15 crore. While,

31.6 per cent each of the respondents engaged in „partnership‟ business have turnover

below Rs 5 crore and above Rs 15 crore.

SET-UP-WISE DISTRIBUTION

Set up-wise classification of the respondents have been divided into three

categories viz. „Proprietorship‟, „Partnership‟ and „Company‟. Tables 7.8 show the

nature of business-wise distribution of respondents among these groups respectively.

178

Table 7.8

Set up/Nature of Business-wise Distribution of Sample Units

Set up Manufacturing Others Total

Proprietorship 36(94.7) 2(5.3) 38(100)

Partnership 31(100) 0(0.0) 31(100)

Company 24(77.4) 7(22.6) 31(100)

Total 91(91.0) 9(9.0) 100(100)

Table 7.8 depicts that all the respondents (100 per cent) doing partnership

business are engaged in „manufacturing‟ business. It is followed by respondents

belonging to proprietorship (94.7 per cent) and company (77.4 per cent). Further, 22.6

per cent of the respondents having company form of organisation are engaged in

„others‟ business. It is followed by 5.3 per cent of the respondents having

proprietorship form of organisation.

Part-II

The second part analysed the impact of SIDBI financing in MSME units. The

opinion of 100 entrepreneurs who had availed loan from the bank has been assessed to

examine the functioning of the bank. The study revealed that all the respondents

surveyed have availed financial assistance from SIDBI for setting up of their

industrial units. The loan has been disbursed on the basis of some mandatory

stipulations to be abided by every entrepreneur during the period of loan. Further, the

analysis about the respondents response related to awareness regarding assistance

schemes, type of assistance availed, time period of customers account with the bank,

purpose of loan, amount of loan, duration of loan, rate of interest, security offered for

loan, moratorium period allowed by bank, amount of loan disbursed by the bank etc.

has been studied in subsequent paragraphs.

AWARENESS REGARDING ASSISTANCE SCHEMES OF SIDBI

To check the awareness of the respondents regarding various assistance

schemes of SIDBI, the respondents were asked to give their assent as regarding

various assistance schemes like, „term loan‟, „working capital‟, „promotional and

developmental assistance‟, „letter of credit‟ and „guarantees‟ given by bank to its

customers. On the basis of the survey, it has been observed that all the respondents

179

have awareness about the „term loan‟ and „working capital‟ assistance schemes of the

bank, while both positive and negative response has been observed regarding the

awareness level of other schemes. Tables 7.9, 7.10 and 7.11 show the branch-wise,

organisation set up-wise and turnover-wise classification of the respondents with

respect to their awareness about assistance schemes.

Table 7.9

Awareness Regarding Promotional & Developmental Assistance Schemes of

SIDBI

Bra

nch

Yes No Total Chi-Square

Jalandhar 19 (55.9) 15 (44.1) 34 (100) χ²= 4.216

d.f. = 2

Sig. = 0.122

Ludhiana 24 (72.7) 9 (27.3) 33 (100)

Chandigarh 16 (48.5) 17 (51.5) 33 (100)

Set

-up

Proprietorship 22 (57.9) 16 (42.1) 38 (100) χ² = 0.098

d.f. = 2

Sig. = 0.952

Partnership 18 (58.1) 13 (41.9) 31 (100)

Company 19 (61.3) 12 (38.7) 31 (100)

Tu

rnover

Below Rs 5 crore 23 (60.5) 15 (39.5) 38 (100)

χ² = 5.160

d.f. = 2

Sig. = 0.76

Rs 5-15 crore 29 (67.4) 14 (32.6) 43 (100)

Above Rs 15

crore 7 (36.8) 12 (63.2)

19 (100)

Total 59 (59.0) 41 (41.0) 100 (100)

Table 7.9 reveals that majority of the respondents (59 per cent) were aware

regarding the promotional and developmental assistance schemes of the bank while,

41 per cent were not aware about the same. Branch-wise, the highest level of

awareness regarding promotional and developmental assistance scheme was shown by

respondents financed by Ludhiana branch (72.7 per cent), followed by Jalandhar

branch (55.9 per cent) and Chandigarh branch (48.5 per cent). The majority of the

respondents (51.5 per cent) were not aware regarding the promotional and

developmental assistance schemes of the bank. The significance value (0.122) is

greater than 0.05 at 5 per cent level of significance, which implies that no significant

difference exists among different branches of SIDBI with regard to awareness

regarding assistance schemes of the bank.

180

Organisation set-up-wise, the maximum level of awareness regarding

promotional and developmental assistance schemes has been shown by the

respondents having company form of organisation (61.3 per cent), followed by

partnership (58.1 per cent) and proprietorship (57.9 per cent). The table also shows

that proprietorship form of organisation has the highest share (42.1 per cent) amongst

the respondent‟s unawareness regarding the same. The significance value (0.952) is

greater than 0.05 at 5 per cent level of significance, which implies that no significant

difference exists among organisation set up with respect to awareness regarding

assistance schemes of the bank.

Turnover-wise, Table 7.9 reveals that a large proportion of respondents (67.4

per cent) with turnover of Rs 5 to 15 crore have awareness about promotional and

developmental assistance schemes of the bank. It is followed by respondents with

turnover below Rs 5 crore (60.5 per cent) and whose turnover is above Rs 15 crore

(36.8 per cent). The majority of the respondents (63.2 per cent) respondents with

turnover above Rs 15 crore were not aware regarding the promotional and

developmental schemes of the bank. The significance value (0.76) is greater than 0.05

at 5 per cent level of significance, which implies that no significant difference exists

among different turnover categories with regard to awareness regarding assistance

schemes of the bank.

Table 7.10

Awareness Regarding Letter of Credit Scheme of SIDBI

Bra

nch


Jalandhar 22 (64.7) 12 (35.3) 34 (100) χ²= 0.257

d.f. = 2

Sig. =0.879

Ludhiana 23 (69.7) 10 (30.3) 33 (100)

Chandigarh 23 (69.7) 10 (30.3) 33 (100)

Set

-up


d.f. = 2

Sig. = 0.669

Partnership 20 (64.5) 11 (35.5) 31 (100)

Company 23 (74.2) 8 (25.8) 31 (100)

Tu

rnover

Below Rs 5 crore 25 (65.8) 13 (34.2) 38 (100)

χ² = 4.694

d.f. = 2

Sig. = 0.096

Rs 5-15 crore 34 (79.1) 9 (20.9) 43 (100)

Above Rs 15

crore 9 (47.4) 10 (52.6)

19 (100)

Total 68 (68.0) 32 (32.0) 100 (100)

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Table 7.10 indicates that the maximum number of respondents (68 per cent)

have awareness regarding assistance given by way of letter of credit by the bank,

while 32 per cent have no awareness about the same. Branch-wise, the highest level of

awareness regarding letter of credit facility given by the bank was shown by

respondents financed by Ludhiana and Chandigarh branch (69.7 per cent each),

followed by Jalandhar branch (64.7 per cent). The table also reveals that 35.3 per cent

respondents financed by Jalandhar branch have no awareness about the same. The

significance value (0.879) is greater than 0.05 at 5 per cent level of significance,

which indicates that no significant difference exists among different branches of

SIDBI with regard to awareness regarding letter of credit scheme of the bank.

Organisation set-up-wise, a significant proportion of awareness regarding

letter of credit has been revealed by the respondents having company form of

organisation (74.2 per cent), followed by proprietorship (65.8 per cent) and

partnership (64.5 per cent). It has also been observed that the highest number of

respondents (35.5 per cent) belong to partnership business have no awareness

regarding assistance given by the bank in the form of letter of credit. The significance

value (0.669) is greater than 0.05 at 5 per cent level of significance, which implies

that no significant difference exists between organisation set up with respect to

awareness regarding letter of credit scheme of the bank.

Turnover-wise, table highlights that majority of the respondents surveyed

(79.1 per cent) having turnover from Rs 5 to 15 crore have awareness about assistance

in the form of letter of credit given by SIDBI. It is followed by the respondents with

turnover below Rs 5 crore (65.8 per cent) and above Rs 15 crore (47.4 per cent)

regarding awareness about the same. The study also shows that the respondents

earning above Rs 15 crore have highest share (52.6 per cent) amongst the respondents

unawareness as regards same. The significance value (0.96) is greater than 0.05 at 5

per cent level of significance, which implies that no significant difference exists

among different turnover categories with regard to awareness regarding letter of credit

scheme of the bank.

182

Table 7.11

Awareness Regarding Guarantee Scheme of SIDBI B

ran

ch


Jalandhar 24 (70.6) 10 (29.4) 34 (100) χ²= 1.273

d.f. = 2

Sig. = 0.529

Ludhiana 20 (60.6) 13 (39.4) 33 (100)

Chandigarh 24 (72.7) 9 (27.3) 33 (100)

Set

-up


d.f. = 2

Sig. = 0.860

Partnership 20 (64.5) 11 (35.5) 31 (100)

Company 22 (71.0) 9 (29.0) 31 (100)

Tu

rnover

Below Rs 5 crore 25 (65.8) 13 (34.2) 38 (100)

χ² = 6.224

d.f. = 2

Sig. = 0.045

Rs 5-15 crore 34 (79.1) 9 (20.9) 43 (100)

Above Rs 15

crore 9 (47.4) 10 (52.6)

100 (100)

Total 68 (68.0) 32 (32.0) 100 (100)

Table 7.11 shows that a large number of the respondents (68 per cent) have

awareness regarding assistance in the form of guarantees given by the bank to its

customers, while 32 per cent respondents have unawareness about the same. Branch-

wise, table reveals that majority of the respondents (72.7 per cent) financed by

Chandigarh branch have knowledge about guarantees given by the bank. It is

followed by the respondents financed by Jalandhar branch (70.6 per cent) and

Ludhiana branch (60.6 per cent). The highest number of respondents financed by

Ludhiana branch (39.4 per cent) have no awareness regarding same. The significance


that no significant difference exists among different branches of SIDBI as regards

awareness regarding guarantee scheme of the bank.

Organisation set-up-wise, analysis indicates that the highest level of awareness

about the assistance in the form of guarantees given by the bank have been shown by

respondents having company form of organisation (71.0 per cent), followed by

proprietorship (68.4 per cent) and partnership (64.5 per cent). It has also been

observed that 35.5 per cent of the respondents having partnership business have no

knowledge regarding the same. The significance value (0.860) is greater than 0.05 at 5


between organisation set up and its awareness regarding guarantee scheme of the

bank.

183

Turnover-wise, Table 7.11 shows that majority of the respondents (79.1 per

cent) with turnover of Rs 5 to 15 crore have information about the guarantee scheme.

It is followed by respondents with turnover below Rs 5 crore (65.8 per cent) and

respondents with turnover above Rs 15 crore (47.4 per cent). The majority of the

respondents (52.6 per cent) under this classification have no awareness about the

assistance given by the bank in the form of guarantees to its customers. The

significance value (0.045) is less than 0.05 at 5 per cent level of significance, which

implies that significant difference exists among different turnover categories as far as

awareness regarding guarantee scheme of the bank is concerned.

TYPE OF LOANS

The entrepreneurs generally approach SIDBI for meeting their fund based and

non-fund based requirements. The bank grants assistance in the form of term loan,

working capital, promotional and developmental (P&D) assistance, letter of credit and

guarantees. Tables 7.12 and 7.13 shows the type of assistance availed by all

respondents surveyed and branch-wise, set up-wise and turnover-wise classification of

the respondents with regard to the type of loan taken by them from SIDBI.

Table 7.12

Type of Loans

Yes No Total

Term Loan 95 (95) 5 (5) 100 (100)

Working Capital 1 (1) 99 (99) 100 (100)

Both Term loan & Working Capital 4 (4) 96 (96) 100 (100)

P&D Assistance 0 (0) 100 (100) 100 (100)

Letter of Credit 0 (0) 100 (100) 100 (100)

Guarantees 0 (0) 100 (100) 100 (100)

The survey of respondents revealed that none of them have availed

promotional and developmental assistance, letter of credit and guarantees from the

bank. All the respondents meet their requirements through term loan and working

capital loan. Table 7.12 shows that a large proportion of the respondents (95 per cent)

have availed term loan assistance from SIDBI and one respondent has taken working

capital loan from the bank. It further reveals that only four respondents of the total

have availed assistance under both types i.e. both term loan and working capital loan

from the bank.

184

Table 7.13

Term Loan Assistance B

ran

ch


Jalandhar 34 (100) 0 (0.0) 34 (100) χ²= 10.686

d.f. = 2

Sig. = 0.005

Ludhiana 33 (100) 0 (0.0) 33 (100)

Chandigarh 28 (84.8) 5 (15.2) 33 (100)

Set

-up

Proprietorship 38 (100) 0 (0.0) 38 (100) χ² = 6.282

d.f. = 2

Sig. = 0.043

Partnership 27 (87.1) 4 (12.9) 31 (100)

Company 30 (96.8) 1 (3.2) 31 (100)

Tu

rnover

Below Rs 5 crore 37 (97.4) 1(2.6) 38 (100)

χ² = 0.805

d.f. = 2

Sig. = 0.669

Rs 5-15 crore 40 (93.0) 3 (7.0) 43 (100)

Above Rs 15

crore 18 (94.7) 1 (5.3)

19 (100)

Total 95 (95.0) 5 (5.0) 100 (100)

Table 7.13 reveals that a high majority of the respondents (95 per cent) have

taken term loan from the bank, while 5 per cent have availed other form of assistance

from the bank. Branch-wise, analysis shows that all the respondents (100 per cent

each) financed by Jalandhar branch and Ludhiana branch have taken term loan from

the bank, followed by Chandigarh branch (84.8 per cent), while 15.2 per cent

respondents financed by Chandigarh branch have not availed term loan assistance.

The significance value (0.005) is less than 0.05 at 5 per cent level of significance,

which implies that significant differences exist among different branches of the bank

as regards term loan assistance availed.

Organisation set-up-wise, the maximum number of respondents who availed

term loan assistance belong to proprietorship form of organisation (100 per cent),

followed by company (96.8 per cent) and partnership (87.1 per cent). The highest

number of respondents (12.9 per cent) from partnership form of organisation did not

avail term loan from the bank. The significance value (0.043) is less than 0.05 at 5 per

cent level of significance, which implies that significant differences exist between

organisation set up as regards term loan assistance availed.

185

Turnover-wise, the analysis shows that a large proportion of respondents (97.4

per cent) with turnover below Rs 5 crore have availed term loan assistance from the

bank. It is followed by respondents receiving turnover above Rs 15 crore, (94.7 per

cent) and whose turnover is from Rs 5 to 15 crore (93.0 per cent). Further, the

respondents earning Rs 5 to 15 crore have highest share (7.0 per cent) amongst the

respondents who have not taken term loan assistance from SIDBI. The significance


that no significant difference exists among different turnover categories as regards

term loan assistance availed.

TIME PERIOD OF CUSTOMERS ACCOUNT WITH SIDBI

To know the customers preference towards SIDBI, the respondents were

surveyed to know their exact period of dealing with the bank. It also helps in

determining respondent‟s loyalty and their strength of relationship maintained with

the staff of the bank. Branch-wise, organisation set up-wise and turnover-wise

responses of the respondents in this context has been given in Table 7.14.

Table 7.14

Time Period of Customers Account with SIDBI

Bra

nch

Less

than 2

years

2-5

years

More

than 5

years

Total Chi-Square

Jalandhar 2 (5.9) 28(82.4) 4(11.8) 34 (100) χ²= 11.879

d.f. = 6

Sig. = 0.065

Ludhiana 2 (6.1) 17(51.5) 14(42.4) 33(100)

Chandigarh 5(15.1) 18(54.5) 10(30.3) 33(100)

Set

-up

Proprietorship 5(13.2) 29(76.3) 4(10.5) 38(100) χ² = 21.195

d.f. = 6

Sig. = 0.002

Partnership 2(6.4) 22(71.0) 7(22.6) 31(100)

Company 2(6.5) 12(38.7) 17(54.8) 31(100)

Tu

rnover

Below Rs 5 crore 5(13.2) 29(76.3) 4(10.5) 38(100)

χ² = 10.711

d.f. = 6

Sig. = 0.098

Rs 5-15 crore 3(7.0) 24(55.8) 16(37.2) 43(100)

Above Rs 15 crore 1(5.3) 10(52.6) 8(42.1) 19(100)

Total 9(9.0) 63(63.0) 28(28.0) 100(100)

186

Table 7.14 indicates that majority of the respondents (63 per cent) have been

dealing for the period „2 to 5 years‟ with the bank, while 28 per cent of the

respondents have been dealing for „more than 5 years‟. It is followed by respondents

having account for the period „less than 2 years‟ (9.0 per cent). Branch-wise analysis

reveals that highest number of respondents financed by Jalandhar branch (82.4 per

cent) have their account from „2 to 5 years‟ with the bank, followed by Chandigarh

branch (54.5 per cent) and Ludhiana branch (57.5 per cent). A large number of the

respondents financed by Ludhiana branch (42.4 per cent) have been dealing with bank

for „more than 5 years‟, followed by Chandigarh branch (30.3 per cent) and Jalandhar

Branch (11.8 per cent). Further, 15.1 per cent of the respondents financed by

Chandigarh branch were highest amongst the respondents dealing from „less than 2

years‟ with the bank. The significance value (0.065) is greater than 0.05 at 5 per cent

level of significance, which indicates that no significant difference exists among

respondents from different branches of the bank as regards time period of customers

account with SDIBI.

Organisation set-up-wise, table highlights that maximum number of

respondents (76.3 per cent) who have their account with the bank from „2 to 5 years‟

belonged to proprietorship form of organisation, followed by respondents from

partnership (71.0 per cent) and company form of organisation (38.7 per cent). The

highest number of respondents (54.8 per cent) who have been dealing with SIDBI

from „more than 5 years‟, belong to company form of organisation, followed by

respondents belong to partnership (22.6 per cent) and proprietorship (10.5 per cent).

Further, 13.2 per cent respondents belong to proprietorship business have their

account for „less than 2 years‟ with SIDBI. The significance value (0.002) is less than

0.05 at 5 per cent level of significance, which indicates that significant differences

exist between organisation set up-wise as regards time period of customers account

with SIDBI.

Turnover-wise, Table 7.14 highlights that a large proportion of respondents

(76.3 per cent) with turnover below Rs 5 crore have their account for the period of „2-

5 years‟ with the bank, followed by respondents with turnover from Rs 5 to 15 crore

(55.8 per cent) and above Rs 15 crore (52.6 per cent). It has also been observed that

42.1 per cent of the respondents with turnover above Rs 15 crore have been dealing

with the bank from „more than 5 years‟ followed by respondents with turnover from

187

Rs 5 to 15 crore (37.2 per cent) and those whose turnover is below Rs 5 crore (10.5

per cent). Further, 13.2 per cent respondents with turnover „below Rs 5 crore‟ were

highest amongst the respondents dealing for the period of „less than 2 years‟ with the

bank. The significance value (0.098) is greater than 0.05 at 5 per cent level of

significance, which indicates that no significant difference exists among different

turnover categories of the bank as regards time period of customers account with

SIDBI.

NUMBER OF TIMES LOANS RAISED BY BORROWER

To examine the respondent‟s loyalty towards bank as well as the bank‟s ability

to meet customer‟s demand, they were asked to specify the frequency of taking loans

for fulfilling their requirement. A customer will approach the same bank for another

loan if and only if he has been getting some exceptional services and proper attention

from the bank staff. Table 7.15 highlights the branch-wise, organisation set up-wise

and turnover wise analysis of the respondents with regard to number of times loans

raised by them.

Table 7.15

Number of Times Loans Raised by the Borrower

Bra

nch

One

Time

Two

Times

Three

Times

Four

Times

or more

Total Chi-Square

Jalandhar 21(61.8) 6(17.6) 5(14.7) 2(5.9) 34(100) χ²= 5.616

d.f. = 6

Sig. = 0.468

Ludhiana 15(45.5) 8(24.2) 4(12.1) 6(18.2) 33(100)

Chandigarh 19(57.6) 4(12.1) 3(9.1) 7(21.2) 33(100)

Set

-up

Proprietorship 23(60.5) 8(21.1) 3(7.9) 4(10.5) 38(100) χ² = 5.341

d.f. = 6

Sig. = 0.501

Partnership 18(58.1) 6(19.4) 3(9.7) 4(12.9) 31(100)

Company 14(45.2) 4(12.9) 6(19.4) 7(22.6) 31(100)

Tu

rnover

Below Rs 5

crore 28(73.7) 7(18.4)

2(5.3) 1(2.6) 38(100)

χ² = 13.714

d.f. = 6

Sig. = 0.033

Rs 5-15 crore 17(39.5) 9(20.9) 7(16.3) 10(23.3) 43(100)

Above Rs 15

crore 10(52.6) 2(10.5)

3(15.8) 4(21.1) 19(100)

Total 55(55.0) 18(18.0) 12(12.0) 15(15.0) 100(100)

188

Table 7.15 indicates that majority of the respondents (55 per cent) have taken

loan only once, followed by respondents who took loan twice (18 per cent), 15 per

cent respondents have raised loan four times or more and 12 per cent have taken loan

thrice. Branch-wise, table depicts that highest number of respondents (61.8 per cent)

financed by Jalandhar branch have raised loan „one time‟, followed by those financed

by Chandigarh branch (57.6 per cent) and Ludhiana branch (45.5 per cent). The table

also reveals that 24.2 per cent respondents financed by Ludhiana branch have taken

loan „two times‟, followed by Jalandhar branch (17.6 per cent) and Chandigarh branch

(12.1 per cent). Further, 21.2 per cent respondents from Chandigarh branch have

raised loan „four times or more‟, followed by respondents financed by Ludhiana

branch (18.2 per cent) and Jalandhar branch (5.9 per cent). The significance value

(0.468) is greater than 0.05 at 5 per cent level of significance, which indicates that no

significant difference exists among different branches of the bank as far as total

number of loans raised by each customer is concerned.

Organisation set-up-wise, analysis revealed that maximum number of

respondents (60.5 per cent) from proprietorship form of organisation have raised loan

„one time‟, followed by partnership (58.1 per cent) and from company form of

organisation (45.2 per cent). The table also shows that 21.1 per cent respondents from

proprietorship form of organisation have taken loan „two times‟, followed by

partnership (19.4 per cent) and company (12.9 per cent). Further, the highest number

of respondents who have raised loan „four times or more‟ belong to company form of

organisation (22.6 per cent). The significance value (0.501) is greater than 0.05 at 5


between organisation set up-wise as regards total number of loans raised by each

customer.

Turnover-wise, Table 7.15 indicates that majority of respondents (73.7 per

cent) with turnover below Rs 5 crore have raised loan only „one time, followed by

respondents receiving turnover above Rs 15 crore (52.6 per cent) and those whose

turnover is from Rs 5 to 15 crore (39.5 per cent). It has also been observed that 20.9

per cent of the respondents with turnover from Rs 5 to 15 crore have raised loan „two

times‟, followed by respondents generating turnover below Rs 5 crore (18.4 per cent)

and those whose turnover is above Rs 15 crore (10.5 per cent). Further, 23.3 per cent

of the respondents receiving turnover from Rs 5 to 15 crore have highest share

amongst others for taking loan „four times or more‟. The significance value (0.033) is

189

less than 0.05 at 5 per cent level of significance, which indicates that significant

differences exist among different turnover categories of the bank as far as total

number of loans raised by each customer, is concerned.

FACTORS INFLUENCED BORROWERS FOR AVAILING LOAN FROM

SIDBI

To evaluate the respondents‟ opinion about the reasons that influenced them

for taking loan from SIDBI, they were asked to give their assent with regard to same.

Table 7.16 shows the response of the respondents in this context.

Table 7.16

Factors Influenced Borrowers for Availing Loan from SIDBI

Chandigarh Ludhiana Jalandhar Total

Easy Accessibility 16 (48.5) 18 (54.5) 23 (67.6) 57 (57)

Goodwill 10 (30.3) 12 (36.4) 21 (61.8) 43 (43)

Cooperative Staff 26 (78.8) 28 (84.8) 33 (97.1) 87 (87)

More Value Added Services 12 (36.4) 13 (39.4) 10 (29.4) 35 (35)

Prompt Service 17 (51.5) 20 (60.6) 28 (82.4) 65 (65)

Table 7.16 shows that majority of the respondents‟ surveyed considered co-

operative staff (87 per cent) as important factor, while taking loan from the bank. It is

followed by prompt service (65 per cent), easy accessibility (57 per cent), goodwill

(43 per cent) and more value added services (35 per cent) provided by the bank to its

borrowers.

PURPOSE OF LOAN

The bank grants loan to entrepreneurs for acquiring land, building, plant and

machinery etc. The entrepreneurs also approach bank for „setting up of new units‟, for

„expansion, modernisation and diversification of existing units‟ and for acquisition of

„industrial infrastructure‟ for existing units. Table 7.17 shows the branch-wise,

organisation set up-wise and turnover-wise classification of entrepreneurs with regard

to the purpose of taking loan respectively.

190

Table 7.17

Purpose of Loan B

ran

ch

For

Setting up

of New

Units

For Expansion,

Modernisation

and

Diversification

For Industrial

Infrastructure Total

Chi-

Square

Jalandhar 1 (2.9) 31(91.2) 2(5.9) 34(100) χ²= 0.802

d.f. = 4

Sig. =

0.938

Ludhiana 1(3.0) 28(84.8) 4(12.1) 33(100)

Chandigarh 1(3.0) 29(87.9) 3(9.1) 33(100)

Set

-up


d.f. = 4

Sig. =

0.540

Partnership 1(3.2) 26(83.9) 4(12.9) 31(100)

Company 1(3.2) 26(83.9) 4(12.9) 31(100)

Tu

rno

ver

Below Rs 5

crore 0(0) 35(92.1) 3(7.9) 38(100)

χ² =

15.034

d.f. = 4

Sig. =

0.005

Rs 5-15 crore 0(0) 40(93.0) 3(7.0) 43(100)

Above Rs 15

crore 3(15.8) 13(68.4) 3(15.8) 19(100)

Total 3(3.0) 88(88.0) 9(9.0) 100(100)

Table 7.17 highlights that a large proportion of respondents (88 per cent) have

taken loan for „expansion, modernisation and diversification‟ of existing units, while

9 per cent respondents have availed loan for acquiring „Industrial infrastructure‟ and

remaining 3 per cent for „setting up of new units‟. Branch-wise analysis reveals that

maximum number of respondents (91.2 per cent) who had taken loan for „expansion,

modernisation and diversification‟ of existing units, have financed by Jalandhar

branch, followed by Chandigarh branch (87.9 per cent) and Ludhiana branch (84.8 per

cent). It has been observed that 12.1 per cent of the respondents financed by Ludhiana

branch have utilised the loan for acquiring „industrial infrastructure‟. Further, 3 per

cent each of the respondents financed by Ludhiana and Chandigarh branch have taken

loan „for setting up of new units‟. The significance value (0.938) is greater than 0.05

at 5 per cent level of significance, which indicates that no significant difference exists

among different branches of the bank with respect to the purpose of taking loan from

the bank.

191

Organisation set-up-wise, table shows that a significant proportion of

respondents (94.7 per cent) who have taken loan „for expansion, modernisation and

diversification‟ of existing units belong to proprietorship form of organisation,

followed by 83.9 per cent each for respondents from partnership and company form of

organisation. The table also shows that 12.9 per cent each of the respondents belongs

to partnership and company form of organisation have utilised the loan for acquiring

„industrial infrastructure‟. The significance value (0.540) is greater than 0.05 at 5 per

cent level of significance, which indicates that no significant difference exists

between organisation set up as regards the purpose for which loans have been granted.

Turnover-wise, Table 7.17 highlights that the highest number of respondents

(93.0 per cent) who borrowed loan „for expansion, modernisation and diversification‟

of existing units were those receiving turnover from Rs 5 to 15 crore, followed by

respondents generating turnover below Rs 5 crore (92.1 per cent) and those whose

turnover is above Rs 15 crore (68.4 per cent). The study also reveals that 15.8 per cent

respondents generating turnover above Rs 15 crore have highest share amongst others

for utilising loan amount for acquiring „industrial infrastructure‟. The significance

value (0.005) is less than 0.05 at 5 per cent level of significance, which indicates that

significant differences exist among different turnover categories of the bank as far as

purpose of taking loans are concerned.

AMOUNT OF LOAN

The amount of loan borrowed varies according to the requirement, purpose of

loan, annual turnover, repaying capacity of the borrower etc. The analysis also

revealed that majority of the respondents took loan after the year 2000 from bank.

Table 7.18 depicts branch-wise, organisation set up-wise and turnover-wise

distribution of loan with respect to amount of loan.

192

Table 7.18

Amount of Loan B

ran

ch

Below

Rs 10 lac

Rs 10 to

20 lac

Above Rs

20 lac Total

Chi-

Square

Jalandhar 1(2.9) 19(55.9) 14(41.2) 34(100) χ²= 9.301

d.f. = 4

Sig. =

0.054

Ludhiana 0(0) 12(36.4) 21(63.6) 33(100)

Chandigarh 4(12.1) 11(33.3) 18(54.5) 33(100)

Set

-up


d.f. = 4

Sig. =

0.540

Partnership 2(6.5) 15(48.4) 14(45.2) 31(100)

Company 1(3.2) 7(22.6) 23(74.2) 31(100)

Tu

rnover

Below Rs 5

crore 3(7.9) 25(65.8) 10(26.3) 38(100)

χ² =

22.044

d.f. = 4

Sig. =

0.000

Rs 5-15 crore 2(4.7) 15(34.9) 26(60.5) 43(100)

Above Rs 15

crore 0(0) 2(10.5) 17(89.5) 19(100)

Total 5(5.0) 42(42.0) 53(53.0) 100(100)

It is evident from Table 7.18 that maximum number of respondents (53 per

cent) have availed loans „above Rs 20 lac‟, followed by respondents whose loan

amount is between „Rs 10 to 20 lac‟ (42 per cent) and those who borrowed „below Rs

10 lac‟ (5 per cent). Branch-wise, the table reveals that highest number of respondents

financed by Ludhiana branch (63.6 per cent) have taken loan amount, „above Rs 20

lac‟, followed by respondents from Chandigarh branch (54.5 per cent) and Jalandhar

branch (41.2 per cent). It has also been observed that 55.9 per cent of the respondents

financed by Jalandhar branch have taken loan amount of „Rs 10 to 20 lac‟, followed

by Ludhiana branch (36.4 per cent) and Chandigarh branch (33.3 per cent). Further,

the highest number of respondents (12.1 per cent) whose loan amount is „below Rs 10

lac‟, have been financed by Chandigarh branch. The significance value (0.054) is

greater than 0.05 at 5 per cent level of significance, which indicates that no significant

difference exists among different branches of the bank with regard to the amount of

taking loans.

193

Organisation set-up-wise, analysis shows that a significant proportion of

respondents (74.2 per cent) who have taken loan amount „above Rs 20 lac‟ belong to

company form of organisation, followed by respondents from partnership (45.2 per

cent) and proprietorship form of organisation (42.1 per cent). The table also shows

that 52.6 per cent of the respondents from proprietorship form of organisation have

availed loan amount of „Rs 10 to 20 lac‟, followed by partnership (48.4 per cent) and

company (22.6 per cent). The significance value (0.540) is greater than 0.05 at 5 per


between organisation set up-wise as far as the amount of taking loan is concerned.

Turnover-wise, Table 7.18 highlights that the maximum number of

respondents (89.5 per cent) generating turnover above Rs 15 crore have taken loan

amount „above Rs 20 lac‟, followed by respondents receiving turnover of Rs 5 to 15

crore (60.5 per cent) and those whose turnover is below Rs 5 crore (26.3 per cent).

The study also reveals that 65.8 per cent of the respondents generating turnover

below Rs 5 crore have taken loan amount of „Rs 10 to 20 lac‟, followed by

respondents receiving turnover of Rs 5 to 15 crore (34.9 per cent) and whose turnover

is above Rs 15 crore (10.5 per cent). The significance value (0.000) is less than 0.05 at

5 per cent level of significance, which implies that significant differences exist among

different turnover categories of the bank far as the amount of taking loan is

concerned.

DURATION OF LOAN

The duration of loan depends upon the amount of loan, purpose of loan, type

of loan, repaying capacity of the borrower etc. It means the time period during which

the loan amount is to be repayable. Table 7.19 show the branch-wise, organisation set

up-wise and turnover-wise classification of respondents with regard to duration of

loan.

194

Table 7.19

Duration of Loan B

ran

ch

Below 5

Years

5 Years

and Above Total Chi-Square

Jalandhar 31(91.2) 3(8.8) 34(100) χ²= 1.784

d.f. = 2

Sig. = 0.410

Ludhiana 27(81.8) 6(18.2) 33(100)

Chandigarh 30(90.9) 3(9.1) 33(100)

Set

-up

Proprietorship 35(92.1) 3(7.9) 38(100) χ² = 4.797

d.f. = 2

Sig. = 0.091

Partnership 29(93.5) 2(6.5) 31(100)

Company 24(77.4) 7(22.6) 31(100)

Tu

rnover

Below Rs 5

crore 36(94.7) 2(5.3) 38(100)

χ² = 3.263

d.f. = 2

Sig. = 0.196

Rs 5-15 crore 37(86.0) 6(14.0) 43(100)

Above Rs 15

crore 15(78.9) 4(21.1) 19(100)

Total 88(88.0) 12(12.0) 100(100)

Table 7.19 depicts that majority of the respondents have taken loan for the

period of „below 5 years‟ (88 per cent), which is followed by respondents having

tenure „5 years and above‟ (12 per cent). Branch-wise, the table reveals that the

proportion of respondents having loan period of „below 5 years‟ is highest among

those financed by Jalandhar branch (91.2 per cent), followed by Chandigarh branch

(90.9 per cent) and Ludhiana branch (81.8 per cent). Further, maximum proportion of

respondents having loan tenure „5 years and above‟ is among those financed by

Ludhiana branch (18.2 per cent). The significance value (0.410) is greater than 0.05 at

5 per cent level of significance, which indicates that no significant difference exists

among different branches of the bank with respect to duration of loan taken.

Organisation set-up-wise, Table 7.19 highlights that highest number of

respondents having loan period of „below 5 years‟ belong to partnership form of

organisation (93.5 per cent), followed by proprietorship (92.1 per cent) and company

(77.4 per cent). Further, the proportion of respondents having loan tenure „5 years and

above‟ is the highest in company form of organisation (22.6 per cent). The


which implies that no significant difference exists between organisation set up as far

as duration of loan taken, is concerned.

195

Turnover-wise, the table shows that majority of the respondents having loan

tenure of „below 5 years‟ are generating turnover below Rs 5 crore (94.7 per cent),

followed by respondents whose turnover is between Rs 5 to 15 crore (86.0 per cent)

and above Rs 15 crore (78.9 per cent). The highest number of respondents who have

availed loan for a period of „5 years and above‟ are those generating turnover above

Rs 15 crore (21.1 per cent). It is followed by 14.0 per cent respondents receiving

turnover of Rs 5 to 15 crore and 5.3 per cent respondents whose turnover is below Rs

5 crore. The significance value (0.196) is greater than 0.05 at 5 per cent level of


turnover categories of the bank with respect to duration of loan taken.

RATE OF INTEREST

Every bank levied some percentage on the amount of loan disbursed to its

borrowers so as to increase its income. These additional charges in the form of

interest are required to be paid by the borrower during the tenure of his loan along

with the principal amount borrowed from the bank. Table 7.20 shows the branch-

wise, organisation set up-wise and turnover-wise distribution of respondents in regard

to rate of interest paid by them on loan financed by bank.

Table 7.20 depicts that a large proportion of respondents (83 per cent) have

been paying interest rate of „10 to 15 per cent‟, followed by (16 per cent) respondents

paying interest „upto 10 per cent‟ and only 1 per cent respondent has been paying

interest „above 15 per cent‟. Branch-wise, the maximum percentage of respondents

paying interest rate at „10 to 15 per cent‟ belong to Chandigarh branch (90.9 per cent),

followed by Ludhiana branch (84.8 per cent) and Jalandhar branch (73.5 per cent).

The highest proportion of respondents who have been paying interest „up to 10 per

cent‟, belong to Jalandhar branch (26.5 per cent) and one respondent paying interest

at „above 15 per cent‟ rate belongs to Ludhiana branch (3.0 per cent). The


which indicates that no significant difference exists among different branches of the

bank as regards rate of interest paid by beneficiaries.

196

Table 7.20

Rate of Interest

Bra

nc

h

Upto 10% 10-15% Above 15% Total Chi-Square

Jalandhar 9(26.5) 25(73.5) 0(0) 34(100) χ²= 6.285

d.f. = 4

Sig. = 0.179

Ludhiana 4(12.1) 28(84.8) 1(3.0) 33(100)

Chandigarh 3(9.1) 30(90.9) 0(0) 33(100)

Se

t-u

p Proprietorship 6(15.8) 31(81.6) 1(2.6) 38(100) χ² = 3.106

d.f. = 4

Sig. = 0.540

Partnership 6(19.4) 25(80.6) 0(0) 31(100)

Company 4(12.9) 27(87.1) 0(0) 31(100)

Tu

rno

ve

r

Below Rs 5

crore 7(18.4) 31(81.6) 0(0) 38(100)

χ² = 4.610

d.f. = 4

Sig. = 0.330

Rs 5-15 crore 6(14.0) 37(86.0) 0(0) 43(100)

Above Rs 15

crore 3(15.8) 15(78.9) 1(5.3) 19(100)

Total 16(16.0) 83(83.0) 1(1.0) 100(100)

Organisation set-up-wise, table indicates that maximum proportion of the

respondents who have been paying interest at „10 to 15 per cent‟ belong to company

form of organisation (87.1 per cent), followed by respondents from proprietorship

(81.6 per cent) and partnership (80.6 per cent). The analysis further reveals that

highest proportion (19.4 per cent) of the respondents paying interest „upto 10 per cent‟

belong to partnership form of organisation. The significance value (0.540) is greater

than 0.05 at 5 per cent level of significance, which indicates that no significant

difference exists between organisation set up as far as rate of interest paid by

beneficiaries, are concerned.

Turnover-wise, analysis depicts that maximum number of respondents (86.0

per cent) generating turnover of Rs 5 to 15 crore have been paying interest at „10 to

15 per cent‟ while, 18.4 per cent of the respondents with turnover below Rs 5 crore

have been paying interest „upto 10 per cent‟. The significance value (0.330) is greater


difference exists among different turnover categories of the bank as regards rate of

interest paid by beneficiaries.

197

SECURITY REQUIREMENTS

All the banks require security as an assurance for timely payment of debt by

its borrowers. SIDBI also obtain same form of security either in form of fixed deposit

or collateral security from its entrepreneurs as per its terms and conditions of finance.

Table 7.21 highlights the distribution of respondents with regards to security offered

or not by them to SIDBI.

Table 7.21

Security Requirements

Bra

nch


Jalandhar 16(47.1) 18(52.9) 34(100) χ²= 1.975

d.f. = 2

Sig. = 0.372

Ludhiana 21(63.6) 12(36.4) 33(100)

Chandigarh 17(51.5) 16(48.5) 33(100)

Set

-up


d.f. = 2

Sig. = 0.949

Partnership 17(54.8) 14(45.2) 31(100)

Company 16(51.6) 15(48.4) 31(100)

Tu

rnover

Below Rs 5

crore 19(50.0) 19(50.0) 38(100)

χ² = 3.670

d.f. = 2

Sig. = 0.160

Rs 5-15 crore 21(48.8) 22(51.2) 43(100)

Above Rs 15

crore 14(73.7) 5(26.3) 19(100)

Total 54(54.0) 46(46.0) 100(100)

It is evident from Table 7.21 that majority of the respondents (54 per cent)

have „given security‟ to the bank while, 46 per cent of the respondents have availed

loan „without any security‟. Branch-wise analysis reveals that majority of respondents

financed by Ludhiana branch (63.6 per cent) have „given security‟ for availing loan,

followed by respondents financed by Chandigarh branch (51.5 per cent) and Jalandhar

branch (47.1 per cent). Further, 52.9 per cent of the respondents financed by Jalandhar

branch have „not given‟ any security as regards same. The significance value (0.372)

198

is greater than 0.05 at 5 per cent level of significance, which indicates that no

significant difference exists among different branches of the bank as regards security

offered by customers for availing loan from the bank.

Organisation set up-wise, Table 7.21 shows that 55.3 per cent of the

respondents who belong to proprietorship form of organisation have „given security‟

for getting loan, followed by partnership (54.8 per cent) and company (51.6 per cent).

It has also been observed that 48.4 per cent of the respondents from company form of

organisation possess highest share amongst those who have availed loan „without

security‟. The significance value (0.949) is greater than 0.05 at 5 per cent level of

significance, which indicates that no significant difference exists between

organisation set up with respect to security offered by customers for availing loan

from the bank.

Turnover-wise, the analysis indicates that maximum number of respondents

generating turnover above Rs 15 crore (73.7 per cent) have „given security‟ for

availing loan from SIDBI. Further, 51.2 per cent of the respondents generating

turnover of Rs 5 to 15 crore possess highest share amongst those who have availed

loan „without security‟. The significance value (0.160) is greater than 0.05 at 5 per

cent level of significance, which indicates that no significant difference exists among

different turnover categories of the bank as far as security offered by the customers

for taking loan from SIDBI is concerned.

MORATORIUM PERIOD

In MSME sector, availability of resources are limited that act as a constraint

for these units. As every business unit requires some time for generating income. So,

loan instalment is paid after some time period known as moratorium period. Table

7.22 shows the classification of respondents with regard to the moratorium period of

the loan disbursed by the bank.

199

Table 7.22

Moratorium Period B

ran

ch

Up to 3

months 3-6 months

Above 6

months Total

Chi-

Square

Jalandhar 20(58.8) 14(41.2) 0(0) 34(100) χ²= 6.073

d.f. = 4

Sig. =

0.194

Ludhiana 15(45.5) 17(51.5) 1(3.0) 33(100)

Chandigarh 12(36.4) 18(54.5) 3(9.1) 33(100)

Set

-up


d.f. = 4

Sig. =

0.325

Partnership 16(51.6) 15(48.4) 0(0) 31(100)

Company 12(38.7) 16(51.6) 3(9.7) 31(100)

Tu

rnover

Below Rs 5

crore 24(63.2) 13(34.2) 1(2.6) 38(100)

χ² =

12.653

d.f. = 4

Sig. =

0.013

Rs 5-15 crore 20(46.5) 22(51.2) 1(2.3) 43(100)

Above Rs 15

crore 3(15.8) 14(73.7) 2(10.5) 19(100)

Total 47(47.0) 49(49.0) 4(4.0) 100(100)

Table 7.22 shows that highest number of respondents (49 per cent) have

moratorium period of „3 to 6 months‟, followed by (47 per cent) respondents having

moratorium period of „upto 3 months‟ and only 4 per cent respondents have given

„above 6 months‟ period. Branch-wise, the highest number of respondents (58.8 per

cent) financed by Jalandhar branch have moratorium period of „upto 3 months‟

followed by respondents from Ludhiana branch (45.5 per cent) and Chandigarh

branch (36.4 per cent). Further, the highest proportion of respondents financed by

Chandigarh branch (54.5 per cent) have moratorium period of „3 to 6 months‟, and

(9.1 per cent) respondents have given „above 6 months‟ period. The significance value

(0.194) is greater than 0.05 at 5 per cent level of significance, which implies that no

significant difference exists between different branches of the bank as regards

moratorium period given to customers by SDIBI.

Organisation set-up-wise, the table highlights that 51.6 per cent of the

respondents belong to partnership business have moratorium period of „upto 3

months‟ and same proportion of respondents (51.6 per cent) belong to company form

200

of organisation have given „3 to 6 months‟ period in this regard. The significance

value (0.325) is greater than 0.05 at 5 per cent level of significance, which indicates

that no significant difference exists between organisation set up with respect to

moratorium period given to customers by SIDBI.

Turnover-wise, Table 7.22 indicates that a large proportion of respondents

generating turnover above Rs 15 crore (73.7 per cent) have given „3 to 6 months‟

moratorium period. Further, highest proportion of respondents (63.2 per cent)

generating turnover below Rs 5 crore have time period of „up to 3 months‟, while 10.5

per cent of the respondents possess highest share amongst those generating turnover

above Rs 15 crore and having moratorium period of „above 6 months.‟ The


indicates that significant differences exist among different turnover categories of the

bank as far as moratorium period allowed by the bank to its customers is concerned.

REPAYMENT SCHEDULE

The loan borrowed by the entrepreneur has to be returned in specified number

of instalments as per their repaying capacity. Table 7.23 depicts the branch wise,

organisation set up-wise and turnover-wise distribution of respondents in this content.

It is evident from Table 7.23 that a significant proportion of respondents (96

per cent) have been paying their instalments „monthly‟, followed by 3 per cent

respondents paying loan instalments „quarterly‟ and only 1 per cent have been paying

instalments „annually.‟ Branch-wise, table shows that all the respondents financed by

Chandigarh branch (100 per cent) have been paying loan instalments on „monthly‟

basis, followed by respondents from Jalandhar branch (97.1 per cent) and Ludhiana

branch (90.9 per cent). Further, 6.1 per cent of the respondents financed by Ludhiana

branch have been repaying their instalments on „quarterly‟ basis. However, 3.0 per

cent of the respondents financed by Ludhiana branch have been paying instalments

„annually‟. The significance value (0.380) is greater than 0.05 at 5 per cent level of

significance, which implies that no significant difference exists between different

branches of the bank as far as the repayment schedule of the bank is concerned.

201

Table 7.23

Repayment Schedule B

ran

ch

Monthly Quarterly Annually Total Chi-

Square

Jalandhar 33(97.1) 1(2.9) 0(0) 34(100) χ²= 4.199

d.f. = 4

Sig. =

0.380

Ludhiana 30(90.9) 2(6.1) 1(3.0) 33(100)

Chandigarh 33(100) 0(0.0) 0(0.0) 33(100)

Set

-up

Proprietorship 38(100) 0(0.0) 0(0.0) 38(100) χ² = 3.287

d.f. = 4

Sig. =

0.511

Partnership 40(93.0) 2(4.7) 1(2.3) 43(100)

Company 18(94.7) 1(5.3) 0(0.0) 19(100)

Tu

rnover

Below Rs 5

crore 36(94.7) 2(5.3) 0(0.0) 38(100)

χ² = 3.820

d.f. = 4

Sig. =

0.431

Rs 5-15 crore 30(96.8) 1(3.2) 0(0.0) 31(100)

Above Rs 15

crore 30(96.8) 0(0.0) 1(3.2) 31(100)

Total 96(96.0) 3(3.0) 1(1.0) 100(100)

Organisation set-up-wise, analysis reveals that all the respondents from

proprietorship form of organisation (100 per cent) have been repaying on „monthly‟

basis, followed by respondents from company (94.7 per cent) and partnership concern

(93.0 per cent). Further, 5.3 per cent of the respondents from partnership concern have

been paying instalments on „quarterly‟ basis. The significance value (0.511) is greater


difference exists between organisations set up as regards the repayment schedule of

the bank.

Turnover-wise, table highlights that (96.8 per cent each) of the respondents

generating turnover of Rs 5 to 15 crore and above Rs 15 crore have been repaying on

„monthly‟ basis while, 5.3 per cent of the respondents with turnover below Rs 5 crore

have been paying instalments on „quarterly‟ basis. The significance value (0.431) is


difference exists among different turnover categories of the bank as far as repayment

schedule of the bank is concerned.

202

RESPONDENTS OPINION ABOUT ADEQUACY OF LOAN AMOUNT

The amount of loan granted by the bank should be sufficient to meet the

requirements of the borrower. If the bank grants insufficient amount of loan then

borrower has to make good the insufficiency through other sources in order to fulfil

their needs. So, to know the adequacy of the loan amount supplied by SIDBI, the

respondents were asked to give their opinion about the same. Table 7.24 shows the

branch-wise, organisation set up-wise and turnover-wise classification of the

respondents in this context.

Table 7.24

Respondents Opinion about Adequacy of Loan Amount

Bra

nch


Jalandhar 29(85.3) 5(14.7) 34(100) χ²= 1.342

d.f. = 2

Sig. = 0.511

Ludhiana 31(93.9) 2(6.1) 33(100)

Chandigarh 29(87.9) 4(12.1) 33(100)

Set

-up


d.f. = 2

Sig. = 0.127

Partnership 25(80.6) 6(19.4) 31(100)

Company 30(96.8) 1(3.2) 31(100)

Tu

rnover

Below Rs 5

crore 32(84.2) 6(15.8) 38(100)

χ² = 6.157

d.f. = 2

Sig. = 0.046

Rs 5-15 crore 42(97.7) 1(2.3) 43(100)

Above Rs 15

crore 15(78.9) 4(21.1) 19(100)

Total 89(89.0) 11(11.0) 100(100)

Table 7.24 indicates that majority of the respondents (89 per cent) have got the

full amount of loan as applied while, 11 per cent of the respondents have to meet their

partial requirement from other sources also. The maximum number of respondents

fulfils their requirements from their own savings and some of them borrowed from

their friends/relatives and from other institutions. Branch-wise, table shows that

highest number of respondents who got full amount of loan as applied have those

financed by Ludhiana branch (93.9 per cent), followed by respondents from

Chandigarh branch (87.9 per cent) and Jalandhar branch (85.3 per cent). The highest

number of respondents who got partial amount of loan as applied have those financed

203

by Jalandhar branch (14.7 per cent). The significance value (0.511) is greater than

0.05 at 5 per cent level of significance, which indicates that no significant difference

exists among different branches of the bank as regards adequacy of loan amount

sanctioned.

Organisation set-up-wise, table depicts that a large number of respondents

who got adequate amount of loan belong to company form of organisation (96.8 per

cent). It is followed by respondents from proprietorship concern (89.5 per cent) and

by those from partnership concern (80.6 per cent). Further, the highest number of

respondents belong to partnership form of organisation (19.4 per cent) have got

inadequate amount of loan from the bank. The significance value (0.127) is greater


difference exists among different organisation set up regarding adequacy of the loan

amount sanctioned by the bank.

Turnover-wise, the analysis reveals that the highest level of satisfaction

regarding adequacy of loan amount have shown by respondents with turnover of Rs 5

to 15 crore (97.7 per cent), followed by those whose turnover is below Rs 5 crore

(84.2 per cent) and above Rs 15 crore (78.9 per cent). Further, 21.1 per cent of the

respondents generating turnover above Rs 15 crore, possess highest share amongst

those who did not get full amount of loan from the bank. The significance value

(0.046) is less than 0.05 at 5 per cent level of significance, which implies that

significant differences exist between different turnover categories of the bank with

regard to adequacy of loan amount sanctioned by SIDBI.

FUNDS FINANCED BY RESPONDENTS FROM THEIR OWN RESOURCES

All the banks usually finance major proportion of the project cost and the

remaining share has to be contributed by the borrower. Likewise, SIDBI also grants

assistance through contributing about its three-forth share in the project cost and the

balance would be met by the borrowers out of their own resources. In order to

examine the percentage of funds financed by respondents out of their own resources,

they were asked to give their opinion about the same. Branch-wise, organisation set

up-wise and turnover-wise response of the respondents in this regard have been given

in Table 7.25.

204

Table 7.25

Funds Financed by Respondents from their Own Resources B

ran

ch

Upto 25% Above

25%

Total Chi-Square

Jalandhar 30(88.2) 4(11.8) 34(100) χ²= 2.564

d.f. = 2

Sig. = 0.633

Ludhiana 24(72.7) 9(27.3) 33(100)

Chandigarh 27(81.8) 6(18.2) 33(100)

Set

-up


d.f. = 2

Sig. = 0.633

Partnership 28(83.9) 5(16.1) 33(100)

Company 22(84.62) 4(15.38) 36(100)

Tu

rnover

Below Rs 5

crore 28(73.70) 10(26.30)

38(100)

χ² = 4.988

d.f. = 2

Sig. = 0.289

Rs 5-15 crore 37(86.00) 6(14.0) 43(100)

Above Rs 15

crore 16(84.20) 3(15.8)

19(100)

Total 81(81.0) 19(19.0) 100(100)

It is evident from the table that majority of the respondents (81 per cent) have

contributed „up to 25 per cent‟ of the project cost out of their own funds, while 19 per

cent of the respondents have contributed „above 25 per cent‟ as regards same. Branch-

wise, analysis reveals that highest number of respondents financed by Jalandhar

branch (88.2 per cent) have contributed „upto 25 per cent‟ of the project cost,

followed by Chandigarh branch (81.8 per cent) and Ludhiana branch (72.7 per cent).

The highest number of respondents who contributed „above 25 per cent‟ of the project

cost out of own resources were those financed by Ludhiana branch (27.3 per cent).

The significance value (0.633) is greater than 0.05 at 5 per cent level of significance,


bank as regards the funds financed by beneficiaries out of their own resources.

Organisation set up-wise, table depicts that majority of the respondents who

have contributed „upto 25 per cent‟ of the project cost belong to company form of

organisation (84.62 per cent), followed by partnership (83.9 per cent) and

proprietorship (73.7 per cent). It has also been observed that 26.3 per cent of the

respondents belong to proprietorship concern got highest share amongst those who

205

contributed „above 25 per cent‟ of the project cost out of their own resources. The


which indicates that no significant difference exists among different organisation set

up regarding the funds financed by beneficiaries out of their own resources.

Turnover-wise, analysis revealed that highest number of the respondents (86.0

per cent) with turnover of Rs 5 to 15 crore have contributed „upto 25 per cent‟ of the

project cost. The maximum percentage of respondents contributed „above 25 per cent‟

of project cost were those with turnover below Rs 5 crore (26.3 per cent). The


which implies that no significant difference exists between different turnover

categories of the bank with respect to funds financed by beneficiaries out of their own

resources.

PRE-VISIT BY BANK OFFICIALS

It is required that proper inspection to be made by the bank authorities before

granting loan to its borrowers. This must be done to ensure that loan amount should

be utilised by the borrower for designated purpose as stated than otherwise. To

ascertain whether the bank authorities made pre-visit prior to the sanction of loan, the

respondents were asked to give their response in this regard. Table 7.26 shows the

response of respondents surveyed in this context.

Table 7.26

Pre-Visit by Bank Officials

Branch Yes No

Chandigarh 33 (33) 0

Ludhiana 33 (33) 0

Jalandhar 34 (34) 0

Total 100 (100) 0

The table shows that all the respondents have given their consent that the bank

authorities made a pre-visit prior to the sanction of loan. The respondents belong to all

the three branches ensured that pre-visit was made by bank authorities before granting

loan to them.

206

PROBLEMS FACED BY RESPONDENTS IN SANCTION AND

DISBURSEMENT OF LOAN

It is obligatory for all the banks to follow guidelines specified by RBI before

making sanction and disbursement of loan to borrowers. So, every bank takes some

time in processing loan as per the criteria laid down. So, to know the problems faced

by respondents in availing loan from SIDBI, they were asked to give their opinion

about it. Table 7.27 highlights branch-wise, organisation set up-wise and turnover-

wise distribution of respondent‟s opinion in this context.

Table 7.27 depicts that a significant proportion of the respondents (95 per

cent) have not faced any problem while getting loan from the bank. Whereas, 5 per

cent of the respondents viewed procedural formalities, insufficient information

provided by the staff and inefficient working system as major constraints while

getting loan from the bank. Branch-wise, table shows that a large proportion of

respondents financed by Jalandhar branch (97.1 per cent) have faced no problem in

availing loan from the bank. It is followed by respondents financed by Chandigarh

branch (97.0 per cent) and Ludhiana branch (90.9 per cent). The highest number of

respondents financed by Ludhiana branch (9.1 per cent) faced problems as regards

same. The significance value (0.420) is greater than 0.05 at 5 per cent level of

significance, which implies that no significant difference exists among different

branches of the bank with regard to problems faced by respondents in availing loan

from the bank.

Table 7.27

Problems Faced by Respondents in Sanction and Disbursement of Loan

Bra

nch


Jalandhar 1(2.9) 33(97.1) 34(100) χ²= 1.736

d.f. = 2

Sig. = 0.420

Ludhiana 3(9.1) 30(90.9) 33(100)

Chandigarh 1(3.0) 32(97.0) 33(100)

Set

-up


d.f. = 2

Sig. = 0.295

Partnership 2(6.5) 29(93.5) 31(100)

Company 0(0.0) 31(100) 31(100)

Tu

rnover

Below Rs 5

crore 2(5.3) 36(94.7) 38(100)

χ² = 1.875

d.f. = 2

Sig. = 0.392

Rs 5-15 crore 1(2.3) 42(97.7) 43(100)

Above Rs 15

crore 2(10.5) 17(89.5) 19(100)

Total 5(5.0) 95(95.0) 100(100)

207

Organisations set up wise, table indicates that all the respondents form

company form of organisation (100 per cent) have not faced any problem in availing

loan from the bank. It is followed by respondents from partnership firm (93.5 per

cent) and proprietorship firm (92.1 per cent). Further, the maximum number of

respondents belong to proprietorship business (7.9 per cent) faced problems in this

regard. The significance value (0.295) is greater than 0.05 at 5 per cent level of

significance, which implies that no significant difference exists between different

organisation set up as regards problems faced by respondents in getting loan from

SIDBI.

Turnover-wise, analysis revealed that maximum number of respondents

generating turnover of Rs 5 to 15 core (97.7 per cent) have not faced any problem in

availing loan from the bank. It is followed by respondents with turnover below Rs 5

crore (94.7 per cent) and above Rs 15 crore (89.5 per cent). Further, 10.5 per cent of

the respondents receiving turnover above Rs 15 crore possess the highest share

amongst those who experienced difficulty while getting loan from the bank. The


which indicates that no significant difference exists among different turnover

categories of the bank with regard to problems faced by respondents in availing loan

from the bank.

REBATE OFFERED BY THE BANK FOR TIMELY REPAYMENT OF LOAN

Some banks provide concession to their respondents having good track record in

repayment of loan. SIDBI also provides concession to its premium customers who

have been dealing with the bank from more than 5 years and whose loan amount

varies between Rs 1 crore or more on the basis of the criteria followed as regards

same. Table 7.28 highlights the responses of the respondents in this context.

Table 7.28

Rebate Offered by Bank for Timely Repayment of Loan

Branch Yes No

Chandigarh 0 33 (33)

Ludhiana 0 33 (33)

Jalandhar 0 34 (34)

Total 0 100 (100)

208

Table 7.28 shows that all the respondents belong to three branches were not

offered rebate by the bank for paying instalments on time. This is so because these

respondents were not covered under the criteria specified by SIDBI for granting

concession for timely repayment of loan.

AWARENESS REGARDING PROJECT APPRAISAL PROCESS

SIDBI undertakes appraisal of projects for examining the viability and

bankability of the projects through its project appraisal process. SIDBI evaluates the

techno-financial viability of the project before granting loan to the borrowers. To

know the level of awareness regarding the project appraisal process, respondents were

asked to give their assent with respect to same. Table 7.29 depicts the branch-wise,

organisation set up-wise and turnover-wise classification of the respondents regarding

awareness of project appraisal process.

Table 7.29

Awareness Regarding Project Appraisal Process

Bra

nch


Jalandhar 12(35.3) 22(64.7) 34(100) χ²= 0.951

d.f. = 2

Sig. = 0.622

Ludhiana 15(45.5) 18(54.5) 33(100)

Chandigarh 15(45.5) 18(54.5) 33(100)

Set

-up


d.f. = 2

Sig. = 0.332

Partnership 10(32.3) 21(67.7) 31(100)

Company 13(41.9) 18(58.1) 31(100)

Tu

rnover

Below Rs 5

crore 20(52.6) 18(47.4)

38(100)

χ² = 3.015

d.f. = 2

Sig. = 0.221

Rs 5-15 crore 16(37.2) 27(62.8) 43(100)

Above Rs 15

crore 6(31.6) 13(68.4)

19(100)

Total 42(42.0) 58(58.0) 100(100)

It is evident from Table 7.29 that majority of the respondents (58 per cent) are

not aware of the projects appraisal process of the bank, while 42 per cent of the

respondents have awareness regarding the same. Branch-wise, analysis indicates that

45.5 per cent each of the respondents financed by Ludhiana and Chandigarh branch

have knowledge about project appraisal process, followed by respondents from

Jalandhar branch (35.3 per cent). The majority of the respondents financed by

Jalandhar branch (64.7 per cent) have no information as regards same. The


209


bank with respect to awareness regarding project appraisal process of the bank.

Organisation set up-wise, the table shows that highest number of respondents

having awareness regarding project appraisal process conducted by the bank belongs

to proprietorship form of organisation (50.0 per cent). The majority of the respondents

(67.7 per cent) from partnership form of organisation have no knowledge regarding

the same. The significance value (0.332) is greater than 0.05 at 5 per cent level of

significance, which indicates that no significant difference exists between

organisation set up with regard to awareness about project appraisal process of SIDBI.

Turnover-wise, Table 7.29 highlights that the highest level of awareness

regarding project appraisal process have shown by respondents generating turnover

below Rs 5 crore (52.6 per cent). Further, a large number of respondents (68.4 per

cent) with turnover above Rs 15 crore have no knowledge as regards same. The


which indicates that no significant difference exists between different turnover

categories of the bank with respect to awareness regarding project appraisal process of

the bank.

RESPONDENTS OPINION REGARDING PROJECT APPRAISAL PROCESS

As stated above, that the bank conducts feasibility analysis to know the

viability of the project. So, to examine the opinion of the respondents regarding the

appropriateness of project appraisal process, they were asked to give their response in

this regard. Table 7.30 shows the branch-wise, organisation set up-wise and turnover-

wise distribution of the respondents in this context.

Table 7.30

Respondents Opinion Regarding Project Appraisal Process

Bra

nch


Jalandhar 32(94.1) 2(5.9) 34(100) χ²= 1.533

d.f. = 2

Sig. = 0.465

Ludhiana 28(84.8) 5(15.2) 33(100)

Chandigarh 29(87.9) 4(12.1) 33(100)

Set

-up


d.f. = 2

Sig. = 0.198

Partnership 25(80.6) 6(19.4) 31(100)

Company 29(93.5) 2(6.5) 31(100)

Tu

rnover

Below Rs 5

crore 31(81.6) 7(18.4) 38(100)

χ² = 3.912

d.f. = 2

Sig. = 0.141

Rs 5-15 crore 41(95.3) 2(4.7) 43(100)

Above Rs 15

crore 17(89.5) 2(10.5) 19(100)

Total 89(89.0) 11(11.0) 100(100)

210

Table 7.30 indicates that despite of less awareness about the project appraisal

process, majority of the respondents (89 per cent) have favourable opinion about the

appraisal process while, 11 per cent of the respondents have shown their disagreement

towards the proper conduct of the appraisal process by the bank officials. Branch-

wise, table depicts that a vast majority of the respondents financed by Jalandhar

branch (94.1 per cent) have given their positive response regarding the project

appraisal process conducted by the bank. It is followed by Chandigarh branch (87.9

per cent) and Ludhiana branch (84.8 per cent). Further, 15.2 per cent of the

respondents financed by Ludhiana branch have maximum percentage among those

who have given negative response as regards same. The significance value (0.465) is


difference exists among different branches of the bank as regards appropriateness of

the project appraisal process of the SIDBI.

Organisation set up-wise, analysis revealed that a significant proportion of

respondents belong to company form of organisation (93.5 per cent) have given

favourable opinion about the appraisal process, whereas the highest number of

respondents belong to partnership concern (19.4 per cent) have given unfavourable

opinion in this context. The significance value (0.198) is greater than 0.05 at 5 per


between different organisation set up as far as appropriateness of the project appraisal

process of the SIDBI, is concerned.

Turnover-wise, table highlights that a large proportion of respondents

generating turnover of Rs 5 to 15 crore (95.3 per cent), have given their positive

response about the appropriateness of the project appraisal process. Further, 18.4 per

cent of respondents generating turnover below Rs 5 crore possess highest share

amongst those respondents who have given their negative opinion in this regard. The



categories of the bank as regards appropriateness of the project appraisal process of

the bank.

211

TRAINING PROGRAMMES CONDUCTED BY ENTREPRENEURS FOR

WORKERS

Most of the MSME units provide training to their workers so as to enhance

their skill and efficiency. These training programmes were either arranged in-house

(i.e. within enterprise) or given through external agencies run by N.G.O.‟s, Industries

Association, government institutions etc. In this context, opinion of the entrepreneurs

has been taken to know their level of concern for increasing the efficiency of workers

employed by them in their industrial concerns. Table 7.31 depicts the branch-wise,

organisation set up-wise and turnover-wise classification of the respondents with

respect to the same.

Table 7.31

Training Programme Conducted By Entrepreneurs for Workers

Bra

nch


Jalandhar 23(67.6) 11(32.4) 34(100) χ²= 1.744

d.f. = 2

Sig. = 0.418

Ludhiana 20(60.6) 13(39.4) 33(100)

Chandigarh 25(75.8) 8(24.2) 33(100)

Set

-up


d.f. = 2

Sig. = 0.845

Partnership 21(67.7) 10(32.3) 31(100)

Company 20(64.5) 11(35.5) 31(100)

Tu

rnover

Below Rs 5

crore 25(65.8) 13(34.2)

38(100)

χ² = 2.916

d.f. = 2

Sig. = 0.233

Rs 5-15 crore 27(62.8) 16(37.2) 43(100)

Above Rs 15

crore 16(84.2) 3(15.8)

19(100)

Total 68(68.0) 32(32.0) 100(100)


have arranged training for their workers, while 32 per cent of the respondents usually

hire only trained workers so as to avoid the cumbersome procedure of conducting

training programme at their industrial unit. The analysis also disclosed that all the

respondents surveyed have given their positive consent in regard to that training result

in increasing the skill and efficiency of their workers. Branch-wise, table shows that

212

highest number of respondents financed by Chandigarh branch (75.8 per cent) have

given training to their workers, followed by Jalandhar branch (67.6 per cent) and

Ludhiana branch (60.6 per cent). Further, 39.4 per cent of the respondents financed by

Ludhiana branch possess highest share amongst those who did not arrange any

training for their workers. The significance value (0.418) is greater than 0.05 at 5 per

cent level of significance, which implies that no significant difference exists among

different branches of the bank as regards training programmes conducted by

entrepreneurs for its workers.

Organisation set up-wise, analysis shows that a large number of respondents

provided training to their workers belong to proprietorship form of organisation (71.1

per cent), followed by partnership (67.7 per cent) and company (64.5 per cent). The

maximum number of respondents (35.5 per cent) belong to company form of

organisation who did not provide training to their workers. The significance value

(0.845) is greater than 0.05 at 5 per cent level of significance, which indicates that no

significant difference exists between different organisation set up as regards training

programmes conducted by entrepreneurs for its workers.

Turnover-wise, table indicates that a significant proportion of respondents

whose turnover is above Rs 15 crore (84.2 per cent) have arranged training for their

workers. Further, 37.2 per cent respondents receiving turnover of Rs 5 to 15 crore

possess highest share amongst those who did not provide training to their workers.

The significance value (0.233) is greater than 0.05 at 5 per cent level of significance,


categories of the bank with regard to training programmes conducted by entrepreneurs

for its workers.

AWARENESS REGARDING SUBSIDY SCHEMES

The bank provides subsidy to entrepreneurs under two Government subsidy

schemes namely, Credit Linked Capital Subsidy Scheme (CLCSS) and Credit Linked

Capital Subsidy-Textile Upgradation Fund Scheme (CLCS-TUFS). The respondents

were asked to give their opinion about their awareness as regards same. Table 7.32

and 7.33 show the branch-wise, organisation set up-wise and turnover-wise response

of the respondents with respect to the same.

213

Table 7.32

Awareness Regarding Credit Linked Capital Subsidy Scheme (CLCSS) B

ran

ch


Jalandhar 24(70.6) 10(29.4) 34(100) χ²= 2.074

d.f. = 2

Sig. = 0.355

Ludhiana 27(81.8) 6(18.2) 33(100)

Chandigarh 22(66.7) 11(33.3) 33(100)

Set

-up


d.f. = 2

Sig. = 0.843

Partnership 22(71.0) 9(29.0) 31(100)

Company 22(71.0) 9(29.0) 31(100)

Tu

rnover

Below Rs 5

crore 28(73.7) 10(26.3) 38(100)

χ² = 0.578

d.f. = 2

Sig. = 0.749

Rs 5-15 crore 30(69.8) 13(30.2) 43(100)

Above Rs 15

crore 15(78.9) 4(21.1) 19(100)

Total 73(73.0) 27(27.0) 100(100)

Table 7.32 shows that majority of the respondents (73 per cent) have

awareness regarding CLCSS, while 27 per cent of the respondents have unawareness

as regards same. Branch-wise, the highest level of awareness regarding CLCSS have

shown by respondents financed by Ludhiana branch (81.8 per cent), followed by

Jalandhar branch (70.6 per cent) and Chandigarh branch (66.7 per cent). It has also

been observed that 33.3 per cent of the respondents financed by Chandigarh branch

have not been aware regarding the CLCSS. The significance value (0.355) is greater


difference exists among different branches of the bank as regards awareness about

CLCSS.

Organisation set up-wise, analysis indicates that maximum number of

respondents having knowledge about the CLCSS, belong to proprietorship form of

organisation (76.3 per cent), followed by partnership and company (71.0 per cent

each). Further, 29.0 per cent each of the respondents have unawareness regarding the

CLCSS belong to partnership and company form of organisation. The significance


that no significant difference exists between different organisation set up as regards

awareness about CLCSS.

214

Turnover-wise, table highlights that the highest level of awareness regarding

subsidy scheme has shown by respondents generating turnover above Rs 15 crore

(78.9 per cent). Further, 30.2 per cent of the respondents generating turnover of Rs 5

to 15 crore have shown the highest level of unawareness as regards the same. The



categories of the bank with regard to awareness about CLCSS.

Table 7.33

Awareness Regarding Credit Linked Capital Subsidy-Textile Upgradation Fund

Scheme (CLCS-TUFS)

Bra

nch


Jalandhar 20(58.8) 14(41.2) 34(100) χ²= 1.040

d.f. = 2

Sig. = 0.595

Ludhiana 18(54.5) 15(45.5) 33(100)

Chandigarh 22(66.7) 11(33.3) 33(100)

Set

-up


d.f. = 2

Sig. = 0.482

Partnership 16(51.6) 15(48.4) 31(100)

Company 19(61.3) 12(38.7) 31(100)

Tu

rnover

Below Rs 5

crore 25(65.8) 13(34.2) 38(100)

χ² = 1.023

d.f. = 2

Sig. = 0.600

Rs 5-15 crore 25(58.1) 18(41.9) 43(100)

Above Rs 15

crore 10(52.6) 9(47.4) 19(100)

Total 60(60.0) 40(40.0) 100(100)

Table 7.33 depicts that proportionately 60 per cent of the respondents have

knowledge about CLCS-TUFS, while 40 per cent of the respondents have no

knowledge about the scheme. Branch-wise, analysis reveals that the highest level of

awareness regarding CLCS-TUFS have shown by respondents financed by

Chandigarh branch (66.7 per cent), followed by Jalandhar branch (58.8 per cent) and

Ludhiana branch (54.5 per cent). Further, majority of the respondents financed by

Ludhiana branch (45.5 per cent) have unawareness regarding the scheme. The



bank as regards awareness about CLCS-TUFS.

215

Organisation set up-wise, table shows that maximum number of respondents

from proprietorship form of organisation (65.8 per cent) have information about the

CLCSS-TUFS, followed by company (61.3 per cent) and partnership (51.6 per cent).

Further, 48.4 per cent of the respondents from partnership form of organisation have

no knowledge about the scheme. The significance value (0.482) is greater than 0.05 at

5 per cent level of significance, which indicates that no significant difference exists

among different organisation set up regarding awareness about CLCS-TUFS.

Turnover-wise, table highlights that maximum level of awareness regarding

CLCSS-TUFS has shown by respondents generating turnover below Rs 5 crore (65.8

per cent). Further, 47.4 per cent of the respondents generating turnover above Rs 15

crore possess the highest share amongst those having unawareness regarding CLCSS-

TUFS. The significance value (0.600) is greater than 0.05 at 5 per cent level of

significance, which indicates that no significant difference exists between different

turnover categories of the bank as far as awareness regarding CLCS-TUFS, is

concerned.

RESPONDENTS OPINION REGARDING INFORMATION PROVIDED BY

SIDBI ABOUT SUBSIDY SCHEMES.

The basic motive of entrepreneurs behind approaching SIDBI for availing loan

is subsidy. The bank through government subsidy schemes provides additional

assistance to entrepreneurs seeking investment in fixed assets. So, to examine the

respondent‟s opinion regarding information provided by SIDBI about the subsidy

schemes available, they were asked to give their response in this regard. Branch-wise,

organisation set up-wise and turnover-wise opinion of the respondents in this context

have been given in Table 7.34.

216

Table 7.34

Respondents Opinion Regarding Information Provided by SIDBI about

Subsidy Schemes

Bra

nch


Jalandhar 31(91.2) 3(8.8) 34(100) χ²= 3.443

d.f. = 2

Sig. = 0.179

Ludhiana 29(87.9) 4(12.1) 33(100)

Chandigarh 25(75.8) 8(24.2) 33(100)

Set

-up


d.f. = 2

Sig. = 0.755

Partnership 27(87.1) 4(12.9) 31(100)

Company 27(87.1) 4(12.9) 31(100)

Tu

rno

ver

Below Rs 5

crore 31(81.6) 7(18.4) 38(100)

χ² = 1.990

d.f. = 2

Sig. = 0.370

Rs 5-15 crore 39(90.7) 4(9.3) 43(100)

Above Rs 15

crore 15(78.9) 4(21.1) 19(100)

Total 85(85.0) 15(15.0) 100(100)

It is evident from the table that vast majority of the respondents (85 per cent)

have been informed by the bank regarding the subsidy schemes, while 15 per cent of

the respondents have got no intimation as regards same. Branch-wise, table depicts

that highest level of information obtained through bank about subsidy schemes has

shown by respondents financed by Jalandhar branch (91.2 per cent), followed by

Ludhiana branch (87.9 per cent) and Chandigarh branch (75.8 per cent). Further, the

highest number of respondents financed by Chandigarh branch (24.2 per cent) has got

no information from SIDBI in this context. The significance value (0.179) is greater


difference exists among different branches of the bank as regards information

provided by the bank about subsidy schemes.

Organisation set up-wise, analysis reveals that a large number of respondents

from partnership and company form of organisation (87.1 per cent each) have been

informed by the bank about subsidy schemes. Further, 18.4 per cent of the

respondents from proprietorship form of organisation got highest share amongst those

who have not been informed by the bank as regards same. The significance value

217

(0.755) is greater than 0.05 at 5 per cent level of significance, which implies that no

significant difference exists among different organisation set up with regard to

information provided by the bank about subsidy schemes.

Turnover-wise, the table indicates that significant proportion of respondents

generating turnover of Rs 5 to 15 crore (90.7 per cent) have got information about

subsidy schemes from the bank while, 21.1 per cent of the respondents generating

turnover above Rs 15 crore got no information as regards same. The significance


that no significant difference exists between different turnover categories of the bank

with respect to information provided by the bank about subsidy schemes.

AWARENESS REGARDING DEVELOPMENT PROGRAMMES

The bank grants assistance for organising various development programmes

for upgradation of human resource. These programmes have been executed through

various N.G.O.‟s government institutions or Industries Association associated with

the bank. So, to know the level of awareness regarding development programmes

organised through bank, viz. Micro Enterprise Promotion Programmes (MEPPs),

Entrepreneurship Development Programmes (EDPs), Management Development

Programmes (MDPs) and Technology Upgradation Programmes (TUPs) respondents

were asked to give their assent in this context. Table 7.35, 7.36, 7.37 and 7.38 show

the branch-wise, organisation set up-wise and turnover-wise distribution of the

respondents about awareness regarding development programmes organised through

SIDBI.


have awareness regarding MEPPs, while 31 per cent of the respondents have no

knowledge as regards same. Branch-wise, the significant level of awareness regarding

MEPPs have been shown by respondents financed by Chandigarh branch (87.9 per

cent), followed by Ludhiana branch (66.7 per cent) and Jalandhar branch (52.9 per

cent). Further, the highest number of respondents financed by Jalandhar branch (47.1

per cent) have no awareness regarding the MEPPs. The significance value (0.008) is

less than 0.05 at 5 per cent level of significance, which indicates that significant

difference exists among different branches of the bank as regards awareness about

MEPPs conducted through SIDBI.

218

Table 7.35

Awareness Regarding Micro Enterprise Promotion Programme (MEPPs) B

ran

ch


Jalandhar 18(52.9) 16(47.1) 34(100) χ²= 9.682

d.f. = 2

Sig. = 0.008

Ludhiana 22(66.7) 11(33.3) 33(100)

Chandigarh 29(87.9) 4(12.1) 33(100)

Set

-up


d.f. = 2

Sig. = 0.465

Partnership 20(64.5) 11(35.5) 31(100)

Company 20(64.5) 11(35.5) 31(100)

Tu

rnover

Below Rs 5

crore 26(68.4) 12(31.6) 38(100)

χ² = 1.188

d.f. = 2

Sig. = 0.552

Rs 5-15 crore 28(65.1) 15(34.9) 43(100)

Above Rs 15

crore 15(78.9) 4(21.1) 19(100)

Total 69(69.0) 31(31.0) 100(100)

Organisation set up-wise, analysis depicts that highest level of awareness

regarding MEPPs have shown by respondents from proprietorship form of

organisation (76.3 per cent), followed by partnership and company form of

organisation (64.5 per cent each). Further, 35.5 per cent each of the respondents

belongs to partnership and company form of organisation have no knowledge about

the MEPPs. The significance value (0.465) is greater than 0.05 at 5 per cent level of


organisations set up with respect to awareness about MEPPs conducted through the

bank.

Turnover-wise, the table highlights that highest level of awareness regarding

MEPPs have shown by respondents generating turnover above Rs 15 crore (78.9 per

cent) whereas, 34.9 per cent of the respondents receiving turnover of Rs 5 to 15 crore

have unawareness as regards same. The significance value (0.552) is greater than 0.05


between different turnover categories of the bank as regards awareness about MEPPs

conducted through SIDBI.

219

Table 7.36

Awareness Regarding Entrepreneurship Development Programmes (EDPs) B

ran

ch


Jalandhar 32(94.1) 2(5.9) 34(100) χ²= 25.245

d.f. = 2

Sig. = 0.000

Ludhiana 32(97.0) 1(3.0) 33(100)

Chandigarh 18(54.5) 15(45.5) 33(100)

Set

-up


d.f. = 2

Sig. = 0.051

Partnership 26(83.9) 5(16.1) 31(100)

Company 29(93.5) 2(6.5) 31(100)

Tu

rnover

Below Rs 5

crore 29(76.3) 9(23.7) 38(100)

χ² = 1.637

d.f. = 2

Sig. = 0.441

Rs 5-15 crore 36(83.7) 7(16.3) 43(100)

Above Rs 15

crore 17(89.5) 2(10.5) 19(100)

Total 82(82.0) 18(18.0) 100(100)

Table 7.36 highlights that a large proportion of respondents (82 per cent) have

knowledge regarding the EDPs, while 18 per cent of the respondents lack awareness

in this regard. Branch-wise, table depicts that vast majority of the respondents

financed by Ludhiana branch (97.0 per cent) have awareness regarding the EDPs

organised through bank, followed by Jalandhar branch (94.1 per cent) and Chandigarh

branch (54.5 per cent). The highest number of the respondents financed by

Chandigarh branch (45.5 per cent) have no information as regards same. The


indicates that significant differences exist among different branches of the bank as far

as awareness about EDPs organised through the bank are concerned.

Organisation set up-wise, analysis reveals that highest level of awareness

regarding EDPs have shown by respondents from company form of organisation (93.5

per cent), followed by partnership (83.9 per cent) and proprietorship (71.1 per cent).

Further, 28.9 per cent of the respondents belong to proprietorship concern got the

highest share amongst those having unawareness regarding the same. The significance


that no significant difference exists between different organisation set up as regards

awareness about EDPs organised through the bank.

220

Turnover-wise, table highlights that maximum level of awareness about EDPs

have shown by respondents with turnover above Rs 15 crore (89.5 per cent), while

23.7 per cent of the respondents generating turnover below Rs 5 crore have shown

unawareness as regards same. The significance value (0.441) is greater than 0.05 at 5

per cent level of significance, which indicates that no significant difference exists

among different turnover categories of the bank with regard to awareness about EDPs

organised through the bank.

Table 7.37

Awareness Regarding Management Development Programmes (MDPs)

Bra

nch


Jalandhar 17(50.0) 17(50.0) 34(100) χ²= 8.460

d.f. = 2

Sig. = 0.015

Ludhiana 22(66.7) 11(33.3) 33(100)

Chandigarh 17(51.5) 16(48.5) 33(100)

Set

-up


d.f. = 2

Sig. = 0.839

Partnership 18(58.1) 13(41.9) 31(100)

Company 16(51.6) 15(48.4) 31(100)

Tu

rnover

Below Rs 5

crore 21(55.3) 17(44.7) 38(100)

χ² = 2.302

d.f. = 2

Sig. = 0.316

Rs 5-15 crore 27(62.8) 16(37.2) 43(100)

Above Rs 15

crore 8(42.1) 11(57.9) 19(100)

Total 56(56.0) 44(44.0) 100(100)

It is evident from Table 7.37 that 56 per cent of the respondents have

awareness regarding the MDPs organised by the bank, while 44 per cent of the

respondents have no information as regards the same. Branch-wise, the highest level

of awareness regarding MDPs have shown by respondents financed by Ludhiana

branch (66.7 per cent), followed by Chandigarh branch (51.5 per cent) and Jalandhar

(50.0 per cent). Further, 50 per cent of the respondents financed by Jalandhar branch

have no information as regards same. The significance value (0.015) is less than 0.05

at 5 per cent level of significance, which indicates that significant differences exist

among different branches of the bank as regards awareness about MDPs organised

through the bank.

221

Organisation set up-wise, table depicts that maximum level of awareness

regarding MDPs have shown by respondents belong to partnership form of

organisation (58.1 per cent). Further, 48.4 per cent of respondents from company form

of organisation possess highest share amongst those having no knowledge about the

MDPs organised by the bank. The significance value (0.839) is greater than 0.05 at 5


between different organisation set up as far as awareness regarding MDPs organised

through the bank are concerned.

Turnover-wise, the table shows that highest level of awareness regarding

MDPs have shown by respondents generating turnover of Rs 5 to 15 crore (62.8 per

cent). Further, majority of the respondents (57.9 per cent) generating turnover above

Rs 15 crore have unawareness as regards same. The significance value (0.316) is


difference exists among different turnover categories of the bank as regards awareness

about MDPs organised through the bank.

Table 7.38 highlights that 49 per cent of the respondents have shown

awareness regarding TUPs conducted by the bank, while 51 per cent of the

respondents have no knowledge about the same. Branch-wise, table indicates that 58.8

per cent of the respondents financed by Jalandhar branch have information about the

TUPs of the bank. It is followed by respondents financed by Chandigarh branch (45.5

per cent) and Ludhiana branch (42.4 per cent). The majority of the respondents

financed by Ludhiana branch (57.6 per cent) have shown unawareness about the

TUPs organised by the bank. The significance value (0.359) is greater than 0.05 at 5


among different branches of the bank as regards awareness about TUPs organised

through the bank.

222

Table 7.38

Awareness Regarding Technology Upgradation Programmes (TUPs) B

ran

ch


Jalandhar 20(58.8) 14(41.2) 34(100) χ²= 2.050

d.f. = 2

Sig. = 0.359

Ludhiana 14(42.4) 19(57.6) 33(100)

Chandigarh 15(45.5) 18(54.5) 33(100)

Set

-up


d.f. = 2

Sig. = 0.868

Partnership 16(51.6) 15(48.4) 31(100)

Company 14(45.2) 17(54.8) 31(100)

Tu

rnover

Below Rs 5

crore 19(50.0) 19(50.0) 38(100)

χ² = 0.222

d.f. = 2

Sig. = 0.895

Rs 5-15 crore 20(46.5) 23(53.5) 43(100)

Above Rs 15

crore 10(52.6) 9(47.4) 19(100)

Total 49(49.0) 51(51.0) 100(100)

Organisation set up-wise, analysis reveals that the highest number of

respondents having awareness regarding the TUPs of the bank belong to partnership

form of organisation (51.6 per cent), followed by proprietorship (50.0 per cent) and

company (45.2 per cent). Further, 54.8 per cent of the respondents from company

form of organisation possess highest share amongst those having no knowledge about

the same. The significance value (0.868) is greater than 0.05 at 5 per cent level of


organisation set up as regards awareness about TUPs organised through SIDBI.

Turnover-wise, table depicts that maximum level of awareness regarding

TUPs of the bank have shown by respondents generating turnover above Rs 15 crore

(52.6 per cent) whereas, the highest number of respondents generating turnover of Rs

5 to 15 crore (53.5 per cent) having no information as regards same. The significance


that no significant difference exists between different turnover categories of the bank

as far as awareness about TUPs organised through the bank are concerned.

223

RESPONDENTS OPINION REGARDING INFORMATION DISSEMINATION

BY SIDBI

Whenever a bank introduces any new product or service, it is required that

information should be provided to its customers about the same. This helps a bank in

enhancing its credibility and worthiness among its customers. In this context,

respondents were asked to given their opinion about information supplied to them by

bank officials about new products or services introduced. It has been observed that

majority of the respondents surveyed have been informed through mail and telephone.

Some respondents got information through personal contact and from bank‟s website.

Branch-wise, organisation set up-wise and turnover-wise responses of the respondents

in this regard have been given in Table 7.39.

Table 7.39

Respondents Opinion Regarding Information Dissemination by SIDBI

Bra

nch


Jalandhar 17(50.0) 17(50.0) 34(100) χ²= 1.416

d.f. = 2

Sig. = 0.493

Ludhiana 21(63.6) 12(36.4) 33(100)

Chandigarh 20(60.6) 13(39.4) 33(100)

Set

-up


d.f. = 2

Sig. = 0.304

Partnership 15(48.4) 16(51.6) 31(100)

Company 21(67.7) 10(32.3) 31(100)

Tu

rnover

Below Rs 5

crore 22(57.9) 16(42.1) 38(100)

χ² = 0.292

d.f. = 2

Sig. = 0.864

Rs 5-15 crore 24(55.8) 19(44.2) 43(100)

Above Rs 15

crore 12(63.2) 7(36.8) 19(100)

Total 58(58.0) 42(42.0) 100(100)

It is evident from the table that majority of the respondents (58 per cent) have

been informed by the bank about new services introduced, while 42 per cent of the

respondents have not been informed by the bank as regards same. Branch-wise, Table

5.41 depicts that maximum number of respondents financed by Ludhiana branch (63.6

per cent) have got information about new products or services introduced. It is

224

followed by respondents financed by Chandigarh branch (60.6 per cent) and Jalandhar

branch (50.0 per cent). Further, highest number of respondents financed by Jalandhar

branch (50.0 per cent) have got no information from bank officials as regards the



branches of the bank regarding information dissemination about its new products or

services introduced.

Organisation set up-wise, table indicates that a large proportion of respondents

from company form of organisation (67.7 per cent) have been informed by the bank,

while 51.6 per cent of the respondents from partnership business have not been

informed by the bank about new products or services introduced. The significance


that no significant difference exists between different organisation set up with regard

to information dissemination by the bank about new products or services introduced.

Turnover-wise, analysis revealed that highest number of respondents

generating turnover above Rs 15 crore (63. 2 per cent) have got information regarding

products or services introduced by the bank. Further, 44.2 per cent of the respondents

with turnover of Rs 5 to 15 crore posses the highest share amongst those who have not

been informed by the bank as regards same. The significance value (0.864) is greater


difference exists among different turnover categories of the bank regarding

information dissemination by the bank about new products or services introduced.

RESPONDENTS OPINION ABOUT SIDBI WEBSITE

To know the respondents opinion regarding adequate and updated information

available on SIDBI website, they were asked to give their assent about the same.

Table 7.40 shows the branch-wise, organisation set up-wise and turnover-wise

distribution of the respondents to know their opinion about the same.

225

Table 7.40

Respondents Opinion about SIDBI Website B

ran

ch


Jalandhar 30(88.2) 4(11.8) 34(100) χ²= 3.757

d.f. = 2

Sig. = 0.153

Ludhiana 23(69.7) 10(30.3) 33(100)

Chandigarh 24(72.7) 9(27.3) 33(100)

Set

-up


d.f. = 2

Sig. = 0.827

Partnership 25(80.6) 6(19.4) 31(100)

Company 23(74.2) 8(25.8) 31(100)

Tu

rnover

Below Rs 5

crore 27(71.1) 11(28.9) 38(100)

χ² = 1.269

d.f. = 2

Sig. = 0.530

Rs 5-15 crore 35(81.4) 8(18.6) 43(100)

Above Rs 15

crore 15(78.9) 4(21.1) 19(100)

Total 77(77.0) 23(23.0) 100(100)

Table 7.40 highlights that majority of the respondents (77 per cent) have given

favourable response about information available on banks website, while 23 per cent

of the respondents have given unfavourable response towards the same. Branch-wise,

analysis revealed that significant level of positive opinion about the information

available on the banks website have been shown by respondents financed by

Jalandhar branch (88.2 per cent), followed by respondents financed by Chandigarh

branch (72.7 per cent) and Ludhiana branch (69.7 per cent). Further, the highest

number of respondents financed by Ludhiana branch (30.3 per cent) have given

negative opinion as regards same. The significance value (0.153) is greater than 0.05


among different branches of the bank with respect to adequate and updated

information available on the bank‟s website.

Organisation set up-wise, table indicates that maximum number of

respondents from partnership form of organisation (80.6 per cent) have been informed

by the bank about new products introduced. It is followed by respondents from

proprietorship (76.3 per cent) and company form of organisation (74.2 per cent).

226

Further, 25.8 per cent respondents from company form of organisation possess

maximum share amongst those who have not been informed by the bank about the



organisation set up as regards adequate and updated information available on the

bank‟s website.

Turnover-wise, table highlights that maximum level of positive response about

availability of information on banks website have been shown by respondents with

turnover of Rs 5 to 15 crore (81.4 per cent), while the highest number of respondents

generating turnover below Rs 5 crore (28.9 per cent) have got no information as

regards same. The significance value (0.530) is greater than 0.05 at 5 per cent level of


turnover categories of the bank with regard to adequate and updated information

available on the SIDBI website.

RESPONDENTS OPINION REGARDING VARIOUS FACTORS

The satisfaction level of respondents regarding various banking aspects has

been determined by using five-point scale. The factors used for evaluating satisfaction

level are location of branch/office, products or schemes offered, loan inquiry,

presence of employees, knowledge of employees, behaviour of employees, time taken

in sanction and disbursement of loan, procedural formalities, documentation required,

project appraisal mechanism, inspection done by the bank officials, conditions

imposed, security required, repayment schedule, moratorium period, services charges,

adequacy of loan, interest rate, customer query services, grievance handling

mechanism. In the present study, the reliability of the statements has been checked by

using Cronbach‟s alpha. The value of Cronbach‟s alpha is 0.912, therefore, it justifies

that rating instrument is reliable. Table 7.41 shows the frequency distribution of

responses of the respondents in this context.

227

Table 7.41

Respondents Satisfaction Level Regarding Various Factors

(N=100)

Banking Aspect Highly

Satisfied Satisfied

Neither

Satisfied Nor

Dissatisfied

Dissatisfied Highly

Dissatisfied

Weighted

Average

Score

Location of

Branch/Office 28 (28.00) 38 (38.00) 15 (15.00) 14 (14.00) 5 (5.00) 3.70

Products or

Schemes Offered 36 (36.00) 37 (37.00) 15 (15.00) 8 (8.00) 4 (4.00) 3.93

Loan Inquiry 39 (39.00) 41 (41.00) 10 (10.00) 7 (7.00) 3 (3.00) 4.06

Presence of

Employees 50 (50.00) 34 (34.00) 11 (11.00) 3 (3.00) 2 (2.00) 4.27

Knowledge of

Employees 50 (50.00) 32 (32.00) 10 (10.00) 4 (4.00) 4 (4.00) 4.20

Behaviour of

Employees 52 (52.00) 35 (35.00) 8 (8.00) 3 (3.00) 2 (2.00) 4.32

Time Taken in

Sanction and

Disbursement of

Loan

34 (34.00) 39 (39.00) 16 (16.00) 7 (7.00) 4 (4.00) 3.92

Procedural

Formalities 32 (32.00) 38 (38.00) 13 (13.00) 11 (11.00) 6 (6.00) 3.79

Documentation

Required 29 (29.00) 33 (33.00) 15 (15.00) 14 (14.00) 9 (9.00) 3.59

Project Appraisal

Mechanism 44 (44.00) 34 (34.00) 12 (12.00) 7 (7.00) 3 (3.00) 4.09

Inspection Done

by the Bank

Officials

49 (49.00) 33 (33.00) 11 (11.00) 4 (4.00) 3 (3.00) 4.21

Conditions

Imposed 34 (34.00) 37 (37.00) 12 (12.00) 10 (10.00) 7 (7.00) 3.81

Security Required 36 (36.00) 41 (41.00) 11 (11.00) 7 (7.00) 5 (5.00) 3.96

Repayment

Schedule 43 (43.00) 47 (47.00) 6 (6.00) 4 (4.00) 0 (.00) 4.29

Moratorium

Period 40 (40.00) 43 (43.00) 11 (11.00) 4 (4.00) 2 (2.00) 4.15

Service Charges 39 (39.00) 31 (31.00) 15 (15.00) 10 (10.00) 5 (5.00) 3.89

Adequacy of Loan 40 (40.00) 36 (36.00) 13 (13.00) 7 (7.00) 4 (4.00) 4.01

Interest Rates 34 (34.00) 35 (35.00) 16 (16.00) 10 (10.00) 5 (5.00) 3.83

Customer Query

Services 44 (44.00) 38 (38.00) 10 (10.00) 6 (6.00) 2 (2.00) 4.16

Grievance

Handling

Mechanism

40 (40.00) 42 (42.00) 8 (8.00) 6 (6.00) 4 (4.00) 4.08

Table 7.41 highlights that majority of the respondents have represented their

satisfaction with regard to repayment schedule (90 per cent), behaviour of employees

(87 per cent), presence of employees (84 per cent), moratorium period (83 per cent),

knowledge of employees (82 per cent), inspection done by the bank officials (82 per

cent), customer query services (82 per cent), grievance handling mechanism (82 per

228

cent), loan inquiry (80 per cent), project appraisal mechanism (78 per cent), security

required (77 per cent) and adequacy of loan (76 per cent). However, the respondents

have also represented their dissatisfaction with regard to documentation required (23

per cent), location of branch/office (19 per cent), procedural formalities (17 per cent),

conditions imposed (17 per cent) and service charges (15 per cent). Further, 16 per

cent of the respondents have shown indifferent attitude towards time taken by the

bank in sanction and disbursement of loan, followed by interest rates (16 per cent) and

products or schemes offered (15 per cent) by the bank.

Table 7.42

Average Weighted Scores Corresponding to Satisfaction Level of Respondents

(Branch-wise Classification)

(N=100)

Banking Aspect Branch

Total Jalandhar Ludhiana Chandigarh

Location of Branch/Office 3.8235 3.6364 3.6364 3.7000

Products or Schemes Offered 4.0882 3.9394 3.7576 3.9300

Loan Inquiry 4.2353 4.0303 3.9091 4.0600

Presence of Employees 4.2647 4.3030 4.2424 4.2700

Knowledge of Employees 4.2353 4.2121 4.1515 4.2000

Behaviour of Employees 4.4706 4.3030 4.1818 4.3200

Time Taken in Sanction and Disbursement of

Loan

4.0882 3.7273 3.9394 3.9200

Procedural Formalities 3.8824 3.7879 3.6970 3.7900

Documentation Required 3.7353 3.5455 3.4848 3.5900

Project Appraisal Mechanisn 4.0882 4.0909 4.0909 4.0900

Inspection Done by the Bank Officials 3.9706 4.3636 4.3030 4.2100

Conditions Imposed 3.6765 3.9091 3.8485 3.8100

Security Required 4.0588 3.9091 3.9091 3.9600

Repayment Schedule 4.2059 4.3636 4.3030 4.2900

Moratorium Period 4.1176 4.1818 4.1515 4.1500

Service Charges 3.7059 3.9394 4.0303 3.8900

Adequacy of Loan 3.9118 3.9697 4.1515 4.0100

Interest Rates 3.7941 4.0606 3.6364 3.8300

Customer Query Services 4.1176 4.1818 4.1818 4.1600

Grievance Handling Procedure 4.0588 4.0303 4.1515 4.0800

Mean Value of AWS 4.0265 4.0242 3.9879 4.0130

The Kendall‟s Co-efficient of Concordance=0.055, Chi-Square value=2.211,

d.f. = 2, Not significant at 5 per cent level of significance.

229

Average Weighted Scores have been computed for branch-wise, organisation

set up-wise and turnover-wise categories of respondents by assigning weights as 5, 4,

3, 2, 1 to „highly satisfied,‟ „satisfied,‟ „neither satisfied nor dissatisfied,‟

„dissatisfied,‟ and „highly dissatisfied,‟ respectively. Table 7.42, 7.43 and 7.44

respectively shows branch-wise, organisation set up-wise and turnover-wise

distribution of respondents in this regard.

Table 7.42 indicates that the respondents are highly satisfied with behaviour of

employees (4.3200), repayment schedule (4.2900), presence of employees (4.2700),

inspection done by the bank officials (4.2100), knowledge of employees (4.2000),

customer query services (4.1600) and moratorium period (41.500). Further, the

respondents are satisfied with regard to project appraisal mechanism (4.0900),

grievance handling mechanism (4.0800), loan enquiry (4.0600), adequacy of loan

(4.0100), security required (3.9600) and products or schemes offered (3.9300).

Branch-wise analysis reveals that the respondents are highly satisfied with regard to

presence of employees in all the three branches. The respondents financed by

Jalandhar branch are highly satisfied with behaviour of employees (4.4706), loan

enquiry and knowledge of employees (4.2353 each). Most of the respondents have

expressed their moderate level of satisfaction with regard to service charges and

conditions imposed by the bank. The respondents from Ludhiana branch (4.3636) and

Chandigarh branch (4.3030) are highly satisfied with the inspection done by the bank

officials and repayment schedule as compared to the satisfaction level of respondents

financed by Jalandhar branch for both factors. Further, the satisfaction level of

respondents financed by Ludhiana and Chandigarh branch was not high with regard to

location of branch/office and documentation required.

The mean value of average weighted scores related to the satisfaction level of

respondents regarding various factors is the highest in Jalandhar branch (4.0265),

followed by Ludhiana branch (4.0242) and Chandigarh branch (3.9879). The

Kendall‟s co-efficient of concordance shows that there exists no significant

concurrence of rankings (w=0.055) amongst respondents of SIDBI, regarding various

factors affecting their satisfaction.

230

Table 7.43


(Organisation Set up-wise Classification)

(N=100)

Banking Aspect

Organisation Set up

Total Proprietorship Partnership Company



Loan Inquiry 3.9211 4.3226 3.9677 4.0600




Time Taken in Sanction and

Disbursement of Loan

3.9474 4.1613 3.6452 3.9200



Project Appraisal Mechanism 4.2105 4.3226 3.7097 4.0900

Inspection Done by the Bank Officials 4.4737 4.2258 3.8710 4.2100





Service Charges 3.9474 3.9355 3.7742 3.8900

Adequacy of Loan 3.9211 4.1290 4.0000 4.0100

Interest Rates 3.5789 4.0323 3.9355 3.8300



Mean Value of AWS 4.0211 4.1532 3.8629 4.0130

The Kendall‟s Co-efficient of Concordance= 0.498, Chi-Square value= 19.924,

d.f. =2, Not significant at 5 per cent level of significance.

Organisation set up-wise, Table 7.43 depicts that the respondents are highly

satisfied with the behaviour of employees for all the three categories. Further, the

respondents from proprietorship form of organisation are highly satisfied with the

inspection done by the bank officials (4.4737) and repayment schedule (4.4474). But

231

their satisfaction level was low in comparison to other factors regarding interest rate

(3.5789) charged by the bank. The respondents belong to partnership (4.4194) and

company form of organisation (4.2581) are highly satisfied with the knowledge of

employees. However, the satisfaction level of respondents from all the three

categories was not too high with regard to location of branch/office. Further,

particularly the respondents belong to proprietorship business have shown their

divergent view with regard to rate of interest (3.5789). The table also highlights that

the respondents from partnership business (3.6452) and company (3.3226) have

shown their less satisfaction towards documentation required in comparison to other

services offered by the bank.

The mean value of average weighted scores related to the satisfaction level of

respondents regarding various factors is the highest for partnership (4.1532), followed

by those belong to proprietorship (4.0211) and those who belong to company form of

organisation (3.8629). The Kendall‟s co-efficient of concordance shows that there

exists no significant concurrence of rankings (w=0.498) amongst respondents of

SIDBI, regarding various factors affecting their satisfaction.

Turnover-wise, Table 7.44 shows that the respondents belong to all the three

categories of turnover are highly satisfied with behaviour of employees. Further, the

respondents from all the turnover groups are satisfied with regard to repayment

schedule of the loan. The respondents generating turnover below Rs 5 crore are highly

satisfied with presence of employees (4.3947) and shown low degree of satisfaction

towards documentation required and interest rate charged by the bank (3.6842 each).

The respondents receiving turnover of Rs 5 to 15 crore are highly satisfied with

knowledge of employees and inspection done by the bank officials (4.3023 each).

However, the satisfaction level of respondents with turnover of Rs 5 to 15 crore

(3.5349) and those whose turnover is above Rs 15 crore (3.6842) is comparatively

less for location of branch/office of the bank. The level of satisfaction is highest

among the respondents generating turnover above Rs 15 crore (4.4737) with respect

to presence of employees in the bank.

232

Table 7.44


(Turnover-wise Classification)

(N=100)

Banking Aspect

Turnover

Total Below Rs 5

crore

Rs 5 to 15

crore

Above Rs

15 crore



Loan Inquiry 4.0526 4.0000 4.2105 4.0600




Time Taken in Sanction and

Disbursement of Loan 3.9211 3.9302 3.8947 3.9200



Project Appraisal Mechanism 4.0263 4.1860 4.0000 4.0900

Inspection Done by the Bank

Officials 4.1053 4.3023 4.2105 4.2100





Service Charges 3.9211 3.8837 3.8421 3.8900

Adequacy of Loan 4.0789 3.9535 4.0000 4.0100

Interest Rates 3.6842 3.8837 4.0000 3.8300



Mean Value of AWS 4.0355 3.9907 4.0184 4.0130


d.f. =2, Significant at 5 per cent level of significance.

233

The mean value of average weighted scores related to the respondents opinion

regarding various factors is highest for respondents with turnover below Rs 5 crore

(4.0355), followed by those whose turnover is above Rs 15 crore (4.0184) and those

earning between Rs 5 to 15 crore (3.9907). The Kendall‟s co-efficient of concordance

shows that there exists significant concurrence of rankings (w=0.004) amongst

respondents of SIDBI, regarding various factors affecting their satisfaction.

RESPONDENTS PERCEPTION REGARDING VARIOUS OPINION

STATEMENTS

To ascertain the worth of SIDBI for its entrepreneurs, they were asked to give

their opinion on a five-point scale. The respondents perception has been evaluated on

the basis of opinion statements like, „SIDBI lays emphasis on MSME sector‟, „SIDBI

provides special attention to minorities like S.C., S.T. etc.‟ „SIDBI provides need-

based finance to the entrepreneurs‟, „The bank also gives priority to women

entrepreneurs‟, „The banks assistance leads to upliftment of the weaker sections of the

society‟, „The bank aims at boosting the budding entrepreneurs‟, „The branch network

of the bank is located at convenient places‟, „The staff of SIDBI is knowledgeable and

well-acquainted with the loaning procedure‟ and „The financial assistance provided by

SIDBI helps in increasing the business turnover‟. The value of Cronbach‟s alpha is

0.816 which implies that various opinion statements are reliable. Table 7.45 shows the

frequency distribution of responses of the respondents in this regard.

Average Weighted Scores have been computed for branch-wise, organisation

set up-wise and turnover-wise categories of respondents by attributing weights as 5, 4,

3, 2, 1 to „strongly agreed‟, „agreed‟, „neither agreed nor disagreed‟, „disagreed‟ and

„strongly disagreed‟ respectively. Table 7.46, 7.47 and 7.48 respectively shows

branch-wise, organisation set up-wise and turnover-wise distribution of respondents in

this regard.

Table 7.45 highlights that vast majority of the respondents have given their

assent in context to, „SIDBI lays emphasis on MSME sector‟ (91 per cent), „SIDBI

provides need-based finance to the entrepreneurs‟ (91 per cent), „The bank aims at

boosting the budding entrepreneurs‟ (83 per cent), „SIDBI provides special attention

to minorities like S.C., S.T. etc.‟ (81 per cent), „The staff of SIDBI is knowledgeable

and well-acquainted with the loaning procedure‟ (81 per cent), „The banks assistance

leads to upliftment of the weaker sections of the society‟ (80 per cent) and „The bank

234

also gives priority to women entrepreneurs‟ (79 per cent). Further, 76 per cent of the

respondents have given their consent with regard to statement, „The financial

assistance provided by SIDBI helps in increasing the business turnover‟, while 15 per

cent of the respondents have shown their indifferent attitude in this regard. Moreover,

23 per cent of the respondents have disagreed in regard to „The branch network of the

bank is located at convenient places‟.

Table 7.45

Respondents Perception Regarding Various Opinion Statements

(N=100)

Opinion Statements Strongly

Agreed Agreed

Neither

Agreed

Nor

Disagreed

Disagreed Strongly

Disagreed

Average

Weighted

Score

SIDBI lays emphasis

on MSME sector. 55 (55.00) 36 (36.00) 5 (5.00) 2 (2.00) 2 (2.00) 4.40

SIDBI provides

special attention to

minorities like S.C.

S.T. etc.

40 (40.00) 41 (41.00) 12 (12.00) 4 (4.00) 3 (3.00) 4.11

SIDBI provides need-

based finance to the

entrepreneurs.

45 (45.00) 46 (46.00) 4 (4.00) 3 (3.00) 2 (2.00) 4.29

The bank also gives

priority to women

entrepreneurs.

37 (37.00) 42 (42.00) 10 (10.00) 6 (6.00) 5 (5.00) 4.00

The banks assistance

leads to upliftment of

the weaker sections of

the society.

37 (37.00) 43 (43.00) 10 (10.00) 7 (7.00) 3 (3.00) 4.04

The bank aims at

boosting the budding

entrepreneurs.

39 (39.00) 44 (44.00) 8 (8.00) 7 (7.00) 2 (2.00) 4.11

The branch network of

the bank is located at

convenient places.

32 (32.00) 35 (35.00) 10 (10.00) 15 (15.00) 8 (8.00) 3.68

The staff of SIDBI is

knowledgeable and

well-acquainted with

the loaning procedure.

38 (38.00) 43 (43.00) 11 (11.00) 5 (5.00) 3 (3.00) 4.08

The financial

assistance provided by

SIDBI helps in

increasing business

turnover.

35 (35.00) 41 (41.00) 15 (15.00) 5 (5.00) 4 (4.00) 3.98

235

Table 7.46

Average Weighted Scores Corresponding to Opinion Statements

(Branch-wise classification)

(N=100)

Opinion Statements

Branch

Total Jalandha

r

Ludhian

a

Chandigar

h

SIDBI lays emphasis on MSME

sector. 4.2647 4.4242 4.5152 4.4000

SIDBI provides special attention to

minorities like S.C. S.T. etc. 4.1176 4.0303 4.1818 4.1100

SIDBI provides need-based finance to

the entrepreneurs. 4.2353 4.3636 4.2727 4.2900

The bank also gives priority to women

entrepreneurs. 3.9706 4.0303 4.0000 4.0000

The banks assistance leads to

upliftment of the weaker sections of

the society.

3.9118 4.0909 4.1212 4.0400

The bank aims at boosting the budding

entrepreneurs. 4.1765 4.0909 4.0606 4.1100

The branch network of the bank is

located at convenient places. 3.5294 3.7576 3.7576 3.6800

The staff of SIDBI is knowledgeable

and well-acquainted with the loaning

procedure.

4.0882 4.1212 4.0303 4.0800

The financial assistance provided by

SIDBI helps in increasing business

turnover.

3.9412 3.9697 4.0303 3.9800

Mean Value of AWS 4.0261 4.0976 4.1077 4.0767

The Kendall‟s Co-efficient of Concordance= .238, Chi-Square value= 4.286,


Table 7.46 reveals that all the respondents surveyed have strongly agreed with

the opinion statement, „SIDBI lays emphasis on MSME sector‟ (4.4000) and „SIDBI

provides need-based finance to the entrepreneurs‟ (4.2900). Likewise, the respondents

have given their assent with respect to all the other opinion statements. Branch-wise

analysis reveals that respondents financed by Jalandhar branch have given their

consent with regard to, „The bank aims at boosting the budding entrepreneurs‟

236

(4.1765). The respondents financed by Ludhiana branch have agreed about the

statement that, „The staff of SIDBI is knowledgeable and well-acquainted with the

loaning procedure‟ (4.1212). Further, the respondents belong to Chandigarh branch

have expressed their assent with regard to, „SIDBI provides special attention to

minorities like S.C., S.T. etc.‟ (4.1818). However, all the respondents seem to have

less agreed to the statement that, „The branch network of the bank is located at

convenient places‟.

The mean value of average weighted scores related to the degree of consent

expressed by the respondents in regard to various opinion statements is the highest in

Chandigarh branch (4.1077), followed by Ludhiana branch (4.0976) and Jalandhar

branch (4.0261). The Kendall‟s co-efficient of concordance shows that there exists no

significant concurrence of rankings (w=0.238), among the respondents of SIDBI with

regard to various opinion statements.

Organisation set up-wise, Table 7.47 shows that all the respondents surveyed

have strongly agreed in context to, „SIDBI lays emphasis on MSME sector‟ and

„SIDBI provides need-based finance to the entrepreneurs‟. The analysis further

reveals that the respondents from proprietorship (4.2368) and partnership form of

organisation (4.2581) have expressed their consent in regard to statement, „The bank

aims at boosting the budding entrepreneurs‟. The satisfaction level of respondents

belong to partnership form of business organisation is identical (4.2258 each) for

opinion statements, SIDBI provides special attention to minorities like S.C., S.T. etc.‟

and „The bank also gives priority to women entrepreneurs‟. Further, the respondents

particularly from company form of organisation have shown their consent in regard to

statement, „The staff of SIDBI is knowledgeable and well-acquainted with the loaning

procedure‟. The table also highlights that all the respondents have shown their

divergent view in regard to, „The branch network of the bank is located at convenient

places‟.

237

Table 7.47


(Organisation Set up-wise classification)

(N=100)

Opinion Statements Set up

Total Proprietorship Partnership Company

SIDBI lays emphasis on

MSME sector. 4.5263 4.3548 4.2903 4.4000

SIDBI provides special

attention to minorities like

S.C. S.T. etc.

4.1579 4.2258 3.9355 4.1100

SIDBI provides need-

based finance to the

entrepreneurs.

4.3947 4.2258 4.2258 4.2900

The bank also gives

priority to women

entrepreneurs.

4.0263 4.2258 3.7419 4.0000

The banks assistance leads

to upliftment of the

weaker sections of the

society.

4.1053 4.1613 3.8387 4.0400

The bank aims at boosting

the budding entrepreneurs. 4.2368 4.2581 3.8065 4.1100

The branch network of the

bank is located at

convenient places.

3.7368 3.7742 3.5161 3.6800


knowledgeable and well-

acquainted with the

loaning procedure.

4.1842 4.0323 4.0000 4.0800

The financial assistance

provided by SIDBI helps

in increasing business

turnover.

4.2105 3.9677 3.7097 3.9800

Mean Value of AWS 4.1754 4.1362 3.8961 4.0767




expressed by the respondents in regard to various opinion statements is the highest in

proprietorship form of organisation (4.1754), followed by partnership (4.1362) and

238

company (3.8961). The Kendall‟s co-efficient of concordance shows that there exists

no significant concurrence of rankings (w=0.689), among the respondents of SIDBI

with regard to various opinion statements.

Table 7.48


(Turnover-wise classification)

(N=100)

Opinion Statements

Turnover

Total Below 5 crore

Rs 5 to

15 crore

Above Rs

15 crore

SIDBI lays emphasis on MSME

sector. 4.3421 4.4186 4.4737 4.4000

SIDBI provides special attention

to minorities like S.C. S.T. etc. 4.1053 4.1628 4.0000 4.1100

SIDBI provides need-based

finance to the entrepreneurs. 4.3684 4.1628 4.4211 4.2900

The bank also gives priority to

women entrepreneurs. 4.0000 3.8837 4.2632 4.0000

The banks assistance leads to

upliftment of the weaker sections

of the society.

4.1842 3.9302 4.0000 4.0400

The bank aims at boosting the

budding entrepreneurs. 4.1316 4.1395 4.0000 4.1100

The branch network of the bank is

located at convenient places. 3.7895 3.5349 3.7895 3.6800


knowledgeable and well-

acquainted with the loaning

procedure.

3.9737 4.0698 4.3158 4.0800

The financial assistance provided

by SIDBI helped in increasing

business turnover.

3.9474 4.0698 3.8421 3.9800

Mean Value of AWS 4.0936 4.0413 4.1228 4.0767


d.f. =2, Significant at 5 per cent level of significance.

239

Turnover-wise, Table 7.48 indicates that the respondents from all the turnover

categories have strongly agreed with the opinion statements, „SIDBI lays emphasis on

MSME sector‟ and „SIDBI provides need-based finance to the entrepreneurs‟.

Further, the respondents with turnover below Rs 5 crore have expressed their consent

in regard to, „The banks assistance leads to upliftment of the weaker sections of the

society‟ (4.1842). The respondents generating turnover of Rs 5 to 15 crore have given

their assent in respect to opinion statement, „SIDBI provides special attention to

minorities like S.C., S.T. etc.‟ (4.1628). Similarly, the respondents with turnover

above Rs 15 crore have given favourable opinion about, „The staff of SIDBI is

knowledgeable and well-acquainted with the loaning procedure‟ (4.3158). However,

the analysis has shown low level of satisfaction as compared to other opinion

statements in reference to, „The branch network of the bank is located at convenient

places‟ among the respondents from all turnover groups.


expressed by the respondents in regard to various opinion statements is the highest for

respondents generating turnover above Rs 15 crore (4.1228), followed by those with

turnover below Rs 5 crore (4.0936) and those receiving turnover of Rs 5 to 15 crore

(4.0413). The Kendall‟s co-efficient of concordance shows that there exists significant

concurrence of rankings (w=0.022), among the respondents of SIDBI with regard to

various opinion statements.

RESPONDENTS OPINION REGARDING PAYMENT OF BRIBE

To examine the respondents opinion regarding any unlawful payment made by

them in the form of bribe to bank officials for availing loan, the respondents were

asked to give their consent as regards the same. It has been found that all respondents

denied making such illegal payment to any of the bank officials for sanctioning and

disbursement of loan. The analysis further reveals that all the respondents surveyed

would recommend SIDBI to other prospective industrialists and they would like to

approach bank again to avail its services in future. However, branch-wise analysis

shows that one of the respondent financed by Chandigarh branch have negative

response in this context.

240

RESPONDENTS OVERALL SATISFACTION LEVEL ABOUT SIDBI

To evaluate the opinion of respondents regarding overall working of SIDBI,

they were asked to give their response in this regard. In this context, a highly

significant proportion of respondents (99 per cent) have expressed their satisfaction

towards functioning of SIDBI. Table 7.49, 7.50 and 7.51 shows the branch-wise,

organisation set up-wise and turnover-wise response of the respondents as regards the

same.

Table 7.49

Respondents Overall Satisfaction Level About SIDBI (Branch-wise)

Scale Jalandhar Ludhiana Chandigarh Total

Highly Satisfied 12 (35) 13 (39) 9 (27) 34 (34)

satisfied 22 (65) 20 (61) 23 (70) 65 (65)

Neutral 0 (0) 0 (0) 0 (0) 0 (0)

Dissatisfied 0 (0) 0 (0) 0 (0) 0 (0)

Highly Dissatisfied 0 (0) 0 (0) 1 (3) 1 (1)

N 34 33 33 100

Average Weighted Score 4.3529 4.3939 4.1818 4.3100

Table 7.50

Respondents Overall Satisfaction Level About SIDBI (Organisation Set up-wise)

Scale Proprietorship Partnership Company Total


satisfied 24 (63) 16 (52) 25 (81) 65 (65)

Neutral 0 (0) 0 (0) 0 (0) 0 (0)

Dissatisfied 0 (0) 0 (0) 0 (0) 0 (0)


N 38 31 31 100

Average Weighted

Score 4.3684 4.3548 4.1935 4.3100

241

Table 7.51

Respondents Overall Satisfaction Level About SIDBI (Turnover-wise)

Scale Below 5

crore

Rs 5-15

crore

Above 15

crore Total


satisfied 22 (58) 30 (70) 13 (68) 65 (65)

Neutral 0 (0) 0 (0) 0 (0) 0 (0)

Dissatisfied 0 (0) 0 (0) 0 (0) 0 (0)


N 38 43 19 100

Average Weighted

Score 4.3158 4.3023 4.3158 4.3100

On the basis of average weighted scores, satisfaction level is the highest

among respondents financed by Ludhiana branch (4.3939), followed by Jalandhar

(4.3529) and Chandigarh branch (4.1818). Organization set up-wise, analysis shows

that respondents from proprietorship form of organization (4.3684) are highly

satisfied, followed by respondents from partnership (4.3548) and company form of

organization (4.1935). Turnover-wise, the level of satisfaction is the highest for

respondents generating turnover below Rs 5 crore and above Rs 5 crore (4.3158

each), followed by respondents with turnover between Rs 5 to 15 crore (4.3023) with

regard to overall functioning of the bank.

FUNCTIONING OF SIDBI: AN OPINION SURVEYshodhganga.inflibnet.ac.in/bitstream/10603/54468/13... · The second part analysed the impact of SIDBI financing in MSME units. The opinion

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