LIST OF ABBREVATION USED

SBOP: IRDA: UTI: SAMF: DHCB: ICUB: MSME: NBHC: ACABCs: KGC: SGSY: FLCCs: WAP : SCB: SLDB: UCB: CCB: CLDB: PACS: PLDB: RRB: Cop: State Bank of Patiala Insurance Regulatory Development Authority Unit Trust of India Sum Assured Multiplier Factor Daily Hospital Cash Benefits Intensive Care Unit Benefits Micro Small Medium Enterprises National Bulk Handling Corporation Ltd Agri Clinics and Agri Business Kisan Gold Card Swaranjayanti Gram Swarojgar Yojana Financial Literacy Credit Counseling Centre Wireless Application Protocol State Cooperative Banks State Land Development Banks Urban Cooperative Banks Central Cooperative Banks Central Land Development Banks Primary Agricultural Credit Societies Primary Land Development Banks Regional Rural Banks Cooperative 1

PSADB: PSCB: PADB: A/c: PAN: HUF: FDR: SB: RCC: NFS: CASS:

Punjab State Agricultural Development Bank Punjab State Cooperative Bank Primary Cooperative Agricultural Development Bank Account Permanent Account Number Joint Hindu Family Fixed Deposit Receipt Savings Revolving Cash Credit Non Farming Sector Cooperative Agricultural Savings Societies

A. LIST OF FIGURES Page No.

STRUCTURE OF INDIAN BANKING STRUCTURE OF COOPERATIVE BANKING 8 41

B. LIST OF TABLES Page No.

PERFORMANCE HIGHLIGHTS 2011-2012 PERFORMANCE OF LAST 5 YEARS BOARD OF DIRECTORS TOP MANAGEMENT FLCC CENTRES 9 10-11 11-12 12-13 22-23

CORE BANKING SOLUTIONS: VALUE ADDED SERVICES DEPOSIT AND INTEREST SCHEMES INTEREST RATES DIFFERENT LOAN SCHEMES OF STATE BANK OF PATIALA DEPOSIT AND LOAN RATE OF INTEREST COOPERATIVE BANKS LEVEL OF PREFERENCE

25-27 27-28 28-39 45 62

C. LIST OF GRAPHS Page No.

6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 DEMOGRAPHIC ANALYSIS BASED ON OCCUPATION TYPE OF ACCOUNT CUSTOMERS WHO HAVE TAKEN LOAN FROM THE BANK INFORMATION SOURCE OF SCHEMES AND SERVICES OF BANK RATE OF INTEREST PREFERRED APPRECIATION FOR BEING A GOOD CUSTOMER FUTURE PREFERABLE BANK (A) (B) MOTIVATIONAL FACTORS INFLUENCE OF IMAGE OR BRAND OF THE BANK 50 51 52 53 54 55 56-57 58 59 60 61

6.10 ESSENTIALITY OF COMPUTERIZED BANKING 6.11 CUSTOMER DIFFER IN PERCEPTION FOR A GOVT. & PRIVATE BANK

EXECUTIVE SUMMARY The report contains introduction to Banks, which includes past, present and future of banks and challenges for banking industry in future. Banks plays the most important role in providing various banking services. Earlier the banks were engaged in accepting and lending money. But in the recent past the scope of services provided by the banks has increased. The growing competition requires prompt and efficient services to the customers at reasonable cost. These days bank aim to provide maximum satisfaction to their customers. Next Part contains bank profile, Bank profile shows the Bank status, Mission and Vision of STATE BANK OF PATIALA. The main purpose of this Bank was to cater the rapidly developing financial services sector. The Bank mainly deals in Deposits and Loans. This part also contains the Bank profile of CENTRAL COOPERATIVE BANK, because the project is about the comparison of the customer perception of the State Bank of Patiala and Cooperative Bank. Next Chapter is about the Research Methodology, which includes justification about the topic selected, the objective of the study, Scope of the study and sources of information (primary as well as secondary). It also includes various limitations during the course of the project. Next part of this report is about the data interpretations and its findings. Next are the Recommendations, the various proposals that the Cooperative bank could apply for maintaining its position in the region and to face future challenges and the suggestions for the improvement. Then there are the limitations and the conclusion of the study.

CHAPTER I

INTRODUCTION TO BANKING SECTOR

A Bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. The level of government regulation of the banking industry varies widely, with countries

TYPES OF BANKS

Banks' activities can be divided into:Retail banking, dealing directly with individuals and small businesses; Business banking, providing services to mid-market business; corporate banking, directed at large business entities; Private banking, providing wealth management services to high net worth individuals and families; Investment banking, is relating to activities on the financial markets. Most banks are profitmaking, private enterprises. However, some are owned by government, or are non-profit organizations. Central banks are normally government-owned and charged with quasi-regulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis.

IMPORTANCE OF A BANK
SAFETY OF MONEY: The money with the bank remains in safe custody there is always risk in keeping cash with ones own self. It may be lost or stolen. Businessman likes to keep money with a bank to avoid risks of money the customer need not keep large some of money. IT CULTIVATES HABIT OF SAVING: Banks cultivates the habit of saving in the Bank on the one hand are safe and on the other earned interest for the depositor who prompted to safe and deposit money in their banks accounts. FINANCIAL HELP TO CUSTOMER: Banks allows overdraft facilities to their customer so whenever a customer needs money he can even withdraw more money then the balance in his account. Bank also grants loans and credit facilities to their customers. SAFE CUSTODY OF VALUABLE ARTICLES : Valuable articles deals security etc. can also be deposited in the bank for safe custody. Safe deposit vaults are provided by bank storing for these valuables. OTHER INFORMATION: By opening an account with a bank, the customers may also take advantages of various other services providing by the banks, such a purchase and sale of securities, travelers cheque etc.

BANKING IN INDIA
Without having sound and effective banking system India cannot have healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the 6

Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 293 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 30 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 40 foreign banks. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India

STRUCTURE OF INDIAN BANKING

RESERVE BANK OF INDIA (RBI)

SCHEDULED BANKS IN INDIA

COMMERCIAL BANKS

COOPERATIVE BANKS

URBAN COOPERATIVES (52)

STATE COOPERATIVES (16)

REGIONAL RURAL BANKS (196)

PRIVATE SECTOR BANKS (30)

PUBLIC SECTOR BANKS (27)

FOREIGN BANKS (40)

NATONALIZED BANKS (19) OLD (22) NEW (8)

SBI AND ASSOCIATE BANKS (8)

CHAPTER II INTRODUCTION TO STATE BANK OF PATIALA

An Associate Bank of the State Bank of India, State Bank of Patiala (SBP) was established in 1917 by Late His Highness Bhupinder Singh, the Maharaja of erstwhile Patiala state. SBP started its operations from one branch called 'Chowk Fort', in Patiala. During the time of the establishment, the state owned Bank was known as Patiala State Bank. It was set up for the purpose of promoting the growth of agriculture, trade and industry. Patiala State Bank was renamed State Bank of Patiala on 1 April 1960, when it became a wholly owned undertaking of the Government of Punjab. On that day, SBP became a subsidiary of the State Bank of India (SBI). Since it was renamed, SBP has grown significantly in terms of its size and the volume of business. It is now one of the prominent Banks of India. Another milestone in the history of SBP was the computerization of all its branches on 24 January 2003. With this development, the Bank became India's first fully computerized Public Sector Bank. The bank is principally engaged in the provision of commercial and retail banking services to the individuals and business customers. The bank offers a range of services to the including personal banking, agriculture and rural banking. PERFORMANCE HIGHLIGHTS FOR 2011-12 Total Business crossed Rs. 1,43,500 crores. Operating Profit is Rs.1762.90 crore (growth 0.21%). The Capital Adequacy Ratio under Basel-II is 12.30%. NIM is 3.13% . Provisioning Coverage Ratio is 67.90%. Banks Credit-Deposit Ratio stood at 81.03 %. Book value of Rs.100 per share improved from Rs.1389 to Rs 1622. Cost of Deposit is 7.26%. 9

PERFORMANCE FOR THE LAST 5 YEARS Particulars Total Income Total Expenditure including provisions Net Profit Earning per share of Rs.100 each (Rs.) Return on Average Assets (%) Return on Equity (%) Yield on Advances (%) Cost of Deposits 2007-08 4905.94 4492.21 413.73 1672 2008-09 6435.69 5904.15 531.54 193* 2009-10 6649.71 6098.82 550.89 200** 2010-11 2011-12 7233.65 8872.13 6580.69 8075.69 652.96 221.53 796.45 270.21

0.83 15.27 10.53 7.31

0.83 16.96 11.32 7.89

0.79 14.70 10.75 6.82

0.88 15.94 10.58 5.99

0.93 16.66 11.93 7.26

Paid up Capital & Reserve & Surplus Deposits Advances (including Bills) Total Assets/Liabilities Number of Branches Capital Adequacy Ratio(%) Basel-I Basel-II Net NPAs (%) Business per Branch

2709

3134

3747

4095

4781

48570.54 60006.18 64551.94 68066.05 79416.60 36400.04 43634.12 46347.23 51433.20 62934.49 59060.04 69665.44 76076.97 81286.25 98498.20 798 12.50 13.56 0.60 106.48 846 11.44 12.60 0.60 122.51 886 12.45 13.26 1.04 125.17 1008 12.25 13.41 1.21 119.35 1055 10.79 12.30 1.35 136.07

10

* Bank raised its capital from Rs.24.75 crores to Rs.274.75 crores.

** Bank raised its capital from Rs.274.75 crores to Rs.294.75 crores.

BOARD OF DIRECTORS

Shri Pratip Chaudhuri, Chairman, State Bank of India, Corporate Centre, MUMBAI.

Shri Achal Kumar Gupta, Managing Director, State Bank of Patiala, , Head Office, The Mall, PATIALA 147001.

Shri Shyamal Acharya, Dy. Managing Director & Group Executive, (Associates & Subsidiaries) State Bank of India , Corporate Centre, Mumbai 400021.

Shri Vijay Chugh, Chief General Manager, Department of Payment & Settlement Systems, Reserve Bank of India, 14th Floor, Central Office Building, Shaheed Bhagat Singh Marg, MUMBAI 400001.

Shri A.K. Deb, Chief General Manager (Associates & Subsidiaries), State Bank of India, Corporate Centre, MUMBAI 400021. Shri Verjinder Kumar Gupta,

Shri Srikant Hota, Dy. General Manager, (Associates & Subsidiaries), State Bank of India, Corporate Centre, MUMBAI 400021. Shri Arun Kumar Agarwal, 11

261, Dalima Vihar, RAJPURA 140401

B-142, Shivalik, Malviya Nagar, New Delhi 110017.

Shri Jagdish Sharma, Workmen Director, State Bank of Patiala, Shastri Bhawan Branch, NEW DELHI Shri Ashwani Kumar Gupta, 85, Green Park, Cool Road, JALANDHAR CITY

Shri Swarn Singh Boparai, House No. 67, Sector 9 A, CHANDIGARH.

Shri Meher Singh Azad, Under Secretary, Government of India, Department of Financial Services, Ministry of Finance, Jeevan Deep Building, Sansad Marg, NEW DELHI 110001.

Dr. Abhijit Mukherjee, Director, Thapar University, Patiala

Shri Chaman Lal Singla Non - Workmen Director, State Bank of Patiala, Head Office, Patiala.

TOP MANAGEMENT

Shri. Achal Kumar Gupta Managing Director Fax: 0175 2214311 Shri. A.K.BASU Shri. S.Vijaykumar

12

Chief General Manager (Corporate Banking) Phone: 0175-2214425 Fax: 0175-2214303 Shri. J C DAS General Manager (Planning & New Business) Phone: 0175-2225378 Fax: 0175-2200416 Shri. PUKHRAJ KANTHER General Manager (HR & CDO) Phone: 0175-2304943 Fax: 0175-2213266

Chief General Manager (National Banking) Phone: 0175-2209400 Fax: 0175-2301226 General Manager (Treasury & Inspection) Phone: 0175-2214680 Fax: 0175-2215490

Shri. V.SRINIVASAN General Manager ( Commercial Banking) Phone: 0175-2214323 Fax: 0175 -2215503

General Manager (Vig) Phone: 0175-2214709, 0175-2220105 Fax: 2301923

Shri. JOSEPH PHILIP GENERAL MANAGER (Tech ., Risk & Outreach) Phone: 0175-2303078 Fax: 0175-2220317

Shri. RAVI JHA General Manager (Operations) Phone: 0175 - 2300501 Fax: 0175-2304501

13

Branches And ATM Services

The business of State Bank of Patiala has grown manifold since its establishment. Recent records say that State Bank of Patiala is networked by its 830 service outlets. There are as many as 750 branches of SBP, spread across the major cities of India, out of which, the majority of branches are located in its home State, Haryana, Himachal Pradesh, Rajasthan, Jammu & Kashmir, Delhi and Chandigarh. The Bank provides easy access to money to its customers through its ATMs spread over 16 states of India.

STATE BANK SERVICES:

State Bank of Patiala offers various types of services to its clients. SBP shares its ATM network with other State Bank group members, so this means that the bank's customers have access to the more than 7000 State Bank Group ATMs across the country. Some of the services offered by the bank consist of:

NRI Services Govt. Business

Personal Banking Internet Banking MSME & Corporate Banking Agriculture & Rural Banking

RELATED PRODUCTS & SERVICES

14

Our Bank offers other fruitful products like Life Insurance, Mutual Fund Investments, General Insurance and Credit Cards under tie up arrangements with various companies as under:-

Sr. No. 1 2

Tie-Up Company SBI Life Insurance Co. Ltd. SBI Mutual Fund, UTI MF, Franklin Templeton MF

Type of Product All types of Life Insurance products Mutual Fund Products Non-Life Insurance Products Credit Card Products

3 4

United India Insurance Co. Ltd. SBI Cards & Payment Services Ltd.(SBICPSL)

A. SBI Life Insurance Products* :- SBI Life Insurance products are of two types:-

1. Group Products a. Group Swadhan Insurance: - This is a simple insurance product available for all account holders of our bank in the age group of 18 to 50 years at a very affordable premium. Under the scheme Sum Assured for ` 50,000, ` 1 lac, `3 lac & ` 5 lac is available. b. RiNnRaksha Scheme: - This scheme covers the House, Vehicle, Education & Personal Loan borrowers of the bank. In unfortunate event of death the loan outstanding amount (according to EMI Schedule) is adjusted with the claim received from SBI Life Insurance Co.

2. Individual Products: - These products can be sold by the Certified Insurance Felicitators(CIF, a staff member specifically trained, as per IRDA norms, for sale of individual insurance products).At present the main products for sale are :-

Saral Shied It is an individual without profit pure term insurance plan. Minimum age: 18 years Max Entry age: 60 years Maturity/vesting age: 65 years Min. term 5 years, Minimum Sum Assured Rs.7.50 Lacs/Maximum Rs. 24.00 Lacs, Riders: Preferred Term/Accidental Death Benefit/Accidental

15

Total Permanent Disability is also available.

Smart Shield It is an individual without profit pure term insurance plan. Minimum age: 18 years Max Entry age: 65 years Maturity/vesting age: 70 years Min. term 5 years, Minimum Sum AssuredRs.25.00Lacs/Maximum-no limit, Riders: Preferred Term/Accidental Death Benefit/Accidental Total P ermanent Disability is also available

Smart Money Back It is an individual endowment assurance product with money back plan where in case policyholder is alive at specific durations (end of policy years).During the policy term, a fixed % of the basic sum assured is paid to him as survival benefit in fixed number of installments. Minimum Age: 14 years Max Entry Age: 58 years Maturity/vesting age: 70 years, Term 12/15/20/25 years.

Subh Nivesh It is an individual participating traditional savings cum whole life endowment plan primarily designed as savings vehicle with protection along with income generation and wealth transformation. It is a regular premium plan for a term varies from 5 to 30 years with a minimum annual premium payment of Rs. 6000.00 per annum and minimum/maximum entry age is 18/60 years.

Smart Wealth It is an individual Unit Link single premium insurance product. This product provides the policyholders two types of investment return, namely Guaranteed Return and Market Linked Return. Minimum Term 10 years, Minimum Premium Amount Rs.50000

Flexi Smart Insurance It is an individual, non-linked traditional life insurance cum saving plan with guaranteed interest rate of 2.50%p.a. for the entire policy term. This product provides the flexibilities to policy 16

holders to choose option of premium holiday during the policy term, increase or decrease the Sum Assured (SA), SA multiplier factor (SAMF),boost investment through Top-ups. Minimum Age: 8 years Max. Entry age: 60 Years, Maturity/Vesting Age: 70 Years, Premium term: 10 to 20 years, Premium Mode: Regular Premium.

Hospital Cash It is an Individual/Non- unitlinked/Health Plan which provides daily cash benefit to cover hospitalization expenses due to sickness/accident. In the product 3 types of benefit is available: (a) Daily Hospital Cash Benefit (DHCB) this benefit is payable in the event of hospitalization (other than ICU) of the Life Assured for a continuous period of more than 24 hours of hospitalization (b) Intensive Care Unit Benefit (ICU) This benefit is payable in the event of hospitalization in an ICU of the Life Assured for a continuous period of more than 24 hours of hospitalization. (c) Family Care Benefit if in case, members covered under the same policy are hospitalized simultaneously due to same ailment or due to same event of accident for at least 5consecutive days, then an additional lump sum equivalent to Rs.10000 Minimum age: 1 years Max Entry age: 65 years Maturity/vesting age: 75 years Min. term 3 years (Fixed) Max Term 3 years (Fixed) Premium Mode: Regular Premium

Smart Horizon It is a unit-linked product with an option of both active fund management and/or passive fund management with the feature of Automatic Asset Allocation. The customer can also choose a mix between Passive & Active fund management. minimum and maximum annual premium under yearly premium mode of Rs. 24,000/- & Rs 74,000/- respectively. The policy term is of 10 years and any term between 15 years and 30 years.

Smart Pension It is a ULIP pension product with minimum single premium mode of Rs. 50,000/-and no maximum limit of premium. It has 4 fixed policy terms: 10/15/20/25 years. The minimum & maximum entry age is 30 years and 65 years respectively Minimum Term 10 years, Maturity Benefit: 1/3rd of commutable, 2/3rd Annuity (compulsory), Death Benefit, Fund Value. 17

Smart Scholar It is a unit-linked non-participating product for securing the future needs of the child. The risk cover is on the life of the proposer who is the life assured. The nominee at the point of sale must be a child whose interest the policyholder wants to protect. Entry Age for child- 0 to17 years, for parents 18 to 57 years.Maturity/Vesting Age 65 years, Minimum Term 8 years, Maximum Term 25 years, Guaranteed Addition available from 8th Policy year 1% x (Average fund value over the 1st day of the last 24 policy months).

Smart Elite It is an individual unit-linked product designed mainly for preferred (HNI) customer. It offers Limited Premium paying Term and Single Premium payment option. Minimum Entry 18 years, Max Entry age: 60 years, Maturity/Vesting Age 65 years, Minimum Term 5 years, Maximum Term 20 years.

B. Mutual Fund Investments :- The main products are as under :1. SBI Gold Fund 2. SBI Magnum Tax Gain 3. SBI Magnum Emerging Business 4. Magnum FMCG 5. Magnum Global 6. Franklin India Blue Chip 7. Franklin India Tax Shield 8. Franklin India Prima Plus 9. UTI Opportunities 10. UTI Dividend Yield

C. General Insurance Business: 1. Insurance Cover of buildings, Machinery, Goods, Vehicles etc. can be got from our branches through United India Insurance Co. Ltd. 18

2. Our account holders can have accidental insurance cover of ` 2.5 lacs at annual premium of ` 50 only and cover of ` 5 lacs (with PAN Card) at ` 98 only

D. SBI Credit Cards :1. Our bank is only sourcing the applications for SBI Credit Cards. The credit decision regarding the approval or otherwise of the applications sourced would vest with SBICPSL. 2. This product is available at selected centres approved SBI Credit Cards.

PERSONAL BANKING

Deposits

Advances

Suraksha Saving Bank Account Suraksha Plus Saving Bank Account Account Opening Form for Individuals Minimum Balance Requirements Savings Bank Rules No Frills Savings Bank Accounts Corporate Salary Package Money Multiplier SB A/c SBP - Tax Saving Term Deposit SB Star Account SB Sanjeevan

SBP - Home Loan SBP - Reality SBP - Rent SBP - Car Loan ( For New Vehicles) SBP - Car Loan ( For Used Vehicles) SBP Gyan Joyti - Education Loan Scheme

SBP - Loan For Earnest Money SBP - Loan to Pensioners SBP - Two Wheeler Loan Personal Segment Advances: SBP Career Loan

SBP - Gram Niwas-Scheme For Financing Rural Housing

SBP - Personal Loan Against Equitable Mortgage of Immovable Property

SBP - Personal Loan SBP - Reverse Mortgage

19

SBP - Education Loan Scheme for Vocational education and training

SBP - Gold Loan SBP - Scholar Scheme SBP - Maxgain Home Loan

Other Schemes

Avail ASBA 1% Interest Subvention Scheme EWS Scheme ISHUP Gold Banking Scheme

AGRICULTURE & RURAL BANKING

1. Finance against warehouse receipt issued by National Bulk Handling Corporation Ltd. (NBHC) 2. Loans granted under tie-up arrangement with Milkfed Punjab & Haryana Dairy Development Corporation Ltd., Haryana. 3. Establishment of dairy unit of 02 milch animals under schedule caste sub plan in the state of Punjab. 4. Finance to Farmers under KIisan Card and Golden Card Schemes. 5. Financing Commercial Dairy units 6. Indirect loans given through Primary Agricultural Cooperative Society (PACS)/ Farmer Service Society (FSS)/ Large sized Adivasi/Agricultural Multipurpose Society (LAMPS) 7. Loans to self help Groups 8. Tractor Loans

20

Agriculture Schemes Financial Literacy Credit Counseling Centre

AGRICULTURE SCHEMES

Agricultural Debt Waiver and Debt Relief Scheme, 2008 Malwa Gramin Bank Model Scheme for financing Net House for Vegetable Cultivation Produce Marketing Loan Scheme SBP-Patiala Bank Kisan Card (PBKC) Scheme Scheme for Construction Renovation Expansion of Rural Godowns Scheme for Financing Commercial Dairy Scheme for Financing Commission Agents Scheme for Financing Farmers for Purchase of Land for Agricuture Purpose Scheme for Financing of Agri Clinics and Agri Business Centres (ACABCs) Scheme for Financing under SBP - Kisan Gold Card (KGC) Scheme for Financing Warehouse Receipts issued by NBHC Ltd Swaranjayanti Gram Swarojgar Yojana (SGSY)

FINANCIAL LITERACY CREDIT COUNSELING CENTRE State Bank of Patiala has established FLCCs as per Reserve Bank of India Model Scheme on FLCCs at seven centers in Punjab, Patiala Fatehgarh Sahib. Muktsar, Sangrur, Mansa, Bathinda and Barnala. These centers have been opened to:

Provide financial counseling services through personal interaction as well as through media like e-mail, fax, mobile etc.

Provide Education on responsible borrowing, offering debt counseling to individuals who are indebted to formal and/or informal financial sector.

Educate the people in rural and urban areas with regard to various financia products and services available from financial sector.

Make the people aware of the advantages of being connected with the formal financial

21

sector.

the centre provides free financial literacy; educa tion and credit couselling including on debt restructuring to non customers/customers of any bank.

S.No. Name of FLCC

Address of the FLCC Centre

Name of the Counsellor Contact NO. and email adddress

1.

FLCC, Patiala (Punjab)

S.C.O.36, New Grain Market, Patiala PIN 147001

Sh. Bhagwant Singh, Mobile:9815380809 Tel: 175-2358543 email:flccpta@gmail.com

2.

FLCC, Fatehgarh Sahib (Punjab)

Opposite Civil Hospital Fatehgarh Sahib PIN-140406

Sh. Sukhdev Singh Tiwana Mobile: 9463598373 Tel:01763-232298 email:flccfgs@yahoo.com

3.

FLCC Muktsar

Ist floor, Lead Bank Office,

Sh. A.N.Garg, Mobile: 9815378102

New Gramin Market, Tel: 01633-262060 Muktsar PIN-152026 4. FLCC Sangrur Inside Distt. Agricultural Office complex email:flccmks@yahoo.in Sh. C.S.Musafir Mobile 7696606051 Tel: 01672-231577

22

Sangrur PIN- 148001 5. FLCC Mansa Mini Sectt. D.C.Complex, Mansa

email:flccsng@gmail.com Sh. S.S.Sidhu Mobile:9876023224 Tel:01652-227063 e-mail:flccmansa@ gmail.com

6.

FLCC Bathinda

Kiker Bazar Bathidna

Sh. O.P.Gupta Mobile: 9918116765 Tel 0164-2238445 email:flccbti@gmail.com

7.

FLCC Barnala

Vikas Bhawan BDPO Office Barnala - PIN148101

Sh. N.K.Kapoor Mobile:9814567023 Tel: 01679230226

GOVERNMENT BUSINESS

Pay Taxes through our Branches Government Accounts Centralised Pension Processing Center (CPPC) (FAQ) Centralised Pension Processing Center Public Provident Fund Senior Citizens Savings Scheme Government Business Authorised Branches New Pension Scheme / Swavalamban

State Bank Freedom - Mobile Banking Services

23

Highlights Of This Service IMPORTANT NOTICE Away from home, bills can be paid or money sent to the loved ones or balance enquiries done anytime 24x7!!! That is what State Bank FreedoM offers -convenience, simple, secure, anytime and anywhere banking. Mobile Banking Service over Application/ Wireless Application Protocol (WAP) The service is available on java enabled mobile phones over SMS/ GPRS where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on both java and non java phones with GPRS connection.

The following functionalities are available in the application based service/ WAP: Funds transfer (within and outside the bank using NEFT)

Enquiry services (Balance enquiry/ Mini statement)

Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations, Subscriptions

M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV connections and receive recharge pins for DigitalTV/Videocon d2h, Merchant payment, SBI life insurance premium) ----------------------------------------------------------------------------Business Rules governing Mobile Banking Service over Application / WAP The Mobile Banking Service will be available to all the customers having Current/ Savings Bank Account(Personal segment). The customers will have to register for the services.

Daily transaction limits for fund transfer/ bill/ merchant payment is Rs.50,000/- per customer with an overall calendar month limit of Rs.2,50,000.00

The service will be carrier-agnostic i.e. all customers can avail the mobile banking service with the Bank irrespective of the service provider for their mobiles.

The service is free of charge. However, the cost of SMS / GPRS connectivity will have to

24

be borne by the customer.

CORE BANKING SOLUTIONS: VALUE ADDED SERVICES CORE POWER AND MULTICITY CHEQUES

CORE POWER : PERSONAL SEGMENT

S.No. 1.

P-SEGMENT (INCLUDING AGRI.) TRANSFER OF FUNDS Transfer of funds by debiting Savings Bank/Current Account from home branch any other account (self or third party) at another branch, for same day credit

to

At home centre.

For such local transfers : No ceiling and no charges.

Non-home centre : Above RS.20000.00 : RS.20.00 per

Upto Rs.20000.00 : No charges transaction.

2.

DEPOSIT OF CASH Deposit of cash, by the customer or by the third party, for same day credit to the deposit/loan account from a non-home branch up to

Maximum Ceiling : Rs.20000.00 Charges : NIL

COLLECTION OF CHEQUES/ INSTRUMENTS 3. For same day credit to the account in respect of cheques/ instruments. a) Deposited at the home branch and drawn on other branches at home centre. - No charges will be levied on such credits irrespective of the amount.

25

b) c)

Deposited at home branch and drawn on our branches at non-home centre. Deposited at our non-home branch and drawn on our home/other branches

For b) and c) above : Upto Rs.20000 : No Charges Above Rs.20000 per transaction Rs.20

COLLECTION OF CHEQUE Deposit of cheques/instruments at any outstation branch (for credit to the account at home branch) which are drawn on at that outstation centre on

a) Our branches b) On other banks branches. On clearance, proceeds of such cheques/instruments will be credited to the customers account at the home branch.. Upto Rs.20000.00 No Charge Above Rs.20000.00 Rs.20 per transaction

To be recovered from the clearing proceeds. As tendering of such cheques/instruments will be done mostly through Drop Boxes, acceptance of these transactions will be based upon the account number/information provided in the pay-in-slip/Cheque.

26

ENCASHMENT OF CHEQUES Encashment of SB/CA cheques by the account holder at any branch. Such encashments can be for a) Cash withdrawl b) For transfer the proceeds to any other SB/CA account (self or third party) at another branch. c) For issuances of Drafts/Bankers Cheque/TT

Encashment of cheques as above upto Rs.20000/: No Charges

Above Rs.20000/- Transactions will be allowed only through Multicity cheque(s).

In case of , normal charges of issuance of drafts/ Banker cheque (s) issuance / TT issuance will charged additionally @ Rs.2.50 per Rs.1000/- (Min. Rs.25/- Max. Rs.10000/-) For remittance by cash deposit above Rs.10000/- Rs.20/- extra will be charged).

DEPOSIT ACCOUNTS RATE OF INTEREST (1.7.2012) NATURE RATE OF INTEREST NORMAL MINIMUM BALANCE Semi Urban ACCOUNT 1. Savings Bank A/c w.e.f. 03.05.2011 Urban

SENIOR CITIZEN Rural

27

A. Domestic a. with cheque book facility b. without cheque book facility c. No Frills Account B. Non-Resident a. NRO b. NRE 4.00 4.00 4.00 4.00 Same as domestic deposits 4.00 4.00 0 0 0 4.00 4.00 250 500 500 4.00 4.00 500 1000 1000

2. Term Deposit A. Domestic Term Deposits (All maturities) 7 to 14 days 15 to 45 days 46 to 90 days 91 days to 180 days 181 days to < 1 year 1 year to 554 days 555 days 556 days to 2 year > 2 year to 998 days 999 days 1000 days to 3 year 3 year to 5 year 5 year to 8 year 8 year to 10 year Rate of Interest (w.e.f. 01.07.2012) Below Rs.1 Corer 7.00# 7.00 7.00 8.00 8.25 9.25 9.50 9.00 9.00 9.00 9.00 9.00 9.00 9.00

28

RATES OF INTEREST OF LOANS RATE OF INTEREST (w.e.f. 17.08.2011) PROCESSING CHARGES LOANS 1. Housing Loan Upto Rs 30 Lac More than Rs.30 Lac to 75 lac Floating Category (w.e.f. 21.05.2012) Fixed Category Upto 10 years 12.75% 12.75% 0.25% Max. 20, 000/10.75% 10.75% 11.50% 0.25% Max. 20, 000/Above Rs. 75 lac Above Rs. Lac

2. Personal Loan 17.25% scheme 3. Vehicle Loan a) Two Wheeler Loans b) Three Wheel Loans c) Car Loan Upto 3 yrs For New Cars For Old Cars 4. Educational Loans 13.50% 11.25% 17.00% N.A. 16.75%

1.10%

1.10%

>3 to 5 yrs.

> 5 to 7 yrs

11.25% 17.25%

11.25% 17.25%

0.50% 0.50%

Upto Rs. 7.50 lakhs

Rs.7.50 lakhs upto 20 lakhs 13.00% 29

Different Deposit And Loan Schemes Offered By The Bank The Bank is offering various schemes of deposit and loans .These can be studied under the two different headings separately as following.

I. Different Types Of Deposit Accounts

1. Saving Bank A/c A Saving Bank A/c can be opened with an initial deposit of Rs.500/- without Cheque Book facility and Rs.1000/-with Cheque Book facility. Eligible categories to open SB A/c: 1. Any individuals 2. Joint A/c with others in the form of 'either or Survivor', 'Former or Survivor', and 'joint' etc. 3. Joint Hindu family (HUF) 4. Coop Societies, Clubs, Societies, Associations etc. The intending customer should visit the bank to fill in A/c opening forms with complete particulars such as parentage, occupation, address, latest two passport size photographs, residence such as copies of Voter card, Passport, Telephone/Electricity bill etc. and PAN or form No.60. The accounts are required to be introduced properly by the existing account holder of the bank or any person known to the bank. Only 30 withdrawals are allowed per half year for a saving Bank A/c exceeding which service charges are levied by the bank. A minimum balance of Rs.500/- (without Cheque Book) and Rs.1000/- (with Cheque Book) has to be maintained in the account, otherwise services charges are levied on monthly Basis. At the time of opening the account, pass book is issued to the customer, which needs to be accompanied every time when payment is drawn through a withdrawals form. Maximum limit of withdrawal form is Rs.2000/- with passbook. Nomination facility is also in these accounts. A depositor or depositors can nominate one Person only.

2. Current A/c A Current A/c can be opened with the initial deposit of Rs.5000/-. It can be opened in the name of individual, a Sole Proprietary Concern partnership firm, club, Religious Institution, 30

Association Govt. / Semi Govt. Dept., Local Bodies. As usual, all prospective applicants need to fill in the Account opening forms wherein following documents are required to be attached: 1. Sole Proprietary Concern - Declaration of Sole Proprietorship 2. Partnership firm - Partnership Deed duly attested 3. Clubs, Schools, Societies, Association. 4. 1. Certificate of Registration 2. Copy of Bye Laws. 3. Memorandum of Association, if any. 4. Resolution of Board of Directors. 5. Limited Companies, Pvt. Ltd. Companies 6. Trusts 1. Instrument or Document of Trust 2. Resolution 3. Certification of registration. All Current A/c need to be introduced properly from another current account A/c holder only. Staff members are not allowed to introduce a Current A/c. A minimum balance of Rs.5000/- has to be maintained. Recent Passport size photographs of the operator/s need to be affixed on the AOF. All payment is made by Cheques only. There is no restriction on the number of withdrawals unlike that in SB A/c Pass Book is issued at the time of opening of account. Statement of account can also be got issued.

3. Recurring Deposit A/c A Recurring Deposit A/c can be opened with a certain initial deposit wherein a Depositor needs to deposit money by way of monthly installments over stipulated period. The period may be 2, 24, 36, 48, 60 month etc. On the expiry of the period, the accumulated amount along with interest is paid in lump sum. All individuals, jointly with others minors, blind/illiterate person etc. can open the A/c. Rate of interest on Recurring Deposits for various periods will be the rate applicable on term deposit for that period. Minimum monthly installment of the A/c is Rs.100/Maximum period is 10 years. 31

The intending customer should fill in A/c opening form with complete particulars such as parentage, occupation, address etc. Two passport size photographs are required to be affixed along with furnishing of residence proof such as copies of ration card, Voter card, Passport, Telephone/Electricity bill etc. and PAN or Form No.60. The account is required to be introduce properly by the existing A/c holder of the bank of any person know to the bank. On the expiry of the stipulated period, accumulated amount is paid to the customer.

4. Term Deposit A/c Term Deposit is a deposit received by the bank for a specific fixed period which is withdraw able after expiry of said period. Eligible categories to open Term Deposit A/c

Individual Joint A/c with other in the form of Either or Survivor , Former or Survivor, any one or survivor jointly etc.

Minors Illiterate persons Blind person Joint Hindu Family (HUF) Coop. Dept, Clubs, Societies, Associations etc.

The intending customer should fill A/c opening form with complete particulars such as parentage, occupation, address etc. Two passport size photographs are required to be affixed along with furnishing of residence proof such as copies of Voter Card, Passport, Telephone/ Electricity bill etc and PAN or Form No.60. The account is required to be introduced properly by the existing A/c holder of the bank or any person known to the bank. A minimum of Rs.1000/can be placed in a term deposit. Minimum & maximum period for which the amount is place in a term deposit are fixed by the bank from time to time. In a fixed deposit A/c, it usually ranges from 7 days to 120 months whereas in Long Term Deposit, The minimum period is 12 months. Rate of interest is fixed by the bank from time to time, keeping in view the market trends. Interest on Fixed Deposit can be fixed quarterly, half yearly or yearly etc. But in Long term deposit it is cumulative with quarterly rests with the

32

result that is paid only on maturity. After opening the account in Computer, FDR is issued to the customer. A TDS is to be deducted at source as per Income Tax Act. The mode of operation should be clearly mentioned while opening the A/c. Term deposit A/c can also be opened with Cheques drawn on the same branch or other banks. After getting proper discharge on the back side of the FDR from the depositor payment can be made on due date. For payment before due date, The FDR has to be discharged on the back side by all the operators. FDRs can be renewed on due date by mentioning the period for which they are to be renewed on the back side. TDS is deducted if interest is Rs.10000/- and more in a financial year prohibition for payment in cash The payment of FDR is prohibited to be made in each if the amount of the FDR along with interest exceeds Rs.20,000/- . So usually the payment of FDR should be made either by way of Bank Draft/ Pay order or through an a/c.

5. Saving Bank-No frill A/c The No Frill A/c can be opened by any person without furnishing any resident proof or any proper introduction. The A/c Can be opened with a minimum amount of Rs.10 /- only. In such accounts, the Balance should not exceed Rs.50000/- otherwise, it will become an ordinary SB A/c. No cheque book is allowed to be issued to the customer. The condition of maintaining any minimum balance in this A/c is waived off.

LOANS SCHEMES OF STATE BANK OF PATIALA

SBP- HOME LOAN

Puspose

To purchase or construct a newfold house/flat. To repair/renovate/extend/alter an existing house.

Eligibility criteria Loan to value ratio

Age over 21 year and repaid up to the age of 70 year Upto rs. 20 lacs :- 90% Above Rs. 20 lacs :- 80%

Repayment

25 years under floating interst rate option 33

10 years under fixed interst rate option

Interst rate per annum Pre payment/pre closure penalty Loan available

Upto Rs.30 lacs :- 10.75% Rs.30 lacs to Rs. 75 lacs :-10.75% Above Rs. 75 lacs :- 11.50%

No pre-payment / pre-closure penalty for all Home Loans At all branches of state bank of patiala

SBP-RENT

Puspose

Finance against assignment of future rentals to owners of residential buildings / commercial property to meet business needs and/or other genuine personal needs of the owners (lessors) but shall not be for any speculative purpose whatsoever.

Eligibility criteria

Owners of residential buildings and commercial properties situated in Metro and Urban areas, which are to be rented or already rented to PSUs / MNCs / Banks / large & medium size Corporates with External credit rating (ECR) of not below BBB (Investment grade).

Loan quantum Lowest of i).60% of value of the property mortgaged (as per latest valuation report of the Banks approved valuer) OR ii).Maximum permissible under the scheme OR iii).60% of (total rent receivable for the residual current lease period or loan period, whichever is lower minus total of 34

advance deposit, estimated amount of property tax, service tax, TDS and other statutory dues for the period) Min. Rs.1 lacs. Max. Rs.1 crore for non-corporates and Rs.5 crores for corporates.

Repayment

EMI shall be for the same frequency at which rent is received & installment shall be front ended i.e. shall be recovered at beginning of the period.

Pre payment/pre closure penalty 1% of the loan amount prepaid Processing charges 2% of loan amount. Maximum Rs. 1,00,000/-

SBP- CAR LOAN ( FOR NEW VEHICLES)

Puspose

For purchase of new passenger cars/jeeps/multi utility vehicles (MUVs) and SUVs)

Eligibility criteria

Age: 21 to 65 years. However the loan should be repaid upto 70 years

Loan to value ratio

No ceiling of loan amount. Maximum loan amount to be 30 times the net monthly income / 2.5 times the net annual income. The income of spouse, father, mother, brother and sister can be included provided he / she guarantees the loan.

Repayment

The loan to be repaid in suitable monthly/quarterly 35

installments within a period of 7 years. Interst rate per annum margin 15% of the road price of the vehicle. 11.25%

SBP- LOAN TO PENSIONERS

Puspose To meet personal expenses. Eligibility criteria All Central, State Govt, Defence and SBPPensioners/family pensioners whose pension accounts are maintained by our branches. Loan to value ratio A maximum of 12 months net pension with a ceiling of Rs.3,00,000/- For family pensioners 9 months net pension with the ceiling amount is Rs.1,50,000/Subject to EMI / NMI ratio not to exceed 40% in any case. Repayment Up to the age of 65 yrs = 48 M Maximum >65 yrs to 70 yrs = 36 M Maximum >70 yrs to 72 yrs = 24 M Maximum Loan avialble All branches maintaining pension accounts. The loan to be given by the branch paying the pension.

36

SBP- LOAN FOR EARNEST MONEY

Puspose To finance applicants for earnest money for booking of residential plots/built up houses to be sold by Govt. housing agencies such as Urban Development Authorities like HUDA/PUDA and State/UT Housing Boards etc. Eligibility criteria Individuals above 21 years of age with a steady source of income with capacity of repayment. Loan amount 100% of applicable money, subject to maximum of Rs. 10 Lacs Repayment In case of unsuccessful applicants: On receipt of refund from the concerned authority.

In case of successful applicants: Lumsum repayment of the loan. If the applicant avails regular housing loan from us for constructions on the plot allotted or for purchase of plot under SBP-Realty, the loan may be paid in lump sum out of the proceeds of the SBP-Housing / Realty loan. Interst rate per annum 4.50% above Base Rate (Base Rate is 10.50% w.e.f.

17.08.2011) Processing fee 0.50% of the loan amount minimum Rs. 100/Loan available At all branches of state bank of patiala

37

SBP GYAN JOYTI EDUCATION LOAN SCHEME

Puspose

To provide financial assistance to deserving and meritorious student for Pursuing higher studies in India or abroad.

Eligibility criteria Should be an Indian.National Secured admission to professional/ technical courses through Entrance Test/ Selection process secured admission to foreign university/Institution Loan amount Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings. Studies in India Max Rs.10 lacs Studies abroad Max. Rs.20 lacs. Repayment After completion of mortatorium period . loan should be repaid in 5-7 years Interst rate per annum 4.50% above Base Rate (Base Rate is 10.50% w.e.f. 17.08.2011) Processing fee 0.50% of the loan amount minimum Rs. 100/Loan available At all branches of state bank of Patiala

38

SBP-PERSONAL LOAN

Puspose

General-purpose loan for individuals for meeting their varying needs.

Minimum Monthly Income Rs. 6000/- per month for employees/ pensioners and
Rs. 60000/- p.a. for professionals and self employed individuals as per latest income tax return.

Loan limit Rs.25000 to Rs. 7.50 lacs Repayment

Up to 60 months in equated monthly instalments

Interst rate per annum Processing fee

1.00% of the loan amount + service tax

17.25%

Loan available

At all branches of state bank of Patiala

39

CHAPTER III

COOPERATIVE BANKING INTRODUCTION

Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. The Cooperative banks have a history of almost 100 years. The Cooperative banks are an important constituent of the Indian Financial System, judged by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The cooperative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary cooperative banks. While the cooperative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units, home finance, consumer finance, personal finance, etc.

DEFINITION A cooperative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.

40

STRUCTURE OF COOPERATIVE BANKING

RBI

NABARD

SCBs

SLDBs

UCBs

CCBs

CLDBs

PACS PLDBs BRANCHES OF SLDBs

SCBs: State Cooperative Banks SLDBs: State Land Development Banks UCBs: Urban Cooperative Banks CCBs: Central Cooperative Banks CLDBs: Central Land Development Banks PACS: Primary Agricultural Credit Societies PLDBs: Primary Land Development Banks

41

TYPES OF COOPERATIVE BANKS

1) STATE COOPERATIVE BANKS (SCBs) State cooperative banks are a federation of central cooperative banks and act as a watchdog of the cooperative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. State cooperative banks lend money to central cooperative banks and primary societies and not directly to farmers.

2) CENTRAL COOPERATIVE BANKS (CCBs) Central cooperative banks are the federations of primary credit societies in a district and are of two types those having a membership of primary societies only and those having a membership of societies as well as individuals. The funds of the bank consist of share capital, deposits, loans and overdrafts from state cooperative banks and joint stocks. These banks finance member societies within the limits of the borrowing capacity of societies.

3) PRIMARY AGRICULTURAL CREDIT SOCIETIES (PACS) Cooperatives have played a major role in the supply of finance to agricultural sector for the development of land, irrigation system and for its mechanization. The agricultural cooperative credit in Punjab is divided into two sectors mainly, one dealing with short and medium-term credit and the other with the long-term credit. The long term credit is awarded from the Punjab State Cooperative Land Mortgage Banks at the apex and the Primary Cooperative Land Mortgage Banks at district/tehsil level.

4) PRIMARY COOPERATIVE BANKS (PCBs) They are non-agricultural societies. These are of two types: Urban cooperative banks and Salary earners societies. Development of PCBs is looked after by the RBI. The RBI and IDBI offer them concessional refinance facility on a selected basis. They operate in urban and semiurban areas. They provide housing finance and loans and advances for various purposes such as petty trade and industry.

MISSION:- Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency

and structural reforms. 42

VALUES & PRINCIPLES:"Cooperatives" A cooperative is an system voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.

PRINCIPLES:Voluntary and open membership : Cooperatives and voluntary organisations, open to all

persons able to use their services and willing to accept the responsibilities of membership, without social , racial , political and religious discrimination. Democratic member Control : Cooperatives are democratic organisations controlled by

their members , who actively participate in setting their policies and making decisions . Men and women serving as elected representatives are accountable to the membership. Members' Economic Participation : Members contribute equitably to,

and democratically control, the capital of their cooper-ative. At least partially that capital is usually the common property of the cooperatives. Members usually receive limited compensation, if any, on Capital Subscribed as a condition of membership.Members allocate surpluses for any or all of the following purposes :: by setting up reserves, part of which at 1.Developing their cooperatives possibly 2.Benefiting

least would be indivisible

the members in proportion to their transaction with the cooperative and supporting other activities approved by the membership Autonomy and Independence: Cooperatives are autonomous , self-help

organisations controlled by their members . If they enter into agreements with other organisations, including governments, or raise capital from external sources,they do so on terms that ensure democratic control by their members and maintain their cooperatives autonomy. Education, Training and Information: Cooperatives provide Education and Training for

their members, Managers and employees so they can contribute effectively to the development of their cooperatives.

43

Cooperation among Cooperatives :

Cooperatives serve their members

most effectively and strengthen the cooperatives movement by working together through Local, National, Regional and International structures. Concern for Community : Cooperatives work for the sustainable development of

their communities through policies approved by their members. There motto is to make the progress line go higher and higher.

DIFFICULTIES FACED BY COOPERATIVE BANKS IN RURAL AREAS

1) Slow progress: The progress of co-operative banks is not up to the expectation and is slow when comparing other type of banks because of many restrictions on their operations. 2) Limited scope of investment: The main objective of co-operative banks is to provide credit facilities to the poor people i.e., to small and marginal farmers and other weaker sections. They were originally having limited scope to invest their surplus funds freely. 3) Delay in decision making: The co-operative banks directly or indirectly by various agencies i.e., NABARD, RBI. Thus it takes long time to take decision on some important issues. This, in turn affects the progress of co-operative banks. 4) Lack of training facilities: Generally the staff of co-operative banks is urban oriented and they may not know the problems and conditions of rural areas. Lack of training facility concerning these areas also affects the growth of co-operative banks. 5) Poor recovery rate: The recovery performance of the co-operative banks is not up to the mark. the reason for poor recovery of loans and mounting overdue are; inadequate supervision and follow up action to assess the end use of credit by co-operative banks due to inadequate staff in banks, poor Identification of beneficiaries, inadequate generation of output and income by the beneficiaries, poor marketing facilities. 6) Lack of local participation: Rural co-operative banks have not received sufficient local participation. The cooperative banks have been thrust upon the rural people from above without involving local people in its operation and management. In this connection, it is suggested that

44

knowledgeable persons in the rural areas need be associated with the management of cooperative banks. 7) Lack of co-ordination: There is lack of proper co-ordination between co-operative banks and other institutional financing agencies like commercial banks and RRBs. Also, there is inadequate co-ordination between co-operative banks and other developmental agencies operating in rural areas. This has hampered the progress of co-operative banks. 8) Poor development of rural areas: In spite of several efforts made during the course o development plans to promote the development of rural areas, it has not taken place in a significant way. The areas, at present lack economic infra- structures like; facilities of marketing storage and distribution of inputs. Besides, social infrastructure like; schools, medical facilities. As a result, co-operative banks find it extremely difficult to operate in such areas.

DEPOSIT SCHEMES INTEREST RATES

Interest Rates on Deposits with effect from 30th july, 2010

Period 7 Days to 14 Days 15 days to 45 days 46 Days to 90 Days 91 Days to 179 Days 180 to <1 year 1 year to < 2 years 2 year to < 5 years 5 years and above

Below Rs.1.00 Cr. 3.00% 3.50% 4.25% 5.50% 6.50% 7.00% 7.25% 7.50%

Rs.1.00 Cr. & above 3.00% 3.50% 3.50% 4.25% 5.50% 6.25% 6.25% 6.25%

*Interest Rate @ 0.50% over and above these rates to the Senior Citizens will be admissible on single Fixed Deposit Receipt of Rs.5000/- and above for one year and above.

45

CHAPTER IV

PROJECT

COMPARATIVE STUDY OF THE CUSTOMER PERCEPTION OF THE SBOP AND COOPERATIVE BANK

PROJECT OVERVIEW

In today competitive environment where corporate are constantly searching for ways to keep a float and sustain the market share, they have to find newer and better ways to satisfy the customer needs. To run any organization successfully the management needs to think always for the betterment of their service and product, every time there is a chance of improvement in the functioning of every organization specially when we talk about the banking sector in past there is very less or no competition in the market and the banks has no pressure to provide better facilities to the peoples but in recent years the competition is increased due to the entry of the private banks and other money lending units. Considering this the state cooperative banks need to be more careful and needs to take such steps which favors hem to stay ahead in the market. This has always been the motto of Cooperative Banks and in order to achieve this, I was entrusted in the dual task of doing a comparison of customer perception analysis of the Cooperative bank branch and the SBOP branch in the village Daun Kalan, Patiala.

RATIONALE OF THE STUDY

Banking operations are becoming increasingly customer dictated. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. By going with the topic they can identify their own strengths and

46

weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. This comparison helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the bank and outside. With better understanding of customers' perceptions, banks can determine the actions required to meet the customers' needs.

OBJECTIVES OF THE STUDY

To have a comparison between the Customer Perception of the Village Daun Kalan Branches of Patiala Central Cooperative Bank and State Bank of Patiala.

2 3

To compare the different factors of the banks which influence the customer perception. To study and understand the factors which motivate the customers while going for Banking Services

To understand and compare the level of Advertisement impact on customers followed by the both banks

5 6 7

To study that if customer prefers the computerized banking or not. To compare that if there is influence of image or brand of the bank on the customer To have a comparison that if the customer is differing in his perception for a Government oriented bank and private Bank.

47

CHAPTER V

RESEARCH METHODOLOGY Research Problem

Comparison of the customer perception of the State Bank of Patiala and Cooperative Bank .

Research Design
Research Design is exploratory and descriptive which helps me to explore the factors influencing the perception of the customers and to describe the gap between the banks at various levels.

Sampling Design
The study aimed to survey 100 samples who are the customers, visiting in the banks. 50 respondents are of the customers of the SBOP and the other 50 are the customers of the Cooperative Bank. Sampling Design was such to have a comparison of the Customer Perception of the both banks. The respondents were selected on the basis of convenience sampling.

Data Collection:
Both primary and secondary data have been collected for meeting the objectives of the current study. For the purpose of the collection of the primary data, personal interview of the respondents was conducted. An unbiased, undisguised structured questionnaire was prepared which was administered to the respondent for the purpose of getting the information. With the reference of certain previously carried studies, certain statements for getting out the customer perception were formulated and these were clubbed together to formulate the questionnaire having two parts: First part was having 10 general questions in addition to the demographic details and the second part dealt with the 10 elements of the bank showing the customer level of preference. 48

For the purpose of secondary data, secondary sources of information like magazines, newspapers, journals; studies conducted in past etc. have been referred. The main sources of secondary data in the study 1. Banks Detail Books 2. Websites 3. Books

Analysis Techniques
The questionnaire is having the alternative choices. Questions having alternative choices have been analyzed by taking percentages and by the use of Likert scaling.

Scope of the study

The scope of the study is limited to the customers visiting to the i.o.c.branch of the State bank of Patiala and the customer visiting to cooperative bank branch in Mansa. Present study has been restricted to time period from June 2012 to July 2012.

49

CHAPTER VI DATA ANALYSIS AND INTERPRETATION

6.1
Option

Demographic Analysis of the Customers based on occupation.

no. of respondents in sbop percentage no. of respondents in coopetaive bank 40% 30% 20% 25 10 12 50% 20% 24% Percentage

farmer businessman Salaried employe other

20 15 10

10%

6%

50 45 40 35 30 25 20 15 10 5 0 farmer businessman Salaried employee other

sbop cooperative bank

Analysis And Interpretation - Out of the respondent customers of Cooperative Bank and SBOP Majority is of farmers. Cooperative bank has more farmer customers in comparison with SBOP because it is mainly a rural bank. It doesnt mean that it has less percentage of customers of the businessman and salaried employees. Businessman and the salaried employees are more among the respondents of the SBOP. Other customers are students or housewives.

50

6.2 Type of account

Option

no. of respondents percentage in sbop

no. of respondents in coopetaive bank

Percentage

Savings FD Both Other

24 14 10 2

48% 28% 20% 4%

20 15 10 5

40% 30% 20% 10%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Savings FD Both Other sbop cooperative bank

Analysis and Interpretation The comparison of the type of accounts which the respondents are having in their respective banks, have little difference. The respondent customers of

Cooperative Bank are having Savings, Fixed Deposit Accounts. Comparatively Savings percentage is more and FD percentage is less in SBOP. Perhaps the rate of interest offered can be the reason of this minor difference.

51

6.3

No. of Respondents who have ever taken any loan from the bank

Option

no. of respondents in sbop

percentage

no. of respondents in coopetaive bank

percentage

Yes No

27 23

54% 46%

32 18

64% 36%

70% 60% 50% 40% 30% 20% 10% 0% yes no sbop cooperative bank

Analysis and Interpretation Majority of the respondents of the Cooperative Bank have taken loan from the bank. On the other side of there is approx equal number of customers of the SBOP have taken loan and who have not. They only are having deposit account in the bank. The reason may be the Cooperative Bank as a main rural lending bank.

52

6.4

Information source of the schemes and services of the bank

Option

no. of respondents in sbop

percentage

no. of respondents in coopetaive bank

percentage

Personal visit Advertisement Word of mouth other

19 13 10 8

38% 26% 20% 16%

26 5 12 7

52% 10% 24% 14%

60% 50% 40% 30% 20% 10% 0% Personal visit Advertisement Word of mouth other sbop cooperative bank

Analysis and Interpretation - Data shows that Majority of the respondents from the Cooperative Bank and SBOP respectively, come to know about the schemes and services of the bank by visiting personally. Cooperative Bank is lacking in its advertisement in comparison to SBOP. Word of Mouth is also an information source. Reason may be interpreted that branches of the bank do not pay much heed to advertisement and also the customers prefer to visit the bank personally for the detail of banking services offered.

53

6.5

Type of rate of interest preferred

no. of respondents in sbop percentage no. of respondents in coopetaive bank 4% 36% 60% 4 24 22 8% 48% 44% percentage

Option

Yearly Half yearly monthly

2 18 30

60% 50% 40% sbop 30% 20% 10% 0% Yearly Half yearly monthly cooperative bank

Analysis and Interpretation Most of the customers of Cooperative Bank are from agricultural background so that half yearly rate of interest is preferred, because of their crop cycle. Salaried employee and businessmen prefer to pay monthly Rate of interest.

54

6.6 Appreciation for being a good Customer

Option no. of respondents in sbop Yes No 36 14 72% 28% percentage no. of respondents in coopetaive bank 15 35 30% 70% percentage

80% 70% 60% 50% 40% 30% 20% 10% 0% yes no sbop cooperative bank

Analysis and Interpretation Less number of the respondents from the Cooperative Bank says that they have a received positive appreciation from the bank for being a good customer, while the majority denies it. Looking at the data of SBOP respondents the percentage is however opposite, Majority is favoring. There is set procedure in the bank that if you are a good customer sthe interest but there is no such procedure in Cooperative Bank.

55

6.7

(A) Future Preferable bank

option cooperative Stick to same Some other

No. of respondents in sbop 13 27 10

Percentage 26% 54% 20%

sbop
60% 50% 40% 30% 20% 10% 0% cooperative Stick to same Some other sbop

6.7 (B) Future Preferable bank

option Sbop Stick to same Some other

No. of respondents in cooperative bank 17 23 10

Percentage 34% 46% 20%

56

cooperative bank
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Sbop Stick to same Some other

cooperative bank

Analysis and Interpretation - By the experience near about half of the respondents of the Cooperative bank say that they will also stick to the same bank for same requirement in future, while other majority wants to shift to SBOP and some other bank. The data analysis of SBOP shows that most of respondents want to remain with SBOP. While other want to go for Cooperative Bank and to shift for some other bank. The reason may be the requirement of the customer, schemes offered, rate of interest offered and also the personal attachment.

57

6.8 Motivational Factors

Option no. of respondents percentage in sbop no. of respondents in coopetaive bank Interst Schemes Popularity All Other 18 15 7 10 0 36% 30% 14% 18% 2% 12 23 4 9 2 24% 46% 8% 18% 4% percentage

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Interst Schemes Popularity All Other sbop cooperative bank

Analysis and Interpretation - From the survey it was found that motivational factor, for opting for the banking service, of the most of the respondents of Cooperative bank is Schemes offered by the bank while other factors are like rate of interest, popularity etc. Data interpretation of the SBOP shows that maximum percentage is with rate of interest, while other factors are schemes and popularity. Almost equal number considers these all factors in both of the banks.

58

6.9 Influence of image or brand of the bank on the customers

Option

no. of respondents in sbop

percentage

no. of respondents in coopetaive bank

Percentage

Agree Disagree

39 11

78% 22%

28 22

56% 44%

80% 70% 60% 50% 40% 30% 20% 10% 0% agree disagree sbop cooperative bank

Analysis and Interpretation Majority of the respondents from SBOP and Cooperative bank agree that image or name of the bank has its influence on customers. Customers consider the brand of the bank while going for the banking. It can be interpreted that it might influence the decision of the customers and prospects.

59

6.10

Essentiality of computerized Banking

Option

no. of respondents in sbop

percentage

no. of respondents in coopetaive bank

Percentage

Strongly disagree Somewhat disagree neutral Somewhat Agree

0 0 10 15

0% 0% 20% 30%

0 2 11 18

0% 4% 22% 36%

Strongly agree

25

50%

19

38%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% strongly disagree somewhat disagree neutral somewhat agree strongly agree

sbop cooperative bank

Analysis and Interpretation Major part of the respondents from the cooperative bank agree and strongly agree to the need of computerized system in the bank. By the response of SBOP customers, majority of response agree and strongly agree to that computerized system is essential for modern banking. Cooperative Bank is still using the manual books for accounts instead of computerized banking as it is in SBOP. 60

6.11 bank

Customer differs in his perception for a Government Bank & private

Option

no. of respondents in sbop

percentage

no. of respondents in coopetaive bank

Percentage

Strongly disagree Somewhat disagree neutral Somewhat Agree

0 8 14 22

0% 16% 28% 44%

0 5 16 24

0% 10% 32% 48%

Strongly agree

12%

10%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% strongly disagree somewhat disagree neutral somewhat agree strongly agree sbop cooperative bank

Analysis and Interpretation More than half of the respondents from the cooperative bank agree that customer differ in his perception for a govt. bank and private bank. From the response of SBOP customers, it may be interpreted majority also agree to it. The reason may be interpreted as the customer feel that there is a genuine difference between a Govt. oriented bank and a private bank regarding the services, rate of interest, infrastructure and other factors. 61

LEVEL OF PREFERENCE
Range 10 Statements and 50 respondents of each bank Score Max. Score = 5*50 = 250 (strongly agree) Avg. Score = 3*50 = 150 (neutral) Min. Score = 1*50 = 50 (strongly disagree)

Sr. No

Basis of Comparison

Scores Cooperative SBOP 186 186 179 170 170 194 179 202 194 182

1 2 3 4 5 6 7 8 9 10

Schemes Offered Rate of Interest Loan Passing & Repayment Flexibility of Schemes Transparency Number of Staff Customer Dealing Bank Environment Advertisement Bank Image

193 177 182 158 154 118 149 123 119 153

62

Analysis and Interpretation

1. Schemes Offered: There is favorable response for the schemes offered by both of the banks. However it is more in case of Cooperative Bank because it is established for mainly the rural and agriculture services. So the village customer is more satisfied with the schemes offered by this bank.

2. Rate of Interest: Rate of Interest is also generating favorable response in both of the banks. However it is less favorable in case of Cooperative Bank. May be the customer feels that the rate of interest is less charged or the structure of rate of interest is more convenient in the SBOP.

3. Loan Passing and repayment: Survey shows that the loan passing and the repayment process is generating almost equal response in both of the banks. This process is favorable in both of the banks. May be the banks are adopting such a procedure where customer feels minimum harassment.

4. Flexibility of Schemes: Data analysis shows that SBOP customers are more favorable to the flexibility of schemes which they avail than in case of Cooperative bank.

5. Transparency: Research shows that both banks are having more than average response regarding the statement. But there is gap in the customer preference in both of the banks. SBOP is having more favorable response than Cooperative bank.

6. Number of Staff: Data analysis shows that the scoring of the Cooperative Bank respondents is much low than the average response but it is much higher in SBOP. Reason is that the Cooperative Bank is only having 3 staff members including branch manager for the service of customers. On the other side the number is seven in case of SBOP.

63

7. Customer Dealing: Cooperative Bank is also lacking in the customer dealing in comparison to SBOP, as scored by the respondents. The reason may be interpreted as the staff of the cooperative bank is less trained in comparison with the SBOP. Moreover the manual working, due to lack of computerized system, also affects the customer dealing.

8. Bank Environment: Survey analysis shows Customer is negatively scoring the banking environment in the cooperative bank because of less infrastructure facilities, the shortage of staff, the non-availability of computerized system, the staff behavior. SBOP is having positive score in this respect because of all the above stated factors and a fully air conditioned branch.

9. Advertisement: Survey analysis shows that majority of the respondents from the cooperative bank disagree with the advertisement campaign of the bank because most of the customers come to know about the schemes by the bank through their personal visit. The score given is the clear evidence of it. The respondents of the SBOP are favorable to the advertisement by the bank.

10. Bank Image: Cooperative has been given average score regarding its bank image while it is favorable in case of SBOP. The reason may be concluded the scam did by the previous branch manager of Cooperative Bank. The last branch manager has been accused of manipulating certain amount of loan. This had its influence on the bank image.

64

CHAPTER VII

FINDINGS OF THE STUDY

1. Majority of the customers of the cooperative bank and SBOP belong to agricultural background. 2. The percentage of respondents who have taken loan from Cooperative is more in comparison with SBOP. 3. This is shown by the research that personal visit of customers is the main source of information for knowing the bank schemes. 4. Most of the customers of the Cooperative Bank prefer to pay half yearly interest rate, while the salaried employees prefer to pay the interest monthly, this is also same in the case of SBOP. 5. Majority of the respondents do not respondents in Cooperative Bank do not receive any appreciation for being a good customer. But things are opposite in case of SBOP. 6. About the Future Bank Service, Majority of the respondents of the customers of SBOP want to stick with SBOP as in comparison with the Cooperative Bank. 7. Analysis shows that Schemes offered by the banks is the main motivational factor for the respondents of Cooperative Bank and the interest rate is the main motivational factor in case of SBOP. 8. Majority of the both respondents from the both admits that image or name or brand of the bank do influence the customer. 9. Essentiality of computerized banking is agreed by the respondents of the both banks. 10. Majority of respondents from both the banks agree that whether it is a Government Bank or Private Bank, customer perception is differing about the both type of banks. 11. The comparison between the schemes offered by the both banks reveals that Schemes offered by Cooperative Bank, being a rural lending bank, are little bit more preferred than SBOP. 12. The comparison between the interest rate offered by the both banks shows that interest rates of SBOP are little bit more attractive than the Cooperative Bank.

65

13. The customers perception about the loan passing and its repayment process is almost same in the both of the banks. 14. The percentage of different accounts having the customers of the two banks is relatively same. 15. Flexibility of schemes offered and transparency of the customer related processes is more satisfactory in the SBOP in comparison with Cooperative Bank. 16. The branch of the Cooperative Bank is lacking in its staff number. While the branch of SBOP is having sufficient number of staff members according to perception of its customers. 17. Customer service and dealing is also far behind the point in the Cooperative bank as it is satisfactory in SBOP. 18. Customers do not agree with the Cooperative bank environment. Comparatively, SBOP branch has a fully satisfied environment according to the perception of the customer. 19. Mainly Cooperative Bank is lacking in advertisement at local level. On the other side SBOP advertisement campaign makes agree its customers. 20. The bank image of Cooperative Bank is little bit lacking in comparison with SBOP, as going with the response of the customers.

RECOMMENDATION AND SUGGESTIONS

1. More mass awareness campaigns should be organized in order to enhance market share of bank. So Bank should concentrate on its advertisement itself. 2. Bank should refocus on its interest rate as responded by people. Periodic review of the interest rate should be done. 3. There should be computerized system in the bank as it will reduce the time wastage of manual work and will lead to the better performance of the bank. 4. Training of the employees should be there to meet the needs of the time. 5. Proper posting of the staff should be done. 66

6. Customers satisfaction must be the top priority of the bank. 7. Maximum practical exposure should be provided to the job trainees so that they may handle the various enquiries of customer effectively. 8. Communication gap within the bank and with the head-office should be reduced. 9. Infrastructure facilities should be provided to the branch of Cooperative Bank, as it is catering to the 5-6 near by villages. 10. Banks is also advised to have proper internal control measures for monitoring its functions and transactions.

LIMITATIONS OF THE STUDY

1 Some respondents were hesitant in providing complete information.

2 The findings of this study are based on the expressed opinion of the respondents.
3 Difficulty was faced in getting the responses to various questions because the customers could not devote enough time to us and the communication problem was there. 4 This study only relates to one organization, so conclusions drawn may not be finding its utility in all the other banks. 5 Even the employees of the bank hesitated to give the complete & accurate data.

67

CONCLUSION
The project was undertaken to analyze and compare the customer perception of the two banks one is Cooperative Bank and other is State Bank of Patiala. The study concludes that State Bank of Patiala is providing various services to people . All functions performed by bank are computerized . core banking solutions like internet banking, ATMs, mobile banking helps the people at a very large scale . bank provide various facilities to its customers. Loans are provided to people at reasonable rates . in spite of this It is lacking at various elements, particularly at the branch levels, which reveals the edge of private sector banks over the SBOP, the lines at which the bank is lacking behind. Indiscipline and lack of commitment in these banks make peoples trust in the cooperative sector a casualty. People are still unaware of the services provided by the state bank of patiala due to lack of advertisement. There is a need to analyze and pick up early warning signals. A change is needed today in the state bank of patiala which is built on confidence in human capital - the most important of all resources - in commitment, creativity and innovation brought about by proactive management, membership and employees. The ability to capture knowledge and wisdom gives state bank their competitive advantage. A prerequisite is that participants from all parts of a cooperative organization know and understand its purpose, core values and visions. In this way, by keeping in mind the certain shortcomings, appropriate measures to overcome them should be adopted. So that the real purpose of the state bank of Patiala must be realized with a competitive advantage and the gap between the customer perception of the state bank of patiala and the other private and public sector bank, i.e. cooperative bank can be reduced.

68

BIBLIOGRAPHY
a. Books:

i.

Kothari C.R.(2007), Research Methodology; revised second edition; pages 7176, 84-85, 100-102

b. Web Pages:
1. http://en.wikipedia.org/wiki/Bank 2. http://en.wikipedia.org/wiki/Bank#Types_of_banks 3. http://www.sbp.co.in/aboutus.asp 4. http://www.sbp.co.in/boardofdirectors.asp 5. www.sbp.co.in/top-management.asp 6. http://www.sbp.co.in/highlights.asp 7. http://www.sbp.co.in/personal-banking.asp 8. http://www.sbp.co.in/agri_schemes.asp 9. www.sbp.co.in/financial_literacy.asp 10. http://www.sbp.co.in/cross_selling/cross_selling_forms.asp 11. http://www.sbp.co.in/personalbaking/sb-star-account.pdf 12. http://www.sbp.co.in/personalbaking/sbp_236.pdf 13. http://www.sbp.co.in/personalbaking/01sbphome_loan.pdf 14. http://www.sbp.co.in/personalbaking/01sbphome_loan.pdf 15. http://www.sbp.co.in/personalbaking/01sbphome_loan.pdf 16. http://www.sbp.co.in/personalbaking/04sbp_car_loan_newvehicles.pdf 17. http://www.sbp.co.in/personalbaking/04sbp_car_loan_newvehicles.pdf 18. http://www.sbp.co.in/personalbaking/04sbp_car_loan_newvehicles.pdf 19. http://www.sbp.co.in/personalbaking/08sbp_loan_to_pensioner.pdf 20. http://www.sbp.co.in/personalbaking/11sbp_gam_niwas_scheme_forfinancing_rural_housing.pdf 21. http://www.sbp.co.in/personalbaking/11sbp_gam_niwas_scheme_forfinancing_rural_housing.pdf 22. http://www.sbp.co.in/MainInterestRates.aspx 23. http://www.sbp.co.in/rates%20english.pdf

24. http://pbcooperatives.gov.in/PSCB.htm 25. http://www.pscb.in/index.php?mod=interest_rate&opt=Deposit 26. http://www.pscb.in/index.php?mod=interest_rate&opt=Loans 69

ANNEXURE

Dear respondent, I would be extremely thankful if you spare some time to answer the following questions. All the facts disclosed by you will be used for academic purpose only.

Personal details:
a. Name: ______________________________ b. Age: _____ Male Female Businessman Salaried Employee Other

c. Gender:

d. Occupation: Farmer

1. Which type of account do you have? Please tick.

SB

FD

Both

other

2. Have you taken ever any loan from this bank?

Yes

No

3. How do you come to know about the schemes and services of the bank? Personal Visit Advertisement Word of Mouth Other

4. Which type of rate of interest do you prefer, offered? Yearly

Half yearly

Monthly

5. Do you avail any appreciation from bank for being a good customer?

Yes

No

6. In future service of which bank will you prefer? SBOP Cooperative Stick to same some other

70

7. What factors motivate you while going for a particular banking service? Interest rate Schemes & terms Popularity of bank All Other

8. Do you agree that image or brand of the bank has its influence on the customers? Agree Disagree

9. Do you think that computerized Banking is the essential of modern banks? Strongly Disagree Somewhat Agree Somewhat Disagree Strongly Agree Neutral

10. Do you think that customer differ in his perception for a Government Bank & private bank?

Strongly Disagree Somewhat Agree

Somewhat Disagree Strongly Agree

Neutral

11. Indicate your level of preference for the following statements regarding the bank.

Schemes Offered Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Interest Rate Offered Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Loan Passing & Repayment Process 71

Strongly Disagree

Somewhat Disagree

Neutral

Somewhat Agree

Strongly Agree

Flexibility of Schemes Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Transparency of the process Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Number of Staff Members Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Customer Dealing Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Bank environment Strongly Somewhat Neutral 72 Somewhat Agree Strongly Agree

Disagree

Disagree

Advertisement Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Bank Image Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Thanks for Your Cooperation

73