+

CONSUMERS PERCEPTIONS ON KCC BANK LTD.

SUMMER TRAINING PROJECT REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR DEEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

SESSION 2014-16

SUPERVISED BY :
Mr. ANUJ NOHRIA

SUBMITTED BY:
ARUN KUMAR

Asst Prof

UID-14MBA1360

CHANDIGARH UNIVERSITY, GHARUAN MOHALI

DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic entitled
Consumers Perception on KCC Bank in Branch Office Hamirpur.
I further declare that this project work is based on my original work and no part of this project
has been published or submitted to anybody.

(ARUN KUMAR)

GUIDE CERTIFICATE

This is to certify that ARUN KUMAR of M.B.A. 3 rd semester bearing university UID Number
14MBA1360 has completed her summer training project under my guidance.

Project Guide
(MR. Anuj Nohria)
ASTT PROF.

ACKNOWLEDGEMENT

I, ARUN KUMAR, MBA Student in CHANDIGARH UNIVERSITY, GHARUAN is highly

grateful to all those who guided me in completing this project.
First of all my sincere gratitude goes to my project guide, Astt. Prof. ANUJ NOHRIA who
helped and guided me for this work. His conversation and encouragement will always be
remembered. In many stages of project, his prideful expertise and professional knowledge
provided crucial and key injection to the technical solution. I also would like to thanks all the
staff members of the KCC BANK LTD for their cooperation and support during this work.
Finally, I wish to thank my family and friends for their encouragement and support. Lastly I
would like to thank my respondents for extending their co-operation in valuable inputs.

ARUN KUMAR

PREFACE

The present era is undoubtedly a management era. Management is an important function in any
organization. A management is one of the most important fields which are widely used in every
stage of life. The effective management can be achieved only by effective management training
and developing skill to understand the organizational level this project work is a part of the
course of MBA and was done at KCC Consumer Perceptions.
This project is prepared on the basis of awareness of KCC Consumer Perceptions in market and
understanding the requirement of proper guidance to customers.
KCC offers loans for homes-for buying or constructing your home, refinance a Consumer
Perception availed from other institutions or even to extend or improve your existing home. This
project helps me to better understanding of market and financial products and their benefits.
Now I am feeling the great pleasure in delivering this project because of a better skill of handling
the situation and customer understanding.

INDEX
8.

Data analysis and interpretation

56

9.

Findings

68

10.

Conclusion And Recommendations

69

11.

Annexure-I (Questionnaire )

72

12.

Annexure-II (Bibliography)

76

EXECUTIVE SUMMARY

I have done my Summer Internship Project from KCC BANK HAMIRPUR. During my
Summer Internship Project; I implemented many concepts of Finance in the real life situation.
This project work helped me to apply theoretical knowledge into practical aspects on collected
data which was a worthy experience and during the discussion with company guide I realized
that how important the project report is for the company and me. I also realized how teamwork,
goal orientation and managing interpersonal relationships are integral part of professional life;
therefore this will definitely help me to develop qualities required for executive. In addition, I
understood products of my company and its targeted customers. Also I got information what are
the basic categories of bank products.
The customers who were not aware about the scheme say that KCC bank should improve their
promotional area through different media like T.V. radio. Print media, PR and through IMC

(Integrated Marketing Approach) and most of them votes for IMC. More than 80% of the
customers were satisfied with location and condition of the Bank and more than 50% were
satisfied with the process of disbursement, but maximum of the customers were dissatisfied with
the behavior of the employees, they give suggestions to that the KCC Bank employees should
change and improve their behavior towards their customers, from my findings I found that this
behavior of employees is due to daily routine work load from which they got stressed. I
recommend the bank to change the location of the employees from one branch to another and
give them more and more incentives and also to employ more employees from which work load
gets less and the employees will not feel any pressure and they will not feel any stress. Most of
the customers choose KCC Bank because of simple procedures and more number of branches
and the interest rates regarding their business was suitable according to them. Most of the
customers rank good about KCC bank.
The main purpose of this project work is to analyze the customer relationship management
services provided by the KCC bank and to check the level of satisfaction, towards this service,
among the customers. Consumer perception has become challenging issue for every financial
institution as every organization is trying to provide services superior to the competitors.
We did our research at the KCC bank, and the information we received there, along with the
secondary research, helped us in strengthening our knowledge base regarding the topic.
A questionnaire was chosen as a data gathering tool because given the time and cost restraints,
this proved to be the most effective method. Each of us verbally administered the questionnaire
to the customers and recorded the responses.
In general customers give the following suggestions like customized products, more number of
counters, improvement in employee behavior, provision of new schemes, use of IT and to
improve the promotional area. Most of the customers were satisfied with the overall services of
the bank and todays scenario they recommend to choose KCC bank.

Company Profile

INTRODUCTION
The Kangra Cooperative Bank Ltd. started in a very humble way as a small Thrift/Credit Society
in March, 1960 by a few friends of Distt. Kangra of Himachal to help out the people of Himachal
residing in Delhi to uplift their economic conditions and tide over the financial hardships.
Dedication, sincerity and honesty of these members/associates brought rich fruits and this
Thrift/Credit Society grew up into a big society within twelve years after its formation and
successful running was converted into a primary urban Cooperative Bank in 1972 by RBI and
was permitted to carry out banking activities including acceptance of deposits from public (nonmembers) by opening their Saving, Current and RD A/cs. Twenty three years there from in June
1995 it was granted a license to carry out the banking business by the Reserve Bank of India.
Thereafter, it was granted license to open branches and consequently six more branches were

added in February, May, December 1996, June 1998 ,October 2008 and the last one in July
2009. In May 1970 it purchased Paharganj building and reconstructed the same in 1993. In
October, 1997 it purchased the present premises at Janakpuri to set up administrative and HO.
Central accounts and Personnel department are functioning from this building. It has a board
meeting room. One branch also functions here. The main branch along with its service branch,
arbitration and recovery department is situated in its own three storied building at Paharganj. It
purchased another Building in April 2008 At Jagatpuri where its one of the existing Branches
has already been functioning.

AGBM and elections, audit etc are held on regular intervals. Bank is giving dividend to its
Share-holders regularly and lastly declared @ 18% the highest declared/paid so far. Bank has
also introduced three schemes of welfare nature for its shareholders. First one is where grant of
Rs. 20,000/- is given to the nominee of the deceased members and no interest is charged up to
50000/- liability in case of death of the member, the second one is where scholarship @ Rs.150/and Rs.200/- per month is given to the brilliant wards of the members and staff and the the third
one is to give one time incentive to those wards of members / staff who get 90 % marks in Board
examination. Amount of incentive is Rs.3100/- and Rs.5100/- for 10th and 12th class
respectively
All the branches are fully computerized with TBA in place. Further interconnectivity (ABB)
among all its branches along with the implementation of CTS has already been done .Board of
Directors has also prepared a Vision Document for 2008-09 to 2010-11 according to which
various targets have been fixed.

Membership has been planned up to 36000

Dividend up to 18% with 1% increase every year
Clientele 1.25 lakh

 Deposits up to 206 corers to 270 corers

Advances to increase 190 corers from 123 corers.
To purchase at least one more building for its branches which are on rent at present.
To impart 3-5 days training to each Staff members in next 3 years.
To get Scheduled Bank status.
To create a befitting set up matching the status of the Bank.
To Strengthen and upgrade IT system.
All the branches of the bank remain open for six days a week with full day banking service on
Saturday. For the convenience of its customers it is having agency arrangement with HDFC
Bank which enables the bank to issue Demand Drafts on HDFC branches across the country, to
arrange collection of out-station cheques within a week or ten days. Bank is also maintaining CSGL A/c with HDFC and also participates in the non-competitive bids of RBI for the purchased
of Govt. Securities.
For its employees bank has introduced several good schemes like cover of medical claim
insurance, covering expenses up to 2.00 lakh requiring hospitalization of the employee, his or her
spouse & up to

two childrens. Facility of housing loan up to ten lakh is also available for the

staff.
It has in place well defined service rules which ensure career growth to its employees. It also
celebrates annual day in which awards for best branch, workers etc. are also given.
Bank has also introduced welfare schemes for its employees which includes grant of Rs.1 lakh
on death and on permanent disability on duty. Additional reimbursement is also given in case of
serious deceases like heart, kidney transplantations, cancer, T.B. etc.
In order to improve the knowledge of the staff guest lectures are also arranged on important
topics related to the banking activities from time to time

10

History
Came into existence on 17th March 1920 (License No. RPCD.09/2009-10).
Indora Banking Union was merged and 2nd Branch of the Bank opened at Nurpur in
Jan1956
Palampur Banking Union was merged and 3rd Branch of the Bank opened at Palampur in
Jan1957
Nanaon Banking Union was merged and 4th Branch of the Bank opened at Hamirpur in
Oct1958

11

 The Bank suffered losses because of the partition in 1947 to the tune of Rs.10.64 Lacks
In Mar 1962, the bank suffering from the setback of partition was granted Rs.4.09 Lacks
by the Govt.
Govt. also provided Interest Free Relief Loan of Rs.3.98 Lacks and Govt. of India Loan
of Rs.4.97 Lacks @ 3.87% in 1962 in 1971-72
The Bank entered into the deposit mobilization scheme of Pong Dam Area aggressively
and secured maximum share of Deposit Bank Deposits increased from Rs. 256 Lacks in
1971-72 to Rs. 1054 lacks in 1973-74.

ROLE OF RBI IN INDIA

Main Functions
Monetary Authority:
Formulates implements and monitors the monetary policy.
Objective:

Maintaining price stability and ensuring adequate flow of credit to productive sectors.

Regulator and supervisor of the financial

system:

Prescribes broad parameters of banking operations within which the country's banking
and financial system functions.

12

Issuer of currency:
Issues and exchanges or destroys currency and coins not fit for
circulation.
Objective:

To give the public adequate quantity of supplies of currency notes and coins and in good
quality.

Development role

Performs a wide range of promotional functions to support national

objectives.

Related Function
Banker to the Government: Performs merchant banking function for the
central and the state governments; also acts as their banker.
Bankers to bank : Maintains banking accounts of all scheduled banks.
Urban Banks Departments The Urban Banks Department looks after the regulation and
supervision of primary co-

operative banks. The banks are outside the federal rural credit

structure supervised by NABARD and function primarily in the urban areas. The activities
of the Department can be broadly divided into four areas, viz., regulatory, supervisory,
operational and developmental. The regulation and supervision of primary co-operative
banks, popularly known as "urban co-operative banks", is performed by the Urban Banks
Department in co-ordination with the Registrars of Co- operative Societies of the State
Governments

1.3 ROLE OF REGISTRAR OF COOPERATIVE SOCIETIES:The KANGRA CO-OPERATIVE BANK WAS registered /FORMED AS A co-operative society
and thereafter converted to a Co-operative bank. All co-operative societies and banks are
governed by the co-operative act and falls under the jurisdiction of the RCS of the concerned
state. As such we are being looked after by the RCS office of Delhi government.
ROLE OF REGISTRAR OF COOPERATIVE SOCIETIES

13

Right from the Registration of a Cooperative Society till the cancellation of its registration, the
Registrar acts as friend, philosopher and guide to the cooperatives and ensures that Cooperative
Societies function in accordance with the Cooperative Act. In fact the Registrar is "Trimurti" of
the Cooperative movement.
The main functions of the Registrar are as under
1. Registration of Cooperative Societies;
2. Registration of amendments in the Bye-laws of Cooperative Societies;
3. Amalgamation, Division and re-organization of Cooperative Societies;
4. Ensure timely Election of the Managing Committee in Cooperative Societies;
5. Conduct elections of Managing Committee in primary cooperative banks and federal
cooperative societies;
6. Ensure proper investment of funds by Cooperative Societies as per Act and Rules;
7. Conduct audit, order inspection, enquiry and also fixing surcharge on negligent
functionaries of cooperative societies;
8. Settle disputes of Cooperative Societies through the process of arbitration.
9. Function as an appellate Court;
10. Enforcement/execution of Orders, Awards and Decrees of various Courts;
11. Order winding up and cancellation of registration of defunct/non-functional societies.
OTHER SILENT FEATURES:-

14

Leading Urban Cooperative Bank of NCT of Delhi.

1.

2.

The RBI has classified the Bank as Grade I which is the highest classification
given to an urban cooperative Bank in India.

3.

Govt. of NCT of Delhi gave Bank `Best Bank Award for the year 2004-05
and 2007-08.

A bank is
financial

4.

RBI has been conducting regular statutory inspections after every two years
and the last such inspection (19th) was conducted in September2008.

5.

6.

7.

8.

9.

The Bank has been getting its accounts audited every year from the Chartered
Accountants Cos. duly approved by the office of Registrar Cooperative
Societies. Statutory Audit for the year 2009-10 has been done. The audit
classification of the Bank for the last many years is grade A.
The Annual General Body Meetings have been held every year. Last such
meeting was held on 06.09.2009.
The election of the Board of Directors has been held regularly in time as per
the provisions of Delhi Cooperative Societies Act and Delhi Cooperative
Societies Rules made there under by the Returning Officer duly appointed by
the Honorable Lt. Governor of Delhi. The last election was held on 31.8.2008
for three years in which Board was elected unopposed.
The Bank has been earning profit every year and distributing reasonable
dividend to its shareholders. It paid dividend @ of 18% for 2008-09. Net
profit for the year 2009-10 is Rs. 5.47 corers.
The Bank has given the highest advances to its more than 35000 shareholders
(Rs. 191 corers as on 31.3.10) which shows that inflow of funds has not been
reinvested but the Board of Directors ensures that more and more financial
assistance is given to the needy shareholders who belong to the lower and
middle strata of the society.

Bank has introduced two welfare schemes. Under one scheme scholarships
10. are given to the brilliant children of members and staff studying in 9th, 10th,
11th and 12thclasses. Those children of members/staff who get 90% and above
marks in the Board exams are given one time special incentive.Under the
second scheme a grant of Rs. 20000/- is given to the nominees of the
deceased members and loan up to Rs. 50,000/- is exempted from interest.

15

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. In some
countries such as Germany, banks have historically owned major stakes in industrial corporations
while in other countries such as the United States banks are prohibited from owning nonfinancial companies. In Japan, banks are usually the nexus of a cross-share holding entity known
as the zaibatsu. In France, banc assurance is prevalent, as most banks offer insurance services
(and now real estate services) to their clients. In Himachal a lot of Banks providing their
services, list of these Banks are:-

PROMOTER
KCC is India's premier housing finance company and enjoys an impeccable track record in India
as well as in international markets. , the Corporation has maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio
covers well. over a million dwelling units. KCC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, KCC was ideally positioned to
promote a bank in the Indian environment.

Vision document for 2011-12, 2012-13, 2013-14

1.
2.
3.
4.
5.
6.

Dividend
Clientele
Deposits
Advances
Training of staff

Membership
36000
1% increase every year up to 18%
1.25 lakh
To increase deposits from Rs. 206 cr. To Rs. 270cr.
To increase advances from Rs. 123 cr. To Rs. 190cr.
To ensure to impart 3-5 days training to each staff member during

16

7.
8.
9.
10.
11.
12.
13.
14.

this period of 3 years

To purchase at least one own building for branches on rent
To get scheduled status for the bank
To create a befitted set up matching the status of bank
To open 7th branch two site- ATMs
To strengthen and upgrade IT system in the bank
To computerize HO in all respect
To introduce new service rules with new pay scales
To make steps to provide quality services to the customers

MISSION
KCC Banks began operations in 1995 with a simple mission to be a World Class Indian Bank.
We realized that only a single-minded focus on product quality and service excellence would
help us get there. Today, the bank is on the way towards that goal. It is extremely gratifying that
its efforts towards providing customer convenience have been appreciated both nationally and
internationally.

The banks aim is to build a sound customer franchise across distinct businesses so as to
be the preferred provider of banking services in the niche segments that the bank
operates in and to achieve healthy growth in profitability, consistent with the banks risk
appetite.
The economic development of any country depends on the extent to which its financial
system efficiently and effectively mobilizes and allocates resources. There are a number
of banks and financial institutions that perform this function; one of them is the
development bank. Development banks are unique financial institutions that perform the

17

special task of fostering the development of a nation, generally not undertaken by other
banks.
Development banks are financial agencies that provide medium-and long-term financial
assistance and act as catalytic agents in promoting balanced development of the country.
They are engaged in promotion and development of industry, agriculture, and other key
sectors. They also provide development services that can aid in the accelerated growth of
an economy.

The objectives of development banks are:

To serve as an agent of development in various sectors, viz. industry, agriculture, and
international trade
To accelerate the growth of the economy
To allocate resources to high priority areas
To foster rapid industrialization, particularly in the private sector, so as to provide
employment opportunities as well as higher production
To develop entrepreneurial skills
To promote the development of rural areas

18

 To finance housing, small scale industries, infrastructure, and social utilities.

In addition, they are assigned a special role in:

Planning, promoting, and developing industries to fill the gaps in industrial sector.
Coordinating the working of institutions engaged in financing, promoting or developing
industries, agriculture, or trade, rendering promotional services such as discovering
project ideas, undertaking feasibility studies, and providing technical, financial, and
managerial assistance for the implementation of projects

19

BUSINESSES:KCC Bank offers a wide range of commercial and transactional banking services and treasury
products to wholesale and retail customers. The bank has three key business segments:

WHOLE SALE BANKING SERVICES : The Bank's target market ranges from large,
blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and
agri-based businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made significant inroads
into the banking consortia of a number of leading Indian corporate including multinationals,
companies from the domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional banking solutions to
corporate customers, mutual funds, stock exchange members and banks.

RETAIL BANKING SERVICES : The objective of the Retail Bank is to provide its
target market customers a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The products are backed by
world-class service and delivered to the customers through the growing branch network, as well
as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.The KCC Bank Preferred program for high net worth individuals, the KCC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various investment
avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans
against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers, providing customers the
facility to hold their investments in electronic form.

20

Capital Structure
Financial Position as on 31st March 2013

Figures in lakh
Share Capital
Funds

210.21
71652.33

Deposits

598248.26

Investment

359930.98

Loan

199973.70

Profit

6064.44

Working Capital

592099.79

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.

21

GROWTH
KCC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to
accomplish the vision of becoming a world-class Indian bank. Our business philosophy is
based on four core values - Customer Focus, Operational Excellence, Product Leadership
and People. We believe that the ultimate identity and success of our bank will reside in the
exceptional quality of our people and their extraordinary efforts. For this reason, we are
committed to hiring, developing, motivating and retaining the best people in the industry. Our
mission is to be "a World Class Indian Bank", benchmarking ourselves against international
standards and best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance. The objective is to build sound customer franchises across
distinct businesses so as to be a preferred provider of banking services for target retail and
wholesale customer segments, and to achieve a healthy growth in profitability, consistent With
the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical
standards, professional integrity, corporate governance and regulatory compliance. Our business
strategy emphasizes the following:
Increase our market share in Indias expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.
Leverage our technology platform and open saleable systems to deliver more products to
more customers and to control operating costs.
Maintain our current high standards for asset quality through disciplined credit risk
management.
Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce our cost of funds.

22

We have made agency arrangements with other Banks through which Drafts/ Mail transfer
can be affected throughout India.
Time for processing: 15minutes to 20minutes
Charges: Rs 2.50 per thousand (minimum Rs 30/-)
Pay Orders
Time for processing: 10 minutes to 15 minutes
Charges: Rs 1.00 per thousand (minimum Rs 20/-)

FINANCIAL POSITION:Membership

35974

Clientele other than members

102886

Share money

18.44 crores

Reserve/Other funds

17.46crores

Working Capital

419.16 crores

Deposits

343.93 crores

Advances

236.75 crores

Net Profit

8.35 crores

NPA

0.32%

CRAR

15.10%

23

WORK PLACE TRANSFORMATION

FIVE S PART OF KAIZEN
Focus on effective work place organization
Believe in
Small changes lead to large improvement
Every successful organization has their own strategy to win the race in the competitive market.
They use some technique and methodology for smooth running of business. KCC BANK also
acquired the Japanese technique for smooth running of work and effective work place
organization.
Five S Part of Kaizen is the technique which is used in the bank for easy and systematic work
place and eliminating unnecessary things from the work place.
BENEFIT OF FIVE S
It can be started immediately.
Everyone has to participate.
Five S is an entirely people driven initiatives.
Brings in concept of ownership.

All wastage are made visible.

FIVES
S-1

SORT

SEIRI

S-2

SYSTEMATIZE

SEITON

S-3

SPIC-N-SPAN

SEIRO

S-4

STANDARDIZE

SEIKETSU

S-5

SUSTAIN

SHITSUKE

24

1. SORT:
It focuses on eliminating unnecessary items from the work place. It is excellent way to free up
valuable floor space. It segregates items as per require and wanted.

2. SYSTEMATIZE:
Systematize is focus on efficient and effective Storage method. That means it identify, organize
and arrange retrieval. It largely focuses on good labeling and identification practices.

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

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

4. STANDERDIZE:
It focuses on simplification and standardization. It involves standard rules and policies. It
establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility
for doing various jobs and decides on Five S frequency.

5. SUSTAIN:
It focuses on defining a new status and standard of organized work place. Sustain means regular
training to maintain standards developed under S-4. It brings in self- discipline and commitment
towards workplace organization.

25

TECHNOLOGY
KCC Bank Ltd. operates in a highly automated environment in terms of information technology
and communication systems. All the bank's branches have online connectivity, which enables the
bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller Machines
(ATMs). The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's business is
supported by scalable and robust systems which ensure that our clients always get the finest
services we offer. The Bank has prioritized its engagement in technology and the internet as one
of its key goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.

KCC BANK Ltd. business strategy emphasizes the following:

Increase market share in Indias expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and delivering
high quality customer service. Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating costs. Maintain current high
standards for asset quality through disciplined credit risk management.Develope innovative
products and services that attract the targeted customers and address inefficiencies in the Indian
financial sector. Continue to develop products and services that reduce banks cost of funds.
Focus on high earnings growth with low volatility.

26

PRODUCT SCOPE:KCC Bank Ltd. offers a bunch of products and services to meet the every need of the people.
The company cares for both, individuals as well as corporate and small and medium enterprises.
For individuals, the company has a range accounts, investment, and pension scheme, different
types of loans and cards that assist the customers. The customers can choose the suitable one
from a range of products which will suit their life-stage and needs. For organizations the
company has a host of customized solutions that range from funded services, Non-funded
services, Value addition services, Mutual fund etc. These affordable plans apart from providing
long term value to the employees help in enhancing goodwill of the company. The products of
the company are categorized into various sections which are as follows:

Accounts and deposits.

Loans.

Investments and Insurance.

Forex and payment services.

Cards.

Customer center.

PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING SERVICES
A. Accounts & Deposits

Savings Account

Regular Savings Account

Savings Plus Account

27

Savings Max Account

Senior Citizens Account

No Frills Account

Institutional Savings Account

Payroll Salary Account

Classic Salary Account

Regular Salary Account

Premium Salary Account

Defense Salary Account

Kid's Advantage Account

Pension Saving Bank Account

Family Savings Account

Kisan No Frills Savings Account

Kisan Club Savings Account

Current Account

Plus Current Account

Trade Current Account

Premium Current Account

Regular Current Account

Apex Current Account

Max Current Account

Reimbursement Current Account

Fixed Deposit

Regular Fixed Deposit

Super Saver Account

Sweep-in Account

Recurring Deposit

28

Demat Account
Safe Deposit Locker

B. Loans

Personal Loans

Home Loans

Two Wheeler Loans

New Car Loans 33333

Used Car Loans

Overdraft against Car

Express Loans

Loan against Securities

Loan against Property

Commercial Vehicle Finance

Working Capital Finance

Construction Equipment Finance

C. Investments & Insurance

Mutual Funds

Insurance

Bonds

Financial Planning

Knowledge Centre

Equities & Derivatives

Mudra Gold Bar

D. Forex Services

29

Trade Finance

Travelers Cheques

Foreign Currency Cash

Foreign Currency Drafts

Foreign Currency Cheque Deposits

Foreign Currency Remittances

Forex Plus Card

E. Payment Services

Net Safe

Prepaid Refill

Bill Pay

Direct Pay

Visa Money Transfer

E-Monies Electronic Funds Transfer

Excise & Service Tax Payment

F. Access Your Bank - One View

Insta Alerts

Mobile Banking

ATM

Phone Banking

Branch Network

G. Cards

Silver Credit Card

Gold Credit Card

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Woman's Gold Credit Card

Platinum plus Credit Card

Titanium Credit Card

Value plus Credit Card

Health plus Credit Card

KCC Bank Idea Silver Card

2. WHOLESALE BANKING SERVICES

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Clearing Sub-Membership

RTGS sub membership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

31

3. NRI BANKING SERVICES

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Payment Services

Net Safe

Bill Pay

Insta Pay

Direct Pay

Visa Money

Online Donation

Remittances

Deposit Policy
Customers are most important visitors in our premises they are not dependent on us .We are
dependent on them. we are determined to serve them in particular and our community as a whole
in general with smile to their utmost satisfaction through cooperatives
TYPES OF DEPOSIT
ACCOUNTS
The Deposit Products offered by the bank are broadly categorized in the following types.
1. Savings Bank Account
2. Current Account
3. Term Deposits

32

ACCOUNT OPENING AND OPERATION OF DEPOSIT ACCOUNTS

Savings Bank Account: Savings Bank account as the very name suggests is intended for savings for the future. There are
no restrictions on the number and amount of deposit that can be made on any day. Minimum
amount of Withdrawal / deposit is Rs.10/-. Balance in the account earns interest at rates advised
by the Head Office from time to time. The facility of withdrawal by cheque is also allowed
subject to certain Restrictions. These accounts can be opened by eligible persons and also certain
organizations and Agencies (as approved by the RBI). As required by Law, while opening the
account, we will satisfy ourselves about the identity, including Verification of address of a
person/s seeking to open an account, to assist in protecting the Prospective customers, members
of the public and ourselves against fraud and other misuse of the Banking system duly observing
the Know your customer (KYC) guidelines of RBI. The Bank requires satisfactory introduction
of the person/s opening the account by a person acceptable to the bank. The bank is required to
obtain 2 recent photographs of the person/s opening the account. The bank is required to obtain
permanent account number (PAN) or General Index Register (GIR) number or alternatively
obtain declaration in form no.60 or 61 as per the income Tax Act (Vide Section 139-A) from the
person/s opening the account. The Bank will provide to the prospective customers details of the
documents required for identification of the person/s opening the account in addition to a
satisfactory introduction. Documents normally accepted are the current
Gas/Telephone/Electricity Bill or voter's identity card or driving license or pass port or Ration
card etc. The account holder is required to maintain minimum balance in the account, as
specified by the Bank from time to time. Bank has discretion to change the above norms and levy
charges for non compliance of the same. However, adequate notice will be given informing the
change/s. Interest as prescribed by RBI is paid on half yearly basis on minimum balance between
the 10th day and last day of the month, provided it works out minimum Re.1.Issue of cheque book
is subject to satisfactory operation in the account. However issue of multiple Cheque books is the
discretion of the Branch Manager and subject to charges. Cheques, Dividend warrants drawn in
the name of account holder/s will only be collected through the account. (Financial instruments
endorsed in favor of the account holder/s will not be collected through SB account.) Pass book is
provided to customer and updated periodically.

33

Current Account: Current Accounts are designed to meet the needs of such sections of the public who operate their
account regularly and frequently. i.e. Traders, Businessmen, Corporate bodies or the like who
receive money and make payments very often. Current accounts are suitable to such category of
customers as there are no restriction on the number of withdrawal or deposit. Current accounts
can be opened by individuals, partnership firms, Private & Public Ltd Co., HUFs, / Specified
associates, Societies, Trusts, etc. As required by law, while opening the account, we will satisfy
ourselves about the identity, including verification of address of the person/s seeking to open an
account to assist in protecting the prospective customers, public and ourselves against fraud and
other misuse of the Banking system duly observing the KYC guidelines of RBI. The Bank
requires satisfactory introduction of the person/s opening the account by a person acceptable to
the bank. The Bank is required to obtain 2 photographs of all the person/s who is opening and
operating the account. The bank is required to obtain permanent account number (PAN) or
General Index Register (GIR) number or alternatively obtain declaration in form no.60 or 61 as
per the income Tax Act (Vide Section 139-A) from the person/s opening the account (i.e.
including partners or registered / unregistered partnership as also registered / incorporate bodies /
companies). The Bank will provide to the prospective customers details of the documents
required for identification of the person/s opening the account in addition to a satisfactory
introduction. Minimum Balance as stipulated from time to time is required to be maintained by
the customers. No interest is paid on credit balance kept in Current Account.

Service charges are levied for:

1.

Cheque books issued

2.

Non-maintenance of minimum balance

3.

Return of cheques, etc

Stop Payment facility

The bank will accept stop payment instructions from the depositors in respect of cheques issued
by them (subject to maintenance of required balance). Charges as specified will be recovered.

34

Term Deposit Account

The deposits received by the bank for a fixed period withdraw able after the expiry of the fixed
period and includes deposits such as Recurring / Fixed /Term etc.
Term Deposits can be opened by individuals, partnership firms, Private / Public Ltd Cos, HUFs,/
Institutions/Societies/Trusts etc.
As required by law, while opening the account we will satisfy ourselves about the identity,
including verification of address of the person/s seeking to open an account to assist in protecting
the prospective customers, public and ourselves against fraud and other misuse of the Banking
system duly observing the KYC guidelines of RBI.
The Bank requires satisfactory introduction of the person/s opening the account by a person
acceptable to the bank. The Bank is required to obtain 2 photographs of all the person/s who is
opening and operating the account.
The bank is required to obtain permanent account number (PAN) or General Index Register
(GIR) number or alternatively obtain declaration in form no.60 or 61 as per the income Tax Act
(Vide Section 139-A) from the person/s opening the account.
The Bank will provide to the prospective customers details of the documents required for
identification of the person/s opening the account in addition to a satisfactory introduction by
Persons & entities already having operative accounts such as SB, current account etc. need not
provide the above documents for opening of the Term Deposit accounts.
Premature withdrawals are allowed unless specified otherwise, at the rate of interest applicable
for the period for which the deposit has run ruling on the date of deposits , subject to penalty if
any prescribed by the bank.

Premature extension / renewal of term deposit.

In case the depositor desires to renew the deposit by seeking premature closure of an existing
term deposit, the bank will permit the renewal at the applicable rate on the date of renewal,
provided the deposit has run for a minimum period of 15 days and is renewed for a period longer

35

than the balance period of the original deposit. While prematurely closing a deposit for the
purpose of renewal, interest on the deposit for the period it has remained with the bank will be
paid at the rate applicable to the period remained with the bank and not the contracted rate.
The applicant (i.e. account opener) should declare in the account opening form or separately that
he is not enjoying any credit facility with any bank and if he does enjoy any facilities he should
declare full particulars thereof indicating the name of the bank, branch where from he has availed
these facilities and also submit no objection certificate from financing bank/institution.
Statement of account is provided to the account holder monthly or more frequently as per the
arrangement.

Interest payable on the deposit of a deceased depositor

1. Where the amount of deposit is claimed before maturity by premature closure:
i. Where claimant is non-resident:
a. Where the deposit has not completed the minimum period of deposit ie.. 1 year, no interest is
payable.
b. Where the deposit has completed the minimum period of deposit, interest is payable at the rate
of interest applicable for the period run as prevailing on the effective date of deposit, Without
PENAL CUT.

36

ii.

Where claimant is resident: As in 1 (i) above.

2.

Where the amount of deposit is claimed during the tenure of the deposit, but settlement is

made after the maturity date.

i.

Where the claimant is non-resident: Interest is payable at the contracted rate till the date

of maturity. For the period from the date of maturity till the date of payment, simple interest is
payable at the applicable interest rate for FCNR
(B) deposits as prevailing on the date of maturity for the period for which the deposit remained
with the bank beyond the date of maturity.
ii.

Where the claimant is resident: Branch will convert the maturity proceeds into Indian

Rupees on the maturity date. Interest on such Rupee amount is payable for the subsequent period
form the date of maturity till the date of payment at a rate as applicable to domestic deposit of
similar maturity
3.

Where the amount of deposit is claimed after maturity date:

i.

Where the claimant is non-resident: As in 2 (i) above

ii.

Where the claimant is resident

The foreign currency deposit proceeds will be first notionally converted into Rupees and on such
Rupee amount, interest is payable for the subsequent period from the date of maturity till the date
of payment at a rate as applicable to domestic deposit of similar maturity
4. Addition or deletion of name/s of joint account holders At the request of the joint account
holders addition / deletion of name/s is permissible at the specific request of the depositor and
all the depositors in case of joint accounts

NOMINATION
Nomination facility is available for all deposit accounts opened by the individuals.
Nomination facility is also available to a sole proprietorship account.

37

Nomination can be made in favor of one individual Nomination so made can be cancelled or
changed by the account holder/s any time.
Nomination can be made in favor of minor also for which date of birth of the minor and full
details of the guardian is to be furnished.
Bank recommends that all the depositors avail nomination facility. The nominee in the event of
death of the depositor/s could receive the balance outstanding in the account as a trustee of legal
heirs only.

INSURANCE COVER FOR DEPOSITS

All bank deposits are covered under the Insurance Scheme of Deposit and Credit Guarantee
Corporation of India (DICGC) subject to certain limits and conditions.

GENERAL
JOINT ACCOUNTS:
Deposit accounts can be opened by an individual in his own name or by more than one
individual subject to maximum of four persons, known as joint account. SB account can be
opened by a minor jointly with natural guardian or with mother as guardian.

Operations of Joint account :

The joint account opened by more than one individual subject to a maximum of 4 persons can be
operated by single individual or by more than one individual jointly. The mandate for operating
the account can be modified with the consent of all the joint account holders. In case of SB
account opened by minor jointly with the natural guardian the operation is by the natural
guardian only

Transfer of accounts:
Current Account, SB, Term Deposits may be transferred from one branch to another branch
within the bank at the request of the account holders subject to certain conditions

38

Addition of names: The Bank may at the request of the depositor/s allow addition of name/s
subject to the condition that the total number of depositors does not exceed four in case of both
the SB, CA & Term deposits. Deletions in name/s of depositor/s is also permitted, subject to the
condition that one of the original depositors should continue to be a depositor

Change in Rate of Interest: The rate of interest on deposits will be prominently displayed
in the branch premises apart from placing the same on our bank's website. The changes if any
with regard to the deposit schemes and other related services, shall also be communicated
upfront and shall be prominently displayed. The same may also be published in newspaper.

Customer Information: The customer information collected from the customers shall not
be used for cross selling of services/ products by the bank, subsidiaries & affiliates. If the bank
proposes to use such information, it shall be with the consent of the account holders

Secrecy of the customer accounts: The Bank shall not disclose details / particulars of the
customers' accounts to a third person or party without the express or implied consent from the
customer. However, there are some exceptions viz. Disclosure of information under
compulsionof law, where there is a duty towards the public to disclose and where interest of the
bank requires disclosure.

Inoperative accounts: SB & CA accounts in which there are no operations for a period of 2
years and above from the date of last operation, except by way of any charges debited, or interest
debited/credited will be treated as inoperative account. Service charges are levied to inoperative
account. Depositor/s can revive the account. In case the balance is less than Rs.20/- account will
be closed if there is no response from the depositor to the notice sent by the bank.

SPECIAL TYPES OF ACCOUNTS

Minor accounts:
Minor accounts represented by the guardian:

39

According to the Indian majority act read with the Guardians & Wards Act,1890, a minor is one
who has not completed 18 years of age, but in case of minor whose guardian is appointed by the
Court, he /she remains minor up to the age of 21 years. In terms of Indian contract Act, the
contracting parties should be major necessarily for the validity of the contracts. Hence, any
contract with the is void ab-initio. Since the opening of the account forms contractual obligation
between banker & customer, savings bank account in the individual capacity of the minor will
not be opened. However there are exceptions to this rule

Accounts in the name of minor himself:

SB accounts may be opened & operated by the minor himself for reasonable amounts, provided
he has attained the age of 14 years and a literate. No cheque book will be issued to him.

Accounts in the name of students above the age of 12 years:

In branches/ extension counters which are situated within the campus of the Educational
Institutions, a minor student who has attained the age of 12 years and who is studying in the
Education Institution, opening of SB account will be considered

Accounts of illiterate persons:

The Bank may at its discretion, open accounts of illiterate persons, after observing formalities for
opening such accounts. No cheque book facility is provided for such accounts.

Accounts of Blind persons:

The Bank may at its discretion open deposit account in the name of blind person after observing
all the formalities of the Bank for opening and operation of such accounts. Branch Manager at
his discretion may issue cheque book with certain restriction

Repayment under Joint Deposits:

40

The joint account holder can give any of the following mandates for disposal of balance in the
account
.Either or survivor
No.1 or survivor
Jointly

Either or survivor :
The Bank will be making payment of the maturity proceeds to the surviving depositor who
presents the deposit receipt and furnishes the proper discharge without reference to the other
depositor as well as to the legal heirs of the deceased depositor.
No.1 or survivor :
If no.1 is not alive on the date of maturity the bank will be making payment to the survivor
without reference to the legal heirs of no.1. If No.1 dies after maturity, the claim will be
settled in favor of the survivor subject to production of a notarized indemnity for
indemnifying the bank in case of the claim from legal heirs of the No.1.

Payable jointly:
If one or more of the depositor dies on or after maturity, the amount will be paid jointly to the
surviving depositors along with the legal heirs of the deceased depositor.

REDRESSAL OF COMPLAINTS
To enable the customers to voice their grievances or offer suggestions for improvement in
customer service, In case of any complaint, the matter may be first brought to the notice of
concerned Branch Manager for immediate redresses. If the complaint is not redressed to the
satisfaction of the customer, the matter may be taken up with the GM . If the complainant still

41

feels unsatisfied with the responses received, he can address his complaint to the High power
committee constituted by the Board called as Grievances Cell and settlement committee to
look in to all such issues . This committee meets once in week at our Pahar Ganj
Branch on every Monday between 4.45 PM to 8.00 PM
After exhausting the above machinery/channels, if the customer is not satisfied, he may write to
Chairman or Managing Director of the Bank and even after this, if not satisfied he is free to take
recourse to the following:

OUR COMMITMENT TO YOU

We promise to:
Act fairly and reasonably in all our dealings with you by
Meeting the commitments and standards laid down by the Board/RCS office/RBI.
Making sure our services meet relevant laws and regulations
Adhering to ethical principles of integrity and transparency
Deal with speed and concern in respect of errors/mistakes by
Correcting mistakes quickly
Handling your complaints quickly
Reversing any bank charges that we apply by mistake/oversight

Before you become a depositor, we will:

give you clear information explaining the key features of the services you tell us
or you are interested in.
give you information on any type of account facility which we offer and may suit
your needs.

42

 tell you what information we need from you to prove your identity and address
and to comply with legal and regulatory requirements, and once you have chosen
an account or service, we will tell you how it works.
When you open a single account or a joint account, we will give you information on your
rights and responsibilities. We recommend that you avail nomination facility offered on all
deposit accounts, articles in and safe deposit vaults.
We will guide you how we will deal with deposits and other assets held with us in the name
of a deceased person in the absence of nomination.
You can find out about our interest rates by:
Looking at the notices in our branches
Over telephone from our branches
Looking on our website; or
When you become a Depositor, we will give you information on the interest rates which apply to
your accounts. At the time of opening of the account, we will inform you of the rate at which
interest is paid on your savings deposits [presently, it is regulated by Reserve Bank of India ].
Upon your becoming a depositor, we will give you upfront details of any charges applicable to
the services chosen by you.
To help you manage your account and check entries on it, we will give you account statements at
regular intervals except in cases where Pass Books have been provided.
We will normally provide you with a statement periodically as per our policy. You can ask us to
provide you with account statements more often than is normally available on your type of
account, but there may be a charge for this service.
We will pay interest on funds involved if collection is delayed beyond the normal period as
stipulated by RBI.
We will act upon mandates given by you for direct debits (say ECS) and other standing
instructions. If, within a reasonable period after the entry has been made on your statement there

43

is a dispute about a cheque paid from your account, we will give you the cheque or a copy as
evidence. In the event your cheque book, passbook has been lost or stolen, or that someone else
knows your security information, we will, on your notifying us, take immediate steps to try to
prevent these from being misused. We will treat all your personal information as private and
confidential [even when you are no longer a customer].

We will not reveal transaction details of your accounts to a third party, including entities in our
group, other than in the following four exceptional cases when we are allowed to do.
If we have to give the information by law.
If there is duty to the public to reveal the information\
If our interests require us to give the information [for example, to prevent fraud]
but we will not use this as a reason for giving information about you or your
accounts [including your name and address] to anyone else, including other
companies in our group, for marketing purpose

DEPOSITORS' RIGHTS
Depositors are entitled to the following rights:
1. RIGHT TO INFORMATION
A depositor will have right to information about charges, quality and standard of the services
offered by the Bank to enable him / her to take an independent decision.
2. RIGHT TO CHOOSE
A depositor will have the absolute freedom to choose among the various services offered by the
Bank to suit his / her requirements.
3. RIGHT TO AVAIL/UTILISE THE PRODUCTS AND SERVICES
A depositor will have the right to avail/utilize the services chosen by him / her without any
intervention / obstacle.

44

4. RIGHT TO BE HEARD AND REDRESSAL OF GRIEVANCES

A depositor will have the right to be heard and seek redressal against deficient service / poor
quality of services, unfair Trade practices and unscrupulous exploitation. This includes his/ her
right to fair redressal of any genuine grievance relating to services which he /she has chosen to
utilize

MILESTONES IN THE HISTORY

KCC Bank began its operations in 1960 with a simple mission to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service excellence
would help us get there. Today, they are proud to say that they are well on our way towards that
goal. It is extremely gratifying that their efforts towards providing customer convenience have
been appreciated both nationally and internationally.

QUALITY POLICY
SECURITY: The bank provides long term financial security to their policy. The bank does this
by offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will
aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognizing the different needs of our customers, the bank offers a range of
innovative products to meet these needs.

SWOT ANALYSIS:-

45

STRENGTH
1. The biggest strength of Bank is Direct Banking channels. As Direct banking channels
saves time and money both as a customer does not need to go to bank for any kind of
transaction except cash withdrawal and cash deposits all other things are done sitting
anywhere in the world.
2. All services or products of KCC Bank are available through direct banking channels.
3. Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours services.
4. Very easy to access and use.
5. A highly personalized services provided by the bank.
WEAKNESS:
1. Unawareness about all Direct Banking Channels due to less advertisement.
2. Other private banks have started direct banking channels it may put some competition
to KCC Bank in near future.
3. Resistance to Change.
4. One should have the knowledge of the operations of the computers and of course the
Internet.
OPPORTUNITIES:
1. Centralized banking makes easy for KCC Bank to provide services to customers.
2. Huge market of shareholders.
THREATS:
1. Vulnerable to reactive attack by competitors.
2. Attacks of web hackers.
3. Lack of infrastructure in rural areas could constrain investment.
4. High volume / low cost market are intensely competitive.

46

Review Of Literature

Patel and sayed (1980) of the National Institute of Banking Management made a
Valuable analysis of performance and prospects of RRBs. They also gave a comparative
Picture of performance in deposits, branch expansion and credit deployment of the cooperative
banks, commercial banks and RRBs in a specified area. This was an eye opener for many
researcher engaged in this field of rural credit.
Financial express, (1986) published a study on RRBs viability, which was conducted by
Agriculture Finance Corporation in 1986 .The study revealed that viability of RRBs was
essentially dependent upon the fund management strategy, margin between resources mobility
and their deployment and on the control exercised on current and future costs with advances. The
proportion of the establishment costs to total cost and expansion of branches were the critical
factors, which affected their viability. The study further concluded that RRBs incurred losses due
to defects in their systems and as such, there was need to rectify these and make them viable. The
main suggestions of the study included improvement in infrastructure facilities and opening of
branches by commercial banks in such areas where RRBs were already in operation. However
the main limitation of the study was that its generalizations were based on the study of the
gramin bank kangra.

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

Rural artisans in various district of Kashmir under J&K Bank. In this study, it was concluded that
the beneficiaries were able to find an increase in their
Income because of the finance provided by the bank

47

BALMI (1990) in his study on Performance and Growth of Regional Rural Banks in Kangra
found that these banks had benefited the beneficiaries in raising their income, productivity,
employment and use of modern practices and rehabilitate the rural artisans
SINDHU (1993) carried out a study on the topic Growth and Performance of RRB in kangra.
On the basis of the study of all RRB of kangra, it is found that there was an enormous increase in
1deposits and outstanding advances. The researcher felt the need to increase the share capital and
to ensure efficient use of distribution channels of finance to beneficiaries.
RASIL SINGH(1996) conducted a study with the objective of analyzing the role of Regional
Rural Banks in Economic Development and revealed that RRBs have been playing a vital role in
the field of rural development. Moreover, RRBs were more efficient in disbursal of loans to the
rural borrowers as compared to the commercial banks. Support from state Governments, local
participation, proper supervision of loans and opening urban branches were some steps, which
should be taken to make RRBs 'further efficient.
SAMEER (2002) Policies of current phase of financial liberalization have had an immediate,
direct, and dramatic effect on rural credit. There has been a contraction in rural banking in
general and in priority sector landing and preferential landing to the poor in particular.
AJIT PAL (2004) has examined the growth and regional distribution of rural banking over the
period 1975-2002. The documents gains made by historical underprivileged region of east,
north-east, and central kangra during the period of social and development banking. These gains
were reversed in the 1990s.

48

Tools and Techniques

As no study could be successfully completed without proper tools and techniques, same with my
project. For the better presentation and right explanation I used tools of statistics and computer
very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which
I used for project from statistics are- Bar Charts
- Pie charts
- Tables
Bar charts and pie charts are really useful tools for every research to show the result in a well
clear, ease and simple way. Because I used bar charts and pie charts in project for showing data
in a systematic way, so it need not necessary for any observer to read all the theoretical detail,
simple on seeing the charts anybody could know that what is being said.

Technological Tools
Ms- Excel
Ms-Access
Ms-Word

49

Above application software of Microsoft helped me a lot in making project more interactive and
productive.
Microsoft-Excel had a great role in my project, it created for me a situation of you sit and get. I
provided it simply all the detail of data and in return it given me all the relevant information..
Microsoft-Access did the performance of my personal assistant who organizes my all the details
of document without disturbing them even a single time in all the project duration.
And in last Microsoft-Word did help me for the documentation of the project in a presentable
form.
Applied Principles and Concepts
While I started to do the project the main thing which was the matter of concern was that around
what principles I have to revolve my project. Because without having any hypothesis and
objective we cannot determine that what output or result we are expecting form the project.
And second thing is that having only tools and techniques for the purpose of project is not
relevant until unless we have the principals for which we have to use those tools and techniques.
Mathematical Averages

50

Research Methdology

Introduction and meaning:Research methodology is way to systematically solve the research problem. The research
methodology includes the various methods and techniques for conducting a researched. Salinger
and M. Stephenson in the encyclopedia of social sciences define research as the manipulation o
things, concepts or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art. Research is a careful investigation or inquiry especially through search for
new facts in branch of knowledge: market research specifies information. Required to address
these issues: designs the method for collecting information: manage and implements the data
collecting process analyses the results and communicates the finding and their implications

RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT

Scope of the Study Each and every project study along with its certain objectives also have
scope for future. And this scope in future gives to new researches a new need to research a new
project with a new scope. Scope of the study not only consist one or two future business plan but
sometime it also gives idea about a new business which becomes much more profitable for the
researches then the older one.
Scope of the study could give the projected scenario for a new successful strategy with a proper
implementation plan.
Whatever scope I observed in my project are not exactly having all the features of the scope
which I described above but also not lacking all the features.

51

Research study could give an idea of network expansion for capturing more market and
customer with better services and lower cost, with out compromising with quality.

In future customer requirements could be added with the product and services for getting
an edge over competitors.

Consumer behavior could also be used for the purpose of launching a new product with
extra benefits which are required by customers for their account (saving or current )
and/or for their investments.

Factors which are responsible for the performance for bank can also be used for the
modification of the strategy and product for being more profitable.

Factors which I observed while doing project study are followingCompetitors

Customer Behavior
Advertisement/promotional activities
Attitude of manpower and
Economic conditions

These all could also be interchanged with each other for each other in banks strategies for making a final
business plan to effect the market with a positive way without disturbing a lot to market, customers and
competitors with disturbance in market shares.

52

PROBLEM DEFINITION:
Personal Banker were with good background human being and through rigorous process of
recruitment but still not able to perform up to the expectation level of company, HR is not able to
sort out the problem why the performance is not coming even after giving the full marketing and
operational support. So there is need to study the customers perception and attitude towards the
various products and services provided by the bank.
RESEARCH: - It means search for facts, answers to questions and solutions to problems.

RESEARCH DESIGN:
Research design constitutes the blue print for the collection, measurement and analysis of data.
The present study seeks to identify the perception of consumers on KCC Bank in Kangra. The
research design is exploratory in nature. The research has been conducted on users within
Kangra. For the selection of the sample, convenient sampling method was adopted and an
attempt has been made to include all the age groups and gender within different occupation.

Type of Research
The present study will adopt the exploratory approach wherein, there is a need to gather large
amount of information before making a conclusion.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.

53

COLLECTION OF DATA:
1: SECONDARY DATA: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news papers, magazines,
management books, preserved information in the companys database and website of the
company.
2: PRIMARY DATA: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary
data was direct personal interview through a structured questionnaire.
SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to
take sample from the universe to know about its characteristics.
Sampling Units: Different professionals. Chartered Accountants, Tax Consultants, Lawyers,
Business Man, Professionals and Students of Kangra.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 50 respondents. Since it was not possible
to cover the whole universe in the available time period, it was necessary for me to take a sample
size of 50 respondents.
DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data
will be based on Survey Method and Field Activity. Primary data collection will base on personal
interview. I have prepared the questionnaire according to the necessity of the data to be collected.

54

LIMITATIONS OF THE STUDY

It is said, nothing is perfect and there would be few shortcoming in this project also. Sincere
efforts have been made to eliminate discrepancies as far as possible but few would have
remained due to limitation of the study.
Time seemed to be our most limited resource. To conduct a comprehensive research project in a
6 week period is very difficult.
The absence of appropriate funding limited the extent of our study. With additional financial
resources, the scope of our study could have been enlarged, resulting in a more representative
study.
Interview bias could not be avoided as in case of many surveys open ended questions involve the
use of probing techniques that increase interview bias. However, as our study did not use many
open ended questions, the extent of the bias was reduced.
It was not possible to understand thoroughly about the different marketing aspects of the
Financial Consultant within 45 days. As stipend, money was not given it was difficult to continue
the project work. All the work was limited in some limited areas of Kangra so the findings
should not be generalized. The area of research was Kangra and it was too vast an area to cover
within 45 days.

55

OBJECTIVES OF THE STUDY

The objective behind the conducting project exercise was to get useful insight about the banking
sector. I have prepared this report with some specific objectives.

OBJECTIVES:
1. To study the customers perception about KCC Bank.
2. To measure the awareness level of people regarding direct banking channels, products
offered by KCC bank.
3. To study brand image of the bank.
4. To evaluate the overall satisfaction level of customers regarding services and products
offered by the bank.
5. To find the different way of convincing customers.
6. To determine the need and purpose of a personal banker

56

Analysis And Interpretation

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

Q.1 What is your Occupation.

Category

No. of Respondents

Percentage

Business

14

28

Govt. sector

12

24

Pvt, sector

18

36

Students

12

57

Interpretation From above response it can be seen that.

28% respondents Occupation is Business.
24% respondents Occupation is Govt Sector.
36% respondents Occupation is Pvt. Sector.
12% respondents Occupation is Student

Q.2 In which bank you are having your bank account?

Category

No. of Respondents

Percentage

KCC Bank

17

34

Others

33

66

Interpretation From above response it can be seen that

34% respondents have account with KCC bank.

58

66% respondents have account with others bank.

Ques 3. From how many years you are associated with this bank?
RESPONSE

NO. OF RESPONDENTS

%AGE

A. Less than 1 year

16 %

B.

16

32 %

26

52 %

50

100 %

1-5

C. More than 5 years

TOTAL
Analysis:-

Less than 1 year

1-5
More than 5 years

Customers associated with KCC Bank

INTERPRETATION In this chart it is very much clear that 16% respondents are
associated less than 1 year,32% respondents are associated from 1-5 years, 52%
respondents are associated from more than 5 years.

59

Q4. Why do you want to open an account in bank?

Category

No. of Respondents

Percentage

Efficient service

24

48

Convenient location

14

28

Acquaintance

16

Others

Interpretation From above response it can be seen that

From the survey we came to know that 48% people prefer services of the bank for
opening the account.

60

About 28% people open account in the bank for the convenient location.

26% people open account because of acquaintance with the bank officers

Only 8% people open account because of other reason.

Q5. Do you want to open an account with KCC bank?

Category

No. of Respondents

Percentage

Yes
No
Not Idea

12
21
17

24
42
34

Interpretation From above response it can be seen that

24% respondents want to open an account in KCC bank.
42% respondents does not want to open an account in KCC bank.

61

34% respondents are already customers of KCC bank.

Ques6. Are you satisfied with the interest rate charges by your bank?

RESPONSE

NO. OF RESPONDENTS

%AGE

A. Strongly agree

18

36%

B. Agree

15

30%

C. Strongly disagree

10

20%

D. Disagree

14%

50

100 %

TOTAL

Level of satisfaction with interest rate charges by bank

Disagree; 14%; 14%

Strongly agree

Strongly
agree;disagree
36%; 36%
Agree
Strongly
Strongly disagree; 20%; 20%

Disagree

Agree; 30%; 30%

62

INTERPRETATION In this pie chart it is very much clear that 36% respondents are strongly
agreed by interest rate charges by bank, 30% respondents are agreed by interest rate
charges by bank, 20% respondents are strongly disagreed by interest rate charges by bank, 14%
respondents are disagreed by interest rate charges by bank.

Q7. What is your perception about different products/services provided by

KCC bank?
Category
Lucrative
Not Lucrative
No Idea

No. of Respondents
24
21
5

Percentage
48
42
10

Interpretation From above response it can be seen that.

48% respondents perception about different products is lucrative.

42% respondents perception about different products is not lucrative.

63

10% respondents have no idea.

Q8.Are you aware that the KCC bank provides you free phone banking &
net banking services?

Category
Yes
No

No. of Respondents
32
18

Percentage
64
36

Interpretation From above response it can be seen that

64% respondents are aware of it.

36% respondents are not aware of it.

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Q9. Are you aware of different terms and conditions which are very much
essential to maintain an account at KCC Bank?
Category
Some What aware

No. of Respondents
14

Percentage
28

Aware
Unaware

26

52

10

20

Conditions at KCC bank

No. of Respondents

Percentage

aware; 52

some what aware; 28 aware; 26

unaware; 20
some what aware; 14

some what aware

unaware; 10

aware

unaware

Interpretation From above response it can be seen that.

28% respondents are somewhat aware with different terms and conditions which are very
much essential to maintain account with the bank.

52% respondents are aware about the different terms and conditions.

65

 20% are unaware about the different term and conditions.

Q10. Is the staff of KCC bank is co-operative?

Category

No. of Respondents

Percentage

Yes
No
No Idea

34
11
5

68
22
10

Interpretation From above response it can be seen that.

68% respondents believe that staff of KCC bank is co-operative.
22% respondents believe that staff of KCC bank is not co-operative.

66

10% respondents have no idea.

Q11. Do you think that KCC bank provides innovative products and superior
services?
RESPONSE

NO. OF RESPONDENTS

%AGE

A. Strongly agree

18

36%

B. Agree

15

30%

C. Strongly disagree

10

20%

D. Disagree

14%

50

100 %

TOTAL

Disagree; 14%; 14%

Strongly agree; 36%; 36%

Strongly agreeStrongly disagree;

Agree20%; 20% Strongly disagree

Disagree

Agree; 30%; 30%

Interpretation From above response it can be seen that

74% respondents believe that KCC bank provides innovative products and superior services.
26% respondents believe that KCC bank does not provide innovative products and superior

67

Services.

Q12.If you get opportunity in future would you like to be attached with KCC
bank?
Category
Definitely
Probably
Probably not
Not sure

No. of Respondents
20
15
10
5

Definitely;No.
40 of Respondents

Percentage
40
30
20
10

Percentage

Probably; 30
Definitely; 20

Definitely

Probably; 15

Probably

Probably not; 20
Probably not; 10

Probably not

Not sure; 10
Not sure; 5
Not sure

Interpretation From above response it can be seen that

40% respondents would definitely like to be attached with KCC Bank
30% respondents would probably like to be attached
20% respondents would not probably like to attach with the bank.
10% are not sure.

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FINDINGS

1. KCC bank should improve their promotional area through different media like T.V,
Radio, Print media etc.
2. Maximum of the customers are dissatisfied with the behavior of employees. From my
findings I found that this behavior of employees is due to the daily routine workload from
which they got stressed.
3. With the changing trend people becoming financial literate by which the demand for
banking sector is increasing.
4. It is found that people have more faith in public sector bank then private bank.
5. People are not much aware about the various products of the bank.
6. Customers choose KCC Bank because of simple procedure and the low interest rates.
7. Most of the customers were satisfied with the overall services of the bank and todays
scenario they recommend to choose KCC Bank.
8. Bank has to employ more employees to get reduce their workload among them.
9. Company should open more branches in different cities.

69

Conclusions
KCC Bank, the banking arm of KCC is expected to go on stream. The bank already has good
number of employees on board and is recruiting personal banker heavily to take the headcount to
many more. It is on the brim of increasing its customers through its attractive schemes and offer.
The project opportunities provided was market segmentation and to know the perception of
prospective customers in potential geographical location and convincing them to attract more
customers so that new business opportunities of the bank can be explored. Through this project,
it could be concluded that people are not much aware about the various products of the bank and
many of them not interested to open an account, to invest money at all. Majority of people have
more faith in public sector banks as compare to private banks. Professionals and businessman are
more attracted towards the products and services provided by the KCC bank as compare to
people in services and students. Services was considered as unsought good which require hard
core selling, but in changing trend in income and people becoming financially literate, the
demand for banking sector is increasing day by day. So, at last the conclusion is that there is
tough competition ahead for the company from its major competitors in the banking sector. Last
but not the least I would like to thank KCC Bank for giving me an opportunity to work in the
field of Marketing and Operation. I hope the company finds my analysis relevant.

70

Recommendations

Finally some recommendations for the company are as follows:

To make people aware about the benefit of becoming a customer of KCC Bank, following
activities of advertisement should be done through

1. Print Media.
3. Stalls in Trade Fares

2. Hoarding & Banners.

4. Distribution of leaflets containing details information.

Other facilities must be providing to the customer:

The bank should provide life time valid ATM card to all its customers.

Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000, so
that people who are not financially strong enough can maintain their account properly.

The company should provide a pass book to all its customers.

Make people understand about the various benefits of its products.

Company should organize the program in the society, so that people will be aware about
the company and different products of the bank.

Company should open more branches in different cities.

71

LIMITATIONS
Every work has its own limitation. Limitations are extent to which the process should not
exceed. Limitations of this project are:

The project was constrained by time limit of two months.

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

Getting appointment from the concern person was very difficult.

People mind set about the survey was obstacles in acquiring complete Respondents were
very busy in their schedule. So it was very time consuming for information & positive
interaction, them to answer all the questions properly.

72

Annexure-1 Questionnaire

1. QUESTIONNAIRE
Dear Sir/Madam,
Name: ..
Address: ..
Contact No :( O) (M)
City: ...............Pin: .State:
I am a student of Chandigarh

university, Ghauran Mohali presently doing a project on

Consumers Perception on KCC Bank. I request you to kindly fill the questionnaire
below and I assure you that the data generated shall be kept confidential.
Your Age: ____________________
Education Qualification.

Undergraduate

Graduate

Postgraduate

Marital Status

Married

Single

73

Ques 1. What is your occupation?

Business

Govt sector

Pvt. sector

Student

Ques 2. In which bank you are having your account?

KCC

Others

Ques 3. From how many years you are associated with this Bank?

Less than 1 year

1-5

More than 5 years

Ques 4. Why do you want to open an account in bank?

Efficient Service

Convenient location

Acquaintance

Others

Ques 5. Do you want to open account in bank?

Yes

No

Not Idea

74

Ques 6. Are you satisfied with the interest rate charges by your bank?

Strongly Agree

Agree

Strongly Disagree

Disagree

Ques 7. What is your perception about different products and services offered

by KCC Bank?

Lucrative

Not lucrative

No idea

Ques 8. Are you aware that KCC bank provides you free phone banking and

net banking services?

Yes

No

Ques 9. Are you aware of different terms and conditions which are very much

essential to maintain an account at KCC Bank?

Somewhat aware

Aware

75

Unaware

Ques 10. Is the staff of KCC bank is co-operative ?

Yes

No

Ques 11. Do you think that KCC bank provides innovative products and

superior services?

Strongly Agree

Agree

Disagree

Strongly Disagree

Ques 12. If you get opportunity in future would you like to be attached with

KCC bank?

Definitely

Probably

Probably Not

Not Sure

Date:
Place:

Signature

Thank You

76

Annexure-2 Bilbliography
BIBLIOGRAPHY
S.NO
1.

AUTHORS NAME: NAME OF THE BOOK

PHILIP KOTLER

Marketing Management

(10th Edition),
2. V.S.RAMASWAMY

Marketing Management

(3rd Edition),
3. C.R.KOTHARY

Research Methodology

(2nd Edition),
4. S.P.KASANDE

Research methodology

(3rd Edition),
NEWS PAPERS: Times of India
Financial Express

77

INTERNET
1. http://www.kccb.in/index.php?
option=com_content&view=article&id=69&Itemid=98
2. http://www.kccb.in/index.php?
option=com_content&view=article&id=68&Itemid=97
3. http://www.kccb.in/index.php?
option=com_content&view=article&id=80&Itemid=106

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