AN INTERNSHIP REPORT ON ORGANIZATION STUDY AT

THE JAMMU AND KASHMIR BANK LIMITED

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

BANGALORE UNIVERSITY 2008 - 10 BY ZUBAIR CHISHTI REG NO: 08UDCM6104

UNDER THE GUIDANCE OF INTERNAL GUIDE

UNDER THE GUIDANCE OF EXTERNAL GUIDE

PROF. MALANI AGARWAL

MR. SHAH HUSSAIN

CMR INSTITUTE OF MANAGEMENT STUDIES

NO. 2, 3
RD

C CROSS, 6

TH

A MAIN, II BLOCK, HRBR LAYOUT,

BANGALORE 560 043

STUDENT DECLARATION

ZUBAIR

CHISHTI,

hereby

declare

that

this

internship

report

titled

ORGANIZATIONAL STUDY AT THE JAMMU AND KASHMIR BANK LTD. is prepared by me under the direct supervision and guidance of Prof. Malini Aggarwal after

undergoing the internship training at The Jammu and Kashmir Bank Limited in the month of July 2009. It is submitted to the Bangalore University in partial fulfillment for the award of the degree of Masters in Business Administration. It is a reward of independent study done by me and the same has not been previously found the basis for the reward of any Degree, Diploma, fellowship or any other similar title.

Yours Faithfully

Place: Bangalore Date:

ZUBAIR CHISHTI REG. No. 08UDCM6104

GUIDE CERTIFICATE

This is to certify that this Internship Report entitled Organization Study at JAMMU & KASHMIR BANK LTD. prepared by ZUBAIR CHISHTI (08UDCM6104), III Semester MBA, has been conducted under my direct supervision and guidance.

This Internship Report is submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration, Bangalore University 2008 - 10

Further it is certified that this Internship Report has not been submitted to any other institute or university for the award of any

Degree/Diploma/Fellowship or any other similar title.

Bangalore Date:

PROF. MALINI AGGARWAL

Faculty Department of Management Program

ACKNOWLEDGEMENT

I express my gratitude to our beloved principal Ms Suja Benect for allowing me to do this internship study. I also express sincere thanks to our respected Director Prof. Balachandran for his guidance and support during the tenure of my project and I also thank my project guide Prof. Malini Aggarwal for her guidance and support in my project.

I express my profound thanks to vice president (HRD J&K Bank Ltd) for providing me an opportunity to do the organizational study at the Jammu and Kashmir Bank Limited, corporate head quarter, Srinagar. Special thanks are due to Mr. Shah Hussain (Marketing Department in charge) and Mr. Muhammad Maqbool Bhat (Marketing Executive) for their guidance and support during my stay at corporate Head Quarters and thereafter. Many departmental heads of the Jammu and Kashmir bank limited contributed effectively towards the preparation of this report, by way of their guidance and support, despite their busy schedule.

ZUBAIR CHISHTI.

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY ABSTRACT OF THE STUDY

The banking scenario of the country has undergone a radical transformation owing to liberalization, automation and implementation of reforms. This has prompted banks to redefine business strategies to survive and sustain competition. The paradigm shift has made bank to improve customer service and adopt technology in their operations to bring about operational efficiency and value addition to the services and products. The banks are providing tailor made products / services to their customers at competitive prices. The option available to customers has increased and the bank has become customer centric. The banks are increasing focus on the development of its HR and the industrial relations have also improved. The implementation of financial sector reforms have further enabled the banks to strength their fundamentals, reduce their NPA, improve bottom lines and consequential built up of their owned funds base. Established over seven decades ago, primarily to cater to the development of the state of J&K, the Jammu & Kashmir Bank has grown to be one of the largest and most profitable banks in the country and Asia as well. During the last few years the bank has shown excellent business results and achieved manifold increase in every parameter of business. The Jammu and Kashmir Bank is one of the fastest growing banks in the country, maintaining a scorching growth. The bank though classifies as private is 53 % owned by the Jammu and Kashmir government The close relationship with the J & K government allows it to access to large float funds. It mobilizes deposits in the state at low cost and lends outside the state at competitive rates.

Moreover overstaffing and poor network that dogs public sector banks are non existent in J & K Bank. It is one of the best banks, with its name being the primary perceptible concern. The banks vision is to be financially strong, sound and profitable with growth and technology committed. the corporate governance policies of the bank recognizes the accountability of the board vie-avis its various constituents including customers, shareholders, investors, employees, government and regulatory authorities and societal responsibility as a corporate citizen.

TABLE OF CONTENTS

Chapter Chapters No.

Pg. No. 1-7 1-3 4 5 6 7 8-9 10 20 11 13 14 14 14 15 15 16 17 17 18 - 20

1.

INTRODUCTION
1.1 Introduction 1.2 Objectives of the study 1.3 Scope of the study 1.4 Methodology of the study 1.5 Limitations of the study

2. 3.

INDUSTRY PROFILE COMPANY PROFILE

3.1 History 3.2 Philosophy 3.3 Goal 3.4 Vision 3.5 Mission & Strategy 3.6 Value 3.7 Staff & Work environment 3.8 People management 3.9 Style of organization 3.10 Achievements, Recognition and Awards 3.11 corporate Social Responsibility

4. 5. 6.

COMPETITORS PRODUCT PROFILE ORGANIZATIONAL HIERARCHY

6.1 Organizational hierarchy of the Bank 6.2 Organizational structure of the Bank 6.3 Organizational structure of the offices of the bank 6.4 Work structure of the Bank

21 - 23 24 - 31 32 37 32 35 36 37 38 41 49 53 58 60 - 62

7.

8. 9.

DEPARTMENTS 7.1 Marketing 7.2 Human Resources 7.3 Office Management and Other Departments SWOT ANALYSIS FINDINGS, CONCLUSION & SUGGESTIONS
Annexure Bibliography

LIST OF CHARTS

Chart no. 6.1 6.2 6.3 6.4

Chart
Organizational hierarchy of the bank Organizational structure of the bank Organizational structure of the offices Work structure of the bank

Pg. No. 32 35 36 37

CHAPTER 1 INTRODUCTION

1.1) INTRODUCTION

Origin of the Word Bank Opinion is not uniform with regard to the origin of the word bank. According to some authors the word bank is derived from the words bancus or banquet that is a bench. The early bankers, the Jews in Italy transacted their business on the benches in the market place, when a banker failed; his bench was broken into pieces by the people, which indicated the bankruptcy of the individual banker. But the explanation was turned out on the ground that the Italian moneychangers as such were never called bankers in the Middle Ages. Some others say that the word bank originally derived from the German word pack meaning a joint stock fund, which was Italianated into banco, when the Germans were masters of the great part of Italy. According to Professor Ramachandra Rao whatever be the origin of the word bank, it would trace the history of banking in Europe from the middle ages.

Crowther defines, a bank collects money from those who have it to spare or who are saving it out incomes, and lends this money to those who require it

The Indian companies Act 1949, defines banking as the accepting for the purpose of Indian Companies lending or investment, of deposits of money from the public, repayable on demand or otherwise, withdrawals by cheques, drafts, orders or otherwise.

As per Act term banking includes not only the above mentioned important activities but also several activities such as collection of cheques, drafts and bills, remittance of funds, acceptance of safe deposits etc. which is generally referred to as subsidiary services.

The term bank in the modern times refers to an institution having the following features: 1. It deals with money; it accepts deposits and advances loans. 2. It also deals with money; it has the ability to create Credit i.e., the ability to expand its liabilities, as a multiple of its reserves. 3. It is a commercial institution; it aims at earning profit.

Banking Banking in one form or another, it was in existence even in ancient times. Authorities on banking are divided in their option regarding the origin of the term bank. The banking scenario of the country has undergone a radical transformation owing to liberalization, globalization, automation and implementation of reforms. This has prompted banks to redefine business strategies to survive and sustain competition.

Beginning of Issue and Deposits: The money business performed by the earlier goldsmiths in England has been considered as the beginning of the banking. The goldsmiths who received money for sake custody against their signed receipts have given an undertaking to return the money to the depositor or the bearer on demand. This development in course to time gave rise to emergence of the issue and deposit banking. The goldsmiths having accepted the money for safe custody issued receipts, which became bank notes. The bank notes accepted in exchange of money and vice versa and enjoyed considerable circulation. This marked of the beginning of the banking in England.

Evolution of Modern Banking The growth of banking in England in the nineteenth century paved the way for the establishment of the systemized banking system in the world. Banking institutions were having past performed limited functions such as receiving deposits against bank notes and the issuing notes in the country. As the time advanced, commerce industry expanded and the scope of the banking also expanded. Banking institutions deal with the large number of the services to the customers. They serve as custodian of stocks, shares and valuables. They finance imports and exports. The documents relating to imports and exports are passed through banks. They deal not only with bills of exchange, but also with bills of lading, railway receipts, warehouse, warrants and receipts, marine insurance policies and so on.

1.2) OBJECTIVES OF STUDY

There were various objectives of the study: To study about the origin, growth, performance and expansion program of J&K bank Limited. To acquire an in depth knowledge about the selected departments. To know the Vision, Mission, Strengths and Weaknesses of an organization. To go through different functional departments. To study the management problem as suggested by the corporate officials or as per the academic interest of the student and to give recommendations based on the data collection and analysis. To know the different HR strategies for the employees.

1.3) SCOPE OF THE STUDY

The bank has its headquarters in Srinagar city and has various departments in different parts of the country. All the departments are well established all over the country. It is a Sole banker and lender of last resort to the Government of J & K. The company has well past records and profitability over four decades. The bank is best in its corporate social responsibility. It is the fastest growing bank and has changed lives of many people. The scope of the study was limited to the Jammu and Kashmir State only.

1.4) METHODOLOGY

Data forms the basis for the preparation of any project and collection of the same constitutes as important function. The information is collected as follows:

a) Primary sources: - The data is collected by means of personal discussion with the management and other staff of the bank.

b) Secondary sources: - These sources include Bank Balance Sheet, Account Statement, Circulars, Manuals and brochures etc. It also includes Books, Magazines, Survey Reports and Newspapers.

1.5) LIMITATIONS OF THE STUDY

There were some limitations with respect to the analysis and personal discussions with the staff. Certain information was kept secret which was not discussed. Policies and strategy of management was kept confidential. Limitations of study would be limited information provided and time as most of the time staff and officials were busy in their work.

CHAPTER 2 INDUSTRY PROFILE

2) INDUSTRY PROFILE

Macroeconomic Overview and Global Scenario Despite the economic crunch worldwide that saw pulverization of two of the largest banking and finance giants of USA, Indian banking houses have managed to show positive growth this quarter. India's leading national bank the State Bank of India posted a net profit rise of 40% over the last quarter in spite of global turmoil. This would come as a big shot in the arms for the investors and consumers of the SBI group even though apprehension is mounting on other banking and broking firms worldwide. One of the main reasons behind the success of State Banks this quarter, in my opinion, would be their direct backing by the Government of India. People take solace in their investments in public sector watching the bailout packages being cashed out by governments all over the world to save big business houses.

The other nationalized bank in India to declare its net profit was ICICI bank at 1% growth over last quarter. Given the international and domestic scenario one cannot put down this as a mundane achievement. While others are on a cost cutting spree and firing employees Indian Companies are working on boosting staffing in banking and broking sectors. This can be seen as a big boon in the days to come when the current recession eases and economy comes back on fast track. This could also be evident from the fact that there have been no mergers and takeovers in Indian Banking sector in a contrast to world scenario where finance houses are looking for mergers to cut costs on operations. We definitely are not looking to thrive; rather we are looking for growth. Its just that the pace of growth is a little slow now as compared to a year or two before. These are hard times to test the hard.

However, J & K bank despite several downslides in the economy, the growth has been significant. Reserve accretion accelerated further during the year, with foreign exchange reserves reaching a record high of $74 billion up from $51.05 billion. The

rapid growth in reserves was partly owing to strong current account balance position. The Banking industry has been reeling under the pressure of increasing intermediation and declining profits for the past few years. The margins have been under strain due to high level of competition and rising NPAs. In view of the financial reforms, Banks are confronted with the tighter Capital Adequacy and Prudential Norms, transparency and disclosure practices, Asset-Liability Management, Risk Management and Monitoring, Information Technology and cyber crimes. With relatively lower inflation, interest rates continued to soften during the year.

CHAPTER 3 COMPANY PROFILE

3) COMPANY PROFILE

The J&K Bank is one of the fastest growing listed banks in the country with more than 582 offices across the country and has recently become a billion Dollar Company. The bank has a history of more than 6 decades of the operations and a track record of dividend payment and profitability for last more than 4 decades. The bank has been rated among top 1000 banks of the world and 100 banks of the Asian region, ahead of most of its contemporaries. With an annual turnover of more than US$ 10 billion, J&K Bank is on its way to become the universal bank in Jammu & Kashmir, a super specialist bank in India and world-class services bank within the global banking space.

3.1 History The idea of establishing The Jammu & Kashmir Bank was conceived in the 1920 by the then Maharaja of the state his highness Maharaja Hari Singh with the aim to ameliorate the economic and social position of the people of the state. The scheme to incorporate the bank was formulated by an imminent banker Sir Sorobiji N. Pochkanwalla, the then Managing Director of the central Bank of India. The bank got incorporated on 1st October 1938 commencing business on 4th July, 1939. 53% of the equity is held by the Government of J&K. it is the first state owned bank of the country having a consistent track record of growth and profitability. The bank has a unique distinction of being the banker to J&K state government and has been appointed by the RBI as its agency in J&K for carrying general banking business of the central government and collection of taxes pertaining to central Board of Direct taxes. Until 1955, the banks energies remained focused on consolidation with the strength of offices confined to 13. From this small beginning the bank has spread to every note and corner of the country with a network of 582 offices. The bank serving as a beacon light with the goal of earning customer trust blended with a personal, human touch in traversing on the path of prosperity with a well-defined corporate mission. The bank keeping its promise and fulfilling its purpose provides a stepping stone to the state economy with a particular emphasis on the developing trade, commerce, industry and agriculture, areas that had been pushed in the background in absence of a state bank. Today the bank is literally a leader with a well-diversified range of products and services serving a wide range of client. In recognition of the making contribution in the field of the banking, the bank had been ranked No. 2 among private sector banks. With the advent of the laissez-faire the banks all set to face challenges posed by the fluid and changing global banking. According to the extended Central laws of the state, Jammu & Kashmir Bank was defined as a govt. Company as per the provision of Indian companies act 1956. In the year 1971, the Bank received the status of scheduled bank. It was declared as "A" Class Bank by RBI in 1976. Today the bank has more than 582 offices across the country and has recently become a billion Dollar Company.

Brand Identity

The new identity for J&K Bank is a visual representation of the Banks philosophy and business strategy. The three colored squares represent the regions of Jammu, Kashmir and Ladakh. The counter-form created by the interaction of the squares is a falcon with outstretched wings a symbol of power and empowerment. The synergy between the three regions propels the bank towards new horizons. Green signifies growth and renewal, blue conveys stability and unity, and red represents energy and power. All these attributes are integrated and assimilated in the white counter-form.

Technology driven operations: J & K Bank has Implemented Human Capital Management with the help of Wipro InfoTech. The solution has helped streamlining the HR management of the bank, J & K Bank has an employee force of more than 8,000. It will also enable the cutting down of paper work to a major extent and reduction of manual work thereby lending alacrity to HR processes, according to the company. Some of the modules implemented by Wipro include talent acquisition manager and candidate gateway (Recruitment), administer training, e-Development, e-Performance, e-Profile Manager Desktop, e-Profile, profile management, global payroll for India, absence management and approval workflow engine. As a result of this implementation all the zones and branches are connected to the centralized HR system and a customized claims management system has been deployed to facilitate the claims process, which also includes an interface to Oracle's PeopleSoft Enterprise Payroll. In today's competitive world it is important to streamline processes through an effective implementation of technology. In these difficult times, it is imperative to cut down processes so as to increase efficiency.

J & k bank have re-engineered the HR processes. They have replaced the old manual HR system to centralize the HR information thereby improving efficiencies in their HR processes and Systems. Maintaining a progressive outlook, the J&K Bank is keeping pace with the changing technology. The Bank continues to leverage information technology as a strategic tool for its business operations. The IT strategy emphasizes enhanced level of customer services through 24x7 availability, multi channel banking, and cost efficiency through optimal use of electronic channels, wider market reach and opportunities for cross selling. The initiatives already under way have been given a further to accelerate growth with tech commitment. The bank has issued over 2.25 lakh J&K Bank Global Access Debit Cards until March end 2009. Bank has already launched credit card which is available at all offices of the bank across the country. Tele banking facility is now available at 52 business locations of Jammu and Kashmir Zones. Currently 98.4 % business of the bank is computerized. The number of offices brought under computerization programme has increased to 480 at the end of March 2009. The bank has an ambitious plan of achieving total automation of operations by the year 2010.Anywhere banking facility was extended too many new locations, thereby giving the customer the advantage of anywhere banking at 300 offices at the end of 31st march 2009. The number of ATMs of the Bank already installed or under process of installation has increased to 210 during the year under report.

3.2 Philosophy The banks philosophy is woven around its total commitment to the ethical practices in the conduct of its business, while striving in the constant quest to grow with profits and enhance shareholders value and align the interests of the stakeholders and society through adoption of best international practices and standards. J & K Bank is committed to the best and transparent corporate governance practices, which in turn provides best value to all its stakeholders through highly motivated personnel, visionary leadership, respect for people and society. 3.3 Goal

Keep on creating wealth and focus on high earnings and growth. To be partners in the economic and social transformation of the nation. Become visible in the International market. Make banking activity more simple and fast. To engender and catalyze the economic transformation of Jammu and Kashmir and capitalize from the growth induced financial prosperity.

3.4 Vision To catalyze economic transformation and capitalize on growth. J & K Banks vision is to engender and catalyze economic transformation Of Jammu and Kashmir and capitalize from the growth induced financial prosperity thus engineered. The Bank aspires to make Jammu and Kashmir the most prosperous state in the country, by helping create a new financial architecture for the J&K Economy, at the center of which will be the J&K Bank.

3.5 Mission and strategy: J & K Banks mission is two-fold: To provide the people of J&K International quality financial service and solutions and to be a super specialist Bank in the rest of the country. The two together will make J & K Bank the most profitable Bank in the country. The mission of the bank is to strive to be a financially strong, sound, growth oriented and profitable bank with main focus towards providing convenient, reliable, cost effective and personalized services to its customers. To focus on high earnings growth with low volatility. To increase visibility in market and enhance market share by exploiting new markets in Indias expanding Baking and Financial services industry by following a disciplined growth strategy. To maintain high quality asset and credit risk management.

Unique characteristics: one of a kind 3.6 Value

Private sector Bank despite government holding 53 per cent of equity. Sole banker and lender of last resort to the Government of J & K. Plan and non -plan funds, taxes and non-tax revenues routed through the bank. Salaries of Government officials disbursed by the Bank. Only private sector bank designated as agent of RBI for banking. Carries out banking business of the Central Government. Collects taxes pertaining to Central Board of Direct Taxes in J & K.

3.7 Staff & Work environment

As the people are the most important resource to achieve the growth and enhance the corporate image of an organization, foremost importance is given to development of human resources in the Bank to enable them to cope up with the rapidly changing Banking needs. As the quality of human resources indicates the ability of Bank to deliver value to its customers, foremost attention is being given to development of skill, attitude and knowledge of the staff. Emphasis has been on integrating HRM strategies with business strategies. HRM strategies of the Bank include managing change, creating commitment, infusing flexibility and improving teamwork.

3.8 People Management

In a landmark move, the J&K Bank had announced an enviable package of incentives and opportunities for its employees to groom an energized and committed human resource for the Bank's ambitious expansion plans.

"The philosophy and approach of leadership towards people's issues is that the employee oriented issues must include recruitment, development and learning, work environment and communication, rewards and recognition, health and well being, balancing work and personal life and last but not the least financial security,

The crucial role played by the employees of the Bank in its exceptional growth, the organization emphasizes that the employees are the drivers of the human resource while the top management and the human resource team are only the facilitators.

Transparency, people-oriented policies and a culture of knowledge-sharing is the Bank's philosophy, and the management of the Bank is committed to ensure a work place, a work culture and a work environment that fully engages the intellectual and emotional commitment of its employees.

The employee-oriented measures would achieve a real competitive advantage by nurturing the real assets of the Bank - its people. The set of incentives include skill advancement programmes, pay enhancement, mass promotions, an improved transfer policy, increase in variable and revamped performance management system, regularization of all the adhoc employees, a new generation organizational set up and designations and foreign tour on LFC.

3.9 Style of organization The banks framework had been changed, as per the restructured organizational framework, The General Managers have been designated as Presidents, DGMs as Vice-Presidents, AGMs as Senior Executive Managers, Chief Mangers as Executive Mangers, Scale-III as Senior Executive, Scale-II as Executive, Scale-I as Associate Executive, Cashier-cum-Clerk as Banking Associates, Assistant Cashier-cum-Clerks as Assistant Banking Associates and Peons as Banking Attendants.

3.10 Achievements, Recognition and Awards Bank has established MetLife office in Srinagar. J&K Bank had handled registration of Amaranth Yatris. J&K Bank declared 60% dividend to shareholders. J&K Bank was awarded Jamnalal Bajaj Uchit Vyavahar Puraskar in 2003. J&K Bank also got P1+ rating. J&K Bank also sliced lending rates, it also announced special package for handicraft sector. 3.75% interest rate was cut in Agriculture sector which boosted the sector. Retirement Age was enhanced to 60 from 58. Various campaigns have been launched like I am listening campaign.

3.11 Corporate social responsibility The Corporate Social Responsibility (CSR) of the J&K Bank seeks to recognize obligations towards society and aims to integrate the CSR ideals into its mission for optimizing both business and social performance. It stresses on promoting work life balance, give attention to social and environmental concerns and host of factors that facilitate business pursuits and accomplishment of economic goals. The CSR is not just recognized as promulgating the Bank's own values and principles of philanthropy but also the values and principles of all those who have a stake in it or are affected by its operations. By supporting social cause aligned to the mission the CSR strategy differentiates the Bank's brand and enhances its reputation. The Bank manages social issues in the same manner as any other strategic business issues. The Bank besides playing its role in economic development of the State and country contributes significantly towards the social cause. The Bank has established its credentials for the poor and needy by donating generously for various philanthropic activities aimed at ameliorating their sufferings. Be it victims of natural calamity, like fire, flood, snowstorm or tsunami and disabled or patients with serious ailment who lack reliable means of survival, the bank has been all through supporting them. The one and a half decades long turmoil in the State of J&K has added to the agonies of people with hundreds of children losing their parents to fend for themselves in this harsh world. The Bank realizing its responsibility of saving the life/ future of these blooming children, adopt several of them by providing financial support either through various orphanages where they are sheltered or directly to the orphans by bearing their educational or other expenditure. Heritage preservation is an important responsibility of every conscious individual, institution or agency. The thrust areas to assist in this respect for the Bank will be preservation of historical/religious monuments, development of tourist sites, national properties, museums, libraries, protection of environment/ecology etc. and sponsoring seminars and awareness camps, art

and literary works, 3rd cultural activities, social service camps, college or university students clubs etc. The Bank has been playing a vital role in the promotion of tourism and it is in this backdrop that the Bank has been shouldering the responsibility of registering yatris for the Shree Amaranth Yatra through its extensive network of offices spread across the country. The Yatra is an annual religious function of Hindu community, wherein devotees travel by foot to pay obeisance to Holy Shiv Lingam at Shree Amaranth cave. Apart from above activities the Bank has been constructing/developing the public utility service like public parks, bus stands, drinking water posts, lavatories, conveniences, rain shelters. Managing CSR is not viewed as an extra cost or burden but is viewed not only as making good business sense but also contributing to the long-term prosperity of our Bank and ultimately its survival. Being a good neighbor and showing that you care on the one hand and being a successful business on the other, are flip sides of the same coin.

The vision of bank is summed up in one word growth The fastest growing bank with more than 582 offices across the country. A listed Company on BSE and NSE with 53% equity held by J&K State Government.

Incorporated in 1938 as a limited company. Governed by the Companies Act and Banking Regulation Act of India. Regulated by the Reserve Bank of India and SEBI. Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

Rated "P1+" by Standard and Poor- CRISIL connoting highest degree of safety.

Four decades of uninterrupted profitability and dividends. Tele-banking facility available at 52 offices. Net profit increased by a record 13% at Rs. 409 crore as on 31.03.2009 against Rs.361 crore 31.03.2008. Business as on March 2009 crossed Rs. 37693 crore registering an increase of over 15%. 24 hours and 365 days banking service through Automated teller machines (ATMs) available at 210 locations connected with IST switch for single card usage at all locations.

CHAPTER 4 COMPETITORS

4) COMPETITOR

The major competitors in state of J & K are:-State Bank of India, Punjab National Bank, Canara Bank, HDFC, and ICICI. SBI, Punjab National Bank and Canara Bank were from the earlier phase but recent entering of HDFC and ICICI Banks has increased in competition.

1.

State Bank of India (SBI)

It is a large financial services group, operating in the banking industry. The bank is engaged in providing trading services, international banking and traditional banking and treasury operations. The Reserve Bank of India holds more than half of SBI's equity capital. As of 31 March, 2009, SBI had a network of over 11,448 branches. In addition, the seven associate banks of SBI have more than 4,900 branches. As of March 2009, the bank had 84 foreign branches. The bank also increased its ATM network by 44% to 8,581 by the end of Fiscal year 2009.The bank also offers treasury services including international banking, corporate banking, retail banking, NRI services, agricultural banking, small and medium enterprise (SME) banking and other services. SBI conducts it activities through two reportable segments, namely, Banking Operations and Treasury Operations.SBI, along with its subsidiaries, is engaged in providing a wide range of financial services including Life Insurance, Merchant Banking, Mutual Funds, Credit Card and Factoring, Security trading and primary dealership in the Money Market. The bank is headquartered in Mumbai, India. The company reported revenues of (Rupee) INR 916,670.10 million during the fiscal year ended March 2009, an increase of 28.21% over 2008. The operating profit of the company was INR 290,405.50 million during the fiscal year 2009, an increase of 23.31% over 2008. The net profit of the company was INR 109,552.80 million during the fiscal year 2009, an increase of 22.26% over 2008. 2. Canara Bank (Canara Bank)

It is a banking service provider engaged in commercial and personal banking, and financial services. The bank offers a range of products and services, including savings, current, fixed, and recurring deposits, as well as term deposits and other deposit products, and loans and advances, including personal loans, loans for traders, agricultural loans, export finance, housing loans, and other loans. The bank also provides non-resident banking services, rural and social banking services and international banking services. Canara Bank has a network of 2,710 branches in India. Canara Bank provides IT-based services, with 100% computerization of the branches. The bank provides a wide array of services, such as, Networked ATMs, Anywhere Banking, Telebanking, Remote Access Terminals Internet & Mobile Banking, Debit Card, etc. The bank is headquartered in Bangalore, India and employs 45,260 people.

3.

Bank of Baroda (BOB)

It is a leading financial institution in India. The bank is engaged in providing financial products and services including personal banking, corporate banking, international business, treasury banking and rural banking. It offers credit cards, debit card, deposits, retail loans, lockers and other services through Personal banking segment. Business banking comprises deposits, loans & advances, services and lockers. Corporate banking includes cash management and remittances, muti-city cheques, appraisals and merchant banking. International business includes correspondent banking, export finance, import finance, international treasury and other solutions. Treasury banking comprises domestic operations and forex operations. Rural banking includes retail loan, small businesses and small scale industries. The bank operates internationally with its branches and associates in 25 countries. The bank is headquartered at Vadodara, India. The bank reported interest income of (Rupee) INR 155,475.61 million during the fiscal year ended March 2009, an increase of 27.81% over 2008. The net interest income after loan loss provision of the bank was INR 50,558.82 million during the fiscal year 2009, an increase of 43.42% over 2008. The net profit of the bank was INR 23,840.79 million during the fiscal year 2009, an increase of 53.97% over 2008. 4. ICICI Bank Limited

(ICICI Bank) is an India-based banking company. ICICI Bank provides banking products and financial services in the areas of investment banking, venture capital, life and non-life insurance, and asset management to corporate and retail clients. The bank offers fixed deposits, savings accounts, recurring deposits, security deposits, child education plans, salary accounts, EEFC accounts, and resident foreign currency accounts; and consumer and commercial cards. It also provides home loans, commercial business loans, automobile loans, two wheeler loans, personal loans, and credit cards. In addition, the bank provides dematerialization services, NRI services and online services. ICICI Bank operates through a wide network of 1,449 branches and 4,721 ATMs across India. The company reported revenues of (Rupee) INR 362,507.06 million during the fiscal year ended March 2009, an increase of 6.32% over 2008. The operating profit of the company was INR 97,634.54 million during the fiscal year 2009, an increase of 17.24% over 2008. The net profit of the company was INR 35,769.50 million during the fiscal year 2009, an increase of 5.26% over 2008.

CHAPTER 5 PRODUCT PROFILE

5) BANKING PRODUCTS

There are over 300 products already in market, some of them are listed below:1. Deposit schemes 2. Term Deposit schemes

3. Value Added Schemes 4. Current Accounts holders schemes

5. Loans / Advances 6. Automobile Finance 7. Agricultural schemes 8. Services 9. Insurance 10. Finance schemes 11. Mutual funds

Some of them are described below:-

Deposit schemes Knowing the human behavior with respect to wants and needs or rather making wants to be felt as need is first challenge in marketing the bank schemes. The second challenge is the resistance to change and / or new ideas, which becomes a tough barrier in the process of marketing products / service of a bank. Therefore Banks,, tailor their various deposited schemes and market them to either their / existing customer are the new segments of the customer. Before selling the deposited schemes, it becomes necessary to identify the need and aspirations of the customer to make the most ideal and acceptable to satisfy their needs From the marketing angle the different deposited schemes of the bank can grouped on the basis of; A. The mode of deposited,

B. The mode of repayment C. Additional benefits D. The end use of accumulated funds E. The calculation and payment of interest F. Need for liquidity, safety, growth etc. The Jammu and Kashmir bank ltd. has always inclination to launch new deposited schemes /Products depending upon the market condition and requirement of customers. The schemes are tailored to suit every bodys requirements.

1. Saving bank deposit schemes:

A convenient and easy to operate that helps the customers to save both time and money; this scheme suits the person who does not have a regular income. Any deposited and any time withdrawal is the main feature of this scheme. Saving bank account can e opened with a minimum initial deposit of Rs. 100. - Rs. 582.

The deposited scheme can be opened by:

A. A person is his / her name B. More than one person in their joint names, C. Minor through guardian or himself if above 10 of age. D. A Illiterate persons E. Blind persons. F. Association, clubs, societies, trust etc.

Facilities

Anywhere banking facility. ATM/Debit card. Tele banking facility. Cheque book facility.

2. Fixed deposit schemes It is a term that pays interest at the end of each colander quarter. The fixed deposited scheme is suited to the persons who wish to keep their invested money in fact and require quarterly income to meet their requirements. It can open with a deposited of Rs. 100. And above for different maturities ranging from 7 days to 10 years.

Salient features Up to 90 per cent of the amount deposited with the Bank. (Conditions Apply) Who can open this Account?

A person in his/her name. More than one person in their joint names. Minor through guardian or himself if above 14 years of age. Blind Persons, Associations, Clubs, Societies, Trusts etc. Loan Facility Ideal product for short-term investors. Interest accrued on quarterly basis, but payable at maturity of the deposit.

Can be opened with Rs.100/= and above for different maturities ranging from 7 days to 10 years.

Loans / advances: Like the deposit account is lifeblood or raw material for the bank, the advances / loans are essentials to deploy those funds to earn revenue for the bank. In order to balance liquidity and profitability properly, bank has to use its available (loan able) funds judiciously keeping in mind the statutory requirements imposed by RBI. 1. Housing finance Loan Quantum of loan

For Construction /Purchase 60 months net salary or 75.00 Lakhs whichever is lower.

For repairs/renovation 20 months net salary, subject to a maximum of Rs.10.00 Lakhs.

For purchase of land: 20 months net salary/income subject to maximum of Rs.5 Lakhs within J&K and Rs10.00 Lakhs outside J&K.

Also as an incentive for small borrowers, the loans up to Rs. 1.5 Lakhs granted for repairs/renovations of existing houses would now be secured by third party guarantee of two persons or such other security as is deemed appropriate by the Bank.

Eligibility

Employees of Govt., Semi-Govt. Dept., Civic Bodies, PSU's with minimum 5 years service.

Reputed Businessmen with minimum 5 years standing. Professionals & Self employed like Doctors ,Engineers , CA's , Advocates with minimum 5 years standing

Security

Mortgage of the house/property to be purchased/ constructed. Third party guarantee of one person or Assignment of LIC policies, pledge of govt. securities etc.

Negative lien on the property to be repaired/renovated without mortgaging the same to the Bank.

Repayment

For construction of new house 20 years including 9 months moratorium in equal monthly installments.(Applicable to new loans and disbursements only)

For addition / Renovation 7 years including 2 months moratorium in equal monthly Installments.

Margin

15% for construction/purchase of built house flat. 20% for renovation/purchase of land.

Processing charges 0.25% of loan amount

2. Educational loan scheme Scale of Finance

Rs.10.00 Lakhs for studies in India. Rs.20.00 Lakhs for studies abroad.

Courses Financed Graduate / Courses in: BA, B.Com. B.Sc., etc. Medicine, Surgery, Engineering, Hotel Management, Design, Architecture, Biochemistry, Agriculture, Veterinary etc.

P.G Courses in: Business Management, Chartered or Cost Accounting, Company Secretary Ship, Masters PhD.

Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc. Computer Certificate Courses: of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university.

Courses like ICWA, CA, CFA etc. Courses Conducted by IIM, IIT, IISc, XLRI. NIFT etc.

Services: 1.Credit Card: Plastic money or credit cards have become very popular as banks product/ services and have widely acceptance in Indian market. The credit card allows a holder to make purchases ( up to his sanctions credit limit) without making purchases in lending shops/ markets to make payments of bills electricity or telephone or a with\draw funds ( cash up to pre decided limit ) as and when required. The bank launched its credit card, a long awaited product in association with MasterCard. The J & K Bank Credit Card has three specifications Gold, Silver and Blue. The product would not only facilitate banks customers but would also be instrumental in giving fillip to the banks non interest income.

2. Internet Banking:

The bank has internet banking service, which is available to the customers of the CBS offices of the bank. To begin with, the internet banking facility is available for non financial transactions only and would be thrown open for financial transactions after RBI approval, for which all formalities have been completed. The bank added one more feather to its cap by introducing Mobile ATM service at Srinagar. The service one of its kinds in the northern part of the country acts as another delivery channel of services to our customers.

Features 20-50 day Credit Free Period

Revolving Credit Facility on paying of minimum payment due in the same billing period. Hassle free credit facility at competitive rate of interest. Cash Withdrawal Facility up to 20% of total credit limit. Loyalty programme

3.Automated Teller Machines (ATM) These were introduced in UK in the form of cash dispensary by BARCLAYS BANK in 1968. The main objectives of the distribution facility were to save costs and staff and to provide greater customer convenience ( i.e. Service outside normal banking hours.) Support services Technology application has remained the thrust area of the Bank for last many years with an objective to offer state of the art world class banking facilities to its customers. The Bank continued to leverage information technology as a strategic tool for its business operations, to gain competitive edge in customer service as well as improving productivity and efficiency. The Banks IT strategy emphasizes enhanced level of customer services through 24x7 availability, multi-channel Banking and cost efficiency through optimal use of electronic channels, wider market reach and opportunities for cross-selling. The Banks focus is on harnessing technology for integrating diverse products and services. Keeping this in view, the Bank continued to widen the scope of multiple delivery channels such as ATM installations, Anywhere Banking, Internet Banking and SMS Banking at more & more centers. Anywhere Banking & Internet Banking Corporate Internet Banking Ecommerce facility for J&K Bank E - banking customers E - Payment of Tax for J&K Bank E - banking customers SMS Banking ATM Services Debit Cards Debit Cards

National Electronic Fund Transfer (NEFT)

CHAPTER 6 ORGANIZATIONAL HIERARCHY

6) ORGANIZATIONAL HIERARCHY

CORPORATE HEADQUATERS

DEPARTMENTAL OFFICES

582- BRANCH OFFICES

Chart no. 6.1

Corporate governance J&K Bank has been committed to all the basic tenets of good Corporate Governance well before the Securities and Exchange Board of India and the Stock Exchanges pursuant to Clause 49 of the Listing Agreement mandated these. In line with the vision, J&K Bank wants to use Corporate Governance innovatively in a transitional economy like Jammu and Kashmir. The Bank wants to use Corporate Governance as an instrument of economic and social transformation. In due course, we would set our self- targets of social and economic reporting as a part of annual disclosures. This will help us conceptualize and contextualize the form and content of Corporate Governance in a developing state. Given the fact that J & K Bank is and is seen as a great success of public-private partnership, our Bank as a business is expected to play a role in social transformation of the economy. This lends urgency to implementation of good governance practices which go beyond the Corporate Governance code. Operating in an environment that is emerging from a situation of civil strife, the issue of Corporate Governance assumes a different and greater relevance. The prime corporation of Jammu and Kashmir, have a vested interest in making the state a safe place for business. J&K Bank has a key role to play in providing public and private services, financial infrastructure and employment. As such, the efficiency and accountability of the corporation is a matter of both private and public interest and governance, therefore, comes at the top of the agenda. The fact that the bank is state owned but professionally managed, having a large size of international investors, governance is critical. For us, Corporate Governance is concerned with the systems of laws, regulations and practices, which will promote enterprise, ensure accountability and trigger performance. The J&K Bank, for one, stands for being more accountable, practice self-policing and make financial transactions transparent and constitutional.

Board of Directors The responsibility for good governance rests on the Corporate Board which has the primary duty of ensuring that the principles Of Corporate Governance, both as imbibed in law and regulations and those expected by stakeholders, are religiously and voluntarily complied with and the stake holders interests are kept at utmost high level.

Composition The Banks Board of Directors comprises a judicious mix of executive, non-executive and independent Directors as per Corporate Governance requirements. Appreciating the fact that Board Composition is key to Corporate Governance, the Board of Directors of your Bank consists of eminent persons with considerable professional experience and expertise in Banking, Finance, Economics, Industry, Law etc., combining their wide ranging experiences to impart values and provide direction to Banks development. Your Board is professional and an active Board which meets frequently during the year to chart out policies and practices. The Assent strength of the Board is seven comprising of Chairman, two Executive Directors and four NonExecutive Directors.

Committees of the board The Board of Directors of your Company has constituted several Committees of Board to take decisions on matters requiring special focus. The role and functions of the main Committees of the Board is described hereunder:

AUDIT COMMITTEE INTEGRATED RISK MANAGEMENT COMMITTEE COMPENSATION COMMITTEE SHAREHOLDERS / INVESTORS GRIEVANCE COMMITTEE MONITORING OF LARGE VALUE FRAUDS COMMITTEE SHARE TRANSFER COMMITTEE

Chart no.6.2 Organizational structure of Jammu and Kashmir bank:

BOARD OF DIRECTORS

CHAIRMAN

TWO EXECUTIVE DIRECTORS

PRESIDENT

VICE PRESIDENT

SENIOR EXECUTIVE MANAGERS

EXECUTIVE MANAGER

Chart no. 6.3 Organizational structure of the offices of the jammu and kashmir bank:

SENIOR EXECUTIVE EXECUTIVE ASSOCIATE EXECUTIVE BANKING ASSOTIATES

ASSISTANT BANKING ASSOCIATES

BANKING ATTENDANTS

Chart no. 6.4

Work structure of the Jammu and Kashmir Bank:

ASSOCIATE EXECUTIVE

BANKING ASSOTIATES

ASSISTANT BANKING ASSOCIATES ACCOUNTS

ASSISTANT BANKING ASSOCIATES ADVANCES

ASSISTANT
BANKING ASSOCIATES FOREIGN EXCHANGE

ASSISTANT BANKING

ASSOCIATES HRD

BANKING ATTENDANTS

clerks

CHAPTER 7 DEPARTMENTS

7) DEPARTMENTS

There are three main departments of the bank :Marketing, Finance and Human Resources. Under corporate headquarters there are other departmental offices all over India. a) Strategy and business development b) Finance and risk management c) Inspection & Vigilance d) Stationary e) Customer care & Information f) Law g) Trainings h) Credit i) Offices j) Security k) Advertisement l) Discipline m) Taxation n) Human resource department o) Integrated risk management p) Foreign exchange q) Information technology and information systems r) Advance and asset planning s) Asset value management

The chairman cum managing director, who is nominated by the Jammu and Kashmir Government, heads the organization. The board of Directors assists the chairman in

undertaking some important decisions. As on 31.03.2009 there were 7 members functioning as board of directors.

7) Departments of the J & K Bank The Bank J & K bank is a diverse and complex organization. The banks main departments are described below: a) Audit b) Banking operations c) Communications d) Corporate services e) Debt administration f) Executive and legal services g) Financial markets h) Financial services i) Monetary and financial services j) Research Audit It is responsible for conducting independent and objective appraisals that examine and evaluate bank operations. Banking operations There are three key players in the banks core functions which are currency, financial systems and funds management. Communications communications helps the bank to meet its commitment to openness and transparency and public relations. Corporate services Comprises the following services area: human Resources, information Technology, marketing, knowledge and information, facilities and protective services. Debt administration - Ensures the delivery of cost effective back office operations and provides policy advice

Executive and legal services Supports the banks management by providing decision support functions to be executive and to the board of directors. Financial markets Functions include implementing monetary policy, managing the federal governments cash balances and foreign exchange reserves. Financial services Responsible for the accounting and financial reporting of the bank. Monetary and Financial analysis Monitors and carries out research on the financial sector. Research Provides the bank is management with high quality analysis of the economy and related policy issues and new trends in the market. Non-business offices: The Jammu and Kashmir Bank has 4 non-business offices known as regional collection centers all over India. Normal banking business does not take place here. They mainly deal with clearance of cheques and drafts. As at certain centers, accumulation of cheques or drafts become varies in number, thus the need of such offices has arisen. Non-business offices are under the control of corporate headquarters.Taking into consideration the increasing nature of foreign exchange business that is taking place in India, The Jammu and Kashmir Bank has identified and authorized 28 offices at important places to deal with foreign exchange transactions. Such places are Srinagar, Jammu, Ludhiana, Panipat, New Delhi, Agra, Noida, Hyderabad, Bangalore, and Chennai. Etc.Co-operate headquarter of Jammu and Kashmir has three main departments, Marketing, HRD and finance department. Other departments like vigilance customer service cell etc are forming a part of cooperate headquarter.

CHAPTER 7.1 MARKETING DEPARTMENT

7.1 Marketing department

As far as central office is concerned marketing and research cell enjoys the key position among the various departments. The main function of the department is that is formulates the systems and procedures to be adopted by the bank for smooth running of bank affairs. The department adopts the systems in consonance with RBI. It receives and studies the guidelines from different quarters, revises them and circulates them to various ranches for adoptions. Marketing department of Jammu and Kashmir bank performs various other functions which are mentioned as below. It acts as a liaison office between headquarters and other offices of Jammu and Kashmir bank. It figures of the procedure and systems to be adopted for smooth functioning. Marketing department acts as designer of new product and services adopted by bank from time to time. The department is also in charge of formulating the system and procedure to be followed by the offices for acceptance of taxes. Payment of various kinds of fees such as examination fee and other related items offered by universities etc are taken by marketing department. It is responsible for fixing service charges and is responsible for monitoring cost on funds / deposits / services. It formulates rate of interest on deposits with the co-operation of ALCO.

MARKETING STRATEGY USED BY J&K BANK LTD.

A companys marketing environment consists of the factory and forces that affect the companys ability to develop and maintain successful transactions with its target customers. In the present banking environments strategic marketing approach is needed, the marketing strategy invariably includes: 1. Identifying customers financial needs and wants. 2. Developing appropriate banking services to meet these needs. 3. Pricing for the services so developed. 4. Advertising to promote the services to the existing as well as prospective customers and the future financial markets.

The marketing strategies on these points developed by J&K Bank are as under. 1. Marketing officers as offices continuously determine the customers financial needs and wants. They employ any suitable approach to get the feedback through questionnaire, interviews or any other feasible method. They send the report on consolidating findings with their observations / recommendations to M & R Cell, corporate headquarters. 2. M & R Cell at central office analyses the feedback received from the marketing officers for developing banking services / products to meet these needs. Pricing and promotional aspects are taken into consideration. 3. Marketing research is undertaken by marketing officers at other organizational Offices on continuous basis. Marketing is a responsibility of these people they also involve marketing committees also for accomplishing the task. The data can be collected by any of the methods found feasible by marketing officers.

Advertising and Publicity

Advertising and publicity have become backbone of any industrial activity. Advertising, one of the key ingredients in national economic growth is a forceful tool in molding the attitudes and behavior of people towards product, ideas and services. It not only presents ideas, goods, services but also permanent people to respond positively to the advertised message, in another way, advertising is a method form of non personnel presentation and promotion of ideas and services. Being a paid form, it helps in introducing a new product in the market and also helps company in sustaining the market share of the established product. Advertising builds a positive image of the company to the sell the product or service. Most often a new product sells because of the company background. The Jammu and Kashmir bank limited uses advertising not only for image building but also for molding public support for various kinds of its deposit as well as its loaning schemes. Continuous media campaign of the activities of the bank through advertising and publicity will not only help the bank to sustain its image of being the only Shining Star of J & K but will also improve it further. For advertising and publicity of banks image and products, following things need to be kept in mind. The bank utilizes the services of following media for advertising and publicity of its products and services.

Print Media Electronic media ( Radio & Television) Innovative Outdoor media.

Print media

The print and publication media consists primarily of newspapers and magazines. Since, these are read basically for news, entertainment and editorial contents, but they carry the advertising message to a large audience. While newspapers are read for the global, national and local events of the day, magazines are generally read for interesting stories and articles and sometimes editorial content. i) Newspaper is one medium that practically every educated person reads. Since no medium comes closer to experiencing a sense of community that the daily newspaper, the Bank easily use this vehicle for carrying its message about products and services. The display of merchandise in the daily newspaper advertisements represents a catalogue of the information of which customers look for necessary guidance as they plan their shopping ach day. Local newspapers are of immense use as advertising vehicles. As they reach to the length and breadth of the state. The bank needs to concentrate more on newspaper medium for most on its advertising, for following reasons, newspaper reach a vast audience. Newspapers provide an intensive coverage of certain geographical area. Advertising in newspapers attracts immediate response. The bank also generates a more lasting effect on the reader through newspaper advertisement. Newspapers have daily and yearlong readership so the bank can place its advertisements at any time during the year. More people than the buyer read newspapers. ii) Magazine: is a major print medium. They are characterized by readership that is joined by common life styles or special interest because of this selective market, magazines is the most popular advertisers. Some of the weakness of newspapers becomes the strengths of the magazines. If newspapers appeals to all people in the particular community: the magazines appeals to a particular people in all kinds of communities. The bank chooses the magazine, which has a maximum number of copies in elicitation and also on its direction on the target market for the product or service. Under the prevailing competition in the banking industry the

placement of advertisement is directly related to the extent to which the competitors of the bank are using these magazines. Electronic media: It primarily consists of the radio and television, which have a more persuasive influence than the print media does. Radio and television advertising have similarities as well as differences. a) Radio: Is widely used by the people to listen to music and news, most radio are portable and are found in most homes and automobiles. Radio listing tends to be an individual rather than family activity. There are various types of programs that radio stations specialize in the bank can take advantage of such programs for its image building and advertising its products or services. Because of its low cost and continuous availability radio should be favored medium for beaming the J & K Banks products and services to the common masses. The advertising messages can be easily repeated a number of times as not high cost. The bank devotes a few percentage of its advertising budget towards the radio. The radio message must be designed to grab the attention of the target audience merely through the sense of hearing.

b) Television: has become the dominant media for advertising product. It is one of the most and effective media for reaching mass audiences. It has the potential for communicating action, sound, color, emotion, demonstration better than any other non personal medium. The widespread use of color television has given advertising a new dimension that gently enhances the visual effects of commercials. Television commands undivided attention and program dedication of viewers and an eye catching commercial is easily noticed thus creating product awareness among TV viewers. Television has power to reach a great number of people.TV has the unique characteristics of the ability to demonstrate the operations and utility of the product. This makes it the closest medium to personal selling. Even though TV is a very expensive media in terms of

commercials production and airtime, dollar for dollar the cost per thousand viewers can be very low, given the advantage of sight, sound, color,

action. Thus the Banks names can be established at a very low cost per viewer. Keeping the high cost of TV advertising in view, the bank beams its product or service on rare occasions. TV commercial is short lived. It is not possible to look at the message. Outdoor advertising: Outdoor media or out home media is the goose laying the golden egg for the bank, if it is explored to a full extent. They are cheap, effective, appealing and very spectacular. Unlike indoor media, where advertisements move to people, mobile people move around the outdoors. They are more direct and effective because of their visuals appeal of great record value. All the commercial outdoor media lend for variety and innovativeness and that why new and formats emerge including illuminated hoardings, colorful posters, neon signs of various colors and designs, animated displays, inflammable balloons, sky writings pictures and car cards etc One of the major advantages of outdoor advertising is that the message reaches the public 24 hours a day all year long, especially when the sign is illuminated. The message also has a high frequency rate if it placed as strategic locations since people well see it a number of times while traveling to work or shopping. Another advantage is that the messages are useful to outside tourists. Since outdoor signs are mobile in nature and offer a high level of geographical selectivity, the bank places its advertising message at strategic locations to reach the maximum target audience. Transit advertising: is also given due consideration as it delivers a message to potential customers of the bank who use commercial and public transport facilities such as buses, taxis etc. Car cards: big corporate and business houses use these small card type advertisements for propagation of their business activities and image building purposes. The bank safely banks propagation of their business activities and

image building purposes. The bank safely banks on these cards for an adv everlasting impact on the minds of the people about the banks image, its products and services.

1.

Exterior posters these also render a great service in disseminating

information about banks activities and services. These posters designed with a visual effect in multicolor are placed on the outside of the buses, trucks and other means of transport.

2.

Special directories, Use of bank calendars and dairies Directories are valuable source of information for all types of products and services. Yellow pages and business directories have most common reach. The bank uses space of popular such directories for its advertising messages. The banks wall calendars and dairies are always in great demand. Almost every home and business establishment in the state is flooded with banks wall calendars. The bank inserts information about its products and services in calendars and desired reach of the advertising message is reached. Use of this medium costs nothing to the bank, as the bank gather information about various deposits and loaning schemes of the bank and they do not have to visit the offices / offices simply for getting about these schemes. This definitely improves the customer services of the bank

3.

Advertising agency

Since the promotional processes is going to determine the success or failure of an organization, the choice of the right advertising agency becomes a matter of prime importance, the choice of the wrong agency can prove to be very costly.

Publicity:

Publicity is any form of commercially significant new about an organization, physical good, a service, an idea or a person, published by a mass media that has been paid by a sponsor to this respect, publicity is free promotion Publicity is very important element in total promotional and marketing. It has far more credibility than advertising. Publicity has several advantages over advertising.

CHAPTER 7.2 HUMAN RESOURCE DEPARTMENT

7.2) HUMAN RESOURCE DEPARTMENT

Quality of human resources is the key to competitive strength and performance of an organization. The bank accords high priority to development of its vital resource HRD at all levels. HRM is the process of recruiting, selecting, training, motivating and maintaining employees of an organizations.HRM being an important activity in any kind of organizations. With the increased and changing environmental conditions .Jammu and Kashmir bank is also started giving more careful considerations to the man power aspect of planning. Jammu and Kashmir believes a famous saying. A happy employee is a more productive employee. Jammu and Kashmir bank as a separate organization and personal department headed by executed of the scale of president. It realizes that an employee whose performance is continuously improving is the most valuable asset to an organization. Jammu and Kashmir attitude to the man power is investment rather cost. the objective of personal department of Jammu and Kashmir bank Ltd., is to make the best use of their employee in order to ensure both their personal satisfaction and maximum returns of bank at the cost of they represent. The organizational and personal department is reckoned as a primary area having the way for the bank in its endeavor towards competitive excellence. The bank has acquired a top slot in the banking industry with a distinction of satisfying of all the service efficiency criteria norms lay down by the working group of restructuring of weak public sector bank.

Recruitment and selection Recruitment means attracting external candidates to fill the positions in the organization. Selection means offering job to valid and reliable candidates from among those whom applied for the job it is the first time when prospective employee come in contact with organization. Like most of the bank Jammu and Kashmir Bank is also follows a common method of recruiting followed by selection, first of all need for fresh candidates / employee are identified. Next to it comes a type i.e., the type of job, which they are expected to perform. After identifying the right type and right number of employees required bank approach banking service recruitment board. The function of requirement and selection are performed by banking service recruitment board. Competence is the only criteria for selection. Advertisement for vacancies is published in newspapers with all necessary aspects of jobs e.g. Level of pay, degree of job security, promotional possibility and the like. After receiving application form applicants they are called for written test. The rest is conducted by BSRB prepares a list of successful candidates who qualify the written tests. These candidates are called then for interview, according to the number jobs for which they are needed etc. as they mentioned as in the requisition set to them to the bank. All this is applicable to recruitment and selection of clerk cadre and probationary officer. Rest of the vacancies is filled through promotion within the department. In case of recruitment and selection of peon, sweeper and guards, bank approaches employment exchange. In requisition then number and type is mentioned and accordingly successful candidates are send to the bank. In case of recruitment and selection of peon, sweeper and guards, bank approaches employment exchange. In requisition then number and type in mentioned and accordingly successful candidates are sending to the bank. All government regulations are strongly adhered to regarding local preference, cast, creed, and like, special weight age in given to SC/ST and backward classes. Relaxation in age is given to the ward of ex servicemen of the bank.

Training and development programme Training is the act of increasing knowledge and skills of the employee for doing a particular job. Every new incumbent as well as old timers need a regular training because of rapid changes in technological needs, complexities and growth at present day enterprises , new educational process etc. the training involves assisting employs to use more effectively his/her skills, talent and knowledge and expand these and helping him to a course and say he is trained. It is continuous process and is progressively more searching. It should encourage the trainee to learn to make of their facilities. The establishment of their own training center at Srinagar and Jammu has proved a watershed in grooming the staff members in IT related services. Officer in scale four and above are identified for advance training programme facilities of reputed institutions like Bankers Training College (BTC), Mumbai, National Institute of Bank Management (NIBM), Pune and Noida, Administrative staff college of India (ASCI), Hyderabad and RBI College of Agriculture Banking, Pune is also invited to interact with the participating in advance programmers.

Performance appraisal, promotion and transfers Performance appraisal and promotions go hand in hand. Appraisal is the basis for determining who is permutable to higher position. It is the integral part of managing and key to it. The branch head prepares appraisal reports of officers, after receiving instructions from the head office or regional office. The head office prescribes the creation fro appraisal. The branch head marks it as excellent, good or satisfactory in the professionally coded language. It is also known as confidential report. The rating and other details in the confidential report of the employee are taken into account while considering his promotion. For higher official method of self appraisal is employed after deciding for the number and type of vacant posts.

Promotion may be on the basis of seniority track or fast track. Fast track is followed only in case of grade 2 and grade 3, in the fast track candidate is called for an interview. This is done to avoid any frustration grew among competent employees. The other method is seniority track each year prepares a list of Officers in its service showing their names in the order of their seniority an all India basis containing such other particulars as the bank may determine. A copy of such list is kept at every branch or office of the banks.

Car facility The bank may grant to an officer confirmed in bank service loan for the purpose of car, subject to some conditions. Car loan is granted up to grade 3. Reimbursement of petrol up to a certain fixed limit per month is allowed. Bank car is given to grade 4 and above officers other than those authorized by the board are allowed the use of the bank car for personal use. Free residency facility All officers are entitled as of the right to be provided with free residential facilities by one bank. The bank granted by the bank depends on the scale of the officer and place of his posting. In some big cities and metros the bank has its own apartments. In such cases employee is allotted apartment and no separate rent is given. Medical aid An officer is eligible for reimbursement of medical expenses actually incurred by him in respect of himself or his family, depending on the grade and pay scale. For this facility, the employee needs to submit declaration every year.

OFFICE MANAGEMENT

OFFICE MANAGEMENT

Every game has its own rules and methods and when these are followed it becomes as organized game. In the same manner the work to be done in an office cannot be left to a group of individuals. With the rapidly mounting volume of office work being alone and the equally rapid increase in the number of office workers required. J & K also realizes the importance of effective office management. Management of an office is quite as important job as the management of a factory or any other industrial enterprise. First to ensure that the work is done quickly as well. Second to eliminate unnecessary work which causes delays and increase expenses without justification. So office activities must be properly arranged, which cause and increase expenses

without justification.

Furnishing and layout Office layout refers to the arrangement and placing of men, materials, furniture and equipment within each section or department of the office in such a way that the utilization of space is done in the best possible manner. In all the offices the office layout is more or less same. The branch is furnished and all articles are maintained in good condition and are adequately insured against fire and other risks. Items such are computers are regularly and properly serviced and maintained in perfect working condition. All the items of fixture and furniture are properly entered in the inventory register and numbers given in the register are printed / embossed on the concerned items. The cash safe and cashiers cabin is kept separate for the purpose of security. Strong room is generally underground. In most offices direct type of lightning is used. Electric generators are placed on the flooring and also floor of the offices to reduce the sound of footstep.

Safety and security All possible steps are in force with regard to safety and security. There is a proper arrangement of word and watch of the premises. It is ensured that that the gun license is in order. The guns and store of cartridges are periodically examined by the competent persons to ensure their working conditions. So fire fighting equipments are also maintained properly and tested periodically. There are multiple exits incase of fire. Adequate insurance coverage is obtained on almost everything. Records are protected from white ants. Almost all offices are guarded by police force of the state. Mo doubt bank has employed its own armed guards for the purpose of security.

Cash management Cash is in joint custody of head cashier and manager. The keys of grill gate are in the joint custody of head cashier and manager. Requisite cash is placed at the counter in a cash box and surplus or excess cash s kept in reserve in the safe. Whenever any withdrawal or deposit is made in the cash held in the reserve. The same is recorded in the cash reserve register. Which shows the running balance of the ash in the safe from time to time? At the time of close of business the balance is shown in the cash reserve register should agree with the cash tallied book. The cash reserve register is with the manager during the day and overnight it is kept in the store room.

Office correspondence Office correspondence is mainly through UPC, registered post and courier service. Other mode of correspondence is fax machines, internet. All outward and inward mail is entered in suitable registers. Every time two copies of circular are mailed to the offices. Out of these original one is filed in the master file and other is communicated to concerned employee. All letters are received are opened by or in the presence of authorized officials and are branded immediately with the data stamp. All these letters cover cheques; bills etc are distributed to the officers.

Maintenance, preservation and destruction of records Records means written papers, documents, statements, invoices vouchers, correspondence, books of accounts, concerning an organization. Record management refers to the activities designed to control the life cycle of a record from the creation to its ultimate destination. The banking being a service industry has to deal with innumerable customers, which involves a lot of paper work and as Such accumulation of record of each transaction is evitable. The period of keeping records depends upon nature of the record. The old / obsolete records create bottlenecks, obstruct workflow consume valuable space and give an ugly look. Hence there is a need for having a system for maintenance, preservation and destruction of old to bring about operational efficiency at the offices and every branch has supplied with booklet regarding maintenance and destruction of old records. Maintenance of current records A current means all running records that are to be kept forever. In branch keeping is under the supervision of a senior clerk / officer, who is assigned the duty of maintenance of proper records. The files are indexed chronologically. For closed / completed files, its date of commencement, the description of the file and date of completion is recorded on its cover. This is noted in the file index register. Preservation of old records All records are not required for current use but are required in future are included under this category. In case completed / closed ledgers, sheets are taken out as usual from the binders and got rebound with hard cloth binding. All items of records are kept free from dust. All the records which are required to be preserved are pasted with labels on the thick side of the book vertically containing particulars as name of the branch, no. etc.

FUNCTIONS OF VARIOUS OTHER DEPARTMENTS

Investment department: this is one of the important departments of the Jammu and Kashmir Bank. It is headed by a President and comprises of officers also. This department is concerned with the management of cash to meet short term and long term requirements. It controls and allocates the financial resources to different units to ensure their optimum utilization. It also comprises of Economic and Planning Cell, Financial Reporting Cell

Inspection and vigilance department This department is prescribed by the executive manager inspection and executive manager vigilance. It investigation and vigilance department checks the working of different offices. The department comprises the following:Enquiry cell -conducts enquires regarding the charges leveled against the officials of the bank Revenue audit cell checks the revenue i.e., income and expenditure of the offices and sees that if there is any revenue leakage Customer service cell looks in to the complaints lodged by the customers against the officials of the bank. Disciplinary department This department is presided over by a executive manager. Law department This department of the bank is over looked by three president. At Delhi zone, corporate Headquarters, Srinagar and Jammu zone. It sues in the court of law against the borrowers if they fail to pay back the amount that has been advanced to them. It also represents J & K Bank in the court of law against any sues whatsoever.

Advanced department Advances or granting loans is one of the main functions of any bank. A bank gives money on credit to its customers and charges interest which accounts for a substantial portion of its profit. Computer policy and planning department The main function of this department is to develop policies and plans and computerization of offices of the bank. The computers engineers working in this department also work for the customization of various applications purchased from the market and also develop software for various departments of the bank Foreign exchange department It deals with the foreign business of the bank. It conveys the rates of foreign currencies to the office of the bank. Stationery department and Estates department It looks for premises of offices for the bank. It also arranges furniture and fixture for offices. It has to arrange and supply the required stationary items to the bank. The department interacts with the various printing presses and other ailed supply agencies to fulfill the needs of the bank.

CHAPTER 8 SWOT ANALYSIS

8) SWOT ANALYSIS

Strengths A listed Company on BSE and NSE with four decades of un-interrupted profitability. Computerized offices. Fastest growing bank in India with 582 Offices spread across in the country. Four decades of uninterrupted profitability and dividends. Credit card facility. Internet banking. Tele banking, anywhere banking, sms and mobile banking. 99 % of the total business computerized. Banker to the Government of Jammu and Kashmir State. Owned property.

Weaknesses Less coverage in east and south India Less public savings. Negligence in maintaining the customer. Improper working of ATMs. Lack of proper approach of Bankers towards the customers.

Opportunities

Continued emphasis on infrastructure facilities Increase business activities. Taking up newly and big venture projects. Making banking activity more simple and fast. Innovative financial products. Offshore banking.

Threats Customer shift to newly established banks and other banks particularly outside J & K state. Better facilities in terms of technology, people and funds. Economic liberalization allowed private banks to operate completely, thus forcing a threat.

CHAPTER 9 FINDINGS, SUGGESTIONS & CONCLUSION

9) FINDINGS

J & k bank have re-engineered the HR processes. They have replaced the old manual HR system to centralize the HR information, thus keeping a pace with technology.

Jammu and Kashmir bank is rated as one of the fastest growing bank in the country with an increase in profit by 70 % having four decades of uninterrupted profitability and dividends.

Only private sector bank designated as agent of RBI for banking Increase more and bigger venture are coming up which are going to result in rise in profit. Net profit increased by a record 13% at Rs. 409 crore as on 31.03.2009 against Rs.361 crore 31.03.2008. Business as on March 2009 crossed Rs. 37693 crore registering an increase of over 15%. Since it is aiming at making banking activities more simple and fast, it could result in increase in customers coming from rural areas. Marketing strategy used by bank is one of the best resulting in more publicity and exposure of bank, thereby attracting customers.

SUGGESTIONS

With a view to increasing its reach to the potential markets and extending banking facilities to unbanked areas the bank should look for a good location, market and rival competition.

Changing trends in the use of technology in the banking sector should be given utmost priority. Trainings should be imparted to the employees on ongoing basis to enhance their knowledge, efficiency, skills, and competencies.

Since it has 582 offices across the country, in spite of this it has less coverage in east and south India. Since south India has good number of potential customer.

Board members should put more stress towards south India. Maintaining the customer should be one of the basic aims and customers service should be given more priority. Function of ATMs should be improved which result in convenience for banking activities thereby improving customer satisfactions. Since India is one of the major tourists sports of the world more and more offices should be given foreign remittance, which can result in flow of foreign currency.

CONCLUSION

The J&K Bank is one of the fastest growing listed banks in the country with more than 582 offices. The new identity hs revolutionized J&K Bank and has representation of the Banks philosophy and business strategy. J & k bank have re-engineered the HR processes and moved a step ahead. it is highly ethical in nature as The banks philosophy is woven around its total commitment to the ethical practices in the conduct of its business. it is the Only private sector bank designated as agent of RBI for bank. The Jammu and Kashmir Bank has Four decades of uninterrupted profitability and dividends. Many competitors have failed to compete with the Bank due to its Quality service. At last it can be concluded that Jammu and Kashmir Bank is one of the leading banks of India and its maintaining is profits are growing year by year, but management should put more stress on customer satisfaction and providing much better facilities in term of banking activities.

BIBLIOGRAPHY

Bibliography

Books

Human Resource Management -Ashwathappa

Marketing Management -Ashwathappa

Marketing Management -Philip kotlar

Broachers -Jammu and Kashmir Bank

Internet -www.jkbank.net

ANNEXURE