SUMMER TRAINING REPORT

ON
ANALYSIS OF CUSTOMER SATISFACTION IN BANKING
SECTOR OF JAMMU & KASHMIR BANK

THE JAMMU & KASHMIR BANK LTD.

Submitted in partial fulfillment of the requirements
for the award of the degree of
Bachelor of Business Administration (BBA)

Affiliated To

Guru Gobind Singh Indraprastha University, Delhi

Guide:
Guide Name

Submitted by:
Student Name
Roll No.:

Institute of Information Technology & Management

New Delhi 110018
Batch (2009-2012)

CERTIFICATE
I, Mr./Ms._______________________________, Roll No. ________________
certify that the Summer Training Report (Paper Code-------) entitled Analysis of
Customer Satisfaction in Banking Sector of Jammu & Kashmir Bank is done by me
and it is an authentic work carried out by me at ___________________________
(Name of the firm or company). The matter embodied in this has not been submitted
earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Summer Training Report (Paper Code-------) entitled

____________ done by Mr./Ms._______________________________, Roll
No. ___________, is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide:
Designation:

Countersigned
Prof. ..
Director

ACKNOWLEDGEMENT
The present work is an effort to throw some light on Analysis of Customer
Satisfaction in Banking Sector of Jammu & Kashmir Bank. The work would not
have been possible to come to the present shape without the able guidance,
supervision and help to me by number of people, ...
With an overwhelming sense of gratitude, I acknowledge the valuable guidance and
consistent encouragement extended to me by our knowledgeable faculty members like
with whose guidance, I am able to accomplish this endeavor.
Their technical acumen and years of experience have provided me with crucial inputs
at a critical stage.
I also extend my heartfelt thanks to my family and friends for their support directly or
indirectly provided to me.

enrollment no._________________

EXECUTIVE SUMMARY
In the present age, the corporate world has become highly competitive. Hence, only
that service company can sustain which enjoys a competitive edge over the others.
This requires the formulation of policies and strategies keeping in view the existing
financial position, but formulation of these strategies is only possible when the
company enjoy a strong knowledge base of the environment prevailing. Assessments
of environmental position/condition of an industry/a company on the part of
management trainee/management require coupling his/her theoretical knowledge with
some practical exposure and experience.
The project is an attempt to find out the ways of customer satisfaction adopted by the
banks in the real world. So that it would be useful for a manager and staff in the real
business when he will have the responsibility to do the same.
The research methodology in this project is of descriptive nature. A comprehensive
study was done to gather the primary data by conducting personal interview.
For any bank, which exists, the prime motive is that it should be concerned with the
customer satisfaction. In todays competitive scenario where there is a lot of
competition, the emphasis was to study the usefulness of the current schemes and
services of the J&K Bank Ltd. and also to study the working result so as to find out
what is still required in the banking industry to face competition at all levels.
The project was a great source of learning and a good experience as it made us aware
of professional culture and conduct that exist in the organization.

CONTENTS
S.No

Topic

Page No.

.
1
2
3
4
5
6
7
8
9
10
11
12

Certificate (s)
Acknowledgements
List of Tables
List of Figures
List of Symbols
List of Abbreviations
Chapter-1: Profile of the Firm/Company
Chapter-2: SWOT Analysis of the Company
Chapter-3: Analysis of Financial Reports of the Company
Chapter-4: Lessons Learnt
References/Bibliography
Appendices

LIST OF TABLES
Table No.
1
2
3
4

Title

Page No.

LIST OF FIGURES
Figure No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Title

Page No.

LIST OF ABBREVIATIONS
S.No
.
1
2
3
4
5
6
7
8
9

Abbreviated Name

Full Name

CRM
EPS
CS
Int
DA
R/B
MRK
TC
J&K B

Customer Relationship Management

Earning Per Share
Customer Satisfaction
Introduction
Data Analysis
Reference & Bibliography
Marketing
Table of Content
Jammu & Kashmir Bank

CHAPTER -1
PROFILE OF THE COMPANY

PROFILE OF THE COMPANY

INTRODUCTION
What is a bank?
Bank is defined as an institution for the keeping, landing and exchanging etc. of
money. Economists have also defined a bank highlighting its various functions.
According to Crowther, the banker business is to take the debt of other people to offer
his own in exchange and thereby create money. Thus a bank is an institution that
accepts deposits from the public in turn advances loans by creating credit.
It is different from other financial institutions in that they cannot create credit though
they may be accepting deposits and making advances.
Types of banks:
Commercial banks: are those banks which perform all kinds of banking functional
such as accepting deposits, advancing loan, cr.creation and agency functions. They are
also called joint stock banks as they are organized in the same manner as joint stock
companies. They usually advance short term loans to customers some of commercial
banks in India are Andhra Bank, Canara Bank, Indian Bank, PNB etc.
Exchange banks: are those banks, which deal in foreign exchange and specialize in
financing trade. They are called foreign exchange banks. In India these exchange
banks have their head offices located outside India. These banks also render other
services such as collecting and supplying information about the foreign customers
providing remittance facilities etc. such as chartered bank, Gridlays bank.
Industrial banks: are those banks, which provide medium term and long-term
finance for industries for the purchase of land, machinery, etc. They underwrite the

debenture and shares of industries and also subscribe to them such as industrial
development bank of India, industrial finance corporation of India etc.
Agricultural banks: are those banks, which provide cr. To farmers for short term,
medium term and long term needs. In India, commercial banks, regional rural banks
and agricultural co-operative banks provide short-term loans to farmers. Such as
national bank for agriculture and rural development, NABARD.
Cooperative banks: are those financial institutions, which are organized on the
principle of cooperation. They provide short term, medium term loans to their
members. In rural area there are agriculture cooperative banks, which are also
cooperative banks, which perform the function of ordinary commercial banks but give
loan to their members only. They also get funds from the RBI. There is a state
cooperative bank in every state of India with its branches at the district level known as
the central cooperative banks.
Saving banks: help promote small saving and mobilize them. They have been very
successful in Japan and Germany. In India post office act as saving bank.
Central banks: is the apex bank, in a country, which controls its monetary, and
banking structure. It is owned by the govt. of the country and operates in national
interest. It regulates and issues currency, performs banking and a agency services for
the state, keeps cash reserves of commercial banks, keeps and manages international
currency, act as the lender of the last resort, acts as the clearing house and controls of
credit. The RBI is the central bank in India.

Banking system
The banking system is an integral sub-system of the financial system. It represents an
important channel of collecting small saving from the households and lending it to the
corporate sector.
The Indian banking system has the RBI as the apex body for all matters relating to the
banking system. It is the central bank of India. It is the bankers to all other banks.
Functions of RBI:
1. Currency issuing authority.
2. Banker to the government.
3. Banker to other banks.
4. Framing of monetary policy.
5. Exchange control.
6. Custodian to foreign exchange and gold reserves.
7. Development activities.
8. Research and development in the banking sector.

10

1.1. Company profile of the organization

The Jammu & Kashmir Bank is today one of the fastest growing banks in India with a
network of more than 500 branches/offices spread across the country offering world
class banking products/services to its customers. Today, the Bank has a status of value
driven organization and is always working towards building trust with Shareholders,
Employees, Customers, Borrowers, Regulators and other diverse Stakeholders, for
which it has adopted a strategy directed to developing a sound foundation of
relationship and trust aimed at achieving excellence, which of course, comes from the
womb of good Corporate Governance. Good Governance is a source of competitive
advantage and a critical input for achieving excellence in all pursuits. J&K Bank
considers good Corporate Governance as the sine qua non of a good banking system
and has adopted a policy based on all the four pillars of good governance
transparency, disclosures, accountability and value, enabling it to practice trusteeship,
transparency, fairness and control, leading to stakeholders delight, enhanced
shareholder value and ethical corporate citizenship. It also ensures that bank is
managed by an independent and highly qualified Board following best globally
accepted practices, transparent disclosures and empowerment of shareholders, besides
ensuring to meet shareholders aspirations and societal expectations following the
principles of management's executive freedom to drive the bank forward without
undue restraints but within the framework of effective accountability. The excellence
achieved by the bank in its operations stemming from the roots of voluntary good
Governance has not gone unrecognized and Bank has recently bagged three very
prestigious awards for following fair business practices and commitment to social
obligations.

11

Only on domestic front but also for the foreign exchange earnings .The bank
disbursed advances to the tune of Rs.5.76Lakh in first year Entire banking in the state
of Jammu and Kashmir was performed by traditional lenders till 1920 -30 and that too
at exorbitant interest rates .At the same time some banks functioned at a very limited
scale, such as Punjab National Bank Limited, Grindlay's Bank and Imperial Bank of
India.
The role of these banks was reduced to the acceptance of deposits, as they could not
grant loans and advances to the people of the state owing to the statutory limitations.
Under this scenario banks could not ameliorate the financial and social position of the
people of the state. To over come this critical situation then Maharaja of the state
conceived an idea of setting up of a state bank in the state. After a prolonged exercise
and deliberations the assignment for establishment of " The Jammu and Kashmir
Bank Limited " was given to the late Sir Sorabji N Pochkhanwala, the
Managing Director of the Central Bank of India.
Mr.Pochkhawala formulated a scheme on 24-09-1930, suggesting establishment of a
semi state Bank with participation in capital by state and the public under the control
of state Government. Thus the bank was formally incorporated on the Ist of October
1938 and commenced business from 4th of July 1939 at its Registered Office
Residency Road Srinagar, Kashmir.
The Jammu & Kashmir Bank Limited has been the first of its nature and composition
as a State owned bank in the country .The state Govt. besides contributing half of the
issued capital also appointed it as its bankers for general banking and treasury
business .In its formative years, the bank had to encounter several serious problems,
particularly around the time of independence, when out of its total of ten branches two

12

branches of Muzaffarabad and Mirpur fell to the other side of the line of control(now
Pak Administered Kashmir) along with cash and other assets in 1947. However the
State Govt. came to its rescue with the assistance of Rs.6.00 Lacs to meet the claims
however the bank stead fastily over came its difficulties and kept growing.
Following the extension of Central laws to the state of Jammu & Kashmir, the bank
was defined as a govt. company as per the provisions of Indian companies act 1956.
The bank had its first full time chairman in 1971, following social Central measures in
banks. The year 1971 was a turning point for the bank on conferment of
scheduled bank status and witnessed remarkable progress in all the vital fields of
operations .The bank was declared as "A" Class Bank by Reserve Bank of India in
1976. In recognition of dominant role and exalted performance, Reserve bank of India
appointed the bank as its agent for performing the general banking business of the
Central Govt. especially in maintaining currency chests and collection of taxes. The
landmark achievements of the bank in some important fields of operation since its
inception to March 2011 are detailed below:
Brief Profile: Jammu & Kashmir Bank is the only Bank in the country with majority
ownership vested with a state government the Government of Jammu & Kashmir.
J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialized
bank in the rest of the country. It is also the only private sector bank designated as
RBIs agent for banking business, and carries out the banking business of the Central
Government, besides collecting central taxes for CBDT.
J&K Bank follows a two-legged business model whereby it seeks to increase lending
in its home state which results in higher margins despite modest volumes, and at the

13

same time, seeks to capture niche lending opportunities on a pan-India basis to build
volumes and improve margins.
J&K Bank operates on the principle of socially empowering banking and seeks to
deliver innovative financial solutions for household, small and medium enterprises.
The Bank, incorporated in 1938, and is listed on the NSE and the BSE. It has a track
record of uninterrupted profits and dividends for four decades. The J&K Bank is rated
P1+, indicating the highest degree of safety by Standard & Poor and CRISIL.
Registered Office
M A Road
Srinagar 190 001
Jammu & Kashmir
Corporate Headquarters
M A Road
Srinagar 190 001
Jammu & Kashmir
www.jkbank.net
1.2. Explain the nature of the organization and its business
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

14

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 centres.
Anywhere Banking Features
Power to Access to your accounts across our branch network.
The facilities include Cash Deposit/Withdrawal and transfer.
Outstation Cheque collection.

Internet Banking/Features
Available for both Retail and Corporate users.
SMS Banking
Statement of Accounts.
Funds Transfer.
Submit the filled form at your branch for creation of your Internet banking user

Corporate/Retail Internet Banking

15

Both corporate and retail clients can access their accounts anytime and from any
location via the World Wide Web. Presently following services are available to the
corporate clients:
Access/view of accounts
Transfer of Funds between self linked accounts maintained with our bank.
Transfer of Funds from their own accounts to external accounts (e.g. Vendor
payment)
Transfer of Funds from external to own accounts (e.g. dealer collection).
Transfers of Bulk upload.
Transfer to non J & K Bank account holders through RBI NEFT/RTGS.
Transfer of non-standard bills.
Utility bill payments.
Ecommerce facility for JK Bank Ebanking customers
J & K Bank Secure Payment Gateway, to provide ecommerce facility to the
ebanking customers.
Tie up with M/S Avenues India Pvt. Ltd. (Ccavenue) and M/S BillDesk, for
extending ecommerce facility to the ebanking customers.
The facility shall be available to only such ebanking users, which have been
enabled by the Bank for Bill Payment facility.

16

 ebanking users intending to purchase goods online through the Ccavenue

shopping site shall be required to:
Logon to the Master Merchants (M/S Avenues India Pvt. Ltd.) website
http://world.ccavenue.com/content/clients.jsp.,
Select the item to be purchased
Select ebanking as the mode of payment.
Select the J & K Bank and the system will take the user to the J & K Banks
ebanking site prompting him to enter his ebanking user-id and password.
After entering the Banks ebanking site the customer will be able to pay the
amount of bill by debit to its own account.
M/S BillDesk - is a useful service that provides customers a single point of contact
for all your payment needs. Our customer can pay bills and make other payments
online. Instead of writing a cheque each time, now our customers can use any
device connected to the Internet (computer, kiosk, etc) and make payments with
the click of a mouse. In effect, through BillDesk customers can now make All
Payments at a Single Location.
e-Payment of Tax for
JK Bank Ebanking customers
NSDL (National Securities Depository Ltd.), the first and largest depository in
India, established in August 1996 and promoted by institutions of national stature
responsible for economic development of the country has since established a

17

national infrastructure of international standards that handles most of the securities

held and settled in dematerialised form in the Indian capital market.
Tax Information Network (TIN), a repository of nationwide tax related
information, has been established by National Securities Depository Limited on
behalf of Income Tax Department of India (ITD).
Although India had a vibrant capital market which is more than a century old, the
paper-based settlement of trades caused substantial problems like bad delivery and
delayed transfer of title till recently.
e-Payment facilitates payment of direct taxes online by taxpayers. To avail of this
facility the taxpayer is required to have a net-banking account with any of the
banks certified by NSDL,CBDT and RBI for collection of Direct TAX. J&K Bank
has been added to the list.Also, e-payment of Indirect Tax for J&K State Govt.
has been added to our services.
SMS Banking
Be in touch with your account on the move Features
Balance Enquiry
Transaction enquiry
Cheque Status Enquiry
ATM Services Features
A network of more than 325 ATMs deployed across the country.
Accepting Maestro / Cirrus / Mastercard / VISA / NFS atm / debit / credit cards.

18

Debit Cards Features

Pin Based -Maestro / Cirrus Debit Card
Provides online access to savings or current account.
Accepted at all Domestic as Well as International MasterCard, Maestro,
Cirrus Enabled ATM's and Point Of Sale locations.
Accepted at National Financial Switch (NFS) ATM's.
No Transaction Fee at JK Bank ATM's
No Transaction Fee on purchases
Credit Cards 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 upto 20% of total credit limit.
Loyalty programme
MasterCard SecureCode enbaled Credit Cards.J&K Bank lets you shop
securely online with your J&K Bank MasterCard Credit Card. This service
through a simple checkout process, confirms your identity when you make
purchases on the Internet
To use the facility, you would:
19

 Connect to the Internet and shop online using your J&K Bank Credit Card.
You don't need any special software to use MasterCard SecureCode.
Using this facility is as easy as using a PIN for ATM transactions.
Grievance Nodal Officer for Credit Cards
Mr. Parvez Ahmad
0194-2486427
grievance.creditcards@jkbmail.com
Card Issuing and Acquiring Department; Corporate Headquarters J&K Bank
Most Important Terms and Conditions (JK Bank Credit Card)
One Time Password(OTP) for IVR transactions: Effective January 1, 2011, as
mandated by Reserve Bank of India (RBI), Credit-Card-issuing Banks in India have
introduced an additional measure of security for IVR transactions (Interactive Voice
Response transactions are those transactions which are made over the phone where
certain Credit-Card details are to be entered into an automated system in order to
make payment to a merchant for the purchase of goods/services) through their Credit
Cards the OTP (One Time Password) generation.
What is an OTP?
An OTP is a six-digit code, valid for a limited period from the time of placing a
request for it. You will need to obtain an OTP before every IVR payment transaction.
How to obtain an OTP?

20

You can obtain the OTP by visiting http://www.jkbank.net/jksip.php and logging in to

J&K Bank Secure Internet Payment. A link Pre OTP is available for generating the
OTP which would be emailed to your registered email. Alternatively, the OTP can be
displayed on the screen by clicking on the small check box provided for the purpose.
How to use the OTP?
The OTP is required at the time of making payment on the IVR, where you will be
prompted to enter it along with the other details like your credit-card number, card
expiry date and CVV number.
Merchant Acquiring/ Features
All types of Visa & MasterCard based cards Accepted
Quick Merchant Payment
Merchant Helpdesk and Onsite Support.
Competitive Commission Rates
No hidden Charges
Basic Information
Depository: A depository is like a bank where securities are held in electronic
(dematerialized) form.
Dematerialization: It is the process of converting the securities held in physical form
(certificates) to an equivalent number of securities in electronic form and crediting the
same to the investor's demat account. Dematted securities do not have any certificate
numbers or distinctive numbers and are dealt only in quantity i.e. the securities are
replaceable

21

Stock Broking through INVESTMART an initiative of ILFS: You can avail the
facility of buying and selling of shares under single roof. It integrates your Broker, DP
and Bank on a single platform.You may open a trading account by opening a Demat
account with J&K BANK, SAVING ACCOUNT with J&K BANK and Stock Broking
Account by filling Investor Registration form of INVESTMART an initiative of ILFS
and our business patner for providing broking services.For further queries you may
contact the DP branches of J&K Bank
Depository Participant of NSDL and CDSL: In our country there are two central
depositories - National Securities Depositories Limited (NSDL) and Central
Depository Services Limited (CDSL).J&K BANK is Depository Participant of both
NSDL and CDSL.
Under the Depositories Act, investors can avail of the services of the depositories
through Depository Participants (DPs) such as J&K BANK. DPs are like bank
branches wherein shares in physical forms need to be deposited for converting the
same to electronic (demat) form.
Market transaction: When securities are transferred from a beneficiary account of
an investor to a clearing member account of a broker for ensuring delivery of
securities on a stock exchange, then it is a market transaction.
Off-market transactions: When securities are transferred from the beneficiary
account of one investor to that of another, and the transaction does not get routed to
the stock exchange, it is an off-market transaction.
Rematerialisation (Remat)
It is the process of conversion of securities from electronic to physical form

22

Third party service of Mutual Funds

J&K Bank has entered into tie-ups with reputed Asset Management Companies for
distribution of Mutual Fund products.
Mutual Fund industry is one of the fastest growing segments in financial services in
India. Over the years, banks in India have emerged as the biggest distributors of
financial products. This has helped the banks to capture and retain their huge client
base and simultaneously adding a steady stream of fee based income.

Mutual Funds have become an attractive proposition for investors in the current
context and for J&K Bank it will be a good investment option to have in our product
portfolio. This shall be an important step towards converting the bank branch into a
financial supermarket addressing all the financial needs of the customers thus helping
the bank retain the customers within its fold.
Moreover the branch can augment its fee based income the Bank aims to match to
industry standards.
The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and
Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes
as well as NFO (New Fund Offer) as and when the AMC comes up with the same.
Insurance Services -Life Insurance
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc.
and was incorporated as a joint venture between MetLife International Holdings, Inc.,
The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private
investors.
MetLife is one of the fastest growing life insurance companies in the country. It
serves its customers by offering a range of innovative products to individuals and

23

group customers at more than 600 locations through its bank partners and companyowned offices. MetLife has more than 32,000 Financial Advisors, who help customers
achieve peace of mind across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the
Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the
number one life insurer in the United States (based on life insurance in force), with
over 140 years of experience and relationships with more than 90 of the top one
hundred FORTUNE 500 companies. The MetLife companies offer life insurance,
annuities, automobile and home insurance, retail banking and other financial services
to individuals, as well as group insurance, reinsurance and retirement and savings
products and services to corporations and other institutions.
The bank is also Corporate Agent of MetLife and is marketing its products through its
strong branch network. Visit the Metlife Website for the details on products

1.3. Mission & vision

VISION
To catalyse economic transformation and capitalise on growth.
Our vision is to engender and catalyse economic transformation of Jammu and
Kashmir and capitalise 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.
MISSION
Our 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 us the most profitable Bank in the country.

24

VALUES: Customer Sovereignty, Passion for Excellence, Continuous Innovation,

Transparency & Integrity, People Orientation and Social Responsibilities are the core
values at the J&K Bank.
PHILOSOPHY: The Banks Corporate Governance 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. The Corporate Governance policies of your Bank recognize
the accountability of the Board vis--vis its various constituents including customers,
shareholders, investors, employees, Government and regulatory authorities and
societal responsibilities as a corporate citizen.
J&K Bank is committed to the best and transparent corporate governance practices. It
believes that proper corporate governance practices leads to effective management
and control of business, which in turn provides best value to all its stakeholders
through highly motivated personnel, visionary leadership, respect for people and
society, innovation and sound fiscal discipline.
Your Directors have immense pleasure in presenting the 67th Annual Report on the
business and operations of your Bank together with the audited accounts for the year
ended March 31.2011,

1.4. Product range of the company

Loans
Housing Loan Scheme: Quantum of loan

25

For Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower.
For repairs/renovation 20 months net salary, subject to a maximum of 10.00 Lacs.
For purchase of land: 20 months net salary/income subject to maximum of 5 Lacs
within J&K and 10.00 Lacs outside J&K.
Also as an incentive for small borrowers, the loans upto 1.5 Lacs 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.
Insurance
Life Insurance Segment/ Metlife India Insurance
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc.
and was incorporated as a joint venture between MetLife International Holdings, Inc.,
The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private
investors.
MetLife is one of the fastest growing life insurance companies in the country. It
serves its customers by offering a range of innovative products to individuals and
group customers at more than 600 locations through its bank partners and companyowned offices. MetLife has more than 32,000 Financial Advisors, who help customers
achieve peace of mind across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the
Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the
number one life insurer in the United States (based on life insurance in force), with
over 140 years of experience and relationships with more than 90 of the top one
hundred FORTUNE 500 companies. The MetLife companies offer life insurance,
annuities, automobile and home insurance, retail banking and other financial services

26

to individuals, as well as group insurance, reinsurance and retirement and savings

products and services to corporations and other institutions.
The bank is also Corporate Agent of MetLife and is marketing its products through its
strong branch network.

Tax Products/Planning
Tax Products & Planning (Tax Saver Term Deposit Scheme)
Purpose: To enable our customers to place long term deposits to earn higher rate of
interest and also to avail the tax benefits under section 80C of Income Tax Act, 1961.
Savings & Deposits

Savings Bank Deposit Scheme

Salient Features

Account can be opened with a minimum initial deposit of 100/- to 500/-

Convenient and easy to operate account to save time and money.

Suitable for irregular income group No time bar on depositing or withdrawing

money.

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 10 years of age.

Illiterate persons.

Blind persons. - Associations, clubs, Societies, Trusts, etc.

Facilities

Anywhere banking facility.

27

ATM/Debit card.

Telebanking facility.

Cheque book facility

Cards

Global Access Card

Salient Features

Pin Based -Maestro / Cirrus Debit Card

Provides online access to savings or current account.

Accepted at all Domestic as Well as International MasterCard, Maestro,

Cirrus Enabled ATM's and Point Of Sale locations.

Accepted at National Financial Switch (NFS) ATM's.

No Transaction Fee at JK Bank ATM's

No Transaction Fee on purchases

Mutual Funds
J&K Bank has entered into tie-ups with reputed Asset Management Companies for
distribution of Mutual Fund products.
Mutual Fund industry is one of the fastest growing segments in financial services in
India. Over the years, banks in India have emerged as the biggest distributors of
financial products. This has helped the banks to capture and retain their huge client
base and simultaneously adding a steady stream of fee based income.
Mutual Funds have become an attractive proposition for investors in the current
context and for J&K Bank it will be a good investment option to have in our product
portfolio. This shall be an important step towards converting the bank branch into a

28

financial supermarket addressing all the financial needs of the customers thus helping
the bank retain the customers within its fold.
Moreover the branch can augment its fee based income the Bank aims to match to
industry standards.
The

AMCs

with

which

the

Bank

has

entered

into

an

arrangement

are: UTI, Kotak and Reliance Mutual Fund. The Bank shall undertake distribution of
their current schemes as well as NFO (New Fund Offer) as and when the AMC comes
up with the same.
Non Resident Banking
A deposit plan that provides standard banking facilities such as Cheque book,
provision for nomination and other remittance facilities and also allows repatriation of
entire funds.

1.5. SIZE OF ORGANIZATION.

3200 employees across India in J&K Bank

1.6. Organization Structure of the Company

29

Fig. 1.6.1 Organization Chart

30

1.7. Market Share & Position of the Company in the Industry

Fig. 1.7.1

Fig. 1.7.2

31

1.8. Present Leadership

J&K Banks diverse and rich culture is abundantly evident in its Board Members, who
provide direction to the Bank in order to achieve its vision. A brief profile of our
eminent Board Members is as under:
Brief Profile of Directors
MUSHTAQ AHMAD: Having joined the Bank in
1972 as Probationary Officer (PO), Mr. Mushtaq
Ahmad has a distinguishing career of 36 years as a
prudent banker. His personal progression has been a
vital and contributing element of the unfolding
success story of J&K Bank since more than three
decades.
Before his retirement as Executive Director of the Bank in February 2008, he held
some of the most significant positions in the bank and discharged all his duties with
honesty and distinctive vision.
His person makes an ideal blend of specialized knowledge and practical experience in
almost all the critical fields of contemporary banking, which include Credit/Risk
Management, Strategy and Business Development, Assets & Liability Management,
Human

Resource

Development,

Investments,

Treasury,

Forex

operations,

International Banking, Insurance etc.

As a leading banker, he commands huge respect for his prudence, esteem for his
discipline and affection for his leadership skills in the Bank as well as the industry.

32

As a top executive, Mushtaq Ahmad lays great emphasis on talent search, human
resources development, skill enhancement, besides team building.
SUDHANSHU PANDEY, IAS: Mr. Sudhanshu
Pandey,

IAS,

is

Commissioner

Secretary

to

Government, Finance Department, J&K, Govt. A

post graduate in Life Science (Botany) with
specialization in Environmental Management and
Ecology (Gold Medal), University of Allahabad,
MBA

in

Financial

Management;

Business

Management and Financial Management, Institute of

Management, Ahmadabad, Reforms in Government, Indian Institute of Management,
Bangalore and Decentralized Industrial Development, Japan.
Mr. Sudhansh Pandey began his career with Indian Forest Services in 1985 and
thereafter, joined the Indian Administrative Services in 1987. Mr. Sudhanshu Pandey
has served the IAS in various distinguished capacities, which include Sub-Divisional
Magistrate, Bhaderwah (J&K), Additional Secretary Education(GOJK), Addl. Chief
Executive, Shri Mata Vaishno Devi Shrine Board, Katra (Udhampur), District
Development Commissioner and District Magistrate, Doda, J&K, Special Secretary to
Governor, J&K, Managing Director, SIDCO, Director Information, Director
Employment and Special Secretary, Labor and Employment, J&K, Director & PS to
MoS , Ministry of Commerce and Industry, GOI, Director & PS to Mos , Ministry of
External Affairs, GoI, Counselor and Director, Tagore Centre for Information,

33

ARNAB ROY: Mr. Arnab Roy, the Regional Director, Reserve

Bank of India is a holder of Masters Degrees in Arts and also
Business Administration (MBA).
He has more than 27 years of valuable experience serving the
Reserve Bank in various capacities, prominent being General Manager, Issue
Department and DBS. He has also been associated for a short while with Banking
Ombudsman and is presently the Regional Director, of J&K State.
VIKRANT KUTHIALA: Mr. Vikrant Kuthiala is B.com (Hons) from Hindu
College, Delhi University. He is a prominent Businessman from
Jammu with interests in steel manufacturing and hydel projects.
He is also representing on the committees of various academic
and professional organizations, prominent being the Regional
Advisory Committee of Central Excise & Customs, J&K, Chamber of Commerce &
Industry, Jammu and J&K State Committee of Federation of Industries of India, New
Delhi. He is also a Member of India Islamic Cultural Centre, New Delhi and
INTACH, J&K Chapter, Jammu.
PROF. NISAR

ALI: Prof. Nisar Ali is a Ph.D in

Economics from

Osmania University, Hyderabad. He is a

Professor

Post-Graduate Department of Economics,

University

from
of

Kashmir.

Prof. Nisar Ali is also Dean, Faculty of Social Sciences University of Kashmir and
Member, J&K State Finance Commission. He has served in various prominent
positions with the University and has many research papers and publications to his
credit.

34

A. M. MATTO: Mr. A. M. Matto is a Graduate in

Commerce and World Explorer. He is a high silhouette
Businessman having his interests in the manufacture and
export of Kashmir Handicrafts.
He has made significant contribution to commerce industry
by being associated with it in the capacity of President and other prominent positions.
Mr. A. M. Matto has had a long association with the Bank as Director, during which
he has made valuable contribution to the Institution with his rich and varied
experiences.
RAKESH KUMAR GUPTA: Mr. R.K. Gupta, aged 47
years, is a professional Chartered Accountant with 25 years
standing possessing skill in Finance, Taxation, Auditing and
Corporate Legal Affairs. He started his professional career
with M/s Gupta & Associates in January 1986 and heads this
renowned rm of Chartered Accountants since then.
Mr. Gupta remained in Executive Committee of the Jammu & Kashmir Branch of the
Institute of Chartered Accountants of India for three terms from 1991-1994; 19941998 and 2006-2009. During these three terms he represented the Branch as its
Treasurer, Secretary, Vice-Chairman and Chairman. Mr. Gupta has been member of
Tax Payers Committee of this Region. He has also been member of Research
Committee & Direct Tax Committee of The Institute of Chartered Accountants of
India. He is also empanelled as Peer Reviewer with Peer Review Board of the ICAI.
Having authored various articles, Mr. Gupta has to his credit published Articles in The
Chartered Accountant Journal and also in Current Tax.com on the issues of Taxation

35

and Accounting Standards. Mr. Gupta has been Guest Speaker on many occasions for
various Seminars and Study Circle meets of Chartered Accountants & others.
Mr. Gupta is Member of Taxation Advisory Committee and other Committees of
Chamber of Commerce & Industry, Jammu. He is also a Trustee in Charitable
Institutions providing education to the under privileged children and relief to the
needy. In view of his interest in social activities and sports, Mr. Gupta is also a
member of Sports and Health Committee of Prestigious Social Club.
NIHAL GARWARE: Mr. Nihal Chandrakant Garware is a
holder of Bachelor of Arts Degree (U.S.A.) and the scion of
well known Industrialist family of India the Garwares.
Mr. Nihal Chandrakant Garware, is at present Head of the
Legal Department and Liaison Department in some of the
Garware Companies. He has been a Director in various
companies in the Garware Group, where his responsibilities have ranged from
Production, Sales, Legal, Liaison to Finance. He is Advisor to outside Companies like
Ama Pvt. Ltd., D. Y. Patil Group and Sharad Pawar International School.
He is also the founder member of The Youth Wing of Indian Merchants Chamber Of
Commerce.

36

1.9. Source of data collection

OBJECTIVES
To find out parameters of customer satisfaction.
Help the bank to know customer needs from the bank, so that accordingly
they can equip themselves accordingly to the market.
To do the performance evaluation of the organization with respect to
growth, productivity and profitability.
Research Design:
There are 3 types of researches:
-

Exploratory research

Descriptive research

Casual research

From the above researches, I decided to employ blend of exploratory research and
descriptive research, as it is concerned with discovering the general nature of the
problem and the variables that relate to it.
Data Collection Method:
Data collection is done mainly through two sources namely primary and secondary.
Secondary source is nothing but utilizing somebody elses earlier effort and work.
Primary source is when the data collection is done for the first time. I had taken up
both secondary database and to have greater accuracy I decided to go in for collection
of primary database.

37

To tap secondary database I went through the brochures of the companies and even
through the web sites of all the companies.
To tap the primary database I decided to go in for Survey Method. Various tools can
be used to conduct a survey. These tools are very important to trigger a stimulus,
which would bring out their attitude and ideas. I have used Questionnaire as a tool
for the above-mentioned purpose.
QUESTIONNAIRE DESIGN
A close-ended Questionnaire has been used in this Project to know the satisfaction
level of the customers of the Bank in order to improve the services in the near future.
SAMPLE DESIGN
SAMPLE SIZE:

100
60 Males and 40 Females

SURVEY AREA:

The survey was carried out in North Delhi.

SAMPLING TECHNIQUE:

Stratified sampling technique has been used.

TIME FRAME: The time frame has been six to Seven weeks.

38

LIMITATIONS OF THE STUDY

The main source of data is primary data, though secondary data has not been
ignored.
100 samples do not reflect the opinion of customers as whole.
Time limit was another limitation and there may be possibility of committing a
general error.
Due to change in time, policies may change.

39

CHAPTER 2
SWOT ANALYSIS OF THE COMPANY

40

S.W.O.T ANALYSIS OF J&K BANK

STREANGTH
The main strength of the bank is that it is located in the residential as well as
commercial areas due to which the bank is able to cover both residential and
market share.
The bank has six days/week working schedule due to which it provide extra
working hours to its customers.
Bank has authority to deal in foreign exchange
A wide range of scheme and services to meet diverse customer needs.
Net profit of the year 115 crore.
Total assets for the year ending 2010 RS.244, 801,607
80% dividend to its shareholder.
Deposits increase by 16%.
WEAKNESS
No branch in foreign country.
Unable to provide value added services to the customer.
The look of the bank is not very attractive for the customer.
The bank lacks in sales promotion and advertisement its products and services.
Number of ATM services is very less.

41

OPPORTUNITY
Identifying the potential customer and creating market by proper channel
advertising.
Bonding the customers by paying immediate attention towards their
grievances thus enhancing customer satisfaction.
They can move easily towards universal bank.
THREATS
Existing competitors.
Attitude of concerned body towards Pvt. Bank.
Foreign players.

42

CHAPTER 3
ANALYSIS OF FINANCIAL REPORTS OF THE
COMPANY

43

ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

Table 3.1: Balance sheet
Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Sources of funds
Owner's fund
Equity share capital

48.49

48.49

48.49

48.49

48.49

Share application money

28.10

Preference share capital

3,430.19

2,961.97

2,574.37

2,232.34

1,960.24

Reserves & surplus

Loan funds
Secured loans

Unsecured loans

44,675.94 37,237.16 33,004.10 28,593.26 25,194.29

Total

48,154.62 40,247.62 35,626.96 30,902.19 27,203.03

Uses of funds

Fixed assets
Gross block

788.10

561.35

517.90

471.32

433.63

Less : accumulated depreciation

396.47

358.54

321.61

289.10

256.94

Net block

391.64

202.81

196.29

182.22

176.69

2.13

1.32

3.13

9.79

6.76

19,695.77 13,956.25 10,736.33

8,757.66

7,392.19

Less : revaluation reserve

Capital work-in-progress
Investments

Net current assets

Current assets, loans & advances
Less : current liabilities &
provisions
Total net current assets

676.17

714.95

552.34

486.47

377.19

1,248.88

1,198.97

1,069.67

1,102.02

823.31

-572.71

-484.01

-517.33

-615.55

-446.12

Miscellaneous expenses not

written

44

Mar ' 11
Total

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

19,516.83 13,676.37 10,418.42

8,334.12

7,129.52

Notes:
Book value of unquoted
investments

Market value of quoted

investments

26,979.34 12,091.51 10,080.96

11,892.97

3,840.87

484.78

484.78

Contingent liabilities
Number of equity
sharesoutstanding (Lacs)

484.78

45

484.78

484.78

Table 3.2: Profit loss account

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08 Mar ' 07

3,936.63

3,418.03

3,133.64

2,603.50

2,002.79

Material consumed

Manufacturing expenses

Personnel expenses

523.61

366.36

278.77

225.77

220.07

Selling expenses

5.99

6.23

7.36

7.72

4.94

Administrative expenses

321.40

317.84

208.01

167.96

185.86

Expenses capitalized

Cost of sales

851.01

690.43

494.15

401.45

410.87

Operating profit

916.15

790.05

651.63

578.25

460.44

Other recurring income

100.23

93.90

57.45

56.51

38.62

Adjusted PBDIT

1,016.38

883.95

709.08

634.76

499.06

Financial expenses

2,169.47

1,937.54

1,987.86

1,623.79

1,131.48

Depreciation

37.93

36.93

32.51

32.16

33.14

Other write offs

Adjusted PBT

-1,191.01

847.01

676.57

602.60

465.92

Tax charges

329.54

280.45

222.26

218.16

140.71

Adjusted PAT

615.20

512.38

409.84

360.00

274.49

Non recurring items

Other non cash adjustments

Reported net profit

615.20

512.38

409.84

360.00

274.49

Earnigs before appropriation

615.20

512.38

409.84

360.00

274.49

Equity dividend

126.04

106.65

81.97

75.14

55.75

Preference dividend

Dividend tax

20.94

18.13

13.93

12.77

9.47

Income
Operating income
Expenses

46

Retained earnings

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08 Mar ' 07

468.22

387.60

313.94

272.09

209.26

Table 3.3: Cash flow

Mar ' 11
Profit before tax

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

934.39

Net cashflow-operating activity

-659.09 -1,109.18

965.35

901.33

1,480.11

Net cash used in investing activity

-227.56

-41.65

-39.92

-40.72

-21.86

Netcash used in fin. activity

-178.78

490.31

-87.91

-37.13

-131.89

Net inc/dec in cash and equivlnt

-1,065.43

-660.52

837.52

823.48

1,326.35

Cash and equivalnt begin of year

4,614.24

5,274.76

4,437.24

3,613.76

2,287.41

Cash and equivalnt end of year

3,548.81

4,614.24

5,274.76

4,437.24

3,613.76

DATA ANALYSIS
CUSTOMERS RESPONCE
1. Are you aware that the J&K Bank is having ATM Centers?
Yes-----------------------------------------------75%
No-------------------------------------------------25%

47

Fig.3.1
INTERPRETATION
1. 75% of the Customers are aware of the J&K Banks ATM centers.
2. 25% of the Customers are not aware of the J&K Banks ATM centers.

48

2. Credit Card owned

Yes-----------------------------------------------40%
No-------------------------------------------------60%

yes, 40%

no, 60%

yes

no

Fig.3.2
INTERPRETATION
1. 40% of the Customers are having J&K Banks Credit Cards.
2. 60% of the Customers are not having J&K Banks Credit Cards.

49

3. Are you intending to take loans for financing your Assets?

Yes-----------------------------------------------67%
No-------------------------------------------------33%

50

Fig.3.3
INTERPRETATION
1. 67% of the Customers are intending to take loans for financing their Assets.
2. 33% of the Customers are not intending to take loans.

4. Do you have a Demat account?

Yes-----------------------------------------------46%
No-------------------------------------------------54%

51

Fig. 3.4:
INTERPRETATION
1. 46% of the Customers have Demat account.
2. 54% of the Customers dont have Demat account.

52

5. A Convenient Branch to get to

Yes-----------------------------------------------75%
No-------------------------------------------------25%

53

Fig. 3.5:

54

INTERPRETATION
1. 75% of the Customers said that the Branch is Convenient to get to.
2. 25% of the Customers said that the Branch is not convenient to get to.

6. Branch Hours are convenient

Excellent-----------------------------------------------25%
Good----------------------------------------------------47%
Satisfactory---------------------------------------------20%
Poor------------------------------------------------------8%

Fig 3.6:

INTERPRETATION

55

1. 25% of the Customers said that the Branch Hours are Excellent.
2. 47% of the Customers said that the Branch Hours are Good.
3. 20% of the customers said that the Branch Hours are Satisfactory.
4.

8% of the customers said that the Branch Hours are Poor.

7. The Branch layout is spacious and uncluttered

Excellent-----------------------------------------------21%
Good----------------------------------------------------73%
Satisfactory---------------------------------------------13%
Poor------------------------------------------------------3%

Fig. 3.7
INTERPRETATION

56

1. 21% of the Customers said that the Branch Layout is Excellent.

2. 73% of the Customers said that the Branch Layout is Good.
3. 4% of the Customers said that the Branch Layout is Satisfactory.
4. 3% of the Customers said that the Branch Layout is Poor.

8. I spend very little time waiting in line to get service from the tellers.
Excellent-----------------------------------------------9%
Good----------------------------------------------------81%
Satisfactory---------------------------------------------6%
Poor------------------------------------------------------4%

Fig. 3.8
INTERPRETATION
57

1. 9% of the Customers said that the service is Excellent.

2. 81% of the Customers said that the service is Good.
3. 6% of the Customers said that the service is Satisfactory.
4. 4% of the Customers said that he service is Poor.

9. Counter staff is immediately available to provide counter service.

Yes-----------------------------------------------67%
No------------------------------------------------13%

Fig. 3.9

INTERPRETATION
58

1. 67% of the Customers said that the Counter staff is immediately available to
provide counter service.
2. 33% of the Customers said that the Counter staff is not immediately available to
provide counter service.

10. Phone calls to the Branch are handled quickly and efficiently
Excellent-----------------------------------------------31%
Good----------------------------------------------------50%
Satisfactory---------------------------------------------10%
Poor------------------------------------------------------9%

Fig. 3.10
INTERPRETATION

59

1. 31% of the Customers said that the phone calls attending service is Excellent.
2. 50% of the Customers said that the phone calls attending service is Good.
3. 10% of the Customers said that this service is Satisfactory.
4. 9% of the Customers said that the phone calls are not attended properly.

11. The staff is very courtous and helpful

Excellent-----------------------------------------------80%
Good----------------------------------------------------10%
Satisfactory--------------------------------------------02%
Poor-----------------------------------------------------08%

Fig. 3.11:

INTERPRETATION
1. 80% of the Customers said that the Staff is Excellent.

60

2. 10% of the Customers said that the Staff is Good.

3. 2% of the Customers said that the Staff is Satisfactory.
4. 8% of the Customers said that the staff is not helpful at all.

12. The staff is well informed about the banks product and services
Excellent-----------------------------------------------25%
Good----------------------------------------------------47%
Satisfactory---------------------------------------------20%
Poor------------------------------------------------------8%

61

Fig 3.12:
INTERPRETATION

62

1. 75% of the Customers said that the Staff well informed.

2. 25% of the Customers said that the staff is not well informed about the Products
& Services.

13. The Branch has a pleasant and friendly atmosphere

Excellent-----------------------------------------------80%
Good----------------------------------------------------15%
Satisfactory---------------------------------------------03%
Poor------------------------------------------------------02%

Fig 3.13

INTERPRETATION
63

1. 80% of the Customers said that Branch atmosphere is Excellent

2. 15% of the Customers said that the Branch atmosphere is Good.
3.

3% of the Customers said that the Branch atmosphere is Satisfactory.

4.

2% of the Customers said that the Branch atmosphere is Poor.

14. My accounts are handled accurately

Excellent-----------------------------------------------64%
Good----------------------------------------------------27%
Satisfactory---------------------------------------------06%
Poor------------------------------------------------------03%

Fig 3.14:
INTERPRETATION
64

1. 64% of the Customers said that Account handling is Excellent

2. 27% of the Customers said that the Account handling is Good.
3.

6% of the Customers said that the Account handling is Satisfactory.

4.

3% of the Customers said that the Account handling is Poor.

15. I am well informed concerning any changes in services.

Excellent-----------------------------------------------46%
Good----------------------------------------------------34%
Satisfactory---------------------------------------------19%
Poor------------------------------------------------------01%

Fig. 3.15
INTERPRETATION

65

1. 46% of the Customers said that they are well informed about any changes in
services.
2. 34% of the Customers said that they almost get informed about any changes in
Services.
3. 19% of the Customers said that they sometimes get informed about the
changes.
4.

1% of the Customers said that they are not at all get informed about any
changes

in services.

CHAPTER-4
LESSONS LEARNT

66

LESSONS LEARNT
The bank was incorporated with the authorized capital of Rs.2.00 Lakh shares of
Rs.25/- each amounting to Rs.50.00 Lakh. The first issue comprised 80,000 shares
amounting to Rs.20.00 Lakh .A total number of 62716 shares of the value of Rs.15,
67,900/ were authorized and Rs.7.66 Lakh paid up as on 30.06.1940 .The authorized
capital was subsequently reduced to 1.20 lakh shares amounting to Rs.30.00 Lacs in
1958 and latter enhanced to 40.00 Lacs in 1992 and 80.00 Lacs in 1993 amounting to
Rs.10.00 Corers and Rs.20.00 Corers respectively. The issue capital of 28.00 lakh
shares amounting to 7.00 Corers stands subscribed and paid up as on March
31,1997 Rs.28/- per share. Thus where as the paid up capital would be increased to
Rs. 48.50 Crores, simultaneously the bank be able to earn the share premium of
Rs.86.80 Corers.
The bank has paid special attention to the vital aspect since its inception .The first
Reserves were created by the bank when amount of Rs.10, 000 / were transferred to
the account as on 30.06.1941.The reserves were created not only to meet the statutory
requirements but also for bad and doubtful debts and for meeting other contingencies.
The free reserves which were of the order of less than one lakh in 1944 and Rs.7.00
lakh in 1966 stood at Rs.42.50 Lacs in 1975 and less than one Crore in 1979. In a
span of just over 16 years the reserves have grown ten thousand times and crossed
Rs.100 Crores mark in 1995, excluding those held for the risk weighted assets.
The Bank came out with unsecured non-convertible redeemable, subordinated tier-II
Bond issue of Rs.75 corers in December 2000. The issue received an overwhelming
response and the Bank mobilized Rs.87 crores against the size of Rs.75 crores at
11.75% p.a. with a tenure of 63 months.

67

The Capital & Reserves of the Bank continued to witness a remarkable growth during
the year 2004-05. It increased to Rs.1665.40 crore during the year from Rs.1593.74
crore of the previous year.
DEPOSITS
The public has reposed its confidence in the standing of the bank from its very
inception and the same has been growing ever since that date; despite the shocks it
received as a consequence of partition because of loss of two branches within eight
years. In the first year of its operation the bank succeeded mobilizing deposits to the
tune of Rs.14 Lacs after which there was no looking back .The deposits which stood
at just over one Crores in 1949 and less than 100 Crores in 1978, grew with amazing
pace within a span of 16 years .The growth of the deposits accelerated at an amazing
pace for the decade 1980-1990, from Rs.191.67 Crores to Rs.1046.35 Crores. Barring
few occasions, the growth rate has been more than the national average, doubling in
1991-1994 (in just four years) despite the slag economic trends in the state due to
turmoil and difficult working conditions .It will be in order to reveal that when all
nationalized banks closed down their offices in valley in 1990, the J & K bank alone
braved against all odds and discharged its banking services to the public at great risks.
Not only in deposits, the bank discharged its duties under those difficult situations in
all spheres and made inroads in multifarious levels in pattern of client base. The bank
performed commendably during the year by registering the growth rate of 26.40%
against the national average of 16.1%. The deposits of the bank stood at
Rs.3658.14 Crores as on March 31st, 1997 against the Rs.2895.18 Crores as on
31.03.1996. The deposit base of the Bank touched new high at 11,168 crores at the
end of financial year 2008-09. The average deposits per branch work out to Rs.30.15

68

crore against the previous year figure of Rs.26.17 crore. The average deposit per
employee stood at Rs. 172 lakh against Rs.150 lakh of the previous year.
During the financial year 2009-10, the rate of growth in deposits was commendable
when compared to 14.1% at national level. The aggregate Deposits of the Bank
recorded an appreciable accretion of 16% to Rs.21644.97 crore during the year from
the previous year figure of Rs.18661.38 crore.
CREDIT DISPENSATION
The J&K Bank Ltd. was established with a sole aim of improving the economic
conditions of the people of the state as then existing banks could not fulfill such needs
because of various limitations as stated earlier. On the very next day of opening a loan
on Rs.1.20 Lacs was granted to the borrower. This may bee a laughable amount today,
but it carried a slogan that time .The people of the state regard J & K bank as their
own bank owing to its local orientation and characteristics and bank in turn has been
fulfilling there aspirations by spear heading the credit dispensation not only under the
normal lending schemes but also through the central and state Govt. sponsored
schemes .The bank has been instrumental in the economic upliftment of the people of
the state which other wise would have been difficult in view of its backwardness
,topographical conditions and above all conservative attitude of other banks.
Bank has been playing its role devotedly towards the economic development not,
while as the one Crores mark was achieved after 25 years only. There after the credit
disbursals gained momentum .The amount of advances stood at 131 Crores in 1980
recorded 10 fold increase and stood at Rs.1208 Crores at 31.03.1995. During the last
two years the advances registered an emphatic growth and were recorded at Rs.4763

69

Crores as on 31.03.2011. J K bank is one of the few banks, which has been able to
show exemplary performance in adjusting to the rigorous prudential norms that came
into force during 1992-93.
The bank has not only enhanced the quantitative but also qualitative approval of the
credit portfolio. On some occasions the bank's credit deposit ratio and priority sector
lending has exceeded the desired or prescribed limits. Bank has not only fulfilled its
commitments towards the Govt. of J & K but also has come to its rescue in the hours
of financial crises.
The lending to the state Govt. has been a constant phenomenon for the decades now
and in fact upsets various ratios related to credit on some occasions. The bank has
witnessed a steady growth in the borrower client base, which is spread to more than
one Lacs accounts presently. The credit portfolio of the Bank recorded a healthy
growth of 24% during the financial year 2009-10. The total advances of the Bank
stood at Rs.11517.14 crore as at the end of March 2011 as against Rs.8010.95 crores
of the previous year. The outstanding to priority sector lending increased by Rs.544
crore to Rs.2510 crore at the end of March 2011 from Rs.1966 crore of the previous
year.
INVESTMENTS
Right from the beginning, the liquidity, safety and profitability of the funds has
remained and continues to be the focus of bank's policies. During the first few years,
the surplus funds were kept either in current or fixed deposit accounts with other
banks. It was in the year 1944 when an amount of ten Lacs was invested in Govt.
securities. There after the growth of investment portfolio has been phenomenal one

70

.The investment holdings of the bank have been far beyond the statutory requirements
.The total investments in Govt. and other approved securities, bonds debentures was
to the tune of Rs.792 Crores as on 31.03.1995. During the last few years bank's
investments portfolio grew at amazing pace as the Bank's investment policy continued
to focus on increasing returns through investments in safe and liquid securities.
During the year 2009-10, the investment portfolio has recorded a growth of 7.55% to
Rs.9089.23 crore from Rs.8451.10 crore of the previous years.
PROFITABILITY
Except for the first year of business, when bank suffered a loss of Rs.0.07 Lacs as on
30.06.1941, the bank has a consistent track record of growth and profitability .In just
the second year of commencement of business, it recorded an impressive profit of
Rs.0.48 Lacs and wiped out the losses of previous year. With excellent fund
management, the profits of the bank jumped from 177 Lacs in 1990 to 1251 Lacs in
March in 1994 after providing for all the statutory and mandatory provisions.
The Bank posted a net profit of Rs.115.07 crore for the financial year 2009-10 as
against the previous year figure of Rs.406.33 crore.
Financials
The Bank recorded an outstanding achievement in the last fiscal (2009-10) in key
areas of its operations. During the year 2009-10, the Bank achieved an all time high
business turnover of Rs.33162.11 crore from Rs.27946.32 crore of the previous years
registering an increase of 18.66%. The Capital & Reserves of the Bank increased by
Rs.71.66 crore to Rs.1665.40 crore during the year from Rs.1593.74 crore of the
previous year. The Capital Adequacy Ratio stood at 15.15%, which is comfortably

71

much above the minimum stipulated by Reserve Bank of India. The Bank posted a net
profit of Rs.115.07 crore in the last fiscal as against the previous year figure of
Rs.406.33 crore .The dip in the profits is in line with overall industry trend which
witnessed diminishing yields in the securities portfolio held by banks and
consequential booking of losses. The Bank could not remain insulated to the said
affects of inflation and hardening of interest rates, which besides impacting the yields
also, depreciated the investment portfolio. In order to insulate the securities portfolio
from future market risk and to reduce the duration of its investments, Bank transferred
securities of Rs.2602.03 crore from AFS to HTM category and also disposed off long
duration securities, thereby booking depreciation /loss on investment portfolio
aggregating Rs.222.47 crore.
Bank's aggregate deposits recorded an appreciable accretion of 16% to Rs.21644.97
crore at the end of financial year 2009-10 from the previous year figure of
Rs.18661.38 crore. The rate of growth is commendable when compared to 14.1% at
national level.
The credit portfolio of the Bank also recorded an appreciable growth during the year.
The total advances of the Bank increased to Rs.11517.14 crore against Rs.9284.94
crore of the corresponding periods of the previous year registering a growth of 24%.
The outstanding to priority sector increased by Rs.544 crore to Rs.2510 crore at the
end of March 2011 from Rs.1966 crore of the previous years. The investment
portfolio recorded a growth of 8% to Rs.9089.23 crore from Rs.8451.10 crore of the
previous years. The net NPAs stood at 1.41%, against 1.48% of the previous year,
which is one of the lowest in the industry.

72

During the year, the Foreign Exchange business recorded an impressive growth of
29%, moving to Rs.5964.67 crore against Rs.4637 crore of the previous years. The
contribution of this segment to the Bank's gross income has been to the tune of
Rs.38.22 crore against Rs.34.80 crore of the previous years. The export turnover of
the Bank increased from Rs.1928.86 crore to Rs.2211.51 crore registering an increase
of 15%.
Keeping in view overall performance of the Bank, the Bank, after the approval of
shareholders, paid 80% dividend (free of tax) for the year ended 31 st March 2011.
The productivity levels continued to show sustained growth with per branch and per
employee business increasing to Rs.6632.4 lakhs and Rs.482.50 lakhs respectively.
Technology Driven Operations:
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 crossselling.
The initiatives already under way have been given a further push to accelerate growth
with tech commitment. The Bank had issued over 1.25 lakh JK Bank Global Access
Debit Cards' until March end 2011. Besides, the bank also launched its Credit Card,
which is available at all, branches of the bank across the country. Tele Banking
Facility is now available at 32 business locations of Jammu and Kashmir Zones.
Currently 97.4 % business of the Bank is computerized. The number of branches
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/offices brought under computerization programme has increased to 423 at the end of
March 2011 against 360 branches of the previous year. The Bank has an ambitious
plan of achieving total automation of operations by the year 2011.
Anywhere banking facility was extended to many new locations/branches, thereby
giving the customers the advantage of Anywhere Banking at 200 branches at the end
of 31 st March 2011. The number of ATMs of the Bank (both off-site and on-site)
already installed or under process of installation has increased to 170 during the year
under report. Moreover to further improve the customer service and have total
connectivity, the Bank has set-up a Central DATA Center and 78 branches/offices of
Delhi and Mumbai Zones have already been migrated to (Core Banking Solution)
CBS and roll over of rest of the branches of these Zones is in progress. The migration
of branches in Jammu Zone from Bancs 2000 to Finacle has also been taken up. The
Bank launched Internet Banking and SMS banking services, available at our CBS
branches. These delivery channels shall give easy access to our customers on viewing
their accounts and performing other non-financial transactions. The Financial
transactions would be available after, a nod from RBI. For convenience of our ATM
card holders and all sections of cardholders, multilingual (Hindi, Urdu & English)
screens shall be available soon on all ATMs of your Bank. Besides Fund Transfer
Facility from one account to another account shall also be available soon on Bank's
ATMs. The Bank launched its Credit Card in association with MasterCard, with three
variants Gold, Silver and Blue .The cardholders can use these cards at any ATM
carrying the Master card logo for withdrawing cash or POS terminal at merchant
establishments for shopping. The Bank has also enrolled as member of NFS (National
Financial Services) set by IDRBT by virtue of which our ATM switch has been
connected with NFS switch. The connectivity will offer facility to our debit

74

cardholders to access other Bank's ATMs, which are members of NFS in India at
lower transaction costs. During the year under report, you will be glad to know that
the Bank introduced Mobile ATM Service that is unique of its kind in northern part of
the country. The Mobile ATM offers service at the footsteps of the customer. The
Bank has customized software solution in place to handle Asset Liability Management
(ALM) system of the Bank. At present almost all the ALM sensitive data is captured
in automated form ensuring the compilation of ALM picture at short notice. Besides
CIBIL reporting system and MIS architecture has been improved to match set
standards. The Bank has launched its INTRANET SITE for surfing by the staff .The
site shall keep them updated about policies and directions of the organization at their
workplace besides helping them in resolving their customer grievances /complaints
instantly.
Innovative Products:
To maximize value to its customers, the innovation in products and improving the
quality and speed of services is the hallmark of Bank's business strategy. In keeping
with this objective, the bank has launched several unique and innovative deposit
products, which include Mehendi Deposit Scheme, Recurring Plus Deposit
Account, Flexi Deposit Scheme" etc. The scheme has flexibility of depositing
variable monthly installments as per the convenience of the depositor. As a measure to
enhance speed and efficiency of service Single Point Commit system was
introduced at its select branches, with both front and back offices manned by officers
providing end-to-end service to the customer at the same counter. At 126 branches the
said system has been extended and are in the process to extend it to equal number of
more branches.

75

The Bank is fast emerging as the most preferred DP in the chosen market providing
quality Depository Services of National Securities Depository Services Limited
(NSDL) and Central Depository Services Limited (CDSL) to more than 20000
customers with custody of securities worth Rs5450 crores.
Bank is extending broking services at its DP centers in association with M/S IL&FS
Investsmart Limited. The Bank is having a vision to transform its DP centers into
Capital Market Bank and share trading services, which will provide wide range of
financial products to its existing and prospective customers.
Diversification of Business
The Bank diversified its business activities into insurance, both life and non-life. The
Bank not only became the strategic partner of MetLife Insurance India (P) Limited,
but also has been acting as corporate agent of the said company for distribution of
their life insurance products through network of its branches. The Bank also entered
into a tie-up with Baja Allianz General Insurance Company for distribution of their
non-life insurance products. In view of Bank's deep branch network and loyal
customer base particularly in Jammu and Kashmir, the Bank has been able to
distribute insurance products in deep rural and far flung areas and has made
penetration in the new areas thereby adding to its non interest and fee based income.
Recognition and Awards
The Bank recently won the prestigious Asian Banking Award 2005 for its
Development Project Financing Programme', contributing significantly to the
development of tourism industry of the J&K State. The award was presented by the

76

Under Secretary Finance, Philippines, at a glittering Gala Dinner award function held
at Manila, Philippines on June 17, 2011.
The annual Asian banking awards recognize and honor Asian banks for outstanding,
innovative and world-class products and programmes implemented during the
previous year. It is the most respected and premier banking awards programme in Asia
Pacific region. It is worth mentioning that the Bank has won the Asian Banking Award
consecutively for the second year. Last year, the Bank won the award for Customer
Convenience Programmes and was also given runners up certificate for its project
Motivating Employees for Better Performance' under operational efficiency
programme' category.
The Bank was ranked fifth among the top ten Asian banks and 762 nd among top
1000 World banks. A renowned business journal "Business Today" ranked JK Bank
among 25 top investor friendly companies in India, the only bank in the whole Indian
Banking industry, which has been ranked in the magazine among first 10 Investor
Friendly Companies. The Bank for the second consecutive year was ranked Best
Private Sector Bank in Financial Express/ Ernest and Young combined Survey for the
year 2002-03 released recently. Bank was awarded Shiromani Award' for outstanding
achievements in the field of banking and commitment to national progress and human
welfare during the year under report.
The Bank has figured among 24 Indian companies in Forbes Global - 100 best under
a billion Asia's Rising Companies', listed by Forbes magazine in its latest issue dated
November 1. The publication has commended J&K Bank for representing economic
dynamism' in the region, sustained growth in all spheres and an excellent track record
of rewarding its shareholders.

77

Corporate Social Responsibility:

The Bank has also achieved the distinction of winning the Runner up trophy at
prestigious Asian Corporate Social Responsibility Forum recently. Corporate Social
Responsibility (CSR) is truly embedded in the Bank's day-to-day business, policy and
strategy and addresses all stakeholders. CSR is not just an add-on' or a one time only
subject, but is integrated into the organization's management practices. The Board of
Directors and Management of the Bank are fully aware of Bank's Corporate
Responsibility as a corporate citizen and are actively involved and committed towards
their corporate obligations towards all the stakeholders. The Bank follows the concept
that excellence in CSR is exceeding the minimum regulatory framework in which the
organization operates and to strive to understand and respond to the expectations of
their stakeholders in society. The CSR policy of our Bank involves meeting the needs
of all stakeholders and not just shareholders against some form of ethical basis. The
Bank is committed to the best and transparent corporate governance practices. It
believes that proper corporate governance practices lead to effective management and
control of business, which in turn provides best value to all its stakeholders.
The Bank's CSR is rooted in its Corporate Governance philosophy, which in turn is
woven around Bank's commitment to ethical practices in the conduct of its business,
while striving in the constant quest to grow with profits and enhance shareholders
value and align interests of the shareholders, stakeholders and society through
adoption of best international practices and standards. 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.

78

Being a good neighbour and showing that you care on the one hand and being a
successful business on the other, are flip sides of the same coin.
In early 1990's when most of the banks closed their business in J&K State particularly
in Kashmir valley owing to onset of militancy, it was only J&K Bank that sustained
its operations with perceptible growth in its business besides expanding its network of
branches even into the remotest areas of the State. The Bank has a heritage of braving
all odds and despite hostile operating environments; the Bank has been on a growth
path and has achieved impressive business results during last few years. Bank
manages social issues in the same manner as it manages any other strategic business
issue. CSR is not just recognized as promulgating the Bank's own values and
principles but also the values and principles of all those who have a stake in, or are
affected by, its operation. The Bank, in addition to playing its role in economic
development of the state and country, also contributes significantly towards social
cause. The bank has carved a niche for itself among the poor and the needy by
donating generously for various philanthropic activities aimed at ameliorating their
sufferings. Be it fire victims, disabled or patients with serious ailments who lack
reliable means of survival, the bank continued its support and help to them. The bank
adopts orphans by providing financial support to orphanage homes and donating
computer systems to enable the socially/economically deprived children to acquire IT
knowledge. The bank as a responsible corporate citizen provides donations to patients
for the treatment of dreaded diseases needing Heart Surgery, Kidney Transplantation,
etc and helps the needy & poor in acquiring hearing aids, artificial limbs, pace makers
etc. The Bank has made donation to the tune of Rs.60 lakhs in the recent past. A three
days rehabilitation camp for physically disabled persons was organized by the Bank in
association with Bhagwan Mahaveer Viklang Sahayata Samiti, Jaipur (India) where

79

210 persons were provided with artificial limbs and appropriate treatment to many
more.
The Bank donated a van to Society for Rural and Urban Development (SRUD),
Srinagar, for the use of physically and mentally challenged children. An Ultrasound
machine was donated by the Bank to the Cancer Society of Kashmir, Srinagar for the
treatment of economically deprived patients. The Bank donated Gastro Fibrescope
Endoscopic Machine, costing about Rs.5.67 lakhs to the Cancer Society of Kashmir
for the benefit of poor patients who suffer from serious digestive ailments.
To provide timely relief to the victims of the devastating earthquake in Gujarat, the
Bank donated a sum of Rs.10.00 lakhs to the Jammu & Kashmir Chief Minister's
Relief Fund. The officers of the Bank also donated their one-day's salary amounting to
Rs.11 lakhs to the Relief Fund. Recently the Bank donated Rs.one lakh to Maharaja
Ranjit Singh Trust, New Delhi, for the upliftment of downtrodden sections of the
society. The Bank gave donation to the Foundation for inter-community Relations
Delhi for upliftment of society. A financial assistance to the tune of Rs.1.00 lakh for
the welfare of Gujjars was given to Gurjar Desh Charitable Trust, Jammu. The Bank
donated sewing machines to destitute widows through Barites Dalit Sahitya Academy,
Jammu. Showing its eagerness for the upliftment of women, the Bank donated
embroidary machines to Women's Welfare Society, Kachhama, and Kupwara. The
Bank also gave donation to NGO Friends Association for Ladies and Orphans Welfare
(FALOW), Srinagar.
Devastating fire in village Batpora (Wathora), Kashmir rendered hundreds of people
homeless and two persons lost their lives. The Bank organized a relief camp and
distributed 50 kgs of rice and Rs.5, 000 to each of the affected family. Similarly,

80

another relief camp was organized for the fire victims at Seer, Anantnag (South
Kashmir), where blankets, eatables and domestic utensils were distributed among the
sufferers. A camp was also organised by the Bank at Lasipora, Pahalgam, where cash
was distributed among the fire victims.
With a view to help Kargil war sufferers of Drass area in Ladakh region in their
rehabilitation, the Bank organized a relief camp. Blankets and eatables were
distributed among the people covering about 1500 families settled in 17 villages in
and around Drass, who had migrated to Sankoo, Saliskote and other far flung areas of
Kargil. Stationery items were distributed among the school children.
CONCLUSION
1. J & K bank being the largest bank in the private sector has pioneered the concept
of modern banking as opposed to the traditional and conventional approach to
banking of the nationalized banks.
2. The product and the services of the bank have captured the customer interest and
the bank has grown
Phenomenally within a short period of time.
3. The study helps in providing useful information to the J&K Bank about the
services, product features and the satisfaction level of the customers.
4. The study helps in understanding the competitive environment in which the new
operation private Bank are operating today design to meet Banking needs and
customer satisfaction.

81

RECOMMENDATIONS

The bank should open its branches in rural areas to trap more customers for the
bank.

Brochure if the forthcoming schemes should send to the customers along with
there monthly and quarterly statements.

Banks should try to find out a way to provide door services to its customers, as
this is very convenient for the businessman and shopkeepers of the area.

Competitive strategy should be adopted to capture the market.

Customers usually prefer loan, therefore loan provisions should be given more
emphasis.

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Body of the report (As per Appendix A)

CHAPTER -1:

PROFILE OF THE COMPANY

CHAPTER 2:

SWOT ANALYSIS OF THE COMPANY

CHAPTER 3:

ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

CHAPTER-4:

LESSONS LEARNT

References & Bibliography

Appendices

83

REFERENCES/BIBLIOGRAPHY

BOOKS
The History of Banks- by Richard Hildreath
The Multilateral Development Banks - by Diana Tussie

WWW.JKBANK.NET

WWW.NSEINDIA.COM

PNBINDIA.COM

WWW.BANKSPOWER.COM

84

APPENDICES
QUESTIONNAIRE
Please help us to please you, but first thank you for being our customer.
We are extremely anxious to make our operation the finest possible, but we need your
help, principally because you see us objectively. Will you be kind enough to check off
some answers on the self-improvement questionnaire?
NAME: _______________________________
1. How would you rate the overall Quality of service you receive from THE J&K
Bank?
EXCELLENT
GOOD
SATISFACTORY
POOR

2. A Convenient Branch to get to

EXCELLENT
GOOD
SATISFACTORY
POOR
3.

Branch Hours are convenient

EXCELLENT
GOOD
SATISFACTORY
POOR

85

4.

The Branch layout is spacious and uncluttered.

EXCELLENT
GOOD
SATISFACTORY
POOR

5.

I spend very little time waiting in line to get service from the tellers.
EXCELLENT
GOOD
SATISFACTORY
POOR

6.

Counter staff is immediately available to provide counter service.

EXCELLENT
GOOD
SATISFACTORY
POOR

7.

Phone calls to the Branch are handled quickly and efficiently.

EXCELLENT
GOOD
SATISFACTORY
POOR

8.

The staff is very courteous and helpful.

EXCELLENT
GOOD

86

 SATISFACTORY
POOR
9.

The staff is well informed about the Banks products and services.
EXCELLENT
GOOD
SATISFACTORY
POOR

10. The Branch has a pleasant and friendly atmosphere.

EXCELLENT
GOOD
SATISFACTORY
POOR
11. My accounts are handled
EXCELLENT
GOOD
SATISFACTORY
POOR
12. I am well informed concerning any changes in services
EXCELLENT
GOOD
SATISFACTORY
POOR

Signature: _________________

87

Name: _________________

88