A

PROJECT REPORT
ON
“CUSTOMER SATISFACTION TOWARDS J&K
BANK WITH REFERENCE
TO CAR LOANS”

CONDUCTED FOR

THE JAMMU & KASHMIR BANK LTD.

Submitted to Punjab Technical University in partial fulfillment

of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:
Sheikh Sajad Kousar
M.B.A 4th sem.
Roll no: 7045224137

ACADEMIC SESSION
2007-2009

St. Soldier Management and Technical Institute,

Basti Mithu, Jallandha

1
 CERTIFICATE-I

Certified that research project entitled “Customer Satisfaction

towards J&K Bank with reference to car loans “is a bonafide
research work conducted by me under the supervision and
guidance of Miss Kanika Juneja submitted to Punjab Technical
University Jalandhar in partial fulfillment for the degree of
Masters of Business Administration. No part of the research
project is submitted for any other degree.

Sheikh Sajad kousar

2
 CERTIFICATE-II

This is to certify that the research project entitled “Customer

Satisfaction towards J&K Bank with reference to car loans”
submitted by Sheikh Sajad kousar is a bonafide research
work conducted under our guidance and supervision. No part of
the research project has been submitted for evaluation in partial
fulfillment of the requirement for the degree of MBA. The
assistance and help received during the course of investigation
has been duly acknowledged.

(Miss Kanika Juneja) (Dr.Amarnath)

3
 CERTIFICATE-III

This is to certify that the research project entitled “Customer

Satisfaction towards J&K Bank with reference to car loans”
submitted by Sheikh Sajad Kousar to Punjab Technical
University Jalandhar in partial fulfillment of the requirement
for the degree of Master of Business Administration has been
approved by the students advisory committee after an oral
examination of the same in collaboration with an external
examiner.

(Dr. Amarnath) (Miss.Kanika Juneja)

Advisor- I Advisor- II

External Examiner

4
 ACKNOWLEDGEMENT

I avail this opportunity to express my deep sense of gratitude

to Mr. P.Z. Lateef Ahmad the respected chief General Manager of
the Jammu and Kashmir Bank for providing me an opportunity to
work as a project report on the Jammu and Kashmir Bank Ltd.
I also take this opportunity to thank to my guide Mr. Layek
Ahmad Jan (Marketing Manager, Zonal Office, Srinagar) and Mr.
Manzoor Ahmad Wani (Marketing Manager, Zonal Office
Anantnag) for providing me proper direction to my project, for
sparing their valuable time and rendering all possible guidance
whenever approached. Thus, from which I have gained many
insights.

Place: (Sheikh Sajad Kousar)

5
 DECLARATION BY THE STUDENT

I here by declare that this project tilted “CUSTOMER

SATISFACTION TOWARDS J&K BANK WITH REFERECE TO
CAR LOANS” is based on the original work carried out by me
under the supervision of Mr. Layek Ahmad Jan and Mr. Manzoor
Ahmad Wani is an original and bonafide work carried out in partial
fulfillment of the requirement of the award of the degree of Master
of Business Administration of Punjab Technical University.
This is my original work and not submitted for any other
diploma, fellowship, award or prizes. This is my sole effort.

Place: (Sheikh Sajad kousar)

6
 Contents

S. No. Title of the Chapter Page No.

I Executive Summery 8
II Theoretical Background 10
III Company Profile 13
IV Objectives of the Study 22
V Research Design 24
VI Analysis & Interpretation 27
VII Recommendations and Suggestions 52
VIII Research Methadology 55
IX Limitations 57
X Conclusion 59
XI Bibliography 61

7
 CHAPTER-I

EXECUTIVE SUMMARY

Executive Summary

8
 Even though J&K bank enjoys a large market share and customer
loyalty but still it is not able to tap the potential customers because
of the certain loopholes in the scheme. With the result customers
are shifting to State Bank of India particularly for car loans as
their scheme is more attractive and their severe advertising has
caused the results. The rate of interest, margin money of J&K
bank is quite high in comparison with competitors. The repayment
period and minimum finance offered is also less with the result
people wanting less amount in installments and those who want to
buy luxury sedans goes out of reach of bank. As evident the
formalities required are less and the net annual income for
availing loan is only Rs75000, which is healthy for the bank. The
J&K bank should also start financing second hand cars in order to
laurel more customers. In addition it should find tool to counter
Rs2599 of State Bank of India which is taking the toll in the
valley.

9
 CHAPTER-II

THEORETICAL BACKGROUND

What is Marketing?

10
 Marketing is the process by means of which good and services are
exchanged and their value determined in terms of money. It is that phase
of business activities through which human wants are satisfied by
exchange of goods and services.

According to American Marketing Association, Marketing is the

process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchange that
satisfy individual and organizational objectives.

Marketing Management

Marketing management represents marketing concept in action i.e.

pre-planned demand management under customer oriented marketing to
philosophy.

It can be defined as the process of planning and executing the

conception, pricing, promotion and distribution of goods, services and
ideas to create exchange with target groups that satisfy customers and
organizational objectives.

Marketing Mix Determination

Marketing Mix is that set of marketing tools that the firm uses a to
pursuer its marketing objectives in the target market. It can be defined
as a set of controllable variables that a firm can use to influence the
buyers response within a given target market. The marketer has to take a
series of decisions on four major ingredients frequently referred to as
the marketing mix variables. Product, price, place and promotion.
However there are other P’s which effects the market situation e.g.
marketing mix tools that the firm uses to pursue packing, pride, political
clout, persistence, public relation prestige etc.

The Promotion Mix

11
 Firms select a mix of promotional tools to effectively
communicate with their target customer group. The different elements
of this mix are:
(a) Advertising
(b) Personal selling
(c) Sales promotion
(d) Public relations

Not each element is helpful or effective in all product market situations.

Promotion decisions are important as they help move the product from
the manufacturing and to the consumption.

Personal Selling:

Selling is an important aspect of marketing. Customers get to

know the firm and the product through the salesperson. The image is
created or tarnished by the quality of selling demonstrated in the fields
by salespeople. They could be order takers (when they adopt stimulus
response theory or product oriented approach) or problem solvers,
consultants, or even a person who is held in esteem by the prospect.
This happens when the salesperson uses need satisfaction approach and
does things that help him or her build a positive relationship. A sales
call goes through five stages---opening, need exploration, presentation,
managing objections and closing. Probing and negotiating are the two
key tools required to succeed in the market today.

12
 CHAPTER-III

COMPANY PROFILE

13
Profile of J&K Bank

Prelude
The J&K Bank incorporated on October 1st 1938 commended
business on July 4th 1939. From a small beginning the Bank has
grown to become a giant with a wide network of branches spread
over the length and breadth of India. A significant contributing
factor for this fast growth is the solid founding principles, which are
dedicated to the cause of transforming the bank not only as a
financial heart but also as a social heart of the community.

The J&K Bank is the first state owned Bank of the country
and 53% of the equity is held by the Govt. of J&K. The Bank has a
consistent tract record of growth and profitability. It has a unique
distinction of being banker to the J&K State Govt. and has also
been appointed by RBI as its agency in J&K, responsible for
carrying general banking business of the central Govt. and
collection of taxes pertaining to the Central Board of Direct Taxes.

The landmark achievements in the diversification of the

Bank’s functions include the sponsoring of the two Regional Rural
Banks viz, Kamraz Rural Bank and Jammu Rural Bank; permission
for dealing in foreign exchange, holding the lead bank
responsibilities in eight of the fourteen districts in J&K.

Nearly 350 branches have been either partly or fully

computerized covering 90% of the total business of the bank. The
bank has already installed around 130 ATMs at vital installations of
the country. The ATMs are interconnected and thus provide the
customer convenient and 24-hour banking facilities. Bank also
introduced “Global Access Card” in collaboration with MasterCard
international, thus increasing the acceptability of card to all maestro
locations throughout the globe. Bank has also commissioned
anywhere banking facilities at more than 103 branches throughout
the country. The bank has already make available the EFT and E-

14
mail facilities at all of its computerized branches and also Tele-
banking facilities at most of these branches.

Presently the bank is the fastest growing bank in India with a

network of more than 500 branches spread across the country
offering world class banking products/services to the masses. J&K
Bank is going form strength to strength: Bank has touched business
turnover of Rs.29946 crores.
In short, Bank sees tremendous revenue growth opportunities
in all businesses. Bank will continue to invest t increase to revenue,
and enhance shareholder value through whichever means is most
appropriate, including organic development, acquisitions, joint
ventures and partnerships. Bank will continue to improve
operational efficiency, building on success to date, but won’t
hesitate to reinvest these savings in new propositions, new
initiatives, and new businesses especially if they allow bank to
exploit profitable growth opportunities. J&K Bank has a powerful
set of brands that people trust. Bank has proven products and
services, an integrated distribution network that delivers, and
financial strength. This is a tremendous base on which to grow
business profitably. Bank is confident to continue to be a winner.

In recognition of its excellent customer service, fair business

practices, overall operational efficiency, overall performance, etc
the bank has been felicitated by the following awards during the last
few years.
• Asian Banking Award-2004
• No. 1 Bank in India_ET_CMIE Survey 98-99
• The Best Bank-Rediff.com & PWC Survey
• India’s Fastest Growing Bank-Business Standard
• Excellence Award-Institute of Economic Studies.
• Ranked as No.1 on Safety Parameters-Business Standard
Survey
• Ranked as No.2 on profitability front_ Business Standard
Survey

15
 • Jamnalal Bajaj Uchit Vyavahar Puraskar2002- Council for
Fair Business Practices dated 26th March 2003
• Best Private Sector Bank Award-Financial Express, presented
by Dr. Bimal Jalan, Governor, Reserve Bank of India on 4th
April 2003.
• Best Universal Bank Award- Financial Express, Presented by
Dr. Bimal Jalan Governor, Reserve Bank of India on 4th April
2003.
• Ranked 87th among India’s Top 500 Companies by World’s
renowned rating agency-“DUN & BRADSTREET”
• Asian Banking Award 2004 for the customer Convenience
Programme.
Presently the bank is headed by Mr. Haseeb-Drabu,
Chairman cum Chief Executive Officer, who has been
felicitated by the following awards:
• Udyog Rattan Award by IES presented by Mr. K.K. Gujral,
former Hon’ble Prime Minister of India.
• Pride of India and IMM Award for excellence as Top
Professional Manager and outstanding performance in
Management Quality and Innovations in the field of banking
by Mr. H.D. Deve Gowda, former Hon’ble prime Minister of
India.
• Excellence Award by Institute of Economic Studies, Delhi.
• Pride of India Gold Award.
• Indira Gandhi Priyadarshini Award.
• J&K Govt. Award for outstanding work in J&K Bank
presented by the governor of Jammu and Kashmir on
Independence day.
• Best Banker of the year 2001 Award by Rotary Club of Delhi
Capital Presented by Sh. L.K. Advani, Deputy Prime
Minister, Govt. of India.
• “Shiromani Award” for outstanding achievements in the field
of banking and commitment to national progress and human
welfare presented by Mr. I.K Gujral, former Prime Minister if
India on August 30, 2003.
16
ORGANIZATIONAL STRUCTURE

The J&K Bank has a four tier organizational structure,

namely:

 Corporate Headquarters,
 Zonal Offices,
 Area and District Offices, and
 Branch Offices.

1. CORPORATE HEADQUARTER:
The corporate Headquarter of the Bank is located at Srinagar
and is headed by Chairman cum Chief Executive officer (CEO),
who is appointed by the J&K Government for a period of 3 to 5
years. Generally, the chairman is selected form reputed Economists,
Bankers or the Administrators of the state. The Chairman is guided
by the Board of Directors of the Bank.

Board of Directors:

The Board of Directors of the Bank consists of 14 members.

The Board sits more than a dozen times in a year to review the
business activities of the Bank. It also plans and regulates the future
activities of the Bank through policy decisions and administrative
guidelines. All the important decisions of the Bank have to be
endorsed by the Board of Directors before their implementation.

MANAGEMENT:
The management of the Bank consists of the following three
categories.
 Senior Management

17
  Middle Management, and
 Junior Management.

At the top of management there is Chairman cum CEO, who is

followed by one Chief General Manager and five General
Managers.

The chief General Manger looks after the portfolio of

administration. General Manager looks after the portfolio of
corporate Credit, ALM & Investments: Law, company Affairs and
Accounts, Retail Credit & Stationary, I&V and Insurance, Estates
& Card business. The General Managers are assisted by seven joint
General Managers and eight Deputy General Managers, who in turn
are assisted by the Assistant General Managers, are assisted by the
chief Managers.

In the Middle Management, there are Managers of Scale III, II

and in the junior Management there are Managers of Scale I.

2. ZONAL OFFICE:
Under Corporate Headquarters there are 4 Zonal Offices
spread all over India. A zonal Manager, who is of the rank of Joint
General Manager/Deputy General Manager of senior Management
cadre, heads Zonal Offices and is assisted by the Assistant General
Managers/Chief Managers heading respective Departments. The
various departments at Zonal offices look after following important
functions:
 Inspections and Estates,
 I&V, RC & Sty.,
 CC & I,
 Law,
 Trainings,
 Credit,

18
  Branches,
 Security,
 Advertisement,
 General, etc.

3. AREA/ DISTRICT OFFICES:

Under Zonal Offices, there are Area/District Offices. The
District Office is headed by the concerned District Manager. The
Branch Managers report to their respective District Manager.
Presently the Bank has 11 District Offices and 3 Area Offices.

4. Branch offices:
The various branches of the Bank in Jammu and Kashmir
State are divided into 5 different categories whereas in Delhi Zone
they are divided into 2 categories, depending on the quantum of
business. These are, in J&K State, as follows:
 Category A- Average working above Rs150.00 Crores.
 Category B- Average working Rs. 50.00 crores to
Rs.150.00 Crores.
 Category C- Average working Rs.15.00 crores to
Rs.50.00 crores.
 Category D- Average working Rs.2.00 crores to
Rs.15.00 crores.
 Category E- Average working up to Rs.2.00
In Delhi Zone the various categories of the Branches of the Bank
are:
 Category I- Average working above Rs.25.00 crores.
 Category II- Average working up to Rs.25.00 crores.

HISTORICAL BACKGROUND

Entire banking in the state of Jammu and Kashmir was

performed by traditional moneylenders till 1920-30 and that too at

19
exorbitant interest rates. At the same time some banks functioned
but at a very limited scale, such as Punjab National Bank, Grindlays
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 ht e state owing to the statutory
limitations. Under this scenario banks could not ameliorate the
financial and social position of people of the state. To overcome
this critical situation the then Maharaja of State conceived an idea
of setting up of a state Bank in the state. After, prolonged exercises
and deliberations the assignment for establishment of “The Jammu
& Kashmir Bank Limited” was given to the late Sir Sorabji N
Pochkhanwala, the then Managing Director of the Central Bank of
India. Mr. Pochkhanwala formulated a scheme on 24-09-1930,
suggesting establishment of a Semi State Bank with participation in
capital by State and public under the control of State Government.
Thus the Bank was formally incorporated on 1st of October 1938
and commenced business from 4th of July 1939 at its Registered
Office, Residency Road, Srinagar, and Kashmir.
The Jammu and Kashmir Bank limited has been the first of its
nature and composition as a state owned bank in the country. The
state Government 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 10 branches two branches of Muzaffar-abad
and Mirpur fell to the other side of 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 lacks to meet the claims. However the bank steadfastly
overcame its difficulties and kept growing. Following the extension
of central laws to the State of Jammu and 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 the social control measures in banks. The year
1971 was a turning point for the bank on conferment of scheduled

20
bank status and witnessed remarkable progress in all the vital fields
of operations. Reserve Bank of India declared the Bank as “A”
class bank in 1976.

21
 CHAPTER-IV

OBJECTIVES OF THE STUDY

Study for J&K Bank car loan scheme

22
 A study of actualization rate of promotional tools (Personal
Selling) into immediate sales.

Objectives of the Study

1. To study the impact of personal selling on sales of our car

loan product.
2. To study the problems encountered in selling this product.
3. To suggest remedial measures, if required.

23
 CHAPTER-V

RESEARCH DESIGN

Research approach and Methodology

• Research Design:-

24
 A customer survey was undertaken to assess the customers.
An exploratory research design was adopted to conduct the
study in order to know the impact of J&K bank car loan
scheme among the potential customers. In order to get the
relevant data, primary data was collected by meeting the
respondents personally.
• Sampling Plan:-
 Population of the Sample:
The population of the interest was Kashmir valley. A random
sample design was used. Judgment simple was also done to
ensure maximum coverage of J&K bank customers.
 Sample Size:
A sample of 300 respondents was taken in some organizations
like institutions, universities, hospitals and in some shopping
centers of the valley.
• Data collection:
Source of Data:
The report mainly consists of primary data gathered
through the schedule of questions asked to the respondents
directly. Information about the company, its product/ services,
features and market share were obtained from the bank and
form other secondary sources such as magazines, journals,
annual reports etc.

25
 The interviewer approached the respondents as if the was the
marketing executive of the bank and questionnaire was
formulated. The answers, queries and responses were noted
down from each respondent and accordingly the results were
formed.
• Geographical area of the study:
The data collection for this project is restricted to the Valley
of Kashmir.
• Statistical Tools:
Tools are used for tabulation of data, percentages are drawn
for generalizing the study and graphs are used for having
better pictorial representation.

26
 Chapter-VI

ANALYSIS &
INTERPRETATION

27
Comparative analysis of the various banks in Kashmir valley

(1) Head on comparison and the features of J&K bank with its
competitors in the valley.

S. No. Name of the Bank Tenure Rate of Interest

1. J&K Bank Up to 3 Years 9.5%

Above 3 to 5 Years 11%

2. State Bank of India Up to 3 Years 9%

Above 3 to 5 Years 9.25%

3. Punjab National Bank Up to 3 Years 9.25%

Above 3 to 5 Years 9.5%

4. Oriental Bank of Commerce Up to 3 Years PLR-1.5%

Above 3 to 5 Years PLR-1%

5. Central Bank of India Fixed Rate PLR+2%

6. UCO Bank Fixed Rate 11%

7. Canara Bank Fixed Rate 11.5%

Analysis:- It is evident from above table that J&K Bank levy high
rate of interest compared to its arch rival competitor state bank of
India. if it is allowed for more time that the Bank will loose the
hold of the potential customers. Therefore efforts must be raised
by the bank management to reduce the rate of interest.

(2) Margin Money required for availing the scheme

28
 Analysis:- From the graph it is observed that the margin
money required for the sanction of loan of various banks is
as:

J&K Bank =25%

UCO Bank =15%
Canara Bank =10%
Oriental Bank of Commerce =10%
Central Bank of India =20%
Punjab National Bank =25%
State Bank of India =25%
Inference:- It is evident that margin money required is high. In
order to make more influence on potential customer the bank
management should take steps in order to reduce the margin money.

(3)Repayment period of the schemes for different banks:

29
Analysis:- From the graph it is observed that the maximum
repayment period of various banks is listed as:

J&K Bank =5years

UCO Bank =5years
Canara Bank =5years
Oriental Bank of Commerce =7years
Central Bank of India =7years
Punjab National Bank =5years
State Bank of India =7years

Inference:- It is inferred that the J&K Bank offers only 5 years to

maximum repayment period while its competitors State Bank of
India offers 7 years. This in order to make the scheme more
competitive, the management should made efforts to increase the
repayment period to 7 years form 5 years which is crucial and
important step.

30
(4) Security required by the various banks

S.NO SECURITY BANKS

1. Hypothecation

2. Third Party guarantee

3. In addition to above 2 All banks obey these

Points. criteria’s.

One can keep liquid

security FDR/LIC/ Bank
approved shares in demat
form etc.

Analysis:- Under security, all the banks obey stated features.

31
(5)Quantum of maximum finance offered by different banks

Analysis:- From the graph it is observed that the maximum finance

offered by various banks is as:

J&K Bank =5Lacks

UCO Bank =7.5 Lacks
Canara Bank =No ceiling on maximum amount
Central Bank of India =10 Lacks

Inference:- It is inferred that J&K Bank should raise the quantum of

finance to bring into clutches more potential customers under its
canopy. It is for those customers who go for the luxury cars.

(6)Eligibility required for availing loan from different banks

32
S.No ELIGIBILITY BANKS
1. Employees of
Government / semi
Government undertaking
2. Autonomous bodies
3. Public sector
undertakings
4. Individuals
5. Proprietorship concerns All banks obey these
criteria’s for the sanction
6. Firms
of loan.
7. Limited Companies
8. Recognized schools /
Colleges.

9. Having regular and

known sources of income

Analysis:- It is evident that for eligibility all bank obey the above
described criteria for the sanction of loan.

33
(7)Prerequisite for formalities.

S. No. FORMALITIES BANKS

1. Income tax return UCO Bank, Canara
Bank, Oriental Bank of
Commerce, Central Bank
of India, Punjab National
Bank, State Bank of
India.

2. Certificate from Chartered

Accountant, No need for IT J and K Bank
return certificate.

3. Bank account statement for All banks require the

previous months (Current / statement of accounts for
savings) the sanction of loan

Analysis:- From above it is evident that only J and K Bank doesn’t

require IT certificate which is plus point for the bank. Because of
this, it is able to grasp more customers under its cover.

34
(8) Net annual income for availing loan.

Analysis:- From the graph the minimum gross salary / income for
availing loan is:

J&K Bank =Rs 75000

UCO Bank =Rs 1.2 Lacks
Canara Bank =Rs 1.2 Lacks
Central Bank of India =Rs 75000

Inference:- It is found that this is the added feature for J and K

Bank, with minimum income of Rs 75000 annually most of the
people could go for the scheme.

35
(9) Added information about the other banks.

(a) Oriental Bank of commerce.

1. OBC also provides finance to second hand cars under “True
Value Scheme” of Maruti Udyog Limited.
2. It charges interest rate of PLR +2.5%.
3. The repayment period is 5 years.
4. Maximum finance for second hand cars under “True Value
Scheme” is 6 Lacks.
5. Margin money required is 25%.

(b) In addition UCO and Canara Bank also provided finance

for second hand cars.

36
(10) Ashok Leyland Finance Company:-
In addition to these banks, private corporate have also entered
into this segment of car financing in the valley. It is Ashok Leyland
which has been a major presence in India’s commercial vehicle
industry for 5 decades has also entered into the line. In addition to
providing finance to their vehicles they have also started providing
finance to cars.
The scheme goes as under:-
1. Eligibility:
Employees of government / semi government undertakings,
individuals, limited companies, firms etc.
2. Security:
Hypothecation of the vehicle, no requirement of third party
guarantee.
3. Rate of Interest:
It levies a constant flat rate of 5.07%
4. Margin Money:
The margin money required for availing loan is 20% of the
cost of the vehicle.
5. Repayment:
The repayment time for the loan is 3 years in equal monthly
installments.
Special Features of the Scheme:
 Instant Finance
 No hidden charges.

37
  No guarantor required.
 No service charges.
Analysis of the J and K bank car loan Scheme
(1)Awareness about the car loan scheme among the respondents of
J and K Bank.

Unaware
22%

Aware
78%

Total No. of Respondents =300

No. of aware respondents=234
No. of unaware respondents=66

Concept:- Graph representing the awareness among the respondents

about the scheme.

Analysis:- The above graph shows 78% respondents know about

the scheme while as 22% doesn’t have clear idea about the same.
Inference:- This suggests that very few doesn’t have the clear cut
vision about the scheme though they are familiar by name
“Finance” or “Loan” only, which creates wrong impression about

38
the scheme. A genuine effort from the Bank side could convert this
percentage into future customers.
Monthly income of the respondents:

Analysis:- It is evident from the graph that the monthly income of

the respondents is as:

Rs5000---Rs 10000 =23%

Rs10000---Rs 15000 =32%
Rs15000 and above =45%

39
(2) Percentage of customers who have availed the car already
through this scheme.

Analysis:- It is analyzed that 33.33% respondents who already own

a car have adopted the scheme of the bank while the 66.66%
haven’t got the car through this scheme.

Inference:- It is inferred that promotional strategies need to be

adopted to reverse the trend and increase the awareness level, as is

40
used by the competitors. Proper awareness campaign will clear the
doubts from the minds regarding the scheme.

(4) Reasons for the non-adopting of the car loan scheme.

LAD:=Lack of advertisement
LAT=Lack of attractiveness
IBP= Indifference of banking people
AOB= All of above

Analysis:- From the graph it is clear that the reasons for not
adopting the car loan scheme are:

Lack of advertisement =25%

Lack of attractiveness compared to competitors =38%
Indifference of banking people =4.0%
All of above =33%

Inference:- It is inferred that lack of advertisement and lack of the

scheme as compared to State Bank of India are the key reasons for the

41
non-adoption of the same by the customers. Therefore, it is essential that
advertisement and attractiveness must be done in such a way to counter
the competitors and made more lively so that more and more potential
customers could relish the scheme.

(5) Awareness about the scheme of other banks (Particularly State

Bank of India).

Unaware. 17%

Aware. 83%

Analysis:- The above pie chart shows that 83% of people are aware
about the schemes of other banks while 17% are unaware about the
same.

Inference:- When the awareness level of J and K bank is compared

with that of the other banks it is found to be 78% which is less. So
efforts must be made by the J and K bank to make more people

42
aware about their schemes so that the percentage will be higher than
the current one.

(6) Sources of knowledge about awareness of schemes of other

banks.

45
42
40

35

30 27

25

20

15 13
10

0
Print Media Elect. Media Bank Branches

Analysis:- From the graph the main source of knowledge about the
awareness of other banks is:

Print Media =42%

Electronic Media =13%

43
 Bank Branches =27%

Inference:- It is inferred that the print media is considered to be the

strongest tool in bringing awareness to the people.

(7)Rating of J&K Bank car scheme with other banks

Analysis:- From the graph the rating of J and K bank with other
banks is as:

Good =32%
Satisfactory =38%
Can improve =30%
Extremely Bad =0.0%

Inference:- It is observed that most of the respondents are happy

with the scheme and the respondents who said that the scheme

44
could be improved is because of the competitors, who offer the
scheme at low rate of interest than ours and the repayment period is
also long.

(8) Reasons for not availing the car loan:

HRI =High rate of interest

MM =Margin Money
SRP =Short Repayment Period
CF =Complicated Formalities
AO =Already Owns a car
WBF =Will buy in near future
WBWF =Will buy without finance.
Analysis:- From the graph it is clear that the reasons for not
availing the car loan are as:

High rate of interest =65.30%

Margin Money =8.10%
Short Repayment Period =5.10%
Complicated Formalities =1.02%
Already owns a car =9.10%
Will buy in near future =6.12%
Will buy without finance. =5.10%

Inference:- The main reasons for not awaiting the car loan is the
rate of interest, as 56% respondents say that rate of interest is high
for not adopting the loan. This factor contributes towards the

45
inadequate response. Margin money and short repayment period are
also the reasons for the non adoption of scheme. Therefore,
management should take such steps i.e. at least bring down the rate
of interest to the competitors or less so that more and more
customers may avail the loan.

(9)Opinion of customers who availed the car loan:

(A) Formalities Involved:-

Analysis:- Formalities involved in availing the loan are:

Complicated =22%
Easy =78%

Inference:- It is evident from the chart the 78% of the people who
have availed the loan fee the formalities involved are easy. For
availing the loan, the other banks require IT return certificate but

46
J&K bank doesn’t require the same, as we know that most of the
business people doesn’t pay the taxes properly so surely that will
prefer J&K bank.

(B) Rate of Interest

Analysis:- The opinion of consumers about the rate of interest who

availed consumers loans.

47
 Needs to be reduced =87%
Adequate =13%
Inference:- As most of the people feel that the rate of the interest is
high, as the competitors are offering the scheme at reduced rates.
Therefore, efforts should be made by the bank to revise the interest
rates so that more people may avail the loan and remain satisfied.

(C) Margin Money

90
82
80

70

60

50

40

30

18
20

10

0
Adequate Need to Reduce

Analysis:- The opinion of consumers about the margin money who

availed loan is

48
 Needs to be reduced =18%
Adequate =82%

Inference:- It is evident that majority of the people feel that margin

money required for loan is adequate. In order to attract more
customers the margin money should be reduced.

(10) Total number of respondents who availed the car loan scheme
under study.

49
Analysis:- It is found that 99% of respondents did not availed the
scheme while 1% of respondents received the car under the scheme.

Inference:- It is inferred that the main reason for not applying for
the car under the scheme is high rate of interest as compared to the
competitors. The scheme of State bank of India had made the space
in people’s mind particularly Rs 2599.

(11)Total number of respondents who really got interested in the

scheme and availed the scheme.

50
Analysis:- It is fond that 83% did not availed the scheme and 17%
got the benefit of the scheme.

Inference:- As evident some respondents were not interested in the

scheme at all while the others required time to settle at the decision
of the kind of the car to buy.

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 CHAPTER-VII

RECOMMENDATIONS AND
SUGGESTIONS

52
 Recommendations and suggestions
From the fore going process, it is important for the bank to establish
a system for the continuous creation of high customer satisfaction.
The following measures are recommended to create growing
customer base:-

1. First of all the bank should over haul the scheme to make it
more competitive than the other banks. [As we already know
the Rs 2599 has already made the impact in the minds of he
potential customers].

2. The bank has to definitely reduce the rate of interest,

decrease the margin money and increase the time for the
repayment period.

3. They should not put any ceiling on the maximum finance as

is done by the Canara Bank so that people can easily avail the
loan for luxury sedans.

4. The bank should also provide the loan for the second hand
cars in order to create strong customers base with hand in
hand to Maruti’s Authorized Dealers under “True Value
Scheme” which operates mostly outside state.

53
 5. Print media adverting should be done effectively so as to
move the customers to higher levels in the decision process
for using the finance scheme.

6. The bank needs to go for aggressive marketing of its products

and requires increasing the awareness level among the
customers.

7. Definitely personal selling helps in increasing the sales and

clears the confusion about the scheme among the customers.
So bank should keep a separate force for telling the schemes
and policies of the same. It will definitely help the bank.

8. Employees of the bank must be trained to treat the customers

more courteously and to be more responsive towards their
needs and expectations. As the satisfied customers will bring
in more customers.

54
 CHAPTER-VIII

RESEARCH METHADOLOGY

55
The report in hands relate to the Jammu and Kashmir bank at
Srinagar.
Under the study all the data required for the purpose of the study
has been collected by primary as well as secondary data.
PRIMARY DATA:
Face to face
SECONDARY DATA:

• Management books
• Websites
• Annual reports

56
 CHAPTER-IX

LIMITATIONS

57
 Limitations of the study
Time factor was the major limitation.
 The findings of the report have been made in the Kashmir
valley. Care should be taken in generalizing the report for
other places.
 The bias of the respondents may have introduced errors in the
survey findings.

58
 CHAPTER-X

CONCLUSION

59
 Conclusion
Even though J&K bank enjoys a large market share and
customer loyalty but still it is not able to tap the potential customers
because of the certain loopholes in the scheme. With the result
customers are shifting to State Bank of India particularly for car
loans as their scheme is more attractive and their severe advertising
has caused the results. The rate of interest, margin money of J&K
bank is quite high in comparison with competitors. The repayment
period and maximum finance offered is also less with the result
people wanting less amount in installments and those who want to
buy luxury sedans goes out of reach of bank. As evident the
formalities required are less and the net annual income for availing
loan is only Rs 75000, which is healthy for the bank. The J&K bank
should also start financing second hand cars in order to laurel more
customers. In addition it should find tools to counter Rs 2599 of
State Bank of India which is taking the toll in the valley and has
kept the space of the mind of the potential customers busy.

60
 CHAPTER-XI

BIBLIOGRAPHY

61
 Bibliography

1. Marketing Management by Philip Kotler.

2. Marketing Management by Rajan Saxena.
3. Marketing Research by G.C Beri.
4. Annual Reports of J&K Bank Ltd.
5. Yearly Journals of J&K Bank Ltd.
6. Magazines such as Business India Trust etc.
7. Websites of J&K Bank

www.jkbank.net
www.jkbank.org

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 Questionnaire
1. Name_____________________________________________
2. Age Group:
(a) 20-30 years____________ (b) 30-40 years____________
(c) 40-50 years____________ (d) Above 50 years__________
3. Income Bracket:
(a) 5000-10000_________ (b) 10000-50000__________
(c )15000-20000_________ (d) Above 20000__________
4. Do you own a car?
(a) Yes___________ (b) No___________
5. If yes, did you get the car through finance?
(a) Yes___________ (b) No___________
6. If you do not own a car, are you interested to buy one?
(a) Yes___________ (b) No___________
7. Will you go through finance?
(a) Yes___________ (b) No___________
8. Through which bank you will opt for loan give preference:
(a) _________________ (b) _________________
(c) _________________ (d) _________________

63
9. Give reasons for preference (a):
___________________________________________________

10. Did you know about the J&K bank car loan scheme?
(a) Yes___________ (b) No___________
11. Through which media, you came to know about the scheme:
(a)Print Media___________ (b) Electronic Media ___________
(c) Bank Branches________
12. Are you aware about the scheme of other banks?
(a) Yes___________ (b) No___________
13. Rating of J&K bank car loan scheme with other banks:
(a) Good___________ (b) Satisfactory___________
(c) Can improve___________ (d) Extremely bad___________
14. Reasons for not availing the car loan:
(a)High rate of interest________ (b) Margin money_________
(c)Short repayment period_______
(d)Complicated formalities________
(e) Already owns a car___________
(f) Will buy in future_____________
64