SUMMER PROJECT REPORT

A STUDY ON LOANS AND CREDIT PRODUCTS OF BCCB &

LEVEL OF CUSTOMER SATISFACTION

Prepared for the Mumbai University in the partial fulfillment of the

requirement for the award of the degree in

MASTERS OF MANAGEMENT STUDIES

Submitted By:
Name : ONISH POLYCARP RODRIGUES

Roll No: 66 & Year : 2017

Under the guidance of

DR. SULBHA RAORANE

SFIMAR

St Francis Institute Of Management And Research, Mt. Poinsur,

S.V.P Road, Borivali (W) Mumbai.

Batch- 2016-2018

1
 DECLARATION

This is to certify that project report “A STUDY ON LOANS AND CREDIT

PRODUCTS OF BCCB & LEVEL OF CUSTOMER SATISFACTION” at Bassein
Catholic Co-operative Bank has been successfully completed by Mr. Onish Rodrigues
in partial fulfillment of the requirement for the award of the degree in Master in
Management Studies at St. Francis Institute of Management and Research under Mumbai
University.

The information submitted is true, original and to the best of my knowledge.

Signature of the Student:

Name: Onish Polycarp Rodrigues

Roll No: 66

Specialization: Finance

Counter signed by faculty guide:

Name of the faculty guide: DR. SULBHA RAORANE

2
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to all those who have
contributed significantly by sharing the knowledge and experience in completion of the
project report.

I owe my sincere gratitude to, Bassein Catholic Co-operative Bank Ltd for providing me
the opportunity to undergo two months summer training on this project. It was a great
learning experience.

I am thankful to everyone for their aspiring guidance, invaluably constructive criticism

and advices during project work. I am grateful to them for sharing their truthful and
illuminating views a number of issues related to the project.

I express my warm thanks to MR. JACOB GONSALVES for his support and guidance at
Bassein Catholic Co-operative Bank. I would also like to thank my project guide DR.
SULBHA RAORANE who provided me with the facilities being required and conditions
for my summer project.

3
 TABLE OF CONTENTS

SR.NO TABLE OF CONTENTS PAGE

NO.

1 Company profile 7 - 10

2 Organizational chart of BCCB 11

3 Need for study 12

4 Objectives 12

5 Research methodology 13

6 Literature review 14 - 15

7 Loans and credit products of BCCB 16 - 29

8 Analysis and interpretation 30 - 38

9 Hypothesis testing 39 - 43

10 Findings 44

11 Suggestions 45

12 Limitations 46

13 Conclusion 47

14 Bibliography 48

15 Appendix 49 - 50

4
 EXECUTIVE SUMMARY

The report title is “ A STUDY ON LOANS AND CREDIT PRODUCTS OF BCCB &
LEVEL OF CUSTOMER SATISFACTION “. The report gives an overview of the
banking sector and the company profile. This project was conducted to study the variety
of loans and credits offered by BCCB. Also to study level of customer satisfaction a
survey was conducted having sample size of 30 respondents. The methodology adopted
for the study was through a structured questionnaire. The data collected from different
customers was analyzed thoroughly and presented in the form of tables and charts and for
better understanding hypothesis testing was also conducted.

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 WORK PROFILE
My work profile was doing daily Banking activities on BCCB ERP software (OMNI)
like….

 Opening new Saving A/c.

 Debit & Credit transactions of cheques.

 Fund Transfers.

 Issuing new cheque books for customers.

 Issuing Fixed deposits, Double benefit deposits, Recurring Deposits.

 Checking loan files and updating KYC documentation.

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BASSEIN CATHOLIC CO-OPERATIVE BANK

Bassein catholic Co-op bank ltd (BCCB) was established as Credit Co-operative
Society by Social reformer Rev Msgr. P. J. Monis, christian missionery on 6th February
1918 along with social activists in Vasai to bring financial freedom in the region of
Vasai. Through his mission he succeeded in up-lifting the society, which has brought
massive change in the peoples lifestyle, education and financial stability.

MILESTONES:-

・ Established as credit society in the year 6th february 1918.

・ Converted into Urban Co-op. Bank in 1966.

・ 'Scheduled Bank Status' conferred on the bank in 1990.

・ Implementation of core banking software in 2010 across all branches.

・ Tied up with CRISIL & SMERA credit rating agency for rating for units.

・ Tied up with SIDBI for credit link capital subsidy.

・ Introduction of RUPAY Debit card.

・ AD-1 License granted by RBI in 2015.

・ Papdy, Bangli and Holi branch completed 50 Glorious years of service.

・ Net banking facility in 2016.

7
 MISSION AND VISION STATEMENT

MISSION :-

Delight the customer by providing simplified and modernized banking

solutions through superior technology and customer relationship.

VISION :-

Exceed customer expectations by making their dreams our priority, thereby

serving the community and beyond.

CORE VALUES OF THE BCCB

・ RESPECT

・ FAIRNESS

・ TEAM SPIRIT

・ COMMITMENT

・ SERVICE EXCELLENCE

・ INSIGHT AND SPIRIT

・ BUSSINESS ETHICS
8
 DEPARTMENTS AT BCCB

If the jobs are not organized considering their interrelationship and are not
allocated in a particular department it would be very difficult to control the system
effectively and measure the performance of the employees. Bassein Catholic Co-op Bank
Ltd. has divided the jobs in various departments which help them to control and monitor
the bank very well. The departments in BCCB are as follows :

 Finance & Accounts Department

 Human Resource Department

 Personal Banking Department

 Treasury Department

 Operation Department

 Computer and Information Technology Department

 Credit Department

 Clearing Department NEFT

9
 AWARDS

The spectacular performance of the bank, over the years has been duly acknowledged by
Co-operative Banking Association/Federations by bestowing the following awards.

 The Maharashtra State Co-operative Banks Association Ltd., in the year 2014-15
awarded the Bank “Late Padmabhushan Vasant Dada Patil, Best Urban Co-op.
Bank” amongst all scheduled/ multi state co-operative banks in Maharashtra.

 Avis Publication has awarded the Bank “BANCO PURASKAR 2014”- 1st prize
for the best performance for the financial year 2013-2014 in the category of
Banks having deposits of Rs. 3000 to Rs. 5000 crore.

 ‘Sahakar Bhushan’ Award 2013-14 by Maharashtra Government.

 Pratibimba’ Award 2013-14 for Annual Report by Sahakar Sugandha magazine

published by Sahakar Bharti.

 The Indian Banker magazine has given 1st rank to our Bank on the basis of
Average Cost of Funds, Return on Assets, CRAR ,and Business per Empolees

 Banking Frontiers Year 2011 Award for Excellence in Recovery & NPA
Management in large Urban Co-Operative Banks Category The Bank has 45
branches with 37 Onsite and 2 Off site ATMs . All the branches operate on CBS.

10
 ORGANIZATIONAL CHART OF BCCB

COMMITTEE OF MANAGEMENT

MANAGING DIRECTOR

GENERAL MANAGER

DY. GENERAL ACCOUNT OFFICER ESTABLISHING OFFICER B.M (AUDIT)

MANAGER

BRANCH MANAGERS IN DIFFERENT BRANCHES

ACCOUNTANT/CASHIER STORE KEEPER SALES ASSISTANT

11
 NEED FOR STUDY

The purpose of conducting this project is to get a detailed knowledge about the variety of
loans and credit facilities offered in BCCB. This project will help me study which is the
most profit generating loan for BCCB bank. Also a survey will be conducted for
customers who have used this loans and credit products to find their satisfaction towards
the same.

OBJECTIVES

 To study the features, interest rates and documentation procedure of loans and
credits offered by BCCB.

 To find out which product is most preferred by the customers of branch office.

 To study level of customer satisfaction towards the loans & Credit products of
BCCB.

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 RESEARCH METHODOLOGY

I. Research Design :-

Descriptive and Exploratory research design is used in this

project to study the loans and credit products of BCCB in depth.

II. Data Collection :-

 Primary Data :-

Primary data was collected by questioning customers. A

part of this data was also collected by interacting with employees and manager of
bank.

 Secondary Data :-

 Credit policy giving information about various products and services

offered by BCCB.

 BCCB website.

 Manual of instructions on loans and advances.

 Annual reports.

 Brochures of BCCB.

III. Sample size :-

30 customers were randomly selected.

13
 LITERATURE REVIEW

The Indian economy has been on relatively sound footing as compared to

the global economy. However, problems such as weak investment climate, very less
monsoon and tepid earning growth continued to plague the economy. The banking sector,
being the barometer of the economy is reflective of the weak macro-economic variables.

The slowdown in the economy & aggressive stance for quantitative credit
deployment strategy has affected credit growth. There was an overall sluggishness
observed throughout various various industries affecting the business of the borrowers
during the F.Y. 2015-16.

On the backdrop, the advances portfolio of your bank has increased by Rs.372.08
crore registering the growth rate of 14.29% as against average industry growth of 9.8%.
The Credit-Deposit ratio stood at 62.94% which was 62.43% at the beginning of the year.
This will help the bank to improve NIM [Net Interest Margin] in the coming years.

Priority is given by your bank for providing financial assistance to MSME sector
as the said sector is currently the backbone for enhancing the country’s economy. Bank
has also tied up with SIDBI, for availing subsidy under CLCSS [Credit Linked Capital
Subsidy Scheme], which is beneficial to all SSI registered units, wherein subsidy from
Government @15% on total cost of new machinery purchased, maximum to the tune of
Rs.15 lakh can be obtained. During the last financial year we have received total of
Rs144.65 lakh against 40 claims submitted by your bank. The various retail products of
the bank, viz. Home Loan, Vehicle Loan, Education Loan & also various schemes like
BPLN, BDLN, LRD were robustly marketed.

Educational loans are provided by the bank to students belonging to all economic
stratas pursuing higher education in India as well as abroad. Interest subsidy for pursuing
higher education in India is obtained from Government of India under CSIS Scheme for
loans upto Rs.10 lakh availed by students belonging to Economically Weaker Section.
During the last financial year approximately 350 students have received the interest

14
subsidy of Rs.19.04 lakh.

...…….with reference to 98th ANNUAL REPORT 2015-2016.

15
 LOAN AND CREDIT PRODUCTS OF BCCB

HOUSING LOAN :-

Who can borrow :-Individuals (single/joint).

Purpose :-Purchase of flat, construction of new houses bungalows

on ownership basis.

Limit :-Maximum limit Rs. 70.00 lacs.

Security :-Mortgage of Residential premises to be purchased.

Margin :-25% of Agreement value or Architects Estimate.

Rate of Interest :-8.95%.

Repayments :-180 months to 240 months [maximum].

Basic Documents :-1) KYC Documents of Borrowers and Guarantors.

2) Salaried: - Salary slips and form 16 along with

salary A/c statement for last 6 months.

3) Business: - Copies of IT returns for last 3 years along

with financial statements along with business A/C
statement for last 1 year.

4) Title deeds of property offered as security.

16
EDUCATION LOAN :-

Who can Borrow :-Students Along with Either of the Parent as co-borrower.

Purpose :-Pursuing higher education within India/Overseas.

Students should have secured admission for the Courses
opted for.

Limit :-For Studies within India

--- Maximum upto Rs. 10.00 lacs

For Studies Out of India

--- Maximum upto Rs.20.00 Lacs

[**Request for Higher Loan amount can be

considered on Case to Case Basis. ]

Security :-Equitable/Registered Mortgage of Immovable property

such as Flat /Shop/Industrial Gala /Land along with House
Pledge of Bank’s Term Deposits.

Margin :-25% of Education expenses or 25% of property

whichever is lower In case of Term Deposits the margin
shall be 15%.

Rate of Interest :-Upto Rs.5 Lacs ----- 9.00% p.a

Above Rs.5 Lacs ---- 10.00% p.a.

Repayment :- 60 months after completion of Course under taken for

which loan availed plus 6 months or Student securing Job
whichever is Earlier.

Basic Documents :-1)KYC Documents of Borrowers and Guarantors.

2) Income proof of the co-borrower/ family justifying

17
repayment capacity.

a> Salaried: Salary Slips & Form 16 along With

salary A/C statement for last six Months.

b> Business: Copies of IT returns for last 3 years

along with financial statements along with
business A/C statement for last 1 year.

3) Earlier Educational Qualification certificates of the

student.

4) Offer/ acceptance letter of the College/university where

admission is taken.

5) Title Deeds of the property offered as security.

18
VEHICLE LOAN :-

(For Personal Use)

Who can Borrow :-Individuals /Proprietary /Partnership Firms/LLP/ Pvt.

Limited Companies.

Purpose :-For Personal Use of Individual Borrower /Partner s/

Director of the Company.

Limit :-75% of the Total On road Cost.

Security :-Hypothecation of vehicle.

Margin :-25%

Rate Of Interest :-Upto 3 Years - 8.75 % p.a.

Above 3 Years - 8.90 % p.a.

Repayment :-60 Months

[In case of Hi-End Vehicles 84 Months Repayment

Period can be considered].

Basic Documents :-1)KYC Documents of Borrowers and Guarantors.

2) Salaried:- Salary slips and form 16 along with salary

A/C statement for last 6 months.

3) Business:- Copies of IT returns for last 3 years along

with Financial statements along with business A/C
statement for last 1 year.

4) Proforma Invocie/ Quotation Only from Authorised

Dealer of the Vehicle to be purchased.
19
 (For Commercial Use)

Who can Borrow :-Individuals /Proprietary /Partnership Firms/LLP/ Pvt.

Limited Companies.

Purpose :- For Business Purpose.

Limit :-75% of the Total On road Cost.

Security :-Hypothecation of vehicle.

Margin :-25%

Rate of Interest :-10.00%p.a.

Repayment :-36Months to 60 Months

[Incase of Heavy Vehicles Repayment period

upto 84 Months Shall be Considered].

Basic Documents :-1)KYC Documents of Borrowers and Guarantors.

2) Income proof of the Borrower justifying repay ment

capacity. Incase of Business ITR along with Financial
Statements for the last 3 years, Business Account
statement for the last one year.

3) Performa Invocie/ Quotation only from Auth orised

Dealer of the Vehicle to be purchased.

4)Copies of confirmed travel undertakings in Hand.

20
BUSINESS DEVELOPMENT LOAN :-

Who can Borrow :-Individuals/Proprietary concerns /firms/ companies

/Limited Liability Partnership.

As the scheme is only to cater to customers engaged in

business/profession/trade, people who are running their
own business/self employed/SSI registered
units/MSME, practicing Professionals/ Traders etc are
eligible.

Purpose :-For overcoming expenses incurred by borrowers engaged

in business/profession/trade for acquistion of commercial
premises[acquired on Pagdi/Lease basis], renovation &
repairs to be carried out at existing factory/commercial
premises from wherein conducted, Purchase of Raw
Material/Machinery/Equipment’s, Payment to Sundry
Creditors, Payment of Unsecured loans[as reflected in
audited balance sheet], take-over of credit facilities availed
for business purpose from other banks/FI/NBFC’s.

Limit :-Maximum Rs.500.00 Lacs.

Security :-Immovable Property such as flat/shop/Industrial Gala

/land along with House/Row house/Land along with factory
premises etc. having all requisite permissions from
competent authorities owned by the proprietor /firm
/partner /Co’s/ in personal capacity.

Margin :-40% [market value of the security offered].

Rate of Interest :-Upto 5 Years - 11.50% p.a.

Above 5 years to 7 Years - 11.50% p.a.

21
 Above 7 years to 10 Years - 11.50% p.a.

Repayment :-Maximum 120 months.

Basic Documents :-1)KYC Documents of Borrowers and Guarantors.

2) ITR Returns along with Financial statements for the

last 3 financial years of the Borrower / Partners/Directors
/Guarantors etc, Business Partners/Directors /Guarantors
etc, Business account statement for the last two years.

3) Title Deeds of the property offered as security.

4) Details of End use of the funds.

22
CASH CREDIT LIMIT :-

Who can Borrow :-Proprietorship concern/Partnership firm/ Limited Liability

Partnership/Private Limited company.

Purpose :-To meet Working Capital requirement.

Limit :-20 % of the Sales\Account turnover /Projected Sales

Turnover OR 75% of the Value of the property offered as
security whichever is low.

Prime Security :-Paid Stock & Bookdebts upto 90 days old only.

Collateral Security :-1)Immovable property such as Flat/Shop/ Industrial

Gala /Land along with House /Row House/Land along
with Factory premises etc.

2) Assignment of LIC policies/NSCs (having substantial

surrender value).

3) Pledge of our bank’s Term Deposit Receipts.

Margin :-For Stock-25%, For Bookdebts-40%

Rate of Interest :-11.50% p.a.

Repayment :-Annual review

Basic Documents :-1)KYC documents of the Firm, Co /proprietor/pa rtners/

directors, also in their personal capacity.

2) ITR along with Audited financial statements for last 3

years of the Borrower Firm/Co as well as
Proprietor/Partners/Directors for the last 3 years, along
with business account statement for the last 2 years.

3) Title Deeds of the property offered as Collateral

Security.
23
4) Surrender value statement of LIC policies to be
assigned /NSCs.

24
BPLN (BCCB PERSONAL LOAN) :-

Who can Borrow :-Permanent Salaried Employee, Engaged in Business, Self

Employed Professionals.

Purpose :-To meet personal expenses such as Medical/ Travel/

Marriage/ Purchase of Hi tech Electronic Gadgets,
Household appliances/Furniture.

Limit :-Minimum Loan to be sanctioned ----Above Rs.3 Lacs.

Maximum loan to sanctioned ----Upto Rs.5 lacs.

Collateral Security :-Security such as Pledge of our banks Term Dep

osits, NSC , Assignment of Surrender Value of LIC
policies , Simple Deposit of Title Deeds of owned
immovable property with noting of charge with competent
authorities.

Margin :-No Margin

Rate of Interest :-12.50% p.a.

Repayment :-Max.120 Months.

Basic Documents :-1)KYC Documents of Borrowers and Guarantors.

2) For Salaried Employee :

a. Salary slip for the last 3 months along with bank

statement wherein Salary is credited for last one
year.

b. Latest Form No.16.

3) For Business/Self Employed Professionals

a. IT Returns along with Financial statement for the

25
 last 3 Yrs.

b. Statement of business account for last1 year.

ORNAMENT LOAN :-

Eligibility :-Individual

Income :-Net salary of Rs.5000 and more

Repayment :-36 Months.

Rate of interest :-10%

Security :-Gold
26
 TABLE SHOWING TOTAL LOANS FROM THE YEAR 2015-2017

FINANCIAL YEAR AMOUNT OF LOAN

2014-15 36,74,57,789.9

2015-16 35,79,41,814.14

2016-17 37,40,62,849.68

GRAND TOTAL 1,09,94,62,453.72

ANALYSIS :-

From the above table it can be analysed that in the year 2014-2015 the total amount of
advances was 36.74 crores with a 33.42%, in 2015-2016 the total amount of advances was 35.79
crore 32.55% and in the year 2016-2017 the amount is 37.4 crores with 34.02%..

INTERPRETATION :-

From the above graph it can be inferred that in the year 2016-2017 showed the maximum
advances.
27
 AMOUNT SANCTIONED ON EACH LOAN PRODUCT

PARTICULARS 31.03.2015 31.03.2016 31.03.2017

SURETY SECURED LOAN 20,11,83,162.56 19,82,24,611.60 21,81,69,026.78

SURETYUNSECURED
LOAN 13,90,99,928.00 14,37,68,398.00 14,06,71,044.86

HYPOTHECATION LOAN 1,35,33,312.00 1,28,76,707.00 1,27,56,129.00

CASH CREDIT 34,18,627.54 2,02,055.54 6,99,590.04

BUSSINESS
DEVELOPMENT LOAN 60,28,343.80 53,571.00

ORNAMENT LOAN 41,94,416.00 28,70,042.00 17,13,488.00

28
INTERPRETATION :-

From the above charts we can figure out that surety secured loan which consists of
housing loan is doing good business for bank. Surety unsecured loan which consists of
personal loan is also showing steady growth in its business. while cash credit, business
development loan and ornament loan is showing decline in its business ,which is a bad
remark for the branch ofiice.

29
 ANALYSIS AND DATA INTERPRETATION

1) WHAT IS YOUR AGE ?

AGE NO. OF RESPONDENTS PERCENTAGE

18 – 25 3 10%

26 – 35 4 13%

36 – 50 12 40%

ABOVE 50 11 37%

TOTAL 30 100%

Out of the total customers interviewed, 40% respondents were between the age group of
36-50, 37% were above 50 and 13% were of the age group of26-35. The least 10% were
between 18-25.

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2) WHAT IS YOUR OCCUPATION ?

OCCUPATION NO. OF RESPONDENTS PERCENTAGE

SERVICE 17 56%

BUSINESS 9 30%

STUDENT 2 7%

OTHERS 2 7%

TOTAL 30 100%

The above pie diagram shows that 56% respondents are into service sector, 30% are into
business, 7% are students and remaining 7% fall under others. Others covers retired
people, farmers, unemployed people etc.

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3) SINCE FROM WHEN YOU ARE HAVING A/C IN BCCB BANK ?

YEARS NO. OF RESPONDENTS PERCENTAGE

LESS THAN 1 YEAR 0 0%

2 – 4 YEARS 1 3%

4 – 6 YEARS 2 7%

MORE THAN 6 YEARS 27 90%

TOTAL 30 100%

The majority of respondents are customers of BCCB for more than 6 years, 7% are
enjoying services of BCCB from 4-6 years.3% of respondents are just2-4 years old
account holders.

32
4) WHICH LOAN PRODUCT OF BCCB HAVE YOU USED ?

TYPE OF LOANS NO. OF LOANS USED PERCENTAGE

PERSONAL LOAN 11 28%

HOUSING LOAN 18 44%

VEHICLE LOAN 4 10%

EDUCATION LOAN 2 5%

BUSSINESS LOAN 5 13%

TOTAL 40 100%

Out of 30 respondents, some people had used multiple loans. Therefore the chart shows
that a total of 40 loan products were been used out of which 44% were Housing loans,
28% were BPLN, 13% were for Business, 5% for Education purpose and remaining 10%
were vehicle loans.

33
5) DO YOU FIND INTEREST RATES OF BCCB HIGH COMPARED TO OTHER
BANKS ?

YES/NO NO. OF RESPONDENTS PERCENTAGE

YES 10 33%

NO 20 67%

TOTAL 30 100%

YES
33%
NO
67%

The above chart reveals that 67% of respondents feel the interest rates of BCCB are not
high compared to other banks, whereas 33% feel the interest Rates are high.

34
6) DO YOU FIND THE LOAN PROCESS LENGTHY AND TIME CONSUMING ?

YES/NO NO. OF RESPONDENTS PERCENTAGE

YES 6 20%

NO 24 80%

TOTAL 30 100%

YES
20%
NO
80%

Out of total 30 people interviewed, majority of respondents (80%) feel that the loan
process is not lengthy and time consuming. Whereas 20% people feel the process lengthy
and time consuming.

35
7) BCCB SHOULD TRY TO CONTROL/REDUCE INTEREST RATES OF….?

TYPE OF LOANS NO. OF RESPONDENTS PERCENTAGE

PERSONAL LOAN 12 40%

HOUSING LOAN 6 20%

VEHICLE LOAN 0 0%

BUSINESS LOAN 2 7%

EDUCATION LOAN 10 33%

TOTAL 30 100%

HOUSING BUSINESS
20% 7%
EDUCATION
33%
PERSONAL
40%

In the survey while questioning the customers they were asked to give an opinion about
interest rates of which loan product should be controlled/ reduced. Majority of
respondents suggested Personal loan and Education Loan. None suggested vehicle loan.

36
8) IN FUTURE IF YOU WANT TO USE ANY LOAN PRODUCT WILL YOU
STICK TO BCCB OR SWITCH TO SOME OTHER BANK ?

WILL STICK TO BCCB NO. OF RESPONDENTS PERCENTAGE

YES 28 93%

NO 2 7%

TOTAL 30 100%

OTHER BANK
7%

BCCB BANK
93%

Out of 30 respondents 93% of customers prefer to continue using BCCB loan products.
Hardly 7% people are disappointed with BCCB. This shows that majority of customers
are satisfied with BCCB and are loyal to them.

37
9) HOW WOULD YOU RATE OVERALL SATISFACTION FOR LOANS &
CREDITS PROCEDURE WITH BCCB?

RATING NO. OF RESPONDENTS PERCENTAGE

POOR 0%

SATISFIED 3 10%

GOOD 4 13%

VERY GOOD 12 40%

EXCELLENT 11 37%

TOTAL 30 100%

SATISFIED
EXCELLENT 10% GOOD
37% 13%

VERY GOOD
40%

The above chart shows that 37% customers have rated BCCB Excellent, 40% Very Good,
13% Good and 10% Satisfied. No one has rated it Poor, which means that people are very
happy with the loans and credit facilities of BCCB.

38
 HYPOTHESIS TESTING

A.

H0 :- There is no significant difference between overall satisfaction rating of BCCB bank

given by customers who find the loan process lengthy & the customers who don’t find it
lengthy.

H1 :- There is significant difference between overall satisfaction rating of BCCB bank

given by customers who find the loan process lengthy & the customers who don’t find it
lengthy.

No. of People Overall satisfaction

Finds the loan process 6 (n1) 2.833 (u1)

lengthy

Do not find the loan 24 (n2) 4.33 (u2)

process lengthy

H0= u1=u2
H1=u1≠u2 = u1-u2>0

Overall ratings given by people to BCCB who find loan process are lengthy & who don’t
find it lengthy.

Yes 4 3 2 2 4 2
No 5 5 4 4 5 5 5 4 3 5 5 5 3 4 5 4 4 5 4 4 5 4 4 3

39
HERE,

1 POOR
2 SATISFIED
3 GOOD
VERY
4 GOOD
5 EXCELLENT

LENGTHY Average of overall Count of Length

PROCESS sati process
YES 2.833333333 6
NO 4.333333333 24
Grand Total 4.033333333 30

t-Test: Two-Sample Assuming Unequal

Variances

Variable 1 Variable 2
Mean 2.833333333 4.333333333
Variance 0.966666667 0.492753623
Observations 6 24
Hypothesized Mean Difference 0
Df 6
-
t Stat 3.519512478
P(T<=t) one-tail 0.006262978
t Critical one-tail 1.943180281
P(T<=t) two-tail 0.012525955
t Critical two-tail 2.446911851
Since tstat < tcritical
40
We accept H0 & reject H1

Therefore, there is no significant difference between overall satisfaction rating of BCCB

bank given by customers who find the loan process lengthy & the customers who don’t
find it lengthy.

B.EFFECT OF OCCUPATION ON OVERALL SATISFACTION.

H0 :-There is no impact of occupation on overall customer satisfaction rating.

H1 :-There is impact of occupation on overall customer satisfaction rating.

Occupation No. of people Overall satisfaction rating

Service 17(n1) 3.7058(u1)

Business 09(n2) 4.5556(u2)

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Occupation 1 2 4 2 1 3 3 2 1 1 4 2 2 2 2 1 1 1
Satisfaction Rating 5 5 4 4 4 5 5 5 3 4 3 5 5 5 3 4 5 2

No 19 20 21 22 23 24 25 26 27 28 29 30
Occupation 1 1 1 1 2 2 1 1 1 1 1 1
Satisfaction Rating 2 4 4 4 5 4 4 5 4 2 4 3

41
HERE,

SATISFACTION RATING
1 POOR
2 SATISFIED
3 GOOD
4 VERY GOOD
5 EXCELLENT

OCCUPATION
1 SERVICE
2 BUSINESS
3 STUDENT
4 OTHERS

Average of overall
Occupation satisfaction Count of Occupation
SERVICE 3.705882353 17
BUSINESS 4.555555556 9
STUDENT 5 2
OTHERS 3.5 2
Grand Total 4.033333333 30
42
Anova :- Single Factor

SUMMARY
Groups Count Sum Average Variance
Column 1 30 49 1.633333333 0.791954023
Column 2 30 121 4.033333333 0.929885057

ANOVA
Source of
Variation SS df MS F P-value F crit
2.905E-
Between Groups 86.4 1 86.4 100.3578104 14 4.006872886
Within Groups 49.93333333 58 0.86091954

Total 136.3333333 59

Since, probability value of F is more than 0.5 therefore we accept null hypothesis that
there is no impact of occupation on overall customer satisfaction ratings.
43
 FINDINGS

 BCCB has a self explanatory & systematic loans & credit procedure policy. The
loan procedures are comparatively simple.

 A survey study was conducted for BCCB customers and the data collected
indicates that Housing & Personal loans are most preferred products.

 The study (Balance Sheet) states that Housing & Personal loans are the most
preferred loans.

 Majority of customers rated very good & excellent for satisfaction level of loans
and credits at BCCB, Which highlights customers are happy with BCCB loans
and credit procedure.

 Majority of the respondents are customers of BCCB from more than 6 years. This
means they have long term relationship with BCCB.

Also hypothesis testing proved that,

 There is no significant difference between satisfaction rating for BCCB loan

products given by customers who find the loan process lengthy and the customers
who don’t find it lengthy.

 There is no impact of occupation on overall customer satisfaction rating.

44
 SUGGESTIONS

 The Balance sheet of F.Y 2016-17 highlights that majority of customers depend
on BCCB for Housing Loan. Thus, BCCB can try to strategically earn revenue
through Interest rates on Housing loan.

 Many young customers from this branch are willing for higher studies which also
includes to study in foreign country. Therefore BCCB should try to attract these
customers for Education loan & thereby earn Foreign Exchange.

 As per the survey conducted, customers of BCCB have suggested to reduce

Interest rates of Personal & Educational Loan.

 Since all the banks are providing loans with the same features. It is recommended
that BCCB should offer some unique features to its products to acquire strong
identity and can be easily distinguished.

 Very less people have used Vehicle loan. Therefore BCCB should take necessary
measures to promote Vehicle loan.

45
 LIMITATIONS

 The time constraint was one of the limitation.

 The customers interviewed were restricted to only 1 branch of BCCB.

 The sample size is relatively small.

46
 CONCLUSION

The study on BCCB Loans and Credits highlights that BCCB has a systematic
loans and credit policy. Many of the customers are satisfied and happy with the services
provided and thus this shows their long term association and loyalty towards the bank.
Despite the pressure of stiff competition and tighter monetary policies, the bank posted
good growth in deposits, loans, net profit and own funds. Professional management, loyal
and committed staff, trustworthy members and supportive customers and technological
up gradation are the inspiring ingredients contributing to the success of the bank.

47
 BIBLIOGRAPHY :-

BOOKS :-

 98TH ANNUAL REPORT.

 CREDIT POLICY OF 2017.

 BALANCESHEETS FROM 2014-2017.

WEBSITES :-

 WWW.BCCB.COM

 WWW.GOOGLE.COM

48
 APPENDIX

BASSEIN CATHOLIC CO-OP BANK LTD

(Questionnaire for Project Survey)

Name :- _______________________________________

1 . What is your Age?

o 18 – 25
o 26 – 35
o 36 – 50
o Above 50

2 . What is your Occupation?

o Service
o Business
o Student
o Others

3 . Since from when you are having A/C in BCCB?

o Less than 1 year

o 2 – 4 years
o 4 – 6 years
o More than 6 years

4 . Which Loan product of BCCB have you used?

o Personal Loan
o Housing Loan
o Vehicle Loan
o Education Loan
o Business Loan
49
5 . Do you find Interest rates of BCCB high compared to other banks?

o Yes
o No

6 . Did you find the loan process lengthy and time consuming?

o Yes
o No

7 . BCCB should try to control / reduce the interest rates of ……?

o Personal Loan
o Housing Loan
o Vehicle Loan
o Business Loan
o Education Loan

8 . In future if you want to use any loan product will you stick to BCCB or switch to
some other bank?

o I will use BCCB loan product

o I will use loan product of other bank

9 . How would you rate overall satisfaction for loans & credits procedure with bccb?

o Poor
o Satisfied
o Good
o Very good
o Excellent

SIGNATURE:-________________

THANK YOU
50