SUMMER TRAINING REPORT ON

ANALYSIS OF CUSTOMER SATISFACTION IN BANKING SECTOR

BACHELOR OF BUSINESS ADMINISTRATION

(2014-2017)

Submitted To: Submitted by:

CONTROLLER OF EXAMINATION FIZAN FIRDOUS

MAHARSHI DAYANAND UNIVERSITY ROLL NO..

ROHTAK

DEPARTMENT OF MANAGEMENT STUDIES

SRINAGAR SCHOOL OF MANAGEMENT AND TECHNOLOGY

GUDHRANA ,PALWA (HARYANA)

1
 CERTIFICATE BY THE GUIDE

Certified that this summer training report work is based on

an original study conducted by Ms. Fizan Firdous under

my guidance. She has attended the required guidance

Sessions. This report has not formed a basis for the award of

Any other Degree/diploma of any university or institution.

Place: Srinagar.

2
 Date:
CERTIFICATE

This is to certify that Ms Fizan Firdous bearing examination roll no

student of 5th Semester BBA of our college has prepared a summer Training report

titled A study on Analysis Of Customer satisfaction in Banking for J&K Bank Ltd.

In partial fulfillment of the requirement of BBA Degree course of Maharshi

Dayanand University for the Academic year 2014-2017.

Mr.Mudasir Ahmad Prof (Dr) N.A. SHah

Project Coordinator Director Business School
(Authorized Signatory) (Authorized signatory)

3
 DECLARATION

I hereby declare that this summer training report entitled Analysis of customer
satisfaction in banking for J&K Bank LTD. has been prepared by me during the year
2016 under the guidance of Mr. --------------------------------------------------------of J&K
bank and Mr.Mudasir Ahmad, project coordinator S.S.M.T COLLEGE, Gudhrana
Palwal (Haryana) .
I also hereby declare that this has not been submitted at any time to any other
university or institute for the award of any degree or diploma.

FIZAN FIRDOUS

Place: Srinagar

Date:

4
 ACKNOWLEDGMENT

It gives me great pleasure to extend my thanks and gratitude to those who have been
instrumental in completion of this report.

I would like to extend my sincere thanks to Mr.Mudasir Ahmad Project

Coordinator , Professor Dr. N.A shah Director Business School SSMT College ,
Gudhrana Palwal (Haryana) for their valuable suggestions and help extended to me
throughout the course.

I am highly thankful to for help and encouragement. I wish to

acknowledge my great debt to all of them whose ideas and contribution influenced me to
complete this project work. Besides these I would like to thank all the pioneers in the
field of financial management and allied fields, which shape my understanding through
their rich and valuable contribution in these fields.

Place:Srinagar
Date: FIZAN FIRDOUS

5
 TABLE OF CONTENTS
INDEX
CONTENTS
PAGE NO

6
1. CERTIFICATE 2

2. Acknowledgements 5

3. LIST OF ABBREVIATIONS 8

4. EXECUTIVE SUMMARY 9

5. Chapter 1:Profile of the 10-35

firm/company

INTRODUCTION 11

COMPANY PROFILE OF 14
THE ORGANISATION

EXPLAIN THE NATURE 16

OF THE
ORGANISATION & ITS
BUSINESS

MISSION & VISION 23

PRODUCT RANGE OF
THE COMPANY 24

SIZE OF 27
ORGANIZATION

MARKET SHARE & 28

POSITION OF THE
COMPANY IN THE
INDUSTRY

BOARD OF DIRECTORS 29

SOURCES OF DATA 32
COLECTION

6. Chapter 2:SWOT 34-36

Analysis of J&K BANK

7
7. Chapter 3:Analysis of 37-52
Financial Reports of the
company

PROFIT & LOSS 38

ACCOUNT

BALANCE SHEET 39

DATA ANALYSIS 40

8. Chapter 4:Lessons 54
learnt

DEPOSITS 55

CREDIT DISPENSATION 56

CONCLUSION 65

RECOMMENDATIONS 66

9. Body of the report 67

10. Bibliography 68

11. Appendices 69
TABLES
17.1 SHAREHOLDING PATTERN 28
17.2 PROFIT & LOSS ACCOUNT 39
17.3 BALANCE SHEET 40

GRAPHS
18.1 CUSTOMER RESPONSE 41

LIST OF ABBREVIATIONS

8
S.No Abbreviated Full Name
. Name
1 CRM Customer Relationship

Management
2 EPS Earning Per Share
3 CS Customer Satisfaction
4 Int Introduction
5 DA Data Analysis
6 R/B Reference & Bibliography
7 MRK Marketing
8 TC Table of Content
9 J&K B Jammu & Kashmir Bank

9
10
 CHAPTER -1
PROFILE OF THE COMPANY

11
 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.

12
 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
banksand 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.

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5. Exchange control.

6. Custodian to foreign exchange and gold reserves.

7. Development activities.

8. Research and development in the banking sector.

14
 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.

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

15
banks could not ameliorate the financial and social position of the people of the state. To

overcome 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 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:

16
 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 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

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Technology application has remained the thrust area of the Bank for last many years with an

objective to offer state of the art world class Banking facilities to its customers. The Bank

continued to leverage information technology as a strategic tool for its business operations, to

gain competitive edge in customer service as well as improving productivity and efficiency. The

Banks IT strategy emphasizes enhanced level of customer services through 24x7 availability,

multi-channel Banking and cost efficiency through optimal use of electronic channels, wider

market reach and opportunities for cross-selling. The Banks focus is on harnessing technology

for integrating diverse products and services. Keeping this in view, the Bank continued to widen

the scope of multiple delivery channels such as ATM installations, Anywhere Banking, Internet

Banking and SMS Banking at more & more 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

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.

18
 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 Bill Desk, for extending

ecommerce facility to the e-banking customers.

The facility shall be available to only such e-banking users, which have been enabled by the

Bank for Bill Payment facility.

E-banking 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 e-banking as the mode of payment.

Select the J & K Bank and the system will take the user to the J & K Banks e-banking site

prompting him to enter his e-banking user-id and password.

After entering the Banks e-banking site the customer will be able to pay the amount of bill by

debit to its own account.

19
 M/S Bill Desk - 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 E-banking 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 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

20
 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.

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:

Connect to the Internet and shop online using your J&K Bank Credit Card.

21
 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?

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.

22
 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
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.

23
 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

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 group customers at more

than 600 locations through its bank partners and company-owned offices. MetLife has more than

24
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.

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

25
 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

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 company-owned offices. MetLife has more than

26
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.

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.

27
 Facilities

Anywhere banking facility.

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 financial supermarket addressing all

the financial needs of the customers thus helping the bank retain the customers within its fold.

28
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.

29
 1.7 :Market share & Position of the company in the industry

17.1:Sharehoding pattern as on june 2016 vis a-vis may 2015

SR. PARTICULA NO OF % TO NO OF % TO
NO RS SHARE CAPIT SHARE CAPITAL
S HELD AL S HELD
AS ON AS ON
JUNE MAY
2016 2015
1 GOVERNM 257752 53.17 257752 53.17
ENT OF 660 60
J&K
2 INDIAN 345303 7.12 244150 5.04
MUTUAL 95 16
FUNDS
3 INSURANC 153746 3.17 141663 2.92
E 94 98
COMPANIE
S
4 BANKS 225526 0.05 111039 0.02
5 NON 425150 0.88 315238 0.65
RESIDENT 5 1
INDIANS
6 FOREIGN 289897 5.98 113295 23.37
INSTITUTI 39 468
ONAL
INVESTOR
S
7 FOREIGN 448834 9.26 415335 0.86
PORTFOLI 93 6
O
INVESTOR
S
8 BODIES 272741 5.63 107464 2.22
CORPORAT 71 54
ES
9 RESIDENT 707485 14.59 564462 11.64
INDIVIDUA 43 83
LS
10 FOREIGN 600 0.00 538965 0.11
NATIONAL
S
11 CLEARING 746694 0.15 0 0.00
MEMBERS
TOTAL 484778 100.0 484778 100.00
020 0 020

30
 1.8. BOARD OF DIRECTORS:

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.

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

31
 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,

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 from Post-Graduate Department of Economics, University of

Kashmir.

32
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.

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; 1994-1998 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 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

33
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.

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:

34
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.

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.
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.

35
36
 CHAPTER 2
SWOT ANALYSIS OF THE COMPANY

37
 S.W.O.T ANALYSIS OF J&K BANK
STRENGTH

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.

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.

38
 THREATS

Existing competitors.

Attitude of concerned body towards Pvt. Bank.

Foreign players.

39
 CHAPTER 3

ANALYSIS OF FINANCIAL REPORTS OF THE

COMPANY

40
 ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

17.2:PROFIT AND LOSS ACCOUNT

AMOUNT AMOUNT
PARTICULARS
Year Ended Year Ended 31.03.2015
31.03.2016
1.INCOME
Interest 6843.57 7,061.13
Earned 504.03 593.97
Other Income
TOTAL 7,347.60 7,655.10

2.EXPENDITURE
Interest 4,133.48 4,410.22
Expended 1,546.21 1,409.05
Operating 1,251.88 1,327.23
Expenses
Provision &
contingencies

TOTAL 6,931.57 7,146.50

3.NET PROFIT FOR 416.03 508.60

THE YEAR
TOTAL 7347.6 7655.1

4.APPROPRIATION
S 313.92 386.44
Transfer to 0.00 0.01
Statutory 102.11 122.15
Reserves
Transfer to
other Reserves
Proposed
Dividend/Transfer
To Govt
TOTAL 416.03 508.60

41
 17.3:BALANCE SHEET

42
 PARTICULARS AMOUNT AMOUNT
AS at AS at 31.03.2015
31.03.2016

CAPITAL AND
LIABILITIES 48.49 48.49
Capital 6,375.48 6,061.56
Reserve & 69,390.25 65,756.19
surplus 2,240.00 2,339.67
Deposits 2,213.84 1,879.54
Borrowings
Other liabilities
and provisions

TOTAL 80,268.06 76,085.45

ASSETS
Cash & 3126.74 2373.06
Balance with RBI 76.27 1360.71
Balance with
bank & money at 50193.29 44585.82
Call 20353.62 25124.30
Advances 705.12 654.75
Investments 58.60 34.16
Gross Block 5754.44 1,952.66
Capital work in
progress
Other Assets

TOTAL 80,268.08 76,085.46

DATA ANALYSIS

18.1:CUSTOMERS RESPONCE

1. Are you aware that the J&K Bank is having ATM Centers?

Yes-----------------------------------------------75%

No-------------------------------------------------25%

43
 Fig.3.1

INTERPRETATION

1. 75% of the Customers are aware of the J&K Banks ATM centers.

44
2. 25% of the Customers are not aware of the J&K Banks ATM centers.2. Credit Card owned

Yes-----------------------------------------------40%

No-------------------------------------------------60%

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.

45
3. Are you intending to take loans for financing your Assets?

Yes-----------------------------------------------67%

No-------------------------------------------------33%

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.

46
4. Do you have a Demat account?

Yes-----------------------------------------------46%

No-------------------------------------------------54%

Fig. 3.4:

INTERPRETATION

1. 46% of the Customers have Demat account.

2. 54% of the Customers dont have Demat account.

47
5. A Convenient Branch to get to

Yes-----------------------------------------------75%

No-------------------------------------------------25%

Fig. 3.5:

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.

48
6. Branch Hours are convenient

Excellent-----------------------------------------------25%

Good----------------------------------------------------47%

Satisfactory---------------------------------------------20%

Poor------------------------------------------------------8%

Fig 3.6:

INTERPRETATION

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%

49
 Poor------------------------------------------------------3%

Fig. 3.7

INTERPRETATION

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%

50
 Fig. 3.8

INTERPRETATION

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%

51
 Fig. 3.9

INTERPRETATION

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

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.

52
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.

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.

53
12. The staff is well informed about the banks product and services

Excellent-----------------------------------------------25%

Good----------------------------------------------------47%

Satisfactory---------------------------------------------20%

Poor------------------------------------------------------8%

Fig 3.12:

INTERPRETATION

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%

54
 Fig 3.13

INTERPRETATION

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:

55
INTERPRETATION

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

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.

56
 CHAPTER-4
LESSONS LEARNT

57
 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 Crore 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.8 7 crore against the size of Rs.75 crores at 11.75% p.a. with a tenure of 63 months.

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.

58
 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 Crore in 1949 and less than 100 Crore 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 Crore to Rs.1046.35 Crore. 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 Crore as on

March 31st, 1997 against the Rs.2895.18 Crore as on 31.03.1996. The deposit base of the Bank

touched new high at 11,168 crore at the end of financial year 2008-09. The average deposits per

branch work out to Rs.30.15 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.

59
 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 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

60
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 .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.

61
 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 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.

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

62
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 2015.

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 cross-selling.

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 /offices brought under computerization programme has increased to

more than 500 at the end of March 2016 against 423 branches of 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

63
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 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.

64
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.

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 Rs.5450 crore.

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 Under Secretary Finance, Philippines, at a glittering

Gala Dinner award function held at Manila, Philippines on June 17, 2011.

65
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.

66
 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. 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

67
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 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 lakh

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

68
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, 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.

69
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.

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.

70
 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

Bibliography

Appendices

71
 BIBLIOGRAPHY

BOOKS:

The History of Banks- by Richard Hildreath

The Multilateral Development Banks - by Diana Tussie

WEBSITES:

WWW.JKBANK.NET

WWW.NSEINDIA.COM

PNBINDIA.COM

WWW.BANKSPOWER.COM

72
 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: ___RANI________

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

4. The Branch layout is spacious and uncluttered.

EXCELLENT

GOOD

SATISFACTORY

POOR

73
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

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

74
 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: _________________

Name: _________________

75