Preface The Indian banking industry is passing through an exciting growth phase.

The surge in the real economy, which has grown at over 8% in the past three fiscals, has provided significant growth opportunities for the sector. The rising personal incomes of the population have provided banks numerous opportunities for product development and distribution innovations. India has a robust banking structure characterized by three major bank groups, viz., Public Sector Banks, Private Sector Banks and Foreign Banks, and a large network of branches. Basic objective of any business is to maximize profit. Energy industrial or service oriented operation runs itself for the accomplishment of smooth return with least expenditure. For this purpose in this highly competitive world it becomes very important for the product or services to sell it with fighting the existing conditions. Today companies work is a war zone of rapidly changing competition technological advancements and other policies which keeps on changing by the regulatory authorities, so to run business successfully and profitably it is essential that company must keep re-examining their strategies through continuous market studies. A questionnaire was carefully prepared and thereafter an extensive survey was conducted. Data and results obtained from this survey has been carefully analyzed and incorporated in this report suggestions based on this survey.

INTRODUCTION Consumer behavior is very complex phenomenon, which is considered primarily in marketing decisions. It has been rightly said "Understand, you do not understand, you will not understand, you cannot understand all your customers but still you have to do your best to understand them."

Consumer Behavior: Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires Consumer behavior is the study of when, why, how, and where people do or do not buy products. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer.

Information search Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. Sources of information include:

Personal sources Commercial sources Public sources Personal experience

The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world' The selective perception process Stage Description - Selective exposure consumers select which promotional messages they will expose themselves to. - Selective attention consumers select which promotional messages they will pay attention to - Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences - Selective retention consumers remember messages that are more meaningful or important to them

Information evaluation At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration. Postpurchase evaluation It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after

having made a purchase, the customer should be encouraged that he or she has made the right decision.it is not effected by advertisement. Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. consumer behaviour concern with consumer need consumer actions in the direction of satisfing needs leads to his behaviour behaviour of every individuals depend on thinking process External influences Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors.

MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOR

Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural social, personal, and psychological factors. For the most part, they are non controllable by the marketer but must be taken in to account. We want to examine the influence of each factor on a buyers behavior.

Cultural Factors In a diversified country like India cultural factors exert the broadest and deepest influence on consumer behavior; we will look at the role played by the buyers culture, subculture, and social class. Culture: Culture is the most fundamental determinant of a persons wants and behavior. Whereas lower creatures are governed by instinct, human behavior is largely learned. The child growing up in a society leans a basic set of values, perceptions, preferences and behaviors through a process of socialization involving the family and other key institution .Thus a child growing up in America is exposed to the following values: Achievement and success, activity , efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness. Subculture: Each culture contain smaller group of subculture that provide more specific identification and socialization for its members. Four types of subculture can be distinguished .Nationality groups such as the Irish, polish, Italians, and Puerto

Ricans are found with in large communities and exhibits distinct ethnic tastes and Jews represent subculture with specific culture preference and taboos. Social Class: Virtually all human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the member of different caste are reared for certain roles and cannot change their caste membership .More frequently, stratification takes the form of social classes . Social Classes have several characteristics. First, Person with in each social class tend to behave more alike than persons from two different social classes. Second, persons are perceived as occupying inferior or superior positions according to their social class. Third, a persons social class is indicated by a number of variables, such as occupation, income, wealth, education , and value orientation, rather than by any single variable , fourth, individuals are able to move from one social class to another up or down during their lifetime. The Extent of this mobility varies according to the rigidity of social stratification a given society. Social Factors: A consumers behavior is also influenced by social factors, such as the consumers reference group, family, and social roles and statuses. Reference Group : A persons behavior is strongly influenced by many group .A persons reference group are those groups that have a direct (face to face) or indirect influence on the persons attitudes or behavior. Group having a direct influence on a person are called membership group. These are group to which the person belongs and interacts. Some are primary groups. With which there is fairly continuous interaction, such as family, friends, neighbors, and co-workers. Primary group tend to be informal. The person also belong to secondary group, which tend

to be more formal and where there is less continuous interaction: they include religious organizations, professional associations, and trade unions. Family Group: Members of the buyers family can exercise a strong influence on the buyers behavior. we can distinguish between two families in the buyers life . The family of orientation consists of ones parents. From parents a persons acquires an orientation towards religious, politics, and economics and a sense of personal ambitions, self worth, and love. Even if the buyer no longer interacts very much with his or her parents, the parents influence on the unconscious behavior of the buyer can be significant. In countries where parents continue to live with their children, their influence can be substantial. In case of expensive products and services, husband and wives engage in more joint decision making. The market needs to determine which member normally has the greater influence in the purchase of a particular products or services. either the husband or the wife , or they have equal influence . The following products and services fall under such: Husband dominant: life insurance, automobiles, television Wife dominant: washing machines, carpeting, non living room furniture, kitchenware Equal: Living room furniture, vacation, Housing, outside entertainment. How to succeed: Companies like Nokia, Reebok, Coke, PepsiCo and major automobile giants like Toyota, Suzuki, Ford, Chevrolet, Mercedes etc.. has made a market for themselves in India. How did they establish their own individual market in a country like India

which is prone to diverse cultures? Lets take the example of Ford. Before establishing their base in India, they engaged in a lot of researches. Their researches were made on the Indian peoples social life, personal tastes and preferences, way of life, how they identify an effective product and what makes them get attracted towards a product. The social and economic conditions were analyzed. The general economy of India was also researched on. They had modified their product to suit the Indian conditions. Their technology had to be adjusted and suited to such an extent that their car is adaptable to Indian conditions. Indians are generally prone to be rough and tough customers and especially taking into account the road conditions and other social factors they designed the product in such a way that its best suited to the conditions and its received by the target customers. Today Ford is enjoying a huge market in India. If an automobile company from a different country can make wonders why cannot our own manufacturers adapt to these techniques. A customers want has to be identified and his expectations must be matched with the other economic and social factors so that their product is receptive. This can be related to any product. Reebok today is enjoying a huge market in India even though they have hired a company which is phoenix to manufacture shoes and operate under Reebok. How did they achieve this? Adapting to social conditions play the most important role in establishing your brand in the market. This also means that customers are open to new and different products from time to time. Its just that they want the product to be flexible and adaptable to their needs and preferences. People are changing from time to time, so do their tastes

and preferences. Identifying those is the first step towards achieving success and the rest depends on the performance of the product.

INTRODUCTION OF BANKING
The world of banking has assumed a new dimension at dawn of the 21st century with the advent of tech banking, thereby lending the industry a stamp of universality. In general, banking may be classified as retail and corporate banking. Retail banking, which is designed to meet the requirement of individual customers and encourage their savings, includes payment of utility bills, consumer loans, credit cards, checking account and the like. Corporate banking, on the other hand, caters to the need of corporate customers like bills discounting, opening letters of credit, managing cash, etc. Metamorphic changes took place in the Indian financial system during the eighties and nineties consequent upon deregulation and liberalization of economic policies of the government. India began shaping up its economy and earmarked ambitious plan for economic growth. Consequently, a sea change in money and capital markets took place. Application of marketing concept in the banking sector was introduced to enhance the customer satisfaction the policy of privatization of banking services aims at encouraging the competition in banking sector and introduction of financial services. Consequently, services such as Demat, Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to the needs of public. An important agenda for every banker today is greater operational efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious: customer delight. The introduction to the marketing concept to banking sectors can be traced back to American Banking Association Conference of 1958. Banks marketing can be defined as the part of management activity, which seems to direct the flow of

banking services profitability to the customers. The marketing concept basically requires that there should be thorough understanding of customer need and to learn about market it operates in. Further the market is segmented so as to understand the requirement of the customer at a profit to the banks.

DEFINITION OF BANK The Oxford dictionary defines the Bank as An establishment for the custody of money, which it pays out, on a customers order. According to Whitehead A Bank is defined as an institution which collects surplus funds from the public, safeguards them, and makes them available to the true owner when required and also lends sums be their true owners to those who are in need of funds and can provide security. Banking Company in India has been defined in the Banking Companies act 1949, One which transacts the business of banking which means the accepting, for the purpose of lending or investment of the deposits of money from the public, repayable on demand, or otherwise and withdraw able be cheque, draft, order or otherwise. The banking system is an integral subsystem of the financial system. It represents an important channel of collecting small savings form the households and lending it to the corporate sector. The Indian banking system has Reserve Bank of India

(RBI) as the apex body for all matters relating to the banking system. It is the central Bank of India. It is also known as the Banker To All Other Banks. EVOLUTION OF INDIAN BANKING Ancient banking system of India constituted of indigenous bankers. They have been carrying on their age-old banking operations in different parts of the country under different names. The modern age of banking constitutes the fundamental basis of economic growth. The term Bank is being used since long time but there is no clear conception regarding its beginning. According to the viewpoint, in good old days. Italian money leaders were known asB anchi because they kept a special type of table to transact their business. IMPORTANCE OF BANKS Today banks have become a part and parcel of Kotak Bank's life. There was a time when dwellers of the city alone could enjoy their services. Now banks offer access to even a common man and their activities extend to areas hitherto untouched. Banks cater to the needs of agriculturalists, industrialists, traders and to all the other sections of the society. In modern age, the banking constitutes the fundamental basis of economic growth. Thus, they accelerate the economic growth of a country and steer the wheels of the economy towards its goals of self reliance in all fields. It naturally arouses Kotak Bank's interest in knowing more about the Bank and the various men and the activities connected with it.

2. INDIAN BANKING SYSTEM "The success of the economic reforms is therefore all to see and the driving force of these reforms is the banking sector". P. Chidam Baram Union Finance Minister P. Chidambaram strongly believes that the country's banking sector has been one of the driving forces in the process of economic reforms. Banking system occupies an important place a nation's economy. A banking institution is indispensable in a modern society. In plays a pivotal role in the economic development of a country. Thus, economic development of a country depends upon success of banking industry and success of banking Industry is determined to a large extent by now well then needs of its customers have been understood and satisfied. Reserve Bank of India The Banking system is an integral sub-system of the financial system. It represents an important channel of collecting small savings from the households and lending it to the corporate sector. The Indian banking system has The Reserve Bank of India (RBI) as the apex body from all matters relating to the banking system. It is the Central Bank of India and act as the banker to all other banks.

Functions of RBI:

 Currency issuing authority Banker to the government. Banker to other Bank. Framing of monetary policy. Exchange control. Custodian to foreign exchange and gold reserves. Development activities. Research and development in the banking sector. Organizational Structure of Banks in India: In India banks are classified in various categories according to differ rent criteria. The following charts indicate the banking structure:

Reserve Bank of India

Commercial Banks

Co-operative Banks Short-term credit

Development Banks

Nationalized

Private

Long-term credit

Agricultural Credit

Urban Credit

EXIM

Industrial

Agricultural

CLASSIFICATION OF BANKS On the basis of Ownership PUBLIC SECTOR BANKS

Nationalised banks or public banks dominate banking System in India. The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalisation was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Before 1969, State Bank of India (SBI) was the only public sector bank in India. Despite the entry of many new domestic and foreign private banks since liberalization, public sector banks continue to dominate the commercial banking industry. PRIVATE SECTOR BANKS Private sector banking in India received a flip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalisation of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive. India has a better banking system in place of other developing countries.

CO-OPERATIVE BANKS These are those banks that are jointly run by a group of individuals. Each individual has an equal share in these banks. Its shareholders manage the affairs of the bank.

2.1) According to Function COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banks make loans for short to business and in the process create money. Credit creation is the main function of these banks. FOREIGN BANKS These are those banks that are incorporated by foreign company. They have set up their branches in India. These banks have their head offices in foreign countries. Their principle function is to make credit arrangement or the export and the import of the country and these banks deals in foreign exchange. INDUSTRIAL BANKS Industrial banks are those banks that offer long term and medium term loan to the industries and also work for their development. These banks help industries in sale of their shares, debentures and bonds. They give loan to the industries for the purchase of land and machinery. AGRICULTURAL BANKS Agricultural banks are those banks that give credit to agricultural sector of the economy. SAVING BANKS The principle function of these banks is to collect small savings across the country and put them to the productive use. In India department of post office functions a savings banks.

CENTRAL BANK Central Bank is the apex bank of the banking system of the country. It issues currency notes and acts a banker's bank. Economic stability is the principle function of this bank. In short, it regulates and controls the banking system of the country. RBI is the Central Bank of India. STRUCTURE OF BANKING SYSTEM Different countries of the world have different types of banking systems. However, commercial banking had grown under all these banking systems. To understand the structure of banking system, let us take up various types of banking systems one by one. These types are: (1) UNIT BANKING Unit Banking originated in the United State of America. It grew in the United States of America. An independent unit bank is a corporation that operates one office and that is not related to other banks through either ownership or control. (2) BRANCH BANKING: This the most popular and important banking system. In branch banking, a bank has a large network of branches scattered all over the country. Branch banking developed in England. Subsequently most of the countries of the world adopted the system. In terms of branches, the State Bank of India has emerged as one of the largest banks in the world. Under the system branches can operate without keeping large idle cash reserves. Branch Banking tends to bring

homogeneity in the prevailing Interest Rates. The choice of securities and investments is larger. With the growth of large scale business it is no wonder that the trend is almost every country towards the branch banking i.e. big banks with a network of branches all over the country. The Bank of America has now more than 500 branches in the state of California itself. (3) CHAIN BANKING: Under the system there is pooling of resources. Chain banking overcomes certain limitations of unit banking. But the system suffers from certain limitations of its own. There may be a lack of co-ordination, proper control etc. The system is inflexible. (4) GROUP BANKING: It is similar to Chain Banking, the difference being that under Group Banking two or more banks are brought under the control of the same management through a Holding Company. Both the systems aim at gaining the advantages of large scale operations. The banks are able to pool their resources in case of emergency or when large amount of cash is required to meet the loan requirements of the customer.

(5) CORRESPONDENT BANKING: Under Correspondent banking, small banks serving local communities hold deposits with joint banks serving in big cities. This kind of banking is prevalent in

U.S.A. The correspondent banks perform two important services of outstation cheque clearing and loan participation for the respondent banks while they benefit for the deposit funds of respondent banks.

 PRIMARY FUNCTIONS: 1) Accepting of Deposits: A bank accepts deposits from the public. People can deposit their cash balances in either of the following accounts to their convenience:-

a.

Fixed or Time Deposit Account: Cash is deposited in this account for a fixed period. The depositor gets receipts for the amount deposited. It is called Fixed Deposit Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of interest and the period of deposit. This receipt is not transferable. If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same after paying the discount to the bank. Savings Account: This type of deposit suits to those who just want to keep their small savings in a bank and might need to withdraw them occasionally. Banks provide a certain rate of interest on the minimum balance kept by the depositor during the month. Current Account: This type of account is kept by the businessman who are required to withdraw money every new and then. Banks do not pay any interest on this account. Any sum or any number of withdrawals can be presented by such an account holder.

b.

c.

2) Advancing of Loans: The bank advances money in any one of the following ways. Overdraft Facilities: Customers of good trading are allowed to overdraw from their current account. But they have to pay interest on extra amount they have withdrawn. Overdrafts are allowed to provide temporary

a.

accommodation since the extra amount withdrawn is payable within a short period. b.
c.

Money at Call: It is the money lent for a very short period varying from 1 to 14 days. Such advances are usually made to other banks and financial institutions only. Money at call ensures liquidity. In the Interbank market it enables bank to make adjustment according to their liquidity requirements. Loans: Loans are granted by the banks on securities which can be easily disposed off in the market. When the bank has satisfied itself regarding the soundness of the party, a loan is advanced. Cash Credit: The Debtor is allowed to withdraw a certain amount on a given security. The debtor withdraws the amount within this limit, interest is charged by the bank on the amount actually withdrawn. Discounting Bill of Exchange: It is another method of making advances by the banks. Under this method, bank give advance to their clients on the basis of their bills of exchange before the maturity of such bills. Investment in Government Securities: Purchasing of government securities by the banks tantamount to advancing loans by them to the Government. Banks prefer to buy government securities as these are considered to be the safest investment. For example : Indira Vikas Patra : It enables the banks to meet requirement of statutory liquidity ratio (SLR)

d.

e.

f.

g.

3) Credit Creation: One of the main functions of banks these days is to create credit. Banks create credit by giving more loans than their cash reserves. Banks are able to create credit because the demand deposits i.e. a claim against the bank is accepted by the public in settlement of their debts. In this process the bank creates money. For this reason Prof. Sayers has called bank the manufactures of money. 4) Cheque system of Payment of Funds :A cheque, a negotiable instrument, which in fact is a bill of exchange, drawn upon a banker, is the most popular credit instrument used by the client to make payments. Cheque system is the main credit instrument in the banking world. Although a cheque is not a legal tender money, they serves as a medium of exchange in a limited way as it is a negotiable instrument.

SECONDARY FUNCTIONS: Besides the above primary functions, banks also perform many secondary functions such as agency functions, general utility and social functions. A) Agency Functions

Banks act as agents to their customers in different ways :i) Collection and Payment of Credit and Other Instruments: The Commercial banks collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On behalf of their customers and also make payments of income tax, fees, insurance premium etc. on behalf of the customers

ii) Purchase and Sale of Securities : The modern commercial banks also undertake the purchase and sale of various securities like shares, stocks, bonds units and debentures etc. On behalf of the customers, banks do not give any advice regarding the suitability or otherwise of a security but simply perform the functions of a broker. iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their customers on their advice. Sometimes banks also undertake income tax services on behalf of the customers. iv) Remittance of Funds : The Commercial banks remit funds on behalf of clients from one place to another through cheques, drafts, mail transfers etc. v) Representation and Correspondence : Sometimes commercial banks acts as representatives or correspondents of the clients especially in handling various applications. For instance, passports and travel tickets, booking of vehicles, plots etc. vi) Billion Trading : In many countries, the commercial banks trade is billions like gold and silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and Allahabad Bank have been allowed import of gold which has been put under open general licensed category. vii) Purchase and Sale of Foreign Exchange : Banks buy and sell foreign exchange, promoting international trade. This function is mainly discharged by foreign Exchange Banks.

viii) Letter of References : Banks also give information about economic position of their customers to domestic and foreign traders and vice versa

B) GENERAL UTILITY SERVICES In addition to agency services, banks render many more utility services to the public. These services are :i)Locker Facilities : Banks provide locker facilities to their customers. People can keep their valuables or important documents in these lockers. Their annual rent is very nominal ii) Issuing letters of credit : Bankers in a way by issuing letters of credit certify the credit worthiness of the customers. Letters of credit are very popular in foreign trade. iii) Acting as Underwriters : Banks also underwrite the securities issued by the Government and Corporate bodies for a commission. The name of bank as an underwriter encouraged investors to have faith in the security. iv) Help in Transportation of Goods: Big businessmen or industrialists after consigning goods to their retailers send the Railway Receipt (Consignment Note) to the bank.

v) Issuing of gift cheques: Certain banks issue gift cheques of various denominations, e.g. Some Indian banks issue gift cheques f the denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge. vi) Dealing in Foreign Exchange: Major branches of commercial banks also transact business of foreign exchange. Commercial banks are the main authorized dealers of foreign exchange in India. vii) Merchant banking Services: Commercial banks also render merchant banking services to the customers. They help in availing loans from non-banking financial institutions. Public Sector Banks Reserve Bank of India - Central Bank Bank of India Dena Bank IDBI Bank Indian Bank Oriental Bank of Commerce Punjab National Bank United Bank of India Allahabad Bank Andhra Bank Bank of Baroda

 Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Indian Overseas Bank Syndicate Bank Union Bank of India Vijaya Bank Punjab & Sind Bank

Private Banks Axis Bank Bank of Rajasthan Catholic Syrian Bank City Union Bank Dhanalakshmi Bank Federal Bank Jammu & Kashmir Bank Tamil Nadu Mercantile Bank Yes Bank ICICI Bank HDFC Bank PB BANK

 HSBC BANK ABN AMRO DEUTSCHE BANK

The Chief Objectives of this study are: 1. To find the bank sector that is largely availed by the customer. 2. To study the factors the factors influencing the choice of a bank for availing services. 3. To study about the factors that affects the customer overall perception towards public sector and private sector bank. 4. To find and compare the satisfaction level of customers in public sector banks. 5. To study the problem faced by customer. 6. To get suggestions for improvement or change in the services of public sector banks. 7. To study what do people expect in the new era of banking 8. To study whether the customers are satisfied with their service 9. To know about the Customer preferences 10.To give Suggestions to improve the services

AGRICULTURE FINANCE
IN INDIA

INTRODUCTION

Finance in agriculture is as important as development of technologies. Technical inputs can be purchased and used by farmer only if he has money (funds). But his own money is always inadequate and he needs outside finance or credit. Professional money lenders were the only source of credit to agriculture till 1935. They use to charge unduly high rates of interest and follow serious practices while giving loans and recovering them. As a result, farmers were heavily burdened with debts and many of them perpetuated debts. There were widespread discontents among farmers against these practices and there were instances of riots also.

With the passing of Reserve Bank of India Act 1934, District Central Co-op. Banks Act and Land Development Banks Act, agricultural credit received impetons and there were improvements in agricultural credit. A powerful alternative agency came into being. Large-scale credit became available with reasonable rates of interest at easy terms, both in terms of granting loans and recovery of them. Although the co-operative banks started financing agriculture with their establishments in 1930s real impetons was received only after Independence when suitable legislation were passed and policies were formulated. There after, bank credit to agriculture made phenomenal progress by opening branches in rural areas and attracting deposits.

Till 14 major commercial banks were nationalized in 1969, co-operative banks were the main institutional agencies providing finance to agriculture. After

nationalization, it was made mandatory for these banks to provide finance to agriculture as a priority sector. These banks undertook special programs of branch expansion and created a network of banking services throughout the country and started financing agriculture on large scale. Thus agriculture credit acquired multiagency dimension. Development and adoption of new technologies and availability of finance go hand in hand. In bringing "Green Revolution", "White Revolution" and now "Yellow Revolution" finance has played a crucial role. Now the agriculture credit, through multi agency approach has come to stay.

The procedures and amount of loans for various purposes have been standardized. Among the various purposes "Crop loans" (Short-term loan) has the major share. In addition, farmers get loans for purchase of electric motor with pump, tractor and other machinery, digging wells or boring wells, installation of pipe lines, drip irrigation, planting fruit orchards, purchase of dairy animals and feeds/fodder for them, poultry, sheep/goat keeping and for many other allied enterprises.

AGRICULTURE GROWTH RATE IN INDIA

Agriculture Growth Rate in India GDP had been growing earlier but in the last few years it is constantly declining. Still, the Growth Rate of Agriculture in India GDP in the share of the country's GDP remains the biggest economic sector in the country. India GDP means the total value of all the services and goods that are produced within the territory of the nation within the specified time period. The country has the GDP of around US$ 1.09 trillion in 2007 and this makes the Indian economy the twelfth biggest in the whole world. The growth rate of India GDP is 9.4% in 2006- 2007. The agricultural sector has always been an important contributor to the India GDP. This is due to the fact that the country is mainly based on the agriculture sector and employs around 60% of the total workforce in India. The agricultural sector contributed around 18.6% to India GDP in 2005.

Agriculture Growth Rate in India GDP in spite of its decline in the share of the country's GDP plays a very important role in the all round economic and social development of the country. The Growth Rate of the Agriculture Sector in India GDP grew after independence for the government of India placed special emphasis on the sector in its five-year plans. Further the Green revolution took place in India and this gave a major boost to the agricultural sector for irrigation facilities, provision of agriculture subsidies and credits, and improved technology. This in turn helped to increase the Agriculture Growth Rate in India GDP.

The agricultural yield increased in India after independence but in the last few years it has decreased. This in its turn has declined the Growth Rate of the Agricultural Sector in India GDP. The total production of food grain was 212 million tonnes in 2001- 2002 and the next year it declined to 174.2 million tonnes. Agriculture Growth Rate in India GDP declined by 5.2% in 2002- 2003. The Growth Rate of the Agriculture Sector in India GDP grew at the rate of 1.7% each year between 2001- 2002 and 2003- 2004. This shows that Agriculture Growth Rate in India GDP has grown very slowly in the last few years.

Agriculture Growth Rate in India GDP has slowed down for the production in this sector has reduced over the years. The agricultural sector has had low production due to a number of factors such as illiteracy, insufficient finance, and inadequate marketing of agricultural products. Further the reasons for the decline in Agriculture Growth Rate in India GDP are that in the sector the average size of the farms is very small which in turn has resulted in low productivity.

Also the Growth Rate of the Agricultural Sector in India GDP has declined due to the fact that the sector has not adopted modern technology and agricultural practices. Agriculture Growth Rate in India GDP has also decreased due to the fact that the sector has insufficient irrigation facilities. As a result of this the farmers are dependent on rainfall, which is however very unpredictable.

Agriculture Growth Rate in India GDP has declined over the years. The Indian government must take steps to boost the agricultural sector for this in its turn will lead to the growth of Agriculture Growth Rate in India GDP.

TYPES OF CREDITS

The Credit requirements of agriculture are of three types viz. 1. 2. 3. Short Term Medium Term Long- Term (LT)

We shall deal with long-term credit in this article.

Long Term Credit : The period of long-term credit is generally 5 to 20 years or even more in some special cases. In any industry, long-term investment is necessary, to create permanent assets which give returns over a period of time. The permanent investment is not only necessary for a particular industry but even for the country. Because for continuity of production and progress of the country. This applies to agriculture also. In Agriculture, long-term investment comprises of sinking well, land levelling, fencing and permanent improvements on land purchase of big machinery like tractor with its attachments including trolleys, establishment of fruit orchard of mango, cashew, coconut, sapota (chiku), orange, pomogranate, fig, guava, etc. There are many other items of long-term capital investment. Investment once made in the beginning continious to give returns over a long period. Fruit

orchards particularly do not give any income in the first 4 - 5 years as in case of other seasonal crops. So the expenditure incurred in the first 4-5 years becomes a capital cost.

All the long-term investments mentioned above require large amounts of funds. Although they have good potential to give returns in future, individual farmers have no financial capacity to make such costly investments from their own funds because they have no savings or very little savings. Therefore, they have to resort to bank borrowing to meet their such needs. The financial criteria terms and conditons procedures of granting L.T.loans are altogether different from short-term loans : Even the bank or agency providing LT loans is separatedue to its particular mode or system of raising capital and graign.

Land Development Banks : The special banks providing LT Loans are called Land Development Banks (LDA). The history of LDBs is quite old. The first LDB was started at Jhang in Punjab in 1920. But the real impetus to these banks was received after passing the Land Mortgage Banks Act in 1930s (LDBs were originally called Land Mortgage Banks). After passing this Act LDBs were started in different states of India. Structure : These Banks have two-tier structure 1. Primary Land Development Bank at district level with branches at taluka level.

2.

Control or State Land Development Bank. All primary Land Development Banks are federated into Central Land Development Bank at the State Level. In some States, there is Unitary structure wherein, there is only one State Land Development Bank at the state level operating through its branches and sub-branches at district and below levels.

Raising Funds : The main function of raising funds is carried out be the Central or State Land Development Bank which can really deal with the money market of the country effectively and advance loans to primary LDBs. The sources of funds of State LDBs are:1. Share capital. 2. Issue of debentures 3. Loans from NABARD 4. Reimbursements of subsidies from the Govt. 5. Other funds. Issue of debentures is the main source of funds for the LDBs. Debentures is a `Bond conveying and acknowledging the debt and also containing the provision of promise for payment of interest at stipulated rate and return of the principal amount. The period of debentures varies from 7 to 15 years. As LDBs require funds of longer duration to advance LT loans to borrowers, the debenture is a convenient instrument of raising funds. Because it guarantees that funds will remain with the Banks for a specified period.

There are three types of debentures:1. Regular debentures 2. Rural debentures 3. Special development debentures. These debentures are mostly purchased by financial institutions like LIC, Commercial Banks, Co-op. Banks, NABARD, and State Govts. As there is limited response from the public. The State Govt. give incentive subsidies for many development activities by individual farmer including purchase of tractor. The amounts of subsidies are reimbursed to the LDBs.

Interest rate : The rates of interest for LT Loans are generally low and within the paying capacity of farmers. They are around 11 to 12%.

Loan Procedure : The Branch offices receive applications from the prospective borrower. Then Agricultural Finance Officer or Inspector scrutinises these applications, they visit places of the application and ascertain the purpose of borrowing, verify the genuineness of the proposal and it economic viability, repaying ability of the farmers, adequacy of security,etc. After completing those formalities, the loan is granted by the appropriate authority at appropriate level depending upon the delegation of powers by the Banks.

CROP LOAN

Crop loan is a short term credit and is generally obtained from primary credit coop. Society of a village or also from commercial bank. The period of loan is about one year except for sugarcane for which the period is 18 months. There are two criteria for granting crop loan. 1. One third of gross value 2. Cost of cultivation. 1. One third of gross value approach takes into account the yield and price of the crop, its cost of cultivation and family expenditure. If the gross value is more, more amount of loan becomes available. For e.g. Rice. I Yield (Q.) Price (Rs/Q) Gross value (Rs.) One third (Rs.) 20 400 8000 2700 II 25 400 10000 3330

2.

Thus in second situation farmer is entitled for Rs.3330 per hectare which is higher than in the first situation. Thus this method takes into account the productive aspect of a crop.

3.

In cost of cultivation, direct paid-out costs are only considered. They include items, like seeds, manures, fertilizers, pesticides, diesel/electricity, hired labour etc. In this approach, it is expected that all

direct costs to be incurred by the farmer should be covered and accordingly he should get adequate credit. If the cost of all these items of input is Rs.3500/-. If the loan is granted according to first approach, then the amount which is short, is spent by the farmer from his own funds. Since crop loan is for one season, its recovery is made in one installment after the harvest of the crop. Crop loan is an annual requirement and farmer has to borrow fresh loan for new crop season every time. Therefore, he has to repay the earlier loan with interest within stipulated time.

Since this loan is required every season/every year, the procedure of getting this loan is simple and convenient and it is made available by the District Central Coop.Banks through the village Co-op. Credit Society. So the farmer gets his loan in the village itself. If the loan is to be taken from commercial bank, it is available from the nearby branch of the commercial bank. As for security, the farmer has to offer his land as a security. There is a three tier structure providing crop-loans through co-operative institutions.

Appex Bank- State Co-op. Bank. District Central co-op. Bank Village co-op. Credit Society.

Crop-loan is the most important need of the farmer to increase and maintain his productive ability. With the help of this loan amount, he can purchase modern costly inputs and adopt new technologies on his farms. So through these loans cooperative banks play important role in the development and prosperity of agriculture. Among the various types of bank loans to agriculture, the share of crop loan is the highest.

AGRICULTURAL LOANS

Agricultural loans are available for a multitude of farming purposes. Farmers may apply for loans to buy inputs for the cultivation of food grain crops as well as for horticulture, aquaculture, animal husbandry, floriculture and sericulture businesses. There are also special loans to finance the purchase of agricultural machinery such as tractors, harvesters and trucks. Construction of biogas plants and irrigation systems as well as the purchase of agricultural land may also be financed through special types of agricultural finance.

COOPERATIVE AGRICULTURAL BANK 1. National Bank for Agriculture and Rural Development or NABARD is responsible for refinance disbursement to commercial banks, State cooperative banks, State cooperatives, rural development banks, Regional Rural Banks (RRBs) and other eligible financial institutions. It also sanctions money through its Rural Infrastructure Development Fund for projects covering irrigation, rural roads and

bridges, health and education, soil conservation and drinking water schemes. NABARD also offers a Kisan Credit Card Scheme and crop loans under the Rashtriya Krishi Bima Yojana. Banks and RRB's introduced the Kisan Credit Card Scheme of NABARD in their areas of operation. In this scheme eligible farmers are provided with a Kisan Credit Card and a passbook or card-cum-pass book. The revolving cash credit facility allows any number of withdrawals and repayments within the limit. This limit is fixed on the basis of operational land holding, cropping pattern and the scale of finance. Sub-limits may be fixed at the discretion of banks. This Kisan Credit Card is valid for 3 years subject to annual review. As incentive for good performance, credit limits may be enhanced to take care of increase in costs, change in cropping pattern, etc. Each drawl should be repaid within a maximum period of 12 months. Conversion or rescheduling of loans is allowed in case of damage to crops due to natural calamities. Security, margin, rate of interest and other details are fixed according to RBI norms. 2. Bihar State Co-operative Bank Limited (BSCB) - Offers a range of loans and financial schemes to agriculturalists. 3. Haryana State Co-operative Apex Bank Limited (HARCOBANK) The bank offers crop loans, Kisan Credit Cards, cash credit against hypothecation of stocks and interim finance by way of cash credit. 4. National Federation of State Co-operative Banks Limited (NAFSCOB) This federation offers a range of agricultural loans through member State Cooperative Banks, District Central Cooperative Banks and Primary Agricultural Cooperative Societies.

5. Orissa State Co-operative Bank Limited (OSCB) - The bank has introduced Kisan Credit Cards in the S.T. Cooperative Credit Sector. It also organizes seminars on agri finance. OSCB has 17 Central Cooperative Banks and around 810 mini banks in different districts of Orissa. 6. Repatriates Co-operative Finance and Development Bank Limited - This bank does not have any specific agricultural loan, but offers a range of financial products that can be accessed by people who wish to develop agriculture and related activities. 7. Punjab State Cooperative Agriculture Development Bank Ltd - Initially, the bank only gave farmers loans to pay off old debts and purchase land. Today, the bank provides loans for various purposes like improvement of alkaline and saline lands, purchase of tractors, installing tube wells and other modern agricultural equipment. It also offers financial schemes for poultry development, dairy development, horticulture, floriculture, sheep rearing and inland fisheries. 8. Andhra Pradesh State Cooperative Bank Limited (APCOB) - has a loan portfolio that covers crop loans, medium term loans and long term loans for agricultural purposes. It also supports government sponsored District Rural Development Agency projects through IRDP loans and cooperative sugar factories, spinning mills, weaver's societies, employees' cooperative credit societies and other organizations. APCOB has also extended finance to apex cooperative institutions in the State such as APCO, MARKFED and GCC.

NATIONALISED BANKS

1.

Allahabad Bank - offers the Kisan Credit Card and Kisan Shakti Yojana

Scheme. The Kisan Credit Card is a unique scheme for farmers through which they can draw a cash loan for crop production as well as domestic needs from the cardissuing branch within the sanctioned limit. The Kisan Shakti Yojana provides farm investment credit, as well as personal/domestic loans including repayment of debt to moneylenders. The permissible loan limit will be 50 per cent of the value of land or 5 times the net farm income, whichever is lower, less the outstanding amount, if any, in Agril. 2. Andhra Bank - provides facilities to farmers like AB Kisan Vikas Card, AB

Pattabhi Agricard, AB Kisan Chakra, rural godowns, agri clinics, agri service centres, self help groups and solar cookers. They also provide other schemes such as Kisan Sampathi, tractor financing, Kisan Green Card, Surya Sakhti and loans to dairy agents. 3. Bank of Baroda - offers farmers the Baroda Kisan Credit Card. It also has

schemes for the purchase of agricultural implements, heavy agricultural machinery like tractors, irrigation and other infrastructure. Bank of Baroda also finances the development of agri industries like horticulture, sericulture, fisheries, dairy and poultry. 4. Bank of India - has a Kisan Credit Card Scheme that helps farmers raise

short-term funds for agriculture and other farm-based activities, on an on-going basis, with very flexible and friendly repayment terms. It also offers an agricultural loan for development of agriculture related industries, purchase of machinery and other agricultural purposes.

5.

Bank of Maharashtra - offers agriculturists a Mahabank Kisan Credit Card

and financial schemes for digging new wells, purchasing harvesters, livestock, vehicles and land. Repayment terms for different agricultural loans range from three to fifteen years. 6. Canara Bank - provides Kisan Credit Cards. Limits up to 50,000 have no

margin while those above 50,000 have a margin of 15 to 20 percent. Other than this, Canara Bank provides a wide array of financial schemes for different agricultural purposes. 7. Central Bank of India - The Central Kisan Credit Card is a credit service

provided to farmers on the basis of their holdings for purchasing agricultural inputs. Only those farmers having a good track record for the past 2 years with the bank as a borrower or depositor and who are not defaulters to any credit institution would be considered for loans. 8. Corporation Bank - offers a range of loan schemes to farmers. They are the

Corp Gram Mitra Yojana, Corp Arthias Loan Yojana, Corp Kisan Tie-Up Loan Scheme, Corp Kisan Farm Mechanisation Scheme and Corp Kisan Vehicle Loan Yojna. 9. Dena Bank - Dena Bank has sponsored 2 Regional Rural Banks namely

Dena Gujarat Gramin Bank in Gujarat and Durg Rajnandgaon Gramin Bank (DRGB) in Chhattisgarh. The bank has set up a Rural Development Foundation for training unemployed youth in rural areas. Other financial schemes of the bank are the Dena Swacch Gram Yojana, Dena Kisan Gold Credit Card Scheme and the Dena Bhumiheen Kisan Credit Card Scheme.

10.

Indian Bank - has a wide range of schemes for agriculturalists such as

Swarojgar Credit Card, Gramin Mahila Sowbhagya Scheme, Kisan Bike Loan Scheme, Yuva Kisan Vidya Nidhi Yojana and Indian Bank Kisan Card Scheme. 11. Indian Overseas Bank - offers agri business consultancy services that

include conducting feasibility and market studies, preparation of detailed project reports and formulation of rehabilitation packages for sick agro units. 12. Oriental Bank of Commerce - It has two agricultural projects - the

Grameen Project and the Comprehensive Village Development Programme. The Grameen Project involves disbursing small loans ranging from Rs. 75 onwards to mostly women. Training is also provided in villages in using locally available raw material to produce pickles and jams. The Comprehensive Village Development Programme focuses on providing an integrated package of rural finance to villagers to build up their village. 13. Punjab and Sind Bank - offers a range of financial schemes for farmers

like the Zimidara Credit Card, tractor finance scheme, drip irrigation scheme, Kheti Udyog Khazana Yojana, vermi composting scheme, horticulture clinic and private veterinary clinic with dairy unit scheme. 14. Punjab National Bank - This bank has a special website called PNB Krishi

for agriculturalists. It gives details on crop practices, plant protection, farm machinery, market prices and other farming news and activities. The website also provides a list of financial schemes offered by Punjab National Bank on production credit, investment credit, composite loans, animal husbandry and farm mechanization. 15. Syndicate Bank - offers a wide range of agricultural loan products such as

the Synd Jai Kisan Loan Scheme, Jewel Loan Scheme for Agriculture, Syndicate

Farm House Scheme, Finance for Hi-tech Agriculture, Development of Irrigation Infrastructure scheme, Syndicate 2/3/4 Wheelers Scheme and the Syndicate Kisan Credit Card (S.K.C.C). 16. UCO Bank - This Bank provides the UCO Hirak Jayanti Krishi Yojana to

meet the long-term credit needs of the farming community in rural areas for agriculture, allied activities as well as for personal purposes. Only farmers below 60 years are eligible to apply. Minimum quantum of the loan is Rs. 25,000/- and the maximum is Rs. 5 lakhs. 17. Union Bank of India - Facilities provided to farmers include Kisan ATM

Cards and special Kisan ATM Machines. These ATM's are easy to operate and do not require farmers to have a high level of literacy. They are voice enabled in the local language, have a touch screen monitor and work on a bio-metric authentication system like finger print verification. 18. United Bank of India - The range of financial schemes offered to

agriculturalists include the United Krishi Laghu Paribahan Yojana, United Krishi Sahayak Yojana, United Gramyashree Yojana, Gramin Bhandaran Yojana and the United Bhumiheen Kisan Credit Card. 19. Vijaya Bank - This bank offers one comprehensive financial scheme known

as the Vijaya Krishi Vikas (VKV) Scheme. This scheme provides a simple package to farmers to meet entire agricultural credit requirements such as crop production, investment credit and consumption credit. All farmers including owners, tenant cultivators, leased land farmers and sharecroppers are eligible for this scheme.

SCHEMES FOR AGRICULTURE FINANCE

1. KISAN GOLD CARD SCHEME (General purpose Agriculture Term Loan) ELIGIBILITY a. b. Farmers having good track record of repayment for the last two years. Farmers who have closed their loan account without default and not our current borrowers. c. Farmers who have defaulted in repayment but closed the Loan within the stipulated repayment period. d. e. Farmers who are maintaining deposits with the Bank. Good borrowers of other banks provided they liquidate their dues with other banks. f. Good farmers who have not availed loans from any bank.

PURPOSE The borrower is at liberty to utilize 50% of the amount for any purpose, including consumption purpose and purchase of land.

AMOUNT OF LOAN

The amount of loan is limited to five times the annual farm income including income from allied activities or 50% of the value of the land offered as collateral security, whichever is less, subject to a maximum of Rs.10 lakh.

RATE OF INTEREST Interest rate ranges from 1% below PLR. SECURITY Hypothecation of crops and assets, if any, created out of bank finance and existing movable assets such as milch animals, pump sets etc. The loan will be secured by equitable mortgage of properties worth double the loan amount, or term deposit receipts, LIC policies of adequate surrender value, NSCs completed lock in period or more etc.

DISBURSEMENT Cash disbursals are allowed to the full extent of the credit limit.

REPAYMENT The repayment period shall be 10 years. The due date of the instalment shall be fixed in such a way to coincide with the date of generation of income.

2. KISAN CREDIT CARD SCHEME

ELIGIBILITY All agriculturists who are in need of short term production requirements. ATM facility and Personal Accident Insurance Scheme for life up to Rs.50000/- and permanent disability cover up to Rs.25000/- is available on request.

PURPOSE To provide hassle free short-term credit to farmers on the basis of their land holdings for purchase of inputs and draw cash to meet their production needs. i.e. Cultivation expenses including allied activities with a consumption component.

AMOUNT OF LOAN To be fixed on the basis of operational holdings and scale of finance with consumption component 15% (maximum Ra.10000/-) of production credit. The scale of finance to farmers who own cultivated land below one acre will be at the rate of Rs.40000/- (on pro rata basis) and farmers who own more than one acre with intensive farming of land be given at the rate of Rs.37500/- per acre and part thereof.

RATE OF INTEREST Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.

REPAYMENT

Running Cash Credit account for 36 months subject to annual review and total annual credit should exceed annual debit.

3. HOMESTEAD FARMING PURPOSE A scheme for financing farmers practicing mixed cropping / inter cropping along with allied activities to enable them to undertake cultivation of various crops in a more integrated way. The scheme provides the farmers with sufficient working capital required for their homestead farming (Mixed cropping along with allied activities) by fixing scale of finance based on land holding to meet the cost of entire farming activities.

AMOUNT OF LOAN The farmers who own cultivated land below one acre be given the scale of finance on pro rata basis at the rate of Rs.40000/- and farmers who own more than one acre of land be given at the rate of Rs.37500/- per acre and part thereof.

RATE OF INTEREST Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.

REPAYMENT

The facility will be sanctioned as an Agriculture Cash Credit limit (In case of Kisan Credit Card running cash credit).

4. LOAN FOR ESTATE PURCHASE ELIGIBILITY The estate should be either in yielding stage with the crops in its prime yield age or capable of being developed in to a viable unit. The yield / net income of the estate should be sufficient to liquidate the proposed loan and interest accrued with in a period of 7 to 10 years. The proposed estate should be free from encumbrance and entire property should be offered as security to the loan.

PURPOSE To encourage those who prefer to settle down in agriculture and are in the look out of good / viable estates for purchase and also to improve production in agriculture.

AMOUNT OF LOAN The quantum of loan that will be considered for sanction will be 75% of the registered value or 50% of the market value whichever is low. In exceptional cases 80% of the registered value or 50% of the market share whichever is low is also considered. The loan for the development of the estate like land development including working capital can also be sanctioned.

RATE OF INTEREST Interest rate same as BPLR

REPAYMENT Repayment of loan will be in quarterly/half yearly / yearly instalments depending on the harvest of the crops and the loan shall be repaid within a maximum period of 7 to 10 years.

5. SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR AGRICULTURAL PURPOSES ELIGIBILITY Small and Marginal farmers - land maximum upto 5 acres of non-irrigated land or 2.5 acres of irrigated land including the land purchased under the scheme. Tenant, sharecropper and landless agricultural labourers with a good record of prompt repayment of our loans for the last 2 years are also eligible.

PURPOSE To finance small and marginal farmers, share croppers, tenant cultivators for purchasing land to expand activities and to make existing small and marginal units economically viable to bring fallow lands and waste lands under cultivation to step up agricultural production as well as productivity also to finance share croppers / tenant farmers to enable them to diversify farming activities to allied areas to increase their income.

AMOUNT OF LOAN Maximum loan under the scheme towards land cost shall not exceed Rs 5 lakh. Cost of development/economic activity shall be financed under the banks other financing schemes.

RATE OF INTEREST Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT Repayment of the loan will be 7 to 12 years in half yearly / yearly installments with maximum of 24 months moratorium period. Gestation period / repayment due dates etc will be fixed according to income generation from the activity.

6. SCHEME FOR CULTIVATION OF MEDICINAL PLANTS

ELIGIBILITY All agriculturists are eligible.

PURPOSE Scheme for financing cultivation of 22 medicinal plants cultivated extensively and also in great demand in the local as well as foreign market.

AMOUNT OF LOAN Depending on the area of cultivation / project cost

RATE OF INTEREST Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT Repayment should coincide with harvesting and marketing or at the time generation of income from the scheme.

7. SCHEME FOR CULTIVATION OF VANILLA ELIGIBILITY All agriculturists are eligible.

PURPOSE Scheme for financing cultivation of Vanilla, a cash crop, gaining ground in the State of Kerala.

AMOUNT OF LOAN Amount of finance will be Rs.250000/- per hectare for pure crops and Rs.210000/per hectare for intercrop.

RATE OF INTEREST Normal rate of interest as applicable to ATL

REPAYMENT The loan shall be repaid within a period of 7 years, in yearly instalments. Farmers eligible for two years gestation period and interest is repayable on the 3rd and 4th year and the principal from the 5th to 7the year.

8. SBT RAIN WATER HARVESTING SCHEME ELIGIBILITY

Farmers having land holding of 0.50 acre or more are eligible to be considered for finance under this scheme.

PURPOSE Scheme envisages construction of low cost tanks for collecting and storing rainwater and using it for irrigation, by siphon arrangement, utilizing gravitation flow or by installing motor pump.

AMOUNT OF LOAN Maximum amount of finance will be Rs.88000/- per acre. Scheme can be adopted in smaller areas also by reducing the cost proportionately.

RATE OF INTEREST Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT Repayment based on the income generated from the crops raised and and cropping pattern. The maximum period eligible for repayment is 8 years in annual instalments.

9. PRODUCE MARKETING LOAN (Advance against Warehouse Receipt) ELIGIBILITY a. Farmers / traders depositing farm produce in the warehouses of the central / state warehousing corporations. a. Scheme will be operative in Karnataka, Andhra Pradesh, Tamilnadu & Kerala.

PURPOSE a. To protect the farmers from the compulsion to sell their produce immediately after harvest of produce despite an adverse market. b. To finance farmers and traders against warehouse receipt.

AMOUNT OF LOAN 70% of the value of the warehouse receipt, valued at the market value or 70% of the market price advised by Agri. Dept, HO whichever is less.

RATE OF INTEREST Farmers Up to Rs.3 lakh - 3.50% below PLR 9.50% Above Rs.3 lakh - 2.50% below PLR 10.50% Traders

2.50% below PLR 10.50% (Irrespective of the limit)

REPAYMENT On demand / 6 months which can be extended up to 12 months subject to satisfactory shelf life / market condition.

10. AGRI. LOAN TO NON-RESIDENT INDIANS ELIGIBILITY Agricultural advances are available to the resident family members (means spouse, father, mother, brother, sister etc.) of Non-Resident Indians for land-based activities in respect of the land held by them in India subject to: a. The loan should be need based and the total land holding of the Non-Resident Indian, in individual name or jointly with others, should not exceed 5 ha. b. The loan amount shall not be used for acquiring any additional land.

PURPOSE To finance farmers only for land-based activities and to carryon agricultural activities on the existing land.

AMOUNT OF LOAN

The maximum amount of the loan will be need based.

RATE OF INTEREST Interest rate ranges from 2.50% below to 1.50% above BPLR for various shortterm limits and from 1.75% below to 2.00% above BPLR for various long-term limits. REPAYMENT The loan can be repaid out of the income generated from the agricultural activities or remittances from abroad or by debit to their NRE/NRO/FCNR accounts.

11. MINOR IRRIGATION Projects with cumulative command area of less than 2000 ha are called minor irrigation projects ELIGIBILITY The beneficiary should have a minimum of 50 cents of land to be brought under irrigation to ensure viability and repayment of loan.

PURPOSE Scheme for developing irrigation potential, Minor Irrigation, Installation of Pump set Drip Irrigation etc.

AMOUNT OF LOAN As per the project submitted.

RATE OF INTEREST Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT The loan shall be repaid within a period of 9 years, in yearly instalments.

12. FARM MECHANISATION Loan for Farm Mechanisation, Purchase of tractors, Power Tillers, etc. ELIGIBILITY a. Tractors with engine capacity up to 35 HP The applicant should own / cultivate six acres of perennially irrigated land. b. Tractors with engine capacity above 35 HP The applicant should own / cultivate eight acres of perennially irrigated land. c. Power Tillers the applicant should own / cultivate four acres of perennially irrigated land.

PURPOSE To purchase tractor / power tillers for agricultural activities.

AMOUNT OF LOAN Amount of advance will be the investment cost of tractor / power tiller and implements less margin @15%.

RATE OF INTEREST Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT The period of repayment shall be 9 years for tractors and 7 years for power tillers.

13. AGRICULTURE GOLD LOAN ELIGIBILITY All individual farmers undertaking cultivation or other activities including allied activities are eligible for short-term finance.

PURPOSE To meet genuine credit requirements of farming including allied activities, repairing of equipments and consumption needs etc.

AMOUNT OF LOAN The eligible loan amount should be assessed based on the area under cultivation, crops(s) raised, scale of finance and not in relation to the value of gold offered as security.

RATE OF INTEREST Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits. For working capital loans like ACC/KCC/AGL up to Rs.3 lakh interest at the rate of 7% is extended as per RBI guidelines subject to the periods stipulated by RBI and beyond that normal rate will apply.

REPAYMENT As applicable to Agri. Cash Credit accounts depending on the duration of crops raised and harvesting period and income generation, subject to a maximum period of 12 months. The account has to be closed at the end of the repayment period.

14. SCHEME FOR DEVELOPMENT / STRENGTHENING OF AGRI. MARKETING STANDARDIZATION ELIGIBILITY Scheme shall be available to individuals, groups of farmers / growers / consumers, partnership / partnership firms, NGOs, SHG, Companies, Corporations, Cooperatives, Co-marketing Federations, Local Bodies etc. INFRASTRUCTURE, GRADING AND

PURPOSE For development of agricultural marketing operations including strengthening of infrastructure, techniques of preservation, storage etc.

AMOUNT OF LOAN As per the project

RATE OF INTEREST BPLR irrespective of credit size.

REPAYMENT Adequate long-term repayment period according to the project.

15. CONSTRUCTION / RENOVATION / EXPANSION OF RURAL GODOWN ELIGIBILITY The project for construction of rural godowns can be taken up by Individuals, Farmers, Group of farmers/growers, Partnership / Proprietary firms, NGOs, SHGs, Companies, Corporations, Cooperatives, Federations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations.

PURPOSE To create scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs.

AMOUNT OF LOAN As per the project.

RATE OF INTEREST As applicable to advances under SIB / C&I segments will be charged.

REPAYMENT

Adequate long-term repayment period, not less than 5 years including a grace period of one year.

CONCLUSION Both the co-operative banks and commercial advance credit mostly to agriculture. First bank advances short-term and medium term loans while the second bank advances long-term loans. The Reserve Bank of India as the Central bank of the country took lead in making credit available to agriculture through these banks by laying down suitable policies.

State Bank of India State Bank of India (SBI) is the largest state-owned banking and financial services company in India. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India.Its also considered as the best bank even abroad ,having around 130 branches overseas [including 1 ADB]and one of the largest financial institution in the world . With an asset base of $352 billion and $285 billion in deposits, it is a regional banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nation's loans. The State Bank of India is the 29th most reputed company in the world according to Forbes.[3] Also SBI is the only bank to get featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

The State Bank of India is the largest of the Big Four of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors. and" GUINNESS BOOK OF WORLD RECORD " that 56 million transactions happening per day all over the world is definitely an achievement History

State Bank of India Mumbai Main Branch. The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies, and were the result of the royal charters. These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and the reorganized banking entity took as its name: Imperial Bank of India. The Imperial Bank of India remained a joint stock company Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India.

Associate banks SBI has five associate banks:

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of Saurashtra - merged with SBI in 2008. State Bank of Indore - merged with SBI in 2010.

Earliar SBI had only seven associate banks that, with SBI, constitute the State Bank Group. All use the same logo of a blue keyhole and all the associates use the "State Bank of" name, followed by the regional headquarters' name. Originally, the then seven banks that became the associate banks belonged to princely states until the government nationalised them between October 1959 and May 1960. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks into the State Bank of India to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations. The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of state banks from seven to six. Then on 19 June 2009 the SBI board approved the merger of its subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12,448 and over 21,000 ATMs. Also, following the acquisition, SBI's total assets will inch very close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at Rs 998,119 crore as on March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore Branches started functioning as SBI branches on 26 August 2010. IVR (Interactive Voice Recording)

State Bank of India Mumbai LHO. Branches of SBI

State Bank of India has 131 foreign offices in 32 countries across the globe. SBI has about 21,000 ATMs; and SBI group(including associate banks) has about 45,000 ATMs. SBI has 26,500 branches, including branches that belong to its associate banks. SBI includes 99345 oficces in our country.

REVIEW OF LITERATURE Mittal, Arun, Advertising and Sales Promotion, Wisdom Publication, New Delhi, Edition -2008, p-225 Advertising appeal is the method used to draw the attention of consumers and to influence their feelings toward the product, service, or cause. There are hundreds of different appeals that can be used as the foundation for advertising messages. These are the central idea of an ad which has been used to catch the attraction of customer by heart. The theme of a commercial strikes a person in depth and forces him/her to act in the desired manner. Generally advertising appeals are broken into two categories: rational appeals and emotional appeals. Uses of Appeals in Banking Services Advertising: Name ofBroad Personal/Social Marketing Theme/Punch Line

1)

Bank Category Union BankEmotional Social/Parental of India Appeal Affection Royal BankEmotional Personal/Style of ScotlandAppeal Group HSBC IDBI State Rational Practical Rational Practical

Approach Security and FutureBecause your dreams are benefit Differentiation not only yours. In years a player comes who change the way the Customization game is played. ofNot two people are the

Service Offering same Comprehensiveness Banking for All

of Services offering BankEmotional Personal/Reliability Supporting theWith you all the way Security Traditional service quality customers

of India
2)

During the past few decades, the widely acknowledged importance of service quality resulted in numerous attempts by researchers, practitioners and managers, aimed at its conceptualization and measurement. However, this has been proven to be a difficult task, causing long-lasting debates among those involved, mainly due to the intangible nature of services and problems stemming from the simultaneous production and consumption of a service (Carman, 1990). Despite this controversy, it can be argued that there is a convergence towards the Parasuraman et al. (1988, p. 16) view that customer perceived service quality, is a global judgment or attitude, relating to the superiority of the service. Several measuring instruments have been developed, aiming to capture and explain the service quality dimensions. There is little doubt that, among these, SERVQUAL is the most popular, a fact acknowledged even by its critics (e.g. Asubonteng et al., 1996). SERVQUAL has been developed in a series of stages leading to consecutively more rened versions (Parasuraman et al., 1985, 1988, 1991, 1994). In the most commonly used version (Parasuraman et al., 1988), service quality is calculated as the gap between customer expectations and perceptions. The 22 items of this instrument are categorized into:

Reliability: The ability to perform the promised service dependably and accurately. Tangibles: The appearance of physical facilities, equipment, personnel and communications materials. Responsiveness: The willingness to help customers and to provide prompt service. Assurance: The knowledge and courtesy of employees and their ability to convey trust and condence. Empathy: The provision of caring, individualised attention to customers. Service quality and satisfaction

3)

There is very little doubt that there is a causal relationship between customer perceived service quality and satisfaction. Nevertheless, there is an ongoing debate in literature on the direction of Total Quality Management 227this relationship, i.e. whether service quality inuences satisfaction or vice versa. According to Parasuraman et al. (1988), perceived service quality relates to long-term and global evaluation of a service, whereas satisfaction is linked to evaluations of specic service transactions. They pointed out those incidents of customer satisfaction from their experiences with the provided service inuence the perceptions of service quality. On the other hand, other researchers (e.g. Cronin & Taylor, 1992; Spreng &McKoy, 1996) have found that service quality is an antecedent of customer satisfaction. Parasuraman et al. (1994) moderated this disagreement by attributing the different perspectives on this issue to the global scope of perceived service quality as opposed to the transaction-oriented nature of satisfaction. Research on the relationship between quality and satisfaction in the internet services context is again at its early stages. However, several scholars advocate that customerperceived internet service quality, either overall or specic dimensions, signicantly inuences customer satisfaction (e.g. Jun et al., 2004; Lee & Lin, 2005; Long &McMellon, 2004; Van Iwaarden et al., 2003. Yang & Fang, 2004; Zhu et al., 2002). This fact resulted in the adherence of the present study to the proposition made by Lee et al. (2000, p. 222) stating that customers can evaluate (be sat- ised/dissatised with) an object/service only after they interpret (perceive) it.

RESEARCH METHODOLOGY

This chapter describes the research methodology adopted to achieve the objectives of the study. It includes the scope of the study, research design, collection of data, analysis of data and limitations of the study. Scope of the study The scope of the study is to get the first hand knowledge about the role of SBI in granting role to agriculture sector. The scope is restricted to study the factors affecting the perception and behaviour satisfaction of consumers while availing the agriculture loan services in banks. This is done to avoid perceptual bias and for providing objectivity to the study. Research Design The research design constitutes the blueprint for the collection, measurement and analysis of data. It is the strategy for a study and the plan by which the strategy is to be carried out. Data Collection Primary Data Primary data is that data which is collected for the first time. It is original in nature in the shape of raw material. For the purpose of collection of primary data, a well structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ended questions. In close ended questions dichotomous, ranking, nominals scale, checklist questions and multiple choice questions are used. Sampling design: Sample size: 50 people who have taken any type of agriculture loan were surveyed., Sampling Area: Ambala

Sampling technique: a probability sampling technique named stratified sampling has been used in the research. Data Analysis and Interpretation For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple/ alternative choices were analyzed by taking percentages. In the case of questions on Nominal scale, the mean scores were calculated. Limitations of the study Sincere efforts have been made to collect authentic and reliable information from respondents, however the report is subject to following limitations: i. ii. iii. Some respondents were reluctant to give the information, so their responses may be biased. Study was conducted in Ambala only. So the results of the study may not be applicable in other areas. The factors which are taken in this research is not only the base to judge the consumer behavior, some other psychological factors may slightly impact on the same.

Analysis and Interpretation DATA ANALYSIS AND INTERPRETATION

Q.1

Have you ever taken agricultural loan?

Yes No

50 20

29%

Yes No

71%

Interpretation

Q.2

From which financial institution or Bank? SBI 12 8 20 10

Co-operative Bank Agricultural bank Any other

20%

24%

SBI Co-operative Bank Agricultural bank 16% 40% Any other

Interpretation Agricultural banks are most preferred by the customers. The banks specialize for the needs of the agricultural community and are usually based near their place. After this SBI and associate banks are preferred because they also have tailor made loans for them. Co-operative banks are also preferred due to their low rate of interest. For various types of loans, the interest rates are satisfactory for most of the respondents. 24% of the respondents that the interests rates are higher in comparison to other lenders like agriculture or co-operative banks.

Q.3

How do you get information about Agricultural 3 4 28 7 8

Televisions Radios Public meetings Newspapers Any Other

16%

6%

8% Televisions

14%

Radios Public meetings Newspapers Any Other 56%

Interpretation Public meetings like panchayats, meting with friends peers and fellow farmers and camps like loan mela etc are the best source of information for the consumers. Newspapers is better source of information than radio and television about the loans.

Q.4

for how much loan do you applied for?

1-5 Lacs 5-10 Lacs 10 Lacs and above

28 16 6

12%

1-5 Lacs 32% 56% 5-10 Lacs 10 Lacs and above

Interpretation In most of the cases, a loan of 1-5 lacs is applied by the consumers. There are very few takers of loans above Rs 10 lacs.

Q.5

The reason for Loan

Farming tools (thresher, tractor etc) Seeds Pesticides, Fertilizers, etc Any other

33 5 8 4

8%

16%

Farming tools (thresher, tractor etc) Seeds Pesticides, Fertilizers, etc

10% 66% Any other

Interpretation

Q.6

Are you satisfied with the procedure of the bank in granting loan?

Yes No

39 11

22%

Yes No

78%

Interpretation

Q.7

Are you satisfied with the behavior of employees?

Yes No

36 14

28%

Yes No

72%

Interpretation

Q.8

Do you like the ambience of the bank?

Yes No

13 37

26%

Yes No

74%

Interpretation

Q.9

have you encountered any problem in receiving loan.?

No Yes i) ii) iii) Documentation problems Guarantee problems Any Other

22 28 18 8 2

Interpretation

Q.10 Dos loan benefits bring charges in your farming technique?

Yes No

46 4

8%

Yes No

92%

Interpretation After taking loans, the farmer community is able to improve their farming techniques as responded by 92% of the respondents.

Q.11 S.B.I. takes 8.5-12.5% of interest rate on agricultural loan, are you satisfied with this?

Yes No

38 12

24%

Yes No

76%

Interpretation The S.B.I. rating regarding agriculture loans is satisfactory, Only 12% of the respondents were not satisfied by the bank.

Q.12 Would you like to take agricultural loan next time?

Yes No

50 0

0%

Yes No

100%

Interpretation All the respondents had a positive feedback about taking a loan again and there was not even a single respondent who replied in negative to the question.

Q.13 How will you rate SBI

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

8 20 16 4 2

4% 8% 16%
Highly Satisfied Satisfied

32% 40%

Neutral Dissatisfied Highly Dissatisfied

Interpretation The S.B.I. rating regarding agriculture loans is satisfactory, Only 12% of the respondents were not satisfied by the bank.

Age group 18-25

26-35

36-45

46-55

55+

60% 40% 20% 0%

18 -25 26 -35

47% 19% 14%

36-45
AGEGROUP

13%
46 -55

7%
55+

INTERPRETATION- our sample is indicating that maximum number of bank users are between age group 36 to 35 ranges.

Agricultural banks are most preferred by the customers. The banks specialize for the needs of the agricultural community and are usually based near their place. After this SBI and associate banks are preferred because they also have tailor made loans for them. Co-operative banks are also preferred due to their low rate of interest. Public meetings like panchayats, meting with friends peers and fellow farmers and camps like loan mela etc are the best source of information for the consumers. Newspapers is better source of information than radio and television about the loans. In most of the cases, a loan of 1-5 lacs is applied by the consumers. There are very few takers of loans above Rs 10 lacs.

After taking loans, the farmer community is able to improve their farming techniques as responded by 92% of the respondents. For various types of loans, the interest rates are satisfactory for most of the respondents. 24% of the respondents that the interests rates are higher in comparison to other lenders like agriculture or co-operative banks. All the respondents had a positive feedback about taking a loan again and there was not even a single respondent who replied in negative to the question.

The S.B.I. rating regarding agriculture loans is satisfactory, Only 12% of the respondents were not satisfied by the bank.

Occupation: Student Businessman Salaried person (Gov.) Salaried person (Pvt.) Other, please specify

4% 0 3% 0 2% 0 1% 0 0 % 7 % 3% 1 3% 0 2% 1

OC UP C ATION

INTERPRETATION: maximum number of banking service users in our sample Businessman, very closely followed by government employees

Which public sector bank you prefer mostly High SBI & Associated banks Others Low

54% 52% 50% 48% 46% 44% S I & As . B s Others

5% 3 4% 7

INTERPRETATION: Maximum numbers of respondents prefer private banks which are indicated as 53% of consumers are consumers of private bank followed by Government bank.

Which of following banks do you have account? (a) Private Banks (b) SBI & Asso. Bank (c) PNB Bank (D) Bank of India (e) Other Please specify __________________

38%

39% 9% 11% Bankof India 4% Others

Pvt. Banks

SBI

PNB

INTERPRETATION: 39% of consumers prefer SBI followed by private banks indicated at 38%. It means SBI & Associated banks are leaders in Kalka Area.

No. of transaction in one month a) 1-3 b) 4-7 c) More than 7

INTERPRETATION: 35% of consumers go for more than 7 transactions in a month.

How many times you have to come in a bank a) 1-3 b) 4-7 c) More than 7

INTERPRETATION: 53% of Consumers have to visit the bank for more than 7 times in a month.

Are you using financial services? Yes No

INTERPRETATION: As maximum number of consumers are using financial services (lones, credit cards, etc.).

Does SBI and Associated Banks provide better facilities than other public sector banks? (a) Yes (b) No

PROVIDEBETTER FACILITIES

82% 18% SBI & Ass. Banks Other Public

INTERPRETATION: SBI & Associated banks provide better facilities than other government banks ,which is indicated as 82% of respondents are preferring private banks as compared to other public sector banks as only 18%.

Are you satisfied with ATM availability of your bank? (a) SBI & Ass. (b) Others

S TIS AC A F TIONOFA TM AV IB ITY AIL IL

SATISFACTION OF ATM AVAILIBILITY

44% SBI & Ass

56% Others

INTERPRETATION: 44% of consumers are satisfied with the ATM availability of SBI & Associate banks.

Are you satisfied of value added services provided by your bank? (a) SBI & Ass. (b) Others

SATISFACTION OF VALUE ADDED SERVICES

71% 29% SBI & Ass Others

INTERPRETATION: 71% of respondents are satisfied with the value added services of other public sector banks as compared to SBI & Ass. banks indicating only 29%.

How would you rate product /service offered vs. cost by your Bank?

High SBI & Ass Banks Other Public Banks

Low

COS vs S T ERVICE

42%

58%

GOVERNMENT PRIVATE BANK BANK

INTERPRETATION: 58% of consumers are satisfied with the other banks as they are providing good service as per the cost.

Finding and Conclusion

Since our sample was collected from Kalka, majority of the respondents were Businessmen/ Govt. employees mainly in the age group of 26-35.Most of the respondents used SBI & Ass. Banks instead of other public /private sector banks. SBI scored the highest when it came to acquaint oneself with saving account pattern in banks, closely followed by private banks. As far as number of transactions and visit to the bank is concerned in one month, majority of them used it more than 7 times .As far as financial services are concerned, majority of them used it. Other banks clearly scored over government banks when it came to facilities, ATM availability, satisfaction with value added service and perceives it to be a value for money proposition when it came to choosing banks. So, from the findings of the survey we have done, it can be concluded that customers in this new era does not take whatever is offered to him/her. Rather it is the customer who decides the fortune of any company by deciding what company should offer them customers have certainly become the king. It has become quite clear that banks have become an important part in every respondents life. Most of them chose private banks as they believe it to be a better value proposition in terms of better facilities, ATM availability, value added services etc. It was also seen from the survey that age also played an important role in deciding which banks to choose, normally people with age above 35and above showed brand loyalty with banks like SBI probably because of better brand image and past experience. Thus, it can be clearly said that age, value, availability, price, product, service played an important role in deciding which bank to chose.

Bibliography www.citehr.com www.wikipedia.org/ www.psychologytoday.com/ www.nytimes.com www.consumerpsychologist.com/

QUESTIONNAIRE Q.1 Have you ever taken agricultural loan? Yes No Q.2 From which financial institution or Bank? SBI Co-operative Bank Agricultural bank Any other Q.3 How do you get information about Agricultural Televisions Radios Public meetings Newspapers Any Other Q.4 for how much loan do you applied for? 1-5 Lacs 5-10 Lacs

 10 Lacs and above Q.5 The reason for Loan Farming tools (thresher, tractor etc) Seeds Pesticides, Fertilizers, etc Any other Q.6 Are you satisfied with the procedure of the bank in granting loan? Yes No

Q.7 Are you satisfied with the behavior of employees? Yes No Q.8 Do you like the ambience of the bank? Yes No Q.9 have you encountered any problem in receiving loan.?

No Yes iv) Documentation problems v) vi) Guarantee problems Any Other

22 28 18 8 2

Q.10 Dos loan benefits bring charges in your farming technique? Yes No Q.11 S.B.I. takes 8.5-12.5% of interest rate on agricultural loan, are you satisfied with this? Yes No

Q.12

Would you like to take agricultural loan next time? Yes No

Q.13 How many times do you taken loan 1 2 3 Many Never Q.14 How will you rate SBI Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied