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Summer Training Report On The Topic


In the Partial Fulfillment of the requirement of MASTER OF BUSINESS ADMINISTRATION (2010-2012)

Under the Guidance of:

Mr. Shishpal
(Branch Manager)

Submitted by: Bhupinder Kaur Saini MBA 3rd Semester Rollno:



I, Bhupinder Kaur Saini student of MBA, studying at KURUKSHETRA INSTITUTE OF TECHNOLOGY AND MANAGEMENT, Kurukshetra, hereby declare that the Summer training report on CUSTOMER PERCEPTION TOWARDS CENTRAL CO-OPERATIVE BANK submitted to Kurukshetra University, Kurukshetra in partial fulfillment of Degree of Masters of Business Administration is the original work conducted by me. The information and data given in the report is authentic to the best of my knowledge. This training report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship.

Bhupinder Kaur Saini




Responsibilities for the economic development of India by taking banking services to the masses and taking special care of the weaker section of the society and the priority sector of the economy. Though the number of banks offices magnitude and the variety of their operations have grown considerably during the period of near about three decades, but the introduction and application of the concept of customer services entered in a welcoming way in India only after independence. The banking system in India has come a long way during the last two centuries. Its growth was faster and the coverage wider since 1960. In 1969, a major portion of banking sector was entrusted to the public sector. This process continued and embraced few private sector banks in 1980. The transfer of ownership of banks from the public to private was aimed at entrusting the banks with greater it appears that the banking sector has entered into serious business among customers. For overcoming this problem, banking industry should seek introspection and adopt refined management techniques. It has been endeavors of this study to analyze the present state of various banks keeping in view the primary data has been collected regarding the present state of loan schemes in various banks by using a questionnaire.


Heartfelt Thanks to the following people.. A few typewritten words of thanks can not really express the sincerity of my gratitude. But I am still trying to put into words my gratefulness towards all who have helped & encouraged me in carrying out this project. Any work-study is never an individual own effort. It is contributed effort of many hearts, hands and heads. I give my great sense of privilege in submitting this project work, for which I am grateful and indebted to Mr.Shishpa (BRANCH MANAGER) for allowing me and also for help to undergo my training and to do this project at this Bank. Further, I would also like to thank all the Employees of CO-OPERATIVE BANK, KURUKSHETRA and all the respondents of survey, without whom it would be impossible for me to complete the project.

(Bhupinder Kaur Saini)



1.1) Industry Profile 1.2)Introduction to Cooperative Bank 1.3) Origin of Cooperative Bank in India 1.4) Kurukshetara Central Cooperative Bank 1.5) SWOT Analysis 1.6) introduction to Customer Perception 1.7) Method assessing customer perception CHAPTER-II 2.1) Research Methodology 2.2) Objectives of the study 2.3) Limitations of study CHAPTER-III CHAPTER-IV 3.1) Analysis and Interpretation of data 4.1) Findings 4.3) Recommendations 4.3) Conclusion APPENDIX Bibliography Questionnaire


Introduction and Company Profile


Banking is nearly as old as civilization. The history of banking could be said to have started with the appearance of money. The first record of minted metal coins was in Mesopotamia in about 2500 B.C. the first European banknotes, which were handwritten appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700s and 1800s, with many banks created to deal with increasing trade. The history of banking in each country runs in lines with the development of trade and industry, and with the level of political confidence and stability. The ancient Romans developed an advanced banking system to serve their vast trade network, which extended throughout Europe, Asia and Africa. Modern banking began in Venice. The word bank comes from the Italian word ban co, meaning bench, because moneylenders worked on benches in market places. The bank of Venice was established in 1171 to help the government raise finance for a war. At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with the metal itself staying under lock and key. The goldsmith realized that they could lend out some the gold and silver that they had and charge interest, as not all of the merchants would ask for he gold and silver back at the same time. Eventually, instead of charging the merchants, the gold smiths paid them to deposit their gold and silver. The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England notes of their own receipts. New technology transformed the banking industry in the 1900s round the world, banks merged into larger and fewer groups and expanded into other country. The word BANK" is derived from the 'Bancus' or 'Banque', which means a bench. In the early days the European moneylenders and moneychangers used to sit on the benches and exhibit coins of different countries in big heaps for the purpose of changing and lending money, :


Definition: A Banking company is defined as a company, which transacts the

business of banking in India.

As per Banking Regulation Act 1949 Section 5(b)"Banking means,

accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or otherwise."



In todays dynamic world banks are inevitable for the development of a country. Banks play a pivotal role in enhancing each and every sector. They have helped bring a draw of development on the worlds horizon and developing country like India is no exception. Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle for moving finance from those who have surplus money to (however temporarily) those who have deficit. In everyday branch terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit. Without the intermediary of the banks both their depositors and their borrowers would have to contact each other directly. This can and does happen of course. This is what has lead to the very foundation of financial institution like banks. Before few decades there existed some influential people who used to land money. But a substantially high rate of interest was charged which made borrowing of money out of the reach of the majority of the people so there arose a need for a financial intermediate. The Bank have developed their roles to such an extent that a direct contact between the depositors and borrowers in now known as disintermediation. Banking industry has always revolved around the traditional function of taking deposits, money transfer and making advances. Those three are closely related to each other, the objective being to lend money, which is the profitable activity of the three. Taking deposits generates funds for lending and money transfer services are necessary for the attention of deposits. The Bank have introduced progressively more sophisticated versions of these services and have diversified introduction in numerable areas of activity not directly relating to this traditional trinity.




The banking scenario in India has been changing at fast pace from being just the borrowers and lenders traditionally, the focus has shifted to more differentiated and customized product/service provider from regulation to liberalization in the year 1991, from planned economy to market. Economy, from licensing to integration with Global Economics, the changes have been swift. Almost all the sector operating in the economy was affected and banking sector is no exception to this. Thus the whole of the banking system in the country has undergone a radical change. Let us see how banking has evolved in the past 57 years of independence after independence in 1947 and proclamation in 1950 the country set about drawing its road map f or the future public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the expansion of banking into rural India and speed up the process of magnetization. Political compulsions brought about nationalization of bank in 1969 and lobbying by bank employees and their unions added to the list of nationalized banks a few years later. Slowly the unions grew in strength, while bank management stagnated. The casualty was to the customer service declined, complaints increased and bank management was unable to item the rot. In the meantime, technology was becoming a global phenomenon lacking a vision of the future and the banks erred badly in opposing the technology up gradation of banks. They mistakenly believed the technology would lead to retrenchment and eventually the marginalization of unions. The problem faced by the banking industry soon surfaced in their balance sheets. But the prevailing accounting practices unable banks to dodge the issue. The rules of the game under which banks operated changed in 1993. Norms or income Recognition, Assets classification and loan loss provisioning were put in place and capital adequacy ratio become mandatory. The cumulative impact of all these changes has been on the concept of state ownership in banks. It is


increasingly becoming clear that the state ownership in bank is no longer sustainable. The amendment of banking regulation act in 1993 saw the entry of new private sector banks and foreign banks.

FUNCTIONS OF BANKS 1. Primary Functions

(a) Acceptance of deposits (b) Making Loans and Advances

Loans Overdrafts Cash Credit Discounting of Bills of Exchange

2. Secondary Functions

Agency Functions

Collection of cheques and bills etc Collection of interest and dividend Making payment on behalf of customers. Purchase and sale of securities. Facility of transfer of funds To act as trustee and executor

(b) Utility Functions

Safe custody of customers valuable articles and securities. Underwriting facility Issuing of Travelerscheque and letter of credit Facility of foreign exchange Providing trade information


SAFETY OF MONEY: The money with the bank remains in safe custody there is always risk in keeping cash with ones own self. It may be lost or stolen. Businessman likes to keep money with a bank to avoid risks of money the customer need not keep large some of money. IT CULTIVATES HABIT OF SAVING: Banks cultivates the habit of saving in the Bank on the one hand are safe and on the other earned interest for the depositor who prompted to safe and deposit money in their banks accounts. FINANCIAL HELP TO CUSTOMER: Banks allows overdraft facilities to their customer so whenever a customer needs money he can even withdraw more money then the balance in his account. Bank also grants loans and credit facilities to their customers. SAFE CUSTODY OF VALUABLE ARTICLES: Valuable articles deals security etc. can also be deposited in the bank for safe custody. Safe deposit vaults are provided by bank storing for these valuables. OTHER INFORMATION: By opening an account with a bank, the customers may also take advantages of various other services providing by the banks, such a purchase and sale of securities, travelers cheque etc.



On the basis of ownership banks are of the following types: 1. PUBLIC SECTOR BANK Public sector banks are those banks that are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective. 2. PRIVATE SECTOR BANKS These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him. 3. CO-OPERATIVE BANKS Co-operative banks are those financial institutions. They provide short term & medium term' loans to there members. Co-operative banks are in every state in India -Its branches at district level are known as the central co-operative bank. The central co-operative bank in turn has its branches both in the urban & rural areas. .Every state cooperative bank is an apex bank, which provides credit facilities to the central co-operative bank. It mobilized financial resources from richer section of urb3n population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI.



Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. The Cooperative banks have a history of almost 100 years. The Cooperative banks are an important constituent of the Indian Financial System, judged by the role assigned to them, the expectations theyre supposed to fulfill, their number, and the number of offices they operate. The cooperative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary cooperative banks. While the cooperative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for selfemployment, industries, small scale units, home finance, consumer finance, personal finance, etc.

DEFINITION A cooperative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.



The origins of the cooperative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany, such societies were set up in India. They are the primary financiers of agricultural activities, some small-scale industries and self-employed workers. The Anyonya Cooperative Bank in India is considered to have been the first cooperative bank in Asia. Cooperative movement is quite well established in India. The first legislation on cooperation was passed in 1904. In 1914 the Maclagen committee envisaged a three tier structure for cooperative banking. Primary Agricultural Credit Societies (PACs) at the grass root level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (SCBs) at state level or Apex Level. The firs turban cooperative bank in India was formed nearly 100 years back in Baroda. In the beginning of 20th century, availability of credit in India, more particularly in rural areas, was almost absent. Agricultural and related activities were starved of organized, institutional credit. The rural folk had to depend entirely on the money lenders, who lent often at usurious rates of interest. The cooperative banks arrived in India in the beginning of 20th Century as an official effort to create a new type of institution based on the principles of cooperative organization and management, suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for money lenders, to provide timely and adequate short-term and long-term institutional credit at reasonable rates of interest. In the formative stage Cooperative Banks were Urban Cooperative Societies run on community basis and their lending activities were restricted to meeting the credit requirements of their members. The concept of Urban Co-operative Bank was first spelt out by Mehta Bhansali Committee in 1939 which defined on Urban Cooperative Bank. Provisions of Section 5 (CCV) of Banking Regulation Act, 1949 (as applicable to Co-operative Societies) defined an Urban Cooperative Bank as a Primary Co-operative Bank other than a Primary Cooperative Society was made applicable in1966.



Cooperative Banks are organized and managed on the principal of co-

operation, self-help, and mutual help. They function with the rule of "one member, one vote". Function on "no profit, no loss" basis. Cooperative banks, as a principle, do not pursue the goal of profit Cooperative bank performs all the main banking functions of deposit maximization. mobilization, supply of credit and provision of remittance facilities. Cooperative Banks provide limited banking products and are functionally specialists in agriculture related products. However, cooperative banks now provide housing loans also. sector Cooperative banks are perhaps the first government sponsored, government-supported, and government-subsidized financial agency in India. They get financial and other help from the Reserve Bank of India NABARD, central government and state governments. loans. Cooperative banks are financial intermediaries only partially. The sources a) Central and state government, b) The Reserve Bank of India and NABARD, c) Other co-operative institutions, d) Ownership funds and, e) Deposits or debenture issues. It is interesting to note that intra-sectoral flows of funds are much greater in cooperative banking than in commercial banking. Inter-bank deposits, borrowings, and credit from a significant part of assets and liabilities of of their funds(resources) are: Cooperative Banks belong to the money market as well as to the capital Primary agricultural credit societies provide short term and medium term market. Cooperative bank do banking business mainly in the agriculture and rural


cooperative banks. This means that intra-secrotal competition is absent and intrasectoral integration is high for cooperative bank. Cooperative Banks are subject to CRR and liquidity requirements as other scheduled and non-scheduled banks are. However, their requirements are less than commercial banks. Since 1966 the lending and deposit rate of commercial banks have been directly regulated by the Reserve bank of India.


Saving Accounts:

Regular savings account Saving plus account Saving max account Salary account Pension Saving bank account
Current Accounts:

Trade current account Premium current account Regular current account

Fixed deposits

Regular fixed deposit

Super saver account 2. LOANS

Personal loans

Home loans Two wheeler loans New car loans Used car loans Educational loans Loan against property Tractor loans

Car insurance Home insurance Building insurance Contents insurance Breakdown cover

Unit trust Investment bond Ethical investments Pensions



The Kurukshetra Central Co-op. Bank Ltd. Kurukshetra came into existence on 1.4.1973 with the Primary objective of inculcating banking habits among the rural masses. The Bank has its jurisdiction throughout the Kurukshetra District. At the time of registration, the bank had only 4 branches. Keeping in the view the persistence demand from the rural masses, the bank has been opening new branches for the facility of its customers. The total branches as on date stands to 21 with 2 extension counters. Out of these 21 branches 16 branches are rural and 5 branches are urban. But due to restricting of PACS the bank is going to open 23 branches at PACS level in addition to previous 21 branches. The bank initially functioned for accepting deposits and advancing loans to the agricultural sector. Today with the changing scenario, the bank has also diversified its functions and has also entered into the Non-Farm Sector to compete with other commercial banks. From the last more than 10 years, the bank has financing loans under individual financing scheme for 22 broad categories specified by RBI/NABARD. Besides this, for small road transport operator can also be advanced loans up to this limit. For agro based projects loans for higher amount are also considered. Keeping deposits in the Co-operative Banks is also beneficial for the customers as . 5% extra interest is allowed on all deposits. The borrowers also get finance at cheaper rates than the commercial banks. During the past years, the bank has taken special steps to provide loans to the rural artisans and weaker sections of the society.


The bank was adjudged best bank among all Districts Central Co-op. Banks in Haryana State during the year 1995-96 by the NABARD. One Shield and Rs. 5.00 lacks were given to the bank for welfare of the staff.



(A) Formation
Formed on the recommending of CRAFICARD, i.e. The Committee for

Reviewing Arrangements for Institutional Credit for Agricultural and Rural Development. This committee was headed by Mr. B. Sivaraman. Came into existence on 12th July, 1982 by an Act of Parliament.

(B) Credit Function Though there is no legal bar for NABARD to provide credit directly to

people in rural areas, NABARD does not provide such direct credits. It extends credit through banks by way of re-finance. NABARD provides re-finance assistance to Commercial Banks, RRBs, State Cooperative Banks, and Land Development Banks. Re-finance is given against credit for promotion of agricultural, industry and services sector in rural areas. Both short-terms and long-term loans are eligible for re-finance. The As per NABARD Act, NABARD is authorized to extend credit with Repayment period of short-term assistance should not exceed 18 months, Commercial Banks are however not given re-finance against short-terms credits. repayment period up-to 25 years. medium practice restricted to 15 years.



Rural area for the purpose of NABARD Act means villages/town with Re-finance is available uniformly @ 50% of the loan amount extended by

population not exceeding 50,000 people.

C) Regulatory Function NABARD is vested with the powers to regulate the functioning of RRBs and

Cooperative Banks, branch opening proposals of RRBs and Cooperative Banks are to be routed through NABARD. The inspection of these banks is also conducted by NABARD. D) Development Function Vikash Volunteer Vahini NABARD has introduced a scheme to educate borrowers regarding proper

utilization of bank advances and its repayment. For this purpose it has started Vikash Volunteer Vahini with the cooperation of financing banks. Farmers and Artisans, who have successfully put into practice the principle of development through banks credit, are drafted together to disseminate financial discipline among rural borrowers. E) Self Help Group A Self Help Group is voluntarily formed by around 10 to 20 rural poor to

conveniently save out of their earning by contributing to a common fund. The proceeds of the fund is lent to members of their productive and other credit needs. The internal saving mobilized forms the corpus of group and the group decides the rate of interest to be given on saving and to be charged on credits. The group should maintain simple records like minute book, membership

records. It should open a saving bank account with a bank.


Self Help Group may be organized by voluntary agencies or NGOs or by The Self Help Group may borrow from a bank after remaining in active

initiative of a bank. existence for at least six months. The finance can be given directly to the SHG or to the NGO for on lending to the group. The quantum of finance should be maximum two times of the savings of the group and can be up to four times in exceptional circumstances. 2. NABARD provides 100% refinance to bank on their lending to SHG/NGOs. All advances to SHGs are treated as priority sector advances. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) Set up on 2nd April, 1990 as a wholly owned subsidiary of IDBI with its The authorized capital of SIDBI is Rs. 250 crores. SIDBI provides (i) Direct finance to small scale industrial activities, (ii) A TDMFS TDMFS stands for Technology Development and Modernization Fund SIDBI maintains this fund and provides direct finance to SSI units which are

headquarters at Lucknow. It is decided to delink SIDBI from IDBI.

Refinance to banks against their finance to SSIs, (iii) NIF assistance.

Scheme. in operation for minimum three years for up gradation of their technology. 3. NATIONAL HOUSING BANK (NHB) National Housing Bank is the apex bank for housing finance. It came into existence on 9.7.1988. It is formed under National Housing Bank Act, 1987. The entire share capital of NB is held by RBI. The authorized capital of this bank is Rs. 500 crores and paid up capital is Apart from share capital, National Housing Bank can raise resources through

Rs. 200 crores. issue of bonds, borrowing from Central Government and accepting term deposit from Central Government. 24

National Housing Bank promotes housing finance institutions and provides

financial and other support to them.


In order to better understand the cooperative banks and the environment in which they function (taking into consideration Fund management, Risk management, Asset and Liability management), a SWOT analysis has been undertaken.

STRENGTHS : Cooperative banks have less number of branches and that to in a small area. Thus it is easier for them to control and regulate their overall operation. These banks have limited and known customer base, which give them more potential to control credit risk These banks are free from market risk arising due to fluctuations in the market These banks are free from risk arising out of Para-banking activities. As these banks are localized they are able to maintain a personal touch with depositors and borrowers. These banks can avail of cheaper labor and thus can maintain low costs.

WEAKNESS These banks suffer from dual accountability to both the regulators (RBI) and the state government. These banks suffer from lack of corporate governance. The BOD as well as the staff members lacks professional banking knowledge and expertise. These banks have very limited avenues for expanding and diversifying loan as well as investment portfolios.


Banks are unable to raise additional capital by making public issue of capital. Reluctance of state government to give up control over cooperative banks and political involvement in the management of banks further worsens the state of these banks.

Lack of internal control systems makes these banks vulnerable to fraud and scams. The cooperative spirit no more exists in these banks. The distance between the members and the cooperatives has widened. Smaller size and lesser profit make it difficult for the banks to adopt latest MIS systems and other technologies.

OPPORTUNITIES These banks have the opportunity to tap local resources for mobilizing deposits and granting advances. They can provide better customized services thus leading to longer relationships and customer satisfaction. As these banks are area specific, it will be easier for them to consolidate information necessary for putting in place ALM systems. THREATS These banks face serious threats form then private banks and foreign banks, which use advanced techniques and technologies for risks and fund management. As public sector banks have also joined the competition, cooperative banks face threats form these banks too. Cooperative banks suffer from threats of frauds, scams and misinterpretations as well as from lack of professionalism



WHAT IS CUSTOMER PERCEPTION? Customer Perception is an important component of an organizations relationship with their customers. Customer perception is a mental state which results from the customers comparison of expectations prior to a purchase with performance perception after a purchase. Strong customer service helps an organization to reach up to customers expectations. Customer Perception on Service: Customer Service is the service provided in support of a companys core products. Customer Service most often includes answering questions, taking orders, dealing with billing issues, handling complaints, and perhaps scheduling maintenance or repairs. Customer Service can occur on site, or it can occur over the phone or via the internet. Many companies operate customer service call centers, often staffed around the clock. Typically there is no charge for customer service. Quality customer service is essential to building customer relationships. It should not, however, be confused with the services provided for sale by a company. Services tend to be more intangible than manufactured products. There is a growing market for services and increasing dominance of services in economies worldwide. There are generally two types of customer expectations. The highest can be termed as desired service: the level of service the customer hopes to receive. The threshold level of acceptable service which the customers will accept is adequate service. Yet there is hard evidence that consumers perceive lower quality of service overall and are less satisfied. Possible reasons may be: With more companies offering tiered service based on the calculated profitability of different market segments, many customers are in fact getting less service than they have in past.


Increasing use by companies of self-service and technology-based service is perceived sales service because no human interaction or human personalization is provided.

Technology-based services (Automated Voice Systems, Internet-Based Services and Technology Kiosks) are hard to implement, and there are many failures and poorly designed systems in place.

Customer expectations are higher because of the excellent service they receive from some companies. Thus they expect the same from all and are frequently disappointed

Organizations have cut costs to the extent that they are too lean and are too understaffed to provide quality service. The intensely competitive job market results in less skilled people working in frontline service jobs; talented workers soon get promoted or leave for better opportunities

Many companies give lip service to customer focus and service quality; but they fail to provide the training , compensation, and support needed to actually deliver quality service

Delivering consistent, high-quality service is not easy, yet many companies promise it.

The gaps model positions the key concepts, strategies, and decisions in services marketing in a manner that begins with the customer and builds the organizations tasks around what is needed to close the gap between customer expectations and perceptions. The central focus of the gaps model is the customer gap, the difference between customer expectations and perceptions. Firms need to close this gap- between what customers expect and receive in order to satisfy their customers and build long term relationships with them. To close this all important customer gap, the model suggests that four gaps- the provider gaps- need to be closed. The following four provider gaps, shown below are the underlying causes behind the customer gap: Gap 1: Not knowing what customers expect.


Gap 2: Not selecting the right service designs and standards. Gap 3: Not delivering to service standards. Gap 4: Not matching performance to promises.


The key points for each gap can be summarized as follows:

. Gap 1: Not knowing what customers expect:


Inadequate marketing research orientation Lack of upward communication Insufficient relationship focus Inadequate service recovery


Gap 2: Not selecting the right service designs and standards.


Poor service design Absence of customer-driven standard Inappropriate physical evidence and services cape



Gap 3: Not delivering to service standards.


Deficient in human resource policies Customers who do not fulfills roles Problems with service intermediaries Failure to match supply and demand


Gap 4: Not matching performance to promises.


Lack of integrated services marketing communication Ineffective management of customer expectation Over promising Inadequate horizontal communication



Methods of assessing customer perception


Our experience suggests that providing the customer with a survey is the most frequently used method to obtain customer feedback. These vary in length and focus with the most common categories for questions covering: 1. Quality of product, 2. Timeliness of delivery 3. Price 4. Responsiveness & flexibility 5. Service quality 6. Cooperativeness of Customer Service Representatives and/or Sales Representatives 7. Innovation and creativity 8. Vastness of service offerings

Potential Strengths: Relatively easy to coordinate the distribution. Relatively in expensive.

Potential Weaknesses:

Response rate is not usually stellar. We have not performed a format study to define an average response rate, but we are told that if you do really well, a company might approach 50%.

You cant control who responds and who does not.

So, you may not

necessarily obtain a representative perspective of the overall customer base.


Poorly crafted questions may create a built-in bias by leading the respondent to answer in a certain way. This is an issue with all methods of assessment, but with a survey there is no opportunity for two-way communication that might resolve misunderstanding.

2. FEEDBACK CARDS These are attached to the product, or to an invoice, and focus on the quality of a product shipment. Areas of focus typically include: 1. Product quality 2. Condition of the product when it arrived 3. Timeliness 4. Packaging Potential Strengths: Inexpensive to execute. The cards are attached to something that is already going to be shipped or mailed. Because it is smaller in size and therefore less burdensome to complete, the recipient may be more inclined to return it. Potential Weaknesses: The size of the card restricts the number of questions that can be listed. Although directions for distribution (who should complete it) are included on the card, the card often does not hit its intended target. Sometimes the receiving department throws away the card. You cant control who responds and who does not. So, it is unlikely that you obtain a representative perspective of the overall customer base.

3. FOCUS GROUPS A focus group session is a meeting conducted with a variety of customers to assess a product or service. Meetings can also focus on service or process issues. The automobile industry conducts what it calls 20 Groups where it brings a group of twenty customers together for the purpose of discussion. In a traditional Market


Research sense, the results generated in a focus group are not considered scientific and are used to further hone other research instruments like a survey. We know of Graphic Arts firms that use the concept with a twist by bringing buyers and prepress/customer service representatives together for the purpose of improving file transfers and/or job related communication.

Potential Strengths: Sometimes a customer will think of an idea with others present that he/she otherwise would not. Generates a good deal of input in a short span of time.

Potential Weaknesses: If not facilitated properly (focus on the outcomes and actionable items), the meeting can turn messy. When this happens, it is worse than if nothing was attempted. Sometime individuals in a group are subjected to group think and support the viewpoints of others rather than voice their own. 4. FACE TO FACE INTERVIEWS\ You may see these being executed at shopping mall. Shoppers are escorted into a room where a prepared survey is completed which usually includes both open-ended questions and those that require a rating. In the Graphics Arts world a company often relies on the sales force to obtain the customers perception by sitting down and having customer-supplier meetings. It is important to use interviewers that are independent of the process. It is not unusual for ownership to say, My sales force has a handle on the customer. After all, thats what I pay them for and they dont get paid unless they keep the customer happy. Ill restate the point that interviewer independence is mission critical.

Potential Strengths: The setting provides an opportunity to clarify questions and discussion topic. Because communication is two-way. The interviewer can check-in for both non verbal and vocal cues.


The interviewee might be more attentive and thorough in answering questions when an interviewer is involved.

Potential Weaknesses: The interviewer is constrained by geography. Either the interviewer visits the interviewee or vice-versa. So to obtain wider coverage can be expensive. The interviewer may enter bias into the activity, by either saying too much (leading the interviewee), not listening well, or by not accurately or comprehensively recording responses.

5. TELEPHONE INTERVIEWS These are not telephone solicitations. Rather these are contacts made with existing customers for the purpose of assessing their perception of how well a company is meeting their needs. With intelligent crafting of both questions and sequence (the nesting of questions), a tremendous amount of useful and actionable information can be gleaned. As previously stated, it is critical to use interviewers who are completely independent so as not to filter the information. Potential Strengths: The setting provides an opportunity to clarify questions and discussion topics because communication is two-way. The interviewer can check-in for vocal cues. The interviewer is not constrained by geography. The interviewee might be more attentive and thorough in answering questions when an interviewer is involved. Potential Weaknesses: The interviewer may enter bias into the activity, by either saying too much (leading the interviewee), not listening well, or by not accurately or Comprehensively recording responses.


By customer complaint process I mean a formal process. Generally a company implements a form or electronic recording method for capturing a complaint. Responsibilities are assigned to individuals to resolve the immediate issue. The log of complaints is analyzed to determine patterns and root causes of customer perceptions for the purpose of permanently eliminating the condition causing the complaints. Potential Strengths: If a company genuinely listens to the complaining customer, it is hearing an unsolicited cry for help and there is no better substitute for that perception. Proper handling of the complaint can lead to a save which may improve the relationship. Potential Weaknesses: Making this method the only source of customer perception. Often times customers do not complain; they just never do business with you again.


Research Methodology


Meaning of Research Research is any organized inquiry carried out to provide information for solving problems. Business research is a systematic inquiry that provides information to take business decisions. Definition Research comprises of defining and redefining hypothesis or suggesting solution, collecting, organizing and evaluating data making deductions and reaching conclusions. By Clifford Woody The term Research Methodology here comprises of all research activities carried on in connection with the Analysis Customer Perception towards of central cooperative bank. The basis purpose of Research Methodology is to describe the research procedure. It helps the researchers to the way to move on for carrying the study. Research Problem Study of the customer perception about the Cooperative Bank. Research Design Research Design is exploratory and descriptive which helps me to explore the factors influencing the perception of the customers and to describe the gap between the banks at various levels. Sample Size The study aimed to survey 100 samples from the Kurukshetra District. Sampling Design was such to have a analysis of the Customer Perception towards Cooperative Banks. The respondents were selected on the basis of convenience sampling.


OBJECTIVES OF THE STUDY To analyze the Customer Perception towards Kurukshetra Central Co-operative Bank. To know about the different factors of the bank which influence the customer perception? To understand and compare the level of Advertisement impact on customers followed by Co-operative Bank. To study that, customer prefers the computerized banking or not. To study that, there is influence of image or brand of the bank on the customer To have a comparison that if the customer is differing in his perception for a Government oriented bank and private Bank. To know about the problem faced by the customers. Data Collection: Both primary and secondary data have been collected for meeting the objectives of the current study. a) For the purpose of the collection of the primary data, Personal interview of the respondents was conducted. An unbiased, undisguised structured questionnaire was prepared which was administered to the respondent for the purpose of getting the information. With the reference of certain previously carried studies, certain statements for getting out the customer perception were formulated. b) For the purpose of secondary data, Secondary sources of information like magazines, newspapers, journals; studies conducted in past etc. have been referred. The main sources of secondary data in the study are from: Banks Detail Books Website



Analysis Techniques The questionnaire is having the alternative choices. Questions having alternative choices have been analyzed by taking percentages analysis technique.



Some respondents were hesitant in providing the complete information. The findings of the study are based on the expressed opinion of the Difficulty was faced in getting the responses to various questions because the

respondents. there. This study only relates to one organization, so conclusion drawn may not Even the employees of the bank hesitate to give the complete and accurate find its utility in all other banks. data. customer could not devote enough time to us and the communication problem was


Analysis and Interpretation of Data



3. 1 what is you age? Age 18-23 years 24-29 years 30-35 years 35 and above Total No of respondents
8 22 33 37 100

8% 22% 33% 37% 100%

40% 35% Percentage of respondent 30% 25% 20% 15% 10% 5% 0% 18-23 24 -29 30-35 3 5 an d y ears y e ars y ears abo ve Age 18-23 y ears 24-29 y ears 30-35 y ears 35 an d abo ve

Interpretation: From the table and graph above it can be seen that 8% respondents age are 18 to 23 years. 22% respondents age are 24 to 29 years. 33% respondents age are 30 to 35 years. 37% respondents age are 35 to above years. 43

3.2 What is your gender?

Gender No. of respondents percentage

Male Female Total

72 28 100

72% 28% 100%

80% 70% 60% percentage 50% 40% 30% 20% 10% 0% M ale Ge nde r Fem ale M ale Fem ale

Interpretation: From the above data it is observed that 72% respondents are male and 28% are female so it is conclude that majority of respondents are males.


3.3 What is your occupation? Category Businessman Job holders Farmers Others TOTAL NO.OF.RESPONDENT 24 18 47 11 100 PERCENTAGE 24% 18% 47% 11% 100%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

ho l de rs Fa rm er s an ss m Ot he rs

B usinessman Job holders F arm ers Others


sin e Bu

Jo b

categ ory

Interpretation: Out of the respondent customers 47% customers are farmers. Cooperative bank has majority of farmers customer because it is mainly a rural sector bank. It does not mean that it has less percentage of customers of the businessman and the salaried employees. Businessman and job holders are 24% and 18% respectively and remaining 11% are students and housewives. 45

3.4 According to you banking is? PARTICULARS Saving Scheme Money Security Financial Security Family All the above for NO.OF.RESPONDENT 50 32 18 100 PERCENTAGE 50% 32% 18% 100%

60% 50% percentage 40% 30% 20% 10% 0% Saving Money Financial Schem e Security Security for Fam ily particulars Money Security Financial Security for Fam ily Saving Schem e

Interpretation: From the above data, it is observed that 50% respondents of cooperative bank think banking as a saving scheme and 32% respondents thinks banking as financial security for family and remaining 18% thinks financial security for family.


3.5 Which type of account do you have in cooperative bank? PARTICULARS Saving A/c Fixed Deposit Both Others TOTAL NO.OF.RESPONDENT 47 28 17 8 100 PERCENTAGE 47% 28% 17% 8% 100%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% S a v in g F ix e d B o th A /c D e p o s it P a r tic u la r s O th e r s

S a v in g A /c F ix e d D e p o s it B o th O th e rs

Interpretation: From the above data, it is observed that 47% respondents have saving account and 28% have fixed deposit. 17% have both saving a/c and fixed deposit and remaining 8% have current and recurring account.



3.6 Have you taken ever any loan from cooperative bank?





63 37 100

63% 37% 100%

70% 60% 50% percentage 40% 30% 20% 10% 0% Y es No Y es No

Interpretation: The majority of the customers have taken loan from cooperative bank. 63% of the respondents have taken loan from this bank and remaining 37% customers said that they dont have taken any loan from this bank.


3.7 Which types of interest rate do you prefer? PARTICULARS Yearly Half yearly Monthly TOTAL NO.OF.RESPONDENT 13 51 36 100 PERCENTAGE 13% 51% 36% 100%

60% 50% 40% Yearly 30% 20% 10% 0% Yearly Half yearly Interest Rate Monthly Half yearly Monthly

Interpretation: 51% of the respondents preferred half yearly interest of rate, 36 % customers are preferred monthly interest of rate and remaining 13% preferred yearly rate of interest in cooperative bank.

percentage of respondent


3.8 Do you avail any appreciation from bank for being a good customer? PARTICULARS Yes No TOTAL NO.OF.RESPONDENT 22 78 100 PERCENTAGE 22% 78% 100%

90% 80% percentage of respondents 70% 60% 50% 40% 30% 20% 10% 0% Yes No Yes No

Interpretation: From the above data it is observed that only 22% of customer avail appreciation from bank for being a good customer and remaining 78% customers said that they dont get any kind of appreciation from the bank.


3.9 How do you come to know about the scheme and services of the Co-operative bank? PARTICULARS Personal visit Advertisement Words of mouth Others TOTAL NO.OF.RESPONDENT 51 13 24 12 100 PERCENTAGE 51% 13% 24% 12% 100%

60% 50% percentage 40% 30% 20% 10% 0%

Pe rs on al Ad vis ve it r ti se W m or en ds t of m ou th Ot he rs

Personal visit Advertisement Words of mouth Others


Interpretation: Data shows that 51% of the respondents from the Cooperative Bank come to know about the schemes and services of the bank by visiting personally. 24% by the words of mouth, 13% from the advertisement and remaining 12% from the other source come to know about the schemes and services of the bank.


3.10 Do you agree that image of bank has its influence on the customers? PARTICULARS Agree Disagree TOTAL NO.OF.RESPONDENT PERCENTAGE 58 42 100 58% 42% 100%

70% 60% 50% 40% 30% 20% 10% 0% Agree Disagree Agree Disagree

Interpretation: Majority of the respondents from Cooperative Bank that image or brand of the bank has its influence on customers. 58% of respondents out of 100 are agreed that customer consider the brand of the bank while going for the banking. It can be interpreted that it might influence the decision of customers and prospects.


3.11 What is your perception about different schemes and services offered by Co-operative Bank?

PARTICULARS Lucrative Non Lucrative No idea TOTAL

No. of PERCENTAGE respondents 25 60 15 100 25% 60% 15% 100%

70% 60% 50% 40% 30% 20% 10% 0% Non Lucrative Lucrative No idea Lucrative Non Lucrative No idea

Interpretation From the table and graph above it can be seen that 25% respondents perception about different products is lucrative. 60% respondents perception about different products is not lucrative. Remaining 15% respondents has no idea.


3.12 Do you think that Computerized Banking is essential for modern banks?

PARTICULARS Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree TOTAL

NO.OF.RESPONDENT 02 09 17 29 43 100

PERCENTAGE 2% 9% 17% 29% 43% 100%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

St ro ng So ly m D is ew ha agr ee tD isa gr ee So N m ew eut ra ha tA l St gr ro ee ng ly Ag re e


Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

Interpretation Major part of the Cooperative bank agrees and strongly agrees to the need of computerized system in the bank. Cooperative bank still using the manual books for accounts instead of computerized banking.


3.13 Do you think customer differs in his perception for a Government bank and Private bank? PARTICULARS Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree TOTAL NO.OF.RESPONDENT 0 9 31 40 20 100 PERCENTAGE 0% 9% 31% 40% 20% 100%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Neutral Strongly Disagree Somewhat Disagree Somewhat Agree Strongly Agree


S trongly Dis agree S om ewhat Dis agree Neutral S om ewhat A gree S trongly A gree

Interpretation: Majority of the respondents from the Cooperative bank agree that customer differ in his perception for a govt. bank and private bank. 40% of customers are agreed on this statement and no customer is disagreeing regarding this and 31% have neutral advice about this statement.


3.14 What are the weak points of the Central Co-operative bank facility? PARTICULARS No Online Facility No ATM Facility Low interest Rate TOTAL NO.OF.RESPONDENT 54 19 27 100 PERCENTAGE 54% 19% 27% 100%

60% 50% 40% percentage 30% 20% 10% 0% N o N o A TM L o w O n lin e F a c ilit y in t e re s t F a c ility R ate N o O n lin e F a c ilit y N o A TM F a c ilit y L o w in te re s t R a t e

Interpretation: Among the 100 respondents, 54% respondents say that the weak point of cooperative bank is that, it is not online, 19% say that it does not provide ATM facility and remaining 27% respondents say that it provides low interest rates.


Findings Conclusions and Recommendations


Majority of the customers are belong to the age category above than 35 and less number of customer belongs to age category 18 to 23. Majority of the customer of Cooperative bank are male, only 28% customers are female. Majority of customer from Cooperative bank belong to agricultural background. The reason behind, it is that cooperative bank is a rural bank. Most of the customers consider banking as a saving scheme thats why majority of customers having saving account in the cooperative bank. The majority of the customers have taken loan from cooperative bank. 63% of the respondents have taken loan from this bank. The reason may be the Cooperative bank as a main rural lending bank and it has majority of farmers customer and remaining 37% customers said that they dont have taken any loan from this bank. Majority of the respondents from the Cooperative Bank come to know about the schemes and services of the bank by visiting personally. Cooperative bank is lacking in its advertisement. Word of mouth is also a information source. Reason may be interpreted that bank do not pay attention to advertisement and also the customer prefer to visit the bank personally for the detail of banking services offered. Most of the customer of Cooperative Bank is from agriculturist background so that half yearly interest of rate is preferred, because of their crop cycle. Salaried employee and businessman preferred to pay monthly rate of interest. 51% of the respondents preferred half yearly interest of rate and only 13% preferred yearly interest of rate. Less no of respondents from Cooperative bank says that they have received positive appreciation from the bank for being a good customer, while the majority denies it. There is a set of procedure in the bank that if you are a good customer as you timely pay your installment and interest, you will get some rebate in the percentage of interest but there is no such procedure in the Cooperative bank.


Majority of the respondents from Cooperative Bank that image or brand of the bank has its influence on customers. 58% of respondents out of 100 are agreed that customer consider the brand of the bank while going for the banking. It can be interpreted that it might influence the decision of customers and prospects

Majority of the respondents have non lucrative perception about the schemes and services of Cooperative Bank and 15% customers have no idea about this.. Essentiality of computerized bank is agreed by the cooperative bank customer because Cooperative bank still using the manual books for accounts instead of computerized banking. Majority of the customer agree that whatever it is a Government Bank and Private Bank, customer perception is different about the both type of bank. The reason may be interpreted that the customer feels that there is a genuine difference between a govt. bank and a Private bank regarding the services, rate of interest, infrastructure and other factors. Majority of the respondent said that the most weak point of Cooperative bank is that it is not online and other said weak point it has low interest rate.


CONCLUSION The project was undertaken to analyze the customer perception towards the Cooperative Bank. The study concludes that Cooperative Bank, which was established mainly for the services of rural sector, still is not the line to its goal. It is lacking at its various elements, particularly at the branch levels, which reveals the edge of other public and private sector bank over the Cooperative Bank, the line at which the bank is lacking behind. Indiscipline and lack of commitment in this bank makes people trust in the cooperative sector and casualty. Some of the Cooperative Banks are forward looking and have developed sufficient core competencies to challenge state and private banks. But there is shortage of staff in some Cooperative Banks and the traditional manual banking which is affecting the business and customer service. People are still unaware of the services provided by cooperative bank due to lack of advertisement. In this way, by keeping in mind the certain shortcomings, appropriate measures to overcome should be adopted. So that the real purpose of the Cooperative Bank must be realized with the competitive advantage and the gap between the customer perceptions of the Cooperative Bank.


RECOMMENDATIONS More mass awareness campaign should be organized to in order to enhance market share of bank. So bank should concentrate on its advertisement itself. Bank should refocus on its interest rate as responded by people. Periodic review of the interest should be done. There should be computerized system in the bank as it will reduce the time wastage of manual work and will lead to the better performance in the bank. Training of employee should be there to meet the needs of the time. Proper posting of staff should be done. Customer satisfaction must be top priority of the bank. Maximum practical exposure should be provided to the job trainees so that they may handle the various queries of the customers efficiently. Communication gap within the bank and the head office should be reduced. Online facility should be provided by the cooperative bank to the customers. Bank is also advise to have proper internal control measure for monitoring its functions and transactions.



PHILIP KOTLER, MARKETING MANAGEMENT C.R.KOTHARI, Research Methodology, Vishaka Prakashan, New Delhi, 1990. Banking law and practice, P.N Varshney, Sultan Chand and sons, Valarie Z, Mary B. 4th edition Services Marketing Chapter 2 Theory of Gap: Tata McGraw-Hill


QUESTIONNAIRE Dear Respondent, I would be extremely thankful if you spare some time in answering the following questions. All the facts disclose by you will be used for academic purpose only. Personal Details:a) Name
b) Address c) Gender d) Age

_________________________________ _________________________________ _________________________________ ________________________________

e) Occupation Business Farmers Job holder Other

Q1. According to you Banking is? a) A saving scheme with good return b) Money security c) A financial security for the family d) All the above


Q2. Which type of account do you have? Please tick.


Saving account Both

b) Fixed deposit
c) d) Others

Q3. Have you taken ever any loan from this bank?
Yes NO

Q4. Which type of interest rate do you prefer?

Yearly Half yearly Monthly

Q5. Do you avail any appreciation from this bank for being a good customer? Yes

Q6. How do you come to know about the schemes and services of coop bank?
a) b) c)

Personal visit Advertisement Words of mouth Other


Q7. Do you agree that image of the bank has its influence on the customers?
Agree Disagree


Q8. What is your perception about different schemes and services offered by Co-operative bank?
Lucrative Non lucrative No idea

Q9. Do you think that computerized banking is essential of modern banks?

a) Strongly Disagree b) Somewhat Disagree c) Somewhat Agree d) Neutral f) Strongly Agree

Q10. Do you think customer differs in his perception for a Government bank and Private bank?
c) Strongly Disagree d) Somewhat Disagree c) Somewhat Agree d) Neutral g) Strongly Agree

Q11. According to you what are the weak points of Central Cooperative bank facility?
a) Not Online facilities b) Not ATM facility c) Low interest rate d) All the above e) No any weak point

Q12. Any suggestion for CENTRAL CO-OPERATIVE BANK. ______________________________________________________ _____________________________________________________ _


Thank you for sparing your valuable time