A

SUMMER TRAINING PROJECT REPORT (CP-303)

ON
‘‘PERCEPTION OF CUSTOMERS TOWARDS KCC
BANK”
CONDUCTED AT KCC BANK LTD. DHARMSALA
Submitted in the Partial Fulfillment for the Requirement of
the
Award of Degree
Of
MASTER’S OF BUSINESS ADMINISTRATION (MBA)
SESSION (2016-2018)
KURUKSHETRA UNIVERSITY KURUKSHETRA

Under the Guidance of: Submitted By:

RAJESH CHAUDHARY ANKIT
Assistant Manager College Roll No. 73161214
University Roll No.

1
 CERTIFICATE

It is certified that project entitled “A PROJECT REPORT ON A STUDY OF

CUSTOMER SATISFACTION FOR SERVICES PROVIDED BY KCC BANK”
done by MR ANKIT during period of his study guidance & that the summer training
report has not previously formed the basis for the award of MBA degree.

MRS KAMALPREET KAUR

(Assistant Professor)
Faculty of Management

2
 DECLARATION

I, ANKIT hereby declare that the project entitled “A PROJECT REPORT ON

PERCEPTION OF CUSTOMER TOWARDS KCC BANK” Conducted at KCC
BANK LTD., DHARAMSHALA, during my summer training for the partial
fulfillment of MBA degree from Kurukshetra University, Kurukshetra . It is the
original work done by me and the information provided in the study is authentic to the
best of my Knowledge.

………………………
(Signature of Student)
ANKIT

3
 ACKNOWLEDGEMENT

I would like to express my deep appreciation and gratitude to those who have made
the project report possible through direct and indirect cooperation.

It is my first and foremost duty to thanks for permitting me to carry out the project
in KCC bank and their encouragement for the same. I express my deepest sense of
gratitude to internal guide MRS KAMALPREET KAUR for their valuable
guidance, inspiration and constant encouragement throughout this endeavor.

I would like to extend my sincere thanks to advances department for giving me this
opportunity to undertake this project.

Also I feel indebted to all the senior staff members of the advances department for
sparing some useful time to help me out in this project.

ANKIT

4
 PREFACE
The submission of a six weeks project report is a part of the MBA programme at
Galaxy Global Group of Institutions Dinarpur. It is a result of a six week study
conducted at KCC BANK, Branch office DHEERA head office Dharamshala.

MBA is stepping-stone to management career. In order to achieve practical, positive

& concentrate results the classroom learning needs to be effectively needy to the
realities of the situation existing outside the classroom.

To develop healthy managerial & administrative skills in the potential managers, it is

necessary that theoretical knowledge must be supplemented with exposure to the real
environment. Actually it is life for a management. It is in the practical training that
the measuring of management itself is realized.

I took my training in a well known & reputed organization. I have done my project
on the topic of “A STUDY OF CUSTOMER SATISFACTION FOR SERVICES
PROVIDED BY KCCB”.

5
TABLE OF CONTENTS

Sr. No. Chapter Topic Page No.

Training Certificate I

Certificate II

Declaration III

Acknowledgement IV

Preface V

1 Chapter-I Introduction
01-10

Industry profile
and Company
11-38
2 Chapter-II profile
3 Chapter-III Research
methodology 39-43

Chapter-IV Analysis&
4 Interpretation 44-57

Findings
Suggestions

5 Chapter-V Conclusion
Bibliography
Annexure 58-66

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 Chapter 1

Introduction of Topic

7
SERVICES AND CUSTOMER SATISFACTION

SERVICES
A Service is an economic activity that is intangible or not be touched, not be stored,
and not be owned. Postal service delivering mail is a Service, and the use of expertise
like person visiting a doctor is also a service. A service is consumed at the point of
sale and does not result ownership.
A product is material or tangible in nature, can be touched, can be stored, and a
product can also be owned, but it is not so in case of a service.

Nature of Service

1. Lack of Ownership
One cannot own or store a service as it can be done in case of a product. Service is
consumed at the point of sale and does not result ownership. Services are used or
hired for a period of time. For example buying a movie ticket the service lasts for two
or three hours, but customer want and expect complete entertainment and excellent
service for that time period.
2. Intangible
Services are intangible in nature, you cannot touch it, cannot see it, cannot taste it.
You cannot touch or hold a service as you can do with a product. For example one
cannot touch or hold the services provided by his financial adviser. This makes it
difficult to evaluate the quality of service prior to consuming it since there are fewer
attributes of quality in comparison to a product.
3. Inseparable
Service is inseparable in nature means to say that it cannot be separated from the
service provider. A product when produced can be taken away from its producer
whereas a service is produced at or near the point of purchase. For example visiting a
restaurant, you order your meal, wait for the meal, meal delivered to you and services
provided by waiter/waitress are all part of service production process and is
inseparable.

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4. Perishable
Service last for specific time period, it cannot be stored as like a product for future
use. Service production and utilization goes simultaneously. For example watching a
movie in cinema hall, service will only last the duration of the show. Again because
of this time constraint consumers demand more.

5. Heterogeneous
It is very difficult to make each service experience identical, for example you
travelling by plane the service quality may differ from the first time you travelled by
that airline to the second, because the air hostess is less or more experienced. Systems
and procedures are followed in service production process to minimize this
heterogeneity and to provide consistent services all the time.

CUSTOMER SATISFACTIONS

Customer satisfaction is a term used to describe a scenario when an exchange meets

the needs and expectations of its user. It captures the provision of goods or services
that fulfil the customer’s expectations in terms of quality and service in relation to the
price paid. Customer satisfaction, as a business term, can also be used to measure how
the supply of products or services surpasses customer expectations.

CUSTOMER
FEEDBACK

COUSTOMER
PROPETTY
FOCUS

TIME
SUPPLY

SPECIAL
CUSTOMER REQUIREMENT
OF CUSTOMER

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Here are the top six reasons why customer satisfaction is so
important:

 It’s a leading indicator of consumer repurchase intentions and loyalty

 It’s a point of differentiation
 It reduces customer churn
 It increases customer lifetime value
 It reduces negative word of mouth
 It’s cheaper to retain customers than acquire new ones

1. It’s a leading indicator of consumer repurchase intentions and

loyalty

Customer satisfaction is the best indicator of how likely a customer will make a
purchase in the future. Asking customers to rate their satisfaction on a scale of 1-10 is
a good way to see if they will become repeat customers or even advocates.

2. It’s a point of differentiation

In a competitive marketplace where businesses compete for customers; customer

satisfaction is seen as a key differentiator. Businesses who succeed in these cut-throat
environments are the ones that make customer satisfaction a key element of their
business strategy.

3. It reduces customer churn

Customer satisfaction is the metric you can use to reduce customer churn. By
measuring and tracking customer satisfaction you can put new processes in place to
increase the overall quality of your customer service.I recommend you put an
emphasis on exceeding customer expectations and ‘wowing’ customers at every
opportunity. Do that for six months, than measure customer satisfaction again. See
whether your new initiatives have had a positive or negative impact on satisfaction.

10
4. It increases customer lifetime value.

Satisfaction plays a significant role in how much revenue a customer generates for
your business.

Customer lifetime value is a beneficiary of high customer satisfaction and good

customer retention. What are you doing to keep customers coming back and spending
more?

5. It reduces negative word of mouth

McKinsey found that an unhappy customer tells between 9-15 people about their
experience. In fact, 13% of unhappy customers tell over 20 people about their
experience.

That’s a lot of negative word of mouth.

How much will that affect your business and its reputation in your industry?

Customer satisfaction is tightly linked to revenue and repeat purchases. What often
gets forgotten is how customer satisfaction negatively impacts your business. It’s one
thing to lose a customer because they were unhappy. It’s another thing completely to
lose 20 customers because of some bad word of mouth.

To eliminate bad word of mouth you need to measure customer satisfaction on an

ongoing basis. Tracking changes in satisfaction will help you identify if customers are
actually happy with your product or service.

6. It’s cheaper to retain customers than acquire new ones

This is probably the most publicized customer satisfaction statistic out there. It costs
six to seven times more to acquire new customers than it does to retain existing
customers.

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If that stat does not strike accord with you then there’s not much else I can do to
demonstrate why customer satisfaction is important.

Customers cost a lot of money to acquire. You and your marketing team spend
thousands of dollars getting the attention of prospects, nurturing them into leads and
closing them into sales.

Why is it that you then spend little or no money on customer retention?

Imagine if you allocated one sixth of your marketing budget towards customer
retention. How do you think that will help you with improving customer satisfaction
and retaining customers?

Here are some customer retention strategies to get you thinking:

 Use blogs to educate customers

 Use email to send special promotions
 Use customer satisfaction surveys to listen
 Delight customers by offering personalized experiences

What are you doing to measure customer satisfaction and identify unhappy
customers?

Customer satisfaction plays an important role within your business. Not only is it the
leading indicator to measure customer loyalty, identify unhappy customers, reduce
churn and increase revenue; it is also a key point of differentiation that helps you to
attract new customers in competitive business environments.

I hope this blog post has shed light on why customer satisfaction is so important to the
success of your business.

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Measuring Customer Perception in the Banking Industry

Customer satisfaction is difficult to measure due to several reasons. Counting on

customer satisfaction owing to their feedback is not the case because most people
prefer keeping quiet when satisfied.

Some people see no need of contacting the service provider while others seek to pass
their complaints.

Requirements for customer satisfaction are not only unique but difficult to quantify.
Setting standards and improving employee relationships with customers is central
strategy of measuring customer satisfaction and ensuring that success is determined.

Ways of measuring customer satisfaction include:

Survey customers

Surveying customers is the only probable way of getting customer feedback unless
they contact you.

Most people are busy and have no time to pass redress.

You can provide survey through several ways such as emails and use of phone calls.

To get credible feedback you need to allow customers to answer questions on

weighted scale.

You can conduct repeated surveys, over time, to measure changing comments from
customers.

Understand expectations

Understanding what customers expect from you will provide ground to satisfy their
expectations by giving them enjoyable service.

13
Making an effort to discover what customers expect from you in terms of service and
products is the way to satisfying their needs.

Find out where you are failing

On situations where you are not fulfilling customer requirements, it is credible to find
out where you are failing.

Incidences where products are less than advertised should not arise.

Find out if employees are making promises that cannot be met.

Take strides and attend seminars that will equip you with better managerial skills.

Know the chain of communication so as to know where communication faults are and
foster amendments.

Pinpoint specifics

Whether a customer is satisfied or not, you need to collect information to help you
assess the situation.

Collect information about what customers purchased, what they liked and they did not
like, their actual purchase expectation and their suggestions for improvement.

Assess the competition

Have the initiative to know why customers consider other brands above yours.

Through the survey, invite customers to come and compare and contrast your services
and products and make judgment on what you are not offering.

Try to measure the emotional aspect

Customer experiences after buying a given product are attributed to quality.

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Feedback from customers in relation to quality, reliability and extent satisfaction
should be matched.

Comments customers make are a measure of their satisfaction.

Customers showing dissatisfaction prompts change of strategy.

Loyalty measurement

Customer loyalty is the likelihood of repurchasing products or services.

Customer satisfaction is a major predictor for repurchasing and it is influenced by

explicit performance of the product, value and quality.

Loyalty is basically measured when a customer recommends to a friend, family

member about given product.

Overall satisfaction, repurchasing and likelihood of recommending to a friend are

indicators of customer satisfaction.

A series of attribute satisfaction measurement

This strategy takes into account the affective and cognitive pattern.

Affective behavior is intrigued to liking and disliking owing the benefits the product
is attached with.

Customer satisfaction is influenced by perceived quality the product is attached with

and it is regulated by expectations of the product or service.

Customer attitude towards a product are as a result of product information through

advertisement and any experience with the product whether perceived or real.

Cognition is the judgment on whether the product is useful or not useful.

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Judgment is always intended use of application and use of occasions for which the
product is purchased.

Intentions to repurchase

Future hypothetical behavior that indicates repurchasing the product is a measure of

satisfaction.

Satisfaction can influence other post purchasing trend through use of the word of
mouth or social media platform.

Monitoring

Monitoring can be directed at phone, email and chat communications.

Monitoring includes automated phone interactions designed by companies to help

give real world glimpse.

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 Chapter 2

Industry profile & Company profile

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 INDUSTRY PROFILE
Banking in India, in the modern sense, originated in the last decades of the 18th
century. Among the first banks were the Bank of Hindustan, which was established
in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786
but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank
of Bengal. This was one of the three banks funded by a presidency government, the
other two were the Bank of Bombay in 1840 and the Bank of Madras in 1843. The
three banks were merged in 1921 to form the Imperial Bank of India, which upon
India's independence, became the State Bank of India in 1955. For many years the
presidency banks had acted as quasi-central banks, as did their successors, until the
Reserve Bank of India] was established in 1935, under the Reserve Bank of India Act,
1934.
In 1960, the State Banks of India was given control of eight state-associated banks
under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its
associate banks. In 1969 the Indian government nationalised 14 major private banks,
one of the big bank was Bank of India. In 1980, 6 more private banks were
nationalised. These nationalised banks are the majority of lenders in the Indian
economy. They dominate the banking sector because of their large size and
widespread networks.
The Indian banking sector is broadly classified into scheduled banks and non-
scheduled banks. The scheduled banks are those included under the 2nd Schedule of
the Reserve Bank of India Act, 1934. The scheduled banks are further classified into:
nationalised banks; State Bank of India and its associates; Regional Rural Banks
(RRBs); foreign banks; and other Indian private sector banks. The term commercial
banks refers to both scheduled and non-scheduled commercial banks regulated under
the Banking Regulation Act, 1949.
Generally banking in India is fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India

18
expanding its branch network and through the National Bank for Agriculture and
Rural Development (NABARD) with facilities like microfinance.
The Banking Regulation Act 1949 defines banking as accepting the purpose of
lending or investment, of deposits of money from the public, repayable on demand or
otherwise and withdraw able by cheque, draft, order otherwise. The essential function
of a bank is to provide services related to the storing of value and the extending credit.
The evolution of banking dates back to the earliest writing, and continues in the
present where a bank is a financial institution that provides banking and other
financial services. Currently the term bank is generally understood an institution that
holds a banking license. Banking licenses are granted by financial supervision
authorities and provide rights to conduct the most fundamental banking services such
as accepting deposits and making loans. There are also financial institutions that
provide certain banking services without meeting the legal definition of a bank, a so
called non-bank. Banks are a subset of the financial services industry. The word
“Bank” is derived from the Italian word ‘banco’ signifying a bench, which was
erected in the market place, where it was customary to exchange money; the first
bench having been established in Italy A.D. 808. The basic functions of banks are to
accept deposits, lend money and act as collecting and paying agents. The Bank of
Barcelona in Spain (1401) was perhaps the first institution that could be called a bank
in this sense. The terms bankrupt and "broke" are similarly derived from banca rotta,
which refers to an out of business bank, having its bench physically broken. Money
lenders in Northern Italy originally did business in open areas, or big open rooms,
with each lender working from his own bench or table. Typically, a bank generates
profits from transaction fees on financial services or the interest spread on resources it
holds in trust for clients while paying them interest on the asset.

INDIAN BANKING SYSTEM

The Reserve Bank of India (RBI) is India's central bank. It is the sole authority for
issuing bank notes and the supervisory body for banking operations in India. It
supervises and administers exchange control and banking regulations, and administers
the government's monetary policy. It is also responsible for granting licenses for new
bank branches. Though the banking industry is currently dominated by public sector

19
 banks, numerous private and foreign banks exist. India's government-owned banks
dominate the market. Their performance has been mixed, with a few being
consistently profitable. Several public sector banks are being restructured, and in
some the government either already has or will reduce its ownership.

Private and foreign banks

The RBI has granted operating approval to a few privately owned domestic banks; of
these many commenced banking business. Foreign banks operate more than 150
branches in India. The entry of foreign banks is based on reciprocity, economic and
political bilateral relations. An inter-departmental committee approves applications
for entry and expansion.

Company profile

History of KCC BANK

1. Came into existence on 17th March 1920 (License No. RPCD.09/2009-10).
2. Indora Banking Union was merged and 2nd Branch of the Bank opened at Nurpur in
Jan’1956
3. Palampur Banking Union was merged and 3rd Branch of the Bank opened at
Palampur in Jan’1957
4. Nanaon Banking Union was merged and 4th Branch of the Bank opened at Hamirpur
in Oct’1958
5. The Bank suffered losses because of the partition in 1947 to the tune of Rs.10.64 Lacs
6. In Mar 1962, the bank suffering from the setback of partition was granted Rs.4.09
Lacs by the Govt.
7. Govt also provided Interest Free Relief Loan of Rs.3.98 Lacs and Govt of India Loan
of Rs.4.97 Lacs @ 3.87% in 1962 In 1971-72
8. The Bank entered into the deposit mobilisation scheme of Pong Dam Area
aggressively and secured maximum share of Deposit Bank Deposits increased from
Rs. 256 Lacs in 1971-72 to Rs. 1054 Lacs in 1973-74.

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VISION OF KCC
1. To become one of the leading banking corporation.
2. To provide such banking services to its customer which can worth their
money.

ORGANISATION HISTORY
The kangra Cooperative Ltd. started in a very humble way as a small credit society in
March 1960 by a few friends of Distt. Kangra of Himachal to help out the people of
Himachal residing in Delhi to uplift their economic conditions and tide over the
financial hardships.
Dedication sincerity and honesty of these members brought rich fruits and this credit
society grew up into a big society with in 12th years after its information and
successful running was converted in to primary urban cooperative bank in 1972 by
RBI.
After this it was permitted to carry out banking activities including acceptance of
deposits from public by opening their saving, current and RD accounts.23years their
from in June 1995 it was granted a license to carry out the banking business by the
Reserve Bank Of India.

“OVERVIEW OF KCC AS BANKING INDUSTRY”

The Kangra Cooperative Bank Ltd. started in a very humble way as a small
Thrift/Credit Society in March, 1960 by a few friends of Distt. Kangra of Himachal to
help out the people of Himachal residing in Delhi to uplift their economic conditions
and tide over the financial hardships. Dedication, sincerity and honesty of these
members/associates brought rich fruits and this Thrift/Credit Society grew up into a
big society within twelve years after its formation and successful running was
converted into a primary urban Cooperative Bank in 1972 by RBI and was permitted
to carry out banking activities including acceptance of deposits from public (non-
members) by opening their Saving, Current and RD A/c’s. Twenty three years there
from in June 1995 it was granted a license to carry out the banking business by the
Reserve Bank of India . Thereafter, it was granted license to open branches and
consequently eight more branches were added in February, May, December 1996,

21
June 1998 ,October 2008, July 2009 , April 2014 and the last one in July 2014. In
may 1970 it purchased Paharganj building and reconstructed the same in 1993. In
October, 1997 it purchased the present premises at Janakpuri to set up administrative,
arbitration and recovery department and HO. Central accounts and Personnel
department are functioning from this building. It has a meeting room. One branch
also function here. The main branch along with its service branch, is situated in its
own three storied building at Paharganj. It purchased another Building in April 2008
At Jagatpuri where its one of the existing Branches has already been functioning. It
has a board meeting room. The latest audited financial position of the bank as on
31st March, 2017 is as follows:-
 Membership 41459
 Clientele other than members 136594
 Share money 31.08 crore
 Reserve/Other funds 62.61 crore
 Working Capital 1046.57 crore
 Deposits 924.22 crore
 Advances 493.40 crore
 Net Profit Before Tax 14.16 crore
 Net Profit After Tax 9.58 crore
 Net NPA 2.19%
 CRAR 12.51%

Bank enjoys Grade ‘A’ audit classification since long. Govt. of NCT of Delhi gave to
the Bank "Best Bank Award" for the years 2004-05, 2007-08, 2009-10 and 2011-12.
AGBM and elections, audit etc are held on regular intervals. Bank is giving dividend
to its Share-holders regularly and lastly declared @ 18% the highest declared/paid so
far. Bank has also introduced three schemes of welfare nature for its shareholders .
First one is If from the membership of the Bank existing as on 31.12.2013, any
member dies, his nominee will be given a death grant of Rs. 25000/- from Member
Welfare Scheme and if he has taken any loan, then loan amount up to Rs. 75000/- will
be exempted from interest. Any member enrolled after 31.12.2013 if dies before
attaining a membership of ten years, his nominee will be given a death grant of Rs.

22
15000/- from Member Welfare Scheme and loan up to Rs. 50,000/-, if taken, will be
exempted from interest. Any member enrolled after 31.12.2013 if dies after
completing membership of ten years, his nominee will be given a death grant of Rs.
25000/- from Member Welfare Scheme and loan up to Rs. 75000/-,if taken, will be
exempted from interest, the second one is where scholarship @ Rs.150/- and Rs.200/-
per month is given to the brilliant wards of the members and staff and the the third
one is to give one time incentive to those wards of members / staff who get 90 %
marks in Board examination. Amount of incentive is Rs.3100/- and Rs.5100/- for 10th
and 12th class respectively.
All the branches are fully computerized with CBS. The implementation of CTS,
NEFT/RTGS, ATM have already been done .Board of Directors has also prepared a
“Vision Document” for 2014-15 to 2016-17 according to which various targets have
been fixed.
 Membership has been planned upto 41000
 Efforts will be made to maintain the highest percentage of dividend
 Clientele 1.40 lacs
 Share Money upto 30 crores
 Deposits to increase 850 crores from 548 crores
 Advances to increase 560 crores from 355 crores.
 To increase working capital from Rs. 635 cr. to Rs. 1000 cr.
 To increase the Net Worth of the bank to Rs.55 crores
 ATM Card Holders Upto 15000
 To purchase two buildings
 To be eligible for scheduled status
 To computerize HO and CRD
 To open two branches.
 To strengthen HO working
 To get "A" RBI inspection rating
 To hold minimum two customer meetings in a year, six in three years in
different parts
 To open onsite ATMs in all branches
 To make customer service quick and satisfactory
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  To arrange minimum two lectures in a year on important topics such as
investments, NPA, customer service, credit appraisal, KYC norms, CRAR,
ALM, Internal Control, Profitability etc.
 To maintain net NPA 0% and gross NPA not more then 4.5%

All the branches of the bank remain open for six days a week with full day banking
service on Saturday. For the convenience of its customers it is having agency
arrangement with HDFC Bank which enables the bank to issue Demand Drafts on
HDFC branches across the country, to arrange collection of out-station cheques within
a week or ten days. Bank is also maintaining C-SGL A/c with HDFC and also
participates in the non-competitive bids of RBI for the purchased of Govt. Securities.
For its employees bank has introduced several good schemes like cover of mediclaim
insurance, covering expenses upto 3.00 lacs requiring hospitalization of the
employee, his or her spouse & upto two childrens. Facility of housing loan upto
fifty lacs is also available for the staff.
It has in place well defined service rules which ensures career growth to its
employees. It also celebrates annual day in which awards for best branch, workers
etc. are also given.
In order to improve the knowledge of the staff guest lectures are also arranged on
important topics related to the banking activities from time to time.

Deposit Product

Saving Product Interest Type Payable Frequency

Saving Bank Account Compounded Half Yearly

Fixed Deposit Simple Monthly/Quarterly/Half Yearly/On Maturity

Term Deposit Compounded Monthly/Quarterly/Half Yearly/On Maturity

Recurring Deposit Compounded Monthly

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In case of Fixed Deposit Schemes, the customer has the option to withdraw the
Interest Amount as per the agreed frequency. In case of Term Deposit & Recurring
Deposit Schemes the Total Matured Amount will be payable on maturity only with a
option to discontinue the Deposit subject to penal clauses.

Interest Rates on Deposits w.e.f. 01.01.2017

Deposit Scheme Public Societies Senior Citizen

(%) (%) (%)

Saving Bank Account 4.00% 4.00% 4.00%

Term/Fixed Deposits

7 days to 14 days 4.50 4.50 4.50

15 days to 45 days 5.00 5.00 5.00

46 days to 90 days 6.00 6.00 6.00

91 days to 364 days 6.50 6.50 6.50

1 year to less than 2 years(365 days to 729 6.50 7.00 7.00

days)

2 years to less than 3 years(730 days to 6.45 6.95 6.95

1094 days)

3 years to less than 5 years(1095 days to 6.00 7.00 6.50

1824 days)

5 years to less than 10 years 6.00 7.00 6.50

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 Recurring Deposit

1 year to less than 2 years 6.50 7.00 7.00

2 years to less than 3 years 6.45 6.95 6.95

3 years to less than 5 years 6.00 7.00 6.50

5 years to less than 10 years 6.00 7.00 6.50

Loan Products

Co-Op. Societies Individuals

Agriculture Agriculture

Non Farm Sector Non Farm Sector

Personal Vehicle Personal Vehicle

Weavers/Industrial/Housing Housing

Cash Credits Cash Credits

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Interest Rates on Loans & Advances w.e.f 08.03.2017

THE KANGRA CENTRAL COOP BANK LTD H.O. DHARAMSALA

INTEREST RATE ON LOAN & ADVANCES – 08.03.2017

S.No Scheme / Product SOCIETY PUBLIC

1 KISAN CREDIT CARD

UP TO RS.300000 6.00% 7.00%

ABOVE RS.300000 6.00% 10.500%

2 MT AGRICULTURE &
ALLIED ACTIVITY(ALL
AGRICULTURAL
RELATED ACTIVITIES)

UP TO RS.50000 9.75% 10.25%

ABOVE TO RS.50000 10.00% 10.50%

3 MT Dairy

UP TO RS.50000 9.50% 9.75%

ABOVE RS.50000 10.00% 10.25%

4 TRACTOR/Farm 10.25%
MECHNIZA/IRRIGATION

5 SHORT TERM LOAN 10.50% 11.00%

OTHER PURPOSES

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6 TERM LOAN SHG

UP TO RS.50000 10.50%

Rs.50001 TO Rs.200000 10.50%

ABOVE RS. 200000 10.50%

7 CCL SHG

UP TO RS.50000 10.50%

Rs.50001 TO Rs.200000 10.50%

ABOVE RS. 200000 10.50%

8 PERSONAL LOAN 12.00%

9 CONSUMER LOAN 11.50%

10 GCC LOAN 12.00%

11 ECC LOAN 12.00%

12 COMPUTER LOAN 12.00%

13 LOAN AGAINST 10.50%

PROPERTY

14 LOAN AGAINST FIXED 1% above the 1% above the rate of

DEPOSIT rate of interest interest of deposit
of deposit

15 SECURED LOAN TO 1% above the 1% above the rate of

INDIVIDUAL rate of interest interest of deposit
of deposit

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16 SECURED LOAN TO At par
STAFF

17 CC PDS

UP TO RS.100000 10.75% 11.50%

18 ABOVE RS.100000 11.00% 12.00%

CC FERTILIZER

UP TO RS.100000 10.75% 11.50%

ABOVE RS.100000 11.00% 12.00%

19 CC FOR WEAVERS

UP TO RS.100000 10.75% 11.50%

ABOVE RS.100000 11.00% 12.00%

20 CC HYPO TO
INDIVIDUAL

UP TO 1000000 11.75%

1000001 TO RS 4000000 12.00%

ABOVE 40 LAKH 12.00%

21 CC TO SOCIETIES
OTHER PURPOSE

UP TO RS.100000 10.75%

ABOVE RS.100000 11.00%

29
 22 CC ORCHARD
TOINDIVIDUAL

UP TO 1000000 10.50%

1000001 TO RS 4000000 10.75%

Service Charges

SERVICE CHARGES AS APPLICABLE W.E.F 18.10.2017 (Excluding Bank

Staff – Including Retired Members of Staff & Govt.Accounts)

All Service Charges are inclusive of Service Tax and Education Cess

Serial Service Charges for the Customers

No.

1 Outstation Cheque Collection

i Upto Rs. 10000/- Rs.55/-

ii Rs10001/- to Rs. 100000/- Rs.110/-

iii Above Rs.100000/- Rs.165/-

2 Collection of Bills

i Upto Rs. 10000/- Rs.100/-

ii Above Rs. 10001/- Rs. 10/- per Rs. 1000/-or part

thereof,Minimum Rs 125/- &
Maximum Rs 30000/-

Note: Actual Postage/Out of pocket Expenses will be charged extra.

30
3 Handling Charges for Cheques / Bills return unpaid

Local Cheques / Bills Rs 75/- per cheque for SB

accounts.

Rs 100/- per cheque for other

than SB accounts.

Outstation Cheques/Bills Rs 150/- for all the accounts.

Note : The above charges are to be realized under intimation to the party on a/c
of insufficient fund. Postage to be realized extra.

4 CLOSURE OF ACCOUNTS

i Saving Bank a/c with cheque Book Rs 150/-

ii Saving Bank a/c without cheque Book Rs 100/-

iii Current Accounts Rs 250/-

5 Closure of R.D. Account Nil

Note : The Service Charges are to be levied if the A/c is closed within one year of
opening, except the following cases : a. Where Account is transferred to another
branch of the Bank. b. Opening of another A/c in joint names & c. Death of the
A/c holder.

6 Minimum Balance Criteria for Saving Bank Account

i SB A/c With Cheque Book Rs2000/-

ii SB A/c Without Cheque Book Rs 500/-

iii With Cheque Book for Senior citizen Rs100/-

31
iv SB No Frill A/c Nil

v SB Govt A/c Nil

Note: Minimum Balance charges will not apply to Member Society,

Staff a/c & Govt Accounts.

7 Minimum Balance Criteria for Current Account

i Individual Rs 5000/-

ii Others Rs 5000/-

Note: Minimum Balance charges will not apply to Member Society,

Staff a/c & Govt Accounts.

8 Penal Charges where Minimum Balance as mentioned at Sr. No 6 & 7 is

not maintained

i SB A/c With Cheque Book Rs 50/- per half year

ii SB A/c Without Cheque Book Rs 25/-per half year

iii Current A/c Individual Rs 100/-per half year

iv Current A/c Others Rs 150/-per half year

Note: Minimum Balance charges will not apply to Member Society,

Staff & Govt Accounts.

9 CHEQUE BOOK CHARGES FOR SB/CURRENT Accounts

i Saving Bank a/c 40 cheques leave free per year,

thereafter Rs. 2/- for additional
leaf.

32
ii Current A/c 60 cheques leave free per year,
thereafter Rs. 3/- for additional
leaf.

10 Charges for Issuing Demand Draft on HDFC, Axis Bank, ICICI BANK
& Branches of the Bank , Apex Bank , JCCB & Cash Orders

i For All DDs/Cash orders irrespective of Rs. 3/-per thousand or part

amount thereof Min Rs. 30/- & Max
Rs. 12500/-

ii For students DD up to Rs. 1000/- (Charges Rs.20/-

to be adjusted manually)

iii For students – admission fees , Rs30/-

examination fees from Rs1001/- upto Rs
5000/-(Charges to be adjusted manually)

iv For students DD Above Rs 5000/- Rs. 3/-per thousand or part

thereof Min Rs. 30/- & Max
Rs. 12500/-

Note : The issuance of drafts of educational Loan, Welfare services, Govt,

PM/CM Relief Fund, charitable and religious institution, defence personnel in
active services, Societies for PDS purpose are allowed at par, provided they have
account with us. While issuing DD(s) the BM is required to ensure due diligence
w.r.t security features / aspects.

11 Issuance of Duplicate Demand Draft/Cash

Order/Revalidation/Cancellation.

i Issuance of Duplicate draft/Cash 10% of the DD amount(

Order/Revalidation/Cancellation. Rounded upto nearest Rupees)
Maximum Rs 100/- only

33
12 Stop Payment Instructions Rs. 50/- Per Instrument

13 Loss of cheque Book SB / CA Rs50/-per cheque leaf for SB &

CA

14 Processing Charges for Term loans 0.50% of the sanctioned

upto Rs 1.00 Crore other than HBA amount subject to minimum of
Rs 500/-and maximum Rs
50000/-

15 (i) Processing Charges for Term loans 0.40% subject to minimum

above Rs One Crore upto 7.5 Crore Rs 50000/- and maximum
other than Govt. Rs300000/-

ii Processing Charges for Term loans 0.25% subject to minimum

above Rs 7.5 Crore other than Govt. Rs 300000/-

16 Processing Charges for New Cash 0.50% of the sanctioned

credit Limits amount subject to minimum of
Rs 500/- and maximum Rs
50000/-

17 Processing Charges for Renewal of 0.25% of the sanctioned

Cash credit Limits amount subject to minimum of
Rs 500/- & maximum of Rs
50000/-

18(i) Processing charges for HBA 0.50 % of the sanctioned

amount subject to minimum of
Rs 500/- & maximum of Rs
15000/-

18 (ii) Fees to be charged from borrower by Rs. 500/- per deed

the Nodal Branch for equitable
mortgage in case of House loan

34
 (Charges manually)

NOTE: No service charges will be levied on LAFD & Secured Loan

accounts.

19 Issue of duplicate FDR/ LTD (Charges Rs.50/-

manually)

20 Safe Custody Charges

i Scrip’s ( For Each Scrip) Rs. 150/- Per scrip per annum

ii Sealed Cover Boxes measuring not more Rs. 1500/-per annum

than 20 cm x 10 cm.

iii Banks own deposit No charges

21 Postal Charges

i Ordinary post Rs. 15/-

ii Courier / Regd post Rs. 35/-

NOTE: These postal charges vide Sr No 21 will be levied where Bank

actually incurred the expenditure & are to be charged manually.

22 Safe Deposit Lockers Charges

i Small Rs. 600/-per annum or part

thereof

ii Medium Rs. 900/-per annum or part

thereof

35
iii LARGE Rs.2000/-per annum or part
thereof

iv EXTRA LARGE Rs 4000/-per annum or part

thereof

23 Penalties for Locker Rent in Default

i SMALL Rs.20/- per month or part

thereof

ii MEDIUM Rs.40/- per month or part

thereof

iii LARGE Rs.60/- per month & part

thereof

iv EXTRA LARGE Rs.120/- per month & part

thereof

24 RTGS Transactions (wef 01.07.2017)

* Rs.2 to Rs.5 lac

Rs.32/- per transaction

*Above Rs.5 lac Rs.61/- per transaction

25 Service charges for NEFT

Up to Rs. 10000/- Rs. 2.50 per transaction

36
i Upto Rs.1 lac Rs.5/- per transaction

ii Above Rs. 1 lac to Rs. 2 lac Rs. 15/- per transaction

iii Above Rs.2 lac Rs.25/- per transaction

26 Issue of KCC Nil

27 Bank Guarantee Charges(Charges 1% of the Guarnteed amount

manually)

28 Security for Bank Guarantee 25% liquid security and rest

75% Collateral

29 Deposit of cash at Non home branch to Free upto Rs 20000/- and for
a/c Rs 20001/- to Rs 49000/-
(maximum) per day per a/c @
Rs 6/-

30 (i) Transfer of fund from one branch to From home branch to non
another branch home branch free upto Rs
200000/- and above Rs Two
lacs to Rs Five lacs Rs30/- per
day per account.

(ii) Above Rs Five lacs @ 0.005%

subject to minmum Rs30/- per
day per account.

31 Clearing Charges (Anywhere Banking Free of Cost

Facility)

Note : Before allowing this facility at Sr No 31 the BMs are required to

ensure complaince to KYC norms & security aspects strictly.

32 Pass book updation at non home No charges

37
 branch

33 Transaction Charges Credit Transaction - cash

/transfer - in RTD ,Transfer of
TDR Interest ,Term loan /
CClimit from other than home
branch is free of cost
irrespective of amount.

34 Interest Certificate (To be charged First Copy Free. Extra Copy

manually by the BM) Rs. 50/-per certificate

35 Duplicate Pass book/ Statement. With latest balance Rs. 50/-.

Rs. 1/-per entry for previous
entries

36 Issuance of Statement of A/c. Once Free. Thereafter Re1/-

per entry – Min Rs 50/- per
request

37 Issue of No Due certificate. (To be Rs. 40/- per certificate (Except

charged manually by the BM) KCC & Govt Sponsored
Schemes)

38 Charges for Rupay ATMcum Debit card/ Rupay KCC card (in case of issuance of
ATM)

Category Frequency of Mode(Manually by Charges

charges branch/through
system)

38
Charges for issue of fresh/ Nil
First Rupay Cardincluding
replacemnet of Maestro Card

At the time of Manually by the Rs.100/-

Charges for issue of Duplicate issuance by the Branch
Rupay Card branch

At the time of Manually by the

Re pin of Rupay card issuance ofn Branch Rs.25/-
duplicate pin by
the branch

In case of misprint of Pin Free of cost for Manually by the Rs.25/-(for

Mailer the first time ony Branch every
successive re-
pin required)

39 Charges for Internet Banking

Category Frequency of Mode(Manually by Charges

charges branch/through
system)

At the time of Manually by the

Login Password issuance by the Branch Rs.25/-
branch (inclusive
registered
postage
charges)

At the time of Manually by the

Transaction Password issuance by the Branch Rs.25/-
branch (inclusive

39
 registered
postage
charges)

40 Annual Charges for Rupay ATM cum Debit Card

Category Frequency of Mode(Manually by Charges

charges branch/through
system)

Rupay ATM cum Debit Card Annually (at the Through CBS
end of system at H.O. level Rs.100/-
completion of
calendar Year)

Note: Calendar Year Means the completion of one year from thr date of activation of
Rupay Card. Date of activation is date of linking the card online.

41 SMS Alert Charges

Category Frequency of Mode(Manually by Charges

charges branch/through
system)

SMS Alert Charges for Quarterly (at the Through CBS

SB/CA/KCC Accounts with end of system at H.O. level Rs.15/-per
ATM facilities completion of Quarter*
calendar quarter)

SMS Alert Charges for other Quarterly (at the Through CBS
Accounts without ATM end of system at H.O. level Rs.15/-per
facilities (where the customer completion of Quarter*
has opted for SMS Alert in the calendar quarter)
account)

40
 Note:- Calendar quarter means the completion of three months of activation of Rupay Card.
* The SMS Alert Charges may be kept in abeyance for the time being.

WHAT IS ACCOUNT?

Meaning:-
A bank account can be a deposit account, a credit card account, a current account, or
any other type of account offered by a financial institution, and represents the funds
that a customer has entrusted to the financial institution and from which the customer
can make withdrawals.

Types of account
 Saving account
 Current account
 Term deposit account
 Recurring deposit account
 Fixed account

Saving account
The saving account is generally opened by salaried person or by the person who has a
fixed regular income saving account is opened to encourage the people to save and
collect their saving.
The saving account is holder is allowed to withdraw money from the account two
times or three times on a week. At present the rate of interest is 3.50%in India.

Feature of saving Account:-

 The main objective of saving account is to promote saving.
 The money is being withdrawn either by Cheque or withdrawal slip.
 No loan facility is provided against saving account.

Advantages of saving Account:-

41
 It enables the depositor to earn income by way of interest.

 It helps the depositor to make payment by way of cheques.

Disadvantages of saving Account:-

1. Rate of interest on the money help in the account is very meager for 4% is not
even enough to beat the inflation rate of the country which is somewhere
around 7% or more.
2. No of transaction per month/ per year are limited.

Current Account

Meaning of current Account:-

Current bank account is opened by businessmen who have a number of regular
transactions with the bank, both deposits and withdrawals. Current account can be
opened in cooperative bank and commercial bank. In current account amount can be
deposited and withdrawn at any time without giving any notice. It is also suitable for
making payment to creditors by using cheques and they generally do not get by
interest.

Feature of current Account:-

 The main objective of current account is to enable the businessmen to conduct
their business transactions smoothly.
 There is no restriction on the number an amount of deposit. There is also no
restriction on the withdrawal.
 Current account is of continuing mature and as such there is no fixed period.

Advantages of current Account:-

 Current account enables businessmen to conduct his business transactions
smoothly.
 The business men can make direct payment to their creditors with the help of
cheques.
 Current account enables the account holder to obtain overdrafts facility.

42
 Current account facilitates the industrial progress of the country.

Disadvantages of current Account:-

 The rate of interest that one earns on the balance is very low.
 Service of package account has additional cost.
 Fine print and paper work can be lengthy and perplexing.
 A limit may be imposed on the amount of funds one can withdraw in a day

Recurring deposit Account

Meaning:-
Recurring deposit account is generally opened for a purpose to be served to a future
date. Generally opened to finance pre -planned future purposes like, wedding
expenses of daughter, purchase of costly item like land, refrigerator or air conditioner,
etc.
In recurring deposit account certain fixed amount is accepted every month for a
specified period and the total amount is repaid with interest at the end of the particular
fixed period.

Feature of recurring deposit are as follow:-

 In India minimum amount that can be deposited is rupees 10 at regular intervals.
 The rate of interest is higher.
 The bank provides the loan facility. The loan can be given unto 15% of the
maturity period.

 The period of deposit is minimum six month and maximum ten years.

Advantages of recurring deposit:-

 Recurring deposit encourages regular savings habit among the people.
 The bank may also invest such fund in profitable area.
 The bank can utilize such fund for lending to businessmen.
Disadvantages of recurring Fund:-

43
 Among the notable disadvantages is that you cannot with draw the deposited
money not units at the expiry of the agreed period of time.
 Money saved in fixed deposit account is mostly affected by inflation saving
Fixed Deposit
Meaning:-
The term fixed deposit means that the deposit is fixed and is repayable only lifter a
specific period is over. Under fixed deposit account money is deposited for a fixed
period lay six month, one year, five year or even ten year, the money deposited in this
account cannot be withdraw before the expiry of period.

Features of fixed Deposit:-

 The amount can be deposits only once for further such deposits, separate account
need to be opened.
 The period of fixed deposits rang between is days to 10 years.

 A higher interest rate is paid or fixed deposit.

Advantages of fixed Account:-

 Fixed deposit encourages saving habit for a longer period of time.
 Fixed deposit account enables the depositor to earn a high interest rate.
 The bank can get the funds for a longer period of time.
 The bank can lend such fund for short term loans to businessmen.

44
 Chapter 3

Research
Methodology

45
What is Research?
Research can be defined as the search for knowledge, or as any systematic
investigation,

To establish novel facts, solve new or existing problems, prove new ideas, or develop

new theories, usually using a scientific method. The primary purpose for basic
research (as opposed to applied research) is discovering ,interpreting, and the development of
methods and systems for the advancement of rain deer and cattle knowledge on a wide variety
of scientific matters of our world and the universe.

Objectives of the Study:-

Fixing the objective is like identifying the star. The objective decides where we want
to go, what we want to achieve and what is our goal or destination.
 To study the problems of faced by customers regarding KCC BANK services
 To investigate the factors that influence the level of satisfaction of telephonic
/online customers
 To determine the main factors influencing the level of customer satisfaction in
KCC BANK
 To check the level of satisfaction about the different types of services offered
by the banks
 To ascertain the ideal level of services which they expect from the bank.

DATA COLLECTION METHODS:

The data will be collected using both by primary data collection methods as well as
secondary sources.

Primary Data: Most of the information will be gathered through primary sources.
The methods that will be used to collect primary data are:
1. Questionnaire

46
Secondary Data: The secondary data will be collected through:
 Text Books
 Magazines
 Journals
 Websites

Research Design:-
The research design will be used in this study is both ‘Descriptive’ and ‘exploratory’.
The design used for this report is descriptive research as well as exploratory. The
term descriptive research refers to the type of research question, design, and data
analysis that will be applied to a given topic. Descriptive statistics tell what is, while
inferential statistics try to determine cause and effect.
Descriptive research can be either quantitative or qualitative. It can involve
collections of quantitative information that can be tabulated along a continuum in
numerical form, such as scores on a test or the number of times a person chooses to
use a-certain feature of a multimedia program, or it can describe categories of
information such as gender or patterns of interaction when using technology in a
group situation. Descriptive research involves gathering data that describe events and
then organizes, tabulates, depicts, and describes the data collection.

Sampling units
Definition
A single section selected to research and gather statistics of the whole. For example,
when studying a group of college students, a single student could be a sampling unit.

Sampling frame
Definition
A set of information used to identify a sample population for statistical treatment. A
sampling frame includes a numerical identifier for each individual, plus other
identifying information about characteristics of the individuals, to aid in analysis and
allow for division into further frames for more in-depth analysis

47
 Sampling techniques/method

Sampling Method:-
The sampling method used in this study is Convenience sampling. Convenience
sampling is a non-probability sampling technique where subjects are selected because
of their convenient accessibility and proximity to the researcher. The subjects are
selected just because they are easiest to recruit for the study and the researcher did not
consider selecting subjects that are representative of the entire population.
In all forms of research, it would be ideal to test the entire population, but in most
cases, the population is just too large that it is impossible to include every individual.
This is the reason why most researchers rely on sampling techniques like convenience
sampling, the most common of all sampling techniques. Many researchers prefer this
sampling technique because it is fast, inexpensive, easy and the subjects are readily
available

Title: - The title of study is “A STUDY OF CUSTOMER SATISFACTION FOR

SERVICES PROVIDED BY KCC BANK” An Empirical Study.

Sampling Method:-
The sampling method used in this study is Convenience sampling. Convenience
sampling is a non-probability sampling technique where subjects are selected because
of their convenient accessibility and proximity to the researcher. The subjects are
selected just because they are easiest to recruit for the study and the researcher did not
consider selecting subjects that are representative of the entire population.
In all forms of research, it would be ideal to test the entire population, but in most
cases, the population is just too large that it is impossible to include every individual.
This is the reason why most researchers rely on sampling techniques like convenience
sampling, the most common of all sampling techniques. Many researchers prefer this
sampling technique because it is fast, inexpensive, easy and the subjects are readily
available

48
Sample Size
The scope of study for this research is the Dharamshala (Dheera) city in which there
are currently five branches and ten ATMs of KCC BANK bank and the sample size
for this research is Sample Size 100
Method Use to Present Data:
Data Analysis & Interpretation – Classification & tabulation transforms the raw data
collected through questionnaire in to useful information by organizing and compiling
the bits of data contained in each questionnaire i.e., observation and responses are
converted in to understandable and orderly statistics are used to organize and analyze
the data:

 Calculating the percentage of the responses.

 Formula used = (no. of responses / total responses) * 100
Sampling Tool:-
The sampling tool used in this research is Questionnaire. A questionnaire is a means
of eliciting the feelings, beliefs, experiences, perceptions, or attitudes of some sample
of individuals. As a data collecting instrument, it could be structured or unstructured.
The questionnaire is most frequently a very concise, preplanned set of questions
designed to yield specific information to meet a particular need for research
information about a pertinent topic.
Sampling Design:-
The study has used Non- Probability sampling design. on- Probability sampling
involves deliberate selection of a particular unit of the population for constituting a
sample.
Limitations of the Study
There are so many limitation or huddles during studied on this topic:
 The data from the sample may not reflect the universe; since it is restricted only to the
area Dharmshala (Dheera) city and only 100 Respondents.
 As the topic is wide, all matters regarding the study could not be analyzed.
 Lack of time availability.
 Policies of bank are too rigid.
 Lack of customer interest to become the part of study

49
 Chapter 4

Data interpretation

50
 1. Which of the following facilities is given more importance?

(Table 4.1)
Option Respondent Percentage
Loan facility 28 28%
O/D facility 12 12%
ATM facility 49 49%
Locker facility 11 11%

49
50

45

40

35
28
30

25 RESPONDENT

20

15 12 11

10

0
loan facility O/D facility ATM facility Locker facility

(Figure4.1)

Interpretation:-
The above graph indicates that the 28% respondents are in favour of loan facility is
most important for them, 12% are in favour of O/D facility, 49% are in favour of
ATM facility and 11% are in favour of locker facility. This shows that the most of
customers give importance for ATM facility.

51
 2. When do you think of your bank what comes first in your mind?

(Table 4.2)

Option Respondent Percentage

Personalise services 27 27%
Wide branch network 21 21%
Customer services 18 39%
Computerised banking 21 21%
Core banking 13 13%

30 27

25 21 21
18
20
13
15

10 RESPONDENT
5

(Figure4.2)
Interpretation:-
The above graph indicates that the 27% respondents are said firstly about Personalise
services, 21% are Wide branch network, 18% Customer services, 21% are in favour
of computerized services and 13% are Core banking. This shows that the most of
customers are thinks about personalised services that they receive.

52
3. In terms of the service you received from the Supervisors and Management
of the branch, how satisfied were you with the following?

(Table 4.3)
Options Very Satisfied Neutral Dissatisfied Very
satisfied dissatisfied

Friendly and 34 32 17 10 07
courteous manner
Knowledge of bank's 31 28 30 05 04
products & Services
Willingness to listen 30 27 18 19 06
and respond to your
need
Fast and efficient 39 21 17 13 10
service
Recognition of you as 24 23 26 14 13
valued customer

Professional and 32 28 19 12 09
attractive appearance

100
90 10 5
19 13 14 12
80 17 30
70 18 17 19
60 26
50 32 28 21 28
27
40 23 Very dissatisfied
30
20 34 31 30 39 32 Dissatisfied
10 24
0 Neutral
Satisfied
Very satisfied

(Figure4.3
53
Interpretation:-
The above graph indicates that the
 34% respondents are highly satisfied with the friendly and courteous manner,
32% are satisfied, 17% are neutral, 10 are dissatisfied and 07 are very
dissatisfied. This shows that most of the persons are satisfied from
management for their friendly and courteous manner
 31% respondents are highly satisfied with the Knowledge of bank's products
& Services which is provided by banks staff that they have knowledge o that
product and services, 28% are satisfied, 30% are neutral, 05% are dissatisfied
and 04% are very dissatisfied. This shows that most of the persons are
satisfied from Knowledge of bank's products & Services that the management
of bank provide them, management have sufficient knowledge of product and
services of bank
 30% respondents are highly satisfied with the Willingness to listen and
respond to your need by bank staff, 27% are satisfied,18% are neutral,19%
are dissatisfied and 06% are very dissatisfied. This shows that most of the
customer’s needs are listen by KCC BANK bank and proper response given
 39% respondents are highly satisfied with the Fast and efficient provided by
KCC BANK, 21% are satisfied, 17% are neutral, 13% are dissatisfied and
10% are very dissatisfied. This shows that most of the customer’s are satisfied
with the Fast and efficient service provided by KCC BANK
 24% respondents are highly satisfied with they are Recognition of you as
valued customer by KCC BANK staff, 23% are satisfied,26% are neutral,14%
are dissatisfied and 13% are very dissatisfied. This shows that most of the
customer’s are Recognition of you as valued customer by the bank staff of
KCC BANK
 Out of 100 respondents 32 respondents are highly satisfied with Professional
and attractive appearance of KCC BANK staff, 28 are satisfied,19 are
neutral,12 are dissatisfied and 09 are very dissatisfied. This shows that most of
the customer’s are in favour of Professional and attractive appearance of
service provide at KCC BANK

54
4. How satisfied were you with the following aspects of the branch facility?
(Table 4.4)
Option Very Satisfied Neutral Dissatisfied Very
satisfied dissatisfied

Clean & well cared 33 27 21 13 06

facilities
Efficient, no wait 43 22 12 08 15
service
No long line ups at 21 37 18 11 13
counter
Availability of 33 19 17 25 06
information brochures
Pleasant & attractive 32 15 23 12 18

Automatic bank 29 21 13 27 10
machines in convenient
locations

120
100 7 15 13 6 10
13 18
80 8 11 25 12 27
21 12 18
60 17 23 13
22 Very dissatisfied
27 19
40 37 15 21
Dissatisfied
20 33 43 33 32
21 29
Neutral
0
Satisfied
Very satisfied

(Figure4.4)
55
Interpretation:-
The above graph indicates that the
 33% respondents are highly satisfied with the Clean & well cared facilities in
KCC BANK, 27% are satisfied, 21% are neutral, 13% are dissatisfied and
06% are very dissatisfied. This shows that most of the persons are satisfied
with the Clean & well cared facilities provide by the KCC BANK
 43% respondents are highly satisfied with the Efficient, no wait service, 22%
are satisfied, 12% are neutral, 08% are dissatisfied and 15% are very
dissatisfied. This shows that most of the persons are satisfied with the imitated
services provided by KCC BANK
 21% respondents are highly satisfied with the No long line ups at counter in
KCC BANK, 37% are satisfied, 18% are neutral,12% are dissatisfied and 13
are very dissatisfied. This shows that most of the customer’s are satisfied with
the No long line ups at counter
 39% respondents are highly satisfied with the Fast and efficient service
provided by KCC BANK, 21% are satisfied, 17% are neutral, 13% are
dissatisfied and 10% are very dissatisfied. This shows that most of the
customer’s are satisfied with the Fast and efficient service provided by KCC
BANK
 33% respondents are highly satisfied with the Availability of information
brochures in KCC BANK, 19% are satisfied, 17% are neutral, 25% are
dissatisfied and 06% are very dissatisfied. This shows that most of the
customer’s are in the favour of Availability of information brochures
 29% respondents are highly satisfied with Automatic bank machines in
convenient locations, 21% are satisfied, 13% are neutral, 27% are dissatisfied
and 10 are very dissatisfied. This shows that most of the customer’s are agree
to Automatic bank machines in convenient locations

56
5. What kind of the problems for that you contacts with your branch?

(Table 4.5)
Option Respondent Percentage
Account information/balance 31 31%
Confirmation of fund transfer 13 13%
Interest Rate inquiry 20 20%
Loan enquiry 11 11%
Statement enquiry 15 15%
Complaint 06 06%
Other 04 04%

35 31
30
25 20
20 15
13
15 11
10 6
4
5 Respondent
0

(Figure4.5)
Interpretation:-
The above graph indicates that the 31% respondents are confirm Account
information/balance by the telephone, 13% are Confirmation of fund transfer are
confirm by the telephone, 20% are interest Rate inquiry are confirm by the telephone,
11% are Loan enquiry are confirmed by telephone, 15% are confirmed their
Statement enquiry by telephone,06% are complained by telephone and 04% are
have other types query. This shows that most of the persons are contacted with
branch by telephone
57
6. Are you using online banking services or not.

(Table 4.6)
Online Banking Services Yes No
Respondent 13 87
Percentage 13% 87%

87
90

80

70

60

50 RESPONDENT

40

30
13
20

10

0
YES NO

(Figure4.6)

Interpretation:-
The above graph indicates that the 13% respondents are using online banking services
and 87% respondents are not using online banking services. This shows that majority
respondents are not using online banking service.

58
 7. Did your bank provide all information regarding charges?

(Table4.7)
Satisfied for charges Yes NO
Respondent 84 16
Percentage 84% 16%

84
90

80

70

60

50 RESPONDENT

40

30
16
20

10

0
YES NO

(Figure4.7)

Interpretation:-
The above graph indicates that the 85% respondents are satisfied with bank charges
and remaining 16% respondents are not satisfied with bank charges. This shows that
most of the respondents are satisfied with bank charges.

59
 8. Why you are associated with KCC BANK?

(Table 4.8)

Options Respondent Percentage

Interest rate on savings 27 27%
Lower interest rate on 28 28%
loans
Online services 04 04%
Friendly environment 26 26%
Faster problem handling 13 13%

Respondent

27 28
30 26
25

20
13
15
Respondent
10
4
5

0
Interest rate Lower Online Friendly Faster
on savings interest rate services environment problem
on loans handling

(Figure4.8)
Interpretation:-
The above graph indicates that the 27% are associated with bank for Interest rate on
savings, 28% are for Lower interest rate on loans, 04% are online services, 26% are
for Friendly environment and 13% are for faster problem handling. This shows that
most of the respondents are associated for the lower interest rate.

60
 9. In your opinion, what ideal services you have received?

(Table 4.9)

Options Respondent Percentage

Loan 30 30%
Account maintenance 27 27%
ATM services 25 25%
Online Services 05 05%
Complain handling 03 03%
All of the above 10 10%

Respondent
30
30 27
25
25
20
15 10
10 5
3 Respondent
5
0

(Figure4.9)

Interpretation:-
The above graph indicates that the 30% are said loan is ideal service, 27% are said
account maintenance 25% are said ATM services,05% are said online services, 03%
are said complain handling,10% are said all services are ideal services . This shows
that most of the respondents are said that the loan is ideal service for bank.

61
 10. Do you think that your bank fulfill all your banking needs?

(Table 4.10)

Option Respondents Percentage

Yes 79 79%
No 21 21%

79
80

70

60

50
RESPONDENT
40

30 21

20

10

0
yes no

(Figure4.10)

Interpretation:-
The above graph indicates that the 79% are in favour of bank fulfill all the needs of
customer and 21% are not favour .This shows that the bank fulfils needs of the
customers.

62
 11. What do you feel about overall service quality of KCCB.

(Table 4.11)

Option Respondent Percentage

Excellent 22 37%
Very good 35 25%
Good 20 29%
Average 15 15%
Poor 08 08%

35
35

30

25 22
20
20
15 RESPONDENT
15

10 8

0
Excellent Very good Good Average Poor

(Figure4.11)

Interpretation:-
The above graph indicates that the 22% are in favour of bank provide excellent
services, 35% are in favour of very good,20% are in favour of good,15% are in favour
of average and 08% are in favour that the bank provide poor services. This shows that
the most of customers are satisfied with the banking services.

63
 Chapter 5

Findings
&
Suggestions

64
Findings from KCC BANK Customers:-

 KCC BANK has maintained their customer relationship very well and it has
proved to be one of their best strategies in today’s era of challenge and
competitive environment and giving them better chances of growth and
survival.
 It was found that physical evidence is the major contributor that gains the
attention
 Of the people when they enter the KCC BANK but I cannot nullify the KCC
BANK is offering services to its customers as per the expectations of the
customers themselves, thereby proving to be their one of the core competency.
 Currently KCC Bank’s main source of revenue is through saving and that of
the current accounts which is increasing day by day.
 KCC BANK is meeting overall satisfaction of their customer class to a very
good level, which is every banks prime concern and I can say that there is
always room for improvement as KCC BANK to take customer satisfaction to
the level of excellence.
 KCC BANK is meeting standards which they have set in advance as their
strategy of providing services to their customers in very less time.
 Facts like employee friendliness and immediate attention also contributes
heavily in capturing minds of the customer to a great extent.
 The sales people of KCC BANK are dedicated towards the goals of the
company in a way where they always cross sell other products to different
existing customers thereby giving the company more chances of profit
leverage without striving for different sources.
 KCC BANK provide low rate of interest. It attracts the customer to take loan
and increase their market share.
 KCC BANK bank has good relations with customer that help to the increase
market share of the bank.
 In future there are huge chances to grow the KCC BANK as bank.

65
Suggestions:-
1. Promotional efforts like advertisement must have to increase by number of
marketing executives, sponsoring various shows & functions should be
increased awareness about KCC Bank about its various products and services.
2. KCC BANK should increase their market in other states. The operations are
done by KCC BANK in only Himachal Pradesh. So their need of do their
business in other states.
3. For increasing the trading of share KCC Bank has to take initiative and to start
opening Demat Account for trader who want to deal in securities of different
companies.
4. Whole emphasis should be on providing quality services to customers and
solving their problems so that relationship with the customers can be
developed (CRM)
5. To improve trust, worthiness, believability and honesty in banking services.
6. When different Accounts are opened by KCC Bank employee then their
should be one thing must be consider always in mind that the time that taken
to open the Account that should be minimum.
7. The bank should provide regular and frequent calls to their profitable
customers to retain them with the bank and also it help the bank to make their
clients feel more comfortable.
8. The bank should have sound system for solving customer’s grievances at their
possible limit so that help the make to make sure that all the grievances of the
customers are solved very efficiently. This would also help customers to feel
happy with bank services.
9. KCC Bank has to open more ATM machine in all the places to accelerate
their services to their customers. This would help customers to avail service in
any place of the country and it also beneficial to the bank to accelerate their
account holders.
10. Somewhat emphasis should be given to the infrastructure facility.

66
Conclusion:-
Products offered by the other banks are cheaper as compared to the KCC BANK.
The network (branches and ATMs) of KCC BANK in Himachal Pradesh is
lagging behind than its competitors like HPGB Bank, SBI and PNB. Majority of
the respondents are of the opinion that the employees at KCC BANK have a very
professional approach towards their work. The level of service in terms of
delivering whatever is promised and fast response in case of problems, are the
most important benefits that the customer seek from the bank, they have a Current
Account with. Customers in KCC BANK are not well aware about KCC BANK
and its services and products, as compared to its competitors. The modern
technology like Net Banking, Phone Banking used by the KCC BANK for
providing banking services has sent positive signals in the minds of customers.
Most of the customers feel the charges which are associated with AQB (Average
Quarterly Balance) maintenance are too high, and the AQB to be maintained is
also very high. Bank should reduce their NPA (Non performing assets).

67
 BIBLOGRAPHY

BOOKS
 Valarie,a Zeithaml, Dwayne D Gremler, Mary Jo Bitner,Ajay
Pandit , (4th Edition fifth reprint in 2009)Service Marketing
 Govind Apte , (2009)Service Marketing Tenth Impression
 Christopher Lovelock,Jochen Wirtz,Jayanta Chatterje, (2012)
Service Marketing second impression
 Deepak Chawla, Neena Sondhi, (2011 first Edition)Research
Methodology
 Donald R Cooper,( 9th Edition 13th reprint in 2012) Business
Research Methods

WEBSITIES
 https://KCC
Bank.in/index.php?option=com_content&view=article&id=90&Ite
mid=102
 https://KCC
Bank.in/index.php?option=com_content&view=article&id=67&Ite
mid=103
 https://KCC
Bank.in/index.php?option=com_content&view=article&id=176&It
emid=198
 https://KCC
Bank.in/index.php?option=com_content&view=article&id=65&Ite
mid=69

68
 ANNEXURE
Questioner

Dear respondent,
I am doing study on “A study of customer satisfaction for
services provided by KCC BANK”. In this connection I requested to read the
following items carefully and answer them. The answers yours give will be held
confidential and used purely for academic purpose. Please put a tick mark
corresponding on your choice. I thank you for your time.
NOTE: ONLY ONE TICK MARK IN ONE QUESTION.

Personal Details
NAME..………………………………………………………………………………..
AGE……………………………………………………………………………………
SEX…………………………………………………………………………………….
OCCUPATION…………………………………………………………………………
CONTACT……………………………………………………………………………..
ADDRESS………………………………………………………………………………
1. Which of the following facilities is given more importance?

(a)Loan facilities ( )

(b)O/D facilities ( )

(c)ATM facilities ( )

(d) Locker facilities ( )

2. When do you think of your bank what comes first in your mind?

(a)Personalised service ( )

(b)Wide branch network ( )

(c)Customer service ( )

(d)Computerised banking ( )

(e)Core banking ( )
69
3. In terms of the service you received from the Supervisors and Management
of the branch, how satisfied were you with the following?
Options Very Satisfied Neutral Dissatisfied Very
satisfied dissatisfied

Friendly and
courteous manner
Knowledge of bank's
products & Services
Willingness to listen
and respond to your
need
Fast and efficient
service
Recognition of you
as valued customer
Professional and
attractive appearance

4. How satisfied were you with the following aspects of the branch facility?
Option Very Satisfied Neutral Dissatisfied Very
satisfied dissatisfied

Clean & well cared

facilities
Efficient, no wait
service
No long line ups at
counter
Availability of
information brochures
Pleasant & attractive

70
Automatic bank
machines in convenient
locations

5. What kind of the problems for that you contacts with your branch?
(a) Account information/balance ( )

(b) Confirmation of fund transfer ( )

(c) Interest Rate inquiry ( )

(d) Loan enquiry ( )

(e) Statement enquiry ( )

(f) Complaint ( )

(g) Other ( )

6. What were the problems for that you contacts with your branch?
(a) Yes ( )

(b) No ( )

7. Did your bank provide all information regarding charges?

(a) Yes ( )

(b) No ( )

8. Why you are associated with KCC BANK?

(a) Interest rate on savings ( )

(b) Lower interest rate on loans ( )

(c) Online services ( )

(d) Friendly environment ( )

(e) Faster problem handling ( )

71
9. In your opinion, what ideal services you have received?
(a) Loan ( )

(b) Account maintenance ( )

(c) ATM services ( )

(d) Online Services ( )

(e) Complain handling ( )

(f) All of the above ( )

10. Do you think that your bank fulfill all your banking needs?

(a) Yes ( )

(b) No ( )

11. What do you feel about overall service quality of KCCB.

(a) Excellent ( )

(b) Very good ( )

(c) Good ( )

(d) Average ( )

(e) Poor ( )

72