A Summer internship report on

CUSTOMER SATISFACTION
At
KALUPUR COMMERCIAL CO-OPERATIVE BANK LTD.
KALUPUR CHOKHA BAZAR BRANCH.
Submitted To:

Gujarat Technological University

UNDER THE GUIDANCE OF
PROF. JAY DESAI
Mr.PRAFUL PATEL (KCCB)
Prepared by
Chandraprakash B Vishwakarma (147680592174)

SHRI CHIMANBHAI PATEL INSTITUTE OF MANAGEMENT & RESERCH

In Partial Fulfilment of the Requirements of
Master of Business Administration (MBA) Programme
2014-2016

Declaration
I the undersigned hereby declare that the work incorporated in the Summer internship
report and titled CUSTOMER SATISFACTION REGARDING KALUPUR
COMMERCIAL CO.OP BANK. Is original and has not been submitted to any
university as part fulfilment of award of any degree or deploma.
The material obtained and used from other sources has been duly acknowledged in the
report.

Date:

Chandraprakash Vishwakarma.

Place:

PREFACE
Summer training is an integral part of our academic curriculum. During the training a
student gets an opportunity to set the practical aspects of theory. Theory makes the
concept clear.
I feel great pleasure in submitting this piece of work as a summer training project, taken
from Kalupur Bank, Ahmedabad.
I hope that this work will provide fruitful result in the eyes of the reader. It is hence
expected that creating of this shall benefit the reader in all aspects.
The project deals with nearly all the aspects of Banking Industry and the essence of
Know Your Customer Norms. I have tried my best to cover nearly all the aspects related
to Customer satisfaction of Kalupur Bank.
The working title of the project is Customer satisfaction. It is done in a very cordial
manner. This research is an attempt to present a report on account of little practical
knowledge. In my opinion, the readers will be satisfied with the project in all ways. I
guarantee the original work and authenticity of this.

ACKNOWLEDGEMENT
I am immensely thankful to entire staff of Kalupur commercial cooperative Bank limited
(Kalupur Chokha Bazar) help and support and for excellent hospitality they extended to
me during the project.
I extended my heartfelt gratitude to all those who have extended their tremendous
support and co-operation.

I would also like to thank Mr. Praful Patel, Mr. Bharat Parmar, and Mr. Rajnikant
Patel & Mr. Hardik Trivedi of Kalupur Bank for guiding and supporting as and when I
needed.
Last but not least, I would like to thank the director sir Mr. Jay Desai who gave me the
opportunity and full support to do this project and also would like to thank all those who
are associated directly or indirectly with this project.
Lastly, the greatest credit goes to the blessings bestowed by Almighty God without whose
yearning; I could not have even moved a step forward and to my parents who are always
a constant source of inspiration in all my endeavors.

EXECUTIVE SUMMARY
The report contains the organizational study done at KALUPUR COMMERCIAL CO.OP BANK
LTD. The report title is CUSTOMER SATISFACTION REGARDIND KALUPUR
COMMERCIAL CO.OP BANK.
The report gives an overview of the banking Sector and company profile. And awareness of
customers about different types of products and services offered by KALUPUR COMMERCIAL
CO.OP BANK.
This study was conducted to find out the customer satisfaction regarding KALUPUR
COMMERCIAL CO.OP BANK.
The methodology adopted for the study was through a structured questionnaire, which is targeted
to the different persons in Kalupur Chokha Bazar for this purpose sample size of 100 was taken.
The data collected from the different persons was analyzed thoroughly and presented in the form
of charts and tables.
KALUPUR COMMERCIAL CO.OP BANK must advertise regularly and create brand value for
its products and services. Most of its competitors like ADC, Axis, kotak Mahindra and
nationalized banks use television advertisements to promote their products. The Indian consumer
has a false perception about Co-operative banks they feel that it would not safe.
Safety and returns are the two main reasons people invest in banks. On the whole KALUPUR
COMMERCIAL CO.OP BANK is a good place to work at. Every new recruit is provided with
extensive training on the products of KALUPUR COMMERCIAL CO.OP BANK. This training
enables an advisor/sales manager to market the policies better. The company should try to create
awareness about itself in India. With an improvement in the sales techniques used, a fair bit of
advertising and modifications to the existing product portfolio, KALUPUR COMMERCIAL
CO.OP BANK would be all set to capture the banking market in India as it has around the globe.

TABLE OF CONTENT
CHAPTE
R

Particulars

Pag
e
No.
5

Preface

Acknowledgement

Executive Summary

Introduction to sector
1.1

Introduction to Banking Sector

1.2

Importance of A Bank

1.3

Banking in India

1.4

Structure of Indian Banking

10

1.5

Co-Operative Banking Introduction

11

1.6

Origin of Cooperative Banks in India

12

1.7

Structure of Co-Operative Banking

14

1.8

Types of Co-Operative Banks

15

1.9

Difficulties Faced By Co-Operative

16

The Kalupur Commercial Co-Operative Bank Ltd.

2.1

Background

17

2.2

History

17

2.3

Mission

18

2.4

Vision

18

2.5

Achievements

19

2.6

Prizes and Awards

19

2.7

Facts and Figures

20

2.8

Financial Data

20

2.9

Future plans

20

2.10

Services rendered by kalupur commercial cooperative bank

21

ltd
2.11
3

Other services rendered by KCCB

26

Customer satisfaction Introduction

3.1

Introduction to Customers satisfaction

30

Research Methodology
4.1

Research Objective

38

4.2

Research tools, data and methodology

38
6

Findings
5.1

Steps in Term loan processing

39

5.2

Basic information regarding loans at KCCB

40

5.3

Comprehensive guidelines for revised car loan

42

5.4

Comprehensive guidelines for housing loan

44

Analysis (Case Study)

6.1

Case Study 1

48

6.2

Case Study 2

54

Conclusion

57

Bibliography

58

Chapter 1:
Introduction

1.1 INTRODUCTION TO BANKING SECTOR

As early as 2000 B.C., the Babylonians has developed a banking system. There is evidence to
show the temples of Babylon were used as banks. After a period of time, there was a spread of
irreligion, which soon destroyed the public sense of security in depositing money and valuable in
temples. The priests were longer acting as financial 45 agents. The Romans did minute
regulations, as to conduct private banking and to create confidence in it. Loan banks were also
common in Rome. From these the poor citizens received loans without paying interest, against
security of land for 3 or 4 years.
During the early periods, although private individuals mostly did the banking business, many
countries established public banks either for the purpose of facilitating commerce or to serve the
government.
However, upon the revival of civilization, growing necessity forced the issued in the middle of
the 12th century and banks were established at Venice and Genoa. The Bank of Venice
established in 1157 is supposed to be the most ancient bank. Originally, it was not a bank in the
modern sense, during simply an office for the transfer of the public debt.
Again the origin of modern banking may be traced to the money dealers in Florence, who
received money on deposit, and were lenders of money in the 14th century and also in 1349, the
business of banking was carried on by drapers of Barcelona.
In India, as early as the Vedic Period, banking, in most crude from existed. The books of Manu
contain references regarding deposits, pledges, policy of loans, and rate of interest. True, the
banking in those days largely mint money lending and they did not know the complicated
mechanism of modern banking.
This is true not only in the case of India but also of other countries. Although, the business of
banking is as old as authentic history, banking institutions have since then changed in character
and content very much. They have developed from a few simple operations involving the
satisfaction of a few individual wants to the complicated mechanism of modern banking,
involving the satisfaction of capital slowly seeking employment and thus providing the very life
blood of commerce.
THE ORIGIN OF WORD BANK
The word Bank it-self derived from the word bancus or banque that is a French. There
were others of the opinion that the word Bank is originally derived from the German word
back meaning joint for which was Italianized into banco.

1.2 IMPORTANCE OF A BANK

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.

10

1.3 BANKING IN INDIA

Without having sound and effective banking system India cannot have healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. Banking in India
originated in the last decades of the 18th century. The oldest bank in existence in India is the
State Bank of India, a government-owned bank that traces its origins back to June 1806 and that
is the largest commercial bank in the country. Central banking is the responsibility of the Reserve
Bank of India, which in 1935 formally took over these responsibilities from the then Imperial
Bank of India, relegating it to commercial banking functions. After India's independence in 1947,
the Reserve Bank was nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government nationalized the six next largest in
1980.
Currently, India has 90 scheduled commercial banks (SCBs) - 27 public sector banks (that is with
the Government of India holding a stake), 23 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchanges) 53 co-operative banks and 45 foreign
banks.
The oldest bank in existence in India is the State Bank of India, which originated in the Bank of
Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of
the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all
three of which were established under charters from the British East India Company. For many
years the Presidency banks acted as quasi-central banks, as did their successors. The three banks
merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became
the State Bank of India.

1.4 STRUCTURE OF INDIAN BANKING

11

RESERVE BANK OF (RBI)

SCHEDULED BANKS IN

COMMERCIAL BANKS

COOPERATIVE BANKS

URBAN COOPERATIVES (53)

STATE COOPERATIVES (

REGIONAL RURAL
PRIVATE
BANKS
SECTOR
(86) BANKS
FOREIGN
(23)
BANKS
PUBLIC(45)
SECTOR BANKS (26)

NATONALIZED BANKS
SBI (19)
AND ASSOCIATE BANK
OLD (15)

NEW (7)

1.5 Types of Banks

12

A. Scheduled Banks
Scheduled commercial banks are those that come under the purview of the Second Schedule of
Reserve Bank of India (RBI) Act, 1934. The banks that are included under this schedule are
those that satisfy the criteria laid down vide section 42 (6 of the Act).
1. The bank is dealing in banking business in India only.
2. The paid up capital and total funds of the bank should not be less than five lakh rupees.
3. It should convince RBI that its activities would not be against the interest of investors.
4. The bank must be:
(a) State cooperative bank, or
(b) A company according to the definition of the companies Act1956, or
(c) An institution notified by the central government, or
(d) A corporation or a company incorporated by or under any law in force in any
place outside India.
Thus,
(I) Indian Commercial Banks
(II) Foreign Commercial Banks, and
(iii) State Cooperative Banks fulfilling the above condition are considered
as scheduled banks.
Moreover under the RBI Act section 42, the Central Government has declared the following
banks as scheduled banks.
(i) State Bank of India and its seven subsidiary banks,
(ii) Twenty nationalized banks, and
(iii) Urban Banks.
In June 1980 there were 149 scheduled banks which included
1. Public Sector Banks
2. Private sector Banks,
3. Foreign Exchange Banks and
13

4. State Cooperative Banks.

A bank which wants to register its name as scheduled bank has to apply to the Central
Government. On receiving such application, the central government orders RBI to investigate the
banks accounts. If RBI gives favorable reports, the central government sanctions its proposal,
and the bank is listed under schedule annexure II and is considered as a scheduled bank.
Some co-operative banks come under the category of scheduled commercial banks though not all
co-operative banks.
PUBLIC

SECTOR BANKS

Public sector banks are those in which the Government of India or the RBI is a majority
shareholder. These banks include the State Bank of India (SBI) and its subsidiaries,
other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the
aggregate branches in India are those of the public sector banks. Some of the leading
banks in this segment include Allahabad Bank, Canara Bank, Bank of Maharashtra,
Central Bank of India, Indian Overseas Bank, State Bank of India, State Bank of
Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore, Bank of Baroda,
Bank of India, Oriental Bank of Commerce, UCO Bank, Union Bank of India, Dena
Bank and Corporation Bank.
PRIVATE

SECTOR BANKS

Private Banks are essentially comprised of two types:

Old banks and new banks
The old private sector banks comprise those, which were operating before Banking
Nationalization Act was passed in 1969. On account of their small size, and regional
operations, these banks were not nationalized. These banks face intense rivalry from the
new private banks and the foreign banks. The banks that are included in this segment
include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat Overseas Bank Ltd.,
Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd., The Catholic Syrian
Bank Ltd., The Dhanalakshmi Bank Ltd., The Federal Bank Ltd., The Jammu &
Kashmir Bank Ltd., The Karur Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The
Nedungadi Bank Ltd. and Vysya Bank.
The new private sector banks were established when the Banking Regulation Act was
amended in 1993. Financial institutions promoted several of these banks. After the
initial licenses, the RBI has granted no more licenses. These banks are gearing up to
face the foreign banks by focusing on service and technology. Currently, these banks
are on an expansion spree, spreading into semi-urban areas and satellite towns. The
leading banks that are included in this segment include Bank of Punjab Ltd., Centurion
Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI Banking Corporation Ltd.,
IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank Ltd

14

Co-operative

Banks

Co-operative banks act as substitutes for moneylenders, and offer timely and adequate
short-term and long-term institutional credit at reasonable rates of interest. Co-operative
banks are relatively similar in terms of functions to the other banks except for the
following:
a) They are organized and managed on the principal of co-operation, self-help,
and mutual help.
b) They operate under the rule of "one member, one vote".
c) Operate on "no profit, no loss" basis.
d) Co-operative bank conducts all the main banking functions of deposit mobilization,
supply of credit and provision of remittance facilities. Co-operative banks offer
limited banking products and are functionally specialists in agriculture-related
products, and even in providing housing loans. Urban Co-operative Banks offer
working capital loans and term loans as well.
e) Co-operative banks primarily operate in the agriculture and rural sector. However,
UCBs, SCBs, and CCBs function in semi urban, urban, and metropolitan areas too.
Co-operative banks are probably the first government sponsored, governmentf) Supported and government-subsidized financial agency in India. They get financial
and other aid from the Reserve Bank of India NABARD, central government and
state governments. They are the "most favored" banking sector with risk of
nationalization.
g) Co-operative banks normally concentrate on "high revenue" niche retail segments.

Development Banks
Development banks are primarily intended to encourage industrial development by
providing adequate flow of funds to industrial projects. In other words, these
institutions undertake the responsibility of aiding all-round development in the
countrys economy by promoting new industrial projects, and providing financial
assistance for the expansion, diversification, and up gradation of the existing units.
Development Banks may be classified as All India development banks and Regional
development banks. While All India development banks include Industrial
Development Bank of India and Industrial Finance Corporation of India, examples of
Regional development banks include State Financial Corporation and State Industrial
Development Corporation

2. Non-scheduled Banks:
The banks, which are not included in the second schedule of RBI Act, 1934, are known
15

as non-scheduled banks. Such banks total share capital is less than five lakhs. These
banks are not governed according to the RBI Act and they receive no benefits from the
RBI. These banks have no place in the list of recognized banks of the RBI. These banks
are not much trusted by the people and they do not get handsome deposits. Since 1951
the numbers of such banks have been gradually decreasing. In 1979 there were only
five non-scheduled banks.
Generally now days we found many cooperative banks which are belongs to the nonschedule co-operative banks. Following are the types of non-schedule banks they are
work like the schedule banks but here difference in its status and it not having the status
of the schedule banks.
a. Deposits Banks
b. Cooperative Banks
c. Central Banks
d. Exchange Banks
e. Investment or Industrial Banks
f. Land Development Banks
g. Savings Banks

(a) Deposits Banks:

Generally, banks which provide short-term loans to business and industrial units and which
mobilize savings of people as deposits are called deposit banks. Deposit banks accept
deposits from people, and provide short-term advances. They provide overdraft and cash
credit facilities to merchants. To meet the long-term requirement of industrial units is not
possible for these banks. They accept three types of deposits- saving bank deposits, fixed
deposits and current account deposits. They accept these deposits which are payable on
demand or on short notice, and provide funds to trading and commercial units for short
durations.

(b) Cooperative Banks:

Cooperative banks meet the short-term financial needs of farmers. Agriculturists, petty
farmers and artisans organize themselves on cooperative principles and form cooperative
societies and banks. Cooperative banks raise funds through various means, besides receiving
all kinds of deposits to make them available as lendable funds to its members. In India
developed cooperative banks supply finance for agriculture and non-agriculture activities.

(c) Central Banks:

A central bank is a special institution which controls and regulates the entire banking
structure of country. It also strives to maintain monetary stability of the country. Central
bank is also known as the apex bank of a country. Since it functions in the best interest of
16

the country and making profits is unknown to it, it is entrusted the right it issue currency
notes. No other bank is allowed this right. It operates in close cooperation with the
government of implementing economic policies, thereby promoting economic development.

(d) Exchange Banks:

There is a difference in financing of foreign trade and financing of internal trade. Generally
a person carrying on international trade requires foreign currencies to meet his obligation. It
is here that exchange banks play the role of financing the dealer for setting transactions
involved in foreign trade, there are specialized banks for exchange business. In India, there
is an Export-Import Bank (EXIM).
(e)

Investment or Industrial Banks:

Investment banks provide long-term credit to industries. They raise their funds by way of
share capital, debentures, and long-term deposits from the public. They also raise funds by
the issue of bonds for business operations and government agencies. Usually they
underwrite fresh issue of shares and debentures of companies. Such banks also buy the
entire issue of new securities of public limited companies and try to get them subscribed at a
higher price by the public.

(f) Land Development Banks:

Land development banks were earlier known as land mortgage banks. In India, there is
limited number of such banks. There are special institutions providing long-term loans to
agricultures and farmers. They provide loans on security of land and other immovable
properties. They supply long-term funds for periods exceeding six years. Agriculturists and
farmers need such funds for making permanent improvements to land and for buying
farming machinery and equipment.

(g) Savings Banks:

Savings Banks are specialized institutions, which encourage general public to save
something from their earnings. In other words such banks pool the small savings of middle
and lower income sections of society. They are the banks in the true sense of the term and
their main aim is to promote and collect of the public. Not only the depositors are given
interest, but also they are allowed to withdraw in times of need. The numbers of withdrawal
are, however, restricted. Separate savings banks are organized in various nations. The
government can also run a savings bank. In India the postal department runs the postal
saving bank all over the country. It is very popular in rural areas where no branches where
no branches of established commercial bank operate. In urban areas, commercial bank
handles savings business

17

1.6 CO-OPERATIVE BANKING INTRODUCTION

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
they are 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 self-employment, 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.
Co-operation is one type of organism in which people join willingly to
encourage their equal financial interest.
-Hewitt Kelwert.
Co-operation is the step taken for equal profit or loss under mutual management.
Management by mutually using their own resources and factors willingly.
-Herick M. T.

1.7 ORIGIN OF COOPERATIVE BANKS IN INDIA

18

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 McLaren committee envisaged a three tier structure for
cooperative banking viz. 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 first urban 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 (CCB) of Banking Regulation Act, 1949 (as applicable to Cooperative Societies) defined an Urban Cooperative Bank as a Primary Co-operative Bank other
than a Primary Cooperative Society was made applicable in 1966.

1.8 FEATURES OF COOPERATIVE BANKS

Cooperative Banks are organised 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
19

profit, no loss" basis.

Cooperative banks, as a principle, do not pursue the goal of profit maximization.
Cooperative bank performs all the main banking functions of deposit 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.
Cooperative bank do banking business mainly in the agriculture and rural 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.
Cooperative Banks belong to the money market as well as to the capital market.
Primary agricultural credit societies provide short term and medium term loans.
Cooperative banks are financial intermediaries only partially. The sources of their funds
(resources) are:
(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 cooperative banks. This means that intra20

sectoral competition is absent and intra-sectoral integration is high for cooperative bank.

1.9STRUCTURE OF COOPERATIVE BANKING

RBI

NABARD

SCBs

SLDBs

CCBs

CLDBs

UCBs

PACS
PLDBs

SCBs:

BRANCHES OF SLDBs

State Cooperative Banks

SLDBs: State Land Development Banks

UCBs:

Urban Cooperative Banks

CCBs:

Central Cooperative Banks

CLDBs: Central Land Development Banks

PACS:

Primary Agricultural Credit Societies

PLDBs: Primary Land Development Banks

21

1.10 PURPOSE OF CO-OPERATIVE BANK

The main aim of co-operative bank is to reach actual progress of agriculture sector and activity
of granting advances and loans. So, because of purpose we can say that co-operative is the best
resource.

(a) Values:
Co-operatives are based on the self-responsibility, democracy, equality and solidarity.
In the tradition of their founders, co-operative members believe in the ethical values of
honest, openness, social responsibility and carrying for others.

(b) Principles
The co-operative principles are guidelines by which co-operative banks put their
values into practice.
1. Voluntary and open membership:

The co-operative banks are voluntary organizations open to all persons able to use
their services and willing to accept the responsibilities of membership without gender,
social, racial, political and religious discriminations.
2. Democratic member control

Co-operative bank do their member who actively participate in setting their policies
and making decisions, men and women serving control democratic organizations as
elected representatives are accountable to the membership in primary co-operative
members have equal voting rights and co-operative at the other level are also
organized in a democratic manner.
3. Members economic participation

Members contribute equality and democratically control the capital of their cooperative. At least part of the capital is usually the common property of the cooperative. Members usually receive limited compensation if any on capital subscribed
as the condition of membership. Members allocate surplus for any of the following
purpose: developing their co-operative, possibly by setting up their reserves, part of
which at least would be invisible, benefiting members in proportions to their

22

transactions with the co-operative and supporting other activities approved by

membership.

4. Autonomy and independence

Co-operatives are autonomous, self-help organizations control by their members. If
they are enter into agreements with other organizations, including government to raise
capital. For external sources they do so in terms that domestic control by their
members and maintain their co-operative autonomy.
5. Education, training and information
Co-operative provides education and training for members, elected representations
managers and customers. So, they can contribute effectively for the development of
their co-operatives.

6. Concern for community

Co-operatives work for the sustainable development of their communities through
policy approved by their members.

23

1.11 TYPES OF CO-OPERATIVE BANKS

1. STATE COOPERATIVE BANKS (SCBs)
State cooperative banks are a federation of central cooperative banks and act as a
watchdog of the cooperative banking structure in the state. Its funds are obtained from
share capital, deposits, loans and overdrafts from the Reserve Bank of India. State
cooperative banks lend money to central cooperative banks and primary societies and not
directly to farmers.

2. CENTRAL COOPERATIVE BANKS (CCBs)

Central cooperative banks are the federations of primary credit societies in a district
and are of two types those having a membership of primary societies only and those
having a membership of societies as well as individuals. The funds of the bank consist of
share capital, deposits, loans and overdrafts from state cooperative banks and joint stocks.
These banks finance member societies within the limits of the borrowing capacity of
societies.

3. PRIMARY AGRICULTURAL CREDIT SOCIETIES (PACS)

Cooperatives have played a major role in the supply of finance to agricultural sector
for the development of land, irrigation system and for its mechanization. The agricultural
cooperative credit in Punjab is divided into two sectors mainly, one dealing with short
and medium-term credit and the other with the long-term credit. The long term credit is
awarded from the Punjab State Cooperative Land Mortgage Banks at the apex and the
Primary Cooperative Land Mortgage Banks at district level.

24

4. PRIMARY COOPERATIVE BANKS (PCBs)

They are non-agricultural societies. These are of two types: Urban cooperative banks
and Salary earners societies. Development of PCBs is looked after by the RBI. The RBI
and IDBI offer them concessional refinance facility on a selected basis. They operate in
urban and semi-urban areas. They provide housing finance and loans and advances for
various purposes such as petty trade and industry.

1.12 DIFFICULTIES FACED BY COOPERATIVE BANKS IN RURAL

AREAS
1) Slow progress:
The progress of co-operative banks is not up to the expectation and is slow when comparing
other type of banks because of many restrictions on their operations.
2) Limited scope of investment:
The main objective of co-operative banks is to provide credit facilities to the poor people i.e.,
to small and marginal farmers and other weaker sections. They were originally having
limited scope to invest their surplus funds freely.
3) Delay in decision making:
The co-operative banks directly or indirectly by various agencies i.e., NABARD, RBI. Thus
it takes long time to take decision on some important issues. This, in turn affects the progress
of co-operative banks.
4) Lack of training facilities:
Generally the staff of co-operative banks is urban oriented and they may not know the
problems and conditions of rural areas. Lack of training facility concerning these areas also
affects the growth of co-operative banks.
5) Poor recovery rate:
The recovery performance of the co-operative banks is not up to the mark. the reason for
poor recovery of loans and mounting overdue are; inadequate supervision and follow up
action to assess the end use of credit by co-operative banks due to inadequate staff in banks,
25

poor Identification of beneficiaries, inadequate generation of output and income by the

beneficiaries, poor marketing facilities.

Chapter 2:
The Kalupur
Commercial CoOperative Bank Ltd.

26

Kalupur - Our own Bank

2.1BACKGROUND:
Kalupur Commerical Coop. Bank Ltd., was founded in 1970 to cater to the needs like timely and
adequate credit facilities of small traders and industrial units in big cities. With this objective in
mind Ahmedabad Grain Merchants Association promoted this bank under the leadership of late
Shri Baldevbhai Dosabhai Patel.
The bank was registered in 1970-71 under Gujarat State Coop. Societies Act and later widens its
scope by registering under multi-state cooperative societies Act in 1995. It has a network of 43
branches of which 4 are functioning in neighboring urban towns viz. Barla, Bareja, Sanand and
Gandhinagar in Ahmedabad District. The Bank has also opened branches outside Ahmedabad at
Anand, Badodra, Khmbaht, Surat and Kalbadevi (Mumbai).

2.2 HISTORY OF THE KCCB:

The bank had a very humble, but very inspiring beginning on 5th December 1970. The Bank is a
professionally managed Financial Institution a benchmark of transparency, credibility and
innovation.

The Bank is founded by Late Shri Baldevbhai Dosabhai Patel, Late Shri Gopaldas Shivlal Patel
and Shri Arvindbhai Jivanlal Saheba. The Bank has nurtured its traditional values in business
practices and in serving the small businessmen. These were the people with deep and abiding
ideas, faith, vision, optimism and entrepreneurial skills with commendable sense of service and
duty.

The dynamism infused by the Board of Directors, affectionate loyalties of clients and devotion of
staff members has created the sound foundation of The Kalupur Commercial Co-operative Bank
Ltd and has emerged as one of the leading Multi Sate Scheduled Co-operative Bank in the
country.

27

The Bank has adopted new technologies and advanced Banking tools to add value to its services.
The Kalupur Bank has earned a name in co-operative Banking sector due to its rich heritage,
integrity and adherence to prudent banking practices, technology advancement customized
products and services.
The Kalupur Bank believes that Customer Delight is the ultimate goal and has a strong belief
that customers and all shareholders, wholehearted support, absolute faith and their patronage
coupled with hard work of the staff members has been largely responsible for its noteworthy and
appreciable growth. The Kalupur Bank is committed to provide banking services with speed,
comfort and convenience. The Kalupur Bank has a visionary growth plan focusing all business
strategies.
The Bank has 44 branches of which 33 are situated in Banks own premises. These branches are
spread over Ahmedabad, Sanand, Bareja, Bavla, Anand, Khambhat, Vadodara, Surat,
Gandhinagar and Mumbai.

2.3 MISSION

Kalupur Bank will provide to its customers, premier banking services through technology
upgradation.

2.4 VISION

Kalupur Bank will strive to emerge as the most preferred co-operative Bank by 2020.

2.5 MILESTONES OF KALUPUR COMMERCIAL CO.OP BANK.

The Bank which was opened in a small area of 250 sq.ft. In the year 1970 has now 33
premises of its own which are ultramodern and spacious.
The Bank started paying 12 % dividend from the year 1978 and achieved A class in
audit from RBI.
In the year 1975, the Bank got direct membership in the clearing house.
Because of effective administration, the Bank was honored to work as Administrator of
a weak co-operative Bank named as VIKRAM CO-OPERATIVE BANK LTD in the
year 1983.
In 1986, the Bank started frenchies from its own Head Office Building which was
inaugurated by the then Prime Minister Shri V.P. Singh.
In the year 1988-89, the Bank was permitted to accept NRI Deposits
In the year 1992, the Bank started Computer Division in the Bank. This was the first
step towards making the Bank as Techno Savvy Bank.
28

 In the year 1993-94. The Bank achieved top position amongst all co-operative Banks in
Gujarat
in
terms
of
Business
The Bank has maintained its number ONE rank till now.
In 1995, the Bank was permitted to work as Banker to the issue. This was a
noteworthy achievement. The Bank successfully handled three issues in one month.
In the year 1995, the Bank got the status of Multi State Scheduled Bank.
It was a unique honour. The Bank opened a branch in Mumbai.
In the year 1999, the Bank started Demat Department. At that time, the Bank was the
first co-operative Bank in the city of Ahmedabad to start Demat Dept and function as
Depository Participant (D.P.) of National Securities Depositories Ltd. (NSDL)
In the year 2003-04, the Kalupur Bank was authorized by the Ahmedabad Municipal
Corporation to collect property tax and Vehicle Tax.
The Bank has been permitted to work as Authorized Stamp Vendor by the
Government of Gujarat. 33 branches of the Bank are providing this services.
The Bank has entered into the business of General Insurance as Referred Agency with
Bajaj Allianz Co.
In the year 2005 the RBI permitted the Bank to start Real Time Gross Settlement
(RTGS) services, Now the Bank is linked to 78000 bank branches of the country for fund
transfer. The Bank gives RTGS / NEFT / NECS and speed clearing services.
The Bank was the first co-operative Bank in the state of Gujarat to be on RTGS
platform.
The Bank is a member of CCIL (Clearing Corporation of India Ltd ) which gives the
Bank an access to various dealing platforms for dealing in Government Securities, Call
Money and conducting collateralized Borrowing and Lending Obligation (CBLO)
The Bank is the first and only co-operative Bank amongst scheduled, District and State
Co-operative Banks in Gujarat to get license as an Authorized Dealer category 1, to
deal in Forex, from RBI in 2007.
The Kalupur Bank is the only Bank in Ahmedabad City with a Dealing Room for
Forex operations.
The Bank has installed 38 on site and 2 off-site ATMs.
The Bank provides SMS Banking facilities.

2.6 PRIZES AND AWARDS

UTKARSHA Award
(2003)

For zero NPA given by Gujarat State Co-Operative Union &

Gujarat State Urban Co-Operative Bank Federation.

Excellency Award

By Gujarat Times for Achievement in NRI / NRG Deposits.

29

Knowledge Revolution

Flood IT By Gujarat State Urban Co-Operative Bank

Federation.

Bank with Defference

By Gujarat State Urban Co-operative Bank's Federation

"SHERDIL" Gujarat
Award

By Govt. of Gujarat for Blood Donation camps.

2.7 FACTS & FIGURES

Organizational type : Primary Urban Coop. Bank

Legal Form
: Coop. Bank Registered under
: Multi coop. societies Act
Operational form : Scheduled Bank
Date established
: December 1970
Location
: Kalupur Bank Bhavan
Near Income Tax Circle
Ashram Road, Ahmadabad 380014
Phone & other
: Phone 079-27582020 - 26
Communication Fax 079 27544450
Web
: www.kalupurbank.com
Email
: info@kalupurbank.com
No. of members
: More than 46 thousand who have contributed a capital of
Rs.85.18 cr. By end of 2014-15 the bank has created reserves of
Rs.856.61 cr.
Turn over
: Deposits Rs.4755.71 cr.
Advances
: Rs.2728.75 cr.
Working Capital
: Rs.5991.32 cr.
Profit
: Rs.75.35 cr.

2.8 Financial Data

Share Capital

: 85.18 cr.

Bank owned Fund

: Rs.772.61 cr.

Net NPO

: 0%

Cash on hand, GOVT security investment and RBI deposit: 2762.89 cr.

After provision net profit: Rs.73.35 cr.

30

2.9 FUTURE PLANS:

The bank wants to open new 51 branches in all over Gujarat by 2015.

The banks will decrease the Non Performing Assets as soon as possible.

The future plan of the bank is that it wants to increase the investment by them through
investment.

E-banking and net banking facilities will be improved shortly.

The bank will improve their in house facilities like franking, ATM centers etc.

QUALITY CONTROL:

The bank wants to keep the positive attitude towards the customers from management side.

The management wants to solve the query of the customers on the spot.

2.10 DIFFERENT TYPES OF DEPOSIT ACCOUNT

Fixed deposits:
In India, fixed deposit (FD) is one of the most common forms of investment. It allows you to
invest money for a fixed period of time and most of the time at a fixed rate of interest.
Banks in the country offer fixed rate of interest, which means that the rate of interest will not be
change once the entire period of fixed deposit. Some banks like HDFC provide the option of
floating rate. Under this option a bank, as in this case, HDFC announces its interest rate every
quarter and accordingly the interest rate on the FDs change.
Savings bank account is the normal account where you can put and withdraw your money with
your convenience. Its the regular account that all of us open with a bank.
Since, savings account gives interest of only 3.5%, FDs are accepted as a better option, since
they give a better return depending upon the time span. A senior citizen will get up to 0.50%
higher rate of interest on their FD.

Features of fixed deposits:

31

The main features are as follows:

1. The main purpose of fixed deposits account is to enable to individuals to earn the higher
rate of interest on their surplus funds.
2. The amount can be deposited only once. For further such deposits, separate accounts need
to be opened.
3. The period of fixed deposit range between 15 days to 10 years.
4. A higher interest rate is paid on fixed deposits. The rate of interest is vary as per amount,
period and from bank to bank.
5. Withdrawals are not allowed. In the case of emergency, the banks are allowed to close the
fixed account prior to maturity date. In such case, the bank deducts 1% from the interest
payable on that date.
6. The depositor is given a fixed deposit receipt, which depositor has to produce at the of
maturity. The depositor can be renewed for the further period.

Advantages of fixed deposits:

1. A fixed deposit encourages the savings habit for a long period of time.
2. The fix deposit account enables the depositor to earn higher rate of interest.
3. The depositor can get the loan facility from the bank.
4. On maturity the amount can be used to make purchases of assets.
5. The bank can get the funds for the longer period of time.
6. The bank can lend such funds for short term loans to business.
7. Fixed deposits indirectly boost economic development of the country.
8. The bank can also invest such funds I profitable areas.

Disadvantages of fixed deposits:

1. FD as an investment is less risky than this aspect is the reason why its returns are lower
compared to other investment options.
2. Then there is an issue of liquidity, while your money is locked up with the bank, it is not easy
to withdraw at a moment's notice. In fact if you withdraw before the agreed duration, you will
be penalized.
3. There is no tax benefit in this investment, unlike the infrastructure bonds or the National
Savings Certificate (NSC). So, even from a taxation point this is not the best of investment
options.
32

33

Types of Fixed Deposit Accounts

1. Saving Bank A/c
A Saving Bank A/c can be opened with an initial deposit of Rs.500/- without Cheque Book
facility and Rs.1000/-with Cheque Book facility.
Eligible categories to open SB A/c:
1. Any individuals
2. Joint A/c with others in the form of 'either or Survivor', 'Former or Survivor', and 'joint'
etc.
3. Joint Hindu family (HUF)
4. Coop Societies, Clubs, Societies, Associations etc.
Interest rate for saving bank A/c is 4.00% per annum. A minimum balance of Rs.500/(without Cheque Book) and Rs.1000/- (with Cheque Book) has to be maintained in the account,
otherwise services charges are levied on monthly Basis.

2. Current Bank A/c

A Current A/c can be opened with the initial deposit of Rs.5000/-. It can be opened in the
name of individual, a Sole Proprietary Concern partnership firm, club, Religious Institution,
Association Govt. / Semi Govt. Dept., Local Bodies. As usual, all prospective applicants need to
fill in the Account opening forms wherein following documents are required to be attached:
Partnership firm:

Partnership

Deed

duly

attested

Private ltd. / public ltd. Company:

34

Copy of article of association & memorandum of association

Copy of certificate of incorporation.

All Current A/c need to be introduced properly from another current account A/c holder only.
Staff members are not allowed to introduce a Current A/c. A minimum balance of Rs.5000/- has
to be maintained.

3. Lockers A/c
Lockers of four different sizes viz. small, medium, large and extra large are available in the
bank which can be hired by any prospective customer for safe custody of their articles. A
prospective customers who wants to hire a locker, has to fill in embossing form and specimen
signature card. For getting a locker, the locker hire must open a SB A/c with the bank so that
annual lock rent can be charged by debiting that A/c. He has to keep a lien or minimum balance
in that account depending upon the size of the locker hired. The annual rates of Locker rent and
the lien are as follows.
Term Deposit for Locker
A minimum of Rs.10000/- has to be placed in Term Deposit by a locker hirer as per RBI
guidelines.
Nomination must for Individual Locker Holders
A Single locker holder must nominate someone in his locker A/c to receive the articles lying
in his locker after his deat

35

2.12 OTHER SERVICES PROVIDED BY KCCB

1. ATM Service:
Kalupur Bank is proud to offer services of ATM.
Any individual having savings bank account with one name or joint holders having
instructions to withdraw with one signature can have our ATM card.
If you have current account with sole proprietorship, or partnership account wherever the
withdrawal is permitted with single signature, the ATM card facility can be enjoyed. The
ATM card can also be used in overdraft accounts against fixed deposit.

2. RTGS Service:

RBA has implemented RTGS system for the banks in India, where banks can remit funds
to other banks through this mechanism. The RTGS system is managed by IDBRT,
Hyderabad, which connects all banks to a central server maintained at RBI.
Each bank maintains a pool accounts with RBI for inflow and outflow of funds
received/paid through RTGS. The bank has to monitor the balance in the account
throughout the day, so a so keep it sufficiently funded, to take care of outward
remittances. For customer remittances, the minimum amount for RTGS transfers Rs. 2
lac.

3. NEFT Service:
This is another fund transfer facility for banks in India, which runs on the batch
process method. This is used for small remittances by customers from an account
with one bank to another account in another bank. The funds adjustment for NEFT
is also done through the pool accounts maintained by individual banks.

4. Locker Facility
36

5. Stamp Franking:
Kalupur Bank has been permitted for stamp franking by Govt. of Gujarat. You can get
the facility of stamp franking at your nearest branch.

6. Bank assurance:
Kalupur Bank have NON LIFE INSURANCE PRODUCTS
referral agreement with BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD

The Products areAsset Insurance

Motor Insurance
Health Insurance
Travel Insurance
Other Insurance

7. SMS Banking.
8. AMC Property Tax
9. Pan Card Service
10. Any Branch Banking (ABB)
Any Branch Banking (ABB) is a facilit y for customers to operate their account from any
of networked branches. The branch where the customer maintains his account is the base
branch and the branch from where he carries out his transactions is referred as the remote
branches. Any Branch Banking facility is available in ALL branches of our Bank.

Facilities available under ABB:

Cash Withdrawal: Can withdraw cash from your account from any of our
branches by presenting a self drawn cheque. This facilit y is not extended for withdrawals
by any third party. Maximum amount of cash that can be withdrawn across the Bank on a
particular day is Rs 50,000/ - only

Cash Deposit: Deposit cash for credit of your account through any of our
branches. Maximum amount of cash that can be deposited across the Bank on a
37

particular day is Rs 50,000/ - only

Fund Transfers: Instant fund transfer between your accounts or between your
account and any third party account maintained at different branches.
Deposit of Local Cheques: You can deposit cheques payable at Ahmedabad at
remote branches for crediting the proceeds after realization to your account
maintained at base branches.
Repayment to Loan accounts: Now you can make repayments to your loans
such as Home Loan, Vehicle Loan, etc. held with your branch through any of our
Bank Branches by Cash / Local cheque.

Term deposit Transactions not allowed.

11. NRE Accounts:

NRE accounts can be opened as saving bank account, current account, recurring deposit
accounts or term deposit with minimum period of one year.
NRE account can be opened as joints accounts, in the mane of two or more non-resident
individuals, who are persons of Indian nationality or Indian origin. Opening of NRE
account, jointly with a person resident in India is not permitted.
No lien is permitted to be marked on balances held in NRE saving accounts.

12. NRO Account:

These accounts are Rupee accounts and can be opened and maintained by any person
resident outside India and also by Foreign Tourist, who are on a short visit to India on
tourist visa. The new accounts are to be opened by sending fresh remittances from abroad
or transfer of funds from NRO/NRE/FCNR accounts.
When a resident becomes a non-resident, his domestic Rupee account, has to be redesigned a san NRO account.
13. Adani Gas Ltd bills Collection Facility

38

CHAPTER 3:
LITERATURE
REVIEW

39

Anderson 1994Over the last four decades, the literature has defined and measured customer
satisfaction in many different ways. Satisfaction as pleasurable fulfillment; as such, the consumer
views consumption as satisfying some need, desire, goal, etc. in which its fulfillment is
pleasurable.
In spite of many definitions of customer satisfaction in the literature, a common way to define
customer satisfaction is to follow the approach of the expectancy confirmation/disconfirmation
paradigm.

Anderson and Sullivan 1993 customer satisfaction is delineated as the consumers

evaluation that Banking Facilities meet or fall to meet the customers expectations. Differently,
customer satisfaction consists of post-consumption judgment concerning product or service
quality, given pre-consumption expectations

Boulding et al. 1993 Customer satisfaction has generally been suggested to contain two such
different dimensions as a transaction-specific evaluation approach and an overall, cumulative
evaluation approach. That is, there exist two general conceptualizations of customer satisfaction
in the literature. Prior research has portrayed customer satisfaction as transaction-specific.
Customers satisfaction is seen as a post-consumption evaluative judgment of a particular
purchase experience or activity Another formulation to measure customer satisfaction, widely
used in recent studies, including studies utilizing the satisfaction metric in the ACSI data, is
overall or cumulative satisfaction, which is, in other words, relationship-specific. With this
formulation, overall satisfaction can be viewed as a customers overall satisfaction experiences
of these two formulations of customer satisfaction, overall or cumulative satisfaction has been
widely used with regard to customer satisfaction. On one hand, transaction-specific satisfaction
conceptualizes customer satisfaction as the outcome of a single transaction. Thus, this
transaction-specific satisfaction formulation may be too restrictive i.e., the transaction specific
satisfaction approach has a very limited predictive power maintains that overall satisfaction is
more appropriate for an analysis of the satisfaction relationship, inasmuch as the cumulative
40

satisfaction construct is capable of aggregating or blending individual satisfaction episodes.

Likewise, the overall satisfaction formulation is better at predicting consequent behaviors and
economic outcomes.

Yi, 1991 One of the most important recent aspects of this customer satisfaction metric is that
academics identify differences in customer satisfaction across individual customers and
competitive settings (product or service categories and firms).
For example, the effects of such customer characteristics as age, gender, income, and education
on levels of customer satisfaction. Customer satisfaction is one of the most important metrics in
marketing, since Bank regard customer satisfaction as one of the key business goals for
evaluating the effectiveness of their business operations. In addition, customer satisfaction is a
starting metric of the value chain between customer satisfaction, customer loyalty, banking
facility, customer satisfaction has been shown to positively impact operating margins, accounting
returns, returns on investment, and cash flow and shareholder value.

Anderson and Fornell 1993 Banks have invested a great amount of money on this metric, as
customer satisfaction investments represent the number one marketing research expenditure item
for most firms. Customer satisfaction can be seen as an essential measure used to oversee
business outcomes, decide on limited resource allocation, and provide rewards to management.
For the majority of firms, the pursuit of customer satisfaction is illustrated in their
communications, including advertisements, public relations releases, and mission statements.
With regard to this importance, a variety of marketing academics and practitioners have studied
customer satisfaction for the past forty years.
Oliver and DeSarbo 1988 The main consequence of customer satisfaction, has been defined and
measured in many various ways over the past decades. Early academic and practitioner research
focused on the customer satisfaction metric for several reasons, as discussed earlier.
41

Service process performance of an organization should be measured continuously to achieve

competitive advantage and this is possible through providing excellent service by any
organization. The quality of the products or the quality of customer service determines the degree
of customer satisfaction. The customer satisfaction not only means, satisfying the customers but
also customer retention in case of service failure. The organization should solve the complaints
through various service recovery strategies. It is mandatory to identify the impact of service
failure and customer feedback for the survival, success and prosperity of an organization. The
real victory of an organization is based on the degree of loyalty of the customers. Attraction,
retention and enhancement of the customer relationship are essential to maintain, delighted and
committed customers, who form the basis for the sustainable competitive position of the bank.
Providing excellent service quality is widely recognized as a critical business requirement. It is
not just a corporate offering, but a competitive weapon which is essential to corporate
profitability and survival. However, service quality, particularly within the Services sector,
remains a complex concept and there is little consensus as to the drivers for effective delivery.

Heskett et al (1994) The service profit chain, first proposed by heskett et al Within the service
The overall chain sees service quality driving customer satisfaction, which creates customer
loyalty leading to growth and profit. The specific relationship between employee satisfaction,
service quality and customer satisfaction has been the subject of a number of empirical studies.
The relationship is often described as the satisfaction mirror reinforcing the idea that business
success results from employee satisfaction being reflected in terms of customer satisfaction The
balance of evidence suggests that employee satisfaction is a key driver of service quality for
example, find that employee satisfaction directly affects both service quality and customer
satisfaction

Services are different in three critical dimensions:

- Services are intangible; as such they are more akin to performances rather than objects

42

- Services are heterogeneous; delivery can vary from provider to provider and customer to
customer
- Production and consumption of Services are inseparable. Services are not manufactured
remotely and then delivered intact to the customer.
Banking customers, find a much stronger relationship between technical quality and satisfaction
than functional quality and satisfaction. Critically, it is the performance of the overall basket of
processes, rather than performance of one or two individual processes, which determines
satisfaction levels. There is a direct causal relationship between staff satisfaction, service quality
and customer satisfaction. Within the service profit chain literature, the satisfaction mirror
simplifies this relationship suggesting that staff satisfaction is a direct driver of customer
satisfaction.

3.2 Madhavpura Experience

When in the year 2001 there was a financial scam at Madhavpura Cooperative Bank many
people became susceptible towards coop. banking system. Since Kalupur Bank was also formed
by traders like Madhavpura, therefore customers concern about their deposits was quite genuine.
They started with drawing money from the Bank, particularly from its Kalupur branch which has
mainly deposits from traders. During that time, the bank had a very strong deposit base of
Rs.1298 cr. majority of which was in form of long-term deposits.

43

The management took various steps to win over the confidence of the customers.
But customers wanted to be on the safe side and withdrew their deposits. The Management put
massive shamianas (tents for shadow), arranged water and food for the depositors, continued,
and allowed the customers beyond banking hours to withdraw their deposits. After few days
when the depositors realized that the Bank has not been discouraging withdrawals and even
making all arrangements for the convenience of the depositors, they started depositing back their
withdrawals and reposing their faith with Bank.
Even today the customers have full confidence on the credibility of the customers and the Bank.
The damage was done to cooperative sector by Madhavpura Bank. It had a chain reaction. At
many places in the country, people lost faith in cooperative banking system. Consequently, large
number of Urban Banks collapsed and Kalupur Bank too suffered a dent. Their deposit base got
depleted from Rs.1298 cr. in 1999- 2000 to Rs.731 cr. post Madhavpura incident. The
Management recovered to show upward trends in the deposits, thereafter once again the
members/customers realized about the credibility of the Bank.

Case Study prepared by Prof. Paramjit Sharma, VAMNICOM, Pune

3.3What Bank does????

Recognized by RBI as scheduled Bank in 1988 the Bank enjoys competitive edge over its
counter parts on account of this advantage. Besides per-forming banking activities to the benefits
of its members, the Bank undertakes score of non- banking activities. It has been a top ranking
scheduled Urban Bank of Gujarat a first among Urban Banks in Gujarat in terms of own funds
and deposits. Out of 31 branches of Bank, 28 branches are operating from bank's own premises.
The bank has set up goals for it and plan for their achievement. These goals were: - 1. To develop
the bank into an ideal urban bank. 2. To further fine-tune the corporate governance 3. To exhibit
transparent administration by the BODs 4.To provides new and value added services to our
44

members. One can discernibly notice plans and their implementation by the management of the
Bank.
The other deposits like recurring deposits etc., have attracted less than 1%. It shows confidence
of the members and the customers on the bank that is why almost 69 percent of their deposit base
is in form of term deposits which gives lot of leverage to the Bank to advance the funds for
longer duration. The Kalupur Bank is the first Ahmadabad based bank to works depository
participant of National Securities Depository Limited (NSDL). It offers to its customers a whole
range of depository services. NSDL carries out its depository functions through a network of
'Depository Participants' who conduct business with the investors. The depository system
functions very much like the banking system where one can open an account and deposit/with
draw/transfer the money. Similarly one can open a security account on the participants' to
deliver/ receive securities. The Bank also offers d-mat services at 9 branches viz. Kalupura, SM
Road, Patrakar Colony, Sola Road, Panchvati, Drive-in, Vasna, Mani Nagar and Bapu Nagar
branches. Through these services bank facilitates opening d-mat accounts, accept d-mat requisite
forms, issue delivery slips and also accept delivery slips for market and off-market trades. Bank
has tied up with Max New York Insurance Co. for life insurance and with Bajaj Allianz for nonlife insurance.

Other important features

The Bank encourages bright children of its customers and shareholders through scholarship as
monetary incentive, so that they could complete higher education. Also, Bank gives immediate
relief of Rs.10,000/- to the family of deceased member to enable them to perform the last rites of
the departed soul. For their own customers, the Bank organizes various training programmes in
the area of technology, modern banking and better customer services for development of its
human resources. The Bank has constituted various sub- committees of the board to manage
branches and other important aspect of banking

Governance Structure
45

The Bank is collectively owned by its members, which are more than twenty seven thousand in
number. Majority of them are small traders from Kalupur Mandi, but traders from other areas in
Ahmedabad have also been admitted. The members play pivotal role in governance of the bank
in annual general meetings, branch level committees & during get together with the customers.
Though six hundred to seven hundred members out of 27,000 members attend the AGM but their
participation in the decision making of the Bank has been of great importance. Even during
Madhopura crisis a questionnaire was distributed to all branches to contact the members and get
their views about the stability & credibility of the Bank. The Bank has 15 members in the Board
including the Chairman, Managing Director, two co-opted professional board members and the
General Manager as ex-officio board member. The Chairman and Vice Chairman are elected
amongst the Directors. The Chairman, Vice-Chairman and Managing Director have made rich
contributions to take the Bank to greater heights. There are two professional Directors co- opted
for advice. The term of the board is for five years, but each year few members retire and on
rotation basis, election is held for filling up the vacancies. The Directors meet during the last
week of every month. The agenda is prepared in advance and distributed to the board members
well in advance. Each item is discussed at length and Chairman seeks views of all members
including the professionals. Besides Director's meetings, sub committees have been formed to
facilitate Director's work. Sub committees like Committees of Directors, Special Committee of
Directors, Investment committee, Audit Committee, Assets Liability Management Committee,
Information and Technology Committee, Recovery Committee, Building Committee etc., Have
been formed. This committees meet at least once in a month and if need be they can meet as
many times, if required. The meetings are held in a harmonious atmosphere and all decisions are
taken unanimously after an in depth, transparent deliberation on a democratic note.
The Bank does not have system of enclosing a copy of Annual Report along with the notice to
the members for attending the Annual General Meeting. The members can obtain the copy of the
report from Share Department at Head Office of the Bank and in certain cases annual report can
be obtained from nearest branch of the Bank. This practice, though not desirable, must have been
followed as only twenty to twenty five percent of the members attend the AGM. Definitely, this
practice saves cost, but there could be a likelihood of members attending the AGM without
having sufficient information about the happening in the Bank during the previous year. The
Bank needs to be more compassionate towards members' needs, services and communications.
46

Except AGM and customer meets there appears to be no other interactions between the members
and management. The frequency of meeting and participation needs to be strengthened and
increased.
Lot of transparency has been noticed in the dealing of management with customer, members and
reporting. The schedules of disclosure in the Annual Report has included information on
movement of CRAR, investments, advances against real estate, advances against housing, cost of
deposits, advances to Director, their relatives and companies in which they are interested,
movement of NPAs, profitability, profit per employee and investments in public sector securities.
The Directors are also involved in training programmers in-house or organized outside the
Bank. They have attended training programmers on Leadership, Financial Management, Branch
Management, Micro- financing, Assets Liability Management, Legal aspect of banking etc.

Measures of Success
The financial growth of the Bank has been quite astonishing. It has touched a deposit base of
nearly Rs.1300 cr. in the year 1999-2000. But for Madhopura incident, the Bank could have
easily crossed two thousand cr. by now. Still by the end of 2005-06, it has deposit base of 1083
cr. advances to the tune of 579 cr. and profit of more than eighteen cr. Besides financial strengths
the bank has an excellent infrastructure. All branches, including head office are owned by the
Bank and some of the branches have been recently constructed and confidently could be matched
with any multi-national Organization. The customers are quite satisfied with the services of the
Bank. To review any lapse on the part of the Bank, it seeks suggestions from the customers
during get together at branch level. The members get credit facility without much delay from the
Bank and continued to get dividend @ 12% p.a. from the Bank. The Bank has more than 440
customers, who are quite committed towards the development of the Bank. The Bank nearly
spends ten cr. towards salaries, allowances, provident fund and bonus to customers, which is
almost 10% of their total expenditure. The working environment of customers are not less than
any standard bank and their training needs are met through in-house or through training at other
institutions. The bank has started a separate division for marketing its services. This division has
shown excellent results.

47

IT interventions:
The Bank has seventeen customers headed by a Manager for providing computerized solutions to
the bank. It is only first of its kind Bank, which has developed its own software in banking. For
all its services, the Bank is served by these customers who have provided software for all the
services provided by the Bank, including D-mat at 8 branches. All the branches are linked with
each other and concept of any branch banking apply. The customers can withdraw the money
from any of the branch of the Bank. The ATM services are available at Ashram Road, St.
Xavier's, Vastrapur and Sola Extension counter, Swastik, SM Road, Bhopal, Bapu Nagar & 4
other branches. The Bank is planning to further this facility to seven more branches. Besides
technology the IT centre also organizes training programmers for the customers at the computer
lab where simultaneously 20 persons can be given hands on practice training.

Merger with Bajaj Allianz:

Kalupur Bank ties up with Bajaj Allianz Our Regional Bureau / Mumbai/ Ahmadabad March 28,
2006 Kalupur Commercial Co-operative Bank (KCCB)has signed an MOU for distribution of
general insurance products with Bajaj Allianz General Insurance (BAGI). This is the 12th Bank
assurance tie up for BAGI.

Chapter 4:
48

Research
Methodology

49

4.1 OBJECTIVE OF RESEARCH

Main objectives:
To get know about the Customers satisfaction of the bank
To study the functional area of the bank
To see the facilities of the banking sector
How busy customers have been handled by the customers working in the bank
Banking is the activity of my interest. I have got the idea about this topic during my summer
internship programme under which I have visited Kalupur commercial cooperative bank. Here I
come to know the importance of customer requirement and the way they fulfill the same.
I can say in any field weather it is private or public, wholesaler or retailer, service sector or
business it is very essential to satisfy their customers. Customers are the real asset of any firm so
it is the first and for most function of the company to understand their Customers needs. By
understanding their customers need it can automatically satisfy their customers fullest. Hence I
have selected this topic.
Game of statistics is always attracts me and banking is one the place where we can learn it very
well. So I have selected bank and have preferred Customer satisfaction of KCCB as topic for
my project.

4.2 RESEARCH DESIGN

A research design is purely and simply the framework or plan for the study that guides the
collection and analysis of the data it is a blue print that is followed in completing a study.
Research is the plan structure and strategy of investigation conceived to us to obtain answer to
research question and control variance. A research designs the specified methods and procedure
for acquiring the informal needed.
50

It is overall operational pattern framework of the project that stipulates what information is to be
collected from which sources by what procedures

Sample design used in the project

Particulars
Population
Sampling Frame
Sample Size
Sampling Source
Sampling Technique
Measurement Technique
Method of Analysis
Tool used for Analysis

Sample Design
Kalupur Bank customers
Kalupur Bank customers
100
Kalupur Bank customers
Convenience Sampling
Structured Questionnaire and formal Interview
Frequency Distribution & percentages
SPSS Software15.0 has been used.

4.3 Data collection Method

Sources of Data: QUESTIONNAIR

SAMPLE SIZE: 100

51

Required data has to be carried out in order to study the facts and figures. There are two types of
data
1. Primary data
2. Secondary data
A combination of both is utilize

1. Primary data
Primary data is the first hand information collected from five the Kalupur Bank in the industry
for benchmarking of customers satisfaction & banking facility by using unstructured
questionnaire. To find out perspective of the customers towards the satisfying process the data is
collected through structural questionnaire

2. Secondary data
The secondary data was collected from company records, various books and internet.

Data collection instrument: Questionnaire for costumer survey

Analysis and Interpretation
After the data collection, it was compiled, classified and tabulated manually and with help of
computer. Then the task of drawing inferences was accomplished with the help of percentage and
graphic method.

1. Gender:
Response
Male
Female

No. of Respondent
76
24

%age of Respondents
76.0
24.0

52

24%
Male
Female
76%

Interpretation:
From the above graph it is clear that majority of the respondents are male i.e. 76% and 24%
respondents are female.

2. Age:
Response
18 28
29 - 39
40 50
Above 50

No. of Respondent

%age of Respondents
14
31
45
10

14.0
31.0
45.0
10.0

53

18 28

10% 14%

29 - 39
40 50

45%

Above 50

31%

Interpretation:
From the above graph it is clear that majority of the respondents. I.e. 45% are between 40-50 ,
31% are between 29-39, 14% are between 18-28 and 10% are above 50.

3. Occupation:
Response
Businessman
Student
Doctor
Other

No. of Respondent

%age of Respondents
49
10
5
36

49.0
10.0
5.0
36.0

54

Businessman

36%
49%

Student
Doctor
Other

5%

10%

Interpretation:
From the above graph it is clear that majority of the respondents. I.e. 49% are Businessman,
36% are other, 10% are Student and 5% are Doctor.

55

4. Annual income:
Response
< 3,00,000
3,00,000 5,00,000
5,00,000 10,00,000
Above 10,00,000

No. of Respondent

%age of Respondents
25
21
39
15

15%

25.0
21.0
39.0
15.0

25%
< 3,00,000
3,00,000 5,00,000
5,00,000 10,00,000

39%

21%

Above 10,00,000

Interpretation:
From the above graph it is clear that majority of the respondents annual income. I.e. 39% are
between 500000-1000000, 25% are between <300000, 21% are between 300000-500000 and
15% are between Above 1000000.

5. Do you think that your bank caters all your banking needs?
Response
Yes
No

No. of Respondent

%age of Respondents
63
37

63.0
37.0

56

37%
Yes
No
63%

Interpretation:
From the above graph it is clear that 63% of the respondents are think that your bank caters all
your banking needs and the rest is not think about it.

57

6. For the past how many years you have account with this bank?
Response
1-5
6-10
11-20
Above 20

No. of Respondent

%age of Respondents
19
36
34
11

11%

19.0
36.0
34.0
11.0

19%
1-5
6-10
11-20

34%

Above 20
36%

Interpretation:
From the above graph it is clear that majority of the respondents account with this bank. I.e.
36% are between 6-10, 34% are between 11-20, 19% are between 1-5 and 11% are Above 20.

Response
Current
Savings
Loan a/c
Demat

No. of Respondent

%age of Respondents
48
21
25
6

48.0
21.0
25.0
6.0

7. What kind of account do you maintain in this bank?

58

6%
Current

25%

Savings

48%

Loan a/c
Demat

21%

Interpretation:
From the above graph it is clear that majority of the respondents are maintain Current a/c i.e.
48%.25% are maintain Loan a/c, 21% Savings a/c and 6% demat a/c.

8. Which of the following facilities is given more importance in your bank?

Response
Loan facilities
O/D facilities
ATM facilities
Locker facilities

No. of Respondent

%age of Respondents
18
13
40
29

18.0
13.0
40.0
29.0

59

18%
29%

Loan facilities
O/D facilities

13%

ATM facilities
Locker facilities

40%

Interpretation:
From the above graph it is clear that 40% of the respondents is given more importance in ATM
facilities, 29% in Locker facilities, 18% in Loan facilities and 13% in O/D facilities.

9. Does your bank offer competitive service charge?

Response
Yes
No

No. of Respondent

%age of Respondents
78
22

78.0
22.0

60

22%
Yes
No
78%

Interpretation:
From the above graph it is clear that 78% of the respondents said bank offer competitive service
charge and the rest said bank had not offer competitive service charge.

Response
Yes
No

No. of Respondent

%age of Respondents
58
42

58.0
42.0

10. Do you think your bank offers competitive intrest rate?

61

42%

Yes
58%

No

Interpretation:
From the above graph it is clear that 58% of the respondents said bank offer competitive intrest
rate and the rest said bank had not offer competitive intrest rate.

62

11. Do you use the service of alternates banking?

Response
Yes
No

No. of Respondent

%age of Respondents
61
39

39%

61.0
39.0

Yes
61%

No

Interpretation:
From the above graph it is clear that 61% of the respondents use the service of alternates
banking and the rest not use the service of alternates banking.

63

Response
Very Poor
Poor
Average
Good
Very Good

No. of Respondent

%age of Respondents
20
3
26
39
12

20.0
3.0
26.0
39.0
12.0

12. What do you feel about over all service quality of your bank?

12%

20%

Very Poor
3%

Poor
Average
Good

39%
26%

Very Good

Interpretation:

64

13. Would you recommand this bank to your friends,relatives?

Response
Yes
No

No. of Respondent

%age of Respondents
86
14

86.0
14.0

14%

Yes
No

86%

Interpretation:

65

From customer point of view:

Customer service, like any aspect of business, is a practiced art that takes time and effort to
master. All you need to do to achieve this is to stop and switch roles with the customer. What
would you want from your business if you were the client? How would you want to be treated?
Treat your customers like your friends and theyll always come back.
Under survey of regular visitors of Kalupur commercial cooperative bank most of them are
satisfied with the service provided by the Kalupur Chokha Bazar branch like:
Prompt answer of the query by the customers
Minimum account opening charges
Bank charges is fair enough
The loan procedure is too time consuming, so it should be make easier and quick.
Limitation related to deposits is less than any other branches, so bank should increase its
deposits.
There are also some negative findings from customer point of view. They are as follows:
There is parking problem outside Kalupur Chokha Bazar branch.
There is no online service in the bank.
The customers have to wait due to slow system.
There is a technical fault in phone alerts etc.

66

LIMITATIONS OF THE STUDY

It is said, Nothing is perfect and if the quite is true, I am sure that there would be few
shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies as far
as possible but few would have reminded due to limitations of the study. These are:
The research was carried out in a short period.
Limited sample size.
The information given by the respondent might be biased some of them might not be
interested to given correct information.
Some of the respondents of the survey were unwilling to share information.

Conclusion:

67

Bibliography:
NEWSPAPERS:
Business standard
Economics times
Case Study prepared by Prof. Paramjit Sharma, VAMNICOM, Pune
The Indian Banker

BOOKS:
68

 Advance banking management by Mc Millan

Annual report of KCCB

M.Y.KHAN, INDIAN FINANCIAL SYSYEM, 3rd edition Publication by TATA

McGraw hill.

Bibliography:
www.kalupurbank.com
kalyan-city.blogspot.in
www.goodreturns.in
www.nos.org

Anderson, E.W & Mittal, V. (2000), Strengthening the Satisfaction-Profit Chain,

Journal of Service

Research, Vol. 3, No. 2, pp. 107-120

Armistead, C. (1990), Service operations strategy: framework for matching the service
operations task
and the service delivery system, Marketing Science, Vol. 12, No. 2, pp. 6-17

QUESTIONNAIRE
1. Name : ___________________________________________
2. Gender :
( )Male
( )Female
3. Age :
(A) 18 28
(C) 40 50
4. Occupation :
(A) Businessman
(B) Doctor
5. Annual income :

(B) 29 - 39
(D) Above 50
(B) Student
(D) Other
69

(A) < 3,00,000

(B) 3,00,000 5,00,000
(C) 5,00,000 10,00,000
(D) Above 10,00,000
6. Do you think that your bank caters all your banking needs?
( ) Yes
( ) No
7. For the past how many years you have account with this bank?
(A) 1 - 5
(B) 6 -10
(C) 11 20
(D) Above 20
8. What kind of account do you maintain in this bank?
(A) Current
(B) Savings
(C) Loan a/c
(D) Demat
9. Which of the following facilities is given more importance in your bank?
(A) Loan facilities
(B) O/D facilities
(C) ATM facilities
(D) Locker facilities
10. Does your bank offer competitive service charge?
(A) Yes
(B) No
11. Do you think your bank offers competitive intrest rate?
(A)Yes
(B) No
12. Do you use the service of alternates banking?
(A) Yes
(B) No
13. What do you feel about over all service quality of your bank?
(A) Very Poor (B) Poor (C) Average (D) Good (E) Very Good
14. Would you recommand this bank to your friends,relatives?
(A)Yes
(B) No

70