A

SUMMER TRAINING PROJECT REPORT

ON
Retail Advance in Jammu and Kashmir Bank Ltd.

Submitted by
Mehak Pandita

In partial fulfilment of the requirement for the award of degree of

MASTER’S OF BUSINESS ADMINISTRATION

Mehak Pandita

Page | 1
 ACKNOWLEDGEMENT

I would like to thank everyone who played an important role in the

completion of my thesis:

My internship supervisor “Miss. Ritu Malhotra Branch Manager,

J&K Bank Muthi Gaon” for their steadfast guidance, professional
knowledge and unwavering support throughout the internship period.
Their understanding and guidance are essential in the success of the
project.

I am indebted to the entire team at J&K Bank, for affording me the

opportunity to immerse myself in a professional banking environment
and for their willingness to share their wealth of knowledge and
experiences.

I would also thank my Institution and my faculty members without

whom this project would have been a distant reality.

Finally, I would like to thank my family and friends for their support,
encouragement and understanding throughout this journey. It must be
acknowledged that the results of this project were achieved through
the joint efforts and support of these people and the opportunities
provided by J&K Bank.

Sincerely,

Mehak Pandita

Page | 2
 CONTENT

CHAPTER
TOPIC PAGE NO.
NO.
1 INTRODUCTION 4– 16

2 REVIEW OF LITERATURE 17 – 19

3 INDUSTRY AND COMPANY PROFILE 20-42

4 RESEARCH METHODOLOGY 43 – 46

5 DATA ANALYSIS AND INTERPETATION 47 - 61

6 FINDING, SUGGESTION AND CONCLUSION 61 – 64

7 BIBLIOGRAPHY, REFERENCES 65- 65

CHAPTER - 1

Page | 3
 INTRODUCTION

INTRODUCTION TO BANKING
“What is so special about banks?” This project aims to offer some insights into the nature of
the banking business and what makes banks ‘special’.
A Bank is financial institutions that accept the deposit and channels that deposit into lending
activities directly or through the capital market. A bank connects customers which have
capital deficits to those customers surplus. The banking industry in India is facing certain
challenges i.e., challenges of quality services, customer satisfaction, customer retention,
customer loyalty. Retail Banking plays a major role in achieving customer satisfaction, giving
them opportunity to access to banking easily in day-to-day life and creating the brand loyalty
in the banking sector.

SERVICE WITH SMILE:-

Jammu and Kashmir Bank Ltd. (J&K Bank) is a scheduled commercial Bank and one of the
oldest private sector Bank in India, incorporation in 1938. Bank is listed on NSE and BSE
and has its Corporate Headquarters at Srinagar, J&K. It has a base of 14026 permanent
employees as November 2022. The Bank registered a total business turnover of over advance
82285.45 crore deposit 122037.00 crore as on march 31,2023.

PRODUCTS
• Retail Banking
• Car Loan
• Corporate Banking
• Treasury
• Transport Loan
• Personal Loan and Insurance
• Credit Card
• Debit Card
• Mpay

OPERATING INCOME
5502.00 Crore (US$630 millon2021)

NET intrest INCOME

4745.00 Crore (US$61 millon2021)

OTHER INCOME
756.00 Crore (US$9.15 million)

Operating Expenses

Page | 4
3643.00 Crore (US$441.20million)

ACTUAL OP PROFIT
1858.00 CRORE

TOTAL ASSEST
145,962.26 Crore (US$17 billion2020)

NET PROFIT
1197.00 Crore

Today’s banking customers will settle for nothing less. The customer has come to realize
somewhat belatedly that he is king. The customer’s choice of one entity over another as as
his principal bank is determined by consideration of service quality rather than any other
factor. He wants competitive loan rates but at same time also wants his loan or credits card
application processed in double quick time. He insists that he be promptly informed of
changes in deposit rates and service charges and he bristles with “customary rage” if his
bank is slow to redress any grievance he may have. He cherishes the convenience of
impersonal net banking but during his occasional visits to the branch he also wants the
comfort of personalized human interaction and facilities that make his banking experience
pleasurable. In short, he wanted financial house that will more than just clear his cheque and
updates his passbook: he wants that cares and provides great services.

Page | 5
WHAT IS BANKING ?
Banking is a business of protection money for other. Banks lend this money, generating
interest that creates profits for the bank and its customers.
A Bank is a financial instruction licensed to accept deposits and make loans. But they may
also perform other financial services. The term “Bank” refers to many different types of
financial institutions- including bank and trust companies, saving and loan association, credit
union or any other type of instruction that accepts deposits.

BANKING ORIGIN ?
A bank is a financial institution that accepts deposits from the public and creates a demand
deposit while simultaneously making loans. Lending activities can be directly performed by
the bank or indirectly through capital markets.

Because banks play an important role in financial stability and the economy of a country,
most jurisdictions exercise a high degree of resolution over banks. Most countries have
institutionalized a system known as fractional-reserve banking, under which banks hold liquid
assets equal to only a portion of their current liabilities. In addition to other regulations
intended to ensure liquidity, banks are generally subject to minimum capital requirements
based on an international set of capital standards, the Basel Accords.

Banking in its modern sense evolved in the fourteenth century in the prosperous cities of
Renaissance Italy but in many ways functioned as a continuation of ideas and concepts of
credit and lending that had their roots in the ancient world. In the history of banking, a
number of banking dynasties– notably, the Medici’s, the Fugger’s, the welders, the
Berenberg’s, and the Rothschilds – have played a central role over many centuries. The oldest
existing retail bank is banca monte Dei Paschi di Siena (founded in 1472), while the oldest
existing merchant bank is Berenberg Bank (founded in 1590).

A Bank is a financial institution which performs the deposit and lending function.
A Bank allows a person with excess money (saver) to deposit his money in the bank and earns
and interest rate. Similarly, the bank lends to a person to needs money (investors/borrower) at
an interest rate thus the bank act as an intermediary between the saver and borrower

The bank usually takes a deposit from the public at a much lower rate called deposit rate and
lends the money to the borrower at higher interest rate called lending rate.

The difference between the deposit and lending rate is called ‘net interest spread ‘and the
interest spread constitutes the bank income.

Page | 6
Banks and banking in India have been classified into various groups. In its activities, each
group has its own set of advantages and disadvantages. They have their own distinct target
audience. Some work exclusively in the rural sector, while others work in both rural and urban
settings. The majority of them only serve cities and major towns.
The banking industry is one of the most essential financial pillars of the financial sector, and
it is critical to the economy’s functioning. It is critical for a country’s economic development
that its trade, industrial, and farm funding needs are handled with greater commitment and
responsibility. As a result, a country’s progress is inextricably related to the development of
banking. In today’s economy, banks should be viewed as development leaders rather than
money merchants. They play a crucial role in deposit mobilization and credit disbursement to
many sectors of the economy.
The Reserve Bank of India (RBI), commercial banks, cooperative banks, and development
banks comprise India’s banking system (development finance institutions). The core of
India’s financial system is these institutions, which serve as a meeting point for savers and
investors. Banks play a vital role in the development of poor countries by mobilizing
resources and efficiently allocating them.

THE FEATURE OF INDIAN BANKING SYSTEM:

Page | 7
1. Deals with Money.
A bank’s main characteristic is that it handles all financial transactions. You can put your
money in a bank account, for example, to store it safely, and you will be interested in the
money you save in the account.

2. Provides Loan.
Banks gain additional money by providing loans for a variety of products. The bank earns the
additional funds by lending money to the qualifying person at predetermined rates.
Banks now provide loans for a variety of purposes, including study loans, vehicle loans,
housing loans, personal loans, and so on.

3. Withdrawals and Payments Facility.

Customers can use a bank’s numerous payment and withdrawal services to receive their
money quickly and easily. Customers can use cheques and draughts to withdraw money, as
well as ATMs established by banks at various sites throughout the city.

4. Internet services.
Modern banks now provide internet services, which is another element of a bank. The growth
of the internet and its integration into the banking industry has made it even easier for
customers to do numerous transactions. Through their apps, banks are providing Retail
services. You can pay your bills, buy groceries, and shop without having cash on you.

5. Business.
Banking’s sole purpose is not to supply consumers with banking services. To make additional
money, all banks are involved in subsidiary enterprises. Their only responsibility is to deliver
optimum customer satisfaction and maximum interest rates in order to attract more clients to
bank with them. To make a profit, money is moved from one hand to the next.

THE IMPORTANCE OF BANKING SYSTEM:

• Insufficient capital formation makes economic development difficult in a country.

Commercial banks are encouraging individuals to save their money and mobilize it for
beneficial uses at this time.
• Credit creation boosts output, boosting economic growth and, in turn, creating a large
number of job prospects.
• Commercial banks promote balanced regional development in India by providing the
required financial infrastructure and money to backward areas.
• By providing timely loans to agricultural farmers, commercial banks aid in the
promotion of the primary sector.

Page | 8
 • They offer advanced loans to consumers for the purchase of assets such as residences,
consumer goods, and furniture, among other things, and they encourage individuals to
pursue a higher level of living.
• The banking sector plays a significant part in the Indian economy, as commercial banks
support the Indian government in achieving each aim of the country’s planned economic
development.
• For both internal and external trade, commercial banks offer the necessary financial
backing and infrastructure.

THE HISTORY OF THE BANKING SYSTEM IN INDIA

One should know the history of the banking system in India. Thus, we have gathered some
important points about the history of the banking system in India.
Did you know the first bank of India, ‘Bank of Hindustan,’ was established in 1770? Yes, you
heard it right! In 1770. The bank was located in Calcutta, which later ceased its operations in
1832.

During that era, more than 500 banks registered themselves and trying to flourish, but only a
few of them managed to survive, including the Bank of Bengal (1809), Bank of Bombay
(1840), and Bank of Madras (1843).

Note: Bank of Calcutta (The oldest commercial bank in India) was established in 1806. After
3 years, the bank was issued a royal character and changed its name to the Bank of Bengal.

When the British Empire was ruling India, the 3 banks mentioned above were established. All
these banks were merged to form the Imperial Bank of India in 1921. In 1955, after India’s
independence, the name of Imperial bank was changed to the State Bank of India (SBI),
which is carrying out operations even today.

In addition, SBI is the largest public sector bank in India and is serving numerous customers
through its impeccable services.

TYPES OF INDIAN BANKS

The Indian Banking System Structure is divided into the following categories:

1. Scheduled Banks.
Scheduled banks; whose paid-up capital is more than Rs 5 lakhs. These banks do not harm the
interest of the depositors. Some of the scheduled banks in India are Bank of India, Bank of
Baroda, Allahabad Bank, Andhra Bank, Indian Bank, Dena Bank, Canara Bank, and Bank of
Maharashtra.

Page | 9
2. Non -Scheduled Banks.
Non-Scheduled banks do not comply with the guidelines specified by the RBI (Reserve Bank
of India). These banks are opposite of Scheduled Banks, which implies the paid-up capital of
non-scheduled banks is less than Rs. 5 lakhs. This category of banking system follows CRR
conditions.

3. Central Bank.
The Central bank of India is responsible for regulating and guiding other banks in the country.
It is a chief bank known as the ‘banker’s bank’ or the ‘government’s bank.’

In India, the RBI is the central bank whose primary function is to emanate our country’s
currency and execute financial strategies, approaches, and determining policies.
Simultaneously, all the activities related to foreign exchange are looked over by the central
bank.

4. Cooperative Banks.
Cooperative banks carry out all the activities under the guidelines of the state government.
These banks’ primary objective is to ensure public welfare and social well-being, which is
achieved by offering loans to people.

5. Commercial Banks.
a. Public Sector Banks: The share of public sector banks is owned by the government.
At present, there are 12 public sector banks in India, including SBI, Indian Overseas Bank,
Bank of Baroda, and many others.

b. Private Sector Banks: The majority of the share is held by the business houses or
private stakeholders. Some of the private sector banks include ICICI Bank, HDFC Bank,
Axis Bank, etc.

c. Foreign Banks: Foreign banks manage their operations headquartered overseas and
carry out the functions under the regulation provided by the central government of India. One
of the examples of foreign banks in India is Citi Bank.

6. Development Bank.
These are specialized financial institutions that provide long-term and short-term loans to
entrepreneurs at a low rate of interest as compared to other banks. Name a few of the
development banks to include Industrial Financial Corporation of India, Industrial
Development Bank of India, and India’s Industrial Credit and Investment Corporation.

Page | 10
7. Land Mortgage Bank’s
These banks are also known as the Land Development Banks. These banks were incorporated
to provide long-term loans to the farmers at a low rate of interest. Land Mortgage Bank’s
primary objective is to mortgage farmer’s land and provide them loans against it without the
need for extensive paperwork.
[Link] Rural Banks.
Regional Rural Banks were established to ensure the welfare of the weaker section of the
rural population. The primary purpose of these banks was to meet all the requirements of the
unprivileged people.

9. Exchance Banks.
Exchange banks are primarily involved in the activities related to buying and selling of
foreign exchange. The purpose of these banks is to boost international trade.

10. Exim Banks.

Exim banks provide great support to the importers and exporters. These banks are also known
as ‘Export-Import Bank’ granting long-term financial assistance to the exporters and
importers.

WHO INDRODUCE THE BANKING SYSTEM IN INDIA:

The history of the banking system in India is not hidden from anyone. By now, you would
have got extensive information about the Indian banking system’s history. However, do you
know how did the banking system in India start? Or who introduced it in our country?
The origin of the banking system can be effortlessly traced to when the bank of Calcutta was
founded. While the British people were ruling the country, the Union Bank of Calcutta was
established on 2nd June 1806. After some years, with the foundation of the English Agency
Houses in Calcutta and Bombay, the banking in India experienced a significant boost.
Allahabad Bank was the first bank to be owned by an Indian. The Allahabad bank was
established in 1865. Then, in 1895, the Punjab National Bank was incorporated and started
operating. Soon after that, a series of commercial banks were established between 1906-1913,
such as Bank of Baroda, Bank of Mysore, Canara Bank, Central bank of India, Indian Bank,
etc.

In 1935, the Imperial Bank of India was founded with the amalgamation of three presidency
banks at that time (Bank of Bombay, Bank of Madras, and Bank of Bengal). After some
years, the Imperial Bank’s name was changed to the State bank of India.

Page | 11
Even the pivotal regulatory banking body of our country, the Reserve Bank of India, was
established in 1935 on the recommendation of the Hilton-Young Commission. However,
during that phase, the requirements of the weaker section of society (rural and agriculture
sector) were neither fulfilled nor given any consideration.
WHAT ARE THE INDIAN BANKING SYSTEM AND ITS
CHARACTERISTICS;

Indian Banking System can be classified as:

1. Oranized Banking.
Organized banking in India is under the central bank’s control, which is RBI, and other
financial regulatory bodies named SEBI and IRDA.

Organized banking is further classified into 2 categories named Banking Institutions and
Nonbanking institutions.
a) Some of the banking institutions include India Infrastructure Finance Company Ltd,
Acute Ratings and Research Limited, Industrial Finance Corporation of India, National
Housing Bank, and Small Industries Development Bank of India.

b) Some of the non-banking institutions include Bajaj Finance Limited, Power Finance
Corporation Limited, Muthoot Finance Limited, HDB Finance Services, Tata Capital
Financial Services Ltd., and Mahindra & Mahindra Financial Services Ltd.

2. Unoragnized Banking.
The central bank has no control over the unorganized banking sector. Some of the most
important segments of unorganized banking include indigenous bankers, money lenders,
landlords, lending pawnbrokers, and traders. Moreover, this banking system in India is
characterized by a lack of uniformity in its business dealings.

What is Indigenous Banking?

You might be thinking, who are indigenous bankers! Indigenous bakers are the individuals or
private firms operating the same way as banks and are also known as financial intermediaries,
which means they receive deposits and offer credit to the customers. This banking is
functioning for hundreds of years and plays a vital role in the Indian economy.

Functions of Indigenous Bankers

• Advancing Loans
• Discounting Hundis
• Accepting deposits
• Financing Inland Trade
• Remittance facilities
• Commission Agents
• Speculative Activities

Page | 12
 • Subscribe to Shares and Debentures • Manage/Operate/Run firms

a) Time hundi, also known as Mudita; payable after the period mentioned on the face of
hundi
b) Sight hundi, also known as Darshni; payable on demand.

Significance of Indigenous Banking

They help expand financing international trade by providing seamless finance and remittance
facilities to traders and small industrialists. This banking offers various facilities, including
writing, buying, and selling hundis, writing finance bills, trade bills, and advancing loans.

Indigenous bankers provide robust support to the agriculture sector by facilitating the
transportation of agricultural products from rural areas to metropolitans and city markets.
Furthermore, they also help in the movement of industrial products to various parts of the
country.

Flaws of Indigenous Banking

1. These bankers are involved in undesirable practices such as deducting interests in
advance, manipulating accounts, or not providing proof or receipts of principal and
interest.
2. Providing loans for unproductive purposes.
3. Charge an unreasonably high rate of interest.
4. The accounts maintained are neither audited nor published just because they follow old
business practices based on the secrecy of all activities and accounts.
5. They do not prefer accepting deposits. Instead, they are more after offering loans. Due to
the lack of balance, they are unable to mobilize savings.
6. They operate with insufficient capital, due to which sometimes they run out of funds and
cannot meet the financial needs of borrowers.
7. They never collaborate or work in co-operation with cooperative or commercial banks
which has emerged a rigid dichotomy in the financial market of our country.
8. They are categorized under the unorganized money market in India, because of which
RBI has no control over them.

How to Remove These Flaws of Ingenuous Banking System

1. Listing minimum capital requirements should be made mandatory for every indigenous
banker.
2. They should be only involved in banking businesses, not other unauthentic or illegitimate
activities.
3. These bankers should be registered and work as per the guidelines of RBI. Moreover, a
license should be issued to them before operating as one of the indigenous bankers.
4. They should be allowed to collect drafts, cheques, etc. This will bring more transparency
to the entire system and reduce cash dealings.
5. These bankers should be linked with commercial banks. Plus, hundis should be
discounted by commercial banks.

Page | 13
6. The indigenous banking system should be entitled to benefit from the Bankers’ Book
Evidence Act.

Some important characteristics of the Indian Banking System Structure are listed below:

• Profit and service-oriented institution.

• Deals with money.
• It could be an Individual or firm or a company.
• Provides Credit/Loans to the customers.
• Acts as an intermediary between lenders and borrowers.
• Accepts public deposits and offers Fixed Deposit services.
• Provides Agency and Utility Services.
• Provides Payment and Withdrawal facilities.

J&K BANK Jammu & Kashmir Bank Limited

• (J&K Bank) is an Indian public sector bank headquartered in Srinagar, Jammu and
Kashmir. J&K Bank was incorporated on October 1, 1938, by then ruler of princely
state of Jammu and Kashmir Maharaja Hari Singh with initial paid up capital of ₹
5.00 Lakh. The bank registered a total business turnover of over Rs.1750 billion as on
March 31, 2021.

HISTORY OF J&K BANK

• J&K Bank was founded on October 1, 1938, under letters patent issued by then
Maharaja of Jammu & Kashmir, Maharaja Hari Singh. The Maharaja had invited
eminent investors to become the founding directors and shareholders of the bank.

• The bank commenced banking business on July 4, 1939, and was considered the first
of its nature and composition as a state-owned bank in the country. The bank was
established as a semi-state bank with participation in capital by state and the public
under the control of state government.

• Post-independence, the two branches of the Bank out of 10 branches viz.

Muzaffarabad Rawalkot and Mirpur (now PAK) fell to the other side of the Line of
Control along with cash and other assets.

• The Bank is defined as a government company as per provisions of Indian

Companies Act 2013. In 1971, the bank acquired the status of a Scheduled bank and
was declared an ‘A’ class bank by Reserve Bank of India in 1976.

• J&K Bank is the scheduled commercial and oldest private sector bank in India.

Page | 14
 MILESTONE OF J&K BANK
• The bank celebrated its platinum jubilee in 2013. In that year the bank achieved a
total business of ₹ 1000 billion and earned a net profit of ₹10 billion. On 1 April
2013 the bank surpassed the target of promised ₹1000 billion business and other
annual targets as well in its platinum jubilee year.

• The bank on October 1, 2018, completed its 80 years of existence and the day was
celebrated by the Bank under the theme “80 years of bonding – I pledge to strengthen
it”.

• On July 1, 2019, the bank surpassed deposit base of Rs.1000 billion with over 10
million customers.
• In July 2020, the bank figured among the top 4 banks in India in achieving targets in
digital payments, contributing towards ‘Digital India’ mission.

• In May 2023, the bank achieved the big milestone of net profit zooms 139%YoY to
historic-highest of Rs 1197.00 crore.

NETWORK OF J&K BANK

• The Bank has over 2400 touch points across the country including 964 branches and
1388 ATMs as on Aug 31, 2021 spread over 18 states and 4 UTs. Out of 964 BUs,
804 are operating in the Union Territory of Jammu & Kashmir, 36 in Union Territory
of Ladakh and 124 are operating outside the UTs of J&K and Ladakh. Bank has 75
Easy Banking Units (EBUs) in UT of J&K and Ladakh out of which 35 EBUs are
operating in UT of Ladakh.

SUBSIDIARY
• J&K Bank provides investment & stock broking through its wholly owned subsidiary
JKB Financial Services Limited (JKBFSL). It has 12 branches (5 Branches in
Kashmir, 6 Branches in Jammu and 1 Branch in Gurgaon) besides having sales desks
across 61 J & K Bank Branches across the Union Territory of J & K. JKBFSL
provides services in stock broking, depository, distribution of mutual funds, IPOs,
ETFs, Tax Planning etc.

ASSOCIATE
• J&K Bank is also sponsoring bank for J&K Grameen Bank with a shareholding of 35%
engaged in providing all kinds of financial services in UT of J&K and Ladakh. J&K
Grameen Bank was established on June 30, 2009, and is functioning in 11 districts in
the Union Territory of Jammu & Kashmir and 2 districts in UT of Ladakh.

Page | 15
 Tie-ups
• Bank has entered into tie-ups with various national as well as multinational
companies.
• Under Bancassurance, Bank is a partner to PNB MetLife for life insurance while as
for non-life, Bank has collaborated with Bajaj Allianz General Insurance Company
Limited (BAGICL) & IFFCO Tokyo General Insurance Limited.

• Besides, Bank has entered into business agreements with companies like TATA
motors, Mahindra & Mahindra for extending its financial services to its consumers.

Page | 16
 CHAPTER - 2
REVIEW OF LITERATURE

It is relevant to refer briefly to the previous students and research in the related areas of the
subject to find out and to fill up the research gaps. The following are some studies conducted
by the eminent authors and practitioners on the “Retail Banking in J&K Bank”.

LITERATURE REVIEW IN RETAIL BANKING IN J&K BANK

Daniel (1999), E-banking is Retail banking (or Retail banking) that allows customers to make
financial transactions, borrow money, or create a community through a secure website
through their store or a virtual bank. This means that e-banking is a service that allows
bankers to obtain financial information and manage certain banking transactions from a
personal computer through the financial institution's website.
Mishra (2005) in his paper stated the benefits and the security concerns of Retail banking.
According to him increased customer loyalty, improved customer access, attracting new
customers, offering of more services are the primary drivers of Retail banking. But in a
survey conducted by the Retail banking association, member of institutions rated security
Maya Basant Lohani and Dr. POOJA Bhatia (2011) studied the Assessment of Retail
banking in Public and Private Sector Banks of India. The study was conducted to ascertain
Retail banking variations across selected banks by demographic variations and to measure the
customer satisfaction in selected public and private sector banks by analysing the gap
between expectations and their perceptions of banking services.
Vibhor Jain, Dr. Sonia Gupta and Smrita Jain (2014) studied customer perception of
Retail banking in banking sector with special reference to India private banks. The study
examines to learn and understand the customer perception regarding Retail banking and
understand the different dimension of Retail banking in banks. The customers trust the public
sector banks. These banks have existed in the market for a longer period than the private
sector banks. There is an urgent need for the banking services to reaffirm themselves in view
of the cut-throat competition, which is close on the anvil.

Dr. Arunangshu Giri and Ipsita Paria (2018) the article entitled “A Literature Review on
Impact of Digitalization on Indian Rural Banking System and Rural Economy”. The present
paper focuses on the review and summarizes various studies which were made by different
researcher of different location across India on the impact of digitalization on rural banking
system of India. The study found that, digital banking is having enormous potential to change
the landscape of financial inclusion. The study also found that, with the features as low cost,
ease of use digital banking can accelerate the integration of unbanked economy to the
mainstream.

Page | 17
 K. Hema Divya and K. Suma Vally (2018) the article entitled “A Study on Digital
Payments in India with Perspective of Consumer’s Adoption”. The present paper focuses on
the analysis of the adoption level of the digital payment systems by customers. Primary data
was collected from 183 respondents in Hyderabad. The collected data through questionnaire
were analysed by using chi-square technique. The study found that, the deployment of
technology for digital payments have improved the performance of banking sector and able to
achieve the motive cash less country.

Anthony Rahul Golden S. (2017) the article entitled “An Overview of Digitalization in
Indian Banking Sector”. In this article an attempt has been made to study the overview of
digitalization in Indian Banking sector. Banks are not just a part of our lives but have a
significant role in our daily lives. Thus, banks always try to adopt latest technologies to
enhance customer experience. The study found that, due to the adoption of this digitalization,
the banking sectors in India face some remarkable changes as well as hurdles. The study also
found that, as we are in the digital era, it is not possible to avoid the growth and services or
digital banking.

Santiago Carbo - Valverde (2017) the article entitled “The Impact on Digitalization on
Banking and Financial Stability”. In this article an attempt has been made to discuss the
impact of digitalization on banking activities and challenges that imposes for financial
stability. The study found that, digitalization is an opportunity to reduce marginal costs and
increase productivity in financial services
Ansari, Sherish J. & Khan, Nisar A. (2017) have tried to analyse the progress and
challenges of banking in India from 2011 to 2016, also throwing some light on the status of
retail electronic payments in the post-demonetization period. Their study shows that the
number of internet users has increased from 2,231,957,359 to 3,424,971,237 in 2016, which
is around 53.45% increase during the period. Also, the penetration of internet as a ratio of
population has increased from 31.8 % in 2011 to 46.1% in 2016. There has been a continuous
increase in the number of debit card and credit card users. The number of transactions
through credit card increased at a CAGR of 22.25% whereas the number of transactions
through debit cards increased at a CAGR of 12.33% during the period of study. Post
demonetisation i.e., from November 2016 to May 2017, RTGS (real time gross settlement),
NEFT (national electronic fund transfer) and UPI (unified payments interface) increased at a
CAGR of 4.72%, 1.95% and 60.50% respectively. Mobile banking declined continuously.
Their study also mentions the challenge of increasing number of internet users and the
requirement of banks to be able to meet out the expectations of these tech savvy people.
Chauhan, V. & Chaudhary, V. (2015) focused on understanding the concept of internet
banking and its benefits from the perspective of consumers as well as banks and the current
scenario of internet banking. The growth percentage of mobile banking from 2010 to 2014
had been the highest that is 495.64% while credit cards had seen the least growth from the
same period at 11.07%. NEFT and RTGS transactions were at 602.69% and 89.29%
respectively. They concluded that most of the banks have implemented e-banking facilities
that are beneficial both for the consumers and the banks but then there are issues of safety,
security, and reliability which the banks must adhere to.
Manikyam, Ratna (2014) analysed the impact of liberalization, privatization, and
globalization on Indian banks and the resultant opportunities and challenges. The study
revealed that the biggest challenges for banking challenge for the mass and companies and

Page | 18
those Indian banks should come up with differentiated products to stand at par with foreign
banks. Further, the study also emphasized building knowledge-driven organizations for
surviving the competition from the banks globally. The above studies done on e-banking have
focused on its progress and its challenges it. The concern is more on the technological aspects
of banking. They have not focused on the digitalization of the banking sector and the various
components of e-banking and how the economy will move towards being a cashless
economy, given the present state of internet penetration and different schemes launched by
the Govt. of India and RBI.
Haq & Khan (2013) analysed the challenges and opportunities in the Indian Banking sector.
The study showed that only 28 percent of banking clients were using internet banking after
evaluating the population characteristics. It found that there was no significant relationship in
between age and the use of cyber banking. It also depicted that there is no relationship
between gender and the adoption of internet banking. It observed that qualifications in terms
of education and income of the respondents were playing the role in the acceptance of Retail
banking. The study suggested that it is the need of time that financial literacy of the users
should be increased through various programs which should be run by banks to increase the
awareness of internet banking.
Serenade, R (2012) Various e-Banking can be attractive to potential customers in terms of
improved accessibility, affordability, and ease of use. It also focuses on the functionality of
electronic credit cards, frequency of usage, mode of repayment, value addition facilities
offered along the credit cards for different client groups.
Dangwal, R.C. (2010) Technology is growing rapidly and undergoing many changes. It
indicates the unification of communication technology, information systems, and innovative
applications to product manufacturing, design, and control. With the advancement in
technology, the world has become a global village and ushered in a revolution in the banking
sector.
Servon, (2008) Internet banking is revolutionizing the financial industry and banking now is
no longer limited to branches, depositing, or withdraw cash. With the increase in technology
computer banking, direct deposits, stored value card is being used.
According to Saleh and Andrea (2002), electronic banking is procuring banking services via
e- delivery channels. Though, different scholars defined the term electronic banking in a
different ways all greed up on that E-banking is getting/accessing bank services through
ATM’s, PC’s, mobile devices etc. at anytime and anywhere which ensures throughout a day
including weekends, even on holidays. There is no necessity for customers to travel to banks
location for making transactions like deposits, withdrawal or for any applications
Jayawardhena (2004) changes the SERVQUAL scale to the context of internet and builds up
a battery of 21 items to evaluate service quality in e-banking. Exploratory (EFA) and
confirmatory factor analysis (CFA), 21 items are consolidated to five quality dimensions: web
site interface, Access, attention, trust, credibility and attention. Despite the fact that 59
percent of the variance in service quality can be clarified by the model, affective customer
responses to the service procedure are not considered. This must be seen basic as a few
authors underline the significance of hedonic parts of the electronic service consumption
represented by the degree of fun and satisfaction given by the portal.

Page | 19
 CHAPTER - 3
INDUSTRY AND COMPANY PROFILE
INDUSTRY PROFILE:
Indian banking sector is extremely critical for the economic development of the country. The
last decade witnessed unprevented growth and value creation in India’s banking sector with
little impact from the global financial crisis due to strong regulation and discipline. However,
the scenario is now changing due to various reasons. Tightening of increased monetary policy,
a burgeoning fiscal and current account deficit, the need for infrastructure lending,
deregulation of interest rate on saving accounts, etc. have diluted he robust performance of
banks in comparison to another sector. The RBI had increased the lending rates 13 times
between march 2010 and October 2011 in a bid to rein in inflation. A direct result of this has
been the impact on demand, lending to reduce revenue, lower margins and an increase in
Non-performing asset (NPA’s) of banks. Today, there are various concerns facing the Indian
banking industry. However, some of the issue that need immediate attention are as follows:
Financial inclusion---financial inclusion refers to delivery of banking services at an affordable
cost of the vast section of disadvantaged and low-income groups.

HISTORY OF INDIAN BANKING:

Phase I

The General Bank of India was set up in the yen 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called its Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of Indio was established
which started as private shareholders banks, mostly European's shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canna Bank, Indian Bank, and Bank
of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up with
The Banking Companies Act, 1949 which was later changed to Banking Regulation Act
1949as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested
with extensive powers for the supervision of banking in India as the Banking Authority.
During those days, public has lesser confidence in the banks. As an aftermath deposit

Page | 20
mobilization was slow, Abreast of it the savings bank facility provided by the Postal
Department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State Government all over
the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 194 July,
1969, major process of nationalization was carried out. It was the effort of the Prime Minister
of India, Mrs. Indira Gandhi, 14 major commercial banks in the country were nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 in
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries. 1961:
Insurance cover extended to deposits 1969:
Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11000%. Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms pasture. In 1991, under the chairmanship of M. Narasimha, a committee was set up
by his name which worked for tine liberalization of banking practices. The country is flooded
with foreign Banks and their ATM stations. Efforts are being put to entire system became
more convenient and swifter. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not got fully convertible, and banks and their customers have limited
foreign exchange exposure.

Page | 21
STRUCTURE OF INDIAN BANKING SYSTEM: -
All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934
are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled
Cooperative Banks. Scheduled Commercial Banks in India are categorized into five different
groups according to their ownership and/or nature of operation.

These bank groups are:

1. State Bank of India and its Associates

2. Nationalized Banks, Private Sector Banks, Foreign Banks.

3. Regional rural banks.

In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalized Banks.
Scheduled Cooperative Banks consist of Scheduled State Co-operative Banks and Scheduled
Urban Cooperative Banks

GROWTH OF BANKING IN INDIA:

By 2010, banking in India was generally fairly mature in terms of supply, product range and
reach-even through reach in rural India still remain a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered
to have clean, strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal
pressure from the Government.
With the growth in the Indian economy expected to be strong for quite some time
especially in its services sector-the demand for banking services, especially retail banking,
mortgages and investment services are expected to be strong. In March 2006, the Reserve
Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a
private sector bank) to 10%. This is the first time an investor has been allowed to hold more
than 5% in a private sector bank since the RBI announced norms in 2005 that any stake
exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle and personal
loans. There are press reports that bank's loan recovery efforts have driven defaulting
borrowers to suicide.

By 2013, the Indian Banking Industry employed 11,75,149 employees and had a total
of 1.09,811branches in India and 171 branches abroad and manages an aggregate deposit of
Rs. 67504.54 billion (USSI.I trillion or 840 billion) and bank credit of Rs. 52604.59 billion
(USS870billion or 650 billion). The net profit of the banks operating in India was 1027.51
billion (USS17 billion or 13 billion) against a turnover of Rs. 9148.59 billion (US$150billion
or 110 billion) for the financial year 2012-13.

Page | 22
BANKING SECTOR:

The three major change in the banking sector after liberalization are:
1. Steps to increase the cash outflow through reduction in the statutory liquidity and cash
reserve ratio.
2. Nationalized banks including SBI were allowed to sell stakes to private sector and
private investors were allowed to enter the banking domain. Foreign banks were given
greater access to the domestic market, both as subsidiaries and branches, provided the
foreign banks maintained a minimum assigned capital and would be governed by the
same rules and regulations governing domestic banks.
3. Banks were given greater freedom to leverage the capital markets and determine their
asset portfolios. The banks were allowed to provide advances against equity provided
as collateral and provided banks guarantees to the broking community.
India’s services sector has always served the Indian economy well, accounting for nearly 57%
of the gross domestic product (GDC). Here, the financial services segment has been a
significant contributor.

The financial services sector in India is dominated by commercial banks which have more
than 60% share of the total asset; other segments include mutual.

The Government of the India has introduced reforms to liberalize, regulate and enhance the
country’s financial services industry. Presently, the country can claim to be one of the world’s
most vibrant capital markets. In spite of the challenges that are still there, the sector’s future
looks good.

MARKET SIZE:

The Indian banking system consist of 26 public sector banks, 25private sector bank, 43
foreign banks, 56 regional banks,1589 urban cooperative banks and 93,550 rural cooperative
banks, in addition to cooperative credit institution public-sector banks control nearly 80% of
the market, thereby leaving comparatively much small share for its private peers. Banks are
also encouraging their customers to manage their finances using mobile phones.

INVESTMENT/DEVELOPMENT:

Key investment and development in India’s banking industry include:

RBL Bank Limited, an Indian private sector bank, has raised Rs.330 crore (US$49.6 million)
from a UK-based development finance institution CDC Group Plc, which help RBL to
strengthen the capital base to meet future requirements.
The State Bank of India (SBI) signed an agreement with the world Bank for a Rs.4,200
crore (US$ 625 million) credit facility, aimed at financing grid connected rooftop solar
photovoltaic
(GRPV) project in India. India’s largest public sector bank, State Bank of India (SBI), has
opened its first branch dedicated to serving start-up companies, in Bengaluru. Global rating

Page | 23
agency Moody’s has upgraded its outlook for the Indian Banking System to stable from
negative based on its assessment of five drivers including improvement in operating
environment and stable asset risk and capital scenario.

JP Morgan Chase, the largest bank in the United State by asset, plans to expand its
operations in India by opening three new branches in Delhi, Bangalore and Chennai in
addition to its existing branch in Mumbai.

Canada Pension Plan Investment Board (CPPIB), an investment management company,

has bought a large stake in Kotak Mahindra Bank Ltd from Japan-based Sumitomo Mitsui
Banking
Corporation. India’s first small financial bank called Capital Small Financial Bank has
started its operation by launching 10 branch office in Punjab, after that it aims to increase the
number of 29 in FY 2016-17 and now it has reached up to 149 in current FY 2023 -24.

Free charge, the wallet company owned by Retail retailer Snapdeal, has partnered with Yes
Bank and MasterCard to launch Free Charge Go, a virtual card that allow user to pay for
goods and services at Retail shops and offline retailers.
Exim Bank of India and the Government of Andhra Pradesh has signed a memorandum of
Understanding (MOU) to promote exports in the state.
Kotak Mahindra Bank Limited has brought 19.9% stake in Airtel M Commerce Services
Limited (AMSL) provide for Rs. 98.38 crore (US$14.43million) to set up a payments Bank.
AMSL provide semi- closed prepaid instrument and offers services under the Airtel Money
brand name.

COMPANY PROFILE

The origin of Jammu and Kashmir Bank Limited, more commonly referred to as J&K Bank,
can be traced back to the year 1938, when it was established as the first state-owned bank in India.

Page | 24
The bank was incorporated on 1st October 1938 and it was in the following year (more precisely on
4th July 1939) that it commenced its business, in Kashmir (India). It was initially set up as a semi-
State Bank, with its capital being contributed by State as well as the public under the control of State
Government

Jammu and Kashmir Bank had to face serious problems in 1947 i.e., at the time of
independence. With the partition of Pakistan, two out of the total ten branches of the bank,
namely the ones in Muzaffarabad and Mirpur, fell to the other side of the line of control (now
Pak Occupied
Kashmir), along with cash and other assets. At that point of time, in keeping with the
extended Central laws of the state, J&K Bank was categorized as a Government Company, as
per the provisions of Indian Companies Act 1956.

It was in the year 1971 that Jammu and Kashmir Bank was granted the status of a 'Scheduled
Bank'. Five years later, it was declared as "A" Class Bank, by the Reserve Bank of India
(RBI). As the years passed on, the bank started achieving more and more success. Today, it
boasts of more than 900 branches across the country. It was only recently that Jammu and
Kashmir Bank became a billion-dollar company. Governed by the Companies Act and
Banking Regulation Act of India, it is regulated by RBI and SEBI. It finds a listing on the
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as well.

PROFILE OF J&K BANK

Government of Jammu & Kashmir holds majority shareholding of 68.18% in the bank as on
March 31, 2022. Bank has a network of 964 business units and 1388 ATMs as on July 31,
2022 spread over 18 states and 4 UTs across the country. Out of 964 BUs, 804 are operating
in the UT of J&K, 36 in UT of Ladakh and 124 are operating outside the UTs of J&K and
Ladakh.

J&K Bank occupies a unique and dominant position within Jammu and Kashmir due to its
strong market presence and status as exclusive agent designated by the Reserve Bank of India
for carrying out banking business for the Government of Jammu and Kashmir and its
government owned institutions and departments. The bank collects tax revenues within the
UTs of J&K and Ladakh for the central Government on behalf of the Central Board of Direct
Taxes and Central Board of Excise and Customs, and works with the UT Government of J&K

Page | 25
& Ladakh in the implementation of a number of flagship initiatives involving employment of
youth, women empowerment etc.

The bank being the major financial player in the UT of Jammu and Kashmir holds a leading
market share of advances (64.84%), deposits (63.92%) and branches (39.3%) of all the
scheduled commercial banks operating in the J&K UT as of March 31, 2022.

J&K Bank caters to banking requirements of various customer segments which includes
employees of government, semi-government and autonomous bodies, farmers, artisans,
public sector organizations and corporate clients. The bank also offers a wide range of retail
credit products, including home, personal, educational and automobile loans, agriculture loan,
trade credit including a number of unique financial products tailored to the needs of the
people of Jammu and Kashmir.

SUBSIDIARIES, ASSOCIATES & PARTNERSHIPS

➢ JKB Financial Services Limited (Fully owned by J & K Bank)

• Providing Depository Services

• Offering Stock Broking Services
• Mutual fund and other financial services.

➢ Sponsor of J&K Grameen Bank (Regional Rural Bank) ➢

Life Insurance & Non-life Insurance Partners:

• PNB MetLife (Life Insurance)

• Bajaj Allianz (Non-life Insurance)
• IFFCO Tokyo (Non-life Insurance)

MAJOR DISTINCTIONS

Holding a major Market share of 64% of banking business in UT of J&K and 60% in the UT
of Ladakh as on March 31, 2021.

Page | 26
 • Designated as RBI’s agent for carrying out banking business for the Government of UTs
of J&K and Ladakh.
•Authroiled to collect central taxes for CBDT.
•Governor of Union Territory Level Banker’s Committee (UTLBC) in UT of J&K.
•Acting as lead bank in 12 districts of J&K.
• Unique and competitive position within UT’s of J&K and Ladakh due to its strong
market presence.
• Huge account base of 1.83 Crore (Deposits & Advance on Pan India basis, with 1.75
crore accounts (Deposit & Advances) in UTs of J&K and Ladakh, thus reflecting
dominance & vast coverage in the region with a total population of 1.25 Crore

AWARDS AND RECOGNIZITION

• IBA’s Best Technology Bank of the Year Award for FY 2019-20 (under small banks
category-Asset Size <150, 000 Crore).
• BFSI Leadership Award in FY 2018-19.
• Amongst the Top 5 Performing Banks in PFMS for FY 2019-20.
• Top Banker Award for PMEGP for FY 2019-20.
• HUDCO Award for outstanding contribution in the Housing Sector for FY 2018-19.
• CSO100 Award for FY 2018-19.

MISSION

• To acquire an enhanced business footprint across geographies and emerge as a

prominent national brand in the financial sector.
• To position the Bank as the “Most Preferred Bank” for Customer focus, Operational
Excellence and High Integrity towards one and all stakeholders.
• To be the best-in-class financial intermediary, leveraging our digital and physical
banking channels;
• To observe customer centricity through service excellence, integrity and transparency,
and a comprehensive range of innovative products and services responsive to
customer needs.

Page | 27
 • To be a lean, learning and efficient banking organization focusing on prudent,
sustainable, profitable growth and value creation.
• To adopt the best standards for corporate governance, business ethics and risk
management.
• To vigorously promote financial inclusion as a business proposition to harness the
potential at the bottom of the pyramid.

VISION

“Pioneering the economic and social transformation”

To become a committed partner in fostering economic and social transformation across the
country through a deep commitment to value creation for all our stakeholders, while
continuing to build on our historic business relationship with Jammu & Kashmir and Ladakh.

SWOT ANALYSIS

Strengths of J & K Bank:

• Financial strength, powerful set of brands, that people trust, proven product
• Monopoly Bank with 70 % plus market share & functions as a universal Bank in J &
K state.
and services.
• Effective and integrated distribution network.
• Fastest growing old generation private sector bank.
• Bank with a regional focus, a national reach and international standards of operations.
• Rated “P1+” by Standard and Poor Crisil connoting highest degree of safety.
• Only private sector Bank with majority of ownership vested with the Government of
Jammu & Kashmir.
• 53.17 shares are held by Govt. and is sole banker to the State Government.

Weaknesses of J & K Bank:

• Technological advancements.

Page | 28
 • Biased selection of employees.
• Due to lack of competition, interest rates are high.
• Supervision is weak, which causes delay in work.
• Inadequate professional staff/ Shortage of skilful labour/ manpower that will lead the
Bank from success to failure.
Opportunities of J & K Bank:
• Technological advances.
• Tremendous growth opportunities in all its business.
• New distribution channels.
• Retaining market leadership.
• Recruit professional guided students.
• Expand the research and development department, because the focus of these
departments is to introduce and innovate new products, etc. and this will lead to
growth of the Bank.
• In the age of globalization for achieving growth, the competent/ skilful / English
speaking employees are one of the requirements of the Bank.

Threats to the J & K Bank:

• Strong and stiff competition in near future.
• Entry of nationalized Banks in Jammu and Kashmir State.
• Technological advances.
• Illegal activities in internal and external environment, i.e., bribe, or any other benefit
from people

MAJOR PRODUCTS AND SERVICES:

JKBANK offers various financial services. The major products offered by the company
include the following Products:

LOANS:

1. Home Finance
A home loan is a secured loan that is obtained to purchase a property by offering it as
collateral. Home loans offer high-value funding at economical interest rates and for long

Page | 29
tenors. They are repaid through EMIs. After repayment, the property's title is transferred back
to the borrower.

2. Educational Finance
An education loan is a sum of money borrowed to finance post-secondary education or higher
education-related expenses. Education loans are intended to cover the cost of tuition, books
and supplies, and living expenses while the borrower is in the process of pursuing a degree.
Payments are often deferred while students are in college and, depending on the lender,
sometimes they are deferred for an additional six-month period after earning a degree. This
period is sometimes referred to as a "grace period."

3. Automobile Finance
Scotty Finance for Girls/ Ladies

PURPOSE

For purchase of new Scotties, etc. (Any make or model). The product shall be primarily
targeted at girl students and working ladies.

4. Other Finance

• Laptop/ PC Finance

PURPOSE

• To provide finance for purchase of Laptop/ PCs / Netbooks / Tablets.

INSURANCE:

1. Life Insurance

Life Insurance can be defined as a contract between an insurance policy holder and an
insurance company, where the insurer promises to pay a sum of money in exchange for a
premium, upon the death of an insured person or after a set period.

Page | 30
J&K PROVIDES:

PNB METLIFE INDIA INSURANCE

PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life
insurance companies in India. PNB MetLife has as its shareholders MetLife International
Holdings LLC (MIHL), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank
Limited (JKB), M. Pallonji and Company Private Limited and other private investors, MIHL
and PNB being the majority shareholders. PNB MetLife has been present in India since 2001.

PNB MetLife brings together the financial strength of a leading global life insurance provider,
MetLife, Inc., and the credibility and reliability of PNB, one of India's oldest and leading
nationalised banks. The vast distribution reach of PNB together with the global insurance
expertise and product range of MetLife makes PNB MetLife a strong and trusted insurance
provider.

PNB MetLife is present in 107 locations across the country with access to over 100 million
customers in more than 10,000 locations through its strong bank partnerships with PNB, JKB,
KBL and RRB.

PNB MetLife provides a wide range of protection and retirement products through its Agency
sales of over 10,000 financial advisors and multiple bank partners, and provides access to
Employee Benefit plans for over 800+ corporate clients in India. The company continues to
be consistently profitable and has declared profits for last five Financial Years.

Life Insurance products offered by PNB MetLife Insurance:-

• PNB MetLife Mera Jeevan Suraksha Plan

PNB MetLife Mera Jeevan Suraksha Plan is a solution that offers you the choice – to
provide for regular income or a lump sum pay out – to secure your family’s dreams in
case you are not around. You can opt to cover your spouse in the same plan and also
have the option to choose return of premiums on survival^ till the end of the policy
term, making this a truly flexible offering.

Page | 31
 • PNB MetLife Aajeevan Suraksha Plan
PNB MetLife Aajeevan Suraksha is a comprehensive protection plan that gives you
the convenience to pay premiums for a shorter period while keeping you protected for
life (up to age 99), or till the term of your choice. You can also choose to cover your
spouse in the same plan and choose return of premiums on survival till the end of the
policy term which makes it a truly flexible offering. So, opt for PNB MetLife
Aajeevan Suraksha and say goodbye to all your worries for life!

• PNB MetLife Family Income Protector Plus Plan

PNB MetLife Family Income Protector Plus is a term plan that gives you the
flexibility to choose your premium and monthly income. These protection plans
provide cover against death during the policy term. This income protection insurance
plan gives you the option to get your premiums back at the end of the policy term.

• PNB MetLife Guaranteed Savings Plan

PNB MetLife Guaranteed Savings Plan is a guaranteed savings insurance plan that
helps you fulfil your dreams by offering lump sum benefit on maturity along with
guaranteed additions on cumulative premiums. PNB MetLife Guaranteed Savings
Plan helps you to create a corpus to achieve your short to long-term goals as per your
choice along with securing your family’s future.

• PNB MetLife Super Saver Plan

PNB MetLife Super Saver Plan is a non-linked, participating life insurance plan that
helps you accumulate your savings and provides a long-term financial protection for
you and your family. Additionally, it also provides a waiver of premiums to ensure
that your goals are not compromised in case of critical illness.

2. Non-Life Insurance

Non-life insurance is, the losses that are incurred from a specific financial event are
compensated to the insured this is called non-life insurance.

BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD.

Page | 32
 • The Bank has entered into an alliance with Bajaj Allianz to distribute their non-life
products.
• These products are available at all branches of the bank across India.

SAVINGS and DEPOSITS: -

[Link] Bank Deposits

a. Basic Saving Bank Deposit Account-

Basic Savings Bank Deposit Account is to make basic banking facilities available to
weaker sections and low-income groups at affordable cost.
b. Deluxe Savings Account

ELIGIBILITY

• Resident Individuals (sole or joint account)

• Hindu Undivided Families.
• Minors above the age of 10 years are eligible to open self-operated minor account and
an ATM/Debit card can be issued to the Minor.

FEATURES & BENEFITS

• Free cash withdrawals over the counter: 30 withdrawals per half year.
• International Debit Card issued with ATM withdrawal limit of Rs 1.00 lac /day & PoS
transaction limit of Rs 1.50 lacs/day.
• Free e-banking / m-banking facility.
• Minimum AMB of Rs. 5000/=
• Charges for non-maintenance of the minimum Average Monthly Balance

Rs 25 plus GST per Rs 100 of the shortfall or part thereof from Average Monthly Balance
Requirement OR ₹ 1250/- per month + GST, whichever is lower.
• Interest is calculated on the daily product basis and compounded quarterly. 20 Cheque
leaves free per year. (25 Cheque leaves for Senior Citizens).
• Nomination facility available.

Page | 33
c. General Savings account

ELIGIBILITY

• Resident Individuals (sole or joint account)

• Hindu Undivided Families.
• Minors above the age of 10 years are eligible to open self-operated minor account and
an ATM/Debit card can be issued to the Minor.

FEATURES & BENEFITS

• Free cash withdrawals over the counter: 30 withdrawals per half year.
• International Debit Card issued with ATM withdrawal limit of Rs 0.40 lac /day &
PoS transaction limit of Rs 1.00 lacs/day.
• Free e-banking / m-banking facility.
• Interest is calculated on the daily product basis and compounded quarterly.
• 20 Cheque leaves free per year. (25 Cheque leaves for Senior Citizens).
• Nomination facility available.
• Minimum AMB of Rs. 1000/- for General SB A/C without Cheque Book facility.
• Minimum AMB of Rs. 2000/- for General SB A/C with Cheque Book facility.

d. General Small Account

ELIGIBILITY

• Individuals including pensioners.

• More than one person in their joint names.
• Literate minors above 10 yrs of age.

FEATURES & BENEFITS

• A variant of Saving Bank account to ensure financial inclusion and to strive for
making banking services easily accessible to all segments of society.
• Minimum initial deposit of Rs 50/-. However, you can also open the account with
banking instruments like Banker's cheque, etc.
• Minimum balance of Rs 50/- only.
• Maximum balance shall be Rs 50,000/-.

Page | 34
 • Maximum credits of Rs1,00,000/- in a year.
• The aggregate of all withdrawals and transfers in a month shall not exceed Rs
10,000/-
.
• 4 withdrawals permissible per month.
• Cheque book facility available if you maintain average quarterly balance of Rs1000/-
and above for past 6 months
• Nomination facility available.

2. Current Accounts

A. Gold Current Account

FEATURES & BENEFITS

• Minimum AMB of Rs 2, 50,000.

• Free issuance of Demand Drafts up to Rs. 50 Lakhs per month
• Free Collection of Bills up to Rs.5 lacs /month.
• Free 30 Payment Orders per month
• Free collection of local/ outstation cheques (own bank)
• Free cheque book facility (300 Leaves per year).
• Daily Debit card limits (ATM/POS) Rs. 1.00 lac / Rs.1.50 lacs.

B. Basic Current Account

FEATURES & BENEFITS

• Minimum AMB of Rs 4000/=

• Daily Debit Card Limits (ATM/POS) Rs. 40000 / Rs. 100000
• Multiple services available at very low charges.
• Free e-banking/ m-banking facility.

ELIGIBILITY
• Individuals-Single Accounts.
• Joint Accounts.
• Sole Proprietorships, Partnerships, HUFs.
• Limited Companies

Page | 35
 • Associations, Clubs, Societies, Trusts etc.

C. Platinum Current Account

FEATURES & BENEFITS

• Minimum AMB of Rs 5, 00,000.

• Free Cheque Book facility (Unlimited).
• Free issuance of Demand Drafts/Duplicate DDs • Free Collection of Bills up to Rs 10
lacs /month.
• Free 50 Pay Orders per month.
• Free collection of local/ outstation cheques (own bank)
• Free International Debit Card issued with an ATM withdrawal limit of Rs 1 lac/day &
PoS transaction limit of Rs 1.50 lacs /day.
• Nomination facility available.
• Free RTGS/ NEFT Facility.
• Free E-banking/m-banking facility.

ELIGIBILITY

• Individuals-Single Accounts.
• Joint Accounts.
• Sole Proprietorships, Partnerships, HUFs.
• Limited Companies
• Associations, Clubs, Societies, Trusts etc.

D. Premium Current Account

FEATURES & BENEFITS

• Minimum AMB of Rs 50000/=

• Free issuance of Demand Drafts up to Rs.15 Lakhs per month.
• Free 15 Payment Orders per month.
• Free collection of local cheques.

Page | 36
 • Daily Debit card limits (ATM/POS) Rs. 40000/ Rs.100000/=
• Free e-banking/m-banking facility.

ELIGIBILITY

• Individuals-Single Accounts.
• Joint Accounts.
• Sole Proprietorships, Partnerships, HUFs.
• Limited Companies
• Associations, Clubs, Societies, Trusts etc.

3. Term Bank Deposits

In Term Deposits, the sum of money is kept for a fixed maturity and the depositor is not
allowed to withdraw this sum till the end of the maturity period. That is why they are called
as Term Deposits because they are kept up to a particular term.

4. Gift Cheque Schemes

The gift cheque is another banking instrument presented for gifting money to the loved ones
alternatively of hard cash.
People are used various types of cheques not only for making business or financial
transactions easy and safe but in this global world, people may like the use of cheques many
other categorial purposes or special occasions like the cheque is giving as a gift to the other
one to fulfill the same purpose.
For example, the cheque is given to whish a Birthday, wedding, anniversary, gift for the
motivational purpose like social, sports, educational, scholarship, etc.

CARDS:
1. Global Access Card
2. Empowerment Credit Card
3. Merchant Acquiring
4. Mutual Funds
Tax Saver Term Deposit Scheme

Page | 37
SERVICES OFFERRED BY THE BANK

1. Support Services

Technology application has remained the thrust area of the Bank for last many years with an
objective to offer state of the art world class Banking facilities to its customers. The Bank has
continued to leverage information technology as a strategic tool for its business operations, to
gain competitive edge in customer service as well as improving productivity and efficiency.
The Bank’s IT strategy emphasizes enhanced level of customer services through 24x7
availability, multi-channel Banking and cost efficiency through optimal use of electronic
channels, wider market reach and opportunities for cross-selling. The Bank’s focus is on
harnessing technology for integrating diverse products and services. Keeping this in view, the
Bank continued to widen the scope of multiple delivery channels such as ATM installations,
Core Banking, Internet Banking and SMS Banking at more & more centres.

a. Anywhere Banking

Anywhere Banking is a convenient banking system which allows you to access customer
facilities of your bank from anywhere across the nation. It is a secure and speedy way of
making transfers away from home. This makes the feature especially important for users who
move frequently. Bank also provide anywhere banking facilities to customers.

b. Internet Banking

Internet Banking is a convenient way to do banking for both corporate and retail clients as
they can access their accounts anytime and from any location via the World Wide Web. Avoid
the queue or delays and try our new simple and secure Internet Banking facility. J&K also
provide this facility to their customers.

c. SMS Banking

Over the years, our bank has been on the forefront of adopting state of the art technology
solutions to achieve maximum customer centricity. As a quantum leap forward on the path of
greater customer convenience and expediency coupled with risk mitigation and value addition

Page | 38
to its existing "tech- savvy" services, the bank has decided to launch technology- enabled
"SMS Alert Services". The said service, while aptly complementing today's busy life style,
shall offer a new dimension to the customers of the Bank by regularly updating them about
their account activities. This SMS Alert service, as a value addition, shall deliver regular
updates about account details, directly to customer mobile phone, with important information
like

d. ATM Banking

An automated teller machine (ATM) is an electronic banking outlet that allows customers to
complete basic transactions without the aid of a branch representative or teller. Anyone with a
credit card or debit card can access cash at most ATMs. ATMs are convenient, allowing
consumers to perform quick self-service transactions such as deposits, cash withdrawals, bill
payments, and transfers between accounts.

e. Debit & Credit Cards

DEBIT CARD

FEATURES: -

• Chip and Pin Based - Mastercard Debit Card

• Provides Retail access to savings or current account.
• Accepted at all Domestic as Well as International MasterCard™, Enabled ATM's and
Point of Sale locations & Ecommerce Websites.
• Green PIN.

CREDIT CARD

FEATURES:-

• 20–50-day Credit Free Period

• Revolving Credit Facility on paying of minimum payment due in the same billing
period
• Hassle free credit facility at competitive rate of interest
• Cash Withdrawal Facility up to 20% of total credit limit

Page | 39
 • Loyalty programme
• MasterCard® Secure Code™ enabled Credit Cards. J&K Bank lets you shop securely
Retail with your J&K Bank MasterCard Credit Card. This service through a simple
checkout process, confirms your identity when you make purchases on the Internet
• 24 Hour Customer Assistance at JK Bank Helpdesk
• EMI Scheme on Credit card Purchases

2. Depository Services
· Dematerialization
· Stock Broking through INVESTMART an initiative of ILFS
· Depository Participant of NSDL and CDSL
· Market transaction
· Off- market transactions
· Rematerialisation (REMAT)

3. Third Party Services Mutual

Funds
• J&K Bank has entered into tie-ups with reputed Asset Management Companies for
distribution of Mutual Fund products.

• Mutual Fund industry is one of the fastest growing segments in financial services in
India. Over the years, banks in India have emerged as the biggest distributors of
financial products. This has helped the banks to capture and retain their huge client
base and simultaneously adding a steady stream of fee-based income.
• Mutual Funds have become an attractive proposition for investors in the current
context and for J&K Bank it will be a good investment option to have in our product
portfolio. This shall be an important step towards converting the bank branch into a
financial supermarket addressing all the financial needs of the customers thus helping
the bank retain the customers within its fold.

• Moreover, the branch can augment its fee-based income the Bank aims to match to
industry standards.

Page | 40
 • The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and
Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes
as well as NFO (New Fund Offer) as and when the AMC comes up with the same.

· Insurance Services
Life & Non-life Insurance

· Remittance Services

Remittance is derived from the word 'remit' which means 'to send back'. Remittance refers to
money that is sent or transferred to another party, usually overseas. Remittances can be sent
via a wire transfer, electronic payment system, mail, draft, or cheque.

Remittances can be used for any type of payment including invoices for business purposes or
other obligations like personal transfers made to family and friends.
• The bank has a tie-up with Western Union Financial Services Inc., an international
leader in money transfer services through its primary agent SITA, a division of Kuoni
Travels India Pvt. ('Kuoni') to provide inbound money transfer services to customers
across the country. As a result of this association, people in general and J&K Bank
customers in particular are availing the facility of receiving money from their relatives
and friends abroad using the Western Union Money Transfer service.
• Our bank has also had an arrangement with Reliance Capital-Travel mate to provide
inbound money transfer services to customers across the country. A number of
branches
in J & K and all the branches outside J&K have been added to the existing list to bring
more customers to the bank’s fold for availing this facility.

4. Cash Management Service

A. Real Time Gross Settlement (RTGS)

The acronym 'RTGS' stands for Real-Time Gross Settlement. RTGS is a funds
transfer system based on a gross settlement concept where money is moved from one

Page | 41
 bank to another in real-time. RTGS is primarily designed for high transaction
amounts. As such, while there is no maximum limit on the transfer amount, you need
to transfer a minimum of INR 2 lakhs at a time. RTGS is especially useful when the
transaction amount is high, and payment needs to be processed immediately. Like
with NEFT, the details required for a typical RTGS transfer are the name of the
beneficiary, account number and account type, name of the bank, and Indian Financial
System Code (IFSC) of the bank.

B. National Electronic Fund Transfer (NEFT)

The acronym 'NEFT' stands for National Electronic Funds Transfer. It is a 24*7
available service of funds transfer wherein the transaction gets processed in batches of
half an hour. The RBI has not specified any minimum or maximum limit on the
transfer amount. All you need to provide is a few details of the beneficiary to initiate
an NEFT transfer. The details required for a typical NEFT transfer are the name of the
beneficiary, account number and account type, name of the bank, and the Indian
Financial System Code (IFSC) of the bank.

BUSINESS STRATEGY

• Increasing market share in India’s expanding banking.

• Delivering high quality customer service.

• Maintaining current high standards for asset quality through disciplined credit risk
management.

• Develop innovative products and services that attract targeted customers and address
inefficiencies in the India financial sector.

DISTRIBUTION NETWORK

The Bank has over 2400 touch points across the country including 964 branches and 1388
ATMs as on Aug 31, 2022 spread over 18 states and 4 UTs. Out of 964 BUs, 804 are

Page | 42
operating in the Union Territory of Jammu & Kashmir, 36 in Union Territory of Ladakh and
124 are operating outside the UTs of J&K and Ladakh.

CHAPTER - 4
RESEARCH METHODOLOGY
The research methodology section deals with the objective of the study, the
hypothesis which have been designed keeping in mind the objective,
sources of data, nature of research design, tool for data collection. Research
refers to search knowledge. One can also define research as a scientific and
Systematic search for pertinent information on a specific topic. It is an art of
scientific investigation.

4.1 Objectives of The Study:

1. To examine the essential dimensions of Retail banking i.e., RATER- Reliability,

assurance, tangibles, empathy and responsiveness of J&K bank and its effect on
customers satisfaction.

2. To find out the level of perception of the customers towards s the Retail banking
offered by the banks.

3. To know which Retail banking services dimension of the bank is performing well.

4. To identify which dimension of Retail banking needs improvement so that the quality
of service of J&K banks is enhanced.

4.2 Sources of Data Collection:

• Primary data collection.

• Secondary data collection.

Primary Data Collection:

Page | 43
The primary data are collected through survey method. A survey was conducted among the
people by the aid of well-structured questionnaire.

Secondary Data Collection:

In this study the secondary data is collected from the following.

Sources:
• Company’s website
• Reports of company
• Discussion with public and official person.
• Books on marketing
• Pamphlets

4.3 Research Design:

The research design is exploratory till identification of service quality parameters. Later it
becomes descriptive when it comes to evaluating customer perception of service quality of
the banks.

Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal
relationship, where one variable affects another. In other words, descriptive research can be
said to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often the
best approach, prior to writing descriptive research, is to conduct a survey investigation.
Qualitative research often has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications of the findings are

4.4 Sampling:

This is one of the most important steps of research design procedure. Generally, in most of the
marketing studies on sample or most of the sub group of the total Population pertaining to the

Page | 44
subject is included on the place of universe. The following things are primarily considered in
the sample: -

Population:
The populations interviewed in the research are customers of bank (main branch), in Kathua
city
❖ Sample size
The sampling size includes male and female users from different occupation, Age.
The size was restricted to 50 because of the time constraints.
❖ Sample Element
The sample element of the research is customers of bank
❖ Sample Unit
Jammu and Kashmir Bank Ltd.
❖ Sample Duration:
The sample duration was between 4 th June, 2025 to 19st July,2025 ❖
Sampling Technique:
The sampling technique was simple random sampling.

Simple random sampling

In general sampling represents a group of population. Sampling is a cross section of unit,
which represents the whole universe. In simple random sampling every member of the
population has an equal chance of selection. For this project simple random sampling
technique has been followed.

4.5 Tools of Data Collection:

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

Page | 45
5. Strongly agree

Likert scaling is a bipolar scaling method, measuring either positive or negative response to a
statement. The questionnaire consists of two parts. The first part consists of three questions
concerning the demographic information of the respondent such as the name, age, educational
qualifications and income. The second part consisting of questions exploring the respondent’s
perception about the Retail banking of J&K bank. For evaluation of Retail banking of J&K
bank service dimension of reliability, assurance, tangibility, empathy and responsiveness is
used in order to evaluate the actual service quality of Retail banking of J&K bank.

4.6 Data Analysis Procedure:

Data interpretation and is that in which we analysis the whole collected data and tries to

give it in sample words to be understandable.

CHAPTER - 5
DATA ANALYSIS AND INTERPERTATION
5.1 Demographic Profile
5.1.1. Respondents of Different Age Groups.
RESPONDENTS NO. OF RESPONDENTS

21-30 16

31-40 9

41-50 15

51-above 10

Page | 46
 Figure No.5.1.1: Respondents of different age groups

51-60
20%
21-30
32%
21-30
31-40
41-50
51-60

41-50
30%
31-40
18%

Above table show that in the study out of 50 respondent 32% are between 21-30,18% are
between 31-40,30% are between 41-50,20% are between 51-60.

5.1.2. Respondents of different gender.

RESPONDENTS NO. OF RESPONDENTS

MALE 29

FEMALE 21

Total 50

Page | 47
 figure no 5.1.2: Respondents of different gender

FEMALE
42%
MALE MALE
58%
FEMALE

Figure 5.1.2 show that in the study out of 50 respondent 42% are female and 58% are male

5.2 Questionnaire Analysis

Ques.1 Does J&K bank have modern looking equipment?

FREQUENCY PERCENTAGE CUMULATIVE

SCALE PERCENTAGE

STRONGLY 5 10 10
DISAGREE

DISAGREE 25 50 60

UNCERTAIN 16 32 92

AGREE 4 8 100

Page | 48
TOTAL 50 100

Does J&K Bank Have Modern Looking Equipment ?

8 % 10% STRONGLY DISAGREE

32 % DISAGREE
50 % UNCERTAIN
AGREE

INTERPRETATION

Here analysis show that most of the respondents disagreed with this statement. Among the
total respondents 50% disagreed, 32% were neutral and 8% agreed, 10% strongly disagreed.
After analysis I found that majority of the respondents think that J&K bank do not have
modern looking equipment or no hi-tech equipment.
Ques.2 Does the materials associated with the Retail banking (such as
instruction to use the Retail banking or their bank app) are visually
appealing at the bank?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 7 14 14

UNCERTAIN 22 44 58

AGREE 18 36 94

STRONGLY 3 6 100
AGREE

Page | 49
 TOTAL 50 100

Does the Materials Associated With The Service

Such
( as instruction to use
the retail Banking or their Bank App
) Are Visually Appealing At The Bank?

6 % 14 % DISAGREE
UNCERTAIN

36 % 44 % AGREE
STRONGLY AGREE

INTERPRETATION

Materials associated with the retail banking are visually appealing at J&K bank. Here 36%
respondents agreed with this statement and 6% strongly agreed with this statement. 44% were
neutral that is most and 14% disagreed. There was no respondent who strongly disagreed.
Hence, in general it can be concluded that materials associated with the services Such as
instruction to use the Retail Banking or their Bank App are visually appealing.

Ques.3 When the bank promises to do something Retail to help by a certain

time, does it do so?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE

DISAGREE 26 52 56

UNCERTAIN 5 10 66

AGREE 14 28 94

STRONGLY 3 6 100

Page | 50
AGREE

TOTAL 50 100

Bank Promises To Do Something retail To Help

By A Certain Time, Does It Do So ?
6% 4%
STRONGLY DISAGREE

28% DISAGREE
UNCERTAIN
52%
AGREE
STRONGLY AGREE
10%

INTERPRETATION

My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also, I found that 5 people were
neutral and 2 people strongly disagreed. Hence, I concluded that majority of them disagreed
that the bank when promises to do something by certain time, it does so.

Ques. 4 When you have a problem using retail banking, does the bank
shows a sincere interest in solving it?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 3 6 6

UNCERTAIN 14 28 34

AGREE 26 52 86

STRONGLY 7 14 100
AGREE

Total 50 100

Page | 51
 When You Have A Problem using Retail banking, Does The
Bank Shows A Sincere Interest In Solving It ?

14 % 6 %
28 % DISAGREE
UNCERTAIN
52 % AGREE
STRONGLY AGREE

INTERPRETATION

When you have a problem using retail banking, J&K bank shows sincere interest in solving it.
After analysing this statement, I found that most of the respondents agreed i.e., 52%
respondents agreed. Also, I found that 28% were neutral with this statement and 6% were
committed with disagree. There was no one who strongly disagreed. Hence J&K bank can be
said to be reliable.
Ques.5 Does the bank insists on error free records?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY DISA- 2 4 4
GREE

DISAGREE 8 16 20

UNCERTAIN 17 34 54

AGREE 17 34 88

STRONGLY 6 12 100
AGREE

TOTAL 50 100

Page | 52
 Does the Bank Performs The Retail Service Right The
First Time ?
4%
16%
34% STRONGLY DISAGREE
DISAGREE

34% AGREE

12% STRONGLY AGREE

UNCERTAIN

INTERPRETATION

Total sample size was 50. Here analysis shows that among the total respondents 17 people
agreed with this statement. They think that J&K bank performs the services right the first
time. 6 people strongly agreed with this statement. Also 17 people were neutral and the rest of
the respondents disagreed and strongly disagree.

Page | 53
 Ques.6 Does the bank insists on error free records?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PER-
CENTAGE

DISAGREE 5 10 10

UNCERTAIN 10 20 30

AGREE 23 46 76

STRONGLY 12 24 100
AGREE

50 100
TOTAL

Does the Bank Insists On Error Free Records?

24 %
10%
20% DISAGREE
UNCERTAIN

46% AGREE
STRONGLY AGREE

INTERPRETATION

Bank insists on error free records. J&K bank has proved from my analysis that it surely insist
on error free records as 46% respondents agreed with this statement and 24% strongly
agreed.
Only 10% respondents disagreed and no one strongly disagreed.

Page | 54
 Ques.7 Does the bank tells the customer about the Retail banking frauds?

SCALE FREQUENCY PERCENTAGE CUMULATIVE PER-

CENTAGE

DISAGREE 3 6 6

UNCERTAIN 8 16 22

AGREE 20 40 62

STRONGLY 19 38 100
AGREE

50 100
TOTAL

DoesThe Bank Tells The Customer About The Retail

Banking Frauds?

6%
16%
38% Disagree
Uncertian
Agree
40%
Strongly Agree

INTERPRETATION

Total sample size was 50. Here analysis shows that among the total respondents 20 people
agreed with this statement. They think that J&K bank tell all the customer about the Retail

Page | 55
banking frauds. 19 people strongly agreed with this statement. Also 8 people were neutral and
the rest of the respondents disagreed and strongly disagree.
Ques.8 Does the Retail Banking fulfill your specific needs?

CUMULATIVE PER-
SCALE FREQUENCY PERCENTAGE
CENTAGE

DISAGREE
5 10 10

UNCERTAIN
21 42 52
AGREE
20 40 92

STRONGLY
AGREE 4 8 100

TOTAL
50 100

Does The Retail Banking full fill your specific needs?

8% 10%
DISAGREE
40% 42% UNCERTAIN
AGREE
STRONGLY AGREE

INTERPREATION

Retail banking of J&K bank understands specific needs. With this statement most of the
respondents were neutral. Among the total respondents 20 respondents agreed and 4
respondents strongly agreed. 5 respondents disagreed with this statement.

Page | 56
Ques.9 Does the retail banking server have the knowledge to answer your
questions?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 2 4 4

UNCERTAIN 9 18 22

AGREE 26 52 74

STRONGLY 13 26 100
AGREE

TOTAL 50 100

Does the retail banking server have the knowledge to

answer your questions?

4% DISAGREE
26% 18%
UNCERTAIN
AGREE
52% STRONGLY AGREE

INTERPRETATION

From my analysis I found that 52% respondents agreed that Retail banking server of J&K
bank have complete knowledge to answer their questions. 26% respondents strongly agreed
to this statement and only 4% disagreed. 18% neither agreed nor disagree.
Ques.10 Do you feel safe in your transactions with the Retail Banking?

Page | 57
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE 5 10 10

UNCERTAIN 16 32 42

AGREE 23 46 88

STRONGLY 6 12 100
AGREE

TOTAL 50 100

Do You Feel Safe In Your Transactions With The Retail

Banking ?

12% 10%

46% DISAGREE
32% UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION

With this statement most of the respondents agreed. Among the total respondents 23 agreed
with this statement and 6 strongly agreed. 46% respondents were neutral and 10%
respondents disagreed. 10% are one who strongly disagreed.

Ques.11 Is the Retail Banking is trustworthy?

Page | 58
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE 4 8 8

UNCERTAIN 13 26 34

AGREE 28 56 90

STRONGLY 5 10 100
AGREE

TOTAL 50 100

Is the Retail Banking is trustworthy ?

10% 8%
26% DISAGREE
UNCERTAIN
56% AGREE
STRONGLY AGREE

INTERPRETATION

The Retail banking is trustworthy. According to my findings, 56% respondents agreed that
employees at J&K bank are trustworthy. 26% respondents were neutral and 8% respondents
disagreed with this statement & 10% strongly agree with this statement.

[Link] you use retail banking on daily based transition?

Page | 59
SCALE FREQUENCY PERCENTAGE CUMULATIVE PER-
CENTAGE

DISAGREE 3 6 6

UNCERTAIN 8 16 22

AGREE 20 40 62

STRONGLY 19 38 100
AGREE

50 100
TOTAL

Do you use retail banking on daily based

transition?

6%
16%
38%

40%

Disagree
Uncertian
Agree
Strongly Agree

INTERPRETATION

Total sample size was 50. Here analysis shows that among the total respondents 20 people
agreed with this statement. They use the Retail banking on their daily bases. 19 people

Page | 60
strongly agreed with this statement. Also 8 people were neutral and the rest of the
respondents disagreed and strongly disagree.

CHAPTER – 6
FINDINGS, CONCLUSION & SUGGESTIONS

6.1 Findings of The Study:

➢ J&K bank has modern-looking and hi-tech equipment. Here analysis show that most
of the respondents disagreed with this statement. Among the total respondents 50%
disagreed, 32% were neutral and 8% agreed. After analysis I found that majority of
the respondents think that J&K bank has modern looking equipment. Bank did not
have modern looking equipment or no hi-tech equipment.
➢ Materials associated with the Retail banking are visually appealing at J&K bank. Here
36% respondents agreed with this statement and 6% strongly agreed with this
statement. 44% were neutral that is most and 14% disagreed. There was no
respondent who strongly disagreed. Hence, in general it can be concluded that
materials associated with the services Such as instruction to use the Retail Banking or
their Bank App are visually appealing.
➢ My sample size was 50. Here analysis shows that among the total respondents 26
respondents disagreed and 14 respondents agreed with this question. Also, I found that
5 people were neutral and 2 people strongly disagreed. Hence, I concluded that
majority of them disagreed that the bank when promises to do something by certain
time, it does so.
➢ When you have a problem using Retail banking, J&K bank shows sincere interest in
solving it. After analysing this statement, I found that most of the respondents agreed
i.e., 52% respondents agreed. Also, I found that 28% were neutral with this statement
and 6% were committed with disagree. There was no one who strongly disagreed.
Hence J&K bank can be said to be reliable.
➢ Total sample size was 50. Here analysis shows that among the total respondents 17
people agreed with this statement. They think that J&K bank performs the services
right the first time. 6 people strongly agreed with this statement. Also 17 people were
neutral and the rest of the respondents disagreed and strongly disagree.

Page | 61
 ➢ Bank insists on error free records. J&K bank has proved from my analysis that it
surely insists on error free records as 46% respondents agreed with this statement and
24% strongly agreed. Only 10% respondents disagreed and no one strongly disagreed.
➢ Total sample size was 50. Here analysis shows that among the total respondents 20
people agreed with this statement. They think that J&K bank tell all the customer
about the Retail banking frauds. 19 people strongly agreed with this statement. Also 8
people were neutral and the rest of the respondents disagreed and strongly disagree.
➢ Retail banking of J&K bank understands specific needs. With this statement most of
the respondents were neutral. Among the total respondents 20 respondents agreed and
4 respondents strongly agreed. 5 respondents disagreed with this statement.
➢ From my analysis I found that 52% respondents agreed that Retail banking server of
J&K bank have complete knowledge to answer their questions. 26% respondents
strongly agreed to this statement and only 4% disagreed. 18% neither agreed nor
disagree.
➢ With this statement most of the respondents agreed. Among the total respondents 23
agreed with this statement and 6 strongly agreed. 46% respondents were neutral and
10% respondents disagreed. 10% are one who strongly disagreed.
➢ The Retail banking is trustworthy. According to my findings, 56% respondents agreed
that employees at J&K bank are trustworthy. 26% respondents were neutral and 8%
respondents disagreed with this statement & 10% strongly agree with this statement.

Limitations of the Study:

➢ 50 samples do not reflect the opinion of customers as whole.
➢ The data was collected by conducting quantitative research method distributing
questionnaires.
➢ Due of time constraints it is impossible to find the true calculation & there may be
possibility of committing a general error.”
➢ The study is only restricted to a particular location. So, it cannot be taken as a whole
representative of the banking industry.
➢ Many respondents can be baised towards the questions asked and there can be a lot of
reasons for not responding at all.
➢ Some respondents wanted to play safe and used ‘’uncertain’’ as a option which made
it difficult to arrive at a right conclusion.

Page | 62
 ➢ Respondents may give biased answers for the required data. Some of the respondents
did not like to respond. Some tried to escape some statements by simply answering
“Neither agree nor disagree” to most of the statements. This was one of the most
important limitations faced, as it was difficult to analyse and come at a right
conclusion.

Suggestions:

➢ Reliability is an obvious place to start. Customers of the bank want to know their
resources are safe and within trustworthy institutions. A way to ensure this peace of
mind would be to take steps to ensure bank employees are well trained, so each bank
associate is able to offer complete and comprehensive information at all times.
Consistent policies combined with a knowledgeable staff will foster a high degree of
institutional cohesion and reliability.
➢ Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing J&K sbank be
regarded as responsive. Staff should be encouraged to present relevant options to
banking customers in a manner that does not resemble salesmanship so much as a
desire to serve.
➢ Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location
close to their home or their workplace. It is natural that customers become
comfortable and habituated to these branch banks, for the same reason they develop
familiarity with a neighbourhood supermarket or convenience store. It makes sense
that bank employees would be encouraged to learn to recognize these regular
customers, learn their names, and begin to identify their basic service requirements.
➢ Learning to understand customers‟ needs will allow bank associates to offer enhanced
services, perhaps lowering customers‟ banking costs and increasing their investment
potential. This could also open up the possibility of increased profits for banks, for
when perceived as more service and customer oriented, they will, in effect, become a
useful and pleasant way to “shop.”

Page | 63
 ➢ Keeping the bank with up-to-date technologically are important factors. Modern
equipment’s, new improved technology should be replaced with the old ones. If the
staff inside is pleasant and well-informed, in an aesthetically pleasing environment,
then customer satisfaction will be high.

The five-dimensional structure could possibly serve as a meaningful framework for tracking a
banks service quality performance over time and comparing it against the performance of
competitors. Items on some dimensions should be expanded if that is necessary for reliability.
Thus, the banking industries must continuously measure and improve these dimensions in
order to gain customers loyalty

Page | 64
 CHAPTER – 7
REFERENCES AND BIBLIOGRAPHY
➢ [Link]
➢ JH McAlexander, DO Kaldenberg… - Journal of health care …, 1994 -
[Link]
➢ [Link]
267989820_Service_Quality_Servqual_and_its_Effect_on_Customer_Satisfaction_in_
Retailing_Introduction_Measures_of_Service_Quality

➢ Kotler Philip, marketing management, (Pearson education, 12th edition) Malhotra K.

Naresh, marketing research (An applied orientation), Research design, (Prentice Hall
of India pvt. 5th edition)

➢ Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing
Integrated Customer Focus across the Firm” (4th Edition)
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
onin-Krishna-Gantasala/d124e866687313a05a8ae38c2cd8d7f49e257830
➢ [Link]
267989820_Service_Quality_Servqual_and_its_Effect_on_Customer_Satisfaction_in_
Retailing_Introduction_Measures_of_Service_Quality
➢ [Link]

[Link]

Page | 65