A PROJECT REPORT ON “Customer preference and satisfaction level for Credit schemes offered by the Varachha co-operative bank”

[CONDUCTED ON BEHAFT OF THE VARACHHA CO-OP BANK, SURAT]

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UNDER GUJRAT TECHNOLOGICAL UNIVERSITY

UNDER THE GUIDENCE OF: FACULTY GUIDE COMPANY GUIDE RUTVI P. UMRIGAR VIJAY GAJERA (ASSISTANT PROFESSOR)

SUBMITTED BY ANKIT N. MALANI ENROLLMENT NO: 127080592009

M.B.A – SEMESTER III

Bhagwan Mahavir College of Management, SURAT M.B.A PROGRAMME AFFILIATED TO GUJRAT TECHNOLOGICAL UNIVERSITY AHMEDABAD JULY 2013

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PREFACE

I undertake the writing of this Project Report of customer preference and satisfaction level towards credit schemes offered by the varachha co-op bank because with the theoretical knowledge it is necessary to obtain the practical knowledge also.As a student of management, I must be encouraged by the growth and rapid development taken place in the banking sector, in India. Still recently, management is growing baby. Keeping in mind the ever development field of management and the great demand for full paper on project work in the field of financial management at the master degree level, thus it is our moral and obligatory duty to take part of our studies with great enthusiasm and seriousness and give it the due importance.

The report gives information regarding banking system and the co-operative banking. This project contains the details about various loan, procedure, criteria, scheme & and a research work on customer preference and satisfaction level for various credit schemes offered by the bank to individual customer.

Ankit Malani ENROLLMENT NO: 127080592009

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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of the leaders, whose constant guidance and encouragement crown all the efforts with success. I make a choice “The Varachha Co-Operative Bank Ltd.” Because of good reputation & good service provider in the market. I have very good memories with “The Varachha Co- Operative Bank Ltd.”

I achieve a lot during the industrial training. It was great experience that is never forget in my life and it will also helpful me in future. I thanks to the management of the bank who give me excellent guidance for preparing this report. I specially thanks Mr. Kanjibhai bhalala (The chairman), Mr. Sureshbhai Kakadiya (Ass. General manager), Mr. Mukeshbhai (Branch Manager of the kapodra branch) and all the staff member of “The Varachha Co-Operative Bank Ltd.” for giving me a such type of opportunity & provide me useful information and data regarding the subject with their cent percent participation and supported in making this report a successful task. It was a memorable experience to work with them and complete my summer training.It is my privilege to express my deep sense of gratitude to for his efforts, guidance, valuable comments and suggestions for making this report.

Finally, I express my intense gratitude to my parents whose blessings has helped me to translate my efforts into fruitful achievement.

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DECLRATION

I, Mr. Ankit Malani, hereby declare that the report for Summer Internship Project entitled “Customer preference and satisfaction level for credit scheme offered by the Varachha Co-Operative bank”is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged.

Place : Surat (Signature) Date : Ankit Malani

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EXECUTIVE SUMMARY

There are various changes which have been taken place in the last decade and are taking place at an astonishing pace today which is likely to completely change the face of banking like never before. So it was great opportunity to do.To study the NPA guidelines of RBI. And to find out NPA and evaluation of nonperforming assets from the total advances in the Varachha co-operative bank Ltd. This research basically descriptive research design is opted. In descriptive research, the cross sectional research design is selected because the sample taken out of the population is analyzed only once at a particular time interval. All the data required to carry out the research will be obtained through secondary resources. The population consists of the varachha bank and their 12 branches situated in Surat city.

In order to meet objective below objects will be taken in to consideration.  RBI guidelines regarding NPAs.  Annual report of last five year of the Varachha co-operative bank Ltd.  Periodically circulation and the statement of the bank.

This project mainly focused on NPAs that is very necessary to control for as it have multifold effects. In the maker of liberalization, privatization, globalization, era, RBI has introduced recommendation of Narshimham committee. Looking to the number of bank liquidation since the past few years the RBI has introduced May regulation for healthy working of banks in India. One of such policy decision is the rule regarding the income reorganization, assets classification & provisioning norms in case of borrower‟s account. the level of NPA provides important measures of the banks. NPA effects the liquidity position. So, identification of NPA, managing it and reducing the NPA is very necessary. NPA of VCB and last five years gross NPA is shown to better position of bank. Based on the findings, conclusions are drawn, and further, suitable recommendations are brought out. The entire project report is presented in the form of a report using chapter scheme, developed logically and sequentially from „introduction‟ to „bibliography & references.

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TABLE OF CONTENTS

Preface Acknowledgement Declaration Executive Summary

SR. NO PARTICULARS PAGE NO PART-I GENERAL INFORMATION 1 About the Industry 9 World Market 12 Indian Market 13 2 About major companies in the Industry 14 3 Product Profile ( Major Products) 16 PART-II COMPANY STUDY 4 Company Information and Product Profile 17 Functional Departments 24 - HR - Finance - Comparative Statement Loan PART-III PRIMARY STUDY 5 Introduction of the study 55 5.1 Literature review 5.2 Background of the Study 5.3 Problem Statement and Importance of the Study 5.4 Objective of the Study 5.5 Hypothesis 6 Research Methodology 59 6.1 Research Design 6.2 Sources of Data 6.3 Data Collection Method 6.4 Population 6.5 Sampling Design 6.6 Sampling Frame 6.7 Data Collection Instrument 7 Data Analysis and Interpretation 62 8 Results and Findings 100 9 Limitations of the Study 101 10 Conclusion/Suggestions 102 Bibliography Annexure

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1. ABOUT BANK & BANKING SYSTEM

Introduction:

Bank and banking are the most important and major factors in today's world economy. Each and every transaction is routed through banking. Not a single business is possible without banking activity. The bank and the business are related. Today we cannot imagine the business world without banking institution. Banking is an important as blood in the human body. Due to the development of banking, advances are increased and business activities developing so it is rightly said, "The development of banking is not only root but also the result of the development of the business world.The word “bank” derived from the word “bancus” or “banquet” that is a bench.

The activities and facilities provided by the bank such as collection of deposits from small investors, lending finance and leasing / cash credit, routine transaction is very important for economic growth on whole.Every economic activity is done through bank in this new era. So every economy whether it is developed, under developing or under developed need strong banking system from the economic point of view. The major task of bank and other financial institution is to act as intermediaries channeling, saving to investment requirements of savers are reconciled with the credit need of investors and consumers.

Growth of Banking in India In the past, the use of money for buying & selling was very much restricted. At that time the development of communication, economic process and the spread of science, and growth of economic and political institutes, the use of money also expanded. As times advanced the character of economic transitions also change. In fact, the innovations in the fields of transportation and communications, development of energy and manufacturing have resulted in innovations in the sphere of banking.

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Banking System

The money business performed by the earlier goldsmiths in England has been considered as the beginning of banking. The goldsmiths who received money for safe custody against their signed receipt had given an undertaking to return the money to the depositor or to the bearer on demand. After developing their work they realized that landing others money for a fixed period of time was profitable. In 1770 first Indian banks know as bank of Hindustan was started and was close down twenty year later. Then east India Company started three presidency banks with gvernment participation i.e.

o Bank of Calcutta 1806 o Bank of Bombay 1840 o Bank of Madras 1843 o Allahabad Banks 1865 o Alliance bank of Simla 1873

With the rapid development of the banking institution in the last few decades. So that when change in organization structure leads to change in banking system. Some of the important banking system and practices currently in operation are discussed in the following paragraph.

Unit Banking:

The method of unit banking is carrying on banking business through a single office, or in some cases a few offices in a limited area. It is known as localized banking.Branch banking is a method of carrying on banking business by big banking companies having several branches throughout a country or territory. For example, in United Kingdom, most part of the banking business is in the hands of five big banks.

Branch Banking:

Over the years, the structure of banking also has undergone tremendous changes. Consequently, several systems of banking have emerged in the branch banking. Branch banking is a system in which every bank work is a legal entity having one board of directors and one group of shareholders and operates through a network of

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