Meaning and Definition of Banking

Meaning of Banking

You know people earn money to meet their day to day expenses on food, clothing, education
of children, having etc. They also need money to meet future expenses on marriage, higher
education of children housing building and social functions. These are heavy expenses, which
can be met if some money is saved out of the present income. With this practice, savings
were available for use whenever needed, but it also involved the risk of loss by theft, robbery
and other accidents. Thus, people were in need of a place where money could be saved safely
and would be available when required. Banks are such places where people can deposit their
savings with the assurance that they will be able to with draw money from the deposits
whenever required. Bank is a lawful organization which accepts deposits that can be
withdrawn on demand. It also tends money to individuals and business houses that need it.

Definitions of Bank

1. Indian Banking Companies Act –

“Banking Company is one which transacts the business of banking which means the
accepting for the purpose of lending or investment of deposits money from the public
repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise”.

2. Dictionary Meaning of the Word ‘Bank’ \

-The oxford dictionary defines a bank as “an establishment for custody of money received
from or on behalf of its customers. It’s essential duty is to pay their drafts on it. It’s profits
arises from the use of the money left employed by them”.

3. The Webster’s Dictionary Defines

a bank as “an institution which trades in money, establishment for the deposit, custody and
issue of money, as also for making loans and discounts and facilitating the transmission of
remittances from one place to another”.

1

4. According to Prof. Kinley,

“A bank is an establishment which makes to individuals such advancesof money as may be
required and safely made, and to which individuals entrust money when it required by them
for use”.

The above definitions of bank reveal that bank is an Business institution which deal in money
and use of money. Thus a proper and scientific definition of the bank should include various
functions performed by a bank in a proper manner. We can say that any person, institution,
company or enterprise can be a bank. The business of a bank consists of acceptance of
deposits, withdrawals of deposits, Making loans and advances, investments on account of
which credit is exacted by banks.

Types of Banks

There are various types of banks which operate in our country to meet the financial
requirements of different categories of people engaged in agriculture, business, profession
etc. on the basis of functions, the banking institution may be divided into following types:

: Types of Banks

1. Central Bank

A central bank functions as the apex controlling institution in the banking and financial
system of the country. It functions as the controller of credit, banker’s bank and also enjoys
the monopoly of issuing currency on behalf of the government. A central bank is usually
control and quite often owned, by the government of a country. The Reserve Bank of India
(RBI) is such a bank within an India.

2. Commercial Banks

It operates for profit. It accepts deposits from the general public and extends loans to the
households, the firms and the government. The essential characteristics of commercial
banking are as follows:

- Acceptance of deposits from public

- For the purpose of lending or investment

2

- Repayable on demand or lending or investment.

- Withdrawal by means of an instrument, whether a cheque or otherwise.

Another distinguish feature of commercial bank is that a large part of their deposits are
demand deposits withdrawable and transferable by cheque.

3. Development Banks

It is considered as a hybrid institution which combines in itself the functions of a finance
corporation and a development corporation. They also act as a catalytic agent in promoting
balanced and viable development by assuming promotional role of discovering project ideas,
undertaking feasibility studies and also provide technical, financial and managerial assistance
for the implementation of project.

In India ‘Industrial Development Bank on India’ (IDBI) is the unique example of
development bank. It has been designated as the principal institution of the country for co-
ordinating the working of the institutions engaged in financing, promoting or development of
industry.

4. Co-operative Banks

The main business of co-operative banks is to provide finance to agriculture. They aim at
developing a system of credit. Agriculture finance is a special field. The co-operative banks
play a useful role in providing cheap exit facilities to the farmers. In India there are three
wings of co-operative credit system namely –

(i)Short term,

(ii) Medium-term,

(iii) Long term credit.

The former has a three tier structure consisting of state co-operative banks at the state level.
At the intermediate level (district level) these are central co-operative banks, which are
generally established for each district. At the base of the pyramid there are primary
agricultural societies at the village level. The long term exit is provided by the central land
development Bank established at the state level. Initially, these banks used to advance loans
on mortgage of land for the purpose of securing repayment of loans.

3

long term. direct assistance and leasing facility. mandis and villages. One of the major bank is ‘National Bank for Agricultural and Rural development’ (NABARD) established in 1982. 9. Rural Banking A set of financial institution engaged in financing of rural sector is termed as ‘Rural Banking’. Mutual savings bank. towns. commercial saving banks etc. Indigenous Bankers That unorganised unit which provides productive. discounting and rediscounting of bills. These banks can be found everywhere in cities. They concentrate their working on medium and long-term financing. It was the subsidiary of Industrial development Bank of India. 4 . The polices of financing of these banks have been designed in such a way so that these institution can play catalyst role in the process of rural development. unproductive. as an apex institution in the field of agricultural and other economic activities in rural areas.5. Saving Banks These banks perform the useful services of collecting small savings commercial banks also run “saving bank” to mobilise the savings of men of small means. 6. Export . 8. Different countries have different types of savings bank viz. This bank was established for providing loan facilities. Post office saving. 1982 as a statutory corporation wholly owned by the central government. Specialised Banks These banks are established and controlled under the special act of parliament. These banks have got the special status. medium term and short term loan at the higher interest rate are known as indigenous bankers.Import Bank These banks have been established for the purpose of financing foreign trade. In 1990 a special bank named small industries development Bank of India (SIDBI) was established. 7. The Export-Import Bank of India (EXIM Bank) was established on January 1.

(B) Drive thru Banking It is probably the least popular form of banking today. Foreign Exchange Banks These banks finance mostly to the foreign trade of a country.These are different types of banking through which consumer can attach to it- (A)Walk-in-Banking It is still a popular type of banking. Over a dozen foreign exchange banks branches are working in India have their head offices in foreign countries. several forms of banking exist. A person can withdraw or deposit money at a drive thru. Their main function is to discount. giving consumers a choice in the way they manage their money most people do a combination of at least two banking types. The advantage of walk in Banking is the face to face connection between the banker and a letter. the type of banking a consumer uses normally based on convenience. It allows consumers to stay in their while and drive up to a machine equipped with container. chute and intercom. This machine is connected to a bank and is run by one or two bank letters. Also unlike drive thru and ATM banking. International Banks 1 Make the basic list of those International Banks within India which help the banking sector of India to develop in International market. a person can apply for a loan and invest money during a walk in. 11. He must 5 . However. Today. accept and collect foreign bulls of exchange. Types of Banking Banking is described as the business carried on by an individual at a bank. They also buy and self foreign currencies and help businessmen to convert their money into any foreign currency they need. it still involves bank tellers and specialized bank officers. As. in the past. but is still used enough by consumers to create a need for it.10. Consumers must walk into a bank to use this service normally.aperson must fill out a slip of paper with the account and specific monetary amount and show a form of identification to a bank letter. in order to withdraw money or deposit it.

By going website of a bank and entering it. Indian banks can confidently compete with modern banks of the world. it has had to control miles and miles of difficult terrain. or lending money at a high rate of interest. waswidely prevalent in rural India. The bank teller and banker use it to communicate and discuss the specific banking request. Today. Walk in and drive thru banking does not offer this perk. The sector has translated the hopes and aspirations of millions of people into reality. By sliding an ATM card into an ATM machine. request loans and invest money. This is where the intercom comes into play. Banking has helped in developing the vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. (C) ATM Banking It is very popular because it gives a person 24 hour access to his bank account. it is activated and then through touching buttons on the machine. These different types of banking give a consumer the power of choice and also give them a comfortable banking system that gives them a convenient choice BANKING IN INDIA Indian banking is the lifeline of the nation and its people. who will complete the banker’s request. Before the 20th century. different from the one used for the ATM card. Entry of Joint stock banks and development of Cooperative movement have taken over a good deal of business from the hands of the Indian money lender. a person must have an ATM card with personal identification number (PIN) and access to an ATM machine. deposit money. (D)Online Banking It allows a person to get on the internet and sign into their bank. withdraw money. But to do so. usury. The container travels through the chute to the bank letter. This process is achieved with the use of a PIN. Online banking is growing in popularity because of its convenience. a consumer can get into his account. pay bills. a consumer is able to withdraw or deposit money. suffer the indignities of foreign rule and the pangs of partition. have lost his menacing teeth. In order to use an ATM. In the Indian Banking 6 .fill out a slip with his account and specific monetary amount and put it in the container. but charges apply if the ATM machine is not affiliated with the bank listed on the ATM card. Any ATM machine can be used. who although still exist.

The first of three was the Bank of Bengal. especially for agricultural and agriculture-based operations including farming. Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. in 1906.. After India‟s independence in 1947. Generally. As the banking institutions expand and become increasingly complex under the impact of deregulation. the Reserve Bank was nationalized and given broader powers. the market expanded with the establishment of banks such as Punjab National Bank. viz. it is crucial to maintain balance between efficiency and stability.System. cattle. By the 1900s. foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. the other two presidency bank. 1920 – which is now known as the State Bank of India. Cooperative banks exist side by side with commercial banks and play a supplementary role in providing need-based finance. innovation and technological upgradation. The Reserve Bank is responsible for licensing of banks and branches. The three presidency banks were subsequently amalgamated into the Imperial Bank of India (IBI) under the Imperial Bank of India Act. personal finance etc. After this. in Mumbai – both of which were founded under private ownership. in 1895 in Lahore and Bank of India. The first fully Indian owned bank was the Allahabad Bank. During the last 30 years since nationalization tremendous changes have taken place in the financial markets as well as in the banking industry due to financial sector reforms. Calcutta was the most active trading port. hatchery. This was followed by Bank of Hindustan. mainly due to the trade of the British Empire. Rapid advancement of technology has contributed to significant reduction 7 . The banks have shed their traditional functions and have been innovating. co- operative banks are governed by the respective co-operative acts of state governments. and it also regulates credit limits to state co-operative banks on behalf of primary co-operative banks for financing SSI units. which was established in 1865. along with some small industries and self-employment driven activities. But. improving andcoming out with new types of services to cater emerging needs of their customers. At that point of time. the Bank of Bombay and the Bank of Madras. Banks have been given greater freedom to frame their own policies. the Indian government established three presidency banks in India. and due to which banking activity took roots there and prospered. respectively. A couple of decades later. milk. Both these banks are now defunct. these banks are also regulated by the RBI after amendment to the Banking Regulation Act 1949. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. since banks began to be regulated by the RBI after 1 stMarch 1966. were established in 1840 and 1843. which obtains charter in 1809.

mass banking etc. in turn. regional rural banks and development banking institutions which are expected to provide an adequate number of effective retail outlets to meet the emerging socio-economic challenges during the next two decades. However. and erosion of the profitability of the banking sector. has come in the way of bank ‟s income generation and enchancement of their capital funds. Prudential norms. the expertise in developing sophisticated financialproducts and use of state-of-the-art technology. The operational structure of banking in India is expected to undergo a profound change during the next decade.in transaction costs. the development ofelectronic banking has also led to new areas of risk such as data security and integrity requiring new techniques of risk management. Inadequacy of capital has been accompanied by inadequacy of loan loss provisions resulting into the adverse impact on the depositors‟ and investors‟ confidence. The acceptance of the Narasimham Committee recommendations by the Government has resulted in transformation of hitherto highly regimented and overbureaucratized banking system into market driven and extremely competitive one. have been put in place for promoting and enhancing the efficiency of banks. Gradual deregulation that is being ushered in while stimulating the competition would also facilitate forging mutually beneficial relationships. which would ultimately enhance the quality and content of banking. in line with international standards. The banking industry is entering a new phase in which it will be facing increasing competition from non-banks not only in the domestic market but in the international markets also. the private bank sector has become enriched and diversified with focus spread to the wholesale as well as retail banking. The electronic age has also affected the banking system. In the final phase. asset reconstruction and securitization. The Government.leading to very fast electronic fund transfer. facilitated greater diversification of portfolio and improvements in credit delivery of banks. There has been deterioration in the quality of loan portfolio which. With the emergence of new private banks. whereas the new private banks have the clout of massive capital. the banking system in India will give a good account of itself only with the combined efforts of cooperative banks. lean personnel component. Despite this commendable progress. serious problem have emerged reflecting in a decline in productivity and efficiency. set up Narasimham Committee to look into the problems and recommend measures to improve the health of the financial system. consolidation. The process of institution building has been strengthened with several measures in the areas of debt recovery. therefore. The existing banks have wide branch network and geographic spread. convergence. 8 . The massive and speedy expansion and diversification of banking has not been without its strains.

and banks from the Public Sector include Punjab National bank. commercial banks can be further grouped into nationalized banks. Vijaya Bank. regional rural banks and private sector banks (the old/ new domestic and foreign). Oriental 9 . As far as foreignbanks are concerned they are likely to succeed in the Indian Banking Industry In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank. SBI Commercial and International Bank Ltd. Bank of Rajasthan Ltd.1990s to about 14 percent in 2004. they are among the largest financial institutions when considered as a group. The Indian Banking industry. massive manpower and lack of modern technology. in the sample of banks in advanced economies and emerging markets analyzed in this paper. In a number of countries. The Public Sector Banks(PSBs).000crores. Unfortunately they are burdened with excessive Non Performing assets (NPAs). These banks have over 67. They are leaders in internet banking. non-scheduled banks and scheduled banks. which is governed by the Banking Regulation Act of India.7 per cent that existed between 1994-95 and 2002-03. On the other hand the Private Sector Banks are making tremendous progress. It is expected that there will be large additions to the capital base and reserves on the liability side. mobile banking. UCO Bank. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03.90. which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Moreover. In terms of ownership. the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. the share of cooperative banks has been increasing in recent years.000 branches spread across the country. 1949 can be broadly classified into two major categories. Scheduled banks comprise commercial banks and the co-operative banks.Cooperative (mutual) banks are an important part of many financial systems. the market share of cooperative banks in terms of total banking sector assets increased from about 9 percent in mid. Bank assets are expected to grow at an annual composite rate of 13. the State Bank of India and its group banks. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan. phone banking. ATMs.4 per cent during the rest of the decade as against the growth rate of 16. Industry scenario of Indian Banking Industry: The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. ING Vyasa Bank. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs40.

2 percent of the deposits and 47. which in turn helps them to save on manpower costs and provide better services. while on the other hand the private sector banks are consolidating themselves through 10 . Eight new private sector banks are presently in operation. After the second phase of financial sector reforms and liberalization of the sector in the early nineties. On the one hand. 3. the State Bank Of India (SBI) and its 7 associates accounted for a 25 percent share in deposits and 28. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking.As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase. Current Scenario: The industry is currently in a transition phase. These banks due to their late start have access to state-of-the-art technology.Bank. The share of foreign banks (numbering 42). This in turn resulted in a significant growth in the geographical coverage of banks.5 percent of credit during the same period. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. the PSBs.9 percent and 12. ABN-AMRO Bank. During the year 2000.7 percent.1 percent share in credit.14 percent and 12. regional rural banks and other scheduled commercial banks accounted for 5.41 percent. American Express Bank Ltd. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold.2 percent respectively in deposits and 8. The 20 nationalized banks accounted for 53. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. ANZ Grindlays Bank. Allahabad Bank among others. Citibank are some of the foreign banks operating in the Indian Banking Industry. excessive non PerformingAssets (Npas) and excessive governmental equity.which are the mainstay of the Indian Banking system are in the process of shedding their flab in terms of excessive manpower. 3. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as “priority sectors”.85 percent respectively in credit during the year 2000.

foreign banks. while the PSBs are still grappling with disgruntled employees in the aftermath of successful VRS schemes. the industry has witnessed several such instances. Anagram Finance and Bank of Madura. For instance. Vysya Bank are said to be on the lookout. mobile banking. The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes.mergers and acquisitions. Bank of Punjab. HdfcBank‟s merger with Times Bank IciciBank‟s acquisition of ITC Classic. following India‟s commitment to the W To agreement in respect of the services sector. Also. Talks of government diluting their equity from 51 percent to 33 percent in November 2000 has also opened up a new opportunity for the takeover of even the PSBs. which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000). Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on the retail segment. lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. phone banking. debit cards. Indusind Bank. Private sector Banks have pioneered internet banking. Banks with their phenomenal reach and a regular interface with the retail investor are the best placed to enter into the insurance sector.Global Trust Bank merger however opened a pandora‟s box and brought about the realization that all was not well in the functioning of many of the private sector banks. Banks in India have been allowed to provide fee-based insurance services without risk participation. including both new and the existing ones. Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena. invest in an 11 . The UTI bank. have been permitted to open up to 12 branches a year with effect from 1998-99 as against the earlier stipulation of 8 branches. anywhere banking. Many of them arealso entering the new vistas of Insurance. great size and access to low cost deposits. Therefore one of the means for them to combat the PSBs has been through the merger and acquisition (M& A) route. The private players however cannot match the PSB‟s great reach. The FDI rules being more rationalized in Q1FY02 may also pave the way for foreign banks taking the M& A route to acquire willing Indian partners. falling revenues from traditional sources. Centurion Bank. PSBs. Over the last two years.

Though bank is considered to be an ancient institution just like money. Hence.insurance company for providing infrastructure and services support and set up of a separate joint venture insurance company with risk participation. 12 . such as credit creation. in its present form. agency job and general service. Introduction Modern commercial banking. Besides dealing in money. a rigid classification of banks is bound to the unrealistic. During Ramayana and Mahabharata eras also banking had become a full-fledged business activity. Financial institutions which are shaped by the general economic structures of the country concerned vary from one country to another. It can also be described as an institution which borrows idle resources. bank refers to an institution that deals in money. creates credit and undertakes agency work. gives loans. It does not refer only to a place of tending and depositing money. but looks after the financial problems of its consumers. the goldsmiths and the merchants. This era is the age of specialization with the changing situation in the world economy. In simple words.lending activities in vedic period. Origin and Development of Banking There seem so be no uniformity amongst the economist about the origin of the word ‘Bank’. A bank has been often described as an institution engaged in accepting of deposits and granting loans. It has been believed that the word ‘Bank’ has been derived from the German word ‘Bank’ which means joint stock of firm or from the Italian word ‘Banco’ which means a heap or mound.It’s evolution can be traced in the functions of money lender. Bank. makes funds available to. therefore is such an institution which accepts deposits from the people. In other words the development of commercial banking in ancient times was closely associated with the business of money changing. They performed most of those functions which banks perform in modern times. banking functions have broadened. is of recent origin. In India the ancient Hindu scriptures refers to the money . This institution accepts deposits from the people and gives loans to those who are in need. bank these days perform various other functions.

The first record of minted metal coins was in Mesopotamia in about 2500B. because moneylenders worked on benches in market places. The history of banking in each country runs in lines with the development of trade and industry.CO-OPERATIVE BANKING IN INDIA\ HISTORY OF BANKING Banking is nearly as old as civilization. with many banks created to deal with increasing trade. instead of charging the merchants.C. banks merged into larger and fewer groups and expanded into other country. meaning bench. The bank of Venice was established in 1171 to help the government raise finance for a war. and with the level of political confidence and stability. with the metal itself staying under lock and key. The goldsmith realized that they could lend out some of the gold and silver that they had and charge interest. which extended throughout Europe. in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. as not all of the merchants would ask for the gold and silver back at the same time. the first European banknotes. The word bank comes from the Italian word “ban co”. in Sweden. the goldsmiths paid them to deposit their gold and silver. Modern banking began in Venice. cheque and printed paper money appeared in the 1700’s and 1800’s. Eventually. Receipts given to the Merchant were sometimes used to buy or sell. The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. By 1709. 13 . Asia and Africa. At the same time. which was handwritten appeared in1661. goldsmith were using bank of England notes of their own receipts. The ancient Romans developed an advanced banking system to serve their vast trade network.New technology transformed the banking industry in the 1900’s round the world. The history of banking could be said to have started with the appearance of money.

which is the profitable activity of the three. The Bank have introduced progressively more sophisticated versions of these services and have diversified introduction in numerable areas of activity not directly relating to this traditional trinity 14 . The Bank have developed their roles to such an extent that a direct contact between the depositors and borrowers in now known as disintermediation. This can and does happen of course. Before few decades there existed some influential people who used to land money. In everyday branch terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit. Those three are closely related to each other. Banks play a pivotal role in enhancing each and every sector. This is what has lead to the very foundation of financial institution like banks. money transfer and making advances. the objective being to lend money. Banking industry has always revolved around the traditional function of taking deposits. Banks fulfills the role of a financial intermediary.BANKING STRUCTURE IN INDIA: In today’s dynamic world banks are inevitable for the development of a country. But a substantially high rate of interest was charged which made borrowing of money out of the reach of the majority of the people so there arose a need for a financial intermediate. They have helped bring a draw of development on the world’s horizon and developing country like India is no exception. This means that it acts as a vehicle for moving finance from those who have surplus money to (however temporarily) those who have deficit. Without the intermediary of the banks both their depositors and their borrowers would have to contact each other directly. Taking deposits generates funds for lending and money transfer services are necessary for the attention of deposits.

Societies Indian Foreign Public Sector Private Sector HDFC. State Bank of Other Nationalized Regional Rural India and its Banks Banks Subsidiaries 15 .INDIAN BANKING SYSTEM Reserve Bank of India Schedule Banks Non-Schedule Banks Central co-op State co-op Commercial Commercial Banks Banks and Banks Banks Primary Cr. Banks Banks ICICI etc.

COOPERATIVE BANKS IN INDIA Co-operative Banks in India are registered under the Co-operative Societies Act. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act. which put them at a level 16 . banking accounts. Co-operative banks differ from stockholder banks by their organization. their goals. The cooperative bank is also regulated by the RBI. In most countries. 1965.. they are supervised and controlled by banking authorities and have to respect prudential banking regulations. their values and their governance. deposits. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. who are at the same time the owners and the customers of their bank.  Cooperative banks in India finance rural areas under:  Farming  Cattle  Milk  Hatchery  Personal finance  Cooperative banks in India finance urban areas under:  Self-employment  Industries  Small scale units  Home finance  Consumer finance  Personal finance A co-operative bank is a financial entity which belongs to its members.). Co-operative banks generally provide their members with a wide range of banking and financial services (loans..

As a consequence. Co-operative bank needs current and future development in information technology.  Profile allocation : in a co-operative bank. Depending on countries. co-operatives are organized groups of people and jointly managed and democratically controlled enterprises. the needs of the customers meet the needs of the owners. which is related to the use of the co-operative's products and services by each member. this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body. Profit is usually allocated to members either through a patronage dividend. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services. the first aim of a co-operative bank is not to maximise profit but to provide the best possible products and services to its members. according to the co-operative principle of "one person.  History of co-operative banks in India For the co-operative banks in India. a significant part of the yearly profit. Professionalism in co-operative banks reflects the co-existence of high level of skills and standards in performing. They exist to serve their members and depositors and produce better benefits and services for them. benefits or surplus is usually allocated to constitute reserves. with legal or statutory limitations in most cases. one vote". which is related to the number of shares subscribed by each member.playing field with stockholder banks. Even if their organizational rules can vary according to their respective national legislations. who democratically elect the board of directors. or through an interest or a dividend. It is indeed necessary for co-operative banks to devote adequate attention for maximizing their returns on every unit of resources through effective services. Members usually have equal voting rights. as co-operative bank members are both. A part of this profit can also be distributed to the co-operative members.  Democratic member control : co-operative banks are owned and controlled by their members. Co-operative banks have completed 100 years of existence in India. duties entrusted to an individual. They play a very 17 . co-operative banks share common features :  Customer's owned entities : in a co-operative bank.

The history of co-operative banks goes back to the year 1904. The Central Cooperative Banks are financing the farmers through PACS at the village Level. The first phase of co-operative bank development was the formation and regulation of co- operative society. Chandigarh was established on 31 August 1949 at shimla vides Registration No. everybody has been covered in the fold of this institution.” This marked the beginning of the second phase in the history of Co-operative Credit Institutions. From a farmer. The co-operative banks in India form an integral part of our money market today. artisan to traders/businessman.important role in the financial system. the co- operative credit society act was enacted to encourage co-operative movement in India. In the Cooperative banking structure the position of the Punjab State Coop Bank is extremely important as a the whole short term credit system revolves around it. It has 17 branches and 1 extension counter in the city of Chandigarh. This bank ensures that its member central cooperative banks follow sound banking practices and observe strict financial discipline. In 1904. self help and mutual aid.720 as a principal financing institution of the cooperative movement in the state. There is no arena of life where this premier institution has not played its part. The Government of Bombay passed the first State Co-operative Societies Act in 1925 “which not only gave the movement. Therefore.CHANDIGARH THE Punjab State Cooperative Bank Ltd. THE PUNJAB STATE COOPERATIVE BANK LTD. white and sweet revolutions in the state of Punjab are some of the major achievement in which this institution has played a vital role.. But the development of co-operative banks from 1904 to 1951 was the most disappointing one. its size and shape but was a pace setter of co-operative activities and stressed the basic concept of thrift. The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the subject of “Cooperation” from Government of India to the Provincial Governments. 20 Central Cooperative Banks having 802 branches in the State of Punjab are affiliated with the bank. The green. a brief resume of their development should be taken into account. 18 .

It was the idea of Hermann Schulze (1808-83) and Friedrich Wilhelm Raiffeisen (1818-88) which took shape as cooperative banks of today across the world. People were forced to poverty and deprivation. The historical roots of the Cooperative Movement in the world days back to days of misery and distress in Europe faced by common people who had little or no access to credit to fund their basic needs. This success was achieved due to the failure of the commercial banks to fund and support the needs of small business owners and ordinary people who were outside the formal banking net. Although this helped spread cooperative movement in many parts of Europe. in uncertain times. These movements were supported by governments of the respective countries. The idea spread when the continent was faced with economic turmoil which led large populations to live at subsistence level without any economic security. It was similar to the many microfinance institutions which have become highly popular in developing economies of today. However. To promote the economic interest of the member banks and cooperative societies in the state in accordance with cooperative principles and to facilitate the development and funding of any cooperative society registered under the said act. 1961 for the time being in force. UK and Irish credit unions in 20th century were inspired by US credit unions which in-turn owe their emergence to Canadian adaptations of the German cooperative banking concept. in British Isles it is came from the revivalist Christian movement and found high acceptance with working class and lower middle class segments of society. They started to promote the idea of easy availability of credit to small businesses and for the poor segment of society. To carry on banking and credit business. Cooperative 19 . To serve as a Balancing Center for Cooperative Societies in the State of Punjab registered under the Punjab Cooperative Societies Ac.The Punjab State Cooperative Bank has already been awarded”BEST PERFORMANCE AWARD" by NABARD and NAFSCOB on number of occasions.

they have come a long way to support and provide assistance in activities like credit. processing. further recommended the setting up of a Cooperative Training College in every state and a Cooperative Training Institute for Advanced Study and Research at the Central level. with the onset of planning. irrigation. to households. It also stands for 36% of the total distribution of rural fertilizers and 28% of rural fair price shops. highlighted the deficiencies of in cooperative societies which seeped-in due to lack of proper education to the masses. enumerated the importance of education of members/staff for effective implementation of cooperative movement. He also laid down the importance of Central Assistance by the Government to support the movement. textiles. Extent of Cooperative Banking Indian cooperative structures are one of the largest such networks in the world with more than 200 million members. Rural Credit Survey Committee. Machlagan Committee in 1915. The cooperative movement and banking structures soon spread and resonated with the unexpressed needs of the rural Indian and small scale businesses. Saraiya Committee. in 1945.banks helped overcome the vital market imperfections and serviced the poorer layers of society. housing. Structure of Cooperative Banking in India The structure of cooperative network in India can be divided into 2 broad segments 20 . dairy. production. 1950s. The Cooperative Societies Act of 1912 further gave recognition to the formation of non-credit societies and the central cooperative organizations. the cooperative organizations gained more leverage and role with the continued governmental support. The Royal Commission on Agriculture 1928. Indian Cooperative Banks was also born out of distress prevalent in Indian society. sugar etc. constituted by RBI for establishing Regional Training Centres. Their ideas in turn were based on the pattern of Raiffeisen and Schulze respectively. warehousing. 1954 was the first committee formed till then to first delve into the problems of Rural credit and other financial issues of rural society. The Cooperative Credit Societies Act. banking. Since. transport. It has about 67% penetration in villages and fund 46% of the total rural credit. In independent India. Central Committee for Cooperative Training in 1953. 1904 The act was based on recommendations of Sir Frederick Nicholson (1899) and Sir Edward Law (1901). distribution/marketing.

the long-term structures are further divided into – I. Likewise. Both the categories are further divided into multi-state and single-state. This are-  State Cooperative Banks. Rural Cooperatives  The rural cooperatives are further divided into short-term and long-term structures. A Forum called State Level Task Force on Cooperative Urban Banks (TAFCUB) has been set-up to look into issues related to duality in control. The rural banking cooperatives have a complex monitoring structure as they have a dual control which has led to many problems.  Registration and Management activities are managed by Registrar of Cooperative Societies (RCS). 21 .1. The short-term cooperative banks are three tiered operating in different states. These RCS operate in single-state and Central RCS (CRCS) operate in multiple state.These operate at state-level. Majority of these banks fall in the non-scheduled and single-state category. Banks Rural Cooperatives Urban Cooperatives Urban Cooperatives can be further divided into scheduled and non-scheduled. Primary Cooperative Agriculture and Rural Development Banks (PCARDBS)-They operate at district/block level. Urban Cooperative 2. State Cooperative Agriculture and Rural Development Banks (SCARDS).  Banking activities of Urban Cooperative Banks are monitored by RBI. II.They operate at the apex level in states  District Central Cooperative Banks-They operate at the district levels  Primary Agricultural Credit Societies-They operate at the village or grass-root level.

PRIMARY FUNCTIONS:- Primary Functions of Commercial Banks includes:- (A) ACCEPTING DEPOSITS A banks accepts deposits from the public on various accounts such as (i) Savings Deposits Account: Such Deposits are accepted by the banks in order to cultivate the savings habits in the public. Primary Functions 2. Some restrictions are laid on the account holder or the depositor regarding the number of withdrawals during a given period of time. Secondary Functions 1. FUNCTIONS OF A COMMERCIAL BANK The functions of a commercial bank are broadly classified as: 1. As per the Banking Law there are no restrictions on number of withdrawals. If a depositor does so then he has to forego some interest to the bank. 22 .  All management and registration activities are managed by RCS. Bank does not give any rate of interest on such deposits rather the depositor has to pay some incidental charges to the bank for the facility availed. (iii) Current Account Deposits: This type of account is generally maintained by the Businessmen and Traders.  All banking activities are regulated by a shared arrangement between RBI and NABARD. This account carries high rate of interest. Longer the period of deposit. (ii) Fixed Deposit Account: In this type of account the money is deposited for a stipulated period of time and that money cannot be withdrawn before the expiry of that period. Bank pays interest to accountholder but it is at lower rate as compare to Fixed Deposit. higher will be the rate of interest and vice versa.

Such facility is provided by the bank that has good reputation and goodwill. a safe is given to the depositor by the bank which the depositor has to keep at home and puts his small savings in it. Bank gets its payment. Periodically this safe is taken to the bank where the amount of the safe is credited to the account holder. (iv) Recurring Deposit Account: In this account a depositor has to deposit a specified amount of money on the basis of regular installments for a fixed period of time. (iv) Discounting Bills of Exchange: Bill of exchange is a very popular credit instrument in the modern business world. Various types of advances are given by the bank are: (i) Money at call or Short Notice: As the name suggests that loan which can be called back by the bank at a very short notice of one to fourteen days is called Money at call or Short Notice. Banks also discounts such bills i. after making some deductions bank pays the amount to the bill holder. Stocks. is called as cash credit. Banks earn very low rate of interest from such loans. (iii) Overdraft: When a depositor withdraws more money than actually lying in his account then it is called as ‘overdraft’. The borrower has to pay interest on the overdrawn amount. It carries almost same rate of interest as of fixed deposit account. and Bonds etc. It is a bill which is drawn by the creditor on the debtor and the debtor accepts the bill by putting his signatures and agrees to pay the specified amount mentioned in the bill on maturity. The rate of interest is less than Saving Deposit Account. (ii) Cash Credit: The loan which is given to the borrower against current assets such as Shares. (B) ADVANCING LOANS In order to earn profit the bank advances loans to the public.e. from the debtor who accepted the bill on maturity. The borrower can withdraw money through Cheque up to a certain limit as determined by the bank. 23 . (v) Home Safe Account: Under this type of account. The depositor gets the deposited amount along with the interest on the time of maturity.

(b)GENERAL UTILITY FUNCTIONS: Certain general utility functions performed by the banks are : I. Commercial Banks also undertake some Secondary functions such as (a)AGENCY FUNCTIONS: Banks performs certain agency functions for its customers for which it charges certain commission. telephone bill. III. (vi) Long Term Loans: Bank also gives long term loans of maturity period more than one year. Some of the agency functions are I. bank also purchases and sells shares and other securities. V. SECONDARY FUNCTIONS:- In addition to Primary Functions. Banks may also pay some other bills such as electricity bills.(v) Short Term Loans: Short term loans are those loans which are given by the bank for a short period say less than one year. 24 . The interest is charged on the whole amount of the loan whether the borrower withdraws it fully or partially. Collection of Dividends on the Shares of the Customers : Banks collects dividends on the shares of the customers and credits them to the accounts of customers. Such types of loans are given to the businessmen and individuals to meet out their short term credit requirements. Payment Of Premium: The banks pays premium to the insurance companies on the behalf of its customers. Collection of Customer’s Funds: Banks collects the funds of its customers from other banks and credits them to their accounts. IV. Purchase and Sale of Shares and Securities : On the behalf of its Customers. 2. These loans are also given against some security. Transfer of Funds: By using the instrument of ‘Bank Draft’ commercial banks help their customers in transferring funds from one place to another. For this Bank charges commission from its customers. rent etc. Issuing of Traveler’sCheque: Banks also issue the traveler’sCheque or circular letter of credit to its customer so that they could avoid the botheration and risk of carrying cash during their travels. II.

With reference to the terms given to the committee. Madhava Rao. Information about Business and Collection of Statistics : Banks collects information and statistics regarding money. industry and publishes them in various journals and bulletins so that people get information about business world. K. II. Government of Andhra Pradesh to review the performance of Urban Co-operative Banks (UCBs) and to suggest necessary measures to strengthen this sector. 100 Crores and above. Ex-Chief Secretary. Safe Custody of Valuable Commodities or Locker Facility : The banks provides the locker facility to its customer so that they can keep their valuables such as gold and silver ornaments. the committee identified five broad objectives:  To preserve the co-operative character of UCBs  To protect the depositors’ interest  To reduce financial risk  To put in place strong regulatory norms at the entry level to sustain the operational efficiency of UCBs in a competitive environment and evolve measures to strengthen the existing UCB structure particularly in the context of ever increasing number of weak banks  To align urban banking sector with the other segments of banking sector in the context of application or prudential norms in to and removing the irritants of dual control regime  RBI has extended the Off-Site Surveillance System (OSS) to all non-scheduled urban co-operative banks (UCBs) having deposit size of Rs. important papers etc. trade. III. Types of Co-operative Banks 25 . RBI Policies for co-operative banks The RBI appointed a high power committee in May 1999 under the chairmanship of Shri.

The borrowing powers of the members as well as of the society are fixed. State co-operative banks The state co-operative bank is a federation of central co-operative bank and acts as a watchdog of the co-operative banking structure in the state. fodder. The funds of the society are derived from the share capital and deposits of members and loans from central co-operative banks.The co-operative banks are small-sized units which operate both in urban and non-urban centers. pesticides. loans and overdrafts from state co-operative banks and joint stocks. Regulated by the Reserve Bank of India.operative banks lend money to central co-operative banks and primary societies and not directly to the farmers. etc. 1965. They finance small borrowers in industrial and trade sectors besides professional and salary classes. The co-operative banking structure in India is divided into following 5 components: Primary Co-operative Credit Society The primary co-operative credit society is an association of borrowers and non-borrowers residing in a particular locality. They also conduct all the business of a joint stock bank. fertilizers. deposits. loans and overdrafts from the Reserve Bank of India. Central co-operative banks These are the federations of primary credit societies in a district and are of two types those having a membership of primary societies only and those having a membership of societies as well as individuals. The state co. Its funds are obtained from share capital. The loans are given to members for the purchase of cattle. The funds of the bank consist of share capital. deposits. they are governed by the Banking Regulations Act 1949 and banking laws (co-operative societies) act. Land development banks 26 . These banks provide finance to member societies within the limits of the borrowing capacity of societies.

and primary level and they meet the long term credit requirements of the farmers for developmental purposes. though not formally defined. and joint stock companies which represent the dominant form of commercial organization. localities. such societies were set up in India. Urban Co-operative Banks The term Urban Co-operative Banks (UCBs). The origins of the urban co-operative banking movement in India can be traced to the close of nineteenth century. They are governed both by the state government and Reserve Bank of India. These banks do not accept deposits from the general public. state. The sources of funds for these banks are the debentures subscribed by both central and state government. work place groups. democratic decision making. Co-operatives represented a new and alternative approach to organization as against proprietary firms. they get finance from either the district central co-operative bank to which they are affiliated or from the apex co-operative bank if they work in big cities where the apex bank has its Head Office. Functions of co-operative banks 27 . mutual help. This distinction does not hold today. Inspired by the success of the experiments related to the co. They provide credit to small scale industrialists. The state land development banks oversee. and other urban and semi-urban residents. Today. These banks. These banks were traditionally centered on communities.operative movement in Britain and the co-operative credit movement in Germany. their scope of operations has widened considerably. They essentially lend to small borrowers and businesses. They mainly rely upon deposits from members and non-members and in case of need. refers to primary co-operative banks located in urban and semi-urban areas. the supervision of land development banks has been assumed by National Bank for Agriculture and Rural development (NABARD). and open membership. till 1996. Co-operative societies are based on the principles of cooperation. Recently. salaried employees. were allowed to lend money only for non-agricultural purposes. the primary land development banks situated in the districts and tehsil areas in the state. central.The Land development banks are organized in 3 tiers namely. partnership firms.

or public sector bank under a separate act of a parliament whereas co-operative banks were established under the co-operative society’s acts of different states.) were to be governed by RBI and registration.  Only some of the sections of banking regulation act of 1949 (fully applicable to commercial banks). are applicable to co-operative banks. central / district co- operative bank at district level. management. governed by State Governments as per the provisions of respective State Acts. 1966 and within the ambit of the Reserve Bank’s supervision. interest rates etc. etc. area of operations. Large co-operative banks with paid-up share capital and reserves of Rs. The working group on industrial financing through Co-operative Banks.1 lakh were brought under the purview of the Banking Regulation Act 1949 with effect from 1st March. with state co-operative bank at apex level.  Commercial bank structure is branch banking structure whereas co-operative banks have a three tier setup. Problems of Co-operative Banks Duality of control system of co-operative banks However. and primary co-operative societies at rural level. UCB’s were extended the benefits of deposit insurance. Banking related functions (viz. In 1968.Co-operative banks also perform the basic banking functions of banking but they differ from commercial banks in the following respects  Commercial banks are joint-stock companies under the companies’ act of 1956. UCB’s came to be seen as important players in this context. This marked the beginning of an era of duality of control over these banks. resulting only in partial control by RBI of co-operative banks and  Co-operative banks function on the principle of cooperation and not entirely on commercial parameters. licensing. (1968 known as Damry Group) attempted to broaden the scope of activities of urban co-operative banks by recommending these banks 28 . concerns regarding the professionalism of urban co-operative banks gave rise to the view that they should be better regulated. audit and liquidation. Towards the late 1960s there was debate regarding the promotion of the small scale industries.

better professional standards in urban co-operative banks and sought to align the urban banking movement with commercial banks. problems and aspirations. control of sickness. some of the large banks have established their presence in many states when at their behest multi-state banking was allowed in 1985. The Hate Working Group (1981) desired better utilization of bank’s surplus funds and that the percentage of the Cash Reserve Ratio (CRR) & the Statutory Liquidity Ratio (SLR) of these banks should be brought at par with commercial banks. in a phased manner. Maharashtra. The Madhavdas Committee (1979) evaluated the role played by urban co-operative banks in greater details and drew a roadmap for their future role recommending support from RBI and Government in the establishment of such banks in backward areas and prescribing viability standards. like commercial banks but widely differ in their values and governance structures. Karnataka. A feature of the urban banking movement has been its heterogeneous character and its uneven geographical spread with most banks concentrated in the states of Gujarat. While the Marathe Committee (1992) redefined the viability norms and ushered in the era of liberalization. They are usually democratic set-ups where the board of members are democratically elected with each member entitled to one vote each. regulations and values may differ amongst nations but they have certain common features: 29 . The basic rules. banking. deposits etc.should finance the small and cottage industries. and Tamil Nadu. They are the culmination of efforts of people of same professional or other community which have common and shared interests. In India. they are supervised and controlled by the official banking authorities and thus have to abide by the banking regulations prevalent in the country. They cater to a services like loans. A cooperative bank is an institution which is owned by its members. the MadhavaRao Committee (1999) focused on consolidation. Some of these banks are also Authorized Dealers in Foreign Exchange. Cooperative Banks-Irritants and Future Trends. This was reiterated by the Banking Commission in 1969. While most banks are unit banks without any branch network.

Not all sections of banking regulation act are applicable to cooperative banks  The ultimate motive is community participation. 30 . 1965. It is said these have grown maximally in states of Gujarat. Tamil Nadu whereas the other parts of India don’t have a heightened presence.  They have a tiered network with a bank at each level of state. The state-level bank forms the apex authority. However financial regulatory control by RBI has led to many troubles as there is ambiguity in power structure as there is no clear demarcation. They greatly differ from the commercial banking entities. benefit and growth as against profit- maximization for commercial banks. They operate both in urban and rural areas under different structural organisations. 1949 and Banking Laws Cooperative Societies Act. Major irritants in the functioning of the Cooperative Banks  The duality in control by RCS of a state as ‘Cooperation’ is a state subject.  Customer-owned  Democratic structures  Profits are mainly pooled to form reserves while some amount is distributed to members  Involved in community development Foster financial inclusion by bringing banking to the doorstep of the lowest segment of society these banks are small financial institutions which are governed by regulations like Banking Regulations Act.  Patchy growth of cooperative societies across the map of India.  These are established under specific acts of cooperative societies operating in different states unlike mainstream commercial banks which are mainly joint-stock companies. Their functions are decided by the level at which they operate and the type of people they cater to. district and rural. Maharashtra.

They are involved in local development and contribute to the sustainable development of their communities.  The state partnership has led to excessive state control and interference.  Their main focus being credit so they have reduced to borrower-driven entities and majority of members are nominal and don’t enjoy voting rights. as their members and management board usually belong to the communities in which they exercise their activities. Co-operative banks are deeply rooted inside local areas and communities. They play an influential role on the economic growth in the countries in which they work in and increase the efficiency of the international financial system. By increasing banking access in areas or markets where other banks are less present . farmers in rural areas. PUNJAB STATE COOPERATIVE BANK 31 .SMEs. middle or low income households in urban areas . The government needs to have a serious look into the issues as they did not show an impressive growth in the last 100 years. There is a widening gap between the level of skills and the increasing computerization of banks. relying on the above-mentioned principles of organization.co-operative banks reduce banking exclusion and foster the economic ability of millions of people. This has eroded the autonomous characters of many of these. has proven successful both in developed and developing countries.  There is a lack of risk management systems and lack of basic standardized banking models. Their specific form of enterprise. Dormant membership has made them moribund as there is a lack of active members and lack of professional attitude. Credit recovery is weak especially in rural areas and it has sustainability crisis in some pockets.

the management of the bank. INTRODUCTION Welcome to Punjab State Cooperative Bank. mostly in rural areas of the State. In 1951 its Head Office was shifted to Jalandhar from where it moved in 1963 to its present building at Chandigarh. through democratic management and governance. 720 has a principle financing institution of the cooperative movement in Punjab. Therefore it is designed to encompass all the constituents of the banking space. Main Schemes adopted by Cooperative Banks 32 . Cooperatives have brought both the services and resources at the doorsteps of villagers in Punjab. Where banking is made easier and convenient for our customers. In the cooperative Banking structure. First of all we should know about the Cooperatives in Indian Economy. Cooperative principles ensure harmonious development. Experience a whole new Era of Banking Technology. cost effective and quality banking services of customer & PACs The Punjab State Cooperative Bank was established on 31st August. There are 20 District Central Cooperative Banks having 808 branches/extension counters all over Punjab. Cooperatives have played a vital role in improving the economic conditions of farmers and accelerating the pace of development in Punjab. sugar production and dairy etc. Promotion and sustenance of economic interest & providing easy finance. housing. 1949 at Shimla vide registration No. The Punjab State Cooperative Bank provides you with the New Generation banking architecture to progress in the future in an evolutionary manner. Punjab State Cooperative Bank (PSCB) is customer centric. the employees of the bank and the customers of the bank. These have been enthusiastically serving the people of Punjab in areas such as agriculture. the position of the Punjab State Cooperative Bank is extremely important as the whole credit system revolves around it. It has 19 branches and 3 extension counter in Chandigarh.

Administrative efficiency and structural reforms.  To provide Buy Back facility for decreed property.  To encourage and assist genuine defaulters. Values & Principles:- A cooperative is a system constituted voluntarily to meet the common economic. social and cultural needs and aspirations of the members through a jointly-owned and democratically controlled enterprise. racial .  Reduction in cost and time for recovery. loans and RCC loans.  Short term loans converted into medium term loan due to natural calamities. Opportunity to the borrower defaulters in ST Agri. political and religious discrimination.  Members/Ex-employees involved in embezzlements.  Democratic member Control : 33 .  To facilitate mutually accepted reconciliation and settlement of dormant loan accounts.  Voluntary and open membership Cooperatives are voluntary organizations. without social .  Members whose land has been purchased. Mission:- Punjab Cooperatives resolve for Greater self-reliance.  Opportunity to clear Non Performing Assets (NPA). open to all persons who are able to use their services and willing to accept the responsibilities of membership.  Interest upto principal amount is to be reversed.  Opportunity to the borrower defaulters for more than five years to clear.

they do so on terms that ensure democratic control by their embers and maintain their cooperatives autonomy. Regional and International structures.Cooperatives are democratic organisations controlled by their members .  Education. on Capital Subscribed as a condition of membership. Managers and employees so that they can contribute effectively to the development of their cooperatives. Training and Information: Cooperatives provide Education and Training to their members. Members usually receive limited compensation. If they enter into agreements with other organisations.  Concern for Community Cooperatives work for the sustainable development of the community through policies approved by their members. the capital of their cooper-ative.Developing their cooperatives possibly by setting up reserves. or raise capital from external sources. who actively participate in setting their policies and making decisions . if any. self-help organisations controlled by their members . 34 .  Members' Economic Participation : Members contribute equitably to. including Governments.Members allocate surpluses for any or all of the following purposes :: 1. National.  Cooperation among Cooperatives : Cooperatives serve their members most effectively and strengthen the cooperatives movement by working together through Local. part of which at least would be indivisible 2. Their motto is to make the progress line go higher and higher.Benefiting the members in proportion to their transaction with the cooperative and supporting other activities approved by the members  Autonomy and Independence: Cooperatives are autonomous . That capital is usually the common property of the cooperatives. Men and women serving as elected representatives are accountable to the members.

whereas remaining was provided for socio-economic needs. It has helped the farmers in the purchase of production inputs. Limits worth Rs 2192. The scheme envisages to provide Cash credit limit to the farmers against the mortgage of their land for all credit requirements of the farmers.1999 in the country. Under this scheme.  The rate of interest on credit facility under the scheme is also low. 1 lakh.  The scheme has covered medium.06. A cash credit limit of Rs. The scheme has benefited the under privileged rural masses.1000/. 35 .or more is provided Personal Accidental Insurance cover for Rs. particularly those who have no access to the insurance companies. 1.  Revolving cash credit has supplemented inadequate availability of production credits besides creating provisions for consumption credit. every depositor who opens a Saving Bank Account with Rs. farm investments. its role is complementary to the institutions credit available to farmers from different sources. 6.00 lac is provided to the farmers for fulfilling their socio-economic liabilities. large farmers small and marginal farmers as well. It aims at freeing them from the clutches of traditional money lenders. Therefore.Revolving Cash Credit In 1998.00 lac per acre subject to the maximum of Rs. 01.03 crore has been sanctioned to 152207 farmers in the state since inception of the scheme.f.  The recovery under the scheme has been excellent and more than 70% of the credit availed under the scheme has been spent for productive purposes. So far. the cooperative banks launched a new scheme of revolving cash credit for the farmers. SehkariBimaYojna The Cooperative Banks in Punjab are pioneers of starting the SehkariBimaYojnaw.  Nabard is providing refinance facility for the scheme.e. at a very nominal premium. Key Observations  The Revolving cash credit scheme has proved beneficial to the farmers its contribution has been multi directional. during the period he keep s the account with the bank. consumptions and social requirements and reduced their dependence on high interest loans.

with cheque book.Loans Cooperative banks also provide Loans.1000/.is required without cheque books and Rs.500/.50% A minimum amount of Rs. The various types of loans are as follow: Personal Loan Consumer Durable Loan Urban Housing Loan Scheme Non Farm Sector Loan Rural Housing Loan Scheme Mini Dairy Loan Scheme Vehicle Loan Scheme Two Wheeler Loan to farmers Second hand vehicle loan scheme Education loan scheme New schemes launched by the Bank 1) Loan against property 2) Loan scheme for earnest money 3) Loan against rental income scheme 4) Commercial Dairy Development scheme 5) Dairy Loan Scheme for purchase of a cow INTEREST RATES Savings: 3. 36 .

50% 6.25% 2 Years to < 5 Years 7.50% 3.25% 6.25% 6.25% 6.25% 5Years and above 7.50% 3.50% 2.f.09) 7 days to 14 days 3.00% 3.1000/.05.07.f.25% 46 days to 90 days 4.00% 6.00 Crore& Above 19.25% 3.09) Coop.25% Fixed Deposits Chart Interest rate @ 0. 1. Future Planning :- Cooperative Credit Policy The Cooperative Credit Institutions are distinctively structured to provide for short-term and long-term credit needs of the farmers in the State.50% above these rates to the Senior citizen will be admissible on single Fixed deposit Receipt of Rs.25% 91 days to 179 days 5.25% 180 days to < 1year 6.e.e.00% 1.50% 4.and above . The Punjab State Cooperative Bank 37 . Revised rate of Interest For Branches of Punjab State Cooperative For Central Period Bank (w.25% 4. 1.50% 5.25% 6. 5000/. Below Rs.25% 1 Year to < 2Years 7. All other terms and conditions will be remain the same. Fixed Deposits A minimum amount of Rs. Banks(w.50% 5.75% 15 days to 45 days 3.is required to open the account.00 Crore Rs. 23.

The Banks envisage following scenario as a result of liberalised agricultural policy :  Liberalisation of agricultural policy would result in greater capital intensity and borrowed capital requirements of agriculturists. The Cooperative Banks of Punjab have accepted the reforms in Indian economy. Such as small business enterprises. In order to induce diversification and produce quality products for international market. Since these Banks have mainly been providing credit to agriculture sector. As a result. timely.(PSCB) and its constituent 20 Central Cooperative Banks (CCBs) and 4000 Primary Agricultural Cooperative Service Societies (PACS) direct and deliver short-term production credit to the farmers.  Liberalised agricultural economy would lead to a greater role of private research and development institutions in improving the productivity and quality of agricultural operations. the financial reforms in right spirit. Cooperatives are not unaffected by structural adjustments and globalisation of commodity market. Cooperative Banks are required to redesign their strategies for sustainability and growth. These institutions are committed to promote and sustain economic interests of their members and customers in keeping with the principals of self-help. These reforms aim at liberalisation and deregulation of Indian economy. They facilitate development of their members by providing easy.  Liberalised agricultural policy would reverse the process of fragmentation of land holdings and would result in exodus of employment opportunities from agricultural sector to other sectors of economy. cost-effective and quality services. especially.  Liberalisation of agriculture would professionalise and modernise agriculture. self-responsibility and self-administration. changes in agricultural economy affect them more closely. thereby earning a status of industry attracting high skilled professionals in agriculture sector. The Punjab State Cooperative Agricultural Development Bank (PSADB) and its constituent 84 Primary Cooperative Agricultural Development Banks (PADBs) cater to long term credit needs of the farmer. 38 . services and industrial sector. seeds and agro-inputs. Punjab farmers would need greater credit support for improved technology. For this purpose. The economic reforms initiated by the government of India in 1991 have affected the Financial Institutions including the Cooperative Financial Institutions.

They would endeavour to provide for short-term and long term requirements of the farmers.  The Cooperative Banks would give greater thrust on processes and initiatives aimed at improvement in quality of agricultural produce and products by giving liberal finance for technology introduction and up-gradation and for procuring high quality agro.  Theliberalised agricultural economy would lead to sowing/planting of new crops. Therefore. Cash Credit Scheme would be pursued for Primary Milk Producer’s Cooperative Societies to encourage quality milk production in the State. which do not encourage and increase indebtedness amongst the farmers. commercial dairies. cattle breeding and marketing infrastructure. They would finance and support agri-business. through specifically targeted schemes and projects. needs to be restructured. the Cooperative Banks in the State resolve to pursue credit policy in keeping with the following. The Cooperative Banks would act as catalyst to bring about and sustain diversification in agricultural sector in keeping with the liberalised economy. the Cooperative Credit Policy. agro-processing and farm equipments industry to supplement and complement farmers sources of income. inputs. vegetables and fruits and long term loans for warehousing. ensuring to make agriculture a multi-functional occupation. Greater thrust would be given on short-term loans for cultivation of sugarcane. farm machinery like tractors and other agricultural implements at the level of 39 . sunflower. Accordingly. Credit provisioning and interest rates would be restructured induce diversification of agriculture.  Theliberalised agricultural policy would bring greater thrust on export of raw and value added agro-products.  The Cooperative Banks would encourage creation of common assets like storage facilities. Cooperative The Cooperative would continue to sustain agricultural production in changing scenario of agriculture in the State. Theliberalised agricultural policy would result in greater thrust on value addition in agriculture. a great deal of thrust would be on agro-processing units. With this perspective. both for short-term and long term requirements of the farmers. The Cooperative Banks would continue to be farmer driven. Leading to a great deal of crop diversification.

Schemes. Schematic Loans Schematic Loans covers Fundamentals and Diversified Schemes. Camelcart. Jhota Cart. Fundamental Schemes are All minor irrigation schemes. Schematic loans also covers cash credit.C. particular for rural population in the State. Sheep Rearing.  The Cooperative Banks would forge inter-se linkages in financing the Projects. Non-Farm Sector Loans The Non-Farm Sector Loans are divided into 2 categories such as: Manufacturing. B/Cart. Mushroom and Poplar Schemes. Bio Gas Plant.e. especially for those rendered surplus in rural and semi-urban areas due to liberalised agriculture policy Gainful self employment activities and small businesses would be promoted by providing cheap. Rabbit Rearing.INTRODUCTION The Cooperative finance in the erstwhile State of Patiala was made available by a State owned bank viz. Rural housing and Kisan Credit Card Schemes. Cooperative Marketing-cum-Processing Societies and PACS so as to reduce debt burden and input costs of the farmers. Fish Farm. With taking over the assets and liabilities of the then Patiala Cooperative Union. Soil Conservation schemes. Land levelling schemes. assembling. No activity of trading under non farm sector is allowed to be financed by the PADBs. service activities. easy and adequate credit. PATIALA 1 . requiring long-term capital investment and short term working capital. U. public carrier.  The Cooperative Banks would pursue with renewed vigour lending in non-farm sector of economy. Piggery.  The Cooperative Banks would provide medium and short-term finance for promotion of housing. processing. Special schemes and products would be launched for low income groups including small and marginal farmers. All Horticulture. Tractor Schemes and Thresher Schemes. the Patiala Central Cooperative 40 . Goat Rearing. the Patiala State Bank (now State Bank of Patiala). Diversified Schemes are Diary. Bee keeping. Small Road Transport Operator under the following conditions: (a) This transport only be for carriage of goods of gross vehicle weight (c) It must be registered as carriage of goods purposes i. THE PATIALA CENTRAL CO-OPERATIVE BANK LTD. Farm Forestry. Poultary.G. PSADB/PADBs would provide for long-term capital finance which would be supplemented by short- term working capital finance by PSCB/CCBs.

Bank Ltd., Patiala was registered on 28/09/1949 under the Cooperative Societies Act, 1912.
The Bank is presently serving in its 65 year.

2. Constitution and Management

The Bank is managed by the Board of Directors (9 elected by the members Cooperative
Societies and 3 nominated by the Govt. being member of the Bank having contributed an
amount of Rs.70.00 lacs as share capital).

3. Branches

Apart from its Head Office at Patiala, the Bank has a network of its 42 branches spread all
over the district. 16 out of the 42 branches of the Bank, are working at the Focal Points a
scheme started by the Govt. of Punjab in the year of 1978.

Membership

As per the Bye –laws of the bank , the Coop. Societies in the area of operation of this bank is
whole Distt. Patiala can become of the bank .Membership of the bank as on on date 506.

Elected Status of Board of Management: Board.

Sr.No Designation Name Telephone Number

1 Chairman Sh Ram Singh Jogipur

2 Managing Director Sh. Harinderpal Singh Chandumajra 9814361261

3 Distt. Manager ShGurbaz Sing 9417018547

Board of Director:-

The Management of the bank vests with Board of Director consisted on dated

List of Board of Directors as under:-

Sr.No Name of Director Designation Mobile No

41

1 S. Ram Singh Jogipur Chairman 9815021703

2 S.Harinderpal Singh Chandumazra Managing Director 9915198355

3 S. Nardev Singh Akri Vice Chairman 9872733128

4 S. Pritpal Singh Bhinder Director 9417446853

5 S. Jarnail Singh Kartarpur Director 9780032206

6 S. Gian Singh Mungo Director 9855800055

7 S. Mohinder Singh Panjeta Director 9855343522

8 S. Gurpiar Singh Patran Director 9463054415

9 S. Gulab Singh Balamgarh Director 9814300825

10 Deputy Registrar Coop Soc;s Govt.Nominee 0172235533

11 DDM NABARD Patiala Sep.Invatee 9779865253

12 Distt.Manager Nominee PSCB CHD 9417018547

4. Business Turn Over

The business turn - over of the Bank for the year 2012-13 was Rs.1350047.93 lacs.

5. Resources

The Bank raises its resources with the collection of

42

31/03/2011 31/03/2012 31/03/2013

Share Capital 1520.15 1668.22 1842.94

Owned Funds 6472.34 7076.14 8104.40

Deposits 38818.10 39973.69 43726.71

Borrowings 57042.65 66276.48 71154.89

6. Deposits

There are various schemes of deposits namely

* Current Deposits

* Savings Bank Deposits

* Fixed Deposits

* Recurring Deposits

7. Advances

The Bank advances both in farm and non-farm-sector. Total loans outstanding as on
31/03/2012 stood at Rs.96191.24 lacs and as on 31/03/2013 is Rs.105671.04 lacs.

Staff Strength

S.No Name of Post Sanctioned Working Vacant

43

7 8 Clerk 121 60 61 9 Driver 5 3 2 10 Dafatri 1 1 - 11 Peon 106 30 76 12 Sweeper/Mali 2 .Manager 55 50 5 6 Accountant 39 20 19 7 Steno-typist 7 . Per employee Business 710.87. There are 248 Groups financed by the Bank.53 lacs Loan outstanding against them as on 31/03/2013. 1 1 - 5 Asstt.47 2890. 2 Total 366 179 187 Per Branch and Per Employee Business 31/03/11 31/03/12 31/03/13 1.02 771.28 3180.50 Farmers Club There are 25 Farmers Clubs working in this District adopted by this Bank out of which 17 farmers clubs are newly framed. 1 District Manager 1 1 - 2 Senior Manager 9 2 7 3 Manager 12 11 8 4 Supdt. All branches of the Bank are computerized under CBS. Per Branch Business 2691. an amount of Rs.94 727.68 2. 44 . Self Help group There are 2171 Self Help Groups formed in the District out of which 475 Groups are associated with this Bank.

- 0175-5000271. In fact.5000270 Meaning of services The world economy nowadays is increasingly characterized as a service economy. services now increasingly represent an integral part of the product and this interconnectedness of goods and services is represented on a goods-services continuum. the growth of the service sector has long been considered as indicative of a country’s economic progress. This shift has also brought about a change in the definition of goods and services themselves. This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries. Mall Road. Patiala Phone No.Address The Patiala Central Cooperative Bank Ltd. Economic history tells us that all developing nations have invariably experienced a shift from agriculture to industry and then to the service sector as the main stay of the economy. Rather. No longer are goods considered separate from services. 45 .

“Activities. tasted or smelt. each service offering is unique and cannot be exactly repeated even by the same service provider. the same is not true of the service rendered by the same counter staff consecutively to two customers. a takeaway burger which the customer may consume even after a few hours of purchase. 46 . At the most he may decide not to visit that particular barber in the future. However it adds 3 more P’s which are required for optimum service delivery. Moreover. Eg: the barber is necessarily a part of the service of a haircut that he is delivering to his customer. benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods. Heterogeneity/Variability: Given the very nature of services. However. While products can be mass produced and be homogenous the same is not true of services. Perishability: Services cannot be stored. the service marketing mix assumes the service as a product itself. Also. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer. 2. This is most defining feature of a service and that which primarily differentiates it from a product. it is very difficult to separate a service from the service provider. 1. Hence services cannot be touched. held.The American Marketing Association defines services as . saved. The service marketing mix consists of 7 P’s as compared to the 4 P’s of a product marketing mix. Service Marketing Mix The service marketing mix is also known as an extended marketing mix and is an integral part of a service blueprint design. it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering. eg: All burgers of a particular flavor at McDonalds are almost identical.” The defining characteristics of a service are: Intangibility: Services are intangible and do not have a physical existence. 3. Inseparability/Simultaneity of production and consumption: This refers to the fact that services are generated and consumed within the same time frame. Eg: a haircut is delivered to and consumed by a customer simultaneously unlike. returned or resold once they have been used. eg: A customer dissatisfied with the services of a barber cannot return the service of the haircut that was rendered to him. Simply said. say.

Tourism industry or the education industry can be an excellent example. perishable and cannot beowned. Generally service blue printing is done to define the service product. Let us discuss the same in further detail. At the same time service products are heterogenous. Place . If you were a restaurant owner. Thus banks. The extended service marketing mix places 3 further P’s which include People. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. you can price people only for the food you are serving. material cost and 47 . All of these factors are necessary for optimum service delivery. Generally service pricing involves taking into consideration labor. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area. You will find a lot of banks and telecom companies promoting themselves rigorously. Like physical products such as a soap or a detergent. Promotions and Placement. Process and Physical evidence. Promotion – Promotions have become a critical factor in the service marketing mix.The product marketing mix consists of the 4 P’s which are Product. Pricing – Pricing in case of services is rather more difficult than in case of products. But then who will pay for the nice ambience you have built up for your customers? Who will pay for the band you have for music? Thus these elements have to be taken into consideration while costing. Pricing.Place in case of services determine where is the service product going to be located. A place where there is minimum traffic is a wrong location to start a petrol pump. The service product thus has to be designed with care. The best place to open up a petrol pump is on the highway or in the city. For example – a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be. These are discussed in my article on product marketing mix – the 4 P’s. Product – The product in service marketing mix is intangible in nature. IT companies. and dotcoms place themselves above the rest by advertising or promotions. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. service products cannot be measured.

Take an example of a restaurant which has only chairs and tables and good food. Thus physical evidence acts as a differentiator Service quality 48 . Which one will you prefer? The one with the nice ambience. Imagine a private hospital and a government hospital. wherein before establishing the service. Lets take the example of two very good companies – Mcdonalds and Fedex. Here on we start towards the extended service marketing mix. A private hospital will have plush offices and well dressed staff. the company defines exactly what should be the process of the service product reaching the end customer. You can also read about pricing strategies. If you are into banking. In case of service marketing. That’s physical evidence. nice music along with good seating arrangement and this also serves good food. or a restaurant which has ambient lighting. people can make or break an organization. the demand of these services is such that they have to deliver optimally without a loss in quality. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes. If you have a restaurant. As said before. If you have an IT company. physical evidence is used as a differentiator in service marketing. to create a better customer experience tangible elements are also delivered with the service. However. People – People is one of the elements of service marketing mix. Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staff is better than the rest. People define a service. By adding a profit mark up you get your final service pricing. It is also a critical component in the service blueprint. Definitely a USP in case of services. services are intangible in nature. Thus the process of a service company in delivering its product is of utmost importance. On top of it. your software engineers define you. Same cannot be said for a government hospital. employees in your branch and their behavior towards customers defines you. Process – Service process is the way in which a service is delivered to the end customer. Several times. your chef and service staff defines you.overhead costs. Physical Evidence – The last element in the service marketing mix is a very important element.

changes can be brought about in the service delivery processes. customer satisfaction is an indirect measure of service quality. Improved service quality may increase economic competitiveness. During primary processes. On the other hand. The most important and most used method with which to measure subjective elements of service quality is the Seroquel method Objective processes may be subdivided into primary processes and secondary processes. changes can be brought about in the design of service products and facilities. in incidents (assessed in Critical Incident Theory) and in problems (assessed byFrequenzRelevanz Analyze a German term. moving the line of visibility and the line of accessibility. In secondary processes. an improvement in service design and delivery helps achieve higher levels of service quality. identifying problems quickly and systematically. A business with high service quality will meet customer needs whilst remaining economically competitive.Service quality is a comparison of expectations with performance. Measuring service quality Measuring service quality may involve both subjective and objective processes. Approaches to the improvement of service quality In general. and blueprinting. Various techniques can be used to make changes such as: Quality function deployment (QFD). silent customers create test episodes of service or the service episodes of normal customers are observed. quantifiable factors such as numbers of customer complaints or numbers of returned goods are analyzed in order to make inferences about service quality. In both cases. in service delivery. establishing valid and reliable service performance measures and measuring customer satisfaction and other performance outcomes. However. Approaches to improve the conformity of service quality 49 . failsafing. For example. in service design. Subjective processes can be assessed in characteristics (assessed be the SERVQUAL method). This aim may be achieved by understanding and improving operational processes. the environment in which the service delivery takes place and improvements in the interaction processes between customers and service providers. it is often some aspect of customer satisfaction which is being assessed.

like the bill after a meal. • Keep things short and sweet — almost no one likes filling out long. scatter plots. Recovering. service delivery happening as designed. Mystery Shopping. The more simple and to-the-point your survey is. Perhaps the most simple. Setting standards and measuring. 50 . surveys are given at the end of the consumer's experience (such as after dinner or as they are checking out of a hotel). Some of these includeGuaranteeing. One easy way to do this is with a survey — a list of questions about their experience. Thus. Part 1 of 3: Getting Customer Feedback 1. so it's easy to express conclusions from the data in the form of graphs. etc. gathering customer feedback and using it to measure service quality should be a significant part of nearly any business's game plan. direct way to get feedback from your customers is simply to ask for it. 1 Use surveys. Businesses that make a habit of meeting these expectations can enjoy consistent business and a loyal customer base. the more likely people are to fill it out. various methods are available. the receipt for a store purchase. detailed surveys. Surveys with multiple-choice questions are especially useful for businesses because answers to these sorts of questions can easily be quantified. However. You may want to include a survey with the documentation that completes the transaction. Quality of service can be a major factor when customers decide which business to use to solve their needs. that is. Customers have certain expectations about the level of satisfaction they'll get from businesses they patronize. and so on. • Usually. Statistical process control and Customer involvement How to Measure Service Quality Three Parts :Getting Customer Feedback Evaluating Your Business Improving Your Business’s Service Providing high-quality service is a major concern for nearly any business.In order to ensure and increase the 'conformance quality' of services. it's difficult to improve your quality of service if you don't have any input from your customers about how to improve.

• Usability tests can give extremely valuable data about how to improve a product or service. One way to offset this somewhat is to use less obtrusive ways of contacting your customers. like email. Another common way that businesses get feedback from their customers is by contacting them after the service has been completed. Follow up with customers after service. Today. "word of mouth" doesn't refer only to the conversations people have with each other in person — the rise of social media in the past decade has made it easy for people to discuss their likes and dislikes online. Note. one disadvantage of this type of feedback is that it can be seed as rude or cloying. social media. however. for instance. This is usually done by using the contact info provided by the customer as part of receiving their service — you may have participated in this form of feedback if you've ever gotten a follow-up call from your cable company after having a receiver installed. Offer usability tests. Typically. on the other hand. if a family receives a follow-up call during their nightly dinner. use your business's own recording equipment . a few participants are given samples of your product or service while observers watch and take notes. and. that electronic methods have been shown to favor data from different demographic groups than phone surveys. during your business hours. if you're testing the quality of your new cloud-based writing platform and you notice that most of your participants have a hard time changing the font size. This form of feedback has the advantage of giving customers some time to use your business's service before asking for their opinion. this may negatively affect their view of your business. The two customer feedback examples above have both involved gathering service quality data from customers after they've used your business.Renting these things can become very expensive. Take the comments made about your business on social media seriously — though the standards for 51 . this can be a sign that the product or service has design issues. in a usability test. For instance. • To keep the cost of usability tests low. make the most of the resources at your disposal — conduct the tests in your offices. The participants are usually asked to complete specific tasks or problems with the product or service — if they can't complete them. Monitor your social media presence. offer the ability to get feedback from your customers during their use of your product or services. you'll know that this option should be made more intuitive during the final release. and other electronic modes of communication. • Unfortunately. For instance. if possible. Usability tests.

people are somewhat more likely to be honest online. Yelp. but also to promote your business and notify your customer base of upcoming events. where they have a degree of anonymity. Incentivize the feedback process. how long they stay on each page. One way to do this is simply to pay customers to give you detailed feedback or participate in tests. it's possible to draw valuable conclusions about the quality of your online service. • For example. it can have a major effect on a business — in one recent study. If your business does some or all of its operations online. you're much more likely to get feedback from customers if you make it worth their while. get to work on making one right away. let's say that you operate a company that lets users pay to watch DIY car repair videos made by expert mechanics. Below are just a few sample ideas: • Offer discounts or preferred status to participating customers • Enroll participating customers in a drawing or contest for a prize • Give gift cards or store credit • Give out free merchandise Use analytics data for online business. Thus. Customers are human beings with plenty of their own commitments. you can still incentivize your customers to give you good feedback if you're willing to get creative. you discover that 90% of visitors make it to the pricing information page 52 .online communication aren't particularly high.000 in revenue per year. so their time and effort are valuable. If you can't spare the cash for this. than they are in person. Not only is this a way to start monitoring your social media "footprint". and other browsing habits. you can use the power of web analytics to draw conclusions about the quality of service on your website. small businesses reported that a strong Yelp presence helped them achieve an additional $8. • If your business doesn't already have an account on at least one major social media site (like Facebook. By monitoring which pages your customers view. • One site in particular that you'll want to have a presence on is Yelp. Since Yelp is a very widely-used repository of reviews and testimonials. Using an analytics tool that lets you monitor the traffic to each page. or Twitter).

If your business has a reputation for taking its customers' problems seriously. • Note. however. All that's necessary is to take the extra time and effort to reach out to customers that contact you with comments about your service quality. You may not be able to prevent every customer from leaving your business unsatisfied.but only 5% go on to select one of the service options. that using a third party to handle your customer service can sometimes make it appear as if your business doesn't consider customers' opinions important enough to deal with directly. and Click Tale (paid). • One easy way for small and large businesses alike to do this is to respond to your customers' comments and concerns on social media. you can make the best of a bad situation and maybe even win the customer's business back. third party solutions can be huge time-savers and efficiency-boosters. try enlisting the services of a high-quality customer service firm. Clicky (requires registration). but if you respond to an angry review on social media graciously and professionally. it's important to remember thatit doesn't have to handle this task on its own. Show customers that their feedback matters. Mint (paid). If you simply don't have the time or resources to effectively gather customer feedback. "human" image to consumers. Because of this. Ask yourself this question: if you were an average consumer. it's extra important to present an empathetic. who would you be more likely to spend time sending a detailed. Open Web Analytics (free). for instance. 53 . If your business is really struggling with measuring its service quality. faceless organization to whom you don't matter. well- written service quality review to: a massive. when outsourcing your customer service needs. For businesses with room in their budget for outsourcing. The best firms will take your business's unique mission into account while handling your customer feedback needs and keeping you up-to-speed on any problems. you'll find that you get more (and better) feedback without having to make any other changes. or a business run by human beings that takes the time to respond to its customer's needs? The answer should be obvious. where they're most visible to other customers. • Just a few popular web analytics tools include. This may be a sign that your pricing scheme isn't competitive — perhaps lowering your prices may get you a more favorable sales rate. Google Analytics (free). Outsource your feedback needs to a competent third party.

Customers like getting the same satisfactory result every time they use a business's products or services. focus on asking questions like the following: • Did the consumer feel the company and/or employee(s) cared about the people they were working with? • Did the customer feel they received individualized attention? • Did the company project a friendly. more complicated surveys). To measure this quality in surveys and so on. In addition. High service quality in the short-term doesn't mean much if it can't be sustained in the long-term. part branding. Measure the quality of the customer’s point of contact. Reliability is the reason that huge- multinationals like McDonalds are able to attract customers everywhere. it's important to focus on the very most important metrics (since customers are less likely to complete longer. to judge the consistency of your service.Part 2 of 3: Evaluating Your Business 1. and (especially) part service quality. Thus. it's vital to convey the idea that your business cares about its customers. welcoming atmosphere? Measure the reliability of the company. There isn't one single way to do this — the solution to this problem is part marketing. research has shown that reliability is generally considered the most important aspect of good service by customers. you can determine whether your business's interactions with your customers are satisfactory. One of the most important details of all to focus on is the quality of the customer's point of contact. If your business deals directly with consumers (as opposed to other businesses). By examining the interaction between customers and your representatives. Consistency is a hugely important aspect of high-quality service — in fact. Try to ask questions like the following: • Which employee(s) provided your service? • Did the employee(s) providing the service appear to be knowledgeable? • Were they courteous to customers as well as other staff? • Did they convey a sense of confidence and trust? Measure the empathy of the company as a whole. When you're designing a survey or another method of measuring your business's service quality. this line of questioning can help you "weed out" problem employees with bad attitudes. ask questions like the following: 54 .

tangible aspects of your business in good order is an important aspect of providing high-quality service. Pinpoint flaws in your business's operations by asking questions like the following: • Was all equipment functioning properly? • Was the appearance of the product or business clean and satisfactory? • Was the appearance of the employee(s) professional? • Were all communications clear and professional? Part 3 of 3: Improving Your Business’s Service 55 . polite. Measuring your company's responsiveness can help you determine whether to devote more resources to creating a positive experien ce for your customer by training your employees to be more effective. hiring new personnel. Though it's probably obvious.• Did the employee or company perform the service accurately? • Did the customer feel the company or employee would be able to dependably continue to perform the service in the future? • Would the customer use the company's services again in the future? • If this is not the customer's first time using the company's services. and willing to satisfy them. promptest. how did their most recent experience compare to past ones? Measure the responsiveness of the company. Keeping the physical. it definitely bears mentioning that customers nearly everywhere prefer interacting with companies that are kind. most accommodating employees can't give high-quality service if they don't have the equipment to do their job or the actual physical environment of the business is unsatisfactory. and/or using different strategies for dealing with customers. Even the happiest. prompt. Try focusing on questions like the following: • How willing and able was the employee able to respond to the customer's needs? • How quickly was service provided? • Did the employee seem happy to offer additional service? Measure the tangible aspects of the customer's experience.

Additional requirements may vary. Most importantly. like vacation time. the simplest service rules are the most effective ones. helpful attitude. For example. Employees who can see the benefit of long- term employment at their current job are likely to put in the extra time and effort to give your customers exceptional service.1. be willing to offer better compensation than your competitors. with them. This means a reasonable. and quick. good service is the norm. Compete for employee talent. With a smart 56 . • Often. Give your employees defined standards for service. Incentive good service means offering employees tangible rewards for meeting or exceeding the level of service that you want. • One sound policy for attracting good employees (and improving the loyalty of existing employees) is to offer the members of your staff a “career”. Advertise job openings in online and print classified ads. so it's up to you and your business's management to clearly communicate your goals to your employees. For most businesses. Without skilled. a willingness to please the customer. What's one great way of getting excellent service quality out of your employees? Making it worth their while. other benefits. these rewards are in the form of money. hunt them down and be willing to make them persuasive offers when you find them. but in some cases. motivated employees. and quickness) and makes it very clear what type of service is expected." This simple directive outlines the most important qualities of the business's service (quality. a large US fast food pizza chain. Employees should know exactly what's expected of them when they interact with customers and deliver your business's services. Keep in touch with your network of business contacts and notify them when you're looking to hire. professional service. promotion. Little Caesars. friendliness. it's nearly impossible to consistently deliver good-quality service. but some amount of direction is vital for sensitive areas like customer service. consistent level of pay with competitive benefits and (most importantly) the possibility for promotion with hard work. awards. Often. this will include a friendly. rather than a job. and so on can work well. don't wait for them to come for you — instead. Offer your employees incentives for good service. If you want the absolute best employees for your business. Represent your company at career fairs. gives its employees the simple goal of providing every customer with "a perfect pizza and a smile in 30 seconds or less. Employees' work can be hindered if they're given countless pointless rules to follow. Perhaps the most important resource a company can have is its employees.

consider dedicating resources to the task of monitoring your company's online "profile" (or even hiring new staff or interns to do this) Make it easy for customers to complain and receive responses. 57 . This model works out well for both the salesmen and the dealership: salesmen will naturally work hard to make sales so that they can earn as much money as possible. increasing the number of cars the dealership sells. continuous part of your business operations.Consider adopting a few of the following strategies the next time you're setting your business's upcoming schedule: • Hold semi-regular service quality meetings with your management staff • Conduct regular employee reviews with an eye for improving service • Occasionally review your business's training regimen for new employees • If necessary. it's becomes the employee's best interest to provide good service because this will give them the greatest reward. most car dealerships pay their salesmen on a commission-based model — that is. it should be a major. Make a point to constantly solicit feedback from your customers. car salesmen keep a percentage of the profits from the sale of car. Measuring your business's service quality shouldn't be a one-time task. Make tracking your service an ongoing part of your business plan. This can be as simple as keeping comment cards next to your cash register or as complicated as developing an online database to organize and store all customer service requests — it's up to you to decide what's reasonable for your business. • For example. Businesses that want to improve their service quality can't be afraid to "face the music". the best judge of customer service is (obviously) the customer.reward-based system set up. If you want to keep your service quality high as new problems arise. Smart businesses make it easy for their customers to tell them what they're doing wrong — after all.

and retailers). reason. • The psychology of how the consumer is influenced by his or her environment (e. and select between different alternatives (e. products. • Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. 58 . CONSUMER BEHAVIOR: THE PSYCHOLOGY OF MARKETING Introduction The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how • The psychology of how consumers think. • The behavior of consumers while shopping or making other marketing decisions. family. culture. signs..g. brands. feel.g.. media).

motor oil being sent into sewage systems to save the recycling fee. or aggressive marketing of easy credit. because this may influence how a product is best positioned or how we can encourage increased consumption. aggressive marketing of high fat foods. or organizations and the processes they use to select. use. Since many environmental problems result from product disposal (e. One "official" definition of consumer behavior is "The study of individuals.. and dispose of products. we learn that 59 . to the rest of the population. Product use is often of great interest to the marketer. For example. or garbage piling up at landfills) this is also an area of interest. by understanding that consumers are more receptive to food advertising when they are hungry. friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). for making better marketing campaigns. • The impact of consumer behavior on society is also of relevance.g. it brings up some useful points: • Behavior occurs either for the individual. experiences. and • How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. services. • Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. or in the context of a group (e. By understanding that new products are usually initially adopted by a few consumers and only spread later.. or ideas to satisfy needs and the impacts that these processes have on the consumer and society.• How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer..e. may have serious repercussions for the national health and economy. • Consumer behavior involves services and ideas as well as tangible products. we learn to schedule snack advertisements late in the afternoon.g. There are four main applications of consumer behavior: • The most obvious is for marketing strategy—i." Although it is not necessary to memorize this definition. and then only gradually. For example. groups. secure.

Finally. a growing segment. went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. is likely to consider repositioning toward our market. Dr. in this case. however. To assess a competing firm’s potential threat. that we make a product aimed at older consumers. obviously. • Social marketing involves getting ideas across to consumers rather than selling something. In other words. that if you buy a 64 liquid ounce bottle of laundry detergent. However. was deemed to be infeasible. Marty Fishbein. For example. you often pay a size premium by buying the larger quantity. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. A competing firm that targets babies. This. In practice. although we may have developed a product that offers great appeal for consumers.(1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers. would be if we could get illegal drug users to stop. Our main thrust in this course is the consumer. There are several units in the market that can be analyzed. awareness of its brands) against pressures it faces from the market.. Common sense suggests. market knowledge. since they will in turn influence many subsequent customers’ brand choices. however. we need to assess conditions (the marketing environment). • As a final benefit. a shrinking market. using knowledge of consumer attitudes. a goal that was believed to be more realistic. studying consumer behavior should make us better consumers. for example. technology.g. As a result. you should pay less per ounce than if you bought two 32 ounce bottles. a marketing professor. knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. we will also need to analyze our own firm’s strengths and weaknesses and those of competing firms. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. The best solution. Consumer Research Methods 60 . patents. a recession may cut demand dramatically. we need to examine its assets (e. Suppose. for example.

g. Surveys are useful for getting a great deal of specific information.. Several tools are available to the market researcher—e.. For example. Surveys can contain open- ended questions (e. Government. Primaryresearch. There are two main approaches to marketing. is research that you design and conduct yourself. sample sizes of over 100 are usually required because precision is essential. Primary Methods. The below flow chartsuggests appropriate choices for different types of information needs. and focus groups. a confidence interval of 20-35% is too wide to be useful. For example. 61 .Market research is often needed to ensure that we produce what customers really want and not what we think they want. phone surveys. Secondary research involves using information that others have already put together.” Open ended questions have the advantage that the respondent is not limited to the options listed. secondary research methods. mail questionnaires. for surveys to yield meaningful responses. and coding them can be quite a challenge. and that the respondent is not being influenced by seeing a list of responses. Secondary Methods. Coca Cola did a great deal of research prior to releasing the New Coke. you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter. For example. you don’t need to question people about how tall they are to find out how many tall people exist —that information has already been published by the U. open-ended questions are often skipped by respondents. observation.. please see my handout.g. For example. where the respondent is asked to select answers from a brief list (e. if you are thinking about starting a business making clothes for tall people. in contrast. “In which city and state were you born? ____________”) or closed- ended. Primary vs. For more information about secondary market researchtools and issues. “__Male ___ Female. if a market share of twenty percent would result in a loss while thirty percent would be profitable.S. However. Research will often help us reduce risks associated with a new product. Please seemy handout for advantages and disadvantages of each. but itcannot take the risk away entirely. In general. and consumers seemed to prefer the taste. It is also important to ascertain whether the research has been complete. consumers were not prepared to have this drink replace traditional Coke.g. However.

For example. but not many questions can be asked because many answer options have to be repeated and few people are willing to stay on the phone for more than five minutes. Interviewer bias occurs when the interviewer influences the way the respondent answers.Surveys come in several different forms. Mail surveys are relatively inexpensive. unconsciously an interviewer that works for the firm manufacturing the product in question may smile a little when something good is being said about the product and frown a little when something negative is being said. The group is usually led by a moderator. consumers might indicate a desire to avoid artificial ingredients. are vulnerable to bias. Thus. only gradually moving toward the specific product of sugar-free cookies. Finally. Probing on the meaning of wholesomeness. who will start out talking broadly about topics related broadly to the product without mentioning the product itself. For example. a response bias may occur—if only part of the sample responds to a survey. instead of having consumers merely discuss what they think about some sugar-free cookies that we are considering releasing to the market. This would be an important concern in the marketing of sugar-free 62 . more people answered no to the question “Should speeches against democracy be allowed?” than answered yes to “Should speeches against democracy be forbidden?” For face-to-face interviews. too. as any kind of research. a focus group aimed at sugar-free cookies might first address consumers’ snacking preferences. we avoid biasing the participants into thinking only in terms of the specific product brought out. A focus group usually involves having some 8-12 people come together in a room to discuss their consumption preferences and experiences. we can have consumers speak about their motivations for using snacks and what general kinds of benefits they seek. Focus groups are useful when the marketer wants to launch a new product or modify an existing one. interviewer bias is a danger. but response rates are typically quite low—typically from 5-20%. The respondent may catch on and say something more positive than his or her real opinion. the respondents’ answers may not be representative of the population. For example. Mall intercepts are a convenient way to reach consumers. instead of having consumers think primarily in terms of what might be good or bad about the product. Such a discussion might reveal a concern about healthfulness and a desire for wholesome foods. but respondents may be reluctant to discuss anything sensitive face-to-face with an interviewer. Surveys. Phone-surveys get somewhat higher response rates. we can ask them to discuss more broadly the ultimate benefits they really seek. For example. By not mentioning the product up front. The wording of a question can influence the outcome a great deal.

Therefore. • What price consumers are willing to pay. chances are that few consumers would take the time to write out an elaborate answer. it may help to try a common tool of psychologists and psychiatrists—simply repeating what the person said. for example: • They represent small sample sizes. focus groups cannot give us a good idea of: • What proportion of the population is likely to buy the product. focus groups are very good for getting breadth—i.g. which is too small to generalize from. Because of the cost of running focus groups. Here. it is helpful that focus groups are completely “open-ended:” The consumer mentions his or her preferences and opinions.. if one did not think to ask about something. The benefit here is that we can get really into depth (when the respondent says something interesting. Suppose you run four focus groups with ten members each. Focus groups are well suited for some purposes. they watch public television rather than soap operas or cook fresh meals for their families daily) even if that is not true. finding out what kinds of issues are important for consumers in a given product category. birth control).. we can ask him or her to elaborate).e. This will result in an n of 4(10)=40. To get a person to elaborate. • Consumers may be reluctant to speak about embarrassing issues (e. Focus groups also have some drawbacks. This means that: • Consumers will often say things that may make them look good (i. but this method of research is costly and can be extremely vulnerable to interviewer bias. but poorly suited for others. necessary. In general. and the focus group moderator can ask the consumer to elaborate. by virtue of the nature of the product. • The groups are inherently social. but might not have come up if consumers were asked to comment directly on the product where the use of artificial ingredients is. weight control.. only a few groups can be run. He or she will often become uncomfortable with the silence that follows and will then tend to elaborate. Personal interviews involve in-depth questioning of an individual about his or her interest in or experiences with a product. This approach 63 . In a questionnaire.e.cookies.

Although an interviewer is looking to get at the truth. instead. we may ask them to explain reasons why a friend has not yet bought a computer. Saying or thinking about something that “hits too close to home” may also influence the respondent.” Thus. The elaborate context that has to be put into place takes time and energy away from the main question. many older executives may not be comfortable admitting to being intimidated by computers. or preferences. this will often not be noticeable. (e. negative thoughts. go more in depth on what he or she was saying. For example. It has been found that in such cases. He or she is not influenced by a new question but will. or limit the duration of. There may also be real differences between the respondent and the third party. Although this type of conditioning will not get a completely negative respondent to say all positive things.g. Looking at how consumers select products may yield insights into how they make decisions and what they look for. feelings. who may or may not be able to see through the ruse. Projective techniques are inherently inefficient to use. or to tell a story about a person in a picture who is or is not using a product. he or she may inadvertently smile a little when something positive is said and frown a little when something negative is said. Unconsciously.has the benefit that it minimizes the interference with the respondent’s own ideas and thoughts.S. The main problem with this method is that it is difficult to analyze responses. Tide) were not impressive to the Japanese. people will tend to respond more openly about “someone else. Observation of consumers is often a powerful tool. Consciously. then. who 64 . but at an unconscious level. it may “swing” the balance a bit so that respondents are more likely to say positive thoughts and withhold. some American manufacturers were concerned about low sales of their products in Japan. For example. Projective techniques are used when a consumer may feel embarrassed to admit to certain opinions. and the respondent often will not consciously be aware that he or she is being “reinforced” and “punished” for saying positive or negative things. he or she may have a significant interest in a positive consumer response. Personal interviews are highly susceptible to inadvertent “signaling” to the respondent. Observing Japanese consumers. it was found that many of these Japanese consumers scrutinized packages looking for a name of a major manufacturer—the product specific- brands that are common in the U.. the cumulative effect of several facial expressions are likely to be felt.

then. along with the next several ones. Although there may be cause for some concern in that the particular individuals have not consented to be part of this research. Conditional branching allows the computer to skip directly to the appropriate question. it would be possible to ask the subject 65 . and Hyundai. such as difficulty finding a product.wanted a name of a major firm like Mitsubishi or Proctor & Gamble.” or overly close encounter with others. One potential benefit of online surveys is the use of “conditional branching. a changing room.. the areas of the store heavily trafficked by women can be designed accordingly. from stores that are designed effectively to promote efficient shopping. What is being reported here. it is also possible to customize brand comparison questions to those listed. The intent is not to find “juicy” observations specific to one customer. This method can be used to identify problems that the customer experiences. If a respondent is asked which brands he or she considered. Toyota. Consumers benefit. that the respondent considered Ford. If the respondent answers “no. and thus. A question arises as to whether this type of “spying” inappropriately invades the privacy of consumers. would address issues related to this shopping experience. The video clip with Paco Underhill that we saw in class demonstrated the application of observation research to the retail setting. the location of merchandise can be observed.” he or she would be instructed to go to the next question which.g. online research provides new opportunity and has increased in use. for example. If the respondent answered “yes. going straight to question 17 instead of proceeding to number 9. Suppose. The Internet now reaches the great majority of households in the U. If it is found that women are more uncomfortable than men about others standing too close. The question is what consumers —either as an entire group or as segments—do.. it should be noted that there is no particular interest in what the individual customer being watched does. or a store employee for help.” he or she will be asked to skip ahead several questions—e. one question might ask if the respondent has shopped for a new car during the last eight months. Observation may help us determine how much time consumers spend comparing prices.” In conventional paper and pencil surveys. a mirror. By understanding the phenomena such as the tendency toward a right turn. Online research methods. for example.S. or whether nutritional labels are being consulted. are averages and tendencies in response. It is also possible to identify problem areas where customers may be overly vulnerable to the “but brush.

it may be appropriate to redesign the menu structure and/or insert hyperlinks in “intermediate” pages that are found in many users’ routes. 66 . A more serious problem is that it has consistently been found in online research that it is very difficult—if not impossible—to get respondents to carefully read instructions and other information online—there is a tendency to move quickly. Online search data and page visit logs provides valuable ground for analysis. Some consumers may be more comfortable with online activities than others—and not all households will have access. however. There are certain drawbacks to online surveys. Hyundai. Toyota. the need to include this term in online content can be seen in search logs. This makes it difficult to perform research that depends on the respondent’s reading of a situation or product description. “torturous” route to information frequently accessed. Hyundai. If consumers use a certain term frequently that is not used by the firm in its product descriptions. If consumers take a long.questions about his or her view of the relative quality of each respective pair—in this case. Ford vs. Ford vs. this type of response bias is probably not significantly greater than that associated with other types of research methods. and Toyota vs. Today. It is possible to see how frequently various terms are used by those who use a firm’s web site search feature or to see the route taken by most consumers to get to the page with the information they ultimately want.

Insurance Linked Deposit Scheme  Term Deposit A/c  Recurring Deposit A/c  Locker A/c  Current A/c i) Any person competent to contract and satisfactorily introduced to the Bank may open an account in his/her own name. He/She may not open more than one such account.Services provided by co-operative bank SERVICES OF THE PATIALA CENTRAL COOPRATIVE BANK TYPES OF DEPOSITS ACCOUNTS There are various different types of deposits accounts  Current A/c  Saving Bank A/c  SBBY . Accounts may be opened in the names of two or more persons and may be made payable to : 67 .

clubs. in their sole names. (iii) Accounts can be opened by minors of 14 years and above.  Saving Bank A/c 68 . (ii) Accounts can be opened for sole proprietorship firms. partnership firms. (ii) Each applicant will be required to sign a declaration to the effect that he has read and accepted Current Account Rules. (d) 'former or survivor' or 'latter or survivor'. proprietor / partners / Directors of the company / office-bearers / trustees and other officials authorized to operate upon the account. (iii) A recent passport size photograph of every accountholder. A copy of the rules is displayed on the Notice Board. is required to be given to the bank. subject to the condition that the second (first in the case of latter or survivor) named accountholder will be entitled to the balance lying in the account only on the death of the former (latter in the case of latter or survivor) accountholder. associates etc. (iv) The account is to be introduced by an existing current/cash credit accountholder having minimum six months old satisfactorily & actively conducted KYC Complied account with the Bank. if able to read and write. (c) Either or anyone or more of them or the survivors jointly. trusts. All signatories are required to come in person to the bank to sign the account opening form. Required credentials depending upon the type of constitution of the prospective accountholder are to be submitted to the bank. Joint Hindu families. or survivor. satisfactorily introduced to the Bank and on fulfilling laid down procedures and tendering required credentials. 2) How to open a Current Account (i) Application to open an account must be made in Bank's prescribed account opening form. (b) Any one or more of the survivors.(a) Any one or more of them. private limited and public limited companies.

the following conditions must be fully satisfied: The account of the introducer should be minimum six months old and the account of the introducer should have been satisfactorily and actively conducted. Thus. It means the proposed introducer has complied with the KYC requirement in respect of the account maintained with the Bank. (iii) At the discretion of the Bank. unable to write. duly attested by a person known to the bank. (vi) The account is to be introduced by an existing account holder having satisfactorily conducted account with the Bank. (iv) No cheque book facility will be extended in the single or joint savings bank account of the illiterate depositors. Any of the following documents bearing photograph of the holder is also accepted for the purpose of identification. he/ she need not have his/her thumb impression attested by a witness every time he/she withdraws money from the account. Such illiterate depositor should lodge his/her recent photograph with the bank. if he/she affixes his/her thumb impression in the presence of an officer of the Bank. It should be made. The account of the introducer should be KYC compliant. Valid Passport 2. to be operated upon jointly.How to open a Savings Bank Account (i) Application to open an account must be made in Bank's prescribed account opening form. must attend in person and affix his/her thumb impression on the account opening form in the presence of an approved witness. in the presence of Bank’s authorized officer and the applicant must fill in all the columns of the application form. (v) Every account holder should submit copies of his/her recent passport size photograph at the time of opening an account. PAN Card 69 . Each applicant will be required to sign a declaration to the effect that he has read and accepted the Savings Bank Rules. (ii) Illiterate depositor. who is known both to the bank and the applicant. It will suffice. 1. in person. Whenever a deposit account is opened and introduction is taken from an existing account holder. illiterate persons are allowed to open accounts jointly with persons who are literate or illiterate and closely related to them.

401A for non individuals.for risk cover of Rs 1. 3.for risk cover of Rs 3 lakhs and Rs 5000/.Insurance Linked Deposit Scheme The Punjab State Cooperative Bank has introduced a new Insurance Linked Deposit Scheme for the benefit of saving bank account holders opening bank account with a minimum balance of Rs 1500/. drawn on account. Voters ID card 5. 2) Period and minimum amount of different types of deposits Minimum period:- 70 .  SBBY .  Term Deposit A/c 1) Opening of deposit accounts Application for fixed/short deposits and deposits at notice is taken on Form No.401 for individuals and Form No. the Bank shall be entitled at its sole discretion to suspend the operation in the account immediately.for risk cover of Rs 5 lakhs. if any. Under the heading Sehkari Bank BimaYojna. a simple Application-cum-Deposit slip is to be filled. Identity Card of employees of central/State Govt.Rs 3000/.00 lakh . & Public Sector Undertakings 7. Senior Citizen’s Card In the event of withdrawal of introduction by the introducer. without prior intimation to the depositor and it will be in order for the Bank to return / dishonour the cheques. All time deposit accounts shall be properly introduced. without being liable for the same. For all subsequent deposit. Defence ID card 6. Driving Licence 4. closing of account.

120 months In special cases.100/. government undertakings.for a period of 15 days and above and minimum of Rs. say. or for individuals for any of their special needs by way of accounts opened under special recurring/cumulative deposit scheme.  Photographs of the depositors except in case of existing accounts (having photographs) 5) Nomination facility: Available  Recurring Deposit A/c 71 .100/. Maximum period : . in these instructions. corporate bodies to meet their special needs like creation of sinking fund/amortisation fund etc. the minimum period for a term deposit shall be 7 days for deposit amount ofRs. However.lacs. Minimum amount:- The minimum amount accepted for fixed/short deposit is Rs. under the order of a court or where interest of a minor is involved and in the case of institutions.100/.lacs and above & minimum 15 days for amounts less than Rs.lacs and above for a minimum period of 7 days. the deposit may be accepted for periods over 10 years. Other documents as per KYC norms. should be signed by all the joint depositors.1. 4) Additional documents/forms to be obtained  PAN/GIR number or Form 60 /61. It can also be opened with instructions payable to "Former or Survivor" or "Former.000/.At present. Survivors Jointly or Last Survivor" or "Latter or Survivor" in which case operational/ payment instructions at the time of opening the account or subsequent variations. if any. 3) Operational instructions Term deposit accounts can be opened with instructions payable to 'Either or Survivor'. payable jointly. payable to any one of the depositors etc. the period of deposit should not exceed 20 years.

address etc. Voter card.  Available in different sizes as per your requirement. 36. a safe.100/. the Locker holder assigns a code word which further increases security. blind/illiterate person etc. the safe deposit vaults with fully equipped. occupation. can open the A/c. 60 month etc. 24.Maximum period is 10 years. On the expiry of the period. documents and other things dear to you. All individuals. latest burglar alarm systems. jointly with others minors. The account is required to be introduce properly by the existing A/c holder of the bank of any person know to the bank. The intending customer should fill in A/c opening form with complete particulars such as parentage. Passport. These Lockers and their contents can be nominated to people near and dear to you. The period may be 12.Minimum monthly installment of the A/c is Rs. For the opening of the account in the bank the KYC submission by the customer is mandatory.A Recurring Deposit A/c can be opened with a certain initial deposit wherein a Depositor needs to deposit money by way of monthly installments over stipulated period. and PAN or Form No. Two passport size photographs are required to be affixed along with furnishing of residence proof such as copies of ration card. the accumulated amount along with interest is paid in lump sum. 48. 72 . Rate of interest on Recurring Deposits for various period will be the rate applicable on term deposit for that period. jewellery.60.  For additional safety. Bank offers you. Minimum monthly installment. accumulated amount is paid to the customer  Locker A/c Storing too much jewellery and valuables in the house at times becomes a security issue and an impediment in case of natural calamities. On the expiry of the stipulated period. Telephone/Electricity bill etc. trustworthy space to store your valuables. Key Benefits  State-of-the-art Lockers.

Term Deposit A/c 180 days 8.00% 9.50% 7. Term Deposit A/c 8.00% 4. Saving Bank A/c . .00% Saving Bank . Term Deposit A/c 46 days 90 days 7.75% year 9. 4. Term Deposit A/c 7 days 14 days 4.2015 Rate of Rate of Period interest S. Term Deposit A/c 2 years and above 8.75% 9. Term Deposit A/c 1 year 9. Term Deposit A/c 91 days 179 days 7.50% 9.75% 5.25% year years 11.00% frill A/c 3. Term Deposit A/c 15 Days 30 Days 6. . from (Public) citizen) 1. 4.No 2.75% 8.00% 73 .25% 8.00% 4.00% 6.25% Less than 1 8.25% 7.Deposit Scheme Interest Rates Interest Rates on Deposit with effect from 1. Term Deposit A/c 31 Days 45 Days 6. .No Schemes Period upto interest(Sr.25% 6.75% 7.04.50% Above 1 Less than 2 10.50% 5.00% 4.

Review of literature 74 .

The available literature and research are divided into four major parts according to the area of research i. Review of Literature related to Service Quality of Indian Banks2 The above mentioned literature have been obtained from following four major sources such as (i) Ph. Business Today.e literature related to: 1. research conducted in India. etc. ICRA Limited and business magazines like Financial Express. (iii) Research Studies of individual scholars published in journals and magazines and 75 . Review of Literature related to Performance Appraisal of Banks 2.D. (ii) The research / studies carried over by the institutions like RBI. Review of Literature related to Impact of Reforms on Indian Banks 4. But there are very few research and literature available on the subject related to financial reforms and its impact on Indian banks. Business India. Several research have been conducted to analyse the different aspects of performance of commercial banks in India and abroad. Money Outlook.Introduction Review of literature has vital relevance with any research work due to literature review the possibility of repetition of study can be eliminated and another dimension can be selected for the study. Review of Literature related to Policy Framework and Recommendations for Banks 3. The literature review helps researcher to remove limitations of existing work or may assist to extend prevailing study.

Profits of SBH showed an increasing trend indicating a more than proportionate increase in spread than in burden. evaluated the level of customer satisfaction and compared the performance of SBH with other PSBs. though the rate of growth was highest in fixed deposits. The major findings of this study are that since nationalization. the progress of banking in India has been very impressive. All three types of Deposits have continuously grown during the study period. Associate Banks of SBI and SBI. Productivity. analyzed the trends in deposits.(iv) websites of RBI. various components of profits of SBH. of India and websites of various banks.D thesis. A comparison of SBH performance in respect of resource mobilization with other banks showed that the average growth of deposits of SBH is higher than any other bank group. Govt. a little more than a decade. Profitability. This study is undertaken to review and analyze the performance effectiveness of Syndicate Bank and other Nationalized banks in India using an Economic Managerial. made an attempt to evaluate the performance of Public Sector Commercial Banks with special emphasis on State Bank of Hyderabad. Statistical techniques like Ratios. “Performance of Public Sector Banks – A Case Study of State Bank of Hyderabad. The present study is undertaken in the light of the methodology adopted and conclusions emerged in the earlier studies relating to the performance evaluation. Thesis studied the performance effectiveness of Nationalized Bank by taking Syndicate Bank as case study in his Ph. In this study. Thomas has examined various aspects like growth and development of banking industry. examined the trends in Asset structure. ‘Performance effectiveness of Nationalised Bank- A Case Study of Syndicate Bank’. Finally. financial reforms and their impact on the Indian banking sector. A period of ten years from 1984 to 1993-94 is taken for the study. Social Banking. achievements of Syndicate Bank in relation to capital adequacy. Zacharias Thomas(1997)Ph D Thesis. Percentages. Customer Service and also made a comparative analysis of 'the performance effectiveness of Syndicate Bank in relation to Nationalized bank. quality of assets. majority of the customers have given a very positive opinion about the various statements relating to counter service offered by SBH.1 REVIEW RELATED TO DEVELOPMENT & PERFORMANCE MEASURES Prashanta Athma (2000). submitted to Kochin University (1997). The period of the study for evaluation of performance is from 1980 to 1993-94. 3. Athma outlined the Growth and Progress of Commercial Banking in India and. Growth. and a comparison between the two. in his Ph D research submitted at Usmania University Hyderabad. Compound Annual rate of growth and averages are computed for the purpose of meaningful comparison and analysis.Efficiency Evaluation 76 .

The focal point of the study made by Das and Udaykumar Lal (2002). has analyzed profitability management of banks under the deregulated environment with some financial parameters of the major four bank groups i. The study reveals that the profitability position was reasonable during the period of study when compared with the previous years. Singh R (2003). Singla HK (2008). new Delhi) was the critical evaluation of the lead bank scheme in the light of banking sector reforms. They should prefer noninterest income sources. he felt that the backward areas should be given more funds for investment in priority sectors and more and more people should be brought under its coverage and the procedures of extending credit should be simplified and there should be least hassle cost. 7th in Productivity and 15th position in Customer Service among the nationalized banks. large number of un-remunerative branches. seven low priority performance and eleven low efficiency performance in comparison with Syndicate Bank. 14th Position in Social Banking. Das in this book observed that high level of NPAs. It is concerned with examining the profitability position of the selected sixteen banks of banker index for a period of six years (2001-06). in his paper. has examined that how financial management plays a crucial role in the growth of banking. IBA bulletin. new private sector banks and foreign banks. Operational efficiency is calculated in terms of total business and salary expenditure per 77 . (Deep and Deep Publication. in his book Banking Reforms in Lead Bank Scheme. 15th in Profitability. low productivity. Comparative performance of publc sector banks in india” Prjanan. Further. profitability has declined in the deregulated environment. old private sector banks. Banks in better position to deal with and absorb the economic constant over a period of time. Das sincerely felt that the whole banking sector in India is to be revolutionized to cope with the changing dimensions of the satellite one world. Further. No25. he found that five nationalized banks showed low health performance.e. four private sector and three foreign banks for the year 1996-97. 8th in Growth.’ in ICFAI Journal of Bank Management No 7.Model (EMEE Model) developed by researcher. have analyzed and compared the efficiency in six public sector banks. public sector banks. Strong capital position and balance sheet place.’ financial performance of banks in India. Thomas in this study found that Syndicate Bank got 5th Position in Capital adequacy and quality of assets. in his paper Profitability management in banks under deregulate environment. overstaff and archaic methods of operations have affected the profitability of public sector banks. He emphasized to make the banking sector competitive in the deregulated environment. Vol. XXII. Subramanian and Swami (1994) in their paper.

public. Some organizations like. the outdated laws and regulations that pose hindrance to banks in getting back their dues need to be suitably amended. Vol XXXIX. For the purpose of analysis. the SBI. the SBGs (8). Among the private sector banks Indus Bank followed by Citibank Registered highest and second highest operating profit per employee respectively. Selecting four different categories of indicators-Business Performance. RBI occasional papers. and foreign Banks operating in India. they felt that since net interest margin will continue to remain compressed in a deregulated interest rate regime. Indian. With the objective of making 78 . is to analyze the Performance of the 27 Public Sector Banks for the year 1999-2000 vis-a-vis the preceding year. have been publishing papers on various aspects like NPAs. Further. In a paper published in the Financial Express in 2004. Researchers in this paper opinioned that greater operational flexibility and functional autonomy should be given to PSBs especially to strengthen their capital base. deposit mobilization. Business India. They claim that this survey is a comprehensive one. the NBs (19). The Bankers. Finance India. the PSBs exhibited better show in terms of several parameters studied above. performance evaluation. However. branch expansion. a lot of effect would have to be made to mitigate this through generation of non-interest income. Frequent changes are order of the day for the topics of this nature. technology. SBI and ICRA have carried out several research studies on various issues relating to banking and exclusive banking journals/periodicals like Bank Quest. capital adequacy. Same studies and papers suitable to this study are being reviewed here. credit dispensation. RBI. namely. the problems of NPAs and capital adequacy remain to be taken care of. Nevertheless. Vulnerability and labor productivity indicators. carried out the analysis. was prepared by Economic Research Department of State Bank of India. which evaluates the performance of private. Efficiency. etc. The analysis revealed that higher per employee salary level need not result in poor efficiency and business per employee efficiency co-efficient was also calculated. SBI Research Department in 2000. As far as NPAs are concerned. titled “India’s Best Banks” has been doing for several years through its annual exercise to evaluate and rate Indian banks. RBI bulletins and general magazines like Business Today. 27 PSBs disaggregated into four groups. Therefore. IBA. one should rely on latest information. through its paper “Performance analysis of 27 Public sector banks” published in SBI monthly review performance.employee. they believe' that. Among the PSBs. among the Nationalized Banks there existed wide variations in efficiency. service quality. During 1999-2000. Bank of Baroda registered the high efficiency and operating profit per employee. ABs (7). 39 indicators were selected for this purpose. Altogether.

'These criteria are (1) Strength and soundness (ii) Growth. (iv) Efficiency/Productivity. Considering the current banking. Five major criteria were identified against which the banks were ranked. 2002 and March 31. Banks were categorized into Public Sector Banks. Financial information for the year ending March 31st. In the first category of "State-Run" CHAPTER 2 RESEARCH METHODOLOGY 79 . 2003 relating to each of the banks falling into the aforesaid categories was collected from the data available from RBI. New Private Sector Banks and Foreign Banks. pertinent weights were assigned to each of the major criteria. industrial and over-all economic scenario.the comparison more meaningful. (iii)Profitability. (v) Credit quality.

school etc.may be as social unit such as family. district. Sampling unit may be a geographical one such as state. or it .RESEARCH METHODOLOGY Sampling unit: A decision has to be taken concerning a sampling unit before selecting sample. club. flat etc. or it may be an individual . village etc or a construction unit such as house. the researcher will have to decide one or more of such units that he has to select for his study Sampling Area Patiala Size of the sample: 50 consumers of The Patiala central cooperative bank ltd branch Top khana More Patiala having different types of accounts have been interviewed to know their opinion about their perception towards services of cooperative bank Sampling technique: Convenient sampling Extent Time frame: 8weeks 80 .

The secondary data could be collected from. Primary Data is collected by the investigator through interviews of company employees. is called secondary data. Data such collected is original in character. both in terms of money and time spent . fair & conference and other publications. Secondary Data : . A questionnaire of about 50 questions was made and it was given to the dealers to fill it up for our research. The researcher of the report also visited various libraries for collection of the introduction part.There searcher of the report also did the same and collected secondary data from various internet sites . The research was a kind of conclusive research as it helps in the testing of hypothesis. Reports. 81 .Data Sources Primary Data : . The method of sampling was the Random method as it is unbiased. distributor etc. libraries. The advantages of the secondary data can be –It is economical. magazines.Primary data is that kind of data which is collected directly by the investigator himself for the purpose of the specific study. vendors.When an investigator uses the data that has been already collected by others. The advantage of this method of collection is the authentic.

Objectives of the study 82 .

3. To determine that which services do people prefer more in co-operative bank. Objectives 1. 4.To study the effect of the services provider/ employees behaviour on the consumers. 2. To study the comparison of products and services of co-operative bank with other banks. to study the consumer’s overall feedback in terms of product and services provided by the co-operative bank. 83 .

Analysis and interpretation of data 84 .

Both Contents No.% Deposits 16 32% Loans 14 28% Both 20 40% Total 50 100% 85 . Loans 3.Deposits 2. of people Per.1)To determine that which service do people prefer more in cooperative bank? 1.

% 1. 32% both. Personal banking 16 32% 86 . Agriculture 2. 2). deposits. Commercial 3. of people Per. Agriculture 22 44% 2. Personal banking Contents No. In which sector cooperative bank provides best services? 1. 40% loans. Commercial 12 24% 3. Most of the consumers think that cooperative bank is both deposits and loans oriented bank in its product and services range but very less consumer are not aware they think that the bank is only deposits oriented or loans oriented. 28% From the above chart we came to know about the consumer’s thinking about the services offered by cooperative bank.

3).% 1. of people Per. No Contents No. No 11 22% Total 50 100% 87 . 24% From the above chart we can see that most of the people said that cooperative bank provides its best products and services to the Agriculture sector as it charges less interests on Agriculture loans and many other products and services which are very helping in Agriculture sector.Total 50 100% Personal . 44% Comercial. 32% Agriculture. Yes 2. Yes 39 78% 2. Products and Services provided by cooperative bank are qualitative ? 1.

% 1. No. Are the products and services provided by cooperative bank are different from other banks? 1. 4). 22% Yes. 78% From the above chart it is clear that most of the people says that the products and services provided by cooperative bank are qualitative because all the services and products that the bank provides are under the instructions of RBI .No Contents No. of people Per. In other area like fertilizers1 and seeds provided by the bank in the Agriculture sector are of high quality .Yes 30 60% 2.No 20 40% Total 50 100% 88 .Yes 2.

What factors make the products and services of cooperative bank different from other banks? Contents No. of people Per.but on the other hand rest of the people do not agree as they get same services as the other banks for example in case of personal loans etc. No. 40% Yes. Quality 22 44% Total 50 100% 89 . 60% From the above chart we came to know that 60% of people said that the products and services provided by cooperative bank are different from other banks because taking the example of agriculture cash credit loan cooperative bank charges 1-1/2 % less interest on this loan similarly on the deposits and loans for senior citizens there is a 2% less interest is charged .% 1. 5). Interest rates 28 56% 2.

No 8 16% Total 50 100% 90 . 6). Yes 42 84% 2. 44% Interest rates. 56% From the above chart we came to know that 56% people thinks that cooperative banks products are different from other banks due to interest rates while rest of other thinks that the products are differ in quality wise from other banks. No Contents No.% 1. of people Per. Quality. Can services increase the sale of product? 1. Yes 2.

84% From the above chart we came to know that most of the people said that by providing the better services the sale of product can be increased as the consumer now a days prefer service more than product weather it is before sale of product or after sale of product 7).% 1. Yes 44 88% 2. Should product and service can be changed with the environment? 1. 16% Yes. of people Per. No. No Contents No. Yes 2. No 6 12% Total 50 100% 91 .

of people Per.Satisfactory 10 20% Total 50 100% 92 . Good 35 70% 2.% 1.Satisfactory Contents No. What is the behaviour of service provider /employees at the bank? 1. Bad 3. 8). 12% Yes. 88% From the above chart we can easily understand that most of the people says that products and services should be changed according to the environment because if we provide products and services according to environment only then people get benefits from that service. Bad 5 10% 3. No. For example we cant provide services of agriculture sector to commercial or urban sector. Good 2.

% 1. Yes 42 84% 2. No Contents No. 9). of people Per. 10% Good. Is the behaviour of service provider/employee has any effect on consumer? 1. Satisfactory. 20% Bad. 70% From the above chart we came to know that most of the people said that the behaviour of the service providers and bank ‘s employee is good or helpful as they guide them properly about effective banking moreover they are very helpfull in every manner. Yes 2. No 8 16% Total 50 100% 93 .

Loans Contents No. In cooperative bank which product is more used by the consumers? 1. Deposits 2. 10).% 1. Loans 22 44% Total 50 100% 94 . 84% From the above chart we came to know that most of the people said that behaviour of the service provider has a very much effect on the consumer as in this competitive world where there are many competitors in the banking sector so the services are very close with each other so the main effect is the behaviour of service provider. No. of people Per. Deposits 28 56% 2. 16% Yes.

No 4 8% Total 50 100% 95 . 44% Deposits. Loans. of people Per. Are you satisfied with the bank’s newly launched computerised services ? 1. Yes 2. No Contents No.% 1. 56% From the above chart we came to know that most of the consumers use deposits service than that of the loans as the cooperative bank provides various attractive deposits schemes for the consumers so the consumers or entrepreneur farmers who deposits the money mostly prefers cooperative bank. Yes 46 92% 2. 11).

No; 8%

Yes; 92%

From the above chart we came to know that most of the people are satisfied with the bank’s
newly launched computerised service because with this service the whole work became
more systematic than earlier and it takes very less time to work that is good for consumer as
well as employee too.

12). According to you which way of providing services by bank is more effective ?

1. Ledger system

2. Computerised banking/E banking

Contents No. of people Per.%
1.Ledger system 3 6%
2. Computerised banking/ E banking 47 94%
Total 50 100%

96

Ledger system; 6%

Computerised banking/ E banking; 94%

From the above chart we came to know that most of the people like the computerised service
more from that of ledger system services because it is more efficient less time consuming
than that of ledger system banking it decrease the time of the consumer as well as employee
too.

13). Do you think that cooperative bank is an agriculture based bank?

1.Yes

2.No

Contents No. of people Per.%
1.Yes 30 60%
2.No 20 40%
Total 50 100%

97

No; 40%

Yes; 60%

From the above chart we came to know that most of the people think that cooperative banks
are agriculture based banks as they provides more services to agriculture sectors more
benefits to farmers even that the bank was started as a agricultural bank.

14). What is your feedback to overall performance of the bank in terms of products and
services?

1.Good

2. Bad

3.Satisfactory

Contents No. of people Per.%
1.Good 35 70%
2. Bad 4 8%

98

70% From the above chart we came to know that most of the the people are satisfied by the overall performance of the cooperative bank in terms of the services and products because its wide range of products .Yes 48 96% 2. Would you like to continue banking with cooperative bank in future also? 1. No 2 04% Total 50 100% 99 .3.% 1. No Contents No.Satisfactory 11 22% Total 50 100% Satisfactory. good behaviour of the service providers . good physical environment of bank newly launched services mostly attracts every sector of people. 15). of people Per. 8% Good.Yes 2. 22% Bad.

4% Yes. 96% From the above chart we came to know that most of the people are that much satisfied by the bank’s products and services that they want to continue banking with the cooperative bank in future also. 100 . No.

* With the help of consumers of The Patiala central cooperative bank ltd I came to know that most of the consumers preferred services of deposits due to the good interest rates on deposits and some special services like senior citizens get more interest on savings 2. Findings Findings 1. To determine that which services do people prefer more in co-operative bank. To study the comparison of products and services of co-operative bank with other banks. 101 .

* With the help of whole study i came to know that the services offered by cooperative banks are different as compared to other banks for example more interest on savings and charges less interest rates on loans . 4.it also provides other services like agriculture subsidies intensives etc. To study the consumer’s overall feedback in terms of product and services provided by the co-operative bank. 3. * It is found in the study that most of the consumers are that much satisfied from the services of cooperative banks that they want to continue banking with the cooperative banks in future also. * It can clearly seen from the study and survey that the service provider’s behaviour has a great effect on consumers perception if the behaviour of employee is good they will come again and again to same bank organisation. 102 .To study the effect of the services provider/ employees behaviour on the consumers.

103 . 2. Limitations Limitations 1. The infrastructure of bank is not so attractive that can attract high society consumers like other private banks .The newly launched computerised services or E banking is not so developed as compared to other banks consumer is getting many difficulties while taking services.

104 . The processing of services is not so fast as other banks due to not effective working of e Banking as they are still maintaining ledger works.3.

2. The cooperative bank should develop the computerised services properly and start effective E banking so that it will make ease to both consumer as well as employee who provides the services. Suggestions Suggestions 1.The bank should also develop its infrastructure to attract high segment consumer in the bank. 105 .

.3 The whole working should be computerised so that consumers get services fast and effective it will also ease the employee in providing better services. 106 .

cooperative bank is now providing better products and services than other banks . study. rural etc . housings. most of the consumers are very much satisfied with all these 107 . loans. personal. deposits.but by the time it has changed by developing its products and services range in different sectors weather it is agriculture. urban. recently cooperative banks has started new range of services as the banks are computerised within the very small period of time 6 months with this we can easily judge the growing speed of the bank . Conclusion Conclusion In this study we came to conclude that cooperative bank was started as an agriculture based bank . commercial.

development of the bank they became so much loyal to the bank due to its wide range of products and services they even decides to remain attached with bank in future also . 108 . with this type of product and service provided by bank and its continuous development of its services and products accordingly with time and environment I can surly say that bank will definitely became no 1 in the banking industry.

Surveys and questionnaire filled by various consumers . Secondary Data http://en. patiala. Balance sheets. profit and loss accounts &loan reports.org/wiki/Scheme for financing 109 .wikipedia. Bibliography Bibliography Primary Data Reports of loans at Patiala central cooperative bank and Top khana more branch.

html 110 .com/topic/narasimham-committee-on-banking-sector- reforms#ixzz1LYSu0NWT http://www.in/html/pscb_scheme.html. http://www.banknetindia.punjabrevenue.com/html/free reg.gov.punjabcooperation.in/Pscadb_achiev.gov.in http://www.http://www.answers.html. http://pbcooperatives.nic.

Yes 2. Commercial 3. Agriculture 2.Deposits 2. No 111 . In which sector cooperative bank provides best services? 1.Both 2). Annexure Annexure 1)To determine that which service do people prefer more in cooperative bank? 1. Products and Services provided by cooperative bank are qualitative ? 1. Personal banking 3). Loans 3.

Computerised banking/E banking 13). Bad 3. Is the behaviour of service provider/employee has any effect on consumer? 1. What is your feedback to overall performance of the bank in terms of products and services? 112 .4). No 12). Loans 11).No 14). Yes 2.What factors make the products and services of cooperative bank different from other banks? 1.Yes 2. Do you think that cooperative bank is an agriculture based bank? 1. Yes 2. No 8). Good 2. Quality 6). Are the products and services provided by cooperative bank are different from other banks? 1. According to you which way of providing services by bank is more effective ? 1.Yes 2. No 7). In cooperative bank which product is more used by the consumers? 1. Interest rates 2.Satisfactory 9). Yes 2. Ledger system 2. Can services increase the sale of product? 1. Deposits 2.No 5). Should product and service can be changed with the environment? 1. Are you satisfied with the bank’s newly launched computerised services ? 1. Yes 2. What is the behaviour of service provider /employees at the bank? 1. No 10).

Would you like to continue banking with cooperative bank in future also? 1.Good 2.Yes 2.Satisfactory 15).1. No 113 . Bad 3.