RETAIL BANKING

PROJECT REPORT

ON

“ STUDY OF RETAIL BANKING”

FOR

“THE JALGAON JANATA SAHAKARI BANK LTD, SAVDA”

SUBMITTED TO

Affiliated to

NORTH MAHARASHTRA UNIVERSITY,IN THE PARTIAL

FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTARTION (MBA) 2015-17

SUBMITTED BY

PARAG S.AKOLE

M.B.A.(FINANCE) 2015-2017

UNDER THE GUIDENCE OF

PROF. SHWETA CHORDIYA

KCE’S SOCIETY’S

INSTITUTE OF MANAGEMENT & RESEARCH,JALGAON

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CERTIFICATE

This is to certify that, Mr.PARAG SUHAS AKOLE is bonafied student of

MASTER OF BUSINESS ADMINISTRATION (M.B.A. FINANCE) From KCE’S
INSTITUTE OF MANAGEMENT & RESEARCH, JALGAON has successfully
completed his project report on “ Study of Retail Banking” in Jalgaon Janata Sahakari
Bank Ltd,Savda under our Guidance during the period from 1st June 2016 to 31st July
2016.He has carried out assigned project work sincerely with complete satisfaction.

We wish all the very best for his future career.

DATE-: Branch Manager

PLACE-: SAVDA Mr. Vilas Kulkarni

Branch-: Savda

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DECLARATION

I PARAG SUHAS AKOLE have completed the study project titled

“STUDY OF RETAIL BANKING” in THE JALGAON JANATA
SAHAKARI BANK LTD., AT SAVDA under the guidance of Prof. Shweta
Chordiya in the partial fulfillment of the requirement for the award of degree of
“MASTER IN BUSINESS ADMINISTRATION (MBA)” of North
Maharashtra University, Jalgaon.

This is an original piece of work & I have neither copied and nor
submitted it earlier elsewhere.

PARAG S. AKOLE

(M.B.A FINANCE)

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ACKNOWNEDGEMENT

I express my gratitude to the Bank Officer, Staff Members and everyone

associated with JalgaonJanata Sahakari Bank. Ltd. Branch-Savda. For their whole
hearted co-operation, guidance, encouragement and support in the successful
completion of my project.

I sincerely acknowledge with deep sense of gratitude and indebtedness to

Prof. B. J. Lathi MBA coordinator, IMR, who guided me with valuable inputs
throughout the project. He gave acknowledgeable insights about the topic, which
helped me in completion of this project.

I would like to thanks Mr. Vilas Kulkarni(BRANCH MANAGER),Jalgaon

Janata Sahakari Bank Ltd,Branch-Savda. For giving me this opportunity to pursue
a project in the bank. for giving me this really wonderful and challenging
opportunity to work on this project and provide me all the necessary help during
the project.

I would also like to thank my project guide Prof. Shweta Chordiya whose
valuable suggestions and guidance help me a lot to complete this project. This
project surely gave me insights into areas I was not much familiar with earlier.

Finally I express my gratitude towards the director of my institute Mr.

V.V. Katdare Sir. For their support & guidance, without which this project
would not have been successfully completed.I am grateful for the inspiration,
encouragement and wisdom of many resources people who helped me to bring
this report into life.

PARAG S.AKOLE

(M.B.A. FINANCE)

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INDEX
Sr.No. Topic Page No.
I Introduction 06-08
1.1 Introduction of Project
1.2 Purpose of the study

II Bank Profile 09-20

2.1 About Bank
2.2 Mission,Vision & History
2.3 Products of Organization

III Theoretical Background 21-39

IV Research Methodology 40-44

3.1 Objective of the study
3.2 Scope of the study
3.3 Primary & secondary Data
3.6 Limitation of the Study

V Literature Review 45-47

VI Analysis & Interpretation of Data 48-60

VII Observation & Finding 61-62

VIII Suggestions & Recommendations 63-64

IX Conclusion 65-66

X Bibliography 67-69

XI Annexure 70-73

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CHAPTER NO.1
INTRODUCTION

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Introduction

 RETAIL BANKING INTRODUCTION:-

Retail banking is, however, quite board in nature it refers to the dealing of
commercial banks with individual customer, both on liabilities and assets sides of
the balance sheet. Fixed, Current/Saving accounts on the liabilities side and
mortgages, loans on the assets side are the more important of the products offered
by banks. Related ancillary services include depository service, debit card. Retail
banking refers to provision of banking services to individuals and small number
of low value transactions. This is in contrast to wholesale banking where the
customers are large, often multinational companies, governments and
government enterprise, and the financial institution deal in small numbers of high
value transactions. The concept is not new to banks but is now viewed as an
important and attractive market segment that offers opportunities for growth and
profits. Retail banking and retail lending are often used as synonyms but in fact,
the latter is just the part of retail banking. In retail banking all the needs of
individual customers are taken care of in a well-integrated manner.

 RETAIL BANKING

“It refers to banking in which banking Institutions execute transactions

directly with consumers. Service offered includes Savings & transactional A/C s,
mortgages, personal loan, debit cards, credit cards.”
In retail banking all the needs of individual customers are taken care of in
a well-integrated manner. Retail banking refers to provision of banking services
to individual & small number of low value of truncation. This is a construct to
wholesale banking where the customer is lagers, often multinational companies,
government & government enterprises.

 Purpose of the Study:

The retail banking performance study of The Jalgaon Janata Sahakari bank is helpful to-

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1) To Bank :
There is great need for such study as the study conducted brings into focus on the
evaluation of various retail banking products and measure the level of customer
satisfaction, which suggest the areas of improvement.

2) To Researcher:
It is helpful for the researcher to get practical knowledge of working of bank in
retail banking and understand the theoretical concepts.

3) To Society:
Today there are number of institutions / banks, which offers various services to
individuals at retail banking level. It will be helpful for the individuals to take
their decision by observing the performance of various bank/institution.

 Today’s retail banking sector is characterized by three basic

characteristics:

o Multiple products(deposits,credit cards,insurance,investment and securities)

o Multiple channels of distribution(call centre,branch,internet)

o Multiple customer groups(consumer,small business,and corporate)

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CHAPTER NO.2
BANK PROFILE

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 BANK PROFILE

Jalgaon Janata Sahakari Bank Ltd.Jalgaon(Head office) is one of the the

leading banks in our banking industries.It is a governmental
enterprise,Established on 20thJan,1979.It has complete 34 years successfully
operations abroad.Jalgaon Janata Sahakari Bank Ltd.Jalgaon trusties who belongs
to high class society.Branches all over Maharashtra Places.Its Bank customer
more than 25 billion included Maharashtra Jalgaon Janata Sahakai Bank
Ltd.Jalgaon network of 38 branches in Maharashtra abroad.Janata Bank had
seven subsidiaries two representative office one joint venture Bank has 9 offices
spread over 20 Maharashtra Government of India continuous to hold 66.83%
ownership in the bank.In the Bank staff member more than 7000.

This bank has various accepting deposits & advancing loan facilities.Thus
providing the way for economically backward and needy borrowers to propose
Jalgaon Janata Sahakari Bank Ltd.Jalgaon act’s as a balancing centre for all
corporate acts as a co-operative body within the Maharashtra to do their surplus
functions.

Jalgaon Janata Sahakari Bank Ltd. Jalgaon also provides concession loan
facilities for education of student.This bank also provides various small scale
industries plan’s,Two wheeler loan,Jalgaon Janata Sahakari Bank Home loans
against various government security overall against property etc,The Jalgaon
Janata Sahakari Bank has the logo of “JJSB”

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 Branch profile:-
1) The Jalgaon Janata Sahakari Bank Ltd. Has started its operation at Savda Branch
on 04th March 1995 the RBI license issued to the branch from (RBI license no.
UBD/MRO/BSSI/368J/07.02.414/2006.07).
2) Total 07 Staff members were working at Savda branch. The branch was headed by
Branch Manager Mr.Vilas S. Kulkarni at the time of audit. The brief summary of
staff members working at branch was as follows.

a. Branch manager : 1
b. Banking Officer : 4
c. Cashier : 1
d. Clerk : 1

3) Internal Audit of Savda branch was completed and reports are available up to
31March 2016. Bank Employes were as Internal Auditors of the Branch. The
compliance report of internal audit was send by branch up to 31 March 2016. We
have observed that the compliance report of Satutory Audit observation was
generally satisfactory.

4) The branch has appointed Four Pigmy Deposit Agents (small Saving Agent) for
collecting small saving deposit for branch. The Security Bonds/ Agreement were
executed with these agents. The deposit of Rs. 45000 was collected from each such
agent. The commission was paid 2% of deposit collected by the agent.

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Staff Of the Bank

Sr Name of the Employess Designation

No.
1. Mr. Vilas S.Kulkarni Branch Manager

2. Mr. Shrikrishna S. Gade Banking Officer

3. Mr. Ashok M. Narkhede Deputy Manager

4. Mr. Arun Rava Baviskar Banking Officer

5. Mr.Dilip Wankhede Cashier

6. Mr. Subhash Mankar Banking Officer

7. Mr.Sandip R. Kulkarni Attendent

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 Available Facility:

1. LIC Schemes/Policy
2. Rupay Debit Card
3. NEFT – National Electronic Funds Transfer
4. RTGS-Real Time Gross Settlement
5. Fund Transfer/Withdrwal Between Own Accounts
6. Direct Tax Payment through ATMs
7. E-Return / E-Payment
8. SMS Facility
9. Pan Card Facility
10. Internet Banking

 Advantages of Debit Card

1. Provides 24 hours services

2. Gives convenience to bank’s customers
3. Reduces the workload of bank’s staff
4. Provide service without any error
5. Beneficial for travelers
6. Privacy in banking transactions

 Vision, Mission and History:

Vision, mission and values are the beacon lights by which organization world
over set their strategies and then align their everyday priorities.
Together these statements define the essential organization its purpose, its
philosophy and its form.

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 Vision:

 The vision acts as a source of constant inspiration, a guiding light for the future.

 The vision statement presents a picture of the desirable future.

 Mission:

 The mission puts the vision in action.

 It is what you do to actualize your vision: your plans, your strategies, your targets,
your numbers, and your activities.

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Board of Directors
(From 2009-2014)

Sr. No. Name of Director Qualification Designation

1. Dr.Shri.A.R.Acharya M.D.DGO Founder Chairman

2. Shri. Sanjay C. Birla DCE Chairman

3. Shri Anil G.Rao M.Com.,MCM, Vice Chairman

F.C.A (Upto Sept-2013)

4. Shri Avinash S.Sharma M.Com Vice Chairman

(From Sept-2013)

5. CA Shri.S.K.Deshpande M.Com.,F.C.A., Director

DISA

6. CA Shri.Jayesh Doshi B.Com., Director

F.C.A

7. Dr.Shri.P.D.Jadhav M.B.B.S., Director

M.S.

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8. Shri.Suhas Prabhudas B.Com. Director

Wani

9. Shri.Wamanrao Sakhre ----- Director

10. Shri. Dilip Patil ----- Director

11. Shri. Ramesh Mandhvani ----- Director

12. Shri. Lalit Yashwant ----- Director

Chaudhari

13. Shri.BanilalKisan Andore ----- Director

14. Shri.Ravindra Pundalik ----- Director

Shinde

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15. Sau.Savitri Ravindra ---- Director

Salunke

16. Sau.Vinda Vijay Naik ---- Director

17. Sau.Sangeet Atul Mahajan ---- Director

18. Shri.Vidyadhar Balchandra M.Com., Managing

Dandawate L.L.B. Director
G.D.C.&A.,
C.A.I.I.B.
19. Adv.Shri Achyutrao ---- Expert Director
Wamanrao Atre

20. CA.Shri.Dipak Anant ---- Expert Direcctor

Atrawalkar (From May-2014)

21. Shri.Ujjwal Sadashiv ---- Employee

Kulkarni Representative

22. Shri.Kapil Pandit Choube ---- Employee

Representative

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PERFORMANCE HIGHLIGHTS OF THE BANK:

(Rs. in Cr.)

Sr. Particulars 2014-2015 2015-2016 Change %

NO.
1. Capital 114.53 138.48 17.29%

2. Aggregate Deposits 1088.10 1169.65 07.49%

3. Aggregate 724.99 768.41 05.99%

Loans/Advances
4. Investment 371.42 473.92 21.63%

5. Net Profit 7.58 7.88 03.96%

6. Net NPA 1.44% 2.46% 43.62%

7. CRAR 11.67% 12.01% 01.02%

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 MILSTONES SET BY BANK

DATE Achievements
20 Jan,1979 Bank Establishment

1 Sept,1983 First branch open in market yard

6 Nov,1990 Our charitable trust Jalgaon Janata Co-bank

Keshav Smruti,
Pratistanregistared
20 Jan,1991 First computer installed danabazaar
1 Mar,1993 Area operation expanded in Dhule district

1 Mar,1993 Amalgamation of Dhule people co- copreative bank

1 Sept,1997 Our company Jalgaon Janata Infotech pvt Ltd.has fully

computerized First branch(Market yard)
13 Dec,1998 Twelve hours an all seven days service started at station road
Branch
20 Jan,1998 Cross 100 crore deposits
29 Jan,1998 Bank attend schedule bank status

26 Mar,2000 First ATM instakked at station road branch

10 Sept,2000 All branches are fully computerized

31 Mar,2000 Cross 200 crore deposits

15 Jully,2000 Nasik branch opened

08 Nov,2002 Fort Thane branch opened

10 Nov,2002 Aurangabad branch open

10 Nov,2002 Cross 300 crore deposits

2003-2004 Completed Silver Jublie year

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 Special features of Jalgaon Janata Co-opreative Bank

1.Computerized Service.

2.ATM Service.

3.Depository Services.

4.Loans& Advances.

5.LIC Policies.

6.Electric Bill Collection.

7.Online Banking.

8.Inter-Bank Transactions.

9.Core Banking Services.

10.Mutual Fund Investment.

11.Safe Deposits & Locker services

12.Demand Draft Services

Of course,the bank has to run according to directive principles as set up Reserve bank of
India but becoming a successful bank has been possible only because of various authorities
& employee function with a visionary maturity while taking any decisions regarding policy
about advancing loans & deposit of money.

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CHAPTER NO. 3
THEORETICAL
BACKGROUND

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INTRODUCTION OF BANK
 BANKING -:

 Definition Of a bank :-

“The nature and significance of a bank can be known by the variety and
magnitude of the functions it performs. It is highly difficult to define the term
‘bank’ as the concept itself is rapidly changing in-view of changes in socio-
economic conditions, government policies etc. However, a few definitions will
no doubt help in better understanding the nature of banking.”

 What is Bank:
Banking has been defined by section 5 of the Banking Regulation Act and means
:-

 Accepting deposits of money from public.

 For the purpose of lending or investment and deposits are repayable on demand or
otherwise by cheque, draft, and order or otherwise. It should be noted that company
which is engaged in manufacturing goods and for the purpose of financing business
accepts deposits from the public should not be deemed to transact business of
banking.

 In addition to banking business, a bank is permitted of the Banking Regulation

Act to engage in certain class of business which is incidental to the business of
banking. the Banking Regulation Act prohibits a bank from buying and selling or
dealing in goods except in connection with realization of a security held by it or
in connection with the business of collections or negotiating bills of exchange.

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I.Primary Functions :-
Initially, collection of deposits and granting advances used to be the
primary functions of a commercial bank. However, in modem economics creation
of credit and foreign exchange dealings are also treated as primary functions of a
bank.

A] Collection of Deposits:-
The most important primary function of a commercial bank is collection
of deposits. These deposits may be in the form of :

1) Fixed Deposits :-
A fixed deposit, also known as term deposit, is one where a customer
keeps a specified amount with the bank for a fixed period. Fixed deposit holder
gets interest on the deposit for that period. However, if he withdraws before the
expiry of the stipulated period, he loses all or a major part of the interest earned
on that deposit. Generally, the rate of interest on fixed deposits is the highest
compared to that on other three forms of deposits.

2) Saving Bank Deposits :-

Savings bank deposits can be opened with a very small amount. Though
money in the savings account can be withdrawn at will, there are, however,
certain limitations on the total number of withdrawals per week. The rate of
interest on this deposit is normally higher than that of current deposit but less than
fixed deposit. By mobilizing small amounts from large number of individuals
through savings, bank deposits, banks are generally able to gather huge amount
of funds.

3) Current Account Deposits :-

It is also known as demand deposit. The bank opens this account on an
initial deposit of Rs. 100 but only after satisfying itself about the credit worthiness
of the customer. There are no limitations on the amount of deposit and number of
withdrawals. Normally no interest is paid on current deposit.

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4) Recurring Deposits :-
In recurring deposit the customer open an account and deposit a certain
sum of money every month. After a certain period, say for 1 year, 3 year or 5 year. The
accumulated amount along with interest is paid to the customer. It is very help full to
middle and poor section of the people in society. The interest paid on such deposit is
generally on cumulative basis. This deposit system is useful mechanism for regular savers
of the money. Rate of interest is applicable as per fixed deposits rates.

B] Loans and Advances :-

Normally commercial banks grant short-term loans and advances to
1) Business 2) Industry, 3) Agriculture and allied activities, and 4) Export and
import trade. Let us understand the nature of such loans and advances.

1) Loans to business and trade :-

Commercial banks grant loans on short-term basis. Business bans are
divided into (i) overdrafts, (ii) cash credits, (iii) direct loans, and (iv) bills
discounted.

i) Overdraft is an arrangement by which the borrower is allowed to withdraw from his

account more than what is deposited in his account. It is granted against collateral
security. Interest is charged on he amount overdrawn.

ii) Cash Credit is granted against the security of goods or personal security of one or more
persons other than the principal borrower. Interest is charged only on the amount made
use of by the customer under this management.

2) Loans to industry :-
Banks grant loans and advances to industry for its working capital
requirement. They grant the loans to industry in the form of overdraft, cash credit,
and direct loans.
3) Loans to agriculture and allied activities :-
Banks provide short-term credit to agriculture and its allied activities in
the form of crop loans, loans for irrigation, land development, purchase of cattle,
etc.

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4) Export and import trade :-

Commercial banks also grant loans and advances for export and import
trade. They grant direct loans, guaranteeing deferred payments, discounting bills
etc, for the purpose.

II. Secondary Functions :-

For the convenience of customers, banks also perform a host of non-
banking functions called secondary functions. These functions can be divided into
two categories: 1) Agency services, and 2) Public utility services.

A) Agency Services :-
Various functions performed by a banker as an agent on behalf of the
customer are called agency services. These agency services include: collection of
cheques /drafts, payments, sale and purchase of securities, trustee, executor and
attorney, and correspondence.

1. Collections :-
Commercial banks take up collection of promissory notes, cheques, bills,
dividends, subscriptions, rents, etc., on behalf of their customers as agents. The
bank charges, service charges’ for rendering these services to its customers.
2 Payments :-
Banks also accept the responsibility to pay insurance premium, rents,
taxes, electricity bills etc. periodically on behalf of its customers for which they
charge commission.

3 Sale and purchase of securities :

Customers sometimes approach the bankers for sale and purchase of their
securities. For these services the banks charge commission.

4 Trustee, executor and attorney :

Banks also act as trustee, executors and attorneys on behalf of their
customers. As a trustee, the banker takes care of funds of the customer, helps in
proper management of trust. As executor, he carries out the desires of the
deceased customer in terms of the will left by him. As an attorney, the banker
signs transfer forms and documents of behalf of the customer.
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5 Correspondent :
Bank serves as correspondents, agents of representatives of their
customers. They obtain passports, traveler tickets, etc.

o General Services :-

In addition to agency services, commercial bank performs various

services useful to the customer. These services include letters of credit, draft
facilities, underwriting, guarantee for deferred payments, locker facilities,
references, business and statistical information and foreign exchange dealings.

a) Letters of credit :-
Banks issue letters of credit to their customers. These are useful to traders to buy goods
from foreign countries on credit.
b) Draft facilities :-
Banks issue drafts to customers and enable them to transfer funds from
place of place.

c) Underwriting :-
Underwrite share capital and debenture capital to be raised by
government, joint stock companies, etc.

d) Guarantee for deferred payments :-

Importers may not be in a position to pay for their imports immediately.
Exporters may allow then to pay in future but only if the payment is guaranteed,
in such cases banks may give guarantee for deferred payments.
e) Referee:-
Banks serve as referee to the financial standing, business reputation and
responsibility of their customers.

f) Business and statistical information :-

Banks collect arid classify information regarding possibilities of trade,
commerce and industry and provide the same to their customers. Some banks also
publish bulletins of information for use by the general public.

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R.B.I. NORMS FOR SCHEDULED BANK

 The Gov. of India, by their Notification No. 15/10/87BO.ii, Ministry of Finance, Dept. of
Economic Affairs (Banking Division) dated 5th April, 1988, notified that the primary Co-
operative bank, which are licensed & whose demand & time liabilities are not less than Rs.50
cores, as financial institutions for the purpose of Sec.42 (6)(a)(iii) of the R.B.I. Act 1934.

 According, the RBI vides their Notification No. 94/A.9/88-89, dated 18th August, 1988
directed inclusion in the second schedule to the RBI Act 1934, eleven Primary Co-operative
Banks with effect from 1st Nov.1988. Of this, one of the Banks has gone out of co-operative
sector. Another three primary Co-op. banks were included in the second schedule with effect
from 1st Dec. 1990.

 The Gov. of India, by a fresh Notification No.F.10(12)/93-Dev dated 24th Sep.1993 notified
that hereafter only such of the Primary Co-operative banks which are licensed and whose
demand & time liabilities are not less than Rs.100 crores shall quality to be included in the
second schedule. Thereafter, from time, eligible Primary Co-op. Banks have been included in
the second schedule to the RBI Act, 1934.

 As per the Gov. of India Notification F.No.14-13/2003-AC dated 30th Oct.2003 that
henceforth (with effect from 1July 2003) only such of the primary co-operative banks which
are licensed & whose demand & time liabilities are not less than Rs.250 corer, qualify to be
treated as financial institutions for the purpose of sub-clause(iii) of clause (a) of sub-section
(6) of section 42 of the Reserve Bank of India Act.1934, i.e., for the purpose of inclusion of
the primary co-operative banks in the second schedule to the RBI of India Act, 1934.

 The conferment of scheduled status on the bank has certain advantages. At the same time,
it casts greater responsibility on the banks in the maintenances of book of account &
submission of returns.

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RETAIL BANKING
“Retail banking is typical mass-market banking where individual customers use local
branches of larger commercial banks.Services offered include: saving and checking
accounts,mortages,personal loans,debit cards,credit cards,and so.”

The Retail Banking environment today ischanging fast.The changing customer

demographics demands to create a differentiated application based on scalable techonology
,improved service and banking convenience.Higher penetration of techonology and increase
in global literacy levels has set up the expectations of the customer higher than never
before.Increasing use of modern technology has further enhanced reach and
accessibility.

The market today gives us a challenege to provide multiple and innovative contemporary
services to the customer through a consolidated window as so to ensure that the bank’s
customer gets “Uniformity and Consistency” of services delivery across time and at every
touch point across all channels.The pace of innovation is accelerating and security threat has
become prime of all electronic transactions.High cost structure rendering mass-market
servicing is prohibitively expensive.

Present dat tech-savvy bankers are now more looking at reduction in their operaring costs by
adopting scalable and secure technology thereby reducing the response time to their
customers so as to improve their client base and economies of scale.

The solution lies to market demands and challenges lies in innovation of new offering with
minimum dependence on branches-a multi-channel bank and to eliminate the disadvantage
of an inadequate branch network.Generation of leads to cross sell and creating additional
revenues with utmost customer satisfaction has become focal point worldwide for the success
of a bank.

 BENEFITS OF RETAIL BANKING

Traditional leading to the corporate are slow moving along with high NPA risk,treasure
profits are now loosing importance hence Retail Banking is now an alternative available for
the banks for increasing their earning.Retail Banking is an attractive market segment having
a large number of varied classes of customers.Retail Banking focuses on individual and small
units.

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Customize and wide ranging products are available.The risk is spread and the recovery is
good.

Surplus deployable funds can be put into use by the banks..Products can be
designed,developed and marketed as per individual needs.

SCOPE FOR RETAIL BANKING IN INDIA

o All round increase in economic activity.

o India has 200 million households and 400 million middleclass population more than 90%
of the savings come from the house hold sector.Falling interest rates have resulted in a
shift. “Now People Want To Save Less And Spend More.”
o Nuclear family concept is gaining much importance which may lead to large savings,large
number of banking services to be provided are day-by-day incrasing.
o Increase in the purchasing power.The rural areas have the large purchasing power at their
disposal and this is an opportunity to market Retail Banking.
o Tax benefits are available for example in case of housing loans the borrower can avail tax
benefits for the loan repayment and the interest charged for the loan.
o ADVANTAGES AND DISADVANTAGES OF RETAIL BANKING

o ADVANTAGES
Retail banking has inherent advantages outweighing certain disadvantages.

Advantages are analyzed from the resource angle and asset angle.

RESOURCE SIDE

o Retail deposits are stable and constitute core deposits.

o They are interest insensitive and less bargaining for additional interest.
o They constitute low cost funds for the banks,
o Effective customer relationship management with the retail customers built a strong
customer base.
o Retail banking increase the subsidiary business of the banks.

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ASSETS SIDE

o Retail banking results in better yield and improved bottom line for a bank.
o Retail segment is a good avenue for funds deployment.
o Consumer loans are presumed to be lower risk and NPA perception.
o Helps economic revival of the nation through increased production activity.
o Improves lifestyle and fulfils aspirations of the people through affordable credit.
o Innovative product development credit.
o Retail banking involves minimum marketing efforts in a demand-driven economy.
o Diversified portfolio due to huge customer base enables bank to reduce their dependence
on few or single borrower.
o Banks can earn good profits by providing non fund based or fee based services without
deploying their funds.
o DISADVANTAGES
o Disadvantages own and new financial products is very costly and time consuming for the
bank.
o Customers now-a-days prefer net banking to branch banking.The banks that are slow in
introducing techonology-based products,are finding it difficult to retain the customers who
wish to opt for net banking.
o Customers are attracted towards other financial products like mutual funds etc.
o Though banks are investing heavily in technology,they are not able to exploit the same to
the full extent.
o Major disadvantages are monitoring and follow up of huge volume of loan accounts
inducing banks to spend heavily in human resource department.
o Long term loans like housing loan due to its long repayment term in the absence of proper
follow-up,can become NPAs.
o The volume of amount borrowed by a single customer is very low compared to whosale
banking. This does not allow banks to exploit the advantage of earning huge profits from
single customer as in case of wholesale banking.

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OPPORTUNITIES OF RETAIL BANKING

Retail banking has immense opportunities in a growing economy economy like India.As the
growth story gets unfolded in India,retail bank is going to emerge a major driver.

The rise of Indian middle class is an important contributory factor in this regard.The
percentage of middle to high-income Indian households is expected to continue rising.The
younger population not only wields increasing purchasing power,but as far as acquiring
personal debt is concerned,they are perhaps more comfortable than previous
generations.Improving consumer purchasing power,coupled with more liberal attitudes
towards personal debt,is contributing to India’s retail banking segment.

The combination of above factors promises substantial growth in retail sector,which at

present is in the nascent stage.Due to bundling of services and delivery channels,the areas of
potential conflicts of interest tend to increase in universal banks and financial
conglomerates.Some of the key policy issues relevant to the retail-bankinng sector are:
financial inclusion,responsible lending,and access to finance,long-term savings,financial
capability,consumer protection,regulation and financial crime prevention.

CHALLENGES TO RETAIL BANKING IN INDIA

o The issue of money laundering is very important in retail banking.This compels all the
banks to consider seriously all the documents which they accept while approving the loans.
o The issue of outsourcing has become very important in recent past because various core
activities such as hardware and software maintence,entire ATM set up and
operation(including cash,refilling) etc.,are being outsourced by Indian banks.
o Banks are expected to take almost care to retain the ongoing trust of the public.
o Customer service should be at the end all in retail banking.Someone has rightly said, “It
takes months to find a good customer but only seconds to lose one.”Thus,strategy of
Knowing Your Customer(KYC) is important.so the banks are required to adopt innovative
strategies to meet customer’s needs and requirement in terms of services/products etc.
o The dependency on technology has brought IT departments’ additional responsibilities and
challenges in managing,maintaining and optimizing the performance of retail banking
networks.It is equally important that banks should maintain security to the advance level
to keep the faith of the customer.

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o The efficiency of operations would provide the competitive edge for the success in retail
banking in coming years.
o The customer retention is of paramount important for the profitability if retail banking
business,so banks need to retain their customer in order to increase the market share.
o One of the crucial impediments for the growth of this sector is the acute shortage of
manpower talent of this specific nature,a modern banking professional,for a modern
banking sector.
o If all these challenges are faced by the banks utmost care and deliberation,the retail banking
is expected to play a very important role in coming years,as in case of other nations.

STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

o Constant product innovation to match the requirement of the customer segments

The customer database available with the bank’s is the best source of their demographic
And financial information and can be used by the banks for targeting certain customer
Segments for new or modified product.The banks should come out with new products in
the area of securities,mutual funds and insurance.

o Quality service and quickness in delivery

As most of the banks are offering retail products of similar nature,the customers can
Easily switchover to the one,which offers better service at comparatively lower costs.The
Quality switchover to the one,which offers better service at comparatively lower
costs.The quality of switchover to the one,which offers better service at comparatively
lower costs..The quality of service that banks offer and the experience that clients
have,matter the most.Hence,to retain the customers,banks have to come out with
competitive products satisfying the desires of the customers at the click of a button.

o Introduction of new delivery channels

Retail customers like to interface with their bank through multiple

channels.Therefore,banks should try to give high quality service across all service
channels like branches.Internet,ATM,etc.

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o Tapping of unexploited potential and increasing the volume of business

This will compensate for the thin margins.The Indian retail banking market
still remains largely untapped giving a scope for growth to the banks and financial
institutions.With changing psyche of Indian Consumers,who are now comfortable
with the idea of availing loans for their personal needs,banks have tremendous
potential lying in this segment.Marketing departments of the banks be geared up
and special training be imparted to them so that banks are successful in grabbing
more and more of retail business int the market.

o Infrastucture outsourcing

This will help in lowering the cost of service channels combined with quality and
quickness.

o Detail market research

Banks may go for detail market research,which will help them in knowing
what their competitors are offering to their clients.This will enable them to have
an edge over their competitors and increase their share in retail banking pie by
offering better products and services.

o Cross-selling of products

PSBs have an added advantage of having a wide network of branches,which gives

them an opportunity to sell third-party products through these branches.

o Business Process Outsourcing

Outsourcing of requirement would not only save cost and time but would help the
banks in concentrating on the core business area.Bank can devote more time for
marketing,customer service and brand building. For example,Management of ATMs can
be outsourced.This will save the banks from dealing with the intricacies of technology.

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SPECIAL FEATURES OF RETAIL CREDIT

One of the prominent features of Retail Banking products is that it is a volume driven
business.Further,Retail Credit ensures that the business is widely dispersed among a large
customer base unlike in the case of corporate lending,where the risk may be concentrated on
a selected few plans.Ability of a bank to administer a large portfolio of retail credit products
depends upon such factors:

o Strong credit assessment capability

Because of large volume good infrastructure is required.If the credit assessment itself
is qualitative,than the need for follow up in the future reduces considerably.
o Sound Documentaion
A latest system for credit documentation is necessary pre-requisite for healthy growth
of credit portfolio,as in the case of credit assessment,this will also minimize the need to
follow up at future point of time.
o Strong possessing capability
Since large volumes of transactions are involved,today transactions,maintence of
backups is required.
o Regular constant follow-up
Ideally,follow up for loan repayments should be an ongoing process.It should start
from customer enquiry and last till the loan is rapid fully.
o Skilled human resource
This is one of the most important pre-requisite for the efficient management of large an
diverse retail credit portfolio.Only highly skilled and experienced man power can
withstand the river of administrating a diverse and complex retail credit portfolio.

o Technological support
This is yet another vital requirement.Retail credit is highly technological intensive in
nature,becaude of large volumes of business,the need to provide instantaneous service to
the customer large,faster processing,maintaining database.

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FUTURE OF RETAIL BANKING

Retail banking has significant past and glorious future over the years.Retail
banking has proved as an effective tool not only to improve the bottom lines of
the banks concerned but also to significantly contribute to the development of the
individual consumers availing the services or products in particular and to the
overall development of the society in general with the needs of the consumers
ever multiplying.There is definitely a vast scope for the furtherance of the retail
banking business.

The society is made of the individuals and the environment surrounding him.
As development takes place in the society,the needs of the people grow faster
than ever.The wealth creation and its professional management are yet another
distinct advantage the society or nation can derive from Retail Banking.The depth
of the untapped resources in the retail segment is not yet measured.These
resources could be channelized for nation building.

On the whole,looking ahead,the prospects of retail banking are brighter than

ever and the bankers have to give continued thrust to this area of
banking.Thus,with the consumers ever multiplying needs there is definitely a vast
scope for the furtherance of the retail banking business.Operationally,there is a
possibility that technology go beyond nerely reducing the cost & improving the
quality of current products.It may prove possible,even profitable,to combine in
new ways.

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Retail Banking in detail stores way…

AS IS/BEFORE TO BE/NOW
PRIORITY Credit & Risk Customers & Retailing

APPROACH Secure & conventional Customer centric retail

location for financial
transactions
(Banks dictate terms)
CUSTOMER BASE Corporation & other banks
banking
(Customer is King)
Retail
consumers,corporate
clients,other banks

FORMATS Single Entity Multi-location,multi branch

MORE EMPHASIS ON Improving transactional Providing service and

efficiency value to consumers

CUSTOMIZATION Rarely there Highly customized

o RETAIL BANKING SERVICES

Customer Service:

The JALGAON JANATA BANK with its focus on customers has defined
service standards by deploying highly customer friendly system and producers.
The JJSBL Bank is consistently trying to achieve highest level of customer
satisfaction through honesty and transparency. Bank is providing and
implementing banking services by putting the priority and urgency of the
customer at first place.

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A. Bio + Card based ATM:Bank is providing dual i.e. Bio + Card based ATM.At present 16
ATMs are installed at various branches. In near future bank will also provide ATM access
across India through ATMs links with other bank.

B. SMS Alerts: After registration of SMS Alert, customer get information about account
balance, statement etc. through SMS system. In addition to this, various alerts are available
under SMS Banking facility like cast transactions, bills or cheques, clearing realization etc.

C. E-mail: Functionalities offered on e-mail includes Account Statement, Bills Realization

etc. fortnightly or weekly or monthly as per choice of customer.

D. Website: At any time customer can get detailed information about bank’s various products,
interest rates, service charges etc. on website www.jjsbl.com

E. PAN Card Distribution: In today’s economically developed world, PAN Card has
become basic need of every individual. Bank with the help of UTI Technologies, Mumbai,
is providing this service.

F. LIC: Bank has got corporate agency of LIC and hence various schemes for secured future
of you and your family is available with the bank.

G. RTGS and NEFT: The service for quick transfer of money is available. We can transfer
money up to Rs. 200000 in NEFT. And through RTGS system we can transfer above Rs.
200000. RTGS system takes 1 day means 24 hours for cash transfer. And NEFT takes 2
days means 48 hours for transfer.

H. Electric Bill Collection: The service is available at Navipeth, Danabajar, Ganesh Colony,
and Savda branches.

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 Employee Benefits:

The disclosure required under AS-15 “Employee Benefits” issued by ICAI is

given below:

a) Provident fund and Pension:Retirement Benefits in the form of P F and pension are a
defined contribution scheme and the contribution is charged to Profit and Loss Account in
the year when the contribution to the fund is due. There is no other obligation other than
the contribution payable by the bank.

b) Gratuity: The employee’s gratuity fund scheme managed by LIC. The scheme is a defined
contribution scheme and the contribution charged to the Profit and Loss Account in the
year when the contribution to the fund is due.

c) Leave Encashment: It is a accumulating (vesting) compensation, the benefit is also in a

form of defined contribution scheme. The scheme is managed by LIC and contribution is
paid to LIC is charged to Profit and Loss Account in the year when the contribution is
made.

d) Mediclaim Policy: The benefit is a defined contribution scheme; Premium is paid to

Oriental Insurance Co. Ltd., for the sum insured up to Rs. 50000for each eligible employee.
Bank has no further obligation beyond payment of premium for said policies.

 DEBIT CARD ATM MACHINE

The banks today have ATM facility under this system the customer can
withdraw their money easily and quickly and 24 hours a day. This is also known
as “All Time Money”. Customers under this system can withdraw funds i.e.
currency notes with the help of certain magnetic card issued by the bank and
similarly deposit cash or cheque for credit account. The card is inserted in ATM
machine. The machine sensing equipment identifies the account holder and asks
for his identification code number. Every account holder is given a separate code
number through computer and it is not known even to bank staff. This code
number is like the secret code number available in telephone connection for use
of STD facility. When the number is asked by the ATM the card holder identifies
him or she by pressing relevant number buttons on the machine.

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The bank JJSBL Bank has Bio-metric ATM machine which provide higher
security to the customer rather than security code. The JJSBL Bank has 15 ATM
machine in Jalgaon as well as outside where the bank has branch.

Recently JALGAON JANATA BANK ATM connected with 1, 11,150 of nearly 151 banks.
This system is also known as connectivity system of ATM.

 DEBIT CARD
A debit card is a card that has direct access to our bank account. The card is issued by our
bank. Whenever we use our debit cards, our bank account is debited immediately unlike
credit cards we don’t enjoy any credit period and therefore the debit cards does not have
minimum income eligible criteria;

1. It is a combination of a cheque and ATM cards. Therefore, there are no fees for using the
ATM for cash withdrawal or as debit cash for purchase.
2. The debit card service is meant for withdrawal against the balance already available in the
designed account.
3. A debit card is more affordable than a credit card we just use our bank account our
transaction.
4. No credit period our bank account is debited immediately.
5. No credit check is required to get debit card.
6. Use of the card is terminated without notice upon the death bankruptcy or insolvency of
the cardholder or for other valid reason.
7. Spending is limited to our balance.

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CHAPTER NO.4

RESEARCH METHODOLOGY

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o Research Methodology:-

Research Methodology is a process of collecting the information &

helps to find out the solutions to the topic selected by the researcher. It is a
systematic way of presenting information.

Once the research problem is formulated and the research design is

determined, the next task is data collection. Data are facts, figures and other
relevant materials past & present serving as basis for study & analysis.
Research Methodology includes 3 Stages. They are as follows:
 Analysis of data.

 Interpretation of data.

 Presentation of data.

 Objectives of Research:
The purpose of research is to discover answers to questions
through the applications of scientific procedures. The main aim of research is to
find out the truth which is hidden and which has not been discovered yet. Through
each research study has its own purpose, we may think of research objectives as
falling in to numbers of following broad grouping:

a) To study the retail banking in detail.

b) To study the marketing strategy for attracting the customer to the banking
services.

c) To know the overview of retail banking product.

d) To know various facility provided by Jalgaon Janata Sahakari Bank in retail
banking sector.
e) To study the performance of Jalgaon Janata Sahakari Bank in retail banking
sector and estimate the future growth of it.
f) To study the performance of various types of loan.

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The task of data collection being after a research problem has been
defined and research design or plan chalked out. While deciding about the method
of data collection to be used for the study, the researcher should keep in mind two
types of data i.e. primary and secondary. The primary data are those collected
afresh and for the first time and thus happen to be original character. The
secondary data, on the other hand are those which have already been collected by
someone else and which have already been passed though the statistical process.
The method of collecting primary and secondary data differ since primary data
originally collected, while in case of secondary data the nature of the data
collected work is merely that of complication.

SCOPE OF RESEARCH-

1. The study covers a period of three years from 2013-14 to 2015-16.

2. Bank has undergone rapid changes in the past three years due to many policy decisions
relating to capital markets, banking sector & licensing policy.
3. The study is limited to only The JJSBL Bank. It focuses the loans provided by the bank

 Collection of data :-

The data is collected on the basis of pre-determined set of

objectives, scope & purpose for getting direction. The data is collected in
various types as stated below.

o Analysis of data :-

After the data being collected it is very carefully analyzed in order

to sort out the required data. This gives various parameters on which
evaluation of the research can be done.

 Interpretation of data :-
The carefully analyzed and short listed data is then interpreted in the forms
of pie charts and graphs for absolute clarity. This interpretation of data helps
in finding out the result and conclusion of the project.

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 Presentation of data:-

The data collected and analyzed carefully is presented in the form

of Practical Project.

 Primary And Secondary Data

Primary data

Data that is collected by the researchers first hand is known as

Primary Data. It can be collected through observational studies, market
surveys or experiments. The provider or the source is termed as
‘Respondent’. A respondent may give information passively i.e. through
mere observation of respondent behavior or actively i.e. through written or
spoken response.Basic methods/sources of collecting Primary data:

PRIMARY DATA: -

1. Discussion with branch manager

2. Discussion with project guide.
3. Discussion with other employees of the branch .
4. Interaction with customers of bank.
5. Interaction with small saving agents.

Secondary data: -
Secondary data is the data that have been already collected by and readily available from
other sources. Such data are cheaper and more quickly obtainable than the primary data and
also may be available when primary data cannot be obtained at all.

Some of the secondary means of data collection are magazines,Internet,Company data

sources,News Papers.

1.It is economical. It saves efforts and expenses.

2.It is time saving. It helps to make primary data collection more specific.

3.Help of secondary data, we are able to make out what are the gaps and deficiencies and what
additional information needs to be collected.
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4.It helps to improve the understanding the problem.

5.It provides the basis for the data that is collected by researcher.

Secondary data: -

1.Various books related to Retail Banking & Financial Management.

2.JJSBL banks annual report 2013-14 - 2015-16.

3.Web sites were used as the vital information of Retail Services.

4..Required data for making of project report has been collected from books,Internet.

Limitation of Project:

o This project is limited up to Savda Branch only.

o Authenticity relies on response given by the respondent.

o The information system is confidential & hence the banks records were not fully disclosed.

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CHAPTER NO.5

LITERATURE REVIEW

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 LITERATURE REVIEW:
Bahia, K and J Nantel (2000) - The paper suggested an alternative scale for
measuring service quality in retail banking. The study developed a scale called
as Banking Service Quality Scale which contained factors like effectiveness
and assurance, access, price, tangibles, service portfolio and reliability. This
model was found to be more reliable than SERVQUAL.

Gani A. Mushtaq Bhatt (2003)-The study is conducted to do a comparative study

of service quality of commercial banks and its dimensions in commercial banks.
SERVQUAL is used and sample size was 800 customers. The study found out
that CITI bank and Standard chartered bank are good in tangibility and in
reliability also they are good. In responsiveness parameter Indian banks are
inferior to foreign banks. In Assurance and empathy Indian banks are inferior.

Navdeep Aggarwal and Mohit Gupta (2003)- This study basically finds out
the primary dimensions and sub dimensions of service quality. Informal
structured interviews are conducted with branch managers and academicians to
formulate a banking service quality model. The study found out that service time
and personal interactions are very important along with ambience for service
quality.

Mushtaq M Bhat (2005)- This study finds out service quality parameters in
bank through SERVQUAL and influence of demographic variables . The study
was limited to SBI, PNB, Jammu and Kashmir bank Citi bank and Standard
Chartered Grind lay’s bank. Sample size was 800 and study found out that foreign
banks are better than Indian banks. SBI was found to be relatively poor on
reliability and responsiveness. Banks in Delhi were comparatively better in
service quality.

Joshua A J, V Moli, P. Koshi (2005)- The study evaluated and compared service
quality in old and new banks using sample size of 480. The study found out that
customers were satisfied in reliability, empathy and price and for other parameters

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the difference between expectations and perceptions were smaller than public
sector banks.

Mohammad et al(2005)- The study tries to develop a comprehensive model of

banking automated service quality taking into consideration unique attributes of
each delivery channel and other dimensions which influence service quality.

Raul and Ahmed(2005)-The study investigated customer service in public sector

banks in 3 districts in Assam and it was found that customers were
dissatisfied with the management, technology and interactive factors along
with high service charges. Communication gap was the root cause of poor
service and service was different in rural and urban sectors.

Sharma and Sharma (2006)-The study analyzed customer delight in urban

consumer banking. The study found out that customers were satisfied with loan
facilities, bank environment, routine work procedures, location, interest rates etc.
and were dissatisfied with loan formalities and promotion through media.

Sharma S. (2007)-The study did a comparison of public and private banks

with respect to perceptions of customers regarding service quality. It was found
out that service quality is associated with satisfaction and there was significant
difference between qualities of services provided by banks. Banks in smaller
cities are far behind big cities in this regard

Tracey Dagger ,Jillian Sweeney (2007)- The study consists of qualitative

research to investigate the effect of consumption stage on service quality
perceptions and then development of hypothesis. The findings indicate the
evidence that customers rely more heavily on attributes that are search based in
the initial stages of service experience and in later stages consumption becomes
important.

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CHAPTER NO.6

DATA ANALYSIS & INTERPRETATION

OF DATA

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DATA INTERPRETATION & ANALYSIS

1. Deposits of Jalgaon Janata Sahakari Bank LTD.(Savda

Branch)

Table No. 1 :Details of deposits

(Rs. in Lakh)
Deposit 2013-14 Percentage 2014-15 Percentage 2015-16 Percentage
Current 61.88 1.70% 61.64 1.52% 89.60 2.13%
Saving 735.31 20.23% 913.35 22.54% 975.36 23.20%
Fixed 154.40 4.24% 135.41 3.34% 159.81 3.80%
Recurring 29.56 0.81% 37.17 0.91% 40.21 0.95%
Reinvestment 969.53 26.67% 1053.76 26.00% 971.82 23.12%
Short term 1464.87 40.30% 1654.74 40.83% 1723.72 41.01%
Madhusanchay 215.42 5.92% 194.12 4.79% 240.73 5.72%
daily scheme
Mature 3.01 0.08% 1.76 0.04% 1.64 0.03%
Fixed(MFD)
Credit Bal in 0.77 0.02% NIL NIL NIL NIL
Loan and
Advance
Total 3634.75 100% 4051.95 100% 4202.89 100%

Source :- Annual Reports

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4300
4200
4100
4000
3900
2013-14
3800
3700 2014-15

3600 2015-16
3500
3400
3300

Total Deposits

 Interpretation :-
The deposits amount of Jalgaon Janata Sahakari Bank Ltd has increased
in the year 2015-16 as compared to 2013-14 by 13.51%. In 2013-14 total deposit
was 3634.75 Lakh, and in 2015-16 total deposit increased up to 4202.89 lakh.In
the Overall deposits, Short Term deposits are maximum in the three years and
Mature Fixed Deposit(MFD) are minimum in the three years. The increasing
trend in the deposit amount was observed due to following reasons:

1) Increase in no. of customers

2) Increase in interest rate
3) By giving more benefits to senior citizens.
4) Due to Good Costomer Relationship

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2. Loans of JalgaonJanataSahakari Bank LTD. (Savda Branch)

Table No. 2 :Details of Loans
(Rs. in Lakh.)

Particulars 2013-14 2014-15 2015-16

Loans/Advances 653.55 696.12 696.31

Source :- Annual Reports

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700

690

680
2013-14
670 2014-15
2015-16
660

650

640

630
Loans/Advances

 Interpretation :-
The amount of loan given of Jalgaon Janata Sahakari Bank Ltd has
increased in the year 2015-16 by 6.15 % as compared to 2013-14.In 2014-15 it
was 696.12 lakh due to increase in loan amount by 6.12 % as compared to
previous year but in 2015-16 the loan amount increased by only 0.23 % up to
696.31 lakhs. The increase in the advances of Jalgaon Janata Sahakari Bank Ltd
was due to following reasons:

1) More tie ups with companies

2) Less paper work and fast transaction time
3) Easy loan process

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3. Profit / Loss of Jalgaon Janata Sahakari Bank Ltd. (Savda Branch)

Table No.3 : Details of Profit / Loss
(Rs. in Lakh)

Particulars 2013-14 2014-15 2015-16

Profit/Loss 38.99 61.03 100.55

Source :- Annual Reports

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120

100

80 2013-14
2014-15
60 2015-16

40

20

0
Profit&Loss

 Interpretation :-
Net profit of the JalgaonJanataSahakari Bank Ltd bank has increased from 38.99 lakhs
in 2013-14 to 100.55 lakhs in 2015-16.In 2014-15 it raised by 61.22 % but in 2015-16 it
shows increment in net profit of 39.30 % only due to the following reasons:
1. In 2015-16 the outstanding interest was paid along with current interest payment
on deposits.
2. In the year 2015-16 loans were recovered successfully as well as NPA of the branch
reduced down.

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4)Various types of Loan offered by Jalgaon Janata Sahakari Bank Ltd.

(SAVDA Branch)

Table No. 4 : Details of Loan (Rs. in Lakh.)

Types 2013-14 Percentage 2014-15 Percentage 2015-16 Percentage
of Loan
Housing 3.92 25.96% 3.68 50.20% 133.65 33.26%
Loan

Secured 8.72 57.74% 1.43 19.50% 70.89 17.64%

Term
Loan
Secured 2.04 13.50% 1.80 24.55% 152.61 37.98%
Cash
Credit
Vehicle 0.42 2.78% 0.41 5.59% 44.64 11.11%
Load

Total 15.1 100% 7.33 100% 401.79 100%

Source :- Annual Reports

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Various Types of Loans

2013-14 2014-15 2015-16

180
160
140
120
100
80
60
40
20
0
Housing Loan Secured Loan Secured Cash Credit Vehicle Loan

 Interpretation :-
In 2013-14 total Cash Credit loan given by bank is Rs.2.04 lakh as well as for
vehicle loan Rs.0.42 lakh, Secured Term Loan Rs. 8.72. lakh And for Housing
loan Rs.3.92 lakh.
And now in 2015-16 total Cash Credit loan given by bank is Rs.152.61 lakh,
As well as for vehicle loan Rs.44.64 lakh, Secured Term Loan Rs. 70.89 lakh and
Housing loan Rs.133.65 lakh.
In 2013-14 Out of total loan Secured Term loan form major part of loan
disbursement i.e.57.74% where in 2014-15 out of total loan Housing Loan was
form major part of loan disbursement i.e. 50.20%. But in 2015-16 out of total loan
major loan was disbursed as Secured Cash Credit i.e. 37.98%

The Loan amount given by bank is increased every year, Because of following reasons:

1) Increased numbers of customers.

2) 0% N.P.A.
3) Bank maintains recovery.
4)Low interest rates than other banks.

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5.ATM Cards issued by Jalgaon Janata Sahakari Bank Ltd. (Savda Branch)

Table No. 5 : Details of ATM Card issued (No. of Customers)

Particulars 2013-14 2014-15 2015-16

ATM Card issued 300 450 700

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ATM Users

300, 21%

2013-14
700, 48% 2014-15
2015-16
450, 31%

 Interpretation :-
In the year 2013-14 Savda branch of Jalgaon Janata Sahakari Bank Ltd
the number of ATM Users of the bank was 300 but 2014-15 it increased up to
450.And it continues to increase in 2015-16 upto 700. This increase is due to the
following reasons:

1)Withdrawal cash in minimum time.

2)Easy process to get ATM card.

3)Easy to withdrawal cash.

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6. Analysis of Fixed Deposits Interest Rate

From 16/04/2016

NO. Period Normal Sr. Citizen

1 30-90 Days 6.00% 6.00%

2 91-365 Days 7.25% 7.75%

3 375 Days 8.00% 8.50%

4 13-36 Months 7.75% 8.25%

5 37-60 Months 7.50% 8.00%

6 Above 60 Months 7.50% 8.00%

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Analysis of Fixed Deposit Interest Rate

9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Above 60
30-90 Days 91-365 Days 375 Days 13-36 Months 37-60 Months
Months
Normal 6.00% 7.25% 8.00% 7.75% 7.50% 7.50%
Sr. Citizen 6.00% 7.75% 8.50% 8.25% 8.00% 8.00%

Normal Sr. Citizen

 Interpretation :-
In the Jalgaon Janata Sahakari Bank are decided fixed deposit interest rate,as
per data collection, For the Normal Customer are Minimum interest rate are
6.00% for 30-90 days and Maximum interest rate are 8.00% for 375 days. While
For the Sr. Citizen are minimum interest rate 6.00% for 30-90 days and
Maximum interest rate are 8.50% for 375 days. For the period of 375 days of
interest rate are High for both Normal and Sr. Citizen Customer.They offer
special interest rates to senior citizen because of the following reasons:

1)They offer special interest rates which tend to be higher,thereby resulting in

more earnings.
2)It creates a safe space for the money to grow in at a steady pace.
3) The interest earned on these deposits can be turned into monthly incomes thus
providing more peace in your retirement years.
4)The senior citizen fixed deposit can also be a tax saver deposit which help get
tax deductions under section 80C of the IT Act.

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CHAPTER NO.7
Observation & Findings

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FINDINGS

1. As the Jalgaon Janata Sahakari Bank is a scheduled Bank, so the interest rates on Fixed
Deposits are more in comparison with Nationalize Banks. So the customers are attracted
easily.

2. Due to quality of Services Provided and Personalised Relations there is increase the
number of customers of the Bank.

3. In 2013-14 Deposits of Jalgaon Janata Sahakari Bank LTD.(Savda Branch) was 3634.75
Lakh and in 2014-15 it increased up to 4202.89 Lakh.

4. The interest rates on loan like Vehicle loan, Home loan are less than other Banks as well
as Nationalize Banks. So people are easily attracted towards the loan. The amount of loan
given of Jalgaon Janata Sahakari Bank Ltd has increased in the year 2015-16 by 43.46 %
as compared to 2013-14.Loan recovery rate of Bank is higher and on time, because of legal
as well as many documents like Promissory Note are taken by Bank from customer.

5. Net profit of the Jalgaon Janata Sahakari Bank Ltd bank has increased from 38.99 Lakh in
2013-14 to 100.55 Lakh in 2015-16.

6. Loans are Recovered at time to time and NPA of the bank are 0 %. hence overall growth
of bank are good in condition.

7. Bank are offer special interest rates on fixed deposits to senior citizen,thereby resulting in
more earnings.

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CHAPTER NO.8

SUGGESTION &
RECOMMENDATION

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SUGGESTIONS & RECOMMENDATIONS

1. Opening of Branches at an Urban Level will Increase the number of Customer for the
Organization and it would make Easy to the customer for accessing the services of the
Bank.
2. There should be some activity from the Bank side like Campaign, Conduct Seminar for
Farmer so it Increase the Awareness about the Product of Retail Banking.
3 . Bank should provide more facility to its member which may result to increase the no of
members.

4. The bank should improve the management information system and with other
competitors.
5. It should increase the proportion of small loan, housing loan, and two wheeler loans.
6. It should reduce lead time for processing of loan proposals.
7. It should simplify the application from and documentation.
8. Competitors adopted new techniques.
9. Customer satisfaction from banking policy.
10. (Know your Customers!)KYC norms..

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CHAPTER NO.9
CONCLUSION

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CONCLUSIONS

JJSB Bank financially sound Bank as it makes profit year to year & provides loan to others.

o The bank has maintained its Deposits percentage is satisfactory.

o As the analysis of loans the overall percentage is satisfactory.
o The long term financial position of the Bank is also Good.
o Retail Banking refers to the Banking Institution execute transaction directly with consumer
rather than corporation or other than bank. Service offer includes saving account and
checking mortgage Personal loan, debit card,etc.
o JJSBL Banks deposits have grown since last three years.
o During the year the bank has implemented SMS Banking channel. Bank is sending SMS
alerts to customers for realization of cheques and for balance enquiry.
o JJSBL Bank’s customer can withdraw their money through ATM from more than 151
banks ATM. This system helps to provide efficient service to its customer.
o Saving account facility is better & convenient for lower income group.
o Pigmy collection creates the saving habits in All Types of people.
o By providing NEFT (National Electronic Fund Transfer) as well as RTGS (Real Time
Gross Settlement) and A.T.M. facilities band increases its numbers of customers.
o As compared to last years Capital to Risk Weighte Asset Ratio(CRAR) has improved from
11.67% to 12.01%.
o N.P.A. Recovery is also good.

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CHAPTER NO.10
BIBLIOGRAPHY

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BIBLIOGRAPHY

Books:-
 Research Methodology: C. R. Kothari.
 Indian Banking: Natrajan.
 Bank Management by- Vasant Desai
 Bandgar,P.K.,Principles and Pratice of banking and insurance,Vipul Prakashan.

Annual Report
 Annual report of The JJSBL Bank Ltd. Jalgaon for the year , 2013-14, 2014-15,
2015-16.
 RBI Bulletin: - Financial Results at end of March 2015.

Web Sites:-
 www.rbi.gov.in
 www.economictimes.com
 www.wikipedia.com
 www.jjsbl.com

References
 (Bahia 2000, “A Reliable and Valid Measurement Scale for Perceived Service Quality in
Banks”, International Journal of Bank Marketing,Vol.18,No.2,pp.84-91)

 (Gani A. Bhat 2003,“ Service Quality in Commercial Bank-A Comparative

Study,ParadigmVol.5,No.1, pp.77-99,)

 (Aggarwal Navdeep,Gupta Mohit 2005, “ Multi-level-Multidimensional modelof

Banking Service Quality” Paradigm,Vol.18,No.2,pp.91-103)

 (Bhat A. Mushtaq 2005, “ Coreelates of Service Quality in Banks; An empirical study”,

Journal of Services Research,Vol.5,No.1,pp.77-99)

 (Joshla A J; V.Moli; P.Koshi, “ Expectation and perception of service quality in old and
new generation banks”, Indian Journal of Marketing,Vol.37,No.3,pp.18.)
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 (Mohammad Al Hawari,Nicole Hartley and Tony Ward 2005, “ Measuring Banks

Automated Service Quality-A Confirmatory Factor Analysis Approach”, Marketing
Bulletin,Vol.16, Article 1)

 (Raul R K and J U Ahmad 2005, “ Customer Service in Public sectorbanks: An empirical

Investigation”, Public Sector Banks in India, Kalpaz Publications,New Delhi, pp.267-
290)

 (Sharma R D and J Sharma 2006, “ Measurement of Customer delight in Indian Urban

Consumer Banking”, The Indian Journal of Commerce,Vol.59,No.3,pp.61-76)

 (Sharma S, S S Bharadwaj and Pratibha 2007, “ X-raying service quality in commercial

banks- a case study of SBI and HDFC”, Appejay journal of management and techonology
Vol.2,No.1,pp.26-28)

 Dagger Tracey,Sweeney Jillian 2007, “ Service Quality Attribute weights- How do

Novice & long term customers construct service quality perceptions” Journal of Services
Research,Vol.10,No.1,pp.22-42)

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CHAPTER NO.11
Annexure

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ANNEXURE

Balance Sheet As on 31st March 2014

Liabilities Amount Assets Amount

Total Deposits 363479354.74 Cash in Hand 4556540.00

Interest Payable 6904372.00 Bal. in Cur. A/c 257959.83

Other Liabilities 20575.00 Int. Receivable 1181330.30

Inter Br. Trans. A/c 464927004.61 Total Loans 65355522.71

Bills as per contra 350000.00 H.O. General 57312370.44

Overdue Interest
191180.00 Bills as per contra 350000.00
Reserve A/C

Dead Stock 1108752.00

Other Assets 149106.00

Total Source of Total Application of

835872486.35 835872486.35
Funds Funds

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Balance Sheet As on 31st March 2015

Liabilities Amount Assets Amount

Total Deposits 405200024.95 Cash in Hand 3534482.00

Interest Payable 653954.42 Bal. in Cur. A/c 223007.88

Other Liabilities 143477.00 Interest Receivable 1139257.00

Inter Br. Trans. A/c 865077918.04 Total Loans 69612809.63

Bills as per Contra 596981.78 H.O. General 1195142393.72

Overdue Interest
140775.00 Bills as per Contra 596981.78
Reserve A/C

Dead Stock 993687.18

Other Assets 570512.00

Total Source of Total Application of

1271813131.19 1271813131.19
Funds Funds

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Balance Sheet As on 31st March 2016

Liabilities Amount Assets Amount

Total Deposits 420292838.70 Cash in Hand 7374856.00

Interest Payable 195874.00 Bal. in Cur. A/c 1752110.07

Other Liabilities 13853.00 Interest Receivable 1134929.00

Inter Br. Trans. A/c 1151605949.43 Total Loans 69631588.39

Bills as per contra 787145.01 H.O. General 1490639627.92

Overdue Interest
105032.00 Bills as per contra 787145.01
Reserve A/C

Dead Stock 1081549.30

Other Assets 598886.45

Total Source of Total Application of

1573000692.14 1573000692.14
Funds Funds

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