An Organizational study of

Pragathi Gramin Bank

&
Survey on customer satisfaction
Under the guidance of
Prof. K. N. Guha

By:-
SANTHOSH KUMAR K
REG NO: 09VWCMA094

ALLIANCE BUSINESS ACADEMY

BANGALORE – 560076
Batch: 2009-2011
 INDUSTRY PROFILE
 The General Bank of India was first Joint Stock Bank to be
established in the year 1786.
 The Reserve Bank of India which is the Central Bank was created in
1935 by passing Reserve Bank of India Act, 1934 which was followed
up by the Banking Regulations in 1949.

STRUCTURE OF BANKING IN INDIA

 Regional Rural Banks were established under the provisions
of an Ordinance promulgated on the 26th September 1975
and the RRB Act, 1976 with an objective to ensure sufficient
institutional credit for agriculture and other rural sectors.
 RRBs are jointly owned by GoI, the concerned State
Government and Sponsor Banks.
 The issued capital of a RRB is shared by the owners in the
proportion of 50%, 15% and 35% respectively.
 During 1975-1999 there was expansion of RRBs from 6 to 196
banks.
 GoI initiated the process of structural consolidation of RRBs
by amalgamating RRBs sponsored by the same bank within a
State as per the recommendations of the Vyas Committee
in 2004.
 As a result of the amalgamation, the number of RRBs was
reduced from 196 to 133 as on 31 March, 2006 and to 96 as
on 30 April 2007. Thus, 59 under the amalgamation process,
145 RRBs have been amalgamated to form 45 new RRBs.
 As on 2006, RRBs totally have covered 525 districts in the
country.
 PEST ANALYSIS
POLITICAL FACTORS
Govt. of India and Govt. of
Karnataka have got the
authority on the bank.
Trade Restrictions for giving
licenses to open new
branches.
SOCIAL FACTORS
Local language is spoken by
all the members of the bank
since it is targeted to rural
masses.
Changing family trends.
Population growth rate
decides on staff size of the
bank.
ECONOMIC FACTORS
Cash Reserve Ratio (CRR),
Statutory Liquidity Ratio (SLR)
and Interest rates are fixed by
RBI and are constantly
reviewed.
Economic Meltdown in 2008
Budgetary changes made by
Finance Minister
TECHNOLOGICAL FACTORS
Computerization and
implementation of Core
Banking Solutions had reduced
lot of paper work and also
made the service of the bank
faster.
E-banking and ATM system
are the demands among the
customers.
 ORGANIZATION PROFILE
VISION
 Placing our Organization at the Highest Altitude among the
RRB's in the country and making it financially strong, viable,
vibrant and an effective proactive instrument of social
change, with an eye to work for overall development of the
people and the economy of the operational area, through
aggressive banking.
MISSION
 To increase the business on a sustainable manner with
consistent efforts and bring all the house holds in the
operational area into banking folds.
 To fine tune the existing products and design new products
and services to match the competition prevailing in the
market.
 To mould the staff of the bank as computer literate and
technologically savvy and to achieve hundred percent
computerization of branches.
 To continue to be a true friend, philosopher and guide to
customers with dedicated service and accelerate the pace of
development of the operational area for accomplishing the
Bank's Objectives.
 OBJECTIVES OF THE BANK

i. Taking the banking services to the doorstep of rural

masses, particularly to unbanked rural areas.
ii. Making available institutional credit to the weaker
sections of the society who had by far little or no
access to cheaper loans and had perforce been
depending on the private money lenders.
iii. Mobilize rural savings and channelize them for
supporting productive activities in rural areas.
iv. To create a supplementary channel for the flow the
central money market to the rural areas through
refinance
v. Generating employment opportunities in rural areas
and bringing down the cost of providing credit to rural
areas.
 Organization Structure

HEAD OFFICE

REGIONAL OFFICE

BRANCH OFFICE

The bank is operating with three tier Organization structure.

The bank has the head office at Bellary, 7 Regional Offices and
365 Branches around the Karnataka.
There are 3 General Managers for the bank who are
looking after seven different wings of the bank. They are

1. Development Wing
2. Personnel Wing
3. Premises staff and Information Technology Wing
4. General Administration Wing
5. Recovery and Legal Wing
6. Inspection Wing
7. Credit Wing
 SWOT Analysis
STRENGTHS WEAKNESSES
Customer oriented approach ATM systems need to be installed
Staff members are committed and all over Karnataka.
respond well to the queries of the Online Banking is required.
customer.
No.1 RRB in Karnataka state
Rising total business of the bank.
All the branch managers are very
skilled to deal with customers.

OPPORTUNITIES THREATS
Only 8 districts of the Karnataka  Many competitors in the urban
has been covered by the bank and semi-urban areas.
hence there is great scope for
expansion.
No much competition in the
villages.
 RESEARCH METHODOLOGY
Title of Research:- Survey on Customer Satisfaction

Type of Research:- Exploratory

Scope of the Research:-
The study is restricted to Pragathi Gramin Bank, Dam Road
Branch, Hospet.

Objectives of the Research:-

 To find out the satisfaction levels of the customers of the
bank.
 To find out the expectations of the customers.

Sampling Technique:-
The sampling technique used was non-probabilistic sampling
under which convenient sampling method was used.

Sample Size:-
A sample of 20 people has been selected for the study.
Sample Description:
The sample includes professionals (engineers and doctors),
institutions, traders and small household savings bank
account holders.

Instrumentation Technique:
Structured questionnaire was used for data collection. The
questionnaire was asked to fill up by the customers to get
their responses. The data collected was analyzed and
interpreted.

Statistical tools used:

Bar Graph and Pie Chart

Limitations of the study:

 Due to time constraint and restrictions from the bank the
sample size was restricted to 20. More samples would
have provided better results.
 The study is restricted to Pragathi Gramin Bank only it has
no universal application.
 MAJOR FINDINGS
 Around 90% of the respondents felt the basic factors like
physical ambience, space availability and easy availability
of pay in slips is good and upto the mark.
 Around 90% of the respondents felt the satisfying factors
like response of the staff members to the enquiry and
problems, general behavior of the staff members and
response of the manager to the problems is good.
 Around 85% of the respondents felt the performance
factors like payment of cash, updating of passbooks and
sanctioning of loans is within 30mts.
 Finally, maximum number of respondents i.e.95% of them
felt that the services provided by the bank met their needs
and expectations.
 MAJOR SUGGESTIONS
 ATM system should be installed.

 At par cheques and online banking is required.

 One more cash counter is required usually on Saturdays.

 Printer problem is frequently happening and letters are also

not clearly visible.

 Changes like coins 1,2, 5 and 10 to be provided.

 Entrance by upstairs is very difficult avoid it by taking own

building on ground floor.
 MY LEARNING
The study was helpful in the following respects;

 To understand how exactly an organization works.

 To know the organization set up of the bank.

 To know how important is Customer Satisfaction and how it

increases productivity of the bank.

 To interact with people and get their views on organizational

services.

 To understand how to maintain relationship with customers.

 To understand the different operations involved in banking.

THANK YOU