Professional Documents
Culture Documents
Contents Executive summary Objectives of Study Scope Research methodology Conceptual Framework Of Banks Banks Role of commercial banks Functions of Modern bank Banking in the high tech environment Change in Financial System IT and Banking New challenges facing banks Bank profile Vision and Mission Balance Sheet and Profit and Loss A/c of year ending 2006 Performance and Achievement Services offered by Punjab and Sind Bank Education loan Consumer loan Hone loan
Auto loan Two wheeler Second hand car loan Foreign Exchange Consumer loan offered by P & S bank Data analysis and interpretation Suggestions Limitations of Study Conclusion Questionnaire used in survey Bibliography
ACKNOWLEDGEMENT
It gives us immense pleasure to present this report, a written form of the practical experience we have undergone. We want to utilize this opportunity to express our heartfelt gratitude to all those who helped us in making this project work a success. We are greatly indebted to them for taking great pains in guiding us. We shall be failing in our duty if we do not convey our sincere thanks to our teacher Ms.Aarti, for inspiration and guidance about Research Methodology. Roll No-51 to 60
EXECUTIVE SUMMARY
Today, banks are an integral part of any country. These banks are globally embracing technology in the areas of products and services. In our developing country everything is changing very fast. In order to fulfill the changing needs depository system was introduced in Indian market too. The banks with their vast network occupy a very strategic position in the financial system and have an important role to play in providing credit to customers. This report discusses various aspects related to consumer loan like the procedure for availing loan, various documents required, eligibility criteria, customer satisfaction regarding consumer loan schemes. It also covers different types of frauds in the area of consumer finance. The subject has been discussed with special emphasis on Punjab and Sind Bank. An attempt has been made to make it a genuine study but there are some chances of mistakes.
SCOPE OF STUDY
There are four types of banks operating in India. These are: Public sector banks Private sector banks International banks Co-operative banks Under these categories there are a number of banks. For the purpose of this project, we have chosen The Punjab and Sind Bank, which is a public sector bank and provides many facilities to the customers.
RESEARCH METHODOLOGY
PROJECT DEFINITION
A loan is debt instrument that entails the redistribution of financial assets over time, between the lender and the borrower. Acting as a provider of loans is one of the principal task for financial institutions. Banks loans are generally funded by deposits. This project is an attempt to study consumer loans schemes offered by Punjab and Sind Bank and level of customer satisfaction regarding these schemes.
RESEARCH DESIGN
A research design is a conceptual structure within which research is conducted. A descriptive research study is done, which is concerned with describing the characteristics of a particular individual or a group.
SAMPLE DESIGN
i. Population To study the satisfaction of customers regarding consumer loans the customers of Punjab and Sind Bank who have availed consumer loan up to Rs. 5, 00,000 constitute my universe. ii. iii. Sample Size Sample size for the study is 30 Consumer loan customers of the bank. Sampling Technique In this study Judgment Sampling technique has been used to draw sample from universe.
Primary data was collected of Punjab and Sind Bank, Sector 17-C, Chandigarh. The data explained about different products/services being offered by their bank. Questionnaire was prepared to study the customers satisfaction regarding Consumer Loans schemes offered by the bank (questionnaire is attached as annexure and interpretation is given). Secondary data was collected by making extensive use of the internet. The data was also collected from various books, journals, publications and annual report of the bank. Technique of Data Collection Data was also collected by personally interviewing the customers of the bank and through questionnaire.
ii.
Agency services which the modern banks render to the individuals or to the business institutions as an agent. Banks usually charge little commission for providing these services.
It also provides other services like issue of personal and commercial letters of credit, help in the transactions of foreign exchange business.
world the chances of systematic risk increases and because of the intense competition that the banks have to face, both as a result of the growth of the non banking financial institutions as well as securitization , it is feared that the quality of the bank loans may have suffered.
IT and Banking
The new technology has altered the traditional ways of doing business. Customers can view accounts, get account statements, transfer funds, purchase drafts by making just a few keypunches. Availability of ATMs and plastic cards to a large extent avoid customers going to branch premises for cash. The networks have helped to automate the funds transfer thus resulting in a more efficient payment system. Today, the transactions of all banks have been fully computerized and the banks have moved into the direction of inter-branch and inter-bank connectivity. In effect the banking industry is finding its use in five key areas: Convenience in product delivery and access. Managing productivity and performance. Product design. Adapting to market and customer needs. Access to customer markets. For the Indian banking sector these developments are of real interest.
BANK PROFILE
History of the Bank
In 1908, luminaries like Bhai Vir Singh, Sir Sunder Singh Majithia and Sardar Tarlochan Singh came up with the idea of establishing Punjab and Sind Bank for the up-liftment of the weaker section of the society. The bank was founded on the principle of social commitments to raise the standard of living of the poor. It was started as a single branch in Hall Bazaar, Amritsar. Decades have gone by; even today Punjab and Sind Bank stands committed to honour the social commitments of the founding fathers. To start with the bank had its branches in Gujranwala, Lahore, Rawalpindi and Layalpur. The bank extended its helping hands to Punjabis. The bank also contributed its rights to serve social cause. The bank helped many educational institutes to come up. The bank also worked for growth of Punjabi language and Punjabi culture. The partition of the country in 1947 caused a heavy loss to the Punjabis in general and Punjab and Sind Bank in particular. Out of the total ten branches which the bank had in undivided Punjab, eight were in the area now forming part of Pakistan. Only two branches namely registered office at Amritsar and another branch at Ludhiana were in India. The head office of the bank tried its best to recover the valuable from branches left in Pakistan but unfortunately nothing substantial could be salvaged. The period from 1968 to 1978 could truly be called a golden era of Punjab and Sind Bank. This was a period of rapid growth and achievements. In this decade, the bank achieved tremendous results in all spheres banking. From a meager figure of Rs. 5.39 crores of deposit in 1968, the bank touched the mark of Rs. 150.31 crore in 1975 in a single year and number of branches increased to 356 besides six extension counters. The bank continued unabated on its branch expansion programme and in the year 1979 alone the bank opened 81 new branches. The bank opened
400th branch on 17th December 1976 at Amritsar, the city where the bank was founded in 1908. The bank which was operation mainly in the state of Punjab and in a small way in Delhi, Uttar Pradesh and Haryana, spread its wings all over the country. The bank had also opened its branch in South Hall, London in May 1977. This was a matter of pride for the institution that it was amongst the first in private sector banks who were allowed by RBI to open an office there. On 16th April 1980, the bank was nationalized along with five other banks.
Corporate Mission
To put in place the effective Risk Management and Internal Control Systems. To adopt and operationalise high-level technology standards. To strive to achieve excellence in Customer Service. To achieve the highest standards of transparency and accountability in the conduct of banking business. To adopt professional approach in effectively managing financial as well as non-financial risks. To maximize profitability and profits of the Bank with due compliance of prudential guidelines.
Branch Network
The corporate office of the bank is located at Rajendra Palace, New Delhi. There are a total of 19 Zonal Offices scattered all over India. The bank has a vast network of 813 branches and 78 extension counters spread in every nook and corner of the country. Five of the total branches are ISO 9001:2000. All the branches are manned by a dedicated workforce totaling around 9778 personnel. Being a Punjab based bank, it expanded very rapidly in Punjab with approximately 40% of the branches located within Punjab. In line with the spirit of liberalization, the Bank is laying special stress on International Banking Divisions, Merchant Banking, Hire Purchase and Leasing, Telebanking & Credit Card.
850
800
887
750
890
891
700
691
97
700
19 97 -9 8
704
99
711
00
726
736
746
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650
Organization Chart
Executive Director General Manager Deputy General Manager Assistant General Manager Chief Manager Senior Manager Manager Officers Clerks (Workmen and Staff)
( 000's are omitted ) CAPITAL & LIABILITIES CAPITAL RESERVE & SURPLUS DEPOSITS BORROWINGS OTHER LIABILITIES AND PROVISIONS TOTAL ASSETS CASH & BALANCES WITH RESERVE BANK OF INDIA BALANCES WITH BANKS & MONEY AT CALL AND SHORT NOTICE INVESTMENTS ADVANCES FIXED ASSETS OTHER ASSETS TOTAL CONTINGENT LIABILITIES BILLS FOR COLLECTION 8336716 13133936 69555984 91074702 2842223 5486818 28898009 5412000 9,472,224 7,374,930 70,815,764 63,222,179 641,803 5,648,259 20,644,016 4,782,039 1,06,71,693 45,93,267 6,77,65,937 6,03,00,142 6,32,754 61,50,120 1,83,48,507 4,784,994 As on As on 31/03/2006 31/03/2005 7430560 4791310 1947 8960756 2,430,560 1,973,002 3,318,5 11,031,833 As on 31/03/2004 2,430,560 2,235,371 1,00,683 89,26,983
The total business of the Bank was up by 26% as on 31, March 2006. The bank earned a Net Profit of Rs.108.32 Crore in the last fiscal year. The total advances of bank were up by 40.53%. The total deposits of bank were up by 19.43% The total NPAs were down from 8.11% to 2.43%. It is the first bank in Northern India to get ISO 9002 certification for our selected branches. In the spirit of liberalization, the bank lays special stress on international banking, merchant banking, hire purchase, leasing, tele-banking and credit cards.
Eligibility:
Should be an Indian National.
Should have secured admission to professional/ technical courses through entrance test/ Merit Based selection process. Age above 18 years.
CONSUMER LOAN
Consumer loans help you to take care of your immediate requirements without much of a hassle. The most attractive feature of the consumer loan is that you do not have to give any kind of security to avail this loan. No collaterals, only hypothecation of assets to be created. The maximum amount of consumer loan for which you are eligible depends upon the net salary you take home. Loans are repayable in Equal Monthly Installments (EMIs).Loan tenure varies from 1 to 5 years. Punjab and Sind Bank offers a broad range of consumer loans to meet the customers specific needs and situations. Punjab and Sind Bank consumer loans are hassle free, quickly approved and are on very attractive interest rates. Consumer loans are given for the purpose of consumer durables and vehicles.
Eligibility:
Employees of central/state government or a public limited company Self employed professional. Age between 21 and 55 years.
HOME LOANS
Building our own home is one of the most important decisions that we make in our life. It provides an impetus in our lifestyle and provides financial security. Punjab and Sind Bank offers home loan with appropriate Equated Monthly Installments (EMIs) with regard to customer as well as home loan executive. It is simple and quick in processing with easy payment terms and interest rates are very attractive.
Eligibility:
Qualified professionals and self employed persons having assured source of income. Person employed in Central Government/ State Government undertakings are covered under the scheme.
An owner of an existing house/flat which is free from encumbrance and can be mortgaged with bank.
AUTO LOANS
Punjab and Sind Bank auto loans are fast, cost efficient and user friendly. Some of its features are: Simple and quick in processing Personalized services Easy terms of service Attractive interest rates Finance is available on all models and makes
Eligibility:
Salaried individual
Eligibility:
Minimum 18 years of age and less than 60 years of age at the time of completion of loan. Minimum gross income of Rs.3000 per month (in case of scooter) and Rs. 4000 (in case of motor cycle)
Punjab and Sind Bank offers a prompt, cost efficient and simple second hand car loan scheme. The applicant should have an earning capacity of Rs. 50,000 per annum. The repayment period ranges from 1 to 4 years.
Eligibility:
Salaried individual Self employed/sole proprietor Partnership firm Private or public limited companies
FOREIGN EXCHANGE
Preparing for an overseas trip for a first time or a seasonal traveler is always full of anxiety and last minute chores to be tied up for the occasion. And in the middle of it all is the task of arranging ones foreign exchange, which should come at a fair exchange rate and in the right denomination and currency. Punjab and Sind Bank bouquet of services now covers foreign exchange services too, that is almost like handling your boarding pass. The bank has setup a special division that dedicatedly looks into monitoring and dispersing the best exchange rate, arranging multiple choices of currencies and traveler cheque.
Payment terms:
All payments should be received in advance
Payment against sale of currencies and traveler cheque can be received in the form of cash or through bankers cheque for draft issued by the debit from customers bank account.
Punjab and Sind Bank offers a broad range of consumer loans to meet the customers specific needs and situations. Punjab and Sind Bank consumer loans are hassle free, quickly approved and are on very attractive interest rates. Consumer loans are given for the purpose of consumer durables and vehicles.
Marketing:
Punjab and Sind Bank use the following strategies to increase its customers: Credit card operation Tie ups Identify various opportunities for promotional activities like carnivals, advertisements Keeping track of competitors activities Market research and analysis Ensuring timely service to customers
Documentation:
It is imperative that loan documentation should be perfect. The branch head loan executive is responsible for completion of documentation. The documentation comprises mainly of:
Income proof like salary certificates for employees and income tax return for others Residence proof of the applicant like voters card, passport, driving license, ration card etc
Signature proof Copy of bank account statement for last six months Details of assets and liabilities of the applicant Opening of account and depositing the processing fee.
Hypothecation deed Original bill for purchase of asset Collection of administrative fees Preparation and approval of disbursement
Precautions:
To make sure that the applicant will utilize the credit for the purchase of consumer good only and not for any other personal purpose. For this the name of the banker should be impeded as a financer in bill/ demand draft/cheque.
To ensure that all the guidelines pertaining to know your customer (KYC) are fulfilled.
To verify personally that the asset purchased by the applicant is not sold and proper insurance of the asset is done. To ensure that the installments are received regularly and the customer is contacted personally in case of default. The documents submitted for availing the loan such as income tax return, salary certificate etc. should be duly attested by gazzeted officer/ manager. Bank has to make sure that the disposable income of the borrower should not fall below the level i.e. 40% of gross income after paying installment of loan. Identity and record of the borrower must be verified before sanctioning the loan.
Prepayment charges
Prepayment charges are levied @ 1% on the outstanding balance.
Rate of Interest
Rate of interest is very volatile aspect of consumer loans. Frequent changes in the rate of interest are imperative looking to the emergence of banks and other financial institutions into the consumer finance business. Type of durables For new vehicle and consumer durables For old vehicles For overdue accounts Rate of Interest PLR-2.0% or 9% p.a. whichever is higher PLR or 11% whichever is higher PLR+4% = 15% at present
False information, heavy borrowing, lack of information from bank, intention of default, delay in payment of salary by the employer and misutilization of funds.
Security
In consumer loan scheme no collaterals are required, only hypothecation of asset to be created. In case of vehicles bank clause is to be incorporated in RC/insurance policy. Hypothecation (Hyp.): It is a pledge of property as security for debt without transfer of possession. When a person pledges a mortgage as collateral for a loan, it
refers to the right that a banker has to liquidate goods if you fail to service a loan.
Repayment
Repayment is done normally in Equated Monthly Installments (EMIs) comprising of Principal and Interest. However, as a special case, half-yearly/quarterly installments may be fixed depending on the source of income of the borrower. The bank must obtain post-dated cheques for required EMIs in all the cases where loan installment from salary deduction is not available. The repayment period ranges from 12 to 60 months.
The repayment of loan is through EMI which starts after the final disbursement of the loan amount is made. The installment comprises of interest as well as principal. Post-dated cheques for each installment at the time of disbursement should be taken Repayment should not normally extend beyond the age of 65 years or age of retirement in case of employees. Co-applicants age can also be taken into consideration while fixing repayment plan in case the applicants age does not fall within the scheme. For old vehicle repayment should be done within 36 months (but before retirement age i.e. repayment period to coincide with date of retirement)
Reporting
A register of loans granted under managers discretionary power is maintained in which each transaction related to loan is recorded.
The branch manager is required to send a monthly statement of progress under the scheme to their respective Zonal Manager on the last day of each month. Queries (if any) are asked by the Zonal Manager and are solved by the concerned person. Zonal Manager should send the consolidated statement to Head Office on 7th of each month.
Consumer durables and Vehicles. Policemen, Teachers of Govt. Schools/Colleges, Central/ State Govt. employees and PSUs employees Up to annual income, (Income of spouse can be clubbed.) i. ii. i. ii. 10% of the cost of Vehicles 10% for consumer durables 72 EMIs for Vehicles 48 EMIs for consumer durables
No collaterals required only hypothecation of assets created -with bank loan to be taken. Assets to be insured Prime Lending Rate (PLR)
Processing Fee
i.
ii.
Rs. 100/- for consumer durables and two wheelers Rs. 500/- for four wheelers.
PUNJAB AND SIND BANK SCHEME FOR CONSUMER CREDIT FOR MARRIED COUPLES
General public as well as employees in Pvt. /Public undertakings like Central/State Govt., Local bodies, PSUs, Universities recognized by UGC, large public limited companies. For purchase of Car, Motor cycle/scooter for personal use. One vehicle per person, consumer durables.
Eligibility
Purpose of Loan
Amount of loan linked to income of the borrower (net of Quantum of other repayment obligations) Loan Margin Repayment Rate of interest Security Guarantee i. ii. i. ii. i. ii. 20% on Vehicles 10% on Consumer durables 72 EMIs for Vehicles 48 EMIs for Consumer durables PLR+0.50% p.a. where one of spouse is in service PLR where both, husband & wife are in service.
Hypothecation of assets to be created with bank loan Third party guarantee, but where both husband & wife are
in service- and avail a joint loan, then no guarantor required. Processing fee i. ii. Rs. 100/- for two wheeler/consumer items. Rs. 500/- for four wheeler.
PUNJAB AND SIND BANK PERSONAL CLEAN LOAN SCHEME UPTO Rs l Lac TO OFFICIALS OF GOVT. & PSUs
Employees of Central/State Govt./PSUs/Local bodies Universities recognized by U.G.C./Schools run by Govt., with confirmed service of more than 4 years, are eligible. Minimum gross salary should be Rs. 5,000/- pm.
i. ii. iii. iv.
Eligibility
Quantum of loan
For income Rs.5000- Rs. 9000 Max. loan Rs. 50000 For income Rs.9000- Rs.15000, Max. Rs.50,000 For income above Rs.15, 000, Max. loan Rs.1 lac.
Rs.1 lac - Rs.2 lac for Govt. & PSU employees only, having a minimum salary of Rs.15, 000 and maintaining salary account with our bank. 21 to 55 years For purchase of consumer durables, consumption loan or loan for any other personal use. One time @ 2% of loan amount, at the time of sanction i. ii. For clean loan PLR+1%p.a. For Consumer durables @ PLR
EMIs by post dated cheques Third party guarantee acceptable to the bank. i. ii. Hyp. of Motor Vehicles/Consumer durables Personal (For clean loan)
PUNJAB AND SIND BANK SPECIAL FESTIVAL LOAN SCHEME FOR PUBLIC
i.
ii. iii.
Eligibility
iv. v.
Scheme would cover the officials of state or central Govt./PSUs/LocalBodies/Universities/colleges recognized by UGC/Schools run by Govt. or local bodies / Private-aided schools. Scheme would cover Doctors, Lawyers, Architects, C.As, Engineers, etc. In case of salaried persons - confirmed service of more than four years with no departmental or criminal case pending against the employee. Age limit should be 21 to 55 years. The minimum gross salary Rs.5000/- per month. The income of the spouse (if employed) may be clubbed for availing the loan. In case of self employed / professionals, the applicant should be an I.T. payee. In case of existing borrowers under other schemes, the eligibility would be judged from the good past track record of at least two years and the existing borrower accounts are Standard account and there is no irregularity.
Purpose of credit
To meet special expenditure for festival celebration such as furnishing of house/shop/office, consumer goods, personal
Maximum Rs. 1, 00,000/i. In case of salaried class -five times of the net carry home salary. Quantum of ii. In case of professionals/self employed - 20% of the credit annual income as per IT return. In case of existing borrowers under the scheme - 10% of the loan/limit already sanctioned. Processing Nil fee Rate of PLR interest No collaterals required. However, in case of existing Security borrowers, the existing collateral, if any may be attached The repayment programme to commensurate with income of the borrowers, loan to be adjusted in 12 to 36 months in Repayment monthly / quarterly / half yearly (in case of agriculturists) installments Guarantee Prepayment Charges No third party guarantor required .However, guarantee of the spouse/major son to be obtained. Nil
PUNJAB AND SIND BANK SCHEME FOR GRANTING CLEAN LOAN AND CONSUMER LOAN TO CLUB EMPLOYEES
Eligibility
The Employees of reputed clubs in metropolitan/urban centers having minimum confirmed service of seven years. Age limit should be 21-55 years. The minimum gross salary Rs.5000/- per month. The income of the spouse (if employed) may be clubbed for availing the credit facility. For purchase of consumer items and for any personal use.
Purpose of Credit
Five times the gross monthly salary of the employee subject to ceiling as under: Personal Loan Consumer Loan Quantum of Officers Max. Rs.50000/- Max. Rs.80000/-Class IV Max. credit Rs.25000/- Max. Rs.25000/- employees Margin Processing charges Rate of interest Security 15% of the cost of vehicles/consumer durables As per guidelines issued by Head Office i. ii. Clean loan PLR +1% p.a. Consumer loan PLR + 0.5% p.a.
Clean loan Personal Consumer loan Hypothecation of assets to be purchased with bank loan
Guarantee Repayment
i. ii.
Officers - Third party guarantee acceptable Bank Class IV Employees - Guarantee of other staff member to be taken
The loan to be repaid in 36 EMIs including interest by deduction from the salary of the employees.
Occupation
Table No. 1 Options Salaried Professional Business Total Responses 15 12 3 30 Percentage 50 40 10 100
Occupation
Graph No. 1
10%
40%
50%
Interpretation:
The above Pie Chart indicates that 50% of the respondents belong to salaried class while 40% of respondents are professional. Only 10% of respondent belong to business class.
Annual Income
Table No. 2 Options Below Rs. 50,000 Rs. 50,000 Rs. 1,00,000 Rs. 1,00,000 Rs. 5,00,000 Above Rs. 5,00,000 Total Responses 3 15 9 3 30 Percentage 10 50 30 10 100
Annual Income
Graph No. 2
10%
10%
Below Rs. 50,000 Rs. 50,000 - Rs. 1,00,000 Rs. 1,00,000 - Rs. 5,00,000 Rs. 5,00,000 Above
30%
50%
Interpretation:
The above Pie Chart shows that 50% of the respondents fall in the income group of Rs. 50,000 Rs. 1,00,000, 30% of the respondents fall in the income group of Rs.1,00,00 Rs. 5,00,000 and only 10% of respondents fall in the income group above Rs. 5,00,000
Duration of Account
Interpretation:
The above graph depicts that 37% people have their account with Punjab and Sind Bank for more than five years and only 23% people have their account with Punjab and Sind Bank for less than 2 years.
100 83 80
100 83 80 60 40 20 0 Yes No 17
Interpretation:
The survey reveals that 83% respondents are satisfied with the interest rate charged by bank and 17% respondents are not satisfied with the interest rate charged by bank.
93
100 80 60 40 20 0 Yes
93
7 No
Interpretation:
The above graph indicates that 93% of respondents are satisfied with the processing fee charged by bank and 7% respondents are not satisfied with processing fees.
20%
14%
Interpretation:
The data reveals that more than 3 days were taken for disbursement of loan of 14% respondents while 2 to 3 days were taken for 66% respondents. Only 20% respondents get their loan disbursed with in a day.
Graph No. 7 60
60 50 40 30 20 10 0 Yes
40
No
Interpretation:
The above depicts that 60% of respondents queries are solved properly and 40% respondents feel that their queries are not solved properly.
54 52 50 48 46 44 Yes
53
47
No
Graph No. 8
Interpretation:
The above graph indicates that 53% of the respondents are sure that no hidden charges are debited in their account and they are aware about these charges.
50
16
Good
Fair
Interpretation:
The above graph indicates that 50% of the respondents feel that the services provided by bank is good, 27% respondents feel that services are very good and 7% respondents feel that services provided by bank is excellent.
70 60 50 40 30 20 10 0 Yes No 30
70
Interpretation:
The above chart depicts that 30% of the respondents feel that the information provided by them for getting loan is being cross checked
Graph No. 11 70 60 50 40 30 20 10 0
Good Service Attractive Others PSB Employee Near to your Schemes Recommendation Place
70 60
40 33
13
Interpretation:
The above bar graph shows that most of the customers have taken loan from Punjab and Sind Bank due to quality of services provided by bank and due attractive schemes.
20%
Yes No Can't say
40%
40%
Interpretation:
The survey reveals that 40% of respondents will prefer Punjab and Sind Bank for taking loan while 20% of respondents will not prefer Punjab and Sind Bank.
Graph No. 13
70 70 60 60 50 40 30 20 10 0 0 Efficient Staff Attractive Schemes Customer Service Branch Ambience 46
Interpretation:
The above bar graph reveals that the customers feel that the strongest point of Punjab and Sind Bank are attractive schemes, efficient staff and good customer service.
FINDINGS
Most of the respondents are satisfied with the interest rate charged by the bank which shows that interest rate of Punjab and Sind Bank is quite reasonable as compared to other banks. All the respondents except two are satisfied with the processing fee as they feel that it is less as compared to other banks. 84% of the respondents are satisfied with the level of services provided by bank but they feel that these services can still be made better.
Most of the people who have taken loan either belong to salaried class or are professional. Most of the respondents have selected Punjab and Sind Bank for availing loan either due to attractive schemes, good customer service or due to the fact that they are an employee of Punjab and Sind Bank.
40% of the respondents say that next time when they want to avail loan they will prefer Punjab and Sind Bank. Punjab and Sind Bank is popular among masses due to efficient staff, attractive schemes and good customer service. Generally customers are not aware about hidden charges so they must be given full information about these charges. Customers are not satisfied with branch ambience.
SUGGESTIONS
Customers must be given full information about all the charges and fees related to a particular scheme in detail. More young and energetic staff should be employed to manage the work load.
Punjab and Sind Bank should revise its schemes with special reference to interest rate from time to time in order to attract new customers. The efforts should be made to improve bank ambience and to increase the speed of service. A customer grievances cell should be made functional and steps should be taken to enhance speedy settlement of the compliant.
CONCLUSION
Punjab and Sind Bank is one of the most efficiently run financial institution of India. The management of this institution is quiet content and satisfied by the progress made by it since its humble beginning in 1908 at Amritsar. Punjab and Sind Bank offers a broad range of consumer loans to meet the customers specific needs and situations. This project is an attempt
to study consumer loans schemes offered by Punjab and Sind Bank and level of customer satisfaction regarding these schemes. This project throws light on procedure of availing consumer loan as well as different kind of frauds pertaining to these loans. A questionnaire is also incorporated to know the level of customers satisfaction regarding these loans and evaluation has been done on the basis of responses retrieved by customers of the bank. After making research with the help of questionnaire and personal interview it is found that customers are satisfied with the consumer loan schemes offered by Punjab and Sind Bank. They are also contended with the services provided by the bank but they feel that these can be made better. It can be done by employing more young and energetic staff to manage the work load. The customers are not aware about the hidden charges so they must be given full information about all the fees and charges.
QUESTIONNAIRE
Name ___________________________ Age ___________________________
Gender ___________________________ 1. Occupation:(a) Salaried (b) Professional (c) Business 2. Annual Income:(a) Below Rs. 50,000 (b) Rs. 50,000 to Rs. 1 lakh (c) Rs. 1 lakh to Rs. 5 lakh (d) Above Rs. 5 lakh
3.
What is duration of your account with Punjab and Sind Bank? (a) 1 to 2 years (b) 3 to 5 years (c) More than 5 years Are you satisfied with the interest rate charged by Punjab and Sind Bank? (a) Yes (b) No
4.
5. Are you satisfied with the processing fee charged by Punjab and Sind Bank? (a) Yes (b) No
6. How much time was taken by Bank between submission of application and disbursement of loan?
(a) 1day (b) 2 to 3 days (c) More than 3 days 7. Are queries related to your account being solved properly? (a) Yes (b) No 8. Are you sure that no hidden charges are debited in your account? (a) Yes (b) No If No than specify the kind of charges debited in your account ____________________________________________ ____________________________________________ 9. What do you think about the standard of services provided by Punjab and Sind Bank? (a) Excellent (b) Very good (c) Good (d) Fair
10. At
any point of time do you think that the information Provided by you to bank is being cross-checked? (a) Yes (b) No Why do you select Punjab and Sind Bank for availing of loan? (a) Good service (b) Attractive schemes
11.
(c) Recommended by some person (d) You are an employee of Punjab and Sind Bank (e) Near to your place 12. Next time when you want to avail loan would you avail it from Punjab and Sind Bank? (a) Yes (b) No (c) Cant say What according to you is the strongest point of Punjab and Sind Bank? (a) Efficient staff (b) Attractive schemes (c) Excellent customer service (d) Branch ambience
13.
SOURCES
www.psbindia.com Questionnaires