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““A Study On Different BankingA Study On Different Banking
Services Services
TJSB Bank”TJSB Bank”PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THEPROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
BACHELOR OF MANAGEMENT STUDIES
MUMBAI UNIVERSITYMUMBAI UNIVERSITY
2010-2011
Submitted by:
TY BMS – SEMESTER VTY BMS – SEMESTER V
PROJECT GUIDE:PROJECT GUIDE:
INSTITUTE OF MANAGEMENT & COMPUTER
STUDIES
THANE (MULUND CHECK NAKA)THANE (MULUND CHECK NAKA)
1
2
DECLARATION
I miss ___________________ of Institute of Management and Computer Studies,
Thane of Bachelor of Management Studies (IMCOST) ,BMS- Finance hereby declare
that, the project work entitled “A Study On Banking Services – TJSB Bank” is my
work carried out under the guidance of my faculty guide Mrs.
I assure you that the information submitted by me is true and proved to the best of my
knowledge.
Date: Signature of Student
Place:
3
ACKNOWLEDGEMENT
At the outset, I would like to thank Thane Janata Sahakari Bank for giving me
approval to do this project by giving the necessary information.
I thank my faculty guide, Mrs. Ambujam for coordinating the project work and giving
me the guidance. This project would not have been possible without his help.
Finally yet, I am also indebted to all who have directly contributed in making this
project a reality.
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PREFACE
A bank is an institution that deals with money and credit. Different people understand
the meaning of a bank in a different ways. For a common man bank means a
storehouse where money is stored. For a businessman it is a financial institution and
for day to day customer.
The objective of the study is to highlight the services provided to the customer in a
bank. For this purpose “The Thane Janata Sahakari Bank” is taken as a base. The
methodology used was introduction with TJSB. She was able to provide first hand
data on the services. This project starts with a brief idea about what banking is and
what are its activities. A major focus is on banking services.
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TABLE OF CONTENT
CH.
No Particulars
Page no.
I Introduction
Introduction to banking
Industry profile
01
02
07
II Importance of study
Scope of the study
Objectives of the study
Limitation of the study
10
11
12
12
III Banking services of TJSB Bank
Introduction to initial banking services
Other different banking services
Introduction to TJSB Bank
Banking services of TJSB Bank
13
14
15
23
26
IV Methodology
Research design
Research instrument
Sources of data
Sample size
Sampling unit
Sampling methods
31
32
32
33
34
34
35
V Data analysis and Interpretation 37
6
Tables and chart 38
VI Findings and analysis
Findings
Suggestions
Conclusion
42
43
49
50
VII Annexure
Questionnaire
Bibliography
51
52
55
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SUMMARY
For centuries, banks have played an important role in the financial system of any
economy. Banking operations have witness tremendous change over a period of time
due to the advancement in technology or globalization.
One of the key challenges that banks face today is their ability to offer fee based
services that can reach out directly to where their customers are and be profitable at
the same time.
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OBJECTIVE
To know the importance or status of banking sectors in Indian economy.
To know the banking structure in India.
To study the various scheme related to bank products offer by the bank.
To know the satisfaction level of the customers.
To know the new innovations in today’s modern banking services.
To know the various services offered by the bank to their customer.
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LIMITATION
The customers are reluctant to express their opinions.
The information given by the respondent may be by blasted.
Sample size is limited because of time constrain.
To observe the week point of service sector in the economy compare to other
developed country.
All banking procedure should be under rules, regulation and restriction of necessary
Acts and law.
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METHODOLOGY
1. Research design
A simple definition of research design is “specification of methods and
procedures for acquiring the information needed.
A research design is the arrangement of condition for collection and analysis
of data in manner that aims to combine relevance to the research purpose with
economy in produced.
In short it provides the necessary framework for understanding the study and
collection of data.
2. Research instrument
Research Instrument is generally used to collect primary data. It is used to
collect information through using the instruments. Instrument should be suitable as
per the study.
Questionnaire
Questionnaire is the formal set of question prepared to collect the required
information. This is one of the most effective and popular technique used in surveyed.
Before deciding the questions it is important to understand the exact nature of the
information required.
Use in the project work
The questionnaire is designed in such a manner that it covers open ended
which was necessary to fetch the information in the pure form.
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Sources of data
3. Sources of data
Primary data secondary data
Primary data
The data which are originally collected by investors or agency for the first
time for any statistical investigation and used by them in the statistical analysis are
term as primary data.
Use in the project work
This data is collected by using questionnaire method on the sample size. The
questionnaire is designed in such a manner that it covers open ended which was
necessary to fetch the information in the pure form.
Secondary data
The data which have already been collected and proceed by some agency or
person and take over from there and used by any other agency for their statistical are
term as secondary data.
Use in the project work
Secondary data are data complied originally by somebody and available in
publication, records, books, etc. which may be used by me for my project work. This
was collected from various sources such as books, websites, newspapers, etc.
4. Sample
A finite subset of a unit selected from it with the objective of investigating its
properties is called as sample.
Use in the project work
The questionnaire is use as a sample in the project work.
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5. Sample size
The number of units in sample is known as a sample size. These refer to the
number of item to be selected form the universe to constitute a sample. The sample
should neither be large nor too small. The survey was done by forwarding the
questionnaire to more than 50 customers. The responses came from 50 customers
within a specific time period.
Use in the project work
The sample size used in the project work is 50.
6. Sampling unit
A decision has to be taken into concerning a sampling unit before selecting
sample. Sampling unit may be a geographical one such as a state, district, village etc.
or a construction unit such as house or it may be an individual. The researcher will
have to decide one or more of such unit that he has to select for his study.
The questionnaire was given & the data was collected from direct final
customers directly, thus the sample unit was direct customers.
Use in the project work
Sampling unit is final customer.
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Scope of the project
Scope of Banking Services
Bank plays an important role in the economy of any country as they hold the saving of the public. In the past the banks did not find any attraction in the Indian economy because of low level of economic activities. Today we find positive changes in this. This resulted in the nationalization of 14 commercial bank in 1969.
In the modern economy, banking plays an indispensable role. Bank today offer a wide range of product and services than ever before and deliver them faster and more efficiently. Bank provides a package of information and risk sharing the services to their customers.
Today, bank provides the services to customer by using the modern techniques. By this way they were reduces the proper work by using electronic system in the bank.
The competition in the Indian banking industry have intensified with the entry of more and more foreign banks and now private sector banks, with better technology, market orientation and cost effective measures.
Gone are the days when customer had to accept what was available. In the modern competitive World Bank have to identified the needs of customer and make them available at competitive prices without delay. They continue with the old strategy of one capital for all. The needs of different segmentation are to be addressed separately and appropriate scheme introduced.
Banks have been rapidly expanding the menu of financial services they offer to their customers. This proliferation of services has accelerated over the years under the pressure of increasing competition from other financial firms or bank. The levels and intensity of competition has increase in financial services industry as banks and their competitors have expanded their service offering.
This all will lead to increasing the scope of banking services day by day.
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CHAPTER 1
INTRODUCTION TO
BANKING
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BANKS
Introduction
The word bank is originated from the German word Banck which means heap or
mouth or joint stock fund. From this, the Italian word Banco meaning heap of money
was coined. The English word of bank is prevalent today that is as an institution
accepting money as deposits for lending.
A Bank is a financial institution that receives, collects, transfers, pays, exchanges,
lends, invests, or safeguards money for its customers. Bank is an institution that deals
in money and significantly makes some or all of its profits by making loans that do
not have to be repaid until some future date.
A bank is an institution which deals in money and credit. This bank is an
intermediary which handles other people money both for their advantage and to its
own profit. But bank is merely a trader in money but also an important manufacturer
of money.
For a common person it may be just a storehouse where he may store his money; for a
businessman it may be a financial institution and a day to day customer it may be an
institution where he can deposit his savings.
Bank plays an important role in the economy of any country as they hold the saving
of public. Provides a means of payment for the goods and services and provide
necessary finance for the development of business and trade. Thus, bank may also be
defined as a financial institution that links the flow of funds from savers to the users.
There are many other financial institutions that are not usually thought of as banks
but which nevertheless provide one or more of these broadly defined banking
services. These institutions include finance companies, investment companies,
investment banks, insurance companies, pension funds, security brokers and dealers,
mortgage companies, and real estate investment trusts.
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DEFINITION OF BANK
Bank is also defied as “one who is ordinary course of business honors the
cheque drawn upon him by person from and for whom he receives money on current
accounts.”
BANKING
Banking is an ancient business with its history dating back to the 13 th century when
the first bill of exchange was used as money in medieval trade in Italy. In the late
1200’s bards ad peruzzi families of Florence first formed bank. For centuries bank
have borrowed and lend money to businesses, trade and to people, charging interest
on deposits.
There are many other financial institutions that are not usually thought of as banks but
which nevertheless provide one or more of these broadly defined banking services.
These institutions include finance companies, investment companies, investment
banks, insurance companies, pension funds, security brokers and dealers, mortgage
companies, and real estate investment trusts.
Banking is the business of providing financial services to consumers and businesses.
The basic services a bank provides are Opening Accounts, which can be used to
deposit money as it is not safe to keep huge amount of money in office or house. It
also provides cheque facility which acts as a cash which had made easier to make
payments and purchase goods and services and therefore help both consumers and
businesses, who would find it inconvenient to carry or send through mail huge
amounts of cash. In this way banks plays a very important role .There are various
types of bank which offers such services.
Banking means accepting for the purpose of lending or investment of deposit of
money from the public, repayable on demand or otherwise and withdrawals by
17
cheque, drafts other or otherwise. A banking company may be defined as “any
company which transacts the business of banking.”
Classification of Banks in India
1. Public Sector Banks
These are the banks which are controlled by Governments.
a) State Bank of India and its associate banks called the State Bank Group
b) 20 Nationalized Banks.
c) Regional Rural Banks mainly sponsored by Public Sector Banks.
2. Private Sector Banks
These are the banks which are not owned by the governments .These banks are
privately owned.
a) Old generation private banks
b) New generation private banks.
c) Foreign banks in India.
d) Scheduled co-operative banks.
e) Non-scheduled banks.
3. Co-operative Banks
The Co-operative banking sector has been developed in the country to the supplement
village money lender.
a) State Co-operative Banks.
b) Central Co-operative Banks.
c) Primary Agriculture Credit Societies.
d) Land Development Banks.
e) Urban Co-operative Banks.
f) Primary Agricultural Development Banks.
g) Primary Land Development Banks
h) State Land Development Banks
4. Development Banks
These banks help in the Infrastructure development of the economy.
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a) Industrial finance corporation of India (IFCI)
b) Industrial Development bank of India (IDBI)
c) Industrial Credit and Investment Corporation of India. (ICICI)
d) Small Industrial Development Bank of India. (SIDBI)
e) National Bank for Agriculture and Rural Development. (NABARD)
f) Export Import Bank of India.
g) National Housing Banks.
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SOME OF THE IMPORTANT FEATURES OF BANKING ARE AS
FOLLOWS
Dealing of Money
The bank accepts money from the public and advances them as loans to the needy
people. The deposits of different type – current account, fixed account, saving
account. The deposits accepted on various terms and conditions.
Deposits Must Be Withdrawals
The deposits (other than the saving deposits) made by the public can be withdraw
able by cheques, drafts, or otherwise that is bank issue and pay cheques.
Dealing with Credit
The banks are the institution that can create credit that is creation of additional money
for lending. Thus “creation of credit” is unique feature of banking.
Commercial in Nature
Since all banking functions are carried on with the aim of making profit, it is regarded
as commercial institute.
Nature of Agent
Bank possesses the character of an agent because of various agency services it
provides.
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INDUSTRY PROFILE
SERVICE SECTOR
Service sector in Indian economy have been rising. It accounted for 28% GDP in
1960-61 at constant prices. Its share has increase up to 40% in 1980s. it is natural that
the acceleration of growth of service sector result in a declaration in the growth of
primary and secondary sectors.
In today’s present world the service is growing at a phenomenal rate. In almost all
countries of the world look interested in utilizing this sector of economy.
The service sector plays a very important role in shaping the future of an economy
The economy of the world is dominated by services, which accounts for nearly two-
third of the GDP and employment. Throughout the developed world service sector is
becoming the primary source of wealth, trade, and growth.
Application of new technology and deregulation of services are posing new
challenges to service companies. Airlines, insurance companies, banks, tourism,
telecommunication as well as professional services need a new approach to address
the challenge
21
IMPORTANT CHARACERISTICS OF BANKING INDUSTRY OR SECTOR
Banking industry is going through a rapid transition phase all over the world. Small
banks are facing a cruel competition from the big players. Virtual banks in Internet
are challenging the traditional banking system and global boundaries are being
smashed day-after-day that gives birth to a small global village. Plato said once "The
unexamined life is not worth living". So let us understand what will be the future of
retail banking after 25-30 years? What are the services you can expect from
them?
The scale of the global opportunities, the complexity of the competitive field, and the
harsh performance discipline imposed by the capital markets will force all the banks
either to specialize and become world class in their chosen field, or exit. There will be
no small banks in national or regional level as they would either be taken over by the
multi-national banks or they would exit from the business, forced by the global
competition. Banks will be the one-stop shop for all your personal finance needs.
Nevertheless, banks will adopt the loyalty-based competitiveness to make you bank
with them assuring highest level of customer satisfaction.
Banking Network:
The number of ATMs will be very high and all the banks will be sharing the each
other’s ATM network due to space problem and to reduce the cost of operation.
Presently, traditional banking costs the banks more than a Dollar per person, ATM
banking costs 27 Cents and Internet banking costs below 4 Cents approximately.
Banks will try reducing the banking costs more but there will always be a high
demand for face-to-face interaction from customer side - indicates Mckinsey
Quarterly Research.
Service Offerings:
Banks will be a one-stop shop for all your personal finance needs. You will get all
insurance products and broking services to trade in the share market apart from all the
possible banking services. Balancing customer needs in retail banking distribution
will be a crucial factor for the success of the banks. Regulatory hassles will be too less
22
and there is a high possibility that Investment banks, Insurance companies and Retail
Banks will integrate their operation in parts to serve the customers better. Wireless
financial services, an important part of m-commerce will offer consumers a new level
of convenience in an increasingly busy world with high-speed technology. BCG
estimates that within few years, hundreds of millions of people worldwide will use m-
commerce applications, generating business-to-consumer revenues of up to $100
billion.
Social Responsibility:
Banks will take the role of social institutions and will act as social advisors. Personal
finance advisory services will be available in your mobile devise from time to time,
indicates Boston Consulting Group’s research. Banks will be the most powerful social
institutions, as they will hold the individual’s money. The level of personalization will
be too high and you will be offered services like day-to-day spending management.
You can actually pre-program your yearly budget at a particular time and thus your
mobile device will alert you if you exceed your day’s spending.
Loyalty Based Competition:
The concept of Boston Consultancy Group’s ‘Time based competitiveness’ may face
a challenge from the concept of ‘Loyalty based competitiveness’. In other words,
when all the banks start offering the highest level of customer satisfaction, customers
will be confused and then banks will try to create the ultimate loyalty program to
make sure, you will stick to the bank for quite a long time. The quest for loyalty will
re-shape the customer satisfaction and you will experience far better privilege than
now-a-days with bundle of benefits at less cost.
All the banks in future will fight with uncertainty and complexity due to the rapid
global changes. The uncertainty creates fear and complexity creates confusion.
Therefore, they will try to be the excellent customer oriented banks to serve you better
to ensure their survival.
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PROFILE OF TJSB BANK
Professional Board and Pragmatic decision making
Consistent profit and growth for last 34 Years
Equilibrium in Growth and profits
Strong Internal Reserves and CRAR at 20%
Balanced Credit Portfolio & focus on Retail /SME Segment
Strong Focus on Recovery and NPA Management
First Co-op Bank to offer Banc assurance Product in association with Max
New York
Anywhere Any Branch Banking facility in all Branches
28 ATM’s installed in Branches at Thane, Mumbai, Pune and Nasik
24x 7 Cheque Issuance Machine at e-Lobby at Naupada Branch
24x 7 Cheque Depository machine at 16 branches
Value Added services for Customers
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TJSB BANK
Bank Name: Thane Janata Sahakari Bank Ltd.
Facility: Branch
Address: Maruti Ashish, off. J N Road, Opp. Apna Bazar,
Mulund (West), Mumbai - 400 080.
Working Hrs: 6 to 8 hrs
Phone: 02225692554
Fax: 02225690019
E-mail: [email protected]
Website: http://www.thanejanata.co.in
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HISTORY
With the modest beginning in 1972 in the co-operative field, the dynamism
infused by the Board of Directors, unflinching loyalties of clientele and devotion of
staff has propelled the sound foundation of The Thane Janata Sahakari Bank Ltd
(TJSB) and has emerged as one of the leading scheduled co-operative Bank in the
country.
TJSB presently is catering to the needs of society through a close network of
37 Branches and 5 Extension Counters spread all over the city of Thane, Mumbai,
Navi Mumbai, Nasik & Pune. All these Branches have made remarkable progress on
all Fronts in all these years.
TJSB believes that "customer delight" is the ultimate goal and has a strong
belief that Customers & all Stakeholders wholehearted support, absolute faith and
their patronage has largely been responsible for its enviable growth. TJSB is
committed to provide banking with speed, comfort and convenience.
TJSB feels proud to acknowledge the growth of large number of successful
industrialists, traders and professionals who have grown leaps & bound due to timely
Assistance and support of the bank.
TJSB has set before a Visionary Growth Plan focusing all business strategies
solely on creation of Stakeholders value.
26
TJSB Banking Services
INITIAL BANKING SERVICES
Banking services are extremely important in a free market economy such as
that found in Canada and the United States. Banking services serve two primary
purposes.
First, by supplying customers with the basic mediums-of-exchange (cash,
cheque facility, and credit cards), banks play a key role in the way goods and services
are purchased. Without these familiar methods of payment, goods could only be
exchanged by barter (trading one good for another), which is extremely time-
consuming and inefficient.
Second, by accepting money deposits from savers and then lending the money
to borrowers, banks encourage the flow of money to productive use and investments.
This in turn allows the economy to grow. Without this flow, savings would sit idle in
someone's safe or pocket, money would not be available to borrow, people would not
be able to purchase cars or houses, and businesses would not be able to build the new
factories the economy needs to produce more goods and grow. Enabling the flow of
money from savers to investors is called financial intermediation, and it is extremely
important to a free market economy.
Commercial banks and thrifts offer various services to their customers. These
services fall into three major categories: Opening Accounts, Loans, and Cash
Management Services.
A) Opening Accounts
Banks facilitated the opening of three major types of accounts:
Saving Accounts
Current Account
Fixed Deposits Accounts
Saving Account is an account in which people can save the money fort
short period of time. The customer can deposit or withdraw the money at
27
any time and there are no restrictions on the times of removal of money.
The customer can remove the money from the saving account by cheques
or withdrawal form, but in case for issuing cheques book he needs to have
a minimum balance in his saving account and in case of withdrawal form
the customer should have a minimum balance of generally Rs.100 in case
of Co-OP banks and 500 in case of nationalized banks.
Current Account: A current account is mostly used by the business
people because they can safely deposit their money as keeping huge
amount in the office is not safe. There are no restrictions on the number of
time the deposits and withdrawal of money. The bank also provides
overdraft facility on this kind of account. As a businessman may be in a
need of money at any time. The rate of interest is very low as compared to
other types of accounts.
Fixed Deposits Accounts: In this account the funds are deposited for a
particular fixed period of time (5years, 10 years). This period is known as
Maturity Period prior to which the money cannot be withdrawn. If the
person wants to withdraw the money before the maturity period he will
loose his interest for that particular year. The interest earned on such
accounts is maximum as compared to other accounts.
B) Loans
Banks provide Short Term, Medium Term and Long Term Loans which can take any
of the below form:
Commercial / Industrial Loans
Consumer loans,
Mortgage loans.
Commercial and Industrial loans are loans to businesses or industrial
firms. These are primarily short-term working capital loans (loans to finance
the purchase of material or labor) or transaction or longer-term loans (loans
to purchase machines and equipment). Most commercial banks offer a
variable rate on these loans, which means that the interest rate can change
28
over the course of the loan. Whether a bank will make a loan or not depends
on the credit and loan history of the borrower, the borrower's ability to make
scheduled loan payments, the amount of capital the borrower has invested in
the business, the condition of the economy, and the value of the collateral the
borrower pledges to give the bank if the loan payments are not made.
Consumer loans are loans for consumers to purchase goods or services.
There are two types of consumer loans: closed-end credit and open-end
credit.
o Closed-end credit loans are loans for a fixed amount of money, for a
fixed period of time (usually not more than five years), and for a
fixed purpose (for example, to buy a car). Most closed-end loans are
called installment loans because they must be repaid in equal monthly
installments. The item purchased by the consumer serves as collateral
for the loan. For example, if the consumer fails to make payments on
an automobile, the bank can recoup the cost of its loan by taking
ownership of the car.
o Open-end credit loans are loans for variable amounts of money up to
a set limit. Unlike closed-end loans, open-end credit does not require
a borrower to specify the purpose of the loan and the lender cannot
foreclose on the loan. Credit cards are an example of open-end credit.
Most open-end loans carry fixed interest rates-that is, the rate does
not vary over the term of the loan. Open-end loans require no
collateral, but interest rates or other penalties or fees may be charged-
for example, if credit card charges are not paid in full, interest is
charged, or if payment is late, a fee is charged to the borrower. Open-
end credit interest rates usually exceed closed-end rates because
open-end loans are not backed by collateral.
Mortgage loans or real estate loans are loans used to purchase land or
buildings such as houses or factories. These are typically long-term loans
and the interest rate charged can be either a variable or a fixed rate for the
29
term of the loan, which often ranges from 15 to 30 years. The land and
buildings purchased serve as the collateral for the loan.
C). Cash Management and Other Services
Although deposits and loans are the basic banking services provided by banks,
these institutions provide a wide variety of other services to customers. For
consumers, these include cheques cashing, foreign currency exchange, safety deposit
boxes in which consumers can store valuables, electronic wire transfer through which
consumers can transfer money and securities from one financial institution to another,
and credit life insurance which automatically pays off loans in the event of the
borrower's death or disability.
For businesses, commercial banks also provide specialized cash management
and credit enhancement services. Cash management services are designed to allow
businesses to make efficient use of their cash. For example, under normal
circumstances a business would sell its product to a customer and send the customer a
bill. The customer would then send a cheques to the business, and the business would
then deposit the cheques in the bank. The time between the date the business receives
the cheques and deposits the cheques in the bank could be several days or a week. To
eliminate this delay and allow the business to earn interest on its money sooner,
commercial banks offer services to businesses whereby customers send cheques
directly to the bank, not the business. This practice is referred to as "lock box"
services because the payments are mailed to a secure post office box where they are
picked up by bank couriers for immediate deposit.
Another important business service performed by banks is a credit
enhancement. Commercial banks back up the performance of businesses by promising
to pay the debts of the business if the business itself cannot pay. This service
substitutes the credit of the bank for the credit of the business. This is valuable, for
example, in international trade where the exporting firm is unfamiliar with the
importing firm in another country and is, therefore, reluctant to ship goods without
knowing for certain that the importer will pay for them. By substituting the credit of a
foreign bank known to the exporter's bank, the exporter knows payment will be made
30
and will ship the goods. Credit enhancements are frequently called standby letters of
credit or commercial letters of credit.
31
Financial Services
On the Technology front, Bank has implemented successfully the "Core
Banking Solution" (CBS) developed by M/s Infrasoft Technologies Ltd. Bank has
state of art Data Center This has helped us to migrate the Branches from being the
processing centers to marketing customer's centric outfits. It will also extend the
Bank's reach to its customers by multiple delivery channels such as ATM, Internet,
and Mobile etc. This has brought the Bank on par with the leading Banks.
TJSB is the first Bank in Co-Operative sector to install Cheque Depository
Machines at 15 branches, which are operational 24 x 7. TJSB is the first Bank to
install Cheque Book Making and Issuance Machine at Naupada - E-Lobby by which
customers can avail the facility of issuance of Personalized Cheque Book
1. Cheque Depository Machine
Branches of the Bank are fully equipped with Cheques depository
machines giving the convenience to the customers to deposit the cheques
24x7x365. The printed acknowledgement is given to the Customers by the
Cheques depository machine for Cheques being deposited in the machine.
2. Automated Cheque Issuance Machine
Bank has always put the thrust on providing value added services to the
customers which will be operational on 24x7x365. As part of this process Bank
has installed the Automated Cheques Issuance Machine at its e-lobby at
Naupada Branch. Under single customer Id all the accounts maintained in the
bank will be displayed for selection. Customer has to just enter the Customer Id
and secret pin issued to him and customer’s personalized Cheque book will be
issued without any manual intervention. All the Customers of the bank
irrespective of the Branch where the account is maintained will able to take the
benefit of the facility.
32
3. SMS Banking
SMS Banking services are available for the Customers of the bank to
know the latest balances and last 3 transactions in their account using the SMS
feature of the Mobile Phones. Apart from Customer pull operations Bank is
also giving SMS alerts to the Customers for clearance of cheques, maturity of
terms deposits, return of the cheques and host of other services.
4. E-Lobby At Naupada Branch
Customer Delight being the motto the bank has implemented and
focusing on creation of virtual service outlets operated through Customer
Activated delivery channels. The e-Lobby of the Bank at Naupada is now
equipped with 3 ATM’s, Cheque Depository machines and 24x7 Automated
Cheque Book Issuance machines.
5. RTGS
The Real Time Gross Settlement (RTGS) System aims to do what e-mail
did for the post card. Instead of sending instructions for payments through
cheques, with Real Time Gross Settlement System banks can route payments
through on-line messages to RBIs RTGS payment gateway.
RTGS facilitate the funds transfer across the Banks and Branches. At
present 95 Banks and 1435 Branches are under RTGS system. Under RTGS
system Inter Bank transactions and Customer Transactions has been enabled by
the RBI
Customer Transaction can be outward or inward remittances i.e. Funds can
be transferred by or received by the Customer under RTGS system. The unique
feature of the system is unlike other clearing system in RTGS Funds can be
transferred or received Just In Time i.e. within 2 hours of instructions so given
that to at cost less than drafts charges.
33
6. Automated Teller Machines
ATM facility is provided at all branches including extension counter.
Thane Janata is the First Co-operative bank to set up "OFF-SITE" ATM's.
The bank has a network of 28 ATM Centers. Off-Site ATM launched at
Khadke Building, Opp. Saraswati Secondary High School, Naupada, Thane West.
7. Safe Deposit Lockers
Thane Janata offers to the customers Safe Deposit Lockers at all the
branches except Airoli in Navi Mumbai and Rabodi K Villa.
The facility is made available throughout business timings.
8. Savings Deposit Account
Savings Account at The Thane Janata Sahakari Bank comes with
banquette of facilities & services at no extra charge to the Customers. Eligible
person/s and eligible organizations or agencies as approved can open
Savings Account with the Bank. Savings Account can be opened with
Rs.1000/- and minimum balance to be kept in the Account is Rs.1000/- only.
Amount can be withdrawn from Savings Account by way of cheques or
withdrawal slips. Interest is paid half yearly on Savings Account at 3.5 % p.a.
As per the directives fixed by Reserve Bank of India.
9. Current Account
Current Accounts can be opened by Businessmen / Proprietorship /
Partnership Firms / Public or Private Companies requiring doing multiple or
numerous business transactions. Customer can deposit or withdraw the amount
as many times required. Minimum Balance to be maintained is Rs.2500/- in
the account.
34
OTHER FACILITIES PROVIDED BY TJSB BANK
ATM Card Facility with withdrawal Limit of Rs.20, 000/ for Proprietary
Accounts
Any Branch Banking Facility through out all Branches of the Bank for operations
in Current Accounts.
SMS banking facility for Balance Inquiry, Statement Details,Transaction Alerts
24x7 Cheque Issuance Machine facility for getting personalized cheques at any
time
Statement of Account at monthly intervals by e-mail
24x 7 Cheque Deposit Facility with acknowledgement for cheques deposited
Commercial & Other Loans
Bank is actively lending to all sectors of the Industries \ Business and provide
customized solutions for Small Business activities, Transporters, wholesalers,
stockiest, Distributors, Retailers having exclusive showrooms dealing in FMCG
products, readymade garments, consumer durables, pharmaceutical stores, etc. Bank
also actively considers Working Capital Term Loans for execution of ad-hoc orders or
Loans against mortgage of existing securities for specified purposes.
Purpose
For establishment \ modernization \ up-gradation of Fixed Assets
• Setting up Office, Renovation of the premises
• Purchase of vehicles, etc.
• Working Capital Limits
• Export Finance and Guarantee Limits.
• Eligibility Exiting running business activity and good track record
35
Foreign exchange business
To deal with import-export credit needs of the customers, the bank has made
special arrangements with the nationalized / private and foreign banks.
FINANCIAL PERFORMANCE OF TJSB BANK
Gross profit of TJSB Rs 25.63 crore
Net profit of TJSB Rs 23.99 crore
Deposit growth 14.30 percent over the previous year
Share of low cost deposits Grew to 37.48 percent from 34.28
percent last year
Cost of deposits Reduced from 5.87 percent to 5.81
percent
36
CHAPTER 5
DATA ANALYSIS
&
INTERPRETATION
37
PROFILE OF SAMPLES
Total 100 people were contacted and 50 were respondent.
Awareness of ‘Banking Services’
Yes No
82 18
It shows that people are aware about the benefits of banking and how it is useful.
From chart 6 it is seen that 82% of the people are aware of the concept of banking &
18% of the people do not know about banking.
38
Respondents Age Group
20-30 31-40 41-50 51 & above
42 28 23 7
39
Educational Qualification
Illiterate Up to 12th std Under Graduate Graduate Post Graduate
- 12 11 60 17
From the above graph it is clear that the people contacted were literate enough to
know and answer the questions properly.
40
Occupation Wise
Business Service Professional Others
21 62 15 2
41
Involvement of Customers
Which type of account you have in a bank?
Interpretation:
During the survey it was found out that the 50% of the customers are interested in saving a/c as it has a lucrative activity these days and 26% of the customers are interested in current a/c. Only few of the customers were interested in fixed deposit a/c i.e. 24%.
42
Which type of services preferred by you the most?
Interpretation:
According to survey, 60% customers prefer ATM service and 8 % of customer can prefer internet banking service. 8 % customers prefer phone banking and 10% customers prefer SMS banking, 4% customers prefer Safe deposit lockers & 10% customers prefer core banking service.
43
Which retail banking product have you availed?
Interpretation:
In the above graph, it is indicated that 30% of customers prefer Home Loans and 18% of customer can availed car loan & 14% for educational loan, this because of this three are major chunk of retail product. So, rest 26% can availed personal & 12% for other product availed by customer.
44
How you were aware about TJSB product of them?
Interpretation:
10% of customer can awareness the product through television & 40% can aware through newspaper and magazines & 10%can aware through radio. So this both can give more information about product to customer. Also 30% can aware through word of mouth & rest 10% through billboards / hoardings.
45
Are you satisfied with TJSB services?
Interpretation:
In this survey 50% of customer can satisfied with TJSB services because it provides core services. Also 20% of customer not satisfied with services & rest 30% cannot decide anything.
46
Rating to the Factors
Factors rated by the customers
Better Service People want agents Better Claim Satisfaction’ Flexibility
47
Can TJSB provide better facility than other bank?
Interpretation:
In this survey 20% of customers are satisfied with TJSB’s services as compared to other bank’s services and 60% of customers are not satisfied with services of TJSB as compared to other bank’s services & rest 20% cannot decide anything.
48
CHAPTER 6
FINDINGS
&
ANALYSIS
49
FINDINGS AND ANALYSIS
Findings in the project are based on the questionnaire analysis. The
questionnaire was filled by 50 respondents. The information given by the respondents
is right as per the knowledge.
OTHER IMPORTANT FINDINGS
It was found that maximum number of customers is involved in services such as
savings, fixed deposits, of TJSB bank.
It was found that interest rates provided by the bank on various schemes should be
increased.
‘Better Service’ is one of the factors which were highly rated by everyone. Maximum
people rated it 4 or 5 which shows how important this factor is.
50
People’s Rating to the Factors
From the survey done the following can be observed that;
‘Better Service’ is one of the factors which were highly rated by everyone.
Maximum people rated it 4 or 5 which shows how important this factor is.
It was found from the survey that people want agents which should give them
full information about the bank and the services. Many people rated it 3 or 4. It
also got rating of 5 from some people.
‘Better Claim Satisfaction’ was the factors which were highly rated by
maximum number of people.
‘Flexibility’ is factor which got average rating from the people. This shows that
people want flexibility in the services to some extent.
Suggestions given by the people
All the people contacted were not satisfied with their some services. They wanted a
banker which can satisfy them by providing better service by better after sales-service
and better claim satisfaction. People want a new range of services with a wide
coverage of risk. This shows that till now no bank is able to satisfy their customers in
every way. This is the fact that every bank should try to understand and try to provide
better and satisfactory service.
51
SUGGETIONS
“Change” is a continuous process and banking industry is no exception to this
law which is natural. Due to the implementation of the financial sector reforms and
policies for the country change in the banking industry is inevitable.
This changes and challenges are taking place in the present globalization
scenario. This can be done through the customer’s satisfaction, suggestions through
the customers.
To bring change in product development strategy this means changes in the
structure of bank product.
As per the changing trends, compel certain modification to be made in the
existing product line.
The banker must offer a multimentional product. They need to add more
innovation services to their product.
Incorporating technological development as per the scenario, with introduction
of new schemes.
Banking services need proper segmentation to deal with the different type of
customers.
Bank should adopt the internal marketing in order to make the customer-
oriented.
The focus is on creating product and services that meet the needs of the target
customer and are profitable for the bank as well.
As per today’s scenario, skill for operating in electronic environment and new
internal audit skill in a business environment.
The banker should establish the committee of customer service in each and
every bank.
52
CONCLUSION
The study has been conducted on “study on banking services” of various
services offered by Thane Janata Sahakari Bank at Thane.
The study focused on the involvement of the customers in various services
offered by Thane Janata Sahakari Bank at Thane.
The study has been concluded that the bank should announce more innovation
services to their product.
The interest rate on fixed deposit should be increased to attract the customers.
Their should be attractive interest rates for both short term & long term fixed deposits
53
CHAPTER 7
ANNEXURE
54
QUESTIONNAIREQUESTIONNAIRE
Note :- ( plz tick only one from multiple answers)
Personal InformationPersonal Information
Name :Name :
Age :Age :
Sex :Sex : Male [ ]Male [ ] female [ ]female [ ]
Education :Education :
Occupation :Occupation :
Business [ ]Business [ ] service [ ]service [ ]
Professional [ ]Professional [ ] student [ ]student [ ]
Other (specify) Other (specify)
Average Income -- Average Income --
1. Which type of account you have in a bank?
a) Saving accountb) Fixed deposit account
c) Current account
d)
2.Which type of services preferred by you the most?
a) ATM service
b) Internet banking
c) Phone banking
d) SMS banking
e) Safe deposit lockers
f) Core banking
55
2. Which retail banking product you have availed?
a) Housing loan
b) Car loan
c) Education loan
d) Personal loan
e) If other, plz specify................................................
f)
1. How you were aware about TJSB product of them?
a) Television
b) Newspapers & magazines
c) Radio
d) Word of mouth
e) Billboards/hoardings
Last .Are you satisfied with TJSB services?
a) Yes
b) No
c) Can’t say
Reason why................................5.Rate your bank with respect to services they provide5.Rate your bank with respect to services they provide
Excellent [ ]Excellent [ ]
Very good [ ]Very good [ ]
Good [ ]Good [ ]
Average [ ]Average [ ]
Poor [ ]Poor [ ]
3. Can TJSB provide better facility than other bank?
a) Yes
b) No
c) Can`t Say
56
4. Can you give any opinion to us?
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
5. Would you suggest any improvement?
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
57
BIBLIOGRAPHY
Books
Service Sector Management – Vipuls
Service Sector Management – Bhattacharya
Marketing Management - Philip Kotler
Research Methodology – J. K. Kothari
WEBLIOGRAPHY
www.thanejanata.co.in
www.google.com
:: Progress at a Glance :::
Financial Highlights
31stMarch2004
31stMarch2005
31stMarch2006
31stMarch2007
31stMarch2008
31stMarch2009
31stMarch2010
Rs. in Crores
Share Capital 9.16 10.72 12.32 14.48 18.27 27.57 40.09
Reserves 124.59 141.28 157.18 178.92 250.60 281.13 290.93
Own Funds 133.75 152.00 169.50 220.40 268.87 308.7 331.02
Working Capital 1093.92 1177.79 1343.12 1599.73 2596.01 2951.68 3528.69
Deposits 872.13 938.82 1073.06 1328.50 2039.17 2347.05 2799.73
Advances 542.20 582.47 680.43 902.92 1285.46 1506.61 1679.08
Business Mix 1414.33 1521.29 1753.49 2231.42 3324.65 3853.67 4478.81
Gross NPA 8.13% 8.17% 7.06% 4.52% 6.67% 6.36% 4.64%
Net NPA 0.46% 0.80% 0% 0% 0% 0% 0%
CRAR (%) 20.22 20.29 20.01 17.63 14.63 14.74 15.47
Capital Funds 133.76 152.00 169.50 220.40 268.87 308.7 331.02
Gross Profit 24.00 22.02 25.63 41.96 52.08 65.47 71.94
Net Profit 15.88 15.94 23.99 27.00 24.30 24.35 44.19
Dividend (Percent) 15% 15% 15% 15% 15% 15% 15%
Audit Class A A A A A A A
Membership No. 21409 22965 24569 26424 28975 33328 28204
58
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