bba project report

1. 1
SUMMER TRAINING REPORT
ON
“ANALYSIS OF CUSTOMER SATISFACTION IN BANKING
SECTOR OF JAMMU & KASHMIR BANK”
Submitted in partial fulfilment of the requirements
for the award of degree of
Bachelor of Business Administration (BBA)
Affiliated To
Deenbandhu Chhotu Ram University of Science & Technology (DCRUST), Murthal
Submitted to:- Submitted by:-
Vikas Deswal Aadil Hussain Wani
(Astt. Proffessor) R.NO:- 13004031001
BBA 5th Sem.
Bharat Institute Of Technology Sonepat(BITS)
Haryana-131001
Batch (2013-16)

2. 2
CERTIFICATE
This is to certify that the project work titled “ANALYSIS OF CUSTOMER SATISFACTION” is a
bonafied work of Aadil Hussain Wani, Roll No-13004031001. It is carried out in the partial
fulfillment for the award of degree BBA of DCRUST Murthal under mutual guidance. This
report has not been submitted earlier for the award of any degree/diploma of any other
institution/University.
Signature of the Guide
Date:
Name of the Guide:
Designation:
Countersigned
Prof.
Director

3. 3
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “Analysis of Customer Satisfaction in
Banking Sector of Jammu & Kashmir Bank”. The work would not have been possible to
come to the present shape without the able guidance, supervision and help to me by
number of people.......................................
With an overwhelming sense of gratitude, I acknowledge the valuable guidance and
consistent encouragement extended to me by our knowledgeable faculty members like
Gulzar Ahmad with whose guidance, I am able to accomplish this endeavour. Their technical
acumen and years of experience have provided me with crucial inputs at a critical stage.
I also extend my heartfelt thanks to my family and friends for their support directly or
indirectly provided to me.
.........................................
Enrolment no.______________________

4. 4
EXECUTIVE SUMMARY
In the present age, the corporate world has become highly competitive. Hence, only that
service company can sustain which enjoys a competitive edge over the others. This requires
the formulation of policies and strategies keeping in view the existing financial position, but
formulation of these strategies is only possible when the company enjoy a strong
knowledge base of the environment prevailing. Assessments of environmental
position/condition of an industry/a company on the part of management
trainee/management require coupling his/her theoretical knowledge with some practical
exposure and experience.
The project is an attempt to find out the way of customer satisfaction adopted by the banks
in the real world. So that it would be useful for a manager and staff in the real business
when he will have the responsibility to do the same .
The research methodology in this project is of descriptive nature. A comprehensive study
was done to gather the primary data by conducting personal interview.
For any bank, which exists, the prime motive is that it should be concerned with the
customer satisfaction. In today’s competitive scenario where there is a lot of competition,
the emphasis was to study the usefulness of the current schemes and services of the J&K
Bank Ltd, and also to study the working result so as to find out what is still required in the
banking industry to face competition at all levels.
The project was a great source of learning and a good experience as it made us aware of
professional culture and conduct that exist in the organization.

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CONTENTS
S.no Topic Page No.
1 Certificate(s) 2
2 Acknowledgements 3
3 List of Abbreviations 6
4 Chapter-1: Profile of the Firm/Company 7
5 Chapter-2: SWOT Analysis of the company 28
6 Chapter-3: Analysis of Financial Reports of the company 30
7 Chapter-4: Lessons Learnt 49
8 Body of the report 58
9 Reference/Bibliography 59
10 Appendices 60

6. 6
LIST OF ABBREVIATIONS
S.No. Abbreviated Name Full Name
1 CRM Customer Relationship Managment
2 EPS Earning Per Share
3 CS Customer Satisfaction
4 Int Introduction
5 DA Data Analysis
6 R/B Reference & Bibliography
7 MRK Marketing
8 TC Table of Content
9 J&K B Jammu & Kashmir Bank

7. 7
CHAPTER-I
PROFILE OF THE COMPANY

8. 8
PROFILE OF THE COMPANY
INTRODUCTION
What is bank?
Bank is defined as an institution for the keeping, landing and exchanging etc. of money.
Economists have also defined a bank highlighting its various functions. According to
Crowther, the banker business is to take the debt of other people to offer his own in
exchange and thereby create money.’’ Thus a bank is an institution that accepts deposits
from the public in turn advances loans by creating credit.
It is different from other financial institutions in that they can’t create credit though they
may be accepting deposits and making advances.
Types of banks
Commercial banks: are those banks, which perform all kinds of banking functional such as
accepting deposits, advancing loan and agency functions. They are also called joint stock
banks as they are organized in the same manner as joint stock companies. They usually
advance short term loans to customers some of commercial banks in India are Andhra Bank,
Canara Bank, Indian Bank, PNB etc.
Exchange banks: are those banks, which deal in foreign exchange and specialize in financing
trade. They are called foreign exchange banks. In India these exchange banks have their
head offices located outside India. These banks also render other services such as collecting
and supplying information about the foreign customers providing remittance facilities etc.
such as chartered bank, Gridlays bank.
Industrial banks: are those banks, which provide medium term and long term finance for
industries for the purchase of land, machinery, etc. They underwrite the debenture and
shares of industries and also subscribe to them such as industrial development bank of
India, industrial finance corporation of India etc.
Agricultural banks: are those banks, which provide cr. To farmers for short term, medium
term and long term needs. In India, commercial banks, regional rural banks and agricultural
co-operative banks provide short term loans to farmers. Such as national bank for
agriculture and rural development, NABARD
Cooperative banks: are those banks, which are organized on the principle of cooperation.
They provide short term, medium term loans to their members. In rural area there are
agriculture cooperative banks, which are also cooperative banks, which perform the
function of ordinary commercial banks but give loan to their members only.

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They also get funds from the RBI. There is a state cooperative bank in every state of India
with its branches at the district level known as the central cooperative banks.
Saving banks: helps promote small saving and mobilize them. They have been very
successful in Japan and Germany. In India post office act as saving bank.
Central banks: is the apex bank, in a country, which controls its monetary, and banking
structure. It is owned by the govt. of the country and operates in national interest. It
regulates and issues currency, performs banking and agency services for the state, keeps
cash reserves of commercial bank, keeps & manages international currency, act as the
lender of the last resort, acts as the clearing house and controls of credit. The RBI is the
central bank in India.
Banking system
The banking system is an integral sub-system of the financial system. It represents an
important channel of collecting small saving from the households and lending it to the
corporate sector.
The Indian banking system has the RBI as the apex body for all matters relating to the
banking system. It is the ‘central bank’ of India. It is the bankers to all other banks.
Functions of RBI:
1. Currency issuing authority.
2. Banker to the government.
3. Banker to other banks.
4. Farming of monetary policy.
5. Exchange control.
6. Custodian to foreign exchange and gold reserves.
7. Development activities.
8. Research and development in the banking sector.

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1.1 company profile of the organization
The Jammu & Kashmir bank is today one of the fastest growing banks in India network of
more than 664 branches/offices spread across the country offering world class banking
products/services to its customers . Today, the Bank has a status value driven organization
and is always working towards building trust with Shareholders, Employees, Customers,
Borrowers, Regulators and other diverse stakeholders, for which it has adopted a strategy
directed to developing a sound foundation of relationship and trust aimed at achieving
excellence in all pursuits. J&K Bank considers good Corporate Governance. Good
Governance is a source of competitive advantage and a critical input for achieving
excellence in all pursuits. J&K Bank considers good corporate Governance as the sine qua
non of a good banking system and has adopted a policy based on all the four pillars of good
governance-transparency, fairness and control, leading to stakeholders delight, enhanced
shareholder value and ethical corporate citizenship. It also ensures that bank is managed by
an independent and highly qualified Board following best globally accepted practices,
transparent disclosures and empowerment of shareholders, besides ensuring to meet
shareholders aspirations and societal expectations following the principals of management’s
executive freedom to drive the bank forward without undue restraints but within the
framework of effective accountability. The excellence achieved by the bank in its operations
stemming from the roots of voluntary good Governance has not gone unrecognized and
Bank has recently bagged three very prestigious awards for following fair business practices
and commitment to social obligations.
Only on domestic front but also for the foreign exchange earnings. The bank disturbed
advances to the tune of Rs 5.76Lakh in first year Entire banking in the state of Jammu and
Kashmir was performed by traditional lenders till 1920-30 and that too at exorbitant interest
rates. At the same time some banks functioned at a very limited scale, such as Punjab
National Bank Limited, Grindlay’s Bank and Imperial Bank of India.
The role of these banks was reduced to the acceptance of deposit, as they could not grant
loans and advances to the people of the state owing to the statutory limitations. Under this
scenario banks could not ameliorate the financial and social position of the people of the
state. To overcome this critical situation then Maharaja of the state conceived an idea of
setting up of a state bank in the state. After a prolonged exercise and deliberations the
assignment for establishment of “The Jammu and Kashmir Bank Limited” was given to the
late Sir Sorabji N Pochkhanwala, the Managing Director of the Central Bank of India.
Mr. Pochkhawala formulated a scheme on 24-09-1930, suggesting establishment of a semi
state Bank with participation in capital by state and the public under the control of state
Government. Thus the bank was formally incorporated on the 01-10-1938 and commenced
business from 4th of July 1939 at its registered Office Residency Road Srinagar, Kashmir.
The Jammu and Kashmir Bank Limited has been the first of its nature and composition as a
state owned bank in the country. The state government besides contributing half of the

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issued capital also appointed it as its bankers for general banking and treasury business. In
its formative years, the bank had to encounter several serious problems, particularly around
the time of independence, when out of its total of ten branches two branches of
Muzaffarabad and Mirpur fell to the other side of the line of control(now Pak Administered
Kashmir) along with cash and other assets in 1947. However the State Govt. came to its
rescue with the assistance of Rs 6.00Lacs to meet the claims however the bank stead fastily
over came its difficulties and kept growing.
Following the extension of Central laws to the state of Jammu & Kashmir, the bank was
defined as a govt. company as per the provisions of Indian companies act 1956. The bank
had its first full time chairman in 1971, following social Central measures in banks. The year
1971 was a turning point for the bank on conferment of scheduled bank status and
witnessed remarkable progress in all the vital fields of operations. The bank was declared as
“A” Class Bank by Reserve bank of India in 1976. In recognition of dominant role and exalted
performance, Reserve bank of India appointed the bank as its agent for performing the
general banking business of the Central Govt. especially in maintaining currency chests and
collection of taxes. The landmark achievement of the bank in some important fields of
operation since its inception to March 2011 are detailed below:
Brief Profile: Jammu & Kashmir Bank is the only Bank in the country with majority
ownership vested with a state government- the Government of Jammu & Kashmir.
J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialized bank in the
rest of the country. It is also the only private sector bank designated as RBI’s agent for
banking business, and carries out the banking business of the Central Government, besides
collecting central taxes for CBDT.
J&K Bank follows a two-legged business model whereby it seeks to increase lending in its
home state which results in higher margins despite modest volumes, and at the same time,
seeks to capture niche lending opportunities on a pan-India basis to build volumes and
improves margins.
J&K Bank operates on the principle of ‘socially empowering banking’ and seeks to deliver
innovative financial solutions for household, small and medium enterprises.
The Bank, incorporated in 1938, and is listed on the NSE and the BSE. It has a track record of
uninterrupted profits and dividends for four decades. The J&K Bank is rated P1+, indicating
the highest degree of safety by Standard & Poor and CRISIL.

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Registered Office
 M A Road
 Srinagar 190001
 Jammu & Kashmir
Corporate Headquarters
 M A Road
 Srinagar 190001
 Jammu & Kashmir
 www.jkbank.net
1.2. Explain the nature of the organization and its business support services
Technology application has remained the thrust area of the Bank for last many years with an
objective to offer state of the art world class banking facilities to its customers. The Bank
continued to leverage information technology as a strategic tool for its business operations,
to gain competitive edge in customer service as well as improving productivity and
efficiency. The Bank’s IT strategy emphasizes enhanced level of customer services through
24*7 availability, multi-channel Banking and cost efficiency through optimal use of
electronic channels, wider market reach and opportunities for cross-selling. The Bank’s
focus is on harnessing technology for integrating diverse products and services. Keeping this
in view, the Bank continued to widen the scope of multiple delivery channels such as ATM
installations. Anywhere Banking, Internet Banking and SMS Banking at more & more
centres.
Anywhere Banking Features
 Power to Access to your accounts across our branch network.
 The facilities include Cash Deposit/Withdrawal and transfer.
 Outstation Cheque collection.
Internet Banking Features
 Available for both Retail and Corporate users
 SMS Banking
 Funds Transfer
 Submit the filled form at your branch for creation of your Internet banking user

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Corporate/Retail Internet Banking
Both corporate and retail clients can access their accounts anytime and from any location
via the World Wide Web. Presently following services are available to the corporate clients:
Access/view of accounts
 Transfer of Funds between self linked accounts maintained with our bank.
 Transfer of Funds from their own accounts to external accounts (e.g. vendor
payment).
 Transfer of Funds from external to own accounts (e.g. dealer collection).
 Transfers of Bulk upload.
 Transfer to non J & K Bank accounts holders through RBI NEFT/RTGS.
 Utility bill payments.
E-commerce facility for JK Bank E-banking customers
 J &K Bank Secure Payment Gateway, to provide e-commerce facility to the e-banking
customers.
 Tie up with M/S Avenues India Pvt. Ltd (Ceavenue) and M/S Bill Desk, for extending
e-commerce facility to the e-banking customers.
 The facility shall be available to only such e-banking users, which have been enabled
by the Bank for Bill Payment facility.
 E-banking users intending to purchase goods online through the Ceavenue shopping
site shall be required to:
 Logon to the Master Merchant’s (M/S Avenues India Pvt. Ltd.) website
http://world.ceavenue.com/content/clients.jsp.,
 Select the item to be purchased.
 Select e-banking as the mode of payment.
 Select the J & K Bank and the system will take the user to the J & K Bank’s e-banking
site promoting him to enter his e-banking user-id and password.
 After entering the Bank’s e-banking site the customer will be able to pay the amount
of bill by debit to its own account.
 M/S Bill Desk-is a useful service that provides customers a single point of contact for
all your payment needs. Our customer can pay bills and make other payments
online. Instead of writing a cheque each time, now our customers can use any device
connected to the internet (computer, kiosk, etc) and make payments with the click
of a mouse. In effect, through Bill Desk customers can now make All Payments at a
Single Location.

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E-Payment of Tax for
 JK Bank Banking customers
 NSDL (National Securities Depository Ltd.), the first and largest depository in India,
established in August 1996 and promoted by institutions of national stature
responsible for economic development of the country has since established a
national infrastructure of international standards that handles most of the securities
held and settled in dematerialised form in the Indian capital market.
 Tax Information Network (TIN), a repository of nationwide tax related information,
has been established by National Securities Depository Limited on behalf of Income
Tax Department of India (ITD).
 Although India had a vibrant capital market which is more than a century old, the
paper-based settlement of trades caused substantial problems like bad delivery and
delayed transfer of title recently.
 E-payment facilities payment of direct taxes online by taxpayers. To avail of this
facility the taxpayer is required is required to have a net-banking account with any of
the banks certified by NSDL, CBDT and RBI for collection of Direct TAX. J&K Bank has
been added to the list. Also, e-payment of Indirect Tax for J&K state Govt. has been
added to our services.
SMS Banking
 Be in touch with your account on the move features
 Balance Enquiry
 Transaction Enquiry
 Cheque Status Enquiry
ATM Services Features
 A network of more than 390 ATMs deployed across the country.
 Accepting Maestro/Cirrus/MasterCard/VISA/NFS ATM/debit/credit cards.
Debit Cards Features
 Pin Based-Maestro/Cirrus Debit Card.
 Provides online access to saving or current account.
 Accepted at all domestic as well as international MasterCard™, Maestro™, Cirrus™
Enabled ATM’s and Point of Sale locations.
 Accepted at National Financial Switch (NFS) ATM’s.
 No transaction Fee at JK Bank ATM’s.
 No transaction Fee on purchases.

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Credit Cards Features
 20-50 day Credit Free Period.
 Revolving Credit Facility on playing of minimum payment due in the same billing
period.
 Hassle free credit facility at competitive rate of interest.
 Cash Withdrawal Facility up to 20% of total credit limit.
 Loyalty programme
 MasterCard® Secure Code™ enabled Credit Cards J&K Bank lets you sop securely
online with your J&K Bank MasterCard Credit Card. This service through a simple
checkout process, conforms your identity when you make purchases on the internet
 To use the facility, you would:
 Connect to the internet and shop online using your Bank Credit Card.
 You don’t need any special software to use MasterCard Secure Code.
 Using this facility is as easy as using a PIN for ATM transactions.
 Grievance Nodal Officer for Credit Cards.
 Mr. Parvez Ahmad
 0194-2486427
 grievance.creditcards@jkbmail.com
 Card Issuing and Acquiring Department; Corporate Headquarters J&K Bank
Most Important Terms and Conditions (JK Bank Credit Card)
One Time Password (OTP) for IVR transactions: Effective January 1, 2011, as mandated by
Reserve Bank of India (RBI), Credit-Card-issuing Banks in India have introduced an additional
measure of security for IVR transactions (Interactive Voice Response transactions are those
transactions which are made over the phone where certain Credit-Card details are to be
entered into an automated system in order to make payment to a merchant for the
purchase of goods/services) through their Credit Cards & the OTP (One Time Password)
generation.
What is an OTP?
An OTP is a six-digit code, valid for a limited period from the time of placing a request for it.
You will need to obtain an OTP before every IVR payment transaction.
How to obtain an OTP?
You can obtain the OTP by visiting http://www.jkbank.net/jksip.php and logging in to J&K
Bank Secure Internet Payment. A link Pre OTP is available for generating the OTP which
would be emailed to your registered email. Alternatively, the OTP can be displayed on the
screen by clicking on the small check box provided for the purpose.

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How to use the OTP?
The OTP is required at the time of making payment on the IVR, where you will be prompted
to enter it along with the other details like your credit-card number, card expiry date and
CVV number.
Merchant Acquiring/ Features
 All types of Visa & MasterCard based cards Accepted.
 Quick Merchant Payment.
 Merchant Helpdesk and Onsite Support.
 Competitive Commission Rates.
 No hidden Charges.
Basic Information
Depository: A depository is like a bank where securities are held in electronic
(dematerialized) form.
Dematerialization: It is the process of converting the securities held in physical form
(certificates) to an equivalent number of securities in electronic form and crediting the same
to the investor's demat account. Dematted securities do not have any certificate numbers or
distinctive numbers and are dealt only in quantity i.e. the securities are replaceable.
Stock Broking through INVESTMART an initiative of ILFS: You can avail the facility of buying
and selling of shares under single roof. It integrates your Broker, DP and Bank on a single
platform. You may open a trading account by opening a Demat account with J&K BANK,
SAVING ACCOUNT with J&K BANK and Stock Broking Account by filling Investor Registration
form of INVESTMART an initiative of ILFS and our business partner for providing broking
services. For further queries you may contact the DP branches of J&K Bank.
Depository Participant of NSDL and CDSL: In our country there are two central depositories
- National Securities Depositories Limited (NSDL) and Central Depository Services Limited
(CDSL).J&K BANK is Depository Participant of both NSDL and CDSL.
Under the Depositories Act, investors can avail of the services of the depositories through
Depository Participants (DPs) such as J&K BANK. DPs are like bank branches wherein shares
in physical forms need to be deposited for converting the same to electronic (demat) form.
Market transaction: When securities are transferred from a beneficiary account of an
investor to a clearing member account of a broker for ensuring delivery of securities on a
stock exchange, then it is a market transaction.

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Off-market transactions: When securities are transferred from the beneficiary account of
one investor to that of another, and the transaction does not get routed to the stock
exchange, it is an off-market transaction.
Rematerialisation (Remat)
It is the process of conversion of securities from electronic to physical form.
Third party service of Mutual Funds
J&K Bank has entered into tie-ups with reputed Asset Management Companies for
distribution of Mutual Fund products.
Mutual Fund industry is one of the fastest growing segments in financial services in India.
Over the years, banks in India have emerged as the biggest distributors of financial products.
This has helped the banks to capture and retain their huge client base and simultaneously
adding a steady stream of fee based income.
Mutual Funds have become an attractive proposition for investors in the current context
and for J&K Bank it will be a good investment option to have in our product portfolio. This
shall be an important step towards converting the bank branch into a financial supermarket
addressing all the financial needs of the customers thus helping the bank retain the
customers within its fold.
Moreover the branch can augment its fee based income the Bank aims to match to industry
standards.
The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and
Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes as
well as NFO (New Fund Offer) as and when the AMC comes up with the same.
Insurance Services -Life Insurance
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was
incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and
Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors.
MetLife is one of the fastest growing life insurance companies in the country. It serves its
customers by offering a range of innovative products to individuals and group customers at
more than 600 locations through its bank partners and company- owned offices. MetLife has
more than 32,000 Financial Advisors, who help customers achieve peace of mind across the
length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas,
Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life
insurer in the United States (based on life insurance in force), with over 140 years of
experience and relationships with more than 90 of the top one hundred FORTUNE 500®
companies. The MetLife companies offer life insurance, annuities, automobile and home

18. 18
insurance, retail banking and other financial services to individuals, as well as group
insurance, reinsurance and retirement and savings products and services to corporations and
other institutions.
The bank is also Corporate Agent of MetLife and is marketing its products through its strong
branch network. Visit the MetLife Website for the details on products
1.3. Mission & Vision
VISION
“To catalyse economic transformation and capitalise on growth.”
Our vision is to engender and catalyse economic transformation of Jammu and Kashmir and
capitalise from the growth induced financial prosperity thus engineered. The Bank aspires to
make Jammu and Kashmir the most prosperous state in the country, by helping create a
new financial architecture for the J&K economy, at the center of which will be the J&K Bank.
MISSION
Our mission is two-fold: To provide the people of J&K international quality financial service
and solutions and to be a super-specialist bank in the rest of the country. The two together
will make us the most profitable Bank in the country.
VALUES: Customer Sovereignty, Passion for Excellence, Continuous Innovation,
Transparency & Integrity, People Orientation and Social Responsibilities are the core
values at the J&K Bank.
PHILOSOPHY: The Banks Corporate Governance philosophy is woven around its total
commitment to the ethical practices in the conduct of its business, while striving in the
constant quest to grow with profits and enhance shareholders value and align the interests
of the Stakeholders and Society through adoption of best international practices and
standards. The Corporate Governance policies of your Bank recognize the accountability of
the Board vis-a-vis its various constituents including customers, shareholders, investors,
employees, Government and regulatory authorities and societal responsibilities as a
corporate citizen.
J&K Bank is committed to the best and transparent corporate governance practices. It
believes that proper corporate governance practices leads to effective management and
control of business, which in turn provides best value to all its stakeholders through highly
motivated personnel, visionary leadership, respect for people and society, innovation and
sound fiscal discipline.
Your Directors have immense pleasure in presenting the 67th Annual Report on the business
and operations of your Bank together with the audited accounts for the year ended March
31.2014.

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1.4. Product range of the company
Loans
Housing Loan Scheme: Quantum of loan
For Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower. For
repairs/renovation 20 months net salary, subject to a maximum of 10.00 Lacs.
For purchase of land: 20 months net salary/income subject to maximum of 5 Lacs within J&K
and 10.00 Lacs outside J&K. Also as an incentive for small borrowers, the loans up to 1.5
Lacs granted for repairs/renovations of existing houses would now be secured by third party
guarantee of two persons or such other security as is deemed appropriate by the Bank.
Insurance
Life Insurance Segment/ MetLife India Insurance
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was
incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu
and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors.
MetLife is one of the fastest growing life insurance companies in the country.
It serves its customers by offering a range of innovative products to individuals and group
customers at more than 600 locations through its bank partners and company- owned
offices. MetLife has more than 32,000 Financial Advisors, who help customers achieve peace
of mind across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas,
Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life
insurer in the United States (based on life insurance in force), with over 140 years of
experience and relationships with more than 90 of the top one hundred FORTUNE 500®
companies. The MetLife companies offer life insurance, annuities, automobile and home
insurance, retail banking and other financial services to individuals, as well as group
insurance, reinsurance and retirement and savings products and services to corporations
and other institutions.
The bank is also Corporate Agent of MetLife and is marketing its products through its strong
branch network.
Tax Products/Planning
Tax Products & Planning (Tax Saver Term Deposit Scheme)
Purpose: To enable our customers to place long term deposits to earn higher rate of interest
and also to avail the tax benefits under section 80C of Income Tax Act, 1961.
Savings & Deposits
 Savings Bank Deposit Scheme
Salient Features
 Account can be opened with a minimum initial deposit of 100/- to 500/-
 Convenient and easy to operate account to save time and money.
 Suitable for irregular income group No time bar on depositing or withdrawing
money.
Who can open this Account?
 A person in his/her name
 More than one person in their joint names.
 Minor through guardian or himself if above 10 years of age.
 Illiterate persons.

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 Blind persons. - Associations, clubs, Societies, Trusts, etc.
Facilities
 Anywhere banking facility.
 ATM/Debit card.
 Telebanking facility.
 Cheque book facility.
Cards
 Global Access Card.
 Salient Features.
 Pin Based -Maestro / Cirrus Debit Card.
 Provides online access to savings or current account.
 Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™
Enabled ATM's and Point Of Sale locations.
 Accepted at National Financial Switch (NFS) ATM's.
 No Transaction Fee at JK Bank ATM's.
 No Transaction Fee on purchases.
Mutual Funds
J&K Bank has entered into tie-ups with reputed Asset Management Companies for
distribution of Mutual Fund products.
Mutual Fund industry is one of the fastest growing segments in financial services in India.
Over the years, banks in India have emerged as the biggest distributors of financial
products. This has helped the banks to capture and retain their huge client base and
simultaneously adding a steady stream of fee based income.
Mutual Funds have become an attractive proposition for investors in the current context
and for J&K Bank it will be a good investment option to have in our product portfolio. This
shall be an important step towards converting the bank branch into a financial supermarket
addressing all the financial needs of the customers thus helping the bank retain the
customers within its fold.
Moreover the branch can augment its fee based income the Bank aims to match to industry
standards.
The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and
Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes as
well as NFO (New Fund Offer) as and when the AMC comes up with the same.
Non Resident Banking
A deposit plan that provides standard banking facilities such as Cheque book, provision for
nomination and other remittance facilities and also allows repatriation of entire funds.
1.5. SIZE OF ORGANIZATION.
 3200 employees across India in J&K Bank

21. 21
1.6.Market share & position of the company in the Industry
Shareholding Pattern as on May 08, 2015 vis-à-vis May 09, 2014:
Face value split – From Rs 10 per share to Re 1 per share during quarter ended Sep, 2014
S No. PARTICULARS
Number of
Shares Held as
on May 08, 2015
% to
Capital
Number of
Shares Held as
on May 09, 2014
% to
Capital
1. GOVERNMENT OF J&K 257752660 53.17% 25775266 53.17%
2. INDIAN MUTUAL FUNDS 24415016 5.04% 2054622 4.24%
3. INSURANCE COMPANIES 14166398 2.92% 215608 0.44%
4. BANKS 111039 0.02% 15818 0.03%
5. NON RESIDENT INDIANS 3152381 0.65% 264129 0.54%
6.
FOREIGN INSTITUTIONAL
INVESTORS 113295468 23.37% 13564700 27.98%
7. FOREIGN PORTFOLIO INVESTORS 4153356 0.86%
8. BODIES CORPORATES 10746454 2.22% 1679188 3.46%
9. RESIDENT INDIVIDUALS 56446283 11.64% 4848747 10.00%
10. CLEARING MEMBERS 538965 0.11% 42702 0.09%
11. TRUSTS 0 0.00% 17022 0.04%
TOTAL 484778020 100.00% 48477802 100.00%

22. 22
1.7. Present Leadership
J&K Bank’s diverse and rich culture is abundantly evident in its Board Members, who
provide direction to the Bank in order to achieve its vision. A brief profile of our eminent
Board Members is as under:
Brief Profile of Directors
MUSHTAQ AHMAD:
Having joined the Bank in 1972 as Probationary Officer (PO), Mr. Mushtaq Ahmad has a
distinguishing career of 36 years as a prudent banker. His personal progression has been a
vital and contributing element of the unfolding success story of J&K Bank since more than
three decades.
Before his retirement as Executive Director of the Bank in February 2008, he held some of
the most significant positions in the bank and discharged all his duties with honesty and
distinctive vision.
His person makes an ideal blend of specialized knowledge and practical experience in almost
all the critical fields of contemporary banking, which include Credit/Risk Management,
Strategy and Business Development, Assets & Liability Management, Human Resource
Development, Investments, Treasury, Forex operations, International Banking, Insurance etc.
As a leading banker, he commands huge respect for his prudence, esteem for his discipline
and affection for his leadership skills in the Bank as well as the industry. As a top executive,
Mushtaq Ahmad lays great emphasis on talent search, human resources development, skill
enhancement, besides team building.
SUDHANSHU PANDEY, IAS:
Mr. Sudhanshu Pandey, IAS, is Commissioner Secretary to Government, Finance
Department, J&K, Govt. A post graduate in Life Science (Botany) with specialization in
Environmental Management and Ecology (Gold Medal), University of Allahabad, MBA in
Financial Management; Business Management and Financial Management, Institute of

23. 23
Management, Ahmadabad, Reforms in Government, Indian Institute of
Management,Bangalore and Decentralized Industrial Development, Japan.
Mr. Sudhansh Pandey began his career with Indian Forest Services in 1985 and thereafter,
joined the Indian Administrative Services in 1987. Mr. Sudhanshu Pandey has served the IAS
in various distinguished capacities, which include Sub-Divisional Magistrate, Bhaderwah
(J&K), Additional Secretary Education(GOJK), Addl. Chief Executive, Shri Mata Vaishno
Devi Shrine Board, Katra (Udhampur), District Development Commissioner and District
Magistrate, Doda, J&K, Special Secretary to Governor, J&K, Managing Director, SIDCO,
Director Information, Director Employment and Special Secretary, Labor and Employment,
J&K, Director & PS to MoS , Ministry of Commerce and Industry, GOI, Director & PS
to Mos , Ministry of External Affairs, GoI, Counselor and Director, Tagore Centre for
Information.
ARNAB ROY:
Mr. Arnab Roy, the Regional Director, Reserve Bank of India is a holder of Masters Degrees
in Arts and also Business Administration (MBA). He has more than 27 years of valuable
experience serving the Reserve Bank in various capacities, prominent being General
Manager, Issue Department and DBS. He has also been associated for a short while with
Banking Ombudsman and is presently the Regional Director, of J&K State.
VIKRANT KUTHIALA:
Mr. Vikrant Kuthiala is B.com (Hons) from Hindu College, Delhi University. He is a
prominent Businessman from Jammu with interests in steel manufacturing and hydel projects.
He is also representing on the committees of various academic and professional
organizations, prominent being the Regional Advisory Committee of Central Excise &
Customs, J&K, Chamber of Commerce & Industry, Jammu and J&K State Committee of
Federation of Industries of India, New Delhi. He is also a Member of India Islamic Cultural
Centre, New Delhi and INTACH, J&K Chapter, Jammu.

24. 24
PROF. NISAR ALI:
Prof. Nisar Ali is a Ph.D in Economics from Osmania University, Hyderabad. He is a
Professor from Post-Graduate Department of Economics, University of Kashmir. Prof. Nisar
Ali is also Dean, Faculty of Social Sciences University of Kashmir and Member, J&K State
Finance Commission. He has served in various prominent positions with the University and
has many research papers and publications to his credit.
A. M. MATTO:
Mr. A. M. Matto is a Graduate in Commerce and World Explorer. He is a high silhouette
Businessman having his interests in the manufacture and export of Kashmir Handicrafts. He
has made significant contribution to commerce industry by being associated with it in the
capacity of President and other prominent positions. Mr. A. M. Matto has had a long
association with the Bank as Director, during which he has made valuable contribution to the
Institution with his rich and varied experiences.
RAKESH KUMAR GUPTA:
Mr. R.K. Gupta, aged 47 years, is a professional Chartered Accountant with 25 years
standing possessing skill in Finance, Taxation, Auditing and Corporate Legal Affairs. He
started his professional career with M/s Gupta & Associates in January 1986 and heads
this renowned firm of Chartered Accountants since then.
Mr. Gupta remained in Executive Committee of the Jammu & Kashmir Branch of the
Institute of Chartered Accountants of India for three terms from 1991-1994; 1994- 1998 and
2006-2009.During these three terms he represented the Branch as its Treasurer, Secretary,
Vice-Chairman and Chairman. Mr. Gupta has been member of Tax Payers Committee of this

25. 25
Region. He has also been member of Research Committee & Direct Tax Committee of The
Institute of Chartered Accountants of India. He is also empanelled as Peer Reviewer with
Peer Review Board of the ICAI. Having authored various articles, Mr. Gupta has to his credit
published Articles in The Chartered Accountant Journal and also in Current Tax.com on the
issues of Taxation and Accounting Standards. Mr. Gupta has been Guest Speaker on many
occasions for various Seminars and Study Circle meets of Chartered Accountants & others.
Mr. Gupta is Member of Taxation Advisory Committee and other Committees of Chamber of
Commerce & Industry, Jammu. He is also a Trustee in Charitable Institutions providing
education to the under privileged children and relief to the needy. In view of his interest in
social activities and sports, Mr. Gupta is also a member of Sports and Health Committee of
Prestigious Social Club.
NIHAL GARWARE:
Mr. Nihal Chandrakant Garware is a holder of Bachelor of Arts Degree (U.S.A.) and the
scion of well known Industrialist family of India-the Garwares. Mr. Nihal Chandrakant
Garware, is at present Head of the Legal Department and Liaison Department in some of the
Garware Companies. He has been a Director in various companies in the Garware Group,
where his responsibilities have ranged from Production, Sales, Legal, Liaison to Finance. He
is Advisor to outside Companies like Ama Pvt. Ltd., D. Y. Patil Group and Sharad Pawar
International School.
He is also the founder member of The Youth Wing of Indian Merchants Chamber Of
Commerce.

26. 26
1.8. Source of data collection
OBJECTIVES
 To find out parameters of customer satisfaction.
 Help the bank to know customer needs from the bank, so that accordingly they can
equip themselves accordingly to the market.
 To do the performance evaluation of the organization with respect to growth,
productivity and profitability.
Research Design:
There are 3 types of researches:
- Exploratory research
- Descriptive research
- Casual research
From the above researches, I decided to employ blend of exploratory research and descriptive
research, as it is concerned with discovering the general nature of the problem and the
variables that relate to it.
Data Collection Method:
Data collection is done mainly through two sources namely primary and secondary.
Secondary source is nothing but utilizing somebody else’s earlier effort and work.
Primary source is when the data collection is done for the first time. I had taken up both
secondary database and to have greater accuracy I decided to go in for collection of primary
database.
To tap secondary database I went through the brochures of the companies and even through
the web sites of all the companies.
To tap the primary database I decided to go in for Survey Method. Various tools can be used
to conduct a survey. These tools are very important to trigger a stimulus, which would bring
out their attitude and ideas. I have used Questionnaire as a tool for the above-mentioned
purpose.

27. 27
QUESTIONNAIRE DESIGN
A close-ended Questionnaire has been used in this Project to know the satisfaction level of
the customers of the Bank in order to improve the services in the near future.
SAMPLE DESIGN
SAMPLE SIZE: 100
60 Males and 40 Females
SURVEY AREA: The survey was carried out in North Delhi.
SAMPLING TECHNIQUE: Stratified sampling technique has been used.
TIME FRAME: The time frame has been six to Seven weeks.
LIMITATIONS OF THE STUDY
 The main source of data is primary data, though secondary data has not been ignored.
 100 samples do not reflect the opinion of customers as whole.
 Time limit was another limitation and there may be possibility of committing a
general error.
 Due to change in time, policies may change.

28. 28
CHAPTER-2
SWOT ANALYSIS OF THE COMPANY

29. 29
S.W.O.T ANALYSIS OF J&K BANK
STRENGTH
 The main strength of the bank is that it is located in the residential as well as
commercial areas due to which the bank is able to cover both residential and market
share.
 The bank has six days/week working schedule due to which it provide extra working
hours to its customers.
 Bank has authority to deal in foreign exchange.
 A wide range of scheme and services to meet diverse customer needs.
 Net profit of the year 508.60 Cr.
 Total assets for the year ending 2014 RS.78,620 Cr.
 80% dividend to its shareholder.
 Deposits increase by 16%.
WEAKNESS
 No branch in foreign country.
 Unable to provide value added services to the customer.
 The look of the bank is not very attractive for the customer.
 The bank lacks in sales promotion and advertisement its products and services.
 Number of ATM services is very less.
OPPORTUNITY
 Identifying the potential customer and creating market by proper channel advertising.
 Bonding the customers by paying immediate attention towards their grievances thus
enhancing customer satisfaction.
 They can move easily towards universal bank.
THREATS
 Existing competitors.
 Attitude of concerned body towards Pvt. Bank.
 Foreign players.

30. 30
CHAPTER-3
ANALYSIS OF FINANCIAL REPORTS OF THE
COMPANY

31. 31
ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY
Table 3.1: Profit & Loss Account
Profit & Loss Account Amount in Rupees
crore
* EPS for periods upto quarter ended June, 2014 has been recast consequent upon split of Bank’s
share during quarter ended Sep, 2014
Particulars
Q 4
FY ’14-15
Q 4
FY ’13-14
%
Change
Year ended
Mar, ’15
Year ended
Mar, ’14
%
Change
Interest Earned 1744.97 1777.50 -1.83% 7061.13 6767.00 4.35%
Interest Expended 1062.40 1076.32 -1.29% 4410.22 4082.52 8.03%
Net Interest Income 682.57 701.18 -2.65% 2650.91 2684.48 -1.25%
Other Income 278.53 111.10 150.70% 593.97 390.26 52.20%
Operating Income 961.10 812.28 18.32% 3244.88 3074.74 5.53%
Operating Expenses 385.64 330.84 16.56% 1409.05 1174.99 19.92%
Operating Profit 575.46 481.44 19.53% 1835.83 1899.75 -3.36%
Provisions & Contingencies 380.76 60.57 528.63% 1015.52 147.88 586.72%
PBT 194.70 420.87 -53.74% 820.31 1751.87 -53.18%
Tax Provision 93.09 170.27 -45.33% 311.71 569.40 -45.26%
Net Profit 101.61 250.60 -59.45% 508.60 1182.47 -56.99%
Share Capital 48.49 48.49 0.00% 48.49 48.49 0.00%
EPS in Rs. * 2.10 5.17 -59.38% 10.49 24.39 -56.99%
Net Interest Margins 0.98% 1.03% - - - -
Net Interest Margins (Ann.) 3.92% 4.13% - 3.81% 4.16% -

32. 32
Table 3.2: Balance sheet
Balance Sheet Amount in Rupees
crore
Particulars
As on March
31, 2015
As on March
31, 2014
%
Change
Capital & Liabilities
Capital 48.49 48.49 0.00%
Reserves & Surplus 6061.56 5675.12 6.81%
Deposits 65756.19 69335.86 -5.16%
Borrowings 2339.67 1765.00 32.56%
Other Liabilities & Provisions 1879.54 1795.26 4.69%
Total 76085.45 78619.73 -3.22%
Assets
Cash & Bank Balance 2373.05 3045.59 -22.08%
Balance with Banks and Money at Call & Short Notice 1360.71 1168.31 16.47%
Investments 25124.30 26195.07 -4.09%
Advances 44585.82 46384.60 -3.88%
Fixed Assets 688.91 533.81 29.05%
Other Assets 1952.66 1292.35 51.09%
Total 76085.45 78619.73 -3.22%

33. 33
DATA ANALYSIS
CUSTOMERS RESPONCE
01. Are you aware that the J&K Bank is having ATM Centers?
o Yes----------------------------------------------------------75%
o No-----------------------------------------------------------25%
Fig.3.1:
INTERPRETATION
1. 75% of the Customers are aware of the J&K Bank’s ATM Centers.
2. 25% the Customers are not aware of the J&K Bank’s ATM Centers.
YES,75%
NO ,25%
YES
NO

34. 34
02. Credit Card owned
o Yes----------------------------------------------------40%
o No-----------------------------------------------------60%
Fig.3.2:
INTERPRETATION
1. 40% of the Customers are having J&K Bank’s Credit Cards.
2. 60% of the Customers are not having J&K Bank’s Credit Cards.
YES,40%
NO ,60%
YES
NO

35. 35
03. Are you intending to take loans for financing your Assets?
o Yes-------------------------------------------------------------------------67%
o No--------------------------------------------------------------------------33%
Fig.3.3:
INTERPRETATION
1. 67% of the Customers are intending to take loans for financing their Assets.
2. 33% of the Customers are not intending to take loans.
YES,67%
NO ,33%
YES
NO

36. 36
04. Do you have a Demat account?
o Yes-----------------------------------------------------------------46%
o No------------------------------------------------------------------54%
Fig.3.4:
INTERPRETATION
1. 46% of the Customers have Demat account.
2. 54% of the Customers don’t have Demat account.
YES,46%
NO ,54%
YES
NO

37. 37
05. A Convenient Branch to get to
o Yes------------------------------------------------------75%
o No-------------------------------------------------------25%
Fig.3.5:
INTERPRETATION
1. 75% of the Customers said that the Branch is Convenient to get it.
2. 25% of the Customers said that the Branch is not Convenient to get it.
YES,75%
NO ,25%
YES
NO

38. 38
06. Branch Hours are convenient
o Excellent-------------------------------------------------------------------------------25%
o Good------------------------------------------------------------------------------------47%
o Satisfactory----------------------------------------------------------------------------20%
o Poor--------------------------------------------------------------------------------------08%
Fig.3.6:
INTERPRETATION
1. 25% of the Customers said that the Branch Hours is Excellent.
2. 47% of the Customers said that the Branch Hours is Good.
3. 20% of the Customers said that the Branch Hours is Satisfactory.
4. 08% of the Customers said that the Branch Hours is Poor.
Excellent
25%
Good
47%
Satisfactory
20%
Poor
08%
Excellent
Good
Satisfactory
poor

39. 39
07. The Branch layout is spacious and uncluttered.
o Excellent-------------------------------------------------------------------------------21%
o Good------------------------------------------------------------------------------------73%
o Satisfactory----------------------------------------------------------------------------13%
o Poor--------------------------------------------------------------------------------------03%
Fig.3.7:
INTERPRETATION
1. 21% of the Customers said that the Branch Layout is Excellent.
2. 73% of the Customers said that the Branch Layout is Good.
3. 13% of the Customers said that the Branch Layout is Satisfactory.
4. 03% of the Customers said that the Branch Layout is Poor.
Excellent
21%
Good
73%
Satisfactory
13%
Poor
03%
Excellent
Good
Satisfactory
poor

40. 40
08. I spend very little time waiting in line to get service from the tellers.
o Excellent-------------------------------------------------------------------------------09%
o Good------------------------------------------------------------------------------------50%
o Satisfactory----------------------------------------------------------------------------06%
o Poor--------------------------------------------------------------------------------------04%
Fig.3.8:
INTERPRETATION
1. 9% of the Customers said that the service Excellent.
2. 50% of the Customers said that the service Good.
3. 06% of the Customers said that the service Satisfactory.
4. 04% of the Customers said that the service Poor.
Excellent
09%
Good
50%
Satisfactory
06%
Poor
04%
Excellent
Good
Satisfactory
poor

41. 41
09. Counter Staff is immediately available to provide counter service.
o Yes--------------------------------------------------------------67%
o No---------------------------------------------------------------13%
Fig.3.9:
INTERPRETATION
1. 67% of the Customers said that the Counter staff is immediately available to provide
counter service.
2. 33% of the Customers said that the Counter staff is not immediately available to
provide counter service.
YES,67%
NO ,33%
YES
NO

42. 42
10. Phone calls to the Branch are handled quickly and efficiently.
o Excellent-------------------------------------------------------------------------------31%
o Good------------------------------------------------------------------------------------50%
o Satisfactory----------------------------------------------------------------------------10%
o Poor--------------------------------------------------------------------------------------09%
Fig.3.10:
INTERPRETATION
1. 31% of the Customers said that the phone calls attending services is Excellent.
2. 50% of the Customers said that the phone calls attending services is Good.
3. 10% of the Customers said that the services is Satisfactory.
4. 09% of the Customers said that the phone calls are not attended Properly.
Excellent
31%
Good
50%
Satisfactory
10%
Poor
09%
Excellent
Good
Satisfactory
poor

43. 43
11. The staff is very courteous and helpful.
o Excellent-------------------------------------------------------------------------------80%
o Good------------------------------------------------------------------------------------10%
o Satisfactory----------------------------------------------------------------------------02%
o Poor--------------------------------------------------------------------------------------08%
Fig.3.11:
INTERPRETATION
1. 80% of the Customers said that the Staff is Excellent.
2. 10% of the Customers said that the Staff is Good.
3. 02% of the Customers said that the Staff is Satisfactory.
4. 08% of the Customers said that the Staff is Poor.
Excellent
80%
Good
10%
Satisfactory
02%
Poor
08%
Excellent
Good
Satisfactory
poor

44. 44
12. The staff is well informed about the banks product and services.
o Excellent-------------------------------------------------------------------------------25%
o Good------------------------------------------------------------------------------------47%
o Satisfactory----------------------------------------------------------------------------20%
o Poor--------------------------------------------------------------------------------------08%
Fig.3.12:
INTERPRETATION
1. 75% of the Customers said that the staff well informed.
2. 25% of the Customers said that the staff not well informed about the products &
services.
YES,75%
NO ,25%
YES
NO

45. 45
13. The Branch has a pleasant and friendly atmosphere.
o Excellent-------------------------------------------------------------------------------80%
o Good------------------------------------------------------------------------------------15%
o Satisfactory----------------------------------------------------------------------------03%
o Poor--------------------------------------------------------------------------------------02%
Fig.3.13:
INTERPRETATION
1. 80% of the Customers said that Branch atmosphere is Excellent.
2. 15% of the Customers said that Branch atmosphere is Good.
3. 03% of the Customers said that Branch atmosphere is Satisfactory.
4. 02% of the Customers said that Branch atmosphere is Poor.
Excellent
80%
Good 15%
Satisfactory
3%
Poor
2%
Excellent
Good
Satisfactory
poor

46. 46
14. My accounts are handled accurately.
o Excellent-------------------------------------------------------------------------------64%
o Good------------------------------------------------------------------------------------27%
o Satisfactory----------------------------------------------------------------------------06%
o Poor--------------------------------------------------------------------------------------03%
Fig.3.14:
INTERPRETATION
1. 64% of the Customers said that Account handling is Excellent.
2. 27% of the Customers said that the Account handling is Good.
3. 6% of the Customers said that the Account handling is Satisfactory.
4. 3% of the Customers said that the Account handling is Poor.
Excellent
64%
Good27%
Satisfactory
6%
Poor
3%
Excellent
Good
Satisfactory
poor

47. 47
15. I am well informed concerning any changes in services.
o Excellent-------------------------------------------------------------------------------46%
o Good------------------------------------------------------------------------------------34%
o Satisfactory----------------------------------------------------------------------------19%
o Poor--------------------------------------------------------------------------------------01%
Fig.3.15:
INTERPRETATION
1. 46% of the Customers said that they are well informed about any changes in
services.
2. 34% of the Customers said that they almost get informed about any changes in
services.
3. 19% of the Customers said that they sometimes get informed about the changes.
4. 1% of the Customers said that they are not at all get informed about any changes in
services.
Excellent
46%
Good
34%
Satisfactory
19%
Poor
1%
Excellent
Good
Satisfactory
poor

48. 48
CHAPTER-4
LESSONS LEARNT

49. 49
LESSONS LEARNT
The bank was incorporated with the authorized capital of Rs.2.00 Lakh shares of Rs.25/- each
amounting to Rs.50.00 Lakh. The first issue comprised 80,000 shares amounting to Rs.20.00
Lakh .A total number of 62716 shares of the value of Rs.15, 67,900/ were authorized and
Rs.7.66 Lakh paid up as on 30.06.1940 .The authorized capital was subsequently reduced to
1.20 lakh shares amounting to Rs.30.00 Lacs in 1958 and latter enhanced to 40.00 Lacs in
1992 and 80.00 Lacs in 1993 amounting to Rs.10.00 Corers and Rs.20.00 Corers
respectively. The issue capital of 28.00 lakh shares amounting to 7.00 Corers stands
subscribed and paid up as on March 31,1997 Rs.28 per share. Thus where as the paid up
capital would be increased to Rs. 48.50 Cr, simultaneously the bank be able to earn the share
premium of Rs.86.80 Corers.
The bank has paid special attention to the vital aspect since its inception .The first Reserves
were created by the bank when amount of Rs.10, 000 / were transferred to the account as on
30.06.1941.The reserves were created not only to meet the statutory requirements but also for
bad and doubtful debts and for meeting other contingencies. The free reserves which were of
the order of less than one lakh in 1944 and Rs.7.00 lakh in 1966 stood at Rs.42.50 Lacs in
1975 and less than one Cr in 1979. In a span of just over 16 years the reserves have grown ten
thousand times and crossed Rs.100 Cr mark in 1995, excluding those held for the risk
weighted assets.
The Bank came out with unsecured non-convertible redeemable, subordinated tier-II Bond
issue of Rs.75 corers in December 2000. The issue received an overwhelming response and
the Bank mobilized Rs.87 crores against the size of Rs.75 crores at 11.75% p.a. with a tenure
of 63 months.
The Capital & Reserves of the Bank continued to witness a remarkable growth during
the year 2004-05. It increased to Rs.1665.40 Cr during the year from Rs.1593.74 Cr of the
previous year.
DEPOSITS
The public has reposed its confidence in the standing of the bank from its very inception and
the same has been growing ever since that date; despite the shocks it received as consequence
of partition because of loss of two branches within eight years. In the first year of its
operation the bank succeeded mobilizing deposits to the tune of Rs.14 Lacs after which there
was no looking back .The deposits which stood at just over one Cr’s in 1949 and less than
100 Cr’s in 1978, grew with amazing pace within a span of 16 years .The growth of the
deposits accelerated at an amazing pace for the decade 1980-1990, from Rs.191.67 Cr’s to
Rs.1046.35 Cr’s. Barring few occasions, the growth rate has been more than the national
average, doubling in 1991-1994 (in just four years) despite the slag economic trends in the
state due to turmoil and difficult working conditions .It will be in order to reveal that when all
nationalized banks closed down their offices in valley in 1990, the J & K bank alone
braved against all odds and discharged its banking services to the public at great risks. Not
only in deposits, the bank discharged its duties under those difficult situations in all spheres
and made inroads in multifarious levels in pattern of client base. The bank performed
commendably during the year by registering the growth rate of 26.40% against the national
average of 16.1%. The deposits of the bank stood at Rs.3658.14 Crores as on March 31st,
1997 against the Rs.2895.18 Crores as on 31.03.1996. The deposit base of the Bank touched
new high at 11,168 crores at the end of financial year 2011-12. The average deposits per
branch work out to Rs.30.15 Cr against the previous year figure of Rs.26.17 crore. The
average deposit per employee stood at Rs. 172 lakh against Rs.150 lakh of the previous year.

50. 50
During the financial year 2012-13, the rate of growth in deposits was commendable when
compared to 14.1% at national level. The aggregate Deposits of the Bank recorded an
appreciable accretion of 16% to Rs.21644.97 crore during the year from the previous year
figure of Rs.18661.38 Cr.
CREDIT DISPENSATION
The J&K Bank Ltd. was established with a sole aim of improving the economic conditions of
the people of the state as then existing banks could not fulfill such needs because of various
limitations as stated earlier. On the very next day of opening a loan on Rs.1.20 Lacs was
granted to the borrower. This may bee a laughable amount today, but it carried a slogan that
time .The people of the state regard J &K bank as their own bank owing to its local
orientation and characteristics and bank in turn has been fulfilling there aspirations by spear
heading the credit dispensation not only under the normal lending schemes but also through
the central and state Govt. sponsored schemes .The bank has been instrumental in the
economic upliftment of the people of the state which other wise would have been difficult in
view of its backwardness ,topographical conditions and above all conservative attitude of
other banks.
Bank has been playing its role devotedly towards the economic development not, while as the
one Crores mark was achieved after 25 years only. There after the credit disbursals gained
momentum .The amount of advances stood at 131 Crores in 1980 recorded 10 fold increase
and stood at Rs.1208 Crores at 31.03.1995. During the last two years the advances registered
an emphatic growth and were recorded at Rs.4763 Crores as on 31.03.2014. J K bank is one
of the few banks, which has been able to show exemplary performance in adjusting to the
rigorous prudential norms that came into force during 1992-93.
The bank has not only enhanced the quantitative but also qualitative approval of the credit
portfolio. On some occasions the bank's credit deposit ratio and priority sector lending has
exceeded the desired or prescribed limits. Bank has not only fulfilled its commitments
towards the Govt. of J & K but also has come to its rescue in the hours of financial
crises.
The lending to the state Govt. has been a constant phenomenon for the decades now and in
fact upsets various ratios related to credit on some occasions. The bank has witnessed a
steady growth in the borrower client base, which is spread to more than one Lacs accounts
presently. The credit portfolio of the Bank recorded a healthy growth of 24% during the
financial year 2012-13. The total advances of the Bank stood at Rs.11517.14 crore as at the
end of March 2014 as against Rs.8010.95 crores of the previous year. The outstanding to
priority sector lending increased by Rs.544 crore to Rs.2510 crore at the end of March 2014
from Rs.1966 crore of the previous year.
INVESTMENTS
Right from the beginning, the liquidity, safety and profitability of the funds has remained and
continues to be the focus of bank's policies. During the first few years, the surplus funds were
kept either in current or fixed deposit accounts with other banks. It was in the year 1944 when
an amount of ten Lacs was invested in Govt. securities. There after the growth of investment
portfolio has been phenomenal one .The investment holdings of the bank have been far
beyond the statutory requirements.

51. 51
The total investments in Govt. and other approved securities, bonds debentures was to the
tune of Rs.792 Crores as on 31.03.1995.During the last few years bank's investments
portfolio grew at amazing pace as the Bank's investment policy continued to focus on
increasing returns through investments in safe and liquid securities. During the year 2012-13,
the investment portfolio has recorded a growth of 7.55% to Rs.9089.23 crore from
Rs.8451.10 crore of the previous years.
PROFITABILITY
Except for the first year of business, when bank suffered a loss of Rs.0.07 Lacs as on
30.06.1941, the bank has a consistent track record of growth and profitability .In just the
second year of commencement of business, it recorded an impressive profit of Rs.0.48 Lacs
and wiped out the losses of previous year. With excellent fund management, the profits of the
bank jumped from 177 Lacs in 1990 to 1251 Lacs in March in 1994 after providing for all the
statutory and mandatory provisions.
The Bank posted a net profit of Rs.115.07 crore for the financial year 2009-10 as against the
previous year figure of Rs.406.33 crore.
Financials
The Bank recorded an outstanding achievement in the last fiscal (2009-10) in key areas of its
operations. During the year 2012-13, the Bank achieved an all time high business turnover of
Rs.33162.11 crore from Rs.27946.32 crore of the previous years registering an increase of
18.66%. The Capital & Reserves of the Bank increased by Rs.71.66 crore to Rs.1665.40
crore during the year from Rs.1593.74 crore of the previous year. The Capital Adequacy
Ratio stood at 15.15%, which is comfortably much above the minimum stipulated by Reserve
Bank of India. The Bank posted a net profit of Rs.115.07 crore in the last fiscal as against the
previous year figure of Rs.406.33 crore .The dip in the profits is in line with overall industry
trend which witnessed diminishing yields in the securities portfolio held by banks and
consequential booking of losses. The Bank could not remain insulated to the said affects of
inflation and hardening of interest rates, which besides impacting the yields also, depreciated
the investment portfolio. In order to insulate the securities portfolio from future market risk
and to reduce the duration of its investments, Bank transferred securities of Rs.2602.03 crore
from AFS to HTM category and also disposed off long duration securities, thereby booking
depreciation /loss on investment portfolio aggregating Rs.222.47 crore.
Bank's aggregate deposits recorded an appreciable accretion of 16% to Rs.21644.97 crore at
the end of financial year 2012-13 from the previous year figure of Rs.18661.38 crore. The
rate of growth is commendable when compared to 14.1% at national level.
The credit portfolio of the Bank also recorded an appreciable growth during the year. The
total advances of the Bank increased to Rs.11517.14 crore against Rs.9284.94 crore of the
corresponding periods of the previous year registering a growth of 24%. The outstanding to
priority sector increased by Rs.544 crore to Rs.2510 crore at the end of March 2013 from
Rs.1966 crore of the previous years. The investment portfolio recorded a growth of 8% to
Rs.9089.23 crore from Rs.8451.10 crore of the previous years. The net NPAs stood at 1.41%,
against 1.48% of the previous year, which is one of the lowest in the industry.

52. 52
During the year, the Foreign Exchange business recorded an impressive growth of 29%,
moving to Rs.5964.67 crore against Rs.4637 crore of the previous years. The contribution of
this segment to the Bank's gross income has been to the tune of Rs.38.22 crore against
Rs.34.80 crore of the previous years. The export turnover of the Bank increased from
Rs.1928.86 crore to Rs.2211.51 crore registering an increase of 15%.
Keeping in view overall performance of the Bank, the Bank, after the approval of
shareholders, paid 80% dividend (free of tax) for the year ended 31st March 2013. The
productivity levels continued to show sustained growth with per branch and per employee
business increasing to Rs.6632.4 lakhs and Rs.482.50 lakhs respectively.
Technology Driven Operations:
Maintaining a progressive outlook, the J&K Bank is keeping pace with the changing
technology. The Bank continues to leverage information technology as a strategic tool for its
business operations. The IT strategy emphasizes enhanced level of customer services through
24x7 availability, multi-channel banking, and cost efficiency through optimal use of
electronic channels, wider market reach and opportunities for cross- selling.
The initiatives already under way have been given a further push to accelerate growth with
tech commitment. The Bank had issued over 1.25 lakh „JK Bank Global Access
Debit Cards' until March end 2013. Besides, the bank also launched its Credit Card, which is
available at all, branches of the bank across the country. Tele Banking Facility is now
available at 32 business locations of Jammu and Kashmir Zones. Currently 97.4 % business
of the Bank is computerized. The number of branches /offices brought under computerization
programme has increased to 423 at the end of March 2013 against 360 branches of the
previous year. The Bank has an ambitious plan of achieving total automation of operations by
the year 2013.
Anywhere banking facility was extended to many new locations/branches, thereby giving the
customers the advantage of Anywhere Banking at 200 branches at the end of 31st March
2013. The number of ATMs of the Bank (both off-site and on-site) already installed or under
process of installation has increased to 170 during the year under report. Moreover to further
improve the customer service and have total connectivity, the Bank has set-up a Central
DATA Center and 78 branches/offices of Delhi and Mumbai Zones have already been
migrated to (Core Banking Solution) CBS and roll over of rest of the branches of these Zones
is in progress. The migration of branches in Jammu Zone from Bancs 2000 to Finacle has
also been taken up. The Bank launched Internet Banking and SMS banking services,
available at our CBS branches. These delivery channels shall give easy access to our
customers on viewing their accounts and performing other non-financial transactions. The
Financial transactions would be available after, a nod from RBI. For convenience of our
ATM card holders and all sections of cardholders, multilingual (Hindi, Urdu & English)
screens shall be available soon on all ATMs of your Bank. Besides Fund Transfer Facility
from one account to another account shall also be available soon on Bank's ATMs. The Bank
launched its Credit Card in association with MasterCard, with three variants Gold, Silver and
Blue .The cardholders can use these cards at any ATM carrying the Master card logo for
withdrawing cash or POS terminal at merchant establishments for shopping. The Bank has
also enrolled as member of NFS (National Financial Services) set by IDRBT by virtue of
which our ATM switch has been connected with NFS switch.

53. 53
The connectivity will offer facility to our debit cardholders to access other Bank's ATMs,
which are members of NFS in India at lower transaction costs. During the year under report,
you will be glad to know that the Bank introduced Mobile ATM Service that is unique of its
kind in northern part of. The Mobile ATM offers service at the footsteps of the customer. The
Bank has customized software solution in place to handle Asset Liability Management
(ALM) system of the Bank. At present almost all the ALM sensitive data is captured in
automated form ensuring the compilation of ALM picture at short notice. Besides CIBIL
reporting system and MIS architecture has been improved to match set standards. The Bank
has launched its INTRANET SITE for surfing by the staff .The site shall keep them updated
about policies and directions of the organization at their workplace besides helping them in
resolving their customer grievances /complaints instantly.
Innovative Products:
To maximize value to its customers, the innovation in products and improving the quality and
speed of services is the hallmark of Bank's business strategy. In keeping with this objective,
the bank has launched several unique and innovative deposit products, which include
“Mehendi Deposit Scheme” , “Recurring Plus Deposit Account” , “Flexi Deposit Scheme"
etc. The scheme has flexibility of depositing variable monthly installments as per the
convenience of the depositor. As a measure to enhance speed and efficiency of service
“Single Point Commit system” was introduced at its select branches, with both front and back
offices manned by officers providing end-to-end service to the customer at the same counter.
At 126 branches the said system has been extended and are in the process to extend it to equal
number of more branches.
The Bank is fast emerging as the most preferred DP in the chosen market providing quality
Depository Services of National Securities Depository Services Limited (NSDL) and Central
Depository Services Limited (CDSL) to more than 20000 customers with custody of
securities worth Rs5450 crores.
Bank is extending broking services at its DP centers in association with M/S IL&FS
Investsmart Limited. The Bank is having a vision to transform its DP centers into Capital
Market Bank and share trading services, which will provide wide range of financial products
to its existing and prospective customers.
Diversification of Business
The Bank diversified its business activities into insurance, both life and non-life. The Bank
not only became the strategic partner of MetLife Insurance India (P) Limited, but also has
been acting as corporate agent of the said company for distribution of their life insurance
products through network of its branches. The Bank also entered into a tie-up with Baja
Allianz General Insurance Company for distribution of their non-life insurance products. In
view of Bank's deep branch network and loyal customer base particularly in Jammu and
Kashmir, the Bank has been able to distribute insurance products in deep rural and far flung
areas and has made penetration in the new areas thereby adding to its non interest and fee
based income.

54. 54
Recognition and Awards
The Bank recently won the prestigious Asian Banking Award -2005 for its ‘Development
Project Financing Programme', contributing significantly to the development of tourism
industry of the J&K State. The award was presented by the Under Secretary Finance,
Philippines, at a glittering Gala Dinner award function held at Manila, Philippines on June
17, 2011.
The annual Asian banking awards recognize and honor Asian banks for outstanding,
innovative and world-class products and programmes implemented during the previous year.
It is the most respected and premier banking awards programme in Asia Pacific region. It is
worth mentioning that the Bank has won the Asian Banking Award consecutively for the
second year. Last year, the Bank won the award for Customer Convenience Programmes and
was also given runners up certificate for its project ‘Motivating Employees for Better
Performance' under ‘operational efficiency programme' category.
The Bank was ranked fifth among the top ten Asian banks and 762 nd among top 1000 World
banks. A renowned business journal "Business Today" ranked JK Bank among 25 top
investor friendly companies in India, the only bank in the whole Indian Banking industry,
which has been ranked in the magazine among first 10 Investor Friendly Companies. The
Bank for the second consecutive year was ranked Best Private Sector Bank in Financial
Express/ Ernest and Young combined Survey for the year 2002-03 released recently. Bank
was awarded ‘Shiromani Award' for outstanding achievements in the field of banking and
commitment to national progress and human welfare during the year under report.
The Bank has figured among 24 Indian companies in Forbes Global - 100 best ‘under a
billion Asia's Rising Companies', listed by Forbes magazine in its latest issue dated
November 1. The publication has commended J&K Bank for representing ‘economic
dynamism' in the region, sustained growth in all spheres and an excellent track record of
rewarding its shareholders.
Corporate Social Responsibility:
The Bank has also achieved the distinction of winning the Runner up trophy at prestigious
Asian Corporate Social Responsibility Forum recently. Corporate Social Responsibility
(CSR) is truly embedded in the Bank's day-to-day business, policy and strategy and addresses
all stakeholders. CSR is not just an add-on' or a one time only subject, but is integrated into
the organization's management practices. The Board of Directors and Management of the
Bank are fully aware of Bank's Corporate Responsibility as a corporate citizen and are
actively involved and committed towards their corporate obligations towards all the
stakeholders. The Bank follows the concept that excellence in CSR is exceeding the
minimum regulatory framework in which the organization operates and to strive to
understand and respond to the expectations of their stakeholders in society. The CSR policy
of our Bank involves meeting the needs of all stakeholders and not just shareholders against
some form of ethical basis. The Bank is committed to the best and transparent corporate
governance practices. It believes that proper corporate governance practices lead to effective
management and control of business, which in turn provides best value to all its stakeholders.

55. 55
The Bank's CSR is rooted in its Corporate Governance philosophy, which in turn is woven
around Bank's commitment to ethical practices in the conduct of its business, while striving
in the constant quest to grow with profits and enhance shareholders value and align interests
of the shareholders, stakeholders and society through adoption of best international practices
and standards. Managing CSR is not viewed as an extra cost or burden but is viewed not only
as making good business sense but also contributing to the long-term prosperity of our Bank
and ultimately its survival. Being a good neighbour and showing that you care on the one
hand and being a successful business on the other, are flip sides of the same coin.
In early 1990's when most of the banks closed their business in J&K State particularly in
Kashmir valley owing to onset of militancy, it was only J&K Bank that sustained its
operations with perceptible growth in its business besides expanding its network of branches
even into the remotest areas of the State. The Bank has a heritage of braving all odds and
despite hostile operating environments; the Bank has been on a growth path and has achieved
impressive business results during last few years. Bank manages social issues in the same
manner as it manages any other strategic business issue. CSR is not just recognized as
promulgating the Bank's own values and principles but also the values and principles of all
those who have a stake in, or are affected by, its operation. The Bank, in addition to playing
its role in economic development of the state and country, also contributes significantly
towards social cause. The bank has carved a niche for itself among the poor and the needy by
donating generously for various philanthropic activities aimed at ameliorating their
sufferings. Be it fire victims, disabled or patients with serious ailments who lack reliable
means of survival, the bank continued its support and help to them. The bank adopts orphans
by providing financial support to orphanage homes and donating computer systems to enable
the socially/economically deprived children to acquire IT knowledge. The bank as a
responsible corporate citizen provides donations to patients for the treatment of dreaded
diseases needing Heart Surgery, Kidney Transplantation, etc and helps the needy & poor
in acquiring hearing aids, artificial limbs, pace makers etc. The Bank has made donation to
the tune of Rs.60 lakhs in the recent past. A three days rehabilitation camp for physically
disabled persons was organized by the Bank in association with Bhagwan Mahaveer Viklang
Sahayata Samiti, Jaipur (India) where 210 persons were provided with artificial limbs and
appropriate treatment to many more.
The Bank donated a van to Society for Rural and Urban Development (SRUD), Srinagar, for
the use of physically and mentally challenged children. An Ultrasound machine was donated
by the Bank to the Cancer Society of Kashmir, Srinagar for the treatment of economically
deprived patients. The Bank donated Gastro Fibrescope Endoscopic Machine, costing about
Rs.5.67 lakhs to the Cancer Society of Kashmir for the benefit of poor patients who suffer
from serious digestive ailments.
To provide timely relief to the victims of the devastating earthquake in Gujarat, the Bank
donated a sum of Rs.10.00 lakhs to the Jammu & Kashmir Chief Minister's Relief Fund. The
officers of the Bank also donated their one-day's salary amounting to Rs.11 lakhs to the
Relief Fund. Recently the Bank donated Rs.one lakh to Maharaja Ranjit Singh Trust, New
Delhi, for the upliftment of downtrodden sections of the society. The Bank gave donation to
the Foundation for inter-community Relations Delhi for upliftment of society. A financial
assistance to the tune of Rs.1.00 lakh for the welfare of Gujjars was given to Gurjar Desh
Charitable Trust, Jammu.

56. 56
The Bank donated sewing machines to destitute widows through Barites Dalit Sahitya
Academy, Jammu. Showing its eagerness for the upliftment of women, the Bank donated
embroidary machines to Women's Welfare Society, Kachhama, and Kupwara. The Bank also
gave donation to NGO Friends Association for Ladies and Orphans Welfare (FALOW),
Srinagar.
Devastating fire in village Batpora (Wathora), Kashmir rendered hundreds of people
homeless and two persons lost their lives. The Bank organized a relief camp and distributed
50 kgs of rice and Rs.5, 000 to each of the affected family. Similarly, another relief camp was
organized for the fire victims at Seer, Anantnag (South Kashmir), where blankets, eatables
and domestic utensils were distributed among the sufferers. A camp was also organised by
the Bank at Lasipora, Pahalgam, where cash was distributed among the fire victims.
With a view to help Kargil war sufferers of Drass area in Ladakh region in their
rehabilitation, the Bank organized a relief camp. Blankets and eatables were distributed
among the people covering about 1500 families settled in 17 villages in and around Drass,
who had migrated to Sankoo, Saliskote and other far flung areas of Kargil. Stationery items
were distributed among the school children.
CONCLUSION
1. J & K bank being the largest bank in the private sector has pioneered the concept of
modern banking as opposed to the traditional and conventional approach to banking of the
nationalized banks.
2. The product and the services of the bank have captured the customer interest and the bank
has grown Phenomenally within a short period of time.
3. The study helps in providing useful information to the J&K Bank about the services,
product features and the satisfaction level of the customers.
4. The study helps in understanding the competitive environment in which the new operation
private Bank are operating today design to meet Banking needs and customer satisfaction.
RECOMMENDATIONS
 The bank should open its branches in rural areas to trap more customers for the bank.
 Brochure if the forthcoming schemes should send to the customers along with there
monthly and quarterly statements.
 Banks should try to find out a way to provide door services to its customers, as this is
very convenient for the businessman and shopkeepers of the area.
 Competitive strategy should be adopted to capture the market.
 Customers usually prefer loan, therefore loan provisions should be given more
emphasis.

57. 57
Body of the report (As per Appendix A)
CHAPTER -1: PROFILE OF THE COMPANY
CHAPTER -2: SWOT ANALYSIS OF THE COMPANY
CHAPTER -3: ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY
CHAPTER-4: LESSONS LEARNT
 References Bibliography
 Appendices

58. 58
REFERENCES/BIBLIOGRAPHY
BOOKS
The History of Banks- by Richard Hildreath
The Multilateral Development Banks - by Diana Tussie
 WWW.JKBANK.NET
 WWW.NSEINDIA.COM
 PNBINDIA.COM
 WWW.BANKSPOWER.COM

59. 59
APPENDICES
QUESTIONNAIRE
Please help us to please you, but first...thank you for being our customer.
We are extremely anxious to make our operation the finest possible, but we need your help,
principally because you see us objectively. Will you be kind enough to check off some
answers on the “self-improvement” questionnaire?
NAME: _______________________________
1. How would you rate the overall Quality of service you receive from THE J&K Bank?
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
2. A Convenient Branch to get to
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
3. Branch Hours are convenient
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
4. The Branch layout is spacious and uncluttered.
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
5. I spend very little time waiting in line to get service from the tellers.
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR.
6. Counter staff is immediately available to provide counter service.
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
7. Phone calls to the Branch are handled quickly and efficiently.
o EXCELLENT

60. 60
o GOOD
o SATISFACTORY
o POOR.
8. The staff is very courteous and helpful.
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
9. The staff is well informed about the Bank’s products and services.
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
10. The Branch has a pleasant and friendly atmosphere.
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
11. My accounts are handled
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
12. I am well informed concerning any changes in services
o EXCELLENT
o GOOD
o SATISFACTORY
o POOR
Signature: ___________________
Name: ______________________