“Marketing Approach of Banks” A comparative study of J&K bank and other banks

“Marketing Approach of Banks”
A comparative study of J&K bank and other banks
An internship project report submitted in partial fulfillment of the requirements
of
Master of Business Administration (MBA)
Under the supervision of Miss Tawasiya Zarabi
(Marketing division J&K Bank)
SUBMITTED BY
NAME OF STUDENT: MUDASIR MUZAFAR BHAT
ROLL NO: 69
MBA 4th
Semester
Regn. No: IUST/MBA/12/389
SCHOOL OF BUSINESS STUDIES
ISLAMIC UNIVERSITY OF SCIENCE &
TECHNOLOGY
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(
(
T

Certificate
This is to certify that the Project Work titled “Marketing Approach of Banks-
Comparative Study of J&K Bank & other Banks” is a bonafide work of
MUDASIR MUZAFAR BHAT Enrollment No: 69, an intern at J&K Bank
carried out in partial fulfillment for the award of degree of Masters In Business
Administration (MBA) of Islamic University Of Science & Technology under my
guidance. This project work is original and not submitted earlier for the award of
any degree / diploma or associate ship of any other University / Institution.
Signature:
Ms. Tawasi Zarabi
Project Coordinator
J&K Bank (Marketing Division)
Place : __________
Date : __________
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Declaration
I, Mudasir Muzafar Bhat, hereby declare that, I am the sole author of the project
titled “Marketing approach of banks: A comparative study of J&K BANK and other banks”
submitted to the School of Business Studies, IUST in fulfillment of the requirements for the
award of the degree of Master of Business Administration in The School of Business Studies.
That, it is an original research work carried out by me. This project contains no material
previously published or written by another person except where due reference is made.
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Date: 20/03/2013 Mudasir Muzafar
Bhat
Acknowledgement
“It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.”
On the very outset of this report, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this endeavor. Without their active guidance,
help, cooperation & encouragement, I would not have made headway in the project. First and
foremost, I would like to express my sincere gratitude to Mr. Mushtaq Ahmad Khan, Incharge
Marketing Division J&K Bank who provided me an opportunity to work on this project.
Secondly my project guide/mentor, Ms. Tawasiya Zarabi. I was privileged to experience a
sustained enthusiastic and involved interest from her side. This fuelled my enthusiasm even
further and encouraged me to boldly step into what was a totally dark and unexplored expanse
before me.
I am also thankful to all the respondents who helped the accomplishment of this project
by their valuable responses, suggestions.
Last but not least, I extend my gratitude to J&K Bank & my University- Islamic
University of Science & Technology for giving me this opportunity.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
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Mushtaq Ahmad Khan
Tawasiya Zarabi
&
J&K Bank
TABLE OF CONTENTS
CONTENTS Page No
PREFACE
EXECUTIVE SUMMARY
CHAPTER 1: INTRODUCTION
 EVOLUTION OF BANKING
 History of money
 Evolution of banking system
 Banking history of India
 Banking system in India: structure and working
 Functions of commercial banks
 COMPANY PROFILE: J&K BANK
CHAPTER 2: RESEARCH METHODOLOGY 20
2.1 Research Methodology 20
2.2 Research/Survey Brief 23
2.2.1 Secondary Research 23
2.2.2 Primary Research 24
2.3 Constraints faced during Survey 28
CHAPTER 3: STUDY & SURVEY FINDINGS 29
3.1 Study Findings 29
3.2 Learning’s from Surveys for Rural BPO Feasibility
36
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CHAPTER 4 : ANALYSIS OF THE FINDINGS 38
4.1 Rural BPO Business Model 38
4.2 Type of BPO Activities suitable for Rural BPOs 39
4.3 Rural BPO Cost and Returns: A Break Even analysis 40
4.4 Availability of Clients for Rural BPO 46
4.5 SWOT Analysis 47
CHAPTER 5 : SUGGESTIONS AND RECOMMENDATIONS 49
5.1 The Road Ahead 49
5.2 Role of State Govt. to encourage Rural BPO 51
CONCLUSION 52
LIMITATIONS 53
BIBILOGRAPHY & REFERENCES
BOOKS 54
WEBSITES 54
ANNEXURE 55
Questionnaire 1 : BPO & Khidmat Centers 57
Questionnaire 2: Govt./ Private Organisations 59
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INTRODUCTION
Human being is a social being. Throughout the life, all we do is try our best to fulfill our needs.
The place where things are exchanged or say mutual needs are satisfied, is called the
market and the efforts to make people aware of your offerings encouraging them to
deal with you and let them believe that in doing so, they are satisfying their needs at
its best is called marketing. After the banking sector reforms, marketing has
developed as a more integrated function within financial service organizations like
banks largely as a result of rapid changes in the operating environment. Banks
Marketing is defined as an aggregate of function directed at providing service to
satisfy customer’s financial needs and wants, more effectively than the competition
keeping in view the organizational objective of the bank. The bank marketing has
become a very complex yet interesting subject as it requires the knowledge of
economics, sociology, psychology, banking and also core marketing concept
(Sasanee, M.K. p. 5). In marketing, it is the customer who has the upper hand. The
mantra of effective marketing bank products lies in the systematic and professional
approach towards satisfying customer’s needs (Ojha, V.K. p. 19). Thus, banks have
to set up “Research and Market Intelligence” wings so as to remain innovative to
ensure customer satisfaction and to keep abreast of market development
(Ananthakrishnan, G. p. 9).
Marketing has suddenly become a buzzword in the banking sector. Customer has
suddenly moved to the center-stage and he has now a choice. How do banks then
attract a customer to use their product and services? One has to reckon the fact that
the old loyalty can no longer be taken for granted. Banks have to make efforts to
retain the existing customers and also use strategies to attract new customers to their
fold.
Marketing Approach to Banking Services:
· Identifying the customer’s financial needs and wants.
· Develop appropriate banking products and services to meet customer’s needs.
· Determine the prices for the products/services developed.
· Advertise and promote the product to existing and potential customer of financial services.
· Set up suitable distribution channels and bank branches.
· Forecasting and research of future market needs.
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From the above discussion of bank marketing, it can be understood that
the existence of the bank has little value without the existence of the customer. The key task of
the bank is not only to create and win more and more customers but also to retain them through
effective customer service. Customers are attracted through promises and are retained through
satisfaction of expectations, needs and wants. Marketing as related to banking is to define an
appropriate promise to a customer through a range of services (products) and also to ensure
effective delivery through satisfaction. The actual satisfaction delivered to a customer depends
upon how the customer is interacted with. It goes on to emphasize that every employee from the
topmost executive to the junior most employee of the bank is market.
Bank marketing in general and Customer Relationship Management (CRM) in particular
are of vital importance for Indian banks, particularly in the current context when banks are
facing tough competition from other agencies, both local and foreign, that offer value-
added services. The Role of marketing in the banking industry continues to change. For many
years the primary focus of bank marketing was public relations. Then the focus shifted to
advertising and sales promotion. That was followed by focus on the development of a sales
culture. Today banking sector all elements of the marketing concept – brand image, types of
products offered, support services, customer satisfaction, profit integrated framework and social
responsibility are all equally important. When applying marketing to the banking industry, the
bank marketing strategy can be said to include the following:-
 A very clear definition of target customers.
 The development of a marketing mix to satisfy customers at a profit for the bank.
 Planning for each of the source ‘markets’ & each of the use ‘markets.’
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SUMMARY OF THE STUDY:
This project puts a light various parameters of j&K bank’s marketing activities and that of its
competitors operating within the state, being oldest bank of state and having a
classical heritage of 75 years J&K bank is the market leader in state in terms of
customer base and branch network, being awarded as the no.1 private bank for its
productivity & efficiency J&k bank enjoys a stable and sustained business in the
state.
J&K bank has been one of the most trusted name in the banking arena of the state and has
been providing financial and banking services to the people in J&K and also in
various other states of the country, in J&K state the JAMMU AND KASHMIR
BANK had a monopoly with very few other banks operating in the
arena, but the entry of HDFC bank ,AXIS bank and development in the preexisting
banks like Punjab National Bank & State Bank Of India has posed a threat to the
spreading wings of Falcon who Represents J&K bank
The project gives us a customer’s perception of various marketing activities conducted by
banks and helps us to understand and find out the short comings and the advantages
which J&K bank has with respect to its competitors by providing useful information
related to customer preferences.
This project also presents data related J&K bank’s ‘Customer Based Brand Equity’: This
covers four aspects of brand equity: Brand awareness, Brand image, and Perceived quality
& brand loyalty.
The project also suggests some strategies for the enhancement of bank marketing. Only those
banks will survive in the future which will adopt effective and realistic strategy to win the trust
of the customer.
The rationale behind this topic is to find out the following.
• Different aspects of marketing approach of banking industry
• Customer behavior and Preferences
• Customer based differentiation of players in industry.
• Brand image/customer brand equity.
• Importance of customer Relationship Management in banking industry.
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History of MONEY
Barter economy: Goods were exchanged directly for other goods, so there was no money in the
economy. It was very difficult to have a lot of exchange going on because of the requirement of
double coincidence of wants inherent to the barter system. In order to have exchange in a barter
economy, you need to find someone who has something that you want, and who at the same
time wants something that you have. This became very inconvenient with specialization and
division of labor. So people started to look for a “universal equivalent” (used as “money”),
which is a good in terms of which the value of all other goods is measured.
Characteristics of Money: 1. Non-perishable 2. Divisible
Evolution of Money
Barter: No money is used Commodity Money: The universal equivalent is also a
commodity itself such as cows, salt, gold, and silver… So, it is a good that has an intrinsic value
and a use value besides its role of universal equivalent or money. Goldsmiths: (early versions of
safes) they keep your gold in their volts and give you a piece of paper that says they owe you a
certain amount of gold. Thus the expression “I owe you” IOU.
Convertible Token Money: People started to use cheaper metals or pieces of papers
that could be exchanged not for their intrinsic value but for the value that is printed on them. So
the piece of paper or the metallic coin is not worth much (no intrinsic value), but it’s used as
“money” because it is backed by commodity money (gold or silver) at a fixed exchange rate.
Token money is exchanged with the issuer of the currency (goldsmiths). This system is referred
to as the gold standard.
Inconvertible Token Money: it is not backed by any commodity, and is not exchanged
with the issuer of the currency. Instead it can be converted into commodities at a flexible
exchange rate, and not with the issuer but with anybody who happens to have that commodity in
the market. This system marks the beginning of Fiat Money.
Fiat Money: In 1971, the US went off the gold standard, and the US dollar was no
longer convertible into gold. Fiat money exists because of the government’s power Checks: a
piece of paper that promises to pay a certain amount of fiat money that is not backed by any
commodity.
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E-money (different from credit): You use it as a check, so you can only spend up to
the level that you have deposited in your bank account (ATM cards).
Credit cards: You use it and you promises to pay after a certain time period (at the end
of the month hopefully). These different kinds of money can and do co-exist in our economic
system.
Functions of Money
 Unit of account: money is a means by which a comparable wealth of commodities is
measured. Money is a standard or a measure of value
 Medium of exchange: A/ money is a means of purchase: money is exchanged directly
for goods and services. B/ money is a means of payment: Money is used to settle debt
(you receive goods and services in advance, and then you settle your debt in the future).
 Store of Value: money is a means of accumulating wealth, it is an end-in-itself.
WHAT IS BANKING?
There is no unanimity among the economists about the origin of the word “BANKING”.
The word “BANK” is itself derived from the Greek word “BANQUE” i.e. a bench. The German
word “BANC” means a joint stock firm.
Evolution of Banking System
The banking history is interesting and reflects evolution in trade and commerce. It also
throws light on living style, political and cultural aspects of civilized mankind. The strongest
faith of people has always been religion and God. The seat of religion and place of worship were
considered safe place for money and valuables. Ancient homes didn't have the benefit of a steel
safe, therefore, most wealthy people held accounts at their temples. Numerous people, like
priests or temple workers were both devout and honest, always occupied the temples, adding a
sense of security. There are records from Greece, Rome, Egypt and Ancient Babylon that
suggest temples loaned money out, in addition to keeping it safe. The fact that most temples
were also the financial centers of their cities and this is the major reason that they were
ransacked during wars. The practice of depositing personal valuables at these places which were
also functioning as the treasuries in ancient Babylon against a receipt was perhaps the earliest
form of “Banking”.
Gradually as the personal possession got evaluated in term of money, in form of coins made of
precious metal like gold and silver, these were being deposited in the temple treasuries. As these
coins were commonly accepted form of wealth, ‘lending’ activity to those who needed it and
were prepared to ‘borrow’ at an interest began. The person who conducted this ‘lending’ activity
was known as the “Banker” because of the bench he usually set. It is also observed that the term
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‘bankrupt’ got evolved then as the irate depositors broke the bench and table of the insolvent
banker.
With the expansion of trade the concept of banking gained greater ground. The handling
of “banking” transcended from individual to groups to companies. Issuing currency was one of
the major functions of the banks. The earliest from of money – coins, were a certificate of value
stamped on a metal, usually gold, silver, and bronze or any other metal, by an authority, usually
the king. With the increasing belief and faith in such authority of their valuation and the
necessities of wider trade a substitute to metal was found in paper. The vagaries of monarchial
rule led to the issues of currency being vested with the banks since they enjoyed faith, controlled
credit and trading. All forms of money were a unit of value and promised to pay the bearer of
specified value. Due to failure on account of unwise loans, to rule and organize, a stable banking
system arose. The word’s earliest bank currency notes were issued in Sweden by stock holms
Banco in July 1661.
History of Banking in India
The story of Indian coinage itself is very vast and fascinating, and also throws
tremendous light on the various aspects of life during different periods. The Rig Veda speaks
only gold, silver copper and bronze and the later Vedic texts also mention tin, lead, iron and
silver. Recently iron coins were found in very early levels at Attranji Kheri(U.P.) and Pandu
Rajar Dhibi (Bengal). A money economy existed in India since the days of Buddha.
In ancient India during the Maurya dynasty (321 to 185 BC), an instrument called adesha
was in use, which was an order on a banker desiring him to pay the money of the note to a third
person, which corresponds to the definition of a bill of exchange as we understand it today.
During the Buddhist period, there was considerable use of these instruments. Merchants in large
towns gave letters of credit to one another.
Trade guilds acted as bankers, both receiving deposits and issuing loans. The larger temples
served as bankers and in the south the village communities economically advanced loans to
peasants. There were many professional bankers and moneylenders like the sethi, the word
literally means “chief”. It has survived in the North India as seth. Small purchases were
regularly paid for in cowry shells(varataka), which remained the chief currency of the poor in
many parts of India.
Indigenous banking grew up in the form of rural money lending with certain individuals
using their private funds for this purpose. The scriptures singled out the vaishyas as the principal
bankers. The earliest form of Indian Bill of Exchange was called “Hundi”. Exports and import
were regulated by barter system.
Kautilya’s Arthasastra mentions about a currency known as panas and even fines paid to
courts were made by panas. E. B. Havell in his work: The History of Aryas Rule in India says
that Muhammad Tughlaq issued copper coin as counters and by an imperial decree made them
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pass at the value of gold and silver. The people paid their tribute in copper instead of gold, and
they bought all the necessaries and luxuries they desired in the same coin.
However, the Sultan’s tokens were not accepted in counties in which his decree did not
run. Soon the whole external trade of Hindustan come to a standstill. When as last the copper
tankas had become more worthless than clods, the Sultan in a rage repealed his edict and
proclaimed that the treasury would exchange gold coin for his copper ones. As a result of this
thousands of men from various quarters who possessed thousand of these copper coins bought
them to the treasury and received in exchange gold tankas. The origin of the word "rupee" is
found in the Sanskrit rūpya "shaped; stamped, impressed; coin" and also from the Sanskrit word
"rupa" meaning silver. The standardisation of currency unit as Rupee in largely due to Sher
Shah in 1542.
The English traders that came to India in the 17th century could not make much use of
the of indigenous bankers, owing to their ignorance of the language as well the inexperience
indigenous people of the European trade. Therefore, the English Agency Houses in Calcutta and
Bombay began to conduct banking business, besides their commercial business, based on
unlimited liability. The Europeans with aptitude of commercial pursuit, who resigned from civil
and military services, organized these agency houses.
A type of business organization recognizable as managing agency took form in a period
from 1834 to 1847. The primary concern of these agency houses was trade, but they branched
out into banking as aside line to facilitate the operations of their main business. The English
agency houses, that began to serve as bankers to the East India Company had no capital of their
own, and depended on deposits for their funds. They financed movements of crops, issued paper
money and established joint stock banks. Earliest of these was Hindusthan Bank, established by
one of the agency houses in Calcutta in 1770.
Banking in India originated in the last decades of the 18th century. The first banks were
The General Bank of India, which started in 1786, and Bank of Hindustan, which started in
1790; both are now defunct. The oldest bank in existence in India is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost immediately became the
Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-central banks,
as did their successors. The three banks merged in 1921 to form the Imperial Bank of India,
which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta
established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic
crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the
oldest Joint Stock bank in India.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself
in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking centre.
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The next was the Punjab National Bank, established in Lahore in 1895, which has
survived to the present and is now one of the largest banks in India. The presidency banks
dominated banking in India but there were also some exchange banks and a number of Indian
joint stock banks. All these banks operated in different segments of the economy. The exchange
banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock
banks were generally undercapitalized and lacked the experience and maturity to compete with
the presidency and exchange banks.
Swadeshi Movement
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi movement. The Swadeshi movement inspired local businessmen and political leaders
to found banks for the Indian community. A number of banks established then have survived to
the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara
Bank and Central Bank of India.
Ammembal Subbarao Pai founded “Canara Bank Hindu Permanent Fund” in1906.
Central Bank of India was established in 1911 by Sir Sorabji Pochkhanawala and was the first
commercial Indian bank completely owned and managed by Indians. In 1923, it acquired the
Tata Industrial Bank.
The fervour of Swadeshi movement lead to establishing of many private banks in
Dakshina Kannadaand Udupi district which were unified earlier and known by the name South
Canara (South Kanara )district. Four nationalized banks started in this district and also a leading
private sector bank. Hence, undivided Dakshina Kannada district is known as “Cradle of Indian
Banking".
Development after Freedom
The second milestone in history of Indian banking was India becoming a sovereign republic.
The Government of India initiated measures to play an active role in the economic life of the
nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a
mixed economy. This resulted into greaterinvolvement of the state in different segments of the
economy including banking and finance. The banking sector also witnessed the benefits;
Government took major steps in this Indian Banking Sector Reform after independence.
 First major step in this direction was nationalization of Reserve Bank in 1949.
 Enactment of Banking Regulation Act in 1949
 Reserve Bank of India Scheduled Banks' Regulations, 1951.
 Nationalization of Imperial Bank of India in 1955, with extensive banking
 facilities on a large scale especially in rural and semi-urban areas.
 Nationalization of SBI subsidiaries in 1959.
Government of India took many banking initiatives. These were aimed to provide banking
coverage to all section of the society and every sector of the economy. The Industrial Credit and
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Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World
Bank, the Government of India and representatives of Indian industry, with the objective of
creating a development financial institution for providing medium-term and long-term project
financing to Indian businesses.
Nationalization Process
Nationalization of banks in India was an important phenomenon. Despite the provisions,
control and regulations of Reserve Bank of India, banks in India except the State Bank of India
or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian
banking industry had become an important tool to facilitate the development of the Indian
economy. At the same time, it had emerged as a large employer, and a debate had ensued about
the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India,
expressed the intention of the Government of India in the annual conference of the All India
Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The meeting
received the paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance and nationalized the 14 largest commercial banks with effect from the midnight of
July 19, 1969. Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the
presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control of credit delivery.
With the second dose of nationalization, the Government of India controlled around 91% of the
banking business of India. Later on, in the year 1993, the government merged New Bank of
India with Punjab National Bank. It was the only merger between nationalized banks and
resulted in the reduction of the number of nationalized banks from 20 to 19. Currently there are
27 nationalized commercial banks.
Economic Liberalization
The second major turning point in this phase was Economic Liberalization in India.
After Independence in 1947, India adhered to socialist policies. The extensive regulation was
sarcastically dubbed as the "License Raj". The Government of India headed by Narasimha Rao
decided to usher in several reforms that are collectively termed as liberalization in the Indian
media with Manmohan Singh whom he appointed Finance Minister. Dr. Manmohan Singh, an
acclaimed economist, played a central role in implementing these reforms. In the early 1990s,
the then Narasimha Rao government embarked on a policy of liberalization, licensing a small
number of private banks. These came to be known as New Generation tech-savvy banks , and
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included Global Trust Bank (the first of such new generation banks to be set up), which later
amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank),ICICI Bank
and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized
the banking sector in India, which has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private banks and foreign banks. Currently
(2007), banking in India is generally fairly mature in terms of supply, product range and reach-
even though reach in rural India still remains a challenge for the private sector and foreign
banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have
clean, strong and transparent balance sheets relative to other banks in comparable economies in
its region. The
Reserve Bank of India is an autonomous body, with minimal pressure from the government. The
stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed
exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-
Especially in its services sector-the demand for banking services, especially retail Banking,
mortgages and investment services are expected to be strong.
Marketing Approach to Banking Services ·
 Develop appropriate banking products and services to meet customer’s needs.
 Determine the prices for the products/services developed.
 Advertise and promote the product to existing and potential customer of financial
services. ·
 Set up suitable distribution channels and bank branches.
 Forecasting and research of future market needs.
From the above discussion of bank marketing, it can be understood that the
existence of the bank has little value without the existence of the customer. The key task of the
bank is not only to create and win more and more customers but also to retain them through
effective customer service. Customers are attracted through promises and are retained through
satisfaction of expectations, needs and wants. Marketing as related to banking is to define an
appropriate promise to a customer through a range of services (products) and also to ensure
effective delivery through satisfaction. The actual satisfaction delivered to a customer depends
upon how the customer is interacted with. It goes on to emphasize that every employee from the
topmost executive to the junior most employee of the bank is market. Due to the introduction of
LPG policy and IT Act of 2000 the scope of the market has enhanced. Customer’s expectations
are high from the service industry like a banking industry. Only those banks will survive who
will provide efficient and customer desired services.
Evolution of banking sector
Banking is nothing but a service. The development of banking sector has been closely
associated with money changing in ancient days. The earliest banks of Italy where the name
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began were private companies that made & floated loans for the government. Banking made its
first starting point in the middle of 12th
century in Italy as public sectors. The Bank of Venice
was the first known public banking institution founded in 1157, and then the Bank of Barcelona
and bank of Geneva were established in 1401 & 1447 respectively. Therefore, Bank of
Amsterdam was established in 17th
century where Adam smith elaborately described the
functions of the bank. It received both foreign coins & Domestic coins of the country at intrinsic
value of the gold standard money of the country. The gold smiths assumed prominence around
the middle of the 17th
century after the service of King Charles gold hold’s that were kept under
the famous tower of London. The gold smith business however suffered a great set back due to
ill treatment by King Charles – II. The banker ancestors are the money lenders and gold smith’s
lending and borrowing are almost as old as money itself.
Banking system in India
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be able to
meet new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the
remote corners of the country. This is one of the main reasons of India's growth process. The
government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now it is simple as
instant messaging or dial a pizza. Money has become the order of the day. The first bank in
India, though conservative, was established in 1786. From 1786 till today, the journey of Indian
Banking System can be segregated into three distinct phases
 Early phase from 1786 to 1969 of Indian Banks
 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
 New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
KINDS OF BANKS
Financial requirements in a modern economy are of a diverse nature, distinctive variety
and large magnitude. Hence, different types of banks have been instituted to cater to the varying
needs of the community. Banks in the organized sector may, however, be classified in to the
following major forms:
1. Commercial banks
2. Co-operative bank
3. Specialized banks
4. Central bank
COMMERCIAL BANKS
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Commercial banks are joint stock companies dealing in money and credit. In India,
however there is a mixed banking system, prior to July 1969, all the commercial banks 73
scheduled and 26 non-scheduled banks, except the state bank of India and its subsidiaries-were
under the control of private sector. On July 19, 1969, however, 14mejor commercial banks with
deposits of over 50 Corers were nationalized. In April 1980, another six commercial banks of
high standing were taken over by the government.
At present, there are 20 nationalized banks plus the state bank of India and its 7 subsidiaries
constituting public sector banking which controls over 90 per cent of the banking business in the
country.
CO-OPERATIVE BANKS
Co-operative banks are a group of financial institutions organized under the provisions of the
Co-operative societies Act of the states. The main objective of co-operative banks is to provide
cheap credits to their members. They are based on the principle of self-reliance and mutual co-
operation.
SPECIALIZED BANKS
There are specialized forms of banks catering to some special needs with this unique
nature of activities. There are thus,
1. Foreign exchange banks,
2. Industrial banks,
3. Development banks,
4. Land development banks,
5. EXIM bank.
CENTRAL BANK
A central bank is the apex financial institution in the banking and financial system of a
country. It is regarded as the highest monetary authority in the country. It acts as the leader of
the money market. It supervises, control and regulates the activities of the commercial banks. It
is a service oriented financial institution.
India’s central bank is the Reserve Bank Of India established in 1935.a central bank is
usually state owned but it may also be a private organization. For instance, the reserve bank of
India (RBI), was started as a shareholders’ organization in 1935, however, it was nationalized
after independence, in 1949.it is free from parliamentary control.
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STRUCTURE OF BANKS IN INDIA
Reserve Bank India
(Central Bank and Monetary Authority)
Scheduled Banks
Commercial Bank Co-operative Banks
F
oreign Banks
((40)
Regional Rural
Banks (196)
Public Sector Bank (27) Private Sector
Banks(30)
Other National Banks(19)
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State
Cooperative
Banks (16)
Urban Co-
operative
Banks (52)

Functions of Commercial Bank
The modern commercial banks perform large variety of functions and provide a number
of services to their customers as follows.
 Accepts deposits
Commercial bank generally accepts 3-types of deposits.
 Current account
Bears no interest and the depositor can withdraw the amount at any time as
he/she requires.
 Saving A/C
The Paid interest at present is 4% p.a.
 Fixed deposit
Accepted for a predetermined fixed period and maybe withdrawn before the
expiry of that period.
 Lending of money
The second function of commercial bank is advancing loans that is important for the
earnings of the bank.
Generally loans are made in following ways:
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SBI and Associate Banks (8)
NEW(08)
OLD(22)

 Cash credit
 Ordinary loans
 Overdrafts
 Discounting of bills
 Functions relating to Agency work
 Issue of bank notes
 Issue of letter of credit
 Underwrite public issue
COMPANY PROFILE
Historical Back Ground of J & K Bank
The Jammu & Kashmir Bank was founded on October 1 1938 under letters patent issued
by the Maharaja of Kashmir, Hari Singh. The Maharaja invited eminent Kashmiri investors to
become founding directors and shareholders of the bank, the most notable of which were Abdul
Aziz Mantoo, Pesten Gee and the Bhaghat Family, all of whom acquired major shareholdings.
The Bank commenced business on July 4, 1939 and was considered the first of its nature
and composition as a State owned bank in the country. The Bank was established as a semi-
State Bank with participation in capital by State and the public under the control of State
Government.
The bank had to face serious problems at the time of independence when out of its total of ten
branches two branches of Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line
of control (now Azad Kashmir) along with cash and other assets. Following the extension of
Central laws to the state of Jammu & Kashmir, the bank was defined as a government company
as per the provisions of Indian companies act 1956.
The Jammu & Kashmir Bank is considered as one of the fastest growing banks in India
with a network of more than 750 branches/offices spread across the country offering world class
banking products/services to its customers. Today, the Bank has a status of value driven
organization and is always working towards building trust with shareholders, customers,
borrowers, regulators, employees and other diverse stakeholders, for which it has adopted a
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strategy directed to developing a sound foundation of relationship and trust aimed at achieving
excellence, which of course, comes from the womb of 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, disclosures, accountability and value.
It was in the year 1971 that Jammu and Kashmir Bank was granted the status of a
'Scheduled Bank'. Five years later, it was declared as "A" Class Bank, by the Reserve Bank of
India (RBI). As the years passed on, the bank started achieving more and more success. It was
only recently that Jammu and Kashmir Bank became a billion dollar company. Governed by the
Companies Act and Banking Regulation Act of India, it is regulated by RBI and SEBI. It finds a
listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as well.
Prelude:
The Jammu & Kashmir Bank is today one of the fastest growing banks in India with a
network of more than 750 branches/offices spread across the country offering world class
banking products/services to its customers. 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.
VISION:
"To catalyze economic transformation and capitalize on growth."
The vision of JK bank is to engender and catalyze economic transformation of Jammu and
Kashmir and capitalize 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.
The banks vision is to be financially sound, profitable, growth and technologically
oriented, committed to building and maximizing sustainable value for all its stakeholders. The
bank is committed to achieve healthy growth in profitability and simultaneously to remain
consistent with the bank’s risk appetite and at the same time ensuring the highest levels of
ethical standards, professionally integrity and regularity compliance.
The J&K bank ltd. has been the first of its nature and composition as a State owned bank
in the country. The State Govt. besides contributing half of the 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 Muzzafarbad and Mirpur fell to the other side of the
line of control (Pak Administered Kashmir) along with cash and other assets, in 1947. However
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The State Govt. came to its rescue with the assistance of Rs 6.00 Lacs to meet the claims,
however the bank stead fustily overcame its difficulties and kept growing. Following the
extension of central laws to state of Jammu & Kashmir, The bank was defined as a govt.
company as per the provisions of Indian companies act 1956.
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
The new identity for J&K Bank is a visual representation of the Bank's philosophy and business
strategy. The three colored squares represent the regions of Jammu, Kashmir and Ladakh. The
counter-form created by the interaction of the squares is a falcon with outstretched wings - a
symbol of power and empowerment. The synergy between the three regions propels the bank
towards new horizons. Green signifies growth and renewal, blue conveys stability and unity,
and red represents energy and power. All these attributes are integrated and assimilated in the
white counter-form.
Unique Characteristics & Services of Jammu & Kashmir Bank ltd.
 J&K Bank carries out banking business of the Central Government
In spite of a government equity holding of 53 per cent, Jammu & Kashmir Bank
(J&K Bank) is regarded as a private sector bank.
 J&K Bank is the one and only banker and lender of last resort to the Government
of J&K
Plan and non-plan funds, taxes and non-tax revenues are routed through the J&K
Bank.
 J&K Bank claims the distinction of being the only private sector bank that has been
designated as agent of RBI for banking
The services of J&K Bank are utilized for the purposes of disbursing the salaries of
Government officials.
 J&K Bank collects taxes pertaining to Central Board of Direct Taxes, in Jammu &
Kashmir
 Strong capitalization with good resource profile.
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 J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialized bank
in the rest of the country.
 It has tied up with MetLife to offer life insurance and with Bajaj Alliance General
Insurance Co. to offer general insurance.
The Jammu & Kashmir Bank Limited (the Bank) operates in four segments:
 Treasury,
 Corporate/whole sale banking,
 Retail banking and
 Other banking business
Government of Jammu & Kashmir holds 53.17% of equity shares of the
Bank. The Bank’s investments are classified into
 HELD-TO-MATURITY,
 AVAILABLE-FOR-SALE AND
 HELD-FOR-TRADING CATEGORIES
Profile:
 Incorporated in 1938.
 Governed by the companies Act and Banking regulation act of India.
 Regulated by the Reserve Bank of India and SEBI.
 Listed on the national Stock Exchange (NSE) and Bombay Stock Exchange (BSE)
 53 percent owned by Government of J&K.
 Four decades of uninterrupted profitability and dividends.
Key Risks
 Geographical concentration risk as majority of operations are limited to J&K
 Risk of nonpayment from customer
 Slowdown in economy could reduce credit off take
 Competition
In the present dynamic, highly evolved technological market Banks need to analyze and have a
constant check on its service marketing mix so as to retain its strategic and competitive
advantage and to ensure maximum customer satisfaction. To be the best player in the field banks
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need to adopt customer orientation and leave behind marketing myopia so as to ensure its
customer retention.
7P’S OF MARKETING WITH REFERENCE TO J&K BANK
1. Product
Product mix has 3 product lines:
Product line 1 Deposit products:
Recurring plus deposit plans: Invest variable installments in multiples of 100 any number of
times in a month .Tenure of scheme varies from 6 months to 5 years and carries compounded
rate of interest on quarterly basis .
Various accounts here in this category are :
 Savings bank accounts.
 Savings plus accounts.
 Salary plus accounts.
Current deposits: Six variants (platinum, gold, premium plus, premium, basic, grameen). The
current deposits are intended to provide the facility to individuals to have an unlimited number
of transactions with the bank.
Platinum ,gold, premium plus and premium accounts enable customers to avail number of
discounted services like issuance of drafts ,fund transfer, cash deposits etc.
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 A high end debit card: gold debit card offered on platinum, gold and premium plus
current account has daily cash withdrawal limit of Rs 1 lac on Atms and 1.50 on point of
sale machines.
 An international debit card Offered on premium basic and grameen current a/c’s has a
daily cash withdrawal limit of RS 0.40 lacs on Atms and 0.75 lacs on point of sale
machines.
 Tax saver term deposits: Minimum deposit amount is Rs 1000 and multiples thereof.
Minimum tenure is 5 years and interest on deposits shall be paid either monthly,
quarterly or at maturity. It has income tax benefit under section 80 c of income tax act
1961.
Product line 2: Loans and advances:
 Bills purchased and discounting.
 Cash credits and overdrafts.
 Loans on demand and term loan: J&K Bank housing loan, loans can be availed by
employees, businessman as well as self-employed individuals, Margin varies from 15%
to 20% and maximum repayment period of 20 years allowed and no closure charges.
 J&K Bank scooty finance for Girls. Finance up to 85% of cost of scooty, targeted at girl
students and working ladies, concessional rate of interest.
 The bank construction equipment finance: Early available finance for the purchase of
construction equipment, cranes, excavators .finance available up to 75% of invoice
subject to maximum of Rs 100.00 lakhs for borrower.
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Product line 3: Auxiliary services:
 Foreign exchanges, payment of cheques, Technology based financial services.
 Anywhere banking(power to access a/c’s across all over branch network)
 Internet banking: Enable fund transfer and more
 Atm services, mobile banking
 Products for specialized segments:
 NRI banking:
 Personal banking: home loans, car loans
 Artisan banking: artisan credit card
 Agriculture banking: crop loans etc.
Product addition and deletion:
Emphasis on new products and renovation of existing ones occurs
simultaneously and continuously in the bank ex introduction of J&K Bank solar lightening and
photovoltaic finance, kissan dost finance , J&K Bank girl finance ,poultry venture capital
finance etc. J&K Bank has introduced a specialized “Apple project “to provide solution to the
stakeholders of apple fruit which is the main component of Kashmir fruit industry.
Price:
The pricing strategies revolve around the interest rates because this determines people
willingness to invest in the banks. RBI and IBA are concerned with the regulations .The bank
follows administrated pricing strategies which are twofold: first is concerned with interest and
fee charged and second with interest paid. There needs to be a positive correlation between the
two so that both the buyers and sellers have a feeling of winning. J&K Bank also takes into
account the risk of loss. For high value deposits interest rates vary from 5.25% per annum for 30
days maturity period to 8.25 % for 5 years to 10 years. Prime lending rate (PLR) is 14.75 %
w.e.f 15.02.2013 and base rate is 10.25% for loans and advances.
Place:
This is related to offering of services. Services are sold through branches and ATMs. While
selecting a branch factors such as safety and security, convenience to both the parties are taken
care of.
No of branches: 760+ all over India
No of Atms: 725+ all over India
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Promotion:
J&K bank concentrates on both personal and impersonal strategies .It adopts a mix of
promotional tools and spends on rural prospects also. During the last year the bank continued to
position its brand favorably in public memory. The products and achievements are effectively
communicated to customers, shareholders through advertisements and publicity it uses a mix of
various tools
• Advertisement: (TV, radio)
• Print media: (hoardings, newspapers, magazines)
• Publicity: road shows, conferences and seminars
• Sales promotions (gifts, incentives)
• Another important tool used for promotion is community interest programs like
development of recreational parks like Iqbal park in Srinagar or organizing blood
donation camps or health camps.
• Customer feedback: feedback forms are provided to customers and suggestion boxes are
kept at every branch.
• Promotion through Corporate social responsibility of J&K Bank
• Education sector: Bank donates hefty sum for establishment of a library at a remote
educational institute in south Kashmir. Special emphasis is laid on supporting orphans.
• Health: It donated trolleys and wheel chairs to leading hospitals ex SKIIMS hospital
soura and SMHS hospital Srinagar to contribute to the health of public concern and
organized health camps across the valley like a recent gastroenterology health camp at
its corporate office Srinagar on world health day. Over 300 patients received free
treatment at jk banks medical camp at RAJOURI. The bank has lauched an initative of
HEALTH FOR ALL.
• Environment: Environmental concerns are taken care of by supportive initiatives like
massive plantation drives and also dedicate parks for twin purposes of serving
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environments and providing recreation to4 people like Iqbal park in Srinagar, Gulnar
park in Baramulla. Also active participation in awareness campaigns like Dal
conservation, ban on polythenes etc.
• Sports: Bank has formally launched its own football club and academy committed to
development of sports. Its also engaged in sponsoring other sports activities at various
places of the state.
Physical Evidence
• There is no specific design for the branch layout but adequate caution is taken to ensure
locker security. Every branch has a seating place for its customers and employee
designation is displayed at respective counters.
• Bank provides tangibles such as diaries, calendars, pens etc. to its valuable customers
• Excellent ventilation.
• Well-dressed employees.
Process:
Bank offers real time gross settlement (RTGS)payments and also national electronic fund
transfer (NEFT) Flow of activities follow RBI guidelines .The new bank account can be opened
very easily with a sum of as less as Rs 500within 24hrs. J&K Bank also issues instant Atms for
ease of customers .Speed and accuracy of payment is most important for this IT and
warehousing is important .J&K Bank uses Finacle software for this purpose. The hierarchy has
following structure:
1. C.E.O /chairman
2. Board of directors
3. Executive presidents
4. Presidents
5. Vice presidents
6. Support staff
People:
The main aim is to have a strong internal customer awareness. For this bank employs following
strategies:
1. Hire the right people.
2. Train them
3. Provide the needed support system
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In the new departmental restructure J&K bank has redefined the core functions of human
resources. J&K Bank is moving towards a system where it will facilitate performance
improvement, measured not only in terms of certain financial indicators of operational
efficiency but also in terms of quality of financial services provided. The primary concern of the
Bank is to bring in proper integration of human resource management strategies with the
business strategies. The J&K Bank has over 10000 employees and was also looking for a
technology to help it cut down paper work, reduce manual work. The bank selected Wipro
InfoTech, the IT business arm of Wipro Ltd, to implement Oracle’s PeopleSoft Enterprise
Human Capital Management 9.0.
Recruitment and selection is done through a competitive examination conducted by IBPS and
internal recruitment through promotion of experienced and talented people is also done. First
advertisement is given in local newspapers followed by aptitude exam and an interview.
Trainings:
It has set up a number of training centers where in they have class room teachings by
professionals and an adequate support system to provide necessary information to the
employees’ .Many in house publications are circulated like yearly annual reports and some
journals to keep its employees abreast of all latest developments and information.
Benefits to employees:
Salary and scale is revised every 4 years. Dearness allowance, Financial benefits ex car loans,
welfare benefits ex educational scholarships.
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REASEARCH DESIGN
PROBLEM DEFINITION:
Bank marketing in general and Customer Relationship Management (CRM) in particular
are of vital importance for Indian banks, particularly in the current context when banks are
facing tough competition from other agencies, both local and foreign, that offer value-
added services. The Role of marketing in the banking industry continues to change. For many
years the primary focus of bank marketing was public relations. Then the focus shifted to
advertising and sales promotion. That was followed by focus on the development of a sales
culture. Today banking sector all elements of the marketing concept – brand image, types of
products offered, support services, customer satisfaction, profit integrated framework and social
responsibility are all equally important. When applying marketing to the banking industry, the
bank marketing strategy can be said to include the following:-
 A very clear definition of target customers.
 The development of a marketing mix to satisfy customers at a profit for the bank.
 Planning for each of the source ‘markets & each of the use ‘markets.
Research problem:
After year 2005 the banking industry of jammu&Kashmir has seen an increased
competition and since most of the bank products are nearly same in Indian scenario, then the
most appropriate ways that are left to achieve a competitive advantage are through service
quality or through a proper marketing approach that educates customer and is tailor made for his
banking worries and fulfills his need of social empowerment.
Since, service quality will be a smaller segment of whole marketing approach for the
particular service for this research we will be taking the more broader concept i.e. marketing
approach of banks in a competitive environment .
Literature review:
There hasn’t been any research’s on the marketing approach of banking industry of
Kashmir or of any individual bank in Kashmir , but a number of research papers have been
framed on individual dimensions of marketing which were of great help during the course of
this project. Besides that information was available in annual reports and some more was
collected from internet.
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OBJECTIVES OF RESEARCH PROJECT:
PRIMARY OBJECTIVES:
 Different aspects of marketing approach of banking industry
 Customer behavior and Preferences
 Customer based differentiation of players in industry.
 Brand image/customer brand equity.
 Importance of customer Relationship Management in banking industry.
SECONDARY OBJECTIVES:
 To provide data useful for development of competitive marketing strategies.
 To offer suggestions based upon the findings.
 To provide effective and useful information to retain customers and increase present
customer base.
RESEARCH METHODOLOGY
All the findings and conclusions obtained are based on the survey done in the working
area within the time limit. I tried to select the sample representative of the whole group during
the course. I have collected data from people linked with different occupations from different
areas of Kashmir valley.
COLLECTION OF DATA:
1. SECONDARY DATA:
The secondary data for the research was collected from company websites,
newspapers, journals, magazines, annual reports and from some previous researches related to
the topic somewhat.
2. PRIMARY DATA:
All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary
data was direct personal interview through two questionnaires. One was completely close-ended
and the other questionnaire was a combination of close and open-ended the open part being for
suggestions.
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.
 Sampling Units: Different professionals, govt. employees, students and businessmen
(shopkeepers, self-employed and entrepreneurs) from various areas of city were part of
sample taken.
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 Sample Technique: Random Sampling.
 Research Instrument: Structured Questionnaires(2).
 Contact Method: Personal Interview.
SAMPLE SIZE:
My sample size for this project was 150 respondents. Since it was not possible to
cover the whole universe in the available time period, it was necessary for me to take a
sample size of 150 respondents.
DATA COLLECTION INSTRUMENT DEVELOPMENT:
The mode of collection of data will be based on Survey Method and Field Activity.
Primary data collection was based on personal interview. I have prepared two questionnaires
according to the necessity of the data to be collected.
The first questionnaire collected data for analyzing different aspects of banking industry
mostly focusing on marketing parameters. The measurement scale used is 5 point likert scale
with completely disagree at 1 and completely agree at 5.
The 2nd
questionnaire was exclusively designed to assess the customer based brand equity OF
JAMMU AND KASHMIR BANK again using likert scale but a three point this time.
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DATA INTERPRETATION
The 1st questionnaire contained 8 items; first three being pre-requisite to the remaining
part, the remaining 5 questions contains total of 27 sub-items which give a customer perception
of various marketing activities that are undertaken by modern banking industry.
Q.1: Do you deal with Banks?
Q1 YES NO
Bank 150
Q.2: Which Bank do you deal with?
JKBank SBI HDFC OTHERS
75 25 25 25
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Q.3:
a) “Your Bank provides convenience and comfort through innovative and modern
services.”
J&K BANK SBI HDFC OTH.
Completely Agree (5) 62% 27% 52% 23%
Somewhat Agree (4) 19% 14% 13% 27%
Neither Agree nor Disagree (3) 6% 23% 17% 32%
Somewhat Disagree (2) 10% 23% 13% 5%
Completely Disagree (1) 3% 14% 4% 14%
Interpretation: It can be seen from the data that J&K bank leads the industry in providing
modern yet convenient services, with more than 60% of its customer’s strongly agreeing to this
statement, the only close competitor is HDFC bank which in a short span of 9 years has been
able to provide modern services and is just beside J&K bank in the industry. The graph below
presents a complete view of the how players are poised in the industry with respect to customer
perception.
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b) Your bank is socially responsible and works for the development of society as a whole”
Somewhat Agree (4) 16% 9% 13% 36%
Interpretation: Corporate social responsibility is one of the chief characteristics of J&K
bank and as huge as 75% of its customers agree with the fact that its bank is socially
responsible. Whereas the other players maybe giants of the industry when considered at national
level but in this small valley their role in fulfilling hasn’t been up to the standards.
The graph below gives a complete view of the scenario
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c) Your Bank is able to deliver an excellent service at any point of contact to customers.”
Somewhat Agree (4) 21% 9% 35% 14%
Interpretation: As can be seen from the data that at the point of contact to customers which
is aka ‘service encounter’ 50% of the customers from J&K bank are in agreement with its bank
providing excellent service delivery, the complete view of the industry is presented by the below
chart.
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d) Your Banking institution respond positively to customer expectations/Grievances/feedbacks
Somewhat Agree (4) 16% 23% 9% 32%
INTERPRETATION: The data above shows that none of the players within the industry is
able to satisfy the majority of its customers when it comes to be responsive towards feedback
and grievances, but in this low scoring parameter for industry J&K bank still leads with a mild
looking 41% followed closely by HDFC bank which is just 2% behind.
The graph below shows the complete view of the industry.
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e) The staff at your bank is courteous and customer friendly
Somewhat Agree (4) 25% 18% 22% 50%
INTERPRETATION: The data shows that the staff at j&k bank is perceived to be more
courteous in comparison to its competitors in the industry.
The graph below will give more clear view of the scenario:
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Q.5:
a) Waiting time for addressing customer questions is satisfactory at your bank.
Somewhat Agree (4) 9% 18% 13% 9%
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Interpretation: Waiting time before a customer is addressed is found to be more satisfactory
for J&K bank customers than that of the other banks, below is the pictorial representation of
stats for the players of the industry operating in the state.
b) Having a properly designed CRM at your bank gives better service experience
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Interpretation: The data shows that J&K bank customers are more in agreement with the
statement that a properly designed CRM provides better service experience, the below graph
contains the response for all the players of the industry.
c) Your bank is able to provide fast & convenient clearing services
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Interpretation: As per the customers the inter banking clearing services are convenient and
faster with HDFC & SBI and for J&K bank this figure stands tormenting with only 34% of his
customers satisfied with the clearing services provided by the bank.
The below graph gives us a deeper look into the industry.
d) “Your bank is competitive and flexible in its approach”
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Interpretation: From the above data we can see that when it comes to being competitive and
flexible in approach j&k bank again leads the way with a good 47% of customers agreeing with
the statement the only close follower is HDFC bank with a decent looking 30% of its customers
agree with the statement
Q.5:
a) You are able to receive sufficient information on your account from your bank
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Somewhat Agree (4) 18% 23% 13% 18%
Interpretation: The data shows that J&K bank is way ahead than its competitors in being
able to inform their customers on their accounts,
Below is the chart for all the players of the industry:
b) The working hours of your bank branches is optimum
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INTERPRETATION: The data shows that the working hours in banks are agreed to be
optimum by most of the customers for every player in industry,
The chart below shows these stats more clearly:
c) Customers are at ease to be served by staff with modern technology at your bank
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Somewhat Agree (4) 9% 14% 13% 23%
INTERPRETATION: The data above shows how much ease is brought by the use of modern
technology when it comes to serving customers, the stats clearly show the dominance of J&K bank
in this aspect.
The chart below is the representation of stats for the industry:
d) Your Bank is trustworthy and provides accurate banking solutions
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Somewhat Agree (4) 16% 23% 13% 18%
INTERPRETATION: The data shows that J&K bank is one of the most trusted name in the
banking arena of state and as much as 65% of its customers feel this way.
The stats are clearly shown by the chart below:
e) The service provided by your bank is more of relationship banking than mere transactional
banking
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Somewhat Agree (4) 16% 23% 13% 18%
INTERPRETATION: The data shows that J& bank is again the leader when it comes to creating
a relationship with customers.
The stats for the industry are in the chart below:
Q.7:
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a) Your bank is willing to listen and respond to your changing needs
Somewhat Agree (4) 18% 9% 22% 36%
INTERPRETATION: the data shows that HDFC is the leader in the industry when we take
responsiveness to changing needs of the customers, the J&K bank follows with a mere 21% of
its customers with the view that their bank is responsive to changing needs.
Below chart gives us the view of the banking industry in being responsive to changing needs
of customers:
b) Your bank recognizes you as a valued customer
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Somewhat Agree (4) 19% 9% 17% 23%
INTERPRETATION: The data shows that J&K Bank and HDFC outclass other banks when it
comes to giving individual recognition to its customers.
The chart below shows the complete stats for the industry:
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c) Your bank provides clean and well maintained facilities
Somewhat Agree (4) 19% 27% 30% 14%
50%
60%
INTERPRETATION: The data shows that both J&K bank and HDFC bank are way ahead of
other players in the industry with J&K bank having slightly upper hand.
The below is the chart showing the stats of the players in the undustry:
d) Your bank branches have pleasant and attractive décor
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INTERPRETATION: The data above shows that HDFC bank has overpowered J&K bank by
5% when it comes to attract people through pleasant décor.
The data is presented in the form of a chart below:
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e) Your bank provides complete record of transactions(statements etc.) whenever required
Somewhat Agree (4) 15% 14% 17% 23%
INTERPRETATION: The data shows that J&K bank is the leader in providing record of the
transactions whenever demanded by the customers.
The below chart is showing the stats for the players of industry:
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f) Your bank is able to provide good telephonic assistance as well
Somewhat Agree (4) 13% 18% 13% 9%
INTERPRETATION: The data clearly shows HDFC is leading the way followed by SBI &
other banks . J&K bank stands at bottom in providing telephonic assistance.
The data is in the form of a chart below:
Q.8:
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a) Your Bank is good at making people aware of their products through brochures and
advertisements
Somewhat Agree (4) 18% 9% 13% 18%
INTERPRETATION: The data shows that its J&K bank and HDFC bank that are the leaders of
the industry in making people aware of their products through proper promotion cannels.
The stats of the industry are shown in the chart below:
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b) Your Bank websites are informative and easy to retrieve information
INTERPRETATION: The data again shows the dominance of J&K bank in the industry as it is
nicely ahead of competitors by providing informative and easily accessible website to its
customers.
The stats are framed in the chart below:
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c) Customers are happy with the mobile banking and online services provided by your bank
Somewhat Agree (4) 22% 18% 9% 14%
INTERPRETATION: Data from the above shows that J&K bank has been successful in making
themselves available on mobile more than its competitors.
The chart below will give a clearer picture:
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d) The location of branches & ATM’s is customer friendly and easily accessible
Somewhat Agree (4) 18% 9% 13% 18%
INTERPRETATION: As per data J&k bank is having a better branch network & more proper
location of its ATM’S & are easily accessible than those of its competitors.
The chart below shows the stats:
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e) Your bank always strive for better quality services
Somewhat Agree (4) 13% 14% 26% 9%
INTERPRETATION: As per data obtained HDFC is the leader in providing quality services
whereas JK bank is only able to satisfy 1/3 of its customers on this parameter.
The chart below shows the level of agreement for different players as per customers
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f) Your bank is helpful in tax consulting
Somewhat Agree (4) 18% 14% 17% 23%
INTERPRETATION: The data shows that it’s again J&K bank who helps its customers in
solving their tax problems better than that of its competitors.
The below chart will give a broader view
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g) Your bank provides solution to most of your banking needs
Somewhat Agree (4) 16% 14% 26% 27%
INTERPRETATION: The data above shows that JK bank is having a healthy 69% of its
customers getting their banking needs fully satisfied and are happy to bank on JK bank.
The chart of the data for industry is below:
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DATA RECORDED FROM IIND QUESTIONNARE:
BRAND AWARENESS:
 I have heard of J&K bank.
YES 100.00%
NO 0.00%
TO SOME EXTENT 0.00%
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 Some characteristics about J&K bank come quickly to my mind.
YES 100.00%
NO 0.00%
 I can recognize the name of J&K bank among other banks
YES 100.00%
NO 0.00%
.
 I can recall J&K bank’s symbol or logo.
YES 100.00%
NO 0.00%
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BRAND IMAGE:
• There are unique banking services at J&K bank’s branches.
YES 64.44%
NO 8.15%
• There are considerable cash and payment facilities at J&K bank’s branches.
YES 75.56%
NO 0.00%
CAN'T SAY 24.44%
• There is minimum financial risk associated with j and k bank.
YES 68.15%
NO 0.00%
CAN'T SAY 31.85%
• There is good physical environment at J&K bank’s branches.
YES 77.78%
NO 3.70%
• There are friendly personnel at J&K bank’s branches.
YES 77.78%
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NO 4.44%
PERCEIVED QUALITY:
• There is a high level of cleanliness at J&K bank’s branches.
YES 77.78%
NO 3.70%
• There is a high quality of financial and physical safety at J&K bank’s
branches.
YES 85.19%
NO 0.00%
CAN'T SAY 14.81%
• There is a high quality of accommodation at J&K bank’s branches.
YES 85.19%
NO 7.41%
CAN'T SAY 7.41%
• There is a high quality of banking services at J&K bank’s agencies.
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YES 81.48%
NO 7.41%
CAN'T SAY 11.11%
• There are low costs of banking services at J&K bank’s branches.
YES 77.78%
NO 11.11%
BRAND LOYALTY:
I would like to refer to J&K bank again in the future.
I intend to recommend J&K bank to my family and friends.
YES 92.59%
NO 0.00%
MAY BE 7.41%
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YES 85.19%
NO 0.00%
MAY BE 14.81%

J&K bank provides more benefits than other similar banks.
J&K bank is one of the preferred banks I want to refer.
Page | 1

RECOMMENDATIONS:
Start with the lowest hanging fruit: The easiest sales that can be made to current customers
are engagement services that help a customer use an account they already own. These 'sticky
services' include a debit card, online banking, direct deposit, bill pay, automatic savings transfer,
personal line of credit and security solutions such as privacy protection. These services help to
ensure the customer will use the products they own more frequently, will significantly improve
retention and will help to improve the overall customer experience.
Continually evaluate upsell opportunities: Rather than using product-driven programs that are
done seasonally, consider funding more customer-focused programs that evaluate each
customer's propensity to open one or more of the products and services you offer. With some of
my clients, we evaluate each customer's transactional, product ownership and even behavioral
characteristics to determine what would be the most likely next purchase and whether the
propensity to purchase is high enough to make an offer.
In some of most successful programs, this evaluation of opportunities is done monthly, with
smaller mailing universes, but much higher response rates. As the ability to use 'big data'
increases, the movement from sales 'programs' to sales 'processes' becomes a necessity.
The goal is to offer the right product, at the right time, to the right customer through the right
channel. This takes customer data analytics.
Empower your customer contact teams: For most customer-facing employees of your bank,
their primary responsibility revolves around efficient processing of transactions and/or customer
service. To leverage the thousands of customer engagements these employees have each year,
you need to provide easy ways for them to extend their conversations to include relationship
expansion opportunities. Many banks provide prompts on their employee's computer screen
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around recent sales communications received by the customer, most likely products that may
interest the customer and even special offers that can be made as part of their transaction or
service conversation.
Leverage all channels: Never assume that customers understand all that your organization
offers or absorb communication the same through all channels. Remind your customers
continuously that you know who they are, understand their needs, are looking out for them and
that you are willing to reward them for their loyalty. And use as many direct channels as
possible to reach out to your current customer base, including email, direct mail, statement
inserts, banner ads on your website, ATM messaging, outbound calling efforts, etc. Digital
retargeting of customers who visit your website or are part of your direct mail or email
programs also is a highly effective and very efficient way to cross-sell customers.
Finally, it is time to start building cross-selling messages within your online and mobile bank
applications and to not assume customers will not want or read an SMS message if it is well
targeted.
MEASURE AND REWARD WHAT YOU WANT TO BE DONE:
By providing ongoing measurement of the cross-selling objectives you want to achieve and
paying for the achievement of these objectives, you have a much better chance of reaching your
goals. This continuous reinforcement of your cross-sell mission allows your team to be focused
on what's important.
You can also turbocharge your results by communicating how you are assisting in their
efforts. Provide opportunity reports of the customers where they may have the greatest
opportunity for success. As part of these reports, it is also helpful to provide background as to
why the customer is being selected for a specific offer.
Finally, remember that current customers like to be rewarded for their loyalty. One of the best
ways to do this is to remember to include an offer with any cross-sell or upsell message.
Without an offer, you may be perceived as simply 'pushing product' without leveraging the
relationship value already in place. A strong offer will not only generate a better response to
your communication, but also remind the customer of the value of doing business with your
organization.
Bank Customer Segmentation Analysis
Gain a clear understanding of your customers. Mapping Analytics combines data from
your customer information file with demographic and lifestyle data that describes and
predicts consumer behavior and buying patterns. For banks with commercial customers, we
segment by SIC codes and business demographics.
By segmenting your customers into groups based on their type and behavior, you will
have a foundation for successful marketing, including targeted promotions, market
expansion and branch network optimization.
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Branch Network Optimization and New Branch Evaluation
Based on results of branch trade area and branch performance analysis, Mapping
Analytics will develop a model you can use to evaluate any existing or potential bank
branch location — or your entire network of branches.
An analysis of your branch network also includes your candidate sites and competitor
sites. It will help you determine which locations generate the greatest positive impact on
your overall network. A branch network analysis will help you answer the following
questions:
• Which areas within the current network offer the most potential for opening new
branches?
• How many branches could/should be added to the current network?
• Which branches should be closed?
And, when opportunity arises for opening a new branch, you will be able to quickly
determine how a potential site compares with existing sites and the impact on your overall
branch network.
Branch Trade Area and Performance Analysis
Using customer, product mix and transaction data, Mapping Analytics can help you
construct accurate trade areas for existing branches and estimate trade areas when evaluating
new branches.
Accurate trade areas based on actual customer behavior, rather than approximations based
on mile rings or drive times, are essential to understanding bank branch performance.
Mapping Analytics determines branch performance by comparing your bank's product
mix within its trade area to market penetration and share of wallet. We use commercially
available market data in our analysis to score penetration, potential and share of wallet. You
will be able to see the level of demand for your products and services in any area.
Analyzing branches according to their performance helps you make better decisions
regarding product offerings and marketing campaigns. This analysis also serves as the
foundation for optimizing your branch network and evaluating potential new branch locations.
Suggestions:
• Strengthen internal marketing, external marketing and interactive marketing.
• Frontline employees should be given involvement in decision making.
• Spend more on promotion.
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• Recognize marketing as an important function.
• Training of employees.
• Recruitment selection be taken care of and should be away from nepotism.
• Hire the right people and give induction trainings.
• Internal marketing to be used so that workforce is satisfied.
Limitations and suggestions for further research:
The limitations of this research project are:
o Time limit of 8 weeks was very small to conduct a research on a wide concept
like marketing.
o Very little secondary data was available as not enough work was published on
the subject Of marketing with respect to banking industry in Kashmir
o J&K is a large state and it was not possible to cover all districts the work was
done within the Srinagar but the respondents represented various districts of
state.
o The research could not accommodate all the parameters of marketing for banking
industries as the allotted time was limited.
Suggestion for future research:
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 For future researches it is advised to broaden the concept by taking data from the
personnel responsible to conduct the marketing activities.
 Use of multiple data collection tools will help as some of the questions cannot be framed
as good as they are asked.
 Reach the outer areas of city to get more appropriate and bias free data
BIBLIOGRAPHY
1. Annual Reports OF J&K Bank Ltd. (2005-2013)
2. Yearly Journals of J&K Bank Ltd.
3. Yearly handbook of J&K bank Ltd.
4. Service marketing by CHIRSTOPHER LOVELOCK, JOCHEN WIRTZ, and
J.CHATTERJEE PEARSON EDUCATION INDIA
5. Service marketing by K.RAMA MOHANA RAO PEARSON EDUCATION INDIA.
6. Service marketing by SIE ZEITHAMAL TATA MC GRAW-HILL
EDUCATION,2011
7. www.google.com
8. www.abhinavjournal.com
Page | 1

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