1

INDEX

Acknowledgement

Declaration

Executive Summary

Introduction

Profile

Research Objective

Introduction to the FSPs Of J&K Bank

Credit Cards

Debit Cards

Point of Sale Machine

E-Banking

Mutual Funds

Questionnaire

Research Methodology

Finding and Analysis

SWOT Analysis

Recommendations

Bibliography

2

EXECUTIVE SUMMARY

In few years JAMMU & KASHMIR BANK financial services has emerged as a tool for ensuring

ones financial well-being. P.O.S machines, CREDIT cards, DEBIT cards etc. have helped

families tap into the success of Indian industries. As information and awareness is rising more

and more people are enjoying the benefits of investing in mutual funds and using various

services. The trick for converting a person with no knowledge of services to a profitable

customer is to understand which of the potential customers are more likely to buy credit card,

POS machine, debit card and to use the right argument in the sales process that customers will

accept as important and relevant to their decision.

This project gave me a great learning experience and at the same time it gave me enough scope

to implement my marketing ability in the sale of the services offered by the bank. This report

will help to know about the various financial services offered by the J&K bank and the people

response to them. The report throws some light on some factors that lead to the preference of

J&K bank services over other banks. I hope the research findings and conclusions will be of use.

3

INTRODUCTION TO THE INDIAN BANKING SYSTEM

The Indian Banking system has a large geographic and functional coverage. Presently the total

asset size of the Indian banking sector is US$ 270 billion with a branch network exceeding

66,000 branches across the country. Revenues of the banking sector have grown at 6 per cent

CAGR over the past few years to reach a size of US$ 15 billion. While commercial banks cater

to short and medium term financing requirements, national level and state level financial

institutions meet longer-term requirements. This distinction is getting blurred with commercial

banks extending project finance. The total disbursements of the financial institutions in 2001

were US$ 14 billion.

BANKING

Banks are the institutions where those who have some savings can keep their money in the form

of deposits & those who need money borrow money on payment of interest with certain

conditions that assure recovery of the borrowed money. The rate of interest charged by the bank

from its borrower is usually higher than what it pays to the depositor.

In addition to the safe money keeping of depositor and money lending to the borrower a bank

also helps people in many kinds of money transactions. In brief the main functions of bank are:-

Receiving money from the depositors

Lending money on demand

Transferring money from one place to another

Receiving payment for public utility services such as telephone bills, house tax etc

Renting safe deposits locker for safe custody of valuables

Helping travellers and tourist by providing travellers cheques and foreign currency etc.

The various types of account provided by the bank are as follows:-

Saving account

Current account

Term or fixed deposits

Recurring deposits

4

PROFILE

Incorporated in 1938 as a limited company.

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 the Government of J&K.

Rated "P1+" by Standard and Poor- CRISIL connoting highest degree of safety.

Four decades of uninterrupted profitability and dividends.

HISTORY OF J&K BANK

Jammu & Kashmir bank was founded on October 1, 1938 and it commenced business from

July 4, 1939. The Jammu and Kashmir bank limited has been 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 and Mirpur fell to the other side of the line of

control ( now Pak occupied 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.

Today J&K bank is one of the fast growing banks in India with the network of more than

539 branches/ offices spread across the country offering world class banking products/

services to its customers. The bank recently bagged three very prestigious awards for

following fair business practices and commitment to social obligations.

MISSION OF THE BANK

Mission have been set to remain financially strong, sound, growth oriented and profitable

bank with main focus towards providing convenient, reliable, cost-effective and

personalized services to all its customers and to become globally competitive and foray into

new sectors compatible with the business of banking. The key objective of the bank shall be

to provide Value Maximization to all its shareholders that are customers and employees. The bank shall also further strive to strengthen its national presence and adopt

developmental role in the country with a particular emphasis on J&K Bank.

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VISION OF THE BANK

The vision of the bank is to be financially sound, profitable, growth and technology oriented

bank committed to buildings and maximizing sustainable value for all its shareholders,

customers and employees. In its endeavor to attain the goal visualized, the bank is laying

maximum emphasis on the effective system of corporate governance, with the view to

improve companys image, efficiency, effectiveness, and satisfying the public expectations of fairness and ethical conduct.

The new identity of J&K Bank is a visual representation of the banks philosophy and business strategy. The three colored squares represent the regions of Jammu, Kashmir &

Ladakh. The counter form is created by the interactions 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 the renewal,

Blue represents stability and unity and Red represents energy and power. All these attributes

are integrated and assimilated in the white counter form.

UNIQUE CHACTERISTICS OF THE BANK

Private sector Bank despite government holding 53 per cent of equity. Sole banker and lender of last resort to the Government of J&K.

Plan and non -plan funds, taxes and non-tax revenues routed through the bank.

Salaries of Government officials disbursed by the Bank.

Only private sector bank designated as agent of RBI for banking.

Carries out banking business of the Central Government.

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HIGHLIGHTS

The fastest growing bank with 439 branches across the country.

Over 98% of the business computerized

Internet banking, SMS and mobile banking provided.

Anywhere banking, telebanking and swift banking provided.

ATMs connected globally to all master networked ATMs.

Mobile ATM services available first of its kind in northern India

JK Bank global access debit card cirrus and maestro enabled.

Own credit card

CUSTOMER SERVICES

The Bank continued its emphasis on maintaining high standards of services to its customer. In

this direction the Bank introduced various hi-tech and customer friendly products during the

year, providing value added service to achieve customer satisfaction. Customer complaints

received are dealt promptly and expeditiously. The Bank is a member of the Banking codes and

Standards board of India and has adopted Code of Banks commitment to customer, a

voluntary code of providing protection and Right to know to the customer. The Bank has

established a 24 x 7 help desk address customer queries and the desk is slated to be converted

into a full-fledged call center in 2007-08. The Bank is keenly pursuing for ISO 9000 certification

for its customer service.

RESEARCH OBJECTIVES

To study the availability and visibility of financial services products of J&K bank.

To study the awareness of the F.S.Ps of the J&K bank.

To study the consumers behavior regarding to the F.S.Ps offered by J&K bank.

To find out the role played by J&K bank in marketing their F.S.Ps.

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Role played during summer internship at J&K bank

During my summer training at J&K bank ltd. Financial services division zonal office Jammu

(central), besides undergoing my project availability and visibility of F.S.P. of J&K bank ltd.I

had an opportunity to be a part of the then ongoing credit cards debit cards, P.O.S. machines, e-

banking and mutual funds.

During the then ongoing merchant acquisition drive assigned the task to bring P.O.S.machine

credit cards, debit cards, business by visiting targeted merchants establishments and convince

them to install P.O.S. machine at their establishments. Though it was a very tough job but still I

was able to meet a few and finally 4 of them got convinced to install the P.O.S. and also helped

the bank in selling credit cards and debit cards by awaring people during the marketing.

The schedule of my six week training was that:

During the first week I had to gather the knowledge of P.O.S.machine, credit cards, debit cards

and e-banking

In the second and the third week I was directly involved in the sales team of the bank and used to

make people aware about the F.S.P.s in the various branches of the bank like LAKHDATA

BAZAAR, SHALAMAR, PATEL NAGAR, SMGS, UPPER GUMAT, RESIDENCY.

In the fourth week I was assigned the task of the sale of P.O.S.machines, credit cards debit cards

to the different customers and seek the apprehensions incurred by the merchants and help them

in the best possible way.

During the end of my summer internship I had conducted a survey about the factors that are

more critical in J&K banks success and preference in J&KState and assess its availability.

This whole experience and real market exposure help me to mould myself to get acquaint to the

market conditions and made me strong to face and overcome market challenges and enhance my

skills. I strongly feel that this would certainly help me in my upcoming future.

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INTRODUCTION TO

FINANCIAL SERVICES DEPARTMENT

OF THE J&K BANK

FINANCIAL SERVICES DEPARTMENT OF THE J&K BANK

The Financial Services Department of Zonal Office Jammu has the responsibility of coordinating

between the branches customers head office (CHQ, SRINAGAR).The department deals with

all third party products and markets them through its respective branches.

The Department deals with:

1. Insurance:

(J&K bank ties up with METLIFE for life insurance & BAJAJ Allianz for non-life insurance.)

2. Debit cards

3. Credit cards

4. POS machine

5. Mutual Funds

6. E-banking

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INTRODUCTION TO

CREDIT CARD

CREDIT CARD

A credit card is part of a system of payments named after the small plastic card issued to the

users of the system. It is a card entitling its holder to buy goods and services based on the holders

promise to pay of these goods and services. The issuer of the card grants a line of credit to the

consumer (or the user) from which the user can borrow money for payment to a merchant or as a

cash advance to the user.

A credit card is different from a charge card requires the balance to be paid in full each month. In

contrast, credit cards allow the consumers to revolve their balance, at the cost of having interest

charged. Most credit cards are issued by local banks or credit unions, and are the shape and size

specified by the ISO/IEC 7810 standard as ID-1.

Features of credit cards:

It is a piece of plastic about 3.5x2 inches in size. Some of the features of credit cards are as below:

LOGOS:

The card carries logos of the card association (Visa, MasterCard) as well as that of the issuing bank

(J&K, ICICI, HDFC and so on ) in the front of the card.

NUMBER:

The card number is embossed in the front. This is usually a 16-digit number. The first number

symbolizes the major industry. Banking industry cards usually start with 4,5 or 6. The first six digits

identify the issuing organization. The next nine digits denote the individuals account number. The last

digit is a check digit.

NAME:

Also embossed on the front of the card in the name of the cardholder.

EXPIRY DATE:

The date till which the card is valid is embossed on the front of the card.

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MAGNETIC STRIPE:

There is a magnetic stripe (called magstripe) running through the length on the card on the reverse. This

contains the identification information of the card which is transmitted during a transaction.

CVV NUMBER:

This is a three digit number that appears on the reverse of the card after the 16-digit card number.

CONTACT NUMBER:

On the reverse of the card the issuing banks contact numbers are printed. The cardholder can call these

numbers for any card related queries.

SIGNATURE:

There is a space below the magnetic stripe where the cardholder is mandatory to sign.

Secure code:

A Master card secure code is also provided to the customers of the bank. It is a very important

because it protects their customers at that time when they are doing online shopping. As we

know that credit card can also be mis-utilized by anyone so in order to prevent their customers,

they have to fill their secure code in the Gate Way of the J&K Bank during online shopping.

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Using J&K Bank Credit Card is extremely simple. After making transaction or availing of the service

provided by the Merchant Establishment, present J&K Bank Credit Card.

Upon processing J&K Bank Card transaction, the Merchant will request to customer to sign a charge

slip (refer to the image alongside). This contains details about the amount to be billed to J&K Bank

Credit Card. If Customer wish to leave a tip or miscellaneous charge, they can do so by filling in the

same on the charge slip. After filling in this section, in the interest of their own safety, J&KBank

recommend that customer write out the total amount in the charge slip before signing.

Please ensure that customer sign on the charge slip in the same way they have signed on the reverse of

the Card.

The Merchant Establishment will return the copy of the bill(s) and the charge slip along with customer

Card. Customer has to match the amounts before leaving the establishment.

It is recommended to retain customer copy of the charge slip and the corresponding bill till such time

as the amount is reflected in their Card billing statement.

Customer Monthly Credit Card Statement is a statement of accounts with a summary of transactions

made through their J&K Bank Credit Card for the previous month, giving the details of the

transactions made through J&KBank Card, during the period.

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13

One Time Password (OTP) for IVR transactions:

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. It 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.

Effectively 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.

SALIENT FEATURES:

20-50 days credit free period.

Revolving credit facility on paying of minimum payment due in the billing period.

Hassel free credit facility at competitive rate of interest.

Cash withdrawal facility upto 20% of the total credit limit.

Loyalty programmes.

MasterCard secure code enabled credit cards. J&K bank lets you shop securely on-line with J&K bank

MasterCard credit card. This service through a simple checkout process, confirms your identity when

you make purchases on the internet.

24x7 customer assistance at J&K bank helpdesk.

TYPES OF CARDS

BLUE EMPOWERMENT CARD

SILVER EMPOWERMENT CARD

GOLD EMPOWERMENT CARD

ELIGIBILITY:

ANNUAL INCOME:

For salaried - Above RS.80,000.00

For self-employed - Above RS. 1,50,000.00

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CREDIT LIMIT

BLUE EMPOWERMENT CARD 25000.00

SILVER EMPOWERMENT CARD 50000.00

GOLD EMPOWERMENT CARD 100000.00

RATE OF INTEREST: 2.25% per month.

ADVANTAGES:

They allow Customer to make purchases on credit without carrying around a lot of cash. This

allows them a lot of flexibility.

They allow convenient remote purchasing-ordering/shopping online or by phone.

They allow accurate record keeping by consolidating purchasing into a single statement.

Under some circumstances, they allow holders to withhold payment for merchandise which

proves defective.

They are cheaper for short term borrowing interest is only paid on the remaining debt, not the

full loan amount.

Many cards offer additional benefits such as additional insurance cover on purchases, cash back,

air miles and discount on holidays.

DISADVANTAGES:

Customer may become an impulsive buyer and tend to overspend because of the ease of using

credit card. Cards can encourage the purchasing of goods and services they cannot really afford.

Credit cards are a relatively expensive way of obtaining credit if customer dont use them

carefully, especially because of the high interest rates and other costs.

Lost or stolen card may result in some unwanted expenses and inconvenience.

The use of a large number of credit cards can get holders even further into debt.

Using a credit card, especially remotely, introduces an element of risk as the card details may

falls into the wrong hands resulting in fraudulent purchases on the card. Fraudulent or unauthorized

charges may take months to dispute, investigate and resolve.

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INTRODUCTION TO

DEBIT CARD/ATM CARD

DEBIT CARD

A debit card (also known as a bank card or check card) is a plastic card that provides the

cardholder electronic access to his or her bank account/s at a financial institution. Some cards

have a stored value with which a payment is made, while most relay a message to the

cardholder's bank to withdraw funds from a designated account in favour of the payee's

designated bank account. The card can be used as an alternative payment method to cash when

making purchases. In some cases, the cards are designed exclusively for use on the Internet, and

so there is no physical card.

In many countries the use of debit cards has become so widespread that their volume of use has

overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit

cards, debit cards are used widely for telephone and Internet purchases.

However, unlike credit cards, the funds paid using a debit card are transferred immediately from

the bearer's bank account, instead of having the bearer pay back the money at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for

withdrawing cash and as a check guarantee card. Merchants may also offer cash back facilities to

customers, where a customer can withdraw cash along with their purchase.

FEATURES OF DEBIT CARD:

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.

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DETAILS OF CARDS OFFERED BY J&K BANK

Salient Features

Pin Based- Maestro/Cirrus Debit Cards

Provides online access to savings or current account

Accepted at all Domestic as Well as International MasterCard TM, Maestro TM, Cirrus TM, Enabled ATMs and Point Of Sale locations

Accepted at National Financial Switch (NFS) ATMs

No Transaction Fee at JK Bank ATMs

No Transaction Fee on Purchases

Empowerment Credit Cards

Customer Benefits

20-25 day credit Free Period

Revoloving Credit Facility on paying of minimum payment due in the same billing periods

Hassle free credit facility at competitive rate of interest

Cash withdrawal facility upto 20% of total credit limit

Loyalty programme

MasterCard SecureCodeTM enabled Credit Cards J&K Bank MasterCard Credit Card. This service through a simple checkout process confirms your identity when

we make purchase on internet.

24 Hours Customer Assistance at JK Bank HelpDesk

Types of Cards

Blue Empowerment Card

Silver Empowerment Card

Gold Empowerment Card

Acceptability

All Merchant Establishments like shops who

honor MasterCard Credit Cards. All ATM's which accept MasterCard

Credit Cards.

Eligibility

Annual Income

For Salaried -Above 80,000.00

For Self Employed -Above 1,50,000.00

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Documentation

Income Proof

Address Proof

Identity Proof

Credit Limits

Blue Empowerment Card- Upto 25,000.00

Silver Empowerment Card-Upto 50,000.00

Gold Empowerment Card-Upto

1,00,000.00

Rate of Interest 2.25% per month

Annual Fee 300

Renewal Fee 250

Add-on Card Fee 150

Late Fee 100

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.

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INTRODUCTION

TO

POINT OF SALES/SERVICE MACHINE

POINT OF SALE/SERVICE MACHINE

A point of sale/ service (pos) machine is used to conduct retail transactions. It can provide many

services, including credit card processing, check reading and cash transactions, depending on the

model. These devices can be found virtually anywhere, from grocery stores to gas stations. The

technology used in pos machines results in a speedy and secure transaction.

Point of sale/service (pos) machine or checkout is the location where a transaction occurs. A

checkout refers to a pos terminal or more generally to the hardware and software used for

checkouts, the equivalent of an electronic cash register.

A pos terminal manages the selling process by a sales person accessible interface. The same

system allows the creation and printing of the voucher.

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Operating Systems:

Microsoft offers POS platforms that are embedded with various versions of Microsoft Windows

operating systems. The use of Windows-based graphical user interfaces increases the

accessibility of the POS for all users, due to the familiarity of the platform. In addition, Windows

POS technology can seamlessly integrate into an existing network that is already Windows-

based. POS platforms available for Macintosh computers include Light Speed and Checkout.

Features:

POS machines offer the ability to automate many tasks that have historically required human

oversight. These machines can scan credit cards, authorize the charge, and even accept a digital

signature. POS machines can even synchronize with the local area network of the business, and

automatically update balances and inventory with each completed transaction.

Peripherals:

There are many peripheral devices that are needed to ensure that the POS machine can work with

the utmost efficiency. Price scanners connect to the POS machine, sometimes wirelessly, and are

used to read the barcode on an item. Keypads and touch-screen displays also connect to the POS

machine, allowing users to enter their personal identification numbers and signatures to access

funds.

Function:

The POS machine is used to improve the efficiency of retail transactions. A POS machine can be

automated, as in a self-service checkout lane in the grocery store, or it can merely augment the

actions of a checkout worker. The POS machine uses a price scanner to check the price of an

item, and a credit card reader, a check scanner, or a cash drawer to accept funds in an exchange.

HIGHLIGHTS:

All types of Visa & MasterCard based cards are accepted.

Can Extend American Express Card Acceptance.

Quick Merchant Payment.

Merchant Helpdesk and Onsite Support.

Competitive Commission Rates.

No hidden Charges.

POS machine costing to bank is Rs. 9,000

Cash back facility.

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Charges:

One time installation charges is Rs. 500

Commission on per card type transaction basis.

Various type of Commission is charged on the bases of card. If a card swiped in POS machine

is of J&K Bank then rate of commission charged from merchant is 1.3 % of the total transaction

done during the month and if the card swiped in POS machine is other than J&K Bank then the

rate of commission charged by bank is 1.5% of the total transaction.

Bank also has provided with the cash back facility to the merchants. In case of on-us cards if the

total sales is more than Rs.1, 00,000 then the bank will redeem 0.2% to their merchants so the

merchant have to pay 1.1% instead of 1.3% and in case of off us cards if the total sales is more than Rs. 2, 00,000 then the merchant have to pay 1.3% instead of 1.5% of the total sales.

Requirements for installing POS machine:

Copy of Registration Certificate under Shops and establishments Act. OR

Copy of CST/SST registration certificates.

Copy of Partnership Deed, Memorandum of Association, Articles of Association, Power of Attorney (in case of partnership firms or companies).

Copy of Rent receipt or telephone bill or electricity bill.

Copy of Company Financials or Income Tax Return.

Proof of signature of the authorized signatory.

Passport / Voter ID Card/Driving License / PAN Card of the sole proprietor or anyone of the partners / directors.

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PoS Machine Installation Merchant Relationship Form

The Jammu & Kashmir Bank Ltd.

Corporate Headquarters,

M.A. Road, Srinagar 190 001

Important Instructions

Please fill all the information in block letters.

Please keep the following documents along with the application form

Copy of Registration Certificate under Shops and establishments Act. OR

Copy of CST/SST registration certificates.

Copy of Partnership Deed, Memorandum of Association, Articles of Association, Power

of Attorney (in case of partnership firms or companies).

Copy of Rent receipt or telephone bill or electricity bill.

Copy of Company Financials or Income Tax Return.

Proof of signature of the authorized signatory.

Passport / Voter ID Card/Driving License / PAN Card of the sole proprietor or anyone of

the partners / directors.

For filling in information regarding the nature

Of business please refer to the following list:

Arts/Handicrafts/Sculptures Furniture stores

Automobile Service Center/Garages Handicrafts

Automobile Spares Hard ware store

Automobiles Home Appliances/Consumer

Durables

Automotive Tyre Stores Hotels

Bakeries Jewellery/Marbles/Watches

Barber & Beauty Shop Leather Goods

Book store Novelty/Gift Shop

Candy/Nut/Confectionary Stores/Dry Fruits opticians

College/University Photo Developing/Labs

Computers/Comp. Peripherals Readymade Garments

Cosmetics/Beauty/Health Clubs, Restaurant

Crystal/Glassware /Kitchenware Sanitary Utilities

Dental/Medical Lab Shoe Stores

Departmental Stores Stationery

Drug Stores/Pharmacy Tailors

Electric Utilities Telecommunication Equipments

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Electronics Textile

Fuel Dealers/Coal/Petrol Tours & Travel Operators

Others (specify)

The Jammu & Kashmir Bank Ltd.

Corporate Headquarters, Branch

M.A. Road, Srinagar 190 001

PoS Machine Installation

Merchant Relationship Form

1. Legal Name of Business Concern (as appearing in registration certificate, partnership deed or certificate of incorporation)

2. Marketing Name (as used in the name of the shop etc.)

3. Type of Business (Please refer list)

4. Nature of Ownership (Tick as applicable)

Sole Proprietorship Partnership Firm Limited Company Govt. Owned Trust

Franchisee HUF Others (Specify)

Address of Business Establishment

Building Name

Road Name/No.

Land Mark

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City Pin code

State Phone (With STD code)

Mobile E - mail

6. PAN Number TIN Number

7. Shop Ownership Details (Tick as applicable) Owned Leased

8. Name of Proprietor/Partners/Managing Director/Directors/Karta (IN BLOCK LETTERS)

(1)

(2)

(3)

(4)

(5)

9. Address of Proprietor/Managing Director/Karta/Any one of the Partners (IN BLOCK

LETTERS)

Residential Address

Building Name

Road Name

Land Mark

City Pin code

State Phone (With STD code)

Mobile E mail

10. Name of Principal Contact

First Middle Last

11. Existing J&K Bank Relationship

Existing Account Number

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Type of Account Relationship since years months

12. Relationship with other banks (if any)

Name of the Bank

Address of the Bank

Account Number Relationship since years months

13. Existing PoS Machine Details (if applicable)

Date of Commencement of Business Operation in the same premises since

Credit Cards already accepted (Tick as applicable): Visa MasterCard American Express

If others please specify

Annual Business Turnover (in figures) (in words)

Annual Turnover on (in figures) (in words)

Visa/MasterCard (s)

Estimated average per (in figures) (in words)

Transaction value

Merchant Application, Debit Authorization and Declaration

Merchant Application

I/We wish to enroll under J&K Bank Ltd's Merchant program and hereby agree to be bound by the terms and conditions of the Merchant Establishment Agreement appended

to this Merchant Relationship Application Form. I/We confirm that all information

provided to J&K Bank in this form is correct and accurate. I/We certify that the person

signing this application and ME agreement has full authority to do so and thereby binds

us to the Merchant Establishment Agreement. J&K Bank and/or their representatives may

contact our bankers or any other source to obtain information with regard to the

information provided in this form.

Debit Authorization

I/We authorise you to credit/debit our Current/Cash Credit/Merchant Account with J&K Bank Ltd. For all transaction, fees and charges as per the Merchant Agreement with J&K

Bank Ltd.

Our existing Account Number is

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I/we do hereby authorise the bank to debit without any prior notice our current/cash credit account and raise overdraft thereto for settlement of POS (point of sale) installation

charges / charge back accounts / excess payments made, if any, at any time, by the bank

and / or any other amount(s) becoming incidental thereto during the course of card

acquiring business through the POS terminal (s) of J&K Bank Ltd. By virtue of this

authority I/We on behalf of said establishment owe no authority to challenge the bank's

absolute discretion to this regard in any court/forum etc.

Declaration

I/We agree to abide by the below mentioned terms and conditions in addition to already signed

agreement for installation of EDC Machine. For all transactions above Rs. 7500. I/We will

follow the following additional validation.

The cashier would request the customer to produce a photo identification document.

The cashier would tally the Name on the Photo ID document with that on the card and verify resemblance with the photo ID document.

The cashier would note down the ID details in the reverse of the Merchant copy of the charge slip or on the invoice or in our internal systems.

These details will be stored, for the period charge-slips are required to be stored.

This procedure would be followed for all VISA, MasterCard and American Express cards, irrespective of Credit, Debit or Prepaid and for both domestic and international

cards.

Authorised Signatory / Stamp

Signatory name Designation

Signature of Authorised Signatory as appearing herein above is hereby attested

Signature of Branch Head Name & Code

For Office use only

(To be filled in by Branch)

1. Legal Name of Business Concern (as appearing in registration certificate, partnership deed or

certificate of incorporation

2. Marketing Name (as used in the name of the shop etc.)

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3. Type of Business (Please refer list)

11. Name of Principal Contact

First Middle Last

12. Name of Proprietor/Partners/Managing Director/Directors/Karta (IN BLOCK LETTERS)

Residential Address

Building Name

Road Name

Land Mark

City Pin code

State Phone (With STD code)

Mobile E mail

14. Existing J&K Bank Relationship

Nature of Account Existing Account Number

Recommendations

Documents obtained (Tick as Applicable)

1. Copy of Registration Certificate under Shops and establishments Act. OR

2. Copy of CST/SST registration certificates.

3. Copy of Partnership Deed, Memorandum of Association, Articles of Association, Power of Attorney

4. Copy of Rent receipt/telephone bill/electricity bill.

5. Copy of Company Financials or ITR.

It is hereby certified that

The agreement has been executed with notary attestation on Non-judicial stamp paper of Rs. 20 or as applicable as per local law.

Authorised signatory proof is enclosed.

The Merchant is maintaining account with us for more than last six months and account is running satisfactory or the merchant is/was maintaining account with other bank for

27

more than last six months and account is running satisfactory, statement for more than

last six months has been obtained and kept on record along with account opening form.

The application has been duly filled in.

All the documents as per KYC Norms have been obtained and kept on record with account opening form.

I undertake to raise overdraft in the account of M/E upon the instructions of Card Issuance &

Acquiring Department, if balance is not sufficient in the Account of ME for fulfilling the charge

back/s or any other charges etc.

Signature of Branch Head Name & Code

28

INTRODUCTION

TO

E-BANKING

E-BANKING

Internet Banking Features

Available for both Retail and Corporate users.

SMS Banking

Statement of Accounts.

Funds Transfer.

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 account holders through RBI NEFT/RTGS.

Transfer of non-standard bills.

Utility bill payments.

Ecommerce facility for JK Bank E-banking customers:

J & K Bank Secure Payment Gateway, to provide ecommerce facility to the e-banking customers.

Tie up with M/S Avenues India Pvt. Ltd. (ccevenue) and M/S BillDesk, for extending ecommerce 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.

29

E-Banking users intending to purchase goods online through the Ccavenue shopping site shall be required to:

o Logon to the Master Merchants (M/S Avenues India Pvt. Ltd.) website

http://world.ccavenue.com/content/clients.jsp.,

o Select the item to be purchased

o Select e-banking as the mode of payment.

o Select the J & K Bank and the system will take the user to the J & K Banks e-banking site prompting him to enter his e-banking user-id and password.

o After entering the Banks e-banking site the customer will be able to pay the amount of bill by debit to its own account.

M/S BillDesk - 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 BillDesk

customers can now make All Payments at a Single Location.

E-Payment of Tax for

JK Bank E-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 dematerialized 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 till

recently.

E-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the

taxpayer 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.

30

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 325 ATMs deployed across the country.

Accepting Maestro / Cirrus / MasterCard / VISA / NFS ATM / debit / credit cards.

31

INTRODUCTION

TO

MUTUAL FUNDS

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.

32

QUESTIONNAIRE

Name: ____________________________________

Address: - ___________________________________

1. Do you know, what are the Financial Services Products in a bank?

a) Yes b) No

c) Some specify

2. Do you know about credit card, if no then what is the reason?

a) Less marketing b) Lack in personal interaction

c) Not interested d) other specify.

3. If yes, then from where you got the information?

a) Bank b) Internet

c) Relative d) Other

4. How long you are using the credit card?

a) 0-6 months b) 6-12 months

c) 1-3 years d) More than 3 yrs

5. Which banks credit card do you prefer?

a) J&k b) Axis

c) Icici d) Other

6. Do you use credit cards for online shopping?

a) Frequently b) Occasionally

c) Rarely d) No

7. Do you know about one time password?

a) Yes b) No

33

8.Do you know about secure code?

a) Yes b) No

9.Do you know about debit card?

a) Yes b) No

10. If no, then what is the reason?

a) Less marketing b) Lack in personal interaction

c) Not interested d) other specify.

11. Do you have any debit card?

a) Yes b) No

12. If no, would you like to buy it?

a) Yes b) No

13. If no, then what is the reason?

a) Prices b) Usability

c) Awareness d) Other

14. Do you know about Point Of Sale machine?

a) Yes b) No

15. Do you have P.O.S.?

a) Yes b) No

16. If no, then what is the reason?

a) Awareness b) Prices

c) Availability d) other specify

17. Which banks P.O.S. do you have?

a) AXIS b) J&K

c) ICICI d) HDFC

18. Are you satisfied with the after sale services?

a) Yes b) No

34

19. Are you satisfied with the charges?

a) Yes b) No

20. Do you get bill statement on time?

a) Yes b) No

21. Marketing practices by the J&K Bank is.?

a) Excellent b) Satisfactory

c) Poor

22. Give suggestions/complaints that how can we serve you better

.

.

35

OBJECTIVES OF THE STUDY

The primary objective of our study is to analyze Availability and Visibility of the Financial

Service Products (FSPs) of the J&K Bank in attaining that whether peoples are aware about

J&K Bank products or not.

The main objectives are:

Availability and Visibility of the Financial Service Products (FSPs) of the J&K Bank

To find out the factors which are responsible for unawareness or rejections about J&K

Products

To check the satisfaction level of the preferred and classic customers regarding

Financial Product Services (FSPs)

To analyze customers expectations from Bank.

RESEARCH METHODOLGY:

Primary Objective:

To finding out the Availability and Visibility of the Financial Product Services (FSPs) of J&K

Bank. This was done by interacting with people through the medium of Questionnaires and

Direct interviews being taken in some cases. The satisfaction greatly depends on the quality of

service, the interests being provided on various banking facilities and the payback period for

taking any sort of loan. One of the important factors affecting customer expectations is the

presence of on-line banking facility being incorporated by the bank in its very basic functioning

infrastructure.

The project helped in developing an insight about the Actual level of satisfaction and the

Expected level of satisfaction. The various grievances that came forwarded during the survey and

the various things which the customers wanted the bank to incorporate in its structure is attached

in the report afterwards in the form of Recommendations. Through the project, the competitive

strategies being followed by other banks were also analyzed.

36

Sampling Technique:

The problem definition can be said to be the quite essential part of the research process; as it

determines precisely, what the managerial problem is and the type of information that the

research can generate to help the problem before conducting the field work. It is better to decide

upon the method/technique of data collection. Generally, there are two techniques of data

collection:

1. Census technique

2. Sample technique or convenient sampling

A census is a complete enumeration of each and every unit of population where as in a sample

only a part of the universe is studied and conclusion about the entire universe is drawn about that

basis. The census method is costlier and more time consuming as com-pared to sampling method

but the result are near representatives than sample method.

The availability of resources, time factor degree of accuracy desire and scope of the problem

enable us to apply sample technique.

DATA COLLECTION

The objectives of the project are such that both the primary and secondary data is required to

achieve them. So both primary and secondary data was used for the project. The mode of

collecting primary data is questionnaire mode and sources of secondary data are various

magazines, books, newspapers & websites etc.

1. Primary Data:

The primary data was collected to measure the customer satisfaction regarding J&K bank. The

primary data was collected by means of direct personal interview method through structured

37

questionnaire and analysis was done on the basis of response received from the customers. The

questionnaire has been designed in such a manner that the customers satisfaction level can be

measured and consumer can enter his response easily

2. Secondary Data:

The purpose of collecting secondary data was to achieve the objective of studying the recent

trends and development taking place in financial Service Departments.

Sampling Design:

It is very difficult to collect information from every member of a population. As time and costs

are the major limitations that the researcher faces.

Definition of Population:

Our population consisted of the preferred and classic customers of the J&K Bank. The reason for

choosing the classic and preferred customers as our population was that the FSPs services are

not only meant for such classes only and hence the normal customers were also considered.

Sampling Method:

Our sample consisted of 100 personal interviews. We structured our personal interviews on the

basis of a sample random sample.

Sample size:

Because of the various constraints imposed on our project work, especially time and cost, our

sample size was limited to 100. This also enabled us to obtain an equal number of respondents in

each stratum

Sampling plan:

The research was conducted mainly at the branch and further we met certain customers

personally at their offices after getting the proper references.

38

Questionnaire design:

We designed our questionnaire based on the information acquired from our background research.

We also used our own personal judgment when determining which type of questions might be

the most applicable to the information we were trying to obtain. The questionnaire consisted of

21 questions with options against each and one open ended question; at the end, for suggestion.

In designing the format of our questionnaires, we used the standard procedure to formulate a

questionnaire.

Collection procedure: Personal interviews were conducted using individual questionnaire for each

respondent. The responses were recorded directly onto each questionnaire.

Tools of analysis:

After collecting the data has been analyzed through various statistical tools and techniques. The

unwisely data should necessarily be condensed into few manageable groups and tables for

further analysis. Thus it helps to classify the raw data into some purposeful and usable

categories. The tools used are tables and pie charts.

Limitations of the Study

It is said, Nothing is perfect and there would be few shortcomings in this project also.

Sincere efforts have been made to eliminate discrepancies as far as possible but few would

have remained due to limitations of the study.

Time seemed to be our most limited resource. To conduct a comprehensive research project in

a two month period is difficult.

The absence of appropriate funding limited the extent of our study. With addition-al financial

resources, the scope of our study could have been enlarged, resulting in a more representative

study.

39

Interviewer bias could not be avoided as in case of many surveys open ended questions

involve the use of probing techniques that increase interviewer bias. However, as our study

did not use many open ended questions, the extent of the bias was reduced.

Some of the respondents gave ambiguous replies for certain questions or omit-ed the

responses to some of them. The interpretation of such responses become-s difficult and could

generate wrong result

40

FiNDINGS AND ANALYSIS

1. Do you know, what are the Financial Services Products in a bank?

Analysis:- Above diagram shows the position of the J&K bank in the market where 66%

people out of 100peoples may know about the financial service products of J&K Bank

whereas, 20% peoples and 14% peoples doesnt know or doesnt have an exactly about FSPs

of J&K Bank.

Yes 66%

No 20%

Other 14%

41

2. Do you know about credit card, if no then what is the reason?

Analysis:- Above diagram shows the reason of not having or preferring the J&K Bank

Financial services products(FSPs) which shows the bank failure in exposing or creating

awareness about their products.26 out of every 100 peoples doesnt have J&K Bank Credit

Cards. Under a survey I find that mostly people doesnt have an interest in our products

whereas 23% and 15% peoples doesnt have our card because of our less marketing and lack in

personal interactions respectively. Rest 8% have many other factors..

Less Marketing

23%

Lack in Personal

Interaction 15%

Not Interested

54%

Other 8%

42

3. If yes, then from where you got the information?

Analysis:- This graph shows that from where the awareness about our products they got.

According to survey, Out of every 74 peoples, mostly peoples may get to know about our

products was through bank (38%) and Relatives/ Family (27%) and 24% people may

information from many other sources and only 11% of people may get aware through internet.

Bank 38%

Internet 11%

Relative 27%

Other 24%

43

4. How long you are using the credit card?

Analysis:- Above diagram shows about the holders of the credit card in which out of every 74

peoples mostly credit card holders was holder from0-6 months(30%) and 6-12 months(27%)

and 27% of peoples may holder from last 1-3 years and there was only 16% peoples have credit

cards 3 years older.

0-6 Months 30%

6-12 Months 27%

1-3 Years 27%

More Than 3 Years 16%

44

5. Which banks credit card do you prefer?

Analysis:- In comparing our products with other banks credit card then the best competitor of

J&K Bank(38%) is Axis bank with 27% on credit cards share. ICICI Bank is also having a good

reputation and provides best service in the market holding 22% market share in credit cards.

J&K Bank 38%

Axis Bank 27%

ICICI Bank 22%

Other 13%

45

6. Do you use credit cards for online shopping?

Analysis:- This diagram depicted that out of every 74 peoples who having an credit cards

mostly 38% holders use cards rarely for online shopping whereas 24% holders frequently use

their cards for online shopping and 19% holders each use their cards for occasionally and not

use respectively.

Frequently 24%

Occasionally 19% Rarely

38%

No 19%

46

7. Do you know about one time password?

Analysis:- Above diagram shows that 62% card holder out of 74 peoples may aware about the

One Time password Service and vice-versa. 38% holders doesnt know about One Time

Password.

Yes 62%

No 38%

47

8. Do you know about secure code?

Analysis:- From the above diagram, I may analyze that 65% of people out of every 74 peoples

know about the secure code service provided by the bank and 35% peoples doesnt know about

that.

Yes 65%

No 35%

48

9. Do you know about debit card?

Analysis:- After an survey, I questioned 100 peoples about the debit cards from those76%

peoples know about debit cards/ATM and 24% peoples dont aware about the bank Debit card

Service. JK Bank shows the good performance on debit card services.

Yes 76%

No 24%

49

10. If no, then what is the reason?

Analysis:- Out of 15 peoples of every 100 persons who doesnt know about debit card, they said

that they doesnt know about debit cards because of lack in less marketing techniques (50%) and

25% peoples says that they are not interested in J&K bank Debit card service. And only 8%

percent says that due to lack in personal interactions they are unaware about J&K Bank Debit

cards

Less Marketing

50%

Lack In Personal

Interaction 8%

Not Interested

25%

Other 17%

50

11. Do you have any debit card?

Analysis:- Above graph shows that, 60% peoples of out 100 peoples have debit cards whereas 40%

peoples doesnt have debit cards. If bank provide more better service than there may be rise in the

holders of debit cards.

Yes 60%

No 40%

51

12. If no, would you like to buy it?

Analysis:- Above graph shows that, 60% of peoples out 40 doesnt want to buy J&K bank Debit/

ATM Card whereas 40% peoples want to buy a debit card.

Yes 40%

No 60%

52

13. If no, then what is the reason?

Analysis:- Peoples doesnt want to buy Debit/ATM Card because they mostly doesnt know how to

operate that (33%) and 25% and 17% are lacking behind due to the pricing and awareness about

the debit card of the J&K Bank and there 25% other factors shows the various other factors which

restricted peoples buying J&K Bank Debit/ATM Card

Prices 25%

Usability 33%

Awareness 17%

Other 25%

53

14. Do you know about Point Of Sale machine?

Analysis:- This diagram shows that out of every 100 peoples, 60% of peoples of total are fully

aware about the products of PoS Machine and 40% peoples were not aware about exactly what PoS

Machine is.?

Yes 60%

No 40%

54

15. Do you have P.O.S.?

Analysis: - As getting Popularity in the Market, J&K Bank fail to earn a maximum or healthy share

of the market. Only 36% of every 100 peoples have installed in their Shops/Mall/Restaurants/Hotels.

Maximum of market share i.e. 64% peoples doesnt install our PoS Machine.

Yes 36%

No 64%

55

16. If no, then what is the reason?

Analysis:- After getting to know the approximate value of peoples who doesnt have installed the

J&K Bank PoS machine. Mostly peoples doesnt installed J&K Bank PoS Machine because it is

difficult for them to install that because heavy formalities needed for that and 22% peoples thinks

that charges are high or rate of interest are high and 19% peoples doesnt know exactly about the

PoS machine.

Awareness 19%

Prices 22%

Avalibility 34%

Other 25%

56

17. Which banks P.O.S. do you have?

Analysis:- The Best Competitor of the Bank is the Axis Bank who equally competition with J&K

Bank with equal share i.e. 39% each of PoS machine market.

HDFC and ICICI Bank equally having 11% of market share not having so much good service

Axis Bank 39%

J&K Bank 39%

ICICI Bank 11%

HDFC 11%

57

18. Are you satisfied with the after sale services?

Analysis:- Mostly(61%) holder of PoS Machine are satisfied with the after sale services provided

by the bank whereas 39% holders are not satisfied by the after sale services provided by the bank

Yes 61%

No 39%

Sales

58

19. Are you satisfied with the charges?

Analysis:- above diagram show that 56% of peoples are fully dis-agree with the charged imposed

by the bank on dealing with the PoS Machine whereas 44% says that they have no complaints

against bank regarding charges mentioned by them.

Yes 44%

No 56%

59

20. Do you get bill statement on time?

Analysis:- Regarding doing survey. I concluded that 56% of peoples are satisfied with billing

statements they got on time. Whereas 44% were not comfort with the billing statement they got.

Yes 56%

No 44%

60

21. Marketing practices by the J&K Bank is.?

Analysis:- Above pie-diagram shows about the marketing techniques applied by the bank are good

or not. According to this diagram, only 18% of 100 peoples think that J&K Bank Marketing

Strategies and services are excellent whereas 42% peoples think that the J&K bank marketing

strategies are good and satisfactory and 40% of peoples says that bank marketing strategies are

not good. And they have to improve their marketing strategies to manage or hold their existing

customers.

Excellent 18%

Satisfactory 42%

Poor 40%

61

SWOT ANALYSIS

Of

J&K BANK

SWOT ANALYSIS OF THE J&K BANK

A swot analysis of internal as well as external environment provides a clear picture of what strength

& weakness are possessed by the company, what are the various threats & what are the various

opportunities available to be grabbed.

STENGTHS AND WEAKNESSESS

S.No Features PERFORMANCE

Major strength Minor strength Major weakness Minor weakness

1. Companys goodwill

2. Customer satisfaction

3. Lower interest rates

4. Wide branch network

5. Infrastructure

6. Active service team

7. Marketing practices

8. Charges

9. Advertising

10. Local staff &culture

11. ATMS

62

Opportunities

Attracting dissatisfied customers of other banks.

Expanding reach to rural areas by offering door- to door service.

Providing information to customers about FSPs.

Providing better services to the valued customers.

Bringing awareness among the customers for the usage of the services being offered.

Threats

Competition from other banks.

Attractive discounts offered by the competitor banks.

Dissatisfied customers of the bank.

Better interest rates/commission rates available in the market offered by the other banks.

More customer satisfaction provided by the private banks.

63

RECOMMENDATIONS

The J&K bank should appoint direct selling agents which has almost become a necessity

in modernized banking culture to attract new consumers.

J&K bank should device some aggressive marketing strategies to expand its market, for

example making association with some great cause or endorsing some celebrity to

advertise its various financial services. It can be that Jk bank should use a local

personality to advertise its products that seems more appealing to the local people.

The financial services like credit cards should be advertise in the various branches of the

bank & the customers should be made aware of the services via sms and e-mail.

The process cycle should take less time to response in providing Financial Services to the

customers so as to increase the customer satisfaction.

The JK bank generally pays less heed in providing financial services products to the new

customers, where as the competitors like ICICI,AXIS & HDFC bank are .This is an

avenue which JK bank should walk.

The loyal merchants should be given some more discounts that they would not switch to

other vendors. It can be like that the merchants location a small card should be kept

depicted about the attractive schemes of the banks & the benefits of using FSPs.

64

BIBLOGRAPHY

http://jkbank.net/customerCards.php

http://jkbank.net/customerMutualFunds.php

http://jkbank.net/cardUsage.php