Perception of J&K Bank's Corporate Customers

PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 1
THE BUSINESS SCHOOL
COURSE: MBA (208)
SUBJECT: ADVANCED RESEARCH METHODOLOGY
TOPIC: “PERCEPTION OF CORPORATE CUSTOMERS
TOWARDS SERVICES OF J&K BANK”
SUBMITTED TO: SUBMITTED BY:
DR. VINAY CHAUHAN SHWETANSHU GUPTA (49)
SIDHARTH GUPTA (50)
SHIVANI GUPTA (46)
SUSHANT GUPTA (47)

DECLARATION
We undersigned hereby declare that this report entitled “ENTREPRENEURIAL
INTENTIONS ON THE BASIS OF DEMOGRAPHICS” conducted under the supervision of
The Business School), Jammu University. The empiricalDr.Vinay Chauhan, Faculty (
findings in this report are based on the data collected by us and we will claim no right to own or
change or transform or publish this data as it stands the personal property of the institute. The
work is humbly submitted to The Business School, Jammu University for purely academic
purpose.
SHWETANSHU GUPTA (49)
SIDHARTH GUPTA (50)
SHIVANI GUPTA (46)
SUSHANT GUPTA (47)

ACKNOWLEDGEMENT
Completing a task is never one man’s effort. It is often the result of invaluable contribution
of number of individuals.
Acknowledging anyone in mere words is very difficult job.
My first and foremost thanks and obeisance to the supreme divine who ameliorated us with
relentless grace bestowed upon us all the time.
We owe immense heartfelt gratitude to our Prof. Dr. Vinay Chauhan to whom we are deeply
indebted for his valuable guidance, help, patience and encouragement without which this work
would have never come to fruition.
We are equally thankful to our parents for their unequivocal support throughout, as always, for
which our mere expressions of thanks likewise doesn‟t suffice.
We would like to express our sincere thanks to our seniors and friends for their generous
cooperation and friendly support and especially to Ms Shipra Gupta, Ph.D. Scholar, Commerce
department, University of Jammu.
Further, we would like to thank each and every one who provided a sort of camaraderie and help
during our research work.

LIST OF CONTENTS
S.NO CONTENTS PAGE.NO
1 ABSTRACT 7
2 INTRODUCTION TO JK BANK 8
3 PERCEPTION AND CUSTOMER
SATISFACTION
24
4 REVIEW OF LITERATURE & RESEARCH
METHODOLOGY
30
5 DATA ANALYSIS & INTERPRETATION 40
6 SUGGESTIONS AND RECOMMENDATIONS 49
7 LIMITATIONS OF RESEARCH 50
8 FUTURE SCOPE 51
8 QUESTIONNAIRE 52
9 REFERENCES 56

LIST OF TABLES
SNO NAME OF TABLE PAGE
NO.
1 PROFILE OF RESPONDENTS 41
2 HYPOTHESES OF STUDY 42
3 CORRELATION COEFFICIENT RELATIONSHIP BETWEEN
RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS
PRODUCTS AND SERVICES OF J&K BANK
43
RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS
44
ASSURANCE AND PERCEPTION OF CUSTOMERS TOWARDS
45
COMPLIANCE AND PERCEPTION OF CUSTOMERS TOWARDS
46
7 OUTPUTS FROM T-TEST 47
8 OUTPUTS FROM T-TEST 48

LIST OF FIGURES
SNO NAME OF TABLE PAGE
NO.
1 ORGANIZATION OF STRUCTURE 23
2 RELATION BETWEEN SERVICE QUALITY AND PERCEPTION 27
3 HYPOTHESES RESEARCH MODEL 31

ABSTRACT
The banking sector in India has always been considered as a premiere service sector. It has
gone through various reforms in the last couple of decades. Constant efforts have been made
to better the services and their quality delivered to the customers. Customers also have left
the traditional ways of banking. The essence of banking has moved far above from just
keeping safe the money. The heightened competition and versatility in the services provided
by banks has made both the corporate and the retail clients to become more choice-based
and product-oriented towards the banks. It has led customers to turn less ‗loyal„towards a
particular bank. This paper tries to analyze customer satisfaction in the Indian banking sector
towards the various services offered to them. A case study of Jammu & Kashmir Bank (J&K
Bank) was undertaken to analyze various dimensions of services and its impact on the
customer satisfaction. A questionnaire was devised to get responses from customers of the
bank for their loyalty about the services of the bank and the chances of their defection.
KEYWORDS:
CUSTOMER SATISFACTION, PERCEPTION, J&K BANK, SERVICES,

Chapter I
Introduction to J and K bank

BREIF HISTORY OF J&K BANK
The Jammu and Kashmir Bank was founded on October 1, 1938 under letters patent issued by
the Maharaja of Jammu and 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. In 1971, the Bank acquired the status of a scheduled bank and was declared as an
A-Class bank by the Reserve Bank of India in 1976.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 Pakistan-
administered 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. Mushtaq Ahmed is the new Chairman and CEO of
Jammu & Kashmir Bank. However the State Govt. came to its rescue with the assistance of
Rs6.00 Lacks to meet the claims thereafter, the bank overcame its difficulties and kept growing.
Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined
as a govt. company as per the provisions of Indian Companies Act 1956. The bank had its first
full time chairman in 1971, following social Central measures in banks .The year 1971 was a
turning point for the bank on conferment of scheduled bank status and witnessed remarkable
progress in all the vital fields of operations. The bank was declared as "A" Class Bank by
Reserve Bank of India in 1976. In recognition of dominant role and exalted performance,
Reserve bank of India appointed the bank as its agent for performing the general banking
business of the Central Govt. especially in maintaining currency chests and collection of taxes.

UNIQUE CHARACTERISTICS & SERVICES
J&K Bank carries out banking business of the Central Government. Inspite 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.
Unique features that differentiate J&K Bank depository from other broking firms are as follows:-
3-in-1 Account which integrates
J&K Bank demat account
J&K Bank savings account
Online investment account (Trading Account)
 Convenience
The 3-in-1 account integrates banking, broking and demat accounts. When customers place buy
or sell order with J&K Bank depository, the system checks the funds and shares available in
their bank and demat account respectively and executes the trade on the exchange online. The
bank account and the demat account is automatically debited or credited. This enables
DEMAT
ACCOUNT
BANK
ACCOUNT
TRADING
ACCOUNT

customers to trade in shares without going through the hassles of tracking settlement cycles,
writing cheques and Transfer Instructions, chasing his/her broker for cheques or Transfer
Instructions etc.
 Speed
Customers can get the latest quotes of scripts and this enables them to place an order
immediately.
 Control
Customer gets an order confirmation instantly. This ensures that one has indeed placed an order
at the price one wanted to. Thus, one has complete control over his order.
VISION OF THE BANK
The Bank's vision is “To catalyze economic transformation and capitalize on growth”. 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 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, professional integrity and regulatory compliance.
MISSION OF THE BANK
The company‟s mission is two-fold: To provide the people of J&K international quality financial
services and solutions and to be a super-specialist bank in the rest of the country. The two
together will make it the most profitable bank in the country.
PHILOSOPHY:
The Bank‟s Corporate Governance philosophy is woven around its total commitment to the
ethical practices in the conduct of its business, while striving in the constant quest to grow with
profits and enhance shareholders value and align the interests of the Stakeholders and Society
through adoption of best international practices and standards. The Corporate Governance
policies of your Bank recognize the accountability of the Board vis-à-vis its various constituents

including customers, shareholders, investors, employees, Government and regulatory authorities
and societal responsibilities as a corporate citizen.
J&K Bank is committed to the best and transparent corporate governance practices. It believes
that proper corporate governance practices leads to effective management and control of
business, which in turn provides best value to all its stakeholders through highly motivated
personnel, visionary leadership, respect for people and society, innovation and sound fiscal
discipline.
Your Directors have immense pleasure in presenting the 67th Annual Report on the business and
operations of your Bank together with the audited accounts for the year ended March 31.2011,
RECOGNITION AND AWARDS
The Bank won the prestigious Asian Banking Award – 2005 for its „Development Project
Financing Programme, contributing significantly to the development of tourism industry of the
J&K State. The award was presented by the Under Secretary Finance, Philippines, at a glittering
Gala Dinner award function held at Manila, Philippines on June 17, 2005. The annual Asian
banking awards recognize and honor Asian banks for outstanding, innovative and world-class
products and programs implemented during the previous year. It is the most respected and
premier banking awards program in Asia Pacific region. It is worth mentioning that the Bank has
won the Asian Banking Award consecutively for the two years. Before this, the Bank had won
the award for Customer Convenience Programmes and was also given runners up certificate for
its project „Motivating Employees for Better Performance' under „Operational Efficiency
Programme' category. The Bank was ranked fifth among the top ten Asian banks and 762nd
among top 1000 World banks. A renowned business journal "Business Today” ranked JK Bank
among 25 top investor friendly companies in India, the only bank in the whole Indian Banking
industry, which has been ranked in the magazine among first 10 Investor Friendly Companies.
The Bank for the second consecutive year was ranked Best Private Sector Bank in Financial
Express/ Ernest and Young combined Survey for the year 2002-03 released recently. Bank was
awarded „Shiromani Award' for outstanding achievements in the field of banking and
commitment to national progress and human welfare during the year under report. The Bank has
figured among 24 Indian companies in Forbes Global - 100 best „under a billion Asia's Rising

Companies', listed by Forbes magazine in its issue dated November 01 2006. The publication has
commended J&K Bank for representing economic dynamism in the region, sustained growth in
all spheres and an excellent track record of rewarding its shareholders.
BANKS NEW IDENTITY
The new identity of the J&K Bank is a visual representation of the Bank‟s philosophy
and business strategy. The three colored squares represent the three regions of the state viz,
Jammu, Kashmir and Ladakh. The counter-form created by the interaction of the squares is a
falcon with outstretched wings – a symbol of power, speed 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.
SUPPORT SERVICES
Technology application has remained the thrust area of the Bank for last many years with an objective to
offer state of the art world class Banking facilities to its customers. The Bank continued to leverage
information technology as a strategic tool for its business operations, to gain competitive edge in
customer service as well as improving productivity and efficiency. The Bank‟s IT strategy emphasizes
enhanced level of customer services through 24x7 availability, multi-channel Banking and cost efficiency
through optimal use of electronic channels, wider market reach and opportunities for cross-selling. The
Bank‟s focus is on harnessing technology for integrating diverse products and services. Keeping this in
view, the Bank continued to widen the scope of multiple delivery channels such as ATM installations,
Anywhere Banking, Internet Banking and SMS Banking at more & more centres.
Anywhere Banking Features

 Power to Access to your accounts across our branch network.
 The facilities include Cash Deposit/Withdrawal and transfer.
 Outstation Cheque collection.
Internet Banking/Features
 Available for both Retail and Corporate users.
 SMS Banking
 Statement of Accounts.
 Funds Transfer.
 Submit the filled form at your branch for creation of your Internet banking user
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 Ebanking customers
 J & K Bank Secure Payment Gateway, to provide ecommerce facility to the ebanking customers.
 Tie up with M/S Avenues India Pvt. Ltd. (Ccavenue) and M/S BillDesk, for extending ecommerce
facility to the ebanking customers.
 The facility shall be available to only such ebanking users, which have been enabled by the Bank for
Bill Payment facility.
 ebanking users intending to purchase goods online through the Ccavenue shopping site shall be
required to:

 Logon to the Master Merchant‟s (M/S Avenues India Pvt. Ltd.) website
http://world.ccavenue.com/content/clients.jsp.,
 Select the item to be purchased
 Select ebanking as the mode of payment.
 Select the J & K Bank and the system will take the user to the J & K Bank‟s ebanking site prompting
him to enter his ebanking user-id and password.
 After entering the Bank‟s ebanking 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 Ebanking customers
 NSDL (National Securities Depository Ltd.), the first and largest depository in India, established in
August 1996 and promoted by institutions of national stature responsible for economic development
of the country has since established a national infrastructure of international standards that handles
most of the securities held and settled in dematerialised form in the Indian capital market.
 Tax Information Network (TIN), a repository of nationwide tax related information, has been
established by National Securities Depository Limited on behalf of Income Tax Department of India
(ITD).
 Although India had a vibrant capital market which is more than a century old, the paper-based
settlement of trades caused substantial problems like bad delivery and delayed transfer of title 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.
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.
Debit Cards Features
 Pin Based -Maestro / Cirrus Debit Card
 Provides online access to savings or current account.
 Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™ Enabled
ATM's and Point Of Sale locations.
 Accepted at National Financial Switch (NFS) ATM's.
 No Transaction Fee at JK Bank ATM's
 No Transaction Fee on purchases
Credit Cards Features
 20-50 day Credit Free Period
 Revolving Credit Facility on paying of minimum payment due in the same billing period.
 Hassle free credit facility at competitive rate of interest.
 Cash Withdrawal Facility upto 20% of total credit limit.
 Loyalty programme
 MasterCard® SecureCode™ enbaled Credit Cards.J&K Bank lets you shop securely online with your
J&K Bank MasterCard Credit Card. This service through a simple checkout process, confirms your
identity when you make purchases on the Internet
 To use the facility, you would:
 Connect to the Internet and shop online using your J&K Bank Credit Card.
 You don't need any special software to use MasterCard SecureCode.
 Using this facility is as easy as using a PIN for ATM transactions.
 Grievance Nodal Officer for Credit Cards
 Mr. Parvez Ahmad

 0194-2486427
 grievance.creditcards@jkbmail.com
 Card Issuing and Acquiring Department; Corporate Headquarters J&K Bank
Most Important Terms and Conditions (JK Bank Credit Card)
One Time Password(OTP) for IVR transactions: Effective January 1, 2011, as mandated by Reserve
Bank of India (RBI), Credit-Card-issuing Banks in India have introduced an additional measure of
security for IVR transactions (Interactive Voice Response transactions are those transactions which are
made over the phone where certain Credit-Card details are to be entered into an automated system in
order to make payment to a merchant for the purchase of goods/services) through their Credit Cards – the
OTP (One Time Password) generation.
What is an OTP?
An OTP is a six-digit code, valid for a limited period from the time of placing a request for it. You will
need to obtain an OTP before every IVR payment transaction.
How to obtain an OTP?
You can obtain the OTP by visiting http://www.jkbank.net/jksip.php and logging in to J&K Bank Secure
Internet Payment. A link Pre OTP is available for generating the OTP which would be emailed to your
registered email. Alternatively, the OTP can be displayed on the screen by clicking on the small check
box provided for the purpose.
How to use the OTP?
The OTP is required at the time of making payment on the IVR, where you will be prompted to enter it
along with the other details like your credit-card number, card expiry date and CVV number.
Merchant Acquiring/ Features
 All types of Visa & MasterCard based cards Accepted
 Quick Merchant Payment
 Merchant Helpdesk and Onsite Support.
 Competitive Commission Rates

 No hidden Charges
Basic Information
Depository: A depository is like a bank where securities are held in electronic (dematerialized) form.
Dematerialization: It is the process of converting the securities held in physical form (certificates) to an
equivalent number of securities in electronic form and crediting the same to the investor's demat account.
Dematted securities do not have any certificate numbers or distinctive numbers and are dealt only in
quantity i.e. the securities are replaceable
Stock Broking through INVESTMART an initiative of ILFS: You can avail the facility of buying and
selling of shares under single roof. It integrates your Broker, DP and Bank on a single platform.You may
open a trading account by opening a Demat account with J&K BANK, SAVING ACCOUNT with J&K
BANK and Stock Broking Account by filling Investor Registration form of INVESTMART an initiative
of ILFS and our business patner for providing broking services.For further queries you may contact the
DP branches of J&K Bank
Depository Participant of NSDL and CDSL: In our country there are two central depositories -
National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).J&K
BANK is Depository Participant of both NSDL and CDSL.
Under the Depositories Act, investors can avail of the services of the depositories through Depository
Participants (DPs) such as J&K BANK. DPs are like bank branches wherein shares in physical forms
need to be deposited for converting the same to electronic (demat) form.
Market transaction: When securities are transferred from a beneficiary account of an investor to a
clearing member account of a broker for ensuring delivery of securities on a stock exchange, then it is a
market transaction.
Off-market transactions: When securities are transferred from the beneficiary account of one investor to
that of another, and the transaction does not get routed to the stock exchange, it is an off-market
transaction.
Rematerialisation (Remat)
It is the process of conversion of securities from electronic to physical form
Third party service of Mutual Funds

J&K Bank has entered into tie-ups with reputed Asset Management Companies for distribution of Mutual
Fund products.
Mutual Fund industry is one of the fastest growing segments in financial services in India. Over the years,
banks in India have emerged as the biggest distributors of financial products. This has helped the banks to
capture and retain their huge client base and simultaneously adding a steady stream of fee based income.
Mutual Funds have become an attractive proposition for investors in the current context and for J&K
Bank it will be a good investment option to have in our product portfolio. This shall be an important step
towards converting the bank branch into a financial supermarket addressing all the financial needs of the
customers thus helping the bank retain the customers within its fold.
Moreover the branch can augment its fee based income the Bank aims to match to industry standards.
The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and Reliance Mutual
Fund. The Bank shall undertake distribution of their current schemes as well as NFO (New Fund Offer) as
and when the AMC comes up with the same.
Insurance Services -Life Insurance
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated
as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M.
Pallonji and Co. Private Limited and other private investors.
MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by
offering a range of innovative products to individuals and group customers at more than 600 locations
through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors,
who help customers achieve peace of mind across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific
and Europe. Affiliated companies, outside of India, include the number one life insurer in the United
States (based on life insurance in force), with over 140 years of experience and relationships with more
than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance,
annuities, automobile and home insurance, retail banking and other financial services to individuals, as
well as group insurance, reinsurance and retirement and savings products and services to corporations and
other institutions.

The bank is also Corporate Agent of MetLife and is marketing its products through its strong branch
network. Visit the Metlife Website for the details on products
PRODUCT RANGE OF THE COMPANY
Loans
Housing Loan Scheme: Quantum of loan
For Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower. For repairs/renovation
20 months net salary, subject to a maximum of 10.00 Lacs.
For purchase of land: 20 months net salary/income subject to maximum of 5 Lacs within J&K and 10.00
Lacs outside J&K.
Also as an incentive for small borrowers, the loans upto 1.5 Lacs granted for repairs/renovations of
existing houses would now be secured by third party guarantee of two persons or such other security as is
deemed appropriate by the Bank.
Insurance
Life Insurance Segment/ Metlife India Insurance
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated
as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M.
Pallonji and Co. Private Limited and other private investors.
MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by
offering a range of innovative products to individuals and group customers at more than 600 locations
through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors,
who help customers achieve peace of mind across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific
and Europe. Affiliated companies, outside of India, include the number one life insurer in the United
States (based on life insurance in force), with over 140 years of experience and relationships with more
than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance,
annuities, automobile and home insurance, retail banking and other financial services to individuals, as
well as group insurance, reinsurance and retirement and savings products and services to corporations and
other institutions.

The bank is also Corporate Agent of MetLife and is marketing its products through its strong branch
network.
Tax Products/Planning
Tax Products & Planning (Tax Saver Term Deposit Scheme)
Purpose: To enable our customers to place long term deposits to earn higher rate of interest and also to
avail the tax benefits under section 80C of Income Tax Act, 1961.
Savings & Deposits
 Savings Bank Deposit Scheme
Salient Features
 Account can be opened with a minimum initial deposit of 100/- to 500/-
 Convenient and easy to operate account to save time and money.
 Suitable for irregular income group No time bar on depositing or withdrawing money.
Who can open this Account?
 A person in his/her name.
 More than one person in their joint names.
 Minor through guardian or himself if above 10 years of age.
 Illiterate persons.
 Blind persons. - Associations, clubs, Societies, Trusts, etc.
Facilities
 Anywhere banking facility.
 ATM/Debit card.
 Telebanking facility.
 Cheque book facility
Cards
 Global Access Card
 Salient Features
 Pin Based -Maestro / Cirrus Debit Card
 Provides online access to savings or current account.

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

ORGANIZATION STRUCTURE OF THE COMPANY

Chapter II
Meaning of perception and customer
satisfaction

MEANING OF PERCEPTION:
Perception
Perception is the ability to pick out something through the different senses. It can be through
seeing, hearing, smelling or touching. The sensory stimulus of the body system consciously
registers an activity or event in the human memory. Perception depends on complex functions of
the nervous system, but subjectively seems mostly effortless because this processing happens
outside conscious awareness.
Factors affecting perception
(a) The Perceiver: When an individual looks at the target and attempts to interprete what he /
she sees. Such interpretation is heavily influenced by personal characteristics of the individual
perceiver. The characteristics of perceiver include person‟s needs. Past experience, habits,
personality, values, attitudes etc.
For example: – a negative attitude person interprets negative results and further makes negative
perception.
(b) The Perceived (object): Characteristics of the target, which has been, observed also affects
the individual‟s perception. The physical attributes, appearance and behaviour of other persons in
the situation also influences the perception. Physical attributes of the person means age, height,
weight, gender etc.
Loud people are easily noticeable in a group in comparison to the quite ones. Motion sound, size
and other attributes of a target also affect the perception of an individual.
Object which is perceived is not observed in isolation, the relationship of a target with its
background also influences perception. Person, objects or events that are similar to each other
also tend to be grouped together. Greater the similarity, the greater is the probability that we will
tend to perceive them as a common group.
(c) The Situation: The physical, social and organizational setting of the situation also
influences individual‟s perception. The situation in which we see objects or events is important.
The elements in the surrounding environment influence our perception. For example: - hearing a

subordinate calling his / her boss by his / her name may be perceived quite differently when
observed in an office as opposed to an evening social reception.
PERCEPTION AND CUSTOMER SATISFACTION
Those who buy the goods or services provided by companies are customers. In other words, a
customer is a stakeholder of an organization who provides payment in exchange for the offer
provided to him by the organization with the aim of fulfilling a need and to maximise
satisfaction. Sometimes the term customer and consumer are confusing. A customer can be a
consumer, but a consumer may not necessarily be a customer. Another author explained this
difference. I.e. a customer is the person who does the buying of the products and the consumer is
the person who ultimately consumes the product (Solomon, 2009, p. 34.)
When a consumer/customer is contented with either the product or services it is termed
satisfaction. Satisfaction can also be a person‟s feelings of pleasure or disappointment that results
from comparing a product‟s perceived performance or outcome with their expectations (Kotler &
Keller, 2009, p. 789). As a matter of fact, satisfaction could be the pleasure derived by someone
from the consumption of goods or services offered by another person or group of people; or it
can be the state of being happy with a situation. Satisfaction varies from one person to another
because it is utility. “One man‟s meal is another man‟s poison,” an old adage stated describing
utility; thus highlighting the fact that it is sometimes very difficult to satisfy everybody or to
determine satisfaction among group of individuals.
Client happiness, which is a sign of customer satisfaction, is and has always been the
most essential thing for any organization. Customer satisfaction is defined by one author as “the
consumer‟s response to the evaluation of the perceived discrepancy between prior expectations
and the actual performance of the product or service as perceived after its consumption” (Tse &
Wilton, 1988, p. 204) hence considering satisfaction as an overall post-purchase evaluation by
the consumer” (Fornell, 1992, p. 11). Some authors stated that there is no specific definition of
customer satisfaction, and after their studies of several definitions they defined customer
satisfaction as “customer satisfaction is identified by a response (cognitive or affective) that
pertains to a particular focus (i.e. a purchase experience and/or the associated product) and
occurs at a certain time (i.e. post-purchase, post-consumption)”. (Giese & Cote, 2000, p. 15) This
definition is supported by some other authors, who think that consumer‟s level of satisfaction is

determined by his or her cumulative experience at the point of contact with the supplier
(Sureshchander et al., 2002, p. 364). It is factual that, there is no specific definition of customer
satisfaction since as the years passes, different authors come up with different definitions.
Customer satisfaction has also been defined by another author as the extent to which a product‟s
perceived performance matches a buyer‟s expectations (Kotler et al., 2002, p. 8). According to
Schiffman & Karun (2004) Customer satisfaction is defined as “the individual‟s perception of
the performance of the products or services in relation to his or her expectations” (Schiffman &
Karun 2004, p. 14). In a nutshell, customer satisfaction could be the pleasure obtained from
consuming an offer.
Measuring customer satisfaction could be very difficult at times because it is an attempt to
measure human feelings. It was for this reason that some existing researcher presented that “the
simplest way to know how customers feel, and what they want is to ask them” this applied to the
informal measures (Levy, 2009, p. 6; NBRI, 2009).
Since customer satisfaction has been considered to be based on the customer‟s experience on a
particular service encounter, (Cronin & Taylor, 1992) it is in line with the fact that service

quality is a determinant of customer satisfaction, because service quality comes from outcome of
the services from service providers in organizations.
Another author stated in his theory that “definitions of consumer satisfaction relate to a specific
transaction (the difference between predicted service and perceived service) in contrast with
„attitudes‟, which are more enduring and less situational-oriented,” (Lewis, 1993, p. 4-12) This is
in line with the idea of Zeithaml et al (2006, p. 106-107).
Regarding the relationship between customer satisfaction and service quality, Oliver (1993) first
suggested that service quality would be antecedent to customer satisfaction regardless of whether
these constructs were cumulative or transaction-specific. Some researchers have found empirical
supports for the view of the point mentioned above (Anderson & Sullivan, 1993; Fornell et al
1996; Spreng & Macky 1996); where customer satisfaction came as a result of service quality.
In relating customer satisfaction and service quality, researchers have been more precise about
the meaning and measurements of satisfaction and service quality. Satisfaction and service
quality have certain things in common, but satisfaction generally is a broader concept, whereas
service quality focuses specifically on dimensions of service. (Wilson et al., 2008, p. 78).
Although it is stated that other factors such as price and product quality can affect customer
satisfaction, perceived service quality is a component of customer satisfaction (Zeithaml et al.
2006, p. 106-107). This theory complies with the idea of Wilson et al. (2008) and has been
confirmed by the definition of customer satisfaction presented by other researchers.
The above figure shows the relationship between customer satisfaction and service quality. The
author presented a situation that service quality is a focused evaluation that reflects the
customer‟s perception of reliability, assurance, responsiveness, empathy and tangibility while
satisfaction is more inclusive and it is influenced by perceptions of service quality, product
quality and price, also situational factors and personal factors. (Wilson, 2008, p. 78)
It has been proven from past researches on service quality and customer satisfaction that
Customer satisfaction and service quality are related from their definitions to their relationships
with other aspects in business. Some authors have agreed to the fact that service quality
determines customer satisfaction. Parasuraman et al., (1985) in their study, proposed that when
perceived service quality is high, then it will lead to increase in customer satisfaction. Some

other authors did comprehend with the idea brought up by Parasuraman (1995) and they
acknowledged that “Customer satisfaction is based upon the level of service quality that is
provided by the service providers” (Saravana & Rao, 2007, p. 436, Lee et al., 2000, p. 226).
Looking into (figure 1), relating it to these authors‟ views, it is evident that definition of
customer satisfaction involves predicted and perceived service; since service quality acted as one
of the factors that influence satisfaction. More evidence of this relationship has been proven by
past researches.

Chapter III
Review of literature and Research
Methodology

PROPOSED MODEL AND REVIEW OF LITERATURE
Our conceptual model is demonstrated in Figure 1. This model starts with SERVQUAL
measurement scale, consisting of six dimensional structures: tangibles, reliability,
responsiveness, assurance, and empathy, and compliance dimensions to measure J&K bank
service quality. Furthermore, a conceptual model of the relationship between service quality and
customer satisfaction (Figure 1) is developed based on the literature and hypotheses are explore
The SERVQUAL model has provided a comprehensive conceptualization of service quality with
an instrument to measure perceived service quality. This method has been very popular with
academics and researchers to assess the customer perception of service quality for a variety of
service industries. The five dimensions of service quality include:
 Tangibles (appearance of physical components);
 Reliability (dependability of service provider and accuracy of performance);
 Responsiveness (promptness and helpfulness);
 Assurance (knowledge and courtesy of employees and their ability to inspire trust and
confidence)
This is a generic model and instrument for all service encounters. In fact, a number of
researchers and academics have recently studied the conceptualization and measurement
approach used for developing the SERVQUAL scale in different industries. Dabholkar et al.
(1996) suggested that service quality is multi- level and multidimensional. They found that

quality of service is directly influenced by the customer‟s perceptions of performance levels, and
the customers‟ personal characteristic are important in assessing the value, but not quality. Angur
et al. (1999) suggested that the SERVQUAL scale is multidimensional and is able to provide
more diagnostic information due to its greater variability across banks than the SERVPERF
scale.
Although the SERVQUAL model has greatly contributed to the literature on service quality it
has been criticized. Generally, critics have questioned the multidimensional nature of the
instrument, measurement scales, psychometric properties, and the feasibility of SERVQUAL as a
framework in measuring service quality. Carman (1990) says that the SERVQUAL needed to be
customized by adding items or changing the wording of items. The dimensions stability of
SERVQUAL was unclear, not completely generic, and not sufficient to meet service quality
measurement needs. Babakus and Boller (1992) revealed that the SERVQUAL model appears to
suffer from a number of methodological and measurement flaws. The five dimensions of
SERVQUAL failed to construct a service quality measurement and the SERVQUAL is uni
dimensional rather than a five-dimensional construct. They further suggested that the
dimensionality of service quality may depend on the type of industry being studied. Cronin and
Taylor (1992) suggest that the SERVPERF scale explains more variation in service quality than
does SERVQUAL and the SERVQUAL is uni-dimensional. Teas (1993) revealed that the P-E
model indicates a number of problems of the conceptual and operational definitions of the
expectations and the revised expectations (E *) components of the model.
In retail banking, Newman (2001) suggested that the SERVQUAL model does not
appear to be the holistic model and doubted the value of SERVQUAL as a measure of service
quality. In commercial banks, Jabnoun and Al-Tamimi (2003) explained that the dimensions
found were different from the original SERVQUAL dimensions, and there were problems with
these as there were some overlaps. Cui et al. (2003) revealed that SERVQUAL and SERVPERF
were not uni-dimensional. Confirmatory factor analysis revealed that the measurement scale
lacked validity with samples from different cultures.
To date, there have been a few empirical studies regarding the dimension of service
quality in banking. Al-Tamimi and Al-Amiri (2003) modified the five SERVQUAL dimensions
to measure service quality. They found that reliability was the most important dimension on their
instrument.

Even though a number of methodological issues have been debated and are
controversial, the preponderance of research has been strongly influenced by the conceptual
model of service quality proposed by Parasuraman et al. (1985), and subsequently
operationalized and refined by the same authors. This articulation of the service quality construct
and its associated SERVQUAL measure has spawned hundreds of studies across the industries.
Karatape et al. (2005) suggested that service quality measures developed in one culture may
capture service quality sentiments in another culture.
In the service literature, Oliver (1980) explained that customer satisfaction entails the full
meeting of customer expectation of the products and services. If the perceived performance
matches or even exceeds customers‟ expectations of services, they are satisfied. If it does not,
they are dissatisfied (de Wulf, 2003). In the real world, unsatisfied customers tend to create
negative word-of-mouth and convey their negative impression to other customers (Lewis, 1991;
Newman, 2001; Caruana, 2002). These positive and negative word-of-mouth communications
are very useful.
Previous research has identified various factors that determine customer satisfaction in the retail
banking sector in the USA and Europe. To satisfy customers, Greek Cypriot bank in Turkey used
service quality to achieve customer satisfaction. The SERVQUAL dimensions were explanatory
variables in predicting customer satisfaction and the reliability dimension had highest impact on
overall customer satisfaction (Arasly et al., 2005a). This study was consistent with Othman and
Owen (2001) who suggested that there is a strong link between SERVQUAL and customer
satisfaction. Fast and efficient service; friendliness of bank personnel; confidentiality of bank;
speed of transaction are as the key criteria which they has satisfied by the banks (Haron et al.,
1994). Finding from college students in Bahrain, indicated that young customers places more
emphasis on factors like a bank‟s reputation, friendliness of bank personnel, convenient location,
24-hours ATM, and availability of parking space in selecting their banks (Almossawi, 2001).
The bank‟s ability to deliver these benefits on an on-going basis probably influences the level of
customer satisfaction. Banks have provided innovative methods of satisfying customers, such as
internet banking and online system, telephone and call center.
According to Levesque and McDougall (1996), convenience and competitiveness of the bank are
two important factors which are likely to influence the overall satisfaction levels of a customer.

In the services literature, strong emphasis is placed on the importance of service quality
perceptions and the relationship between service quality and customer satisfaction (Cronin and
Taylor, 1992; Taylor and Baker, 1994). Some researchers and academics described that customer
satisfaction is an antecedent of service quality (Parasuraman et al., 1985, 1988, 1991, 1994;
Carman, 1990; Bitner, 1990), and others have counterargued that the service quality as an
antecedent of customer satisfaction (Cronin and Taylor, 1992, 1994; Bolton and Drew, 1991;
Anderson and Sullivan, 1993) and that service quality is not equivalent to satisfaction (Oliver,
1980). The current research from retail banking sector in UAE, indicated that service quality
dimensions appear to be linked to customer satisfaction, where core and relational dimensions of
service quality are causal antecedents of customer satisfaction (Jamal and Naser, 2002).
However, there is very little empirical research demonstrating the importance of service quality
dimensions in determining customer satisfaction (Fisk et al., 1993; Levesque and McDougall,
1996). In a recent study, Levesque and McDougall (1996) found that the performance of the
service provider on core and relational dimensions of services was an important driver for
customer satisfaction in retail banking. Bitner et al. (1994) and Anderson et al. (1994) also point
to this link by suggesting that improved service quality will provide significant impact of
customer satisfaction. The causal relationship between service quality and customer satisfaction
is the subject of great academic debated and no consensus has been reached (Bahia et al., 2000).
Nevertheless, from a theoretical point of view the researchers and academics have established the
conceptual definition of customer satisfaction. Then, we develop a set of hypothesis, service
quality are positively related to customer satisfaction.
SERVQUAL SCALE:
The SERVQUAL scale includes five dimensions: tangibles, reliability, responsiveness, assurance
and empathy. Within each dimension are several items measured on a five-point scale from
strongly agree to strongly disagree.
SERVQUAL QUESTIONS:
Likert scale was used to measure the responses provided by the respondents and the Likert
format items were presented with 5-point scales, where:

„1‟ = Strongly Disagree, 2‟ = Disagree, „3‟ = Indifferent, 4‟ = Agree and 5‟ = Strongly
Agree.
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research.
“D. Slesinger and M.Stephenson in the encyclopedia of Social Sciences define Research as “the
manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or
verify knowledge, whether that knowledge aids in construction of theory or in the practice of an
art”.
Research is a careful investigation or inquiry especially through search for new facts in branch of
knowledge: market research specifies the information. Required to address these issues: designs
the method for collecting information: manage and implements the data collection process
analyses the results and communicates the finding and their implications.Research problem is the
one which requires a researcher to find out the best solution for the given problem that is to find
out the course of action, the action the objectives can be obtained optimally in the context of a
given environment.
RESEARCH PROBLEM
To find the Customer‟s Perception toward various products and services of J&K bank.
SOURCE OF INFORMATION
Since this research is related to the customer‟s perception, so the important sources of
information are customers themselves.
SAMPLE DESIGN
The sample size that was studied in this project is 40.
Method of sampling – Convenience sampling
INSTRUMENT OF DATA COLLECTION:

The objectives of the project are such that both 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 research work already
done & websites.
PRIMARY DATA:
The primary data was collected to measure the perception of corporate customer towards
services and products of J&K Bank. The primary data was collected by means of direct
personal interview method through structured questionnaire and analysis was done on the basis
of response received from the customers. The source for the primary data was a questionnaire.
The questionnaire is the most popular and useful method for the collecting survey data and helps
in analysing the information from the framed questions to get the real picture of the subject. The
questionnaire has been designed in such a manner that the customer‟s perception level can be
measured and consumer can enter his/her responses easily. The questionnaire that was used for
the collection of the research data contained 10 questions. Out of which, 9 questions were closed
question based on options and 1 open end question.
The questions used in the questionnaire contained information and details about the bank like
 Details of the person interacted about product/service being utilized
 Customer‟s current level of knowledge regarding bank product
 Customer‟s preferences about the product which they would rate higher than other
product and
 Customer‟s media preference or the way in which they would like the product to be
advertised or promoted
SECONDARY DATA:
The secondary data used in the research was collected from
 The Jammu and Kashmir bank‟s magazines.
 Websites.

IMPORTANCE OF RESEARCH METHODOLOGY
Whenever a scientiﬁc problem is to be solved there are several important steps to follow. The
problem must be stated clearly, including any simplifying assumptions. Then develop a
mathematical statement of the problem. This process may involve use of one or more
mathematical procedures. Frequently, more advanced text books or review articles will be
needed to learn about the techniques and procedures. Next, the results have to be interpreted to
arrive at a decision. This will require experience and an understanding of the situation in which
the problem is embedded.
NEED OF THE STUDY
In the current trend, customer satisfaction plays a major role in all parts of the service. This
research work is used to predict the over-all customer satisfaction and dissatisfaction with J&K
bank services. This study helps to identify the customers‟ perception and satisfaction of J&K
bank products and services.
Very less work has been done in this field especially regarding products and services of J&K
bank.
OBJECTIVES OF THE STUDY
Every study has a particular goal. A study without objectives cannot reach the
destination. Our project work is also directed to some particular targets and the main
objectives of the study are as bellow:
 To study the customer perception towards various products and services of J&K Bank,
which is a subject of customer perception towards various services and products.
 To study the major factors responsible for their satisfaction.
 To make bank employees aware about the customer problems and give
suggestions to solve them so that the Bank can retain and maintain the loyal
customers.
HYPOTHESES OF STUDY:

Perception of corporate customers towards various services and products offered by J&K
bank is a by- product of customer satisfaction level which depends on the services offered
by bank. Various indicators of satisfaction level include:
 Tangibility
 Reliability
 Responsiveness
 Assurance
 Compliance
TABLE 1: HYPOTHESES OF STUDY
SNO OBJECTIVE HYPOTHSES TEST
1 To identify the
perception of
corporate
customers on the
basis of gender and
marital status
towards products
and services of
J&K bank.
Demographic
profile wise
(gender, marital
status) customer
differs with regard
to perception
towards J&K
bank.
T-test

2 The objective is to
study the impact
factor of
tangibility,
reliability,
responsiveness,
assurance and
compliance on the
perception of
corporate
customers towards
products and
services of J&K
bank.
The perception of
corporate
customers towards
products and
services of J&K
bank is
significantly
predicted by
tangibility,
reliability,
assurance,
responsiveness and
compliance.
COORELATION

Chapter IV
Data analysis and interpretation

HYPOTHESES TESTING
TABLE 1: PROFILE OF RESPONDENTS
S.NO PARTICULARS DESCRIPTION FREQUENCIES PERCENTAGE
(%)
PIE-CHARTS
1 Gender Male
Female
Total
23
14
37
54.1
45.9
100.0
2 Age Below 35 years
35-45 years
Above 45 years
Total
23
9
5
37
62.2
24.3
13.5
100.0
3 Marital Status Married
Unmarried
Total
20
17
37
62.2
37.8
100.0
4 Education Illiterate
Secondary
Graduate
Total
11
7
19
37
29.7
18.9
51.4
100.0
5 Amount of loan
availed
Upto 5 lakhs
5-10 lakhs
Above 10 lakhs
Total
16
9
12
37
43.2
18.9
51.4
100.0

Table 8 above shows that male customers of J&K bank are 54.1% while females are 45.9%.
customers in the age group below 35 years are 62.2%, 35-45 years are 24.3%, and above 45
years are 13.5%, 62.2% of customers are married while 37.8% are unmarried. 29.7% of
customers are illiterate, 18.9% are secondary educated while 51.4 % are graduate. 43.2% of
customers have availed a loan of up to 5 lakhs, 18.9% in between 5-10 lakhs and 51.4% above
10 lakhs.
TABLE 2: CORRELATION COEFFICIENT RELATIONSHIP BETWEEN
RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND
SERVICES OF J&K BANK
S.NO R1 R2 R3 R4 R5 R6 R7
R1
Pearson Correlation 1
R2
Pearson Correlation 0.12** 1
R3
Pearson Correlation 0.04** 0.32** 1
R4
Pearson Correlation 0.37** 0.48** 0.31** 1
R5
Pearson Correlation 0.16** 0.25** 0.16** 0.20** 1
R6
Pearson Correlation 0.08** 0.49** 0.49** 0.73** 0.13* 1
R7
Pearson Correlation 0.48** 0.37** 0.48** 0.50** 0.08 0.40* 1
*Correlation is significant at 5% level of significance
** Correlation is significant at 1% level of significance
Table 2 shows the results of the correlation between 7 items of reliability and the perception of
customers towards the products and services provided by J&K Bank. The item-wise value of
Pearson correlation coefficient with perception is 0.48 (J&K Bank keeps its records accurately),

0.37 (J&K Bank employees provide services at the promised rates), 0.48 (J&K Bank offers wide
range of products and services), 0.50 (J&K bank keeps your information confidential), 0.08
(J&K Bank involves hidden policies) and 0.40 (J&K bank account is safe). Thus the hypothesis
“There is a positive association between reliability and perception towards J&K Bank’s
products and services”.
RESPONSIVENESS AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS
AND SERVICES OF J&K BANK
S.NO RE1 RE2 RE3 RE4 RE5 RE6
RE1
RE2
RE3
Pearson Correlation 0.22** 0.17** 1
RE4
Pearson Correlation 0.18* 0.31** 0.31** 1
RE5
Pearson Correlation 0.15** 0.27** 0.36** 0.29** 1
RE6
Pearson Correlation 0.88** 0.59** 0.56** 0.63** 0.13* 1
Table 3 shows the results of the correlation between 6 items of responsiveness and the perception
of customers towards the products and services provided by J&K Bank. The item-wise value of
Pearson correlation coefficient with perception is 0.88 (Employees of J&K Bank are always
willing to help customers), 0.59 (When you have problems, J&K Bank is able to solve

problems), 0.56 (Employees of J&K Bank respond to customers request promptly), 0.63 (J&K
bank provides efficient services), 0.13 (J&K Bank provides you knowledge about the available
schemes). Thus the hypothesis “There is a positive association between responsiveness and
perception towards J&K Bank’s products and services”.
ASSURANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND
S.NO A1 A2 A3 A4 A5 A6
A1
A2
A3
Pearson Correlation 0.414* .621** 1
A4
Pearson Correlation .312 0.375* .527** 1
A5
Pearson Correlation 0.098 0.210 .580** .612** 1
A6
Pearson Correlation 0.57 0.236 .527** .838** .781** 1
Table 4 shows the results of the correlation between 6 items of ASSURANCE and the perception
of customers towards the products and services provided by J&K Bank. The item-wise value of
Pearson correlation coefficient with perception is 0.57 (J&K bank don‟t fully assures about the
rate of interest), 0.236 (customers aren‟t satisfied with the rate of interest charged by J&K bank),

0.527 (J&K bank provides assurance about the provisions of product and services), 0.838 (J&K
bank employees are knowledgeable), 0.781 (J&K bank provides financial advice). Thus the
hypothesis “There is a positive association between assurance and perception towards J&K
Bank’s products and services”.
COMPLIANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND
S.NO C1 C2 C3 C4 C5 C6 C7
C1
C2
C3
Pearson Correlation 0.703* .681** 1
C4
Pearson Correlation .690** 0.617** .633** 1
C5
Pearson Correlation 0.266 0.702** .535** .473** 1
C6
Pearson Correlation 0.593** 0.765** .646** .577** .619** 1
C7
Pearson Correlation 0.259 0.6.0** .423** .325* .850** .479**
1
Table 5 shows the results of the correlation between 7 items of compliance and the perception of
customers towards the products and services provided by J&K Bank. The item-wise value of

Pearson correlation coefficient with perception is 0.259 (J&K bank don‟t Follow its policy), 0.6
(customers repay loan in time), 0.423 (customers follow rules and regulations of the bank), 0.325
(J&K bank is competent), 0.479 (J&K bank follows social responsibility). Thus the hypothesis
“There is a positive association between compliance and perception towards J&K Bank’s
products and services”.
TABLE 6: OUTPUTS FROM T-TEST
S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance
value)
T1 J&K Bank provides
you visually
appealing materials
associated with
services
Married
Unmarried
2.70
2.41
0.70
0.73
.002
T2 J&K Bank offers
speedy and efficient
transactions
Married
Unmarried
2.75
3.18
-1.21
-1.23
0.067
T3 J&K Bank has
convenient opening
business hours
Married
Unmarried
3.10
2.76
1.21
1.26
0.004
T4 J&K Bank offerings
(products/services)
are adequate to meet
your needs
Married
Unmarried
2.60
2.14
0.52
0.52
0.065
T5 J&K Bank
products/services are
attractive than its
competitors
Married
Unmarried
3.35
2.71
1.70
1.71
0.078
all the services
(money transfers,
insurance, savings,
Married
Unmarried
3.25
2.88
1.14
1.16
0.000

etc.)
T7 You are satisfied
with the tangibility
of products and
services
Married
Unmarried
3.95
3.12
2.40
2.42
0.064
Table 6 shows the marital status-wise mean difference in perception of customers for the items
of tangibility. Significant mean difference of perception between married and unmarried was
reported for 3 items of tangibility namely, J&K Bank provides you visually appealing materials
associated with services (.002), J&K Bank has convenient opening business hours (0.004), J&K Bank
provides all the services like, money transfers, insurance, savings, etc. (0.000) as the p value was less than
0.05. Moreover, insignificant mean difference of perception between male and female was reported as the
p-value for the other 4 items was more than 0.05, J&K Bank offers speedy and efficient transactions
(0.067), J&K Bank offerings (products/services) are adequate to meet your needs (0.065), J&K Bank
products/services are attractive than its competitors (0.078) and You are satisfied with the tangibility of
products and services (0.064). Thus the hypothesis “Marital status wise mean difference exists with
regard to the perception of tangibility of products and services of J&K Bank” stands partially accepted.
TABLE 7: OUTPUTS FROM T-TEST
S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance
value)
you visually
appealing materials
associated with
services
Male
Female
3.70
2.51
0.30
0.53
.001
T2 J&K Bank offers
speedy and efficient
transactions
Male
Female
4.35
2.18
0.21
0.23
0.004
T3 J&K Bank has
convenient opening
business hours
Male
Female
4.10
2.76
0.25
0.23
0.004

T4 J&K Bank offerings
(products/services)
are adequate to meet
your needs
Male
Female
2.60
4.14
0.62
0.22
0.000
T5 J&K Bank
products/services are
attractive than its
competitors
Male
Female
3.45
4.71
0.50
0.71
0.000
all the services
(money transfers,
insurance, savings,
etc.)
Male
Female
4.25
2.28
1.14
1.16
0.000
T7 You are satisfied
with the tangibility
of products and
services
Male
Female
3.85
4.32
2.40
2.42
0.032
Table 7 shows the gender-wise mean difference in perception of customers for the items of
tangibility. Significant mean difference of perception between male and female was reported for
7 items of tangibility namely, J&K Bank provides you visually appealing materials associated with
services (.001), J&K Bank has convenient opening business hours (0.004), J&K Bank provides all the
services like, money transfers, insurance, savings, etc. (0.004), J&K Bank offers speedy and efficient
transactions (0.000), J&K Bank offerings (products/services) are adequate to meet your needs (0.000),
J&K Bank products/services are attractive than its competitors (0.000) and You are satisfied with the
tangibility of products and services (0.032) as the p value was less than 0.05.. Thus the hypothesis
“Gender-wise mean difference exists with regard to the perception of tangibility of products and
services of J&K Bank” stands accepted.
:

Chapter v
Suggestions

SUGGESTIONS TO THE BANK:
 Bank should educate its customers about its terms and conditions clearly. Bank shouldn‟t
involve any hidden policy while dealing with customers.
 J&K bank should follow its policies in a strict manner.
 Perception of married customers towards tangibility of products is good, while that of
unmarried customers is low. J&K bank should make its products and services more
appealing to its unmarried customers as they are the active spenders.
 Perception of male customers towards products and services of J&K bank is good, while
that of female customers, in comparison to male customers isn‟t so significant. Thus J&K
should offer more services and products that appeal to female customers.
 J&K bank should establish single window operating system. Customers feel
inconvenience while going through lengthy procedures of bank.
LIMITATION OF THE RESEARCH
Every research is limited by its imagination is true, but we definitely have some limitations on
this research. The limitations are as follows:
 The study was restricted to J&K bank customers only.
 The study is restricted to corporate customers residing in Jammu region only.
 Considering the size of population that we have, the sample size that we have taken is
very small.
 Time factor was one of big limiting factor.
 Data given by the respondents are limited to their own attitude, perception, knowledge,
feeling and awareness. So generalization of this research work isn‟t possible.
 Due to human behavior, element of subjectivity is present.

FUTURE SCOPE:
 This research work can be extended by taking into consideration larger sample size, so
that results can be generalised.
 Other banks can be included (HDFC,ICICI, PNB etc.)
 Perception of private bank customer and public bank customer could also be compared.
 Perception of bank employees towards banks and services could also be included.
 Perception of customers residing outside J&K and using J&K bank services could be
taken into consideration.

Questionnaire

QUESTIONNAIRE
NOTE: You are requested to fill in the relevant blanks. The information collected would be
used for research purposes only.
PART 1
GENERAL INFORMATION
1 NAME OF THE CUSTOMER………………………………………………..
2 AGE: Below 35 years/ 35-45 years/ Above 45 years
3 GENDER: MALE/ FEMALE
4 MARITAL STATUS: MARRIED/ UNMARRIED
5 EDUCATION STATUS: Illiterate/ Secondary/ Graduate/ Any other
6 AMOUNT OF LOAN BORROWED: UPTO Rs. 5 lakh/ 5 lakh-10 lakh/ Above 10 lakh
PART 2
SPECIFIC INFORMATION
This part attempts to seek information on the degree of your satisfaction level with 5 options
namely 1, 2, 3, 4, 5 where 1= strongly disagree, 2= disagree, 3= indifferent, 4= agree, 5= strongly
agree.
SNO. STATEMENTS 1 2 3 4 5
A. TANGIBILITY

T1 J&K bank provides you visually appealing
materials associated with
Services
1 2 3 4 5
T2 J&K bank offers speedy and efficient
transactions
1 2 3 4 5
T3 J&K Bank has convenient opening business
hours
1 2 3 4 5
T4 J&K bank offerings (products/services) are
adequate to meet your needs
1 2 3 4 5
T5 J&K bank Products/services are attractive than
its competitors
1 2 3 4 5
T6 J&K Bank provides all the services (money
transfer, insurance, savings etc.)
1 2 3 4 5
T7 You are satisfied with the tangibility of
products and services
1 2 3 4 5
B. RELIABILITY
R1 J&K Bank keeps its records accurately 1 2 3 4 5
R2 J&K bank employees provide services at the
promised time
1 2 3 4 5
R3 J&K bank offers wide range of products and
services provided
1 2 3 4 5
R4 J&K bank keeps your information confidential 1 2 3 4 5
R5 J&K bank involves hidden policy 1 2 3 4 5
R6 J&K bank account is safe 1 2 3 4 5
R7 J&K bank is reliable 1 2 3 4 5
C. RESPONSIVENESS
RE1 Employees of J&K bank are always willing to
help
customers
1 2 3 4 5
RE2 When you have problems, J&K bank is able to 1 2 3 4 5

solve
problem and cooperate
RE3 Employees of J&K bank respond to customer
request promptly
1 2 3 4 5
RE4 J&K bank provides efficient counter service 1 2 3 4 5
RE5 J&K bank provides you knowledge about the
available schemes
1 2 3 4 5
RE6 You are satisfied with responsiveness of
employees of J&K bank
1 2 3 4 5
D. COMPLIANCE
C1 J&K bank follow its policies 1 2 3 4 5
C2 You make loan repayment on time 1 2 3 4 5
C3 You follow the rules and regulations of the
bank
1 2 3 4 5
C4 Provision of free interest loans 1 2 3 4 5
C5 J&K bank is competent than any other bank 1 2 3 4 5
C6 J&K bank follows social responsibility 1 2 3 4 5
C7 J&K bank is fully compliance 1 2 3 4 5
E. ASSURANCE
A1 J&K bank makes you fully assured about the
rate of interest
1 2 3 4 5
A2 You are satisfied with the rate of interest
charges by J&K bank
1 2 3 4 5
A3 J&K bank makes you assured about the
provision of products and services
1 2 3 4 5
A4 J&K bank employees are knowledgeable 1 2 3 4 5
A5 J&K bank provides financial advice 1 2 3 4 5
A6 J&K bank product and services are fully
assured
1 2 3 4 5

References

REFERENCES:
Gupta & Zeithaml (2006), “Customer Metrics and Their Impact on Financial Performance”
Marketing Science J., 25(6), 718–739.
Jain & Gupta (2012), “Customer Perception on Service Quality in Banking sector: With Special
Reference to Indian Private Banks”, International Journal of Research in Finance & Marketing,
Volume 2, Issue 2, ISSN NO: 2231-5985
Jessica (2011), “The Relationship between Customer Satisfaction and Service Quality: a study of
three Service sectors in Umea”, Master‟s Thesis, two-years, 30hp, Umea School of Business
Pandey, Darzi and Khaja (2014), “A Study on Customer Satisfaction towards J&K Grameen
Bank: An Empirical Study”, International Journal of Research in IT, Management and
Engineering, Volume 3, Issue 7, ISSN NO: 2249-1619
Tahir & Mushtaq‟s (2013), “An Empirical Study of Customer Satisfaction in Indian Banks: A
Case Study of Jammu & Kashmir Bank”, International Journal of Applied Services Marketing
Perspectives, Volume 2, Number 3, ISSN (P):2279-0977
http://www.jkbank.net/nri.php

Perception of J&K Bank's Corporate Customers

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