Summer Intership Project
Summer Intership Project
Summer Intership Project
Submitted By:
Name : ONISH POLYCARP RODRIGUES
SFIMAR
Batch- 2016-2018
1
DECLARATION
Roll No: 66
Specialization: Finance
2
ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude to all those who have
contributed significantly by sharing the knowledge and experience in completion of the
project report.
I owe my sincere gratitude to, Bassein Catholic Co-operative Bank Ltd for providing me
the opportunity to undergo two months summer training on this project. It was a great
learning experience.
I express my warm thanks to MR. JACOB GONSALVES for his support and guidance at
Bassein Catholic Co-operative Bank. I would also like to thank my project guide DR.
SULBHA RAORANE who provided me with the facilities being required and conditions
for my summer project.
3
TABLE OF CONTENTS
1 Company profile 7 - 10
4 Objectives 12
5 Research methodology 13
6 Literature review 14 - 15
9 Hypothesis testing 39 - 43
10 Findings 44
11 Suggestions 45
12 Limitations 46
13 Conclusion 47
14 Bibliography 48
15 Appendix 49 - 50
4
EXECUTIVE SUMMARY
The report title is “ A STUDY ON LOANS AND CREDIT PRODUCTS OF BCCB &
LEVEL OF CUSTOMER SATISFACTION “. The report gives an overview of the
banking sector and the company profile. This project was conducted to study the variety
of loans and credits offered by BCCB. Also to study level of customer satisfaction a
survey was conducted having sample size of 30 respondents. The methodology adopted
for the study was through a structured questionnaire. The data collected from different
customers was analyzed thoroughly and presented in the form of tables and charts and for
better understanding hypothesis testing was also conducted.
5
WORK PROFILE
My work profile was doing daily Banking activities on BCCB ERP software (OMNI)
like….
Fund Transfers.
Bassein catholic Co-op bank ltd (BCCB) was established as Credit Co-operative
Society by Social reformer Rev Msgr. P. J. Monis, christian missionery on 6th February
1918 along with social activists in Vasai to bring financial freedom in the region of
Vasai. Through his mission he succeeded in up-lifting the society, which has brought
massive change in the peoples lifestyle, education and financial stability.
MILESTONES:-
・ Tied up with CRISIL & SMERA credit rating agency for rating for units.
7
MISSION AND VISION STATEMENT
MISSION :-
VISION :-
・ RESPECT
・ FAIRNESS
・ TEAM SPIRIT
・ COMMITMENT
・ SERVICE EXCELLENCE
・ BUSSINESS ETHICS
8
DEPARTMENTS AT BCCB
If the jobs are not organized considering their interrelationship and are not
allocated in a particular department it would be very difficult to control the system
effectively and measure the performance of the employees. Bassein Catholic Co-op Bank
Ltd. has divided the jobs in various departments which help them to control and monitor
the bank very well. The departments in BCCB are as follows :
Treasury Department
Operation Department
Credit Department
9
AWARDS
The spectacular performance of the bank, over the years has been duly acknowledged by
Co-operative Banking Association/Federations by bestowing the following awards.
The Maharashtra State Co-operative Banks Association Ltd., in the year 2014-15
awarded the Bank “Late Padmabhushan Vasant Dada Patil, Best Urban Co-op.
Bank” amongst all scheduled/ multi state co-operative banks in Maharashtra.
Avis Publication has awarded the Bank “BANCO PURASKAR 2014”- 1st prize
for the best performance for the financial year 2013-2014 in the category of
Banks having deposits of Rs. 3000 to Rs. 5000 crore.
The Indian Banker magazine has given 1st rank to our Bank on the basis of
Average Cost of Funds, Return on Assets, CRAR ,and Business per Empolees
Banking Frontiers Year 2011 Award for Excellence in Recovery & NPA
Management in large Urban Co-Operative Banks Category The Bank has 45
branches with 37 Onsite and 2 Off site ATMs . All the branches operate on CBS.
10
ORGANIZATIONAL CHART OF BCCB
COMMITTEE OF MANAGEMENT
MANAGING DIRECTOR
GENERAL MANAGER
11
NEED FOR STUDY
The purpose of conducting this project is to get a detailed knowledge about the variety of
loans and credit facilities offered in BCCB. This project will help me study which is the
most profit generating loan for BCCB bank. Also a survey will be conducted for
customers who have used this loans and credit products to find their satisfaction towards
the same.
OBJECTIVES
To study the features, interest rates and documentation procedure of loans and
credits offered by BCCB.
To find out which product is most preferred by the customers of branch office.
To study level of customer satisfaction towards the loans & Credit products of
BCCB.
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RESEARCH METHODOLOGY
I. Research Design :-
Primary Data :-
Secondary Data :-
BCCB website.
Annual reports.
Brochures of BCCB.
The slowdown in the economy & aggressive stance for quantitative credit
deployment strategy has affected credit growth. There was an overall sluggishness
observed throughout various various industries affecting the business of the borrowers
during the F.Y. 2015-16.
On the backdrop, the advances portfolio of your bank has increased by Rs.372.08
crore registering the growth rate of 14.29% as against average industry growth of 9.8%.
The Credit-Deposit ratio stood at 62.94% which was 62.43% at the beginning of the year.
This will help the bank to improve NIM [Net Interest Margin] in the coming years.
Priority is given by your bank for providing financial assistance to MSME sector
as the said sector is currently the backbone for enhancing the country’s economy. Bank
has also tied up with SIDBI, for availing subsidy under CLCSS [Credit Linked Capital
Subsidy Scheme], which is beneficial to all SSI registered units, wherein subsidy from
Government @15% on total cost of new machinery purchased, maximum to the tune of
Rs.15 lakh can be obtained. During the last financial year we have received total of
Rs144.65 lakh against 40 claims submitted by your bank. The various retail products of
the bank, viz. Home Loan, Vehicle Loan, Education Loan & also various schemes like
BPLN, BDLN, LRD were robustly marketed.
Educational loans are provided by the bank to students belonging to all economic
stratas pursuing higher education in India as well as abroad. Interest subsidy for pursuing
higher education in India is obtained from Government of India under CSIS Scheme for
loans upto Rs.10 lakh availed by students belonging to Economically Weaker Section.
During the last financial year approximately 350 students have received the interest
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subsidy of Rs.19.04 lakh.
15
LOAN AND CREDIT PRODUCTS OF BCCB
HOUSING LOAN :-
Who can Borrow :-Students Along with Either of the Parent as co-borrower.
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VEHICLE LOAN :-
Margin :-25%
Margin :-25%
Prime Security :-Paid Stock & Bookdebts upto 90 days old only.
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BPLN (BCCB PERSONAL LOAN) :-
ORNAMENT LOAN :-
Eligibility :-Individual
Security :-Gold
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TABLE SHOWING TOTAL LOANS FROM THE YEAR 2015-2017
2014-15 36,74,57,789.9
2015-16 35,79,41,814.14
2016-17 37,40,62,849.68
ANALYSIS :-
From the above table it can be analysed that in the year 2014-2015 the total amount of
advances was 36.74 crores with a 33.42%, in 2015-2016 the total amount of advances was 35.79
crore 32.55% and in the year 2016-2017 the amount is 37.4 crores with 34.02%..
INTERPRETATION :-
From the above graph it can be inferred that in the year 2016-2017 showed the maximum
advances.
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AMOUNT SANCTIONED ON EACH LOAN PRODUCT
SURETYUNSECURED
LOAN 13,90,99,928.00 14,37,68,398.00 14,06,71,044.86
BUSSINESS
DEVELOPMENT LOAN 60,28,343.80 53,571.00
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INTERPRETATION :-
From the above charts we can figure out that surety secured loan which consists of
housing loan is doing good business for bank. Surety unsecured loan which consists of
personal loan is also showing steady growth in its business. while cash credit, business
development loan and ornament loan is showing decline in its business ,which is a bad
remark for the branch ofiice.
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ANALYSIS AND DATA INTERPRETATION
18 – 25 3 10%
26 – 35 4 13%
36 – 50 12 40%
ABOVE 50 11 37%
TOTAL 30 100%
Out of the total customers interviewed, 40% respondents were between the age group of
36-50, 37% were above 50 and 13% were of the age group of26-35. The least 10% were
between 18-25.
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2) WHAT IS YOUR OCCUPATION ?
SERVICE 17 56%
BUSINESS 9 30%
STUDENT 2 7%
OTHERS 2 7%
TOTAL 30 100%
The above pie diagram shows that 56% respondents are into service sector, 30% are into
business, 7% are students and remaining 7% fall under others. Others covers retired
people, farmers, unemployed people etc.
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3) SINCE FROM WHEN YOU ARE HAVING A/C IN BCCB BANK ?
2 – 4 YEARS 1 3%
4 – 6 YEARS 2 7%
TOTAL 30 100%
The majority of respondents are customers of BCCB for more than 6 years, 7% are
enjoying services of BCCB from 4-6 years.3% of respondents are just2-4 years old
account holders.
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4) WHICH LOAN PRODUCT OF BCCB HAVE YOU USED ?
EDUCATION LOAN 2 5%
TOTAL 40 100%
Out of 30 respondents, some people had used multiple loans. Therefore the chart shows
that a total of 40 loan products were been used out of which 44% were Housing loans,
28% were BPLN, 13% were for Business, 5% for Education purpose and remaining 10%
were vehicle loans.
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5) DO YOU FIND INTEREST RATES OF BCCB HIGH COMPARED TO OTHER
BANKS ?
YES 10 33%
NO 20 67%
TOTAL 30 100%
YES
33%
NO
67%
The above chart reveals that 67% of respondents feel the interest rates of BCCB are not
high compared to other banks, whereas 33% feel the interest Rates are high.
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6) DO YOU FIND THE LOAN PROCESS LENGTHY AND TIME CONSUMING ?
YES 6 20%
NO 24 80%
TOTAL 30 100%
YES
20%
NO
80%
Out of total 30 people interviewed, majority of respondents (80%) feel that the loan
process is not lengthy and time consuming. Whereas 20% people feel the process lengthy
and time consuming.
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7) BCCB SHOULD TRY TO CONTROL/REDUCE INTEREST RATES OF….?
VEHICLE LOAN 0 0%
BUSINESS LOAN 2 7%
TOTAL 30 100%
HOUSING BUSINESS
20% 7%
EDUCATION
33%
PERSONAL
40%
In the survey while questioning the customers they were asked to give an opinion about
interest rates of which loan product should be controlled/ reduced. Majority of
respondents suggested Personal loan and Education Loan. None suggested vehicle loan.
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8) IN FUTURE IF YOU WANT TO USE ANY LOAN PRODUCT WILL YOU
STICK TO BCCB OR SWITCH TO SOME OTHER BANK ?
YES 28 93%
NO 2 7%
TOTAL 30 100%
OTHER BANK
7%
BCCB BANK
93%
Out of 30 respondents 93% of customers prefer to continue using BCCB loan products.
Hardly 7% people are disappointed with BCCB. This shows that majority of customers
are satisfied with BCCB and are loyal to them.
37
9) HOW WOULD YOU RATE OVERALL SATISFACTION FOR LOANS &
CREDITS PROCEDURE WITH BCCB?
POOR 0%
SATISFIED 3 10%
GOOD 4 13%
EXCELLENT 11 37%
TOTAL 30 100%
SATISFIED
EXCELLENT 10% GOOD
37% 13%
VERY GOOD
40%
The above chart shows that 37% customers have rated BCCB Excellent, 40% Very Good,
13% Good and 10% Satisfied. No one has rated it Poor, which means that people are very
happy with the loans and credit facilities of BCCB.
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HYPOTHESIS TESTING
A.
H0= u1=u2
H1=u1≠u2 = u1-u2>0
Overall ratings given by people to BCCB who find loan process are lengthy & who don’t
find it lengthy.
Yes 4 3 2 2 4 2
No 5 5 4 4 5 5 5 4 3 5 5 5 3 4 5 4 4 5 4 4 5 4 4 3
39
HERE,
1 POOR
2 SATISFIED
3 GOOD
VERY
4 GOOD
5 EXCELLENT
Variable 1 Variable 2
Mean 2.833333333 4.333333333
Variance 0.966666667 0.492753623
Observations 6 24
Hypothesized Mean Difference 0
Df 6
-
t Stat 3.519512478
P(T<=t) one-tail 0.006262978
t Critical one-tail 1.943180281
P(T<=t) two-tail 0.012525955
t Critical two-tail 2.446911851
Since tstat < tcritical
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We accept H0 & reject H1
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Occupation 1 2 4 2 1 3 3 2 1 1 4 2 2 2 2 1 1 1
Satisfaction Rating 5 5 4 4 4 5 5 5 3 4 3 5 5 5 3 4 5 2
No 19 20 21 22 23 24 25 26 27 28 29 30
Occupation 1 1 1 1 2 2 1 1 1 1 1 1
Satisfaction Rating 2 4 4 4 5 4 4 5 4 2 4 3
41
HERE,
SATISFACTION RATING
1 POOR
2 SATISFIED
3 GOOD
4 VERY GOOD
5 EXCELLENT
OCCUPATION
1 SERVICE
2 BUSINESS
3 STUDENT
4 OTHERS
Average of overall
Occupation satisfaction Count of Occupation
SERVICE 3.705882353 17
BUSINESS 4.555555556 9
STUDENT 5 2
OTHERS 3.5 2
Grand Total 4.033333333 30
42
Anova :- Single Factor
SUMMARY
Groups Count Sum Average Variance
Column 1 30 49 1.633333333 0.791954023
Column 2 30 121 4.033333333 0.929885057
ANOVA
Source of
Variation SS df MS F P-value F crit
2.905E-
Between Groups 86.4 1 86.4 100.3578104 14 4.006872886
Within Groups 49.93333333 58 0.86091954
Total 136.3333333 59
Since, probability value of F is more than 0.5 therefore we accept null hypothesis that
there is no impact of occupation on overall customer satisfaction ratings.
43
FINDINGS
BCCB has a self explanatory & systematic loans & credit procedure policy. The
loan procedures are comparatively simple.
A survey study was conducted for BCCB customers and the data collected
indicates that Housing & Personal loans are most preferred products.
The study (Balance Sheet) states that Housing & Personal loans are the most
preferred loans.
Majority of customers rated very good & excellent for satisfaction level of loans
and credits at BCCB, Which highlights customers are happy with BCCB loans
and credit procedure.
Majority of the respondents are customers of BCCB from more than 6 years. This
means they have long term relationship with BCCB.
44
SUGGESTIONS
The Balance sheet of F.Y 2016-17 highlights that majority of customers depend
on BCCB for Housing Loan. Thus, BCCB can try to strategically earn revenue
through Interest rates on Housing loan.
Many young customers from this branch are willing for higher studies which also
includes to study in foreign country. Therefore BCCB should try to attract these
customers for Education loan & thereby earn Foreign Exchange.
Since all the banks are providing loans with the same features. It is recommended
that BCCB should offer some unique features to its products to acquire strong
identity and can be easily distinguished.
Very less people have used Vehicle loan. Therefore BCCB should take necessary
measures to promote Vehicle loan.
45
LIMITATIONS
46
CONCLUSION
The study on BCCB Loans and Credits highlights that BCCB has a systematic
loans and credit policy. Many of the customers are satisfied and happy with the services
provided and thus this shows their long term association and loyalty towards the bank.
Despite the pressure of stiff competition and tighter monetary policies, the bank posted
good growth in deposits, loans, net profit and own funds. Professional management, loyal
and committed staff, trustworthy members and supportive customers and technological
up gradation are the inspiring ingredients contributing to the success of the bank.
47
BIBLIOGRAPHY :-
BOOKS :-
WEBSITES :-
WWW.BCCB.COM
WWW.GOOGLE.COM
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APPENDIX
Name :- _______________________________________
o 18 – 25
o 26 – 35
o 36 – 50
o Above 50
o Service
o Business
o Student
o Others
o Personal Loan
o Housing Loan
o Vehicle Loan
o Education Loan
o Business Loan
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5 . Do you find Interest rates of BCCB high compared to other banks?
o Yes
o No
6 . Did you find the loan process lengthy and time consuming?
o Yes
o No
o Personal Loan
o Housing Loan
o Vehicle Loan
o Business Loan
o Education Loan
8 . In future if you want to use any loan product will you stick to BCCB or switch to
some other bank?
9 . How would you rate overall satisfaction for loans & credits procedure with bccb?
o Poor
o Satisfied
o Good
o Very good
o Excellent
SIGNATURE:-________________
THANK YOU
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