Académique Documents
Professionnel Documents
Culture Documents
UNIVERSITY OF HYDERABAD
SCHOOL OF MANAGEMENT STUDIES
UNDER GUIDANCE OF
Dr .CHETAN SRIVATSAVA
ASSOSIATE PROFESSOR
Declaration
I “K.ADHUKUMAR“, hereby declare that the work presented herein is genuine work done originally
by me and has not been published or submitted Elsewhere for the requirement of a degree program. Any
literature, data or works done by others and cited within this dissertation has been given due acknowledgement
and listed in the reference Section.
K.Madhukumar
Regd No: 15mbma63
MBA(general)
University of Hyderabad
Acknowledgement
We wish to avail this opportunity to express our gratitude to Sri V. Narsireddy garu Chairman of AP
Grameena Vikas Bank permitting us for the project and for providing all the facilities in the Organization and
Mr. B. Manoj Kumar, Regional manager (ashok nagar ) APGVB for providing us extensive support in our
project . Our sincere thanks to Mr.S.Srinivas Murthy (Dean & Head of Placements) and Mrs. Kiranmai
(Assistant professor, coordinator (BIF) & Project guide) for providing all the facilities to carry out the project
work and for their constant encouragement throughout this work. I am also thankful to my project guide
Mrs.Dr.Punam Singh for helping me in completing my project.
Introduction on CRM
Introduction:
Customer Relationship Management (CRM) is defined as “the collection and analysis of information
designed for sales and marketing decision support…to understand and support existing and potential
customer needs. It includes account management, catalog and order entry, payment processing, credits
and adjustments, and other functions.”
The CRM system definition, then, would be a set of software applications that help an
organization determine the needs and preferences of their customers by managing, organizing, tracking
and storing all customer interactions. CRM systems use advanced technology to replace the handwritten,
manual documentation processes of the past. CRM systems allow users to document everything, from
simple contact information to specific conversations with customers.
CRM systems are valuable because the information they provide can help boost the general
business goals of an organization. For instance, if sales consultants know the specific needs and
preferences of their customers, they can deliver a more personalized service creating a more client-
focused environment. CRM systems also provide a central documentation location, allowing employees
across different department’s access to the same information.
You can’t define CRM systems without mentioning some of the key customer management
services and benefits it offers organizations.
Companies that enter to compete in a new market, weaken the existing and solid ones, due to new
ways of doing and conceiving businesses. One of the factors that have driven all these changes is the constant
change and evolution of technology. Because of this reality, the CRM concept has evolved in such a way that
nowadays it must be viewed as a strategy to maintain a long-term relationship with the customers.
A good customer relationship is the key to business success. Relationship building and
management, or what has been labeled as relationship marketing, is a leading approach to marketing. The use of
customer relationship management (CRM) systems is becoming increasingly important to improve customer
life time value.
Understanding the needs of customers and offering value-added services are recognized as factors that
determine the success or failure of companies.
The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior
of customers and the value of those customers. If it works as hoped, a business can provide better customer
service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster,
simplify marketing and sales processes, discover new customers, and increase customer revenues. It doesn't
happen by simply buying software and installing it. For CRM to be truly effective an organization must first
decide what kind of customer information it is looking for and it must decide what it intends to do with that
information. For example, many financial institutions keep track of customers' life stages in order to market
appropriate banking products like mortgages or IRAs to them at the right time to fit their needs. Next, the
organization must look into all of the different ways information about customers comes into a business, where
and how this data is stored and how it is currently used.
1. A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers. This
helps in reduced searching and correlating customers and to foresee customer needs effectively and increase
business.
2. 2. CRM contains each and every bit of details of a customer, hence it is very easy for track a customer
accordingly and can be used to determine which customer can be profitable and which not.
3. 3. In CRM system, customers are grouped according to different aspects according to the type of business they
do or according to physical location and are allocated to different customer managers often called as account
managers. This helps in focusing and concentrating on each and every customer separately. Customer
Relationship Management-A case study on MBL 21
A CRM system is not only used to deal with the existing customers but is also useful in acquiring new
customers. The process first starts with identifying a customer and maintaining all the corresponding details into
the CRM system which is also called an ‘Opportunity of Business’. The Sales and Field representatives then try
getting business out of these customers by sophistically following up with them and converting them into a
winning deal. All this is very easily and efficiently done by an integrated CRM system.
4. The strongest aspect of Customer Relationship Management is that it is very cost-effective. The advantage of
decently implemented CRM system is that there is very less need of paper and manual work which requires
lesser staff to manage and lesser resources to deal with. The technologies used in implementing a CRM system
are also very cheap and smooth as compared to the traditional way of business.
5. All the details in CRM system is kept centralized which is available anytime on fingertips. This reduces the
process time and increases productivity.
6. Efficiently dealing with all the customers and providing them what they actually need increases the customer
satisfaction. This increases the chance of getting more business which ultimately enhances turnover and profit.
7. If the customer is satisfied they will always be loyal to you and will remain in business forever resulting in
increasing customer base and ultimately enhancing net growth of business.
CHAPTER TWO
LITERATURE REVIEW
There is however, a perceived lack of clarity in the definition of customer relationship management,
although all accepted definitions are sharing approximately the same basic concepts: customer relationships,
customer management, marketing strategy, customer retention, personalization (Zineldin 2000). However,
while academics debate the subtitles of various definitions, the practitioners have developed a wealth of
applicative papers analyzing the concrete challenges and opportunities of implementing the systems (Bacuvier
et al. 2001). CRM in some firms is considered as a technology solution, considering of individual databases and
sales force automation tools and sales and marketing functions so as to improve targeting effort. Peppers and
Rogers (1999) argued that other organizations view CRM as a tool, which has been particularly designed for
one-to-one customer communications, which is the function of sales, call centre’s or the marketing departments.
Accordingly Flow and Payne (2004) added that CRM stresses two-way communication from the customer to
the supplier to build the customer over time. The two-way communication has been enhanced greatly by
advances in technology particularly the Internet.
In term of information technology (IT), CRM means an enterprise –wide integration of technologies
working together such as data warehouse, web site, and intranet/extranet, phone support system, accounting,
sales, marketing and production. Kotler (2000) assured that CRM uses IT to gather data, which can then be used
to develop information acquired to create a more personal interaction with the customer. In the long-term, it
produces a method of continuous analysis and reinforcement in order to enhance customer’s lifetime value with
firms. Goldenberg (2000) believes that CRM is not merely technology applications for marketing, sales and
services but rather when it is successfully implemented ; it enables firms to have cross functional , customer-
driven , technology-integrated business process management strategy that maxims relationships. Chin et al
(2003) stated that that due to many technological solutions available for CRM automation, it is often
misconstrued as a piece of technology. But they maintained that in recent times many companies have realized
the strategic importance of CRM, and as a result, it is becoming a business value-effort rather than technology-
centric effort. Using information technology as an enabler, CRM strategy leverages key functional areas to
maximize profitability of customer interactions (Chen and Popovich, 2003). It has been recognized that
technological advancements and innovations , keen competitive marketing environment , coupled with the
internet are main drivers of present and future customer profitability which makes it possible to appropriately
and proportionately allocate firm’s resources to all functional areas that affect customer relationship ( Chou et al
, 2003). For customers, CRM offers customization, simplicity and convenience for completing transactions
irrespective of the kind of channel of interaction used (Gulati and Garino, 2000). Many businesses today realize
the importance of CRM and its potential to help them achieve and sustain a competitive edge (Peppard, 2000).
This view was further boosted by Bose (2002) that as a result of changing nature of the global environment and
competition, firms cannot compete favorably with minor advantages and tricks that can easily be copied by
competing firms.
The implementation of CRM is an enabled opportunity to rise above minor advantages with real focus
on developing actual relationships with customers. Firms those are most successful at delivering what
customers want are the more likely to be leaders of the future.
Customer Relationship Management (or CRM) is a phrase that describes how your business interacts
with your customers. Most people think of CRM as a system to capture information about your customers.
However, that is only part of the picture. CRM involves using technology to gather the intelligence you need to
provide improved
support and services to your customers. In other words, CRM is also about what you do with that information to
better meet the needs of your existing customers and identify new customers, resulting in higher profits for you.
THE CRM BUILDING BLOCKS:
A strategy for applying the analysis to better meet your clients’ needs and identify
potential customers.
One of the major benefits in mapping out your CRM plan with increased customer satisfaction as your
primary goal is the fact that all other goals and objectives will invariably support this effort. In this way, each
method that you use or measure that you take will share a symbiotic relationship with the rest. As a result, all of
your investments in CRM will be supporting your goals in a balanced and seamless fashion.
This is additionally a very proactive form of reputation management, both online and off and thus, it
is certainly a worthwhile goal to pursue. As an added benefit, some of the most innovative efforts to improve
the overall efficiency of your business can also support the branding process. Showing yourself as being
transparent, easy to connect with and ready to provide rapid support and services will foster the development of
a strong and appealing brand image. Given that branding is one of the most costly and time-consuming aspects
of building your business and garnering more attention for it, seeking to improve overall efficiency in a way
that will foster a better reputation is a vital addition to your top CRM objectives and goals.
Having goals like this one as part of your CRM plan is also a great way to devise a system that is
wholly self-supporting in the financial sense. By streamlining your marketing efforts for faster and increased
conversions, you can cut costs in a number of areas while increasing your profits. Moreover, all of your new
and most recent converts can be quickly funneled into a system that allows you to keep in touch and to keep
your services and products fresh in their minds. This ensures that your CRM budget is never exhausted.
More importantly, CRM will give you a guideline for any professional development plans that you
wish to implement and make mandatory among all employees. The data that your CRM system collects can be
used as part of employee reviews and employee rewards or incentive programs. Tracking customer feedback in
relation to the workers who have supplied customer service will allow you to make highly informed hiring,
firing and promotion decisions. It will also give you an in-depth guide for sharing with any Recruitment
agencies that you are working with or for bolstering your own in-house recruitment teams.
Many companies are heavily reliant upon cloud-based and integrated systems. With knowledge sharing
solutions, you can get optimal benefits from each and every aspect of these endeavors. Best of all, with goals
that foster and support each other as the basis of this system, each of your investments in CRM is guaranteed to
provide phenomenal returns. After having determined your CRM objectives and goals, you will need to start
looking for the right tools and resources for bringing these to fruition.
CHAPTER FOUR
COMPANY PROFILE
APGVB FORMATION
By amalgamation, on the 31st March 2006, of the following 5 banks, sponsored by SBI, to participate
more energetically, with synergy, in the uplift and development of Rural Farm Sector and Rural Non-Farm
Sector, with emphasis on the deprived, the Rural Poor, Rural ISB and Rural Crafts.
1. Sri Visakha Grameena Bank:
Established on 30.09.1976
2. Nagarjuna Grameena Bank:
Established on 30.04.1976
3. Sangameswara Grameena Bank:
Established on 31.03.1982
4. Manjira Grameena Bank:
Established on 31.03.1982
5. Kakathiya Grameena Bank:
Established on 28.06.1982
It is established under parliament act namely Regional rural bank act 1976 and is a
100% government bank promoted jointly by Govt. of India, Govt. of Telangana, Govt. of Andhra Pradesh and
State bank of India. APGVB is included under second schedule of RBI Act and is equal to any public sector /
Nationalized bank in India in terms of statutory and regulatory provisions of banking regulation act. Its main
motto is to participate more energetically, with synergy, in the uplift and development of Rural Farm Sector and
Rural Non-Farm Sector, with emphasis on the deprived, the rural por, Rural ISB and Rural Crafts. The APGVB
is growing with consistent performance from branch level to Regional level. During the year 2011-12, the focus
of the bank has been spread across many areas in business development. The most significant of them are
structural adjustment in deposits portfolio for sustainable business growth. The increased lending to SHGs and
small farmers and data corrections in CBS to rectify Technical CRM for implementation of system generated
CRM. The vision is repositioning the bank in competitive rural market to accomplish the leadership spot in
Rural Banking, Aspiring to realize the vision of excelling in rural Credit and SME, Pursuing the best practices
for delivering the value added service to the customers by transforming the key branches into profit and
business centers. The mission of the bank with efficiency and service to each one of us works in tandem to
deliver the quality rural services, no matter where our customers choose to experience it, With the advantages of
a large network in the rural hinterland, the deprived and denied, retail and agriculture sectors through improved
processes, deployment of technology, with an emphasis of employment of rural youth, augmentation of
agricultural production, up liftment of the down trodden and unabated service to the rural poor with
commitment to the sacred task of rural development and women empowerment. The paper throws light in the
various aspects of APGVB such as branch wise development, APGVB financial performance, classification of
assets Recovery, Profitability etc. In terms of adapting the technology in our bank is far ahead of others. All our
branches are functioning in core banking solutions (CBS) environment since November 2009 our bank has also
adapted latest Rupay technology. Interbank remittance through NEFT/RTGTS has also been enabled, through
which our banks customers can transfer money to the account of any other commercial bank like SBI,
CORPORATION Bank etc. The APGVB is also awarded with the following awards such as
1. “Best IT Driven Innovations in banking” from NASSCOM.
2. Excellence in banking (Financial Inclusion leveraging bio metric technology and business
leadership) platinum award from SKOCH consultancy services.
Total number of districts covered under states of Telangana and Andhra Pradesh
no of branches
800 704 728
700 638
538 553 574
600 527
483 483
500
400
300
200
100
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
By the above diagram we can say that the major part of the AP Grameena Vikas bank has spread in the rural
sector with about 72% covering more than 500 branches. And it also spread to the areas of semi urban and
urban with about 190 branches among 8 districts in the states of Telangana and Andhra Pradesh.
LOCATION OF APGVB
Headquarters
Warangal, Telangana
Ownership
Mission
With efficiency and service each one of us works in tandem to deliver the quality rural service, no matter where
our customers choose to experience it. With the advantage of a large network in the rural hinterland, it is our
duty and obligation to serve the rural masses, the deprived and denied, retail and agriculture sectors through
improved processes, deployment of technology, with an emphasis of employment of rural youth, augmentation
of agricultural production, up liftment of the down trodden and unabated service to the rural poor with
commitment to the sacred task of rural development and women empowerment
Values
Profit orientation
Commitment for rural development
Excellence in customer service
Respect to systems and procedures
Team Synergy
5000
4000
3000
2000
1000
0 April
May- Jun- Aug- Sep- Nov- Dec- Jan- Feb- Mar-
Jul- Oct-
-14 14 14 14 14 14 15 15
14 14 15
14
This growth in deposits assumes greater importance. There has been a consistent growth on month to month
basis except a marginal negative growth of Rs 24 Crore as on 30.4.14. Retail deposits constitute88% of total
deposits as on 31.3.2015. The Branches have been motivated to mobilize substantial retail deposits and
discouraged offering premium rates on bulk deposits.
Product features:
The facility of Savings Bank Account is meant for cultivating the habit of saving by the individuals for their
future needs. The transactions in the SB Account should be of non-business and noncommercial nature.
Current account
Convenient for business people, traders etc., to have Current Account. Withdrawals and deposits can be
made in Current Account any number of times. Current Account is not for saving or earning
Interest unlike Savings Bank. Convenience of the customer in parking his liquid funds for any time withdrawal
is the primary objective Product features. An individual who has attained majority (singly or jointly), HUL, all
legal business entities and companies, other bodies like Clubs, Trusts, Government Departments etc. Rate of
Interest – No interest (as per RBI directives) Nomination facility - available. Cheque Book facility - available
(For minimum balance and service charges for not maintaining minimum balance, refer Service Charges)
Standing instructions from the customers - executed.
Convenient for business people, traders etc., to have Current Account. Withdrawals and deposits can be
made in Current Account any number of times. Current Account is not for saving or earning interest unlike
Savings Bank. Convenience of the customer in parking his liquid funds for any time withdrawal is the primary
objective.
Product features:
Eligibility: An individual who has attained majority (singly or jointly), HUL, all legal business entities
and companies, other bodies like Clubs, Trusts, Government Departments.
Rate of Interest – No interest (as per RBI directives)
Nomination facility - available.
Cheque Book facility – available (For minimum balance and service charges for not maintaining
minimum balance, refer Service Charges)
Standing instructions from the customers - executed.
Term deposits
An amount up to Rs1 lakh for a fixed period of 5 years invested under this Tax Saving Fixed Deposit is
eligible for deduction from income under Section 80 (C) of Income Tax Act. Fixed Deposits (or Term Deposits)
are accepted for any period between 15 days to 10 years) with attractive interest rates.
Any number of Term Deposit Accounts can be opened with a minimum amount of Rs 100/- with auto renewal
facility.
Product features:
Eligibility: An individual who has attained majority (singly or jointly with an adult or minor) or even a
minor represented by the Guardian, , HUL, all legal business entities and companies, other bodies like
Clubs, Trusts, Government Departments etc.
Nomination facility - available.
Auto renewal facility and premature closure of the Account – available
Standing instructions from the customers - executed.
Vikas Bahia Tharaka – A Tax Saving Fixed Deposit - An amount up to Rs 1 lakh for a fixed period of 5
years invested under this Tax Saving Fixed Deposit, is eligible for deduction from income under Section
80 (C) of Income Tax Act.
Saving every month a specified amount for a specified period of one year and above is the main feature of
Recurring Deposit Account, which otherwise is similar to Fixed Deposit. Best suited for salaried people and
regular income groups. All other features are as applicable to Fixed Deposit Account saving every month a
specified amount for a specified period of one year and above is the main feature of Recurring Deposit Account,
which otherwise is similar to Fixed Deposit. Best suited for salaried people and regular income groups.
Saving every month a specified amount for a specified period of one year and above is the main feature of
Recurring Deposit Account, which otherwise is similar to Fixed Deposit. Best suited for salaried people and
regular income groups. All other features are as applicable to Fixed Deposit Accounts.
The country had no central bank prior to the establishment of the RBI. The RBI is the supreme
monetary and banking authority in the country and controls the banking system in India. It is called the Reserve
Bank’ as it keeps the reserves of all commercial banks.
Commercial Banks:
Commercial banks mobilize savings of general public and make them available to large and small
industrial and trading units mainly for working capital requirements.
Commercial banks in India are largely Indian-public sector and private sector with a few foreign banks. The
public sector banks account for more than 92 percent of the entire banking business in India—occupying a
dominant position in the commercial banking. The State Bank of India and its 7 associate banks along with
another 19 banks are the public sector banks.
These banks have a paid-up capital and reserves of an aggregate value of not less than Rs.5lakhs, hey have to
satisfy the RBI that their affairs are carried out in the interest of their depositors.
All commercial banks (Indian and foreign), regional rural banks, and state cooperative banks are
scheduled banks. Non- scheduled banks are those which are not included in the second schedule of the RBI Act,
1934. At present these are only three such banks in the country.
1970s (sponsored by individual nationalized commercial banks) with the objective of developing rural economy
by providing credit and deposit facilities for agriculture and other productive activities of all kinds in rural
areas.
Agricultural labourers, rural artisans and other small entrepreneurs in rural areas. The emphasis is on
providing such facilities to small and marginal farmers,
(ii) their lending rates cannot be higher than the prevailing lending rates of cooperative credit
societies in any particular state; (iii) the paid-up capital of each rural bank is Rs.25 lakh, 50 percent o
(ii) f which has been contributed by the Central Government, 15 percent by State Government and 35
percent by sponsoring public sector commercial banks which are also responsible for actual setting
up of the RRBs.
These banks are helped by higher-level agencies: the sponsoring banks lend them funds and advise and train
their senior staff, the NABARD (National Bank for Agriculture and Rural Development) gives them short-term
and medium, term loans: the RBI has kept CRR (Cash Reserve Requirements) of them at 3% and SLR
(Statutory Liquidity Requirement) at 25% of their total net liabilities, whereas for other commercial banks the
required minimum ratios have been varied over time.
Cooperative Banks:
Cooperative banks are so-called because they are organized under the provisions of the Cooperative
Credit Societies Act of the states. The major beneficiary of the Cooperative Banking is the agricultural sector in
particular and the rural sector in general.
The cooperative credit institutions operating in the country are mainly of two kinds: agricultural
(dominant) and non-agricultural. There are two separate cooperative agencies for the provision of agricultural
credit: one for short and medium-term credit, and the other for long-term credit. The former has three tier and
federal structure.
At the apex is the State Co-operative Bank (SCB) (cooperation being a state subject in India), at the
intermediate (district) level are the Central Cooperative Banks (CCBs) and at the village level are Primary
Agricultural Credit Societies (PACs).
Long-term agriculture credit is provided by the Land Development Banks. The funds of the RBI meant
for the agriculture sector actually pass through SCBs and CCBs. Originally based in rural sector, the
cooperative credit movement has now spread to urban areas also and there are many urban cooperative banks
coming under SCBs
CHAPTER FOUR
RESEARCH METHODOLOGY
systematized effort to gain new knowledge” It is a focused identification for search of new facts in any branch
of knowledge.
To find out the factors that influences the buying decision of an APGVB service.
To identify and study the problems faced by the consumers at APGVB SERCIVES.
RESEARCH METHODOLOGY
1. Primary data
2. Secondary data
Primary data
Primary data needs the personal efforts to collect it and are not readily available.
A) Questionnaires: It consists of series of questions on a sheet of paper and was given to the
B) Direct interviewing: It involves the process where I asked the questions directly to the customers
Secondary data
Secondary data are the other important sources through which the data was collected.
These are the readily available sources of the data where one had need not put his efforts to
collect, because it is already been collected and part in an elderly manner by some expert and specialists
.The secondary data was collected through text books, internet, newspaper, and business magazines.
Sample size
By using random sampling technique 50 respondents are selected for the purpose of study.
Statistical tools
The statistical tools used for study are simple average and percentage.
LIMITATIONS
As the time given for the completion of the project was limited.
They may be few opinions, which might have been missed out.
The accuracy of the analysis and conclusion drawn entirely depends upon the reliability of the
In the fast moving/changing employees behavior, name new better things may emerge in the near
DATA ANALYSIS
Today, many businesses such as banks, insurance companies, and other service providers
realize the importance of Customer Relationship Management (CRM) and its potential to help them
acquire new customers retain existing ones and maximize their lifetime value. At this point, close
relationship with customers will require a strong coordination between IT and marketing
departments to provide a long-term retention of selected customers. This paper deals with the role
of Customer Relationship Management in banking sector and the need for Customer Relationship
Management to increase customer value by using some analytical methods in CRM applications.
The subject of analysis is APGVB (Andhra Pradesh Grameena Vikas Bank) which is a government
sector bank which mainly caters to the needs of agricultural community. The data that has been
collected from the customers through survey is subject to analysis to study the bank’s effectiveness
and responsiveness in addressing the customer issues.
Total no of people YES (in numbers) NO(in numbers)
50 25 25
From a sample of 50 persons who are the customers of the bank only 50 PERCENT the people
chose YES and it shows the shortfall in the bank ability to cater to the needs of its customers.
24%
41%
35%
The bank’s operations are majorly deal with loan facilities to its
customers. The O/D facilities and the ATM are also giving the customers benefits to a
considerable extent. It may be necessary in future that the bank create other facilities which may
attract more number of customers.
3) When you think of your bank what comes first to your mind ?
6 yes no yes No No
7 no no yes No Yes
9 yes no yes No No
10 no yes no Yes No
total 6 4 8 5 4
PIE CHART
total
15%
22%
Personalized service
Wide branch network
18% Customer service
15% Computerized banking
Core banking
30%
Interpretation: The customers of APGVB bank out 10 people 6 people are satisfied with
personalized service. 4 people are satisfied with branch networking .8 people are happy with the
customer service, 5 people are satisfied with computerized banking services and 4 people are
satisfied with the core banking facilities.
22% personalized service
15% wide branch network
30% customer service
18% computerized service
15% core banking
LOAN PROCEDURE OF APGVB
Branch
Sanctioning and
Supervision Disbursing documentation Decision Level
of the loan Loan
of loan
Recovery of credit: Credit recovery of APGVB during the past few years is increasing gradually, which
indicates APGVB recovery policy is very good, hence this reduces CRM.
Credit risk management process of APGVB used is very effective as compared with other banks.
Project Findings: It reveals that APGVB is sanctioning less credit to vehicle and personal loans as
compared to other banks.
Modern banking service like online Banking, wide range of ATM service, and one stop banking service
are available.
The number of employee is not enough according to the total customer it serves through its all branches.
Recommendations:
The recommendations to improve the customer service and customer satisfaction so that customers
will give more preference to APGVB.
APGVB is complying with the credit policy guidelines issued by RBI and it should maintain it in the same way.
APGVB’s lending capacity is good when compared to other banks but it should also keep into consideration of
the risk factors involved in lending loans. By considering the risk factor it would be able to control or reduce its
bad loans.
Banks has to grant the loans for the establishment of business at a moderate rate of interest, because of this,
the people can repay the loan amount to bank regularly and promptly.
Bank should not issue entire amount of loan to agriculture sector at a time, it should release the loan in
installments. If the climatic conditions are good then they can release remaining amount.
The manager should keep on revising its Credit Policy, which will help Bank’s effort to correct the course of the
policies. The Chairman and Managing Director/Executive Director should made modifications to the procedural
guidelines required for implementation of the Credit Policy as they may become necessary from time to time
because of organizational needs.
ATM booths should be increased
More research and innovative ideas should be made.
Website of APGVB need to be enriched.
Continuous improvement should be made in the lending procedure which would reduce the default risk
of the bank and increase profitability.
All the branches should be computerized.
Proper Infrastructure should be maintained in branches.
CONCLUSION
From the practical implementation of customer dealing procedure during the whole period of my
practical orientation in APGVB I have reached a firm and concrete conclusion in a very confident way. I
believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build
up an effective and efficient banking system to the highest desire level computerized transaction is a must.
Besides, proper training should be given to enhance the quality of the bank staff at all levels of organization.
Success in the banking business largely depends on effective lending. Less the amount of loan losses, the more
the income will be from Credit operations. The more the income from Credit operations the more will be the
profit of the APGVB Limited. APGVB Ltd seems to have acceptable level of satisfaction with its customers.
The all three CRM factors Communication, interpersonal relationship and Efficiency of banking service seem
important since all these have moderate relationship with Service Quality. To improve the all three CRM factors
Communication, interpersonal relationship and Efficiency Bank should arrange Employee Training so that
Employee can improve themselves in those three CRM factors.
It can be argued that this report can become useful to explain the banking practices that are followed
by the APGVB Ltd. and also attempt to harmonize and link the theoretical knowledge, acquired in the MBA
program, with the experience gathered in the period of practical orientation.
APGVB bank is well prepared to and capable of meeting the demand for a broad range of banking
services. It has got adequate resources, both human and physical, to provide the customers with the best
possible services. APGVB bank has already developed goodwill among its client by offering its excellent
services. This success has resulted from the dedication, commitment and dynamic leadership of its management
over the periods. But they must concentrate more on customer oriented services and provide better
technological advancement relating to banking activities.
2) Occupation(optional):
3) Annual income(optional):
(a) Current [ ] (b) savings [ ] (c) loan a/c [ ] (d) demit a/c [ ] (e) credit card [ ]
9) Does your bank have core banking facility for the customers?
10) When you think of your bank, what comes first in your mind?
11) Do they charge unnecessarily fot not maintaining minimum balance in your account?