bbm final project work
TRANSCRIPT
Credit Card
The concept of using a card for purchases was described in 1887 by Edward
Bellamy in his utopian novel Looking Backward. Bellamy used the term credit
card eleven times in this novel
The modern credit card was the successor of a variety of merchant credit schemes.
It was first used in the 1920s, in the United States, specifically to sell fuel to a
growing number of automobile owners. In 1938 several companies started to
accept each other's cards. Western Union had begun issuing charge cards to its
frequent customers in 1921. Some charge cards were printed on paper card stock,
but were easily counterfeited.
The Charga-Plate was an early predecessor to the credit card and used during the
1930s and late 1940s. It was a 2 1/2" x 1 1/4" rectangle of sheet metal, similar to a
military dog tag, that was embossed with the customer's name, city and state (no
address). It held a small paper card for a signature. It was laid in the imprinter first,
then a charge slip on top of it, onto which an inked ribbon was pressed. Charga-
Plate was a trademark of Farrington Manufacturing Co. Charga-Plates was issued
by large-scale merchants to their regular customers, much like department store
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credit cards of today. In some cases, the plates were kept in the issuing store rather
than held by customers. When an authorized user made a purchase, a clerk
retrieved the plate from the store's files and then processed the purchase. Charga-
Plates speeded back-office bookkeeping that was done manually in paper ledgers
in each store, before computers.
The concept of customers paying different merchants using the same card was
invented in 1950 by Ralph Schneider and Frank X. McNamara, founders of Diners
Club, to consolidate multiple cards. The Diners Club, which was created partially
through a merger with Dine and Sign, produced the first "general purpose" charge
card, and required the entire bill to be paid with each statement. That was followed
by Carte Blanche and in 1958 by American Express which created a worldwide
credit card network.
Bank of America created the Bank Americard in 1958, a product which, with its
overseas affiliates, eventually evolved into the Visa system. MasterCard came to
being in 1966 when a group of credit-issuing banks established Master Charge; it
received a significant boost when Citibank merged its proprietary Everything Card,
launched in 1967, into Master Charge in 1969. The fractured nature of the U.S.
banking system meant that credit cards became an effective way for those who
were traveling around the country to move their credit to places where they could
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not directly use their banking facilities. In 1966 Barclaycard in the UK launched
the first credit card outside of the U.S.
There are now countless variations on the basic concept of revolving credit for
individuals (as issued by banks and honored by a network of financial institutions),
including organization-branded credit cards, corporate-user credit cards, store
cards and so on.
In contrast, although having reached very high adoption levels in the US, Canada
and the UK, it is important to note that many cultures were much more cash-
oriented in the latter half of the twentieth century, or had developed alternative
forms of cash-less payments, such as Carte bleue or the Eurocard (Germany,
France, Switzerland, and others). In these places, the take-up of credit cards was
initially much slower. It took until the 1990s to reach anything like the percentage
market-penetration levels achieved in the US, Canada, or the UK. In many
countries acceptance still remains poor as the use of a credit card system depends
on the banking system being perceived as reliable.
In contrast, because of the legislative framework surrounding banking system
overdrafts, some countries, France in particular, were much faster to develop and
adopt chip-based credit cards which are now seen as major anti-fraud credit
devices.
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The design of the credit card itself has become a major selling point in recent
years. The value of the card to the issuer is often related to the customer's usage of
the card, or to the customer's financial worth. This has led to the rise of Co-Brand
and Affinity cards - where the card design is related to the "affinity" (a university,
for example) leading to higher card usage. In most cases a percentage of the value
of the card is returned to the affinity group.
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CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends on the offer's performance in
relation to the buyer's expectations. In general, satisfaction is a person's feelings of
pleasure or disappointment resulting from comparing a product's perceived
performance (or outcome) in relation to his or her expectations. If the performance
falls short of expectations, the customer is dissatisfied. If the performance matches
the expectations, the customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied or delighted
CUSTOMER EXPECTATIONS
How do buyers form their expectations? From past buying experience, friends' and
associates' advice, and marketers' and competitors' information and promises. If
marketers raise expectations too high, the buyer is likely to be disappointed.
However, if the company sets expectations too low, it won't attract enough buyers
(although it will satisfy those who do buy). Some of today's most successful
companies are raising expectations and delivering performances
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Measuring customer satisfaction a company would be wise to measure customer
satisfaction regularly because one key to customer retention is customer
satisfaction. A highly satisfied customer generally stays loyal
Longer, buys more as the company introduces new products and upgrades existing
products, talks favorably about the company and its products, pays less attention to
competing brands and is less sensitive to price, offers product or service ideas to
the company, and costs less to serve than new customers because transactions are
routine. The link between customer satisfaction and customer loyalty, however, is
not proportional. Suppose customer satisfaction is rated on a scale from one to five.
At a very low level of customer satisfaction (level one), customers are likely to
abandon the company and even bad-mouth it. At levels two to four, customers are
fairly satisfied but still find it easy to switch when a better offer comes along. At
level five, the customer is very likely to repurchase and even spread good word of
mouth about the company. High satisfaction or delight creates an emotional bond
with the brand or company, not just a rational preference (For customer satisfaction
surveys, it's important that companies ask the right questions. Frederick Reichheld
suggests that perhaps only one question really matters: "Would you recommend
this product or service to a friend?" He maintains that marketing departments
typically focus surveys on the areas they can control, such as brand image, pricing,
and product features. According to Reichheld, a customer's willingness to
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recommend to a friend results from how well the customer is treated by front -line
employees, which in turn is determined by all the functional areas that contribute
to a customer's experienced
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ORIGIN OF THE TERM BANK
The word “bank” is derived from the Italian word “banco”, the Latin word
“bancus” and the French word “banque”, which mean a bench. They are of the
opinion that the medieval European bankers (i.e., money changers and money
lenders) transacted their banking activities, viz., money changing (i.e., exchanging
one currency for another) and money lending, by displaying coins of different
countries, and of different denominations in big heaps on the benches in the market
places. As such, the word “bank” should be associated with Italian word “banco”.
According to others, the term “bank” is derived from the German word
“banck”, which means a joint stock fund or a common fund (i.e., a heap of money)
rose from a large number of members of the public. They contend that the early
European bankers raised a common fund or heaps of money from the public for the
purpose of financing the needy. As banks deal in common fund or heaps of money
raised from the public, the term “bank” should be traced to the German word
“banck”.
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Of these two views, the latter view seems to be more convincing, because the
word ‘bank’ is, generally, associated with an institution dealing in money raised
from the public.
MEANING OF BANK
A bank is an institution which deals with money and credit. It accepts
deposits from the public, makes the funds available to those who needs them, and
helps in the remittance of money from one place to another. In fact modern bank
performs such a variety of functions that is difficult to give precise and general
definitions to it. It is because of this reason that different economies give different
definitions of the bank.
DEFINITION OF THE TERM BANK OR BANKER
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Walter Leaf’s Definition
Walter Leaf defines a bank as” A person or corporation which holds itself out to
receive from public deposits payable on demand or by cheque”.
Paget’s definition:
Sir John Paget says, “No person or body corporate or otherwise can be banker
who does not take deposit accounts, take current accounts, issue and pay cheques
and collect cheques crossed and uncrossed for his customers”. He further adds,”
One claiming to be a banker must profess himself to be one, the public must accept
him as such and finally banking should be his main business”. According to this
definition, the essential features of a banker are:
1. Acceptance of deposits of money on deposit and current accounts.
2. Repayment of those deposits.
3. Collection of cheques for customers.
4. Performance of banking business as the main business.
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IMPORTANCE OF BANKS IN THE MODERN ECONOMIC DEVELOPMENT
Importance of banks in the modern economic development of a country,
they touch almost every aspect of the modern economy. According to Schumpeter,
“The banking system is one of the two key agents (the other being
entrepreneurship) in the whole process of development. The economic importance
of banks is as follows:
a) Banks mobilize the small, scattered and idle savings of the people and make
them available for productive purposes. In short, they help the process of
capital formation.
b) By offering attractive interest on the savings of the people deposited with
them, banks promote the habit of thrift and savings among people.
c) By accepting the savings of people, banks provide safety and security to the
surplus money of the depositors.
d) Banks provide a convenient and economical means of payment. The cheque
system introduced by banks is of great help for making payments.
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e) Banks provide a convenient and economic transfer of funds from one place
to another. Bank drafts or demand drafts are commonly used for remittance
of funds from one place to another.
f) Banks help the movement of funds from region whether they are not very
useful to regions where they can be more usefully employed.
g) Banks influence the rate of interest in the money market. Through the supply
of money (i.e. bank money or credit money), banks exert a powerful;
influence on the interest rates in the money market.
h) Banks help trade and commerce, industry and agriculture by meeting their
financial requirements.
i) Banks direct the flow of funds into productive channels.
j) Through the process of creation of money, banks acquire control over the
supply of money in the country.
k) Today, banks have attained very great importance. They would not have
been as importance as they are today, if they are merely financial
intermediaries linking lenders and borrowers. It is their ability to
manufacture money that has made them very important. In the process of
linking lenders and borrowers, they manufacture money (i.e. bank money or
credit money) by lending several times the cash deposits they receive.
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Thus banks are useful in several ways. We can conclude that a strong and sound
banking system is indispensable for the economic development of any country.
India has a well developed banking system. Most of the banks in India were
founded by Indian entrepreneurs and visionaries in the pre-independence era to
provide financial assistance to traders, agriculturists and budding Indian
industrialists. Indian banks have played a significant role in the development of
Indian economy by inculcating the habit of saving in Indians and by lending
finance to Indian industry.
The commercial banking structure in India consists of: scheduled commercial
Banks and unscheduled Banks. Schedule commercial Banks constitute those banks,
which have been included in the second schedule of Reserve Bank of India (RBI)
Act, 1934. RBI includes only those banks in this schedule, which satisfy the
criteria laid down vide section 42 (6) (a) of the Act.
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Indian banks can be broadly classified into nationalized banks/public sector
banks, private banks and foreign banks.
Nationalized Banks in India
Banking System in India is dominated by nationalized banks. The
nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then
prime minister. The major objective behind nationalization was to spread banking
infrastructure in rural areas and make available cheap finance to Indian farmers.
Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI)
was the only public sector bank in India. SBI was nationalized in 1955 under the
SBI Act of 1955.
The second phase of nationalization of Indian banks took place in the year 1980.
Seven more banks were nationalized with deposits over 200 crores.
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List of Public Sector Banks in India is as follows:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab and Sind Bank
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India (SBI)
State Bank of Indore
State Bank of Mysore
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State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
Private Banks in India
All the banks in India were earlier private banks. They were founded in the pre-
independence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role
in the banking structure. Private sector banking in India received a filip in 1994
when Reserve Bank of India encouraged setting up of private banks as part of its
policy of liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in
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principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them
to become more competitive
Major Private Banks in India are:
AXIS Bank
Bank of Rajasthan
Bharat Overseas Bank
Catholic Syrian Bank
Centurion Bank of Punjab
Dhanalakshmi Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
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IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank
SBI Commercial and International Bank
South Indian Bank
United Western Bank
YES Bank
Foreign Banks in India
Foreign banks have brought latest technology and latest banking practices
in India. They have helped made Indian Banking system more competitive and
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efficient. Government has come up with a road map for expansion of foreign banks
in India.
The road map has two phases. During the first phase between March 2005 and
March 2009, foreign banks may establish a presence by way of setting up a wholly
owned subsidiary (WOS) or conversion of existing branches into a WOS. The
second phase will commence in April 2009 after a review of the experience gained
after due consultation with all the stake holders in the banking sector. The review
would examine issues concerning extension of national treatment to WOS, dilution
of stake and permitting mergers/acquisitions of any private sector banks in India by
a foreign bank.
Major foreign banks in India are:
ABN-AMRO Bank
Abu Dhabi Commercial Bank Ltd.
American Express Bank Ltd
BNP Paribas
Citibank
DBS Bank Ltd
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Deutsche Bank
HSBC Ltd
Standard Chartered Bank
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Corporation Bank, the oldest banking institution in the erstwhile undivided
Dakshina Kannada District of Karnataka and one of the oldest banks in India, was
founded in 1906 in the Temple Town of Udupi, by a small group of philanthropists
led by Khan Bahadur, Haji Abdulla, and Haji Kasim Saheb Bahadur. The need to
start this bank was felt because there was no such facility at Udupi, an important
trading centre next to Mangalore in D.K. District. The indigenous banking was
largely in the hands of a few rich private individuals and something had to be done
to provide relief to the common man from the clutches of the money lenders who
held full sway. The first branch of a modern bank established in the district was the
Bank of Madras, one of the three Presidency Banks, which set up its office in
Mangalore in 1868 largely to cater to the business needs of a few British firms
dealing in export of plantation products. Its agent used to visit Udupi once a
fortnight or so, to do banking. Money remittances had to be made only through
postal medium.
To overcome these drawbacks and also to provide banking facilities for Udupi in
particular and the district in general, a cosmopolitan group of philanthropists led by
Haji Abdulla Saheb made a bold venture to start this institution. What inspired the
founding fathers was the fervour of Swadeshism. For promoting the Bank , the
Founder President made an appeal saying , " The primary object in forming the
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‘Corporation' is not only to cultivate habits of thrift amongst all classes of people ,
without distinction of caste or creed, but also habits of co-operation amongst all
classes. This is ‘Swadeshism', pure and simple and every lover of the country is
expected to come forward and co-operate in achieving the end in view."
"The Canara Banking Corporation (Udupi) Ltd.," as the institution was called then,
started functioning as a ‘Nidhi' with a humble beginning. The initial capital was
Rs.5000/- and at the end of the first day, its resources stood at 38 Rupees - 13
Annas and 2 Pies. The setting up of the Canara Banking Corporation Ltd. seems to
have given a fillip to co-operative Banking and also to regular banking elsewhere
in the district. Between 1909 and 1917, six co-operative banks came into being and
during the decade immediately after the First World War (1914-18) South Kanara
gave birth to as many as eight banks. It is to the credit of this Bank that despite two
world wars, economic depression and stiff competition, the Bank not only quite
survived, but also made satisfactory progress. Having been started at Udupi, the
Bank first branched out by opening a branch at Kundapur in 1923. The second
branch of the Bank was opened in Mangalore at Car Street in 1926. The Bank
stepped into Kodagu District in 1934 by opening its seventh branch in Madikeri. In
1937, the Bank was included in the second schedule of Reserve Bank of India Act,
1934. In 1939, the Bank's name changed from "Canara Banking Corporation
(Udupi) Ltd." to "Canara Banking Corporation Ltd." The Bank graduated into a
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Regional Bank in 1945 when the total number of its branches stood at 28. In the
year 1961, it took over ‘Bank of Citizens, Belgaum.' In the same year, the Bank's
Administration Office shifted from Udupi to Mangalore.
The second change in the name of the Bank occurred in 1972, from ‘Canara
Banking Corporation Ltd' to ‘Corporation Bank Limited.' The Bank was
nationalized in 1980 along with 5 other private sector banks. After nationalization,
the pace of growth of the Bank accelerated and it made
All-round progress. Started as a common man's bank, it changed with the times to
meet the aspirations of the people but never swerved from its motto- "Sarve Janah
Sukhino Bhavantu" meaning Prosperity for All. It endeavored and succeeded in
striking a right balance between traditional values and innovative approach,
personalized service and professional outlook and commercial considerations and
public concern. One of the unique achievements of the Bank is that it has been
paying dividend continuously for the last 98 years since its inception. Today, with
the most modern technology-driven products and services and nationwide branches
& ATMs, Corporation Bank stands tall among the Public Sector Banks in the
country and is hailed as one among the well-managed Public Sector Banks with
excellent track record in all the key parameters of banking. The Bank has the
second largest ATM network in the public sector.
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Corporation Bank has completed 100 years of its purposeful and fruitful existence
on 12th March, 2006. The Centenary celebrations were launched by Shri V.
Leeladhar, Deputy Governor, Reserve Bank of India with the Bank's Foundation
Day lecture on 12th March, 2005.As a part of the Bank's centenary celebrations, a
number of programmes and projects were planned and executed. As a first step, the
Bank has launched the Corp Kissan Card - debit card tied up with VISA
international,, to enable the farmers make timely purchases for agricultural
operations at Yeshwantpur-Malur in Kolar District on 13th March 2005. A modern
public library was dedicated to the citizens of Mangalore in DK District, the birth
place of the Bank by Shri P. Chidambaram, Hon'ble Union Finance Minister on
12th March, 2006. The library building also houses a Numismatic Museum and a
multi purpose hall for intellectual activities. The Bank has also set up libraries in
25 villages and given away scholarship to 100 meritorious students of such villages
for the pursuit of their higher education.
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Mission Statement
To become a provider of World - Class Financial Services
To meet Customer expectations through Innovation and Technological
Initiatives
To emerge as a Role Model with distinct culture identity, ethical values and
Good Corporate Governance
To enhance Shareholder's Wealth by sustained, profitable and financially
sound growth with prudent risk management systems
To fulfill national and social obligations as a responsible Corporate citizen
To create an environment, intellectually satisfying and professionally
rewarding to the employees.
Vision Statement
“To emerge as the most preferred Bank with global standards in financials,
efficiency, technology, products and services”.
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CHAIRMAN & MANAGING DIRECTOR
EXECUTIVE DIRECTOR
GENERAL MANAGER (MKTG, R&D)
GENERAL MANAGER (CREDIT POLICY, PLANNING &SANCTIONS)
GENERAL MANAGER (DEVELOPMENT OF PRIORITY SECTORS& RETAIL LENDING)
GENERAL MANAGER (INVESTMENTS)
GENERAL MANAGER (HRM)
GENERAL MANAGER (FINANCIAL MGT)
GENERAL MANAGER (RECOVERY, LEGAL SERVICES& CR.RISK MGT.)
GENERAL MANAGER ((IT)
GENERAL MANAGER ((VIGILENCE, ANTIFRAUD & INSPECTION)
1. Title of the study: “Customer satisfaction survey of Corporation Bank
credit cards”
2. Type of research: Descriptive Research
Descriptive research includes surveys and fact-finding enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs as it
exists at present. In social science and business research we quite often use the
term Ex post facto research for descriptive research studies. The main
characteristic of this method is that the researcher has no control over the variables;
he can only report what has happened or what is happening. The research
conducted in this project is of descriptive in nature.
3. Objectives of the study :
To find out the level of satisfaction amongst the customer with regard to
Corporation Bank credit card
To compare the Corporation Bank credit card with other Credit Card \
To find out if there will be an increase the demand for Corporation Bank credit
card in the near future
To suggest the management the ways to improve the service of credit card
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4. Scope of Research:
The study has covered 50 customers of Corporation Bank who are using
Corporation Bank credit cards and are residing in and around Dakshina
Kannada district
5. Relevance of the study: Corporation Bank is one of the oldest public sector
banks in India. Which has been voted as best public sector bank year after year,
hence the customers are largely satisfied with the bank?
But the credit card offered by the bank is one of the latest service offered by the
bank hence it is relevant to study whether the customer are satisfied with the credit
card or not.
6. Limitations of the study:
a. Time constraints
b. The study is based upon the opinion of 50 respondents and cannot be
generalized
c. The respondents could be biased in marking the options
7. Research methods and Research methodology
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1. Collection of data
A. Primary data:
(a) Questionnaires
(b) Personal interviews with the officials
B.Secondary data
(a) Books
(b) Internet
(c) Previous research works
Evaluation and comparison of the data with respect to the problem and the
necessary solutions and conclusions
8. Sample Design: Deliberate judgmental sampling design
Deliberate sampling is also known as purposive or non-probability sampling. This
sampling method involves purposive or deliberate selection of particular units of the
universe for constituting a sample which represents the universe. In judgment
sampling the researcher's judgment is used for selecting items which he considers as
representative of the population. The sampling technique in this study is a
combination of deliberate and judgmental sampling.
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Factors analyzed
in the study
Frequency of using
credit cards
Terms and
conditions
Objectives for trying the credit
card
Billing cycle and
intrest rateRecomm
endation to
others
Benefits provided with the
credit cards
Credit limit
sanctioned
Customer care services
Treated as an
valued customer
1. . Age
Table No. 5.1: Age of respondentsOptions No of respondents Percentage
Less than 25 08 1625-35 15 3035-45 07 1445-55 16 32
55 & above 04 08
02468
1012141618
8
15
7
16
4
Chart no. 5.1: Age of respondents
less than 25 25-35 35-45 45-55 55 & above
From table and chart no 5.1 it is evident that 16 % of the credit card holders are
less than the age of 25, 30% are between the age group 25-35,14% are between the
age group 35-45, 32% are between the age group 45-55, and 8% are between the
age group 55 & above. So it can be observed that majority of the credit card
holders are in between the age group of 45-55 as well as 25-35
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2. GENDER
Table No 5.2. Gender of the RespondentsOptions No of respondents Percentage
Male 38 76Female 12 24
86%
14%
Chart No 5.2: Age of the Respondents
MaleFemale
From the table and chart no 5.2 it is evident that 76% credit card holders are male
and 24% are female. So it is clear that more number of males possess credit cards
than females
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3. Qualification:
Table No5.3: Qualification of the respondentsOptions No. of Respondents Percentage
Less than 10 Std 02 0410-12 Std 01 02Graduates 34 68
Post graduate 13 26
Less than 10 Std 10-12 Std Degree Post graduate0
5
10
15
20
25
30
35
40
2 1
34
13
Chart No5.3. Qualification of the respondents
From the table and chart no 5.3 it is evident that 4% respondents of the
Corporation Bank credit card holders are of the qualification of less than 10 th
standard, 2% respondents are of the qualifications between 10th standard to 12th
standard, 68% respondents are graduates and 26% are post-graduates. So it is clear
that majority of the respondents are graduates.
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4. Martial Status
Table No5.4: Marital Status of the RespondentsOptions No of respondents PercentageSingle 16 32
Divorced 02 04Married 32 64widowed 00 00
05
101520253035
16
2
32
0
Chart no. 5.4: Marital status of respondents
Single Divorced Married Widowed
From the above table and chart no 5.4 it is clear that 32% of the credit card holders
are single, 4% are divorced and 64% are married. So it is evident that more than
half of the credit card holders are married.
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5. Time period since respondents are maintaining an account with
Corporation Bank
Table no 5.5: Period for maintaining an accountOptions No of respondents Percentage
Less than 6 months 00 006 months – 1 year 00 001 year – 2 years 11 22
2 years and more 39 78
0 5 10 15 20 25 30 35 40
0
0
11
39
Chart no. 5.5: Period for maintaining an account
2 years and more 1 year-2 years 6 months-1 year less than 6 months
From the table and chart no 5.5 it is evident that 22% of the credit card holders are
maintaining an account with Corporation Bank for a period of 1 year – 2 years,
whereas 78% are maintaining an account with Corporation Bank for a period of 2
years or more. So it is clear that most number of respondents are maintaining
account with Corporation Bank since more than 2 years
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6. Since how long have you been using Corporation Bank credit card
Table no 5.6: Period of usage of credit cardOptions No of respondents Percentage
Less than 3 months 03 063 months – 6 months 03 06
6 months – 1 year 09 181 year and above 35 70
Less than 3 months 3 months – 6 months 6 months – 1 year 1 year and above0
5
10
15
20
25
30
35
40
Chart no 5.6: Period of usage of credit card
From the table and chart no 5.6 it is evident that 6% of the respondents have been
using Corporation Bank credit cards for less than 3 months, 6% of respondents
have been for 3 months - 6 months, 18% of respondents have been using for 6
months – 1 year and 70% of respondents have been using for 1 year and above.
So we can conclude by saying that majority of the respondents have been using
Corporation Bank credit cards for 1 year and above
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7. Reason for trying Corporation Bank credit cardsThe major reasons why the customers opted for Corporation Bank credit cards
are:
i. The customers felt it was need of the hour
ii. There was no joining fees or annual fees in the beginning ,also low rate
of interest was been charged by bank comparatively
iii. To desire the convenience in payment
iv. To avoid the risk of carrying large amount of cash in pocket
v. It has features which is beneficiary to the customers
vi. It adds more prestige to them
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8. Frequency of using Corporation Bank credit cards
Table no 5.7: Frequency of usage of credit cards
Options No of RespondentsPercentage
Daily 00 00
Weekly 18 36
Monthly 26 52
Other 06 12
0
5
10
15
20
25
30
0
18
26
6
Chart no 5.7 : Frequency of usage of credit cards
daily weekly Monthly OtherFrom table and chart no5.7 we can see that 36% of the Corporation Bank credit
card holders use their credit card weekly, 52% monthly, and 10% others such as
fortnightly or as and when need arises .So it is clear that more than half of the
credit card holders used their credit cards at least once a month
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9. The terms and the conditions framed by the bank are too confusing
Table no 5.8: Response towards the terms and conditionsOptions No of respondents Percentage
Strongly agree 00 00Agree 08 16
Neutral 12 24Disagree 30 60
0 5 10 15 20 25 30 35
0
8
12
30
Chart no. 5.8: Response towards the terms and contdi-tions
DisagreeNeutralAgreeStrongly Agree
From the table and chart no5.8, it is evident that 16% felt that the terms and
conditions framed by Corporation Bank credit card was confusing, 24% felt neutral
and 60% felt it wasn’t confusing. So it is clear that the terms and condition of
Corporation Bank credit cards are not confusing
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10.Billing cycle and interest rate charged
Table no 5.9: Satisfaction towards billing cycle and interest rateOptions No of respondents Percentage
Yes 47 94No 03 06
94%
6%
Chart no 5.9: Satisfaction towards billing cycle and in-trest rate
Yes
No
From the table and chart no5.9 it is evident that 94 % of the respondents are
satisfied and 6% are not satisfied with the billing cycle and the interest rate of
Corporation Bank credit cards. So it is evident that the respondents are satisfied
with the billing cycle and the interest rate of Corporation Bank credit cards
40
11.. Satisfaction with the benefits Provided
Table no 5.10: Satisfaction towards the benefits providedOptions No of respondents Percentage
Yes 44 88No 06 12
Yes
No
0 5 10 15 20 25 30 35 40 45
44
6
Chart no 5.10: Satisfaction towards the bene-fits provided
From the table and chart no 5.10 we can see that 88% of the customers are satisfied
with the benefits provided with Corporation Bank credit cards, where as 12 % are
so it is evident that majority of the respondents are satisfied with the various
benefits provided with the Corporation Bank credit cards.
41
12. Satisfaction with the credit limit sanctioned
Table no 5.11. Satisfaction level towards credit limit sanctionedOptions No of respondents Percentage
Yes 47 94No 03 06
From the table and chart no 5.11 we can see that 94% of the customers are
satisfied with the credit limit provided with Corporation Bank credit cards , where
as 6 % are so it is evident that majority of the respondents are satisfied with the
credit limit provided with the Corporation Bank credit card
42
Yes No05
101520253035404550
47
3
Chart no 5.11. satisfaction level towards credit limit sanctioned
13. Places where normally credit cards is used
Table no. 5.12: Various places where the credit card is usedOptions No of respondents
Supermarkets 46Restaurants 23Petrol bunks 17
Others 06
Supermarkets Restaurants Petrol bunks Others0
5
10
15
20
25
30
35
40
45
50 46
2317
6
Chart no. 5.12 Various places where the credit card is used
From the table and chart no 5.12 it is evident that 46 respondents used the
Corporation Bank credit in supermarkets, 23 respondents used the credit card in
restaurants, 17 in petrol bunks, 6 in other places like online purchasing etc.So it is
clear that respondents prefer using credit cards in supermarkets the most when
compared to other places
43
14.. Monthly credit card bill amount on Corporation Bank credit card
Table no 5.13: The monthly average credit card bill amount of various respondents
Options No of respondents PercentageLess than Rs 1000 07 14Rs 1000 – Rs 3000 18 36Rs 3000- Rs 5000 19 38Rs 5000 and above 06 12
Less than Rs 1000 Rs 1000 – Rs 3000 Rs 3000- Rs 5000 Rs 5000 and above
7
1819
6
Chart no 5.13: The monthly average credit card bill amount
From the table and chart no 5.13 it is evident that 14% of the respondents’ average
monthly credit card bill amount summed upto less than Rs 1000, 36% between
rs1000 and rs3000, 38% between Rs 3000 and Rs 5000, 12 % above Rs 5000
So we can conclude saying that the respondents average monthly credit card bill
amounted between Rs 1000 and Rs 5000.
44
15.. Recommendation of Corporation Bank credit cards to others
Table no 5.14. : Whether the respondents will recommend it to othersOptions No of respondents Percentage
Definitely 34 68Might or might not 09 18
Probably 07 14Definitely not 00 00
From the table and chart no 5.14 it is evident that 68% of the respondents would
definitely recommend Corporation Bank credit cards to others, 18% might or
might not and 14% probably would recommend it to others. So we can conclude
than more than half of the respondents would recommend Corporation Bank credit
cards to others
45
Definitely
Might or might not
Probably
Definitely not
0 5 10 15 20 25 30 35 40
34
9
7
0
Chart no 5.14: whether the respondents will recommend it to others
16.. Satisfaction with the customer care services
Table No 5.15: Satisfaction Level towards customer careOptions No of respondents Percentage
1-dissatisfied 03 062-neutral 06 12
3-satisfied 33 664-highly satisfied 08 16
From table and chart no 5.15 it is evident that 06% respondents are dissatisfied
with the customer care services of Corporation Bank credit cards, 12% are neutral,
66% are satisfied and 16% are highly satisfied. So it is clear that the respondents
are satisfied to some extent with regard to customer care services of Corporation
Bank credit cards
46
dissatisfied neutral satisfied highly satisfied0
5
10
15
20
25
30
35
36
33
8
Chart No. 5.15: Satisfaction Level towards customer care
17. Satisfaction with being treated as a valued customer
Table No 5.16: Satisfaction with being treated as a valued customerOptions No of respondents Percentage
1-dissatisfied 05 102-neutral 12 24
3-satisfied 17 344-highly satisfied 16 32
Dissatisfied Neutral Satisfied Highly satisfied0
2
4
6
8
10
12
14
16
18
5
12
1716
Chart No 5.16: Satisfaction with being treated as a valued customer
Series 1
From table and chart no 5.16 it is evident that 10% of the respondents felt
dissatisfied that the staff showed interest in them as an individual / treated them as
an valued customer, 24% felt neutral, 34% felt satisfied, 32% felt highly satisfied
So it is clear that the respondents are satisfied to very highly satisfied that the staff
showed interest in them as an individual/ treated them as an valued customer
47
18. (a) Respondents owing other banks credit card
Table No 5.17: Respondents owing other banks credit cardOptions No of Respondents Percentage
Yes 19 38No 31 62
38%
62%
Chart no 5.17: Respondents owing other banks credit card
YesNo
From the table and chart no 5.17 we can see that 38% of the respondents had
credit card of other banks and 62% possessed credit cards of Corporation Banks
alone. So we can conclude that more that most of the Corporation Bank credit
card holders do not possess any other banks credit card.
48
18. (b) Comparison with other banks credit card
Table No5.18: Satisfaction level on comparison with other banks credit cardOptions No of Respondents
1-Dissatisfied 012-Neutral 073-Satisfied 07
4-Highly satisfied 04
012345678
Chart No5.18: Satisfaction level on comparison with other banks credit card
Dissatisfied Neutral Satisfied Highly Satisfied
From the table and chart no 5.18 it is evident that of the respondents who owned
other banks credit card 01 respondent was dissatisfied, 07 were neutral, 07 were
satisfied and 04 were highly satisfied , so we can conclude saying majority of the
respondents are neutral- satisfied
49
FINDINGS
i. It was found that majority of the card holders where in between the age group
25 – 35 and 45-55
ii. It was found from the study that credit cards were owned by more number of
male when compared to female
iii. It was that more number of married had opted for credit card
iv. It was found that more than 78% card holders where customers of the bank for
more than past two years
v. It was found that 68% are graduates
vi. It was found from the study that majority of the card holders used their
Corporation Bank credit card once in a month
vii. It was found from the study that 60% of the respondents believed that the terms
and conditions framed by the bank was not confusing hence making it easier to
own a credit card
viii. It was found from the study that 94% of the credit card holders where satisfied
with the billing cycle and the interest rate charged by the bank on its credit card
ix. It was found from the study that 88% of the respondents where satisfied with
the benefits provided with Corporation Bank credit card
50
x. It was found from the study that 94% of the respondents where satisfied with
credit limit offered on their Corporation Bank credit card
xi. It was found from the study that majority of the respondents monthly credit card
bill amount was in between Rs1000-Rs 5000
xii. It was found from the study that 68% of the respondents would recommend
Corporation Bank credit cards to others
xiii. It was found from the study that 66% of the credit card holders were satisfied
with the customer care services of the Corporation Bank credit card
xiv. The respondents were neutral to satisfied in their satisfaction level with
Corporation Bank credit cards when compared to other banks credit cards
xv. It was found from the study that 66% of the respondents felt that the Staff
Showed Interest in Them as an Individual / Treated Them As An Valued
Customer
xvi. It was found from the study that 62% of the credit card holders did not own any
other banks credit card
xvii. It was found from the survey that most of the respondents used their credit
cards at supermarkets
51
SUGGESTIONS
i. Demonstration on usage of the card : Majority of the card holders know
limited usage of the card on account of non guidance in this matter. Holding
demonstrations in the usage of the card and the services available along with
the card will go a long way in expansion of credit card business
ii. Offers on usage: Corporation Bank can provide more offers on using the
credit cards , by awarding points on the usage and giving rewards on the
basis of points collected
iii. Fixation of credit limit: Corporation Bank fix the credit limit on a
particular credit card after market survey to find out the desired level of
credit limit expected by the customers, also it can look into the credit limit
enjoyed by the customer with other banks credit card in case he own one.
52
iv. Introduce billing machine : Corporation Bank can install its own billing
machines at shopping and other places. Because it was found that majority
of that shopping center and other places had billing machines of other banks
v. Ease repayment of credit amount: Corporation Bank can make necessary
arrangement for the payment of credit card bills through ATM, internet,
exclusive cheque box etc.
vi. Expanding the collaborations : Corporation Banks can tie up with the
various shopping outlets , supermarkets, petrol bunks in order to provided
exclusive offers like discounts, money back to the customers
vii. Aggressive marketing strategy :Corporation Bank can adopt aggressive
marketing strategy with regard to credit card by advertising the credit card
aggressively
viii. Reduction in interest rate to reasonable extent: Corporation Bank can
reduce the interest rate in order to attract more customers
53
ix. Customization of credit card: Corporation Bank can customize the credit
card as per the needs of the customer
54
CONCLUSION
In India there are many players in the credit card segment .Which is mainly
captured by private banks. Also majority of the customers prefer making
payment through debit card in order to avoid the Hassles and risk associated
with the credit cards.
Since Corporation Bank has newly introduced the credit card, the bank can
make use of the suggestions given in the project report in order to maximize
its share and also provide better service to the customers.
55