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173
CHAPTER VII
FUNCTIONING OF SIDBI: AN OPINION SURVEY
This chapter throws light on the opinion of entrepreneurs regarding
functioning of the bank. The study is based upon the primary data collected through
filling up of a questionnaire from entrepreneurs financed by the SIDBI. This chapter
has been divided into two parts. The first part provides the general profile of the
entrepreneurs assisted by the bank. The second part seeks to examine the perception
of entrepreneurs regarding functional and operational aspects of SIDBI. Further,
cross-comparison has also been made between socio-economic profiles of the
beneficiaries to examine the point of difference, if it exists.
Part-I
This part highlights the general information of 100 entrepreneurs. The
information is based on the entrepreneur‟s age, educational qualification, experience
in the industry, location of branch, annual turnover, nature of business organisation,
nature of industry and type of organisational set-up.
AGE-WISE DISTRIBUTION
Tables 7.1 and 7.2 show the age-wise/education-wise and age-
wise/experience-wise distribution of respondents respectively. Age-wise distribution
of the respondents have been bifurcated into four categories, viz. „below 40 years‟,
„40 to 50 years‟, „50 to 60 years‟, and „above 60 years‟. Table 7.1 reveals that
majority of respondents (35 per cent) belong to age group „60 years or above‟,
followed by age groups, „40 to 50 years‟, (26 per cent), „50 to 60 years‟, (25 per cent)
and „below 40 years‟ (14 per cent).
Education-wise the respondents have been divided into three categories, viz.
„Under-graduates‟, „Graduates‟, and „Post-graduates‟. The table reveals that 76.9 per
cent of the respondents are „graduates‟, belong to age group 40 to 50 years, followed
by 72.0 per cent respondents belong to age group 50 to 60 years, and 64.3 per cent
respondents belong to age group below 40 years. Further, 35.7 per cent respondents
are „post-graduates‟, belong to age group below 40 years and 25.7 per cent
respondents are „undergraduates‟, belong to age group 60 years or above.
174
Table 7.1
Age-wise/Education-wise Distribution of Sample Units
Age Undergraduates Graduates Post-
Graduates
Total
Below 40 years 0(0.0) 9(64.3) 5(35.7) 14(14.0)
40-50 years 1 (3.8) 20(76.9) 5(19.2) 26(26.0)
50-60 years 3(12.0) 18(72.0) 4(16.0) 25(25.0)
60 years or
above
9(25.7) 20(57.1) 6(17.1) 35(35.0)
Total 13(13.0) 67(67.0) 20(20.0) 100(100)
Note: The figures given in parentheses indicate percentages to total in all tables.
Table 7.2
Age-wise/Experience-wise Distribution of Sample Units
Age Below 10 years 10-20
years
More than 20
years
Total
Below 40 years 2(14.3) 12(85.7) 0(0.0) 14(100)
40-50 years 5(19.2) 12(46.2) 9(34.6) 26(100)
50-60 years 4(16.0) 16(64.0) 5(20.0) 25(100)
60 years or
above
3(8.6) 18(51.4) 14(40.0) 35(100)
Total 14(14.0) 58(58.0) 28(28.0) 100(100)
Experience-wise, the respondents have been divided into three groups, viz.
„below 10 years‟, „10 to 20 years‟, and „more than 20 years‟. Table 5.2 depicts that
majority of the respondents (85.7 per cent) having „10 to 20 years‟ of experience in
the industry belong to age group „below 40 years‟. It is followed by age groups „50 to
60 years‟ (64.0 per cent) and „60 years or above‟ (51.4 per cent), having „10 to 20
years‟ of experience in the industry. Further, 40 per cent of the respondents having
„more than 20 years‟ of experience belong to age group „60 years or above‟.
EDUCATIONAL QUALIFICATION/EXPERIENCE-WISE DISTRIBUTION
Table 7.3 presents education-wise and experience-wise classification of
respondents. Table 5.3 indicates that large proportion of respondents (67.0 per cent)
are „graduates‟, followed by „post-graduates‟, (20.0 per cent) and „under-graduates‟,
175
(13.0 per cent). Experience-wise, the table shows that 69.2 per cent of the respondents
are „undergraduates‟ and 59.7 per cent of the respondents are „graduates‟ having 10 to
20 years of experience in the industry, whereas 45 per cent each of the respondents
having 10 to 20 years and more than 20 years of experience are „post-graduates‟.
Table 7.3
Educational Qualification/Experience-wise Distribution of Sample Units
Age Below 10 years 10-20
years
More than 20
years
Total
Under-graduates 1(7.7) 9(69.2) 3(23.1) 13(100)
Graduates 11(16.4) 40(59.7) 16(23.9) 67(100)
Post-Graduates 2(10.0) 9(45.0) 9(45.0) 20(100)
Total 14(14.0) 58(58.0) 28(28.0) 100(100)
BRANCH-WISE DISTRIBUTION
Branch-wise, the 100 respondents surveyed have been divided into three
categories, viz. „Jalandhar‟, (34) respondents „Ludhiana‟, (33) respondents and
„Chandigarh‟ (33) respondents. Tables 7.4, 7.5 and 7.6 depict the turnover-wise,
nature of industry-wise and organisation set up-wise classification of respondents
among these branches respectively.
Table 7.4
Branch Location/Turnover-wise Distribution of Sample Units
Branch Below Rs 5
crore
Rs 5-15 crore Above Rs 15
crore
Total
Jalandhar 14(41.2) 16(47.1) 4(11.8) 34(100)
Ludhiana 10(30.3) 15(45.5) 8(24.2) 33(100)
Chandigarh 14(42.4) 12(36.4) 7(21.2) 33(100)
Total 38(38.0) 43(43.0) 19(19.0) 100(100)
Turnover-wise, the respondents surveyed have been classified into three
categories, viz. „Below Rs 5 crore‟, „Rs 5 to 15 crore‟ and „Above Rs 15 crore‟. Table
7.4 highlights that a large number of respondents having annual turnover of „Rs 5 to
15 crore‟ belong to Jalandhar branch (47.1 per cent), followed by Ludhiana branch
176
(45.5 per cent) and Chandigarh branch (36.4 per cent) respectively. Chandigarh
branch registered highest share (42.4 per cent), among the respondents having
turnover „below Rs 5 crore‟, followed by Jalandhar branch (41.2 per cent) and
Ludhiana branch (30.3 per cent). However, 24.2 per cent of the respondents having
turnover „above Rs 15 crore‟ belong to Ludhiana branch, followed by Chandigarh
branch (21.2 per cent) and Jalandhar branch (11.8 per cent).
Table 7.5
Branch Location/Nature of Industry-wise Distribution of Sample Units
Branch Micro Small Medium Total
Jalandhar 0(0) 29(85.3) 5(14.7) 34(100)
Ludhiana 0(0) 26(78.8) 7(21.2) 33(100)
Chandigarh 1(3.0) 22(66.7) 10(30.3) 33(100)
Total 1(1.0) 77(77.0) 22(22.0) 100(100)
Industry-wise, the respondents surveyed have been categorized into three
groups, viz. „Micro‟, „Small‟, and „Medium‟. Table 7.5 highlights that highest number
of respondents (85.3 per cent) having „small‟ enterprises belong to Jalandhar branch.
It is followed by respondents from Ludhiana branch (78.8 per cent) and Chandigarh
branch (66.7 per cent) whereas, 30.3 per cent of the respondents having „medium‟
enterprises belong to Chandigarh branch, followed by Ludhiana branch (21.2 per
cent) and Jalandhar branch (14.7 per cent). While, only one respondent has „micro‟
enterprise (3 per cent) belongs to Chandigarh branch.
Table 7.6
Branch Location/Set up-wise Distribution of Sample Units
Branch Proprietorship Partnership Company Total
Jalandhar 12(35.3) 14(41.2) 8(23.5) 34(100)
Ludhiana 13(39.4) 6(18.2) 14(42.4) 33(100)
Chandigarh 13(39.4) 11(33.3) 9(27.3) 33(100)
Total 38(38.0) 31(31.0) 31(31.0) 100(100)
On the basis of Organisation set-up, the respondents have been grouped into
three categories, viz. „Proprietorship‟, „Partnership‟ and „Company‟. Table 7.6 shows
177
that 42.4 per cent of the respondents having „company‟ form of organisation belong to
Ludhiana branch, followed by Chandigarh branch (27.3 per cent) and Jalandhar
branch (23.5 per cent). However, 41.2 per cent of the respondents engaged in
„partnership‟ business belong to Jalandhar branch, followed by Chandigarh branch
(33.3 per cent) and Ludhiana branch (18.2 per cent). Further, 39.4 per cent each of the
respondents engaged „proprietorship‟ business belong to Ludhiana and Chandigarh
branches, followed by Jalandhar branch (35.3 per cent).
TURNOVER-WISE DISTRIBUTION
Turnover-wise, the respondents surveyed have been classified into three
categories, viz. „Below Rs 5 crore‟, „Rs 5 to 15 crore‟ and „Above Rs 15 crore‟. Table
7.7 shows the organisation set up-wise classification of respondents among these
categories respectively.
Table 7.7
Turnover/Set-up-wise Distribution of Sample Units
Turnover Proprietorship Partnership Company Total
Below Rs 5 crore 20(52.6) 12(31.6) 6(15.8) 38(100)
Rs 5-15 crore 14(32.6) 13(30.2) 16(37.2) 43(100)
Above Rs 15 crore 4(21.1) 6(31.6) 9(47.4) 19(100)
Total 38(38.0) 31(31.0) 31(31.0) 100(100)
Set-up-wise, Table 7.7 reveals that 52.6 per cent respondents engaged in
„proprietorship‟ business have turnover below Rs 5 crore, whereas 47.4 per cent
respondents engaged in „company‟ form of organisation have turnover above Rs 15
crore, followed by 37.2 per cent respondents with turnover of Rs 5 to 15 crore. While,
31.6 per cent each of the respondents engaged in „partnership‟ business have turnover
below Rs 5 crore and above Rs 15 crore.
SET-UP-WISE DISTRIBUTION
Set up-wise classification of the respondents have been divided into three
categories viz. „Proprietorship‟, „Partnership‟ and „Company‟. Tables 7.8 show the
nature of business-wise distribution of respondents among these groups respectively.
178
Table 7.8
Set up/Nature of Business-wise Distribution of Sample Units
Set up Manufacturing Others Total
Proprietorship 36(94.7) 2(5.3) 38(100)
Partnership 31(100) 0(0.0) 31(100)
Company 24(77.4) 7(22.6) 31(100)
Total 91(91.0) 9(9.0) 100(100)
Table 7.8 depicts that all the respondents (100 per cent) doing partnership
business are engaged in „manufacturing‟ business. It is followed by respondents
belonging to proprietorship (94.7 per cent) and company (77.4 per cent). Further, 22.6
per cent of the respondents having company form of organisation are engaged in
„others‟ business. It is followed by 5.3 per cent of the respondents having
proprietorship form of organisation.
Part-II
The second part analysed the impact of SIDBI financing in MSME units. The
opinion of 100 entrepreneurs who had availed loan from the bank has been assessed to
examine the functioning of the bank. The study revealed that all the respondents
surveyed have availed financial assistance from SIDBI for setting up of their
industrial units. The loan has been disbursed on the basis of some mandatory
stipulations to be abided by every entrepreneur during the period of loan. Further, the
analysis about the respondents response related to awareness regarding assistance
schemes, type of assistance availed, time period of customers account with the bank,
purpose of loan, amount of loan, duration of loan, rate of interest, security offered for
loan, moratorium period allowed by bank, amount of loan disbursed by the bank etc.
has been studied in subsequent paragraphs.
AWARENESS REGARDING ASSISTANCE SCHEMES OF SIDBI
To check the awareness of the respondents regarding various assistance
schemes of SIDBI, the respondents were asked to give their assent as regarding
various assistance schemes like, „term loan‟, „working capital‟, „promotional and
developmental assistance‟, „letter of credit‟ and „guarantees‟ given by bank to its
customers. On the basis of the survey, it has been observed that all the respondents
179
have awareness about the „term loan‟ and „working capital‟ assistance schemes of the
bank, while both positive and negative response has been observed regarding the
awareness level of other schemes. Tables 7.9, 7.10 and 7.11 show the branch-wise,
organisation set up-wise and turnover-wise classification of the respondents with
respect to their awareness about assistance schemes.
Table 7.9
Awareness Regarding Promotional & Developmental Assistance Schemes of
SIDBI
Bra
nch
Yes No Total Chi-Square
Jalandhar 19 (55.9) 15 (44.1) 34 (100) χ²= 4.216
d.f. = 2
Sig. = 0.122
Ludhiana 24 (72.7) 9 (27.3) 33 (100)
Chandigarh 16 (48.5) 17 (51.5) 33 (100)
Set
-up
Proprietorship 22 (57.9) 16 (42.1) 38 (100) χ² = 0.098
d.f. = 2
Sig. = 0.952
Partnership 18 (58.1) 13 (41.9) 31 (100)
Company 19 (61.3) 12 (38.7) 31 (100)
Tu
rnover
Below Rs 5 crore 23 (60.5) 15 (39.5) 38 (100)
χ² = 5.160
d.f. = 2
Sig. = 0.76
Rs 5-15 crore 29 (67.4) 14 (32.6) 43 (100)
Above Rs 15
crore 7 (36.8) 12 (63.2)
19 (100)
Total 59 (59.0) 41 (41.0) 100 (100)
Table 7.9 reveals that majority of the respondents (59 per cent) were aware
regarding the promotional and developmental assistance schemes of the bank while,
41 per cent were not aware about the same. Branch-wise, the highest level of
awareness regarding promotional and developmental assistance scheme was shown by
respondents financed by Ludhiana branch (72.7 per cent), followed by Jalandhar
branch (55.9 per cent) and Chandigarh branch (48.5 per cent). The majority of the
respondents (51.5 per cent) were not aware regarding the promotional and
developmental assistance schemes of the bank. The significance value (0.122) is
greater than 0.05 at 5 per cent level of significance, which implies that no significant
difference exists among different branches of SIDBI with regard to awareness
regarding assistance schemes of the bank.
180
Organisation set-up-wise, the maximum level of awareness regarding
promotional and developmental assistance schemes has been shown by the
respondents having company form of organisation (61.3 per cent), followed by
partnership (58.1 per cent) and proprietorship (57.9 per cent). The table also shows
that proprietorship form of organisation has the highest share (42.1 per cent) amongst
the respondent‟s unawareness regarding the same. The significance value (0.952) is
greater than 0.05 at 5 per cent level of significance, which implies that no significant
difference exists among organisation set up with respect to awareness regarding
assistance schemes of the bank.
Turnover-wise, Table 7.9 reveals that a large proportion of respondents (67.4
per cent) with turnover of Rs 5 to 15 crore have awareness about promotional and
developmental assistance schemes of the bank. It is followed by respondents with
turnover below Rs 5 crore (60.5 per cent) and whose turnover is above Rs 15 crore
(36.8 per cent). The majority of the respondents (63.2 per cent) respondents with
turnover above Rs 15 crore were not aware regarding the promotional and
developmental schemes of the bank. The significance value (0.76) is greater than 0.05
at 5 per cent level of significance, which implies that no significant difference exists
among different turnover categories with regard to awareness regarding assistance
schemes of the bank.
Table 7.10
Awareness Regarding Letter of Credit Scheme of SIDBI
Bra
nch
Yes No Total Chi-Square
Jalandhar 22 (64.7) 12 (35.3) 34 (100) χ²= 0.257
d.f. = 2
Sig. =0.879
Ludhiana 23 (69.7) 10 (30.3) 33 (100)
Chandigarh 23 (69.7) 10 (30.3) 33 (100)
Set
-up
Proprietorship 25 (65.8) 13 (34.2) 38 (100) χ² = 0.805
d.f. = 2
Sig. = 0.669
Partnership 20 (64.5) 11 (35.5) 31 (100)
Company 23 (74.2) 8 (25.8) 31 (100)
Tu
rnover
Below Rs 5 crore 25 (65.8) 13 (34.2) 38 (100)
χ² = 4.694
d.f. = 2
Sig. = 0.096
Rs 5-15 crore 34 (79.1) 9 (20.9) 43 (100)
Above Rs 15
crore 9 (47.4) 10 (52.6)
19 (100)
Total 68 (68.0) 32 (32.0) 100 (100)
181
Table 7.10 indicates that the maximum number of respondents (68 per cent)
have awareness regarding assistance given by way of letter of credit by the bank,
while 32 per cent have no awareness about the same. Branch-wise, the highest level of
awareness regarding letter of credit facility given by the bank was shown by
respondents financed by Ludhiana and Chandigarh branch (69.7 per cent each),
followed by Jalandhar branch (64.7 per cent). The table also reveals that 35.3 per cent
respondents financed by Jalandhar branch have no awareness about the same. The
significance value (0.879) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different branches of
SIDBI with regard to awareness regarding letter of credit scheme of the bank.
Organisation set-up-wise, a significant proportion of awareness regarding
letter of credit has been revealed by the respondents having company form of
organisation (74.2 per cent), followed by proprietorship (65.8 per cent) and
partnership (64.5 per cent). It has also been observed that the highest number of
respondents (35.5 per cent) belong to partnership business have no awareness
regarding assistance given by the bank in the form of letter of credit. The significance
value (0.669) is greater than 0.05 at 5 per cent level of significance, which implies
that no significant difference exists between organisation set up with respect to
awareness regarding letter of credit scheme of the bank.
Turnover-wise, table highlights that majority of the respondents surveyed
(79.1 per cent) having turnover from Rs 5 to 15 crore have awareness about assistance
in the form of letter of credit given by SIDBI. It is followed by the respondents with
turnover below Rs 5 crore (65.8 per cent) and above Rs 15 crore (47.4 per cent)
regarding awareness about the same. The study also shows that the respondents
earning above Rs 15 crore have highest share (52.6 per cent) amongst the respondents
unawareness as regards same. The significance value (0.96) is greater than 0.05 at 5
per cent level of significance, which implies that no significant difference exists
among different turnover categories with regard to awareness regarding letter of credit
scheme of the bank.
182
Table 7.11
Awareness Regarding Guarantee Scheme of SIDBI B
ran
ch
Yes No Total Chi-Square
Jalandhar 24 (70.6) 10 (29.4) 34 (100) χ²= 1.273
d.f. = 2
Sig. = 0.529
Ludhiana 20 (60.6) 13 (39.4) 33 (100)
Chandigarh 24 (72.7) 9 (27.3) 33 (100)
Set
-up
Proprietorship 26 (68.4) 12 (31.6) 38 (100) χ² = 0.301
d.f. = 2
Sig. = 0.860
Partnership 20 (64.5) 11 (35.5) 31 (100)
Company 22 (71.0) 9 (29.0) 31 (100)
Tu
rnover
Below Rs 5 crore 25 (65.8) 13 (34.2) 38 (100)
χ² = 6.224
d.f. = 2
Sig. = 0.045
Rs 5-15 crore 34 (79.1) 9 (20.9) 43 (100)
Above Rs 15
crore 9 (47.4) 10 (52.6)
100 (100)
Total 68 (68.0) 32 (32.0) 100 (100)
Table 7.11 shows that a large number of the respondents (68 per cent) have
awareness regarding assistance in the form of guarantees given by the bank to its
customers, while 32 per cent respondents have unawareness about the same. Branch-
wise, table reveals that majority of the respondents (72.7 per cent) financed by
Chandigarh branch have knowledge about guarantees given by the bank. It is
followed by the respondents financed by Jalandhar branch (70.6 per cent) and
Ludhiana branch (60.6 per cent). The highest number of respondents financed by
Ludhiana branch (39.4 per cent) have no awareness regarding same. The significance
value (0.529) is greater than 0.05 at 5 per cent level of significance, which implies
that no significant difference exists among different branches of SIDBI as regards
awareness regarding guarantee scheme of the bank.
Organisation set-up-wise, analysis indicates that the highest level of awareness
about the assistance in the form of guarantees given by the bank have been shown by
respondents having company form of organisation (71.0 per cent), followed by
proprietorship (68.4 per cent) and partnership (64.5 per cent). It has also been
observed that 35.5 per cent of the respondents having partnership business have no
knowledge regarding the same. The significance value (0.860) is greater than 0.05 at 5
per cent level of significance, which implies that no significant difference exists
between organisation set up and its awareness regarding guarantee scheme of the
bank.
183
Turnover-wise, Table 7.11 shows that majority of the respondents (79.1 per
cent) with turnover of Rs 5 to 15 crore have information about the guarantee scheme.
It is followed by respondents with turnover below Rs 5 crore (65.8 per cent) and
respondents with turnover above Rs 15 crore (47.4 per cent). The majority of the
respondents (52.6 per cent) under this classification have no awareness about the
assistance given by the bank in the form of guarantees to its customers. The
significance value (0.045) is less than 0.05 at 5 per cent level of significance, which
implies that significant difference exists among different turnover categories as far as
awareness regarding guarantee scheme of the bank is concerned.
TYPE OF LOANS
The entrepreneurs generally approach SIDBI for meeting their fund based and
non-fund based requirements. The bank grants assistance in the form of term loan,
working capital, promotional and developmental (P&D) assistance, letter of credit and
guarantees. Tables 7.12 and 7.13 shows the type of assistance availed by all
respondents surveyed and branch-wise, set up-wise and turnover-wise classification of
the respondents with regard to the type of loan taken by them from SIDBI.
Table 7.12
Type of Loans
Yes No Total
Term Loan 95 (95) 5 (5) 100 (100)
Working Capital 1 (1) 99 (99) 100 (100)
Both Term loan & Working Capital 4 (4) 96 (96) 100 (100)
P&D Assistance 0 (0) 100 (100) 100 (100)
Letter of Credit 0 (0) 100 (100) 100 (100)
Guarantees 0 (0) 100 (100) 100 (100)
The survey of respondents revealed that none of them have availed
promotional and developmental assistance, letter of credit and guarantees from the
bank. All the respondents meet their requirements through term loan and working
capital loan. Table 7.12 shows that a large proportion of the respondents (95 per cent)
have availed term loan assistance from SIDBI and one respondent has taken working
capital loan from the bank. It further reveals that only four respondents of the total
have availed assistance under both types i.e. both term loan and working capital loan
from the bank.
184
Table 7.13
Term Loan Assistance B
ran
ch
Yes No Total Chi-Square
Jalandhar 34 (100) 0 (0.0) 34 (100) χ²= 10.686
d.f. = 2
Sig. = 0.005
Ludhiana 33 (100) 0 (0.0) 33 (100)
Chandigarh 28 (84.8) 5 (15.2) 33 (100)
Set
-up
Proprietorship 38 (100) 0 (0.0) 38 (100) χ² = 6.282
d.f. = 2
Sig. = 0.043
Partnership 27 (87.1) 4 (12.9) 31 (100)
Company 30 (96.8) 1 (3.2) 31 (100)
Tu
rnover
Below Rs 5 crore 37 (97.4) 1(2.6) 38 (100)
χ² = 0.805
d.f. = 2
Sig. = 0.669
Rs 5-15 crore 40 (93.0) 3 (7.0) 43 (100)
Above Rs 15
crore 18 (94.7) 1 (5.3)
19 (100)
Total 95 (95.0) 5 (5.0) 100 (100)
Table 7.13 reveals that a high majority of the respondents (95 per cent) have
taken term loan from the bank, while 5 per cent have availed other form of assistance
from the bank. Branch-wise, analysis shows that all the respondents (100 per cent
each) financed by Jalandhar branch and Ludhiana branch have taken term loan from
the bank, followed by Chandigarh branch (84.8 per cent), while 15.2 per cent
respondents financed by Chandigarh branch have not availed term loan assistance.
The significance value (0.005) is less than 0.05 at 5 per cent level of significance,
which implies that significant differences exist among different branches of the bank
as regards term loan assistance availed.
Organisation set-up-wise, the maximum number of respondents who availed
term loan assistance belong to proprietorship form of organisation (100 per cent),
followed by company (96.8 per cent) and partnership (87.1 per cent). The highest
number of respondents (12.9 per cent) from partnership form of organisation did not
avail term loan from the bank. The significance value (0.043) is less than 0.05 at 5 per
cent level of significance, which implies that significant differences exist between
organisation set up as regards term loan assistance availed.
185
Turnover-wise, the analysis shows that a large proportion of respondents (97.4
per cent) with turnover below Rs 5 crore have availed term loan assistance from the
bank. It is followed by respondents receiving turnover above Rs 15 crore, (94.7 per
cent) and whose turnover is from Rs 5 to 15 crore (93.0 per cent). Further, the
respondents earning Rs 5 to 15 crore have highest share (7.0 per cent) amongst the
respondents who have not taken term loan assistance from SIDBI. The significance
value (0.669) is greater than 0.05 at 5 per cent level of significance, which implies
that no significant difference exists among different turnover categories as regards
term loan assistance availed.
TIME PERIOD OF CUSTOMERS ACCOUNT WITH SIDBI
To know the customers preference towards SIDBI, the respondents were
surveyed to know their exact period of dealing with the bank. It also helps in
determining respondent‟s loyalty and their strength of relationship maintained with
the staff of the bank. Branch-wise, organisation set up-wise and turnover-wise
responses of the respondents in this context has been given in Table 7.14.
Table 7.14
Time Period of Customers Account with SIDBI
Bra
nch
Less
than 2
years
2-5
years
More
than 5
years
Total Chi-Square
Jalandhar 2 (5.9) 28(82.4) 4(11.8) 34 (100) χ²= 11.879
d.f. = 6
Sig. = 0.065
Ludhiana 2 (6.1) 17(51.5) 14(42.4) 33(100)
Chandigarh 5(15.1) 18(54.5) 10(30.3) 33(100)
Set
-up
Proprietorship 5(13.2) 29(76.3) 4(10.5) 38(100) χ² = 21.195
d.f. = 6
Sig. = 0.002
Partnership 2(6.4) 22(71.0) 7(22.6) 31(100)
Company 2(6.5) 12(38.7) 17(54.8) 31(100)
Tu
rnover
Below Rs 5 crore 5(13.2) 29(76.3) 4(10.5) 38(100)
χ² = 10.711
d.f. = 6
Sig. = 0.098
Rs 5-15 crore 3(7.0) 24(55.8) 16(37.2) 43(100)
Above Rs 15 crore 1(5.3) 10(52.6) 8(42.1) 19(100)
Total 9(9.0) 63(63.0) 28(28.0) 100(100)
186
Table 7.14 indicates that majority of the respondents (63 per cent) have been
dealing for the period „2 to 5 years‟ with the bank, while 28 per cent of the
respondents have been dealing for „more than 5 years‟. It is followed by respondents
having account for the period „less than 2 years‟ (9.0 per cent). Branch-wise analysis
reveals that highest number of respondents financed by Jalandhar branch (82.4 per
cent) have their account from „2 to 5 years‟ with the bank, followed by Chandigarh
branch (54.5 per cent) and Ludhiana branch (57.5 per cent). A large number of the
respondents financed by Ludhiana branch (42.4 per cent) have been dealing with bank
for „more than 5 years‟, followed by Chandigarh branch (30.3 per cent) and Jalandhar
Branch (11.8 per cent). Further, 15.1 per cent of the respondents financed by
Chandigarh branch were highest amongst the respondents dealing from „less than 2
years‟ with the bank. The significance value (0.065) is greater than 0.05 at 5 per cent
level of significance, which indicates that no significant difference exists among
respondents from different branches of the bank as regards time period of customers
account with SDIBI.
Organisation set-up-wise, table highlights that maximum number of
respondents (76.3 per cent) who have their account with the bank from „2 to 5 years‟
belonged to proprietorship form of organisation, followed by respondents from
partnership (71.0 per cent) and company form of organisation (38.7 per cent). The
highest number of respondents (54.8 per cent) who have been dealing with SIDBI
from „more than 5 years‟, belong to company form of organisation, followed by
respondents belong to partnership (22.6 per cent) and proprietorship (10.5 per cent).
Further, 13.2 per cent respondents belong to proprietorship business have their
account for „less than 2 years‟ with SIDBI. The significance value (0.002) is less than
0.05 at 5 per cent level of significance, which indicates that significant differences
exist between organisation set up-wise as regards time period of customers account
with SIDBI.
Turnover-wise, Table 7.14 highlights that a large proportion of respondents
(76.3 per cent) with turnover below Rs 5 crore have their account for the period of „2-
5 years‟ with the bank, followed by respondents with turnover from Rs 5 to 15 crore
(55.8 per cent) and above Rs 15 crore (52.6 per cent). It has also been observed that
42.1 per cent of the respondents with turnover above Rs 15 crore have been dealing
with the bank from „more than 5 years‟ followed by respondents with turnover from
187
Rs 5 to 15 crore (37.2 per cent) and those whose turnover is below Rs 5 crore (10.5
per cent). Further, 13.2 per cent respondents with turnover „below Rs 5 crore‟ were
highest amongst the respondents dealing for the period of „less than 2 years‟ with the
bank. The significance value (0.098) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists among different
turnover categories of the bank as regards time period of customers account with
SIDBI.
NUMBER OF TIMES LOANS RAISED BY BORROWER
To examine the respondent‟s loyalty towards bank as well as the bank‟s ability
to meet customer‟s demand, they were asked to specify the frequency of taking loans
for fulfilling their requirement. A customer will approach the same bank for another
loan if and only if he has been getting some exceptional services and proper attention
from the bank staff. Table 7.15 highlights the branch-wise, organisation set up-wise
and turnover wise analysis of the respondents with regard to number of times loans
raised by them.
Table 7.15
Number of Times Loans Raised by the Borrower
Bra
nch
One
Time
Two
Times
Three
Times
Four
Times
or more
Total Chi-Square
Jalandhar 21(61.8) 6(17.6) 5(14.7) 2(5.9) 34(100) χ²= 5.616
d.f. = 6
Sig. = 0.468
Ludhiana 15(45.5) 8(24.2) 4(12.1) 6(18.2) 33(100)
Chandigarh 19(57.6) 4(12.1) 3(9.1) 7(21.2) 33(100)
Set
-up
Proprietorship 23(60.5) 8(21.1) 3(7.9) 4(10.5) 38(100) χ² = 5.341
d.f. = 6
Sig. = 0.501
Partnership 18(58.1) 6(19.4) 3(9.7) 4(12.9) 31(100)
Company 14(45.2) 4(12.9) 6(19.4) 7(22.6) 31(100)
Tu
rnover
Below Rs 5
crore 28(73.7) 7(18.4)
2(5.3) 1(2.6) 38(100)
χ² = 13.714
d.f. = 6
Sig. = 0.033
Rs 5-15 crore 17(39.5) 9(20.9) 7(16.3) 10(23.3) 43(100)
Above Rs 15
crore 10(52.6) 2(10.5)
3(15.8) 4(21.1) 19(100)
Total 55(55.0) 18(18.0) 12(12.0) 15(15.0) 100(100)
188
Table 7.15 indicates that majority of the respondents (55 per cent) have taken
loan only once, followed by respondents who took loan twice (18 per cent), 15 per
cent respondents have raised loan four times or more and 12 per cent have taken loan
thrice. Branch-wise, table depicts that highest number of respondents (61.8 per cent)
financed by Jalandhar branch have raised loan „one time‟, followed by those financed
by Chandigarh branch (57.6 per cent) and Ludhiana branch (45.5 per cent). The table
also reveals that 24.2 per cent respondents financed by Ludhiana branch have taken
loan „two times‟, followed by Jalandhar branch (17.6 per cent) and Chandigarh branch
(12.1 per cent). Further, 21.2 per cent respondents from Chandigarh branch have
raised loan „four times or more‟, followed by respondents financed by Ludhiana
branch (18.2 per cent) and Jalandhar branch (5.9 per cent). The significance value
(0.468) is greater than 0.05 at 5 per cent level of significance, which indicates that no
significant difference exists among different branches of the bank as far as total
number of loans raised by each customer is concerned.
Organisation set-up-wise, analysis revealed that maximum number of
respondents (60.5 per cent) from proprietorship form of organisation have raised loan
„one time‟, followed by partnership (58.1 per cent) and from company form of
organisation (45.2 per cent). The table also shows that 21.1 per cent respondents from
proprietorship form of organisation have taken loan „two times‟, followed by
partnership (19.4 per cent) and company (12.9 per cent). Further, the highest number
of respondents who have raised loan „four times or more‟ belong to company form of
organisation (22.6 per cent). The significance value (0.501) is greater than 0.05 at 5
per cent level of significance, which implies that no significant difference exists
between organisation set up-wise as regards total number of loans raised by each
customer.
Turnover-wise, Table 7.15 indicates that majority of respondents (73.7 per
cent) with turnover below Rs 5 crore have raised loan only „one time, followed by
respondents receiving turnover above Rs 15 crore (52.6 per cent) and those whose
turnover is from Rs 5 to 15 crore (39.5 per cent). It has also been observed that 20.9
per cent of the respondents with turnover from Rs 5 to 15 crore have raised loan „two
times‟, followed by respondents generating turnover below Rs 5 crore (18.4 per cent)
and those whose turnover is above Rs 15 crore (10.5 per cent). Further, 23.3 per cent
of the respondents receiving turnover from Rs 5 to 15 crore have highest share
amongst others for taking loan „four times or more‟. The significance value (0.033) is
189
less than 0.05 at 5 per cent level of significance, which indicates that significant
differences exist among different turnover categories of the bank as far as total
number of loans raised by each customer, is concerned.
FACTORS INFLUENCED BORROWERS FOR AVAILING LOAN FROM
SIDBI
To evaluate the respondents‟ opinion about the reasons that influenced them
for taking loan from SIDBI, they were asked to give their assent with regard to same.
Table 7.16 shows the response of the respondents in this context.
Table 7.16
Factors Influenced Borrowers for Availing Loan from SIDBI
Chandigarh Ludhiana Jalandhar Total
Easy Accessibility 16 (48.5) 18 (54.5) 23 (67.6) 57 (57)
Goodwill 10 (30.3) 12 (36.4) 21 (61.8) 43 (43)
Cooperative Staff 26 (78.8) 28 (84.8) 33 (97.1) 87 (87)
More Value Added Services 12 (36.4) 13 (39.4) 10 (29.4) 35 (35)
Prompt Service 17 (51.5) 20 (60.6) 28 (82.4) 65 (65)
Table 7.16 shows that majority of the respondents‟ surveyed considered co-
operative staff (87 per cent) as important factor, while taking loan from the bank. It is
followed by prompt service (65 per cent), easy accessibility (57 per cent), goodwill
(43 per cent) and more value added services (35 per cent) provided by the bank to its
borrowers.
PURPOSE OF LOAN
The bank grants loan to entrepreneurs for acquiring land, building, plant and
machinery etc. The entrepreneurs also approach bank for „setting up of new units‟, for
„expansion, modernisation and diversification of existing units‟ and for acquisition of
„industrial infrastructure‟ for existing units. Table 7.17 shows the branch-wise,
organisation set up-wise and turnover-wise classification of entrepreneurs with regard
to the purpose of taking loan respectively.
190
Table 7.17
Purpose of Loan B
ran
ch
For
Setting up
of New
Units
For Expansion,
Modernisation
and
Diversification
For Industrial
Infrastructure Total
Chi-
Square
Jalandhar 1 (2.9) 31(91.2) 2(5.9) 34(100) χ²= 0.802
d.f. = 4
Sig. =
0.938
Ludhiana 1(3.0) 28(84.8) 4(12.1) 33(100)
Chandigarh 1(3.0) 29(87.9) 3(9.1) 33(100)
Set
-up
Proprietorship 1(2.6) 36(94.7) 1(2.6) 38(100) χ² = 3.106
d.f. = 4
Sig. =
0.540
Partnership 1(3.2) 26(83.9) 4(12.9) 31(100)
Company 1(3.2) 26(83.9) 4(12.9) 31(100)
Tu
rno
ver
Below Rs 5
crore 0(0) 35(92.1) 3(7.9) 38(100)
χ² =
15.034
d.f. = 4
Sig. =
0.005
Rs 5-15 crore 0(0) 40(93.0) 3(7.0) 43(100)
Above Rs 15
crore 3(15.8) 13(68.4) 3(15.8) 19(100)
Total 3(3.0) 88(88.0) 9(9.0) 100(100)
Table 7.17 highlights that a large proportion of respondents (88 per cent) have
taken loan for „expansion, modernisation and diversification‟ of existing units, while
9 per cent respondents have availed loan for acquiring „Industrial infrastructure‟ and
remaining 3 per cent for „setting up of new units‟. Branch-wise analysis reveals that
maximum number of respondents (91.2 per cent) who had taken loan for „expansion,
modernisation and diversification‟ of existing units, have financed by Jalandhar
branch, followed by Chandigarh branch (87.9 per cent) and Ludhiana branch (84.8 per
cent). It has been observed that 12.1 per cent of the respondents financed by Ludhiana
branch have utilised the loan for acquiring „industrial infrastructure‟. Further, 3 per
cent each of the respondents financed by Ludhiana and Chandigarh branch have taken
loan „for setting up of new units‟. The significance value (0.938) is greater than 0.05
at 5 per cent level of significance, which indicates that no significant difference exists
among different branches of the bank with respect to the purpose of taking loan from
the bank.
191
Organisation set-up-wise, table shows that a significant proportion of
respondents (94.7 per cent) who have taken loan „for expansion, modernisation and
diversification‟ of existing units belong to proprietorship form of organisation,
followed by 83.9 per cent each for respondents from partnership and company form of
organisation. The table also shows that 12.9 per cent each of the respondents belongs
to partnership and company form of organisation have utilised the loan for acquiring
„industrial infrastructure‟. The significance value (0.540) is greater than 0.05 at 5 per
cent level of significance, which indicates that no significant difference exists
between organisation set up as regards the purpose for which loans have been granted.
Turnover-wise, Table 7.17 highlights that the highest number of respondents
(93.0 per cent) who borrowed loan „for expansion, modernisation and diversification‟
of existing units were those receiving turnover from Rs 5 to 15 crore, followed by
respondents generating turnover below Rs 5 crore (92.1 per cent) and those whose
turnover is above Rs 15 crore (68.4 per cent). The study also reveals that 15.8 per cent
respondents generating turnover above Rs 15 crore have highest share amongst others
for utilising loan amount for acquiring „industrial infrastructure‟. The significance
value (0.005) is less than 0.05 at 5 per cent level of significance, which indicates that
significant differences exist among different turnover categories of the bank as far as
purpose of taking loans are concerned.
AMOUNT OF LOAN
The amount of loan borrowed varies according to the requirement, purpose of
loan, annual turnover, repaying capacity of the borrower etc. The analysis also
revealed that majority of the respondents took loan after the year 2000 from bank.
Table 7.18 depicts branch-wise, organisation set up-wise and turnover-wise
distribution of loan with respect to amount of loan.
192
Table 7.18
Amount of Loan B
ran
ch
Below
Rs 10 lac
Rs 10 to
20 lac
Above Rs
20 lac Total
Chi-
Square
Jalandhar 1(2.9) 19(55.9) 14(41.2) 34(100) χ²= 9.301
d.f. = 4
Sig. =
0.054
Ludhiana 0(0) 12(36.4) 21(63.6) 33(100)
Chandigarh 4(12.1) 11(33.3) 18(54.5) 33(100)
Set
-up
Proprietorship 2(5.3) 20(52.6) 16(42.1) 38(100) χ² = 3.106
d.f. = 4
Sig. =
0.540
Partnership 2(6.5) 15(48.4) 14(45.2) 31(100)
Company 1(3.2) 7(22.6) 23(74.2) 31(100)
Tu
rnover
Below Rs 5
crore 3(7.9) 25(65.8) 10(26.3) 38(100)
χ² =
22.044
d.f. = 4
Sig. =
0.000
Rs 5-15 crore 2(4.7) 15(34.9) 26(60.5) 43(100)
Above Rs 15
crore 0(0) 2(10.5) 17(89.5) 19(100)
Total 5(5.0) 42(42.0) 53(53.0) 100(100)
It is evident from Table 7.18 that maximum number of respondents (53 per
cent) have availed loans „above Rs 20 lac‟, followed by respondents whose loan
amount is between „Rs 10 to 20 lac‟ (42 per cent) and those who borrowed „below Rs
10 lac‟ (5 per cent). Branch-wise, the table reveals that highest number of respondents
financed by Ludhiana branch (63.6 per cent) have taken loan amount, „above Rs 20
lac‟, followed by respondents from Chandigarh branch (54.5 per cent) and Jalandhar
branch (41.2 per cent). It has also been observed that 55.9 per cent of the respondents
financed by Jalandhar branch have taken loan amount of „Rs 10 to 20 lac‟, followed
by Ludhiana branch (36.4 per cent) and Chandigarh branch (33.3 per cent). Further,
the highest number of respondents (12.1 per cent) whose loan amount is „below Rs 10
lac‟, have been financed by Chandigarh branch. The significance value (0.054) is
greater than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different branches of the bank with regard to the amount of
taking loans.
193
Organisation set-up-wise, analysis shows that a significant proportion of
respondents (74.2 per cent) who have taken loan amount „above Rs 20 lac‟ belong to
company form of organisation, followed by respondents from partnership (45.2 per
cent) and proprietorship form of organisation (42.1 per cent). The table also shows
that 52.6 per cent of the respondents from proprietorship form of organisation have
availed loan amount of „Rs 10 to 20 lac‟, followed by partnership (48.4 per cent) and
company (22.6 per cent). The significance value (0.540) is greater than 0.05 at 5 per
cent level of significance, which indicates that no significant difference exists
between organisation set up-wise as far as the amount of taking loan is concerned.
Turnover-wise, Table 7.18 highlights that the maximum number of
respondents (89.5 per cent) generating turnover above Rs 15 crore have taken loan
amount „above Rs 20 lac‟, followed by respondents receiving turnover of Rs 5 to 15
crore (60.5 per cent) and those whose turnover is below Rs 5 crore (26.3 per cent).
The study also reveals that 65.8 per cent of the respondents generating turnover
below Rs 5 crore have taken loan amount of „Rs 10 to 20 lac‟, followed by
respondents receiving turnover of Rs 5 to 15 crore (34.9 per cent) and whose turnover
is above Rs 15 crore (10.5 per cent). The significance value (0.000) is less than 0.05 at
5 per cent level of significance, which implies that significant differences exist among
different turnover categories of the bank far as the amount of taking loan is
concerned.
DURATION OF LOAN
The duration of loan depends upon the amount of loan, purpose of loan, type
of loan, repaying capacity of the borrower etc. It means the time period during which
the loan amount is to be repayable. Table 7.19 show the branch-wise, organisation set
up-wise and turnover-wise classification of respondents with regard to duration of
loan.
194
Table 7.19
Duration of Loan B
ran
ch
Below 5
Years
5 Years
and Above Total Chi-Square
Jalandhar 31(91.2) 3(8.8) 34(100) χ²= 1.784
d.f. = 2
Sig. = 0.410
Ludhiana 27(81.8) 6(18.2) 33(100)
Chandigarh 30(90.9) 3(9.1) 33(100)
Set
-up
Proprietorship 35(92.1) 3(7.9) 38(100) χ² = 4.797
d.f. = 2
Sig. = 0.091
Partnership 29(93.5) 2(6.5) 31(100)
Company 24(77.4) 7(22.6) 31(100)
Tu
rnover
Below Rs 5
crore 36(94.7) 2(5.3) 38(100)
χ² = 3.263
d.f. = 2
Sig. = 0.196
Rs 5-15 crore 37(86.0) 6(14.0) 43(100)
Above Rs 15
crore 15(78.9) 4(21.1) 19(100)
Total 88(88.0) 12(12.0) 100(100)
Table 7.19 depicts that majority of the respondents have taken loan for the
period of „below 5 years‟ (88 per cent), which is followed by respondents having
tenure „5 years and above‟ (12 per cent). Branch-wise, the table reveals that the
proportion of respondents having loan period of „below 5 years‟ is highest among
those financed by Jalandhar branch (91.2 per cent), followed by Chandigarh branch
(90.9 per cent) and Ludhiana branch (81.8 per cent). Further, maximum proportion of
respondents having loan tenure „5 years and above‟ is among those financed by
Ludhiana branch (18.2 per cent). The significance value (0.410) is greater than 0.05 at
5 per cent level of significance, which indicates that no significant difference exists
among different branches of the bank with respect to duration of loan taken.
Organisation set-up-wise, Table 7.19 highlights that highest number of
respondents having loan period of „below 5 years‟ belong to partnership form of
organisation (93.5 per cent), followed by proprietorship (92.1 per cent) and company
(77.4 per cent). Further, the proportion of respondents having loan tenure „5 years and
above‟ is the highest in company form of organisation (22.6 per cent). The
significance value (0.091) is greater than 0.05 at 5 per cent level of significance,
which implies that no significant difference exists between organisation set up as far
as duration of loan taken, is concerned.
195
Turnover-wise, the table shows that majority of the respondents having loan
tenure of „below 5 years‟ are generating turnover below Rs 5 crore (94.7 per cent),
followed by respondents whose turnover is between Rs 5 to 15 crore (86.0 per cent)
and above Rs 15 crore (78.9 per cent). The highest number of respondents who have
availed loan for a period of „5 years and above‟ are those generating turnover above
Rs 15 crore (21.1 per cent). It is followed by 14.0 per cent respondents receiving
turnover of Rs 5 to 15 crore and 5.3 per cent respondents whose turnover is below Rs
5 crore. The significance value (0.196) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists among different
turnover categories of the bank with respect to duration of loan taken.
RATE OF INTEREST
Every bank levied some percentage on the amount of loan disbursed to its
borrowers so as to increase its income. These additional charges in the form of
interest are required to be paid by the borrower during the tenure of his loan along
with the principal amount borrowed from the bank. Table 7.20 shows the branch-
wise, organisation set up-wise and turnover-wise distribution of respondents in regard
to rate of interest paid by them on loan financed by bank.
Table 7.20 depicts that a large proportion of respondents (83 per cent) have
been paying interest rate of „10 to 15 per cent‟, followed by (16 per cent) respondents
paying interest „upto 10 per cent‟ and only 1 per cent respondent has been paying
interest „above 15 per cent‟. Branch-wise, the maximum percentage of respondents
paying interest rate at „10 to 15 per cent‟ belong to Chandigarh branch (90.9 per cent),
followed by Ludhiana branch (84.8 per cent) and Jalandhar branch (73.5 per cent).
The highest proportion of respondents who have been paying interest „up to 10 per
cent‟, belong to Jalandhar branch (26.5 per cent) and one respondent paying interest
at „above 15 per cent‟ rate belongs to Ludhiana branch (3.0 per cent). The
significance value (0.179) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different branches of the
bank as regards rate of interest paid by beneficiaries.
196
Table 7.20
Rate of Interest
Bra
nc
h
Upto 10% 10-15% Above 15% Total Chi-Square
Jalandhar 9(26.5) 25(73.5) 0(0) 34(100) χ²= 6.285
d.f. = 4
Sig. = 0.179
Ludhiana 4(12.1) 28(84.8) 1(3.0) 33(100)
Chandigarh 3(9.1) 30(90.9) 0(0) 33(100)
Se
t-u
p Proprietorship 6(15.8) 31(81.6) 1(2.6) 38(100) χ² = 3.106
d.f. = 4
Sig. = 0.540
Partnership 6(19.4) 25(80.6) 0(0) 31(100)
Company 4(12.9) 27(87.1) 0(0) 31(100)
Tu
rno
ve
r
Below Rs 5
crore 7(18.4) 31(81.6) 0(0) 38(100)
χ² = 4.610
d.f. = 4
Sig. = 0.330
Rs 5-15 crore 6(14.0) 37(86.0) 0(0) 43(100)
Above Rs 15
crore 3(15.8) 15(78.9) 1(5.3) 19(100)
Total 16(16.0) 83(83.0) 1(1.0) 100(100)
Organisation set-up-wise, table indicates that maximum proportion of the
respondents who have been paying interest at „10 to 15 per cent‟ belong to company
form of organisation (87.1 per cent), followed by respondents from proprietorship
(81.6 per cent) and partnership (80.6 per cent). The analysis further reveals that
highest proportion (19.4 per cent) of the respondents paying interest „upto 10 per cent‟
belong to partnership form of organisation. The significance value (0.540) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists between organisation set up as far as rate of interest paid by
beneficiaries, are concerned.
Turnover-wise, analysis depicts that maximum number of respondents (86.0
per cent) generating turnover of Rs 5 to 15 crore have been paying interest at „10 to
15 per cent‟ while, 18.4 per cent of the respondents with turnover below Rs 5 crore
have been paying interest „upto 10 per cent‟. The significance value (0.330) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different turnover categories of the bank as regards rate of
interest paid by beneficiaries.
197
SECURITY REQUIREMENTS
All the banks require security as an assurance for timely payment of debt by
its borrowers. SIDBI also obtain same form of security either in form of fixed deposit
or collateral security from its entrepreneurs as per its terms and conditions of finance.
Table 7.21 highlights the distribution of respondents with regards to security offered
or not by them to SIDBI.
Table 7.21
Security Requirements
Bra
nch
Yes No Total Chi-Square
Jalandhar 16(47.1) 18(52.9) 34(100) χ²= 1.975
d.f. = 2
Sig. = 0.372
Ludhiana 21(63.6) 12(36.4) 33(100)
Chandigarh 17(51.5) 16(48.5) 33(100)
Set
-up
Proprietorship 21(55.3) 17(44.7) 38(100) χ² = 0.104
d.f. = 2
Sig. = 0.949
Partnership 17(54.8) 14(45.2) 31(100)
Company 16(51.6) 15(48.4) 31(100)
Tu
rnover
Below Rs 5
crore 19(50.0) 19(50.0) 38(100)
χ² = 3.670
d.f. = 2
Sig. = 0.160
Rs 5-15 crore 21(48.8) 22(51.2) 43(100)
Above Rs 15
crore 14(73.7) 5(26.3) 19(100)
Total 54(54.0) 46(46.0) 100(100)
It is evident from Table 7.21 that majority of the respondents (54 per cent)
have „given security‟ to the bank while, 46 per cent of the respondents have availed
loan „without any security‟. Branch-wise analysis reveals that majority of respondents
financed by Ludhiana branch (63.6 per cent) have „given security‟ for availing loan,
followed by respondents financed by Chandigarh branch (51.5 per cent) and Jalandhar
branch (47.1 per cent). Further, 52.9 per cent of the respondents financed by Jalandhar
branch have „not given‟ any security as regards same. The significance value (0.372)
198
is greater than 0.05 at 5 per cent level of significance, which indicates that no
significant difference exists among different branches of the bank as regards security
offered by customers for availing loan from the bank.
Organisation set up-wise, Table 7.21 shows that 55.3 per cent of the
respondents who belong to proprietorship form of organisation have „given security‟
for getting loan, followed by partnership (54.8 per cent) and company (51.6 per cent).
It has also been observed that 48.4 per cent of the respondents from company form of
organisation possess highest share amongst those who have availed loan „without
security‟. The significance value (0.949) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists between
organisation set up with respect to security offered by customers for availing loan
from the bank.
Turnover-wise, the analysis indicates that maximum number of respondents
generating turnover above Rs 15 crore (73.7 per cent) have „given security‟ for
availing loan from SIDBI. Further, 51.2 per cent of the respondents generating
turnover of Rs 5 to 15 crore possess highest share amongst those who have availed
loan „without security‟. The significance value (0.160) is greater than 0.05 at 5 per
cent level of significance, which indicates that no significant difference exists among
different turnover categories of the bank as far as security offered by the customers
for taking loan from SIDBI is concerned.
MORATORIUM PERIOD
In MSME sector, availability of resources are limited that act as a constraint
for these units. As every business unit requires some time for generating income. So,
loan instalment is paid after some time period known as moratorium period. Table
7.22 shows the classification of respondents with regard to the moratorium period of
the loan disbursed by the bank.
199
Table 7.22
Moratorium Period B
ran
ch
Up to 3
months 3-6 months
Above 6
months Total
Chi-
Square
Jalandhar 20(58.8) 14(41.2) 0(0) 34(100) χ²= 6.073
d.f. = 4
Sig. =
0.194
Ludhiana 15(45.5) 17(51.5) 1(3.0) 33(100)
Chandigarh 12(36.4) 18(54.5) 3(9.1) 33(100)
Set
-up
Proprietorship 19(50.0) 18(47.4) 1(2.6) 38(100) χ² = 4.649
d.f. = 4
Sig. =
0.325
Partnership 16(51.6) 15(48.4) 0(0) 31(100)
Company 12(38.7) 16(51.6) 3(9.7) 31(100)
Tu
rnover
Below Rs 5
crore 24(63.2) 13(34.2) 1(2.6) 38(100)
χ² =
12.653
d.f. = 4
Sig. =
0.013
Rs 5-15 crore 20(46.5) 22(51.2) 1(2.3) 43(100)
Above Rs 15
crore 3(15.8) 14(73.7) 2(10.5) 19(100)
Total 47(47.0) 49(49.0) 4(4.0) 100(100)
Table 7.22 shows that highest number of respondents (49 per cent) have
moratorium period of „3 to 6 months‟, followed by (47 per cent) respondents having
moratorium period of „upto 3 months‟ and only 4 per cent respondents have given
„above 6 months‟ period. Branch-wise, the highest number of respondents (58.8 per
cent) financed by Jalandhar branch have moratorium period of „upto 3 months‟
followed by respondents from Ludhiana branch (45.5 per cent) and Chandigarh
branch (36.4 per cent). Further, the highest proportion of respondents financed by
Chandigarh branch (54.5 per cent) have moratorium period of „3 to 6 months‟, and
(9.1 per cent) respondents have given „above 6 months‟ period. The significance value
(0.194) is greater than 0.05 at 5 per cent level of significance, which implies that no
significant difference exists between different branches of the bank as regards
moratorium period given to customers by SDIBI.
Organisation set-up-wise, the table highlights that 51.6 per cent of the
respondents belong to partnership business have moratorium period of „upto 3
months‟ and same proportion of respondents (51.6 per cent) belong to company form
200
of organisation have given „3 to 6 months‟ period in this regard. The significance
value (0.325) is greater than 0.05 at 5 per cent level of significance, which indicates
that no significant difference exists between organisation set up with respect to
moratorium period given to customers by SIDBI.
Turnover-wise, Table 7.22 indicates that a large proportion of respondents
generating turnover above Rs 15 crore (73.7 per cent) have given „3 to 6 months‟
moratorium period. Further, highest proportion of respondents (63.2 per cent)
generating turnover below Rs 5 crore have time period of „up to 3 months‟, while 10.5
per cent of the respondents possess highest share amongst those generating turnover
above Rs 15 crore and having moratorium period of „above 6 months.‟ The
significance value (0.013) is less than 0.05 at 5 per cent level of significance, which
indicates that significant differences exist among different turnover categories of the
bank as far as moratorium period allowed by the bank to its customers is concerned.
REPAYMENT SCHEDULE
The loan borrowed by the entrepreneur has to be returned in specified number
of instalments as per their repaying capacity. Table 7.23 depicts the branch wise,
organisation set up-wise and turnover-wise distribution of respondents in this content.
It is evident from Table 7.23 that a significant proportion of respondents (96
per cent) have been paying their instalments „monthly‟, followed by 3 per cent
respondents paying loan instalments „quarterly‟ and only 1 per cent have been paying
instalments „annually.‟ Branch-wise, table shows that all the respondents financed by
Chandigarh branch (100 per cent) have been paying loan instalments on „monthly‟
basis, followed by respondents from Jalandhar branch (97.1 per cent) and Ludhiana
branch (90.9 per cent). Further, 6.1 per cent of the respondents financed by Ludhiana
branch have been repaying their instalments on „quarterly‟ basis. However, 3.0 per
cent of the respondents financed by Ludhiana branch have been paying instalments
„annually‟. The significance value (0.380) is greater than 0.05 at 5 per cent level of
significance, which implies that no significant difference exists between different
branches of the bank as far as the repayment schedule of the bank is concerned.
201
Table 7.23
Repayment Schedule B
ran
ch
Monthly Quarterly Annually Total Chi-
Square
Jalandhar 33(97.1) 1(2.9) 0(0) 34(100) χ²= 4.199
d.f. = 4
Sig. =
0.380
Ludhiana 30(90.9) 2(6.1) 1(3.0) 33(100)
Chandigarh 33(100) 0(0.0) 0(0.0) 33(100)
Set
-up
Proprietorship 38(100) 0(0.0) 0(0.0) 38(100) χ² = 3.287
d.f. = 4
Sig. =
0.511
Partnership 40(93.0) 2(4.7) 1(2.3) 43(100)
Company 18(94.7) 1(5.3) 0(0.0) 19(100)
Tu
rnover
Below Rs 5
crore 36(94.7) 2(5.3) 0(0.0) 38(100)
χ² = 3.820
d.f. = 4
Sig. =
0.431
Rs 5-15 crore 30(96.8) 1(3.2) 0(0.0) 31(100)
Above Rs 15
crore 30(96.8) 0(0.0) 1(3.2) 31(100)
Total 96(96.0) 3(3.0) 1(1.0) 100(100)
Organisation set-up-wise, analysis reveals that all the respondents from
proprietorship form of organisation (100 per cent) have been repaying on „monthly‟
basis, followed by respondents from company (94.7 per cent) and partnership concern
(93.0 per cent). Further, 5.3 per cent of the respondents from partnership concern have
been paying instalments on „quarterly‟ basis. The significance value (0.511) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists between organisations set up as regards the repayment schedule of
the bank.
Turnover-wise, table highlights that (96.8 per cent each) of the respondents
generating turnover of Rs 5 to 15 crore and above Rs 15 crore have been repaying on
„monthly‟ basis while, 5.3 per cent of the respondents with turnover below Rs 5 crore
have been paying instalments on „quarterly‟ basis. The significance value (0.431) is
greater than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different turnover categories of the bank as far as repayment
schedule of the bank is concerned.
202
RESPONDENTS OPINION ABOUT ADEQUACY OF LOAN AMOUNT
The amount of loan granted by the bank should be sufficient to meet the
requirements of the borrower. If the bank grants insufficient amount of loan then
borrower has to make good the insufficiency through other sources in order to fulfil
their needs. So, to know the adequacy of the loan amount supplied by SIDBI, the
respondents were asked to give their opinion about the same. Table 7.24 shows the
branch-wise, organisation set up-wise and turnover-wise classification of the
respondents in this context.
Table 7.24
Respondents Opinion about Adequacy of Loan Amount
Bra
nch
Yes No Total Chi-Square
Jalandhar 29(85.3) 5(14.7) 34(100) χ²= 1.342
d.f. = 2
Sig. = 0.511
Ludhiana 31(93.9) 2(6.1) 33(100)
Chandigarh 29(87.9) 4(12.1) 33(100)
Set
-up
Proprietorship 34(89.5) 4(10.5) 38(100) χ² = 4.133
d.f. = 2
Sig. = 0.127
Partnership 25(80.6) 6(19.4) 31(100)
Company 30(96.8) 1(3.2) 31(100)
Tu
rnover
Below Rs 5
crore 32(84.2) 6(15.8) 38(100)
χ² = 6.157
d.f. = 2
Sig. = 0.046
Rs 5-15 crore 42(97.7) 1(2.3) 43(100)
Above Rs 15
crore 15(78.9) 4(21.1) 19(100)
Total 89(89.0) 11(11.0) 100(100)
Table 7.24 indicates that majority of the respondents (89 per cent) have got the
full amount of loan as applied while, 11 per cent of the respondents have to meet their
partial requirement from other sources also. The maximum number of respondents
fulfils their requirements from their own savings and some of them borrowed from
their friends/relatives and from other institutions. Branch-wise, table shows that
highest number of respondents who got full amount of loan as applied have those
financed by Ludhiana branch (93.9 per cent), followed by respondents from
Chandigarh branch (87.9 per cent) and Jalandhar branch (85.3 per cent). The highest
number of respondents who got partial amount of loan as applied have those financed
203
by Jalandhar branch (14.7 per cent). The significance value (0.511) is greater than
0.05 at 5 per cent level of significance, which indicates that no significant difference
exists among different branches of the bank as regards adequacy of loan amount
sanctioned.
Organisation set-up-wise, table depicts that a large number of respondents
who got adequate amount of loan belong to company form of organisation (96.8 per
cent). It is followed by respondents from proprietorship concern (89.5 per cent) and
by those from partnership concern (80.6 per cent). Further, the highest number of
respondents belong to partnership form of organisation (19.4 per cent) have got
inadequate amount of loan from the bank. The significance value (0.127) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different organisation set up regarding adequacy of the loan
amount sanctioned by the bank.
Turnover-wise, the analysis reveals that the highest level of satisfaction
regarding adequacy of loan amount have shown by respondents with turnover of Rs 5
to 15 crore (97.7 per cent), followed by those whose turnover is below Rs 5 crore
(84.2 per cent) and above Rs 15 crore (78.9 per cent). Further, 21.1 per cent of the
respondents generating turnover above Rs 15 crore, possess highest share amongst
those who did not get full amount of loan from the bank. The significance value
(0.046) is less than 0.05 at 5 per cent level of significance, which implies that
significant differences exist between different turnover categories of the bank with
regard to adequacy of loan amount sanctioned by SIDBI.
FUNDS FINANCED BY RESPONDENTS FROM THEIR OWN RESOURCES
All the banks usually finance major proportion of the project cost and the
remaining share has to be contributed by the borrower. Likewise, SIDBI also grants
assistance through contributing about its three-forth share in the project cost and the
balance would be met by the borrowers out of their own resources. In order to
examine the percentage of funds financed by respondents out of their own resources,
they were asked to give their opinion about the same. Branch-wise, organisation set
up-wise and turnover-wise response of the respondents in this regard have been given
in Table 7.25.
204
Table 7.25
Funds Financed by Respondents from their Own Resources B
ran
ch
Upto 25% Above
25%
Total Chi-Square
Jalandhar 30(88.2) 4(11.8) 34(100) χ²= 2.564
d.f. = 2
Sig. = 0.633
Ludhiana 24(72.7) 9(27.3) 33(100)
Chandigarh 27(81.8) 6(18.2) 33(100)
Set
-up
Proprietorship 31(73.7) 10(26.3) 41(100) χ² = 2.564
d.f. = 2
Sig. = 0.633
Partnership 28(83.9) 5(16.1) 33(100)
Company 22(84.62) 4(15.38) 36(100)
Tu
rnover
Below Rs 5
crore 28(73.70) 10(26.30)
38(100)
χ² = 4.988
d.f. = 2
Sig. = 0.289
Rs 5-15 crore 37(86.00) 6(14.0) 43(100)
Above Rs 15
crore 16(84.20) 3(15.8)
19(100)
Total 81(81.0) 19(19.0) 100(100)
It is evident from the table that majority of the respondents (81 per cent) have
contributed „up to 25 per cent‟ of the project cost out of their own funds, while 19 per
cent of the respondents have contributed „above 25 per cent‟ as regards same. Branch-
wise, analysis reveals that highest number of respondents financed by Jalandhar
branch (88.2 per cent) have contributed „upto 25 per cent‟ of the project cost,
followed by Chandigarh branch (81.8 per cent) and Ludhiana branch (72.7 per cent).
The highest number of respondents who contributed „above 25 per cent‟ of the project
cost out of own resources were those financed by Ludhiana branch (27.3 per cent).
The significance value (0.633) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different branches of the
bank as regards the funds financed by beneficiaries out of their own resources.
Organisation set up-wise, table depicts that majority of the respondents who
have contributed „upto 25 per cent‟ of the project cost belong to company form of
organisation (84.62 per cent), followed by partnership (83.9 per cent) and
proprietorship (73.7 per cent). It has also been observed that 26.3 per cent of the
respondents belong to proprietorship concern got highest share amongst those who
205
contributed „above 25 per cent‟ of the project cost out of their own resources. The
significance value (0.633) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different organisation set
up regarding the funds financed by beneficiaries out of their own resources.
Turnover-wise, analysis revealed that highest number of the respondents (86.0
per cent) with turnover of Rs 5 to 15 crore have contributed „upto 25 per cent‟ of the
project cost. The maximum percentage of respondents contributed „above 25 per cent‟
of project cost were those with turnover below Rs 5 crore (26.3 per cent). The
significance value (0.289) is greater than 0.05 at 5 per cent level of significance,
which implies that no significant difference exists between different turnover
categories of the bank with respect to funds financed by beneficiaries out of their own
resources.
PRE-VISIT BY BANK OFFICIALS
It is required that proper inspection to be made by the bank authorities before
granting loan to its borrowers. This must be done to ensure that loan amount should
be utilised by the borrower for designated purpose as stated than otherwise. To
ascertain whether the bank authorities made pre-visit prior to the sanction of loan, the
respondents were asked to give their response in this regard. Table 7.26 shows the
response of respondents surveyed in this context.
Table 7.26
Pre-Visit by Bank Officials
Branch Yes No
Chandigarh 33 (33) 0
Ludhiana 33 (33) 0
Jalandhar 34 (34) 0
Total 100 (100) 0
The table shows that all the respondents have given their consent that the bank
authorities made a pre-visit prior to the sanction of loan. The respondents belong to all
the three branches ensured that pre-visit was made by bank authorities before granting
loan to them.
206
PROBLEMS FACED BY RESPONDENTS IN SANCTION AND
DISBURSEMENT OF LOAN
It is obligatory for all the banks to follow guidelines specified by RBI before
making sanction and disbursement of loan to borrowers. So, every bank takes some
time in processing loan as per the criteria laid down. So, to know the problems faced
by respondents in availing loan from SIDBI, they were asked to give their opinion
about it. Table 7.27 highlights branch-wise, organisation set up-wise and turnover-
wise distribution of respondent‟s opinion in this context.
Table 7.27 depicts that a significant proportion of the respondents (95 per
cent) have not faced any problem while getting loan from the bank. Whereas, 5 per
cent of the respondents viewed procedural formalities, insufficient information
provided by the staff and inefficient working system as major constraints while
getting loan from the bank. Branch-wise, table shows that a large proportion of
respondents financed by Jalandhar branch (97.1 per cent) have faced no problem in
availing loan from the bank. It is followed by respondents financed by Chandigarh
branch (97.0 per cent) and Ludhiana branch (90.9 per cent). The highest number of
respondents financed by Ludhiana branch (9.1 per cent) faced problems as regards
same. The significance value (0.420) is greater than 0.05 at 5 per cent level of
significance, which implies that no significant difference exists among different
branches of the bank with regard to problems faced by respondents in availing loan
from the bank.
Table 7.27
Problems Faced by Respondents in Sanction and Disbursement of Loan
Bra
nch
Yes No Total Chi-Square
Jalandhar 1(2.9) 33(97.1) 34(100) χ²= 1.736
d.f. = 2
Sig. = 0.420
Ludhiana 3(9.1) 30(90.9) 33(100)
Chandigarh 1(3.0) 32(97.0) 33(100)
Set
-up
Proprietorship 3(7.9) 35(92.1) 38(100) χ² = 2.439
d.f. = 2
Sig. = 0.295
Partnership 2(6.5) 29(93.5) 31(100)
Company 0(0.0) 31(100) 31(100)
Tu
rnover
Below Rs 5
crore 2(5.3) 36(94.7) 38(100)
χ² = 1.875
d.f. = 2
Sig. = 0.392
Rs 5-15 crore 1(2.3) 42(97.7) 43(100)
Above Rs 15
crore 2(10.5) 17(89.5) 19(100)
Total 5(5.0) 95(95.0) 100(100)
207
Organisations set up wise, table indicates that all the respondents form
company form of organisation (100 per cent) have not faced any problem in availing
loan from the bank. It is followed by respondents from partnership firm (93.5 per
cent) and proprietorship firm (92.1 per cent). Further, the maximum number of
respondents belong to proprietorship business (7.9 per cent) faced problems in this
regard. The significance value (0.295) is greater than 0.05 at 5 per cent level of
significance, which implies that no significant difference exists between different
organisation set up as regards problems faced by respondents in getting loan from
SIDBI.
Turnover-wise, analysis revealed that maximum number of respondents
generating turnover of Rs 5 to 15 core (97.7 per cent) have not faced any problem in
availing loan from the bank. It is followed by respondents with turnover below Rs 5
crore (94.7 per cent) and above Rs 15 crore (89.5 per cent). Further, 10.5 per cent of
the respondents receiving turnover above Rs 15 crore possess the highest share
amongst those who experienced difficulty while getting loan from the bank. The
significance value (0.392) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different turnover
categories of the bank with regard to problems faced by respondents in availing loan
from the bank.
REBATE OFFERED BY THE BANK FOR TIMELY REPAYMENT OF LOAN
Some banks provide concession to their respondents having good track record in
repayment of loan. SIDBI also provides concession to its premium customers who
have been dealing with the bank from more than 5 years and whose loan amount
varies between Rs 1 crore or more on the basis of the criteria followed as regards
same. Table 7.28 highlights the responses of the respondents in this context.
Table 7.28
Rebate Offered by Bank for Timely Repayment of Loan
Branch Yes No
Chandigarh 0 33 (33)
Ludhiana 0 33 (33)
Jalandhar 0 34 (34)
Total 0 100 (100)
208
Table 7.28 shows that all the respondents belong to three branches were not
offered rebate by the bank for paying instalments on time. This is so because these
respondents were not covered under the criteria specified by SIDBI for granting
concession for timely repayment of loan.
AWARENESS REGARDING PROJECT APPRAISAL PROCESS
SIDBI undertakes appraisal of projects for examining the viability and
bankability of the projects through its project appraisal process. SIDBI evaluates the
techno-financial viability of the project before granting loan to the borrowers. To
know the level of awareness regarding the project appraisal process, respondents were
asked to give their assent with respect to same. Table 7.29 depicts the branch-wise,
organisation set up-wise and turnover-wise classification of the respondents regarding
awareness of project appraisal process.
Table 7.29
Awareness Regarding Project Appraisal Process
Bra
nch
Yes No Total Chi-Square
Jalandhar 12(35.3) 22(64.7) 34(100) χ²= 0.951
d.f. = 2
Sig. = 0.622
Ludhiana 15(45.5) 18(54.5) 33(100)
Chandigarh 15(45.5) 18(54.5) 33(100)
Set
-up
Proprietorship 19(50.0) 19(50.0) 38(100) χ² = 2.206
d.f. = 2
Sig. = 0.332
Partnership 10(32.3) 21(67.7) 31(100)
Company 13(41.9) 18(58.1) 31(100)
Tu
rnover
Below Rs 5
crore 20(52.6) 18(47.4)
38(100)
χ² = 3.015
d.f. = 2
Sig. = 0.221
Rs 5-15 crore 16(37.2) 27(62.8) 43(100)
Above Rs 15
crore 6(31.6) 13(68.4)
19(100)
Total 42(42.0) 58(58.0) 100(100)
It is evident from Table 7.29 that majority of the respondents (58 per cent) are
not aware of the projects appraisal process of the bank, while 42 per cent of the
respondents have awareness regarding the same. Branch-wise, analysis indicates that
45.5 per cent each of the respondents financed by Ludhiana and Chandigarh branch
have knowledge about project appraisal process, followed by respondents from
Jalandhar branch (35.3 per cent). The majority of the respondents financed by
Jalandhar branch (64.7 per cent) have no information as regards same. The
significance value (0.622) is greater than 0.05 at 5 per cent level of significance,
209
which indicates that no significant difference exists among different branches of the
bank with respect to awareness regarding project appraisal process of the bank.
Organisation set up-wise, the table shows that highest number of respondents
having awareness regarding project appraisal process conducted by the bank belongs
to proprietorship form of organisation (50.0 per cent). The majority of the respondents
(67.7 per cent) from partnership form of organisation have no knowledge regarding
the same. The significance value (0.332) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists between
organisation set up with regard to awareness about project appraisal process of SIDBI.
Turnover-wise, Table 7.29 highlights that the highest level of awareness
regarding project appraisal process have shown by respondents generating turnover
below Rs 5 crore (52.6 per cent). Further, a large number of respondents (68.4 per
cent) with turnover above Rs 15 crore have no knowledge as regards same. The
significance value (0.221) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists between different turnover
categories of the bank with respect to awareness regarding project appraisal process of
the bank.
RESPONDENTS OPINION REGARDING PROJECT APPRAISAL PROCESS
As stated above, that the bank conducts feasibility analysis to know the
viability of the project. So, to examine the opinion of the respondents regarding the
appropriateness of project appraisal process, they were asked to give their response in
this regard. Table 7.30 shows the branch-wise, organisation set up-wise and turnover-
wise distribution of the respondents in this context.
Table 7.30
Respondents Opinion Regarding Project Appraisal Process
Bra
nch
Yes No Total Chi-Square
Jalandhar 32(94.1) 2(5.9) 34(100) χ²= 1.533
d.f. = 2
Sig. = 0.465
Ludhiana 28(84.8) 5(15.2) 33(100)
Chandigarh 29(87.9) 4(12.1) 33(100)
Set
-up
Proprietorship 35(92.1) 3(7.9) 38(100) χ² = 3.240
d.f. = 2
Sig. = 0.198
Partnership 25(80.6) 6(19.4) 31(100)
Company 29(93.5) 2(6.5) 31(100)
Tu
rnover
Below Rs 5
crore 31(81.6) 7(18.4) 38(100)
χ² = 3.912
d.f. = 2
Sig. = 0.141
Rs 5-15 crore 41(95.3) 2(4.7) 43(100)
Above Rs 15
crore 17(89.5) 2(10.5) 19(100)
Total 89(89.0) 11(11.0) 100(100)
210
Table 7.30 indicates that despite of less awareness about the project appraisal
process, majority of the respondents (89 per cent) have favourable opinion about the
appraisal process while, 11 per cent of the respondents have shown their disagreement
towards the proper conduct of the appraisal process by the bank officials. Branch-
wise, table depicts that a vast majority of the respondents financed by Jalandhar
branch (94.1 per cent) have given their positive response regarding the project
appraisal process conducted by the bank. It is followed by Chandigarh branch (87.9
per cent) and Ludhiana branch (84.8 per cent). Further, 15.2 per cent of the
respondents financed by Ludhiana branch have maximum percentage among those
who have given negative response as regards same. The significance value (0.465) is
greater than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different branches of the bank as regards appropriateness of
the project appraisal process of the SIDBI.
Organisation set up-wise, analysis revealed that a significant proportion of
respondents belong to company form of organisation (93.5 per cent) have given
favourable opinion about the appraisal process, whereas the highest number of
respondents belong to partnership concern (19.4 per cent) have given unfavourable
opinion in this context. The significance value (0.198) is greater than 0.05 at 5 per
cent level of significance, which indicates that no significant difference exists
between different organisation set up as far as appropriateness of the project appraisal
process of the SIDBI, is concerned.
Turnover-wise, table highlights that a large proportion of respondents
generating turnover of Rs 5 to 15 crore (95.3 per cent), have given their positive
response about the appropriateness of the project appraisal process. Further, 18.4 per
cent of respondents generating turnover below Rs 5 crore possess highest share
amongst those respondents who have given their negative opinion in this regard. The
significance value (0.141) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different turnover
categories of the bank as regards appropriateness of the project appraisal process of
the bank.
211
TRAINING PROGRAMMES CONDUCTED BY ENTREPRENEURS FOR
WORKERS
Most of the MSME units provide training to their workers so as to enhance
their skill and efficiency. These training programmes were either arranged in-house
(i.e. within enterprise) or given through external agencies run by N.G.O.‟s, Industries
Association, government institutions etc. In this context, opinion of the entrepreneurs
has been taken to know their level of concern for increasing the efficiency of workers
employed by them in their industrial concerns. Table 7.31 depicts the branch-wise,
organisation set up-wise and turnover-wise classification of the respondents with
respect to the same.
Table 7.31
Training Programme Conducted By Entrepreneurs for Workers
Bra
nch
Yes No Total Chi-Square
Jalandhar 23(67.6) 11(32.4) 34(100) χ²= 1.744
d.f. = 2
Sig. = 0.418
Ludhiana 20(60.6) 13(39.4) 33(100)
Chandigarh 25(75.8) 8(24.2) 33(100)
Set
-up
Proprietorship 27(71.1) 11(28.9) 38(100) χ² = 0.337
d.f. = 2
Sig. = 0.845
Partnership 21(67.7) 10(32.3) 31(100)
Company 20(64.5) 11(35.5) 31(100)
Tu
rnover
Below Rs 5
crore 25(65.8) 13(34.2)
38(100)
χ² = 2.916
d.f. = 2
Sig. = 0.233
Rs 5-15 crore 27(62.8) 16(37.2) 43(100)
Above Rs 15
crore 16(84.2) 3(15.8)
19(100)
Total 68(68.0) 32(32.0) 100(100)
It is evident from Table 7.31 that majority of the respondents (68 per cent)
have arranged training for their workers, while 32 per cent of the respondents usually
hire only trained workers so as to avoid the cumbersome procedure of conducting
training programme at their industrial unit. The analysis also disclosed that all the
respondents surveyed have given their positive consent in regard to that training result
in increasing the skill and efficiency of their workers. Branch-wise, table shows that
212
highest number of respondents financed by Chandigarh branch (75.8 per cent) have
given training to their workers, followed by Jalandhar branch (67.6 per cent) and
Ludhiana branch (60.6 per cent). Further, 39.4 per cent of the respondents financed by
Ludhiana branch possess highest share amongst those who did not arrange any
training for their workers. The significance value (0.418) is greater than 0.05 at 5 per
cent level of significance, which implies that no significant difference exists among
different branches of the bank as regards training programmes conducted by
entrepreneurs for its workers.
Organisation set up-wise, analysis shows that a large number of respondents
provided training to their workers belong to proprietorship form of organisation (71.1
per cent), followed by partnership (67.7 per cent) and company (64.5 per cent). The
maximum number of respondents (35.5 per cent) belong to company form of
organisation who did not provide training to their workers. The significance value
(0.845) is greater than 0.05 at 5 per cent level of significance, which indicates that no
significant difference exists between different organisation set up as regards training
programmes conducted by entrepreneurs for its workers.
Turnover-wise, table indicates that a significant proportion of respondents
whose turnover is above Rs 15 crore (84.2 per cent) have arranged training for their
workers. Further, 37.2 per cent respondents receiving turnover of Rs 5 to 15 crore
possess highest share amongst those who did not provide training to their workers.
The significance value (0.233) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different turnover
categories of the bank with regard to training programmes conducted by entrepreneurs
for its workers.
AWARENESS REGARDING SUBSIDY SCHEMES
The bank provides subsidy to entrepreneurs under two Government subsidy
schemes namely, Credit Linked Capital Subsidy Scheme (CLCSS) and Credit Linked
Capital Subsidy-Textile Upgradation Fund Scheme (CLCS-TUFS). The respondents
were asked to give their opinion about their awareness as regards same. Table 7.32
and 7.33 show the branch-wise, organisation set up-wise and turnover-wise response
of the respondents with respect to the same.
213
Table 7.32
Awareness Regarding Credit Linked Capital Subsidy Scheme (CLCSS) B
ran
ch
Yes No Total Chi-Square
Jalandhar 24(70.6) 10(29.4) 34(100) χ²= 2.074
d.f. = 2
Sig. = 0.355
Ludhiana 27(81.8) 6(18.2) 33(100)
Chandigarh 22(66.7) 11(33.3) 33(100)
Set
-up
Proprietorship 29(76.3) 9(23.7) 38(100) χ² = 0.342
d.f. = 2
Sig. = 0.843
Partnership 22(71.0) 9(29.0) 31(100)
Company 22(71.0) 9(29.0) 31(100)
Tu
rnover
Below Rs 5
crore 28(73.7) 10(26.3) 38(100)
χ² = 0.578
d.f. = 2
Sig. = 0.749
Rs 5-15 crore 30(69.8) 13(30.2) 43(100)
Above Rs 15
crore 15(78.9) 4(21.1) 19(100)
Total 73(73.0) 27(27.0) 100(100)
Table 7.32 shows that majority of the respondents (73 per cent) have
awareness regarding CLCSS, while 27 per cent of the respondents have unawareness
as regards same. Branch-wise, the highest level of awareness regarding CLCSS have
shown by respondents financed by Ludhiana branch (81.8 per cent), followed by
Jalandhar branch (70.6 per cent) and Chandigarh branch (66.7 per cent). It has also
been observed that 33.3 per cent of the respondents financed by Chandigarh branch
have not been aware regarding the CLCSS. The significance value (0.355) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different branches of the bank as regards awareness about
CLCSS.
Organisation set up-wise, analysis indicates that maximum number of
respondents having knowledge about the CLCSS, belong to proprietorship form of
organisation (76.3 per cent), followed by partnership and company (71.0 per cent
each). Further, 29.0 per cent each of the respondents have unawareness regarding the
CLCSS belong to partnership and company form of organisation. The significance
value (0.843) is greater than 0.05 at 5 per cent level of significance, which indicates
that no significant difference exists between different organisation set up as regards
awareness about CLCSS.
214
Turnover-wise, table highlights that the highest level of awareness regarding
subsidy scheme has shown by respondents generating turnover above Rs 15 crore
(78.9 per cent). Further, 30.2 per cent of the respondents generating turnover of Rs 5
to 15 crore have shown the highest level of unawareness as regards the same. The
significance value (0.749) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different turnover
categories of the bank with regard to awareness about CLCSS.
Table 7.33
Awareness Regarding Credit Linked Capital Subsidy-Textile Upgradation Fund
Scheme (CLCS-TUFS)
Bra
nch
Yes No Total Chi-Square
Jalandhar 20(58.8) 14(41.2) 34(100) χ²= 1.040
d.f. = 2
Sig. = 0.595
Ludhiana 18(54.5) 15(45.5) 33(100)
Chandigarh 22(66.7) 11(33.3) 33(100)
Set
-up
Proprietorship 25(65.8) 13(34.2) 38(100) χ² = 1.461
d.f. = 2
Sig. = 0.482
Partnership 16(51.6) 15(48.4) 31(100)
Company 19(61.3) 12(38.7) 31(100)
Tu
rnover
Below Rs 5
crore 25(65.8) 13(34.2) 38(100)
χ² = 1.023
d.f. = 2
Sig. = 0.600
Rs 5-15 crore 25(58.1) 18(41.9) 43(100)
Above Rs 15
crore 10(52.6) 9(47.4) 19(100)
Total 60(60.0) 40(40.0) 100(100)
Table 7.33 depicts that proportionately 60 per cent of the respondents have
knowledge about CLCS-TUFS, while 40 per cent of the respondents have no
knowledge about the scheme. Branch-wise, analysis reveals that the highest level of
awareness regarding CLCS-TUFS have shown by respondents financed by
Chandigarh branch (66.7 per cent), followed by Jalandhar branch (58.8 per cent) and
Ludhiana branch (54.5 per cent). Further, majority of the respondents financed by
Ludhiana branch (45.5 per cent) have unawareness regarding the scheme. The
significance value (0.595) is greater than 0.05 at 5 per cent level of significance,
which indicates that no significant difference exists among different branches of the
bank as regards awareness about CLCS-TUFS.
215
Organisation set up-wise, table shows that maximum number of respondents
from proprietorship form of organisation (65.8 per cent) have information about the
CLCSS-TUFS, followed by company (61.3 per cent) and partnership (51.6 per cent).
Further, 48.4 per cent of the respondents from partnership form of organisation have
no knowledge about the scheme. The significance value (0.482) is greater than 0.05 at
5 per cent level of significance, which indicates that no significant difference exists
among different organisation set up regarding awareness about CLCS-TUFS.
Turnover-wise, table highlights that maximum level of awareness regarding
CLCSS-TUFS has shown by respondents generating turnover below Rs 5 crore (65.8
per cent). Further, 47.4 per cent of the respondents generating turnover above Rs 15
crore possess the highest share amongst those having unawareness regarding CLCSS-
TUFS. The significance value (0.600) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists between different
turnover categories of the bank as far as awareness regarding CLCS-TUFS, is
concerned.
RESPONDENTS OPINION REGARDING INFORMATION PROVIDED BY
SIDBI ABOUT SUBSIDY SCHEMES.
The basic motive of entrepreneurs behind approaching SIDBI for availing loan
is subsidy. The bank through government subsidy schemes provides additional
assistance to entrepreneurs seeking investment in fixed assets. So, to examine the
respondent‟s opinion regarding information provided by SIDBI about the subsidy
schemes available, they were asked to give their response in this regard. Branch-wise,
organisation set up-wise and turnover-wise opinion of the respondents in this context
have been given in Table 7.34.
216
Table 7.34
Respondents Opinion Regarding Information Provided by SIDBI about
Subsidy Schemes
Bra
nch
Yes No Total Chi-Square
Jalandhar 31(91.2) 3(8.8) 34(100) χ²= 3.443
d.f. = 2
Sig. = 0.179
Ludhiana 29(87.9) 4(12.1) 33(100)
Chandigarh 25(75.8) 8(24.2) 33(100)
Set
-up
Proprietorship 31(81.6) 7(18.4) 38(100) χ² = 0.563
d.f. = 2
Sig. = 0.755
Partnership 27(87.1) 4(12.9) 31(100)
Company 27(87.1) 4(12.9) 31(100)
Tu
rno
ver
Below Rs 5
crore 31(81.6) 7(18.4) 38(100)
χ² = 1.990
d.f. = 2
Sig. = 0.370
Rs 5-15 crore 39(90.7) 4(9.3) 43(100)
Above Rs 15
crore 15(78.9) 4(21.1) 19(100)
Total 85(85.0) 15(15.0) 100(100)
It is evident from the table that vast majority of the respondents (85 per cent)
have been informed by the bank regarding the subsidy schemes, while 15 per cent of
the respondents have got no intimation as regards same. Branch-wise, table depicts
that highest level of information obtained through bank about subsidy schemes has
shown by respondents financed by Jalandhar branch (91.2 per cent), followed by
Ludhiana branch (87.9 per cent) and Chandigarh branch (75.8 per cent). Further, the
highest number of respondents financed by Chandigarh branch (24.2 per cent) has got
no information from SIDBI in this context. The significance value (0.179) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different branches of the bank as regards information
provided by the bank about subsidy schemes.
Organisation set up-wise, analysis reveals that a large number of respondents
from partnership and company form of organisation (87.1 per cent each) have been
informed by the bank about subsidy schemes. Further, 18.4 per cent of the
respondents from proprietorship form of organisation got highest share amongst those
who have not been informed by the bank as regards same. The significance value
217
(0.755) is greater than 0.05 at 5 per cent level of significance, which implies that no
significant difference exists among different organisation set up with regard to
information provided by the bank about subsidy schemes.
Turnover-wise, the table indicates that significant proportion of respondents
generating turnover of Rs 5 to 15 crore (90.7 per cent) have got information about
subsidy schemes from the bank while, 21.1 per cent of the respondents generating
turnover above Rs 15 crore got no information as regards same. The significance
value (0.370) is greater than 0.05 at 5 per cent level of significance, which indicates
that no significant difference exists between different turnover categories of the bank
with respect to information provided by the bank about subsidy schemes.
AWARENESS REGARDING DEVELOPMENT PROGRAMMES
The bank grants assistance for organising various development programmes
for upgradation of human resource. These programmes have been executed through
various N.G.O.‟s government institutions or Industries Association associated with
the bank. So, to know the level of awareness regarding development programmes
organised through bank, viz. Micro Enterprise Promotion Programmes (MEPPs),
Entrepreneurship Development Programmes (EDPs), Management Development
Programmes (MDPs) and Technology Upgradation Programmes (TUPs) respondents
were asked to give their assent in this context. Table 7.35, 7.36, 7.37 and 7.38 show
the branch-wise, organisation set up-wise and turnover-wise distribution of the
respondents about awareness regarding development programmes organised through
SIDBI.
It is evident from Table 7.35 that majority of the respondents (69 per cent)
have awareness regarding MEPPs, while 31 per cent of the respondents have no
knowledge as regards same. Branch-wise, the significant level of awareness regarding
MEPPs have been shown by respondents financed by Chandigarh branch (87.9 per
cent), followed by Ludhiana branch (66.7 per cent) and Jalandhar branch (52.9 per
cent). Further, the highest number of respondents financed by Jalandhar branch (47.1
per cent) have no awareness regarding the MEPPs. The significance value (0.008) is
less than 0.05 at 5 per cent level of significance, which indicates that significant
difference exists among different branches of the bank as regards awareness about
MEPPs conducted through SIDBI.
218
Table 7.35
Awareness Regarding Micro Enterprise Promotion Programme (MEPPs) B
ran
ch
Yes No Total Chi-Square
Jalandhar 18(52.9) 16(47.1) 34(100) χ²= 9.682
d.f. = 2
Sig. = 0.008
Ludhiana 22(66.7) 11(33.3) 33(100)
Chandigarh 29(87.9) 4(12.1) 33(100)
Set
-up
Proprietorship 29(76.3) 9(23.7) 38(100) χ² = 1.534
d.f. = 2
Sig. = 0.465
Partnership 20(64.5) 11(35.5) 31(100)
Company 20(64.5) 11(35.5) 31(100)
Tu
rnover
Below Rs 5
crore 26(68.4) 12(31.6) 38(100)
χ² = 1.188
d.f. = 2
Sig. = 0.552
Rs 5-15 crore 28(65.1) 15(34.9) 43(100)
Above Rs 15
crore 15(78.9) 4(21.1) 19(100)
Total 69(69.0) 31(31.0) 100(100)
Organisation set up-wise, analysis depicts that highest level of awareness
regarding MEPPs have shown by respondents from proprietorship form of
organisation (76.3 per cent), followed by partnership and company form of
organisation (64.5 per cent each). Further, 35.5 per cent each of the respondents
belongs to partnership and company form of organisation have no knowledge about
the MEPPs. The significance value (0.465) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists between different
organisations set up with respect to awareness about MEPPs conducted through the
bank.
Turnover-wise, the table highlights that highest level of awareness regarding
MEPPs have shown by respondents generating turnover above Rs 15 crore (78.9 per
cent) whereas, 34.9 per cent of the respondents receiving turnover of Rs 5 to 15 crore
have unawareness as regards same. The significance value (0.552) is greater than 0.05
at 5 per cent level of significance, which indicates that no significant difference exists
between different turnover categories of the bank as regards awareness about MEPPs
conducted through SIDBI.
219
Table 7.36
Awareness Regarding Entrepreneurship Development Programmes (EDPs) B
ran
ch
Yes No Total Chi-Square
Jalandhar 32(94.1) 2(5.9) 34(100) χ²= 25.245
d.f. = 2
Sig. = 0.000
Ludhiana 32(97.0) 1(3.0) 33(100)
Chandigarh 18(54.5) 15(45.5) 33(100)
Set
-up
Proprietorship 27(71.1) 11(28.9) 38(100) χ² = 5.960
d.f. = 2
Sig. = 0.051
Partnership 26(83.9) 5(16.1) 31(100)
Company 29(93.5) 2(6.5) 31(100)
Tu
rnover
Below Rs 5
crore 29(76.3) 9(23.7) 38(100)
χ² = 1.637
d.f. = 2
Sig. = 0.441
Rs 5-15 crore 36(83.7) 7(16.3) 43(100)
Above Rs 15
crore 17(89.5) 2(10.5) 19(100)
Total 82(82.0) 18(18.0) 100(100)
Table 7.36 highlights that a large proportion of respondents (82 per cent) have
knowledge regarding the EDPs, while 18 per cent of the respondents lack awareness
in this regard. Branch-wise, table depicts that vast majority of the respondents
financed by Ludhiana branch (97.0 per cent) have awareness regarding the EDPs
organised through bank, followed by Jalandhar branch (94.1 per cent) and Chandigarh
branch (54.5 per cent). The highest number of the respondents financed by
Chandigarh branch (45.5 per cent) have no information as regards same. The
significance value (0.000) is less than 0.05 at 5 per cent level of significance, which
indicates that significant differences exist among different branches of the bank as far
as awareness about EDPs organised through the bank are concerned.
Organisation set up-wise, analysis reveals that highest level of awareness
regarding EDPs have shown by respondents from company form of organisation (93.5
per cent), followed by partnership (83.9 per cent) and proprietorship (71.1 per cent).
Further, 28.9 per cent of the respondents belong to proprietorship concern got the
highest share amongst those having unawareness regarding the same. The significance
value (0.051) is greater than 0.05 at 5 per cent level of significance, which indicates
that no significant difference exists between different organisation set up as regards
awareness about EDPs organised through the bank.
220
Turnover-wise, table highlights that maximum level of awareness about EDPs
have shown by respondents with turnover above Rs 15 crore (89.5 per cent), while
23.7 per cent of the respondents generating turnover below Rs 5 crore have shown
unawareness as regards same. The significance value (0.441) is greater than 0.05 at 5
per cent level of significance, which indicates that no significant difference exists
among different turnover categories of the bank with regard to awareness about EDPs
organised through the bank.
Table 7.37
Awareness Regarding Management Development Programmes (MDPs)
Bra
nch
Yes No Total Chi-Square
Jalandhar 17(50.0) 17(50.0) 34(100) χ²= 8.460
d.f. = 2
Sig. = 0.015
Ludhiana 22(66.7) 11(33.3) 33(100)
Chandigarh 17(51.5) 16(48.5) 33(100)
Set
-up
Proprietorship 22(57.9) 16(42.1) 38(100) χ² = 0.351
d.f. = 2
Sig. = 0.839
Partnership 18(58.1) 13(41.9) 31(100)
Company 16(51.6) 15(48.4) 31(100)
Tu
rnover
Below Rs 5
crore 21(55.3) 17(44.7) 38(100)
χ² = 2.302
d.f. = 2
Sig. = 0.316
Rs 5-15 crore 27(62.8) 16(37.2) 43(100)
Above Rs 15
crore 8(42.1) 11(57.9) 19(100)
Total 56(56.0) 44(44.0) 100(100)
It is evident from Table 7.37 that 56 per cent of the respondents have
awareness regarding the MDPs organised by the bank, while 44 per cent of the
respondents have no information as regards the same. Branch-wise, the highest level
of awareness regarding MDPs have shown by respondents financed by Ludhiana
branch (66.7 per cent), followed by Chandigarh branch (51.5 per cent) and Jalandhar
(50.0 per cent). Further, 50 per cent of the respondents financed by Jalandhar branch
have no information as regards same. The significance value (0.015) is less than 0.05
at 5 per cent level of significance, which indicates that significant differences exist
among different branches of the bank as regards awareness about MDPs organised
through the bank.
221
Organisation set up-wise, table depicts that maximum level of awareness
regarding MDPs have shown by respondents belong to partnership form of
organisation (58.1 per cent). Further, 48.4 per cent of respondents from company form
of organisation possess highest share amongst those having no knowledge about the
MDPs organised by the bank. The significance value (0.839) is greater than 0.05 at 5
per cent level of significance, which indicates that no significant difference exists
between different organisation set up as far as awareness regarding MDPs organised
through the bank are concerned.
Turnover-wise, the table shows that highest level of awareness regarding
MDPs have shown by respondents generating turnover of Rs 5 to 15 crore (62.8 per
cent). Further, majority of the respondents (57.9 per cent) generating turnover above
Rs 15 crore have unawareness as regards same. The significance value (0.316) is
greater than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different turnover categories of the bank as regards awareness
about MDPs organised through the bank.
Table 7.38 highlights that 49 per cent of the respondents have shown
awareness regarding TUPs conducted by the bank, while 51 per cent of the
respondents have no knowledge about the same. Branch-wise, table indicates that 58.8
per cent of the respondents financed by Jalandhar branch have information about the
TUPs of the bank. It is followed by respondents financed by Chandigarh branch (45.5
per cent) and Ludhiana branch (42.4 per cent). The majority of the respondents
financed by Ludhiana branch (57.6 per cent) have shown unawareness about the
TUPs organised by the bank. The significance value (0.359) is greater than 0.05 at 5
per cent level of significance, which indicates that no significant difference exists
among different branches of the bank as regards awareness about TUPs organised
through the bank.
222
Table 7.38
Awareness Regarding Technology Upgradation Programmes (TUPs) B
ran
ch
Yes No Total Chi-Square
Jalandhar 20(58.8) 14(41.2) 34(100) χ²= 2.050
d.f. = 2
Sig. = 0.359
Ludhiana 14(42.4) 19(57.6) 33(100)
Chandigarh 15(45.5) 18(54.5) 33(100)
Set
-up
Proprietorship 19(50.0) 19(50.0) 38(100) χ² = 0.283
d.f. = 2
Sig. = 0.868
Partnership 16(51.6) 15(48.4) 31(100)
Company 14(45.2) 17(54.8) 31(100)
Tu
rnover
Below Rs 5
crore 19(50.0) 19(50.0) 38(100)
χ² = 0.222
d.f. = 2
Sig. = 0.895
Rs 5-15 crore 20(46.5) 23(53.5) 43(100)
Above Rs 15
crore 10(52.6) 9(47.4) 19(100)
Total 49(49.0) 51(51.0) 100(100)
Organisation set up-wise, analysis reveals that the highest number of
respondents having awareness regarding the TUPs of the bank belong to partnership
form of organisation (51.6 per cent), followed by proprietorship (50.0 per cent) and
company (45.2 per cent). Further, 54.8 per cent of the respondents from company
form of organisation possess highest share amongst those having no knowledge about
the same. The significance value (0.868) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists among different
organisation set up as regards awareness about TUPs organised through SIDBI.
Turnover-wise, table depicts that maximum level of awareness regarding
TUPs of the bank have shown by respondents generating turnover above Rs 15 crore
(52.6 per cent) whereas, the highest number of respondents generating turnover of Rs
5 to 15 crore (53.5 per cent) having no information as regards same. The significance
value (0.895) is greater than 0.05 at 5 per cent level of significance, which indicates
that no significant difference exists between different turnover categories of the bank
as far as awareness about TUPs organised through the bank are concerned.
223
RESPONDENTS OPINION REGARDING INFORMATION DISSEMINATION
BY SIDBI
Whenever a bank introduces any new product or service, it is required that
information should be provided to its customers about the same. This helps a bank in
enhancing its credibility and worthiness among its customers. In this context,
respondents were asked to given their opinion about information supplied to them by
bank officials about new products or services introduced. It has been observed that
majority of the respondents surveyed have been informed through mail and telephone.
Some respondents got information through personal contact and from bank‟s website.
Branch-wise, organisation set up-wise and turnover-wise responses of the respondents
in this regard have been given in Table 7.39.
Table 7.39
Respondents Opinion Regarding Information Dissemination by SIDBI
Bra
nch
Yes No Total Chi-Square
Jalandhar 17(50.0) 17(50.0) 34(100) χ²= 1.416
d.f. = 2
Sig. = 0.493
Ludhiana 21(63.6) 12(36.4) 33(100)
Chandigarh 20(60.6) 13(39.4) 33(100)
Set
-up
Proprietorship 22(57.9) 16(42.1) 38(100) χ² = 2.384
d.f. = 2
Sig. = 0.304
Partnership 15(48.4) 16(51.6) 31(100)
Company 21(67.7) 10(32.3) 31(100)
Tu
rnover
Below Rs 5
crore 22(57.9) 16(42.1) 38(100)
χ² = 0.292
d.f. = 2
Sig. = 0.864
Rs 5-15 crore 24(55.8) 19(44.2) 43(100)
Above Rs 15
crore 12(63.2) 7(36.8) 19(100)
Total 58(58.0) 42(42.0) 100(100)
It is evident from the table that majority of the respondents (58 per cent) have
been informed by the bank about new services introduced, while 42 per cent of the
respondents have not been informed by the bank as regards same. Branch-wise, Table
5.41 depicts that maximum number of respondents financed by Ludhiana branch (63.6
per cent) have got information about new products or services introduced. It is
224
followed by respondents financed by Chandigarh branch (60.6 per cent) and Jalandhar
branch (50.0 per cent). Further, highest number of respondents financed by Jalandhar
branch (50.0 per cent) have got no information from bank officials as regards the
same. The significance value (0.493) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists among different
branches of the bank regarding information dissemination about its new products or
services introduced.
Organisation set up-wise, table indicates that a large proportion of respondents
from company form of organisation (67.7 per cent) have been informed by the bank,
while 51.6 per cent of the respondents from partnership business have not been
informed by the bank about new products or services introduced. The significance
value (0.304) is greater than 0.05 at 5 per cent level of significance, which indicates
that no significant difference exists between different organisation set up with regard
to information dissemination by the bank about new products or services introduced.
Turnover-wise, analysis revealed that highest number of respondents
generating turnover above Rs 15 crore (63. 2 per cent) have got information regarding
products or services introduced by the bank. Further, 44.2 per cent of the respondents
with turnover of Rs 5 to 15 crore posses the highest share amongst those who have not
been informed by the bank as regards same. The significance value (0.864) is greater
than 0.05 at 5 per cent level of significance, which indicates that no significant
difference exists among different turnover categories of the bank regarding
information dissemination by the bank about new products or services introduced.
RESPONDENTS OPINION ABOUT SIDBI WEBSITE
To know the respondents opinion regarding adequate and updated information
available on SIDBI website, they were asked to give their assent about the same.
Table 7.40 shows the branch-wise, organisation set up-wise and turnover-wise
distribution of the respondents to know their opinion about the same.
225
Table 7.40
Respondents Opinion about SIDBI Website B
ran
ch
Yes No Total Chi-Square
Jalandhar 30(88.2) 4(11.8) 34(100) χ²= 3.757
d.f. = 2
Sig. = 0.153
Ludhiana 23(69.7) 10(30.3) 33(100)
Chandigarh 24(72.7) 9(27.3) 33(100)
Set
-up
Proprietorship 29(76.3) 9(23.7) 38(100) χ² = 0.380
d.f. = 2
Sig. = 0.827
Partnership 25(80.6) 6(19.4) 31(100)
Company 23(74.2) 8(25.8) 31(100)
Tu
rnover
Below Rs 5
crore 27(71.1) 11(28.9) 38(100)
χ² = 1.269
d.f. = 2
Sig. = 0.530
Rs 5-15 crore 35(81.4) 8(18.6) 43(100)
Above Rs 15
crore 15(78.9) 4(21.1) 19(100)
Total 77(77.0) 23(23.0) 100(100)
Table 7.40 highlights that majority of the respondents (77 per cent) have given
favourable response about information available on banks website, while 23 per cent
of the respondents have given unfavourable response towards the same. Branch-wise,
analysis revealed that significant level of positive opinion about the information
available on the banks website have been shown by respondents financed by
Jalandhar branch (88.2 per cent), followed by respondents financed by Chandigarh
branch (72.7 per cent) and Ludhiana branch (69.7 per cent). Further, the highest
number of respondents financed by Ludhiana branch (30.3 per cent) have given
negative opinion as regards same. The significance value (0.153) is greater than 0.05
at 5 per cent level of significance, which indicates that no significant difference exists
among different branches of the bank with respect to adequate and updated
information available on the bank‟s website.
Organisation set up-wise, table indicates that maximum number of
respondents from partnership form of organisation (80.6 per cent) have been informed
by the bank about new products introduced. It is followed by respondents from
proprietorship (76.3 per cent) and company form of organisation (74.2 per cent).
226
Further, 25.8 per cent respondents from company form of organisation possess
maximum share amongst those who have not been informed by the bank about the
same. The significance value (0.827) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists between different
organisation set up as regards adequate and updated information available on the
bank‟s website.
Turnover-wise, table highlights that maximum level of positive response about
availability of information on banks website have been shown by respondents with
turnover of Rs 5 to 15 crore (81.4 per cent), while the highest number of respondents
generating turnover below Rs 5 crore (28.9 per cent) have got no information as
regards same. The significance value (0.530) is greater than 0.05 at 5 per cent level of
significance, which indicates that no significant difference exists between different
turnover categories of the bank with regard to adequate and updated information
available on the SIDBI website.
RESPONDENTS OPINION REGARDING VARIOUS FACTORS
The satisfaction level of respondents regarding various banking aspects has
been determined by using five-point scale. The factors used for evaluating satisfaction
level are location of branch/office, products or schemes offered, loan inquiry,
presence of employees, knowledge of employees, behaviour of employees, time taken
in sanction and disbursement of loan, procedural formalities, documentation required,
project appraisal mechanism, inspection done by the bank officials, conditions
imposed, security required, repayment schedule, moratorium period, services charges,
adequacy of loan, interest rate, customer query services, grievance handling
mechanism. In the present study, the reliability of the statements has been checked by
using Cronbach‟s alpha. The value of Cronbach‟s alpha is 0.912, therefore, it justifies
that rating instrument is reliable. Table 7.41 shows the frequency distribution of
responses of the respondents in this context.
227
Table 7.41
Respondents Satisfaction Level Regarding Various Factors
(N=100)
Banking Aspect Highly
Satisfied Satisfied
Neither
Satisfied Nor
Dissatisfied
Dissatisfied Highly
Dissatisfied
Weighted
Average
Score
Location of
Branch/Office 28 (28.00) 38 (38.00) 15 (15.00) 14 (14.00) 5 (5.00) 3.70
Products or
Schemes Offered 36 (36.00) 37 (37.00) 15 (15.00) 8 (8.00) 4 (4.00) 3.93
Loan Inquiry 39 (39.00) 41 (41.00) 10 (10.00) 7 (7.00) 3 (3.00) 4.06
Presence of
Employees 50 (50.00) 34 (34.00) 11 (11.00) 3 (3.00) 2 (2.00) 4.27
Knowledge of
Employees 50 (50.00) 32 (32.00) 10 (10.00) 4 (4.00) 4 (4.00) 4.20
Behaviour of
Employees 52 (52.00) 35 (35.00) 8 (8.00) 3 (3.00) 2 (2.00) 4.32
Time Taken in
Sanction and
Disbursement of
Loan
34 (34.00) 39 (39.00) 16 (16.00) 7 (7.00) 4 (4.00) 3.92
Procedural
Formalities 32 (32.00) 38 (38.00) 13 (13.00) 11 (11.00) 6 (6.00) 3.79
Documentation
Required 29 (29.00) 33 (33.00) 15 (15.00) 14 (14.00) 9 (9.00) 3.59
Project Appraisal
Mechanism 44 (44.00) 34 (34.00) 12 (12.00) 7 (7.00) 3 (3.00) 4.09
Inspection Done
by the Bank
Officials
49 (49.00) 33 (33.00) 11 (11.00) 4 (4.00) 3 (3.00) 4.21
Conditions
Imposed 34 (34.00) 37 (37.00) 12 (12.00) 10 (10.00) 7 (7.00) 3.81
Security Required 36 (36.00) 41 (41.00) 11 (11.00) 7 (7.00) 5 (5.00) 3.96
Repayment
Schedule 43 (43.00) 47 (47.00) 6 (6.00) 4 (4.00) 0 (.00) 4.29
Moratorium
Period 40 (40.00) 43 (43.00) 11 (11.00) 4 (4.00) 2 (2.00) 4.15
Service Charges 39 (39.00) 31 (31.00) 15 (15.00) 10 (10.00) 5 (5.00) 3.89
Adequacy of Loan 40 (40.00) 36 (36.00) 13 (13.00) 7 (7.00) 4 (4.00) 4.01
Interest Rates 34 (34.00) 35 (35.00) 16 (16.00) 10 (10.00) 5 (5.00) 3.83
Customer Query
Services 44 (44.00) 38 (38.00) 10 (10.00) 6 (6.00) 2 (2.00) 4.16
Grievance
Handling
Mechanism
40 (40.00) 42 (42.00) 8 (8.00) 6 (6.00) 4 (4.00) 4.08
Table 7.41 highlights that majority of the respondents have represented their
satisfaction with regard to repayment schedule (90 per cent), behaviour of employees
(87 per cent), presence of employees (84 per cent), moratorium period (83 per cent),
knowledge of employees (82 per cent), inspection done by the bank officials (82 per
cent), customer query services (82 per cent), grievance handling mechanism (82 per
228
cent), loan inquiry (80 per cent), project appraisal mechanism (78 per cent), security
required (77 per cent) and adequacy of loan (76 per cent). However, the respondents
have also represented their dissatisfaction with regard to documentation required (23
per cent), location of branch/office (19 per cent), procedural formalities (17 per cent),
conditions imposed (17 per cent) and service charges (15 per cent). Further, 16 per
cent of the respondents have shown indifferent attitude towards time taken by the
bank in sanction and disbursement of loan, followed by interest rates (16 per cent) and
products or schemes offered (15 per cent) by the bank.
Table 7.42
Average Weighted Scores Corresponding to Satisfaction Level of Respondents
(Branch-wise Classification)
(N=100)
Banking Aspect Branch
Total Jalandhar Ludhiana Chandigarh
Location of Branch/Office 3.8235 3.6364 3.6364 3.7000
Products or Schemes Offered 4.0882 3.9394 3.7576 3.9300
Loan Inquiry 4.2353 4.0303 3.9091 4.0600
Presence of Employees 4.2647 4.3030 4.2424 4.2700
Knowledge of Employees 4.2353 4.2121 4.1515 4.2000
Behaviour of Employees 4.4706 4.3030 4.1818 4.3200
Time Taken in Sanction and Disbursement of
Loan
4.0882 3.7273 3.9394 3.9200
Procedural Formalities 3.8824 3.7879 3.6970 3.7900
Documentation Required 3.7353 3.5455 3.4848 3.5900
Project Appraisal Mechanisn 4.0882 4.0909 4.0909 4.0900
Inspection Done by the Bank Officials 3.9706 4.3636 4.3030 4.2100
Conditions Imposed 3.6765 3.9091 3.8485 3.8100
Security Required 4.0588 3.9091 3.9091 3.9600
Repayment Schedule 4.2059 4.3636 4.3030 4.2900
Moratorium Period 4.1176 4.1818 4.1515 4.1500
Service Charges 3.7059 3.9394 4.0303 3.8900
Adequacy of Loan 3.9118 3.9697 4.1515 4.0100
Interest Rates 3.7941 4.0606 3.6364 3.8300
Customer Query Services 4.1176 4.1818 4.1818 4.1600
Grievance Handling Procedure 4.0588 4.0303 4.1515 4.0800
Mean Value of AWS 4.0265 4.0242 3.9879 4.0130
The Kendall‟s Co-efficient of Concordance=0.055, Chi-Square value=2.211,
d.f. = 2, Not significant at 5 per cent level of significance.
229
Average Weighted Scores have been computed for branch-wise, organisation
set up-wise and turnover-wise categories of respondents by assigning weights as 5, 4,
3, 2, 1 to „highly satisfied,‟ „satisfied,‟ „neither satisfied nor dissatisfied,‟
„dissatisfied,‟ and „highly dissatisfied,‟ respectively. Table 7.42, 7.43 and 7.44
respectively shows branch-wise, organisation set up-wise and turnover-wise
distribution of respondents in this regard.
Table 7.42 indicates that the respondents are highly satisfied with behaviour of
employees (4.3200), repayment schedule (4.2900), presence of employees (4.2700),
inspection done by the bank officials (4.2100), knowledge of employees (4.2000),
customer query services (4.1600) and moratorium period (41.500). Further, the
respondents are satisfied with regard to project appraisal mechanism (4.0900),
grievance handling mechanism (4.0800), loan enquiry (4.0600), adequacy of loan
(4.0100), security required (3.9600) and products or schemes offered (3.9300).
Branch-wise analysis reveals that the respondents are highly satisfied with regard to
presence of employees in all the three branches. The respondents financed by
Jalandhar branch are highly satisfied with behaviour of employees (4.4706), loan
enquiry and knowledge of employees (4.2353 each). Most of the respondents have
expressed their moderate level of satisfaction with regard to service charges and
conditions imposed by the bank. The respondents from Ludhiana branch (4.3636) and
Chandigarh branch (4.3030) are highly satisfied with the inspection done by the bank
officials and repayment schedule as compared to the satisfaction level of respondents
financed by Jalandhar branch for both factors. Further, the satisfaction level of
respondents financed by Ludhiana and Chandigarh branch was not high with regard to
location of branch/office and documentation required.
The mean value of average weighted scores related to the satisfaction level of
respondents regarding various factors is the highest in Jalandhar branch (4.0265),
followed by Ludhiana branch (4.0242) and Chandigarh branch (3.9879). The
Kendall‟s co-efficient of concordance shows that there exists no significant
concurrence of rankings (w=0.055) amongst respondents of SIDBI, regarding various
factors affecting their satisfaction.
230
Table 7.43
Average Weighted Scores Corresponding to Satisfaction Level of Respondents
(Organisation Set up-wise Classification)
(N=100)
Banking Aspect
Organisation Set up
Total Proprietorship Partnership Company
Location of Branch/Office 3.6842 3.9032 3.5161 3.7000
Products or Schemes Offered 3.9737 4.1290 3.6774 3.9300
Loan Inquiry 3.9211 4.3226 3.9677 4.0600
Presence of Employees 4.1579 4.3548 4.3226 4.2700
Knowledge of Employees 3.9737 4.4194 4.2581 4.2000
Behaviour of Employees 4.2895 4.4839 4.1935 4.3200
Time Taken in Sanction and
Disbursement of Loan
3.9474 4.1613 3.6452 3.9200
Procedural Formalities 3.9211 4.0000 3.4194 3.7900
Documentation Required 3.7632 3.6452 3.3226 3.5900
Project Appraisal Mechanism 4.2105 4.3226 3.7097 4.0900
Inspection Done by the Bank Officials 4.4737 4.2258 3.8710 4.2100
Conditions Imposed 3.7895 3.9677 3.6774 3.8100
Security Required 4.0526 4.2258 3.5806 3.9600
Repayment Schedule 4.4474 4.2258 4.1613 4.2900
Moratorium Period 4.2368 4.0968 4.0968 4.1500
Service Charges 3.9474 3.9355 3.7742 3.8900
Adequacy of Loan 3.9211 4.1290 4.0000 4.0100
Interest Rates 3.5789 4.0323 3.9355 3.8300
Customer Query Services 4.1579 4.2258 4.0968 4.1600
Grievance Handling Procedure 3.9737 4.2581 4.0323 4.0800
Mean Value of AWS 4.0211 4.1532 3.8629 4.0130
The Kendall‟s Co-efficient of Concordance= 0.498, Chi-Square value= 19.924,
d.f. =2, Not significant at 5 per cent level of significance.
Organisation set up-wise, Table 7.43 depicts that the respondents are highly
satisfied with the behaviour of employees for all the three categories. Further, the
respondents from proprietorship form of organisation are highly satisfied with the
inspection done by the bank officials (4.4737) and repayment schedule (4.4474). But
231
their satisfaction level was low in comparison to other factors regarding interest rate
(3.5789) charged by the bank. The respondents belong to partnership (4.4194) and
company form of organisation (4.2581) are highly satisfied with the knowledge of
employees. However, the satisfaction level of respondents from all the three
categories was not too high with regard to location of branch/office. Further,
particularly the respondents belong to proprietorship business have shown their
divergent view with regard to rate of interest (3.5789). The table also highlights that
the respondents from partnership business (3.6452) and company (3.3226) have
shown their less satisfaction towards documentation required in comparison to other
services offered by the bank.
The mean value of average weighted scores related to the satisfaction level of
respondents regarding various factors is the highest for partnership (4.1532), followed
by those belong to proprietorship (4.0211) and those who belong to company form of
organisation (3.8629). The Kendall‟s co-efficient of concordance shows that there
exists no significant concurrence of rankings (w=0.498) amongst respondents of
SIDBI, regarding various factors affecting their satisfaction.
Turnover-wise, Table 7.44 shows that the respondents belong to all the three
categories of turnover are highly satisfied with behaviour of employees. Further, the
respondents from all the turnover groups are satisfied with regard to repayment
schedule of the loan. The respondents generating turnover below Rs 5 crore are highly
satisfied with presence of employees (4.3947) and shown low degree of satisfaction
towards documentation required and interest rate charged by the bank (3.6842 each).
The respondents receiving turnover of Rs 5 to 15 crore are highly satisfied with
knowledge of employees and inspection done by the bank officials (4.3023 each).
However, the satisfaction level of respondents with turnover of Rs 5 to 15 crore
(3.5349) and those whose turnover is above Rs 15 crore (3.6842) is comparatively
less for location of branch/office of the bank. The level of satisfaction is highest
among the respondents generating turnover above Rs 15 crore (4.4737) with respect
to presence of employees in the bank.
232
Table 7.44
Average Weighted Scores Corresponding to Satisfaction Level of Respondents
(Turnover-wise Classification)
(N=100)
Banking Aspect
Turnover
Total Below Rs 5
crore
Rs 5 to 15
crore
Above Rs
15 crore
Location of Branch/Office 3.8947 3.5349 3.6842 3.7000
Products or Schemes Offered 4.1316 3.6977 4.0526 3.9300
Loan Inquiry 4.0526 4.0000 4.2105 4.0600
Presence of Employees 4.3947 4.0698 4.4737 4.2700
Knowledge of Employees 4.1842 4.3023 4.0000 4.2000
Behaviour of Employees 4.4211 4.3256 4.1053 4.3200
Time Taken in Sanction and
Disbursement of Loan 3.9211 3.9302 3.8947 3.9200
Procedural Formalities 3.7895 3.8372 3.6842 3.7900
Documentation Required 3.6842 3.4419 3.7368 3.5900
Project Appraisal Mechanism 4.0263 4.1860 4.0000 4.0900
Inspection Done by the Bank
Officials 4.1053 4.3023 4.2105 4.2100
Conditions Imposed 3.7105 3.9302 3.7368 3.8100
Security Required 3.8947 4.0233 3.9474 3.9600
Repayment Schedule 4.2368 4.2791 4.4211 4.2900
Moratorium Period 4.1579 4.0930 4.2632 4.1500
Service Charges 3.9211 3.8837 3.8421 3.8900
Adequacy of Loan 4.0789 3.9535 4.0000 4.0100
Interest Rates 3.6842 3.8837 4.0000 3.8300
Customer Query Services 4.2632 4.0233 4.2632 4.1600
Grievance Handling Procedure 4.1579 4.1163 3.8421 4.0800
Mean Value of AWS 4.0355 3.9907 4.0184 4.0130
The Kendall‟s Co-efficient of Concordance= 0.004, Chi-Square value= 0.177,
d.f. =2, Significant at 5 per cent level of significance.
233
The mean value of average weighted scores related to the respondents opinion
regarding various factors is highest for respondents with turnover below Rs 5 crore
(4.0355), followed by those whose turnover is above Rs 15 crore (4.0184) and those
earning between Rs 5 to 15 crore (3.9907). The Kendall‟s co-efficient of concordance
shows that there exists significant concurrence of rankings (w=0.004) amongst
respondents of SIDBI, regarding various factors affecting their satisfaction.
RESPONDENTS PERCEPTION REGARDING VARIOUS OPINION
STATEMENTS
To ascertain the worth of SIDBI for its entrepreneurs, they were asked to give
their opinion on a five-point scale. The respondents perception has been evaluated on
the basis of opinion statements like, „SIDBI lays emphasis on MSME sector‟, „SIDBI
provides special attention to minorities like S.C., S.T. etc.‟ „SIDBI provides need-
based finance to the entrepreneurs‟, „The bank also gives priority to women
entrepreneurs‟, „The banks assistance leads to upliftment of the weaker sections of the
society‟, „The bank aims at boosting the budding entrepreneurs‟, „The branch network
of the bank is located at convenient places‟, „The staff of SIDBI is knowledgeable and
well-acquainted with the loaning procedure‟ and „The financial assistance provided by
SIDBI helps in increasing the business turnover‟. The value of Cronbach‟s alpha is
0.816 which implies that various opinion statements are reliable. Table 7.45 shows the
frequency distribution of responses of the respondents in this regard.
Average Weighted Scores have been computed for branch-wise, organisation
set up-wise and turnover-wise categories of respondents by attributing weights as 5, 4,
3, 2, 1 to „strongly agreed‟, „agreed‟, „neither agreed nor disagreed‟, „disagreed‟ and
„strongly disagreed‟ respectively. Table 7.46, 7.47 and 7.48 respectively shows
branch-wise, organisation set up-wise and turnover-wise distribution of respondents in
this regard.
Table 7.45 highlights that vast majority of the respondents have given their
assent in context to, „SIDBI lays emphasis on MSME sector‟ (91 per cent), „SIDBI
provides need-based finance to the entrepreneurs‟ (91 per cent), „The bank aims at
boosting the budding entrepreneurs‟ (83 per cent), „SIDBI provides special attention
to minorities like S.C., S.T. etc.‟ (81 per cent), „The staff of SIDBI is knowledgeable
and well-acquainted with the loaning procedure‟ (81 per cent), „The banks assistance
leads to upliftment of the weaker sections of the society‟ (80 per cent) and „The bank
234
also gives priority to women entrepreneurs‟ (79 per cent). Further, 76 per cent of the
respondents have given their consent with regard to statement, „The financial
assistance provided by SIDBI helps in increasing the business turnover‟, while 15 per
cent of the respondents have shown their indifferent attitude in this regard. Moreover,
23 per cent of the respondents have disagreed in regard to „The branch network of the
bank is located at convenient places‟.
Table 7.45
Respondents Perception Regarding Various Opinion Statements
(N=100)
Opinion Statements Strongly
Agreed Agreed
Neither
Agreed
Nor
Disagreed
Disagreed Strongly
Disagreed
Average
Weighted
Score
SIDBI lays emphasis
on MSME sector. 55 (55.00) 36 (36.00) 5 (5.00) 2 (2.00) 2 (2.00) 4.40
SIDBI provides
special attention to
minorities like S.C.
S.T. etc.
40 (40.00) 41 (41.00) 12 (12.00) 4 (4.00) 3 (3.00) 4.11
SIDBI provides need-
based finance to the
entrepreneurs.
45 (45.00) 46 (46.00) 4 (4.00) 3 (3.00) 2 (2.00) 4.29
The bank also gives
priority to women
entrepreneurs.
37 (37.00) 42 (42.00) 10 (10.00) 6 (6.00) 5 (5.00) 4.00
The banks assistance
leads to upliftment of
the weaker sections of
the society.
37 (37.00) 43 (43.00) 10 (10.00) 7 (7.00) 3 (3.00) 4.04
The bank aims at
boosting the budding
entrepreneurs.
39 (39.00) 44 (44.00) 8 (8.00) 7 (7.00) 2 (2.00) 4.11
The branch network of
the bank is located at
convenient places.
32 (32.00) 35 (35.00) 10 (10.00) 15 (15.00) 8 (8.00) 3.68
The staff of SIDBI is
knowledgeable and
well-acquainted with
the loaning procedure.
38 (38.00) 43 (43.00) 11 (11.00) 5 (5.00) 3 (3.00) 4.08
The financial
assistance provided by
SIDBI helps in
increasing business
turnover.
35 (35.00) 41 (41.00) 15 (15.00) 5 (5.00) 4 (4.00) 3.98
235
Table 7.46
Average Weighted Scores Corresponding to Opinion Statements
(Branch-wise classification)
(N=100)
Opinion Statements
Branch
Total Jalandha
r
Ludhian
a
Chandigar
h
SIDBI lays emphasis on MSME
sector. 4.2647 4.4242 4.5152 4.4000
SIDBI provides special attention to
minorities like S.C. S.T. etc. 4.1176 4.0303 4.1818 4.1100
SIDBI provides need-based finance to
the entrepreneurs. 4.2353 4.3636 4.2727 4.2900
The bank also gives priority to women
entrepreneurs. 3.9706 4.0303 4.0000 4.0000
The banks assistance leads to
upliftment of the weaker sections of
the society.
3.9118 4.0909 4.1212 4.0400
The bank aims at boosting the budding
entrepreneurs. 4.1765 4.0909 4.0606 4.1100
The branch network of the bank is
located at convenient places. 3.5294 3.7576 3.7576 3.6800
The staff of SIDBI is knowledgeable
and well-acquainted with the loaning
procedure.
4.0882 4.1212 4.0303 4.0800
The financial assistance provided by
SIDBI helps in increasing business
turnover.
3.9412 3.9697 4.0303 3.9800
Mean Value of AWS 4.0261 4.0976 4.1077 4.0767
The Kendall‟s Co-efficient of Concordance= .238, Chi-Square value= 4.286,
d.f. =2, Not significant at 5 per cent level of significance.
Table 7.46 reveals that all the respondents surveyed have strongly agreed with
the opinion statement, „SIDBI lays emphasis on MSME sector‟ (4.4000) and „SIDBI
provides need-based finance to the entrepreneurs‟ (4.2900). Likewise, the respondents
have given their assent with respect to all the other opinion statements. Branch-wise
analysis reveals that respondents financed by Jalandhar branch have given their
consent with regard to, „The bank aims at boosting the budding entrepreneurs‟
236
(4.1765). The respondents financed by Ludhiana branch have agreed about the
statement that, „The staff of SIDBI is knowledgeable and well-acquainted with the
loaning procedure‟ (4.1212). Further, the respondents belong to Chandigarh branch
have expressed their assent with regard to, „SIDBI provides special attention to
minorities like S.C., S.T. etc.‟ (4.1818). However, all the respondents seem to have
less agreed to the statement that, „The branch network of the bank is located at
convenient places‟.
The mean value of average weighted scores related to the degree of consent
expressed by the respondents in regard to various opinion statements is the highest in
Chandigarh branch (4.1077), followed by Ludhiana branch (4.0976) and Jalandhar
branch (4.0261). The Kendall‟s co-efficient of concordance shows that there exists no
significant concurrence of rankings (w=0.238), among the respondents of SIDBI with
regard to various opinion statements.
Organisation set up-wise, Table 7.47 shows that all the respondents surveyed
have strongly agreed in context to, „SIDBI lays emphasis on MSME sector‟ and
„SIDBI provides need-based finance to the entrepreneurs‟. The analysis further
reveals that the respondents from proprietorship (4.2368) and partnership form of
organisation (4.2581) have expressed their consent in regard to statement, „The bank
aims at boosting the budding entrepreneurs‟. The satisfaction level of respondents
belong to partnership form of business organisation is identical (4.2258 each) for
opinion statements, SIDBI provides special attention to minorities like S.C., S.T. etc.‟
and „The bank also gives priority to women entrepreneurs‟. Further, the respondents
particularly from company form of organisation have shown their consent in regard to
statement, „The staff of SIDBI is knowledgeable and well-acquainted with the loaning
procedure‟. The table also highlights that all the respondents have shown their
divergent view in regard to, „The branch network of the bank is located at convenient
places‟.
237
Table 7.47
Average Weighted Scores Corresponding to Opinion Statements
(Organisation Set up-wise classification)
(N=100)
Opinion Statements Set up
Total Proprietorship Partnership Company
SIDBI lays emphasis on
MSME sector. 4.5263 4.3548 4.2903 4.4000
SIDBI provides special
attention to minorities like
S.C. S.T. etc.
4.1579 4.2258 3.9355 4.1100
SIDBI provides need-
based finance to the
entrepreneurs.
4.3947 4.2258 4.2258 4.2900
The bank also gives
priority to women
entrepreneurs.
4.0263 4.2258 3.7419 4.0000
The banks assistance leads
to upliftment of the
weaker sections of the
society.
4.1053 4.1613 3.8387 4.0400
The bank aims at boosting
the budding entrepreneurs. 4.2368 4.2581 3.8065 4.1100
The branch network of the
bank is located at
convenient places.
3.7368 3.7742 3.5161 3.6800
The staff of SIDBI is
knowledgeable and well-
acquainted with the
loaning procedure.
4.1842 4.0323 4.0000 4.0800
The financial assistance
provided by SIDBI helps
in increasing business
turnover.
4.2105 3.9677 3.7097 3.9800
Mean Value of AWS 4.1754 4.1362 3.8961 4.0767
The Kendall‟s Co-efficient of Concordance= 0.689, Chi-Square value= 12.400,
d.f. =2, Not significant at 5 per cent level of significance.
The mean value of average weighted scores related to the degree of consent
expressed by the respondents in regard to various opinion statements is the highest in
proprietorship form of organisation (4.1754), followed by partnership (4.1362) and
238
company (3.8961). The Kendall‟s co-efficient of concordance shows that there exists
no significant concurrence of rankings (w=0.689), among the respondents of SIDBI
with regard to various opinion statements.
Table 7.48
Average Weighted Scores Corresponding to Opinion Statements
(Turnover-wise classification)
(N=100)
Opinion Statements
Turnover
Total Below 5 crore
Rs 5 to
15 crore
Above Rs
15 crore
SIDBI lays emphasis on MSME
sector. 4.3421 4.4186 4.4737 4.4000
SIDBI provides special attention
to minorities like S.C. S.T. etc. 4.1053 4.1628 4.0000 4.1100
SIDBI provides need-based
finance to the entrepreneurs. 4.3684 4.1628 4.4211 4.2900
The bank also gives priority to
women entrepreneurs. 4.0000 3.8837 4.2632 4.0000
The banks assistance leads to
upliftment of the weaker sections
of the society.
4.1842 3.9302 4.0000 4.0400
The bank aims at boosting the
budding entrepreneurs. 4.1316 4.1395 4.0000 4.1100
The branch network of the bank is
located at convenient places. 3.7895 3.5349 3.7895 3.6800
The staff of SIDBI is
knowledgeable and well-
acquainted with the loaning
procedure.
3.9737 4.0698 4.3158 4.0800
The financial assistance provided
by SIDBI helped in increasing
business turnover.
3.9474 4.0698 3.8421 3.9800
Mean Value of AWS 4.0936 4.0413 4.1228 4.0767
The Kendall‟s Co-efficient of Concordance= 0.022, Chi-Square value= 0.400,
d.f. =2, Significant at 5 per cent level of significance.
239
Turnover-wise, Table 7.48 indicates that the respondents from all the turnover
categories have strongly agreed with the opinion statements, „SIDBI lays emphasis on
MSME sector‟ and „SIDBI provides need-based finance to the entrepreneurs‟.
Further, the respondents with turnover below Rs 5 crore have expressed their consent
in regard to, „The banks assistance leads to upliftment of the weaker sections of the
society‟ (4.1842). The respondents generating turnover of Rs 5 to 15 crore have given
their assent in respect to opinion statement, „SIDBI provides special attention to
minorities like S.C., S.T. etc.‟ (4.1628). Similarly, the respondents with turnover
above Rs 15 crore have given favourable opinion about, „The staff of SIDBI is
knowledgeable and well-acquainted with the loaning procedure‟ (4.3158). However,
the analysis has shown low level of satisfaction as compared to other opinion
statements in reference to, „The branch network of the bank is located at convenient
places‟ among the respondents from all turnover groups.
The mean value of average weighted scores related to the degree of consent
expressed by the respondents in regard to various opinion statements is the highest for
respondents generating turnover above Rs 15 crore (4.1228), followed by those with
turnover below Rs 5 crore (4.0936) and those receiving turnover of Rs 5 to 15 crore
(4.0413). The Kendall‟s co-efficient of concordance shows that there exists significant
concurrence of rankings (w=0.022), among the respondents of SIDBI with regard to
various opinion statements.
RESPONDENTS OPINION REGARDING PAYMENT OF BRIBE
To examine the respondents opinion regarding any unlawful payment made by
them in the form of bribe to bank officials for availing loan, the respondents were
asked to give their consent as regards the same. It has been found that all respondents
denied making such illegal payment to any of the bank officials for sanctioning and
disbursement of loan. The analysis further reveals that all the respondents surveyed
would recommend SIDBI to other prospective industrialists and they would like to
approach bank again to avail its services in future. However, branch-wise analysis
shows that one of the respondent financed by Chandigarh branch have negative
response in this context.
240
RESPONDENTS OVERALL SATISFACTION LEVEL ABOUT SIDBI
To evaluate the opinion of respondents regarding overall working of SIDBI,
they were asked to give their response in this regard. In this context, a highly
significant proportion of respondents (99 per cent) have expressed their satisfaction
towards functioning of SIDBI. Table 7.49, 7.50 and 7.51 shows the branch-wise,
organisation set up-wise and turnover-wise response of the respondents as regards the
same.
Table 7.49
Respondents Overall Satisfaction Level About SIDBI (Branch-wise)
Scale Jalandhar Ludhiana Chandigarh Total
Highly Satisfied 12 (35) 13 (39) 9 (27) 34 (34)
satisfied 22 (65) 20 (61) 23 (70) 65 (65)
Neutral 0 (0) 0 (0) 0 (0) 0 (0)
Dissatisfied 0 (0) 0 (0) 0 (0) 0 (0)
Highly Dissatisfied 0 (0) 0 (0) 1 (3) 1 (1)
N 34 33 33 100
Average Weighted Score 4.3529 4.3939 4.1818 4.3100
Table 7.50
Respondents Overall Satisfaction Level About SIDBI (Organisation Set up-wise)
Scale Proprietorship Partnership Company Total
Highly Satisfied 14 (37) 14 (45) 6 (19) 34 (34)
satisfied 24 (63) 16 (52) 25 (81) 65 (65)
Neutral 0 (0) 0 (0) 0 (0) 0 (0)
Dissatisfied 0 (0) 0 (0) 0 (0) 0 (0)
Highly Dissatisfied 0 (0) 1 (3) 0 (0) 1 (1)
N 38 31 31 100
Average Weighted
Score 4.3684 4.3548 4.1935 4.3100
241
Table 7.51
Respondents Overall Satisfaction Level About SIDBI (Turnover-wise)
Scale Below 5
crore
Rs 5-15
crore
Above 15
crore Total
Highly Satisfied 15 (39) 13 (30) 6 (32) 34 (34)
satisfied 22 (58) 30 (70) 13 (68) 65 (65)
Neutral 0 (0) 0 (0) 0 (0) 0 (0)
Dissatisfied 0 (0) 0 (0) 0 (0) 0 (0)
Highly Dissatisfied 1 (3) 0 (0) 0 (0) 1 (1)
N 38 43 19 100
Average Weighted
Score 4.3158 4.3023 4.3158 4.3100
On the basis of average weighted scores, satisfaction level is the highest
among respondents financed by Ludhiana branch (4.3939), followed by Jalandhar
(4.3529) and Chandigarh branch (4.1818). Organization set up-wise, analysis shows
that respondents from proprietorship form of organization (4.3684) are highly
satisfied, followed by respondents from partnership (4.3548) and company form of
organization (4.1935). Turnover-wise, the level of satisfaction is the highest for
respondents generating turnover below Rs 5 crore and above Rs 5 crore (4.3158
each), followed by respondents with turnover between Rs 5 to 15 crore (4.3023) with
regard to overall functioning of the bank.