PGDCBM VAMNICOM

1. Dr. RajivKumar (5418)
54th PGDCBM(VAMNICOM)
Underthe Guidance of: Dr. Neeraj Kumar Dubey
AssociateProfessor VAMNICOM Pune
ConsumerPerception andSatisfaction towardsService Qualityof
CentralCooperativeBanks (CCB)
A Case of Rajasthan State
Dissertation on:

2. Introduction
 Cooperative is an association of individuals formed for the
achievement of common objectives basically of economic nature. A
cooperative is an autonomous association of persons united
voluntarily to meet their common economic, social, and cultural
needs and aspirations through a jointly-owned and democratically-
controlled enterprise.
 A co-operative bank is a financial entity which belongs to its
members, who are at the same time the owners and the customers
of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a
common interest. These banks generally provide their members with
a wide range of banking and financial services (loans, deposits,
banking accounts…). These banks are registered under the
Cooperative Societies Act, 1912. And governed by the banking
regulation act 1949 and banking Law Act, (Cooperative Societies)
1965. Co-operative banks differ from stockholder banks by their
organization, their goals, their Values and their governance.

3. Cont.
 Traditionally, the co-operative structure is divided into
two parts viz. rural and urban. The three tier Short Term
Cooperative Credit Structure (STCCS) consists of more
than 90,000 Primary Agricultural Credit Societies
(PACS), 367 District Central Cooperative Banks
(DCCBs) and 33 State Cooperative Banks (StCBs) and
1579 Urban Cooperative Banks (UCBs). Even with such
a large number of co-operative banks, considering the
total asset size, their share in the Indian banking sector
is not more than 5%. Thus, it may be observed that the
true potential has not been achieved by co-operative
banks

4.  Cooperative banks are differentiated entities in terms of
their structure, capital funding and mandate to cater to
the credit needs of small and marginal farmers and rural
artisans. These banks have access to refinance facilities
from NABARD and interest subvention for agricultural
loans from the respective State Governments in order to
increase / maintain flow of agricultural credit. In pursuit of
public policy, several social welfare schemes of State
Governments are channelized through these institutions.
It can be said that rural cooperatives are also functioning
as ‘niche’ banks with limited area of operation catering to
the local clientele.

5.  The Co-operative Banking System in India is
characterized by a relatively comprehensive network to
the grass root level. This sector mainly focuses on the
local population and micro- banking among middle and
low income group of the society.
 Approx 372 District central cooperative banks are
functioning and providing banking services at grass root
level in rural areas through vast branch network in the
various states of India.
 In today’s technology driven world, one cannot ignore
the role of technology in providing competitive banking
services. However, unwillingness of co-operatives to
adopt new technology and implement CBS system has
proved to be a major obstacle to their growth.

6.  NABARD, as part of its mandate for cooperative
institutional development, supported cooperative banks
for implementing the CBS (Core Banking solution). In all,
201 banks (DCCBs / StCBs) joined the project with as
many as 6953 branches already on CBS platform.
Outside NABARD project, 177 banks out of 178 licensed
cooperative banks have completed implementation of
CBS.
 Cooperative institutions are playing important role in
socio-economic development of the agriculturist and
growers.
 Primarily function of these credit institutions were to
provide agriculture loans only.
 Present competitive scenario and banking guidelines
forced these banks to provide all banking services
similar to the other banks for increasing the profitability.

7. Cooperative Banking scenario in Rajasthan
 Cooperative banking in Rajasthan is administered by the Apex bank
“Rajasthan State Co-operative Bank Ltd.” (RSCB) and its affiliated
DCCB’s these banks are authorized to do banking business defined
in section 6 of banking regulation Act 1949.
 The Bank is presently doing its business through its 05 Regional
offices and 16 branches and 29 District Central Cooperative Banks
(DCCBs) with 450+ branches affiliated to it and At the grass-root
level 6514 PACS/LAMPS which covers 100% of the geographical
area of the state, i.e. 44,672 villages.
 These Banks were earlier doing the lending business for Agriculture
sector only after issuance of guidelines from NABARD regarding
non-agriculture finance. The Bank started business under non-
agriculture sector from the year 2004. Thus these Banks are
presently doing the lending business in Agriculture as well as Non-
Agriculture sector both.

8. Three tier cooperative credit system in Rajasthan,
 There is a three tier cooperative credit system in
Uttarkahnd, functioning for the welfare of its members
and customers:
 State Cooperative Bank (Apex Bank)
 District Central Cooperative Bank (DCCB)
 Primary Agriculture Cooperative Society (PACS)
 These institutions are also helping the state and central
government for implementing the various central sectors
schemes for the welfare of the society.

9.  Economic reforms in early1990"s enforced the cooperative banks to
perform their functions competitively like other nationalised and
private banks in India.
 Competition in banking sector has made the drastic change in the
concept of traditional banking and concept of quality service with
consumer loyalty and satisfaction factors are more important to fight
the competition for retaining the customers.
 Increasing competition among the banking sector of India resulted to
emphasize on marketing area which has become a prevalent
practice and thus attempt to be different from the competitors, has
become the priority consideration of the sector.
 Measuring customer satisfaction is critical in the process of serving
the customer. The importance of improving service quality in the
banking sector is highly considered.

10.  The Present study includes the consumer perception
and satisfaction towards service quality of District
Central Cooperative Banks of Rajasthan State as an
essential strategy for satisfying and retaining the
customers. Indeed, the quality of service is more
important for fighting the competition and establishing
the brand loyalty among the customers. It is very
complex to examine the effect of Service quality on
customer satisfaction. However it is established that
generally quality service creates satisfied customer and
may lead profitability to the firm. The proposed study on
service quality and customer satisfaction gives valid
insights about the levels and parameters of service to
satisfying the needs of the customer.

11.  The study of consumer perception and satisfaction is
compulsory to know about the behaviour of consumers
from time to time so that the products and services can
be designed and offered accordingly. Customers have
their own unique needs, demands and preferences in a
particular segment. Marketers have to study customers
in particular segment to present the product or service in
such a way that the customer satisfaction is assured.
Thus the proposed study on “Consumer Perception and
Satisfaction towards Service Quality of District Central
Cooperative Banks” will be emphasizing on the effect of
service quality offered by DCCB’s on customer
satisfaction in the Rajasthan state.

12.  Various researchers has conducted the depth study on the profitability,
comparative study, effectiveness, financial efficiency and viability, NPA &
recovery performance, liquidity risk, consumer behaviour and satisfaction
and work efficiency etc. of cooperative banks in India but the most important
aspects of the marketing which differentiate the one institute from its
competitors and market players are service quality and its effectiveness on
customer satisfaction specially in Rajasthan district central cooperative
banks (DCCB’s) are untouched.
However the huge research work in cooperative sector has
been done since two decade in south India by taking into consideration of
the strong network of cooperative institutions which is playing an important
role in the development of Indian rural economy but very lesser amount of
research work has been done in the north India. So the present study is
selected through studying numerous research papers and articles in the
different aspects of operation and administration of cooperative sector in
India. Moreover the proposed study will include examining and focusing on
the consumer perception and satisfaction towards service quality of district
central cooperative banks (DCCB) in Rajasthan state.
Statement of the Research Problem

13. OBJECTIVE OF THE STUDY
 After reviewing the various research papers, articles & reports
related to cooperatives bank, there are various aspects of marketing
which are untouched, so by considering all the factors related to
service quality and customer satisfaction in District Central
Cooperative Banks, the present study aims to examine the present
status of DCCB’s in Customer satisfaction. In this broader
framework, an attempt will be made to achieve the following
objectives:
 Main Objectives:
 The main objective of the study is to examine the consumer
perception and satisfaction towards service quality of district central
cooperative banks.

14. Sub objectives:
 To examine the consumer perception and attitude towards
cooperative banking in the target area.
 To examine the effect of service quality dimensions on customer
satisfaction in cooperative banks.
 To examine the importance of customer services issue, that need to
be improve to increase customer satisfaction and profitability in
district central cooperative banks.
 To find the gap between customer expectations and perceptions of
quality of services for district central cooperatives banks.
 To elaborate the growth and development of district central
cooperative banks through selective indicators in the target area.
 To suggest the appropriate measures to improve the operational
efficiency of district central cooperative banks.

15. SIGNIFICANCE OF THE STUDY
 The proposed study is supposed to highlight information & data
about the service quality and its effectiveness on consumers
perception and satisfaction of cooperative banks in Rajasthan state.
The study will provide inputs & strategic support to the different
researchers, students, co-operators, academicians & scholars for
further research. The result of the study will be helpful in monitoring
the service effectiveness in the cooperative banking sector. These
finding will be a base for framing the marketing policy about
customer satisfaction and retention in the cooperative banking
sector. As the areas of cooperative banks are infected with the
different hidden factors the study will be help in finding out the
measures for the improvement of efficiency of these banks.

16. RESEARCH METHODOLOGY
 The present study is of analytical, exploratory &
descriptive in nature. Accordingly the secondary as well
as primary data will be used. The secondary data will be
collected mainly through various newspapers,
magazines, websites, reports & Journals. A closed end
questionnaire will be prepared to collect the primary
data. The data & responses will be collected through
interviews and personal visits to the various district
central cooperative banks & customers to know the
service quality and customer satisfaction in targeted
area.

17.  Sample Design: Through convenience sampling method the data
will be collected from the 300 customers of various district central
cooperative banks from the Rajasthan.
 Sampling Elements: The basic elements which shall be studied are
different prospective & existing customer of District Central
Cooperative Banks.
 Research Questions: What is the effect of service quality in
customer perception and satisfaction in the cooperative banking
sector of Rajasthan & how it can be improved & appropriate
measures to improve the efficiency of Cooperative banks.
 Statistical Tools: The primary data will be collected from the
different prospective & existing customer of district central
cooperative banks of Rajasthan & this data will be sorted, classified,
edited & tabulated in a proper format & analyzed by deploying
appropriate statistical tool such as mean, trend analysis, factor
analysis, percentage analysis, and correlation test to be done by
SPSS-22.

18. HYPOTHESIS: The main hypothesis for the proposed
study is as follows
Hypothesis: 1
 H0: Service qualities of DCCB’s are satisfactory for its member and
customers.
 H1: Service qualities of DCCB’s are not satisfactory for its member and
customers
Hypothesis: 2
 H0: The service quality gap of each district central cooperative banks in
Uttarkhand is same
 H1: The service quality gap of each district central cooperative banks in
Uttarkhand is not same
Hypothesis: 3
 H0: There is a huge gap between customer expectations and perceptions of
quality of service for district central cooperatives banks.
 H1: There is no gap between customer expectations and perceptions of
quality of service for district central cooperatives banks.

19. Chapter Scheme for the thesis:
 Introduction
 Literature Review
 Research Methodology
 Data Analysis & Interpretation
 Findings Suggestion & Conclusion

20. Thanks