A STUDY ON CUSTOMER LOYALTY TOWARDS SERVICES

COOPERATIVE CREDIT SOCIETY, SIVAKASI

Project Report Submitted to Madurai Kamaraj University in partial fulfillment of

the requirements for the degree of

MASTER OF COMMERCE

Submitted By

S. MATHAN KUMAR (C3T21115)

Under the guidance of

Ms.J.MISBA LESLIN,M.Com(BT).,M.Phil.,
Assistant Professor,
Department of Commerce (CA)

DEPARTMENT OF COMMERCE

SRI KRISHNASAMY ARTS AND SCIENCE COLLEGE

An ISO 9001:2015 Certified Institution

(Affiliated to Madurai Kamaraj University, Madurai)

Mettamalai, Sattur –626203.

APRIL– 2025
 BONAFIDE CERTIFICATE

This is to certify that the project work entitled “A STUDY ON CUSTOMER LOYALTY
TOWARDS SERVICES COOPERATIVE CREDIT SOCIETY, SIVAKASI” submitted in partial
fulfillment of the requirements for the award of the degree of Master of Commerce of Madurai
Kamaraj University, Madurai is a bonafide record of the work done by,

Name Register No

S. MATHAN KUMAR (C3T21115)

Project Guide Head of the Department

Ms.J.MISBA LESLIN, M.Com(BT).,M.Phil., Dr.R.PRAVEENA, M.Com.,M.Phil.,Ph.D.,SET

Assistant Professor of Commerce (CA) HOD, Department of Commerce

Under our supervision and guidance submitted to the university

examination held on

Internal Examiner External Examiner

 DECLARATION
I hereby declare that the project entitled " A STUDY ON CUSTOMER LOYALTY
TOWARDS SERVICES COOPERATIVE CREDIT SOCIETY, SIVAKASI " submitted
in partial fulfillment of the requirement for the award of Master of Commerce with is a record
of our project work done under the guidance of the Ms.J.MISBA
LESLIN,M.Com(BT).,M.Phil., Assistant Professor, Department of Commerce, Sri
Krishnasamy Arts and Science College, Mettamalai, Sattur. The reports embodies the
finding based on study and observation and has not been submitted earlier for the award of
any degree to any Institute or University.

Place:

Date:

S. MATHAN KUMAR (C3T21115)

 ACKNOWLEDGEMENT

At first we would like to thank God for all his blessings to finish our project successfully. Next we
should thank my parents for their financial and moral support and to the gracious blessings.

We express thanks to our eminent Principal Dr.R.USHADEVI, MCA.,M.Phil., Ph.D., Sri

Krishnasamy Arts and Science College for his encouragement during the study period.

A special thanks to our beloved Head of the Department Dr.R.Praveena, M.Com., M.Phil.,
Ph.D., SET., Department of Commerce, Sri Krishnasamy Arts and Science College for encouraging us
to complete the project very successful.

We express our sincere thanks to our respected guide Ms.J.MISBA LESLIN, M.Com(BT),
M.Phil., Assistant Professor, Department of Commerce (CA) , Sri Krishnasamy Arts and Science College
who guided us in the right and easy way to finish my project very successful.

We express our thanks to our beloved staff members, Department of Commerce with and our dear
friends for the encouragement and support us to complete this project work successful.

S. MATHAN KUMAR (C3T21115 )

 CONTENT

CHAPTER NO. CHAPTER TITLE PAGE NO.

I INTRODUCTION AND DESIGN OF THE STUDY 1

7
II PROFILE OF THE STUDY UNITS

III ANALYSIS AND INTERPRETATION 25

IV FINDINGS , SUGGESTIONS AND CONCLUSION 41

BIBLIOGRAPHY

APPENDIX
 LIST OF TBALES

TABLE NO TITLE PAGE NO

2.1 Accounting performance of the bank 10

2.2 Savings Deposits 21

2.3 Recurring Deposits 21

2.4 Loans 22

3.1 Gender of the respondents 25

3.2 Age of the respondents 26

3.3 Educational qualification of the respondents 27

3.4 Location of the respondents 28

3.5 Occupation of the respondents 28

3.6 Monthly income of the respondents 29

3.7 Residential house of the respondents 30

3.8 Allotted the savings on the salary 30

3.9 Duration of having account with the bank 31

3.10 Types of accounts of the respondents 32

3.11 Purpose of possessing bank account 32

3.12 Preferential banking feature 33

3.13 Respondents level of satisfaction on banking product 34

offered
3.14 Respondents opinion on banking operations 34

3.15 Difficulties faced by the respondents in operating the 36

Bank account
3.16 Respondents opinion on loan procedure 37

3.17 Difficulties faced for getting the loan 38

3.18 Level of satisfaction 38

 3.19 Respondents opinion on bank employees 39

3.20 Infrastructural facility 40

LIST OF FIGURES

CHART NO. PARTICULARS PAGE NO

3.1 Age of the respondents 25

3.2 Educational of the respondents 26

3.5 Occupation of the respondents 28

3.6 Monthly income of the respondents 29

3.11 Purpose on opening account 33

3.12 Preferential banking feature 33

INTRODUCTION AND
DESIGN OF THE
STUDY
 CHAPTER – I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

1.2 REVIEW OF LITERATURE

1.3 STATEMENT OF THE PROBLEM

1.4 SCOPE OF THE STUDY

1.5 OBJECTIVES OF THE STUDY

1.6 RESEARCH METHODOLOGY

1.7 LIMITATIONS OF THE STUDY

1.8 CHAPTERISATION
 CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

A co-operative credit society is a financial entity which belongs to its members, who
are at the same time the owners and the customers of their bank. It is often established by
people belonging to the same local or professional community having a common interest. It
is formed to promote the up liftment of financially weaker sections of the society and to
protect them from the clutches of money lenders who provide loans at an unreasonably
high-interest rate to the needy. The co-operative structure is designed on the principles of
cooperation, mutual help, democratic decision making and open membership. It follows the
principle of ‘one shareholder, one vote’ and ‘no profit, no loss’.

Cooperatives Banks are registered under the Cooperative Societies Act, 1912. These are
regulated by the Reserve Bank of India and National Bank for Agriculture and Rural
Development (NABARD) under the Banking Regulation Act, 1949 and Banking Laws
(Application to Cooperative Societies) Act, 1965.
Cooperative banks differ from commercial banks on the grounds of organisation,
governance, interest rates, the scope of functioning, objectives and values.
 This credit society provide financial assistance to locals of the community and
protects then against the doubt trap of the money lenders and traditional savakars. They are
the debt of the money lenders and Traditional savakars. They are the main reason for
breaking as the monopoly of moneylenders. Cooperative banks in India came into existence
in the enactment of the Agricultural Credit co operative Societies Act in 1904 . Cooperative
bank form and integral part of banking system in India. Under the act of 1904, a number of
co-operative credit societies were started. Owing to the increasing demand of cooperative
credit a new act was passed in 1912, which was provided established of co-operatives
central banks by a union banks by a union of primary credit societies and individuals.
Important given to co-operative banks in India is very much high compared to the
parts of the world. Their role in rural financing continues to be important even today and
their business in the urban areas also has increased phenomenally in recent years mainly due
to the sharp increase in the number of primary co-operative banks. Cooperatives bank
regulated by Reserve Bank of India, NABARD & Apex bank. They are governed by the
Banking Regulation Act 1949 and Banking Laws Act,1965.
Cooperative banking institutions take deposits and lend money in most parts of the
world. Cooperative bank as discussed here includes retail banking carried out by credit
unions, mutual savings banks, building societies and cooperatives as well as commercial
banking services provided by mutual organizations to cooperative businesses. A Bank is a
financial institution licensed to received doposit and make a loan. Bank may also provide
financial services such as wealth management currently exchange, and safe deposit boxes.
There are several different kinds of banks is including retail banks, commercial or corporate
banks, and investment banks, In most countries banks are regulated by the national by the
national government or central.
Two of the most common types of banks are commercial/ retail a boxes and invest
banks. Depending on type, a banks may also provide various financial services ranging from
provoking safe deposit currency exchange to retirement and wealth management.
 Banks are a very important part of the economy because they provide vital services
for both consumers and business. As financial services providers, they are give you a safe
place to store our cash. Through a variety of account types such as checking and savings
accounts, and certificate of deposit people can conduct routine banking transactions like
deposits withdraws, check writing and bill payments. People Can also save your money and
can the Federal Deposit Insurance Corporation, up to a limit of $250,000 for individual
depositors and $500,000 for jointly held deposit.
Banks also provide credit opportunities for people and corporation. The money
deposit at the bank short-term debt such as cars loans credit cards, mortgages and other debt
vehicles. The process helps create liquid in the market which creates money and keeps the
supply going.

In the early days banks were very helpful to all kinds of people. The important of
banks on the lives of urban has increased. But people in rural areas do not get the full
benefit of banks. Therefore, the Cooperative Bank was created for the people in the rural in
the areas. One of the most important in the Corporative Bank is the primary Agricultural
Cooperative Bank. The important of the Cooperative Bank is to meet the cash needs the of
all the rural people and to get all the government benefit.
1.1.1 Services of cooperative bank in India
Today, co-operative banks operate across the country alongside commercial banks
and play a crucial role in providing need-based finance, especially to people engaged in
agricultural and agriculture-based operations including those related to farming, cattle and
milk, as well as to some small industries and self-employment-driven activities.
Cooperative banks are small sized units and are traditionally centered on
communities, localities and workplace groups, and they essentially lend to small borrowers
and businesses. This article assesses the service-charge component by comparing 10
Delhi/NCR-based cooperative banks on essential parameters. What do cooperative banks
charge for basic banking services? While at it, we also look at the basic banking services
that cooperative banks provide in the first place.

1.2 REVIEW OF LITERATURE

S.MAYILVAGANAN AND E. SAUNDAVARJAN (2013) In their article, “The
customer service in UCBs comparatively better because local employees are recruited who
are well familiar to the customers”. Stated that Now circumstances are changing as the
business. The well qualified staff should be selected. They should be trained. The banks
should use the means of modern information and technology new system, such as all time
banking, ATM, home banking, Tele banking etc. for survive in the future competition.
SUMEET GIRAM (2014) writes that The Urban co-operative Banks by its vast
numbers and membership along with its local appeal have become an important sector in
the area of banking and finance. RBI inspection and periodical government audit of UCBs
did not show any worth recording changes in the non professional attitude of the board of
director. The RBI made an attempt by introducing a code of conduct to the Board of
Directors and also expected that they will follow the same. From the above extract, it is
clear that the paradigm shift of mind set in the board of directors collectively and directors
individually, becomes a major management of UCBs.
3
RANJANA YOVAGAL (2014) stated that The researcher of banking business and
actually transformed traditional banking system. The impact of Internet banking on cost
savings, revenue growth and increased customer satisfaction on Industry is tremendous and
can be a potential tool for building a sound strategy for the development of the economy of
the country. The development and the increasing progress that is being experienced in the
Information and Communication Technology have brought about a lot of changes in almost
all facts of life. E-banking is convenient, not time bound, without geographical boundaries
with low cost services. Besides these benefits, increased use of mobile services and use of
internet as a new distribution channel for banking transactions and international trading
requires more attention towards E- banking security against fraudulent activities. It also
pose new challenges for country authorities in regulating and supervising the financial
system.
SHANTANU BOSE (2014) Co-operative banks play significant role in the development of
small & medium industries in urban areas. This paper focuses on the current scenario of
urban co-operative banking system in India, by mentioning its need, its brief history, its
current structure among the co-operative credit society, improvement in financial position
of UCB’s and also highlights the challenges faced by the UCB’s and its future prospects.
1.3 STATEMENT OF THE PROBLEM
The cooperative financial institution is facing severe challenges which have
restricted their ability to ensure smooth flow of credit. Limited ability to mobilize resources.
Low Level of recovery. High transaction of cost. Administered rate of interest structure for
a long time. Due to cooperative legislation and administration, Government interference has
become a regular feature in the day–to-day administration of the cooperative institution.
Some of the problem area that arises out of the applicability of the cooperatives legislative
is Deliberate control of cooperatives by the government. Nomination of board of director by
the government. Cooperative banks have a small capital base as it can start with a capital
base of 25 lakhs, making it difficult for them to account a portion of such capital as their
working capital and raising working capital has been a major hurdle for almost all
cooperative banks. Hence, the customer loyalty towards the banking services is the biggest
challenge for the cooperative banks functioning in India.
1.4 SCOPE OF THE STUDY
The present study is carried out in Sivakasi region by collecting primary data from
the customers of cooperative credit society in order to analyse their opinion on terms and
conditions of the policies, related benefits, services and problems faced during the banking
hours. It tries to present the customer loyalty towards services of Sivakasi cooperative credit
society.
1.5 OBJECTIVES OF THE STUDY
The following are the objectives of the study
 To understand the banking products and services rendered by
Tiruvenkitasamy co operative credit society.
 To study the demographic profile of the respondents.
 To analyse the customer loyalty of the respondents towards the services of
Tiruvenkitasamy co operative credit society.
 To offer fruitful suggestions to improve the quality of banking services for
enhancing customer loyalty.

1.6 RESEARCH METHODOLOGY

The present study is a descriptive study.
1.6.1 Study Design
The primary data were collected using the survey method with the help of
structured questionnaire. The secondary data was collected from various annual
report of the banks, Internet, journals, books, magazines and past thesis etc.
1.6.2 Sampling Technique
Convenient sampling method was used for research purpose.
1.6.3 Sample Size
The sample comprise of 50 respondents from Cooperative credit society who has
availed her customer loyalty.
1.6.4 Area of the study
The study is restricted to only. The study covers the customer of Sivakasi
customer Branch and it is restricted only to the segment of customer loyalty.
1.6.5 Statistical Tools
Data has been analysed by using percentage analysis and ranking method. The
collected data were also presented in the form of Bar Charts, Pie Charts and Line Graph.
1.7 LIMITATIONS OF THE STUDY
⮚ This research study was taken in a limited area only and findings may vary if the
area of study is increased or changed.
⮚ Some of the respondents might have been biased in their responses as such the
analysis could vary to some extent.

1.8 CHAPTERISATION
The researcher has prepared the report with the following chapter scheme.
Chapter – I
This chapter deals with introduction, statement of the problem, review of literature,
scope of the study, limitations of the study research methodology and chapter scheme.
Chapter – II
The second chapter deals with Profile of customer loyalty and services of co operative
credit society, Ayyanapuram Branch.
Chapter – III
The third chapter narrates the analysis and interpretation of the study.
Chapter – IV
The fourth chapter describes a brief summary of the study, its findings, suggestion and
conclusion.
 CHAPTER II
2.1 ORIGIN OF THE COOPERATIVE BANK

2.2 PROFILE OF THE COOPERATIVE CREDIT SOCIETY

2.3 PRINCIPLES OF COOPERATIVE CREDIT SOCIETY

2.4 COOPERATIVE BANK STRUCTURE IN INDIA

2.5 COOPERATIVE ACT

2.6 COOPERATIVE CERDIT SOCIETY

2.7 SERVICED PROVIDED IN SIVAKASI COOPERATIVE CREDIT SOCIETY

 Chapter II

PROFILE OF THE STUDY UNIT

2.1 ORIGIN OF THE COOPERATIVE BANK

Cooperative banking is retail and commercial banking organized on a
cooperative basis. Cooperative banking institutions take deposits and lend money in most
parts of the world.
Cooperative banking, as discussed here, includes retail banking carried out by credit
unions, mutual savings banks, building societies and cooperatives as well as commercial
banking services provided by mutual organizations (such as cooperative federations) to
cooperative businesses.
A 2013 report by ILO concluded that Cooperative banks outperformed their
competitors during the financial crisis of 2007-2008. The cooperative banking sector had
20% market share of the European banking sector, but accounted for only 7% of all the
write-downs and losses between the third quarter of 2007 and first quarter of 2011.
Cooperative banks were also over-represented in lending to small and medium-sized
businesses in all of the 10 countries included in the report.
Cooperative banks are owned by their customers and follow the cooperative
principle of one person, one vote. Co-operative banks are often regulated under both
banking and cooperative legislation. They provide services such as savings and loans to
non-members as well as to members, and some participate in the wholesale markets for
bonds, money and even equities. Many cooperative banks are traded on public stock
markets with the result that they are partly owned by non-members. Member control is
diluted by these outside stakes, so they may be regarded as semi-cooperative.
Cooperative banking systems are also usually more integrated than credit union systems.
Local branches of co-operative banks select their own boards of directors and manage their
own operations, but most strategic decisions require approval from a central office. Credit
unions usually retain strategic decision-making at a local level, though they share back-
office functions, such as access to the global payments system, by federating.Some
cooperative banks are criticized for diluting their cooperative principles.
Principles 2-4 of the "Statement on the Co-operative Identity" can be interpreted to require
that members must control both the governance systems and capital of their cooperatives. A
cooperative bank that raises capital on public stock markets creates a second class of
shareholders who compete with the members for control. In some circumstances, the
members may lose control. This effectively means that the bank ceases to be a cooperative.
Accepting deposits from non-members may also lead to a dilution of member control.
Credit unions
Credit unions have the purpose of promoting thrift, providing credit at reasonable
rates, and providing other financial services to its members] Its members are usually
required to share a common bond such as locality, employer, religion or profession, and
credit unions are usually funded entirely by member deposits, and avoid outside borrowing.
They are typically (though not exclusively) the smaller form of cooperative banking
institution. In some countries they are restricted to providing only unsecured personal loans,
whereas in others, they can provide business loans to farmers, and mortgages.

Land development bank

The special (bank) providing Long Term Loans are called Land Development Bank
in the short, LDB. The history of LDB is quite old. The first LDB was started at Jhang in
Punjab in 1920. This bank is also based on Co-operative. The main objective of the LDBs is
to promote the development of land, agriculture and increase the agricultural production.
The LDBs provide long-term finance to members directly through their branches. [8]

Building Societies

Building societies exist in Britain, Ireland and several Commonwealth countries.

They are similar to credit unions in organization, though few enforce a common bond.
However, rather than promoting thrift and offering unsecured and business loans, their
purpose is to provide home mortgages for members. Borrowers and depositors are society
members, setting policy and appointing directors on a one-member, one-vote basis.
Building societies often provide other retail banking services, such as current accounts,
credit cards and personal loans. In the United Kingdom, regulations permit up to half of
their lending to be funded by debt to non-members, allowing societies to access wholesale
bond and money markets to fund mortgages. The world's largest building society is Britain's
Nationwide Building Society.
Others

Mutual savings banks and mutual savings and loan associations were very common in the
19th and 20th centuries, but declined in number and market share in the late 20th century,
becoming globally less significant than cooperative banks, building societies and credit
unions. Trustee savings banks are similar to other savings banks, but they are not
cooperatives, as they are controlled by trustees, rather than their depositors.

2.2 Profile of the Cooperative credit society

1. Name of the Bank : Sivakasi credit society

2. Date of Establishing : 15.2.1969

3. Date of Registration : 7.2.1969

4. Number of branch : 6

5. Slogan : Cooperative Patriotism

6. Area operation : Sivakasi Town Branch

7. Finance affiliated by : Virudhunagar district cooperative bank

2.2.1 Organisation structure

2.2.2Accounting Performance of our bank

Table 2.1

Accounting performance of the bank 2019 to 2020(in lakhs)

Share capital 11.06.10
Reserve fund 90,087,074
Deposit from members 214,619,512
Grants subsidies 6,08,975
Interest earned 28,772,849
Fixed capital 5,648,555
Investments 165,565,891
Trading account 1,224,225
Other assets 12,336,420
P&l a/c 28,772,849
Income 149,060

2.2.3 Vision

 To encourage the self- help groups

 To encourage the customers
 To motivate the deposits
2.2.4 Mission

⮚ Helping our customers

⮚ To achieve the economic success, and financial security
⮚ Better customer services

2.3 Principles of Cooperative bank

Voluntary and open membership

Co-operatives are voluntary organizations Open to all persons who are
 able to use their services
 willing to accept the responsibilities of membership
 without gender, social, racial, political or religious discrimination.
This is the first of the seven principles of co-operation. It is very important because it
reaffirms the importance of members choosing voluntarily to make a commitment to their
co-operative. It establishes the fact that co-operatives are open to all persons who are able to
use their services and willing to accept the responsibilities of membership without gender,
social, racial, political or religious discrimination. It also acknowledges the fact that
membership should be limited to only those persons who are actively involved in that type
of activity. It reminds members that they have obligations to their co-operatives. These
obligations include exercising their voting rights, participating in the meetings and using the
services of the society. This principle also clearly specifies that there should not be any
gender bias when granting membership and women should be present as far as possible in
equal numbers to men. Thus this principle itself provides the needed opportunity for women
to join co-operatives and for them to be co- operators.

Co-operatives should not discriminate among members on the basis of class, religion or
political affiliation. Co-operatives should not exploit non-members of their communities
and they should accept the responsibility of fostering the development of the co-operative
movement in their areas.
Democratic member control

⮚ Co-operatives are democratic organizations controlled by their members, who

actively participate in setting their policies and making decisions.
⮚ Elected representatives are accountable to the membership.
⮚ In primary co-operatives, members have equal voting rights (one member - one
vote)
⮚ Co-operatives at other levels are also organised in a democratic manner.

This principle emphasizes that the members, who are the owners, ultimately must control
their co-operatives. This control must be exercised in a democratic manner. It reaffirms the
right of members to be actively involved in setting policies and in making decisions. This
active involvement leads in many cases to policy issues being discussed, major decisions
being made and important actions being approved in the general body meetings of the co-
operative.

This principle also reminds the men and women serving as elected representatives that are
accountable to their members.

The democratic basis of this principle is that every member of a primary society has equal
voting rights (one member - one vote) and that co-operatives at other levels are also
organised and run in a democratic manner.

Member economic participation

⮚ Members contribute to the capital through equity and democratically control

⮚ Limited compensation to equity.
⮚ Surpluses may be allocated:
⮚ as reserves to develop their Co-operative
⮚ to distribute Patronage
⮚ to any other activity approved by the members that benefits the members.
This principle describes the reasons why and the ways in which members should invest in
their co-operatives as well as how they should decide to allocate surpluses. As the co-
operative grows they may create reserves for further development of their co- operatives.
Members also control the capital of their co-operatives. They should decide how capital
should be raised and how surpluses should be distributed. When these surpluses are
distributed to the members as a patronage bonus, it must be in proportion to their
transactions with the co-operative.
Autonomy and independence

⮚ Co-operatives are autonomous, self-help organisations controlled by their members.

⮚ If co-operatives enter into agreements with other organisations, including
governments, or raise capital from external sources, they should do so on terms that
ensure democratic control by members and maintain their autonomy.

Co-operatives should be autonomous and free from control by Government or any other
external body. In most countries of the world governments decide the legislative framework
under which co-operatives must function. These laws enable co-operatives to operate as
legal entities and broadly protect the members and public interest. However, good laws
ensure that co-operatives remain autonomous in the same way, as are private enterprises.

In the case of co-operatives entering into agreements with other organisations including the
Government, such agreements should be on mutually agreeable terms and conditions.

Educations, training and information

⮚ Co-operatives provide education and training for their members, elected

representatives, managers and employees so that, they contribute effectively to the
development of their Co-operatives.
⮚ Inform the general public - particularly the young people and opinion leaders - about
the nature and benefit of Co-operation.
This principle emphasises the importance of educating and training co-operative members,
elected representatives, managers and employees of a co-operative. It does not mean just
distributing reading materials and correspondence but includes in educating and informing
the members, elected representatives, managers and employees the values of the co-
operative thought and action.

Education, training and information should be imparted by co-operatives on a regular basis.

More emphasis should be given to training youngsters, potential leaders, politicians, public
servants, reporters and educators about the advantages of the

co-operative form of business. It is very important that if education, training and

information are imparted regularly, it will go a long way in making co-operatives viable and
sustaining it.

Cooperation among co-operatives:

⮚ Co-operatives serve their members most effectively and strengthen the co- operative
movement by working together through
⮚ Local.
⮚ National.
⮚ Regional and
⮚ International structures.

This principle highlights the importance of co-operation among co-operatives. If co-

operatives are to grow and achieve their maximum potential, they should do so by
collaborating with other co-operatives, not only at the local level but also nationally,
regionally and internationally levels. This principle is even more important as we
enter the next century and the competition with other forms of business
organizations increases.
Concern for community: Co-operatives work for the sustainable development of their
community through policies approved by their members.

Co-operatives exist primarily for the benefit of their members. Since these
members live together in communities, it is important that they play a role in developing
those communities. This principle clearly emphasizes that co-operatives have a social
responsibility in ensuring that the communities to which their members belong develop
economically, socially and culturally. As in many parts of the world the environment is at
risk, it is important that co-operatives also accept a responsibility of working together to
keep their environment clean and free from pollution.

2.4 Cooperative bank structure in India

There are different types of cooperative credit institutions working in India. These
institutions can be classified into two broad categories- agricultural and non-agricultural.
Agricultural credit institutions dominate the entire cooperative credit structure.

Agricultural credit institutions are further divided into short-term agricultural credit
institutions and long-term agricultural credit institutions.

The short-term agricultural credit institutions which cater to the short-term

financial needs of agriculturists have three-tier federal structure- (a) at the apex, there is the
state cooperative bank in each state; (b) at the district level, there are central cooperative
banks; (c) at the village level, there are primary agricultural credit societies.

Long-term agricultural credit is provided by the land development banks. The

whole structure of cooperative credit institutions is shown in the chart given.

Short-Term Rural Cooperative Credit Structure:

In rural India, there exists a 3-tier short-term rural cooperative structure. Tier-I includes
state cooperative banks (SCBs) at the state level; Tier-II includes central cooperative banks
(CCBs) at the district level; and Tier- III includes primary agricultural credit societies
(PACSs).
 In 19 states, there exists a 3-tier short-term cooperative credit structure, comprising
SCBs, CCBs and PACSs. And in 12 states, there exists a 2-tier short-term cooperative
structure. In the north-eastern states, including Sikkim, the structure is 2-tier, comprising
only SCBs and PACSs.

Loans and Advances

The number of central cooperative banks in 1991-92 was 361 and the total amount
of loans advanced by them in 1991-92 stood at Rs. 14226 crores. About 98 per cent loans
are received by the cooperative societies and about 75 per cent loans are short-term. Mostly
the loans are given for agricultural purpose.

About 80 per cent loans given to the cooperative societies are unsecure and the
remaining loans are given against the securities such as merchandise, agricultural produce,
immovable property, government and other securities etc.

Problem of Overdues

The most distressing feature of the functioning of the central cooperative banks is
heavy and increasing overdue loans. In 1997-98, the percentage of overdues to demand at
the central cooperative level was 34.

Structure
The land development banks are registered as cooperative societies, but with
limited liability.

These banks have two-tier structure

(a) At the state level, there are state or central land development banks, now known as state
cooperative agricultural and rural development banks (SCARDBs) generally one for each
state. They were previously known as central land mortgage banks,

(b) At the local level, there are branches of the state land development banks or SCARDBs
and primary land development banks now known as primary cooperative agricultural and
rural development banks (PCARDBs).
In some states, there are no primary land development banks, but the branches of the state
land development bank. In Madhya Pradesh, the state cooperative bank itself functions as
the state land development bank. In other states like Andhra Pradesh, Kerala and
Maharashtra, there are more than one state land development banks.

Similarly, the primary land development banks also vary organisationally in different states.
At the national level, the land development banks have also formed a union, called All-India
Land Development Banks’ Union.

2.5 Cooperative act

The Registrar.—The [State Government] may appoint a person to be Registrar of
co-operative Societies for the [State] or any portion of it, and may appoint persons to assist
such Registrar, and may, by general or special order, confer on any such persons all or any
of the powers of a Registrar under this Act.
Societies which may be registered.—Subject to the provisions hereinafter
contained, a society which has as its object the promotion of the economic interests of its
members in accordance with co-operative principles, or a society established with the object
of facilitating the operations of such a society, may be registered under this Act with or
without limited liability: Provided that unless the [State Government] by general or special
order otherwise directs—the liability of a society of which a member is a registered society
shall be limited; the liability of a society of which the object is the creation of funds to be
lent to its members, and of which the majority of the members

are agriculturists, and of which no member is a registered society, shall be unlimited.

Restrictions on interest of member of society with limited liability and a share
capital.—Where the liability of the members of a society is limited by shares, no member
other than a registered society shall— hold more than such portion of the share capital of the
society, subject to a maximum of one-fifth, as may be prescribed by the rules; or have or
claim any interest in the shares of the society exceeding one thousand rupees.
 Conditions of registration.— No society, other than a society of which a member
is a registered society, shall be registered under this Act which does not consist of at least
ten persons above the age of eighteen years and, where the object of the society is the
creation of funds to be lent to its members, unless such persons— reside in the same town
or village or in the same group of villages; or save where the Registrar otherwise directs, are
members of the same tribe, class, caste or occupation. The word “limited” shall be the last
word in the name of every society with limited liability registered under this Act.
Power of Registrar to decide certain questions.—When any question arises
whether for the purposes of this Act a person is an agriculturist or a non-agriculturist, or
whether any person is a resident in a town or village or group of villages, or whether two or
more villages shall be considered to form a group, or whether any person belongs to any
particular tribe, class, caste or occupation, the question shall be decided by the Registrar,
whose decision shall be final.
Application for registration. For purposes of registration an application to register
shall be made to the Registrar.
The application shall be signed in the case of a society of which no member is a
registered society, by at least ten persons qualified in accordance with the requirements of
section and in the case of a society of which a member is a registered society, by a duly
authorised person on behalf of every such registered society, and where all the members of
the society are not registered societies, by ten other members or, when there are less than
ten other members, by all of them.
The application shall be accompanied by a copy of the proposed by-laws of the
society, and the persons by whom or on whose behalf such application is made shall furnish
such information in regard to the society as the Registrar may require.
Registration. If the Registrar is satisfied that a society has complied with the
provisions of this Act and the rules and that its proposed by-laws are not contrary to the Act
or to the rules, he may, if he thinks fit, register the society and its by-laws.
 Evidence of registration. A certificate of registration signed by the Registrar shall
be conclusive evidence that the society therein mentioned is duly registered unless it is
proved that the registration of the society has been cancelled..
Amendment of the by-laws of a registered society No amendment of the by- laws
of a registered society shall be valid until the same has been registered under this Act, for
which purpose a copy of the amendment shall be forwarded to the Registrar.
If the Registrar is satisfied that any amendment of the by-laws is not contrary to this Act or
to the rules, he may, if he thinks fit, register the amendment.
Restrictions on loans A registered society shall not make a loan to any person other
than a member: Provided that, with the general or special sanction of the Registrar, a
registered society may make loans to another registered society.
Save with the sanction of the Registrar, a society with unlimited liability shall not lend
money on the security of movable property.
19
The [State Government] may, by general or special order, prohibit or restrict the lending
of money on mortgage of immovable property by any registered society or class of
registered societies.
Restrictions on borrowing A registered society shall receive deposits and loans
from persons who are not members only to such extent and under such conditions as may be
prescribed by the rules or by-laws.
Restrictions on other transactions with non-members Save as provided in
sections 29 and 30, the transactions of a registered society with persons other than members
shall be subject to such prohibitions and restrictions, if any, as the [State Government] may,
by rules, prescribe.
2.6 Cooperative Credit Society
A co-operative society is a voluntary association of individuals having common
needs who join hands for the achievement of common economic interest. Its aim is to serve
the interest of the poorer sections of society through the principle of self-help and mutual
help. The main objective is to provide support to the members. Nobody joins a cooperative
society to earn profit. People come forward as a group, pool their individual resources,
utilise them in the best possible manner, and derive some common benefit out of it.
A Co-operative Society can be formed as per the provisions of the Co-operative
Societies Act, 1912. At least ten persons above of 18 years, having the capacity to enter into
a contract with common economic objectives, like farming, weaving, consuming,

can form a Co-operative Society. Cooperative Societies Act is a Central Act. However,
‘Cooperative Societies’ is a State Subject (Entry 32 of List II of Seventh Schedule to
Constitution, i.e. State List). Though the Act is still in force, it has been
specifically repealed in almost all the States and those States have their own Cooperative
Societies Act. Thus, practically, the Central Act is mainly of academic interest and as per
preamble to the Act, the Act is to facilitate formation of cooperative societies for the
promotion of thrift and self-help among agriculturists, artisans and persons of limited
means.
If object of the society is creation of funds to be lent to its members, all the members must
be residing in the same town, village or group of villages or all members should be of same
tribe, class, caste or occupation, unless Registrar otherwise directs. The provision of
minimum 10 members or residing in same town/village etc. is not applicable if a registered
society is member of another society. The Statement of Objects and reasons states as
follows:
Cooperative Society can be established for purpose of credit, production or distribution.
▪ Agricultural credit societies must be with unlimited liability.
▪ Unlimited society is not best form of cooperation for agricultural commodities.
▪ Unlimited society can distribute profits with permission of State Government.
 A society which has as its object the promotion of economic interests of its
members in accordance with cooperative principles can be registered as a Society.
Similarly, a society established with the object of facilitating operation of such a society can
also be registered under the Act. The society can be registered with limited or unlimited
liability. However, unless State Government otherwise directs, Liability of a society of
which a member is a registered society shall be limited. Liability of a society of which
object is to creation of funds to be lent to members, and of which majority of members are
agriculturists and of which no member is a registered society shall be unlimited. Thus, a
registered society can be member of another society, but liability of such other society must
be limited, unless State Government otherwise directs.
The last word in name of society should be ‘Limited’, if the Society is registered
with limited liability. If a society has limited liability, any individual member of such
society cannot have share capital more than one fifth of total capital. An individual member
cannot have interest in shares exceeding Rs 1,000. This restriction of 20% shares or Rs
1,000 shares value is not applicable to a registered society which is member of another
society. Thus, if a registered society is member of another society, it can hold

shares exceeding 20% or exceeding Rs 1,000 in value

.A registered cooperative society can hold property, enter into contracts, institute and
defend suit and other legal proceedings and to do all things necessary for the purposes of its
constitution. A registered society can give loans only to its members. However, it can give
loan to another registered society with permission of Registrar. A society with unlimited
liability cannot lend money on security of movable property without sanction of registrar.
State Government, by issuing a general or special order, can prohibit or restrict lending of
money on mortgage of immovable property by any registered society or class of registered
society.
 Registrar, after inspection or inquiry, or on application received from 75% of
members of society, may cancel the registration of society, if in his opinion, the Society
should be dissolved. Any member can appeal against the order of Registrar within two
months to State Government or other Revenue Authority authorised by State Government.
If no appeal is filed within two months, the order of dissolution shall become effective. If
appeal is filed, the order will become effective only after it is confirmed by appellate
authority. Although all types of cooperative societies work on the same principle, they
differ with regard to the nature of activities they perform. Followings are different types of
co-operative societies that exist in our country:

2.7 Services provided in Tiruvenkitasamy Cooperative bank

1. Deposits and maintenance

There are three types of deposits accepting in the cooperative bank. There are
savings account, fixed deposit, and Recurring deposit.

2.Savings Account

The deposits accounts are one of the most popular deposits for individual accounts.
These accounts not only provide for cheque facility but also have lot of flexibility for
deposits and withdrawal of funds from the account. The savings account is interest paid is
minimum 3% to maximum 5.75% allowed in the cooperative bank.
3. Savings Deposits

A Fixed deposits refers to an investment scheme that banks . Fixes deposits offer
greater returns on the principal invested when compared to the returns generated from a
regular savings account
 Table2.2
Savings Deposits

Savings a\c 3%
15 days to 45 days 4%
46 days to 90 days 4.50%
91 days to 180 days 5%
181 days 10 364 days 5.75%
1year to 3 year 5.75%
Above 3 year 6.25%

4.Recurring Deposit

Cooperative bank offer attractive recurring deposit schemes that can help customer
earn higher income from investments.

Table 2.3

Recurring Deposit
Tenure Interest rate
12 months to 24 months 9.50%
25 months to 36 months 9.25%
37 months to 60months 9.75%
61 months to 120 months 9%

5.Loans

Loan amount received from the bank is used as funds to provide loans to the
members. The cooperative bank provides loans to its members for the purchase of
agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for
construction of houses and for a variety of other expenses. The bank provides loans are
Housing loan, Jewellery loan, personal loan, SHG loan, Small Scale Industries loan.
 Table 2.4 Loans
Type of loan Interest rate
Agriculture 7%
Small Scale Industries 12%
SHG 11%
Jewel loan 10%
Housing loan 13%
Personal loan 7%
Note: Personal loan provided for Government staff only.

2.6 Types of Cooperative Bank

The co-operative banking structure in India is divided into the following 5 categories:
Primary Co-operative Credit Society

● The Primary Co-operative Credit Society is an association of borrowers and non-

borrowers residing in a particular locality.
● The funds of the society are derived from the share capital and deposits of
members and loans from central co-operative banks.
● Borrowing constitutes the most important element of their working capital.
● The borrowing powers of the members as well as of the society are fixed but may
differ from state to state.
● The loans are given to members for the purchase of cattle, fodder, fertilizers and
pesticides.
● Central Co-operative Banks
● These are the federations of primary credit societies in a district and are of two
types:

1. Those having a membership of primary societies only.

2. Those are having a membership of societies as well as individuals.

● The funds of the bank consist of share capital, deposits, loans and overdrafts
from state co-operative banks and joint stocks.

22
 • These banks provide finance to member societies within the limits of the
borrowing capacity of societies.

● They also conduct all the business of a joint-stock bank.

State Co-operative Banks

● The state co-operative bank is a federation of central co-operative bank and acts
as a watchdog of the co-operative banking structure in the state.
● It procures funds from share capital, deposits, loans and overdrafts from the
Reserve Bank of India.
● The state co-operative banks lend money to central co-operative banks and
primary societies and not directly to the farmers.

Land Development Banks

● These are organized in 3 tiers, namely; state, central, and primary level with the
objective to meet the long term credit requirements of the farmers for
developmental purposes.
● National Bank for Agriculture and Rural Development (NABARD) supervises
Land development banks.
● The sources of funds for these banks are the debentures subscribed by both
Central and State government as these banks do not accept deposits from the
general public.

Urban Co-operative Banks

● It refers to primary cooperative banks located in urban and semi-urban areas.

● Earlier the scope of these banks was restricted, which now has been considerably
widened.
● They provide funds and services to small borrowers and small business.
2.7 Growth and Functions of cooperative Bank
Functions of Cooperative Banks
 It provides financial assistance to people with small means and protects them
from the latches of money lenders providing loans and other services at a higher
rate at the expense of the needy.

• It supervises and guides affiliated societies.

• Rural financing- It provides financing to rural sectors like cattle farming, crop
farming, hatching, etc. at comparatively lower rates.
• Urban financing- it provides financing for small scale industries, personal finance,
home finance, etc.
• It mobilises funds from its members and provides interest on the invested capital
 CHAPTER III

ANALYSIS AND INTERPRETATION

3.1 INTRODUCTION
The present chapter focuses on the analysis of customer loyalty and services. The
first part of the report highlights the demographic and banking profile of the respondents,
who are the customers of the study unit. The second part of the report presents the analysis
of opinion of the respondents towards the banking services, facilities offered and problems
faced in being the customer of bank to evaluate their customer loyalty. The analysis is
carried out with the help of simple percentage analysis, ranking and computation of
weighted scores and mean scores.

3.2 PROFILE OF THE RESPONDENTS

The respondents are those persons who have been invited to participate in study on
customer loyalty towards Tiruvenkitasamy cooperative credit society. The data collected
from surveys is then statistically analyzed to draw meaningful research conclusions.
3.1. GENDER OF THE RESPONDENTS
Gender wise classification is important to study customer loyalty towards
Tiruvenkitasamy cooperative credit society. The researcher has classified the respondents
on the basis of gender. The gender wise classifications of the respondents are presented in
the table 3.1.
Table 3.1
Gender of the Respondents
Particulars No of Respondents Percentage
Male 18 59
Female 13 41
Total 31 100

Source: Primary Data

It is known from the table 3.1 that out of 31 Respondents, 59 percentage (18) of the
respondents are male and the remaining 41 percentage (13) of the respondents of female. It
shows that most of the male Respondents using the customer loyalty and services.
3.2. AGE OF THE RESPONDENTS
Age is the interval of time between the year of birth and the day and year of
occurrence of the event expressed. The need for transaction often varies with the age of the
customers. The classification of the sample on the basis of age seems to be quite appropriate
and varies from years for adults and children and months, weeks, days, hours or minutes of
life, as appropriate for infants under one year of age.
The age of the Respondents may influence customer loyalty towards
Tiruvenkitasamy cooperative credit society. Hence, it was studied, and results are shown in
the table 3.2

Table 3.2
Age of the Respondents
Particulars No of respondents Percentage
Below 30 18 59
31 – 40 6 19
41 – 50 3 10
Above 50 4 12
Total 31 100

Source: Primary Data

The above table 3.2 reveals that out of 31 respondents, 59 percentage (18) of the
respondents are in the age group of below 30 years, 19 percentage (6) of the respondents are
in the age group of 31 to 40 years, 10 percentage (3) of the respondents are in the age group
of 41 to 50 years, 12 percentage (4) of the respondents are in the age group of above 50
years.
3.3 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

The literacy level of the respondents was classified as up to high school, Diploma,
under graduate level, post graduate level and others. It is shown in the following Table 3.3
Table 3.3
Educational Qualification of the Respondents
Particulars No of Respondents Percentage
Up to High School 3 10
Diploma 4 13
Under Graduate 13 42
Post Graduate 5 16
Others 6 19
Total 31 100

Source: Primary Data

From the Table 3.3 it is known that out of 31 respondents, 10 percentage (3) of the
respondents are up to high school, 13 percentage (4) of the respondents are Diploma, 42
percentage (13) of the respondents are under graduate, 16 percentage (5) of the respondents
are post graduate, 19 percentage (6) of the respondents are others. The researcher concludes
the most of the respondents are under graduate are using the services of the bank.
3.4 LOCATION OF THE RESPONDENTS
The respondents are classified on the basis of their location as Urban, Semi Urban,
and Rural. It shown in the Table 3.4
Table 3.4
Location of the Respondents
Particulars No of Respondents Percentage
Urban 14 45
Semi urban 5 16
Rural 12 39
Total 31 100
Source: Primary Data
From the above table 3.4 it is known that out of 31 respondents, 45 percentage,
(14) of the respondents are from urban areas, 16 percentage (5) of the respondents are from
the semi urban areas, 39 percentage (12) of the respondents are from rural areas. The
researcher concludes that most of the respondents are from urban areas.
3.4 OCCUPATION OF THE RESPONDENTS
The occupation of the respondents, whether the Government employee or Private
Employee or Professional or Agriculture or Coolie job or Self employment. The results are
shown in 3.5

Table 3.5 Occupation of the respondents

Particulars No of respondents Percentage
Government employee 4 13
Private employee 8 26
Professional 4 13
Agriculture 5 16
Coolie job 7 22
Self employment 3 10
Total 31 100
Source: Primary Data
 From the above table 3.5 out of 31 respondents, 13 percentage (4) of the respondents
are Government employees, 26 percentage (8) of the respondents are Private employees, 13
percentage (4) of the respondents are Professionals, 16 percentage (5) of the respondents are
Agriculturists, 22 percentage (7) of the respondents are Coolie job workers, 10 percentage
(3) of the respondents are the self employed.. The researcher concludes the most of the
respondents are Private employees.

3.5 MONTHLY INCOME OF THE RESPONDENTS

The investigation further reveals the income level of the respondents. The table
3.6 clearly exhibits the data regarding the income level.

Table 3.6
Monthly income of the respondents
Particulars No of respondents Percentage
Less than 10000 10 32
RS. 10,000 – Rs. 20,000 8 26
RS. 20,000 – Rs. 50,000 9 29
Above 50000 4 13
Total 31 100
Source: Primary Data
From the above table 3.6 out of 31 respondents 32 percentage (10) of the
respondents are earning Below Rs. 10,000, 26 percentage (8) of the respondents are earning
Rs. 10,000 to Rs. 20,000, 29 Percentage (9) of the respondents are earning Rs. 20,000 to Rs.
50,000, 13 percentage (4) of the respondents are earning Above 50,000. The researcher
concludes that the most of respondents are Below Rs. 10,000.
3.7 RESIDENTIAL HOUSE OF THE RESPONDENTS
The residential of the respondents of the usage in customer loyalty and services.
It was studied and results are shown in table 3.7

Table 3.7
Residential House of the Respondents
Particulars No of respondents Percentage
Own house 20 65
Rental house 8 25
Leasesd house 3 10
Total 31 100
Source: Primary Data
The above table 3.7 reveals that of 31 respondents, 65 percentage (20) of the
respondents are staying in Own house, 25 percentage (8) of the respondents are staying in
Rental house, 10 percentage (3) of the respondents are staying in Leased house. The
researcher concludes that most of the respondents stayed in the own house.
3.8 Monthly savings of the respondents

The details on monthly savings of the respondents are collected and the results are
shown in the table 3.8

Table 3.8
Monthly savings of the respondents
Particulars No of the Respondents Percentage
Less than 1,000 11 35
Rs. 1,000 to Rs. 2,500 12 39
Rs. 2,500 to Rs. 5,000 6 20
Above 5,000 2 6
Total 31 100
Source: Primary Data

The above 3.8 reveals that Out of 31 respondents, 35 percentage (11) of the respondents are
saving less than 1,000 per month, 39 percentage (12) of the respondents are saving Rs.
1,000 to Rs. 2,500 per month, 20 percentage (6) of the respondents are saving Rs. 2,500 to
Rs. 5,000 per month, 6 percentage (2) of the respondents are saving above 5,000 per month.

3.3 BANKING PROFILE OF THE RESPONDENTS

3.3.1 Duration of having account with the bank
Duration of having account with the bank was studied and results are shown in the
Table 3.9
Table 3.9
Duration of having account with the bank
Particulars No of Respondents Percentage
Less than 5 years 14 46
5 – 15 years 10 32
15 – 25 years 5 16
Above 25 years 2 6
Total 31 100
Source: Primary Data
The above Table 3.9 reveals that out of 31 respondents, 46 percentage (14) of the
respondents are having account with TCCS Bank for Less than 5 years, 32 percentage
(10) of the respondents are having account for 5 to 15 years, 16 percentage (5) of the
respondents are having account for the 15 to 25 years, 6 percentage (2) of the respondents
are having account for the above 25 years.
3.3.2 Types of accounts of the Respondents
The investigation further reveals types of accounts opened by the respondents.
The Table3.10 clearly exhibits the data regarding the types of accounts.
Table 3.10
Types of accounts of the Respondents
Particulars No of Respondents Percentage
Savings account 17 55
Fixed Deposit 9 29
Recurring account 5 16
Total 31 100
Source: Primary Data
 The above Table 3.9 reveals that out of 31 respondents, 46 percentage (14) of the
respondents are having account with TCCS Bank for less than 5 years, 32 percentage (10)
of the respondents are having account for 5 to 15 years, 16 percentage (5) of the
respondents are having account for the 15 to 25 years, 6 percentage (2) of the respondents
are having account for the above 25 years.

3.3.3. Purpose of possessing bank account

The following table 3.11 clearly explains the various sources of awareness of the
TCCS customer loyalty and services by Respondents.
Table 3.11
Purpose of possessing bank account
Particulars No of Respondents Percentage
Girl child Education 5 16
Tax Benefits 7 22
Interest Rate 3 10
Future Plan 16 52
Total 31 100
Source: Primary Data
Table 3.11 it shows that 16 per cent of the respondents possess the bank account for
their girl child education. 22 percent of the respondents possess the bank account for their
tax benefits. 10 percent of the respondents possess the bank account for their interest rate.
52 percent of the respondents possess the bank account for their future plan.
3.3.4 Preferential banking feature
TCCS Bank is providing enormous facilities to their customers like low interest rate, Better
customer services, Transperent manner, e services. The follow table specifies the preference
of customers loyalty and services.
Table3.12
Preferential banking feature
Particulars No of Respondents Percentage
Low interest rate 13 42
Better customer services 13 42
Transperent manner 3 10
E services 2 6
Total 31 100
Source: Primary Data
From the above table 3.12 it can be understood that 42 percentage (13) of the
respondents preferential banking feature is low interest rate, 42 percentage (13) of the
respondents preference in better customer services , 10 percentage (3) of the respondents
preference in transparent manner, and 6 percentage (2) of the respondents preference in e
services.
3.3.5 Respondents level of satisfaction on banking product offered
The TCCS Bank provides various loans like Personal loan, Jewel loan, SSI loan,
Agriculture loan to its customers. The following table 3.13 indicates .the level of
satisfaction of the respondents on the banking product offered.
Table 3.13
Respondents level of satisfaction on banking product offered

Particulars High Medium Low

NR WS NR WS NR WS TWS WA

Personal loan 7 21 14 28 10 10 59 1.9

Jewel loan 8 24 19 38 4 4 66 2.2
SSI loan 6 18 12 24 13 13 55 1.8
Agriculture loan 13 39 14 28 4 4 71 2.3
Source: Computed Data

NR = No. of Respondents, WS = Weighted Source, TWS = Total Weighted Source

WA = Weighted Average
Table 3.13 shows that the respondents level of satisfaction towards Agriculture loan
is high with the mean score of 2.3, which is followed by jewel loan with the mean score of
2.2. The respondents level of satisfaction towards personal loan and SSI loan are low with
the mean score 1.9 and 1.8 respectively. Hence it can be concluded that the bank has to
concentrate on personal loan and SSI loan to improve the level of satisfaction of its
customers.
3.3.6 Respondents opinion on banking operations
The respondents opinion on banking operations are analyzed with the help of ranking
technique and the results are shown in the table 3.14
Table 3.14
Respondents opinion on banking operations
Particula Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 TW R
rs S an
N W N W N W N W N W N W N W k
R A R A R A R A R A R A R A
Formalitie 3 21 7 42 2 10 7 28 4 12 3 6 5 5 124 3
s of
opening
account
Document 6 42 2 12 9 45 2 8 5 15 3 6 4 4 132 1
s required
are easy
produce
Minimum 4 28 7 42 2 10 9 36 2 6 2 4 5 5 131 2
balance
required
for
opening
the
account in
nominal
Friendly 6 42 3 18 2 10 3 12 2 6 10 20 5 5 113 6
and
approacha
ble bank
employees
Clear idea 6 42 3 18 5 25 2 8 6 18 2 4 7 7 122 5
on terms
and
conditions
Nominal 2 14 3 18 5 25 3 12 8 24 3 6 6 6 105 7
interest
rates
Easy 4 28 6 36 2 10 5 20 4 12 7 14 3 3 123 4
withdrawa
lProcedur
e
Respondents opinion on banking operations Source :
Computed Data
NR = No of Respondents, WA= Weighted Average, TWS = Total Weighted Average,
Table 3.14 highlights the respondents’ opinion on banking operations. Bases on the ranks
allotted by respondents, weighted scores are calculated and risks are allotted. With the
weighted score of 132, first rank was secured by “Documents required are easy to produce”
With the weighted score of 131, second rank was secured by “Minimum balance required
for opening the account in nominal” With the weighted score of 124, third rank was secured
by “Formalities of opening account” With the weighted score of 123, fourth rank was
secured by “Easy withdrawal procedure” with the weighted score of 122, fifth rank was
secured by “ Clear idea on terms and conditions” and the weighted score of,113, sixth rank
was secured by “Friendly and approachable bank employees” and the weighted score of
105, final rank by “Nominal interest rates”.

3.3.7 Difficulties faced by the respondents in operating the bank account Difficulties
faced by respondents in operating the bank account is studied and the results are shown in
the following table 3.15
Table 3.15
Difficulties faced by the respondents in operating the bank account
Particulars No of Respondents Percentage
Forms in English 4 13
Use of technical words 5 16
Complex formalities 6 19
Too much of questions 7 23
Poor quality forms 6 19
More documents to be enclosed 3 10
Total 31 100
Source: Primary Data
3.3.8 Respondents opinion on loan procedure
The researcher has analyzed the loan procedure stated by the respondents and results
are exhibited in Table 3.16
36
 Table 3.16
Respondents opinion on loan procedure
Particulars Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Ran
N W N W N W N W N W N W N W k
R A R A R A R A R A R A R A TW
S

Quick 5 35 5 30 4 20 3 12 4 12 6 12 4 4 125 4
formalities
getting loan

Acceptance of 5 35 3 18 4 20 7 28 4 12 5 10 3 3 126 3
many kind
of
securities
Easy repayment 4 28 4 24 3 15 4 16 7 21 3 6 6 6 116 6
schedule
Handsome loan 5 35 5 30 6 30 4 16 5 15 4 8 2 2 136 1
amount
Clear idea on 2 14 8 48 7 35 4 16 3 9 3 6 4 4 132 2
terms and
conditions
Nominal interest 4 28 4 24 4 20 3 12 2 6 5 10 9 9 109 7
rates
Easy repayment 5 35 4 24 3 15 4 16 4 12 8 16 3 3 121 5
procedure
Source: Computed Data
NR= No of respondents WA = Weighted Average TWS = Total weighted source Table
3.16 highlights the respondents’ opinion on loan procedure. Based on the ranks allotted by
the respondents, weighted score are calculated and ranks allotted. With the weighted score
of 136, first rank was secured by “Handsome loan amount” With the weighted score of132,
second rank was secured by “Clear idea an terms and conditions” With the weighted score
of126, third rank was secured by “Acceptance of many kind of securities” With the
weighted score of125, fourth rank was secured by ”Quick formalities getting loan” with the
weighted score of121, fifth rank was secured by “Easy repayment procedure” and weighted
score of 116, and109 is the next level of rank secured by “Easy repayment schedule “ and
“Nominal interest rates”.

3.3.9 Difficulties faced for getting the loan

The table 3.17 describes the difficulties faced for getting the loan.
Table 3.17
Difficulties faced for getting the loan
Particulars Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 TWS Rank
Complex 4 20 6 24 8 24 10 20 3 3 91 3
formalities
Demand 4 20 4 16 7 21 8 16 8 8 81 5
for more
securities

High 5 25 7 28 6 18 3 6 10 10 87 4
interest
rates
Rigid 7 35 9 36 5 15 3 6 7 7 99 2
payment
procedure

Limited 10 50 6 24 5 15 7 14 3 3 106 1
purposes
for loan
sanction

Source: Computed Data

NR = No of respondents WA=Weighted Average TWS= Total weighted source
From the above table 3.17 shows that ranking order of the problems which affect their
difficulties faced getting loan. The weighted scores are calculated and ranks are allotted.
When the weighted score of 106, first rank was secured by “Limited purposes for loan
sanction”. When the weighted score of 99, second rank was secured by “Rigid payment
procedure” When the weighted score of 91, third rank was secured by “Complex
formalities” when the 87 and 81 is the “High interest rate” and “Demand for more
securities” is next ranked.
3.3.10 Level of satisfaction
The table 3.18 describes the levels of satisfaction of the respondents.
Table 3.18 Level of satisfaction

Particulars Highly Satisfied Neutral Dis Highly TWS WA

dis
Satisfied satisfied
satisfied

N W N W N W N W N WA
R A R A R A R A R
Deposit schemes 13 65 12 48 3 9 1 2 2 2 126 2.52
Loan schemes 4 20 14 56 7 21 4 8 2 2 107 2.14
Employee 4 20 7 28 15 45 3 6 2 2 101 2.02
behavior
Banking facilities 7 35 10 40 5 15 6 12 3 3 105 2.1
Convenient 7 35 9 36 7 21 3 6 5 5 103 2.06
services
Source: Computed data
NR= No of Respondents, WS= Weighted Source, TWS= Total Weighted source
WA= Weighted Average
From the above table 3.18 we can observe that the respondents are highly satisfied with the
deposit schemes, with the highest weighted average of 2.52, loan schemes stood next with
the weighted score of 2.14, banking facility secures the weighted average of
2.1 and convenient services has the weighted average of 2.06 and the employee behavior
got the least weighted average of 2.02.
3.3.11 Respondents opinion on bank employees
The problems faced by the respondents of the researcher analyzed the problems and
is shown in the table below. The researcher inquiries about whether any difficulties is
shown in the table.
Table 3.19
Respondents opinion on bank employees
Particulars No of the Respondents Percentage
Attitude 8 26
Angryness 6 19
No responses 7 23
Delay in reply to customers 10 32
Total 31 100
Source: Primary Data
Table 3.19 shown that 26 percentage (8) of the respondents are complaining on the
attitude of the bank employees, 19 percent (6) of the respondents are complaining on the
angriness of the employees, 23 percentage (7) of the respondents are complaining that there
is no responses from the bank employees, 32 percentage (10) of the respondents are
complaining on the delay in reply to customers by the employees.
3.3.12 Respondents complaints on Infrastructural facility
The table 3.20 illustrates the respondents’ opinion of the infrastructural facility on
Tiruvenkitasamy Cooperative credit society bank.
Table3.20
Infrastructural facility
Particulars No of the Respondents Percentage
Water facility 5 16
Spacious 14 45
Parking facility 8 26
Electricity facility 4 13
Total 31 100
Source: Primary Data
From the above table 3.20 reveals that out of 31 respondents , 45 percentage (14) of
the respondents opinion that the bank premises is not spacious, 26 percentage (8) of the
respondents complaints the parking facility, 16 percentage (5) of the respondents complaints
the water facility, 13 percentage (4) of the respondents complaints the electricity facility in
the bank premises.
 CHAPTER - IV

FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 INTRODUCTION

4.2 FINDINGS OF THE STUDY

4.3 SUGGESTION

4.4 CONCLUSION
 Chapter – IV
FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 INTRODUCTION
The research is focused on the assessment of customer loyalty towards services of
Sivakasi Cooperative credit society at town branch. A total number of 31 respondents were
conveniently selected from town sivakasi area for conducting the survey. The social economic
characteristics of the respondents were studied include gender, age, educational level,
occupation, monthly income and their attitude towards customer loyalty and services was also
analyzed. The respondents opinion on the services of the bank, banking products and operatins
were analysed. This chapter presents the summary of findings of the study and suggestions to the
bank for improving the customer services.
4.2 FINDINGS OF THE STUDY
The researcher displays the findings, analyzing the data collected from the Sivakasi
Cooperative credit society customer.

4.2.1 Demographic profile of the respondents

● 59 percentage (18) of the respondents are male
● 59 percentage (18) of the respondents are in the age group of less than 30
● 42 percentage (13) of the respondents are under graduate
● 45 percentage (14) of the respondents are from urban areas.
● 26 percentage (8) of the respondents are private employees
● 32 percentage (10) of the respondents are earning a monthly income of less than
Rs.10,000.
● 65 percentage (20) of the respondents are residing in their own house.
● 39 percentage (12) of the respondents are saving Rs. 1,000 to Rs. 2,500 per month
4.2.2 Banking profile of the respondents
● 46 percentage of the respondents are maintaining account with the bank for less than 5
years.
● 55 percentage (17) of the respondents are maintaining savings account with TCCS bank.
● 52 percentage (16) of the respondents have opened the bank account with the intention of
future plan.
● 42 percentage (13) of the respondents’ preferential banking features are low interest rates
and better customer services.
● The respondents level of satisfaction towards Agricultural Loan is high with the mean
score of 2.3, which is followed by Jewel loan with the mean score of 2.2.
● The respondents opinion on banking operations are analysed with the help of ranking
technique and the results are- With the weighted score of 132, first rank was secured by
● “Documents required are easy to produce” With the weighted score of 131, second rank
was secured by “Minimum balance required for opening the account in nominal” With
the weighted score of 124, third rank was secured by “Formalities of opening account”
With the weighted score of 123, fourth rank was secured by “Easy withdrawal procedure”
with the weighted score of 122, fifth rank was secured by “ Clear idea on terms and
conditions” and the weighted score of,113, sixth rank was secured by “Friendly and
approachable bank employees” and the weighted score of 105, final rank by “Nominal
interest rates”.
● Difficulties faced by the respondents in operating the bank account is studied and the
results shows that 23 percentage of the respondents opined that there are too much of
questions, 19 percentage of the respondents felt that the forms are of poor quality.
● The respondents’ opinion on loan procedure is analysed with the help of ranking
technique. With the weighted score of 136, first rank was secured by “Handsome loan
amount” With the weighted score of132, second rank was secured by “Clear idea an
terms and conditions” With the weighted score of 126, third rank was secured by
“Acceptance of many kind of securities” With the weighted score of125, fourth rank was
secured by ”Quick formalities getting loan” with the weighted score of121, fifth rank was
secured by “Easy repayment procedure” and weighted score of 116, and109 is the next
level of rank secured by “Easy repayment schedule “ and “Nominal interest rates”.
● The respondents’ opinion on difficulties in getting the loan is analysed with the help of
ranking technique. With the weighted score of 106, first rank was secured by “Limited
purposes for loan sanction”. With he weighted score of 99, second rank was secured by
“Rigid payment procedure” With the weighted score of 91, third rank was secured by
“Complex formalities”.
● The respondents’ level of satisfaction towards the banking products is analysed with the
help of rating technique. The respondents are highly satisfied with the deposit schemes,
with the weighted average of 2.52, which is followed by loan schemes with weighted
average 2.14.
● 32 percentage (10) of the respondents are complaining on the delay in reply to customers
by the employees.
● 45 percentage (14) of the respondents opined that the bank premises is not spacious.
4.3 SUGGESTIONS TO THE BANK
Based on the findings of the study, the following suggestions are put forth to improve the customer
loyalty of the respondents.
⮚ Most of the respondents are illiterates. So the bank should simplify the procedure and
documentation in banking operations.
⮚ Institutional credit should be earmarked not only for small farmers, tenants and share
croppers but also for landless workers and artisans.

⮚ Interest-free loans on a long-term basis should be provided to the poorest of the poor so
that they could free themselves from the burden of redeeming the loans out of their
meager incomes.
⮚ Professionalism should be introduced in staffing and adequate training opportunities
should be provided to the employees of cooperatives for skill upgradation
⮚ They should frame sound and prudent policies for loans and investments and conduct
themselves in the larger interests of the depositors and the general public.
⮚ Nowadays infrastructural facility is a major thing so each and every facility offered by
cooperative bank must satisfy by the customer.
4.4 CONCLUSION
Cooperative movement plays a significant role in the economy of our country by giving
great strength to the economic progress. Today, co-operative banks operate across the country
alongside commercial banks and play a crucial role in providing need-based finance, especially
to people engaged in agricultural and agriculture-based operations including those related to
farming, cattle and milk, as well as to some small industries and self-employment-driven
activities. Cooperatives have inherent advantages as member-owned and member controlled
institutions. Successive governments have acknowledged their role in improving the productivity
and eradication of poverty among the rural masses and contribution to development of rural
economy and provided support and assistance as a part of State-promoted policies. The customer
loyalty of the study unit is moderate and hence, they have to take up the suggestions put forward
by the researcher for improving their customer relationship management and service quality.
 BIBLIOGRAPHY

Websites
✔ https://en.wikipedia.org/wiki/L’Or%C3A9al
✔ www.Strategex.com

Books
● C.R.Kothari, Research Methodolgy (New Age publications), second edition.
● Measuring, customer satisfaction, third edition.
Journals
⮚ Dick, Alan S. and Basu, kunal (1994) “Customer loyalty: Toward an integrated
Conceptual Framework”, journal of the Academy of Marketing Science,22 (winter), 99-
113.
⮚ Dowing, Grahame R. and Uncles, Mark (1997), “Do Customer Loyalty programs really
work? “sloan Management Review, 38 (summer), 71-82.
APPENDIX
 A STUDY ON CUSTOMER LOYALTY TOWARDS SERVICES OF SIVAKASI
CO-OPERATIVE CREDIT SOCIETY, TOWN BRANCH
I Demographic Profile
1. Name :
2. Age in years : Below 30 ( ) 31 – 40 ( ) 41 – 50 ( ) above 50 ( )
3. Gender : Male ( ) Female ( )
4. Educational Qualification :
a) Upto High school ( ) b) Diploma ( ) c) Under Graduate ( )
d) Post Graduate ( ) d)Others ( )
5. Location : Urban ( ) Semi Urban ( ) Rural ( )
6. Occupation :
a) Government Employee ( ) b)Private Employee ( ) c) Professional ( )
d)Agriculture ( ) e)Coolie job f)Self-employment
7. Monthly Income :
a) Less than 10000 ( ) b) 10000 – 20000 ( ) c)20000- 50000 ( )
d) above 50000 ( )
8. Residential House:
a) Own house ( ) b)Rental house ( ) c)leased house ( )
9. How much amount has to been allotted the savings on your salary
a) less than 1000 b)1000-2500 c)2500-5000 d) above 5000

II Banking Profile
10. How you long are maintaining account with co operative credit society?
a) less than 5 years ( ) b) 5 – 15 years ( ) c) 15 -25 years ( )
d) above 25 years ( )
11. State the Types of accounts held by in co operative credit society?
a) Savings a/c ( ) b) Fixed a/c ( ) c) Recurring a/c ( )
12. What purpose you have opened an account in co operative credit society?
a) Girl child education ( ) b) Tax benefits ( ) c) Interest rate ( )
d) Future plan ( )
13. Why do you prefer this co operative credit society?
a) low interest rate ( ) b) Better customer services ( )
c) Transperent manner ( ) d) E-services ( )
III Banking Product
14. Rank the following on the basis of customer satisfaction towards banking products offered
Types High Medium Low
Personal loan
Jewel loan
SSI loan
Agriculture loan

15. What do you think about the operation of account

S.No Operation of account Rank
1. Formalities for opening a/c
2. Documents required are easy to produce
3. Minimum balance required for opening the account
in nominal
4. Friendly and approachable bank employees
5. Clear idea on terms and conditions
6. Nominal interest rates
7. Easy withdrawal procedure

16. Rank the difficulties you faced while opening the account
a) Forms in English ( ) b) Use of technical words ( )
c) Complex Formalities ( ) d)Too much of questions ( ) e)Poor quality forms ()
f) More documents to be enclosed ( )
17.Rank the banking loan procedure based on your opinion
S.No Operation of account Rank
1. Quick formalities getting loan
2. Acceptance of many kind of securities
3. Easy repayment schedule
4. Handsome loan amount
5. Clear idea on terms and conditions
6. Nominal interest rates
7. Easy repayment procedure
18.Rank the difficulties you faced getting the loan
a) Complex Formalities () b) Demand for more securities () c) High interest rates ( )
d) Rigid repayment procedure ( ) e) Limited purposes for loan sanction ( )
IV Banking services
19. Tick you level of satisfaction in the following
S.No Level of HS S N DS HDS
satisfaction
1 Deposit
schemes
2 Loan
schemes
3 Employee
behaviour
4 Banking
facilities
5 Convenient
services

V. Opinion on bank employees and infrastructure

20. Difficulty while facing problem with employees
a) Attitude ( ) b) Angryness ( ) c) No responses ( )
d) Delay in reply to customers ( )
21.Which infrastructural facility do you like in cooperative credit society?
a) Water facility () b) Spacious ()
c) Parking facility ( ) d) Electricity facility ( )