Customer SatisfactionCustomer satisfactionis a term frequently used inmarketing. It is a measure of how products and services supplied by a company meet customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified goals. The meaning ofcustomer satisfaction has been commonly disputed as companies progressively attempt to review it. Customer satisfaction can be experienced in a wide range of circumstances and linked with both products and solutions. It is a highly individual evaluation that is significantly affected bycustomer satisfaction.Customer satisfaction is an important concept to consider when developing a customer loyalty programme. It is the measure of how well the customers expectations are met, whereas if we compare customer loyalty with customer expectation, customer loyalty is a measure of how likely a customer is to repurchase and engage in relationship activities. Loyalty is vulnerable because even if customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere.

Satisfaction is necessary but not a sufficient condition for loyalty. A customer travelling away from home may be very satisfied with a hotel in which they stay, but he may not necessarily stay in the same hotel when he visits that area again. Other variables impact on the customer's choice including price, location and convenience. Loyalty is established when the customer makes a commitment to the brand and returns to the same hotel whenever they are in the area. In other words, we can have satisfaction without loyalty, but it is hard to have loyalty without satisfaction while there is no guarantee that a satisfied customer will return it is almost certain that a dissatisfied customer will not return.Customer satisfaction can be defined as satisfaction based on an outcome or a process. Customer satisfaction characterizes satisfaction as the end-state resulting from the experience of consumption. This end state may be a cognitive state of reward, an emotional response to an experience or a comparison of rewards and costs to the anticipated consequences.Social psychologists, marketing researchers, and students of consumer behaviour, have extensively studied the concepts of customer satisfaction and dissatisfaction The increasing importance of quality in both service and manufacturing industries has also created a proliferation of research, the result of all this research has been the development of nine distinct theories of customer satisfaction. The majority of these theories are based on cognitive psychology amongst which some have received moderate attention, while other theories have been introduced without any empirical research.

Customer satisfaction is the leading criterion for determining the quality that is actually delivered to customers through the product/ service and by the accompanying servicing. In simple terms customer satisfaction is essential for corporate survival. As mentioned earlier, several studies have found that it costs about five times as much in time, money and resources to attract a new customer as it does to retain an existing customer This creates the challenge of maintaining high levels of service, awareness of customer expectations and improvement in services and product.

Components of customer satisfactionUnlike material products or pure services, most hospitality experiences are a fusion of products and services. Therefore it is possible to say that satisfaction with a hospitality experience such as a hotel stay or a restaurant meal is a sum total of satisfactions with the individual elements or attributes of all the products and services that make up the experience. There is no uniformity of opinion among marketing experts as to the classification of the elements in service encounters. Hospitality services consist of a harmonious mixture of three elements: the material product in a narrow sense which in the case of a restaurant is the food and beverages; the behaviour and attitude of the employees who are responsible for hosting the guest, serving the meal and beverages and who come in direct contact with the guests, and the environment, such as the building, the layout, the furnishing, the lighting in the restaurant, etc..On the other hand, satisfaction

Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers' expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty."Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:" "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company's goods and services."(1)

Kumar Arun, Minakshi N. Marketing ManagementVikash Publication 1st Edition 2006. P.No. 213, 214. (1)Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firms customers will make further purchasesin the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes Organizations need to retain existing customers while targeting noncustomers.Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. The importance of customer satisfaction is apparent when you realize that, without customers, you don't have a business. A single unsatisfied customer can send more business away from your company than 10 satisfied customers The more you focus on customer retention and customer support, the more long-term business you'll get. It's worth it to focus on customer satisfaction strategies, no matter how large or small your company is understanding the needs of customer is critical .A business relationship, just like any other relationship, relies on both people getting their needs met. No matter what type of business you are in, all customers want the same thing. They want to feel welcomed and appreciated by you and your staff. They don't want to get the impression that they are just being used by you for money.A business is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within the business in a competitive market place where business can compete satisfaction is a seen as a key differentiatorand increasingly has become a key element of business strategy. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and service to service. The state of satisfaction depends on a number of both psychological and physical variables The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set ofchallenges. Customer loyalty is much harder to obtain than satisfaction. Even though customers are satisfied with the company there are several factors that could cause the customer to defect to the competition, such as finding a better value or the competitor is more convenient. With that said, having high levels of customer satisfaction does not always lead to customer loyalty. However, a company cannot achieve customer loyalty without having customer satisfaction. Thus, though customer satisfaction does not guarantee the repurchase from a company but it does play a very important role in achieving customer loyalty. Conducting customer satisfaction research will provide your company with the necessary insight it needs to make informed decisions in order to retain and increase your customer base and improve customer relationships.

Measuring customer satisfactionOrganizations need to retain existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products.Importance in banking sectorThere are number of reasons why customer satisfaction is important in banking sector.1. Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers have a right to quality services that deliver outcomes.2. Organizations that strive beyond minimum standards and exceed the expectation of their customers are likely to be leaders in their sector.3. Customers are recognized as key partners in shaping service development and assessing quality of service delivery.4. Intheorganisedsegment,bankingsystemoccupiesanimportantplaceinnationseconomy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country."Customer satisfaction is measured at the individual level, but it is almost always reported at an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your stay.Good quality measures need to have high satisfaction loadings, good reliability, and low error variances. In an empirical study comparing commonly used satisfaction measures it was found that two multi-itemsemantic differentialscales performed best across both hedonic and utilitarian service consumption contexts. According to studies by Wirtz & Lee (2008), they identified a six-item 7-pointsemantic differentialscale (for example, Oliver and Swan 1983), which is a six-item 7-point bipolar scale, that consistently performed best across both hedonic and utilitarian services. It loaded most highly on satisfaction, had the highest item reliability, and had by far the lowest error variance across both studies. In the study, the six items asked respondents evaluation of their most recent experience with ATM services and ice cream restaurant, along seven points within these six items: pleased metodispleased me, contented withtodisgusted with, very satisfied withtovery dissatisfied with, did a good job for metodid a poor job for me, wise choicetopoor choice and happy withtounhappy with.and ice cream restaurants, along seven points within delightedtoterrible.(2)

Wirtz, Jochen; Chung Lee, Meng (2008), An Empirical Study on The Quality and Context-specific Applicability of Commonly Used Customer Satisfaction Measures, Journal of Service Research, Vol. 5, No. 4, 345-355. (2)Asemantic differential(4 items) scale (e.g., Eroglu and Machleit 1990), which is a four-item 7-point bipolar scale, was the second best performing measure, which was again consistent across both contexts. In the study, respondents were asked to evaluate their experience with both products, along seven points within these four items: satisfiedto dissatisfied, favorabletounfavorable, pleasanttounpleasant and I like it very muchtoI didnt like it at all The third best scale was single-item percentage measure, a one-item 7-point bipolar scale (e.g., Westbrook 2013(3) Again, the respondents were asked to evaluate their experience on both ATM services and ice cream restaurants, along seven points within delightedtoterrible. "Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.""Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:"1. "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with with the company's goods and services."2. "Although sales or market share can indicate how well a firm is performingcurrently, satisfaction is perhaps the best indicator of how likely it is that the firms customers will make further purchasesin the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes."

Westbrook, Robert A. (2013), A Rating Scale for Measuring Product/Service Satisfaction, Journal of Marketing, 44 (Fall), 68-72. (3)

BENEFITS OF CUSTOMER SATISFACTIONFeedbackCustomer feedback in the form of answers, comments and suggestions about a company's products, business practices and customer service is one of the major benefits of a customer satisfaction survey.Desired ImprovementsIf feedback is critical or negative on any aspect, quick measures can be taken to bring about the desired improvements or address grievances and placate relevant customers.Better InnovationAnalysis of customer feedback surveys and the information collected becomes the basis for customer intelligence. Used strategically, such intelligence can be used to drive innovation efforts and initiatives at the company.Greater CustomizationA customer satisfaction survey also shows critical insights about different customer segments and products so that services and marketing approaches can be tailored accordingly.Long-Term RelationshipCustomer satisfaction surveys enable companies to consistently and better address customer needs and expectations, maintain brand reputation and facilitate long-term relationships with customers.(4)

Kotler Philip, Keller Lane Kvin Marketing Management.12th edition Pearson Education P.No. 117,118,121.(4)Sometimes companies are misguided by the notion that customers depend on them. The truth of the matter is that we very much so depend on them. Many researchers and academia have highlighted the importance of customers in todays market.The level of satisfaction a customer has with a company has profound effects. Studies have found that the level of customers satisfaction has a positive effect on profitability: A totally satisfied customer contributes 26 times as much revenue to a company as a somewhat satisfied customer. A totally satisfied customer contributes 17 times as much revenue as a somewhat dissatisfied customer. A totally dissatisfied customer decreases revenue at a rate equal to 18 times what a totally satisfied customer contributes to a company. Process of customer satisfaction. Step 1 Understanding Customer Expectations Step 2- Promises to Customers Step 3 Execution Step 4 - Ongoing Dialog with a Customer Step 5 - Customer Satisfaction SurveysIMPORTANCE OF CUSTOMER SATISFACTIONI. To delivers excellent quality Our core business is to deliver excellent service for any product, at any time, at any place. We provide worldwide door-to-door services ('old integrator') as well as comprehensive solutions ('new integrator'). We improve our services based upon the demands of our customers in our national and international markets. We continuously challenge and improve our structures and production processes.II. To make our customers successful

Customer satisfaction determines our Group's success. Our customers' success is our success. We have the best possible knowledge of customers, markets and competitors and are therefore the standard setters in the market. Our activities are governed by our knowledge of the global and local requirements of our customers and market

III. To foster opennessWe think global, act local and respect different cultural values in the countries where we operate. Being open helps us to promote integration and, in turn, the success of the Group. We make decisions based on facts and analyses. To do so, we use the combined knowledge of our Group in all our locations and units and the expertise of all our employees at all times. We learn from successes and failures, from internal and external best practices, from every single employee.

IV. To act according to clear priorities

1. The success of our customers2. The success of our Group3. The success of each organizational unit and the success of each individual

V. To act in an entrepreneurial wayEntrepreneurial conduct constitutes the spirit of our Group. We demand and promote individual responsibility. Excellent people are key to our success. We welcome motivated and loyal employees who strive for top performance. It is one of our core tasks to attract, develop and retain such employees in the long term.VI. To act with integrity internally and externallyIntegrity determines the way we work within the Group as well as our conduct toward our business partners, shareholders and the general public. Each employee has the opportunity for personal development according to individual performance independent of gender, religion or culture. We do not tolerate discrimination. Each executive respects each employee's personal dignity and personality within his staff and is responsible for creating an atmosphere of mutual trust within the team. Executives delegate tasks effectively; however, they remain responsible for the results (5)

Kotler Philip, Koshy Abraham, Marketing Management 13th Edition Pearson Education P.No. 115,116,120.(5)MEANING OF RESEARCHResearch comprises creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man ,culture, society, and the use of this stock of knowledge to devise new applications .It is a way to systematically solve the research problem .it may be understood as a science of studying how research is done scientifically the scope of research methodology is wider than that of research methods. When we talk of research methodology we not only talk of research methods we use in the context of our research study and explain why we are using a particular method. A research is purely and simply the framework and plan the study that guides the collection and analysis of data..

OBJECTIVES OF THE STUDY To know the lending practices of MUCB. To study the impact of size on the efficiency of the MUCB. To know different type of loans preferred by different sets of customers. To know the satisfaction level of the customers from Banks lending policies.

SCOPE OF THE STUDY1. The research will bring to light the perception of customers regarding the awareness and demand of various services presently offered by MUCB.

2. The study is limited to the customers of Jaipur only.

3. This study will help us to understand customers, preference and their needs, and it will help to improve the standard of service.

4. The study will be able to reveal the banking services. It also help s banks to know whether the existing products or services which they are offering are really satisfying the customer needs.

RESEARCH DESIGNA research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure it is a process of systematic study. A research design is a systematic plan to study a scientific problem. the design of a study defines the study type (descriptive, experimental) research design is the framework that has been created to seek answers to research questions.Descriptive research is used in this research in order to identify the lending practices of malviya urban cooperative bank determining customers level of satisfaction.Descriptive research is also called statistical research the main goal of this type of research is to describe the data and characteristics about what it is studied the idea behind this type of research is to study averages and other statistical calculations. Descriptive research is the exploration of the existing certain phenomena.COLLECTION OF DATA Primary DataPrimary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose.A questionnaire was used to the selected sample to collect the primary data.Secondary Dataa. Booksb. InternetSAMPLINGSampling Unit: The Study population includes the customers of bank and Sampling Unit for Study was Individual Customer. Sampling Size: 50 Respondents Sampling Area: Jaipur

REVIEW OF LITERATURE Estiri, Hosseini, Yazdani, and Nejad (2013) performed a review of the set of attributes capable of being incorporated in the measure of customer satisfaction for banks. Later, the possibility was posed of grouping these attributes into dimensions of quality and testing their reliability and validity.Ganguly and Roy (2012) studied the factors affecting customer satisfaction in the Indian banking sector; Questionnaire developed to determine the factors for customer satisfaction was distributed among the respondents.the dimensions were identified using a exploratory factor analysis. The paper identifies four generic dimensions in the technology, convenience, and technology convenience, easiness, reliability. Chander and Chandel (2011) analyzed the financial efficiency and viability of HARCO Bank and found poor performance of the bank on capital adequacy, liquidity, earning quality and the management efficiency parameters.Singla (2010) emphasized on financial management and examined the financial position of sixteen banks by considering profitability, capital adequacy, debt-equity and NPA (7) Dutta and Basak (2008) suggested that Co-operative banks should improve their recovery performance, adopt new system of computerized monitoring of loans, implement proper prudential norms and organize regular workshops to sustain in the competitive banking environment. (6)Ganguly.S,& Roy,S.K. (2011). Generic technology-based service quality dimensions in banking: impact on customer satisfaction and loyalty. International journal of bank marketing, 292(2), 168.

Dutta Uttam and Basak Amit (2008), Appraisal of Financial Performance of urban cooperative bank a Case Study The management accountant, case study, March 2008, pg -170-174.(6)Harish Kumar Singla (2008), Financial performance of banks in India, The ICFAI Journal of Management, Vol. 5, Issue 1(7)Campbell (2007) focused on the relationship between nonperforming loans (NPLs) and bank failure and argued for an effective bank insolvency law for the prevention and control of NPLs for developing and transitional economies as these have been suffering severe problems due to NPLSingh and Singh (2006) studied the funds management in the District Central Co- operative Banks (DCCBs) of Punjab with specific reference to the analysis of financial margin. It noted that a higher proportion of own funds and the recovery concerns have resulted in the increased margin of the Central Co-operative Banks and thus had a larger provision for non-performing assets. Mavaluri, Boppana and Nagarjuna (2006) suggested that performance of banking in terms of profitability, productivity, asset quality and financial management has become important to stable the economy. They found that public sector banks have been more efficient than other banks operating in India. Edwinraj (2005) [31] described the role of information technology in co-operative banks. The information technology in cooperative banks plays a significant role in establishing and maintaining contact with potential customers.Hebbar Raveendranath (2004) [29] described that the advancements in computing and telecom have revolutionised the financial industry. Banks are developing alternative mchannels of delivery like ATM, telebanking, remote access, internet banking etc., Some questions that need to be answered are , how can one trust these channels, our personal data and transactions which are driven by technologyPal and Malik (2007) investigated the differences in the financial characteristics of 74 (public, private and foreign) banks in India based on factors, such as profitability, liquidity, risk and efficiency. it is suggested that foreign banks were better performers, as compared to other category of banks, in general and in terms of utilization of resources in particular.(8)

Ved Pal & N S Malik (2007),"A multivariate analysis of the financial characteristics commercial banks in India", The ICFAI Journal of Management, Vol. 6, Issue 3(8) LIMITATIONS OF THE STUDY1. The data for study mainly based on a single bank2. Questionnaire is the major limitation for the project.3. The time period of the research was limited. .4. Study is limited to concept of lending practices cooperative bank.5. The information collected from 50 respondents only. 6. The responses given by the respondents may not be true 7. It was difficult to find respondents as they were busy in their schedule.8. Collection of data was very difficult therefore study is based on availability of respondents.

CO-OPERATIVE BANKS:Co-operative banksare small-sized units organized in the co-operative sector which operate both in urban and non-urban centers. These banks are traditionally centered communities, localities work place groups and they essentially lend to small borrowers and businesses. The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, until 1996, could only lend for non-agricultural purposes However, today this limitation is no longer prevalent. While the co-operative banks in rural areas mainly finance agricultural based activities including farming,cattle, milk,hatchery, personal finance, etcetera, along with some smallscale industries and selfemployment driven activities, the co-operative banks in urban areas mainly finance various categories ofpeople for self-employment, industries, small scale units and homefinance Co operativeBanks in Indiaare registered under the Co-operative SocietiesAct. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws. Cooperative societies Act, 1965.These banks provide most services such as savings and current accounts, safe deposit lockers, loan or mortgages to private and business customers. For middle class users, forwhom a bank is where they can save their money, facilities like Internet banking or phone banking is not very important .Co-operative banks function on the basis of 'no-profit no-loss'. Co-operative banks, as a principle, do not pursue the goal of profit maximization. Therefore, these banks do not focus on offering more than the basic banking services. So, co-operative banks finance small borrowers in industrial and trade sectors, besides professional and salary classes .Co-operative banks differ from stockholder banks by their organization, their goals, theirvalues and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body.Even if their organizational rules can vary according to their respective national legislations, co-operative banks share common features: Customer-owned entities:In a co-operative bank, the needs of the customers meet the needs of the owners, as co-operative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximize profit but to provide the best possible productsand services to its members. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services.Democratic member control.Co-operative banks are owned andcontrolled by theirmembers, who democratically elect the board of directors. Members usually have equal voting rights, according to the co-operative principle of one person, one vote.Profit allocation:In a co-operative bank, a significant part of the yearly profit, benefits orsurplus is usually allocated to constitute reserves.A part of this profit can also be distributed to the co-operative members, with legal or statutory limitations in most cases. Profit is usually allocated to members either through a patronage dividend, which is related to the use of the co-operatives products and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed by each member. Co-operative banks are deeply rooted insidelocal areas and communities. They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities. By increasing banking access in areas or markets where other banks are less present farmers in rural areas, middle or low income households in urban areas - co-operative banks reduce banking exclusion and foster the economic ability ofmillions of people. They play an influential role on the economic growth in the countries in which they work in and increase the efficiency of the international financial system. Theirspecific form of enterprise, relying on the above-mentioned principles of organization, has proven successful both in developed and developing countries .The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is animportant constituent of the Indian financialsystem judging by the role assignedto cooperative, the expectations the co operative is supposed to fulfill, their number, and the number of offices the cooperative bank operate Though the co operative movement originated

HISTORY OF CO-OPERATIVE BANKING

The origins of the cooperative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany, such societies were set up in India. Now, Co-operative movement is quite well established in India. The first legislation on co-operation was passed in 1904. In 1914 the Maclagen committee envisaged a three tier structure for co-operative banking viz. Primary Agricultural Credit Societies (PACs) at the grass root level, Central Co-operative Banks at the district level and State Co-operative Banks at state level or Apex Level. In the beginning of 20th century, availability of credit in India, more particularly in rural areas, was almost absent. Agricultural and related activities were starved of organised, institutional credit. The rural folk had to depend entirely on the co-operative banks arrived in India in the beginning of 20th Century as an official effort to create a new type of institution based on the principles of co-operative organisation and management, suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for money lenders, to provide timely and adequate short-term and long-term institutional credit at reasonable rates of interest, money lenders who lent often at usurious rates of interest.The Anyonya Co-operative Bank in India is considered to have been the first co-operative bank in Asia which was formed nearly 100 years back in Baroda. It was established in 1889 with the name Anyonya Sahayakari Mandali Co-operative Bank Limited, with a primary objective of providing an alternative to exploitation by moneylenders for Baroda's residents. In the formative stage Co-operative Banks were Urban Co-operative Societies run on community basis and their lending activities were restricted to meeting the credit requirements of their members. The concept of Urban Co-operative Bank was first spelt out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative Bank. Provisions of Section 5 (CCV) of Banking Regulation Act, 1949 (as applicable to Co-operative Societies) defined an Urban Co-operative Bank as a Primary Co-operative Bank other than a Primary Co-operative Society was made applicable in 1966. With gradual growth and also given Philip with the economic boom, urban banking sector received tremendous boost and started diversifying its credit portfolio. Besides giving traditional lending activity meeting the credit requirements of their customers they started catering to various sorts of customers viz. self -employed, small businessmen / industries, house finance, consumer finance, personal finance etc. Urban Co-operative Banks:

Urban Co-operative Banks is also referred as Primary Co-operative banks by the Reserve Bank of India. Among the non-agricultural credit societies urban co-operative banks occupy an important place. This bank is started in India with the object of catering to the banking and credit requirements of the urban middle classes.Urban Co-operative banks mobilize savings from the middle and lower income groups and purvey credit to small borrowers, including weaker sections of the society. These banks organize on a limited liability basis; generally extend their area of operation over a town. The main functions of these banks are to promote thrift by attracting deposits from members and non-members and to advance loans to the members. It is registered under Co-operatives Societies Act of the respective state Governments. Prior to 1966, Urban Co-operative banks were exclusively under the purview of State Government. From March 1, 1966 certain provisions of Banking Regulation Act have been made applicable to these banks. Consequently, RBI became the regulatory a supervisory authority of Urban Co-operative Banks for their related operations. Managerial aspects of such banks continue to remain with State Governments under the respective Cooperative societies act. These banks with multi-presence are regulated by the Central Governments and registered under Multi-State Co-operative Societies Act. The RBI extends refinance to Urban Co-operative Banks at bank rate against their advances to tiny and cottage industrial units. These banks grants sizeable loans and advances under priority sector for lending to small business enterprises, retail trade, road and water transport operators and professional and self-employed persons. Urban Co-operative banks are mostly located in towns and cities and cater to the credit requirement of the urban clientele.Some facts about Cooperative banks in India: Some cooperative banks in India are more forward than many of the state and private sector banks.According to NAFCUB the total deposits & landings of Cooperative Banks in India is much more than Old Private Sector Banks & also the New Private Sector Banks.This exponential growth of Co operative Banks in India is attributed mainly to their local reach, personal interaction with customers, and theirability to catch the nerve ofthe local clientele.There are two main categories of the co-operative banks are:a) Short term lending oriented co-operative BanksIn this category there are three sub categories of banks viz. state co-operative banks, District co-operative banks and Primary Agricultural co-operative societies.b) Long term lending oriented co-operative BanksIn the second category there are land development banks at three levels state level, district level and village level.The cooperation banking structure is divided into following five categories1.Primaryurbancooperativebank2.Primaryagriculturecreditsocieties3.District centralcooperationbank4.Statecooperativebank 5.Landdevelopmentbank

Primary urban cooperative bank.

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urbanand semi-urban areas. These banks, till 1996, were allowed to lendmoney only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerablyMalviya urban cooperative bank (MUCB).The Malviya Urban Co-operative Bank Ltd., Jaipur is registered under the Rajasthan Co-operative Societies Act 1965 dated 28.08.1999 vide registration number 269/LC having its registered office at Jaipur. The date of commencement of business was 24.01.2000, as the license to carry on banking business had been issued by R.B.I. vide no. UBD. Rajasthan 0003 (P) dated 29.10.1999.Since commencement of its business from January 2000 the bank is running as a profitable entity. Malviya Urban Co-Operative Bank Ltd.is a credit co-operative society, initially registered under Rajasthan Co-operative Society Act 2001.Malviya Urban Co-Operative Bank Ltd.strictly abides by the state cooperative societies act. Society is not a personal institution owned by an individual. But is a fully democratic organization managed by the Board of Directors who are elected by the members of the society in the Annual General Meeting and the Board of Directors take decisions unanimously with total transparency. More so, the Department of Co-operative of the Central Government constantly reviews the functioning of the society at regular intervals.Co-operative banks are small-sized units organized in the co- operative sector which operate both in urban and non-urban regions. These banks are traditionally centered on communities, localities and work place groups and they essentially lend to small borrowers and businesses. The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, until 1996, could only lend for non- agricultural purposes. As at end-March 2011, there were 1,645 UCBs operating in the country, of which majority were non- scheduled UCBs. Moreover, while majority of the UCBs were operating within a single State, there were 42 UCBs having Operations in more than one State. However, today this limitation is no longer prevalent. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance, etc. along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units and home finance. These banks provide most services such as savings and current accounts, safe deposit lockers, loan or mortgages to private and business customers. For middle class users, for whom a bank is where they can save their money, facilities like Internet banking or phone banking is not very important. Although they are not better than private banks in terms of facilities provided, their interest rates are definitely competitive. (9)

www.mucb.com(9)BOARD OF DIRECTORS Sh. Ram Prasad Agarwal Chairman

Sh. Mohan lal Sharma Vice chairman

Dr. Urmila SharmaDirector

Sh. Gaurav GuptaDirector

Smt. Munni devi Nagori Director

Sh. Mohan Singh Director

Smt. Richa Agarwal Director

Smt. Rimpy Sharma Director

Sh. Virendra Singh Director

Smt. Sarita Sharma Director

Smt. Sweety Agarwal Director

Shri. N.L. Sharma Advisor

Mr. Sanjeev Sharma Managing Director

Mr. Pawan Sharma General Manager

Mr. Virendra Singh Chief Manager

Mr. Ram Naresh Sharma Deputy General Manager

Ms. Madhu Singh KhangarothSenior Manager

Mr. Nirmal tailor Manager

Vision of the Malviya Urban Co-operative bank Primarily, to raise funds for lending money to its members. To attract deposits from members as well as non-members. To encourage thrift, self-help ad mutual aid among members. To draw, make, accept, discount, buy, sell, collect and deal in bills of exchange, drafts, certificates and other securities.Annual business plan (annual action plan) for 2014-2015The following annual business plan (annual action plan) was approved by the board of directors for the year 2014-2015 ending 31st march 2015.1. To enroll 192 new members so as to reach the membership at 4550.2. To increase share capital to get the level of 320lac as on 31.03.2015.3. To increase loans and advances up to the level of rs.6000lac.4. To increase the deposits of bank so as to reach to the level of rs.10200lac.5. To increase the working capital by 12000lac.6. To organize customers meet.PRODUCTS:

MUCB has various products for the customers like Deposits, and Loans. When we say about the deposits the MUCB has the following accounts Current account, saving bank account, Term deposit, bank further has the following schemes like fixed deposits. It includes different types of loan schemes. Currently the MUCB bank has many loans schemes. Like personal loans, home loans, vehicles loans, Education loans etc.

IMPORTANCE OF CO-OPERATIVE BANKINGCo-operative bank forms an integral part of banking system in India. This bank operates mainly for the benefit of rural area, particularly the agricultural sector. Co-operative bank mobilize deposits and supply agricultural and rural credit with the wider outreach. They are the main source for the institutional credit to farmers. They are chiefly responsible for breaking the monopoly of moneylenders in providing credit to agriculturists. Co-operative bank has also been an important instrument for various development schemes, particularly subsidy-based programmes for the poor. Co-operative banks operate for non-agricultural sector also but their role is small. Though much smaller as compared to scheduled commercial banks, co-operative banks constitute an important segment of the Indian banking system. They have extensive branch network and reach out to people in remote areas. They have traditionally played an important role in creating banking habits among the lower and middle income groups and in strengthening the rural credit delivery system.STRENGTH AND WEAKNESS OF COOPERATIVE BANKS: The main weaknesses of co-operative banks are as follows:i. The vital link in the co-operative credit system namely, the Primary Agricultural Co-operative Societies, themselves remain very weak. They are too small in size to be economical and viable; besides too many of them are dormant, existing only on paper.ii. With the expanding credit needs of the rural sector, the commercial banks have come in actively to meet the credit requirements of this sector, and this has aggravated the difficulties of co-operative banks. iii. Most of the Co-operative banks are suffering from the lack of professional management. In the deregulated environment and stiff competition in the banking sector, due to lack of the professionalism in carrying out banking activities, the weakness of these banks has become more prominent. iv. Many co-operative banks even now continue to follow age-old system and procedures, which are not conductive in the present technologically driven banking environment. Except some Co-operative banks, technological development in Information Technology or computerized data management is conspicuously absent. v. Another problem arises out of the duality of control over them i.e. these banks are organized under dual control of RBI and as well as respective state government. Apart from the intervention of the apex bodies, the Government is also found to exercise control in various ways on these banks. Government intervention in the management, administration and business operation of co-operative banks has made the institution lose his own distinct character(10)

OPERATION OF COOPERATIVE BANKi. Co-operative bank performs all the main banking functions of deposit mobilisation, supply of credit and provision of remittance facilities.ii. Co-operative Banks belong to the money market as well as to the Capital market.iii. Co-operative Banks provide limited banking products and are functional specialists in agriculture related productsiv. UCBs provide working capital loans and term loan as well.

www.rbi,org.in(10)THE FUNCTIONS OF COOPERATIVE BANKa. To attract deposit from non-agriculturist.b. To use excess funds of some societies temporarily to make up for shortage in another.c. To supervise and guide affiliated societiesROLE OF CO-OPERATIVE BANKCo-operative Banks are much more important in India than anywhere else in the world. The distinctive character of this bank is service at a lower cost and service without exploitation. It has gained its importance by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. Co-operative banks role in rural financing continues to be important day by day, 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. In rural areas, as far as the agricultural and related activities are concerned, the supply of credit was inadequate, and money lenders would exploit the poor people in rural areas providing them loans at higher rates. So, Co-operative banks mobilize deposits and purvey agricultural and rural credit with a wider outreach and provide institutional credit to the farmers. Co-operative bank have also been an important instrument for various development schemes, particularly subsidy-based programmes for poor. (11)The Co-operative banks in urban areas finance in activities like: Self-employment Industries Small scale units Home finance Consumer finance

www.urbancooperativebank.com (11)Table 1: Preferences of the customers for the loans

Kind of loanNo. of respondentsPercentage (%)

House loan1224

Personal loan1020

Consumer loan816

Educational loan918

Vehicle loan612

Other510

Total 50100

Figure 1: Preference of kinds of loanINFERENCE Present study reveals that majority of the respondents have taken house loans & personal loans and less respondents prefer consumer, educational and vehicle loans.

Table 2: Range of the amount of loans

Loan amount No. Of respondent Percentage (%)

Less than 200001122

20000-500002652

50000-1000001020

More than 1 lakh36

Total 50100

Figure 2: Range of the amount of loans INFERENCE Present Study reveals that 22% people prefer loan less than 20,000, 52 % respondents prefer 20,000 to 50,000,20% prefer more than 1 lakh and 6% of the respondents prefer more than 1 lakh.

Table 3: Preferable term of loanTerm of loanNo. of respondentPercentage (%)

Less than 1 year714

1 to 3 years1326

More than 3 years3060

Total 50100

Figure 3: Terms of loan.

INFERENCEStudy shows that 60% respondents take loan for more than 3 years, 26 % take loan for 1 to 3 years and 14% take loan for the period of less than 1 year.

Table 4: What prompted the customers to take loan from cooperative banks?Reason for taking loanNo. of respondentsPercentage (%)

Reasonable rate of interest612

More schemes1734

Less formalities918

Easy repayment1020

Any other816

Total 50100

Figure 4: What prompted the customers to take loan from cooperative banks INFERENCE 34% take loans because of more schemes and other respondents take loan because of reasonable rate of interest, and less formalities. Study reveals that 20% take loan because banks provide easy repayment.

Table 5: Average time taken for the processing of the loanAverage time for processing of loanNo. of respondentPercentage (%)

Less than 7 days3570

Between 7 to 14 days1020

More than 14 days510

Total50100

Figure 5: Average time taken for the processing of the loan

INFERENCEStudy reveals that 70% respondents says that average time taken for processing of the loan is less than 10 days, 20% says that it takes 7 14 days and 10 % says that it takes more than 14 days.

Table 6. Ranking of the facilities provided by the cooperative banks.Rank the facilityNo. of respondentPercentage (%)

Above average3264

Average1122

Below average 714

Total 50100

Figure 6: Ranking of the facilities provided by the co-op. banks INFERENCE Study shows that 22% of the respondent says that facility provided by the bank are average, 64% say that its above average and 14% says that its below average.

Table 7: Customers ranking for service of the bank

Rank the customer servicesNo. of respondentPercentage (%)

Excellent2550

Good1530

Average714

Poor36

Total 50100

Figure 7: Customers ranking for service of the bank INFERENCE Study shows that 30% of the respondents says that customer service of the bank is good 50% says that it is excellent and another 14 % says its average and only 6 % says its poor.

Table 8: Customers who would like to refer the co-op. banks to their friends and relatives.Bank refers to others No. of respondentPercentage (%)

Always 3468

Sometimes 1020

Never612

Total 50100

Figure 8: Customers who would like to refer the co-op. banks to their friends and relatives

INFERENCE 68 % of the respondents would like to refer the bank to their friends and relatives which shows that they are satisfied from the services and lending practices of the bank.

Table 9: Satisfaction of the customers with the amount and period of installment.No. of respondentPercentage (%)

Yes2856

No2244

Cant say1020

Total 50100

Figure 9: Satisfaction of the customers with the amount & period of installmentINFERENCEStudy reveals that 56% are satisfied with the amount and period of installment, 44 % are not satisfied and 20 % cant say.

FINDINGS

Majority (32% as per the study) of the respondent were having housing loan from this bank

Most (64% as per the study) of the people prefer to take long term loan which is more than 3 years.

There is a very simple procedure followed by bank for loan

Easy repayment and less formality are the main factors determining customers selection of loans.

Quality of services provided by the staff is satisfactory because bank is catering to a small segment only and the customers are properly dealt with.

Customers are satisfied with the mode of repayment of installments.

Average time for the processing of loan is less i.e. approx 7 days.

Most of the respondents are satisfied with the service offered by malviya urban cooperative bank.

The reason can be increasing customer satisfaction and quality services offered by malviya urban cooperative bank.

Majority of the respondents rates good, very good, and excellent because of the customer service offered by the bank.

SUGGESTIONS The COOPERATIVE BANKS should adopt the modern methods of banking like internet Banking, credit cards, ATM, etc.

The MUCB should plan to introduce new schemes for attracting new customers and satisfying the present ones.

The MUCB should plan for expansion of branches.

The MUCB should improve the customer services of the bank to a better extent.

MUCB should adopt effective promotional strategies to increase the awareness level among the consumers.

MUCB should ask their customers feedback to know whether the consumers are really satisfied or dissatisfied with the service and the product of the bank .if they are dissatisfied then the reasons for dissatisfaction should be found out and should be corrected in future.

MUCB should work hard to maintain its position and offer better service and products to consumers.

CONCLUSIONPresently, the urban cooperative banks occupy an important place in the Indian financial system. Majority of the people prefer to take long term loan which is for 3 years .they showed preference for personal business and house loan, firstly the corporation should target the existing customer base and try to increase their awareness levels. Then they should make the other customer of the bank at least aware of the various schemes so that the next stage of interest, desire and action becomes easy to execute. Bank should look to open new branches with proper planning &careful selection of location, which is convenient to the target customer especially in places where there are a lot of options in front of the consumers. Malviya urban cooperative bank will learn from the present experiences and adjust to new realities since banking is risky business .In future the urban cooperative banks are ready to face many challenges in the competitive environment. The cooperative banks are best vehicles for taking banking to doorsteps of common men, unbanked people in rural and urban areas. Without the help of cooperative banks, people would be lacking the much needed financial support. These banks are sure to win in the race because they are from the people ,by the people, and of the people.

BIBLIOGRAPHYBooks: Kothari C.R. Research Methodology Methods & Techniques, Revised Second Edition (New age international publishers), 2013. Kotler Philip, Keller Lane Kvin Marketing Management.12th edition Pearson Education P.No. 117,118,121. Sudha G.S. (2012-2013), Human Resource Management, RBD Publications. Kumar Arun, Minakshi N. Marketing ManagementVikash Publication 1st Edition 2006. P.No. 213, 214. Bhasak Amit,Cooperative Banks in India- Functioning and Reforms New Century Publications, 2010. Kotler Philip, Koshy Abraham, Marketing Management 13th Edition Pearson Education P.No. 115,116,120. Nakkiran.S Co-operative Banking in India Rainbow Publications, 2007. R.L. Naulakha,Business Management Publication R.B.D Publication House (2013-2014). Peelen EdCustomer Relationship Management, Publication Pearson Education.(2010). C.M. Prasad, Organizational Behaviour, Sultan Chand &Sons First Edition 1984, 2011,2012.

Websiteswww.mucb.comwww.urbancooperativebank.com www.rbi,org.in

REFERENCES Westbrook, Robert A. (2013), A Rating Scale for Measuring Product/Service Satisfaction, Journal of Marketing, 44 (Fall), 68-72. (3)

Chander and Chandel (2012) Financial Viability of an apex cooperative credit institution Vol. VI, No.2, April-June 2010, pg 61-70.

Dutta Uttam and Basak Amit (2011), Appraisal of Financial Performance of urban cooperative bank a Case Study The management accountant, case study, March 2008, pg -170-174.

Harish Kumar Singla (2010), Financial performance of banks in India, The ICFAI Journal of Management, Vol. 5, Issue 1.

Ved Pal & N S Malik (2007),"A multivariate analysis of the financial characteristics of commercial banks in India", The ICFAI Journal of Management, Vol. 6, Issue 3.

Ramesha and Nagaraju (2007), "Prudential Standards and the performance of Urban Co-operative Banks in India: An Empirical Investigation", The ICFAI Journal of Financial Risk Management, June, (2007)

K.C., Shekhar and Lekshmy Shekhar (2007), Banking theory and practice, Nineteenth edition, reprint 2007, Vikas publishing house Pvt. ltd. (India), Chapter: 16, pp. 356-374.

Ganguly.S, & Roy, S.K. (2011).Generic technology based service quality dimensions in banking impact on customer satisfaction and loyalty. International journal of bank marketing, 292(2), 168. Wirtz, Jochen; Chung Lee, Meng (2003), An Empirical Study on The Quality and Context-specific Applicability of Commonly Used Customer Satisfaction Measures, Journal of Service Research, Vol. 5, No. 4, 345-355. (2) Annexure Questionnaire Personal data Name:Sex:Age: Marital status:1. To which loan you will give more preference? House loan personal loan consumer loan educational loan vehicle loan other 2. Which range of the amount of loan you generally required? Less than 20000 20000-50000 50000-1lac More than 1lac 3. Your preferable term of loan is for? Less than 1 year 1 to 3 years More than 3 years 4. What prompted you to take loan from cooperative banks? Reasonable rate of return Less formality Easy repayment More schemes Other 5. According to you the average time taken for the processing of the loan by urban cooperative bank is Less than 7 days Between 7 to 14 days more than 14 days

6. Rank the facilities provided by Malviya urban cooperative bank Above average Average Below average 7. Rank for service provided by Malviya urban cooperative bank. Excellent Good .Average Poor 8. Would you like to give reference of this cooperative bank to your friends and relatives? Always Sometimes Never

9. Are you satisfied with the amount and period of installment? Yes No Cant say