co oparative bank training project report bharati nama

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co oparative bank training project report bharati nama

  1. 1. Project Report EvaluationIt is to certify that Ms Bharati of MBA III Sem. has undergone summer training atJhalawar Central Cooperative Bank her title for the project was “A Study of BankingAnd Bank as an Investment Destination”I/ We have evaluated the project report and her Project work is satisfactory.Signature of External examiner Signature of Internal examinerDate: Page 1
  2. 2. PREFACE Management of Modern business requires an opportunity of multidisciplinaryconcept and in depth knowledge of specific analytical tools, geared to the solution thereal life problems. No doubt every real situation is unique but a set of theoretical toolsof knowledge, itself based on empirical foundation can help in developing themechanism for handling such situation. So the MBA curriculum has been desired toprovide to the future manager sample practical exposures to the business world. Summer training is essential for the fulfilment of MBA curriculum. It provides anopportunity to the student to understand the industry with special emphasis on thedevelopment of skills in analysing interpreting practical problems through application ofmanagement. The essential aim of management should be to assist management in decisionmaking and improving the efficiency of the organisation. Page 2
  3. 3. Acknowledgement I express my sincere thanks to my project guide, Mr. Virendra Kumar SaksenaSenior manager of Planning and development of Jhalawar Central Co-operative Bank,for guiding me right from the inception till the successful completion of the project. Isincerely acknowledge him for extending their valuable guidance, support for literature,critical reviews of project and the report and above all the moral support he hadprovided to me with all stages of this project.I would also like to thank the supporting staff of Jhalawar central Co-operative Bank fortheir help and cooperation throughout our project. (Bharati nama) Page 3
  4. 4. TABLE OF CONTENTS CHAPTER 1 - Co-operative bank’s Profile 5 CHAPTER 2 - Project Profile 32 CHAPTER 3- Banking Activity 35 CHAPTER 4- Comparative Data Analysis of Banking 40 Products CHAPTER 5- Research Methodology & Consumer Data 45 Analysis CHAPTER 6- Interpretation of Analysis 55 CHAPTER 7- Recommendation & suggestion 56 CHAPTER 8 - Limitations of Bank 57 CHAPTER 9- Conclusion 58 Appendix 60 Bibliography 61 CHAPTER -1 Page 4
  5. 5. Co-operative Bank Profile  Introduction to co-operative Bank  Introduction to Reserve Bank of India  Profile of Rajasthan co-operative Bank  Co-operative Bank’s services1) INTRODUCTION OF CO-OPERATIVE BANK Page 5
  6. 6. The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The co- operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in 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. Co-operative bank regulated by Reserve Bank of India, NABARD & Apex bank. 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, home finance, consumer finance, personal finance, etc. Though registered under the Co-operative Societies Act of the Respective States the banking related activities of the co-operative banks are also regulated by the Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.2. Introduction of Reserve Bank of India Page 6
  7. 7. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.Main FunctionsMonetary Authority:  Formulates implements and monitors the monetary policy.  Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.Regulator and supervisor of the financial system:  Prescribes broad parameters of banking operations within which the countrys banking and financial system functions.  Objective: maintain public confidence in the system, protect depositors interest and provide cost-effective banking services to the public.Manager of Foreign Exchange  Manages the Foreign Exchange Management Act, 1999.  Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.Issuer of currency:  Issues and exchanges or destroys currency and coins not fit for circulation.  Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.Developmental role Page 7
  8. 8.  Performs a wide range of promotional functions to support national objectives. Related Functions  Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.  Banker to banks: maintains banking accounts of all scheduled banks.3. Profile of Rajasthan State Co-operative Bank Establishment of Rajasthan State Co-operative Bank The Rajasthan State Cooperative Bank Ltd.(RSCB) was established & registered under Rajasthan Cooperative Societies Act on 14th October, 1953. It is an Apex institution of the District Central Cooperative Banks (DCCBs) functioning in the state. The governance of village level Primary Agriculture Cooperative Societies, District Central Cooperative Banks & RSCB is ensured by elected board through a democratic election system under The Rajasthan Cooperative Societies Act. The Jhalawar central co-operative bank was registered on 22 March 1957 (Registration No. 319/O) and started its banking business from 23 March 1957. RSCB has successfully completed more than five decades of services to the state of Rajasthan in general and to the rural and farming community in particular. The bank has shifted its new Head-Office premises at Tonk Road Jaipur. The bank was established to provide short term agriculture loan for agricultural, rural development, non-agricultural loans, employment oriented schemes and short term loans. The bank has an image at national level and it has been honored several times. MISSION STATEMENT Page 8
  9. 9. Co-operative Bank Corporate Mission Is to Become A Strong AndCompetitive Cooperative Banking Network Which Offers Innovative FinancialProduct Along with Varied Range Of Services To Serve Rural Masses WithRejuvenated Short-Term Cooperative Credit Structure To Serve The People OfRajasthan.NETWORK In order to achieve the objectives of the Cooperatives, an extensive net-work is available to cater the needs of rural masses at their door-step with athree tier short-term cooperative credit delivery system.  At the Apex level, Rajasthan State Cooperative Bank (RSCB) with its 5 Regional and 8 local (Jaipur) Branches in the State.  At the District level 29 DCCBs covering 33 Districts of the State having 400 Branches.  At the grass-root level 5255 PACS/LAMPS which covers 100% of the geographical area of the state, i.e., 42955 villages.  Out of total 53.64 lacks cultivators in the state, about 42.40 lacks are the members of PACS/LAMPS, of which 21.13 lacks are borrowing members of the societies for the year 2008-09.  Creating innovative financial products for the poorest of the poor  Personal accidental insurance scheme  Crop insurance scheme  KISAN Credit card  Commercial loan scheme  NREGA 4. Co-operative Bank’s services Page 9
  10. 10. PRIMARY AGRI. COOPERATIVE CREDIT SOCIETIES (PACS) PACS are the backbone of Short-term Cooperative Credit Structure. Out of 5255 PACS/LAMPS in the state, 5088 PACS advanced loan to their members during 2007-2008 and 4783 PACS had Outstanding loans exceeding Rs.10.00 lacks as on 31.3.2008. The Working capital of PACS as on 31.3.2008 stood at Rs.4181.33 crores and 2673 PACS working as Mini Bank were collecting deposits from their members. Total deposits of these Mini Banks stood at Rs. 505.35 crores as on 31.3.2009. 3739 PACS were in profit as on 31.3.2008 and it is expected that more than 4828 PACS would have booked profit as on 31.3.2010 which is indicative of their sustainable viabilityDIVERSIFICATION OF LOAN & DIPOSITS PORTFOLIO In last few years concerted efforts have been made to diversify loanportfolio so as to provide an opportunity to DCCBs to cross subsidize their losses intraditional crop loan business. Consequent to above deliberated efforts, DCCBshave been able to develop their investment portfolio over a period of time. In thisendeavor NABARD has introduced lots of new schemes vise; water harvestingstructure, organic farming, agriculture-clinic / agribusiness centers, aromatic andmedicinal plantation, onion storage structure, horticulture, self-help groups, housebuilding, swarojgar credit card etc. for which DCCBs can avail refinance fromNABARD and can further diversify their farm and non-farm investment portfolio.Apex Bank on its part has been pursuing DCCBs to finance for innovative activities,the sole purpose of which is to diversify the loan portfolio of these banks and tofacilitate economic development through creation of assets in the rural areas of thestate. 1. TYPES OF DEPOSIT Page 10
  11. 11. 2. TYPES OF COMMERCIAL LOAN 1. PES OF DEPOSIT  Saving Account  Current Account  Fixed Account  Recurring Deposit Account 2. TYPES OF COMMERCIAL LOAN  Personal Loans.  Gyan Sagar Educational Loans.  Home Loan  Vehicle Loans.  Mortgage Loan  Industrial Loan  Loan Against Security  Hotel/Motel/Restaurant Loan Scheme  Micro Finance  Sahakar Tex Bachat Yojana  Sahakar Sugam Credit Cash Scheme  Kisan Credit card Scheme  Krishak Mitra Yojana  Personal Accident Insurance SchemeTypes of Deposits Page 11
  12. 12. Saving Account General Information a) Single type of saving a/c b) Low opening charge c) Various Banking facilities like ATM, FD Sweep, Accidental coverage are not available d) Simplest Deposit available to depositor. e) Easy to Operate. Terms And Condition are simple to understand to facilitate laymans understanding. f) Any individual or society to save from their earnings to plan for your future financial requirements can open our Saving Account g) Your deposit is insured by DICGC. h) Option for money withdrawal by withdrawal forms or by cheque. i) Your savings remain liquid, safe and also earn moderate interest @ of 3.5% p.a., compounded half yearly. j) You can give various types of standing instructions like transferring to fixed deposit accounts at regular intervals. k) An average quarterly balance of Rs. 5,000 only. l) Interest is payable half-yearly. m) Minimum balance Rs.1000 for Saving Account with Cheque book and Rs.500 for saving account without cheque book facility. n) Minor not below 14 years of age can also open an independent savings account without Cheque book facility.Eligibility a) Resident Indian, Self Help Group or a Co-operative Society. Page 12
  13. 13. Facility a) You can give various types of standing instructions like transferring of fund to fixed deposit accounts at regular intervals, payment of locker rent with our banks branches and other utility bills. b) Nomination facility is available. c) Quarterly Statement of Account at your doorstep. d) Free signature verification as per banks norm. e) Can open single or jointly with any other person. f) ECS debit/credit. Page 13
  14. 14. Current Account General Information a) Low opening charge-3000 b) Only local cheque book are given c) Stop payment charges & incidental charges applicable d) Current Deposits Account can be opened by sole-proprietary / partnership firm, private and public limited companies, institutions, trusts, individuals, societies etc. e) Unlimited number of payments and receipts. f) Overdraft facility. g) Low minimum balance of Rs. 3000 only.Facility a) You can give various types of standing instructions like transferring of fund to fixed deposit accounts at regular intervals, payment of locker rent with our banks branches and other utility bills. b) Nomination facility is available. c) Free signature verification as per banks norm. Page 14
  15. 15. d) Free Balance Certificate once in a month. e) Free monthly statement of account as per banks norms. f) ECS debit/credit.Eligibility Any sole-proprietary / partnership firm, private and public limited companies,institutions, trusts, individuals, NGO, societies can open current Account.Fixed AccountGeneral Information a) An investment of your surplus funds or to create a buffer fund for your future requirements like childrens education/marriage, to buy a car or for a dream holiday. You will find a product that suits your requirement in our entire branch. b) Open a savings Deposits account and place funds in FLEXI Deposit scheme, wherein term is not fixed and provides liquidity as well as benefits of higher returns. c) Deposit tenure minimum 15 days and maximum 60 months. d) Interest payable depending on tenure of deposit on monthly/quarterly basis or on maturity.Interest Rate Page 15
  16. 16. a) On pre-mature withdrawal of deposited amount interest will be calculated at 1% below the rate applicable for completed period of deposit.Service Charges a) Issuance of Duplicate FDR Rs.25Eligibility a) Resident Indian, Companies, or a Co-operative Society. Societies, Trust, Firms, SHGs.Facility a) You can give standing instructions like transferring of interest earned to an account at regular intervals. b) The minimum balance of deposit is Rs.1000. c) Loans against deposits available up-to 90% of deposits available. d) Nomination Facility - Available. Serial Fixed Deposit Below Rs.15 Rs.15 Lakh & no. Period Lakh (%p.a.) above to Below Rs.1.00 Crores (%p.a.) 1 7 to 14 Days - 1.5% 2 15 to 29 Days 3.5% 3.00% 3 30 to 45 Days 3.5% 3.00% 4 46 to 90 Days 4.25% 4.25% 5 91 to 180 Days 5.5% 5.5% Page 16
  17. 17. 6 181 days to 1 year 6% 6% 7 Over 1 year to 2 6.75% 6.5% years 8 Over 2 year to 3 7% 7% years 9 Over 3 year to 5 7.25% 7.25% years 10 Over 5 year to 8 7.5% 7.5% yearsb) In case of Senior Citizen i.e. person of 60 years & above and for HUF headed by a Senior Citizen, an additional interest @0.50% p.a. on FDRs above one year and for a minimum amount of Rs. 10,000/- shall be applicable on regular deposits as well as on deposits under Sahakar tax Bachat Yojana. Page 17
  18. 18. c) In case of pre matured withdrawal interest payable on such withdrawal of deposits will be the contract rate or the rate applicable for which the deposit remain with the bank, whichever is lower, less 1% penalty.Recurring Deposit Account General Information a) Encourages savings habits to save for future necessity like, to create a fund for your childrens education or marriage or to buy a car or for a dream holiday. b) Recurring deposit is a scheme where depositor commits to deposit a fixed amount for a fixed period of time (for instance Rs 500 every month for 12 months)and gets a lump- sum amount at the end of defined period. The terms i.e., fixed amount, interval and fixed the period that is decided at the time of opening the deposit cannot be modified / altered. c) High interest rates of interest. d) Non-applicability of Tax Deduction at Source (TDS). e) Minimum amount required to open RD account is Rs 100/-, subsequent deposits in multiples of Rs. 100/-. f) Deposit tenure minimum 12 months and maximum 60 months. Interest Rate a) Interest will be compounded quarterly and paid on maturity. b) On pre-mature withdrawal of deposited amount interest will be calculated at 1% below the rate applicable for fixed period of deposit. c) Interest as per bank circulars at time of opening of Recurring deposit account. Page 18
  19. 19. COMMERCIAL LOAN SCHEMES Ever reducing margin on agricultural lending made diversification need of the time.Consequent to this concept several loan schemes were launched from time to timekeeping in view the requirement of general public of the state. Most of the schemeshave been adopted by DCCBs, some of them are as under: 1. Gyan Sagar Educational LoanProducts - RSCB Educational Loan a) Education loan is granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. b) Tuition fees payable to college/school. c) Hostel Expenses. d) Examination/Library/Laboratory fees. e) Purchase of Books/Equipment/Instruments/Uniforms. f) Purchase of computers considered necessary for completion of course. g) Takeover of Education loan of other banks. h) Maximum for two children.Quantum of Loan a) For studies in India, maximum Rs.6 lacs subject to equivalent amount collateral security by way of landed property, NSC, KVP and LIC police. b) Studies abroad, maximum Rs.6 lacs subject to equivalent amount collateral security by way of landed property, NSC, KVP, and LIC policy. Page 19
  20. 20. Disbursement a) First Year : On the basis of demand letter from the Institute/College/University b) Second and Subsequent Years: On the basis of demand letter from the Institute/ College/University + proof of passing last qualifying examination. c) For other expense: purchase bills/Hostel ReceiptMargin Money a) 10% of the loan advanced. b) If any amount has paid by the student from his/her sources before sanction of loan the same will be considered for margin money.Rate of Interest a) For loans up to Rs.2 lacs-12% p. a Fixed. b) For loans above Rs.2 lacs-12.5% p.a. Fixed. c) Interest will be lived on monthly basis.Repayment Period a) Minimum 36 Months and Maximum 60 Months through advance EMI Cheques.Documents required along with duly completed Application Form. a) Borrower related document b) Duly filled Education Loan Application Form. c) Certificate/Mark sheets of last qualifying examination. Page 20
  21. 21. d) Proof of admission scholarship, studentship etc. e) Schedule of expenses for the specified course. f) Photographs-2. g) Borrowers Bank account statement for the last six months. h) Copy of ITR of last 3 years (for Non-Salaried). i) Income proof-Last three month’s Salary Slip/Copy of Form 16 in case salaried persons. j) Brief statement of assets and liabilities, of the Co-borrower. k) KYC documents of borrower(s) as well as Guarantor(s)-PAN card, photo Debit Card, Arms License, Ration Card of the Applicant, Freedom Fighter Pass, Employer Identity Card, etc. with the condition that it must contain Name, Photograph and Signature of holder. l) Advance EMI Cheque(s),Age proof. Residence Address Proof.Document related to collateral Property a) Copy of title documents viz. Sale Agreement, Registry, Allotment Letter/Lease deed b) Non-encumbrance certificate. c) Valuation of the property.Loan DocumentationLoan Agreement on stamp paper as per banks norms. a) Guarantee deed on stamp paper as per banks norms. Page 21
  22. 22. b) Demand & time promissory notes. c) Letter of continuity., Issuance Certificate d) Letter of undertaking in the prescribed format. e) Fixed Deposit receipt as per bank’s norms.2. Home Loan Products - RSCB Home Loan a) For purchase of built house/flat. b) For Construction of house on land already purchased. c) For Purchase of Land and construction of house their own. d) For Purchase of Land/House through auction by government body such as Development Authorities, Housing Board and Municipal Bodies. e) For Purchase House in self-financing schemes/Outright Purchase Schemes. f) For takeover from other banks outstanding home loan Page 22
  23. 23. Quantum of Loan a) With RSCB Home loan, you can get a home loan suited to your needs. The loan amount depends on your repayment capability and is restricted to a maximum of 75% of the cost of the property or the cost of construction as applicable. In case of takeover maximum amount is 100% outstanding balance. Repayment capacity takes into consideration parameters such as income, age, number of dependents, spouses/Son’s/Daughter in-law’s income, assets, liabilities, stability, continuity of occupation and savings history etc. Rate of Interest a) Fixed rate of Interest. b) Interest levied on monthly rest on reducing balance method and added to principal outstanding. c) Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50% for loan amount more than Rs.2,00,000/- d) Pre-closure charges @1% of the outstanding loan balance. Repayment Period a) Maximum 15 years subject to restriction of age of borrower/date of retirement3. Personal Loan Products - RSCB Personal loan a) Personal loan 1 lack or 8 times of monthly salary For casual financial obligations. b) For emergency financial requirements. Page 23
  24. 24. c) Faster Processing d) Minimum Documentation required e) Attractive Interest Rates Quantum of Loan a) With RSCB Home loan, you can get a loan up to Rs.1, 00,000/- without collateral security and Rs.2, 00,000/- with collateral security. Loan amount is eight times of monthly income in case of salaried persons. In case of non-salaried persons loan amount is sixty six percent of annual income. Rate of Interest a) Interest rate @13.00% p.a. on monthly rest. Repayment Period a) Five years.4. Mortgage Loan Products - RSCB Mortgage loan a) Mortgage Loan provides the owner of residential or commercial property to leverage on the value of the property. Page 24
  25. 25. b) Mortgage Loan is an easy way to unlock the hidden value of your property. This multi-purpose loan, make available funds at your disposal to use as you wish to utilize. c) Mortgage Loan is provided for many personal requirements of the customer viz. emergent requirements for Expansion of business, house hold activities, children’s tuition & higher Education fees, religious ceremony, renovation of home etc.Quantum of Loan a) With RSCB Mortgage loan, you can get a loan suited to your needs. The loan amount depends on your repayment capability and is restricted to a maximum of 50% of the cost of the property. Repayment capacity takes into consideration parameters such as income, age, number of dependents, spouses/Sons/Daughter in-laws income, assets, liabilities, stability, continuity of occupation and savings history etc.Rate of Interest a) Fixed rate of Interest. b) Interest levied on monthly rest on reducing balance method and added to principal outstanding. c) Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50% for loan amount more than Rs.2,00,000/- d) Pre-closure charges @1% of the outstanding loan balance.Repayment Period a) Maximum 10 years subject to restriction of age of borrower/date of retirement Page 25
  26. 26. 5. Industrial Loan Products - RSCB Industrial Loan a) For establishment of new industrial units in notifies areas. b) For procurement of Plant and Machinery for existing units due to obsolescence of old plant and machinery due technological advancements. c) For purchase old plant and machinery for existing industry. Quantum of Loan Based on project requirements for following components a) Land and building. b) Plant and machinery. c) Preliminary expenses. d) Working Capital. e) Cost of Development. f) Disbursement g) As per project appraisal approved by bank. Rate of Interest a) Negotiable subject to a minimum of 13% p.a. Fixed b) Interest will be lived on monthly basis. Repayment Period Page 26
  27. 27. a) Maximum 5 years plus moratorium period6. Loan Against Security Product - RSCB loan Against Security a) The owner doesn’t have to sell his securities like NSC/KVP. b) What all he has to do is pledge his owned securities in favor of bank. c) A current account will be opened and overdraft limit will be sanctioned. d) Interest will be charged only on the amount withdrawn and for the time span utilized. Quantum of Loan a) With RSCB Loan against Security, you can get a loan up to 70% of value determined on the basis of the securities pledged. Rate of Interest a) Interest rate @13.00% p.a. on quarterly rest Repayment Period a) Maximum period up to the maturity date of the security.7. Vehicles Loan Products - RSCB Vehicle Loan Page 27
  28. 28. a) Scheme for financing of Commercial vehicles (Bus/Truck). b) Transport Loan Scheme for Commercial vehicles (Taxi/Auto Rickshaw). c) Vehicle Loan Scheme Professional and Employees. d) School College Bus.Quantum of Loan For New Vehicles a) 75% of Vehicle cost for Commercial vehicles (Bus/Truck). Maximum 10 Lacs or twenty months earnings, whichever is less. b) 80% of Vehicle cost for Transport Loan Scheme for Commercial vehicles (Taxi/Auto Rickshaw) Maximum 5 Lacs. c) 85% of Vehicle cost for Professional and Employees. Maximum 5 Lacs or twenty month’s income whichever is less, for salaried persons. In case of professional 1.5 times of their two year’s annual average income. For Old Vehicles a) 50% of value of Vehicle assessed by authorized value.Disbursement Page 28
  29. 29. a) 1 or 2 installments as applicable. Margin Money For New Vehicles a) 25% of Vehicle cost for Commercial vehicles (Bus/Truck). b) 25% of Vehicle cost for Commercial vehicles (Bus/Truck). c) 15% of Vehicle cost for Professional and Employees. For Old Vehicles a) 50% of value of Vehicle assessed by authorized value. Rate of Interest a) For loans up to Rs.2 lacs - 12% p.a. Fixed. b) For loans above Rs.2 lacs - 12.50% p.a. Fixed c) Interest will be lived on monthly basis. Repayment Period a) Minimum 36 Months and Maximum 84 Months through advance EMI cheques.8. Hotel/Motel/Restaurant Loan Scheme a) To cater to the increasing need of hotels in the state due to increase in the number of tourists coming to the state. Page 29
  30. 30. b) To promote hotel industry in Rajasthan at the places of where tourists are more interested.Products - Hotel/Motel/Restaurant Loan Scheme a) To construct new Hotel/Motel/Restaurant. b) To make additions/alterations in the existing Hotel/Motel/Restaurant. c) To provide essential amenities in the existing Hotel/Motel/Restaurant.Quantum of Loan a) Up to 75% of cost of project subject to a maximum of Rs.10 lacs.Disbursement a) Operative period - Three Years.Rate of Interest a) 12% p.a. Fixed. b) Interest will be lived on monthly basis.Repayment Period a) Maximum 6 Months.Eligibility a) Any individual having experience in this field. b) Any individual having license from RTDC. c) Any individual having license to run the guest house. Page 30
  31. 31. 9. Clinic/Diagnostic/Indoor Hospital Loan Scheme  To promote health services in the state.  To create employment opportunities.  To promote specialist health care homes. Products - Clinic/Diagnostic/Indoor Hospital Loan Scheme a) To construct building. b) To purchase medical instruments such as X-Ray Machine, Sonography Machine, ECG equipment’s and other machine used in laboratories/diagnostic centers. c) To purchase beds, side racks, and furniture’s, mattresses etc. To purchase Ambulance etc. Quantum of Loan a) Up to 75% of cost of project subject to a maximum of Rs.10 lacs. Disbursement a) Within one year of sanction. b) Can be extended by six months. Page 31
  32. 32. c) In stages, depending upon construction progress. d) For equipment’s/ machines/ furniture’s etc. direct to the supplier including margin money in one installment.Rate of Interest a) 13% levied on monthly basis.Repayment Period a) 80 months for clinics/diagnostic centers. b) 120 months for indoor hospitals. c) Above period includes moratorium period also.Security a) Collateral security to the extent of twice the loan amount under equities mortgage. b) All assets created out of loan shall be hypothecated to the bank. c) Personal guarantee of two persons having financial worth.Processing Charges a) Nonrefundable fee Rs.1000/- to be deposited at the time of application. b) Balance to be deposited after sanction depending on loan amount. Page 32
  33. 33. Eligibility a) Individuals holding MBBS/BDS degree and registered in the respective state council. b) Individuals holding degree/diploma in Para medical radiography, Radiology, pathology etc. c) Group of individuals, registered companies etc. having experience or Necessary permission and license10.Micro Finance (SHG) Self Help Group Program The SHG program, conceptualized and launched by NABARD in 1992,attempts to link the poor in large numbers to the formal banking sector in asustainable and cost effective manner. The program rekindled the basic human traitof self-worth of every member in a group. By handling savings and internal lending,the groups mature to acquire credit worthiness for themselves and earn confidenceof banks for loans by providing trust as collateral. This has emerged as thepredominant micro finance model in the country and is now a proven method offinancial inclusion, providing unbanked rural clientele access to formal financialservices from the existing banking system. This SHG- Bank linkage model hasemerged as the largest and fastest micro finance outreach program in a costeffective manner in the world. The social intermediation in forming and nurturing theself-help groups is handled by a large number of non-governmental organizations,voluntary agencies, community based organizations like farmers’ club, local bodies, field level functionaries of government agencies, socially committed individualsand bodies and banks themselves. Commercial banks followed by RRBs andcooperative banks also play an important role in credit linking the SHGs. NABARDprovides grant assistance to various partner agencies in promoting and nurturing ofSHGs, and extends refinance support to banks against their loans to SHGs. Page 33
  34. 34. NABARD also takes lead in providing financial and other support for capacity building, sensitizing and training the personnel of all the partner agencies including banks. With the success of the SHG-Bank linkage program, linkage of Micro Finance Institutions (MFIs) with the banking sector was promoted by NABARD to enable on lending by MFIs to SHGs and individuals. 11.Sahakar Tex Bachat YojanaGeneral Information a) Deposit tenure minimum 5 years in any of RSCB Branches. b) Minimum amount of Deposit- Rs.100 and in multiples of 100 thereafter subject to a maximum of Rs.1, 00,000/- in a financial year. c) Qualify as an investment for the purpose of deduction under sec.80 (as of I.T. Act 1961). d) Premature withdrawal of the deposits made under the scheme shall not be allowed before completion of 5 years. In the event of death of holder of a deposit in respect of which a nomination is in force, the nominee or nominees shall be entitles at any time before or after the maturity of the deposit to encase the deposit. e) The deposit shall not be pledged to secure loan or as security to any other asset. f) The fixed deposit receipt issued under the scheme shall be governed by the provisions of The Bank Term Deposit scheme 2006 Notification No.SO 1220(F) Dated 28/07/2006.Interest Rate Page 34
  35. 35. a) 8.5% pa. Interest payable monthly/Quarterly or in lump sum at the time of maturity. b) Interest accrued or paid during a financial year shall be liable to tax under the Act and provision of TDS shall apply.Eligibility a) Can be made in single name of an individual or in the single name of Karta of a HUF. b) Can be made in joint names also but benefit of deduction shall be available only to the first holder. c) Joint fixed deposits can be made in the name of two adults, an adult and a minor and payable to either of the holders or to the Survivor.Document Required a) Applicants must satisfy the following documentation requirements: b) Identity proof (PAN, EC Card, Driving License, Passport, and Ration Card). c) Passport Size Photograph - 2. d) Proof of residence address. e) Introduction as bank norms. f) KYC Documents.Facility Page 35
  36. 36. a) Nomination can be made subject to the restriction that no nomination can be made in case of deposit receipt issued in the name of or held on behalf of a minor. b) Income Tax benefit under section 80 c of IT Act 1961.12.Sahakar Sugam Credit Cash Scheme Products - Sahakar Sugam Credit Card/Cash Credit Scheme a) To meet credit requirements of very small entrepreneurs, Retailers, Artisans and Ancestral Craftsman to enhance their business and productivity. b) To meet credit requirements of Small Shopkeepers such as Pan Shop, Cobblers, Road Side Vendors and hawkers. c) To meet credit requirements of house-hold productive activities of ladies. Quantum of Loan a) Up to Rs.25, 000/- (No collateral security required). b) Up to Rs.50, 000/- against equivalent collateral security. Disbursement a) Operative period - Three Years Rate of Interest a) 12% p.a. Fixed. Page 36
  37. 37. b) Interest will be lived on monthly basis.Repayment Period a) Maximum 6 Months.13.Kisan Credit card Scheme – Major features a) Eligible farmers to be provided with a KCC and a pass-book or a card-cum- pass book. Card to be valid for 3 years subject to annual review. Personal Accident Insurance up to Rs.50, 000 to the card holder under Personal Accident Insurance Scheme (PAIS). b) Revolving cash credit facility (RCCF) involving any number of drawls and repayments within the limit. Limit to be fixed on the basis of operational land holding, cropping pattern and scales of finance. Each drawls to be repaid within 12 months. c) Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit. In due course, allied activities and non-farm credit needs may also be covered. Sub-limits may be fixed at the d) discretion of the bank’s incentive for good performance, credit limits could be enhanced to take care of increase in costs, change in cropping pattern, etc. e) Conversion/ re-schedulement of loans also permissible in case of damage to crops due to natural calamities f) .Operations may be through issuing branch or at the discretion of bank, through other designated branches. Security, margin, rate of interest as per RBI norms. Interest to be charged on the credit balance in the account. Withdrawals through slips/ cheques accompanied by card and passbook Page 37
  38. 38. 14.Swarozgar Credit Card (SCC) Scheme The Swarozgar Credit Card scheme envisages adequate and timely credit, both Working and block capital, to small artisans, handloom weavers, service providers, Fishermen, self-employed persons, rickshaw owners, other micro entrepreneurs in Rural and urban areas, in a flexible, hassle free and cost effective manner from the Banking system. This facility also includes a reasonable component for meeting Consumption needs. 9.84 lakh cards have been issued cumulatively by banks involving a credit limit of Rs.4, 007.33 crore, as at the end of March 2009.15. Rashtriya Krishi Bima Yojana Crop loans disbursed under KCC Scheme for notified crops are covered under Rashtriya Krishi Bima Yojana (RKBY). All farmers (both loans and non- loaners irrespective of their size of holdings) including sharecroppers, tenant farmers growing insurable crops are covered. 50 per cent subsidy in premium allowed to Small and Marginal Farmers, to be shared equally by the Government of India and State Government/ Union Territory.16.Personal Accident Insurance Scheme A Personal Accident Insurance Scheme (PAIS) is attached with KCC, which covers risk of KCC holders against accidental death or permanent disability up to a maximum amount of Rs.50, 000 and Rs.25, 000, respectively, resulting from accidents caused by external, violent and visible means. The insurance Page 38
  39. 39. premium payable on personal accident insurance coverage to KCC holders will be Rs.15 for a one year policy and Rs.45 for three years. The premium payable to the insurance company is shared between the KCC issuing bank and the KCC holder in the ratio of 2:1.17. Cash Credit (Hypothecation) Limits to traders The bank had not taken up the activity in a big way though there was enough potential in its area of operation. There were only a few cased of CC limits to individuals.i) Stock was not verified by the bank official on periodical basis.ii) Stock statements were not obtained periodically to ensure margin.iii) Neither Drawing Power Register maintained nor drawing power was worked out while allowing operations in CC Limitiv) Fresh documents and DPN were not obtained at the time of renewal of CC limits.v) Due to lack of pre sanction appraisal, monitoring , supervision and post disbursement follow up, certain CCL accounts had become NPA and bank / branch had not initiated action to recover the overdue. Page 39
  40. 40. GOALS FOR FUTURE (2009-2010) Disbursement of Rs. 1500.00 crores loan under Short Term Agriculture loan. Disbursement of Rs. 90.00 crores loan under Investment Credit (Agriculture & Non-Agriculture). Attain the level of Rs. 1650.00 crores in Deposits of the Bank. Attain the level of Rs. 2500.00 crores in total loan outstanding of the bank. Attain the level of Rs. 3700.00 crores in working capital of the bank. Complete the computerization of Apex Bank and all District Central Cooperative banks. To open two new branches’ in Jaipur city. To promote formation and loan disbursement of self Help Groups. Page 40
  41. 41. CHAPTER-2 Project profile Objectives Functioning Area Page 41
  42. 42. PROJECT PROFILE OBJECTIVE • To study the Indian Banking System • To study in detail the functioning of Co-Operative Bank • To study in detail the functioning of private banks of India • The analysis of the investment products and services provided by Co- Operative Bank and ways to improve them to improve the profitability of theBank Page 42
  43. 43. FUNCTIONING AREA FOR THE PROJECT By formulating the idea of the project I had planned a strategy • I had taken the full detailed study of about the investment products offered by the bank. • I studied the previous sales of the investment products. • I observed the criteria of the people who visited the bank and their views on investments with bank. • I talked with customers during their transaction period with the bank officials. Page 43
  44. 44. CHAPTER-3 BANKING ACTIVITY• CMS (CASH MANAGEMENT SERVICES)• RTGS (REAL TIME GROSS SETTLMENT)• CLEARING• CASH• CC (CASH CREDIT)LIMIT• FRONT DESK-DD/PO/RTGS/TRANSFER/CUSTOMER QUERY• AGRICULTURE LOANS/COMMODITY FINANCE Page 44
  45. 45. CMS (Cash Management Services) In today competitive market place, effectively managing Cash flow can make difference between success and failure. Co-operative bank offers a wide range of collection and payment services to meet your complex case management needs. Payment received from your buyers made to your suppliers are efficiently processed to optimise your case flow Position and to ensure the effectives management to your suppliers of your business ‘operating funds. The flow of receivables and payables can also be seen through our web solution above all our quick adaptation of the latest technology differentiates us from the other competing banks. Co -operative bank present payment solutions. Save on effort, time and worry. Plus our electronic clearing services help serve you even better. With our collections services you can collect regular and recurring payments from your customers more efficiency .our centralised CMS solutions enables quick access to your company funds with matching MIS/reports through emails web solutions. These deposit are directly credited to a designated account regardless of where they are made. CMS ADVANTAGES • Online web CMS collections • Online web CMS payments • Extensive network • Lower interest costs &improved liquidity • Centralised services desk • Advantages of web CMS • Comprehensive MIS • Mobile alert services Page 45
  46. 46. RTGS (REAL TIME GROSS SETTLEMENT) “RTGS are a funds transfer mechanism where transfer Of money take place fromone bank to another on real on gross basis settlement in real time means paymenttransient is not subjected to any waiting period the transfer are settled as soon as theyare processed gross settlement means the transfer is settled on one to the basis withoutbunching with any other transfer payment are final and irrevocable. CASH Cash in bank means deposition of cash on the cash counter and payment made tothe customer on the cash counter. Every bank branch has a cash retention limit whichmean the amount if cash is can keep in the branch. High value cash deposit of 10 lakh andabove are two monitors by the bank and payment. 50 thousand above deposit in an ac ina day require pan no. or form 60. A) Cash In hand which includes notes and coins. B) Current a/c with schedules and non-schedules bank (demand deposit ) earning no – interest C) Deposit account with bank (time deposit) earning interest. Page 46
  47. 47. “Cash is liquid assets or liquid resources owned by a firm which enable it to purchase goods or services” CLEARNINGClearing: - Is a method of funds settlement between banks.Clearing Inward: - It means cheque of a bank which is presented by other banks to it forpayment purchase.Clearing outward: - It means cheque which our bank presents to other banks for paymentto our customers. CASH CREDIT LIMIT Cash credit is a facility given by the bank there highly reputed customer like as overdraft and to other customer on their mortgage of any assets. in this facility customer canwithdraw from his account up to maximum of his limit and deposit money when he haveinterest on this facility will be charged on daily debit balance method. AGRICULTURE LONS Which loan given to existing or prospected formers for there need of finance forpurchase of agriculture, land, equipment’s, and maintaining and operating of agricultureactivities. Page 47
  48. 48. CHAPTER-4 COMPARATIVE DATA ANALYSIS OF BANKING PRODUCTS COMPARISON OF CURRENT ACCOUNT COMPARISION OF SAVING ACCOUNT COMPARISION OF BANKING FACILITIES COMPARISON OF LOAN Page 48
  49. 49. COMPARATIVE DATA ANALYSIS OF BANKING PRODUCTS Data collection: During my data collection, data was collected:- • From Banks • From Banks Website Four Banks were selected SBI, SBBJ, BOB, and HDFC LIST OF COMPETITORS • BOB • SBI • SBBJ • HDFC BANK • IDBI • AXIS BANK • ICICI BANK • PNB Page 49
  50. 50. COMPARISION OF SAVING ACCOUNT RSCB COMPETIVE BANK• Single type of saving a/c Low • Various type of saving a/c like opening charge Silver, Saving plus, Super saving a/c, High opening charge• Various Banking facilities like ATM, FD Sweep, Accidental coverage • Various Banking facilities like ATM, are not available FD Sweep, Accidental coverage are available COMPARISON OF CURRENT ACCOUNT RSCB COMPETIVE BANK Page 50
  51. 51. • Low opening charge-3000 • High opening charge -10000• Only local cheque book are • Local cheque book & multi-city given cheque book are given• Stop payment charges • Have stop payment charges but applicable it’s free for Net Banking COMPARISON OF LOAN RSCB COMPETIVE BANK Page 51
  52. 52. • Low limit of Loan amount for e.g. • High limit of loan amount for e.g. Personal loan 1 lack or 8 times of Personal loan monthly salary SBI Bank- 12 time of monthly income SBBJ Bank- 18 time of monthly Income HDFC Bank- Rs.15,00,000 for any purpose • Low interest Rate then any other bank generally it is 0.50 or 1 % approx. low • In some loan low processing fees like Home loan Rs.100(fixed) Mortgage Loan 0.50% of loan amount • High interest rate SBI - 13.25% HDFC Bank- 14% BOB -13.25% • In some loan high processing fees comparison RSCB bank CHAPTER-5 Page 52
  53. 53. RESEARCH METHODOLOGY Research methodology Research design Consumer Data Analysis and Interpretation Page 53
  54. 54. RESEARCH METHODOLOGY Research Methodology refers to the tools and methods used for obtaininginformation for the purpose of study Data was collected from secondary; their current brand strategies weredetermined. After a thorough analysis of the above they were evaluated andsuggestions for future are made.RESEARCH DESIGN The preliminary research involved collecting data from the secondary sourcesto understand the background and the nature of phenomenon.After this, an exploratory research was undertaken the factors of less sale ofinvestment products and give a complete account of their strength.CONSUMER FEEDBACK ANALYSIS Data collection: During my data collection, data was collected from:- Visitor Bank customer ShopkeeperSample size was 150. Page 54
  55. 55. Q.1 Do you have any bank account? a) YES b) NO Yes No TotalNo. of Respondents 110 40 150% of Respondents 73 27 100 Page 55
  56. 56. Q.2 In which bank do you maintain your bank account? a) RSCB b) SBI C) SBBJ d) ICICI RSCB SBI SBBJ ICICI TotalNo. of Respondents 50 35 45 20 150% of Respondents 33 24 30 13 100 Page 56
  57. 57. Q.3 which type of account (s) you hold?a) Saving a/c b) Current a/cc) Fixed Deposit a/c d) Regular Deposit a/c Page 57
  58. 58. Saving Current F.D. R.D. TotalNo. of Respondents 50 65 20 15 150% of Respondents 33 44 13 10 100 Page 58
  59. 59. Q.4 What all benefits and services are you getting from your bank? a) Net Banking b) Super Saver a/c c) 24-hours ATM d) Demet service (Net Banking) (Super Saver a/c) (24-hoursATM) (Demet service)TotalNo. of Respondents 45 30 51 24 150% of Respondents 30 20 34 16 100 Page 59
  60. 60. Q5. Are you satisfied with the services of your bank? a) YES b) NO Yes No TotalNo. of Respondents 105 45 150% of Respondents 70 30 100 Page 60
  61. 61. Q.6 Do you want to switch your bank to the new one? a) YES b) NO Yes No TotalNo. of Respondents 115 35 150% of Respondents 76 24 100 Page 61
  62. 62. Q.7 what more facilities/services do you expect from a bank?a) Net banking b) Super saver a/cc) 24-hours ATM d) Demat services Page 62
  63. 63. (Net banking) (Super Saver a/c) (24-hoursATM) (Demat services) TotalNo. of Respondents 45 25 65 15 150% of Respondents 30 17 43 10 100 Page 63
  64. 64. Q.8 Do you favor the implementation of the computerizationand core banking solution? a) YES b) NO Yes No TotalNo. of Respondents 145 5 150% of Respondents 96 4 100 Page 64
  65. 65. Interpretation & Analysis It was found that the banks with most ATMs have gained priorities in the minds of the customers. Different bank have different schemes for different age groups. Some banks are giving privilege to senior citizens, while others to child group etc. But RSCB have not any such schemes targeted to different age group. The study has shown that the customers want better branch network so that they can operate their account from different city also. The study has shown that since different bank are providing different facilities to different type of retail banking products so in lieu of better facilities customer have different account in different banks. The study has shown that many people don’t want to open account in Rajasthan State Cooperative bank because they think that the services like ATMs, Phone- banking, internet banking etc. not provided by these banks. The study has shown that there is a growing concern among the customers about the attitude of bank employees towards them. Due to limitation of time very few customers could be contacted. For any study to be practically meaningful, these number need to be significantly higher. The environment available for filling the questionnaire or attending the interview is not very conducive for serious interaction and some of the responses may be casual, thus affecting the final analysis. In any detail study, it is possible to add many other variables. Page 65
  66. 66.  The sample size was not large enough and may not be representative of the whole population. The scope of study was limited to only certain product categories and cannot be generalized to all the product categories. Chapter-6 RECOMMENDATIONS & SUGGESTIONS• Advertising is not appropriate, as many people are not aware of Rajasthan State Cooperative Bank. Therefore Hoarding and Boards should be displayed at various prime locations in the city.• Timely payment of salary and Promotion of employees will boost their morale.• All the complaints of Customer should be deal in proper manner because it is the customer who will give good or bad mouth about bank services.• Non maintenance & other charges which are very high as compared to other Banks should be reduced.• Existing customer should always be informed about the new product.• Regular connected with customer.• Problem faced by account manager during opening the account should be forwarded to deputy manager by branch manager. This will help to sort out all the problems.• Proper training of Bank staff to give impressive presentation.• Proper Co ordination between Marketing and Operation need to be developed. Page 66
  67. 67. • Promotion of various scheme by Rajasthan State Cooperative Bank. Chapter-7 Limitation of Study The following aspects have been identified on some of the major areas of concern for the bank : Delay in submission of statutory returns. Banks performance in implementation of schemes, formulate for reshedulment of agriculture loans accounts on account of farmers in arrears was not found to be satisfactory. Wrong classification of rescheduled accounts under IRAC norms. Defective documentation Problem of imbalance at GSS level. Lack of internal checks and control system Poor fund management Operational deficiencies and poor growth rate in loans and advances and deposits. Operational deficiencies and poor growth rate in loans and advances and deposits. Over dependence on the short term loans there by reduction in the interest margin. Page 67
  68. 68.  Non diversification of loans portfolio. Bank should increase its funding in medium terms and long terms loan. Nonuse of latest credit intervention initiatives such as Kisan club, SHPIs, REDPs, TME cell WD Cell, etc. Meager financing in SHGs. Poor HRD planning and training Lack of Supervision and initiative for strengthening the PACS on other affiliated societies. Lack of supervision and initiatives for strengthening the PACS and other affiliated societies. No use of advance technology such as computerization etc. Poor security arrangements at branch level. Page 68
  69. 69. Chapter –8 Conclusion• The bank should therefore look forward to promote investment opportunities during their visit through banners, leaflets and pamphlets, etc. and increase the awareness levels.• The company must take strong steps in promoting the investment option and generates desire and interest towards the products. A complete new market strategy needs to be formulated.• Most of the customers were inclined to invest in insurance schemes in which they showed preference for automobile insurance. Firstly, the corporation should target the existing customer base investment plan and try to increase their awareness levels. Then they should make the other customers of the bank at least aware of the various schemes so that the next stage of interest, desire and action becomes easy to execute.• It was surprising to note that some of the respondents having account in co- operative Bank had investment in nearest rival HDFC. Corporation should take stern steps to channelize the investment towards itself. The corporation should also work on the factors, which lead to investment in other banks.• Location and loyalty towards the old banks were the key factors for this particular behaviour. The corporation therefore should give a serious thought to these aspects and try to provide service, which can somehow make a dent in the loyalty and more trust towards the state owned banks.• Bank should look to open new branches with proper planning and careful selection of the location, which is convenient to the target customers especially in places where there are a lot of option in front of the consumers.• Advertisement play an important part in the brand recall of the corporation therefore, bank should look to create a campaign, which provides the consumers with the basic knowledge and general attraction towards the products offered. Page 69
  70. 70. • Co-operative Bank should look to tap the untapped market and increase their market share. It is very surprising that in spite of the high satisfaction levels of the current customer base the market share of the bank is stagnant. This shows a lack of hard-core brand loyal customers. Efforts should be made to lead the consumers to this level of loyalty so that more strong work-of-mouth should be there. Page 70
  71. 71. APPENDIX Page 71
  72. 72. BIBLIOGRAPHY Kotler, Philips, Marketing Management. C.R.Kohari,” Research methodology”. Schiffman L.G and Kanuk L.L,” Consumer Behaviour”. Tull Donald and Hawkins Dell.” Marketing Research”. Page 72
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