Effectiveness of training at surat peoples co op bank

1
A
SUMMER INTERNSHIP PROJECT
ON
“MEASURING EFFECTIVENESS OF TRAINING IN THE SURAT PEOPLE’S
CO-OPERATIVE BANK LTD”
Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide: Company Guide:
Ms. Parinaz Todiwala Mr. Mukesh Patel
Assistant Professor Chief Manager
(Surat People‘s Co-op Bank)
Submitted by
Mr. CHITRAK M SAWADIYAWALA [Batch No. 2013-15, Enrollment
No. 138050592091]
MBA SEMESTER III
S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
July, 2014

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Company Certificate
This is certified that Mr. Chitrak Sawadiyawala from S.R. LUTHRA
INSTITUTE OF MANAGEMENT, have carried out the research on the subject
titled “Measuring Effectiveness of Training in The Surat People’s Co-
operative Bank Ltd.” at The Surat People‘s Co-operative Bank under the
supervision of Mr. Mukesh Patel, from June 2014 to August, 2014. I also
certify that, the above mentioned student has carried the research work
satisfactorily.
Place: - Surat
Date: - 22th July 2014
________________
(Name & Designation)

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Students’ Declaration
I, Mr. Chitrak Sawadiyawala, hereby declare that the report for Summer
Internship Project entitled “Measuring Effectiveness Of Training in The
Surat People’s Co-Operative Bank Ltd” is a result of my own work and my
indebtedness to other work publications, references, if any, have been duly
acknowledged.
Place: Surat
Date: _____________
__________________
(Chitrak Sawadiyawala)

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Institute’s Certificate
Certified that this Summer Internship Project Report Titled “Measuring
Effectiveness Of Training In The Surat People’s Co-operative Bank Ltd.”
is the bonafide work of Mr. Chitrak Sawadiyawala (Enrollment No.
138050592091), who has carried out the research under my supervision. I
also certify further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any
other candidate.
Place: Surat
Date: ________________
___________________
(Parinaz Todiwala)
Assistant Professor
___________________
(J. M. Kapadia)
I/C Director

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PREFACE
In the era of rapid industrialization and technological innovation which has
made Gujarat emerge as industrial state with newer avenues and
opportunities.
As per university, it is must for the student of M.B.A., to prepare report on
practical study by visiting a particular industry to acquire practical as well as
theoretical knowledge pertaining to that industry in different aspects about its
internal environment.
My main focus and study was on “Measuring Effectiveness of Training in
The Surat People’s Co-Operative Bank Ltd.”
I have put up my best efforts and enumerated each possible information after
observing the activities carried over there, to make this report a satisfactory
report.
It was a great opportunity and memorable experience interacting with people
working there, collecting information regarding their job and acquiring
knowledge.
Lastly, I have tried my level best to prepare the best informative report.

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ACKNOWLEDGEMENT
“With knowledge you
Know the words,
But with experience
You know the world.”
In this, one and a half months of ―ONCE IN A LIFETIME EXPERIENCE‖ I
have learnt a world of things and would really like to thank a few people who
made a difference during this exciting project tenure.
I would like to extend special thanks to Mr. Mukesh Patel (Chief Manager),
Ms. Rajeshree Parikh(Senior Officer) & Ms. Dipti Kapadia (Officer) Surat
People‘s Co-op. Bank, Surat for their support and important guidance.
I would like to thank Gujarat technological university who give me this
opportunity to work on the Summer Internship Program as a part of
Curriculum.
I would also like to my special thanks to Dr. Jimmy Kapadia, I/C Director, who
guide me about my project report.
Furthermore, I would like to thank my Faculty Guide Ms. Parinaz Todiwala for
his excellent guidance throughout the project without whom would not have
been able to complete this project successfully and who was behind me
throughout my project tenure.
Lastly but heartily I am very appreciate that all the respondents are give me
responses and spare their valuable time to fill up my questionnaire.

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EXECUTIVE SUMMARY
As the management student of GUJARAT TECHNOLOGICAL UNIVERSITY,
AHMEDABAD, there is subject of partial training followed by project report
and also as per the requirement of the MBA study and to do develop our
personal knowledge, for that I have chosen the project report on “Measuring
Effectiveness of Training in The Surat People’s Co-operative Bank Ltd.”
The Surat People‘s Co-operative bank is the ―First Registered Urban Co-
operative Bank‖ of India and among the first 13 Co-operative Banks to get
―Scheduled Bank‖ Status.
The main objective of the study is to analyze and measure the effectiveness
of training in SPB. For this report 100 respondents are been covered from
bank‘s central office, Main branch and udhna branch employee and the
questionnaire is filled up by each employees to know the motivation level and
their performance. Through this research the bank will come to know whether
employees are satisfied or not with the training program.
In order to achieve this aim, both primary and secondary sources of data were
used. This primary data were collected through the administrating
questionnaire. Convenient sampling procedure was used to obtain 100
responses from employees and managers on the training effectiveness in
Surat People‘s Co-Operative bank. All important points such as motivation
level of employees & their communication skills are covered.
In data analysis, the simple mathematical tool such as percentage and charts
were used with the help of MSEXCEL 2007.
The Surat People‘s Bank is performing its role up to the mark and trainees
enjoy the training imparted and it meets the major objectives such as
performance of employees, their skills and knowledge and also helps to
motivate employees and helps in avoiding mistakes.

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Report
D i g i t a l s i g n e d
Author: Owner
Processing date: Mon, 4.8.2014 19:41:42 CEST
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TABLE OF CONTENTS
Sr.
No.
Particulars Page
No.
1. Introduction 1
2. Industry Profile 4
a. Global
b. National
c. State
d. PESTEL
e. Current trends
f. Major Players
g. Major Offerings
6
11
19
20
25
29
32
3. Company Profile 40
a. Company Profile
b. Organogram
c. Divisions/ Departments
d. SWOT
e. Market Position
40
50
51
52
55
34
4. Review of Literature 59
5. Research Methodology 63
a. Problem Statement
b. Research Objective
c. Research Design
i. Type of Design
ii. Sampling
iii. Data Collection
iv. Tools for Analysis
v. Limitations of the Study
63
63
63
6. Data Analysis & Interpretation 66
7. Findings 91
8. Conclusion & Recommendation 94
9. Recommendation 95
Bibliography 96

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LIST OF TABLES
SR
NO.
PARTICULAR TABLE
NO.
PAGE
NO.
1. Products comes under the category of Retail Banking 2.2 32
2. Products comes under the category of Wholesale Banking 2.3 33
3. Products comes under the category of Treasury Banking 2.4 34
4. SPCBL Profile 3.1 40
5. Board of Director & General Manager 3.2 41
6. Bank Charges on DD 3.3 45
7. Bank Charges on NEFT Services 3.4 46
8. Bank Charges on RTGS Service for Outward Transaction 3.5 47
9. Market Position 3.6 55
10. Gender Respondents 6.1 66
11. Designation of Respondents 6.2 67
12. Department of Respondents 6.3 68
13. Marital Status of Respondents 6.4 70
14. Experience of Respondents 6.5 71
15. Basis of Employed 6.6 72
16. Type of Training 6.7 73
17. Method of Training 6.8 74
18. Training Topics 6.9 76
19. Training Approaches 6.10 78
20. Training Program 6.11 79
21. Quality of Training 6.12 80
22. Helpfulness of Training 6.13 81
23. Motivation Level 6.14 82
24. Training Infrastructure 6.15 83
25. Training Time Duration 6.16 84
26. Training Complaints 6.17 86
27. Trainers Knowledge 6.18 88

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28. Trainers Preparations 6.19 90

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LIST OF FIGURES
SR
NO.
PARTICULAR FIGURE
NO.
PAGE
NO.
1. Structure of Indian Banking Industry 2.1 19
2. Organogram 3 50
3. Gender Respondents 6.1 66
4. Designation of Respondents 6.2 67
5. Department of Respondents 6.3 68
6. Marital Status of Respondents 6.4 70
7. Experience of Respondents 6.5 71
8. Basis of Employed 6.6 72
9. Type of Training 6.7 73
10. Method of Training 6.8 74
11. Training Topics 6.9 76
12. Training Approaches 6.10 78
13. Training Program 6.11 79
14. Quality of Training 6.12 80
15. Helpfulness of Training 6.13 81
16. Motivation Level 6.14 82
17. Training Infrastructure 6.15 83
18. Training Time Duration 6.16 84
19. Training Complaints 6.17 86
20. Trainers Knowledge 6.18 88
21. Trainers Preparations 6.19 90

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Introduction
Any organization that wants to succeed, and to continue to succeed, has to
maintain workforce consisting of people who are willing to learn and develop
continuously. Training and developing human capital is tremendously
important in the effective management and maintenance of a skilled
workforce. Training is one of the ways of improving organization‘s
effectiveness. In order to implement right training methods, organization
should be aware of the training methods and their effectiveness. Study
provides conceptual framework of determining which methods to use when
developing training program. The various training methods- both off-the-job
and on-the-job- are described along with their strengths and limitations. Paper
also explores the measurement methods of training evaluation which is very
crucial for the training effectiveness. This study tries to give general overview
of training methods and measurement models.
Training is a part of the human resource development, along with the other
human resources activities, such as recruitment, selection and compensation.
The role of human re-source department is to improve the organization‘s
effectiveness by providing employees with knowledge, skills and attitudes that
will improve their current or future job performance. In order to implement the
right training methods, the training specialist should be aware of the pros and
cons and effectiveness of each training method. Besides, for evaluating
training effectiveness, measurement should be done according to the models.
TRAINING
The verb ―to train‖ is derived from the old French word trainer, meaning ―to
drag‖. Hence such English definitions may be found as; to draw along; to
allure; to cause; to grow in the desired manner; to prepare for performance by
instruction, practice exercise, etc. Training can be described as ―providing the
conditions in which people can learn effectively‖. To learn is ―to gain
knowledge, skill, and ability‖

17
To understand the function of training in a company, it is needed to ask the
question of what training is state for the company. Training is an ―opportunity‖
for learning and it is accomplished by providing employees with opportunities
to learn how to perform more effectively and by preparing them for any
changes in their job. Training focuses on the acquisition of knowledge, skills
and attitudes needed to perform more effectively on one‘s current job. Role of
training may be seen as ―ensuring that the organization has the people with
the correct mix of attributes, through providing appropriate learning
opportunities and motivating people to learn, and thus enabling them to
perform to the highest levels of quality and service‖
TRAINING METHODS
Many training techniques are created almost every year by the rapid
development in technology. Deciding among methods usually depends on the
type of training intended, the trainees selected, the objectives of the training
program and the training method. Training is a situational process that is why
no single method is right for every situation. While some objectives could be
easily achieved through one method, other objectives could necessitate other
methods. Many training programs have learning objective in more than one
area. When they do, they need to combine several training methods into an
integrated whole. Training methods could be classified as cognitive and
behavioral approaches. Cognitive methods provide verbal or written
information, demonstrate relationships among concepts, or provide the rules
for how to do something. These types of methods can also be called as off
the-job training methods. On the other hand, behavioral methods allow trainee
to practice behavior in real or simulated fashion. They stimulate learning
through behavior which is best for skill development and attitude change.
These methods can be called as on-the-job training methods. Thus; either
behavioral or cognitive learning methods can effectively be used to change
attitudes, though they do so through different means. Cognitive methods are
best for knowledge development and behavioral methods for skills. The
decision about what approach to take to training depends on several factors
that include the amount of funding available for training, specificity and

18
complexity of the knowledge and skills needed, timeliness of training needed,
and the capacity and motivation of the learner.
To be effective, training method should; motivate the trainee to improve his or
her performance, clearly demonstrate desired skills, provide an opportunity for
active participation by the trainee, provide an opportunity to practice, provide
timely feedback on the trainee‘s performance, provide some means for
reinforcement while the trainee learns, be structured from simple to complex
tasks, be adaptable to specific problems, encourage positive transfer from
training to the job.

19
CHAPTER 2
BANKING INDUSTRY
PROFILE

20
Banking industry Introduction
The bulk of all money transactions today involve the transfer of bank
deposits. Depository institutions, which we normally call banks, are at the
very center of our monetary system.
Banking is the business of a bank or other financial institution. Banking
includes such activities as holding money in saving and checking accounts, as
well as issuing loans and credit. A bank is a financial intermediary.
There are several different types of banks which engage in different types of
banking. Some of these types include: central bank, advising bank,
commercial bank, credit union and investment bank.
It is not uncommon for some banks to offer many different types of services.
For example a bank may offer personal and commercial banking services to
clients.
The banking industry is highly regulated by the government. In 2008, the
banking industry suffered from a crisis caused by risky lending, particularly in
the mortgage loan sector also known as the subprime mortgage crisis.
Though this may be viewed as a setback by some, the banking industry is
continually evolving and offering innovative services to meet client‘s needs.
An example of this is the somewhat recent addition of online banking which is
growing in popularity.
Routine banking activities include paying on checks written by clients,
collecting deposits and issuing loans. Issuing loans and charging interest is
the main source of revenue in the banking industry.
There are many banking channels which clients can use to access accounts
and conduct their business. Some of these include: bank teller at a branch or
retail location, call center or telephone banking, online or mobile banking,
video banking and ATM machines. The oldest bank still operating is located in
Italy. Monte dei Paschi di Siena has been banking since 1472.

21
Definition
Bank is a financial institution which receives deposits from the public and
lends them for investment purpose i.e., deposits of money and advances of
the Main function of banks, but in the era of globalization banks indulges
themselves in many activities like Insurance, Mutual Fund Business and
Investment in Stock Exchanges. These activities of banking are considered as
Para Banking Activities.
Features of banking
1. Money Dealing
2. Acceptance of deposit
3. Grant of loan and advances
4. Payment and withdrawal of deposits
5. Transfer of funds
6. Portfolio management
7. Foreign Exchange dealing
History of Banking
The History of Banking begins with the first prototype banks of merchants in
the ancient world, which made grain loans to farmers and traders who carried
goods between cities. This began around 2000 BC in Assyria and Babylonia.
Later, in ancient Greece and during the Roman Empire, lenders based in
temples made loans and added two important innovations: they
accepted deposits and changed money. Archaeology from this period
in ancient China and India also shows evidence of money lending activity.
Banking, in the modern sense of the word, can be traced to medieval and
early Renaissance Italy, to the rich cities in the north such
as Florence, Venice and Genoa. The Bardi and Peruzzi families dominated
banking in 14th century Florence, establishing branches in many other parts
of Europe. Perhaps the most famous Italian bank was the Medici bank,
established by Giovanni Medici in 1397. The position of the Medici‘s was
eventually taken over by the Fugger sand the Welders. The oldest bank still in
existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which

22
has been operating continuously since 1472. It is followed by Berenberg
Bank of Hamburg (1590).
The development of banking spread from northern Italy through Europe and a
number of important innovations took place in Amsterdam during the Dutch
Republic in the 16th century and in London in the 17th century. During the
20th century, developments in telecommunications and computing caused
major changes to banks' operations and let banks dramatically increase in
size and geographic spread. The financial crisis of 2007–2008 caused many
bank failures, including some of the world's largest banks, and provoked much
debate about bank regulation.
A. Banking Industry at Global level
Both international banks and central banks of the world play an important role
in global banking and global money market operations.
Global banking can be characterized by the types of services international
banks provide that distinguish them from domestic or region banks
1. Facilitate the imports and exports of their clients by arranging trade
financing.
2. Serve their clients by arranging for foreign exchange necessary to conduct
cross-border transactions and make foreign investments.
 Assist their clients in hedging exchange rate risk in foreign currency
receivable and payable through forward and options contracts.
 Generally also trade foreign exchange products for their own account.
The global banking industry shows its prominence in line with the growth of
world‘s economy. It is not only ―taking deposits from investors at lower interest
rate and loaning out to borrowers at a higher rate‖ that simple, the modern
banking system also have become global industrial powerhouses with a lot of
financial services for both private and commercial perspectives. Although the
international banking market was affected by the financial crises in late 2007,
and IMF estimates that more than $1.3 trillion in bad loans was written off
between 2007 and first half of 2009, the size of global banking industry shows

23
an overall expanding trend over the last few years. The assets of the world‘s
largest 1000 banks increased by 6.8% in 2009 financial year to reach $96.4
trillion yet profits declined by 85% to $115 billion. According to the report from
IFSL, EU banks held the largest share of the total, 56% in 2009, down from
61% in the previous year. Asian banks' share increased from 12% to 14%
during the year, while the share of US banks increased from 11% to 13%. Fee
revenue generated by global investment banking totaled $66.3 billion in 2009,
up 12% on the previous year.
Central banks around the world have taken unprecedented support measures
in an effort to boost liquidity. More than $200 billion in new capital was
injected into the top 20 banks alone. With regulators requiring banks to
increase their capital base, there has also been a great deal of issuance
activity on capital markets. Globally, banks raised nearly $1 trillion in new
capital between the start of the credit crisis and first half of 2009. US banks
raised nearly a half of this total, Europe followed with nearly $400 billion.
Global banking development
Introduction
 The global banking system in 2011 and 2012, so far, witnessed severe
setbacks as it continued to be affected by tepid recovery in global growth;
the re-emergence of the euro area sovereign debt crisis; and funding and
deleveraging risks for global banks. Uncertainties emanating from the
ongoing euro area sovereign debt crisis, the downgrade in the outlook of
several advanced economies (AEs), and stability issues of euro area
banks amidst bank recapitalization concerns, among other factors, kept
international financial markets and the banking system volatile during most
of 2011-12.
 Global credit growth demonstrated a mixed picture: in emerging market
economies it was sustained, in the US it showed some revival; but in
Europe it decelerated. The return on assets (RoA) improved for banks in

24
the US and some EMEs, but declined in European countries. The banking
trends in select regions and countries show that the US banking system
has made substantial progress in repairing balance sheets and enhancing
capital. In the euro zone banking system, the risks remain at an elevated
level on account of the vicious circle between banks and sovereigns. The
crisis in the euro area has affected the UK financial system also and the
funding costs for banks have risen sharply, leading to higher interest rates
and lower credit availability for household and corporate borrowers in the
UK.
 An analysis of the performance of the top 100 global banks shows that the
share of emerging economies in global banking continued to increase.
Among emerging and developing countries, Chinese banks have
registered substantial gains in the top 100 bank ratings. On the global
policy reforms front, there has been some progress in rule framework for
the Basel Rule, systemically important financial institutions (SIFIs),
shadow banking, resolution regimes and bail-in mechanisms.
 The global economy suffered a major setback in late 2011 as concerns
about financial stability in the euro area came to the fore. Market stress
spread throughout the euro area and bond yields soared in peripheral
economies as investors were increasingly concerned about the risk of a
sovereign default. These developments dramatically highlighted the risk of
adverse, self-fulfilling shifts in market sentiment that could rapidly push
fragile sovereigns into a bad equilibrium of rising yields, a funding squeeze
for domestic banks, and a worsening economy [IMF‘s Global Financial
Stability Report (GFSR) – April 2012
 Global growth moderated to 3.8 per cent in 2011 compared with 5.1 per
cent achieved in 2010 (Chart II.1). The slow growth was mainly driven by
weakening growth in the advance economies. On the other hand,
emerging market economies continued to grow at a higher rate. For the
year 2012, various forecasts have suggested the continuation of sluggish
global growth. The IMF‘s World Economic Outlook (WEO) – October 2012
has projected global growth to moderate to 3.3 per cent in 2012 with
significant downward risks.

25
 Against this global macroeconomic setting, Section 2 reviews the
performance of the global banking system using major indicators of
banking activity and soundness for select advanced and emerging
economies. Section 3 looks into the detailed individual performance of the
banking systems in few advanced and emerging economies/ economy
groups. Section 4 analyses the performance of the top-100 banks having
major global presence. Section 5 highlights the major regulatory and
supervisory policy initiatives with regard to the global banking system
during the year. Section 6 presents the overall assessment and outlook for
the global banking sector for 2013.
Analysis of the Performance of Top 100 Global Banks
1. Share of EMEs in global banking continued to increase.
The analysis of the top 100 global banks by the Banker Database shows
that the trend of moderate shift in the global banking business from
advanced economies to EMEs continued in the year 2011, as evident from
both the composition of number and assets of the top 100 global banks.
This shift reflects the continued credit growth in the EMEs, as well as the
decline in credit growth in the advanced economies. The decline in the
asset share of advanced economies between 2010 and 2011 was
concentrated in US and European banks. Among EMEs, Chinese banks
have exhibited a significant improvement in the top 100 banks ratings, as
four banks are listed among the top 10 banks based on Tier 1 capital for
the first time.
2. Profitability of global banks remains subdued.
The profits of the top 100 banks, which had staged a recovery after the
financial crisis received a setback during 2011. The aggregate profits of
these banks recorded a moderate fall to US$ 702 billion in 2011 from US$
709 billion in 2010. Moreover, the percentage of loss making banks

26
[reporting negative return on assets (RoA)] also recorded an increase from
5 per cent in 2010 to 10 per cent in 2011.
3. Global banks strengthen their capital adequacy position
The capital adequacy position of the top 100 banks reveals that the
number of banks in the higher bracket of capital adequacy ratio, i.e., 13 to
17 per cent, showed an increase, reflecting global initiatives to strengthen
the capital position of banks. However, the number of banks with a CRAR
range of more than 17 per cent declined. All the top 100 banks (barring
one for which data are not available) show that they are maintaining a
higher capital adequacy level than the BCBS norm of 8 per cent CRAR
stipulated under the Basel II framework.
4. Some progress is evident in the deleveraging of global banks.
With the pressure on global banks to deleverage, especially after the
global financial crisis, the banks have made some progress in reducing
their leverage. At the end of 2011, the number of banks that are highly
leveraged with a capital to assets ratio – a measure of financial leverage –
of less than 4 per cent and between 4 - 6 per cent came down, while the
number of banks in the range of 6 - 8 per cent showed an increase.

27
B. Banking Industry at National level
Banking in India originated in the last decades of the 18th century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India,
established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bombay and the Bank of Madras,
all three of which were established under charters from the British East India
Company. The three banks merged in 1921 to form the Imperial Bank of India,
which, upon India's independence, became the State Bank of India in 1955.
For many years the presidency banks acted as quasi-central banks, as did
their successors, until the Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalized all the major banks that it did not
already own and these have remained under government ownership. They
are run under a structure known as 'profit-making public sector undertaking'
(PSU) and are allowed to compete and operate as commercial banks. The
Indian banking sector is made up of four types of banks, as well as the PSUs
and the state banks; they have been joined since 1990s by new private
commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range
and reach-even though reach in rural India and to the poor still remains a
challenge. The government has developed initiatives to address this through
the State bank of India expanding its branch network and through the
NABARD (National Bank for Agriculture and Rural Development) with things
like microfinance.
Banks act as payment agents by conducting checking or current accounts for
customers, paying Cheques drawn by customers on the bank, and collecting
Cheques deposited to customers' current accounts. Banks also enable
customer payments via other payment methods such as Automated Clearing

28
House , Wire transfers or telegraphic transfer, EFTPOS, and automated teller
machine
The Indian banking sector has emerged as one of the strongest drivers of
India‘s economic growth. The Indian banking industry has made outstanding
advancement in last few years, even during the times when the rest of the
world was struggling with financial meltdown. India's economic development
and financial sector liberalization have led to a transformation of the Indian
banking sector over the past two decades.
Today Indian Banking is at the crossroads of an invisible revolution. The
sector has undergone significant developments and investments in the recent
past. Most of banks provide various services such as Mobile banking, SMS
Banking, Net banking and ATMs to their clients.
Indian banks, the dominant financial intermediaries in India, have made high-
quality progress over the last five years, as is evident from several factors,
including annual credit growth, profitability, and trend in gross non-performing
assets (NPAs). While annual rate of credit growth clocked 23% during the last
five years, profitability (average Return on Net Worth) was maintained at
around 15% during the same period, while gross NPAs fell from 3.3% as on
March 31, 2006 to2.3% as on March 31, 2011.
The Indian banking sector is a mixture of public, private and foreign
ownerships. The below table highlights top 10 banks which contributed 58%
share of the total credit as on March 31, 2011. The State bank of India has
recorded highest market share. The Net Interest Margin of HDFC Banks is
4.2% which is highest among others.
BroadClassificationofBanks inIndia:
1. The RBI: The RBI is the supreme monetary and banking authority in the
country and has the responsibility to control the banking system in the
country. It keeps the reserves of all scheduled banks and hence is known
as the ―Reserve Bank‖

29
2. Public Sector Banks:
 State Bank of India and its Associates (7)
 Nationalized Banks (22)
 Regional Rural Banks Sponsored by Public Sector Banks (46)
3. Private Sector Banks:
 Private Banks (17)
 Foreign banks operating in India(32)
4. Co-operative Sector Banks:
 State Co-operative Banks
 Central Co-operative Banks
 Primary Agricultural Credit Societies
 Land Development Banks
 State Land Development Bank
5. Development Banks: Development Banks mostly provide long term finance
for setting up industries. They also provide short-term finance (for export
and import activities)
 Industrial Finance Co-operation of India (IFCI)
 Industrial Development of India (IDBI)
 Industrial Investment Bank of India (IIBI)
 Small Industries Development Bank of India (SIDBI)
 National Bank for Agriculture and Rural Development (NABARD)
 Export-Import Bank of India
Co-operative Bank
The Co-operative bank has a history of almost 100 years. 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

30
urban areas also has increased phenomenally in recent years mainly due to
the sharp increase in the number of co-operative banks.
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, home finance, consumer
finance, personal finance, etc. Some of the co-operative banks are quite
forward looking and have developed sufficient core competencies to
challenge state and private sector banks.
According to NAFCUB the total deposits & lending‘s of Co-operative Banks is
much more than Old Private Sector Banks & also the New Private Sector
Banks. This exponential growth of Co-operative Banks is attributed mainly to
their much better local reach, personal interaction with customers, and their
ability to catch the nerve of the local clientele. Though registered under the
Co-operative Societies Act of the Respective States (where formed originally)
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.
There are two main categories of the co-operative banks.
(a) Short term lending oriented co-operative Banks
 Within this category there are three subcategories of banks viz. state co-
operative banks, District co-operative banks and Primary Agricultural co-
operative societies.
(b) Long term lending oriented co-operative Banks
 Within the second category there are land development banks at three
levels state level, district level and village level.

31
Features of Cooperative Banks
Co-operative Banks are organized and managed on the principal of co-
operation, self-help, and mutual help. They function with the rule of ―one
member, one vote‖. Functions on ―no profit no loss‖ basis. Co-operative
banks, as a principle, do not pursue the goal of profit maximization‘s co-
operative bank performs all the main banking functions of deposit
mobilization, supply of credit and provision of remittance facilities. Co-
operative Banks provide limited banking products and are functionally
specialists in agriculture related products. However, co-operative banks now
provide housing loans also.
The State Co-operative Banks (SCBs), Central Co-operative Banks (CCBs)
and Urban Co-operative Banks (UCBs) can normally extend housing loans up
to Rs 1 lakh to an individual. The scheduled UCBs, however, can lend up to
Rs 3 lakh for housing purposes.
The UCBs can provide advances against shares and debentures also. Co-
operative bank do banking business mainly in the agriculture and rural sector.
However, UCBs, SCBs, and CCBs operate in semi urban, urban, and
metropolitan areas also.
The urban and non-agricultural business of these banks has grown over the
years. The co-operative banks demonstrate a shift from rural to urban, while
the commercial banks, from urban to rural. Co-operative banks are perhaps
the first government sponsored, government-supported, and government-
subsidized financial agency in India. They get financial and other help from
the Reserve Bank of India NABARD, central government and state
governments. They constitute the ―most favored‖ banking sector with risk of
nationalization. For commercial banks, the Reserve Bank of India is lender of
last resort, but co-operative banks it is the lender of first resort which provides
financial resources in the form of contribution to the initial capital (through
state government), working capital, refinance.

32
Co-operative Banks belong to the money market as well as to the capital
market. Primary agricultural credit societies provide short term and medium
term loans. Land Development Banks (LDBs) provide long-term loans. SCBs
and CCBs also provide both short-term and term loans. Co-operative banks
are financial intermediaries only partially. The sources of their funds
(resources) are (a) central and state government, (b) the Reserve Bank of
India and NABARD, (c) other co-operative institutions, (d) ownership funds
and, (e) deposits or debenture issues. It is interesting to note that intra-
sectorial flows of funds are much greater in co-operative banking than in
commercial banking. Inter-bank deposits, borrowings, and credit from a
significant part of assets and liabilities of co-operative banks. This means that
intra-sectorial competition is absent and intra-sectorial integration is high for
co-operative bank.
Some co-operative banks are scheduled banks, while others are non-
scheduled banks. For instance, SCBs and some UCBs are scheduled banks
but other co-operative banks are non-scheduled banks. At present, 28 SCBs
and 11 UCBs with Demand and Time Liabilities over Rs 50 crore each
included in the Second Schedule of the Reserve Bank of India Act .Co-
operative Banks are subject to CRR and liquidity requirements as other
scheduled and non-scheduled banks are. However, their requirements are
less than commercial banks. Since 1966the lending and deposit rate of
commercial banks have been directly regulated by the Reserve Bank of India.
Although the Reserve Bank of India had power to regulate the rate co-
operative bank but this have been exercised only after 1979 in respect of non-
agricultural advances they were free to charge any rates at their discretion.
Although the main aim of the co-operative bank is to provide cheaper credit to
their members and not to maximize profits, they may access the money
market to improve their income so as to remain viable.
The Indian banking industry is shortly explained through the following point.
 The Indian banking industry has its foundations in the 18th century, and
has had a bumpy evolutionary growth path since then. The industry in

33
recent times has recognized the importance of private and foreign players
in a competitive scenario and has moved towards greater liberalization
 Indian banks have mobilized around 80% of funding from deposits, thus
their ability to win market share profitably is key to stock returns
 In today‘s scenario, Current and saving accounts (CASA) is the bank‘s
lifeline for profitable growth, but during FY2012 high interest rate choked
them of such deposits, slowing expansion to a five-year low of 7%.
 Credit growth of the Scheduled Commercial Banks (SCBs) slowed down to
18.10%on FY2012, which was 22.90%1 in FY2011 on account of the
slowdown of the general economy. It is expected that the credit growth in
FY2013 will be in the range of 16 18% as there is increasing demand for
working capital loans and refinancing of forex loans by Indian corporates.
 The growth of total deposits of the (SCBs) stood at 14.92%1 on FY2012,
Vs.18.31% in FY2011. The deposit growth is expected to moderate to 14-
17%2 over FY 2013-15 with stable Net Interest Margins (NIM). NIM of
SCBs in FY2012 was 2.90%1 on average.
 In the present competitive scenario, Private Banks are targeting the faster
growing retail loans and also improving the growth rate in fee income by
increasing transaction fees, whereas Public Sector Banks are targeting to
push for higher recoveries and upgrades in Non-Performing Loans (NPL)
and also improving their deposits mix by reducing the share of bulk
deposits.

34
Important Milestone of Indian Banking industry.
Prior to 1950 / Evolutionary Phase
 Enactment of the RBI Act, 1935
 High levels of deprivation in economy
Foundation Phase / 1948-1968
 Government adopted the system of planned economic development
 Complex Interest rates
 Establishment of Banking Regulation Act, 1949
1968-1984/Expansion Phase
 14 banks in 1969 and 6 banks in 1980 were nationalized termed as ―First
Banking Revolution‟
 Rapid branch expansion
 Retail lending to risk prone areas at concessional interest rates
1985-1990/ Consolidation
 Lack of professionalism and transparency in the functioning of public
sector
 Series of policy initiatives taken with the objectives of consolidation of
banks
1991 Onwards/Reformatory phase
 The Economic liberalization of 1990 was initiated to ensure an efficient,
competitive and mature financial market
 RBI gave licenses to new private sector banks as a part of its liberalization
process
 Various guidelines (e.g. Basel rules, FEMA, FERA,LAF) were introduced
 Banking Laws( Amendment) Bill, 2011 passed

35
Figure name: Structure of Indian Banking Industry
Figure no.:2.1
http://www.icacec.com/images/content/indianbankindustry.gif
C. Banking at State level
During the year 2011-2012, total number of bank branches increased by 342
(Metro-82, Urban-118, Semi-Urban-54 and Rural-88 ) taking the total network
of branches from 6091 as of March, 2010 to 6433 as of March, 2011 in the
state.
The aggregate deposits of the banks in Gujarat increased by Rs. 46,777
crores in absolute terms from Rs. 2,25,299 crores as of March,2010 to Rs.
2,72,076 crores as of March, 2011 registering a growth of 20.76 percent
during the year ended March 2011, as compared to 17.42% recorded during
the previous year.

36
During the year 2010-11, the aggregate credit increased by Rs. 32,228 crores
in absolute terms from Rs. 1,55,575 crores as of March, 2010 to Rs. 1,87,803
crores as of March, 2011 registering a growth of 20.72 percent during the
year ended March 2011, as against 18.00 percent recorded during the
previous year.
The Credit-Deposit ratio stood at 69.03 % as of March 2011, which has
slightly declined by 0.02 %, over the ratio of 69.05 percent as of March 2010.
D. PESTEL Analysis of Banking Industry
What is PESTEL Analysis?
PESTLE analysis, which is sometimes referred as PEST analysis is a concept
in marketing principles. Moreover, this concept is used as a tool by companies
the world over to track the environment they‘re operating in or are planning to
launch a new project/product/service etc.
PESTLE is a mnemonic which in its expanded form denotes P for Political, E
for Economic, S for Social, T for Technological, L for Legal and E for
Environmental. It gives a bird‘s eye view of the whole environment from many
different angles that one wants to check and keep a track of while
contemplating on a certain idea/plan.
Political factor affecting banking industry
 Indian banking sector is least affected as compared to other developed
countries- thanks to robust policy framework of RBI.
 Government affects the performance of banking sector most by legislature
and framing policy government through its budget affects the banking
activities securitization act has given more power to banking sector against
defaulting borrowers.
 A stricter prudential regulation with respect to capital and liquidity gives
India an advantage in terms of credibility over other countries.

37
 To support capitalization, the government has infused Rs 23,200 crore
(US$ 5.2 billion) into state-owned banks during the last three fiscals.
 The Indian banking Industry is mostly dependent on the monetary policy
decided by the RBI
 Stricter regulations with respect to capital and liquidity directly affects the
business of banks
 Banks need to adjust their interest rates accordingly, which may or may
not favor them
 Banks are forced to lend as per the guidelines of RBI, that includes credit
growth in all sectors
 Budgetary Measures announced by the government at the beginning of
every financial year also lay down guidelines to banks to lend or accept
deposits
 The government can also increase credit in particular sectors such as
increase in farm credit, increase in infrastructure credit etc.(priority
lending)
 Sometimes the government gives debt waivers to certain sections of the
society that need to be adhered to by banks as well
Economic factors affecting banking industry
 Economic factors in the country also effect the Banking Industry both
favorably or unfavorably
 When the economy is in good shape in terms of high per capita income,
good agriculture harvest and normal inflation, banks have an edge as
people are left with more money to deposit them with banks
 This helps in more capital formation as more deposits can be realized
 Also In the times of economic boom, more and more FDI is brought into
India through banking channels, that actually improves business for banks
and the economy in general
 Economic prosperity encourages lending business for the banks but in
times of recession banks face tough times to recover their money, issue
fresh credit and NIMs are lower too.

38
Social factors affecting banking industry
 The Indian banking system has been progressing rapidly. There are still
several untapped rural markets, despite the large number of banks in India
 Many farmers still take loans from moneylenders at a very high interest
rate and small-scale industries continue to remain important for banks
 However changes could be expected in the near future for the
unorganized sector
 The growing population of India is a great opportunity for Indian banks as
a lot of people in the country want to open a bank account and develop
good savings habits
 Changing lifestyle of the Indian urban population who wants easy ways of
financing to their desires
Technological factors affecting banking industry
 Indian banking has been consistently working towards the development of
technological changes and its usage in its operations.
 With the application of new and improved technologies banks are
expected to reduce costs, time and provide higher customer satisfaction.
 Internet banking or banking via the phone can be considered a remarkable
development in the banking industry.
 Mobile banking enables customers to check their account balance,
transfer funds 24x7, bill payments, booking of bus/flight tickets, recharge
prepaid mobile and do a lot more effortlessly and securely.
 Banking through cell phone benefits the banks too. It cuts down on the
cost of in-person banking and helps reduce headcount at branches.
 Technological developments facilitate the flow of information and data
faster leading to faster appraisal and decision-making as well.

39
Environmental factors affecting banking industry
 Indian economy has registered a high growth for last three years and is
expected to maintain robust growth rate as compare to other developed
and developing countries Banking Industry is directly related to the growth
of the economy
 The growth rate of different industries were: Agriculture : 18.5%Industry :
26.3%Services : 55.2%
 It is great news that today the service sector is contributing more than half
of the Indian GDP. It takes India one step closer to the developed
economies of the world. Earlier it was agriculture which mainly contributed
to the Indian GDP.
 This increases the avenues of investment by the industrial sector. This
would further increase the borrowings by the industry‘s leading to the
banking Industry
 In regards with the service sector , as the income of the people will
increase, lending and savings will increase leading to increased business
for the banks
Legal factors affecting banking industry
There are two major factors determining the legal aspects of the Banking
Industry
1. Banking regulation act
In 1949, the Banking Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in
India. The Banking Regulation Act also provided that no new bank or
branch of an existing bank could be opened without a license from the
RBI, and no two banks could have common directors
2. Intervention by RBI
The Reserve Bank of India (RBI) will intervene to smooth sharp
movements in the rupee and prevent a downward spiral in its value, but

40
will balance this with the need to retain reserves in the event of prolonged
turbulence.

41
E. Current Trends in Banking Industry
Global Banking Trends
The recent financial crisis brought to the fore the weaknesses in the global
banking industry, which, in turn, was manifested in dwindling public
confidence in the banking industry. The recent financial crisis has led to a
realization of the inadequacies in the banking sector. Banks had failed to
secure stable and diversified sources of income and to contain costs, which
resulted in liquidity stress for the institutions. Secondly, opaque balance
sheets significantly impaired analysis of risk, thus preventing timely
awareness of the weakness of banks‘ capital buffers (BIS Annual Report –
2011-12).
Banking Trends in Select Regions and Countries
US Banking System
The US banking system has made considerable progress towards repairing
balance sheets and building capital since the recent financial crisis. Large US
banks have reduced their reliance on short-term wholesale funding. The
banks have reduced impaired assets through charge-offs, write-downs and
asset disposals and increased the Tier-1 capital. Concurrently, the banks‘
equity capital and equity assets ratio has seen an improvement
The Stress Tests for US banks show improved resilience
The stress tests conducted under the Comprehensive Capital Analysis and
Review (CCAR) in March 2012 show that most of the 19 banking firms would
have sufficient capital to withstand a period of intense economic and financial
stress and still be able to sustain their lending capacity.
Improvement in the credit quality of US banks
There has been significant growth in credit to the industrial sector, but credit
to real estate and individual loans remains muted. The overall delinquency
rates on loan portfolios have fallen, but given the wide difference across
sectors in terms of asset quality, concerns remain Euro area banking system

42
 The current euro area debt crisis has highlighted the existence of a vicious
circle between banks and sovereigns. Their increasing inter-linkage has
led to a prolonged collapse of market confidence in the European Union
(EU) banking sector, affecting adversely the cost and availability of funds.
Risk aversion during euro area crisis led to freezing of inter-bank market
 The EU banks are more reliant on wholesale funds than customer
deposits. The ratio of residential deposits to total liabilities for these banks
is placed at around 51 per cent.
 In order to ease the funding pressures on EU banks, the ECB undertook
Long-Term Refinancing Operations (LTRO) on December 21,2011 and
February 29, 2012 amounting to more than € 1 trillion. This has
temporarily alleviated the funding pressures on EU banks and reduced the
financial stress. The EU banks, however, have not used the LTRO funds
to extend private credit, but sought to protect their balance sheets. The
predominant share of LTRO funds has been re-deposited with the ECB.
 As the crisis continued to escalate, the markets were increasingly
concerned about asset quality, the size of capital buffers and their ability to
cope with future credit losses. In order to alleviate these concerns, the
European Banking Authority (EBA) undertook an EU-wide stress test as
well as conducted a capital exercise of 71 banks in November 2011 to
assess their capital needs and advised the banks to build a temporary
capital buffer to reach a 9 per cent core Tier 1 ratio by June 30, 2012. The
EBA found that 27 banks across Europe needed to raise capital
totaling€76 billion to meet the 9 per cent core Tier 1 ratio. The final report
by the EBA on October 3, 2012showed that 27 banks have strengthened
their capital position by € 116 billion as of June 2012.Though the results
are positive, concerns remain as several of the banks surveyed require
bailouts, particularly, banks in Greece and Spain.
UK banking system
The crisis in the euro area has affected the UK financial system and has led to
a marked deterioration in the outlook for the UK economy. Even though UK
banks have built up considerable buffers of loss-absorbing capital, they were
affected by the general increase in the market uncertainty and widespread

43
risk aversion associated with problems in the euro area. This, in turn has
caused funding costs for banks to rise sharply, leading to higher interest rates
and lower credit availability for household and corporate borrowers in the UK
(Bank of England). In spite of the policy actions of the authorities, the flow of
credit through the banking system – which households and many businesses
necessarily rely on – has remained impaired. Recent data show that the stock
of lending to UK businesses has contracted.
Chinese banking system
The Chinese banking system continued to grow in 2011, with higher capital to
assets ratio and low level of non-performing loans (NPLs) at just about 1 per
cent. However, concerns remain, as the rapid growth of the Chinese banking
industry may be hard to sustain due to the slowdown in the national economy
and large exposure to Chinese property markets.
Trends in Indian Banking Industry
 Credit take off of the corporate sector slowed down particularly because of
down-sized capital expenditure programs.
 Banks have been focusing on secured lending products (such as
mortgage and auto loans) for retail customers to drive credit off take.
 Policy uncertainty over the micro finance institutions and recent changes
to banks credit off take to non-banking.
 Pressure to meet targets under Financial Inclusion also increased the cost
of lending and decreased returns on advances for banks.
 CASA growth slowed because of High Interest rates and pressure on
corporate cash flows which affect all banks.
 Due to Deregulation of Interest rates on saving deposits large amount of
competition is seen in Saving Deposits.
 According to the Reserve Bank of India (RBI)'s 'Quarterly Statistics on
Deposits and Credit of Scheduled Commercial Banks', March 2012,
Nationalized Banks accounted for 53.0 per cent of the aggregate deposits,
while the State Bank of India (SBI) and its Associates accounted for 21.8
per cent. The share of New Private Sector Banks, Old Private Sector

44
Banks, Foreign Banks, and Regional Rural Banks in aggregate deposits
was 13.0 per cent, 4.8 per cent, 4.4 per cent and 3.0 per cent,
respectively. Nationalized Banks accounted for the highest share of 52.0
per cent in gross bank credit followed by State Bank of India and its
Associates (22.5 per cent) and New Private Sector Banks (13.5 per cent).
Foreign Banks, Old Private Sector Banks and Regional Rural Banks had
shares of around 4.8 per cent, 4.8 per cent and 2.4 per cent, respectively.
 Another statement issued by the RBI revealed that foreign exchange
reserves increased by US$ 1.05 billion and stood at US$ 293.37 billion for
the week ended March 22, 2013. Foreign currency assets (FCAs), a major
component of the forex reserves, stood at US$ 260.41 billion while the
gold reserves amounted to US$ 26.292 billion.
 Furthermore, India's economic expansion has made Indian banks more
global in their approach. Ten banks have opened 100 branches in foreign
jurisdictions as of February, 2013.
 Increasing mobile penetration, coupled with higher smart phone adoption
has led an uptrend in mobile banking. Number of transactions through
mobile banking witnessed a jump of 64 per cent in the April-December
2012 period, according to data from the RBI.
 Banks in India are highly alert in grabbing opportunities to increase
transaction volumes in their automated teller machines (ATMs) through
religious gatherings in the country. Private sector banks have introduced
mobile ATMs that migrate from one religious fair to another throughout the
year. For instance, HDFC Bank, the second largest private lender in the
country, had sent its mobile ATM to the MahaKumbh Mela-2013 in
Allahabad. Over 100 million people are estimated to have attended this fair
and the bank has noticed that the transaction volumes were phenomenal.
Similarly, Kerala-based Federal Bank stationed a couple of portable ATMs
near Sabarimala temple during the last festival season when thousands of
devotees visited the place.
 France-based multinational bank Society Generate has recently opened its
third corporate banking branch at Sanand, near Ahmedabad in Gujarat. It
already has branches in Mumbai and Delhi. Believing that Gujarat is one
of the robust places in India and will provide good opportunities for bank to

45
expand its base in the country, the Bank will provide all-types of financing,
both short-term working capital lines and medium-long term equipment or
project finance, in Indian as well as foreign currencies. It will also provide
other specialized advisory and financing activities like M&A, project
finance, equipment and commodities financing to its clients. The Bank will
expand in Bangalore, Chennai, Hyderabad and Pune by 2016.
 The ministry of Finance is believed to have infused Rs 12, 517 crore (US$
2.28 billion) into 13 public sector banks before March 2013, in order to
keep them adequately capitalized. In 2013-14, it proposes to provide
additional capital of Rs 14, 000 crore (US$ 2.55 billion) to ensure that
public sector banks always meet the Basel III regulations as they come
into force in a phased manner.
 The Government is also working with the RBI and NABARD to bring all
banks, including some co-operative banks on core banking solution (CBS)
and on the electronic payment systems (like NEFT and RTGS) by the end
of 2013. All scheduled commercial banks and all regional rural banks
(RRBs) are already on CBS.
 Apart from this, the ministry is also contemplating to come up with India's
first Women's Bank as a public sector bank and shall provide Rs 1,000
crore (US$ 182.45 million) as initial capital. Necessary approvals and
banking license are expected to be obtained by October 2013.
 The Government intends to provide Rs 6,000 crore (US$ 1.09 billion) to
the Rural Housing Fund in 2013-14 while it may start a fund for urban
housing to mitigate the huge shortage of houses in urban areas. It would
provide Rs 2,000 crore (US$ 364.89 million) to the Fund in 2013-14.
F. Major players in banking industry
 Oriental bank of commerce, Federal Allahabad are the small banks in
terms of market capitalization.
 UBI bank, Yes bank, Canara, Induslnd, Bank of India is the mid-sized
bank.
 Axis Bank, Bank of Baroda, Punjab National Bank, Kotak Mahindra Bank
are the growing banks.
 SBI, ICICI, HDFC are the premium old generation banks.

46
 At present, along with the above bank there are five major foreign banks
including Standard Chartered, HSBC, Citibank, RBS and Deutsche,
account for over 70 percent of the total asset size of overseas lenders in
the country.
Current Players in Banking Industry
 Indian banks consist mostly of Scheduled commercial bank (SCBs), which
includes both Public Sector Banks and the Private Sector Banks. In Public
Sector Banks, the government must retain a 51% stake.
 Old Private sector banks are those banks which were not nationalized at
the time of bank nationalization that took place during 1969 and 1980.
Most of the old private-sector banks are closely held by certain
communities and their operations are mostly restricted to the areas in and
around their place of origin. e.g. Federal Bank, Dhanalaxmi Bank, ING
Vysya Bank.
 New private sector banks include those that were established in the past
twenty years such as Yes Bank, Axis bank and existing institutions that
were converted into commercial banks, such as the former development
institution ICICI and specialized lenders such as HDFC.
 Cooperative banks are small-sized units registered under the Co-operative
Societies Act. That essentially lend to small borrowers and businesses.
E.g. Punjab & Maharashtra Co-op. Bank Ltd., New India Co-op. Bank Ltd.
 Regional Rural Banks are mainly focused on the agro sector. These banks
are in every corner of the country and extend a helping hand in the growth
of the country. E.g. National Bank for Agriculture and Rural Development
(NABARD), Haryana State Cooperative Apex Bank Limited.
 Also, under the recently passed The Banking Laws (Amendment) Bill
2011, the government is likely to give the new banking licenses in the next
year or so.

47
The information related to some of the major players is as follows
State Bank of India
The State bank of India (SBI) is the largest state-owned banking and financial
services company in India. It is the 29th
most reputed company in the world
according to Forbes and it is the only bank to get featured in the coveted "top
10 brands of India" list in an annual survey conducted by Brand Finance and
The Economic Times in 2010. SBI posted a net profit of INR91.6 billion for
2009-10, registering a moderate growth of 0.49% as compared to 2008-09.
ICICI
ICICI bank has a network of 2,016 branches (as on 31 March 2010) and about
5,219 ATMs in India and presence in 18 countries. ICICI Bank– the largest
issuer of credit cards in India– offers a wide range of banking products and
financial services to corporate and retail customers. The net profit of the bank
for the financial year ending 2010 was INR40.25 billion, 7.1% higher than
2009.
HDFC Bank
In 2010, HDFC Bank had over 1,725 branches and 4,232 ATMs, in 779 cities
in India, and all branches of the bank were linked on an online real-time basis.
HDFC bank registered a net profit of INR29.4 billion as of March 31 2010, an
increase of 31% over 2009.
Axis Bank
Axis Bank is a financial services firm that began operations in 1994, after the
Government of India allowed new private banks to be established. At the end
of September 2010, the bank had a very wide network of more than 1,095
branches and over 4,846 ATMs. In the year 2009–2010, Axis bank posted a
net profit of INR25.1 billion, an increase of 38.5% over 2009.

48
G. Major Offerings
The major offering of banking industry is divided into 3 categories.
1. Retail Banking
2. Wholesale Banking
3. Treasury Banking.
1. Retail Banking
 Retail banking is a buzzword in India that focuses strictly on the consumer
market.
 Most banks have retail portfolios as part of their total lending portfolio
(18.4%1 on average). This sector has been growing at a high rate of 30 to
35%per annum.
 As per a survey conducted by CLSA, Consumer credit penetration is only
8% of the GDP in India, which is expected to rise further quickly.
 The growth is mainly led by growth in credit card receivables and other
personal loans.
 Housing loans continued to constitute almost half of the total retail Portfolio
of banks.
Table name: Products comes under the category of Retail Banking
Table no. 2.2
Loan Products Deposit Products Other Products /
Services
Auto Loan Deposits NRI services
Gold Loan Saving Accounts POS Terminals
House Loan Current Accounts Private Banking
Credit cards Fixed / Recurring Demat Services
Education Loan Corporate Salary A/C Mutual Fund Sales
Loan against
Securities
Foreign Exchange
Retail Banking
Business

49
2. Wholesale Banking
 Wholesale banking provides services to large corporate bodies, mid-sized
companies, international trade, other banks and financial Institutions.
 This service contributes 30%1 to India's total banking revenues, with ROE
in the range of 15% to 30%.
 From $16 billion in FY 2010, wholesale banking revenues are expected to
rise to a whopping $35 billion to $40 billion by FY 2015.
 Besides large corporates, a growing number of SMEs, this contributed
more than 40% of exports & 17% of GDP in 2011, offer huge opportunity
for banks.
 Investments in infrastructure totaling $240 billion between 2007 and 2010
have already been made under India‘s 11th Five-Year Plan. To sustain
India‘s economic growth, the Planning Commission therefore envisages
that $1 trillion (about 10% of GDP) will be spent on infrastructure during
the 12th plan from 2012 to 2017.
 Infrastructure development, simplified FDI and globalization in Indian
Companies are key drivers of wholesale banking.
Table name: Products comes under the category of Wholesale Banking
Table no.2.3
Commercial
Banking
Transaction Banking Key Segment
Term Loan Cash Management Large Corporates
Guarantees Custodian Services Emerging Corporates
Bill Collection Clearing Bank Services Financial Institutions
Letter of Credit Tax Collections Government/PSUs
Working Capital Banker to Public Issues
Commodities(Inc. Hedging)
Agriculture
Commodities
Forex & Derivatives
Wholesale Deposits

50
3. Treasury Banking
 The core function of a treasury is the measuring, monitoring, and
controlling of interest rate risk (IRR). Typically the department would
employ a variety of standard and proprietary models to measure this risk.
 Traditionally, the treasury function in banks was limited to funds
management i.e., maintaining adequate cash balances to meet the day-to-
day requirements and deploying surplus funds from operations.
 The scope of treasury has now expanded beyond liquidity management
and it has now evolved as a profit center with its own trading and
investment activity.
 Treasury activity in a bank depends on its size, complexity of operations,
and risk profile.
Table name: Products comes under the category of Treasury Banking
Table no. 2.4
Product Segment Other Financing
Equities Cash Management
Derivatives Statutory Reserve
Capital Market Financial Decisions
Debt Securities Asset Liability Management
Foreign Exchange

51
CHAPTER 3
INTRODUCTION OF
THE SURAT PEOPLE’S
CO-OP BANK LTD

52
The Surat Peoples Co-operative Bank ltd
About the bank:-
 Nine decades of Trust, Excellence & Services.
 The Surat People‘s Co-op Bank has been a pillar of support for the thriving
Industry and Trade in the city.
 The bank is the ―First Registered Urban Co-operative Bank‖ of India and
among the first 13 Co-operative Banks to get ―Scheduled Bank‖ Status. It
is the first Bank to provide the ―Depository participant Services‖ in South
Gujarat.
 The Surat Peoples Co-Operative Bank Ltd. is serving since last 90 years
to the people of Surat having network of 23 computerized branches out of
them 21 in Surat and 1 in Vapi and 1 in Navsari.
 Vision:-
Our vision is to be India‘s most respected and admired urban Co-
Operative bank by influencing people‘s lives through personalized banking
services and partnering them in realizing their dreams.
 Mission:-
Our mission is to be a preferred financial service provider with a special
focus on innovative quality products, technical expertise & efficient
services for customer achieve their objectives and goals.

53
 Values:-
We have accepted cardinal principle of corporate social responsibility and
accordingly we have tried to fulfill our social obligations to be recognized as
Surat people‘s bank in real sense.
History of Surat People’s Co-operative Bank
 With the advent of the 20th
century co-operative Movement Started in India.
Late Shri Raosaheb Vrundavandas Jadav- a visionary dreamt of establishing
Co-operative Bank. This Dream turned into reality in the name of The Surat
People‘s Co-operative Bank Ltd.
 The Surat People’s Co-operative Bank Ltd was established in 1922 at
Surat. Bank was registered on 10th March, 1922 and started functioning from
21st April, 1922.The Bank was first registered Urban Co-Operative Bank in
India and became Scheduled Bank on 1st September, 1988.
 The Bank is serving since last 91 years to the people of Surat and also to the
people of south Gujarat. The bank is having network of 23 branches, 21 in
Surat and 1 branch at Vapi and 1 branch at Navsari.
One of the glorious name amongst Surat’s uncountable Bank means
―Surat People‘s bank‖ to whom the peoples of the Surat to say as one of the
part of unanimous ―Our Bank‖ & the take the pride of it‘s as a service,
sharable & base for the Facilities & the immediate field of customer service
has supposed many endeavours & even today in the field of development to
passes the new endeavours go ahead ―My‖ Bank‘s development services to
look at a glance I am proud of it & filling the happiness.
From today approximately 80 to 90 years before in the area of British emperor
of salivary to reform of the small farmers to save from the economic
exploitation from the money lenders & businessman etc. to fulfill the needs of
their social & economic fore that the British emperor have passed the law of

54
money landing for the co-operative society. Afterwards these societies divided
in to two parts as rural & civics co-operatives.
One of this arrangement in the rural areas for the small farmers & in the urban
areas residing the middle & lower house persons to provide them the finance
at the reasonable rate of interest from the co-operative basis.
Incremental growth in the business industries import-export, increase in the
money & for the changing of the economic conditions to meet of these various
needs of economic & as a western countries in India the number of joint stock
banks increased gradually. But no one has thought over this that for to do the
work in the co-operation sector.
Small Industries the middle & the lower persons to get form them the deposits
in small & they have o interest to satisfy their small & big need of banking.
Due to this the small cities neglected. So the non-development of its
industries-business & due to lack of banking arrangement their development
is at stake. To change this atmosphere in the year 1920 & nearby from the
British emperor to start the civic banks in the small towns & at the tehsil level,
to emphasis on this & too issued the circulars from the register Shri
authorothfield.
By this way the starting the story of our own Surat People‟ s Co-operative
Bank & salute to Shri Vrundavandas Jadav who has established the Surat
peoples Co-operative Bank on the day of 10th March in the year 1922 which
will a remarkable day for us.
Having the vast knowledge in the field of banking & in economics in the
pioneer of switch bank, banking in the guidance of Shri Chunilal Sarvaiya, shri
Vrundavandas Jadav Saheb inhabitant & Surat, enthusiastic, intellectual &
having the development mind has taken the banking training & have decided
to established the Surat Peoples Bank. He has prepared the draft of the
bank‘s bye-laws from get the materials from the civic co-operative society‘s
bye laws & from the unnamed bankers & from the without naming banks who

55
doing the business of banking more or less by reforming & amending in its.
Such type of bank is not there in the Mumbai District or any other district at
that time with its own bye laws.
After that the local business & industries & engaged in the money landing and
having the remarkable personalities persons among them discuss details,
how to get the preliminary capital fund & from whom to get for inquiry in this
directions & after effects the organization of ―Surat People‘s Co-op Bank‖ as
per the Mumbai Co-operative laws to prepare the necessary documents &
legally on 10th March 1922 it was registered & succeeds. From this the
development of the Surat Peoples Bank started up till now.
On the First Year from the 134 members received Rs. 9815 & with the capital
total deposits of Rs. 42184 started the bank. The authorized capital of the
bank was Rs. 100000.
Bank has passed approximately 25 years on his own. In the golden era of
independence in 1947 the bank has celebrated its silver jubilee with the chair
of Shri Vaikunthbhai Mehta who was the Finance Minister & the eminent
economist of Mumbai District.
Up to 1995 Shri Vrundavandas Jadav has handled the various designations &
guided the bank.
In the year 1965 bank have got its own ownership glorious building in the
Parsi Sheri & its name ceremony known as Vasudhara was done by the
eminent personality & the Gujarat language literate Shri Vishnu Prasad
Trivedi.
The banks have celebrated its ―golden jubilee‖ in the year 1972 with the
hands of Shri Ghanshyambhai Oza who was the Chief Minister of Gujarat at
that time. On that year the total deposits of the bank was Rs. 5.02 crores &
the advances were of Rs. 2.77 crores & the working capital of Rs. 5.94 crore.

56
The platinum jubilee year has been celebrated on 21/4/97 under the chairman
sheep of Shri Madhu Dandvate who was the Vice Chairman of the Planning
Commission on that year. In this year the total deposit was of Rs. 278.70
crore, advances of Rs. 119.95 crores & the working capital of Rs. 386.46
crores of the banks.

57
A. SPCBL Profile
Table no. 3.1
Type Co-operative Bank (Scheduled Bank)
Industry Banking, Financial services
Founded 10 May 1922
Head Office Vasudhara Bhavan, Timaliawad, Nanpura, Surat - 395001
Area Served Surat City
Products Deposit Products , Debit Card & Remittance Products
Revenue
Revenue 252.33 Crore
Profit 28.24 Crore
Total Assets 2688.98 Crore
Total Equity 49.73 Crore
Contact Details (1) Central Office &
Registered office
Address : 'Vasudhara
Bhavan', Timliawad,
Nanpura, Surat
395001
Phone No : (0261)
2464621-22-23-24-25-
26-27-28-29
Fax : (0261)2464592
(2) Main Office : -
Address :Parsi Sheri,
Bhagal,
Surat - 395003.
Phone No : (0261)
2451677,
2451665
Fax : (0261) 2451669
SMS Banking.: 099988-
44949
Demat
Dept.:
(0261)2451671,2451866
E-mail Add. info@spcbl.in
Website www.spcbl.in

58
Table name: Board of Directors and General Manager
Table no.: 3.2
Sr.No Name Designation
1 Mr.Mukeshchandra N.Gajjar President
2 Mr. Pravinchandra P. Jariwala Vice-President
3 Mr. Jayvadanbhai T. Jariwala Director
4 Mr. Ashit V. Gandhi Director
5 Mr. Mukesh C. Dalal Director
6 Mr. Sunil K. Modi Director
7 Mr. Sanjiv N. Tamakuwala Director
8 Mr. Amit Gajjar Director
9 Mr. Ashok Dalal General Manager
10 Mr. Mayank Baxi Asst. General Manager
Services Provided by Surat People’s Co-operative Bank Ltd:-
1. Safe deposit Locker
A locker is a small, usually narrow storage compartment. They are
commonly found in dedicated cabinets, very often in large numbers in
various public places such as locker rooms, work places, schools,
transport centers, and the like. They vary in size, purpose, construction,
and security.
The locker service of Surat People‘s Co-operative Bank includes the following
rules:
 The agreement for locker service is done on the 100 Rs stamp paper.
 The fix deposits of Rs3000 must be deposit by customer for getting locker
service
 When customer fail to pay rent in cash than the rent amount is credited by
bank from customers saving account.
 Anything can be putted by customer in lockers except illegal things.
 Minimum Charges of rent is Rs 337 per year including tax on small size
lockers while it goes on increasing as the sizes of lockers increase till Rs
4495 per year.

59
2. ATM (Automated Teller Machine)
Automated Teller Machine is a Machine at a bank branch or other location
which enables a customer to perform basic banking activities (checking
once balance, withdrawing or transferring) even when the bank is closed.
 The charges on ATM service are 100 Rs a year. This is same as that
taken by other banks.
3. VAT (View Account Terminal)
You can easily have information on the screen about your account details
like balance and latest transaction. VAT machines are placed at all Surat
People‘s Co-operative Bank branches.
Following are the features of VAT machine.
 In idle state VAT displays details of various loans and deposits afford by
the bank.
 On touching the screen by finger (do not use any SHARP object) VAT will
start.
4. DEMAT
In India, refers to a Dematerialized account for individual Indian citizens to
trade in listed stocks or debentures, required for investors by The
Securities Exchange Board of India (SEBI).In a DEMAT Account, shares
and securities are held electronically instead of the investors taking
physical possession of Certificates. A DEMAT Account is opened by the
investors while registering with an investment broker (or sub-broker). The
DEMAT account number is quoted for all transaction to enable electronic
settlement of trades to take place.
DEMAT Account through Surat People‘s Co-operative Bank:
 Physical Security holding are converted into Electronic holding so no fear
about loss of paper form securities, theft, fire or mutilation.
 No worry about bad delivery.
 Speedy sale-purchase and transfer.
 No botheration for storing and preservation nor loss of securities.
 Sale-purchase, credit-debit by return mandate only.

60
 Freedom from inconvenience due to wrong signature and other objection
in stock exchange.
 Security transfer without share transfer forms.
 Freedom from botheration to inform change of address to all the
company‘s.
 Dematerialization facility available.
 Easy to pledge as security and to get loan.
 Direct credit of corporate benefits like Bonus, Market Shares, Right share
in your account.
 Direct credit of shares, securities purchased from market.
Nominal Service Charges
 No stamp duty expense on transfer of securities.
 Saving of postal expenses and time etc.
 Very small amount of brokerage for sale / purchase of shares and
securities.
 Competitive interest will be charged on loans/advances against DEMAT
shares & securities.
5. E-PAYMENT
E-PAYMENT is a comprehensive bill payment service as well as direct
payment of Income tax, Service Tax, TDS (Tax Deducted at Source) etc
from the customer accounts.
E-Payment Customer benefits:
 Reputed and well established service.
 Provide trusted, friendly and helpful customer service.
 E-Payment is the fast, smart and secure way to pay your bills.
6. E-banking services
E-banking services also consider as online banking i.e. Internet banking
and Mobile banking.

61
1. Internet Banking
Surat People‘s Co-operative Bank NET Banking is the Bank‘s Internet
Service, offering the various facilities to the Users such as Accounts
enquiry, Statement of account, Funds Transfer, Utility Bills Payment, Stop
payment, request for issuance of cheque book, request for issuance of
DD, other requests, etc., alerts, financial modeling and other facilities as
the bank may decide upon to provide from time to time.
 User refers to any individual or corporate user availing Internet banking
facility of the Bank and such user is identified as a User.
 Account refers to the User‘s Savings and / or Current Account and / or
Time Deposit and / or Cash Credit, Overdraft, Loan Account and / or
any other type of account as available in the Bank to be covered under
the Surat People‘s Co-operative Bank NET Banking facility.
2. Mobile Banking(SMS Banking)
Through Mobile Banking the customer of Surat People‘s Co-operative
Bank can get all the information of their accounting transactions. The
information such as Current balance of Accounts Back dated balance of
accounts, Cheques details, Return clearing information & cheque returned
on debit clearing, other bank information and also ask for Help.
7. ECS (Electronic Clearing Services)
ECS is a mode of electronic funds transfer from one bank account to
another bank account using the services of a Clearing House. This is
normally bulk transfers from one account to many accounts or vice-versa.
This can be used both for making payments like distribution of dividend,
interest, salary, pension, etc. by institutions or for collection of amounts for
purposes such as payments to utility companies like telephone, electricity,
or charges such as house tax, water tax, etc. or for loan installments of
financial institutions/banks or regular investments of persons.
8. ASBA (APPLICATION SUPPORTED BY BLOCKED AMOUNT)
ASBA means ―Application Supported by Blocked Amount‖. ASBA is an
application containing an authorization to block the application money in
the bank account, for subscribing to an issue. If an investor is applying

62
through ASBA, his application money shall be debited from the bank
account only if his/her application is selected for allotment after the basis
of allotment is finalized, or the issue is withdrawn/failed.
9. Demand draft and pay order
Demand draft: Demand Draft is way for remitters to transfer money. A
demand draft is more secure than a normal cheque as it can only be
credited to a specific payee's account, and a customer can only be
reimbursed under indemnity if the draft is lost or stolen. People's bank
draft is a low-cost, convenient method of payments.
Bank charges as below:
Table name: Bank charges on DD.
Table no. 3.3
DD Amount DD Charges
Up to 10000 20/-
Rs. 10001 to 60000 30/-
Rs. 60001 to 100000 Rs. 0.50 per Rs. 1000/- Maximum Rs. 560/-
Rs. 100001/- & Above Rs. 0.50 per Rs1000/- Maximum Rs.560/-
Pay order
Pay order is secure way to make payment. Pay order can be made of
your party's name. And it is best proof of payment of this amount and on
date. So, instead of giving cheque you can make pay order from bank and
bank will make a payment from your account.
10.RTGSNEFT.
The acronym 'RTGS' stands for Real Time Gross Settlement, which can
be defined as the continuous (real-time) settlement of funds transfers
individually on an order by order basis (without netting).'Real Time' means
the processing of instructions at the time they are received rather than at
some later time. ‗Gross Settlement' means the settlement of funds transfer
instructions occurs individually (on an instruction by instruction basis).

63
Considering that the funds settlement takes place in the books of the
Reserve Bank of India, the payments are final and irrevocable.
NEFT is an electronic fund transfer system that operates on a Deferred
Net Settlement (DNS) basis which settles transactions in batches. In DNS,
the settlement takes place with all transactions received till the particular
cut-off time. For example, currently, NEFT operates in hourly batches -
there are eleven settlements from 9 am to 7 pm on week days and five
settlements from 9 am to 1 pm on Saturdays. Any transaction initiated
after a designated settlement time would have to wait till the next
designated settlement time. Contrary to this, in the RTGS transactions are
processed continuously throughout the RTGS business hours.
Charges taken by bank on RTGS/NEFT
In NEFT less than or up to 200000 Rs is to transfer.
Table name: Charges of NEFT service
Table no.: 3.4
Particulars Charges
Up to 10000 3 Rs.
10001 to 100000 6 Rs.
100001 to 200000 17 Rs.
The RTGS system is primarily meant for large value transactions. The
minimum amount to be remitted through RTGS is 2 lakh. There is no upper
ceiling for RTGS transactions.
With a view to rationalize the service charges levied by banks for offering
various electronic products, a broad framework has been mandated as under:
Inward transactions – Free, no charge to be levied

64
Table name: Charges of RTGS service for outward transaction
Table no.: 3.5
Particulars Charges
2 lakh To 5 lakh 25 Rs.
Above 5 lakh 50 Rs.
11.Bill discounting
Bill discounting is a major activity with a lot of banks especially in
geographies involving a lot of exports and import activities. Purchasing
and discounting of bills of exchange is another short term method of
profitable instrument of banks funds. In Bill discounting, Financial
Institutions takes the bill drawn by borrower on his (borrower's) customer
and pay him immediately deducting some amount as
discount/commission. The Financial Institution then presents the Bill to the
borrower's customer on the due date of the Bill and collects the total
amount. If the bill is delayed, the borrower or his customer pays the Bank
a pre-determined interest depending upon the terms of transaction.
12.Loans and advances
The Surat People‘s cooperative banks provide loans and advances to its
customers. In finance, a loan is a debt evidenced by a note which specifies
that, among other things, the principal amount, interest rate, and date of
repayment. A loan entails the reallocation of the subject asset(s) for a
period of time, between the lender and the borrower. In a loan, the
borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal
amount of money to the lender at a later time. Typically, the money is paid
back in regular installments, or partial repayments; in an annuity, each
installment is the same amount. The loan is generally provided at a cost,
referred to as interest on the debt, which provides an incentive for the
lender to engage in the loan.

65
The Surat people‘s co-operative bank provides many loans such as
Personal Loan, Home loan, Education loan, Vehicle loan, Housing loan,
Business or industrial loan, travel loan etc.
13.E-Cheques
The e-Cheques consists five primary facts. They are the consumers, the
merchant, consumer‘s bank the merchant‘s bank and the e-mint and the
clearing process. This cheaquing system uses the network services to
issue and process payment that emulates real world cheaquing. The payer
issues digital Cheques to the payee ant the entire transactions are done
through internet. Electronic version of Cheques are issued, received and
processed. Atypical electronic cheque transaction takes place in the
following manner:
 The customer accesses the merchant server and the merchant server
presents its goods to the customer.
 The consumer selects the goods and purchases them by sending an e-
cheque to the merchant.
 The merchant validates the e-cheque with its bank for payment
authorization.
 The merchant electronically forwards the e-cheque to its bank.
 The merchant‘s bank forwards the e-cheque to the clearing house for
cashing.
 The clearing house jointly works with the consumer‘s bank clears the
cheque and transfers the money to the merchant‘s banks.
 The merchant‘s bank updates the merchant‘s account.
 The consumer‘s bank updates the consumer‘s account with the withdrawal
information.
The e-chequing is a great boon to big corporate as well as small retailers.
Most major banks accept e-Cheques. Thus this system offers secure means
of collecting payments, transferring value and managing cash flows.

66
14.General Insurance
First co-operative bank, in Gujarat to obtain a Corporate Agency in
General Insurance sector. Reserve Bank of India granted and Insurance
Regulatory and Development Authority (IRDA) license holder.
Following are the kind of Insurance provided by Surat People‘s co-operative
bank
 Mediclaim
 House-hold Insurance
 Fire and Burglary
 Personal Accident
 Shop Keepers
 Machinery Breakdown
 Overseas Mediclaim for Foreign Exchange
15. PAN Card
Surat People‘s Co-operative banks also provide PAN Card service where any
person can apply for a PAN Card though he is not a customer of Surat
People‘s Co-operative Bank. The charge of this service is only 96 Rupees in
which 7 Rupees is taken as bank commission.

67
B. ORGANOGRAM-Organizational chart
Chart name: Organizational Chart
Chart no.: 3
Swipper
Puen
Junior Clerke
Senior Clerke
Specialist Officer
Officer's
Manager
Senior Manager
Chief Manager
Assistant General Manager
Department General Manager (Vacant)
General Manager
Directors
President

68
C. Divisions/Departments
Following are the departments of Surat People‘s Co-operative bank.
1. Loan Application Department.
2. Loan Disbursement Department.
3. Loan Recovery Department.
4. Personal Estate.
5. Share Department.
6. RBI Investment Department.
7. EDP Department.
1. Loan Application Department.
In loan application department mainly processing of loan application is
done. In this department all the required documents along with the
application are been collected and then sanctioning is done for further
procedure.
2. Loan Disbursement Department.
When the documents are been submitted by the customer for taking loan
than investigation on such documents is done by this department to find
out whether the documents are true or not and once the bank is satisfied
with the investigation than the loan amount is been paid to the customers.
3. Loan Recovery Department.
The customers who fail to pay the loan amount than for recovery of the
amount of the loan from the customers is done in Loan Recovery
Department. All the legal action are been taken to recover the loan.
4. Personal Estate
The work related to human resource is done in this department i.e. salary
of the staff, recruitment, selection, training etc. is done by the Personal
Estate department.

69
5. Share Department.
As the Surat People‘s co-operative bank has its own share a separate
department is developed to do all the works related to shares like share
issue, payment of dividend, share allotment, etc.
6. RBI investment department.
This department is also known as Marketing Intelligence system
department. In this department the implementation of RBI policy is done.
Along with this the Audit work is also been done for RBI in this department.
All the instruction and RBI schemes and regulation are thoroughly studied
and implemented.
7. EDP Department.
The Electronic Data Processing (EDP) Department is developing for data
processing and computer hardware and software implementation. Any
development of software for data entry of banking transaction is done in
this department all the E-Banking services like internet banking, ATM,
Mobile banking etc. are been handled in EDP Department.
D. SWOT analysis
SWOT means Strengths, Weakness, Opportunity and Threats so sorting out
of the qualities according to the given category is SWOT analysis.
Strength
 The Bank is the "First Registered Urban Co-operative Bank" of India.
 All Branches Connected in CBS.
 Among the first 13 Co-operative Banks in September 1988 to get the
"Scheduled Bank" Status.
 The bank commenced "Total Branch Automation" in 1992-93.

70
 The Bank introduced "SMS Banking Facility" and "View Account
Terminal" {VAT} facility at all branches for better customer service.
 Bank started its own "Training Centre" for providing training to its
employees.
 The first Bank to provide the "Depository Participant Services" in South
Gujarat.
 Only coop bank of South Gujarat to have direct connectivity to RBI
server for RTGS /NEFT facility.
 Only bank to have direct connectivity with RBI server to have NECS
facility.
 Only Bank to give RTGS /NEFT facility on STP basis - straight through
processing
 There is constant increase in the annual profit of Surat People‘s Co-
operative bank.
Weakness
 The services such as ATM Card and Internet banking is inappropriate
 It fails to Provide Credit card facility
 The ATM card of SPCB cannot be accessed in any other banks ATM
centers.
 Foreign exchange service is not properly developed and there is no
facility of Making NRI account.
 It fails to attract new customer for opening their account in SPCB.
 The ATM centers are very less of Surat People‘s Co-operative bank.
Opportunities
 By developing ATM card and Internet banking it can achieve more
customer satisfaction and also can get new customers.
 The credit card facility is not yet available hence many customers use
other bank accounts like HDFC,ICICI,SBI etc. to get the credit card
facility hence if bank provide credit card facility than the customer may
not access other banks accounts.

Effectiveness of training at surat peoples co op bank

Effectiveness of training at surat peoples co op bank

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