Project Report

1. A Project on
“Customer Perception towards Loans and Advances
Commercial Co-operative Bank”
Submitted to
Marwadi Education Foundation’s Group of Institutions
In partial fulfillment of the requirement of the award for the degree of
Master of Business Administration
Under
Gujarat Technological University
Under the guidance of
Faculty Guide: Company Guide:
Prof. Pratik Joshi C.S. Vora
Assistant Professor Manager
Submitted by
Kanzariya Pragna K.
Enrolment No.: 13827059104
MBA Semester III
Marwadi Education Foundation’s Group of Institutions
MBA Program
Affiliated to Gujarat Technological University
Ahmadabad

4. DECLARATION
I undersigned, PRAGNA K. KANZARIYA, the student of2nd
semester of MBA, Marwadi
Education Foundation’s Group of Institutions affiliated to Gujarat Technological University,
hereby declare that the project work presented in this report is my own contribution and has
been carried out under the guidance of Prof. PRATIK JOSHI.

5. PREFACE
Education is the process of sharpening one’s mind and which is given in the
school & colleges in form of various subjects. When any subject is thought theoretically
in class it is known as academics, but when it is studied with the subject application in
real life. It is known as professional education.
The field of commercial study consists of business administration, which is the
good mixture of both theory subject and practical subject. Thus, it makes the students
familiar with the running of various industries.
As a student of MBA, a professional degree courses, it required having the
knowledge about theoretical as well as practical knowledge. Theoretical knowledge
provided me by the experienced staff of my college and the practical knowledge and
training is provided by The commercial co-operative Bank ltd.

6. ACKNOLEGEMENT
Life of human beings is full of interactions. No one is self-sufficient by himself
whenever anyone is doing some serious and important work a lot of help from the
people concerned is needed &one less specially obliged towards them. We cannot
forget acknowledging them in few words as without the guidance & co-ordination of
them in our project report would not have been possible.
A large number of individual contributed to this project. We are thankful to all of them for
their help and encouragement. Our writing in this project report has also been
influenced by a number of website and standard textbooks. As far as possible, they
have been fully acknowledged at the appropriate place .We express our gratitude to all
of them.
First of all We owe our heartfelt gratitude to our guide Prof. Pratik Joshi, for their
noble guidance throughout the completion of the Project.

7. SR. NO. PERTICULARS PAGE NO.
1 INTRODUCTION TO BANKING SECTOR IN
INDIA
4
2 HISTORY OF BANKING 6
3 INTRODUCTION OF CO- OPERATIVE BANK 7
4 DEFINATION OF CO- OPERATIVE BANK 8
5 TYPES OF CO- OPERATIVE BANK 9
6 ROLE OF CO- OPERATIVE BANK 11
7 REGISTRATION & LICENSING 12
8 MARKET PLAYERS IN THE INDUSTRY 13
9 “THE COMMERCIAL CO-OP.BANK OVERVIEW 17
10 INTRODUCTION 19
10 BANK PROFILE 20
11 ORGANIZATION CHART 21
12 BOARD OF DIRECTORS 22
13 VISION 23
14 MISSION 24
15 PERFORMANCE AND KEY PERFORMANCE
DATA
25
16 SERVICES PROVIDED 26
17 LOANS AND ADVANCES 28
18 INTRODUCTION 30
19 TYPES OF LOANS 31

8. 20 LOAN PROCEDURE 33
21 RECOVERY PROCEDURE 36
22 SWOT ANALYSIS 37
23 RESEACH WORK 39
24 BACKGROUND OF THE STUDY 42
25 REVIEW OF LITERATURE 42
26 STATEMENT OF PROBLEM 44
27 OBJECTIVE OF STUDY 44
28 CONTRIBUTION AND LEARNING FROM THE
PROJECT
45
29 ANALYSIS OF RESEARCH WORK 49
30 RESULTS & FINDINGS 59
31 SUGGESTION 60
32 CONCLUSION
33 CONCLUSION 61
34 SCOPE OF THE FURTHER RESEARCH 62
35 QUESTIONNER 63
34 BIBILIOGRAPHY 70
35 BIBILIOGRAPHY 71

9. PART -1
GENERAL
INFORMATION

10. 1. INTRODUCTION TO
BANKING SECTOR
IN INDIA

11. INDEX
SR. NO. PARTICULARS PAGE NO.
1 HISTORY OF BANKING 8
2 INTRODUCTION OF CO- OPERATIVE BANK 9
3 DEFINATION OF CO- OPERATIVE BANK 10
4 TYPES OF CO- OPERATIVE BANK 11
5 ROLE OF CO- OPERATIVE BANK 13
6 REGISTRATION & LICENSING 14
7 MARKET PLAYERS IN THE INDUSTRY 15

12. HISTORY OF BANKING
The importance of banking as the nerve sector of economic development cannot be
over emphasized. Banking industry has acquired a key position in mobilizing resources for
defense & for socio economic development of the country. It is said that “Bank which are that
need of & great wealth of our country have got to be kept very sacred. Just as water is for
irrigation, good banks are for the country’s industry & trade.” Since the beginning of planning
in India banking industry has grown not only in size but also in depth this industry has become
one big complex.
Today banks have become a part & parcel of our life. Now banks offer access to even a
common man & their activities extend to areas hither to untouched & after the globalization &
liberalization policy of India, many foreign banks have entered in Indian market with different
services & innovation technologies. Apart from their traditional business oriented functions,
they have now come out to fulfill national responsibilities. Today’s banks cater to the needs of
agriculturists, industrialist, traders, women, students & to all other sections of the society. Thus
they accelerate the economic growth of a country & steer the wheel of the economy towards
its goal of “self reliance in all fields.” Hence today banking sector has become the lifeline of the
economy.

13. INTRODUCTION OF CO- OPERATIVE BANK
Over the year the difference between co-operative banks & commercial banks has
blurred as they all have come under a common law. All products & services are offered by co-
operative banks are on the par with commercial banks, with a few exceptions related to
government business. In 1904 the co-operative movement started in India with a view to
provide finance to the agriculturist at a low rate of interest. The co-operative society has to
take the place of the money lenders & provide cheap loan to the farmers for productive
purposes.
Even though many types of co-operative societies have been started particularly for the
artisans & others, the most common form of such societies deal in rural credits. Once the
mahatma Gandhi has remarked that “ there is sweetness in co-operative; there is no one who
weak or strong among those who co-operate. Each is equal to other.”
So, after having such easy government policy, today many co-operative banks have started
in India. And they are catering to the all section of the society, & also today co-operative sector
has grown in all over the world, with globalization of the world they have also started to
implement new technologies & various management tools.

14. DEFINATION OF CO- OPERATIVE BANK
Co-operative has been defines in slightly different ways in various sciences & by various
scholars. This is due to its flexible nature which can lend itself to variety of purpose & social
system, in order to have a through understanding of the concept some well known definitions
are discussed below.
“Co-operative is a form of organization where in persons voluntarily associate together as
human beings on a basis of equality, for the promotion of economic interests of them selves.”
-Hubert calvert
“Another protagonist is an association for the purpose of joint trading, originating among
the weak & conducted always in an unselfish spirit, on such terms that all who are prepared of
assume the duties of membership my share in it’s reward in proportion to the degree in which
they make use of there association.”

15. TYPES OF CO- OPERATIVE BANK
There are mainly three types of co-operative banks in India.
 State co-operative banks
 Central co-operative banks
 Urban co-operative banks
(1)State co-operative banks
These banks are also known as apex & are registered under co-operative societies act –
1912. In fact these banks are established to function as a leading co-operative financial
institution of the state offer co-operative societies should grow. The “apex banks” as they are
called are they to render financial help as & when the co-operative societies are in need of their
help.
(2)Central co-operative banks
A district level of central co-operative banks is functioning as a commercial bank & that
too as an independent unit. They are there in order to strengthen the co-operative movement in
the country. In fact these banks are the key link between people & apex bank & render valuable
services to downtrodden & rural folk in taking them out of the financial wood central co-
operative banks get funds from (a) share capital (b) deposits (c) financial help from state co-
operative banks (d) state bank of India (e) commercial banks. Their working capital is usually
provided by state government.

16. (3) Urban co-operative banks
Urban co0operative banks are organized & established in towns on the pattern of joint –
stock banks but are established under co-operative societies act – 1912. For funds these banks
depend on their own sources. However central co-operative banks are helping them in financially
viable. Central co-operative banks are directly links with the state co-operative banks. Urban
primary co-operative banks provide funds to rural folk in easy terms to help them in agriculture
work aid its development role in rural enlistment. They are in tune with the government policies
& program.

17. ROLE OF CO- OPERATIVE BANK
Now-a-day co-operative banks are progressing very fast then any commercial or
nationalized banks. The customer service lending services & other banking facilities given to the
society is being better than other banks. So people are also being attracted & interested in co-
operative banks.
The main aim of the bank is to extend credit facilities to the small traders, workers &
other middle class people. This bank derive their funds for working partly through share capital
contributed by the member & partly through deposits collected from members, general public &
render usual banking services. The liability of members is normally unlimited. This enables the
society to raise funds from outside agencies &also encourages member to take keen interest in
working of the society.

18. REGISTRATION & LICENSING
There should be co-ordination between the state co-operative department & RBI for the
registration & licensing of urban banks. Urban banks should build up their share capital &
reserve to the revised minimum level with in period of 3 year which can be extendedly by the
RBI to a further period of 2 years whenever necessary.
For organization or urban co-operative bank in each state there should jointly survey local
areas & identify the potential growth centers where urban banks could be organized once such
centers are located prominent person of the locality might be contacted to seek their assistance
for registration of the urban banks. New banks are to be organized in backward areas or by
weaker section of the community may not be able to collect the initial minimum share capital
require for obtaining license. Government assistant in the form of share capital contribution for
such new banks may be equal to that collected by members.
These banks derive their funds for working partly through share capital contribution by
the numbers & partly through deposits collected from members & non members & renders usual
banking services. The shares are of higher value. But the liability of the member is limited to the
extent to the shares hold by them.

19. Market players in the Industry
Nationalized
bank & SBI &
associate
bank
Private bank Co-operative bank Foreign
bank
1. Bank of
Baroda
AXIS bank AMCO bank Ltd. Abu Dhabi
commercial
bank
2. Bank of India HDFC bank Kalupur commercial Coop bank Ltd. Australia &
New
Zealand
bank
3. Allahabad
bank
ICICI bank The Commercial Coop. Bank Ltd.
Jamnagar
Bank
International
Indonesia
4. Andhra bank Indusland bank Mehsana Urban Coop bank Ltd. Bank of
America NA
5. Bank of
Maharashtra
ING Vysya bank Nutan Nagrik Sahakari bank Ltd. Bank of
Bahrain &
Kuwait
6. Punjab
national bank
ABN Amrobank Rajkot Nagrik Sahakari bank Ltd. Bank of
Ceylon
7. Central bank
of India
Catholic Syrian
bank
Sardar Bhiladwala Pardi peoples
Coop bank Ltd.
Bank of
Nova Scotia
8. Indian bank Dhanlaxmi bank Surat peoples Coop bank Ltd. Bank of
Tokyo
Mitsubishi
UFJ

20. 9. Indian
Overseas
bank
Federal bank Amarnath Coop bank Ltd. Barclay
Bank PLC
10. Punjab &
Sind bank
Karnataka bank Andhra Pradesh Mahesh Coop Urban
bank Ltd.
BNP Paribas
11. Oriental bank
of commerce
KarurVysya bank Charminar Coop Urban bank Ltd. Calyon bank
12. Syndicate
bank
Kotak Mahindra
bank
Vasavi Coop Urban bank Ltd. Chinatrust
commercial
bank
13. UCO bank Lakshmi Vilas
bank
Indian Mercantile Coop bank Ltd. Citibank
N.A.
14. Union bank of
India
Tamilnadu
Mercantile bank
Abhyudaya Coop bank Ltd. Credit
Suisse
15. United bank
of India
The South Indian
bank
Bassein Catholic Coop bank Ltd. Commonwe
alth Bank of
Australia
16. Vijya bank YES bank Bharat Coop bank Ltd. DBS bank
17. Repco bank UP agro
corporation bank
Bharati Sahakari Coop bank Ltd. RHB bank
18. IDBI bank City union bank Bombay Mercantile Coop bank Ltd. Deutsche
Bank AG
19. State bank of
India
Citizen Credit Coop bank Ltd. Standard
Chartered
bank
20. State bank of
Bikaner &
Cosmos Coop Urban bank Ltd. UBS

21. Jaipur
21. State bank of
Hyderabad
Dombivli Nagrik Sahakari Coop bank
Ltd.
Shinhan
bank
22. State bank of
Mysore
Goa Urban Coop bank Ltd. Sonali bank
23. State bank of
Patiala
Gopinath Patil Parsik Janata Sahakari
bank Ltd.
Swapnil
bank
24. State bank of
Travancore
Greater Bombay Coop bank Ltd. HSBC
25. State bank of
Atitmand&Be
awar
Jalgaon Janata Sahakari bank Ltd. FirstRand
bank
26. State bank of
Banglore
JanakalyanSahakari bank Ltd. Royal bank
of Scotland
27. State bank of
Hemadri
Janalaxmi Coop bank Ltd. JPMorgan
Chase bank
28. Jivan commercial coop bank Ltd. Krung Thai
bank
29. KallappannaAwadeIchalkaranjiJanata
Sahakari bank Ltd.
Masreq
bank psc
30. KalyanJanataSahakari bank Ltd. Mizuho
corporate
bank
31. Karad Urban Coop bank Ltd. VTB
32. Mahanagar Coop bank Ltd. Woori bank
33. Mapusa Urban Coop bank of Goa Ltd. State bank

22. of Mauritius
34. Nagar Urban Coop bank Ltd.
35. Nasik Merchant’s coop bank Ltd.
36. New India Coop bank Ltd.
37. NKGSB Coop bank Ltd.
38. Pravara Sahakari Coop bank Ltd.
39. Punjab & Maharashtra Coop bank Ltd.
40. Rupee Coop bank Ltd.
41. Sangli Urban Coop bank Ltd.
42. Saraswat Coop bank Ltd.
43. Shamrao Vithal Coop bank Ltd.
44. Solapur Janata Sahakari bank Ltd.
45. Thane Bharat Sahakari bank Ltd.
46. Thane JanataSahakari bank Ltd.
47. The Kapol Coop bank Ltd.
48. Zoroastrian Coop bank Ltd.
49 GondalNagrikSahakari Bank Ltd.
50 Nagpur NagrikSahakari bank Ltd.

23. 1. THE COMMERCIAL
CO-COOPERATIVE
BANK LTD.
OVERVIEW

24. INDEX
SR. NO. PARTICULARS PAGE NO.
1 INTRODUCTION 21
2 BANK PROFILE 22
3 ORGANIZATION CHART 23
4 BOARD OF DIRECTORS 24
5 VISION 25
6 MISSION 26
7 PERFORMANCE AND KEY PERFORMANCE DATA 27
8 SERVICES PROVIDED 28

25. INTRODUCTION TO “THE COMMERCIAL CO-
OPERATIVE BANK LTD.”
The commercial co-operative bank is one of the leading co-operative banks in Jamnagar It
has completed 40 years, looking back to its starting history.
With a view to save borrower from the hands of money lenders, who charge excessive interest on
borrower. The commercial co-operative bank has been established in 24-03-1971 by Mr.
Kantilal Raichand Sanghvi and Gulabchand Devaraj Shah. then after loan has been given to
small borrower and deposits share capital has been received from rich people gradually bank
share capital became sufficient to bank started giving loan for various purpose like home loan,
vehicle loan, machinery loan etc.
This bank has started with working capital of Rs.1 crores which kept on
increasing till today and crosses the limit of Rs.177 crores. To middle class and lower class
people the work criteria became widen and it covers the whole khambhaliya city the head office
were situated at grain market jamnagar then other six branches were situated at, patel colony,
jam-khambhalia, marketing yard (Hapa), Kalavad , Udhyog nagar, Khodiyar colony.

26. BANK PROFILE
Name of bank The commercial co-operative bank ltd.
Head office Grain market, Jamnagar.
Working hours Monday to Saturday
10:30am to 5:30pm
Year of establishment 1971
Registered no. 1888
Accounting year April to march
Branches 7
Chairman Mr. Pravinchandra V. Chotai
Managing director Dr. Bipinchandra T. Vadhar
General manager Mr. Suresh D. Raiththa
Accountant G.S. Mehta
Email address cocobank.adm@gmail.com
Authorized capital 3,00,00,000.00
Fax no. 0288 2554175
Phone no 0288 2510500

27. ORGANIZATION CHART
mBoard of directors
Managing director
Vise chairman
Chairman
General Manager
Branch manager
Officers Casher Cleark

28. BOARD OF DIRECTORS
Mr. Pravinchandra v. chotai Chairman
Mr. Maheshbhai B. ramani Vise chairman
Mr. Bipinchandra T. vadhar MD
Mr. Kushkumar M. udani Joint MD
Mr. Indulal c. vora Director
Mr. Jitendra kumar s. shah Director
Mr. Jyantilal s. chandariya Director
Mr. Ketan kumar N. patel Director
Mr. Jitendra kumar H. Lal Director
Mr. Vitthaldas R. makadiya Director
Mr. Ramniklal D. thakar Director
Mr. Ashvin kumar J. barchha Director
Mr. Jamnadas S. shiyani Director
Mr. Vivek Ghandhi Director
Mr. Gautam Mehta Director

29. VISION
“Maximum profit at maximum services”
The bank is committed to maintain the highest level of ethical standards, profession
integrity and regulatory compliance. Our bank’s philosophy is based on four core value such as:-
 Operation excellence,
 Customer focus,
 Service Leadership,
 Welfare of people.
The objective of THE COMMERCIAL CO-OPERATIVE BANK LTD. is provided its
target market members a full range of financial products and banking services, giving the
members and one –step window for all his /her requirements.

30. MISSION
“We always with you”
The above slogan has been accepted and well performed by our bank. Bank always
tries to give support to the members of it. The regular payment of dividend over such 41 years on
an average of 12 % per annum is good signing of the implementation of the slogan “We always
with you”.
Bank also provided loan facilities to the members for short term and medium term financial
requirement at reasonable rates. The bank is going to start ATM in near future for easy
accessibility.
Our dealing with our customers, public shareholders and employees shall reflect honestly and
openness. Collectively we shall establish a standard in banking through outstanding
performance, courteous service high ethical bench

31. PERFORMANCE AND KEY PERFORMANCE DATA
OF THE COMMERCIAL CO-OPERATIVE BANK LTD.
(Amt. in lakh )
Particulars 31-3-2010 31-3-2011 31-3-2012 31-3-2013 31-3-2014
Share capital 161.04 186.33 180.51 181.84 179.22
Loans 3876.39 4593.18 5766.52 7073.56 8907.39
Reserves and
surplus
2424.68 2489.79 2542.03 2667.47 2809.91
Capital 11,747.95 11,742.92 12,021.08 12,791.28 13,386.66
No. of share
holder
4410 4411 4423 4436 4475
Total working
capital
18,439.98 18,106.38 18,976.78 19,814.86 17,755.50
Net profit 80.57 60.46 169.39 171.21 219.69
No. of branches 7 7 7 7 7
Audit division A A A A A
Dividend 12% 12% 12% 12% 12%

32. SERVICES PROVIDED
DEPOSIT
 Current account
 Saving account
 Special account
 Fixed deposits
ADVANCES
 For domestic appliances
 Against fixed deposit
 Against gold ornaments
 Against land & building
 Against vehicle
 Against machinery
 In form of overdraft
OTHER SERVICES
 Locker facilities
 Demand draft

33.  Current account
A current account is a running and active account which may be operated upon any
number of times during a working day. There is no restriction on the number and the amount of
withdrawals from current account.
A current account is meant for the convenience of his customers, who are relieved of the
task of handling cash themselves and to take the risk inherent therein. Thus the primary object of
current account differs from the object of other deposit accounts which are meant to solicit the
savings of the people.
 Saving account
A savings bank account is meant for the people of the lower and middle classes who wish
to save a part of their current incomes to meet their future needs and also intent to earn an
income from their savings.
The banks impose curtains restrictions on the savings banks account and also offer a
reasonable rate of interest. The need of keeping cash reserves against such deposits is
comparatively larger the fixed deposits but smaller as against the current deposits.
 Fixed deposits
In this category are included the deposit with the bank for a fixed period which is
specified at the time of making the deposit. Such deposits are, therefore, called Fixed Deposits
or Term Deposits.
A Fixed Deposit is repayable on the expiry of a specify period, chosen by the
depositor to suit his purpose and to enable him to get back the money as and when he needs it.

35. INDEX
SR. NO. PARTICULARS PAGE NO.
1 INTRODUCTION 33
2 TYPES OF LOANS 34
3 LOAN PROCEDURE 36
4 RECOVERY PROCEDURE 39
5 SWOT ANALYSIS 40

36.  LOAN/ADDVACES
Lending of funds to the constituents, mainly traders, business and
industrial enterprises, constitutes the main business of the banking company. The
major portion of a bank’s funds is employed by way of loans and advances, which
is the most portion of the bank’s funds is employed by way of is funds. The major
part of bank’s income is earned from interest and discount on the funds so lent.
The business of lending, nevertheless borrowed funds a banker can not afford to
take undue risks in lending. While lending his funds, a banker, therefore, follows a
very cautious policy and conducts his business on the basis of the well-known
principles of sound lending in order to minimize the risks.
CLASSIFICATION OF LOAN AND ADDVANCES
The loans and advances granted by banks are broadly classified into
secured and unsecured advances. According to section 5 (a) of the. Banking
Regulation Act,1949, ‘a secured loan or advance means a loan or advances made
on the security of assets, the market value of which not at any time less than the
amount of such loan or advances not so secured

37. TYPES OF LOANS
LONG TERM
LOANS
MEDIUM
TERM LOANS
SHORT TERM
LOANS
TYPES OF
LOANS

38. Loans provided by the commercial co-operative bank ltd.
 Short term loans
1 Pledge 19,24,754.00
2 Hypothecation 54,22,26,047.22
3 Overdraft 20,31,86,549.58
4 Current Overdraft 2,35,97,030.11
5 Gold Loan 5,39,53,092.00
6 Loan Against Deposits 54,110.00
7 Loan Against Reinvestments 28,95,288.00
8 Bill purchase 4,07,108.00
 Medium term loans
Higher purchase loan 1,02,15,982.50
Fixed property 82,37,153.00

39. Long term loans
Housing const. loan 4,25,66,579.00
Warehouse const. loan 14,75,451.00
LOAN PROCEDURE
1. Application
2. Shakh Report
3. Loan Report
4. Inspection
5. Committee Approval
6. Letter of Condition
7. Documentation

40. 1. APPLICATION
o A customer required any advances from a bank have to apply for the same.
o It is a compulsory for the commercial Bank that the applicant must be the
member or share holder.
o In the application form bank need primary information about borrower and
guarantor.
o Income proof also required
2. SHAKH REPORT
o It is a confidential report prepared by bank for the members who want to take
a loan.
o In the shakh report loanee’s financial position and also guarantor’s financial
position are mentioned.
o In the case of industries loan turn over report will required.
3. LOAN REPORT
o After the shakh report approves, customer’s application go for the loan report.
o Bank analyses the application throughout.
o And report will go to next stage.
4. INSPECTION
o For knowing correct picture bank’s officers are make an inspection of property of
customers.
o But it is done in case of totally new and doubtful customer’s application.
For regular customer, it is not required.

41. 5. COMMITTEE APPROVAL
o After completing everything and if application found correct than loan report
should to come along with committee.
o The system of the commercial Bank is divided into different committee for
sectioning different amount of advances.
o If committee members feel that the file of applicant for advances is correct and
there is not any problem in granting loan than they sanction the loan.
o If an amount of a loan is less than the actual application amount and if a
customer wants the amount which is mentioned in application form at that
time customer have to prepare one more application to the committee to
sanction the full amount.
o After the second application committee think over the new application and if
they feel satisfied than they sanctioned full amount of application.
6. LETTER OF CONDITION
o In the letter of condition bank includes the rate of interest, instalments, deposits
and other primary rules.
o Steps taken by the bank if customer is not able to repay the loan are also
mentioned.
7. DOCUMENTATION
o Document means any matter expressed or described upon any substance by means
of letters, figures, or marks or by more than one of those means intended to be
used or which may be used for the purpose of recording that matter.
o At the commercial co-operative Bank different documents are required for
different Loans / Advances like promissory note, letter of guarantee, equitable
mortgage and Hypothecation of vehicle etc.

42. RECOVERY PROCEDURE
A banker has not merely to advance money to trade, industry and commerce but has to
ensure that money which is advanced comes back to him / her.
If money advances is not recovered, the banker is likely to suffer a loss and will not be
able to balance liquidity with profitability. It is, therefore, necessary for a banker to keep a close
watch over advances granted by him to different types of borrowers.
There are numbers of occasions when a banker will think it necessary to ask a borrower
to repay the advances, which are like below;
1. Death of borrower or guarantor.
2. Insolvency of borrower or guarantor.
3. Dissolution of partnership.
4. If there is a adverse report in the market about the financial soundness of borrower.
5. If change in policy is announced by time to time from the Reserve Bank of India.
6. There may be some other occasion also, when an advance may have to been recover.
These may be under the RBI directive or under the Government Legislation.
7. If the borrower fails to repay, the banker should give a notice preferably through a
loyer by register post calling upon the borrower to repay the advances, failing which
he may be proceeded against according to the law.
8. If necessary the borrowers may be advised or persuaded to repay the advance in
installments to be fixed up in consulting with borrower.
9. The legal course will be available to the banker against the borrower depends upon
the type of borrower and the type of security offered as a cover for the advances.
10. The banker will therefore have to take appropriate legal action keeping in mind the
type of borrower and the type of security.
The most important point to be noted is that as a banker, while following the
recovery procedure the interest of the bank should always be uppermost in his mind.

43. SWOT ANANLYSIS
S = Strengths
W = Weaknesses
O = Opportunities
T = Threats
STRENGTH:-
 This bank is very reputed in local area.
 Professional management & co-operate team spirit.
 Strong brand equity in local area.
 Profitability & sound liquidity.
 No mistake in regular transactions can be found because of small
network.

44. WEAKNESSES: -
 Bank is not performing marketing activity because lack of marketing
expertise.
 Bank is not providing A.T.M. facility in the recent developed era and Bank
is not fully developed in modern era.
 Lower volume of advances due to higher rate of interest may affect the
expansion of the organization.
OPPORTUNITIES:-
 Bank can open branches at state level in near future.
 Number of branches can be increased in all over nation next 5 to 8 years.
 Bank can introduce new services like, NRI loan, ATM, student account
with minimum Rs. 100 etc.
 Bank can perform marketing activities by media.
THREATS:-
 Changes in government policies and in rules and regulation regarding
bank can be disturbed in regular services of bank.
 Crises in the Co-operative banking sector can disturb the bank progress.
 All the depositors may withdraw their money from bank because of any
wrong rumors against bank.

45. PART -2
RESEARCH
WORK

46. INDEX
SR. NO. PARTICULARS PAGE NO.
1 BACKGROUND OF THE STUDY 44
2 REVIEW OF LITERATURE 44
3 STATEMENT OF PROBLEM 46
4 OBJECTIVE OF STUDY 46
5 CONTRIBUTION AND LEARNING FROM THE
PROJECT
47

47. Introduction of the study:-
Research is done to gain some knowledge so as to it may aid in understanding the
information gathered on specific topic. It is a scientific way of undertaking information
on specific and particular subjects. It is a scientific investigation to understand the cause
and effect as well as the reasons trough investigations. It is an academic activity and it is
to be used in technical sense.
Research indicates scientific and inductive thinking and it promotes the development of
logical habits of thinking and organization. The research methodology has gone through
which path to solve the research problem and which tools have been adopted to achieve
the desired objective and more importantly it tells why only that path or tools have been
chosen and not other.
Today competition and markets both have expanded. The company every now and then
cannot afford to undertake research activities as research involves huge cost. The
companies undertake research activities when it perceives that something is going wrong
or they’re in lack of information to solve a particular problem. In such cases only
company undertakes research activities. The research activity is totally dependent on
managerial problem and research objective.

48.  BACKGRAOUND OF STUDY
This section explains the research methods, procedures and analytical frame work of the
present study. The research methods have been designed to fit the main objectives of the
study. Since not much research work has been done in the area of types of loan provided by
various types of bank from the customers’ point of view, it was decided to undertake one such
study in Khambhaliya district which is the fastest growing city in Gujarat, as per the latest
census data. It was decided to select one Co-operative bank namely commercial Co-operative
Bank Ltd., so that I undertake this bank.
 REVIEW OF LITERATURE
A Research Article entitled “Housing Loan Frauds in Banks: Some Precautionary
Measures” by Phogat M. (2006)
This article gives the measures for the housing loan frauds in banks. The author concluded that
housing for all envisaged 2 million houses every year out of which 0.7 million are in the urban
sector. Government provided certain relief under Income Tax Act. It motivated many people to
avail housing loan. The author thinks that different frauds committed on various banks can be
divided into the following two categories. i.e. Pre sanction and Post Sanction. KYC related due
weakness in pre inspection, Benami A/c, forged title deeds, by selling same flat to different
people, inflated salary certificate, filing of IT return for the last three years in one lot and
particularly by paying a nominal amount of tax, valuation of the property is manipulated to
manage margin money are post sanction fraud. The precautions may be taken at the bank level
to avoid the assurance of fraud i.e. KYC norms be followed, main salary A/c should be verified,
loan should be granted against the flat / houses built by reputed builders only. An undertaking
from the builders for not been sold to any other person, search report of property to be

49. conducted by the advocate, original title deeds, property tax, electricity bill, kept on records.
Disbursement
of loan should be made after spot verification, title deed should be scanned through ultra violet
ray machines before mortgage and bank should independently verify the report and no middle
man should be involved in the process and entire KYC. So the author points out that above
mentioned precautions will enable the bankers to curb frauds and public money can be saved.
In Indian Journal of Marketing, May’04 Marketing of Banking Services
in the Globalize Scenario – Emerging Challenges- By Dr.
V.GOPALAKRISHNAN
“Banking services largely depends upon customer demands and their perceived Performance.
In urban and metropolitan sectors customers are more knowledge and demand more facilities
than offered. They are looking for services that are cheaper, faster and qualitatively better”
Research paper entitled ““ANALYSIS OF CUSTOMER’S PERCEPTION TOWARDS
PERSONAL LOAN”) by R.DINESH KUMAR may (2007)
The results and findings of this research study exemplifies the fact that an in-depth market
research has been conducted and all research work has been conducted and all the objectives
set for the research work has been fully accomplished and the analysis also performed to the
maximum extent possible. An in-depth study has been made on the aspect that influences the
CitiFinancial to be the best private financier. Customer satisfaction is the core element in the
business. For customer satisfaction the services have to be an edge over the other banks,
which
CitiFinancial has achieved. CitiFinancial is aptly targeted potential customers among the various
levels of people in Chennai. The CitiFinancial overall performance and services seems to be
highly satisfied.

50.  STATEMENT OF PROBLEM
During one month my Summer Internship I learn so many thing and I find some problem
which is faced by Bank. commercial co-operative bank is local bank & faster growing. But
due to very less awareness to the customer of bank compare to other bank. So that Bank
need to more advertisement and publicity.
 OBJECTIVE OF STUDY
Any activity done without any objective in a mind cannot turn fruitful. An objective provides a
specific direction to an activity. Objectives may range from very general to very specific, but they
should be clear enough to point out with reasonable accuracy what researcher wants to achieve
through the study and how it will be helpful to the decision maker in solving problem.
PRIMARY OBJECTIVE:
To know perception of people towards loans and advances at The commercial co-operative
bank ltd.
SECONDARY OBJECTIVE:
 To gain the knowledge about different scheme & interest rate in the market.
 To get knowledge out current market scenario.
CONTRIBUTION AND LEARNING FROM PROJECT

51. I have done my summer training a THE COMMERCIAL CO-OPERATIVE BANK LTD. I was
given in training by THE COMMERCIAL CO-OPERATIVE BANK LTD for during one month
which I learned about, its importance and the main focus on the awareness of loans & advances
among the people.
I have learned many valuable things which will be very helpful in my career.
 I have learned about the loan & advances, its benefits and its importance.
 I learned different type loan scheme of selected Bank and I come to know the
Preference about customer.
 I have also come to know about the scope of bank in the market area.

52. RESEARCH
METHODOLOGY

53. Research:-
“It is a process of planning, acquiring, analyzing, and disseminating relevant data,
information, and insights to decision makers in ways that mobilize the organization to take
appropriate action that, in turn, maximize business performance”
Methodology
Research methodology has many dimensions. It includes not only the research methods but
also considers the logic behind the methods used in the context of the study and explains why
only a particular method or technique has been used. It also helps to understand the
assumptions underlying various techniques and by which they can decide that certain
techniques will be applicable to certain problems and other will not. Therefore in order to solve a
research problem.
 Research design
For my research I select the descriptive research.
 Sampling method
Convincing sampling method
 Sampling size
100 samples size
 Sources of data
 Primary Data
 Secondary Data

54.  Data collection method
Questionnaire
 Data collection instrument
Dichotomous
Likert scale
 Data Processing
Analysis of our research is divided in to four parts,
 Screening,
 Coding,
 Decoding, and
 Tabulation

55. ANALYSIS OF RESEARCH WORK
1. Where do you belong to?
Area %
Urban 43
Rural 57
From the above data we can say that there are 43% of respondent from the urban while there
are 57% of the respondents of rural. So we can say that majority of the respondents of the rural.
This is good opportunity of development of the bank.
2. How much your yearly income:-
Income %
Below 150000 42
150000-300000 25
300000-450000 15
450000or Above 18

56. From the above data we can say that there are 42% of the respondents income is below the
150000. So, that most of respondents are preferred long duration to get the interest from that
respondents. And also more focus on the income between 150000-300000
3. Are you Aware about banking services?
Type of services
No. of
respondent
Loan 42
Mutual fund 12
Insurance 36
Advances 10
0
5
10
15
20
25
30
35
40
45
%
Below 150000
150000-300000
300000-450000
450000or Above

57. From the data we can say that there are majority people are aware about loan & insurance. So
bank is also getting view about the other entire product & market trend.
4. How many banking services you have utilized?
No. of
Respondent
Loan 43
Mutual fund 7
Insurance 36
Advances 4
OTHER 10
0
10
20
30
40
50
60
70
80
90
No. of respondent
Loan
Mutual fund
Insurance
Advances

58. From the data we can say that there 62 respondent utilized the insurance then 43 of the
respondent utilised loan. So that bank main product is giving more earning & regular inflow is
maintained.
5. Have you taken any loan from bank?
%
Yes 67
No 33
0
10
20
30
40
50
60
70
No. of Respondent
Loan
Mutual fund
Insurance
Advances
OTHER
0
10
20
30
40
50
60
70
%
Yes
No

59. From the data we can say that 67% taken loan from bank. While 33% respondent say not taken
any loan. There are majority respondents taken loan from the bank. This is good experience of
bank regarding the respondent are preferred more loan.
6. Yes, then which bank?
%
SBI 17
Co-operative bank 27
Other than SBI 35
Other 21
From the data we can say that there are 35% of respondent take the loan from the BOI. Then
co-operative bank also develop very well in the rural area. Because there are given the loan on
the agriculture at very low interest rate.
0
5
10
15
20
25
30
35
%
SBI
Co-operative bank
BOI
Other

60. 7. Which types of Loan?
%
Housing loan 7
Vehicle loan 28
Agriculture loan 35
Education loan 21
Other 9
From the data we can say that there are 35% of the customers are loan taken for the
agriculture purpose means the rural area more use this type of the loan at the low interest rate.
Then second no. of the loan taken for the vehicle. Because now a day every people more prefer
this type of the loan.
8. Which are the other banks you have referred before taking any loan?
0
5
10
15
20
25
30
35
%
Housing loan
Vehicle loan
Agriculture loan
Education loan
Other
%
SBI 45

61. From the above the data we can say that there are majority people are the refer the SBI & BOI
means the very well developed this bank at the far away. This type of the bank are the given the
loan very low interest rate. So more competition in the market. Also kwon the market scenario.
9. Which schemes attract the customer while taking loan from particular bank?
%
EMI 28
Low interest rate 42
Security 6
Term duration 17
Other 7
0
5
10
15
20
25
30
35
40
45
%
SBI
HDFC
BOI
Other
HDFC 5
BOI 35
Other 15

62. From the data we can say that there are the customers more attract of the scheme of the
low interest compare to the other bank. This is good experience of the bank means which type
the schemes provides the respondent.
10. Sources from where you come to know about scheme provided in loan?
%
Newspaper 30
T.V. 33
personal calling 10
Hoarding 27
0
5
10
15
20
25
30
35
%
Newspaper
T.V.
personal calling
Hoarding
0
5
10
15
20
25
30
35
40
45
%
EMI
Low interest rate
Security
Term duration
Other

63. From the data we can say that there are T.V. is the more powerful source of the create the
awareness in the customer so the first position of the T.V. in the chart and then most effective
source of the create awareness among the large audience. So that it is the helpful to decide the
budget to the bank.
11. Are you aware about commercial co-operative bank ltd?
%
Yes 72
No 28
From the data we can say that there are 28% respondent are aware about the commercial co-
operative bank. While72% respondent are unaware about the commercial co-operative bank ltd.
12. Are you interested in commercial co-operative bank ltd.?
%
Yes 37
No 63
0
10
20
30
40
50
60
70
80
%
Yes
No

64. From the above data we can say that there are 37% respondent give the positive view about
bank. While 63% respondent give negative view because
 Not aware about this bank.
 Far away from our place.
 Development is low of the bank
0
10
20
30
40
50
60
70
%
Yes
No

65. Results and findings
 42% respondent’s income is below the 150000.
 There are respondent more aware about insurance & loan.
 There are more customer using 40%loan and 35% insurance
.
 There are respondent 67% of the taken the loan from bank.
 I understand that customer more prefers the BOI.
 There is more customer using the agriculture loan from the bank.
 Before the taken the loan respondent was refer 35% SBI.
 Customer is more attracting with scheme of 42% low interest rate.
 T.V. is more powerful source of create awareness.
 Majority customer is not aware about JCCB.
 JCCB have opportunities to develop this function.

66. 7.1 SUGGESTIONS
After completing my training and project work, I would like to give some
suggestions to the bank.
 The inspection of pre and post sanction should be more strict and regular.
 The bank should give ATM and any branch banking facility to its member in near
future.
 Whole term and condition are explaining the customer at the time of the sanction
loan.
 When first installment will be due at that time bank should inform the customer
about the due installment.
 Bank should require more marketing & publicity
 Bank must create the website in the competitive era.

67. 7.2 CONCLUSION
After having all the required information for preparing my report, I have
tried to analyze each and every function of commercial co-operative bank. During my report all
the member of The commercial co-operative bank ltd. had well co-operate me. I have also found
that there is a very good level of commitment in all the staff members. During my report
preparation, I have tried to cover each functional area of the bank; I can conclude that the is
one of the leading banks in banking sector, and with advanced technologies and educated staff
to trying to positioning in the banking market. But due to some weakness of co-operative sector
is also suffering from such limitations.
So, at last we can conclude that the COMMERCIAL CO-OPERATIVE
BANK LTD. is being leader in the market and due to great leadership of Mr. Pravinchandra V.
Chotai (chairman) bank is getting great goodwill in the market and also can create good
corporate image in banking sector.
For that all my wishes always with the commercial co-operative bank
ltd.. I wish them for better achievement

68. Title: - An analytical report on Loans and Advances in commercial
co-operative bank ltd.
Questionnaire
Please tick your response in the space provided. In all such cases where more than one
response is necessary under the same Question, please tick as many responses as many
responses as are applicable.
Personal Detail:-
Name: - _________________________________________________
Gender:-

69.  Male
 Female
Occupation:-_____________________________
Contact No:-_______________________________
Where do you belong to?
 Urban
 Rural
How much your yearly income:-
 Below to 150000
 150000-300000
 300000-450000
 450000 or above
Are you having Bank A/c?
 Yes
 No
Are you Aware about banking services?
 Loan
 Mutual fund
 Insurance
 Personal financial
How many banking services you have utilised?
 Loan

70.  Mutual fund
 Insurance
 Person financial
Have you taken any loan from bank?
 Yes
 No
Yes, then which bank?
 SBI
 Co-operativebank
 BOI
 Other _______________________
Which types of loan?
 Housing Loan
 Vehicle Loan
 Agriculture Loan
 Education Loan
 Industrial loan
Which are the other banks you have referred before taking any loan?
 SBI
 HDFC
 BOI

71.  Other _____________
What are the schemes attracts you to take loan from particular bank?
 EMI
 Low interest rate
 Security
 Term duration
Sources from where you come to know about scheme provided in loan?
 News paper
 T.V.
 Personal calling
Are you aware about COMMERCIAL CO-OPERATIVE BANK LTD.?
 Yes
 No
Are you interested in commercial co-operative bank ltd.?
 Yes
 No

73. BIBILIOGRAPHY
BIBILIOGRAPHY
 Bhattacharya k.m. & agarwal O.P. banking & finance, Himalaya
publishing house, new Delhi.
 Chaudhary C.M. recent trends in Indian banking, sublime
publication, Jaipur.

74.  Companies final report
 www.askme.com