Agriculture Credit Delivery System
A Study on United Bank of India
AJIT KUMAR PALLEI
REGD. NO. 130402MBR010
ABOUT THE ORGANIZATION
United Bank of India (UBI) is one of the 14 major banks which were nationalized on July 19,
1969. Its predecessor the United Bank of India Ltd., was formed in 1950 with the mixture of four banks
viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank
Ltd. (1922) and Hooghly Bank Ltd. (1932). After nationalisation, the Bank expanded its branch network
in a big way and actively participated in the developmental activities, particularly in the rural and semi-
urban areas in conformity with the objectives of nationalisation. In recognition of the role played by the
Bank, it was designated as Lead Bank in several districts and at present it is the Lead Bank in 30
districts in the States of West Bengal, Assam, Manipur and Tripura. The Bank is also the Convener of
the State Level Bankers' Committees (SLBC) for the States of West Bengal and Tripura.
UBI has sponsored 4 Regional Rural Banks (RRB) one each in West Bengal, Assam, Manipur
and Tripura. These four RRBs together have over 1000 branches. Operations of all the branches have
since been computerized and Electronic Fund Transfer System came to be implemented in the Bank's
branches across the country. The Bank has ATMs all over the country and customers can use United
International Debit Card at all VISA ATMs across the globe.
Agriculture Credit Delivery System is not effective at United Bank of India, Baripada Branch.
REVIEW OF LITERATURE
Agriculture credit is a credit financing vehicle, such as a loan, banker’s acceptance or letter of
credit that is designed specifically for agriculture producers. These types of financing are adapted to the
specific financial needs of farmers, which are determined by planting, harvesting and marketing cycle.
Short term credit finances operating expenses, intermediate-term credit is used for farm machinery and
long term credit is used for real estate financing.
For agricultural development, credit is an important input which ensures adequate working
capital as well as infrastructural development. Adequate credit increases the agricultural output.
Agricultural credit and agricultural development goes by hand in hand, hence the farmer should be
provided adequate and cheap credit. It suggested that without cheap credit is not possible for small and
marginal farmers to survive. Rural credit was constituted by RBI to accelerate the flow of credit to the
agricultural sector. It is observed that the government of India examined the flow of agricultural credit
and related issues in consultation with RBI, NABARD and announced the farm credit package to ensure
doubling the flow of agricultural credit in the next three years more particularly to ensure 30 percent
increase over the previous year.
The contribution of formal lending organization to credit availability to small farmers is
insignificant. Yet these farmers cannot do without credit. To fill the gap, many of these farmers support
informal credit associations. From the last report, 51% of farmers obtain credit from United Bank of
India. Reasons given to this reliance are many.
Lack of rural bank in village area.
Distance from their home to loan office.
Time gap between loan application and disbursement from formal sources.
OBJECTIVES OF THE STUDY
To know how United Bank of India sanction agriculture loan at Baripada Branch.
To analyze the problems of United Bank of India at Baripada branch in financing agriculture
To know the employees behavior towards customers at the Bank for agriculture loan borrowers.
SCOPE OF THE STUDY
The study is confined only to the agriculture fiancé provided to the farmers by the United Bank
of India at Baripada Branch. The period of this study is limited to two months i.e. 15th April to 14th
June, 2014. This obviously helps to study in details the impact of the United Bank of India at Baripada
Branch. It is also felt that this period of 2 months or 8 weeks would do well to understand the
performance of the United Bank of India.
Bank FarmersLoan Money Investment
Bank provide loan to the Farmers and Farmer make its proper investment in their agriculture
field. The farmer may gain income or suffered from loss. If they get income then their standard of
living should good and they are able to repay their loan with interest. If they bear loss then it is go to the
NPA account of the Bank.
TYPES OF DATA REQUIRED
Qualitative Data will be required for this project.
SOURCES AND METHOD OF DATA COLLECTION
Data collection is the key part of project work. There are two types of data
collection, first is a primary source of data collection and second is a secondary source of
Primary Data – It will be collect through my own observation, by making an
informal interview of employees in the organization and also making formal
interview of customers with a set of structured questionnaires.
Secondary Data – It will be collect from Internet, Textbooks and Magazines.
TOOLS & TECHNIQUES
Sampling Technique - Simple Random Sampling.
Sample size - 75 (both Customers and Employees),
Sampling Area - Baripada,
From data we will be found about customer’s preference, reason behind less preference towards
agriculture loan at the branch, customers services, documentation formality, after sale services, etc.
Loss Income Standard of Living
Data will be presented in a tabular form in this project.
SCHEDULE OF ACTIVITIES
Week (Start from 15th
April to 14th
1 2 3 4 5 6 7 8
Signature of the Student Signature of the Guide