Report on the Co-operative Bank of Rajkot Ltd (Raj Bank

A REPORT ON
THE CO-OPERATIVE BANK
OF RAJKOT LTD.
(RAJ BANK)

Submitted To :: -
SAURASHTRA UNIVERSITY

Submitted By :: -
LIMBASHIYA CHIRAG G.
(S.Y. B.B.A)

Guidance :: -
MR. NIRAJ PANDYA

Academic Year :: -
2005-2006

College :: -
R.P.BHALODIA COLLEGE
RAJKOT.

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PREFACE

Practical training is the part of our study in B.B.A. it is

compulsory for each student to take training for 15 days in any

service sector and prepare the project report on that service sector.

The training has been undergone at “THE CO-OPERATIVE

BANK OF RAJKOT LTD.” for the knowledge of practical study of

unit. This report contains the true knowledge and all the aspect

over gone in the practical. It covers all the various department like

marketing department, financial department and personnel

department.

“THE CO-OPERATIVE BANK OF RAJKOT LTD.”

“Sahkar Sarita” Panchanath Road, Rajkot – 360 001. Phone :

(0281) 2224120 / 2234733 / 2233155. Fax : (0281) 2236682.

E–mail : raj bank.

I have prepared the report of “THE CO-OPERATIVE BANK

OF RAJKOT LTD.” on the basic of information, which I collected

from various department of the company. I got all the information,

which I wanted from this company.

DATE :: - ___________
(2)

PLACE ::- ___________

(SIGNATURE)

(LIMBASHIYA CHIRAG G.)

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ACKNOWLEDGEMENT
The preparation of the report is my own work, but I have

taken help from many persons. I am thankful to all those persons

who helped me in activity out this work.

I express my deepest of gratitude the manager of “THE CO-

OPERATIVE BANK OF RAJKOT LTD.” and all the members

who provided all the necessary information.

He gives me grate pleasure in thanking Mr. NIRAJ

PANDYA who helped me out in my work. Without him ever ready

help, whole hearted guidance, never ending encouragement and

enthusiasm. It was difficult to bring this report to its present form.

I would be failing my duty if I will not mention thanks to family

members, relatives and friends to helping me throughout.

DATE :: - ___________

PLACE ::- ___________

(SIGNATURE)

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DECLARATION
I, the undersigned LIMBASHIYA CHIRAG G. student of

S.Y.B.B.A. from the Shri R.P.BHALODIA COLLEGE of

Commerce & Business management & Computer studies, declare

that this project report is prepared by me. I had taken a help of my

college and professor for the purpose of guidance only and to add

that, myself prepare this report.

DATE :: - ___________

PLACE ::- ___________

(SIGNATURE)


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CONTENTS
• Preface 2

• Acknowledgement 3

• Declaration 4

• Banking Sector In India 9

• General Information Of Co-Op. Banks 11 -
19
 Introduction 12

 Definition Of Co-Operative 13

 Principles & Characteristics 14

 Types Of Co-Operative Bank 16

 Role Of Co-Operative Bank 18

 Registration & Licensing 19

• RAJ BANK At Glance 20 -
32
 Introduction 21

 Corporate Mission 22

 The Executive Committee 23

 Branch Network & Structure 24

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 Awards & Accolades 29

 Corporate Governance & RAJ BANK 30

 Relationship Management 32

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• Services At The RAJ BANK 34 -
52
 Introduction 35

 Depository Services 36 - 42

 Current Deposit 36

 Saving Deposit 38

 Term Deposit 40

 Recurring Deposit 41

 Children Deposit 42

 Advance Services 43 - 49

 Business Loan 43

 Medical Equipment Loan 44

 Term Loan 44

 Mortgage Loan 45

 Secured Overdraft 45

 Clean Overdraft 46

 Personal Loan 46

 Vehicle Loan 47

 Loan against NSC / KVP / LIC. 48

 Home Loan 49
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 Other Services 50 - 52

 Safe Deposit Vault 50

 Cash – Card Facility 51

 ATM Facility 52

 Cheques Depository Service 52

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• H. R. M. At The RAJ BANK 53 -
63
 Introduction 54

 Human Resource Policies & Program 55

 Recruitment 57

 Selection 58

 Orientation & Placement 59

 Employee Remuneration 60

 Training & Development 62

 Promotion & Transfer 63

• Marketing At The RAJ BANK 65 - 68
 Introduction 66

 Promotional Activities 67

 Marketing Research & Information 68

• Finance Management At The RAJ BANK 69 - 81
 Introduction 70

 Financial Planning 71

 Capital Structure Of The RAJ BANK 72

 Capitalization 73

 Cash Management 74

 Ratio Analysis 75

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 Finance Information 76

 Progress Report 77

 NPA & Recovery Management 79

 Risk Management 81

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• S. W. O. T. Analysis 83
• Future Plan 86
• Suggestion 88
• Conclusion 90
• Bibliography 92

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BANKING SECTOR
IN INDIA

The importance of banking as the nerve sector of economic

development can not 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. Ti was

the time when the dwellers of city alone could enjoy their services.

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,

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students & to all other sections of the society. Thus they accelerate

the economic growth of a country & steer the wheel of the economy

towards it’s goal of “Self reliance in all fields.” Hence

today banking sector has become the lifeline of the economy.

In present age in India there are many banks including

foreign banks, public sector, private sector, commercial banks & co-

operative banks.

General
Informati
on of
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Co-
Operative
Banks

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INTRODUCTION
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. And today co-operative banks have started verities of

services with different technologies. Once the Mahatma

Gandhiji has remarked that “there is sweetness in co-
operation; 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

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grown in all over the world, with globalization of the world they have

also started to implement new technologies & various management

tools. Now, they are in same market with all the other banks. So, by

this way the co-operative banks are in the key position in the

economy.

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DEFINITION OF
CO-OPERATION

Co-operation 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-operation 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.”

- C. R. FAY

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PRINCIPLE &
CHARACTERISTICS

Careful analyses of the above definitions will reveal the

following principles & characteristics of co-operative organization.

 VOLUNTARY ASSOCIATION ::-

Co-operative organization is purely a voluntary association if

individual who join together for betterment of their economic

interest through collective efforts. A member is at liberty to leave

the organization at any time & withdrawal his capital by giving due

notice. But it should be remembered that a member is not allowed

to transfer his shares to another person as found in the company

organization.

 OPEN MEMBERSHIP ::-

Membership of co-operative organization is open to all

irrespective of religion caste, colour, creed, political affiliations

belief & status to which a person belongs. The membership fees &

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the entrance fees are kept relatively low so as to enable the

economically weak to become the members.

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 EQUAL VOTING RIGHTS ::-

Equality is the quintessence of co-operative organization.

Members have equal voice in the management of it’s affairs with

the underlying principle “ ONE FOR ONE VOTE .“

 SERVICE MOTIVE ::-

It is mainly intended to goods first to it’s members & then to

outsiders at profit the primary aim of any co-operative organization

is to render service to its member. So these are the primary motive

or principles. There are other principles, co-operative organization

has to follow those principles like state control, democratic

organization etc.

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TYPES OF
CO-OPERATIVE BANKS
There are mainly three types of co-operative banks in

India.
• State co-operative banks

• Central co-operative banks

• Urban co-operative banks

 STATE CO-OPERATIVE BANKS ::-

These banks are also known as apex bank & 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.

 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

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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.

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 URBAN CO-OPERATIVE BANKS ::-

Urban co-operative 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 today they have

started playing a significant role in rural upliftment. They are in tune

with the government policies & program.

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ROLE OF
CO-OPERATIVE BANKS

Now-a-days 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 members & 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.

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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 required for obtaining license.

Government assistant in the form of share capital contribution for

such new banks may be equal to that collected by members.

(30)

These banks derive their funds for working partly through

share capital contributed 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.

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INTRODUCTION

The co-operative bank of Rajkot ltd. popularly known as Raj

bank is established on 25 - 11 – 1980 under the strong, effective

leader ship of one of the national co-operative hero honor Shri

Ramnikbhai Dhami with the intention of survive the common man.

The local intensity of the bank in it’s customer centric

approach, hassle free execution of the decision & technologies are

their main difference from commercial banks, also high level of

commitment at all levels of management & self committed ground

level staff makes them different from other commercial banks.

At present Raj bank has achieved a key position in the

market of saurashtra. It has 11 branch in all over Saurashtra

including main branch with the advanced technologies and

educated staff, as it it said that “In the emerging competitive

business environment Co-operative banks who adhere to strict

Financial discipline. Only will survive” On this basis at present Raj

bank is becoming more prestigious in the banking sector.

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CORPORATE MISSION

• Survive to the common man.

• Enhance the value of share holders.

• Emerge as a symbol of public trust & confidence by

creating a positive image.

• Maintain excellence in operation & management by

bringing in transparency & integrity.

• Develop & motivate human resource there by cultivating

professional culture in the banking operation.

• Ensure speedy & satisfactory customer services through

continuous product innovation & aggressive marketing

strategies.

• And the last but not least that is….

• “To assist the weaker section of the society” Is the primary

motto of the Raj Bank.

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THE EXECUTIVE
COMMITTEE

Designatio Occupati
Sr. Name
n on
1 Chair Man Ramnikbhai Sejpal Industrialist

2 Vice Chair Man Bhanjibhai Patel Industrialist

3 Managing Director Ramnicbhai Dhami Advocate

Joint Managing ------
4 Kamalbhai Dhami
Director

Satyaprakash
5 General Manager ------
Khokhara

6 Director Kiritbhai Kamdar Architect

7 Director Manubhai Nasit Industrialist

8 Director Manharbhai Shah Businessman

9 Director Chandubhai Pamphar Charted Eng.

10 Director Jamnadas Faldu Industrialist

Chandrakantbhai
11 Director Industrialist
Patel

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12 Director Govindbhai Khunt Businessman

13 Director Dr. Vallabhbhai Hirani Doctor

14 Director Gopalbhai Karia Businessman

15 Director Shsikantbhai Maheta Builder

16 Director Shirishbhai Dhruv Engineer

17 Director Madhusudan Donga Industrialist

18 Director Muljibhai Chauhan Govt. Contractor

19 Director Bakulbhai Zalavadia C. A.

20 Director Lilaben Dhami Social Worker

21 Director Arunaben Chudasama Social Worker

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BRANCH NETWORK &
STRUCTURE

1 Panchnath Road Branch ( With ATM)
“Sahkar Sarita” Panchnath Road Rajkot – 1.

Phone : 2233722, 2234454

At Your Service From : 25–11–1980

( RBI Licence No. ACD.Gj.219 Dt :- 12–08–1980)

Mr. D. M. Dave Manager

Mr. S. K. Makwana Dy. Manager

Mr. N. S. Patel Dy. Manager

Mr. S. M. Kalyani Asst. Manager

Mr. K. D. Dalsania Asst. Manager

2 Dhebarbhai Road Branch

Near Trikon Baug, Rajkot – 360 001.

Phone : (0281) 2236766, 2227948

At Your Service From : 10-04–1989

( RBI Licence No. UBD.BL 1937 Dt. 26–10–87)

Mr. B. P. Vekaria Manager

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Mr. U.S. Padalia Asst. Manager

Mr. J. C. Solanki Asst. Manager

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3 Saurashtra Uni. Road Branch (With ATM)

Saurashtra Uni. Road, Rajkot – 360005

Phone : (0281) 2573600, 2573601

At Your Service From : 05–04–1993.

( RBI Licence No. UBD. AH/4 Dt. 12–08–1994)

Mr. R. S. Boda Manager

Mr. V. N. Maheta Asst. Manager

Mr. N. R. Boda Asst. Manager

Mr. V. H. Chavda Asst. Manager

4 Jasdan Branch
Jeram Plot, Chitalia Kuva Road,

Jasdan – 360050. Phone : (02821) 220830.

At Your Service From : 16–01–1996.

( RBI Licence No. UBD. AH/95 Dt : 09-08-1994)

Mr. H. T. Joshi Asst. Manager

Mr. Z. P. Kalkani Asst. Manager

5 Morvi Branch

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1, Kalika Plot, Ravapar Road,

Morvi – 363641, Phone : (02822) 230920.

At Your Service From : 05-06-1995


Mr. S. V. Patel Dy. Manager

Mr. M. C. Vadaviya Asst. Manager

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6 Jetpur Branch (With ATM)

Kanakai Plot, Jetpur -360 370

Phone : (02823) 223151.



Mr. M. K. Sheth Dy. Manager

Mr. V. K. Siddhpara Asst. Manager

7 Upleta Branch
Raj Marg, Upleta – 360 490

Phone : (02826) 222955.



Mr. S. M. Virapara Asst. Manager

Mr. R. J. Lunagaria Asst. Manager

8 Gondal Branch

Kailash Complex, Kailash Baug,

Gondal – 360 311. Phone : (02825) 223143

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At Your Service From : 15-01-1999.


Mr. H. J. Pipariya Asst. Manager

Mr. R. M. Chuhan Asst. Manager

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9 Sahakar Society Area Branch
Hasan Wadi Main Road, Nr. Trishul Chowk,

Rajkot – 360 002. Phone : (0281) 2363536



Mr. K. R. Viradia Dy. Manager

10 Raiya Raod Branch

Omkar Towers, Opp. Nirmala School.

Rajkot -7. Phone : (0281) 2589494.



Mr. D. V. Maheta Manager

11 Junaghar Branch (With ATM)

“Sardar Bhavan” Maharshi Arvind Marg,

Junaghar – 362 001. Phone : (0285) 2621313



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Mr. Sarfaraz Munshi Asst. Manager

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AWARDS & ACCOLADES

1) “Zero NPA” excellence bank award given by

Mr. Ghanshyambhai Amin

2) Sahkar Ratna award to managing director

Mr. Ramnikbhai Dhami given By

Mr. Jayrambhai patel & Mr. Vallabhbhai Kathiriya

3) From beginning Raj bank has been awarding

As Audit calls “A” By district register.

(46)

CORPORATE
GOVERNANCE & RAJ
BANK

As Co-operative banks come under common law but then

also the banks have to follow such guidelines of the RBI. The

prudential measures have been stipulated by RBI for the urban co-

operative banks according to which the position of Raj Bank is as

follow.

Prudential norms of RBI Raj Banks position

Capital adequacy ratio is to Raj Bank has maintain this

Maintain at 9%. Ratio at more then 31%.

Prohibition on advance Raj Bank has never made

Being made to share booker. Such advances.

Prohibition on advance Raj Bank has never made

against shares & debentures. Such advances.

Maxi. 2% debt can be Raj Bank has never borrowed

Obtain from call money any debt from call money
(47)

Market (This 2% will be on market from the date of

the deposit of the P. Y.) incorporation.

(48)

Prohibition to keep fix deposit Raj Bank has never maintain-

With other urban co-op. bank. Ed fix deposit with any other

Urban co-op. bank.

It is compulsory for non- Raj Bank’s investment in

Scheduled co-op. bank such type of security is

To invest 15% of NDTL in more then 25%.

Govt. approved securities.

Scheduled co-op. banks Inspite of Raj Bank is

should compulsorily invest non-scheduled bank, it's

25% in govt. & other investment in such

approved govt. securities. Securities are more then 25%.

(49)

RELATION SHIP
MANAGEMENT

The importance of relationship can not be measurable in our

life. In our life we have to maintain such relation, we can not across

it. In earlier we use to call it maintenance for relation but now a

days it is being called as relationship management. Without

maintaining relation, firm can not go further or can not get

development. Because without customer or employee, who will give

importance to the organization. But an organization needs to keep

its eye on every side and need to manage every relation. For every

organization there are main three relations such as customer

relation, employee relation and social relation.

 EMPLOYEE RELATION

To provide best service to customer it would be difficult task

for Raj bank if there would not proper human resource

management. In success of any organization, relationship between

employee and employee, employee and management employee

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and labours etc. should be good. Raj bank takes care it’s employee

just like a family member. And not only looks after their intelligence

but also takes care of there emotional and spiritual quotient. Bank

has maintain healthy relation with there employee, bank also tries

to satisfied there need.

(51)

 SOCIAL RELATION

Bank has maintained health relation with society also.

Society consist of other bank, government, businessman etc. bank

has to maintain good relation with societal factor. So by this way for

Raj bank relationship management is as important as other

management and as a result of good relationship management,

today bank has very strong market position and goodwill in society.

 CUSTOMER RELATION

Raj bank believes that customer satisfaction is it’s best

reward by providing best services so customer is a king for Raj

bank. Bank always tries to maintain healthy relation with customer.

(52)

Raj
Bank

INTRODUCTION
It was a time when a function of the banks limited to the

collection saving from the public & lending to the people who are in

of money. But in modern age, now it’s not like that , in modern time

(54)

banks have become the important part of colony due to the only

expansion in the function. One reason for development in banking

function is that the developing of the market means today’s

competition & to maintain position in the market banks they have

to develop their services. The modern function or the services

provided by the banks are as follows.

• To collect spare funds from people’s saving & pay them interest.
• To make these funds available to the businessman & industrialist
as loan & advance. They charge interest from them.

• They also help in assisting international trade by arranging
exchange of currency to another one.

• Banks render services for the welfare & development of weaker
section of the society, they help in setting up small industries,

cottage etc.

• Banks help farmer to buy tractors & other agricultural
equipments, middle class people to buy home appliances like

T. V. & provide finance for house.

In RAJ Bank out of these services most of services are being

served. Not only that but also they are providing ATM facility, Cash

card facility, Demand draft facility & many other services.

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CURRENT DEPOSIT
Current account refers to regularity of transecting in account

with in banking hours on all working day. The banker’s liability in

this regard is to honor all the demand of the customer to the extent

to which his account shows a credit balance. It is because of this

obligation current account deposit is known as bankers demand

liability & in order to fulfill this liability they keeps sufficient cash

ready every moment.

A current account is an account which is generally opened by

businessmen, companies, institutes, corporations, industrialists

etc.

• Who have huge working capital in their hand.

• Who are interested in keeping money safe.

• Who transect with their banker daily.

• Who received and make payment usually through cheques.

• Who utilize the agency services of the banker frequently

• Who are engaged in large scale business activity, social

services and government activities.

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At present in RAJ BANK the
condition of current account is as
under.

No. of depositors total deposit amt. % of total deposit
10,748 30, 32, 78,368.52 10.59%

(57)

Features of the current account And
Facilities provided to the current
account holder.

• Easy Procedures for account opening.
• 24 hours banking facility through their ATM centers.
• Personalized services & special facility by the way of telephonic
inquiry.

• Regular bank statement is provided at home through post or E-
mail.

• Special facility of over draft cleans O.D. & secured O.D.

(58)

SAVING DEPOSIT

Saving deposit account is an ideal account or those who

2have money to save but who can not advantageously invest them

any where else as their saving are not of much significance to the

capital market because their saving are too small. This amount is

therefore meant of smaller saver. The account is therefore

encourages small saving and tries to forge a saving habit in the

general public. The attitude to save is important which this account

tries to create and thus mobilize such small savings for greater

social good saving deposits account is for that section of society

and put to fruitful utilization.

 Features of the saving deposit
• Restriction on with drawl of amount.

• Restriction on deposit of amount.

• Payment of interest.

condition of saving deposit is as
follows.

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50,314 71,23,43,463.83 24.87%

(60)

Extra features to the saving account
holder of the Raj Bank.
• Attractive Rate of interest (3.5%)

• Easy procedure for account opening.

• 24 hours banking facility through their ATM centers.

• Personalized services & special facility by the way of

telephonic inquiry.

• Regular bank statement is provided at home through post or

E-mail.

• Attractive computerized passbook.

• No charges for saving account holder.

(61)

TERM DEPOSIT

This account attracts those customers who have money

invest for a longer period but do not want to take much of risk.

Such person prefers to deposit with commercial banks for a

specified period at a specified rate of interest. The interest rate

varies from one period to another. A deposit of 15 days attracts a

smaller rate of interest and deposits for 5 or more years. The

highest rate of interest. The period for which deposits are to be

made depends upon the depositor himself. However, once a

decision is taken by the depositor any money deposit usually he is

not allowed to withdrawal the same before the interest earned till

that date or accepts a lower rate of interest than stipulated at the

time of deposits.

condition of the term deposits is as
under.
77,750 182,84,67,000.00 63.84%

 Interest rate structure on fixed
deposits.
(62)

No. of % of total
Between Total deposit amt.
depositors deposit
6% to 8% 40,626 49,70,61,053.63 17.35%
8% to 10% 17,997 68,02,61,362.86 23.75%
10% to 12% 15,365 50,57,25,251.47 17.66%
above 12% 3,755 14,54,19,938.10 5.08%

(63)

.

RECURRING DEPOSIT

To encourage regular saving habits in the depositing public

the bank in the country provide an opportunity to them to save

regularly. According to their capacity and need and earn more than

what saving deposit accounts offers to them. The following are the

main features of the recurring deposits.

• The deposits are made every month of fixed amount say

Rs. 5,10,15,25 and so on.

• The deposit is made for fixed period say 6,

12,24,36,48,60,72,84, months and so on.

• The account can be transfer from one bank to another in the

country on request by customer.

• This account can be opened by every one competent to enter

in to contract including the minor one.

• A passbook is supplied to the customer and entry is made

there in every month after every deposit.

• The account attract higher rate of interest.

• The customer is allowed to raise loan against his recurring

deposit account to the maximum limit of 75% of the deposit

he has made till the date of raising the loan.

(64)

As far as concerned with recurring deposits at the Raj Bank,

than these are the features are the provided to the recurring

deposit holders.

• Easy and simple account opening procedure.

• Speedy and timely services.

• Account can be opened with any convenient amount,

• Attractive rate or interest and special rate for senior

citizenship.

CHILDREN DEPOSIT

The main purpose of such account is to develop a habit of

saving in student community. The main features of this account are

as follows.

• The student can deposit a minimum of paisa.

• The bank’s branch is usually operated in the school premises.

• The student may withdrawal the money as and when they

choose to do so.

• On a balance of Rs.5 and above interest at saving deposit

account rate is allowed.

(65)

Features of the children deposit
scheme at the Raj Bank.

• A special scheme for school and college students.

• Attractive rate of interest.

• Special gift will be provided to them on extra ordinary

performance in academic and other curriculum activities.

• No withdrawal will be allowed from such account point to

maturity.

• Attractive passbook will be provided with their printed name

on it.

(66)

BUSINESS LOAN

Any kind of traders, businessmen or a person, who is going to

start a new business, can get business loan. Bank grants business

loan for the purpose of fulfillment or short term working capital

need in the business.

Bank grants this type of loan Rs. 2 lacs to maximum 25 lacs.

Bank charges rate of interest as under.

CREDIT RATING ROI
Prime BLPR + 00.00%

AAA BLPR + 00.25%

AA BLPR + 01.25%

A BLPR + 02.25%

 BPLR 10.75% w.e.g. 01-08-2004

• A person who is gating business loan he has to mortgage

land, building or any other fixed assets.

• Document of properties have to be given to the bank by a

person. Bank takes all these documents as a security.

(67)

• A person has to give reference of two people who are

depositor in the Raj Bank as guarantors.

 NECESSARY DOCUMENTS ARE …

Application form, other documents specified in the

application form, if applicant want mortgage than he need to

submit the whole file of that assets valuation report of that assets.

Proof of guarantor’s income (one time only).

MEDICAL
EQUIPMENT LOAN
• Any registered medical practitioners whose age should be 25

years to 55 years and should have at least one year

experience.

• Purpose of this loan is to build a new clinic, to purchase other

medical equipments or any property for clinic.

• Bank grants this loan up to 3 crores.

• Rate of interest charged on this loan is 10% to 11%.

• As a security a person has to mortgage any fixed assets

whose reliable market value is enough in proportion of loan.

• Loan repayment period is maximum 6 years.

(68)

TERM LOAN
It is one of the major sources of debt finance for a long term

project. Term loans are generally repayable in more than a year but

less than 10 years. These loans are offered by all Indian financial

institutions. Term loans are generally secured through a first

mortgage or by way of deposit of title deeds of immovable

properties.

• Any business operator for the purpose of purchase necessary

building, build a building or purchase a new machinery.

• For the purpose of this loan is to invest in long term capital.

• Bank grants these loan 2 lacs to 25 lacs.

• Rate of interest charged on this loan is 10% to 13%.


whose reliable market value is enough in proportion of loan.

MORTGAGE LOAN
• Any kind or traders, businessmen or an industrialist can get

mortgage loan. Bank grants mortgage loan for the any

purpose.

• Bank grants this type of loan Rs. 50,000 to maximum 10

lacs. Bank charges rate of interest on this loan is 12.5% to

13.5%.

(69)

• A person who is gating mortgage loan he has to mortgage

land, building or any other fixed assets.

• Document of properties have to be given to the bank by a

person.



• Loan repayment period is 3 years to 7 years.

SECURED OVERDRAFT
• Any kind of traders, businessmen, personally, professional &

industrialist can get secured over draft.

• Bank grants secured overdraft for the purpose of fulfillment

or short term working capital need in the business.

• Bank grants this type of over draft Rs. 1 lacs to maximum

100 lacs. Bank charged interest on this over draft is 10.75%

to 14%.


whose reliable market value is enough in proportion of over

draft.



(70)

CLEAN OVER DRAFT

• Any kind of traders, businessmen, personally, professional &

industrialist can get clean over draft.

• Bank grants secured overdraft for the purpose of fulfillment

or short term working capital need in the business.

• Bank grants this type of over draft Rs.50, 000.

• Bank charged interest on this over draft is 12%.


whose reliable market value is enough in proportion of over

draft.



PERSONAL LOAN
• Any localize person can get this loan.

• Bank grants personal loan for the purpose of purchase fridge,

T. V., washing machine or any other thing which can be useful

for home management.

• Bank grants this type of loan Rs. 10,000 to maximum 50,000

or 70% to 90% of the quotation price of the product.

• Bank charges rate of interest on this loan is 11%.

(71)

• Applicants need to make such documents of purchase

products of purchased product in favor of the bank as a

security.




(72)

VEHICLE LOAN

• Any kind of traders, businessmen, personally, professional

or any person can get this type of loan.

• Bank grants personal loan for the purpose of purchase old

or new vehicle for personal or business use.

• Bank grants this type of loan Rs. 15,000 to maximum

10, 00,000 or 70% to 90% of the quotation price of the

product.

• Bank charges rate of interest on this loan is 11%.

• Applicants need to make such documents of purchased

vehicle in favor of the bank & in RTO applicant need to

register as a hire purchased vehicle as a security.




• Quotation of vehicle, proof of guarantor’s income (one

time only), RTO certificate & other documents are required

with the application form.

(73)

LOAN AGAINST
NSC, KVP, LIC.

• Any person who should have share certificate on his own name
or any LIC policy holder.

• Bank grants loan for any purpose.
• Bank grants this type of loan 70% to 90% of the price of the
NSC, KVP, LIC.

• Bank charges rate of interest on this loan is 11.50%.
• Applicant need to give share certificate or LIC policy.
• Applicant has to repayment this loan within the due date of that
certificate or policy.

• Application form, other documents specified in the application
form and if an applicant has to give Share certificate or policy

than need to sign in favor of the bank.

(74)

.

HOME LOAN

• Any localize person can get this loan.
• Bank grants personal loan for the purpose of purchase or to
build home.

• Bank grants this type of loan Rs. 15,000 to maximum
15,00,000 or 70% to 90% of the price of the home.

• Bank charges rate of interest on this loan is 11.50%.
• Applicants need to make such documents of purchased home in
favor of the bank & bank takes all the documents as a

security.

• A person has to give reference of two people who are depositor
in the Raj Bank as guarantors.

• Application form, other documents specified in the application
form and if an applicant want to mortgage any assets than he

need to give whole file of that assets and title report through

advocate approved by bank only proof of guarantor’s income

(one time only).

(75)

SAFE DEPOSIT VAULT

 Safe Deposit Vault (locker
facility)

At Raj bank there is a proper locker department at ground

floor here locker facility has been providing to the customer.

Customer can keep all the ornaments, important documents and

many other papers and many things. For every bank this facility is

become just like primary function and for providing best customer

service Raj bank is managing this service too.

Any shareholder or depositor can easily get their personal

locker of bank. There are mainly three types of lockers at Raj bank

Small size locker, Medium size locker, and large size locker. And for

to maintain best services Raj bank has different department and

enough staff for locker department. Different charges and deposits

for different locker are as under.

Types of
locker Yearly rent Deposit
Small 200 5000
Medium 250 10000

(76)

Large 300 15000

(77)

And for the management of this
locker department they are mainly
follow these activities.

• They have locker attendance register in which the identification,
address, full name and signature of locker holder are being

maintained.

• Before any locker holder open his/her personal locker the staff
member has been verifying the signature of that parson and

than they allow him to open locker.

• They are also maintained time register in which the entry time
and exist time a locker holder is being written. So this is very

essential function for Raj Bank.

CASH CARD FACILITY

Cash card facilities totally new and plastic product is started

by only Raj bank among the nation by cash card any customer can

(78)

every with drawl amount up to Rs. 15000 from ATMs by cash card.

There are no charges for cash card and in also one silent feature is

there is no minimum balance require for cash card system. It is a

unique facility of Co-Operative bank of Rajkot ltd. Cash card is given

instead of token for the payment of cheques.

(79)

ATM FACILITY

ATM has given a new dimension to banking by giving rise to

self service banking. Customer have long been constrained by

conventional banking services which have been characterized

generally by fixed location and fixed timing on the other hand.

Customers not desiring to keep much money on them expect their

money to be available to them. Whenever and wherever they need

money, 24 hours banking services is available for any time. ATM

can be used for withdrawal of cash. For Raj bank it is a matter of

great proud that it is pioneer in introducing ATM in the entire

Saurashtra region in Co-Operative banking sector. At present Raj

bank has four ATM. By this ATMs any customer can easily

withdrawal maximum 10000 per day.

CHEQUE DEPOSITORY
SERVICE

(80)

For the purpose of providing best customer service with

advanced technologies to their customer, Raj bank has also started

Cheques depository service through cheques depository machine.

This service provided to the customer 24 hours of 365 days. CDM
th
facility started on 17 July 2004 at main branch. Now any customer

can easily deposit cheques through CDM at any time and any day

without filling big slips and without standing in big queue.

(81)

Raj
Bank
INTRODUCTION

Human resources in any organization, be it public private of

Co-Operative constitute perhaps the most vital assets of that

organization. An organization will fail if its human resources are not

competent to execute the work assigned to them. There is no

getting away from fact that human resources represent a

subsystem which dominates all other sub system to the

organization.

(83)

Moreover, people are the only assets of an organization that

appreciate over a period of time while all the other assets

depreciate. The more an organization is investing in human

resources, the greater the return from the investment is likely to be

and it has been rightly pointed to in one of the books of inter

national Co-Operative alliance “The gains accruing out of structural

reforms can be best capitalized only it the personnel maintained by

the Co-Operative institution are in a position to execute the policies

effectively”. This implies the need and necessity of proficient and

capable human resources which is on e of the primary aims of ht

human resource management.

According to national institute of personnel management of

india “Personnel management is that part of management

concerned with people at work and with their relationship within the

organization it seeks to bring together men and women who make

u an enterprise enabling each to make his own best contribution to

it’s success both as an individual as a working group.”

(84)

H. R. POLICY AND
PROGRAMMES

A sound foundation for selection of the right kind of human

resources is laid with the formulation of sound human resources

policies. According to William R. Spiegel a human resources policy

can be defined as, “A body of principles and rules of conduct that

governs the enterprises in it’s relationship with it’s employees. Thus

the sound personnel policies set the tome for proper administration

of the personnel programmers, So as to achieve the objective of the

organization.

As Raj Bank is one of the leading Co-Operative bank in the

Co-Operative sector, though its performance is very good but than

also such policies for human resources they can not make by their

own. It has to follow the rules of policies given by the government

and RBI so in the matter of the personnel policies Raj Bank is

restricted to some level. Than also the bank have adopted a policy

of recruiting only CA and MBA for their management level for better

management. So, by this way where they get chance they are

making or improving personnel policies at Raj Bank.

(85)

The next important stage in the selection process is the

human resource planning. “Planning applied in the field of

personnel” it is the comprehensive and on going process. Broadly

conceive human resource planning as Thomas H Patten Jr. states,

“Human resource planning is process by which an organization

ensures that it has right no. and kinds of people in the right place at

the right time doing the things which they are economically most

useful.”

In the Raj bank there is a very educated staff as it is

concerned with the human resource planning recently they has

adopted policy of selection only C.A. & M.B.A. For their human

resource has as far as concerned with the human resource

planning. There is no long term planning but at a time or

requirement of staff they used to recruit staff either out side or from

with in the firm through transfer or promotion.

(87)

RECRUITMENT

Among the function of human resource manager, one man

function is to procure best people for their organization, means

search of prospective employees to suit the job recruitment. A firm

has to pass through well and good recruitment process for having

best human resource this recruitment can be possible through

many sources. A firm can recruit proper candidate mainly through

two success recruitment sources these are as under.

Recruitment Sources
Internal sources External sources
1) Transfer 1) Advertisement

2) Promotion 2) Education institutes

3) Relative & friends 3) Placement agencies

4) Labours contractor

In case of Raj bank, the main source or recruitment is daily

news paper advertisement. They also recruit employees by transfer

and promotion. Generally as per the recruitment of the job they give

advertisement in newspaper and collect the pool of application.

(88)

SELECTION
Managing people is not easy but it can be made easier if you

make sure that you have selected the right people in the first place.

And also it said that “selection of people is easy but selection of

right people is difficult task.” The selection procedure is concerned

with securing relevant information about an applicant is secured.

The objective of selection process is to determine whether the

applicant meets the qualification for a specific job and to choose

the applicant who is most likely to perform well in that job.

Thus an effective selection program is a non random process

because those selected had been choose on the basis of the

assumption that they are likely to be “better” employees then those

who have been rejected. Selection process or activities typically

follow a standard pattern being with an initial screening of

applicant, interview and concluding with final employment decision.

The selection procedure of raj bank is quit simple. The stages of

including in the selection process are as follows.

New paper advertisement

Receipt of application

(89)

Screening

Arrangement and interview

Selection

Placement and confirmation

(90)

ORIENTATION
After the selection of employee, management of the firm has

to pass through such process. So new employee can be aware of

the atmosphere of the firm and also can be familiar with the other

employee. This process is called orientation or induction. In any

organization this process performs very vital role because this is the

only process which can create better environment in the

organization and a new comer can be aware about his working

condition, his area of responsibility and everything about

organization. Proper orientation process can be beneficial to both, a

new comer as well as organization.

PLACEMENT
Once an employee has been selected he should be placed on

a suitable job. Putting the right man at the right job is as important

as hiring the right person. Placement is a process of assigning a

specific job to each one of the selected candidates. It involves

assigning a specific rank of and responsibilities of an individual. It

implies matching requirement of a job with the qualification of a

candidate.

(91)

In other words, “placement is the determination of the job

which an accepted candidate is to be assigned and his assignment

to the job.” As Raj bank is very careful about this process. And one

thing is that, at the time of requirement only they hire new

employees. So hire it is specified that for which job they are

recruiting. After the final selection, they have been marking the job

of the new employee.

EMPLOYEE
REMUNERATION

Remuneration is the compensation an employee receives in

return for his or her contribution to the organization. Remuneration

occupies an important place in the life of an employee. Standard of

living of employee, states in the society, motivation, loyalty and

productivity depends upon the remuneration. For the employee

remuneration is significant because of its contribution to the cost of

production. For human resource management, remuneration is the

major function. The HR specialist has a difficult task of fixing wages

and wage differentials acceptable to employee and their leaders.

There are mainly 3 three components of employee remuneration.

These are as follows…..

(92)

1) Wages and salary, 2) Incentives and 3) Non monitory benefits.

As far as it is concerned with the Raj bank, there is a specific

policy of employee remuneration formed by RBI and govt., and it

self also. So and also for the management of employee

remuneration there is a specific administration department which

cares of wages and salary and all things about remuneration.

 WAGES & SALARY :: -

Wages represent Hourly rates of pay and, salary refers to the

monthly rate of pay irrespective of the number of hours put by an

employee. Wages and salaries are subject to annual increments

they differ from employee to employee and depend upon the nature

of job seniority and merit.

 INCENTIVES ::-

Incentives are also called ”payment by result” are paid in

addition to wages and salaries. Incentives depend upon

productivity, sales, profit or cost reduction efforts there are.

1) Individual incentive schemes and

2) Group incentive program

Individual incentive are applicable to specific employee are

applicable to specific employee performance. Where a given task

demands group effort for completion, incentives are paid to the
(93)

group as a whole. The amount is later divides among incentives

refer to variable rewards granted to the individual in terms of

changes in specific results in organizational setting besides wages

and salaries, employees are paid incentives depending upon their

performance. Incentives payment is quite substantial and is paid as

regularly as wages and salaries. The primary advantage of

incentives is the inducement and motivation of workers for higher

efficiency and grater output. It option schemes and the like

perquisites are offered to retain competent executives.

 NON MONITORY BENEFITS ::-

These include challenging job responsibilities. Recognition of

merit, growth prospects, competent supervision, comfortable

working condition and job sharing.

As far as Raj Bank is concerned that is specified department

who cares about employee remuneration. Apart from salaries they

are also provides bonus (one month salary) also provides provident

fund scheme and gratuity and also VRS scheme, group insurance

too.

(94)

TRAINING &
DEVELOPMENT
Training is the process of increasing the knowledge and skills

for doing a particular job. It is an organized procedure by which

people learn knowledge and skills for a definite purpose. The

purpose of training is basically to bridge the gap between job

requirement and present competence of an employee. Training is

aimed at improving the behavior and performance of a person. It is

a never ending or continuous process. In any organization their

should be proper training program to improve employee resources,

as well as organization development. Training involves helping an

individual learn how to perform his present job satisfactorily.

On the other hand development is long term education

process utilizing a systematic and organized procedure by which

managerial personnel learn conceptual and the critical knowledge

for general purpose. So in the any organization the importance of

the training and development is very vital, nobody can ignore it. As

far as it is a continuous process there. Raj bank is working with

advanced technologies. At every step better training and

development is required.

At present every employees of the firm are getting trained by

its own EDP department n advanced computer technologies. They

(95)

are also organizing internal seminar for improvement of the firm

and also they are sending their employees outside like

Gandhinagar, Ahmnedabad,Delhi, Pune and Mumbai to oo for the

better development. As it is banking firm there is continuous

training and development program organized by other banking firm

and association for improvement of whole banking sector in India.

PROMOTION
AND TRANSFER
Mobility and flexibility in the workforce are necessary to cope

with the changing requirement of an organization. Job changes

provide necessary flexibility, employees move from one job to

another one through transfer, promotion. So the importance of

employee movement in the organization in very important.

 Promotion:: -

Promotion refers to advancement of an employee to a higher

post carrying grater responsibilities higher status and better salary.

It is the upward movement of an employee in the organization’s

hierarchy to another job commanding grated authority higher status

and better working condition when an employees is assigned a

higher level job with more pay and powers he is said the promoted

(96)

promotion may be temporary or permanent depending upon the

needs of the organization so this is just like tool which can be

useful in two way one way it is a motivation second way it becomes

a source of recruitment from with in a organization so the

promotion in the organization is who is present as other activities in

case of the Raj bank as it is Co-Operative sector they have to follow

promotion policy of government is merit cum seniority in case of

promotion they are not independent too.

(97)

 Transfer: :-
A transfer refers to a horizontal or literal movement of an

employee from on a job to another in the same or organization with

out any significant change in status any pay. It has defined as “ A

literal shift causing movement of individual from one position to

another. Usually without involving any marked change in duties as

responsibility will needed of compensation. The need for transfer

may grid due to several reason transfer mane of which the following

objective.

• To meet organizational need

• To satisfy employee needs

• To better utilize employees

• To make the employee more versatile

• To adjust the work force

• To provide relief

• To punish employees.

The transfer is beneficial in many ways the benefits of the

transfer is as under

• Increase in productivity and effective need of the organization.
• Greater job satisfaction to employees
• Stabilize fluctuation work needs
• Improve employee skills

(98)

• Remedy for faulty placemen
• Develop employees for further promotions
• Avoid monotony and boredom.
So, the transfer is also important as far as concerned with

Raj bank there is no specific transfer policy but according to

requirement and for convenience of the employee they use to make

transfer.

(99)

Marketi
ng
Departme
nt
(10
0)

INTRODUCTION
Today, marketing is spread in every field of like hospitals,

services, goods even politics and many more. In banking sector too

the importance of marketing also can not measurable, still it has

not developed in public sector it is only limited to foreign banks and

private sector. The reason for success of foreign in India is only best

marketing efforts. Today in banking sector there is a cutthroat

competition among public sector, private sector and foreign bank.

Marketing is a human activity directs at satisfying the needs

and wants of customers, there are five stages of bank marketing

firstly marketing g is advertising, sales promotion and publicity,

secondly marketing is smiling and Co-friendly atmosphere, thirdly

marketing is innovation like the ATMs or cheques with drawls on

fixed deposits, fourthly marketing is positioning. When all banks

advertise and innovate, they look alike so, they should try to

position themselves differently, even through symbols, logos or

aggressive advertising so that the customer can distinguee

between one bank and another and finally marketing is analyzing,

planning and control.

(10
2)

At Raj bank though there is no specific marketing

department. for marketing of different services but providing vest

services to their customers and getting good customer satisfaction,

and doing such efforts of marketing like promotion activities they

are in directly getting benefits of the marketing. Today they are also

planning for such continuous marketing efforts. And with in the few

years they will have aggressive marketing department.

(10
3)

PROMOTIONAL ACTIVITIES

Promotion tools are also essential in the bank’s marketing

mix. We need personal selling in customer contact, development,

personal service. And so on. Similarly, bank marketing program

need advertising as mass communication tool. The bank is a

sponsor. It sends a message to prospective buyers (the audience)

by means of a medium (The carrier of the message). An

advertisement in bank marketing is a promise3 a promise of

satisfaction to prospects who buy or use the service offered by the

bank or who are willing to patronize the bank. Banks are using all

media of advertisement such as newspaper, radio television,

magazines etc., for advertising their services and for getting the

business. Bank marketing also uses sales promotion devices such

as point of purchase materials, advertising specialties (ball pens,

calendars, diaries, notes pads etc.) brochures and booklets

describing bank services, etc. a bank has also to use public relation

as mode of promotion to build up and maintain its bright image in

the community.

As far as it is concerned with promotion activity than Raj bank

is not doing any personal selling but bank is believe in very strong

goodwill and also best customer satisfaction they are using

advertising they are giving their advertisement in news paper like

(10
4)

Sandesh, Gujarat samachar etc. and also in banking magazine and

for publicity they are organizing such shows like recently they have

organized three bug shows. First in Morvi and second and third in

Rajkot with Sunidhi Chauhan and Anu Malik and second with great

Andnd Murti Guruma. By this way be using very simple and less

expenses tools of marketing like advertising and publicity. They are

getting goods response from society and for Raj bank work of work

of month is their best publicity.

(10
5)

MARKETING RESEARCH
AND INFORMATION
Good marketing decisions are not made in a vacuum. Hence,

even in bank marketing. We need marketing research and

information to enable bank executive to make sound decisions. The

increase in the use of marketing research in bank marketing is due

to two forces:

competition pressures to be right, and Customer –

orientation in marketing planning and program. Banks are now

establishing a separate marketing organization. Conduction

marketing research, setting up sales training program and adopting

sales promotion divides promotion devices to attach customer we

have special bank advertisement through radio. T.V. and

newspapers. Marketing research may be defines as “The scientific

and controlled process of gathering of none routing, marketing

information, helping management to solve marketing problems.”

As far as it concerned with the marketing research process at

Raj bank. They have been continuously doing such research from

beginning. But one positive point for marketing research is that they

not doing any big expenses for marketing research and for

(10
6)

executives. Bank’s staff member themselves goes to market and

gathers requited information or data. Such information or data they

are collection from direct RBI or other banks. So, by this way they

are getting benefits by using marketing research process.

(10
7)

Finance
Departme
nt
At
(10
8)

INTRODUCTION

Finance is the fuel of administration. Without adequate

financing no business enterprise can raise its potentials for growth

and success. And it would be worthwhile to recall what “Henry Ford”

once remarked “Money is an arm or leg. You either use it or lose it.”

This statement though apparently simple and quite meaningful, it

brings home the significance of money or finance. In the modern

money oriented economy finance is one of the basic foundations of

all kind of economic activities.

Finance management is indeed the key to successful

business operations. Without proper administration and effective

utilization of finance, no business enterprise can utilize it’s

potentials for growth and expansion. Organization and control of

these function is important for all types of business units. Specially

in public undertaking massive investment has so far been much

less productive, it is necessary to organize the finance functioning

such a manner that should help the business in achieving it’s basic

objective with minimum cost.

(11
0)

According to Hoagland “Financial management is concerned

mainly with such matter as how of business corporation raises it’s

finance and how it make use of that.”

(11
1)

FINANCIAL PLANNING

Planning is very necessary for the smooth running of the

business can not be carried on without planning. Planning means

deciding in advance what is to be done for each functional area of

management. The planning of each area should link to the

objectives of the organization. Financial planning means deciding in

advance the financial activities to be carried on to organization. So,

the basic purpose of financial planning is to make sure that

adequate funds are raised at minimum cost and they are used

widely. A proper planning of the business on one hand and to allow

a fair return to their contribution on the other.

Thus financial planning includes the
following …

1) Determination of financial objectives.

2) Formation of financial policy.

3) Development of financial procedure.

(11
2)

In Raj Bank, the financial planning has been done through

proper management in various areas like liquidity planning,

investment planning, profit planning, cash management etc.

(11
3)

CAPITAL STRUCTURE
OF THE RAJ BANK
Capital structure decision is yet another important area under

financial management. Capital structure refers to the mix or

proportion of firm’s permanent long term financing represented by

debt preference must ensure the maximization of wealth of

shareholders so even the capital structure decision must be taken

in the light of wealth maximization objectives. That particular mix of

debt and equity which maximizes the value of the firm is known as

optimum capital structure in simple word capital structure refers

to the composition of capital.

Capital structure = Long term debts + Preference share
capital + Equity share capital + Reserves.

1. Capital Rs. 4,60,00,000.00
2. Reserves & surplus Rs. 45,41,50,000.00
3. Deposit Rs. 2,86,41,00,000.00
4. Borrowings Nil
5. Other liabilities & provision Rs. 2,70,00,000.00

(11
4)

CAPITALIZATION

Capital plays an important role in any business at the time of

corporation of the business, it is the first problem before promotes

to decide how much capital is to be required and in what form. It is

not an easy task. A financial plan is to be prepared form the

purpose of explaining the abort term and long term needs of

finance to the company. Sever consideration would be kept in mind

such as cost of capital fair return to the contributors of capita risk

involved flexibility etc. while taking decision in this regard it required

proper capitalization.

Proper capitalization reveres to the total amount of capital

required in the long run to run the business smoothly capitalization

uses in its quantities aspect and reveres to the amount at which a

company’s business can be valued most of the traditional authors

define the terms in this sense the sum total of the par value of all

share. After definition of capitalization are being reproduces below

in order to understand the term well.

E.F. Lincoin, The amount of capital at any time should not

excepted none should it be less than the amount required in both

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5)

situation it there firm will be loser. These conditions are called

under capitalization and for capitalization. In case the amount is

hiring than it is required the company his have to pay more interest

on the surplus capital are they rescuing the proper of the concern

of the total capitalize not sufficient to discharge the function of the

business the concern with not be in a position of even reasonable

profits due to lack of funds it is there fore, necessary to have proper

capitalization.

(11
6)

CASH MANAGEMENT

Cash is the medium of exchange which allows management

to carry on the various activities of the business on day to day

basis. And management of cash is one of the most important

answers of over all working capital management due to the fare

there cash is the most liquid type of current assets. As such it is the

responsibility of the finance function to see that the various

functional areas of the business have sufficient cash were ever

they require the same at the same time if has also it be ensured

that funds are not blocked in the form of idle cash as the cash

remaining idle also involves cost in the form of interest cost and

opportunity cost as such the management of cash have to kind a

mean between these two extremes of shortage of cash as well as

idle cash.

The basic objectives of cash management of are to reduce

the operating cash balance requirement to maintain possible extent

without affecting the routine transaction. For the management of

cash flow statement is the most important tool cash low statement

provided information about the cash ratio and payment of a firm for

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7)

again period. It provides important information that compliments

the profit and loss account and balance sheet.

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8)

RATIO ANALYSES

Financial analyses of an organization depend to a large

extent on the use of ratios. The technique is commonly known as

financial ratio analyses. Ratio analyses is a very powerful analytical

tool useful for measuring performance of an organization the ratio

analysis helps the management to analyses the past performance

of the firm and to make further projection. Ratio analysis is a

process of comparison of on figure against the calculation of ratio

relatively easy and simple task but the proper analyses and

interpretation of the ratio can be made only be the skilled analysis.

The ratio of The Raj Bank of the last year is as under.

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9)

FINANCIAL
INFORMATION

The liberalization of the financial sector is the key for the over

all liberalization process. Gradually, the structure of the financial

market itself has begun to change, in the changing Financial

Market; The Co-Operative Bank Of Rajkot Ltd. has market the

progressive growth and profitability both the financial year 2004-

2005 which is reflected in the following Financing since inception:

(Rs. In Lacs)

Particulars 31-3-04 31-03-05

Members 27,400 29,100

Share Capital Rs. 475 Rs. 480

Deposit Rs. 2620 Rs. 2860

Advances Rs. 1120 Rs. 1420

Net Profit Rs. 805 Rs. 810

Working Capital Rs. 28100 Rs. 32425

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1)

PROGRESS REEPORT

NET PROFIT
AMOUNT (Rs. In Lacs)

1000
780 805 810
750

500

250

0
2003 2004 2005
YEAR

INVESTMENTS

200
AMOUNT (Rs. In Crore)

147.5
150 125.5 130

100

50

0
2003 2004 2005
YEAR

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2)

DEPOSITS
AMOUNT (Rs. In Lacs)

286
300 262
212
200

100

0
2003 2004 2005
YEAR

ADVANCES

200
AMOUNT (Rs. In Crore)

150 142
112
100 92

50

0
2003 2004 2005
YEAR

(12
3)

NPA & RECOVERY
MANAGEMENT

The core banking business is of mobilizing the deposits and

utilizing if leading to industry. Leading business is generally

encourages because it has the effect of funds being transferred

from the system to products purposes which results into economic

growth. However leading also carries credit risk which arises from

the failure of borrower to fulfill its contractual obligation.

 Meaning of NPA ::-

An asset is classifies as non performing assets (NPAs) if

dues in the form of principle and invest are not paid by the

borrower for a period of 180 days however with effect from march

2005 defaulters would be differs to a borrower if dues are not paid

for to days if any advance or credit facilities arranged to that

borrower is non performing with out having any regard to the fact

that there may still exist certain advances credit felicities having

performing status.

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4)

As the Raj Bank is concerned than there is gross NPA is

“ZERO” since beginning and net NPA is also very nearest to ZERO.

Today the net NPA is 00.26%. And for managing this NPA they

constantly affording for the best and also the have centralized

department for advances this is one of the result for having ZERO

NPAs. And before granting any loan they used to concern the repay

capacity of the applicant and for granting the loan every branch

head a power to grant loan up to 2,00,000 lacs only.

But more tan that amount that loan only by a permission of a

main branch and management will grant and for they used to make

credit report of that person in that report the name, history,

business, annual income and other information to be prepared by

C.A. of the bank or other staff members. And step by step

procedure takes place. And for recovery they have very strong

department. But according to them they only care at a time of

granting the loan so, they have no need to very strong recovery and

for recovery these are the steps followed by the bank. First by the

telephone and that bank notice and than personal visit and tan

notice through advocate and lastly they do government procedure

through court.

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5)

RISK MANAGEMENT

Risk management is the strategic tool, which helps I

identifying, quantifying, monitoring and controlling risk. Risk

management protects an organization from dying due to insolvency

resulting from the adverse effects of risk. Though universally

relevant it is of immense importance to a banking organization or

financial institution. In view of the same Risk management is

analysis here from the banking perspective. However with large

corporate house establishing their own independent dealing rooms,

risk management systems are no longer limited to banking

organization.

 Classification of Risks:-

Risk normally has to dimensions i.e. the quality of risk and

the quantity or risk. Quality of risk is essentially the probability of

the risk during into an actual loss. Quantity of risk is the financial

effect of the risk turning into a loss. Both these dimension are

extremely difficult to measure, primarily because it is an estimation

of the future, which is highly uncertain. To understand risk

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6)

management it is extremely important to understand the various

types of risks, their characteristics and their inter relationships.

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7)

• Liquidity Risk:-

Liquidity risk is essentially a result of adverse movements of

other risks i.e. credit risk, interest rate risk, foreign exchange risk.

Small information in the market about the liquidity problems faced

by a bank may result into withdrawal of enormous deposits, thereby

affricating the problem. Liquidity risk also includes rising of funds at

an abnormal cost to need its commitments. Management of

interest rate risk and liquidity risk is together knows as assets

liability management. Thus asset liability management is a subset

of the whole gamut of risk management tools.

• Credit Risk:-

Credit risk is the most fundamental risk faced by a banking

company. Credit risk is the risk of default by a borrower of funds or

decline in the credit standing of a borrower. It is the most difficult to

quantify due to the large amount of subjectivity involved in it. Thus

credit risk management can assist in decision making; it can not be

a substitute to the judgmental decision of a credit officer.

• Market Risk:-

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8)

It is the risk of loss due to adverse movements in the market

rates during the compulsory holding period having an impact on the

portfolio held by market is also important in constantly determining

the true worth of a collateral security provided by the borrower.

Foreign exchange risk is often regarded as a part of the market risk,

but may be bifurcated for facilitating better analysis.

S.
W.
O.
(12
9)

T.
Analysis
 STRENGTHS ::-

• Net NPA Zero since inception.

• Professional management & Co-Operate team spirit.

• Strong Brand equity.

• Fully computerization and Automation.

• Respectable ranking and position in Gujarat’s top Co-

Operative banks.

• Profitability and sound liquidity.

• Branches in all most developed parts of saurashtra.

 WEAKNESS ::-
(13
0)

• Lack of marketing expertise.
• Lack of modern management concepts.
• Sometimes communication gap is found which signs lack of
professionalism.

• Lack of scheduled status which may affect expansion of their
business.

• Lower volume of advances due to higher rate or interest.
• Strong need for a more disciplines, smooth and sophisticated.
• Environment for working and customer service.

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1)

 OPPORTUNITIES ::-

• General insurance business at higher level.
• No. of branches can be increased in all overall state.
• After getting scheduled status we may apply multi state bank to
expand their business.

• Introduction of various retail services.
• Tax consultancy can be provided by using the skills of the
professional personnel and experienced seniors.

 THREATS:-

• Confidence crises in the co-operative banking sector can disturb
the bank’s progress.

• Changes in govt. rules and regulation.
• Cut throat competition and entry of new foreign bank and its
sound financial structure.

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2)

VISION - 2010
• To maintain excellence in operation & management by bringing I
transparency & integrity.

• To emerge as symbol of public trust & confidence by creating a
positive image.

• To ensure speedy & satisfactory customer services through
continuous product innovation & aggressive, marketing

strategies.

• To adopt policy for technological up gradation& advancement to
boost up total computerization & inter branch connectivity for

all the branches.

• To develop & motivate human resources there by cultivating
processional culture in the banking operations.

• To strive for continuous growth & profitability through branch
expansion & modernization.

• To introduce more ATM centers & various “plastic products” for
better customer services.

• To maintain the asset quality at the optimum level by continuous
efforts for credit risk management.

• To provide multi dimensional services to customers by
incorporating various modern service areas like insurance,

bill collection and providing one door service to clients.

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5)

• To explore more non-fund based business like latter of credit,
bank guarantee, custodial services to increase bank’s non

interest income.

• To achieve business turnover of Rs.650 cores & net worth of 80
cores by 2010.

• To continue to maintain the NET NPA at ZERO level.
• To plan Bank’s balance sheet with judicious ALM.

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6)

Suggesti
on
To
(13
7)

SUGGESTION

As improvement is a constant requirement for every one and

if we try to learn from a little things also. Than every minute we will

improve ourselves. And for constant improvement in organization

management should keep their eye on every concern, during my

visit at bank I have tried to cover everything and according to my

knowledge I am trying to give suggestion to the Raj bank and I am

sure that it surely will be helpful in progress of the bank.

First and foremost suggestion for Raj bank is that, yet they

are not using such marketing tools in the area of cutthroat

competition in banking sector. Each bank should try for better and

different marketing. Raj bank should make one group of executive,

who can help to the management and can provide different

services like collection from home only and they should use such

slogan for innovative products like “only one call can make your life

better.” This slogan can be sued for assets product. So by using not

only simple advertisement but also strategic marketing tool bank

can improve a lot in the market.

(13
9)

And last but not least that is there is need to improve web

site of Raj bank during my report work I have found very poor

contents in the web site of Raj bank as Bank have their own EDP

department with high educated staff. And by creating attractive web

site bank surely will be able to create good image. And one thing is

also there should professionalism in management at every level.

(14
0)

C
O
N
C
L
U
S
I
O
(14
1)

CONCLUSION

After having all the required information for preparing my

report, I have tried to analyze each and every function of the Raj

Bank. During my report all the staff member of the Raj bank had

well co-operate me. And also I have found that the, there is a very

good level of commitment in all the staff members. During my

report I have tried to cover each functional area of the bank and

after having clear idea about everything in the bank, I can conclude

that the Raj bank is one of the leading firm in the bank, I can

conclude that the Raj bank is one of the leading firm in the co-

operative sector, and with advanced technologies and educated

staff to trying to positioning in the banking market. But than also

due to such weaknesses of co-operative sector Raj bank is also

suffering from such limits.

So, at last we can conclude that the Raj bank is being leader

in the market and due to great leadership of Mr. Ramnikbhai Dhami

(Managing Director) bank is getting great goodwill in the market

and also great goodwill of the other director helps director helps to

the bank in creating good image in the field of the bank.

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3)

For, better future a great success my all good wishes always

with the Raj bank. I wish them for better achievement

(14
4)

B
I
B
L
I
O
G
R
A
P
H
(14
5)

BIBLIOGRAPHY

 Books ::-

• Human Resource Management &
Personnel Management
By :- K. Aswatthappa

Publication :- Tata Mc-Graw Hill

• Marketing Management

By :- S. A. Sherlekar

Publication :- Himalaya Publication House

• Finance Management

By :- B. S. Shah

Publication :- S. B. Shah on Behalf of B. S. Shah

 Web Sites::-
WWW.RAJBANK.NET

WWW.GOOGAL.COM

(14
7)

 25 th Annual Report Of The Raj
Bank (2004-2005)

(14
8)

Report on the Co-operative Bank of Rajkot Ltd (Raj Bank

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