Professional Documents
Culture Documents
Finance Mba Project Report
Finance Mba Project Report
PREPARED BY
NAFISA PATHAN
(M.B.A.- SEMESTER II)
Academic year
2011-2012
Roll no.
31
Enrollment No.
117870592032
ATMIYA INSTITUTE OF TECHNOLOGY AND SCIENCE
RAJKOT (In Gujarat)
A PROJECT SUBMITED TO
GUJARAT TECHNOLOGICAL UNIVERCITY
UNDER THE GUIDANCE OF
POOJA VASANT
DECLERATION
I, the undersigned, MS. NAFISA M. PATHAN hereby declare that the project
report on LOANS AND ADVANCES conducted at JIVAN COMMERCIAL
CO-OPEARTIVE BANK,RAJKOT is prepared and submitted by me to the
Atmiya Institute Of Technology, Rajkot.
Signature
Nafisa Pathan
Place: Rajkot
Date:
PREFACE
The main objective of practical knowledge in the form of industrial visit at the
Master of Business Administration level is to give the perspective knowledge
about the organization. To become sharper in the field of Management, one
needs both practical as was theoretical knowledge.
ACKNOWLEDGEMENT
I hereby want to thank Jivan Commercial Co-Operative bank and its
members for their help given to me during my training. I was thrilled to find
that people here were very co-operative and helped me in all ways possible.
They were very eager in solving my queries and were ready to help all the
time.
Then I would like to thank Dr Vikas Arora, dean of our college and I am
heartily thankful to Ms. Pooja Vasant (faculty member) for his constant
Encouragement and assistance in preparing project report.
Table of content
Declaration IV
Preface V
Acknowledgement VI
List of tables & chart ... ...
Executive summary
1 Industry Overview
10
11
2. Company Profile
12
13
15
17
18
19
21
21
22
23
26
32
35
41
3. Research Topic
42
45
46
47
49
4. Literature review
56
5. Research Problem
60
6. Research Objective
61
7. Hypothesis/Hypotheses
62
8. Research Methodology
64
67
75
79
81
82
83
84
17. Annexure
85
18. References
87
LIST OF TABLES
Sr. No.
Title of Table
Page No.
2.10.8
Recurring Example
37
2.10.9
Locker
38
3.3.1
Hypothecation-cash credit(Rate)
58
3.3.2
Industrial Loan(Rate)
58
3.3.3
Overdraft(Rate)
59
3.3.8
Vehicle Loan(Rate)
60
3.3.9
Building Loan(Rate)
61
3.3.10
Consumption(Rate)
61
3.3.11
Machinery Loan(Rate)
61
10.2
83
10.2
Expected Frequency
84
LIST OF CHART
Sr. No.
Title of Chart
Page no.
2.4
Organization Structure
26
9.1
75
9.2
76
9.3
77
9.4
78
9.5
79
9.6
80
9.7
Qualification of customer
81
9.8
82
EXECUTIVE SUMMRY
Study of loan and advances of JCCB. I have taken this topic because nowa-days in this fast developing economics era, loan and advances play a very
important role like when a person wants to start a business then he can start
his business by taking a loan from bank and this is affected by the interest
charged on loan.
The main purpose of this study is to know that which banks loan is more
suitable to take by market survey.
Industry
overview
Banks are among the main participants of the financial system. Banks also
perform certain activities which are ancillary to this business of accepting
deposits and lending. Since Banking involves dealing directly with money,
governments in most countries regulate this sector rather stringently. Banks
provide almost all payment services by conducting checking or current
accounts for customers, paying cheques drawn by customers on the bank,
and collecting cheques deposited to customers' accounts. Banks also enable
customer payments via other payment methods such as telegraphic transfer.
Banks have added new payment channels like Internet banking, Mobile
Banking, ATMs etc.
In addition to this Banks are now moving towards Universal banking which is
a combination of commercial banking, investment banking and various other
activities including insurance.
Throughout Mauryan period and later on, desi bankers played some role in
the economy of the country. However, it was during the Mogul period that
indigenous bankers started playing a vital role in lending money and financing
of the foreign trade and commerce.
East India Company established three banks; namely, The Bank of Bengal in
1809, The Bank of Bombay in 1840, and Bank of Madras in 1843. They were
collectively called Presidency Banks and were well functioning independent
units.
The Reserve Bank of India was established as the Central bank of the country
in 1935under an act called Reserve bank of India Act. In 1955, the Imperial
Bank of India was nationalized and was given the name "State Bank of India.
On July 19, 1969, 14 major banks were nationalized.
In 1980, another six banks were nationalized, and thus raising the number of
nationalized banks to 20.In the post-nationalization era, no new private sector
banks were allowed to be set up. However, in 1993, in recognition of the need
Definition of Cooperation
H.CALVERT define cooperation
As a form of organization, where in persons voluntarily associate together as
human beings, on a basis of equality for the promotion of the economic
interest of themselves.
Once Mahatma Gandhi has remarked that There is sweetness in cooperation; There is no one who weak or strong among those who co-operate.
Each is equal to other.
Over a period of time, a strong co-operative network made its way into rural
areas with Gujarat, Maharashtra and Andhra Pradesh leading the way. The
original founders of the co- operative movement were people with integrity,
foresight and vision. However, with the passage of time, there has been
erosion in the quality of leadership in this sector.
Our govt adopted LPG policy in 1991 so cooperative banks also need to
reform. It has become necessary to make co-operatives more competitive and
market oriented. The old vision of cooperatives as merely government
sponsored institutions or as individual driven organization would have to give
way to a new vision of co-operatives where in the co-operative become
competitive business units to play an active and effective role in economic
welfare of its members. This calls forcreation and development of new type of
co-operatives institutions and re-engineering and reinnovation of existing cooperatives to meet the challenges of new economic scenario. In liberalized
market economy cooperatives provide protection to people and make possible
survival of weakest also.
They have to follow rate for investment laid down by the register of cooperative societies.
COMPANY
PROFILE
JCCB ltd. was established on 7 Aug, 1972 with share of Rs. 78200 and
membership of 1017 person under the leadership of late established by late
shri rajedra raya with late shri harsubhai raval. And Mr. Kantibhai, Gujarats
finance minister at that time. This bank was names on famous shastri
JIVANLAL RAVAL. The bank has made tremendous and real progress under
the leadership of chairman late rajendrabhai Raya.
Bank is successfully working for 3 year. This bank has started with the
working capital of Rs.1 crores which kept on incasing till today and crossed
the limit of Rs.100 crores. The bank has started its first branch at bhaktinagar
on 4 sept, 1977 and again to fill the demand of customers 2nd branch on 19th
Oct, 1981 at Raiya road and 3rd branch on 7th April, 1985 at wakaner. The
bank sees a vision of current and future trends, bank to start the safe deposit
volt way back in 1990.
During past years bank has player 7 leading role for the development of
industrial business and economy of Rajkot city. Bank has developed in
manifolds with time membership of bank is now 24049, which provides an
example of how mass movement can be turned into the instrument for social
up-linemen. Today bank has more than 59719 deposit accounts with deposits
base of 171+ crore no. of borrows 4218, establishment/individuals enjoys the
facility of rs.85+ crores and advance bank has 19+ crores of reserve fund.
Now bank has share capital of rs. 4, 37, 82,500 bank has 3840 safe deposit
Walt.
Bank has establishes sabhasad kalyannidhi fund for T.B, cancer, Eye and
diabetes treatment for the member of bank. Bank has denoted to educational
institutions and hospitals. Bank has also denoted in Natural calamities such
as earthquake and flood. Bank also promotes to the sports activities.
Being in the service sector with a vision of current and future treats, Bank
started automation and modernizations way back in 2005 all the branches as
computerized. And the has paid regularly the dividend to share holders on an
average of 12% p.a.
Name
Address
Year of establishment
: 1972
Registration no
: 6102
Founder
Type of bank
: Commercial co-operative
Branches
:5
Initial member
: 1017
No. of Customers
: 24049
share capital
: 5, 22,44,800
No. of Employee
: 104
Contact No
: bank- 0281-2240876
0281-2240877
0281-2240875
Loan 0281-2240878
Fax no.0281-2233168
: jivanbank@yahoo.co.in
Chairman
Managing director
General Manager
Internal Auditor
: Shri D.N.Kikani
Working time
: 10am to 5pm
Working day
: Monday to Friday
Saturday half day
Week off
Chairaman
Vice chairman
Managing director
Main Branch
Other Branch
Manager
Manager
Deputy Manager
Assistant Manager
Assistant Manager
Clerk
Clerk
Peon
Peon
vision of bank
Maximum profit at maximum services
1. Operational excellence,
2. Customer focus,
3. Service leadership,
4. Welfare of people,
Mission of bank
Bank also provides loan facilities to its members for short term
and medium term financial requirements at reasonable rates.
The bank is going to start new branch in near future for easy
accessibility.
Adopting
the
latest
technology
for
calculating
and
communication.
bank is going to adopt new technologies for accounting and other activities.
18 April 1972
3 july 1972
7 Aug, 1972
4 Sep, 1977
16 Jan, 1980
19 Oct, 1981
7 April 1985
June 1986
June 1989
25 Oct, 1990
7 Aug 1997
March 2000
March 2003
March 2004
April, 2010
SERVICE
DEPARTMENT
2.10) INTRODUCTION
JCC is purely a service sector. So here instead of production department
there is only Service Department. The work of a Service Department is to
produce better services to the customers, which satisfy the human desire in a
best manner.
1. Current
2. Savings
3. Special savings
4. Loan Compulsory
5. Nominal Compulsory
6. Pigmy
7. Fixed
8. Recurring
9. Locker
Current Account
Savings Account
These deposits too are used for transactions purpose. For example if you
want to pay electricity bill, telephone bill etc. you can give a cheque from your
savings a/c rather than giving hard cash. Other things such as paying fees,
paying dues etc. can be done from this a/c.
This deposit is usually held in the name of individual as it is used for personal
purposes and gives interest at the rate of 3.5% per annum.
Note that trust and association can hold current as well as savings account.
A customer having savings account can withdraw money in the form of cash
or cheque in a limit number of times which is restricted as 5 times per month
at JCCB. Note that this withdrawing power can be different for different banks
according to the rules and regulations of that particular bank
Special savings
This concept and deposit was prevalent earlier, but now it is not in use.
In this deposit a customer can withdraw the money only3 times (less than
savings i.e. 5times). However, this deposit gives an interest at the rate which
is higher than the savings account. Earlier, when it was in use these deposits
gave a return of 0.5%higher than that of savings deposits.
Loan Compulsory
These deposits are made compulsory for a customer who wants to take a
loan from JCC. For this customer it is required to keep 2.5% of the loan
amount in these deposits. It gives the same interest rate as saving deposits.
Nominal Compulsory
It is similar to loan compulsory deposits in most ways. However, the
difference is that these deposits are held by customers having less loan
amount. These deposits are there to help small loan takers, so that these
people dont need to keep 2.5% of their loan amount as deposits. It gives the
same interest rate as saving deposits.
Pigmy
Pigmy has different names at different banks. Some banks give daily saving
name to this service.
Very few banks offer this service. Here, the customer is required to deposit
the installment on daily basis. The interest rate offered is same as Fixed
Deposits. Fixed Deposits (FD)
It is a deposit which offers the highest interest rate than any other above
mention deposits. So it is mainly used for long-term saving purposes. For
example: a couple having a child of the age of 10 keeps an FD account so as
to use the matured amount for the childs college fees in future.
These deposits and its interest rates are explained in detail in the future
sections that are to come.
Recurring
It is a type of FD with deposits kept for 12 or more months. Here the deposits
are given at installment by the customer. The interest rate for these deposits
is same as FD.
Recurring Example
Deposit date
05-05-2010
Matured date
05-05-2011
Monthly installment
500
Rate of interest
8%
Matured amount
6265
Locker
It is necessary to deposit some amount in the bank if a customer wants to
have a safe-locker facility. This deposit is made in locker deposits with interest
rate of 9%perannum (interest calculated at half a year) for 5 years. The
deposits that are to maintained for different lockers is given in the following
table
Size of locker
Small
R.7500
Medium
Rs.15,000
Large
Rs .22,500
MARKETING
DEPARTMENT
2.11) INTRODUCTION
Marketing is the process of planning and executing the concept of pricing,
promotion and distribution of ideas, goods and services to create exchange
that satisfy individual and organizational objective.
The origin of marketing can be traced to the early system of barter system.
Various difficulties of barter gave way to introducing of money and the pricing
became the main mechanism of marketing. Then the marketing era after the
World War 2. Competition became very intense, there was more supply of
goods then was actually needed by market. Therefore marketing research
became vital to undertake the social responsibility in connection with
manufacturing of goods. Efforts are made to balance consumer satisfaction +
profit + public welfare.
By the name it self people doesnt ask any other question and willingly ready
to do the transaction with the bank did some local marketing such as.
- Advertising in local news papers
- Distribution of pamphlets
- Advertisement in business fair
1) Product Development
2) Introduction- Low sales, High Costs, Negative Profits
3) Growth- Rapidly increasing sales, Average Cost, Rising Profits
4) Maturity- Peak sales, Low Cost, High Profit
5) Decline- Declining sales, low Cost, Declining Profits.
HUMAN
RESOURCE
DEPARTMENT
AITS, DEPARTMENT OF MANAGEMENT
Page : 34
2.12) INTRODUCTION
Employees hold a key place in business. No business enterprise can exist
and function without employees. The success of business enterprise depends
to a large extent on the quality of its human resources.
This bank has a good management and large department of manager and
employees.
RECRUITMENT SOURCE
Employee holds key position in business. No business enterprise can exit
without employees. The plan of business may be logical sound and structure
of organization may be perfect but if the recruitment and selection of
personnel are unscientific business cannot be develop. And hence every
organization needs employees from time to time.
Internal Sources
External Sources
SELECTION
Selection is the process of differentiating between applicants in orderto
identifies these with a greater likelihood of success in the job.
IN JCCB:-
In case the bank has given advertisement for applicants, first the receive the
application. Manager evaluates the application and he rejects improper
application and calls a person having proper application from for the personal
interview.
Now, if the employee has passed the relative interview, he has to pass the
medical test & then the employee is selected as trainee for a certain time
period.
The training period depends upon the employees capacity but the maximum
period is of 2 years. After, 3 to 6 months, the report of trainee employee is
submitted to manager and if it is satisfactory then he is selected, and if the
report is negative i.e. if there is no progress then employee will have to
discontinue
PROMOTION:
A promotion is a type of a transfer involving placement of an employee to a
position having higher pay, increased responsibility more privilege, increased
benefit and great opportunity.
Promotion is given so as
To increase an employees organizational effectiveness
To build up moral, loyalty and a sense of belongings on the part of
To attract suitable and competent workers for the organization.
Finance
department
2.13) INTRODUCTION
The term Business Finance mainly involves, rising of funds and their effective
utilization keeping in view the overall objective of the firm. The management
makes use of various financial techniques for administrating the financial
affairs of the firm in most efficient and effective way. Financial therefore
means the entire gamut of managerial effort devoted to the management of
finance-both its sources and - of the enterprise.
Its detailed analysis includes financial analysis, risk analysis, capital structure,
measurement of cost of capital, merger, acquisition, working capital financing,
and management of cash and market securities.
Swot
analysis
STRENGTH
-this bank is very reputed in local area.
-professional management & co-operate term spirit
-strong brand equity in local (Rajkot) area.
-fully computerized
-profitability & sound liquidity.
-branches in all most developed part of Rajkot.
-No mistake in regular transactions can be found because of small network.
WEAKNESS
-Bank is not performing marketing activity because lack of marketing expertise
-lack of modern management concepts and sometimes communication gap
can be found which indicates lack of professionalism.
-bank is not providing ATM facility in the recent developed area and bank is
not fully developed in modern area.
-lower volume of advances due to higher rate of interest ma effect the
expansion of the organization.
-not reputed at national level and less no. the branches.
OPPORTUNITES:
-bank can open branches at state level in near future.
-bank can introduce new services like NRI loan, ATM, student account with
minimum Rs.100etc.
-bank can perform marketing activities by media.
THREATS:
-changes in government policies and in rules and regulation regarding bank
can be disturbed in regular service of bank.
-Crises in the co-operative banking sector can disturb the bank progress.
ReseaRch
topic
defining and
redefining
problems,
formulating
hypothesis,
Loan is a method of lending under which bank gives credit to a borrower for a
fixed period and for a specific purpose. Loan are promises for future payment,
they have to be repaid in periods beyond a year and are, therefore long term
liabilities.
In other words "when a banker makes an advance in a lump sum which can
not be paid wholly or partly and which the customer has permission to
withdraw subsequently, it is called a loan."
Profit is the pivot on which the entire business activity rotates. Banking is
essentially a business dealing with money and credit. Like every other
business activity. Banks are profit oriented. A bank invests its funds in many
ways to earn income. The bulk of its income is derived from loans and
advances.
Many a time a borrower needs funds for fixed assets or non-respective type of
activities and thus seeks money from the bank that is withdrawn in one lump
sum. The loan amount is normally repaid in installments. Loan may be shortterm, medium-term or long-term.
Hypothecation-cash credit
2.
Industrial
3.
Overdraft
4.
Pledge
5.
Consumption
6.
Staff Consumption
7.
Commercial loan
8.
Vehicle loan
9.
Building loan
1. Hypothecation-cash credit:
This loan is basically given to business people on their trading stock. JCC
gives loan up to 70% of the value of the stock. If here the customer provides
additional property for mortgaging, then extra 50% of the value of property
can be added to the loan amount.
For Builders
15%
For others
Up to 75,00,000
15%
14%
2. Industrial:
Like Hypothecation this loan is also given to firms but here it is given on
finished goods. The other things are same as Hypothecation.
Industrial purpose
Up to 75,00,000
15%
14%
3. Overdraft (OD):
For the businesses like brokerage firms and trading firms, where there is no
record of the stock, but has to keep large amount of funds to felicitate trade,
hypothecation and industrial loans cannot be given. So for the liberation of
these firms, OD loans can be given. Here these firms are given loans on the
basis of their record of balance sheet and PNL (Profit and Loss) account.
These loans are of 2 types viz. FOD and SOD. FOD is the loan given against
fixed deposit whereas SOD means Secured OD and is given on the
mortgaging of the property of the business land or property. JCC gives loan
up to 85% of FD value.
Overdraft
Unsecured
18%
15%
14%
4. Pledge:
Here stock is under the control of bank. For example the key of the
warehouse in which the goods are kept is with the bank. Example of a fridge
stock. Suppose a warehouse of fridge is under the control of bank. Now, bank
will give the keys to the stockholder only if he pays a part of loan which he has
taken on the stock of fridge. This loan is not prevalent now at JCC.
5. Consumption:
This is called self-mortgaging loan where the people usually comes for taking
loans on their personal income. It is the only type of loan where the purpose
of the loan is not mentioned. At JCC, this loan has one of the larger shares
among all types of loans. Majority of the loan takers of these loans are the
workers of Rajkot Municipal Corporation (RMC).Here the RMC submits the
salary information of the worker who wants to take loan and promises to pay
back the loan installments from the salary of that particular worker. RMC
manages this by withholding the installment amount from the salary.
6. Staff Consumption:
This is similar to the consumption loan except that it is provide to staff people
at a slightly lesser rate.
7. Commercial loan:
This loan is provided to the small vendors, who are in need of money for
running their business. This is usually given to the people running small
provision stores, pan shops and others.
8. Vehicle loan:
As the name implies the bank gives loan on the purchase of vehicle. Here a
customer may want an old vehicle or a new vehicle. In the former case the
valuation of the vehicle is must. This valuation can be done by the bank or the
customer himself. In the later case of new vehicle the bill quotation is used for
considering vehicles value and 75% of the value can be given as loan.
However, in case of old vehicle 50% of the value of vehicle is given as loan.
Vehicle loan
Up to 75,00,000
16%
14.5%
9. Building loan:
This loan is given on the purchase or construction of building for residential or
business purposes. This type of loan is also one of the major contributors to
the credit of the bank. These loans are basically taken by the public for
housing and are also taken by the builders for construction purpose. The loan
to the builders is given on the amount of the work done. For example when
the construction is about to start the first installment of loan is sanctioned.
Thereafter, after the construction of 1 st slab, another installment is given and
soon
A. for builders
15%
B. for others
Up to 75,00,000
15%
14%
Consumption loan
Up to 75,00,000
17%
14.5%
Machinery loan
Up to 75,00,000
15%
14%
Purpose
-personal use
Limit
Period
-26 months
Rate of interest
-14%
Repayable
Security
Document
Paper
SHETTY:
Assessed the dimensional changes in credit deployment during the first five
years of nationalization in relation to changes in output and prices. The
rationale for his analysis was the fact that, in any accepted model of demand
for money, one common variable is the gross national product or some other
variant of it in real terms. Consequently, he hypothesized that credit for any
sector or industry over a period has to have some relationship with its
performance in real terms, particularly output. He observed a declining trend
in the credit extended by banks to industries since nationalization, though it
was higher than other sectors. On finding that the share of manufacturing
sector in bank credit is higher than its share in Net Domestic Product (NDP)
he concludes that increase in bank credit has occurred far in excess of
increase in output during the years 1968/69 to 1973/74.
REVISED BY SHETTY:
Observed that the share of medium and large industry in total bank credit had
declined due to priority sector lending. Another observation in line with his
earlier
finding was
that growth
in bank
credit
had
always
been
(a) Increase in average bank credit had been higher than the growth of NDP
originating in registered manufacturing sector even at current prices
K.S.R.ROA:
Carried out an econometric exercise on the determinants of demand for bank
credit of some selected industries for the period between 1970-71 and 198485. He observed that output of these industries was the most important factor
in determining its demand for bank credit whereas, interest rate of banks and
relative rate of interest of other sources of borrowing played only a secondary
role. Price of output was also found to have affected the demand for credit
significantly. The relative interest rate variable was significant with respect to
industries like textiles, engineering and total manufacturing, while it was not
significant for industries like sugar and other food products and chemicals.
S. ADVE.:
Had some interesting findings in his article "Financial Practices in Indian
Corporate Sector," based on the RBI company finance data. He underlined
the rising dependence on borrowed capital in relation to the total capital
employed in the Indian corporate sector. Trade credit was pointed out to be
important sources of capital when the bank credit was squeezed. Making an
industry-wise analysis, the author came to the conclusion that the industries
with large profit margins and those with large depreciation and development
rebate reserves had a relatively lower order of overall indebtedness and many
of them also had a lower order of bank borrowings in relation to overall
indebtedness. Industries with high profit margin such as silk and rayon
textiles,
aluminum,
basic
industrial
chemicals
and
medicine
and
L.S.GUPTA:
The extensive study viewed that the growth of institutional finance emerged in
lndia due to structural change for industrial financing system with wide change
of socio-political situations in lndia. He attempted to measure overall impact of
financial institutions on capital formation in the organized private sector as
also the allocate efficiency of financial system. He observed that during the
first plan financial assistance rendered by special institutions represented only
4.1 per cent of gross fixed investment in private industry, which rose to 7.9 per
cent in the second plan and further to 18.1% in the third plan period. He also
found that commercial banks remained the most important single agency for
financing the private corporate industry and LIC was the single largest
purchaser of industrial securities and the underwriter of new issues of large
and established companies.
M.S.JOSHI:
The role of financial intermediaries in providing finance to large-scale
industries in the private sector. After analyzing the contribution of each
important intermediary towards industrial development in India, he estimated
that these intermediaries have participated with 17% of investment in various
Industries against 39% in share capital of public Ltd. companies.
Research Problem
The research is that the income level affected to borrower to take
a loan.
7.) HYPOTHESIS
The hypotheses of the study are as follow
1. Ho: =1
2. Ha:
3. Ha: <
4. Ha: >
ReseaRch
methodology
Secondary data:
Secondary data are those which are already been collected for some other
purposes. I have taken the secondary data from internet and from a book
"Guidance note on audit of books. I have also done data analysis on the
basis of this secondary data. I have compared the interest rates of various
banks with JCCB to fulfill my objectives.
Population Size-
Sample Size
SAMPLING METHOD:
I have to use convenience sampling method to analysis of market research
and percentage of investment is dependent of loan taken or independent of
income level.
Sampling Procedure
Non-probability
Retired person
Type of occupation
No. of customer
Businessmen
27
Employee
42
Profession
19
Retired person
12
Total
100
Occupation Of Loan Borrower
45
40
35
No. of Customer
30
25
20
15
10
0
Businessmen
Employee
Profession
Retired person
Type Of Occupation
In this question, we know that, in different class of occupation who take more
loan in these group. in above chart we can see that the employees are 42%
means the employees are more take a loan as compare to other group of like
businessmen ,Profession and Retied Person are as 27%, 19% and 12%.
No. of customer
18-35 year
30
35-60 year
48
60-90 year
22
Total
100
Age Group Of Loan Borrower
60
50
No. of Customer
40
30
20
10
0
18-35 year
35-60 year
60-90 year
Year
In this research on loan and advances, classified the different age group and
knowing that who take a more loan. In above chart we can see that the 48%
people are those who age is 35 to 60. 30% people are those who age is 18 to
35 year and 22% are those who age group is 60 to 90 years.
No. of customer
Up to 2 laces.
23
44
21
12
Total
100
45
40
No. of Customer
35
30
25
20
15
10
0
Up to 2 laces.
In this question, the incomes of borrower are identified. In these, the persons
whose incomes are between 2 to 5 laces are 48% means its take more loans
then after whose income level is up to 2 laces are 23%,the income of between
5 to 10 laces are 21% and who income is more than 10 laces is 12%.
No. of customer
Excellence
23
Good
36
Adequate
17
Average
14
Unsatisfactory
10
Total
100
Behavior Of Staff Member
40
35
No. of Customer
30
25
20
15
10
0
Excellence
Good
Adequate
Average
Unsatisfactory
Behavior
No. of customer
1 to 3 year
18
3 to 8 year
33
8 to 15 year
28
15 to 25 year
21
Total
100
Time Period Of Loan
35
30
No. of Customer
25
20
15
10
0
1 to 3 year
3 to 8 year
8 to 15 year
15 to 25 year
Year
The customer whose take a loan in the bank is mostly time period 3 to 8
years. In the above chart, clarified that the person whose take a loan for 3 to 8
year is 33%. And then after the person who takes a loan of 8 to 15 year are
28%. The people who take a loan of 15 to 25 years are 21% and the last the
person who take a loan of 1 to 3 years are 18%.
No. of customer
UBI
12
ICICI
HDFC
14
AXIS
BOB
15
ANOTHER LOAN
NO ANOTHER LOAN
38
Total
100
UBI, 12
ICICI, 8
NO ANOTHER LOAN, 38
HDFC, 14
AXIS, 6
ANOTHER LOAN, 7
BOB, 15
In these chart we seen that the 38% are those not take a loan from another
bank then after 15% are those whose take a loan in BOB. in theses way the
borrower are also take a loan to different bank. In these 7% are those who
take a loan from other bank.
Qualification of Customer
No. of customer
Up to HSC
37
Up to Graduation
32
Up to Post Graduation
19
12
Total
100
Qualification of Customer
40
35
No. of Customer
30
25
20
15
10
0
Up to HSC
Up to Graduation
Up to Post Graduation
Qualification
Extent Level
No. of Customer
12
31
38
19
Total
100
Maximum Extent To Take Loan
40
35
No. Of Customer
30
25
20
15
10
0
Less Than 100000
Loan Amount
In these chart, the amount of loan is given. In these, the loan amount of
Rs.1,00,000 to 5,00,000 is more means the 38% customer are those whose
take a loan of amount 1 to s laces. Then after 31% customer are those whose
take a loan of amount of Rs. 1,00,000 to 5,00,000.then 19% are take a loan of
more than 10,00,000. then 12% are those whose take a loan of less than
Rs.1,00,000.
Step-1 hypothesis
H0: extent amount to take loan is independent of income
HA: extent amount to take loan is dependent of income
Level of income
Extent amount to Up to 2 Between Between More
Total
take loan
laces.
2 & 5 5 & 10 than 10
laces.
laces.
laces.
Less than 100000
8
3
1
0
12
between 100000 &
10
16
4
1
31
500000
Between 500000 &
5
15
13
5
38
1000000
More than 1000000
0
10
3
6
19
Total
23
44
21
12
100
Expected Frequency
(Row total*column total)/n
Extent amount
take loan
to Up to
laces.
2 Between
Between
More
2 & 5 5 & 10 than 10
laces.
laces.
laces.
2.76
5.28
2.52
1.44
7.13
13.64
6.51
3.72
8.74
16.72
7.98
4.56
4.37
8.36
3.99
2.28
Chi-square calculation
No.
Observed
Expected
Fo
Fe
Fo-Fe
(Fo-Fe)2
Frequency Frequency
fo-fe2
/fe
2.76
2.76
5.24
27.46
9.95
10
7.13
10
7.13
2.87
8.24
1.16
8.74
8.74
-3.74
13.99
1.60
4.37
4.37
-4.37
19.10
4.37
5.28
5.28
-2.28
5.20
0.98
16
13.64
16
13.64
-2.36
5.57
0.41
15
16.72
15
16.72
-1.72
2.96
0.18
10
8.36
10
8.36
1.64
2.69
0.32
2.52
2.52
-1.52
2.31
0.92
10
6.51
6.51
-2.51
6.30
0.97
11
13
7.98
13
7.98
5.02
25.20
3.16
12
3.99
3.99
-0.99
0.98
0.25
13
1.44
1.44
-1.44
2.07
1.44
14
3.72
3.72
-2.72
7.40
1.99
15
4.56
4.56
.0.44
0.19
0.04
16
2.28
2.28
3.72
13.84
6.07
x2c
33.81
Step-5: conclusion
Xcal > Xtab
(33.81) > (9.95)
H0 is rejected.
11.) SUGGESTION
The bank can introduce advance technology for banking and should give
attention to Manpower time to time.
The bank can promote confidence and commitment among the staff
members, to address the expectations of the customers efficiently and handle
technology banking with simplicity.
The bank can take steps to forecast the changing financial need of
customer of different type of group and banking accordingly.
The bank can identify the reason of few unsatisfied group of customer and
should take steps to eliminate their problems and grievances.
The bank can put together all it hard work to bring more responsiveness
and awareness to customers.
the customer ratio of urban & rural area are 2:3 means 40% customers are
from urban & 60% customers are from rural area.
13.) CONCLUSION
After having all the required information for preparing my
report, I have tried to analyze each and every function of the JCCB. During
my report all the staff member of the JCCB 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 try to cover each functional area related to
the bank and specially loan department.
5. Many time customers are not ready to give private information to the
researchers.
Due to these research, the customer as well as employee needs are knowing
and then implement that so that the more customer are join and firm are grow
up easily. To know current position of the bank and how to implement the
various service who aspect by the customer as well as employees.
17.) ANNEXTURE
NAME: ________________________________ AGE: ______
18.) BIBILIOGRAPHY
For preparing this project report, I have taken guidance from
various sources which are as follows:
1. BOOKS &JOURNALS:
PADMANATHA SURESH & JUSTIN PAUL, MANAGEMENT OF BANKING
AND FINANCIAL SERVICES, PEARSON EDUCATION PUBLISHING PVT,
DELHI, THIRDEDITION, 2010.
VASANT
DESAI,THE
INDIAN
FINANCIAL
SYSTEM
AND
DEVELOPMENT,
HIMALAYA PUBLISHING HOUSE, MUMBAI, SECOND REVISED EDITION,
2010
C.R.KOTHARI,RESEARCH METHODOLOGY, NEW DELHI, NEW AGE
INTERNATIONAL LIMITED, SEVANTH EDITION 2010
2. by Searching Sites:
www.jccb.com
3. BROCHURES OF JIVAN COMMERCIAL CO-OPERATIVE BANK