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1. To study the loans and advances given by bank. 2. To study detail procedure of lending regarding
different forms of financing of cooperative banks. 3. To know the satisfaction level of the customers regarding the non agriculture loans
y The financial sector is in the process of rapid transformation.
Reforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic stability. The US$28 billion Indian financial sector has grown at around 15% and has display stability for the last several years, even when other markets in the Asian region were facing crises. y The Reserve bank of India has successfully introduced a regime where interest rates are more in line with market forces. Financial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Bank and trade financiers have also played an important role in promoting foreign of the country.
and It lends this money to those who require it. FUNCTIONS OF THE BANK PRIN CIPA L GRANTI NG ADNAVC ES ISSUE OF GURA NTEES ANCIL LARY ISSUE OF PAY ORDER/D EMAND DRAFT ACCEPTING DEPOSITS SAFE DEPOSITS LOCKERS . Few DEFINATIONS of bank are discussed below:y THE CONCISE OXFORD DICTIONARY Bank collects money from those who have it to spare or who are saving it out of their income.DEFINITION & FUNCTION OF BANK y WHAT IS BANK? To a layman. y This definition brings out the two important functions of a banker namely. acceptance of deposits and lending. a bank is one that accepts deposits from public and lends money.
PHASES OF BANKING Phases of Banking Foundation Phase Expansion Phase Consolidation Phase Reforms Phase .
The cooperative movement originated in the West. . While the co-operative banks in rural areas mainly finance agricultural base activities including farming.COOPERATIVE BANK y The cooperative bank has history of almost 100 years. Their role in rural financing continues to be important even today. hatchery . along with some small scale industries and self-employment driven activities. and their business in the urban areas has increased phenomenally in the recent years mainly due to the sharp increase in the number of primary co-operative banks. the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. cattle . the expectations they are supposed to fulfill their number and the number of offices they operates. but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. personal finance etc. milk. The cooperative banks are an important constituent of the Indian Financial System. judging by the role assigned to them.
3 TYRE SOCIETY PRIMARY COOPERATI E SOCIETIES CENTRAL BANK APEX BANK .
720 has a principle financing institutionof the cooperative movement in Punjab. 1949 at Shimla vide registration No.PUNJAB STATE COOPERATIVE BANK y The Punjab State Cooperative Bank was established on 31st August. y In the cooperative Banking structure.This bank ensures that its member central cooperative banks follow sound banking practices & observe strict financial discipline . the position of the Punjab State Cooperative Bank is extremely important as the whole credit system revolves around it.
STRUCTURE OF COOPERATVE BANKING y The cooperative banking structure in India is divided into 4 components: y a) Primary cooperative credit society y b) Central cooperative banks y c) State cooperative banks y d) Landing development banks .
EMPLOYEES WELFARE FUND SOURCES OF FUNDS y .AGRICULTURAL& DEVELOPMENT STABILIZATION FUND 3.ACTIVITIES ACTIVITIES 1.DEPOSITS y BORROWINGS FROM NABARD . OWN FUNDS: y . NON-FARM SECTOR 2.
2.NON FARM SECTOR LOANS .SHORT TERM AGRICULTURAL ADVANCES.REVOLVING CASH CREDITS. 3. 1. .INVESTMENT OF FUNDS y STATUTORY REQUIREMENTS y LOANS & ADVANCES. SHORT TERM AGRICULTURAL RECOVERY (DCCBs).
Kapurthala and Ludhiana were permitted by the Registrar Cooperative Societies.93. 50. Nawanshahr. 62500/- . Later on all the Central Cooperative Banks were allowed to composite loan(block capital and working capital up to Rs.000/in a single case (composite loan). Punjab to undertake financing of Non Agricultural activities up to Rs. y Initially four Central Cooperative Banks namely Jalandhar.NON-FARMINGSECTOR OF BANKING y During the early phase Punjab State Cooperative Bank deals in agriculture loan only but to diversify its loaning portfolio the Punjab State Cooperative Bank entered in the field of Non Agriculture advances During the year 1992.
small road transport operation shekari education loan facility consumer durable loan: y y to salary earners to non salary earners y non farm sector loan y loan against national saving certificate . various Non Agricultural Schemes y y y y y y y y y were introduced by the Punjab State Cooperative Bank and these are as following:revolving cash credit to farmers two wheeler loans to farmers rural godown scheme personal loan scheme cash credit to businessmen and traders shekari bank bima yogna second hand car loan kisan credit card scheme.y Under the loaning portfolios.
thus is providing these non agricultural loans only.TOPIC UNDERTAKEN FOR THIS STUDY y During the training period. I concentrated only on five y y y y y kinds of loans. required and other formalities relate to these loans were studied. documents. The reason being that the branch has provisions for only these five finds of loans. which are pervaded by the Punjab state cooperative bank. These loans are stated as under: House Building Loan Personal Loan Consumer Loan Two Wheeler loan Education Loan . A detailed study of the procedure for applying to these loans. Chandigarh.
of Respondent 16 15 6 8 3 2 Percentage(%) 32% 30% 12% 16% 6% 4% Table reaveals that 16 respondents have taken house loans. 15 have taken personal loans and less people prefer consumer. educational and vechile loans.What kind of loan have you taken from organization? y INTERPRETATION: Kind of Loan House loan Personal loan Consumer loan Educational loan Vehicle loan Other No. .
000 20.1 lac More than 1 lac No.What is the amount of loan taken? INTERPERTATION: Table reveals that 8 % people prefer loan less than 20. Loan Amount Less than 20.000-50.000 to 50. 20 % respondents prefer 20.000.12 % prefer more than 1 lac and 60% of the respondents prefer more than 1 lac. of Respondent 4 10 6 30 Percentage (%) 8% 20% 12% 60% .000 50.000.000.
of respondent 6 10 32 Percentage(%) 12% 20% 64% INTERPRETATION:Table shows that 64 % respondents take loan for more than 3 years. Less than 1 year 1 to 3 years More than 3 years . 20 % take loan for for 1 to 3 years and 12% take loan for the period of less than 1 year .What is the term of loan ? Term of Loan No.
of Respondent Percentage (%) .4.What is the rate of interest you paying? INTERPRETATION: Table shows that 48% of the respondents are paying rate of interest 9 to 12 % and more than 12 % and 4 % of the Respondents pay less than 9 % of rate of interest. Rate of interest paid by the customers Less than 9% 9% to 12% More than 12 % 2 24 24 4% 48% 48% No.
32 % of the respondents took loan for 1 to 3 times and 10 % took loan for more than 3 times.How many time have you taken loan before? No. of times loan taken Only once 1 to 3 times More than 3 times 29 16 5 58% 32% 10% Table reveals that 58 % of the respondents took loan once . of respondent Percentage (%) y INTERPRETATION: No. .
What prompted you have to take loan from the institute? Reason for taking loan No. 5 17 19 3 10% 34% 38% 6% . more schemes .34% take loans because of less formalities and other respondents take loan because of reasonable rate of interest. of Respondent 6 Percentage (%) 12% y INTERPRETATION: Reasonable rate of interest More schemes Less formalities Easy repayment Any other Table reveals that 38 % take loan because banks provide easy payment.
. of respondent Percentage (%) processing of loan Less than 7 days Between 7 to 14 days More than 14 days 34 13 3 68% 26% 6% Table reveals that 68% respondents says that average time taken for processing of the loan is less than 7 days. 26% says that it takes 7 14 days and 6 % says that it takes more than 14 days.What is the average time taken for the processing of the loan? INTERPRETATION:Average time for No.
12 % are not satisfied and 20 % can t say. Of respondent 34 6 10 Percentage (%) 68% 12% 20% Yes No Can¶t say . No.Are you satisfied with the amount & period of installment? INTERPRETATION: Table reveals that 68% are satisfied with the amount and period of installement .
To what extent are you satisfied with the following factors? .
Rank the facility Above average Average Below average No. of respondent 16 30 4 Percentage (%) 32% 60% 8% . 32% say that its above average and 8% says that its below average.How would you rank the facility provided by the bank? INTERPRETATION: Table shows that 60% of the respondent says that facility provided by the bank are average.
24% says that it is excellent and another 24 % says its average and only 2 % says its poor. of responedent Percentage(%) .customer service of the bank? INTERPRETATION: Table shows that 52% of the respondents says that customer service of the bank is good. Rank services Excellent Good Average Poor 12 26 12 1 24% 52% 24% 2% the customer No.
If you are in need of loan in future from which in banks would you prefer to take loan? INTERPRETATION: Table shows that 56 % of the respondents wil prefer loans from co-operative banks. of respondent Percentage (%) . 30 % from the private banks and 14 % from the public banks Preferable future Public banks Private banks Cooperative bank 7 15 28 14% 30% 56% banks in No.
Hence.of respondent Yes No 37 13 Percentage (%) 74% 26% .Do you think the bank is able to reach upto your satisfaction level? INTERPRETATION: The bank is able to reach upto the satisfaction level of 74% of its employess while the remaining 26% are not satisfied by the services provided by the bank. the bank should work upon to increase the customer satisfaction level. No.
of respondent 9 Percentage (%) 78% 18% 4% Sometimes Never 9 2 ¢ ¡ .bank to your friends and relatives? Bank refer to others lwa s No.
High transaction of cost. Deputation of government officials to cooperative institution etc. Administered rate of interest structure for a long time. Due to cooperative legislation and administration mandates Govt interference has become a regular feature in the gay to-day administration of the cooperative institution. The cooperative financial institution is facing severe problems which have restricted their ability to ensure smooth flow of credit and also in meeting the requirement of the farming Limited ability to mobilize resources.PROBLEMS FACED BY COOPERATIVE BANKS 1. . Some of the problem area that arise out of the applicability of the cooperatives legislative are: Deliberate control of cooperatives by the government. 2. Nomination of board of director by the government. Participation of the nominated director by the government. Low Level of recovery.
Indian Oil Corporation. On the number of occasions institute like food cooperation of India. Have issued instruction in writing that demand draft/ pay order should be obtained from the nationalization/ schedule bank. . 5. 7. There is the condition of government guarantee by NABARD while sanctioning credit limits to SCBs and DCCBs but no stage the commercial bank and regional rural banks are called upon to execute any Govt Guarantee while sanctioning reference by NABARD. 6. Hindustan Petroleum etc. The state cooperative banks are not able to formulate their respective y y y y policies for investment of their funds that include their surplus resources because of certain restrictions. 4.y 3. Prior approval of RBI is mandatory for opening of new branches of SCBs. The SCBs are required to submit the proposal for opening of new branches to RBI through NABARD. SCBs does not provide loan directly to farmers due to which they cannot keep pace the changing requirements of the farmers. whose recommendation is primarily taken into consideration while according permission.
FINDINGS & UGGESTOIONS FINDING y Majority of the respondent SUGGESTIONS: y The bank should adopt the were having housing loan from this bank. y Most of the people prefer to take long term loan which is more than 3 years. y The bank should improve the customer services of the bank to a better extent . credit cards. ATM. modern methods of banking like internet banking. etc y The bank should plan to introduce new schemes for attracting new customers and satisfying the present ones. y Easy repayment and less formalities are the main factors determining customer s selection of loans.
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