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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
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. 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.
a bank is one that accepts deposits from public and lends money. Few DEFINATIONS of bank are discussed below: THE CONCISE OXFORD DICTIONARY “Bank collects money from those who have it to spare or who are saving it out of their income. acceptance of deposits and lending. .” This definition brings out the two important functions of a banker namely. and It lends this money to those who require it.DEFINITION & FUNCTION OF BANK WHAT IS BANK? To a layman.
PHASES OF BANKING Phases of Banking Foundation Phase Expansion Phase Consolidation Phase Reforms Phase .
While the co-operative banks in rural areas mainly finance agricultural base activities including farming. personal finance etc. judging by the role assigned to them. milk. the cooperative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. Their role in rural financing continues to be important even today. 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. cattle . but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks are an important constituent of the Indian Financial System.COOPERATIVE BANK The cooperative bank has history of almost 100 years. the expectations they are supposed to fulfill their number and the number of offices they operates. along with some small scale industries and self-employment driven activities. . The co-operative movement originated in the West. hatchery .
3 TYRE SOCIETY .
1949 at Shimla vide registration No.This bank ensures that its member central cooperative banks follow sound banking practices & observe strict financial discipline . 720 has a principle financing institutionof the cooperative movement in Punjab. the position of the Punjab State Cooperative Bank is extremely important as the whole credit system revolves around it.PUNJAB STATE COOPERATIVE BANK The Punjab State Cooperative Bank was established on 31st August. In the cooperative Banking structure.
STRUCTURE OF COOPERATVE BANKING The cooperative banking structure in India is divided into 4 components: a) Primary cooperative credit society b) Central cooperative banks c) State cooperative banks d) Landing development banks .
ACTIVITIES ACTIVITIES 1.AGRICULTURAL& DEVELOPMENT STABILIZATION FUND 3. NON-FARM SECTOR 2. OWN FUNDS: . EMPLOYEES WELFARE FUND SOURCES OF FUNDS .DEPOSITS BORROWINGS FROM NABARD .
REVOLVING CASH CREDITS. 3.NON FARM SECTOR LOANS . 1. .SHORT TERM AGRICULTURAL ADVANCES.INVESTMENT OF FUNDS STATUTORY REQUIREMENTS LOANS & ADVANCES. SHORT TERM AGRICULTURAL RECOVERY (DCCBs). 2.
Initially four Central Cooperative Banks namely Jalandhar.in a single case (composite loan). Later on all the Central Cooperative Banks were allowed to composite loan(block capital and working capital up to Rs. Kapurthala and Ludhiana were permitted by the Registrar Cooperative Societies. 62500/- .000/. 50.NON-FARMINGSECTOR OF BANKING 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. Punjab to undertake financing of Non Agricultural activities up to Rs. Nawanshahr.93.
Under the loaning portfolios. small road transport operation shekari education loan facility consumer durable loan: to salary earners to non salary earners non farm sector loan loan against national saving certificate . various Non Agricultural Schemes 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.
documents. Chandigarh. The reason being that the branch has provisions for only these five finds of loans.TOPIC UNDERTAKEN FOR THIS STUDY During the training period. A detailed study of the procedure for applying to these loans. required and other formalities relate to these loans were studied. thus is providing these non agricultural loans only. These loans are stated as under: House Building Loan Personal Loan Consumer Loan Two Wheeler loan Education Loan . I concentrated only on five kinds of loans. which are pervaded by the Punjab state cooperative bank.
educational and vechile loans. 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. .What kind of loan have you taken from organization? INTERPRETATION: Kind of Loan House loan Personal loan Consumer loan Educational loan Vehicle loan Other No.
000 to 50.000 50.000.INTERPERTATION: Table reveals that 8 % people prefer loan less than 20.000. 20 % respondents prefer 20.000-50. What is the amount of loan taken? Loan Amount Less than 20.000 20. of Respondent 4 10 6 30 Percentage (%) 8% 20% 12% 60% .000.1 lac More than 1 lac No.12 % prefer more than 1 lac and 60% of the respondents prefer more than 1 lac.
INTERPRETATION:Table shows that 64 % respondents take loan for more than 3 years. of respondent 6 10 32 Less than 1 year Percentage(%) 12% 20% 64% . 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 1 to 3 years More than 3 years No.
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. 4.What is the rate of interest you paying? Rate of interest paid by the No. of Respondent customers Less than 9% 9% to 12% More than 12 % 2 24 24 4% 48% 48% Percentage (%) .
How many time have you taken loan before? No. . of respondent Percentage (%) 58% 32% 10% INTERPRETATION: No. 32 % of the respondents took loan for 1 to 3 times and 10 % took loan for more than 3 times. of times loan taken Only once 1 to 3 times More than 3 times 29 16 5 Table reveals that 58 % of the respondents took loan once .
of Respondent Percentage (%) 12% 10% 34% 38% 6% INTERPRETATION: Reasonable rate of interest 6 More schemes Less formalities Easy repayment Any other 5 17 19 3 Table reveals that 38 % take loan because banks provide easy payment. . more schemes .34% take loans because of less formalities and other respondents take loan because of reasonable rate of interest.to take loan from the institute? Reason for taking loan No.
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 .What is the average time taken for the processing of the loan? INTERPRETATION:Average time forNo.
Of respondent 34 6 10 Percentage (%) 68% 12% 20% Yes No Can’t say .12 % are not satisfied and 20 % can’t say.Are you satisfied with the amount & period of INTERPRETATION: installment? Table reveals that 68% are satisfied with the amount and period of installement . No.
satisfied with the following factors? .
32% say that its above average and 8% says that its below average.How would you rank the facility provided by the bank? INTERPRETATION: Rank the facility Above average Average Below average No. . of respondent 16 30 4 Percentage (%) 32% 60% 8% Table shows that 60% of the respondent says that facility provided by the bank are average.
of responedent Excellent Good Average Poor 12 26 12 1 Percentage(%) 24% 52% 24% 2% . Rank the customer servicesNo.24% says that it is excellent and another 24 % says its average and only 2 % says its poor.How would you rank the customer service of the bank? INTERPRETATION: Table shows that 52% of the respondents says that customer service of the bank is good.
of respondent Public banks Private banks Cooperative bank 7 15 28 Percentage (%) 14% 30% 56% . 30 % from the private banks and 14 % from the public banks Preferable banks in future No.If you are in need of loan in future from which in banks would you INTERPRETATION: prefer to take loan? Table shows that 56 % of the respondents wil prefer loans from cooperative banks.
Hence. No.INTERPRETATION: Do bank is able to The you think the bank is able to reach upto your satisfaction level? 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.of respondent 37 13 Percentage (%) 74% 26% Yes No .
of respondent 39 9 2 Percentage (%) 78% 18% 4% .Would you like to refer the bank to your friends and relatives? Bank refer to others Always Sometimes Never No.
Some of the problem area that arise out of the applicability of the cooperatives legislative are: • Deliberate control of cooperatives by the government. 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. Low Level of recovery. . Administered rate of interest structure for a long time.PROBLEMS FACED BY COOPERATIVE BANKS 1. • Nomination of board of director by the government. High transaction of cost. • Participation of the nominated director by the government. • Deputation of government officials to cooperative institution etc. 2. Due to cooperative legislation and administration mandates Govt interference has become a regular feature in the gay –to-day administration of the cooperative institution.
On the number of occasions institute like food cooperation of India. Hindustan Petroleum etc. . 5. The SCBs are required to submit the proposal for opening of new branches to RBI through NABARD. 6. 4. 3. SCBs does not provide loan directly to farmers due to which they cannot keep pace the changing requirements of the farmers. Indian Oil Corporation. whose recommendation is primarily taken into consideration while according permission. 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. The state cooperative banks are not able to formulate their respective policies for investment of their funds that include their surplus resources because of certain restrictions. 7. Prior approval of RBI is mandatory for opening of new branches of SCBs. Have issued instruction in writing that demand draft/ pay order should be obtained from the nationalization/ schedule bank.
etc The bank should plan to introduce new schemes for attracting new customers and satisfying the present ones. credit cards.FINDINGS & UGGESTOIONS FINDING Majority of the respondent SUGGESTIONS: The bank should adopt the were having housing loan from this bank. modern methods of banking like internet banking. Easy repayment and less formalities are the main factors determining customer’s selection of loans. ATM. The bank should improve the customer services of the bank to a better extent . Most of the people prefer to take long term loan which is more than 3 years.