Banking System

Development of banking system is an inventible precondition for the healthy rapid development of national economy structure. Banking system has contributed mush in the development of the developed countries of the world and hence a banking institution is indispensable in a modern society. It plays pivotal role in the economic development of a country and forms the crore of the money market in an advance country.

 What is Bank?
The word bank derived from the Latin word ‘bancus’ or ‘banca’ meaning a bench. A bank refers to the function of accepting deposits, lending, repaying the deposited money on demand and functioning as an agent of any national economical structure, the development of banking is an inventible precondition. The trace of the development of banking is found as early as 2000 B. C. but in the middle 12th century banks were established at Venice and Genoca. Bank of England comes up in 1694 and in 1786 the General Bank of India was established for the first time in India.

 Banking System in India:In the economic development of a nation banks occupy an important place. Indian money market comprises both organized as well as unorganized sectors. The unorganized sectors include money lenders and indigenous bankers and largely cater to the needs of person living in villages and small towns. Financial institutions in the organized sector have grown significantly. Among the institution in organized sector of the Indian money market commercial banks, Co-operative banks, regional rural banks, development banks etc. In 1770, first Indian bank known as Bank of Hindustan was started and was closed down twenty years later. Later on, the East India Co. started three presidency banks with government participation. These were: Bank of Calcutta – 1806 Bank of Bombay – 1840 Bank of Madras – 1843

Other banks such as Allahbad Bank came into existence in 1865 Alliance Bank of simla in 1875. The first Indian joint stock bank known as Oudh Commercial Bank was setup in 1880 and Punjab National Bank was launched in 1894. There were as many as 648 commercial banks in India by the and of 1947 and as many as 161 banks failed during 1913-14. Thus, there was a great need of an institution to control and regulate banking in the country. As a result, the RBI was setup in 1935 for regulating the banks in the country. A scheme of social control on banks was enforced through statutory measures with effect from 1-2-1969. The banking industry saw a revolution after 14 major commercial bank were nationalized in June, 1982. More than 90 % of the bank deposits came under the control of the government. Agricultural Credit Development, Rural Planning and Credit Cell and Agricultural Refinance and Development Corporation were combined together to setup national bank for agriculture and rural development in July, 1982. Later, the Exim Bank and National Housing Bank were setup in 1984 and 1988 respectively.

1.2 Structure of Banking in India:
1. 2. 3. 4. Commercial Banking Central Banking Development Banking Co-operative Banking

Others are: 5. Exim banks 6. Regional rural banks 7. Land development banks 8. National Bank for Agriculture and Rural Development (NABARD) 9. Industrial Development of Bank of India 10. Small Industrial Development Bank of India

Co-operative Banks:

Co-operative bank are a group of financial institutions organized under the provisions of the co-operative Act of the state. These banks are essentially Cooperative credit society organized by members to meet their short term and medium term financial requirement. Co-Op. Banking came into existence in India in 1904 when the first co-op. society was to provide cheap credit to the members who are small people with small mean and small need and finance. Another objective was to inculcate the saving habit among the agriculturist and make them take advantage of cooperation from fellow members of the society. The co-op. bank becomes state moment in banking has since then makes good progress from credit co-op. society.

Structure of Co-operative Bank:

State Co-Operative Banks

Central Co-Operative Banks

Primary Co-Operative Banks

Structure of Co-operative Bank
State Co-operative Bank (Apex) Central Co-operative Bank (District)

Agricultural Credit

Non-Agricultural Credit

1. Primary Agricultural Credit Society 2. Grain Banks 3. Farmer’s Service Societies

Urban Co-Op. Banks

Employees Co-Op. Credit Societies

Co-operative Bank

In which the District Co-operative Bank is at top and at the middle Central Cooperative Banks and at last positions Primary Co-operative Credit Society at Bottom side.Formation of the co-operative bank In India structure of Co-operative Banks is three-tier or pyramidal size. Co-Operative bank are formed on the principle of Co-Operation to extend credit facilities to farmers and small-scale industrial concerns and promote in general the habit of thrift and self help among the low and middle income group of the society. . India has progress in banking organization. Besides. so specially. its structure is to be widened in Nagarik Co-operative Banks and Land Development Banks.

to 2:00 p.m. It is the first bank which started in Katargam Road area. And register on 25th. clerks and peons all must sign the attendance register these records are send to Managing Director of the bank. Katargam Road.m. Now mostly Katargam area is coveres by AACO Bank. The AACO Bank which is fully computerized and which made a giant leap and good impression in banking sector just in a very short time period. . SA3148 of 1998.m.:. Nr. Saturday 10:30 a.2536772 2539361 2. Anath Balashram. February 1999 with register No.Name & Address of the Bank:The Akhand Anand Co-operative Bank Ltd. Surat-395004 Ph.2 Time Keeping System: The Akhand Anand Co-operative Bank has no separate department for time keeping system headed by Manager/CEO.1 History and Development of the Bank The Akhand Anand Co-operative Bank (AACO Bank) was setup with license No. to 3:30 pm. offices. The time of working of the bank: Monday to Friday 10:30 a. June 1999. The Akhand Anand Co-operative Bank has attendance system for all those are related with the bank like managers.UBD Guj. 1699 on 6th. 2.

Patel Mr. PravinbhaiN. Manojbhani O. Manager . Patel Mrs. Desai Mr. Dilipbhai Trivedi Mr. Kakadia Mr. Patel Mr.4 Board of Directors: Name Mr. Kishorbhai T. Vyas Mr. Dipakbhai Soni Post Chairman V. Danawala Mr. Chairman Director Director Director Director Director Director Director Director Director Director Director Director Director Adviser Manager/CEO Asst. Shethwala Mr. Dhanjibhai N. Hiralal J. Popatbhai M. Bhanuben N. Godhani Mr. Naresh C. Kiritbhai S. Kanubhai B. Popatbhai N. Rajeshbhai P Bhagat Mr. Pankajbhai J. Patel Mr. Desai Mr. Patel Mr.2. Patel Mr. Upadhyay Mr. Jivanbhai P. Sureshbhai C. Patel Mr. Dineshbhai N.

Surat. Surat Peoples Co-Operative Bank. Indus Ind Bank . 6. State Bank of India.. 7. Surat. 5. Surat. Gujarat State Co-Operative Bank. Surat District Co-Operative Bank Ltd. 3.2. 2. 4. State Bank of Mysore.3 Bankers: 1. HDFC Bank Ltd.

Manager Officer Clerk .2. Asst.5 Organisational Structure of The Bank: Chairman Vice-Chairman Managing Director Board of Director Manager\CEO.

7. 8. 6. Audit Class Dividend.02 Lac 4.10 Crore A 9% 2001-2002 4888 70.6 Financial Position Of The Bank :Capital Structure: No. Total Deposit.65 Lac 8.19 Crore 4.95 Lac 7.58 Crore 0.80 Crore A 12% .94 Lac 12. Share Capital. 3. 1999-2000 3829 57. Total Loan. Details Member. 1. 2.2.47 Crore 2.35 Lac 11.02 Crore 3. W. Profit. 4. 5.26 Crore 8. Capital.81 Crore 20.84 Lac 5.24 Crore A 2000-2001 4255 63.

.

o r 2 I e n 1 0 4.26 2.47 10 8 6 4 2 0 1999-2000 2000-2001 Year 2001-2002 Total Loan Chart 5 4 R C s r 3 .02 4.Total Deposit Chart 12 R s L .58 1999-2000 2000-2001 Year 2001-2002 .19 7. a c I s n 11.81 3.

3. LOANS AND .

1 What is Loan? Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific purpose. they have to be repaid in periods beyond a year and are. . Loan may be short-term.ADVANCES 3. it is called a loan” 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. therefore longterm liabilities. In other wards “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. The loan amount is normally repaid in installments. Loan are promises for future payment. or long-term. medium-term.

3.Loans & advances are classified in to secured & unsecured.7 LOAN PROCEDURE: Generally various banks adopt following procedure for Loan: Submit the Application Appraisal of Loan Documentation Convene to Loan Applicant To Issue Draft or Pay Order 1. Submit the Application: - . A partly covered loan or advance is partly covered by the security of assets. the market value of such securities being less than the amount that has been lend or outstanding at any time.  Secured Loan or Advance: Secured loan or advance means a “Loan or advance made on the security of assets the market value of which is not at any time less than the amount of such loan or advance”  Unsecured Loan or Advance: An unsecured loan or advance means a “Loan or advance not so secured.

The risk involved in term lending is much more than the risk in short-term lending because the loans are given to new undertakings. If the loan applicant want to borrow loan of huge amount. photo copy of last three year income tax returns file etc. A term loan may be appraised by considering four different aspects of the proposal. Managerial Competence 4. Then loan applicant should collect the document for borrowing loan. 1 Technical Feasibility 2. estimated of costs. or for the modernization and expansion of existing undertaking. Before sanctioning any loan a banker should assure himself that the borrowing concern shall be able to earn sufficient income to pay the loan installments. every documents and requirement are needed according to the Co-Operative Bank rate.. They are. The methods of analysis and standards to be adopted for an appraisal of loans are more similar to investment decisions than to short-term lending. its management.First of all the loan borrower should application to the particular bank. It is extremely difficult to have a clever-cut formula for the appraisal of term loans. returns and flow of funds. financial position the amount of loan and the period of its repayment. Documentation: After completing the step of submit the application & appraisal system of loan. so at a time strong documents are presented by loan applicant against bank like evident of share holder. sales. The borrower is required to fill out a common application from which seeks comprehensive information about proprietor’s and loan borrower’s bank ground and his business network and as well as his cost of project & economic consideration. The main task of the lending bank is to make sure that the income generated from the loan is sufficient to repay the loan installments according to the terms and conditions of amortization. original and photo copy of property’s document. since many factors have to be considered such as the type of borrowing bank & its activities. The appraisal of loan included projection of future trends of output. Financial Feasibility 3. If loan applicant has no any recommendation from share holder so firstly the bank becoming share holder . Appraisal of Loan: The Bank follows good appraisal system for effective lending and to make easy repay in future way. Another important factor is whether to give weightage to profitability or to its broad economic significance in the development of the economy. 2. Economic Feasibility 3. and for loan period. the market potential.

Convene to Loan Applicant:After colleting the necessary documents. an officer of the recipient bank review it to ascertain whether it is complete for processing. .3 Advantages of Loans: 1. and finally bank made draft of company’s name otherwise if the quotation of city area So at a time the CoOperative Bank made pay order of company’s name. To Issue Draft Or Pay Order: At the last stage is that. margin and one installment of loan. to take new technology adopt so at time machinery loan & other term loans are used to expand business activity.of his bank by issuing share to them. Then the Co-Operative Bank held meeting of his loan applicant and sanctioned the particular loan. 5. day and time for delaying particular meeting. who wants to borrow loan from banks and satisfied his goal or objective. when the application is considered complete. To Develop Business: For developing of business large capital is needed. 3. 4. so above types of documents are used to borrow loan & advances from the bank. otherwise excepted it in other contingent situation and gives new date. then in the stamp document needs sing of loan applicant and grantor after finishing the document or stamp procedure. Then it gives to company through loan applicant. Then bank gives to them pay order or draft. Generally this meeting is convened on Monday and Thursday in every week. this system ensured a greater degree of self-discipline on the borrower as compared to the cash credit system. borrower should pay its stamp duty. After convening of loan applicant and sanctioning loan. 2. If the any loan borrowers want to purchase machinery or vehicle from out of city so he need quotation of that particular company. Financial Discipline on the Borrower: As the time repayment of the loan or its installment is fixed in advance. Thus above procedure is followed by the loan applicant.

4. Indistinct period: Though the loans are for fixed periods but in practice roll over.e. 3.2 Kind of Loans:Generally Banks grant loans for different periods like shorts.3. it is to be negotiated with the banker. 2. Complexity for document:Loan documentation is more comprehensive as compared to each credit system. 3. medium and long and for different purpose. i. 3. . they are renewed frequently. However.4 Drawback of Loans: 1. Inflexibility: Every time a loan is required. Abuse of funds:Banks have not control over the use of funds borrowed by the customer. borrowers may borrower in excess of their exact requirement to provide for any contingency. banks insist on hypothecation of the assets purchased with loan amount. Periodic Review of Local Account: Whenever any loan is granted or its renewal is sanctioned the banker gets an opportunity of automatically reviewing the loan account. 4. To avoid it. Profitability: The system is comparatively simple. interest accrues to the bank on the entire amount lent to a customer. Broadly the loans granted by banks are classified follows.

debenture. farmers industries. etc. such as artisans. it is called a composite loan.Bank Loans Short term Loans Medium & Long terms Loans Composite Loans Consumption Loans 1. 2. Composite Loans:When a loan is granted both for buying capital assets and for working capital purposes. 3. These loans are granted against the security of tangible assets. Such loans are usually granted to small borrowers. plant & machinery. Term Loans (Medium Loans): Medium and long-term loans are usually called term loans. etc. These loans are granted for more than a year and meant for purchase of capital assets for the establishment of new units and for expansion or diversification of an existing unit. These loans are usually secured by the tangible assets like land. Such loans constitute a part of the project finance which Industrial enterprises are required to raises from different sources. Short Term Loans: Short-term loans are granted to meet the working capital needs of the borrowers. 4. etc. share. building. Consumption Loans:- . mainly the movable assets like goods and commodities.

Though normally banks provide loans for productive purposes only. 3. . Proposal put forward in the board meeting. 6. Complaint of suggestion received from board. but as an exception loans are also granted on a limited scale to meet the medical needs or the educational expenses or expenses related to social ceremonies etc. of the needy persons. Disbursement of loan. Submission of Loan Application with all relevant documents normally required and submitted by borrower. Scrutiny and appraisal of loan. Documentation and signing of paper. Approval of board. Loan Procedure of AACO Bank: The loan application passes through the following process: 1. 5. 7. 2. Such loans are called consumption loans. 4.

00. Generally loan of vehicle is completed within the 2 years but above one lac loan or generally four-wheeler loans is completing within the 3 years with monthly installment.000/ Rate of Interest: Particular Vehicle Loan Interest Rate 16% Stamp Duty 220 Margin: Margin for vehicle loan is 25% to 35%. Security: Bank provides loans against equitable mortgage and against hypothecation. Vehicle Loan: The Akand Anand Co-Operative Bank provides loan for purchasing various types of vehicle. 15. The Akand Anand Co-Operative Bank is performed good rate by issuing other type of loan so bank also bring new changes time to time for increasing its effectiveness. . Types of Loans 1.Various Type Of Loans & Advances Issued By Anand Co-Operative Bank The Akand From the year 1999 The Akand Anand Co-Operative Bank was issued various types of Loan & Advances. Limit:Maximum limit for vehicle loan is Rs.

purchase of house. Book and other original documents are given to them. 2. Limit: Maximum limit for housing loan provided by the bank is Rs. 15. which may give rise to a pecuniary liability.000/-. The transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advances by way of loan an existing or future debt or the performance of engagement. (Register Certificate) Book of vehicle is kept by particular banks. Housing Loan: The bank provides loan for construction of house.C. Documents require for vehicle loan: All Basic Document  Xerox for rationing card  Two photo of loan applicant  Light bill/ Telephone bill Xerox  Housing tax bill Xerox  Xerox of driving license  Income proof / Evident  For loan applicant as well as two guarantors  Director Signature is require for recommendation  Photocopy of property file is submitted to bank  Duplicate copy of city survey  R.00. renovation of house etc. When totally installment of vehicle loan is closed at that time R. Rate of Interest: Loan Particular Housing Loan Interest Rate 16% Stamp Duty 220 .C.

000/ Rate of Interest: Particular Machinery Loan Interest Rate 16% Stamp Duty 220 Margin:Margin for machinery loan is 25% to 35%.00. Limit:Maximum limit for machinery loan is Rs. Security:Bank needs quotation of any dealer who furnishes the new technology to them. . Machinery Loan: The Akand Anand Co-Operative Bank sanctioned loan to applicant who want to adopt new technology.  Documents require for Housing Loan:  All Basic Documents  Basic Document of guarantors  Original copy of housing documents bank  Any one grantor’s housing document is need are submitted to 3. 15. machines. Security: Bank provides loans against equitable mortgage of property to be purchased or altered. equipments etc. for expanding his business.Margin: Margin for housing loan is 25% to 35%.

he may be allowed to overdrew his current account. Cash Credit & Over Draft: A Cash Credit is an arrangement by which a banker allows his customer to borrow money up to certain limit against either a bond of credit by one or more sureties more securities. which related to short-term capital. Limit:Maximum limit for cash credit loan is to be sanctioned as per len-laws of the Bank.  Rate of Interest: Particular Cash Credit Over Draft Interest Rate 15.75% 16% Stamp Duty 320 320 Margin: Margin for cash credit loan is 25% to 35%. This is the most common mode of borrowing by large commercial and industrial house in India because of the advantage that customers need not borrow the whole amount at one times but may draw such amount as he requires at different times. The bank provides these facilities because it helps in any contingency situation and to solve other problem. when a customer require temporary accommodation. . and pay interest on the amount actually used by him. Requirement for Machinery Loan:  All basic documents  Evident of shareholder  Invoice of purchasing new machinery  Machinery list & Xerox of bills  Statement of sales – purchase of last three month 4. usually against collateral securities. In others.

scheme + 2% Stamp Duty 100 Margin:Margin for F. applicant takes loan on his fixed deposit certificate during this time certificate lien under the Bank.D. certificate. loan is 25% of F. Company 5.D.D. This loan is based on renewal and any applicants invest his money in Fixed Deposit scheme with different rate.  Evident of Shareholder  Evident of other income of proprietor or partner  Firms’ last three years balance sheet or Income tax return copy  Provision sheet last of firm  Partner document if firm occur partnership firm  Statement of last six months of form’s account in the bank or other banks To include certificate of company registration & Articles of Association if applicant is private Ltd.  Requirement for Cash Credit & Over Draft: All Basic documents are needed for loan applicant as well as both grantors. Fixed Deposit Loan: The Bank provides loan against Fixed Deposit. ] .Security: Bank needs quotation of any dealer who furnishes the new technology to them. Security:F.  Rate of Interest:Particular Fixed Deposit Interest Rate F. certificate. In fixed deposit loan.D.

D.  Rate of Interest: Particular Surety Loan Interest Rate 16% Stamp Duty 220  Requirement for Salary employer (Blue Collar’s Job):  All basic documents. It gives only governmental clerk Bank issuing loan up to Rs. and also provide Down – Payment facilities. the bank should take an applicant in the prescribed form from the borrower in whose name the certificate stand. The banker should grant the advance only after made on the certificate or after new certificates are issued in the name of the bank. 6. Kisan Vikash Patra Etc.000/. 7. Surety Loan: The Akand Anand Co-Operative Bank is issued this type of short-term loan. which is approved by appointing organization.D. 25. Loan against Government Security: The Bank provide loan like against Government Securities such as National Saving Certificate. Requirement for F.with few document requirements for them. Before making an advance on the security of the National Saving Certificate & Kisan Vikas Patra.  Salary employer ought to two grantors who are work in same organisation or working under that organization and also necessary certificate of salary of two guarantors. These certificates should then be sent to the concerned post office or the issuing authority for transfer to the lending bank’s name. Loan: All basic documents are needed for loan applicant as well as two guarantors.  Salary employer must present salary certificate. .  Certificate of F.

 Certificate of NSC & KPV. Security: Bank needs quotation of machines and valuation report of house. Rate of Interest: Particular Fixed Deposit Interest Rate 16 % Stamp Duty 100 Margin: Margin for government security loan is 25% of NSC & KPV certificate. 8.  Rate of Interest: Particular Interest Rate Stamp Duty Mortgage Loan 16% 220 Margin: Margin for cash credit loan is 25% to 35%. Limit: Maximum limit for mortgage loan is 15.000/-. Hypothecation: The bank provides loan against valuation reports of house and machinery. Security:NSC & KPV certificate.00.  Requirement for Machinery Loan:  All basic documents  Quotation of machine  Invoice of purchasing new machinery  Valuation report of house . ]  Requirement for government security Loan: All basic documents are needed for loan applicant as well as two guarantors.

10 11.60 11. Security Surety Loan 5% 10% 3% 1% Hypothecation Loan Self employed Loan 6% 1% .GRAPHICAL PRESENTATION OF SANCTIONED LOAN: (In various sectors) (In Lacs) Particular Machinery Loan Housing Loan Cash Credit Overdraft Loan Against FD Loan Against Govt.19 4.94 14.36 20.07 23.01 18.31 114.05 2001-02 51.10 61.65 Loan Sanctioned in 2000-01 32% Machinery Loan Housing Loan Cash Credit Overdraft 17% 25% Loan Against FD Loan Against Govt. Security Surety Loan Hypothecation Loan Self employed Loan 2000-01 41.35 3.19 3.11 2.92 79.76 20.88 185.30 8.

26 % 135.35 51.19 930.92 79. Security 3% 4% 5% 1% 5% 1% 27% Surety Loan Hypothecation Loan Self employed Loan  Comparison with The Varachha Co-Operative Bank Ltd:( ) indicate to minus figure Loan Akhand Anand operative Bank 2000-01 2001-02 Co.Loan Sanctioned in 2001-02 42% Machinery Loan Housing Loan Cash Credit Overdraft Loan Against FD 12% Loan Against Govt.88 185.76% 134.Varachha Co-Operative Bank 2000-01 2001-02 Growth Rate (34.03 % Machinery Loan Housing Loan Cash Credit 41.25) % 5.50 1.66% Growth Rate 23.10 61.31 114.24 .72 1988.7 0 611.881.

43% 13.76 20.96 207.58% .39% -50. Bank. Akhand Aanand C0-Op.11 2.30% 100.00% 11. Security Akhand Aanand C0-Op.29% 23.93% 148.26% 13.25% 0 5.43 148.76% 0.39) % 134.95% (24. Varachha Co-Op.73 121.40 169.00% 70.05 3.00% Machinery Loan Housing Loan Cash Credit Self Overdraft Loan Loan employed Against FD Against Loan Govt.50 106.Self employed Loan Overdraft Loan Against FD Loan Against Govt. Ltd.26 52. Bank.8 70.30 8.26% 135.58% (50.00% -24. -50. Security 200.19 4.30% 98.29% 74.03% 150.93% 48. Bank Ltd.00% -34.36 5.66% 5.00% -100.98 31.95 % 48.26) % 85.65 3. Ltd.43% 50.00% 169.94 11.

.

.

bank . Comparison of Loan Sanctioned in 2000-01 by the both Co-Op.

5 61.76 85. Ltd.19 207. bank 1800 1600 1400 1200 800 600 611.72 1000 185. Varachha Co-Op.43 600 930. Security 0 200 Akhand Aanand C0-Op.98 41.92 200 0 Machinery Loan Housing Cash Credit Self Loan employed Loan Overdraft 3. Security Akhand Aanand C0-Op.31 51.96 2.881. Bank Ltd.70 .26 Loan A gainst FD Loan Against Govt.05 98. Varachha Co-Op. Bank.5 20.73 79.35 1. Bank. Ltd.65 3.4 0 M achinery Loan Housing Loan Cash Credit Self employed Loan Overdraft Loan Against Govt.3 31.8 400 74.19 1988.11 121.88 114. Bank Ltd.36 52.24 2000 11.1 0 400 Loan Against FD 8.  Comparison of Loan Sanctioned in 2001-01 by the both Co-Op.94 106. 4.2000 1800 1600 1400 1200 1000 800 11.

 Bank has continuously got the audit class ‘A’ in every year. . The Akhand Anand Co-Operative Bank provides speedy effective and good interest rate on deposit.  In case of interest of loan is slightly higher than the other banks.  The Akhand Anand Co-Operative Bank is totally computerized.  The recovery of loan is speedy than other Co-Operative bank.  The Akhand Anand Co-Operative Bank is providing life insurance to their employees.  The growth rate of sanctioning Loans is much higher as compare to The Varachha Co-Operative Bank Ltd.  The process of loan and advances is not difficult than other banks. The services providing by the bank to its customers is better than the other Co-Operative bank.  As compare to previous year sanctioning of loan is in increasing rate  The Akhand Anand Co-Operative Bank have good image in the CoOperative society in spite of its limited working area.

.  The bank has to provide ATM (Automatic Teller Machine) facility to its account holders.  Customers are increases day by day so bank has to increase its network.  The bank has to plan properly for deposit and make efforts for increase the deposit.  The bank has to provide VAT (View Account Terminal) facility to its customer. Bank should decrease the interest rate so that the bank can increase its customers  Bank should provide “Tally-Banking” facility to their account holder so the account holder can easily know about their account balance. The bank has required to open its branches in other part of the city.

 “Banking & Insurance”  Prin. J. Rajani  “Banking Theory & Practice”  Dr. Patel  Prof. D. P. Srivastav Himalaya Publication House  “Annual Reports of the Bank” . N. Gami  Prof. H. K. S. B.

Miscl.24. Member Fee 5.000.00 33.41.05 9.00 28.00 54.007.881.030. 2.77.48 Rs.00 5. Office Exp. Rs.95 24.000.27. Daily Comm. 70.94. Income Total Expenditure Deposits’.09 1.00 77.00 1.425.199. Stationary & Advertisement Exp.40 54. Travel & Petrol Exp.95 20.725.523.34.862. Loans’ etc Interest Wages Expenditure etc Rent.420. N.294.45. Locker Rent 2.566. 8. 1. Annual Meeting Exp.447. Collection 6.41.035.00 4. Renovation & Depreciation Exp.32.730.930.48 .646.Annexure: . 7.00 21.862.836.94. Exp.294.24. Audit Fee 4.490.00 2.09 1. Electricity etc DICGC Insurance Premium Postcard & Telephone Exp. Rs. A.242.42. Incidental Charge 3.14. 3.21.00.54.00 1.00 2. Tax. Bank Assoc. P.36.200.00 5.99 1.00 1.79 33.94. Reserve Net Profit C/F to Balance Sheet Total Rs. Insurance. Miscl.A Profit & Loss of the Akhand Anand Co-operative Bank At year ended 31st. Other Expenditure: 1.00 1.711.47.41.69 8. March 2002 Income Interest and Discount Commission Exchange Other Income: 1.

Accrued but Not Receive 8.500. Deposits Fixed Deposit Saving Deposit Current Deposit 4. Bank Govt.86.98. Credit to The Surat Dist.593. State Co-op.000. Reserve and Other Fund Reserve Fund Bed Debt Equity Dividend Building Fund Donation Fund Nominal Member Fee 3.00.635.00 .96. Loan & Advances Rs.69.19. Bank 5. Interest Payable 7.00 18.0 0 1000.00.1 0 3.46.972. Other Liabilities 9.00 70. Outward Bill Collection 6.543.294.709.13.00 20.080.985. Co-op.43.00 1. 2002 Of The Akhand Anand Co-operative Bank Particular Source of Fund 1.65. Security 4.00 38.00 13.5 11.33.023.97.62.87.63 34.51 4.314.00 40.597.334.00 50.16.968.879.60.41. Bank Share Central Co-op.951.Share Capital Authorized Capital Subscribe Capital 2.84.95 4.93. Rs.500.05.00 2.000.94.99.69.00 2. 2.106.04.05. Profit & Loss A/C Total Application of Fund 1.2 5 2.071.19.81 9.00 12.00 47.23 1.0 0 1.63 5.360. Cash in Other Bank Current A/C Fixed Deposit Post Office Saving Scheme 3.00 12.400.52.919.069.12. Investment Share of Guj. Cash & Bank Balance 2.Annexure: -B Balance Sheet as on 31st March.00 20.74.79.444.000.93 8 5.844.00 17.23 1. Inst.35.

03.00 Less: Depreciation 3.04.01.76.00 Furniture 4.106.04.69 13.00 5.718.25 4.97.107.00 Walt 10.00 Less: Depreciation 1. Introduction on Banking System in India .40.138.42.070.19. 125585315.325.41.51 1.225.00 8.00 Vehicles 1.993.00 Counting Machine 1.00 20.14.25. Other Assets Total Rs.208.00 Less: Depreciation 11.46.4 4 1.00 Less: Depreciation 35.98.445.93.57.00 1.73 Particular Bring Forward 7. Fixed Assets Electric Fittings 35.00 1.280.00 Less: Depreciation 93. Bills Receivable Carry Forward 1.17.78 12.400.137.11.02.0 0 11.075.544.642.355.334.300.309.250.684.462.72. Rs.00 9.147.00 Less: Depreciation 4.901.Short Term Loan Middle Term Loan Long Term Loan Receivable Interest 6.00 4.864.20.37.718.00 Generator 41.120.00 37.00 Less: Depreciation 44.00 22.472.69.0 0 1.67.73 31.025.00 125585315.12.00 Computer 7.

Finding 6. Annexure  Comparison Study of Rate of interest on Loans & Advances with Varachha Co-Operative Bank Ltd.75% 16% Rate of Interest (VCB) 14% 15% FDR Rate+2% 14% 15% 14% 14% 14% Loan Type Vehicle Loan Machinery Loan Fixed Deposit Loan NSC/KVP Loan Self Employed Loan Cash Credit Loan Over Draft Loan Gold Loan - . Profile of Akhand Anand Co-Operative Bank 3. Comparison 5.2.: Rate of Interest (AACO Bank) 16% FDR Rate+2% 16% 16% 15. Suggestion 7. Bibliography 8. Loans and Advances System 4.