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Punjab State Cooperative Bank- Deposit & Credit Schemes

SUMMER TRAINING REPORT ON


PUNJAB STATE COOPERATIVE BANK- DEPOSITS AND CREDIT SCHEMES

A Study Conducted at: PUNJAB STATE COOPERATIVE BANK, MANIMAJRA From: 10th June, 2013 to 25th July, 2013

In partial fulfillment of the

Masters Degree in Business Management Batch (2012-14)

SUPERVISED BY: Mrs VARSHA GUPTA Asst.Prof

SUBMITTED BY: ARTI SAINI M.B.A 3rd SEM 12PBA007

School of Management Studies at Baddi University of Emerging Sciences and Technology, Himachal Pradesh.

Punjab State Cooperative Bank- Deposit & Credit Schemes

Punjab State Cooperative Bank- Deposit & Credit Schemes

ACKNOWLEDGEMENT
It is imperative for successful completion of a task to complement those who made that task work. I sincerely bow my head and thank the almighty for bestowing his blessings on me. This is utmost pleasure of mine, to show my heartfelt gratitude to those individuals who have given their considerate support and guidance. This project would not have been possible without them. I am falling short of words to express my sincere thanks to the management of Punjab State Co-operative Bank, Manimajra for providing me an opportunity to undergo training in their reputed organization. I am deeply motivated and encouraged after working with the very efficient and cooperative staff of PSCB. I am highly indebted to my faculty members of School of Management Studies, at Baddi University, for helping me in various ways. My sincere regards to my friends who worked with me all through the project and helped me in the noble accomplishment. I thank my parents who have always been my driving force to work hard and keep the learning process continuous and never ending.

Punjab State Cooperative Bank- Deposit & Credit Schemes

TABLE OF CONTENTS
SR.NO 1. 2. 3 4. 5. TOPIC Certificate Acknowledgement List of tabs Abstract/Summary INTRODUCTION Industry Company Background Project Detail Research Methodology Research Design Literature Review Chapterisation Data Analysis and Interpretation Limitations Conclusions Recommendations Bibliography Annexures PAGE NO. 2 3 5 6 7 13 37 38 39 40 45 46 58 58 59 60 61

6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Punjab State Cooperative Bank- Deposit & Credit Schemes

LIST OF TABS/FIGURES
SRNO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. TOPIC Banking Structure in India The Banking Matrix Structure of Cooperative Banking PSCB, No. of braches, Address and Date of Origin PSCB- Organization Structure Profit and Loss of PSCB branches for three consecutive years from 2010 to 2012 Target on Term Deposits for the financial year April 2013-March 2014 Interest Rates on Deposits with effect from 20.12.2012 Types of credit Schemes Target on Loans for the financial year April 2013-March 2014 Interest Rates on Loans with effect from 20.12.2012 Uses of Finacle PSCB-MM, Total No. Of Accounts PSCB-MM,Average Cash in hand PSCB-MM, Average Deposits PSCB-MM,Average Loans and Advances Eligibility Criteria for availing loans Analysis and Interpretation Charts Demographic Analysis Knowledge and Awareness among customers Co-relation analysis Expectations of Customers Comparison between PSCB(MM), Head Office & PSCB (total) of their annual profit Annexures Questionnaire Comparison Of Interest Rates PAGE NO. 7 9 15 21 22 23 26 26 27 31 31 33 34 35 36 36 43 46 49 53 55 57 61

19. 20.

Punjab State Cooperative Bank- Deposit & Credit Schemes

SUMMARY
The Cooperative Sector has been playing a significant role in the area of disbursing agricultural credit, providing market support to farmers, distribution of agricultural inputs and imparting cooperative education and training etc. The basic objective of the Cooperation Division is to design long term and short term strategies for reducing economic disparities between the downtrodden rural people and the rural rich as well as regional imbalances including rural and urban differences. In todays competitive environment where corporates are constantly searching for ways to keep a float and sustain the market share, they have to find newer and better ways to satisfy customer needs. To run any organization successfully the management needs to think always for the betterment of their service and product. Banking business is now expanding three folds and is facing tough competition. The Private sector along with the public sector is performing high on scale and ruling the markets. Adding to the glory, there are foreign banks that have also captured a commendable market share. Considering this, the State Cooperative Banks need to take such steps which assist them in marching ahead in the race and survival of the fittest. This has always been the motto of Cooperative Banks and in order to achieve this, we are hereby analyzing the level of satisfaction of PSCB customers and their expectations.

Punjab State Cooperative Bank- Deposit & Credit Schemes

BANKING INDUSTRY AN OVERVEIW


BANKING DEFINITION
In simple words, Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit. However, with the passage of time, the activities covered by banking business have widened and now various other services are also offered by banks. The Banking services these days include issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM services and online transfer of funds across the country/ world.

WHAT IS A BANK
Bank is a financial institution that undertakes the banking activity that is, it accepts deposits and then lends same to earn certain profit.

BANKING STRUCTURE IN INDIA


RESERVE BANK OF INDIA (APEX BANK) SCHEDU LED BANKS UNSCHE DULED BANKS

COOPERATIVE BANKS CENTRAL COOPERATIVE BANKS STATE COOPERATIVE BANKS PRIMARY AGRICULTURAL CREDIT SOCITIES

COMMERCIAL BANKS

PUBLIC SECTOR

PRIVATE SECTOR

FOREIGN BANKS

REGIONA L RURAL BANKS

SBI & ASSOCIAT ES

OTHER NATIONALISE D BANKS

Punjab State Cooperative Bank- Deposit & Credit Schemes

BANKING-HISTORY AND DEVELOPMENT


Banking in India originated in the last decades of 18th century. The first banks were The General Bank OF India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank which is in existence is the State Bank of India, which originated from the Bank of Calcutta in June 1806, which almost immediately became Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under the Charters from the British East India Company. For many years the Presidency Banks acted as quasi-central Banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which upon Indias independence, became State Bank OF India. Foreign Banks started to arrive, particularly in Calcutta, in the 1860s. The Comptoire dEscompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862. Then a French colony followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the British Empire, and so became a Banking Center. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi Movement. It inspired local businessmen and political figures to establish banks for and of Indian Community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The Reserve Bank of India, Indias central banking authority, was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. In 1949, the Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI. NATIONALISATION Despite the provisions, control and regulations of Reserve Bank OF India, banks in India except SBI, continued to be owned and operated by private persons. By the 1960s the Indian Banking Industry had become an important tool to facilitate the development of the Indian Economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization Of Banking Industry. The Government of India issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Within 2 weeks of the issuance of ordinance, the Parliament passed the Banking Companies (Acquisition and

Punjab State Cooperative Bank- Deposit & Credit Schemes

Transfer of Undertaking) Bill, and it received the presidential approval on 9 th August 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for nationalization was to give the government more control of credit delivery. With this, the government of India controlled around 91% of Banking Business. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between the nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of Indian Economy. LIBERALISATION In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a few number of Private Banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with the Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has witnessed strong contribution from all the three sectors of Banks, namely- Government Banks, Private Banks and Foreign Banks. The next stage of Indian Banking is now being set up with the proposed relaxation in the norms of Foreign Direct Investment. The Current FDI limit for Public Sector banks (including SBI) is 20% and for private Banks, the limit is 74% with some restrictions.

Punjab State Cooperative Bank- Deposit & Credit Schemes

TYPES OF BANKS
The banking industry can be divided into following sectors, based on the clientele served and products and services offered: 1. Retail Banks 2. Commercial banks Public Banks Private Banks 3. 4. 5. 6. Cooperative banks Investment Banks Specialized banks Central banks Retail Banks: Retail banks provide basic banking services to individual consumers. Examples include savings banks, savings and loan associations, and recurring and fixed deposits. Products and services include safe deposit boxes, checking and savings accounting, certificates of deposit (CDs), mortgages, personal, consumer and car loans. Commercial Banks: Banking means accepting deposits of money from the public for the purpose of lending or investment. Commercial Banks provide financial services to businesses, including credit and debit cards, bank accounts, deposits and loans, and secured and unsecured loans. Due to deregulation, commercial banks are also competing more with investment banks in money market operations, bond underwriting, and financial advisory work. Commercial banks in modern capitalist societies act as financial intermediaries, raising funds from depositors and lending the same funds to borrowers. The depositors claims against the bank, their deposits, are liquid, meaning banks are expected to redeem deposits on demand, instantly. Banks claims against their borrowers are much less liquid, giving borrowers a much longer span of time to repay money owed banks. Because a bank cannot immediately

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Punjab State Cooperative Bank- Deposit & Credit Schemes

reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up on a given day to withdraw all their money. THERE ARE TWO TYPES OF COMMERCIAL BANKS, PUBLIC SECTOR AND PRIVATE SECTOR BANKS. Public Sector Banks: Public sectors banks are those in which the government has a major stake and they usually need to emphasize on social objectives than on profitability. Private sector banks: Private sector banks are owned, managed and controlled by private promoters and they are free to operate as per market forces. Investment Banks: An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities. Investment banks aid companies in acquiring funds and they provide advice for a wide range of transactions. These banks also offer financial consulting services to companies and give advice on mergers and acquisitions and management of public assets. Cooperative Banks: Cooperative Banks are governed by the provisions of State Cooperative Societies Act and meant essentially for providing cheap credit to their members. It is an important source of rural credit i.e., agricultural financing in India. Specialized Banks:

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Specialized banks are foreign exchange banks, industrial banks, development banks, export-import banks catering to specific needs of these unique activities. These banks provide financial aid to industries, heavy turnkey projects and foreign trade. Central Banks: Central banks are bankers banks, and these banks trace their history from the Bank of England. They guarantee stable monetary and financial policy from country to country and play an important role in the economy of the country. Typical functions include implementing monetary policy, managing foreign exchange and gold reserves, making decisions regarding official interest rates, acting as banker to the government and other banks, and regulating and supervising the banking industry. These banks buy government debt, have a monopoly on the issuance of paper money, and often act as a lender of last resort to commercial banks

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Punjab State Cooperative Bank- Deposit & Credit Schemes

COMPANY BACKGROUND (PUNJAB COOPERATION AT A GLANCE)


ORIGIN OF COOPERATIVE BANKS IN INDIA
Cooperative movement is quite well established in India. The first legislation on cooperation was passed in 1904. In 1914 the Maclagen committee envisaged a three tier structure for cooperative banking viz. Primary Agricultural Credit Societies (PACs) at the grass root level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks at state level or Apex level. The first urban cooperative bank in India was formed nearly 100 years back in Baroda. In the beginning of 20th century, availability of credit in India, more particularly in rural areas, was almost absent. Agricultural and related activities were starved of organized, institutional credit. The rural folk had to depend entirely on the money lenders, who lent often at high rate of interest. The cooperative banks arrived in India in the beginning of 20th Century as an official effort to create a new type of institution based on the principles of cooperative organization and management, suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for money lenders, to provide timely and adequate short term and long term institutional credit at reasonable rates of interest. In the formative stage Cooperative Banks were Urban Cooperative Societies run on community basis and their lending activities were restricted to meeting the credit requirements of their members. The concept of Urban Co-operative Bank was first spelt out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative Bank. Provisions of Section 5(CCV) of Banking Regulation Act, 1949 (as applicable to Cooperative Societies) defined an Urban Co-operative Bank and was made applicable in 1966.

IMPORTANCE OF COOPERATIVE BANKS IN INDIA


Cooperatives have played a vital role in improving the economic conditions of farmers and accelerating the pace of development in Punjab. Development through Cooperatives was a dream cherished by freedom fighters of India ever since Independence. Cooperative principles ensure harmonious development, through democratic management and governance.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Cooperatives have brought both the services and resources at the doorsteps of villagers in Punjab. These have been enthusiastically serving the people of Punjab in area such as agriculture, housing, spinning, sugar production, weaving and dairy etc. The performance of Cooperative Movement in Punjab is very impressive. Cooperatives constitute the major source of institutional credit for agriculture. Cooperatives are playing a pivotal role in socio-economic development of the State. These are key instruments of the State to develop and sustain its rural economy, which is primarily agrarian. The Department of Cooperation has accelerated Cooperative movement in Punjab during the last three years

MISSION
Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency and structural reforms.

TEN COMMANDENTS OF PUNJAB GOVERNMENT (DEPARTMENT OF COOPERATION)


Support and sustain agriculture as a multi-functional occupation in the states. Provide desired impetus and diversification of agriculture in the state. Liberalize and adjust structures to deliver commodities and services to the farmers at the competitive price. Assume quality leadership for branded products with high mark-ups in the agriculture, sugar, food, milk and handloom sectors. Promote vertical integration for creating strong bonds with farmers and improve product quality. Modernize and professionalize organization and management. Be action driven and become virtual Reduce operational costs and increase efficiency Increase membership and business with greater people's participation Ensure honesty, transparency and check corruption

VALUES
A Cooperative is a system voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.

PRINCIPLE FEATURES OF CO-OPERATIVE BANKS

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Voluntary and Open Membership Democratic Member Control Members Economic Participation Autonomy and Independence Education Training and Information Cooperation among Cooperatives Concern for Community Cooperative banks are partially financial intermediaries. The sources of their funds are: i. Central and State Government; ii. The Reserve Bank Of India, NABARD; iii. Other cooperative institutions; iv. Ownership funds and v. Deposits or debenture issues Cooperative banks belong to the money market as well as to the capital market. Cooperative banks are subject to CRR and liquidity requirements as other scheduled and non-scheduled banks are. However, their requirements are less than commercial banks.

STRUCTURE OF COOPERATIVE BANKING


RBI NABARD

SCBs

SLDBs

UCBs

CCBs

CLDBs

PACS

PLDBs

BRANCHES OF SLDBS

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Punjab State Cooperative Bank- Deposit & Credit Schemes

ABBREVIATIONS USED IN CHART: SCBs: State Cooperative Banks SLDBs: State Land Development Banks UCBs: Urban Cooperative Banks CCBs: Central Cooperative Banks CLDBs: Central Land Development Banks PACS: Primary Agricultural Credit Societies PLDBs: Primary Land Development Banks

TYPES OF COOPERATIVE BANKS


1) STATE COOPERATIVE BANKS(SCBs) State cooperative banks are a federation of central cooperative banks and act as a watchdog of the cooperative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from Reserve Bank of India. State cooperative banks lend money to central cooperative banks and primary societies and not directly to farmers. 2) CENTRAL COOPERATIVE BANKS(CCBs) Central cooperative banks are the federations of primary credit societies in a district and are of two types those having a membership of primary societies only and those having a membership of societies as well as individuals. The funds of the bank consist of share capital, deposits, loans and overdrafts from state cooperative banks and joint stocks. These banks finance member societies within the limits of the borrowing capacity of societies. 3) PRIMARY AGRICULTURAL CREDIT SOCIETIES(PACS) Cooperatives have played a major role in the supply of finance to agriculture sector for the development of land, irrigation system and for its mechanization. The agricultural cooperative credit in Punjab is divided into two sectors mainly, one dealing with short and medium- term credit and the other with the long- term credit. The long term credit is awarded from the Punjab State Cooperative Land Mortgage Bank at the apex and the Primary Cooperative Land Mortgage Banks at district/tehsil level. 4) PRIMARY COOPERATIVE BANKS(PCBS) They are non- agricultural societies. These are of two types Urban Cooperative Banks and Salary Earners Societies. Development of PCBs is looked after by the RBI. The RBI and IDBI offer them concessional refinance facility on a selected basis. They operate in urban and semi urban areas. They provide housing finance and loans and advances for various purposes such as petty trade and industry

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Punjab State Cooperative Bank- Deposit & Credit Schemes

POLICY AND PLANNING


Structural and Administrative Reforms 1. Punjab Cooperative Societies Act, 1961. (Proposed amendment bill 2007). 2. Downsizing and dispersal of bureaucracy to improve efficiency and delivery. 3. Formulation and Introduction of Code for Accounting and Administrative procedures in all Apex Cooperative Federations. 4. Computerization of Operations and Records. 5. Human Resource Development through Intensive Training and Up-gradation of knowledge and skills. 6. Intensive Application of Information Technology. 7. Promotion and Development of Insurance Cooperatives. 8. Creation of a fund at Apex and Central Level for development of Primary Cooperatives. Promotion of New Generation Self-Reliant Cooperatives 1. Development of Women Cooperatives and self-help groups. 2. Urban Cooperative Banks. 3. Multi-purpose Cooperative Societies in rural and urban areas. 4. Greater thrust on Milk Producers' Cooperative Societies. Dis-investment from Sick and Weak Cooperatives. 1. Dis-investment from Cooperative Spinning and Sugar Mills merits greater attention and thrust. 2. Amalgamation and restructuring of Primary Cooperatives whose imbalances are more than 50% Liberalisation of Cooperative Marketing. 1. Direct sale and purchase of agro-chemicals by PACS. 2. Direct sale and purchase of fertilizers by PACS. 3. Greater autonomy to Rural Consumer Cooperatives for supply and distribution of essential commodities in the villages. Strengthening, Modernization and Diversification of Cooperative Credit System

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Punjab State Cooperative Bank- Deposit & Credit Schemes

1. Development of Infrastructure including building infrastructure 2. Human Resource Development 3. Greater thrust on Non-Farm Financing, particularly for rural un-employed youth. 4. Greater thrust on Direct Finance to the farmers: Gradual Abolition of B-Component of short- term agricultural loans. 5. Greater thrust on Insurance Linked loaning to the farmers. 6. Reduction in Administrative and Management Costs of Funds to provide cheaper credit to farmers. 7. Introduction of ATMcum-Debit Card 8. Introduction of personal banking on the pattern of private and commercial banks. 9. Efforts towards Merchant Banking & De-mating of Shares. 10. Efforts to increase the non-fund business. 11. Introduction of Housing Finance Schemes in selective banks. Convergence of Services Development of "Sehkarta Bhawans" at District Level to accommodate all Offices of the Department and Cooperatives to ensure easy access to facilities for the members of Cooperatives and general public. Training Policy The Cooperatives of Punjab have paid special consideration on the Training of the staff, for which they have formed a special Training Policy.

Training Institutions Regional Institute of Cooperative Management, Sector-32 Chandigarh. Punjab Institute of Coop. Training, Ltd; Chandigarh. Junior Level Training Cell (JLTC), Chandigarh. Agriculture Cooperative Staff Training Institute, Jalandhar Milkfed Training Centre, Jallandhar

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MAJOR APEX COOPERATIVE FEDARATIONS COOPERATIVE FINANCING INSTITUTIONS


PSCB Punjab State Cooperative Bank Ltd PSCADB Punjab State Cooperative Agricultural Development Bank Punjab Urban Co-operative Banks

COOPERATIVE MARKETING & PROCESSING INSTITUTIONS


Milkfed Markfed Weavco Sugarfed

COOPERATIVE HOUSING DEVELOPMENT SCHEMES


Housefed

OTHER MAJOR COOPERATIVE INSTITUTIONS


Puncofed Labourfed Fruitfed PICT

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PUNJAB STATE COOPERATIVE BANK ORIGIN


The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla vide registration No. 720 and it is the principle financing institution of the cooperative movement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where it moved in 1963 to its present building at Chandigarh. In the cooperative Banking structure, the position of the Punjab State Cooperative Bank is extremely important as the whole credit system revolves around it. It has 19 branches and 3 extension counter in Chandigarh. There are 20 District Central Cooperative Banks having 808 branches/extension counters all over Punjab, mostly in rural areas of the State.

MISSION
Promotion and sustenance of economic interest & providing easy finance, cost effective and quality banking services to customer & PACs

OBJECTIVES
To serve as a balancing Centre for Cooperative societies in the State for Cooperatives Societies in the state of Punjab registered under Cooperative Societies Act, 1961for the time being in force. To promote the economic interest of the member banks and cooperative Societies in accordance with the cooperative principles and to facilitate the development and funding of any Cooperative society registered under the said Act. To carry on banking and credit business

VISION
Enforce the future challenges with grit and take every possible step for the development of our institution. More steps will be taken to provide efficient services.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Present customers will be retained and other customers will be attracted to increase market share. Bank will attract maximum deposit (especially low cost deposit) to strengthen its financial resources so as to reduce its dependency upon NABARD. Bank while diversifying its loan portfolio, will provide medium term and long term loans to the maximum extent. Every effort will be made to open account of all farmers of the State. Bank will receive deposit from farmers and meet their credit needs. Bank, for the sake of development of state, will strive hard to provide maximum and better services to customers especially farmers and for this wherever necessary, every effort will be made to modify the schemes. Bank will prepare its business plan every year and by implementing it , goals set will be achieved Bank will professionalize and modernize the business.

PUNJAB STATE COOPERATIVE BANK BRANCHES


SR.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. NAME OF BRANCH Main branch-34, S.C.O. 175-187,Sector-34,CHD Branch Office-8, S.C.O. 130-31, Sector-8C,CHD Branch Office-10, S.C.O.19, Sector-10,C.H.D Branch Office-17, S.C.O.17, Sector-17,C.H.D Branch Office-20, S.C.O.34, Sector-20 C, C.H.D Branch Office-22, S.C.O.2453,Sector-22C,C.H.D Branch Office-27, S.C.F.3, Sector-27 D,C.H.D Branch Office-30, S.C.O.9, Sector-30 D,C.H.D Branch Office-32, S.C.O.378, Sector-32,C.H.D Branch Office-35, S.C.O.451-452, Sector- 35 C, C.H.D Branch Office-36, S.C.O.211, Sector-36 D,C.H.D Branch Office-37, S.C.O.392, Sector-37 C,C.H.D Branch Office-38, S.C.O.84, Sector-38 C,C.H.D Branch Office-40, S.C.O.232, Sector-40 D,C.H.D Branch Office-44, S.C.O.362, Sector-44 D,C.H.D Branch Office-47, S.C.O.60, Sector-47-D,C.H.D Branch Office Manimajra, Motor Market, MM, C.H.D DATE OF OPENING 10.02.2000 01.10.1977 05.01.1994 31.08.1949 04.04.1994 15.01.1971 24.01.1976 02.03.1990 05.10.1982 06.07.1982 13.12.1993 04.05.1979 04.04.1994 11.09.1989 29.04.1992 28.12.1985 24.10.1994

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18. 19. 20.

Branch Office- Ramdarbar, IND. Area II,C.H.D Branch Office-Sectt. , Punjab Civil Secretariat,C.H.D Extension Counter- Mini Sectt. 9 Mini Sectt., Sector-9 , C.H.D

04.04.1994 23.05.1972 23.05.1972

PUNJAB STATE CO-OPERATIVE BANK ORGANISATION STRUCTURE

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PROFITS AND LOSSES OF PSCB BRANCHES FOR THREE CONSECUTIVE YEARS FROM 2010 TO 2012(FIGURES IN LAKHS)
250

200

PSCB-8 PSCB-10 PSCB-17 PSCB-20

150

PSCB-22 PSCB-27 PSCB-30 PSCB-32

100

PSCB-34 PSCB-35 PSCB-36 PSCB-37

50

PSCB-38 PSCB-40 PSCB-44

0 2009-10 2009-11 2009-12

PSCB-47 PSCB-MM PSCB-MS PSCB-RD

-50

PSCB-SECTT

-100

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Punjab State Cooperative Bank- Deposit & Credit Schemes

PRODUCTS OFFERED BY BANK


1. Saving Bank A/c A saving bank A/c can be opened with an initial deposit of Rs.500/- without Cheque Book facility and Rs.1000/- with cheque book facility. Eligible categories to open SB A/c Any individual Joint Account with others in the form of either or survivor, Former or Survivor Minors Illiterate persons Blind person Joint Hindu Family Cooperative Societies, Clubs, Associations etc. Only 30 withdrawals are allowed per half year for a savings bank account exceeding which service charges will be levied. Maximum limit of withdrawal form is Rs. 20,000/2. Saving Bank- No frill A/c This account can be opened by an individual without furnishing any resident proof or any proper introduction. Minimum amount with which account can be opened is Rs.10/- and the balance here should not exceed Rs. 50000/- , otherwise, it will become SB A/c. No cheque book is allowed to be issued to customers 3. Term Deposit A/c The deposit is received by the bank for a specific period which is withdraw able after expiry of said period. Eligible categories to open SB A/c Any individual Joint Account with others in the form of either or survivor, Former or Survivor Minors Illiterate persons Blind person Joint Hindu Family Cooperative Societies, Clubs, Associations etc. Minimum amount to be kept is Rs.1000/-

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Punjab State Cooperative Bank- Deposit & Credit Schemes

The terms and conditions regarding rate of interest and time period are determined by bank from time to time. 4. Recurring Deposit A/c It can be opened with certain initial deposit wherein a Depositor needs to deposit money by way of monthly installments over a stipulated period. The period may be 2, 24, 36, 48, 60 months etc. On the expiry of the period, the accumulated amount along with interest is paid in lumpsum. All the parties are eligible for this account The rate of interest applicable on recurring deposit will be the rate of interest applicable on term deposit for that period Minimum monthly installment for this account is Rs.100/-. Maximum period is 10 years 5. Current A/c Initial deposit of Rs.5000/-. Eligible parties Sole Proprietorship Partnership firm Club/Association Religious institution Government/Semi-Govt Local bodies

6. Locker A/c Facility of locker is available in four different sizes viz. small, medium, large and extra large. A prospective buyer who wants the locker facility has to have a Saving Bank account with the bank so that annual Locker Rent can be Debited from that Account Lockers can be hired in individual capacity or jointly with others.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

TARGET FOR TERM DEPOSITS FOR THR FINANCIAL YEAR APRIL 2013-MARCH 2014

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% PSCB PSCB-MM 30.03.2014 30.12.2013 30.09.2013 30.06.2013

INTEREST RATES ON DEPOSIT WITH EFFECT FROM 20.12.2012


SR.NO SCHEMES 1. 2. 3. 4. 5. 6. 7. Saving Bank A/c Saving BankNO frill A/c Term Deposit A/c Term Deposit A/c Term Deposit A/c Term Deposit A/c Term Deposit A/c Period from Period up to Rate of Rate of interest(Public) interest(Sr.citizen) 4.00% 4% 4% 5.00% 45 days 90 days 179 days 6.50% 6.75% 7.00% 4.00% 4% 4.50% 5.50% 7.00% 7.25% 7.50%

7days 15days 31 days 46days 91 days

14 days 30 days

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8. 9. 10. 11. 12. 13. 14.

Term Deposit A/c Term Deposit A/c Recurring Deposit A/c Current A/c Locker A/c Term Deposit A/c Term Deposit A/c

180 1year 2 years 3 years

<1 year <2years 3 years And above

7.75% 8.75% 4.00% 0 0 8.50% 8.50%

8.25% 9.25% 4.00% 0 0 9.00% 9.00%

DIFFERENT TYPES OF LOAN SCHEMES 1. PERSONAL LOAN SCHEME


Beneficiary Purpose Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment Employees of Punjab Govt, PSU, boards, Corporations etc. Credit facility for meeting out socio-economic needs 12 times of gross monthly salary 14% No Margin required Maximum 5 years 2 good sureties as per satisfaction of the bank Rs. 2276 for 5 years

2. CONSUMER DURABLE LOAN


Beneficiary Purpose Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment Employees of Punjab Govt, PSU, boards, Corporations etc. Credit facility for meeting out Socio Economic needs. 12 times of gross monthly salary 14% No margin required Maximum 5 years 2 good sureties as per satisfaction of the Bank Rs. 2276.00 for 5 years

3. VEHICLE LOAN SCHEME


Beneficiary Purpose Individual, Firm, HUF, Trust, Coop. Societies or a Company For the purchase of new vehicle for business and personal use

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment

Maximum amount up-to Rs. 10.00 Lac or 80% of cost of vehicle 11.5% 20% Maximum 5 years 2 good sureties as per the satisfaction of the bank besides the hypothecation of the vehicle Rs. 2174.00 for 5 years

4. URBAN HOUSING SCHEME


Beneficiary Purpose Individual and Members of Coop. Housing Societies Purchase of built up house or flat, construction of new house, repairs/ renovation and addition of existing house in urban areas. Maximum amount up-to Rs.20.00 Lac. 10% 25% Maximum15 years First mortagage of house Property to be financed by the bank Rs. 1074.00 for 5 years

Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment

5. CASH CREDIT FACILITY TO TRADERS


Beneficiary Purpose Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment Individual, Sole Prop, Firm, Coop. Societies or a Company For meeting working capital requirement of businss Maximum amount up-to Rs.25.00 Lac 13% 25% Renewable on annual basis Immovable properties for the value of 150% of the amount

6. TWO WHEELER LOAN TO FARMERS

Beneficiary Purpose Loan Amount Rate of Interest Margin

An agriculturist having land in his own name or his family member For the purpose of new two wheelers Maximum amount up-to Rs.0.50 Lac 11.5% 15%

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Repayment Period Collateral Security Installment

Maximum 5 years 2 good sureties as per the satisfaction of bank Rs.1087.00 for 5 years

7. RURAL HOUSING SCHEME


Beneficiary Purpose Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment Maximum amount up to Rs. 15.00 lac 10% 15% Maximum 15 years Agricultural land for the value of 100% of the loan amount besides the mortgage of house to be financed by bank Rs. 1074.00 for 15 years Individual and member of Coop. Housing societies Purchase of built up house, construction of new house, Repairs/ renovation and addition of existing houe in rural areas

8. COOPERATIVE EDUCATIONLOAN SCHEME CHILDREN OF POOR FARMERS, DALITS, BC ETC


Beneficiary Purpose Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment Children of poor farmers, Dalits, BC and other poor sections To provide financial assistance to deserving and meritorious students for pursuing higher studies in India or abroad Maximum amount up to Rs. 10.00 lac 7.25% No margin required The installment will start after completion of course Maximum 5 years Mortgage of landed property value of 100% of the loan amount Rs. 1992.00 for 5 years

9. LOAN AGAINST PROPERTY


Beneficiary Purpose Any individual To offer instant solutions relating to ocio-economic needs and business Needs such as childrens higher education, Travel, daughters marriage Medical emergencies etc Maximum amount up to Rs.25.00 Lac 14% No margin required Maximum 6 years

Loan Amount Rate of Interest Margin Repayment Period

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Collateral Security Installment

Rs. 2061.00 for 6 years

10. LOAN SCHEMES FOR EARNEST MONEY


Beneficiary Purpose Any individual To meet financial requirement towards earnest money deposit to book residential plot/built house of flat by Govt. Approved Agency As per Scheme of the Agency As fixed by the bank No margin required On receipt of refund from housing board No immovable Security is required. Only two post dated Cheque Required

Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment

11. EDUCATION LOAN


Beneficiary Purpose Loan Amount Rate of Interest Margin Repayment Period Collateral Security Installment Salaried employees of Coop. banks, Punjab Govt/ Chandigarh Administration and its boards and Corporation To provide financial assistance to deserving and meritorious students for pursuing higher studies in India or abroad Maximum up to Rs. 10.00 Lac 9% No margin required The installment will start after completion of course. Maximum 5 years Mortgage of landed property value of 150% of the loan amount. Rs.2002.00 for 5 years

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Punjab State Cooperative Bank- Deposit & Credit Schemes

TARGET FOR LOANS FOR THE FINANCIAL YEAR APRIL 2013-MARCH 2014 (Figure in Lakhs)

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 CONSUMER LOAN PERSONAL LOAN HOUSING LOAN VEHICLE LOAN EDUCATION LOAN PSCB- MM PSCB-TOTAL

INTEREST RATES ON LOANS WITH EFFECT FROM 01.07.2011


SR NO. SCHEMES RATE OF INTEREST 15.00% 15.00% 13.00% up to Rs.3.00 lac and 13.50 % above that 10.50% 13.00% 11.50% 10.00% 7.25% RATE OF INTEREST (Sr.citizen) 15.00% 15.00% 11.00%

1. 2. 3.

Personal Loan Scheme Consumer Durable Loan Vehicle Loan Scheme

4. 5. 6. 7. 8.

Urban Housing Scheme Cash credit Facility to Traders Two Wheeler Loans to Farmers Rural Housing Scheme to Farmers Cooperative Education Loan

10.50% 13.00% 11.50% 10.00% 7.25%

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Punjab State Cooperative Bank- Deposit & Credit Schemes

9. 10. 11.

Loan against Property Loan Scheme for earnest money Education Loan

14.00% 9.00%

14.00% 9.00%

FINACLE SOFTWARE
Finacle core banking solutions is a comprehensive, integrated, yet modular and agile business solution, addressing all the core needs of banks, in easy-to-configure modules. Finacle provides all building blocks of business functionality, enabling users to configure products and processes flexibly in order to adapt to a dynamic environment. With a 360 degree single source view into customer accounts, banks can empower customers with relevant information and delight them with the right offerings, presented at the right time through the right channel. Finacle is centralized, multi-currency, multi lingual, functionally rich solution that addresses the retail and corporate banking requirements. TYPES OF USER GROUPS IN FINACLE GENERAL USER This user group performs the regular banking and front office functions. Example Opening of accounts, creation and verification of financial items. SYSTEM OPERATORS This group is in charge of executing system related functions such as data backup and data restore. DATA BASE ADMINISTRATOR These are responsible for up keeping and maintaining database. They prepare various reports for the use of general users. INSPECTION AUDIT This group performs routine audit in banks These user groups have been divided on the basis of kind of banking operations they perform. In order to use the software the user groups are required to login through their unique Ids and passwords.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

FINACLE USES

33

Punjab State Cooperative Bank- Deposit & Credit Schemes

PSCB MANIMAJRA
Pscb- Manimajra was formed in 1994 and is located in centre of Motor Market Manimajra, near Fun Republic and is easily accessible to all the business and Service class working in the Manimajra township.

PSCB-MM (ORGANISATION STRUCTURE) 1 Branch Manager, 1 Assistant Manager, 1 Head Cashier, 3 Sub-ordinate staff, 1 Clerk, 1 Security Guard SERVICE COUNTERS AT PSCB- MANIMAJRA
Savings and Current Accounts Counter Fixed Deposits Loans Counter Cash Deposit and Withdrawal Clearing of Cheques Issue of Cheque Books

PSCB-MANIMAJRA, TOTAL NUMBER OF ACCOUNTS


7000 6000 5000 4000 DEPOSITS 3000 2000 1000 0 2010 2011 2012 LOANS

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Punjab State Cooperative Bank- Deposit & Credit Schemes

PSCB-MANIMAJRA, AVEREAGE CASH IN HAND (FIGURES IN LAKHS)

AVERAGE CASH IN HAND


8 7 6 5 4 3 2 1 0 31/03/2010 AVERAGE CASH IN HAND

31/03/2011

31/03/2012

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Punjab State Cooperative Bank- Deposit & Credit Schemes

PSCB-MANIMAJRA, AVEREAGE DEPOSITS (FIGURES IN LAKHS)

700 600 500 400 300 200 100 0 2010 2011 2012 Savings Deposit Term Deposit Current Deposit

PSCB-MANIMAJRA, AVERAGE LOANS AND ADVANCES

AVERAGE LOANS AND ADVANCES


600 500 400 300 200 100 0 2010 2011 2012 AVERAGE LOANS AND ADVANCES

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Punjab State Cooperative Bank- Deposit & Credit Schemes

PROJECT DETAILS
In todays competitive environment where corporates are constantly searching for ways to keep a float and sustain the market share, they have to find newer and better ways to satisfy customer needs. To run any organization successfully the management needs to think always for the betterment of their service and product. Banking business is now expanding three folds and is facing tough competition. The Private sector along with the public sector is performing high on scale and ruling the markets. Adding to the glory, there are foreign banks that have also captured a commendable market share. Considering this, the State Cooperative Banks need to take such steps which assist them in marching ahead in the race and survival of the fittest. This has always been the motto of Cooperative Banks and in order to achieve this, we are hereby analyzing the level of satisfaction of PSCB customers and their expectations.

RATIONALE OF STUDY
The Object here is to enhance my knowledge in Banking Industry. The proposed project is a window giving me a view into gigantic and comprehensive Banking Industry. The PSCB Schemes are chosen as the Project Topic because the Banks Cooperative credit and deposits business is expanding day by day, and it contributes maximum in the Rural Banking Industry. Apart from its pertinence and performance, the cooperative banking measures to solutions and roads to its advancement will be discussed in this project.

OBJECTIVES OF STUDY
Market trends in the field of Deposits and Credit Financing. Market Potential of Punjab State Co-operative Banks. To Study some of the Schemes of Punjab State Co-operative Bank in detail and idea of types of Schemes available. To conduct a Comparative Study of PSCB Schemes and other Banks. To find out main obstacles while availing different schemes under PSCB.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Brief idea about the benefits available to Punjab State Co-operative Societies Employees and customers. Recent Development in Market and Punjab State Co-operative Bank in the field of deposits and credit

NEED OF THE STUDY


To study the different facilities offered by the Punjab state cooperative bank. It provides empirical data for policy makers that are assisted towards formulating appropriate policy environment for the operations of Punjab State Cooperative Bank. The study is also of significance to future researchers as literature review, and further provoked research in the area of lending and portfolio management.

RESEARCH METHODOLOGY
RESEARCH PROBLEM Measuring the level of satisfaction prevailing among customers and their expectations in context with PSCBs schemes. RESEARCH DESIGN Research deign is exploratory and descriptive which helps me to explore the factors influencing the perception of customers. SAMPLING DESIGN SAMPLE SIZE The sample size is 20 that include local customers that regularly visit the bank. SAMPLING TECHNIQUE Simple Random Sampling has been followed.

DATA COLLECTION

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Both primary and secondary data have been collected for meeting the objectives of current study. For the purpose of collection of primary data, personal interview of the respondents was conducted. An unbiased, undisguised structured questionnaire was prepared which was administered to respondants for the purpose of getting the information. The questionnaire consist questions covering both deposits and loan schemes. For the purpose of secondary data, secondary sources of information like magazines, newspapers, journals, studies conducted in past, have been referred. The main sources of secondary data in the study are: 1. Banks Detail Books 2. Banks website RESEARCH INSTRUMENT Questionnaires permit us to gather information that cannot be found elsewhere in any secondary sources like books, newspapers and internet resources. Hence, questionnaire survey was the best method to collect data for this study. ANALYSIS TECHNIQUE The questionnaire is having alternative choices. Analysis has been done with help of charts, bar graphs, pie charts, likert scaling and co-relation.

SCOPE OF STUDY The scope of study is limited to customers visiting Punjab State Cooperative Bank, Manimajra. Present study has been restricted to time period from June 2013 to July 2013.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

LITERATURE REVIEW
The Cooperative Sector has been playing a significant role in the area of disbursing agricultural credit, providing market support to farmers, distribution of agricultural inputs and imparting cooperative education and training etc. The basic objective of the Cooperation Division is to design long term and short term strategies for reducing economic disparities between the downtrodden rural people and the rural rich as well as regional imbalances including rural and urban differences. It much is admitted that though co-operative movement in India has not indeed succeeded in curing all the economic and social evils, yet it has no doubt, led to some beneficial results.

BENEFICIAL RESULTS:
1) Spread of banking Habit: With the progress of co-operation the banking habit is slowly but steadily developing in rural and urban areas. 2) Social benefit: Co operation constitutes an admirable means of popular social improvement. It tends to check the petty quarrels and bitterness of village life and binds together men into friendly relationship. 3) Growth of self Reliance: Co operative societies have created the spirit of self reliance among the village poor. The individual farmer who is not able to start a new venture alone due to limited farmer who is not able to start a new venture alone due to limited resources, can have a chance to do the same through co-operation. 4) Welfare Activities: Some societies have made liberal contribution towards various charitable and pubic purposes. It has also provided scholarships and aids for higher studies, research works. In this way the co-operative societies have promoted welfare activities. DEFINITION OF LOAN An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with

40

Punjab State Cooperative Bank- Deposit & Credit Schemes

interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern markets have developed many ways of managing this risk). IMPORTANCE OF LOANS IN TODAY'S LIFE Everyone needs money at every stage of their life. Sometimes it so happens that they have keen desire to purchase their favorite stuff but they are incapable to purchase due to shortage of money. Here lies a question that a person who does not have a good amount of money at particular time has no right to see dreams? Is he not authorized to fulfill his desires on time? Should he stop dreaming? No, because there is solution for these queries. Loans are available for these purposes only. Loans are provided to people for such critical circumstances which may occur at anytime. In anyone's life a situation may come when all of sudden you require cash. A moment when you do not want to borrow cash from your relatives. There may occur any kind of emergency when you need huge amount of money. There are various types of loans like home loans, personal loans, student loan, business loan etc. You can take any type of loan you need. For each and every kind of need, loans are available. Home loans are available for general home purposes like buying a luxurious car, going for a holiday trip, educational purpose, home improvement etc. Many of your desires can be fulfilled by this loan. Personal loans are available for personal requirements like wedding ceremony, purchasing a home etc. Student loan as it itself suggest is that it is provided basically to students for higher education. Students who want to study more but cannot afford can get apply for such loans and continue their studies. To start a new business you require a huge amount of money. A person willing to setup a business may not have that much cash which can meet out his requirements. For this business loans are available. You can get business loans to start and well establish a new business in market. Whatever may be the kind of loan, all have full fledged facilities. All kind of loans have their own importance. Above all, need of money explains the importance of loan. Appling for loan is very easy. Apply for that loan whichever is needed to you. But before applying you should go through different lender's policies and apply for that lender which is beneficial for you. Different lenders have different policies. If you get loan for long term with low rate of interest then it is beneficial for you. Due to competition, lenders are trying their best to attract people by providing different schemes which in turn is good for people. And cooperative bank is also one of them. WHAT IS A PROCEDURE? A procedure is a specified series of actions or operations which have to be executed in the same manner in order to always obtain the same result under the same circumstances (for example, emergency procedures). Less precisely speaking, this word can indicate a sequence of tasks, steps, decisions, calculations and processes,

41

Punjab State Cooperative Bank- Deposit & Credit Schemes

that when undertaken in the sequence laid down produces the described result, product or outcome. A procedure usually induces a change. IMPORTANCE OF PROCEDURE MANUALS One of the worst case scenarios of office problems involves a very important job that cannot be completed by the support of staff because of a lack of information on procedures. Nearly every company prepares job descriptions, but most neglect efficient, exact and up-to-date procedures manuals. A job description entails. A procedures manual gives a detailed and informative guide to how the job is done and enables someone to do the job in an emergency. Henrik Ibsen once said, "A community is like a ship; everyone ought to be prepared to take the helm." Likewise, an office - people should be able to pitch in and get the job done. This is possible only if they are provided with the proper instructions and materials. Every job entails a certain sequence of paperwork, routine tasks and contacts. For example, someone might be in charge of travel arrangements. A job description would state that the job entails making both domestic and foreign travel arrangements and processing invoices for this. A procedures manual would give the names and phone numbers of various travel agencies used for the firm, the best people to contact, how to process the invoices by explaining the forms and what department handles them. If the person in charge of travel arrangements is out of the office, someone else can open the procedures manual and follow the directions to do the job. Managers should see that every support staff employee in his or her department prepares a procedures manual for each job. At the beginning, the manager should meet with each employee individually and discuss the preparation of the manual so that its function is fully understood. An outline of what is expected should be prepared and given to each employee to follow. 1. What - A description of the task. 2. When - How often it is done. 3. Who - What people are involved in completing the task. 4. How To - Sequence of steps to complete the job. Phone numbers, addresses, chain of command, forms or materials needed (and where they are kept), potential problems and solutions based on experience. If office machines are involved (computers or word processors), a description of how they are operated for this particular job (i.e. if disks are used, where information is stored, how to retrieve the information, electronic mail, etc.). If a computer sequence is followed to complete forms or reports for the task, copies of each screen used should be made and placed in the procedures manual in the proper order. A "dummy" of each page should be filled out so that it can be easily followed.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

ELIGIBILITY CRITERIA FOR AVAILING LOANS IN PUNJAB STATE COOPERATIVE BANK Class Salaried Employees of Punjab Govt. PSUs, Boards, Corporations, Public Sector Banks, Aided Schools/colleges, Universities, General Insurance Companies, District Central Cooperative Banks, Cooperative Organizations in the State of Punjab. Minimum 21 years and maximum 57 years. 1 Year after the confirmation/ regularization. 15 Months Gross Salary or Rs.4.00 Lac (Whichever is less). As decided by the Bank from time to time with quarterly rests. Loan is repayable in equated monthly installments in the form of postdated cheques. The 1st installment will start after one month. No collateral security is required, only two guarantors known to the Bank (of the same institution as of the borrower). No employees will be given this loan facility who has defaulted in repayment of loan in any other scheme.

Age Service Tenure Loan Limit Rate of Interest Payment Of Loan Security General

DOCUMENTS REQUIRED TO GET A LOAN PRE-SANCTION Application Form Latest Photographs Bank account statements Proof of Income Employer certificate of identity Proof of continuity of current Job. Proof of Residence NOMINAL MEMBERSHIP NUMBER POST SANCTION Demand Pronote Agreement (NJ Stamp Paper for Rs.15/-) Signature verification (By Branch Manager) Post Dated Cheques Two guarantors (NJ Stamp Paper for Rs.15 in each case)

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Punjab State Cooperative Bank- Deposit & Credit Schemes

DEFINATION OF DEPOSITS In deposit terminology, the term- Bank Deposit refers to an amount of money in cash or check form or sent via wire transfer that is placed into a bank account. The target account for the Bank deposit can be any kind of account that accepts deposits.

Bank Deposit Example: For example, a Bank Deposit is generally made when opening an account or in the course of routine business or personal transactions that involve placing funds with the bank for future use. Bank deposits can be made in a number of different ways. The most direct way is to walk into a bank or a bank branch in which you hold an account. You are then usually required to fill in a Bank Deposit slip with the particulars of your account and the amount of money you wish to deposit. In addition, Bank Deposits can be made via wire transfer, as well as through a direct deposit plan from employers in many cases. SCHEMES OFFERED BY PUNJAB STATE COOPERATIVE BANK (MANIMAJRA) Savings Account Current Account Long Term Deposit Account Fixed Deposit Account Recurring Deposit Account No Frill Account DOCUMENTS REQUIRED FOR OPENING DEPOSIT ACCOUNT IN PSCB Residence Proof PAN Card 2 Latest Photographs One Identity Proof.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

CHAPTERISATION
CHAPTER 1 INTRODUCTION
A. Introduction to Banking Industry B. Company Background C. Project Detail

CHAPTER 2 Research Methodology & Research Design CHAPTER 3 Data Analysis & Interpretation CHATER 4 CONCLUSION
A. Limitations B. Recommendations C. Recommendations

CHAPTER 5 ANNEXURES
A. Questionnaire B. Comparison of loan Interest Rates of different Banks C. Comparison of Deposit Interest Rates

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Punjab State Cooperative Bank- Deposit & Credit Schemes

ANALYSIS AND INTERPRETATION


DEMOGRAPHIC ANALYSIS BASED ON GENDER, MONTHLY INCOME AND OCCUPATION GENDER CLASSIFICATION
10 8 6 4 2 0 MALE FEMALE Gender Classification Gender Classification FIRMS

ANALYSIS AND INTERPRETATION: Out of the 20 respondants, 15 are Individuals holding self operated Accounts. 5 accounts are Jointly operated by owners of firm. These are usually customers of Current Accounts. Though not included in Sample but it was observed that PSCB schemes are open to all categories of persons viz. Individual Joint Holders Minors Illiterate Blind Joint Hindu Family Cooperative Societies, Clubs and Associations.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

MONTHLY INCOME

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

FEMALE MALE
FIRMS MALE FEMALE

FIRMS

ANALYSIS AND INTERPRETATION: Out of the Female Group, 2 respondants had nil income because one of them is a housewife and the other is student. The male respondants are maximum in high income group that is between Rs.30,000 to 40,000. Maximum firms fall in high income group. PSCB deposit schemes are also available to those who have poor or nil income. The primary purpose of this class people is to save whatever money they can afford to and earn good amount of interests on that.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

OCCUPATION

10 9 8 7 6 5 4 3 2 1 0

Business Employement

Loans Borrowers

Depositors

ANALYSIS AND INTERPRETATION: PSCB Loan Schemes are only available to Salaried employees of Punjab Government, PSUs, Boards Corporations, Universities, Public Sector Banks, Premier Medical Institutes, Punjab State Cooperative Bank, District Central Cooperative Banks and other co-operative organizations in state of Punjab. Hence all the respondants who are also customers of Credit schemes are salaried employees and are working in the above mentioned institutes only. On the other hand, there is no such condition in Deposit schemes. Out of 10 respondants of deposits schemes, 50% are business men and left 50% are employees with various public and private institutions.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

ANALYSIS OF KNOWLEDGE AND AWARENESS AMONG CUSTOMERS TYPES OF ACCOUNTS

8 7 6 5 4 3 2 1 0

Personal Loan Consumer loan Savings Account Current Account

Loans

Deposits

ANALYSIS AND INTERPRETATION: In loan Schemes, personal loan and consumer loan are more prevalent in Manimajra branch. In Deposits, customers of two schemes have been covered that is Savings Account and Current Account. Apart from above mentioned deposit schemes- Recurring Deposits , Savings No frill and Fixed Deposits accounts are also available with the bank.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

HOW DO CUSTOMERS COME TO KNOW ABOUT THE SCHEMES AND SERVICES OF THIS BANK?
NO. OF CUSTOMERS

Personal Visit Advertisement Word Of Mouth Other

ANALYSIS AND INTERPRETATION: Most of Customers come to know about the bank by visiting them personally. Cooperative Banks are lacking in the field of marketing and have no as such established marketing infrastructure. It does not pay much heed to advertisement. The employees of bank are very co-operative. They explain the various schemes to customers and their explanation is conducive to the need of customers. Word of mouth is also a source of information.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

WHAT WAS THE PURPOSE BEHIND AVAILMENT OF SCHEMES?

No. Of Customers
12 10 8 6 4 2 0 No. Of Customers

Purchase of Purchase of Education of Marriage of Property Consumer children children goods

Savings

ANALYSIS AND INTERPRETATION: The sole purpose behind investments in Deposits is Savings. Personal Loans have been taken for personal reasons such as education of children, their marriage etc. However the trend shows that there is huge investment in property out of the loan amount. The PSCB customers consider this investment to be safe and reliable. Purchase of consumer goods is a special purpose loan scheme available. 10% of customers from the sample have taken benefit from this scheme.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

WHAT ARE THE REASONS FOR TRANSACTING WITH PSCB?


6 5 4 3 2 1 0 Faster Processing Interest Rates Brand Image Margin Amount Others

Loans Deposits

ANALYSIS AND INTERPRETATION:

Around 50% of customers from both deposits and loan schemes believe that bank has a very fast processing rate. Following with the conclusion that Banks customer dealing is quiet effective and efficient. 30% got attracted with the Interest rates offered by bank. It was observed that the interest rate of Personal Loan scheme was comparatively less than some private banks. The bank as such has no Brand image like other public and private banks in the market, but the bank is famous among the rural folks and is rightly called as the SAHKARI BANK. The bank does offer some margin amount in its schemes which again works in favor of the bank and customers.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

COR-RELATION ANALYSIS
Correlation analysis attempts to determine the degree and direction of relationship between the two variables. If two or more variables vary in sympathy so that the movements in one variable tend to be accompanied by corresponding movement in the other, then they are said to be correlated. Framework for the projected study is set as follows:

INDEPENDENT VARIABLE (QUALITY SERVICES) INDEPENDENT VARIABLE (EMPLOYEE BEHAVIOUR) INDEPENDENT VARIABLE (RATE OF INTEREST)

DEPENDENT VARIABLE (CUSTOMER SATISFACTIO N)

INDEPENDENT VARIABLES
EMPLOYEE BEHAVIOR: Employees are key stakeholders in the value delivery and brand/supplier success. It is believed that employee commitment and advocacy behavior have a direct and profound relationship with the customer loyalty and corporate sales and profitability. SERVICE QUALITY: The banks need to understand that the customers will be loyal only if they receive greater value then competitors. This variable is widely used to evaluate the performance of employees. RATE OF INTERESTS: An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

DEPENDENT VARIABLE
CUSTOMER SATISFACTION: Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

RESEARCH QUESTIONS
Q1. Does service quality effect customer satisfaction in the context of PSCB? Q2. Does employee behavior affect the satisfaction level? Q3. Do the interest rates motivate customers to transact with PSCB? In the questionnaire, the respondants were asked to score the variables out of five. These scores were taken to be the quantitative values of variables for the purpose of calculation of correlation coefficient. ANALYSIS AND INTERPRETATION: According to the Spearman correlation coefficient the relation between the customer satisfaction and other three variables is 0.24 which shows moderate degree of positive correlation.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

EXPECTATIONS OF CUSTOMERS

E-BANKING

No Of Customers

YES NO 4 12 CANT SAY

ANALYSIS AND INTERPRETATION: 60% of customers believe that the bank needs now to activate internet banking. 20% say they are comfortable in manual transactions 20% are not aware of the concept. The customers of PSCB are not regular users of e- banking, and it might become difficult for few non users of technology to cope up with the change if it is introduced.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

APPRECIATION FOR BEING A GOOD CUSTOMER

No of Customers

YES NO

ANALYSIS AND INTERPRETATION: The bank does not provide any special facilities to its regular visitors and loyal customers. However, this practice can prove to be fatal in wake of the uprising competition .

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Punjab State Cooperative Bank- Deposit & Credit Schemes

COMPARISON OF PROFITS OF PSCB- MANIMAJRA, HEAD OFFICE AND SUM TOTAL OF ALL BRANCHES (FIGURES IN LAKHS)

800

700

600

500 MM Branch Head Office Pscb total

400

300

200

100

0 2009-10 -100 2010-11 2011-12

ANALYSIS AND INTERPRETATION: The Manimajra branch is suffering losses from past three years. This condition has mainly occurred because of lack of updated products in the branch. The branch has limited schemes. The market in which branch is located, is not that much advanced and established. Therefore, its local customers do not bring huge deposits on daily basis. Being a co-operative bank, it is still not providing farm loans, as most of the part of agricultural farming is delegated to another subsidiary bank of Cooperative Societies.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

LIMITATIONS
The findings of the study are based on the expressed opinion of the respondents. Some respondents were hesitant in providing complete information. Difficulty was faced in getting the responses to various questions because the customers could not devote enough time. There was communication problem also as some of the customers belong to rural class so they could not understand the questionnaire easily. This study only relates to one organization, so conclusions drawn may not be finding its utility in all the other banks. Even the employees of the bank were hesitated to give the complete and accurate data.

CONCLUSION
The project was undertaken to analyze and measure the level of satisfaction prevailing among customers and the expectations in context with Punjab State Co-operative Banks schemes. The study concludes that the dealing of bank with the customers is quite effective and efficient which is the most important element of marketing in todays scenario. As per the study it was observed that the bank has very and efficient processing system in relation to its both loan and deposit schemes. Most of the customers get attracted with the PSCB as the interest rates offered by the bank is comparatively more in relation to other public and private banks. Also the bank offers some margin amount in its schemes which again works in favor of customers as well as the bank. As such the bank has no brand image like other public and private banks in the market, but the PSCB is famous among the rural folks and is rightly called as SAHAKARI BANK.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

RECOMMENDATIONS
In todays world most of the banks provides ATM facility. So to meet the competition in the market Punjab State Co-operative Bank should also provide the ATM facility. Bank should refocus on its interest rate as responded by people. Periodic Review of the interest rate should be done. There should be computerized system in the bank as it will reduce the time wastage of manual work and will lead to the better performance of the bank. Training of the employees should be there to meet the needs of the time. More mass awareness campaigns should be organized in order to enhance market share of bank. So bank should concentrate on its advertisement itself. Rate of interest should be re viewed periodically. If the interest rate has been reduced or has become non- favorable to the customer, the bank should inform him/her. There should be complaint boxes installed in the banks that should be opened weekly and proper redressal of complaints should done. Maximum practical exposure should be provided to the job trainees so that they may handle the various enquiries of customer efficiency. Communication gap within the bank and with the head office should be reduced. Better infrastructure facilities should be provided to the Manimajra branch of PSCB. Banks are advised to have proper internal control measures for monitoring its functions and transactions. PSCB should open new branches in the rural and urban areas to achieve the targets.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

BIBLIOGRAPHY
Banking & Insurance R.K.Sharma & Shashi.K.Gupta Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on 31.03.2010 Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on 31.03.2011 Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on 31.03.2012 PSCB Directory PSCB Loan Schemes

http://www.punjabcooperation.gov.in/html/aboutus.html http://pscb.in/welcome.htm

http://www.sify.com/finance/compare_interest_rates/

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