Professional Documents
Culture Documents
Sushil Kumar
Uni.Roll No:
DECLERATION
Signature
Ms Gazzal
(Project Guide)
ACKNOWLEDGEMENT
Thanks to the almighty for showering his blessing on completion of my project. I want to
thanks all the employees of the Patiala Central Co-operative Bank Ltd. (Patiala) for
their cooperation in successfully completion my project works on P.C.C.B.
I am very thankful to all employees of Gurbax colony Branch for their co-operation. I
am thrilled to find that people here were very co-operative and helped me in all possible
ways
I am especially thankful to Mr. Karam Chand (Assistant Manager) who is one of the
busiest people for giving me actual knowledge about the successful banking, detail
knowledge of Loan Procedure, Loan Schemes and giving me time out of his precious
schedule.
I would also like to thank to MsGazzal who encourage me time to time and guide me for
the completion of my project.
At last but not least, I also thanks to all those persons who gave me every necessary
knowledge and their heartily help in completion of my project work.
Ankush Kumar
INDEX
PARTICULARS
PAGE NO.
CHAPTER I : - INTRODUCTION
2 15
History of Banking
Banking Institutions
Functioning of a Bank
Role of Banking
2 38
16 38
Name of Departments
Various Branches of PCCB
Mission of the Bank:
Objectives of Bank
Technology Used In Bank
Vision
40 56
Definition
58
Research Design
Objective of Study
58
59
58 59
Collection of Data
Limitations of Study
59
59
Definition of Loan
61
Importance of Loans in Today's Life
What is a Procedure?
63
Importance of Procedure Manuals
Loan Procedure
68 73
Loan Schemes
74 - 120
61 62
63 68
128-129
122-123
125-126
CHAPTER - I
INTRODUCTION
Bank, as we know people earn money to meet their day-to-day expenses on food,
clothing, education of children, housing, etc. They also need money to meet future
expenses on marriage, higher education of children, house building and other social
functions. These are heavy expenses, which can be met if some money is saved out of the
present income. Saving of money is also necessary for old age and ill health when it may
not be possible for people to work and earn their living. The necessity of saving money
was felt by people even in olden days. They used to hoard money in their homes. With
this practice, savings were available for use whenever needed, but it also involved the
risk of loss by theft, robbery and other accidents. Thus, people were in need of a place
where money could be saved safely and would be available when required. Banks are
such places where people can deposit their savings with the assurance that they will be
able to withdraw money from the deposits whenever required. People who wish to
borrow money for business and other purposes can also get loans from the banks at
reasonable rate of interest.
Bank is a lawful organization, which accepts deposits that can be withdrawn on
demand. It also lends money to individuals and business houses that need it. Banks also
render many other useful services like collection of bills, payment of foreign bills,
safe-keeping of jewellery and other valuable items, certifying the credit-worthiness of
business, and so on.
Banks accept deposits from the general public as well as from the business community.
Any one who saves money for future can deposit his savings in a bank. Businessmen
have income from sales out of which they have to make payment for expenses. They can
keep their earnings from sales safely deposited in banks to meet their expenses from time
to time. Banks give two assurances to the depositors
a. Safety of deposit, and
b. Withdrawal of deposit, whenever needed
On deposits, banks give interest, which adds to the original amount of deposit. It is a
great incentive to the depositor. It promotes saving habits among the public. On the basis
of deposits banks also grant loans and advances to farmers, traders and businessmen for
productive purposes. Thereby banks contribute to the economic development of the
country and well being of the people in general. Banks also charge interest on loans. The
rate of interest is generally higher than the rate of interest allowed on deposits. Banks also
charge fees for the various other services, which they render to the business community
and public in general. Interest received on loan sand fees charged for services which
exceed the interest allowed on deposits are the main sources of income for banks from
which they meet their administrative expenses. The activities carried on by banks are
called banking activity. Banking as an activity involves acceptance of deposits and
lending or investment of money. It facilitates business activities by providing money and
certain services that help in exchange of goods and services. Therefore, banking is an
important auxiliary to trade. It not only provides money for the production of goods and
services but also facilitates their exchange between the buyer and seller.
As we may be aware that there are laws which regulate the banking activities in our
country. Depositing money in banks and borrowing from banks are legal transactions.
Banks are also under the control of government. Hence they enjoy the trust and
confidence of people. Also banks depend a great deal on public confidence. Without
public confidence banks cannot survive.
History of Banking
Banking industry in India originated in the last decades of the 18th century. The oldest
bank in existence in India is the State Bank of India, a government-owned bank that
traces its origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India, relegating
it to commercial banking functions. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers. In 1969 the government nationalized
the 14 largest commercial banks; the government nationalized the six next largest in
1980.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and III
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence.
In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a
large scale especially in rural and semi-urban areas. It formed State Bank of India to act
as the principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July, 1969, major process of nationalizations was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
was nationalised.
Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
After the nationalisation of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was
set up by his name which worked for the liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net is introduced. The entire
system became more convenient and swift. Time is given more importance than money.
Currently, India has 88 scheduled commercial banks - 27 public sector banks (that is with
the Government of India holding a stake), 31 private banks (these do not have
government stake; they may be publicly listed and traded on stock exchanges) and 38
foreign banks. They have a combined network of over 53,000 branches and 17,000
ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and foreign
banks holding 18.2% and 6.5% respectively.
With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M & As, takeovers, and asset sales.
The growth in the Indian Banking Industry has been more qualitative than quantitative
and it is expected to remain the same in the coming years. Based on the projections made
in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan,
the report forecasts that the pace of expansion in the balance-sheets of banks is likely to
decelerate. The total assets of all scheduled commercial banks by end-March 2010 is
estimated at Rs 40, 90, 000/- crores. That will comprise about 65 per cent of GDP at
current market prices as compared to 67 per cent in 2002-03.
Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the
rest of the decade as against the growth rate of 16.7 per cent that existed between 199495 and 2002-03. It is expected that there will be large additions to the capital base and
reserves on the liability side.
Banking Institution
Functioning of a Bank
Functioning of a Bank is among the more complicated of corporate operations. Since
Banking involves dealing directly with money, governments in most countries regulate
this sector rather stringently. In India, the regulation traditionally has been very strict and
in the opinion of certain quarters, responsible for the present condition of banks, where
NPAs are of a very high order. The process of financial reforms, which started in 1991
has cleared the cobwebs somewhat but a lot remains to be done. The multiplicity of
policy and regulations that a Bank has to work with, makes its operations even more
complicated, sometimes bordering on illogical. This section, which is also intended for
banking professional, attempts to give an overview of the functions in as simple manner
as possible.
Banking Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of
lending or investment of deposits of money from the public, repayable on demand or
otherwise and withdrawal by cheques, draft, order or otherwise."
Deriving from this definition and viewed solely from the point of view of the customers,
Banks essentially perform the following functions:
1.
2.
3.
4.
5.
6.
Sufficient deposits.
Skills to appraise the potential borrowers and the activity.
Legal skills for documentation.
Legal skills for recovery of its dues through the courts.
Skills to follow up and monitor the end-use of money lent by it.
An effective credit delivery system.
Review of credit portfolio.
Remittance
Apart from accepting deposits and lending money, Banks also carry out, on behalf of
their customers the act of transfer of money - both domestic and foreign.- from one place
to another. This activity is known as "remittance business" . Banks issue Demand Drafts,
Banker's Cheques, Money Orders etc. for transferring the money. Banks also have the
facility of quick transfer of money also know as Telegraphic Transfer or Tele Cash
Orders.
To deliver this service, a Bank must have:
Trustee Business
Banks also act as trustees for various purposes. For example, whenever a company
wishes to issue secured debentures, it has to appoint a financial intermediary as trustee
who takes charge of the security for the debenture and looks after the interests of the
debenture holders. Such entity necessarily have to have expertise in financial matters and
also be of sufficient standing in the market/society to generate confidence in the minds of
potential subscribers to the debenture. While Banks are the natural choice for the
customers, Banks must possess the following to be effective and retain that:
Safe Keeping
Bankers are in the business of providing security to the money and valuables of the
general public. While security of money is taken care of through offering various type of
deposit schemes, security of valuables is provided through making secured space
available to general public for keeping these valuables. These spaces are available in the
shape of LOCKERS. The latter are small compartments with dual locking facility built
into strong cupboards. These are stored in the Bank's Strong Room and are fully secure.
Lockers can neither be opened by the hirer or the Bank individually. Both must come
together and use their respective keys to open the locker. To make this facility available
to its customers, the Bank must provide:
Government Business
Earlier Government business used to be exclusively carried out by Government
Treasuries where all type of transactions took place. However, now Banks act on behalf
of the Government to accept its tax and non tax receipts. Most of the Government
disbursements like pension payments and tax refunds also take place through banks.
While the Banks carry out this business for a fee to be paid by the Government, providing
this service requires a lot of effort and organisation. The Banks must provide:
Role of Banking
Banks provide funds for business as well as personal needs of individuals. They play a
significant role in the economy of a nation. Let us know about the role of banking.
It encourages savings habit amongst people and thereby makes funds available for
productive use.
It acts as an intermediary between people having surplus money and those
requiring money for various business activities.
It facilitates business transactions through receipts and payments by cheques
instead of currency.
It provides loans and advances to businessmen for short term and long-term
purposes.
It also facilitates import export transactions.
It helps in national development by providing credit to farmers, small-scale
industries and self-employed people as well as to large business houses which
lead to balanced economic development in the country.
It helps in raising the standard of living of people in general by providing loans
for purchase of consumer durable goods, houses, automobiles, etc.
Urban Co-operative Banks (UCBs) can normally extend housing loans upto Rs 1
lakh to an individual. The scheduled UCBs, however, can lend upto Rs 3 lakh for
housing purposes. The UCBs can provide advances against shares and debentures
also.
Co-operative bank do banking business mainly in the agriculture and rural sector.
However, UCBs, SCBs, and CCBs operate in semi urban, urban, and metropolitan
areas also. The urban and non-agricultural business of these banks has grown over
the years. The co-operative banks demonstrate a shift from rural to urban, while
the commercial banks, from urban to rural.
Co-operative banks are perhaps the first government sponsored, governmentsupported, and government-subsidized financial agency in India. They get
financial and other help from the Reserve Bank of India NABARD, central
government and state governments. They constitute the "most favored" banking
sector with risk of nationalization. For commercial banks, the Reserve Bank of
India is lender of last
The Indian cooperative movement, like its counterparts in other countries of the
world has been essentially a child of distress. Based on the recommendations of Sir
Frederick Nicholson (1899) and Sir Edward Law (1901), the Cooperative Credit Societies
Act was passed in 1904, paving the way for the establishment of cooperative credit
societies in rural and urban areas on the patterns of .Raiffeisen. and Schulze Delitzch.
respectively.
The Cooperative Societies Act of 1912 recognized the formation of non-credit societies
and the central cooperative organizations/federations. The state
patronage to the
cooperative movement continued even after 1947, the year in which India attained
freedom.
Committee (1954), the first comprehensive enquiry into problems of rural credit, after
a detailed examination of the entire gamut of issues including the social ethos of
rural society, summed up its findings in the celebrated dictum that .cooperation has
failed, but cooperation must succeed..
Since 1950s, the cooperatives in India have made remarkable progress in the various
segments of Indian economy. During the last century, the cooperative movement has
entered several sectors like credit, banking, production, processing,
distribution/marketing, housing, warehousing, irrigation, transport, textiles and even
industries. In fact, dairy and sugar cooperatives have made India a major nation in the
world with regard to milk and sugar production. Today, India can claim to have the
largest network of cooperatives in the world numbering more than half a million, with a
membership of more than 200 million. Of the primary (village) level cooperatives,
around 28 percent with 137 million memberships are agricultural cooperatives, dealing
directly or indirectly with agricultural sector.
The cooperative network in the country is rather strong covering all the villages in
the country and more than 67 percent of the households have been brought under the
cooperative hold. Cooperatives supply about 46 percent of the total rural credit
(including agricultural credit), account for 36 percent of the total distribution of
fertilizers, produce about 55 percent of the total sugar and constitute for 28 percent of
the rural fair shops (distributing consumer articles). Though cooperative movement has
made remarkable progress in several areas, certain glaring defects have also developed in
the movement, which have been, in a way, defeating the very objectives of these
institutions. The following are the unique features of Indian cooperative movement:1. Historically, Governments and policy makers have paid more attention to
agricultural cooperatives and thus, the growth and development of the Indian
cooperative movement is heavily tilted in favour agricultural cooperatives in
general and in particular, credit cooperatives. In some areas like dairy, urban
banking and sugar, the cooperatives have achieved success to an extent but there
are larger areas where they have not been so successful.
2. The cooperative credit movement in modern India, curiously, is a state initiated
movement. The state partnership is, perhaps, the unique feature of the Indian
cooperative movement. As of today, Government contribution to the share capital
of primary agricultural cooperatives accounts for about 7.5 percent of the total .
3. Paradoxically, the state partnership which was conceived as a measure for
strengthening the cooperative institutions had paved the way for ever-increasing state
control over cooperatives, their increasing officialization and politicization
culminating in virtually depriving the cooperatives of their vitality as well as their
democratic and autonomous character.
Credit cooperatives are the oldest and most numerous of all the types of cooperatives in
India. The cooperative credit institutions in the country may be broadly classified into
urban credit cooperatives and rural credit cooperatives. There are about 2090 urban
credit cooperatives and these societies together constitute for about 10 percent of the
aggregate banking business and therefore regarded as an important segment of the
banking system. The urban credit cooperatives are also popularly known as Urban
Cooperative Banks.
The rural credit cooperatives may be further divided into short-term credit cooperatives
and long-term credit cooperatives. With regard to short-term credit cooperatives, at the
grass-root level there are around 92,000 Primary Agricultural Credit Societies
(PACS) dealing directly with the individual borrowers. At the central level (district level)
District Central Cooperative Banks (DCCB) function as a link between primary societies
and State Cooperative Apex Banks (SCB). It may be mentioned that DCCB and SCB are
the federal cooperatives and thus the objective is to serve the member cooperatives.
As against three-tier structure of short-term credit cooperatives, the long-term
cooperative credit structure has two tiers in many states with Primary Cooperative
Agriculture and Rural Development Banks (PCARDB) at the primary level and
State Cooperative Agriculture and Rural Development Bank at the state level.
However, some states in the country have unitary structure with state level cooperative
operating with through their own branches and in one state an integrated structure
prevails. The organizational structure of the credit cooperatives in India is illustrated in
chart I. Interestingly, under the Banking Regulation Act 1949, only State Cooperative
Apex Banks, District Central Cooperative Banks and select Urban Credit Cooperatives
are qualified to be called as banks in the cooperative sector. In other words, only
these banks are licensed to conduct full-fledged banking business.
The process of economic and financial sector reforms were initiated in 1991, as a step
towards a broader process of international economic integration and globalization
of financial markets. The objectives of the reform program have been to remove
the structural constraints in the factor and product markets, allowing market forces
to improve efficiency and ensuring outward orientation to the economy for bringing
about a higher degree of integration of the Indian economy with the rest of the world. It
may be mentioned that the structural reforms in the trade regime and industrial
and financial policies have been given utmost priority in order to ensure macroeconomic stability. A healthy financial system being the principal pre-requisite for the
globalization process, the banking sector being an important component thereof came
into sharper focus.
The financial system in India has built up a vast network of financial institutions and
markets over time, and the sector is dominated by the banking sector which accounts for
about two-thirds of the assets of the organized financial sector. The first phase of the
current reform of the financial sector was initiated in 1992 based on the
recommendations of the Committee on Financial System (CFS, 1992). The progress
that has been made in a substantial, yet non-disruptive manner has given the confidence
to launch what has been described as the second generation or second phase of
reforms especially for the banking sector.
The report of the Committee on Banking Sector Reforms (CBSR, 1998) provides a
framework for the second phase of reforms in the banking system. The broad features
of the on going banking reforms have been; gradual removal of pre-emptions
(reduction in CRR and SLR), deregulation of interest rates, tightening of prudential
standards, competition and transparency, improving the quality of supervision, partial
removal of selective credit controls, assistance to banks in debt recovery and reforms
in money and forex markets. This apart, needless to mention, the succinct objective
of the banking sector reforms has been to improve the efficiency in the system by
introducing an element of competition.
The literature relating to the economic reforms, impact of reforms on cooperative sector,
banking reforms and its impact on credit cooperatives and so on are rather opulent. In
so far as the impact of reforms on the cooperative character of the cooperatives
is concerned, be it in credit or non-credit segment, one may safely say that
neither the policy makers nor the researchers have shown any serious interest. And this
is particularly true in India. It seems the cooperative researchers, particularly
doctoral students are more concerned with the assessment and measurement of the impact
of reforms on the performance of cooperatives using a definite and quantifiable
parameters. While the difficulties in examining the impact of reforms on the cooperative
character of cooperatives are quite understandable, it does not mean the same can not be
attempted meaningfully. What is required perhaps is a normative analytical
framework, which is different from the one usually used for capturing the impact
of reforms on cooperatives. Using this normative analytical framework, Ramesha (1996)
in his empirical study points out that Self Help Groups (SHGs) which are not registered
as cooperatives are, in practice, much more closer to cooperative principles than
cooperatives themselves.
Given the diversity that prevails today in the cooperative sector and the levels of reforms
thereof, a general discussion on the impact of reforms (economic or banking sector) on
cooperative character would be almost impossible. For the sake of research, even if one
attempts, the conclusions could be abstruse. Thus, in the present paper an attempt is
made to evolve a conceptual framework for further research concerning Urban
Cooperative Banks (UCBs) in India against the backdrop of banking sector
reforms.
However, all through the discussion, it is attempted to maintain a special thrust on the
cooperative character of UCBs. The analytical framework for the aforesaid
purpose rests on three basic assumptions;
a) Banking sector reforms essentially refers to the guidelines/directions from
the regulator (central bank of the country) and the Government during the
last ten years.
b) Urban Cooperative Banks (falling under Banking Regulation Act of 1949)
are more influenced by banking sector reforms in the short-run than other
credit cooperatives.
c) Cooperative character of urban cooperative banks can be captured in terms
of
the adherence to cooperative principles.
The deposits and advances of urban cooperative banks constitute for about 9 and 8
percents of the aggregate deposits and advances of the banking system respectively. In so
far as the growth and performance are concerned, it may be mentioned that the
urban cooperative banks were a shade better than the scheduled commercial banks and
public sector banks till 1999 (Ramesha K, 2001). However, it has to be recognized that
the prudential standards and regulatory system prescribed for urban cooperative banks
were relatively soft in comparison with those of commercial banks. This is partly on
account of historical reasons and partly due to the preferential treatment of cooperative
structure in general. If one benchmarks the growth and performance of urban cooperative
banks with that of the banking industry (which is dominated by public sector banks) after
2000 and onwards, then the scenario undergoes a complete change. For instance, between
2001 and 2002, although owned fund, deposits and advances of urban cooperative
banks increased somewhat impressively, i.e., by 27, 15 and 14 percents respectively,
the gross Non Performing Assets (NPAs % to total advances) during the same period
went up from 16 to 22 percent (3). The percentage of the profit making urban
cooperative banks to the total stood at 87 percent as at the end of March 31, 2002. On
the whole, the performance of the urban cooperative banks particularly after 2000 has
been on the decline, and a host of factors may be responsible for this which may include
increasing competition, tightening prudential standards and supervision and
regulatory standards, multiple control, etc. Following are the features of urban
cooperative credit banks in India.
1) Urban cooperative banks are registered under Cooperative Societies Act of the
respective state Governments. The Reserve Bank of India (Central Bank of the country)
is the regulatory and supervisory authority for UCBs for their banking related
operations. Managerial/Administrative aspects of UCBs continue to remain with the
state Governments. The Union Government regulates the UCBs having multi-state
presence and such banks are registered under Multi-state Cooperative Societies Act.
Controlling of UCBs by state Government and the Central Bank of the country is
generally known as .duality of control..
2) The discernible characteristic feature of UCB structure is its heterogeneity.
Nearly 50 percent of the banks are unitary in nature (with single branch banking).
Heterogeneity in their size is another facet of the UCB structure. The larger UCBs
(scheduled UCBs) numbering just 51 accounts for more than 40 percent of the business
from UCB sector as against 800 UCBs accounting for just 6 percent.
3) UCB structure is exemplified by its pronounced focus on the needs of small men and
micro credit sector. The average size of the loan also works out to be relatively
low and an overwhelming segment of UCBs have been able to comply with the priority
sector lending targets (directive from central bank to lend to certain sectors like
small enterprises, trade & business, housing etc) set by the central bank of the country.
The reform measures as applicable to UCB sector may be classified into three broad
categories. First, while recognizing the differences between commercial and urban
cooperative banks, a majority of the prudential norms introduced for commercial banks
are being extended to UCBs, albeit in a phased manner. Second, policy initiatives have
been introduced (through Monetary & Credit Policies) to contain the systemic risk
emanating from cooperative sector, in particular from UCB sector. Lastly,
duality/multiplicity of control has been recognized as an irritant to their effective
regulation and supervision. Although, the focal point of the reforms has been prudential
norms, steps are also being initiated to professionalize the management and manpower of
UCBs. The influence of the reforms on the functioning as well as the cooperative
character of UCBs is discussed below.
Prudential Standards:
To begin with, in 1993, RBI introduced Income Recognition and Asset
Classification Norms to UCBs.
In 1995, the prudential exposure norms to
single/group borrowers were also made applicable to them. Subsequently, in a phased
time frame, the capital adequacy norms (capital to risk weighted asset ratio) were
also made applicable to UCBs. While the promotion of prudent financial practices has
become a sine quo non in the highly competitive globalize environment (for
safeguarding the financial health of the system, in particular of the UCB sector),
it should not be forgotten that such standards were contrived essentially for
commercial banks. Although, the notion of a code of good practices is intuitively
appealing, the temptation to prescribe universally valid model codes which do not
allow for differences in institutional development, legislative frame work and more
broadly, different stages of development must be avoided. To put it differently, while
For instance, capital is widely regarded as a measure of the risk taking ability of a
financial intermediary and therefore, prescription of a minimum capital the urban
cooperative bank (to conduct banking business) may seem to be justified from the
viewpoint of ensuring stability in the financial system. If one looks at a cooperative
credit society/bank, as a typical cooperative created on the basis self help and
mutual help, then possibly the members (generally with limited means) may not be able
to raise the required capital. If capital base is to be strengthened, as it is happening in
India, these banks will have to start dealing with non-members (or nominal members) on
a large scale and perhaps may have to shift from .surplus. to .profit..
The need to increase the deposit base as also to gainfully employ the funds generated
have made it necessary to have a large number of customers who are not the members. It
is worth mentioning that in India, urban cooperative banks though on par with
commercial banks with regard to prudential standards, like the latter, are not permitted to
boost their capital base through sub-ordinate debts. Further, there are ceilings on the
value individual share holdings have not been revised since long.
Secondly, in order to ensure the adherence to the prudential standards by cooperative
credit societies/banks, the regulators frequency (as also scope) of intervention
increases thereby affecting the cooperative character. In this regard, in India regulators
intervention has indirectly infringed upon the functional autonomy covering areas
like share-linkage, credit, investment, deposit and so on. Thirdly, in the name of
protecting the interests of the depositors (majority of whom are not the members of
cooperative banks), not only prudential standards are extended but even the professional
content in the management committee of the urban cooperative credit
societies/banks is also stipulated in India by the regulator/Government. While one can
not remain ignorant of the role of the Government in the promotion of and development
of cooperation in India, prescribing the number and qualification of the nominee directors
would no doubt impair the cooperative character. Fourthly, the strict entry norms in
terms of minimum capital, membership prescription as it prevails in India, prevents
the birth of new credit cooperatives and constrain the existing societies in so far
as the expansion is concerned.
Fifthly, with the introduction of same prudential standards the difference between
urban credit cooperatives/banks and commercial banks get blurred and possibly, the
former may have to progressively imbibe the character of the latter (identity crisis?).
There could be several such dimensions as discussed above. Nonetheless, it appears that
the benefits of the prudential standards to urban credit cooperatives/banks come at a
cost. The cost, needless to mention, is the dilution in the cooperative character (in
terms of adherence to the principles).
Professional Management and Governance:
Good corporate governance is critical to efficient functioning of an entity and more so for
a banking entity. Thus the need for professional management and healthy governance
practices in urban credit cooperative societies/banks in the present competitive
environment needs no emphasis. Thus, for managing a financial intermediary, whether a
cooperative or a commercial bank (irrespective of its size), the human resource
comprising of paid staff and elected management has to be highly competent.
The framework for good governance and professional management in cooperative
sector should essentially emanate from the guiding principles and the given legal
framework in different countries/states. However, in India it is not uncommon that
the cooperative banks are superseded and Government officials are posted to head or
nominated on the board and unfortunately this trend is increasing in the post reform
period. Quite often the reason quoted is that there is lack of qualified and
competent directors and the protection of depositors. interests (majority of them are not
the members) in the case of urban cooperative banks. While this is to some extent true,
the solution to this problem certainly is not Government intervention as it would
seriously impair the cooperative character. It is disheartening to note that the
elected management of 41 % of State Cooperative Banks, 37 % of State
Cooperative Agricultural and Rural Development Banks, 21 % of the District Central
Cooperative Banks and 8% of Primary Cooperative Agricultural and Rural Development
Banks stood superseded as on March 2000. More than 200 urban cooperative banks are
identified as weak/sick banks by the regulator as at the end of March 2002.
As per the prevailing act (and according to the cooperative philosophy/principles) any
individual member can get himself/herself elected to the management committee of a
cooperative bank. It is this management committee which is entrusted with the
responsibilities like risk management - policy/strategy, credit and NPA management,
investment management, marketing plan/strategy, Asset-Liability Management and so
on. It should also be noted that the very concept of banking (financial inter-mediation) is
undergoing change in the present competitive environment and the conventional
framework for management with which cooperative banks are comfortable may not be
sufficient. Given this, it is doubtful whether the elected management (as per the existing
provisions of cooperative act and principles the individuals without sufficient
knowledge/experience in financial markets or management can be at the helm of affairs
of a cooperative bank) would be able to take on the emerging challenges. Perhaps, the
need of the hour is to ensure that in cooperative organizations, the system of
governance including the size and composition of the board of directors (or elected
management) is driven by the purpose and objectives of the business. In this regard, the
following issues/areas may be of some interest to the cooperative researchers.
Supervision and Regulation:
At present in India, urban credit cooperatives/banks are subjected to duality of control,
meaning that the administration related aspects are being supervised and regulated by
State Government and the banking operations are supervised and regulated by the
central bank of the country. This has, understandably resulted in overlapping jurisdiction
of the state Government and the central bank of the country. Moreover, a clearcut demarcation of the financial and administrative areas for regulation is almost
impossible and even if it is possible it surely acts as an impediment in effective
supervision. While the central bank of the country has the wherewithal under the
Banking Regulation Act for dealing with crucial aspects of functioning of
commercial banks, in the case of co-operative banks it requires the intervention
of the Registrar of Cooperative Societies (state Government). Given the number of
urban credit cooperatives/banks, the central bank of the country is not in a position to
effectively supervising them. Thus, the duality of control not only affects the quality
of supervision and regulations, but also the functioning of the urban cooperative
banking sector. Needless to mention, under this regime of duality of control the
urban cooperative banks may turn out to be neither cooperative nor commercial
banks. There are some areas of concern, some of them may be good for research as
well.
While the progress of the cooperative movement in India in general, and the cooperative
banking in particular has been rather appreciable, the movement can not be termed as a
vibrant one in regard to cooperative values and philosophy as enunciated in cooperative
principles. With regard to the extension of reforms to cooperative banking segment, it is
yet not clear as to whether the same would ensure soundness and stability in the
cooperative banking segment. Although the promotion of prudent financial practices in
urban cooperative banks has become a sine quo non in the present competitive
environment, one can not afford to ignore that such practices were contrived essentially
for commercial banks.
It must not be forgotten that the notion of a code of
good practices though intuitively appealing, the temptation to prescribe universally valid
model codes which do not allow for differences in institutional development,
legislative framework and more broadly, different stages of development must be
avoided. It seems the extension of reforms/prudential standards to urban cooperative
banking has provided substantial scope for the external intervention and in the process,
affecting the cooperative character in terms of adherence to the cooperative principles.
Logically, if the prudential standards, and supervision and regulation for
cooperative banks were same as that of commercial banks, then there would not
be any difference worth mentioning between these entities. There are several areas that
need the intervention of researchers and perhaps, more important amongst them are
prudential standards, professional management & governance and supervision &
regulation. The framework for such research should essentially be within the
guiding principles of cooperation.
However, in the long run, if cooperative character of credit cooperatives is to be
preserved, the prudent practices, system of governance and supervision & regulation all
should emanate from the guiding principles of cooperation.
CHAPTER II
INTRODUCTION TO
THE PATIALA CENTRAL
COOPERATIVE BANK LIMITED
Introduction to State Level organization
The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla vide
registration No. 720 has a 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 3 Divisional Offices at Amritsar, Bhatinda and Jalandhar. It has
19 branches and 3 extensions counters operating in the city of Chandigarh. Besides this,
there are 19 District Central Cooperative Banks having 783 branches and 16 extension
counters in the State of Punjab affiliated with it. The bank was established to help to
provide timely and adequate flow of credit to the farmers for agriculture and allied
activities through PACS.
Organizational Structure
The bank operates in the city of Chandigarh having 19 branches and 3 extensions
Counters. It has 3 Divisional Offices in Punjab at Amritsar, Jalandhar & Bathinda. The
organizational structure is as under:-
Organizational Structure
So State co-operative banks are a federation of central co-operative banks and act as a
watchdog of the co-operative banking structure in the state. Its funds are obtained from
share capital, deposits, loans and overdrafts from the Reserve Bank of India. State cooperative banks lend money to central co-operative banks and primary societies and not
directly to farmers.
Expectation of the bank from the public for enhancing its effectiveness and
Efficiency:The Bank expects that the general public should take maximum benefits of the services
offered by it. The bank expects from the public that they should keep their surplus money
in the shape of deposits with the Bank and take maximum benefits of various loan
schemes of the Bank. The bank also expects that public should repay the loans taken by it
timely so that the bank may be able to channelize the same. It will be in the interest of the
public also.
Arrangements and methods made for seeking public participation/contribution:The Bank has an elected Board of Directors which is the main governing body of the
bank. District and State level Technical Committees are established to fix the scales of
finance of various crops. Customer meets Annual General Body meeting, Annual
Cooperative Week celebrations during the month of November every year.
Mechanism available for monitoring the services delivery and public grievances
resolution:The Bank is governed by an elected Board of Directors which regularly monitors the
services delivery system. The Bank is regulated and inspected by Reserve Bank of India,
NABARD and State Govt. There is a statutory audit system in the Bank by the Auditors,
under the control of Chief Auditor, Cooperative Societies, Punjab. To properly handle the
public grievances/complaints, a separate Vigilance Cell has been created at the Head
Office of the Bank.
Central co-operative 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 co-operative banks and joint stocks.
These banks finance member societies within the limits of the borrowing capacity of
societies. The profile of Patiala Central Cooperative bank is as under:
Under the Indian Co-operative Societies Act-ii of 1912 the P.C.C.B with registration no.
776 on 28-09-1949 by the registrar co-operative. Co-operative Societies PEPSU although
the old
bylaws do not mention that area of operation of the Bank. The copy of the application
submitted for its registration shows Patiala and Sangrur district as area of operation of the
Bank. With the creation of new district of Mohali , Dera Bassi block transferred to that
district. There are 8 Blocks Patiala, Bhunerheri, Samana, Patran, Nabha, Rajpura,
Ghanour and Sanour. There are 4 Sub-divisions namely Patiala, Samana, Nabha and
Rajpura.
Management and Organizational Structure
As per bylaws No. 28 the Board of Directors shall be constituted as under
Sr.
Name of Directors
Designation
Chairman
Bikramjit singh
Vice Chairman
Harkishan singh
Director
Director
Bharpur Singh
Director
Director
Joginder Singh
Director
Jaspal Singh
Director
Name of Departments
There are various sections / departments which are working in the Bank. Here we tell us
about those departments / sections which play important role in Banking. We tell about
his Head of Department, its functions & number of members working in the
departments.
Planning
Renewing
Compiling
Achievements (for net result of the bank)
Next year forecasting
1 Senior Manager
1 Manager
2 Assistant Manager
1 Accountant
1 Clerk
1 Typist
Miscellaneous Activities
Office Time: - The P.C.C.B. has fixed the timing for all the employees the timing
of this company is 10a.m. To 5p.m. The recorded of the arrival & departure was
recorded through Attendance register company maintenance the attendance
registers. All the employees come at 10a.m. Entered the time in the Attendance
register in the first column and at time of lunch. The entire employee entered. The
departure time for lunch at 2p.m. When they come after lunch they will entered
the arrival time 2.30p.m. Than duty was complete they will entered the departure
time 5.00p.m. And also entered the total working hours in the full day. There is no
extra system for recording the time.
Log Book : -All the vehicles of the company having logbook. Each vehicle has own
separate logbook. All the records of this vehicle were kept in this logbook. The perform
shows that, how much kilometer are to be used by this log book the person who used the
vehicle fill this log book and signed on also fill that for what purpose. The vehicle was
used.
FACILITIES FOR STAFF
The following facility is available to staff members.
Sr.
Name of Branches
Agoul
Arya Samaj
Bhupinder Nagar
Babbarpur
Bhadson
Banur
Basantpura
Balbera
Bhunerheri
10
B.N.Khalsa
11
Daun Kalan
12
Dandrala Dhindsa
13
Dakala
14
Devigarh
15
Ghanour
16
Ghagga
17
Gulzarpura
18
Galwatti
19
Gajju Majra
20
Gurbax Colony
21
Gajewas
22
Jand Mangouli
23
Khera Gajju
24
Kamalpur
25
Lang
26
Massingan
27
28
Mandouli
29
Nabha (M)
30
Nabha (E)
31
32
Patran
33
Sirhind Road
34
Pabri
35
Rakhra
36
Rajpura
37
Sanour
38
Samana
39
Shatrana
40
Sultanpura
41
Shambhu Kalan
42
Tohra
43
Vision Statements
1931-1980 To concentrate on providing funds at low rate of
interest to farmers to protect them from the fund provided by
GREEDY SAHUKARS at high rate of interests
1980-2009 To concentrate on all the sectors of the society for
providing and acquiring funds. This can be done by developing
CHAPTER III
RESEARCH METHODOLOGY
Research methodology
Research is composed of two syllables, a prefix re and a verb search.
Re means again, anew, over again. Search means to examine closely
and carefully, to test and try, to probe. The two words form a noun to
describe a careful and systematic study in some field of knowledge,
undertaken to establish facts or principles. Research is an organized
and systematic way of finding answers to questions.
Redman and Mory defines research as a Systematized effort to gain new knowledge. It
may be noted, in the planning and development, that the significance of research lies in
its quality and not in quantity. Research methodology is the specification of method of
accruing the information needed to structure or solve at hand. It is not concerned to
decision of the fact, but also building up to data knowledge and to discover the new facts
involved through the process of dynamic change in the society.
Research Design
Research design is a pattern or an outline of research project working. It is a statement of
essentials elements of a study, those that provide the basic guidelines for the details of the
project. Further a research design is an arrangement of condition for collection and
analysis of data in manner that aims to combine relevance to the research purpose with
economy in procedure. Research design stands for advance planning of the methods to be
adopted for collecting the relevant data and the techniques to be used in their analysis,
keeping in view of the objectives of the research.
Under this project, Research design carried out was exploratory in nature
Objective of Study
To know the purpose of granting various types of loans by the bank according to
Collection of Data
Collection of data is most significant stage of every research. There are two types sources
from where data is collected . These are : I) Primary Sources II) Secondary sources
Data has been collected both primary as well as secondary sources as described below:
Primary Sources
The primary sources of data were circulars relating to the bank and personal observation.
Secondary Sources
The secondary sources of the data were the information about the PATIALA CENTRAL
CO-OPERATIVE BANK LTD. and the banks profile which includes functions of bank
and various schemes of granting loans etc. These helped in gaining knowledge about the
Bank.
Limitations of Study
CHAPTER IV
ANALYSIS OF LOAN PROCEDURE
AND
LOAN SCHEMES
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 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 capital markets have developed many ways of managing this risk).
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 can not 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, that when undertaken in
the sequence laid down produces the described result, product or outcome. A procedure
usually induces a change.
One of the worst case scenarios of office problems involves a very important job that
cannot be completed by the support 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. The outline should cover:
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.
Important details
One of the most important aspects of a procedures manual is that it is detailed and
gives all the necessary information to get the job done in the quickest way
possible. If persons, agencies or companies outside your company have to be
contacted to complete a job, the procedures manual should give specific names,
departments, addresses and phone numbers as well as a brief description of what
each does, how long it will take, what you need from them and what they need
from you.
Another important part of the manual is making sure that it is up to date. Outdated
information will only confuse someone and will not get the job done. All
employees should be instructed to check the procedures manual they have
prepared at least once a month to see if phone numbers, names or directions need
updating. Both the employee and manager should have copies that are accessible
to others.
One of the problems in every office involves employees who are reluctant to, or
refuse to, share information because they feel it will diminish their importance.
Keeping the job "complicated" and being the only one able to do it gives this type
of person a sense of job security and self-esteem. They do not want someone else
to do their job at all, no less do it well. Unfortunately, this type of thinking does
much more harm than good. A good manager must be able to communicate to
these employees that a procedures manual is vital and must closely monitor the
employee to see that a manual is prepared and is viable. Employee resistance to
the idea of doing a procedures manual is to be expected. Some people will be
afraid that their writing skills are inadequate and they will be unable to do their
part properly. These employees should be helped as much as possible and
encouraged to do the best they can. Their contributions can be polished later on.
Usually, resistance is greatest among those who know they have more time on
their hands than the job entails. These people will usually denigrate the whole
idea of writing down what they do in detail, knowing that keeping the details
vague makes the job sound a lot busier than it really is. Some tasks can take 10 to
15 minutes if you know exactly what to do and might take most of the day for the
uninitiated to muddle through and try to get it right when the usual person in
charge is out. People do get sick, quit or leave for a variety of reasons - often quite
suddenly. A procedures manual is not a panacea for all office management
problems, but it certainly helps.
A procedures manual also allows a manager to see what people are doing and
estimate how long certain duties take. What is vaguely written in a job description
as "handle board room reservations" could take from five minutes to hours
depending on what is involved. A procedures manual would indicate whether the
person in charge simply keeps a reservation book noting the names, dates and
times or arranges for audio/video equipment, extra seating, coffee or other
beverages and refreshments, provides writing tablets and pens or takes minutes as
part of the job, including contacting maintenance people to see that the room is
cleaned before and after and arranging with the receptionist to make sure the
names of all outsiders are given to her and guests are properly directed to the
location of the meeting. Obviously, there is a big difference in the amount of time
expended, depending on what steps are involved. Detailing the steps involved
would enable anyone to take care of the job without confusion and problems.
Hiring decisions
Managers can, therefore, make decisions about consolidating certain jobs when
there is an obvious lack of work in some jobs and too much in others, can make
hiring decisions as to whether or not extra staffing is required or whether people
can be let go. If you ask an employee what a job entails and she or he says, "I do
this, this and this," you have very little idea of what time and effort is involved
unless you have done the job yourself (probably unlikely), or have it written down
in a procedures manual.
Another advantage of the procedures manual is that a manager can see whether or
not an employee is suited to a certain position. If the employee seems to go about
tasks in the most complicated, difficult manner, obviously retraining is necessary
or the employee should not be in the job. A manager should be able to see, by the
step outlined in the manual, whether the job is being done as efficiently as
possible.
A procedures manual can help avoid confusion when someone has to step in and
do a task that is not normally part of his or her job. This enables the office to run
much more smoothly and gives managers a "feel" for what is going on in their
departments. It also enables the manager to feel more confident about being in
charge because he or she knows precisely what is going on in the department.
Most employees will welcome the manual when they are called upon to fill in or
help out because they will at least have some idea of what is to be done and how
to do it. A procedures manual is a simple office tool that can save a lot of time and
avoid a lot of problems.
Loan Procedure
The loan to get passed, it has passed through many hands as shown in the following
figure.
Inquires
Information
I.
Customer
Under the above procedure customer means the per who wants to take a loan.
Custer may be a farmer , student, employee of govt. or semi govt. or any
institution approved by the board of directors of the bank, individuals ,
companies, trust, firm, cooperative Societies etc.
II.
Reception
Here a person (customer) inquires about the loan rates and other prerequisites that
are to be submitted. He is provided this information by the clerk at the reception.
For example a person want to take a vehicle loan . At this step he is get the
information about the amount sanction criteria, interest rate, period of time, mode
of loan disbursement, mode of repayment, perquisite documents etc.
III.
Submission of documents:
After getting the information customer submit the required document to bank
facility. For example: to take a House Loan he submitted various types of
documents like:
1.
2.
3.
4.
5.
Inspection:
After having calculated the credit and the amount that can be sanctioned for loan,
the file is forwarded for inspection. Here, the officer verifies the work done by the
clerk at the credit rating desk. Moreover, he checks the banks database to see if
the loan taker has any previous obligations which are remaining to be met (if he is
an old customer). After the satisfaction with all the parameters, he hands over the
file to the loan manager.
VI. Loan Manager:
At this step , the file of customer reexamined by the loan manager. If the loan is
consumer loan then it is directly granted by branch manager . But if the loan is
personal loan or vehicle loan or any other type of loan then it is granted by senior
manager or district manager. The powers of granting different types loans of
different mangers are as under:
Branch Manager: Branch Manager has power only to grant the consumer loan.
The maximum amount is granted up to 100000 Rs./-.
Senior Manager: Senior Manger has power to grant a loan up to amount 200000
Rs./- only.
District Manager : District Manager can grant a loan from 200000 Rs./- to
500000 Rs./- only
Board of Directors: If the loan amount is greater than 500000 Rs./- then it is
granted by the board of directors of the Patiala Central Cooperative Bank.
So according to different types and different amounts of loans, these are granted
by above parties. At this stage loan granting manager recheck all the documents.
Loan manager pass the loan if customer fulfill all requirements. But if there is any
thing which is unclear or insufficiency in the documents, he has power to reject
the loan application. But he is also liable to give specific reason to the customer
about the rejection of loan.
VII. Meeting:
If the amount of loan is grater than 5 laces then a meeting is conducted between
board of Directors of the bank After having examined the file, the file is then put
forward before the Chairman and Managing Director (MD) in a meeting. This file
is then cross examined. If all the members of top management are mutually
consent then the application of loan is ready for disbursement of loan amount.
VIII. Insurance:
Before issuing the loan amount or opening of a/c for loan, the customer is
required to get insurance on the thing on which he wishes to take loan. This is
done by bank with the help of United India (UI) Insurance Company. Moreover, if
any other thing is mortgage for taking loan, then the insurance is taken on that
particular thing also. This is explained in detail in the coming sections.
IX. Giving away of Loan:
After paying the insurance amount, the loan amount or account is handed over to
the customer. Before the disbursement of loan amount to customer firstly bank
require becoming a nominal member of bank, then loan amount is paid to the
customer.
In some type of loan schemes the amount of loan is paid into installments. Like in
case of Rural Housing Loan amount is paid into two installments:a. 1st installment at the time of starting
50%
50%
roof level.
In case Urban Housing Loan amount of loan is disbursed into three installments:
a. For purchase of plot 50%
b. Up to roof level 25%
c. After roof level
25%
So above are the various stages into loan procedure adopted The Patiala Central
Cooperative Bank. Any customer can easily get a loan to fulfill his/her various
requirements and get it fastly as per as possible.
Loan Schemes
* Scheme for Financing Rural Housing *
Preamble:- With a view to provide housing facilities to the masses which is a basic need
of human beings, the GOI and State Govt. are attaching utmost importance to the
financing of housing sector. Several housing schemes for this are in operation. With a
view to supplement these schemes, it has been decided by the Coop. Bank to start
housing finance for acquisition, construction, repair/alteration etc. This scheme has
particularly been designed for rural people, where other financing institutions are
reluctant to advance. The scheme shall be called the Scheme for Financing Rural
Housing and is applicable to individual/members of house building cooperative societies
in the state of Punjab and Chandigarh (U.T.)
Is charged as contract made with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default amount for the default
period. 0.5% concession is allowed to women.
Security: - The security of the loan shall be first mortgage charge on the house property
to be financed by the bank by way of registered regular mortgage. In addition to it
collateral security shall be taken @ 100% of the loan amount in the form of agriculture
land. Value of agriculture land as per norms fixed by the District Collector from time to
time should be taken into consideration. In case of employees of the Govt., semi govt.,
Boards, Corporation, etc., constructing house within rural areas, loan can be advanced on
primary security i.e. mortgage of house to be financed, along with two good sureties and
undertaking under section 39 of Punjab Cooperative Societies Act., 1961.
Sanction and disbursement of Loan: - The loan shall be sanctioned after it is
ascertained that the applicant fulfils all the requirements and enjoys reputation as a good
pay master. For construction loan, the borrower should be in possession of plot with
unquestionable and indisputable title. In case of built up house, the payment shall be
made @ 75% of total value of the house/Loan sanctioned. Payment shall, however, be
made to third party in lump sum after getting margin money from the borrower and
remaining 25% shall be released after obtaining Mortgage Deed in favour of the Bank.
For construction of house, loan shall be disbursed in 2 installments, which is as under:c. 1st installment at the time of starting
50%
50%
roof level.
2nd installment shall be disbursed after ensuring proper utilization of previous installment.
Processing Fee & Other Charges: - Processing Fees and other charges @ 0.25% of loan
amount shall be charged
Documentation & general requirements: - Following documents are required for
financing under Rural Housing Scheme
1.
2.
3.
4.
5.
6.
7.
Application form
Loan agreement
D. P. Note
Two latest attested passport size photographs of the borrowers.
Proof of residence.
Source of Finance for own contribution.
Copy of approved drawing of the proposed dwelling unit to be
constructed/purchased from Sarpanch / Numberdar.
Salary Certificate.
Undertaking U/S 39.
Post dated Cheques.
Completion certificate.
Eligibility: - An individual residing in the area of operation of the Bank may apply for
the loan in his individual name or along with another person being joint owner of the
land/property as co-applicant. The applicant and co-applicant, if any will be enrolled as
nominal members of the bank under the Act, Rules and Bye Laws.
Note: The Borrower should not have defaulted in any other loan.
The applicant shall be eligible for a total house building loan not exceeding 75% of the
total cost of house (cost of construction + cost of plot, if plot is to be purchased) and the
loan out of it for purchase of plot will not exceed 50% of the total loan sanctioned. The
remaining, exceeding or up to 50% shall be utilized for construction of house thereon.
The employees of the Punjab State Cooperative Bank or Central Cooperative Banks who
have already availed house loan under Govt. or Bank Scheme from the Punjab State
Coop. Bank or Central Cooperative Banks can also get loan under the scheme subject to
maximum of Rs.25 lacks under both house loan scheme. It will be further subject to the
repaying capacity of the employee in accordance with their last salary statement. Further
this loan to employee will be against second charge on the said property.
Quantum of Loan: - The quantum of loan will depend upon the repayment capacity of
applicant to be calculated by the bank as under :
21 yrs. To 45 yrs of age.
48 times of the net monthly income (NMI) or 4 times of Net Annual Income (NAI)
Above 45 years
36 times of Net Monthly Income (NMI) or 3 Times of Net Annual Income of the spouse
or family member can be considered if spouse or family member is co-applicant or
guarantor. Maximum loan amount for construction of house or purchase of house/flat,
purchase of plot + construction thereon under this scheme is Rs.25 lacks or 75% of total
cost of construction, purchase of house (cost of construction + cost of plot, if plot is to be
purchased), whichever is less.
The loan for purchase of plot will not exceed 50% of the total loan sanctioned.
For repair/renovation maximum amount of loan shall be Rs.5 lacks.
For addition/alterations in existing house, maximum loan amount shall be Rs.10 lacks.
Interest: - At present rate of Urban Housing is 11% and further it shall be determined by
financing bank from time to time and debited to loan account. Interest
Is charged as contract made with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default amount for the default
period. 0.5% concession is allowed to women.
Period of Loan/ Repayment of Loan: - Maximum period (including moratorium period)
shall be 15 years or attaining the age of 65 years whichever is earlier. In case of
repair/renovation /addition/alteration loan cases maximum period shall be 10 years.
Repayment of the loan shall, however, be in monthly equated installment to be started
from 9 months after the first installment of loan disbursed. In case of the farmers availing
loan under this scheme, repayment of loan may be in half yearly installments i.e. 30th
June and 31st December every year.
Security: - Security for the loan is a first mortgage of the property to be financed
normally by way of deposit of original title deeds.
Disbursal of Loan: - The loan shall be disbursed after the property is technically
appraised, all legal documentation completed and borrower having invested own
contribution in full (own contribution is the total cost of proposed property Bank loan).
In case of purchase of plot + construction, the disbursement shall be in 3 installments as
follows:For purchase of plot 50%
Up to roof level
25%
25%
Loan will be disbursed at one go for purchase of a built up house. However, for
construction on pre-owned plot, the disbursement shall be in two installments.
1st Installment for construction after plinth level 50%
2nd Installment for construction of the building after roof level 50%
Loan for repair, additions, alterations and renovation shall be disbursed in two equal
installments. The second and subsequent installment of loan shall be disbursed only after
ensuring the utilization of previous installment to Banks satisfaction. Bank shall not be
bound to accept progress construction as assessed by builder.
Fee & Other Charges: - A processing fee @0.25% of the loan amount sanctioned will
be charged.
Documentation - Pre-sanction stage: -
1. Identify proof.
2. Residential Proof.
3. Self attested recent passport size photographs of the applicant and co-applicant
(two).
4. Copy of Income-tax Return for the three years duly acknowledged by ITO
concerned.
5. Sources of Finance for own contribution.
6. Non-encumbrance certificate.
7. Search report & legal opinion along with photograph of the property.
8. Original title deed.
9. Spot Physical verification.
10. Purchase agreement of property.
11. Income Proof/J-Form.
12. Loan application Form
Post Sanction Stage
1.
2.
3.
4.
5.
6.
Loan agreement.
Demand Promissory Note.
Mortgage Deed
Letter of Lien and Set Off
Letter of Waiver
Letter of Guarantee
If at any stage any dispute arises, it will be settled/referred under the Punjab Cooperative
Societies Act 1961.
* Personal Loan *
The Bank offers Personal Loan for various purposes such as meeting medical expenses,
renovation of residential accommodation, traveling, marriage etc.
Eligibility : - salaried employees of Punjab government, PSUs, Boards, Corporations,
Aided Schools/Colleges, Universities, Public Sector Banks, Premier Medical
Institutions, General Insurance Companies, Co-operative organizations in the state of
Punjab or any other organizations as approved by the Board of Directors of the respective
Bank etc.
Age: - Minimum 21 years and Maximum 57 years.
Service Tenure: - 1 year after the confirmation/regularization.
Loan Amount: - 12 Times of gross monthly salary or Rs. 2,00,000/- only , whichever is
less.
Period of Loan: - Maximum- 5 years. Loan may be repaid in 36/48/60 Equated Monthly
Installments (EMI).
Rate of Interest: - 14% p.a.
Income: - Net income of the person should not be less than Rs.5,000/- p.m. in case of
salaried persons and Annual Income of not be less than Rs.60,000/- in case of others.
Repayment of Loan: - Loan is repayable in equated monthly installments in the form of
post-dated cheques. The 1st installment will start after one month. The Loan will be repaid
before retirement.
Security : - No collateral security is required, only two guarantor know to the bank.
Option to repay loan: - Borrower can make the part pre-payment of loan. No penalty
will be charged.
General: - No employee will be given this loan facility, which has defaulted in
repayment of loan under any other scheme.
1. The bank may grant loans to individual salary earners and non-salary
earners holding saving bank account or current account with the bank for
purchase of consumer durables and meeting other socio-economic needs.
2. The loan should be repayable in monthly installments but the total
duration of loan should not exceed three years in any case.
3. The borrower should be enrolled as a nominal member of the Bank.
The Borrower should be required to produce 2 sureties who should also be
nominal members of the Bank.
4. In case of SALARY EARNERS, the amount of loan should not
exceed Rs.1.00 lac per borrower or 75% of the cost of article to be
purchased whichever is less, in accordance with the slabs fixed
hereunder:Total net emoluments upto Rs.5000/Amount = Rs.25000/-
- Loan
- Loan
- Loan
- Loan
Amount Loan
Rs.15000/Rs.25000/-
Rs.30000/-
Rs.50000/-
5. The loan should be advanced for acquiring new assets only. Purchase
of second hand articles should not be financed in any case.
6. The bank should obtain salary certificate from the borrower. The
borrower himself should be responsible for the repayment of his loan.
However he should also produce a copy of authority letter addressed to the
bank and also an undertaking to the effect that in case borrower commits
default in repayment of his loan installments, then his salary or loan
amount due will be credited to his loan account till the bank directs to do
so. The bank shall inform the employer immediately after the sanction of
loan.
7. In case of default by the borrower, the bank will ask the employer of
the borrower to deposit the due amount by deducting from the salary of
the employee.
8. The borrower should give standing instruction to debit the amount of
installments or overdue installments together with interest due on that loan
every month to his saving bank account or current account as the case may
be.
9. The bank should also obtain the following documents from the
borrower :a.
b.
c.
d.
Admission Fee
Purchase of books and stationary
Purchase of instrument required for course undertaken by applicant.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
Amount of loan:
Recovery of Loan: - The recovery of principle amount will start after one year of total
duration of course or after 6 months of getting the job/employment by the applicant,
which ever is earlier.
Basic Requirements: 1. Admission Letter.
2. Mark Sheet / Certificate for passing last Board / University examination.
3. Students going abroad for study will have to submit the necessary documents such
as copy of Passport, copy of Admission Letter, copy of Form I-20 (for U.S), Visa,
etc.
4. Applicant should produce year-wise estimated total expenditure which is to be
incurred such as Tuition Fees, Term Fees, Living Expenses, Traveling, Cost of
Books, Examination Fees, etc. Hypothecation of stocks and book debts.
5. Progress Report of the studies of the student from time to time.
6. Disbursement of loan will be made at stages during the duration of the course of
the study as per the requirement as mentioned in the schedule of year wise
estimated expenditure.
7. Any scholarship received during the course of study must be intimated to the bank
and as far as possible such amount received should be adjusted in loan account.
8. If study is discontinued for whatsoever reason, Bank must be informed and loan
amount must be paid immediately.
9. All other documents and information to be provided as per checklist provided
with the Application Form.
10. The loan documents should be executed by both the student and the Parent /
Guardian as C o-applicant.
* Vehicle Loan *
Rule
No.1
These rules are called the rules for granting of Vehicle Loan to
individuals, firms, HUF, Companies, Trust and Cooperative Societies.
Rule
No.2
Rule
No.3
The maximum amount that can be sanctioned under the scheme is limited
to Rs.10.00 lac or 80% of value of the vehicle whichever is less.
Rule
No.4
The cost of the vehicle shall be paid directly by the Bank to the suppliers
or authorized dealers on receipt of intimation from the dealer and
instructions from the applicant.
Rule
No.5
The application for loans should be made in the form prescribed by the
Bank.
Rule
No.6
Rule
No.7
Rule
No.8
The vehicle should be comprehensively insured for the full value covering
all risks and the policy should be in the joint names of borrower and the
bank with agreed bank clause.
Rule The charge of the bank on the vehicle in the form of registration should be
No. 9 registered with the registering authority within 90 days of purchase of
vehicle, failing which additional interest at the rate of 3% shall be
charged.
Rule The repayment of loan should be in the form of monthly installments to be
No.10 repaid within 5 years. However farmers may opt for half-yearly
installments due on 30th June and 31st December. One month moratorium
period shall be allowed under the scheme.
Rule The Bank reserves the right to proceed against the borrower and sureties
No.11 in the event of default in the repayment of loan installment/s.
Rule The borrower should agree to produce the vehicle for periodical
No.12 inspection to ensure that it is maintained in satisfactory condition.
Rule The borrower should agree to be bound by arbitration provisions in the
No.13 Punjab Cooperative Societies Act 1961 and the Rules framed there under.
Rule The borrower should give an undertaking stating that all the terms and
No.14 conditions stipulated by the Bank while sanctioning the loan and those
conditions that may be stipulated in future by the bank are acceptable to
him.
charged as contract made with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default amount for the default
period. 0.5% concession is allowed to women
Period of Loan/Repayment of Loan: - Maximum period of loan shall be five years.
Repayment of the loan shall, be in monthly equated installment. In case of urban
borrowers and half yearly equated in case of rural borrowers due on 30th June and 31st
December. Moratorium period of one month shall be allowed under the scheme.
Security: - The security for the loan is 1st Hypothecation of the Vehicle in the name of
the bank entered in RC of the vehicle. Two good sureties residing in area of operation of
the bank and having a PAN Card in case of urban areas and two sureties of the status of
borrower in case of rural area. The sureties shall be enrolled as nominal member of the
bank under the Act.
OR
A collateral security to the extent of 100% of loan in the shape of assignment of life
insurance policy, pledge of NSCs, KVPs, Term Deposits of own bank, in case the
borrower is not willing to give sureties.
Disbursal of Loan: - The loan will be disbursed after the appraisal of all legal
documentation completed and borrower having deposited his share of margin in the SB
account. The disbursement will be third party payment by way of banker cheque/Demand
Draft in the name of the seller (owner of the vehicle) delivered through and under receipt
from borrower.
Fee and Other Charges : - A processing fee of 0.25% of the loan amount sanctioned
shall be charged.
Documentation : 1. Identity proof
2. Residential proof
3. Two self attested recent passport size photographs of the applicant and sureties
each.
4. Photocopy of the PAN
5. Copy of Income Tax Return for last three years duly acknowledged by ITO
6. Photocopy of the Driving License
7. A photocopy of the RC of the Vehicle and case of rural people copy of Fard,
Jamabandi.
8. Loan application form
9. Loan agreement
10. DP Note
11. Hypothecation deed/Collateral Security/Agreement Bond from
Sureties.
12. Agreement of Sale.
Security for the loan is a first mortgage of the property, against which loan/limit is
granted, by way of deposit of title deeds. The valuation of the property will be
based on the basis of last reserve price of the auction fixed by the Chandigarh
Administration. For the properties situated out side the Chandigarh, it will be the
official rates of registration fixed for the same by respective Municipal or
Registration Authority or current market value whichever is lower.
Suitable one guarantee acceptable to the bank. The guarantor should have its net
worth equal to or more than the loan amount to advanced. In case the income of
family member is taken while calculating loan eligibility, he/she must be taken as
guarantor.
Post dated cheques for the months for which repayment of term loan option is
due.
II.
III.
Repayment of Loan:
a. Loan together with interest is repayable in maximum 72 equal monthly
installments.
b. Overdraft facility is to be renewed/reviewed annually.
Processing Fees: - 0.5% of the sanctioned amount shall be charged. In case of limit of
0.25% will be levied every year on the credit limit.
Documentation:
1.
2.
3.
4.
5.
6.
7.
Agreement with Housing Agencies : - The Bank shall enter into agreement with the
concerned housing agencies for collection of applications on behalf of the agencies and to
get direct refund of unsuccessful applicants financed by the bank within specified time.
Margin: - No margin required.
Security : - No security required.
Maximum Loan : - As per scheme of the agency.
Interest rate : - As fixed by bank from time to time. Interest will be charged initially for
a period as stipulated by the concerned DCCB and will be non refundable. In case of
delay in allotment, repayment, refund of money beyond stipulated period , bak will
charge interest as fixed by it.
Processing Fee :- As fixed by PSCB/ concerned DCCB.
Disbursement: - The loan would be disbursed by the issuance of draft/bankers cheque
favoring the concerned agency.
Repayment of Loan
150% cover partly by immoveable property and partly by securities such as NSCs, IVPs,
Banks deposits. In case the property/security is in the name of third party, personal
guarantee of the owner of assets proposed to be taken as collateral security.
Rate of Interest: - As decided by the bank from time to time.
Period of Loan: - Maximum period of loan shall be 10 years or unexpired period of
lease, whichever is earlier.
Repayment of Loan: - By way of equated monthly installments from the proceeds of
monthly rentals, to be repaid within 120 months or unexpired period of lease, which is
less.
Margin: - Minimum 25%
Processing Charges: - 0.50% of the loan amount. These are changed time to time.
Insurance: - Insurance for full market value of properties in the name of borrower(s) to
be mortgaged to bank with bank clause. Insurance to cover risk such as fire, riot,
earthquake etc.
Documents: 1.
2.
3.
4.
5.
Loan application.
Certified Copy of Less Deed.
Proof of income for applicant and lessee.
Copy of IT return.
Certificate copies of title deeds of the properties leased out and mortgaged along
with latest tax receipts.
6. Copy of approved building plan.
7. Authority letter by the borrower to the bank for receiving rent directly from the
tenant/lessee and letter of undertaking from tenants/lessee to pay rent directly to
bank.
8. Tripartite Agreement between borrower, lessee and the bank.
9. Copy of partnership deed/memorandum and articles of Association (not for
individual applicant).
10. Copy of lease/tenancy agreement.
11. Copy of latest tax receipt of the property.
12. Latest IT/WT Assessment, if available.
13. Audited Balance Sheets of Firm/Company.
14. Certificate of outstanding balance in loan a/c against the property.
15. Copy of latest rent receipts ( in case existing tenant/lessee).
Rule
No.2
Rule
No.3
Rule
No.4
Rule
No.5
Rule
No.6
Rule
No.7
Rule
No.8
Rule
No.9
Rule
No.10
The licensed contractors approaching the Bank for CashCredit Facility should give a power of Attorney in favour of
the Bank to receive the cheque from Government/ Quassi
Govt. Institutions and to encase the same.
Rule
No.11
Rule
No.12
Rule
No.13
Rule
No.14
Monthly
Rule
No.16
Rule
No.17
The borrower should insure the assets created out of loan and
the policy should be in the joint name of the borrower and the
bank with agreed bank clause.
Rule
No.18
Rule
No.19
Deleted.
Rule
No.20
Rule
No.21
Rule
No.22
Rule
No.23
This is Scheme for Financing Farmers Growing Sugar Cane Crop in Tie up Arrangement
with Sugar Mill Acting as Business Facilitator
Purpose: To provide Crop Loans for cultivation of sugar Cane under tie up arrangement
with Sugar Mills acting as Business Facilitator.
Eligibility: Farmers growing and supplying Sugar Cane .
Nature of Loan: Cash Credit
Extent Of Loan: Need based Maximum Rs.3.00 Lakh
Repayment of Loan: 12/18 months. To be synchronized with harvesting of crop
F) Tractor loan
In order to mechanize farming and improve the output of the farmers,
the Bank has been giving loans for the Purchase of Tractors.
The work load with the owner of the tractor should be so that he has to use the
tractor for at least 1000 hrs/year.
For the Purchase of the Tractor, the beneficiary availing loan should own or
purchase a minimum of 3 Agricultural Implements (including Trailor) to be used
with the Tractor.
In the purchase of the first Tractor the loanee has to spend 15% of the total cost
of the Tractor (including shares - 10% margin money & 5% shares) & with the
second purchase30% of the total cost is to be spared by the loanee as down
payment out of his own pocket.
Loan is given only for those Tractors which are Budhni tested and are ISI
approved. The payment of the tractor is given to the Supplier Firm, as third party
payment.
The tractor should be registered by the Transport Authority.
The insurance of the tractor is must.
The repayment period for Tractor Loan is 9 years.
Area should not be Dark, but should be White or Grey for installation of new tube
well.
Unit cost varies from area to area according to the depth of underground water
and credit is given up to the actual cost of tube well installation.
Land Leveling
Sand scraping
Under-ground Pipe-lines
Reclamation of Alkaline soils
Reclamation of Shallow Ravine
Details : -
Purpose
14,500
11,250
13,400
9,000
10,000
Resources: - The Bank raises its resources with the collection of share capital
strengthening on its owned funds by taking deposits and borrowings from the NABARD,
Punjab State Co-operative Bank Ltd., Chandigarh or from Punjab Government.
Dairy business has been very successful in Punjab. The bank also has a greater role in the
success of Dairy Farming in Punjab. The bank's schemes have proved very beneficial for
the rural areas of Punjab. Under the Dairy Development Scheme, loans are provided to
Individual/Milk Unions for the establishment of two, three, five and ten milch animals
units as under:
Objectives: a. To increase the income of members of Cooperative Milk Societies helping them
to purchase higher yielding cattle.
b. To increase the income and supply of milk to Cooperative Milk Producers
societies.
Minimum Economic Size: - The Central Cooperative Bank through its branches shall
extend loan facility for the purchase of one cow.
Eligibility Criteria: I.
II.
III.
IV.
V.
VI.
Amount of Finance: - The bank shall provide loan for one cow with ceiling of rs.
35000/- or the animal whichever is less.
Margin Money: - The applicant contributes minimum 15% of the total cost of animal as
margin money. However margin for scheduled caste, Backward Class and Economically
backward members shall be 10%.
Rate of Interest: - The bank shall charge interest @ 10.5 % per annum from the member
of the Milk Producers Cooperative Societies which will be subject to change as per
prevalent market rates from time to time.
Repayment of Loan: - The loan shall be repay\able in 5 years in equal monthly
installments along with interest.
Securities/documents: - The members shall furnish the following security/document to
the Central Cooperative bank.
a. Time pronote
b. Guarantee by two persons who should be nominal members of the bank and who
should be the owner of at least 2 acre of agriculture land.
c. Hypothecation of milk animal to financed by the bank.
d. He shall sign and get signed tripartite agreement between the borrower the
Cooperative Milk Producers society and the bank.
Application Form: - The application form for dairy loan will be submitted by the
member on prescribed from as per annexure a through the Cooperative Milk Producers
Society.
Appraisal : - The branch Manager of the central Coop. Bank shall visit the farm to
appraisal the technical feasibility and economic viability of the proposal. He shall apprise
project as per Performa annexed as Annexure B.
Procedure to be followed: - An eligible person shall apply for the loan prescribed
Performa attached as annexure A to the Branch Manager of central cooperative bank
through the Village Milk producer Cooperative society. The President of the milk
producer cooperative society shall place the application before the managing committee
of the society for consideration of the application for its recommendation to the bank. If
the managing committee approves the application then the president shall forward it to
the branch manager of the branch of the central cooperative bank in whose area of
operation the society falls. After the application along with resolution of the society is
received in the branch of the bank the branch manager shall apprise the loan case as the
appraisal from (attached at Annexure B). After the appraisal of the loan case the branch
manger will sanction the loan and get the necessary documents executed from the
borrower.
After the execution of documents the manager shall get margin money deposits from the
applicant in his saving bank account. The manager shall disburse the loan through
draft/pay order/cheque in favor of third party from whom the borrower has purchase cow
by debiting the loan account for the amount of loan and saving account for margin
money.
CHAPTER V
FINDINGS AND CONCLUSION
Findings of the study
o
o
o
o
Patilala Central Cooperative Bank is the district level bank and it has 43
branches in rural and urban areas to serve the all types of customers.
PCCB is aided by NABARD and Punjab Govt. bear 50% share of the bank
Most of the branches of PCCB are still non-computerized and employees
are doing their work manually.
Under PCCB most of the staff is old aged and there is a lack skills of new
blood.
o
o
o
o
The main purpose of PCCB is to serving the people in both rural and
urban area.
The procedure getting a loan is very simple and understood able under
P.C.C.B.
The service of loan granting is very fast under P.C.C. B. A loan can be
passed into 3 or 4 days.
The Patiala Central Cooperative Bank also provide some non collateral
loan schemes only on the basis of guarantee like personal loan scheme
which benefited to a normal person.
Conclusion
The repaid changes in the banking sector are creating opportunities and challenges.
Increasing size, Breadth, complexity and geographic scope of banking have increased
challenges of managing, regulating and supervising banks. Also it has become quite
difficult for a bank to a gain a unique market share. Still the bank is old one, and
according to market requirements bank increase and develop its products time to time
like initially bank provide most of the agricultural loan schemes but now it also preferred
to other types of loan schemes which really help to general people. But to meet the
competition of market in proper manner Patiala Central Cooperative Bank Ltd. Need
some more hard work and management should pay more attention.
CHAPTER VI
RECOMMENDATIONS
Recommendations
BIBLIOGRAPHY
Bibliography
I) Documents and Circulars
1. Previous years Reports are analyzed.
2. Documents and Circular
II) List of Websites
1. http://www.nios.ac.in/Secbuscour/15.pdf
2.
3.
4.
5.
6.
7.
8.
9.
http://finance.indiamart.com/investment_in_india/banking_in_india.html
http://en.wikipedia.org/wiki/Banking_in_India
http://www.banknetindia.com/banking/bfunc.html
http://www.capitalmarket.com/CMEdit/SFArtDis.asp?SFSNO=356&SFESNO=19
http://www.banknetindia.com/banking/ucb.htm
http://www.moneyguideindia.com/what-are-co-operative-banks/
http://pbcooperatives.gov.in/PSCB.htm
http://www.ecommercejournal.com/news/punjab_state_co_operative_bank_enhan
ce_its_efficiency_by_means_of_flexcube
10. http://www.punjabcooperation.gov.in/html/pscb_history1.html
11. http://www.scribd.com/doc/17319280/CoOperative-Bank-Mgt
12. http://www.investorwords.com/2858/loan.html
13. http://www.articlesbase.com/loans-articles/importance-of-loans-in-todays-life184411.html
14. http://digilib.petra.ac.id/viewer.php?
page=1&submit.x=0&submit.y=0&qual=high&fname=/jiunkpe/s1/hotl/2008/jiun
kpe-ns-s1-2008-33403003-9666-food_lucky-chapter4.pdf
15. http://www.allbusiness.com/management/125039-1.html
16. http://en.wikipedia.org/wiki/Procedure_(term)