Understanding Customer Expectations from Cooperative Banks

A
PROJECT REPORT
ON
“Study of co-operative bank with reference to Deposit and credit
Scheme”
MASTER OF COMMERCE
(2017-2019)
Supervised By Submitted By
Miss. Monica Megha Jaswal
Department of commerce& M.com 2nd Sem
Business Administration Roll No.47566
Dasmesh Girls College Chak Allah Baksh, Mukerian
Accredited with “A” Grade by NAAC
4
DECLARATION
This is to certify that project report on entitled “Study of co-operative bank with
reference to Deposit and credit Scheme” submitted by Megha jaswal in M.Com program
from DGC, Chak Alla Baksh, Mukerian is my original work and the project report has not
formed the basis for award of my diploma, degree, associate ship, fellowship or similar
other titles. It embodies the original work done by me under guidance of Miss Monica
Megha jaswal
5
TO WHOM IT MAY CONCERN
This is to certify that the research project entitled “A COMPARATIVE STUDY OF HOME
LOANS PROVIDED BY COOPERATIVE BANK, PUNJAB NATIONAL BANK AND STATE BANK OF INDIA”
submitted in partial fulfillment of the requirement for the award of degree of Master of
Commerce (M.COM) from Department of Commerce and Business Administration. Dasmesh
Girls College, Chak Alla Baksh, Mukerian is a bonafide research work carried out by Megha
Jaswal under my guidance and no part of her study has been submitted earlier to this
university for the fulfillment of requirements of any degree.
Principal Project Guide

Dr. Mrs. Ravinder Kaur Chadha Miss Monica
Dasmesh Girls College, Chak Alla Baksh, (Asst. Professor)
Mukerian Department of Commerce &
Business Administration
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ACKNOWLEDGEMENT
It is imperative for successful completion of a task to complement those who made that task
work.
I sincerely bow my head and thank the almighty for bestowing his blessings on me. This
is utmost pleasure of mine, to show my heartfelt gratitude to those individuals who have
given their considerate support and guidance. This project would not have been possible
without them.
I am falling short of words to express my sincere thanks to the management of “Punjab

State Co-operative Bank, for providing me an opportunity to undergo training in their
reputed organization. I am deeply motivated and encouraged after working with the
very efficient and cooperative staff of PSCB.
I am highly indebted to my faculty members of School of Management Studies, Dasmesh Girls

College ,Mukerian for helping me in various ways.
My sincere regards to my friends who worked with me all through the project and helped
me in the noble accomplishment.
I thank my parents who have always been my driving force to work hard and keep the learning
process continuous and never ending.
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TABLE OF CONTENTS
SR.NO TOPIC PAGE NO.
1. Certificate 2
2. Acknowledgement 3
3 List of tabs 5
4. Abstract/Summary 6
5. INTRODUCTION
 Industry 7
 Company Background 13
 Project Detail 37
6. Research Methodology 38
7. Research Design 39
8. Literature Review 40
9. Chapterisation 45
10. Data Analysis and Interpretation 46
11. Limitations 58
12. Conclusions 58
13. Recommendations 59
14. Bibliography 60
15. Annexures 61
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LIST OF TABS/FIGURES
SRNO. TOPIC PAGE NO.
1. Banking Structure in India 7

2. The Banking Matrix 9
3. Structure of Cooperative Banking 15
4. PSCB, No. of braches, Address and Date of Origin 21
5. PSCB- Organization Structure 22
6. Profit and Loss of PSCB branches for three consecutive years from 23
2010 to 2012
7. Target on Term Deposits for the financial year April 2013-March 26
2014
8. Interest Rates on Deposits with effect from 20.12.2012 26
9. Types of credit Schemes 27
10. Target on Loans for the financial year April 2013-March 2014 31
11. Interest Rates on Loans with effect from 20.12.2012 31
12. Uses of Finacle 33
13. PSCB-MM, Total No. Of Accounts 34
14. PSCB-MM,Average Cash in hand 35
15. PSCB-MM, Average Deposits 36
16. PSCB-MM,Average Loans and Advances 36
17. Eligibility Criteria for availing loans 43
18. Analysis and Interpretation Charts
 Demographic Analysis 46
 Knowledge and Awareness among customers 49
53
 Co-relation analysis 55
 Expectations of Customers
19. Comparison between PSCB(MM), Head Office & PSCB (total) of 57
their annual profit
20. Annexures 61
 Questionnaire
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SUMMARY
The Cooperative Sector has been playing a significant role in the area of disbursing
agricultural credit, providing market support to farmers, distribution of agricultural
inputs and imparting cooperative education and training etc. The basic objective of the
Cooperation Division is to design long term and short term strategies for reducing
economic disparities between the downtrodden rural people and the rural rich as well as
regional imbalances including rural and urban differences.
In today’s competitive environment where corporates are constantly searching for ways to
keep a float and sustain the market share, they have to find newer and better ways to
satisfy customer needs. To run any organization successfully the management needs to
think always for the betterment of their service and product.
Banking business is now expanding three folds and is facing tough competition. The
Private sector along with the public sector is performing high on scale and ruling the
markets. Adding to the glory, there are foreign banks that have also captured a
commendable market share.
Considering this, the State Cooperative Banks need to take such steps which assist
them in marching ahead in the race and survival of the fittest. This has always been
the motto of Cooperative Banks and in order to achieve this, we are hereby
analyzing the level of satisfaction of PSCB customers and their expectations.
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BANKING INDUSTRY – AN OVERVEIW
BANKING – DEFINITION
In simple words, Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then lending out this
money in order to earn a profit. However, with the passage of time, the activities covered
by banking business have widened and now various other services are also offered by
banks. The Banking services these days include issuance of debit and credit cards,
providing safe custody of valuable items, lockers, ATM services and online transfer of
funds across the country/ world.
WHAT IS A BANK
Bank is a financial institution that undertakes the banking activity that is, it accepts
deposits and then lends same to earn certain profit.
BANKING STRUCTURE IN INDIA
8
BANKING-HISTORY AND DEVELOPMENT
Banking in India originated in the last decades of 18th century. The first banks were The
General Bank OF India, which started in 1786, and Bank of Hindustan, which started in
1790; both are now defunct. The oldest bank which is in existence is the State Bank of
India, which originated from the Bank of Calcutta in June 1806, which almost immediately
became Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras, all three of which were established under
the Charters from the British East India Company.
For many years the Presidency Banks acted as quasi-central Banks, as did their
successors. The three banks merged in 1921 to form the Imperial Bank of India, which
upon India’s independence, became State Bank OF India.
Foreign Banks started to arrive, particularly in Calcutta, in the 1860s. The

Comptoire d’Escompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862. Then a French colony followed. HSBC established itself in Bengal in
1869. Calcutta was the
9
most active trading port in India, mainly due to the British Empire, and so became a Banking
Center.
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi Movement. It inspired local businessmen and political figures to establish
banks for and of Indian Community. A number of banks established then have survived
to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.
The Reserve Bank of India, India’s central banking authority, was nationalized on January
1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership)
Act, 1948. In 1949, the Banking Regulation Act also provided that no new bank or
branch of an existing bank could be opened without a license from the RBI.
NATIONALISATION
Despite the provisions, control and regulations of Reserve Bank OF India, banks in India
except SBI, continued to be owned and operated by private persons. By the 1960’s the
Indian Banking Industry had become an important tool to facilitate the development of
the Indian Economy. At the same time, it had emerged as a large employer, and a debate
had ensued about the nationalization Of Banking Industry.
The Government of India issued an ordinance and nationalized the 14 largest commercial
banks with effect from the midnight of July 19, 1969. Within 2 weeks of the issuance of
ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of
Undertaking) Bill, and it received the presidential approval on 9th August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for nationalization was to give the government more control of credit
delivery. With this, the government of India controlled around 91% of Banking Business.
Later on, in the year 1993, the government merged New Bank of India with Punjab
National Bank. It was the only merger between the nationalized banks and resulted
in the reduction of the number of nationalized banks from 20 to 19.
After this, until the 1990s, the nationalized banks grew at a pace of around 4%,
closer to the average growth rate of Indian Economy.
LIBERALISATION
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,
licensing a few number of Private Banks. These came to be known as New Generation tech-
10
savvy banks, and included Global Trust Bank (the first of such new generation banks to be
set up), which later amalgamated with the Oriental Bank of Commerce, Axis Bank(earlier
as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the
economy of India, revitalized the banking sector in India, which has witnessed strong
contribution from all the three sectors of Banks, namely- Government Banks, Private
Banks and Foreign Banks.
The next stage of Indian Banking is now being set up with the proposed relaxation in the
norms of Foreign Direct Investment. The Current FDI limit for Public Sector banks
(including SBI) is 20% and for private Banks, the limit is 74% with some
restrictions.
TYPES OF BANKS
The banking industry can be divided into following sectors, based on the clientele served
and products and services offered:
1. Retail Banks
2. Commercial banks
 Public Banks
 Private Banks
3. Cooperative banks
4. Investment Banks
5. Specialized banks
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Punjab State Cooperative Bank- Deposit & Credit Schemes
6. Central banks
 Retail Banks:
Retail banks provide basic banking services to individual consumers. Examples include
savings banks, savings and loan associations, and recurring and fixed deposits. Products
and services include safe deposit boxes, checking and savings accounting, certificates
of deposit (CDs), mortgages, personal, consumer and car loans.
 Commercial Banks:
Banking means accepting deposits of money from the public for the purpose of lending
or investment. Commercial Banks provide financial services to businesses, including
credit and debit cards, bank accounts, deposits and loans, and secured and
unsecured loans. Due to deregulation, commercial banks are also competing more with
investment banks in money market operations, bond underwriting, and financial
advisory work. Commercial banks in modern capitalist societies act as financial
intermediaries, raising funds from depositors and lending the same funds to borrowers.
The depositors’ claims against the bank, their deposits, are liquid, meaning banks are
expected to redeem deposits on demand, instantly.
Banks’ claims against their borrowers are much less liquid, giving borrowers a much
longer span of time to repay money owed banks. Because a bank cannot immediately
reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up
on a given day to withdraw all their money.
THERE ARE TWO TYPES OF COMMERCIAL BANKS, PUBLIC SECTOR AND

PRIVATE SECTOR BANKS.
 Public Sector Banks:
Public sectors banks are those in which the government has a major stake and they
usually need to emphasize on social objectives than on profitability.
 Private sector banks:
Private sector banks are owned, managed and controlled by private promoters and
they are free to operate as per market forces.
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 Investment Banks:
An investment bank is a financial institution that assists individuals, corporations and

governments in raising capital by underwriting and/or acting as the client's agent in the
issuance of securities. An investment bank may also assist companies involved in mergers
and acquisitions, and provide ancillary services such as market making, trading of
derivatives, fixed income instruments, foreign exchange, commodities, and equity
securities.
Investment banks aid companies in acquiring funds and they provide advice for a wide
range of transactions. These banks also offer financial consulting services to companies
and give advice on mergers and acquisitions and management of public assets.
 Cooperative Banks:
Cooperative Banks are governed by the provisions of State Cooperative Societies Act
and meant essentially for providing cheap credit to their members. It is an important
source of rural credit i.e., agricultural financing in India.
 Specialized Banks:
Specialized banks are foreign exchange banks, industrial banks, development banks, export-
import banks catering to specific needs of these unique activities. These banks provide
financial aid to industries, heavy turnkey projects and foreign trade.
 Central Banks:
Central banks are bankers’ banks, and these banks trace their history from the Bank
of England. They guarantee stable monetary and financial policy from country to country
and play an important role in the economy of the country. Typical functions include
implementing monetary policy, managing foreign exchange and gold reserves, making
decisions regarding official interest rates, acting as banker to the government and other
banks, and regulating and supervising the banking industry.
These banks buy government debt, have a monopoly on the issuance of paper money, and
often act as a lender of last resort to commercial banks
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COMPANY BACKGROUND
(PUNJAB COOPERATION – AT A GLANCE)

ORIGIN OF COOPERATIVE BANKS IN INDIA
Cooperative movement is quite well established in India. The first legislation on

cooperation was passed in 1904. In 1914 the Maclagen committee envisaged a three tier
structure for cooperative banking viz. Primary Agricultural Credit Societies (PACs) at the
grass root level, Central Cooperative Banks (CCBs) at the district level and State
Cooperative Banks at state level or Apex level. The first urban cooperative bank in India
was formed nearly 100 years back in Baroda.
In the beginning of 20th century, availability of credit in India, more particularly in rural
areas, was almost absent. Agricultural and related activities were starved of organized,
institution
14
credit. The rural folk had to depend entirely on the money lenders, who lent often at high
rate of interest.
The cooperative banks arrived in India in the beginning of 20th Century as an official
effort to create a new type of institution based on the principles of cooperative
organization and management, suitable for problems peculiar to Indian conditions.
These banks were conceived as substitutes for money lenders, to provide timely and
adequate short term and long term institutional credit at reasonable rates of interest.
In the formative stage Cooperative Banks were Urban Cooperative Societies run on
community basis and their lending activities were restricted to meeting the credit
requirements of their members. The concept of Urban Co- operative Bank was first
spelt out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative
Bank. Provisions of Section 5(CCV) of Banking Regulation Act, 1949 (as applicable to
Co-operative Societies) defined an Urban Co-operative Bank and was made applicable in
1966.
IMPORTANCE OF COOPERATIVE BANKS IN INDIA
Cooperatives have played a vital role in improving the economic conditions of farmers
and accelerating the pace of development in Punjab.
Development through Cooperatives was a dream cherished by freedom fighters of India

ever since Independence. Cooperative principles ensure harmonious development,
through democratic management and governance.
Cooperatives have brought both the services and resources at the doorsteps of
villagers in Punjab. These have been enthusiastically serving the people of Punjab in
area such as agriculture, housing, spinning, sugar production, weaving and dairy etc.
The performance of Cooperative Movement in Punjab is very impressive.

Cooperatives constitute the major source of institutional credit for agriculture.
Cooperatives are playing a pivotal role in socio-economic development of the State. These
are key instruments of the State to develop and sustain its rural economy, which is
primarily agrarian. The Department of Cooperation has accelerated Cooperative
movement in Punjab during the last three years
MISSION
Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency and structural
reforms.
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TEN COMMANDENTS OF PUNJAB GOVERNMENT (DEPARTMENT OF

COOPERATION)
 Support and sustain agriculture as a multi-functional occupation in the states.

 Provide desired impetus and diversification of agriculture in the state.
 Liberalize and adjust structures to deliver commodities and services to the
farmers at the competitive price.
 Assume quality leadership for branded products with high mark-ups in the
agriculture, sugar, food, milk and handloom sectors.
 Promote vertical integration for creating strong bonds with farmers and
improve product quality.
 Modernize and professionalize organization and management.
 Be action driven and become virtual
 Reduce operational costs and increase efficiency
 Increase membership and business with greater people's participation
 Ensure honesty, transparency and check corruption
VALUES
A Cooperative is a system voluntarily to meet their common economic, social and

cultural needs and aspirations through a jointly-owned and democratically controlled
enterprise.
PRINCIPLE FEATURES OF CO-OPERATIVE BANKS
 Voluntary and Open Membership

 Democratic Member Control
 Member’s Economic Participation
 Autonomy and Independence
 Education Training and Information
 Cooperation among Cooperatives
 Concern for Community
 Cooperative banks are partially financial intermediaries. The sources of their
funds are:
i. Central and State Government;
ii. The Reserve Bank Of India, NABARD;
iii. Other cooperative institutions;
iv. Ownership funds and
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v. Deposits or debenture issues

 Cooperative banks belong to the money market as well as to the capital market.
 Cooperative banks are subject to CRR and liquidity requirements as other
scheduled and non-scheduled banks are. However, their requirements are less
than commercial banks.
STRUCTURE OF COOPERATIVE BANKING

RBI
NABARD
SCBs SLDBs UCBs
CCBs CLDBs
PLDBs BRANCHES OF
SLDBS
ABBREVIATIONS USED IN CHART:

SCBs: State Cooperative Banks
SLDBs: State Land Development
Banks UCBs: Urban Cooperative
Banks CCBs: Central Cooperative
Banks CLDBs: Central Land
Development Banks
PACS: Primary Agricultural Credit
Societies PLDBs: Primary Land
Development Banks
TYPES OF COOPERATIVE BANKS

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1) STATE COOPERATIVE BANKS(SCBs)

State cooperative banks are a federation of central cooperative banks and
act as a watchdog of the cooperative banking structure in the state. Its funds are
obtained from share capital, deposits, loans and overdrafts from Reserve Bank of
India. State cooperative banks lend money to central cooperative banks and primary
societies and not directly to farmers.
2) CENTRAL COOPERATIVE BANKS(CCBs)
Central cooperative banks are the federations of primary credit societies in
a district and are of two types ¬¬–those having a membership of primary societies only
and those having a membership of societies as well as individuals. The funds of the bank
consist of share capital, deposits, loans and overdrafts from state cooperative banks and
joint stocks.
These banks finance member societies within the limits of the borrowing capacity of
societies.
3) PRIMARY AGRICULTURAL CREDIT SOCIETIES(PACS)
Cooperatives have played a major role in the supply of finance to agriculture sector for
the development of land, irrigation system and for its mechanization. The agricultural
cooperative credit in Punjab is divided into two sectors mainly, one dealing with short and
medium- term credit and the other with the long- term credit. The long term credit is
awarded from the Punjab State Cooperative Land Mortgage Bank at the apex and the
Primary Cooperative Land Mortgage Banks at district/tehsil level.
4) PRIMARY COOPERATIVE BANKS(PCBS)
They are non- agricultural societies. These are of two types –Urban Cooperative Banks and
Salary Earners’ Societies. Development of PCBs is looked after by the RBI. The RBI and
IDBI offer them concessional refinance facility on a selected basis. They operate in urban
and semi urban areas. They provide housing finance and loans and advances for various
purposes such as petty trade and industry
POLICY AND PLANNING
 Structural and Administrative Reforms
1. Punjab Cooperative Societies Act, 1961. (Proposed amendment bill 2007).

2. Downsizing and dispersal of bureaucracy to improve efficiency and delivery.
3. Formulation and Introduction of Code for Accounting and Administrative procedures
in all Apex Cooperative Federations.
4. Computerization of Operations and Records.
5. Human Resource Development through Intensive Training and Up-gradation of
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knowledge and skills.

6. Intensive Application of Information Technology.
7. Promotion and Development of Insurance Cooperatives.
8. Creation of a fund at Apex and Central Level for development of Primary
Cooperatives.
 Promotion of New Generation Self-Reliant Cooperatives
1. Development of Women Cooperatives and self-help groups.

2. Urban Cooperative Banks.
3. Multi-purpose Cooperative Societies in rural and urban areas.
4. Greater thrust on Milk Producers' Cooperative Societies.
 Dis-investment from Sick and Weak Cooperatives.
1. Dis-investment from Cooperative Spinning and Sugar Mills merits greater attention
and thrust.
2. Amalgamation and restructuring of Primary Cooperatives whose imbalances are more
than 50%
 Liberalisation of Cooperative Marketing.
1. Direct sale and purchase of agro-chemicals by PACS.

2. Direct sale and purchase of fertilizers by PACS.
3. Greater autonomy to Rural Consumer Cooperatives for supply and distribution of
essential commodities in the villages.
 Strengthening, Modernization and Diversification of Cooperative Credit System
1. Development of Infrastructure including building infrastructure

2. Human Resource Development
3. Greater thrust on Non-Farm Financing, particularly for rural un-employed youth.
4. Greater thrust on Direct Finance to the farmers: Gradual Abolition of B-Component
of short- term agricultural loans.
5. Greater thrust on Insurance Linked loaning to the farmers.
6. Reduction in Administrative and Management Costs of Funds to provide cheaper
credit to farmers.
7. Introduction of ATM–cum-Debit Card
8. Introduction of personal banking on the pattern of private and commercial banks.
9. Efforts towards Merchant Banking & De-mating of Shares.
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10. Efforts to increase the non-fund business.

11. Introduction of Housing Finance Schemes in selective banks.
 Convergence of Services
Development of "Sehkarta Bhawans" at District Level to accommodate all Offices of

the Department and Cooperatives to ensure easy access to facilities for the
members of Cooperatives and general public.
 Training Policy
The Cooperatives of Punjab have paid special consideration on the Training of the staff, for
which they have formed a special Training Policy.
Training Institutions
Regional Institute of Cooperative

Management, Sector-32 Chandigarh.
Punjab Institute of Coop. Training,
Ltd; Chandigarh.
Junior Level Training Cell
(JLTC), Chandigarh.
Agriculture Cooperative Staff
Training Institute,
Jalandhar
Milkfed Training Centre,
Jallandhar
MAJOR APEX COOPERATIVE FEDARATIONS
 COOPERATIVE FINANCING INSTITUTIONS
 PSCB – Punjab State Cooperative Bank Ltd

 PSCADB – Punjab State Cooperative Agricultural Development Bank
 Punjab Urban Co-operative Banks
 COOPERATIVE MARKETING & PROCESSING INSTITUTIONS

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 Milkfed
 Markfed
 Weavco
 Sugarfed
 COOPERATIVE HOUSING DEVELOPMENT SCHEMES
 Housefed
 OTHER MAJOR COOPERATIVE INSTITUTIONS
 Puncofed
 Labourfed
 Fruitfed
 PICT
PUNJAB STATE COOPERATIVE BANK – ORIGIN

The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla
vide registration No. 720 and it is the principle financing institution of the cooperative
movement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where it
moved in 1963 to
2
1
its present building at Chandigarh.
In the cooperative Banking structure, the position of the Punjab State Cooperative
Bank is extremely important as the whole credit system revolves around it. It has 19
branches and 3 extension counter in Chandigarh. There are 20 District Central
Cooperative Banks having 808 branches/extension counters all over Punjab, mostly
in rural areas of the State.
MISSION
Promotion and sustenance of economic interest & providing easy finance, cost effective
and quality banking services to customer & PACs
OBJECTIVES
 To serve as a balancing Centre for Cooperative societies in the State for

Cooperatives Societies in the state of Punjab registered under Cooperative
Societies Act, 1961for the time being in force.
 To promote the economic interest of the member banks and cooperative

Societies in accordance with the cooperative principles and to facilitate the
development and funding of any Cooperative society registered under the
said Act.
 To carry on banking and credit business
VISION
 Enforce the future challenges with grit and take every possible step for
the development of our institution.
 More steps will be taken to provide efficient services.
 Present customers will be retained and other customers will be attracted to

increase market share.
 Bank will attract maximum deposit (especially low cost deposit) to

strengthen its financial resources so as to reduce its dependency upon
NABARD.
22
 Bank while diversifying its loan portfolio, will provide medium term and long term
loans
23
to the maximum extent.
 Every effort will be made to open account of all farmers of the State. Bank will
receive deposit from farmers and meet their credit needs.
 Bank, for the sake of development of state, will strive hard to provide maximum
and better services to customers especially farmers and for this wherever
necessary, every effort will be made to modify the schemes.
 Bank will prepare its business plan every year and by implementing it , goals set
will be achieved
 Bank will professionalize and modernize the business.
PUNJAB STATE COOPERATIVE BANK – BRANCHES
SR.NO NAME OF BRANCH DATE OF OPENING

1. Main branch-34, S.C.O. 175-187,Sector- 10.02.2000
34,CHD
2. Branch Office-8, S.C.O. 130-31, Sector-8C,CHD 01.10.1977
3. Branch Office-10, S.C.O.19, Sector-10,C.H.D 05.01.1994
5. Branch Office-20, S.C.O.34, Sector-20 C, C.H.D 04.04.1994
6. Branch Office-22, S.C.O.2453,Sector- 15.01.1971
22C,C.H.D
7. Branch Office-27, S.C.F.3, Sector-27 D,C.H.D 24.01.1976
8. Branch Office-30, S.C.O.9, Sector-30 D,C.H.D 02.03.1990
10. Branch Office-35, S.C.O.451-452, Sector- 35 06.07.1982
C,
C.H.D
11. Branch Office-36, S.C.O.211, Sector-36 D,C.H.D 13.12.1993
12. Branch Office-37, S.C.O.392, Sector-37 04.05.1979
C,C.H.D
13. Branch Office-38, S.C.O.84, Sector-38 C,C.H.D 04.04.1994
D,C.H.D
D,C.H.D
16. Branch Office-47, S.C.O.60, Sector-47-D,C.H.D 28.12.1985
17. Branch Office – Manimajra, Motor Market, MM, 24.10.1994
C.H.D
23
18. Branch Office- Ramdarbar, IND. Area – II,C.H.D 04.04.1994
19. Branch Office-Sectt. , Punjab Civil 23.05.1972
Secretariat,C.H.D
20. Extension Counter- Mini Sectt. 9 Mini Sectt., 23.05.1972
Sector
24
-9 , C.H.D
PUNJAB STATE CO-OPERATIVE BANK ORGANISATION

STRUCTURE
PROFITS AND LOSSES OF PSCB BRANCHES FOR THREE CONSECUTIVE

YEARS FROM 2010 TO 2012(FIGURES IN LAKHS)
24
300
250
200
PSCB-8
PSCB-10
150 PSCB-17
PSCB-20
PSCB-22
PSCB-27
PSCB-30
PSCB-32
PSCB-34
PSCB-35
100
PSCB-36
PSCB-37
PSCB-38
PSCB-40
PSCB-44
PSCB-47
PSCB-MM
50 PSCB-MS
PSCB-RD
PSCB-SECTT
0
2009-10 2009-11 2009-12
-50
-100
PRODUCTS OFFERED BY BANK
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1. Saving Bank A/c
 A saving bank A/c can be opened with an initial deposit of Rs.500/- without
Cheque Book facility and Rs.1000/- with cheque book facility.
 Eligible categories to open SB A/c –
 Any individual
 Joint Account with others in the form of “either or survivor”, Former or Survivor
 Minors
 Illiterate persons
 Blind person
 Joint Hindu Family
 Cooperative Societies, Clubs, Associations etc.
 Only 30 withdrawals are allowed per half year for a savings bank account
exceeding which service charges will be levied.
 Maximum limit of withdrawal form is Rs. 20,000/-
2. Saving Bank- No frill A/c
 This account can be opened by an individual without furnishing any resident

proof or any proper introduction.
 Minimum amount with which account can be opened is Rs.10/- and the balance
here should not exceed Rs. 50000/- , otherwise, it will become SB A/c.
 No cheque book is allowed to be issued to customers
3. Term Deposit A/c
 The deposit is received by the bank for a specific period which is withdraw able
after expiry of said period.
 Eligible categories to open SB A/c –
 Any individual
 Joint Account with others in the form of “either or survivor”, Former or Survivor
 Minors
 Illiterate persons
 Blind person
 Joint Hindu Family
 Cooperative Societies, Clubs, Associations etc.
26
 Minimum amount to be kept is Rs.1000/-

 The terms and conditions regarding rate of interest and time period are
determined by bank from time to time.
4. Recurring Deposit A/c
 It can be opened with certain initial deposit wherein a Depositor needs to

deposit money by way of monthly installments over a stipulated period.
 The period may be 2, 24, 36, 48, 60 months etc.
 On the expiry of the period, the accumulated amount along with interest is
paid in lumpsum.
 All the parties are eligible for this account
 The rate of interest applicable on recurring deposit will be the rate of
interest applicable on term deposit for that period
 Minimum monthly installment for this account is Rs.100/-.
 Maximum period is 10 years
5. Current A/c
 Initial deposit of Rs.5000/-.

 Eligible parties –
 Sole Proprietorship
 Partnership firm
 Club/Association
 Religious institution
 Government/Semi-Govt
 Local bodies
6. Locker A/c
 Facility of locker is available in four different sizes viz. small, medium, large and
extra large.
 A prospective buyer who wants the locker facility has to have a Saving Bank
account with the bank so that annual Locker Rent can be Debited from that
Account
 Lockers can be hired in individual capacity or jointly with others.
27
TARGET FOR TERM DEPOSITS FOR THR FINANCIAL YEAR APRIL 2013-MARCH 2014
100%
80%
60%
30.03.2014
30.12.2013
30.09.2013
40% 30.06.2013
20%
0%
PSCB PSCB-MM
INTEREST RATES ON DEPOSIT WITH EFFECT FROM 20.12.2012
SR.NO SCHEMES Perio Period up Rate of Rate of

d to interest(Public) interest(Sr.citizen)
from
1. Saving Bank
A/c - - 4.00% 4.00%
2. Saving Bank-
NO frill A/c - - 4% 4%
3. Term Deposit
A/c 7days 14 days 4% 4.50%
4. Term Deposit 30 days
A/c 15days 5.00% 5.50%
5. Term Deposit
A/c 31 days 45 days 6.50% 7.00%
28
6. Term Deposit
A/c 46days 90 days 6.75% 7.25%
7. Term Deposit
A/c 91 days 179 days 7.00% 7.50%
8. Term Deposit
A/c 180 <1 year 7.75% 8.25%
9. Term Deposit
A/c 1year <2years 8.75% 9.25%
10. Recurring
Deposit A/c - - 4.00% 4.00%
11. Current A/c - - 0 0
12. Locker A/c - - 0 0
13. Term Deposit
A/c 2 years 3 years 8.50% 9.00%
14. Term Deposit
A/c 3 years And above 8.50% 9.00%
DIFFERENT TYPES OF LOAN SCHEMES
1. PERSONAL LOAN SCHEME
Beneficiary Employees of Punjab Govt, PSU, boards, Corporations etc.

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

Purpose Credit facility for meeting out Socio Economic needs.
Loan Amount 12 times of gross monthly salary
Margin No margin required
Collateral Security 2 good sureties as per satisfaction of the Bank
29
Installment Rs. 2276.00 for 5 years
3. VEHICLE LOAN SCHEME
Beneficiary Individual, Firm, HUF, Trust, Coop. Societies or a Company

Purpose For the purchase of new vehicle for business and personal
use
Loan Amount Maximum amount up-to Rs. 10.00 Lac or 80% of cost of vehicle
Rate of Interest 11.5%
Margin 20%
Collateral Security 2 good sureties as per the satisfaction of the bank besides
the
hypothecation of the vehicle
4. URBAN HOUSING SCHEME
Beneficiary Individual and Members of Coop. Housing Societies

Purpose Purchase of built up house or flat, construction of new
house,
repairs/ renovation and addition of existing house in urban
areas.
Loan Amount Maximum amount up-to Rs.20.00 Lac.
Margin 25%
Repayment Period Maximum15 years
Collateral Security First mortagage of house Property to be financed by the
bank
5. CASH CREDIT FACILITY TO TRADERS
Beneficiary Individual, Sole Prop, Firm, Coop. Societies or a Company

Purpose For meeting working capital requirement of businss
Loan Amount Maximum amount up-to Rs.25.00 Lac
Margin 25%
Repayment Period Renewable on annual basis
Collateral Security Immovable properties for the value of 150% of the amount
Installment
30
6. TWO WHEELER LOAN TO FARMERS
Beneficiary An agriculturist having land in his own name or his family

member
Purpose For the purpose of new two wheelers
Loan Amount Maximum amount up-to Rs.0.50 Lac
Margin 15%
Collateral Security 2 good sureties as per the satisfaction of bank
Installment Rs.1087.00 for 5 years
7. RURAL HOUSING SCHEME
Beneficiary Individual and member of Coop. Housing societies

Purpose Purchase of built up house, construction of new house, Repairs/
renovation and addition of existing houe in rural areas
Loan Amount
Maximum amount up to Rs. 15.00 lac
Margin 15%
Collateral Security Agricultural land for the value of 100% of the loan amount
besides
the mortgage of house to be financed by bank
8. COOPERATIVE EDUCATIONLOAN SCHEME CHILDREN OF

POOR FARMERS, DALITS, BC ETC
Beneficiary Children of poor farmers, Dalits, BC and other poor sections

Purpose To provide financial assistance to deserving and meritorious
students
for pursuing higher studies in India or abroad
Loan Amount Maximum amount up to Rs. 10.00 lac
Repayment Period The installment will start after completion of course
Maximum 5 years
Collateral Security Mortgage of landed property value of 100% of the loan amount
3
1
9. LOAN AGAINST PROPERTY
Beneficiary Any individual

Purpose To offer instant solutions relating to ocio-economic needs and
business Needs such as children’s higher education, Travel,
daughter’s marriage Medical emergencies etc
Loan Amount Maximum amount up to Rs.25.00 Lac
Collateral Security
10. LOAN SCHEMES FOR EARNEST MONEY
Beneficiary Any individual

Purpose To meet financial requirement towards earnest money deposit to
book
residential plot/built house of flat by Govt. Approved Agency
Loan Amount As per Scheme of the Agency
Rate of Interest As fixed by the bank
Repayment Period On receipt of refund from housing board
Collateral Security No immovable Security is required. Only two post dated Cheque
Required
Installment
11. EDUCATION LOAN
Beneficiary Salaried employees of Coop. banks, Punjab Govt/ Chandigarh

Administration and its boards and Corporation
Purpose To provide financial assistance to deserving and meritorious
students
for pursuing higher studies in India or abroad
Loan Amount Maximum up to Rs. 10.00 Lac
Rate of Interest 9%
Repayment Period The installment will start after completion of course.
Maximum 5 years
3
2
Collateral Security Mortgage of landed property value of 150% of the loan amount.
Installment Rs.2002.00 for 5 years
TARGET FOR LOANS FOR THE FINANCIAL YEAR APRIL 2013-MARCH 2014 (Figure in
Lakhs)
5000
4500
4000
3500
3000
2500 PSCB- MM
PSCB-TOTAL
2000
1500
1000
500
0
CONSUMER LOAN PERSONAL LOAN HOUSING LOAN VEHICLE LOAN EDUCATION LOAN
INTEREST RATES ON LOANS WITH EFFECT FROM 01.07.2011
3
3
SR NO. SCHEMES RATE OF RATE OF

INTERES INTERES
T T
(Sr.citizen)
1. Personal Loan Scheme 15.00% 15.00%
2. Consumer Durable Loan 15.00% 15.00%
3. Vehicle Loan Scheme 13.00% up to 11.00%
Rs.3.00 lac and
13.50
% above that
4. Urban Housing Scheme 10.50% 10.50%
5. Cash credit Facility to 13.00% 13.00%
Traders
6. Two Wheeler Loans to Farmers 11.50% 11.50%
7. Rural Housing Scheme to Farmers 10.00% 10.00%
8. Cooperative Education Loan 7.25% 7.25%
9. Loan against Property 14.00% 14.00%
10. Loan Scheme for earnest money
11. Education Loan 9.00% 9.00%
FINACLE SOFTWARE
Finacle core banking solutions is a comprehensive, integrated, yet modular and agile
business solution, addressing all the core needs of banks, in easy-to-configure modules.
Finacle provides all building blocks of business functionality, enabling users to configure
products and processes flexibly in order to adapt to a dynamic environment. With a
360 degree single source view into customer accounts, banks can empower customers
with relevant information and delight them with the right offerings, presented at the right
time through the right channel.
Finacle is centralized, multi-currency, multi lingual, functionally rich solution that

addresses the retail and corporate banking requirements.
TYPES OF USER GROUPS IN FINACLE
 GENERAL USER – This user group performs the regular banking and front
office functions. Example – Opening of accounts, creation and verification of
financial items.
 SYSTEM OPERATORS – This group is in charge of executing system related
functions such as data backup and data restore.
 DATA BASE ADMINISTRATOR – These are responsible for up keeping and
maintaining database. They prepare various reports for the use of general
3
4
users.
 INSPECTION AUDIT – This group performs routine audit in banks
3
5
These user groups have been divided on the basis of kind of banking operations they
perform. In order to use the software the user groups are required to login through
their unique Id’s and passwords.
FINACLE USES
3
6
PSCB – MANIMAJRA
Pscb- Manimajra was formed in 1994 and is located in centre of Motor Market
Manimajra, near Fun Republic and is easily accessible to all the business and Service
class working in the Manimajra township.
PSCB-MM (ORGANISATION STRUCTURE)
1 Branch Manager, 1 Assistant Manager, 1 Head Cashier, 3 Sub-ordinate staff,

1 Clerk, 1 Security Guard
SERVICE COUNTERS AT PSCB-
MANIMAJRA
 Savings and Current Account’s Counter

 Fixed Deposits
 Loan’s Counter
 Cash Deposit and Withdrawal
 Clearing of Cheques
 Issue of Cheque Books
PSCB-MANIMAJRA, TOTAL NUMBER OF ACCOUNTS
36
7000
6000
5000
4000
DEPOSITS
LOANS
3000
2000
1000
0
2010 2011 2012
PSCB-MANIMAJRA, AVEREAGE CASH IN HAND (FIGURES IN LAKHS)
AVERAGE CASH IN HAND

7
AVERAGE CASH IN HAND

3
0
31/03/2010 31/03/2011 31/03/2012
37
PSCB-MANIMAJRA, AVEREAGE DEPOSITS (FIGURES IN LAKHS)
700
600
500
400
Savings Deposit
Term Deposit
300 Current Deposit
200
100
0
2010 2011 2012
38
PSCB-MANIMAJRA, AVERAGE LOANS AND ADVANCES
AVERAGE LOANS AND ADVANCES

600
500
400
300
AVERAGE LOANS AND ADVANCES
200
100
0
2010 2011 2012
PROJECT DETAILS
In today’s competitive environment where corporates are constantly searching for ways to
keep a float and sustain the market share, they have to find newer and better ways to
satisfy customer needs. To run any organization successfully the management needs to
think always for the betterment of their service and product.
Banking business is now expanding three folds and is facing tough competition. The
Private sector along with the public sector is performing high on scale and ruling the
markets. Adding to the glory, there are foreign banks that have also captured a
commendable market share.
Considering this, the State Cooperative Banks need to take such steps which assist
them in marching ahead in the race and survival of the fittest. This has always been
the motto of Cooperative Banks and in order to achieve this, we are hereby
analyzing the level of satisfaction of PSCB customers and their expectations.
RATIONALE OF STUDY
The Object here is to enhance my knowledge in Banking Industry. The proposed project is
a
39
window giving me a view into gigantic and comprehensive Banking Industry. The PSCB
Schemes are chosen as the Project Topic because the Bank’s Cooperative credit and
deposits business is expanding day by day, and it contributes maximum in the Rural
Banking Industry. Apart from its pertinence and performance, the cooperative banking
measures to solutions and roads to its advancement will be discussed in this project.
OBJECTIVES OF STUDY
 Market trends in the field of Deposits and Credit Financing.
 Market Potential of Punjab State Co-operative Banks.
 To Study some of the Schemes of Punjab State Co-operative Bank in detail and idea of
types of Schemes available.
 To conduct a Comparative Study of PSCB Schemes and other Banks.
 To find out main obstacles while availing different schemes under PSCB.
 Brief idea about the benefits available to Punjab State Co-operative Societies Employees
and customers.
 Recent Development in Market and Punjab State Co-operative Bank in the field of
deposits and credit
NEED OF THE STUDY
 To study the different facilities offered by the Punjab state cooperative bank.
 It provides empirical data for policy makers that are assisted towards formulating
appropriate policy environment for the operations of Punjab State Cooperative
Bank.
The study is also of significance to future researchers as literature review, and

further provoked research in the area of lending and portfolio management.
40
RESEARCH METHODOLOGY
RESEARCH PROBLEM
Measuring the level of satisfaction prevailing among customers and their

expectations in context with PSCB’s schemes.
RESEARCH DESIGN
Research deign is exploratory and descriptive which helps me to explore the factors
influencing the perception of customers.
SAMPLING DESIGN
 SAMPLE SIZE – The sample size is 20 that include local customers that regularly
visit the bank.
 SAMPLING TECHNIQUE – Simple Random Sampling has been followed.
DATA COLLECTION
Both primary and secondary data have been collected for meeting the objectives of
current study.
For the purpose of collection of primary data, personal interview of the respondents was
conducted. An unbiased, undisguised structured questionnaire was prepared which was
administered to respondants for the purpose of getting the information. The questionnaire
consist questions covering both deposits and loan schemes.
For the purpose of secondary data, secondary sources of information like

magazines, newspapers, journals, studies conducted in past, have been referred. The
main sources of secondary data in the study are:
1. Bank’s Detail Books
2. Bank’s website
RESEARCH
INSTRUMENT
4
1
Questionnaires permit us to gather information that cannot be found elsewhere in

any secondary sources like books, newspapers and internet resources. Hence,
questionnaire survey was the best method to collect data for this study.
ANALYSIS TECHNIQUE
The questionnaire is having alternative choices. Analysis has been done with help of
charts, bar graphs, pie charts, likert scaling and co-relation.
SCOPE OF STUDY
The scope of study is limited to customers visiting Punjab State Cooperative Bank, Manimajra.
Present study has been restricted to time period from June 2013 to July 2013.
LITERATURE REVIEW
The Cooperative Sector has been playing a significant role in the area of disbursing
agricultural credit, providing market support to farmers, distribution of agricultural
inputs and imparting cooperative education and training etc. The basic objective of the
Cooperation Division is to design long term and short term strategies for reducing
economic disparities between the downtrodden rural people and the rural rich as well as
regional imbalances including rural and urban differences.
It much is admitted that though co-operative movement in India has not indeed succeeded in
curing all the economic and social evils, yet it has no doubt, led to some beneficial results.
BENEFICIAL RESULTS:
42
1) Spread of banking Habit:

With the progress of co-operation the banking habit is slowly but steadily developing in
rural and urban areas.
2) Social benefit:
Co operation constitutes an admirable means of popular social improvement. It tends to
check the petty quarrels and bitterness of village life and binds together men into
friendly relationship.
3) Growth of self Reliance:

Co operative societies have created the spirit of self –reliance among the village poor. The
individual farmer who is not able to start a new venture alone due to limited farmer who is
not able to start a new venture alone due to limited resources, can have a chance to do the
same through co-operation.
4) Welfare Activities:
Some societies have made liberal contribution towards various charitable and pubic
purposes. It has also provided scholarships and aids for higher studies, research works.
In this way the co-operative societies have promoted welfare activities.
DEFINITION OF LOAN
An arrangement in which a lender gives money or property to a borrower, and the

borrower agrees to return the property or repay the money, usually along with
interest, at some future point(s) in time. Usually, there is a predetermined time for
repaying a loan, and generally the lender has to bear the risk that the borrower may
not repay a loan (though modern markets have developed many ways of managing
this risk).
IMPORTANCE OF LOANS IN TODAY'S LIFE
Everyone needs money at every stage of their life. Sometimes it so happens that they have
keen desire to purchase their favorite stuff but they are incapable to purchase due to
shortage of money. Here lies a question that a person who does not have a good amount
of money
at particular time has no right to see dreams? Is he not authorized to fulfill his desires on
time? Should he stop dreaming? No, because there is solution for these queries. Loans are
available for these purposes only. Loans are provided to people for such critical
circumstances which
43
may occur at anytime. In anyone's life a situation may come when all of sudden you
44
require cash. A moment when you do not want to borrow cash from your relatives. There
may occur any kind of emergency when you need huge amount of money. There are
various types of loans like home loans, personal loans, student loan, business loan etc.
You can take any type of loan you need. For each and every kind of need, loans are
available. Home loans are available for general home purposes like buying a luxurious
car, going for a holiday trip, educational purpose, home improvement etc. Many of your
desires can be fulfilled by this loan. Personal loans are available for personal requirements
like wedding ceremony, purchasing a home etc. Student loan as it itself suggest is that it is
provided basically to students for higher education. Students who want to study more
but cannot afford can get apply for such loans and continue their studies. To start a new
business you require a huge amount of money. A person willing to setup a business may
not have that much cash which can meet out his requirements. For this business loans
are available. You can get business loans to start and well establish a new business in
market. Whatever may be the kind of loan, all have full fledged facilities. All kind of
loans have their own importance. Above all, need of money explains the importance of
loan. Appling for loan is very easy. Apply for that loan whichever is needed to you. But
before applying you should go through different lender's policies and apply for that lender
which is beneficial for you. Different lenders have different policies. If you get loan for
long term with low rate of interest then it is beneficial for you. Due to competition,
lenders are trying their best to attract people by providing different schemes which in
turn is good for people. And cooperative bank is also one of them.
WHAT IS A PROCEDURE?
A procedure is a specified series of actions or operations which have to be executed in the

same manner in order to always obtain the same result under the same circumstances (for
example, emergency procedures). Less precisely speaking, this word can indicate a
sequence of tasks, steps, decisions, calculations and processes, that when undertaken in
the sequence laid down produces the described result, product or outcome. A procedure
usually induces a change.
IMPORTANCE OF PROCEDURE MANUALS
One of the worst case scenarios of office problems involves a very important job that
cannot be completed by the support of staff because of a lack of information on
procedures. Nearly every company prepares job descriptions, but most neglect efficient,
exact and up-to-date procedures manuals. A job description entails. A procedures
manual gives a detailed and informative guide to how the job is done and enables
someone to do the job in an
emergency. Henrik Ibsen once said, "A community is like a ship; everyone ought to be
prepared to take the helm." Likewise, an office - people should be able to pitch in and get
the job done. This is possible only if they are provided with the proper instructions and
materials. Every job entails a certain sequence of paperwork, routine tasks and contacts.
44
For example, someone might be in charge of travel arrangements. A job description would
state that the job entails
45
making both domestic and foreign travel arrangements and processing invoices for
this. A procedures manual would give the names and phone numbers of various travel
agencies used for the firm, the best people to contact, how to process the invoices by
explaining the forms and what department handles them. If the person in charge of travel
arrangements is out of the office, someone else can open the procedures manual and
follow the directions to do the job.
Managers should see that every support staff employee in his or her department
prepares a procedures manual for each job. At the beginning, the manager should
meet with each employee individually and discuss the preparation of the manual so that
its function is fully understood. An outline of what is expected should be prepared and
given to each employee to follow.
1. What - A description of the task.
2. When - How often it is done.
3. Who - What people are involved in completing the task.
4. How To - Sequence of steps to complete the job. Phone numbers, addresses, chain
of command, forms or materials needed (and where they are kept), potential problems
and solutions based on experience. If office machines are involved (computers or word
processors), a description of how they are operated for this particular job
(i.e. if disks are used, where information is stored, how to retrieve the information,
electronic mail, etc.). If a computer sequence is followed to complete forms or reports
for the task, copies of each screen used should be made and placed in the procedures
manual in the proper order. A "dummy" of each page should be filled out so that it can be
easily followed.
ELIGIBILITY CRITERIA FOR AVAILING LOANS IN PUNJAB STATE COOPERATIVE BANK
Class Salaried Employees of Punjab Govt. PSUs, Boards, Corporations, Public

Sector Banks, Aided Schools/colleges, Universities, General Insurance
Companies, District Central Cooperative Banks, Cooperative Organizations
in
the State of Punjab.
Age Minimum 21 years and maximum 57 years.
Service Tenure 1 Year after the confirmation/ regularization.
Loan Limit 15 Months Gross Salary or Rs.4.00 Lac (Whichever is less).
Rate of Interest As decided by the Bank from time to time with quarterly rests.
45
Payment Of Loan is repayable in equated monthly installments in the form of post-
Loan dated
46
cheques. The 1st installment will start after one month.

Security No collateral security is required, only two guarantors known to the Bank
(of
the same institution as of the borrower).
General No employees will be given this loan facility who has defaulted in
repayment of loan in any other scheme.
DOCUMENTS REQUIRED TO GET A

LOAN PRE-SANCTION
 Application Form
 Latest Photographs
 Bank account statements
 Proof of Income
 Employer certificate of identity Proof of continuity of current Job.
 Proof of Residence
NOMINAL MEMBERSHIP NUMBER

POST SANCTION
 Demand Pronote
 Agreement (NJ Stamp Paper for Rs.15/-)
 Signature verification (By Branch Manager)
 Post Dated Cheques
 Two guarantors (NJ Stamp Paper for Rs.15 in each case)
DEFINATION OF DEPOSITS
In deposit terminology, the term- Bank Deposit refers to an amount of money in cash or
check form or sent via wire transfer that is placed into a bank account. The target
account for the Bank deposit can be any kind of account that accepts deposits.
Bank Deposit Example:
For example, a Bank Deposit is generally made when opening an account or in the
course of routine business or personal transactions that involve placing funds with the bank
for future use.
Bank deposits can be made in a number of different ways. The most direct way is to walk
into a bank or a bank branch in which you hold an account. You are then usually required
46
to fill in a
47
Bank Deposit slip with the particulars of your account and the amount of money you
wish to deposit. In addition, Bank Deposits can be made via wire transfer, as well as
through a direct deposit plan from employers in many cases.
SCHEMES OFFERED BY PUNJAB STATE COOPERATIVE BANK (MANIMAJRA)

Savings Account
Current Account
Long Term Deposit Account
Fixed Deposit Account
Recurring Deposit Account
No Frill Account
DOCUMENTS REQUIRED FOR OPENING DEPOSIT ACCOUNT IN PSCB

Residence Proof
PAN Card
2 Latest Photographs
One Identity Proof.
49
ANALYSIS AND INTERPRETATION
DEMOGRAPHIC ANALYSIS BASED ON GENDER, MONTHLY INCOME AND

OCCUPATION
12
GENDER CLASSIFICATION
10
4
Gender Classification
0
MALE FEMALE FIRMS
ANALYSIS AND INTERPRETATION:
Out of the 20 respondants, 15 are Individuals holding self operated Accounts.

5 accounts are Jointly operated by owners of firm. These are usually
customers of Current Accounts.
Though not included in Sample but it was observed that PSCB schemes are open
to all categories of persons viz.
 Individual
 Joint Holders
 Minors
50
3 FEMALE
MALE
FIRMS
0
Nil Upto 20000 20000-30000 30000-40000 Above 40000
Out of the Female Group, 2 respondants had nil income because one of them
is a housewife and the other is student.
The male respondants are maximum in high income group that is between
Rs.30,000 to 40,000.
Maximum firms fall in high income group.
PSCB deposit schemes are also available to those who have poor or nil income.
The primary purpose of this class people is to save whatever money they can
afford to and earn good amount of interests on that.
50
OCCUPATION
12
10
6 Business
Employement
0
Loans Borrowers Depositors
PSCB Loan Schemes are only available to Salaried employees of Punjab

Government, PSUs, Boards Corporations, Universities, Public Sector Banks,
Premier Medical Institutes, Punjab State Cooperative Bank, District Central
Cooperative Banks and other co-operative organizations in state of Punjab.
Hence all the respondants who are also customers of Credit schemes are
salaried employees and are working in the above mentioned institutes
only.
On the other hand, there is no such condition in Deposit schemes.
Out of 10 respondants of deposits schemes, 50% are business men and left
50% are employees with various public and private institutions.
5
1
ANALYSIS OF KNOWLEDGE AND AWARENESS AMONG CUSTOMERS
TYPES OF ACCOUNTS
5
Personal Loan
Consumer loan
4 Savings Account
Current Account
0
Loans Deposits
 In loan Schemes, personal loan and consumer loan are more prevalent in
Manimajra branch.
 In Deposits, customers of two schemes have been covered that is Savings Account
and Current Account.
 Apart from above mentioned deposit schemes- Recurring Deposits , Savings – No
frill and Fixed Deposits accounts are also available with the bank.
52
HOW DO CUSTOMERS COME TO KNOW ABOUT THE SCHEMES AND

SERVICES OF THIS BANK?
NO. OF CUSTOMERS
Personal Visit
Advertisement
Word Of Mouth
Other
 Most of Customers come to know about the bank by visiting them personally.
 Cooperative Banks are lacking in the field of marketing and have no as such
established marketing infrastructure.
 It does not pay much heed to advertisement.
 The employees of bank are very co-operative. They explain the various
schemes to customers and their explanation is conducive to the need of
customers.
 Word of mouth is also a source of information.
53
WHAT WAS THE PURPOSE BEHIND AVAILMENT OF SCHEMES?
No. Of Customers
12
10
6
No. Of Customers
0
Purchase of Property Education of children Savings
 The sole purpose behind investments in Deposits is Savings.

 Personal Loans have been taken for personal reasons such as education of
children, their marriage etc.
 However the trend shows that there is huge investment in property out of the
loan amount. The PSCB customers consider this investment to be safe and
reliable.
 Purchase of consumer goods is a special purpose loan scheme available.
 10% of customers from the sample have taken benefit from this scheme.
54
WHAT ARE THE REASONS FOR TRANSACTING WITH PSCB?
3 Loans
Deposits
0
Faster Processing Interest Rates Brand Image Margin Amount Others
 Around 50% of customers from both deposits and loan schemes believe that bank
has a very fast processing rate.
 Following with the conclusion that Bank’s customer dealing is quiet effective
and efficient.
 30% got attracted with the Interest rates offered by bank.
 It was observed that the interest rate of Personal Loan scheme was comparatively
less than some private banks.
 The bank as such has no Brand image like other public and private banks in the
market, but the bank is famous among the rural folks and is rightly called as the
“SAHKARI BANK”.
55
 The bank does offer some margin amount in its schemes which again works in
favor of the bank and customers.
COR-RELATION ANALYSIS
Correlation analysis attempts to determine the degree and direction of relationship between
the two variables. If two or more variables vary in sympathy so that the movements in one
variable tend to be accompanied by corresponding movement in the other, then they
are said to be correlated.
Framework for the projected study is set as follows:
INDEPENDENT VARIABLES
56
 EMPLOYEE BEHAVIOR: Employees are key stakeholders in the value delivery

and brand/supplier success. It is believed that employee commitment and advocacy
behavior have a direct and profound relationship with the customer loyalty and
corporate sales and profitability.
 SERVICE QUALITY: The banks need to understand that the customers will be loyal
only if they receive greater value then competitors. This variable is widely used to
evaluate the performance of employees.
 RATE OF INTERESTS: An interest rate is the rate at which interest is paid by
borrowers for the use of money that they borrow from a lender.
DEPENDENT VARIABLE
 CUSTOMER SATISFACTION: Customer satisfaction, a term frequently used in

marketing, is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals.
RESEARCH QUESTIONS
Q1. Does service quality effect customer satisfaction in the context of PSCB?
Q2. Does employee behavior affect the satisfaction level?
Q3. Do the interest rates motivate customers to transact with PSCB?
In the questionnaire, the respondants were asked to score the variables out of five.
These scores were taken to be the quantitative values of variables for the purpose of
calculation of correlation coefficient.
According to the Spearman correlation coefficient the relation between the

customer satisfaction and other three variables is 0.24 which shows moderate
degree of positive correlation.
57
EXPECTATIONS OF CUSTOMERS
ANKING
No Of Customers
YES
NO
CANT SAY
4 12
58
60% of customers believe that the bank needs now to activate internet banking.
20% say they are comfortable in manual transactions
20% are not aware of the concept.
The customers of PSCB are not regular users of e- banking, and it might become
difficult for few non users of technology to cope up with the change if it is
introduced.
APPRECIATION FOR BEING A GOOD CUSTOMER
No of Customers
YES
NO
59
The bank does not provide any special facilities to its regular visitors and
loyal customers.
However, this practice can prove to be fatal in wake of the uprising competition.
COMPARISON OF PROFITS OF PSCB- MANIMAJRA, HEAD OFFICE AND

SUM TOTAL OF ALL BRANCHES (FIGURES IN LAKHS)
60
900
800
700
600
500
MM Branch
400 Head Office
Pscb total
300
200
100
0
2009-10 2010-11 2011-12
-100
The Manimajra branch is suffering losses from past three years.

This condition has mainly occurred because of lack of updated products in the
branch.
The branch has limited schemes.
The market in which branch is located, is not that much advanced and
established. Therefore, its local customers do not bring huge deposits on
daily basis.
Being a co-operative bank, it is still not providing farm loans, as most of the part
of agricultural farming is delegated to another subsidiary bank of Cooperative
Societies.
LIMITATIONS
The findings of the study are based on the expressed opinion of the respondents.
6
1
Some respondents were hesitant in providing complete information.
Difficulty was faced in getting the responses to various questions because the
customers could not devote enough time.
There was communication problem also as some of the customers belong to rural
class so they could not understand the questionnaire easily.
This study only relates to one organization, so conclusions drawn may not be
finding its utility in all the other banks.
Even the employees of the bank were hesitated to give the complete and accurate
data.
CONCLUSION
The project was undertaken to analyze and measure the level of satisfaction prevailing
among customers and the expectations in context with Punjab State Co-operative Bank’s
schemes.
The study concludes that the dealing of bank with the customers is quite effective and
efficient which is the most important element of marketing in today’s scenario.
As per the study it was observed that the bank has very and efficient processing system in
relation to its both loan and deposit schemes.
Most of the customers get attracted with the PSCB as the interest rates offered by the bank is
comparatively more in relation to other public and private banks.
Also the bank offers some margin amount in its schemes which again works in favor of
customers as well as the bank.
As such the bank has no brand image like other public and private banks in the market, but the
PSCB is famous among the rural folks and is rightly called as “SAHAKARI BANK”.
62
RECOMMENDATIONS
63
 In today’s world most of the banks provides ATM facility. So to meet the
competition in the market Punjab State Co-operative Bank should also provide
the ATM facility.
Bank should refocus on its interest rate as responded by people. Periodic Review of
the interest rate should be done.
There should be computerized system in the bank as it will reduce the time
wastage of manual work and will lead to the better performance of the bank.
Training of the employees should be there to meet the needs of the time.
More mass awareness campaigns should be organized in order to enhance market

share of bank. So bank should concentrate on its advertisement itself.
Rate of interest should be re viewed periodically.
If the interest rate has been reduced or has become non- favorable to the
customer, the bank should inform him/her.
There should be complaint boxes installed in the banks that should be opened
weekly and proper redressal of complaints should done.
Maximum practical exposure should be provided to the job trainees so that they
may handle the various enquiries of customer efficiency.
Communication gap within the bank and with the head office should be reduced.
Better infrastructure facilities should be provided to the Manimajra branch of

PSCB.
Banks are advised to have proper internal control measures for monitoring its
functions and transactions.
PSCB should open new branches in the rural and urban areas to achieve the
targets.
64
BIBLIOGRAPHY
 Banking & Insurance – R.K.Sharma & Shashi.K.Gupta
 Auditor’s Report, Balance Sheet & Profit/loss account Of PSCB as

on 31.03.2010

on 31.03.2011

on 31.03.2012
 PSCB – Directory
 PSCB – Loan Schemes
 http://www.punjabcooperation.gov.in/html/aboutus.html
 http://pscb.in/welcome.htm
 http://www.sify.com/finance/compare_interest_rates/
65
66

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A

Dasmesh Girls College Chak Allah Baksh, Mukerian

Accredited with “A” Grade by NAAC

Principal Project Guide

I am falling short of words to express my sincere thanks to the management of “Punjab

I am highly indebted to my faculty members of School of Management Studies, Dasmesh Girls

SR.NO TOPIC PAGE NO.

SRNO. TOPIC PAGE NO.

1. Banking Structure in India 7

BANKING STRUCTURE IN INDIA

Foreign Banks started to arrive, particularly in Calcutta, in the 1860s. The

A second dose of nationalization of 6 more commercial banks followed in 1980. The

THERE ARE TWO TYPES OF COMMERCIAL BANKS, PUBLIC SECTOR AND

 Public Sector Banks:

 Private sector banks:

An investment bank is a financial institution that assists individuals, corporations and

(PUNJAB COOPERATION – AT A GLANCE)

Cooperative movement is quite well established in India. The first legislation on

IMPORTANCE OF COOPERATIVE BANKS IN INDIA

Development through Cooperatives was a dream cherished by freedom fighters of India

The performance of Cooperative Movement in Punjab is very impressive.

TEN COMMANDENTS OF PUNJAB GOVERNMENT (DEPARTMENT OF

 Support and sustain agriculture as a multi-functional occupation in the states.

A Cooperative is a system voluntarily to meet their common economic, social and

PRINCIPLE FEATURES OF CO-OPERATIVE BANKS

 Voluntary and Open Membership

v. Deposits or debenture issues

STRUCTURE OF COOPERATIVE BANKING

SCBs SLDBs UCBs

ABBREVIATIONS USED IN CHART:

TYPES OF COOPERATIVE BANKS

1) STATE COOPERATIVE BANKS(SCBs)

POLICY AND PLANNING

 Structural and Administrative Reforms

1. Punjab Cooperative Societies Act, 1961. (Proposed amendment bill 2007).

knowledge and skills.

 Promotion of New Generation Self-Reliant Cooperatives

1. Development of Women Cooperatives and self-help groups.

 Dis-investment from Sick and Weak Cooperatives.

1. Direct sale and purchase of agro-chemicals by PACS.

 Strengthening, Modernization and Diversification of Cooperative Credit System

1. Development of Infrastructure including building infrastructure

10. Efforts to increase the non-fund business.

Development of "Sehkarta Bhawans" at District Level to accommodate all Offices of

Regional Institute of Cooperative

MAJOR APEX COOPERATIVE FEDARATIONS

 COOPERATIVE FINANCING INSTITUTIONS

 PSCB – Punjab State Cooperative Bank Ltd

 COOPERATIVE MARKETING & PROCESSING INSTITUTIONS

 COOPERATIVE HOUSING DEVELOPMENT SCHEMES

 OTHER MAJOR COOPERATIVE INSTITUTIONS

PUNJAB STATE COOPERATIVE BANK – ORIGIN

its present building at Chandigarh.

 To serve as a balancing Centre for Cooperative societies in the State for

 To promote the economic interest of the member banks and cooperative

 To carry on banking and credit business

 More steps will be taken to provide efficient services.

 Present customers will be retained and other customers will be attracted to

 Bank will attract maximum deposit (especially low cost deposit) to

to the maximum extent.

 Bank will professionalize and modernize the business.

PUNJAB STATE COOPERATIVE BANK – BRANCHES