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Marathwada Shikshan Prasarak Mandal’s

Deogiri Institute of Engineering and Management Studies,


Inplant Training Report



Submitted by

Mr. Angad Shivajirao Jogdand

Specialization: Finance

Roll no. (721025)

MBA III semester


In partial fulfillment of the completion for MBA course of

Dr.Babasaheb Ambedkar Marathwada University, Aurangabad


I, Angad Shivajirao Jogdand thank to Mr. Mukund Gajmal.

(Asst.Manager) His expertise was valuable during each step of
the in-plant Training from narrowing the scope of the research
to theoretical development and analysis.

I also thank Prof. Bharat Pawar (Project Guide), Prof. Rupesh

Rebba (HOD) and Dr. Ulhas Shiurkar (Director), Deogiri
Institute of Engineering and Management Studies, Aurangabad
for encouraging and guiding me through In-plant Training.

Mr. Angad Shivajirao Jogdand

Roll no. 721025
MBA III semester
Batch 2017-2019

This is to certify that, Angad Shivajirao Jogdand, a student

of Deogiri Institute of Engineering & Management Studies,
Aurangabad. Batch 2017-2019, has duly completed his Inplant
PATHRI, Aurangabad (MANB551) and has submitted
satisfactory report to Dr. Babasaheb Ambedkar Marathwada
University, Aurangabad, in partial fulfillment of Master of
Business Administration course.

We wish him all the best for future Endeavor.

Prof. Bharat Pawar Prof. Rupesh Rebba Dr. Ulhas Shiurkar

Project Guide H.O.D Director

I, Angad Shivajirao Jogdand hereby declare that I have

completed the In-plant Training at VALMIKI URBAN CO-
OPERATIVE BANK LTD PATHRI and have submitted the
report for the same.

It has not been previously submitted for the basis of

the award of any degree or other similar titles of this or
any other examining body or university.

Place: - Aurangabad Name:- Angad Shivajirao Jogdand

Roll No. 721025
Sem.Batch 2017-
Certificate from the Company

1 Introduction of Report 1

1.1 Need 2

1.2 Scope 3

1.3 Objective 4
Profile of the Bank (Introduction,History,

2.1 Vision 8

2.2 Mission 8

2.4 Achievements of the company 8

3 Product Profile 9

4 Study of the Departments 12

4.1 Finance 13

4.2 Operation 20

4.3 Marketing 28

4.4 HR 35

5 SWOT Analysis 37

6 Findings 38

8 Conclusion 39

8 Bibliography 40

The MBA course offered by the DR. Babasaheb Ambedkar Marathwada University,
Aurangabad, Has provide opportunities to do a practical work through in MBA students to undertake
in- plant training for a period 45 days. This in-plant training shows us how the different departments
in an organization work and wins as a single unit. As the purpose of acquiring practical knowledge of
the working and functioning of industrial plant.

Training and learning in a class room will make an individual knowledge in theory of the
various functions of industrial plant. But a person comes out from class room and visits various
industries, in this situation he can learn more from them. In such situation real experience in the
practical functioning and operation of a company can be of very much use to the students of
management studies.

This project report shows that how much the trainees have learned or experienced the
organizational environment structure, policy, situation, etc. I am glad that VALMIKI URBAN CO-
OPERATIVE BANK LTD gave me that opportunity to understand the business environment or
practices. I had done my Inplant training in Sai Road Pathri of VALMIKI URBAN CO-
OPERATIVE BANK LTD PATHRI which is related to banking services and day to day operations.
I learned about strengths and weaknesses of financial status of the bank and how bank provide
different services to their customers and also recover the debt.

1.1 Need

 Inplant training gives student their first exposure for working in a bank and also a flavor of
functional area they are interested in pursuing later in their career.

 Inplant training can themselves be converted into job offers for a good performer and if the
internship is aligned to the student’s functional interest then the possibility of getting a job
offer from a bank also increases.

 Experience of working in a real life situation gives an added advantage, as it prepares the
person to face the future situations and get a chance to enhance their skills and apply their
knowledge in actual circumstances.

 For any MBA student, learning is a combination of theory and practice which is an invaluable

 This Inplant training is a stepping stone which will groom me for my future in the corporate

 To enable the students to imply management concepts and think about the banking problems.

1.2 Scope

 It helps to obtain knowledge of the banking structure and operations.

 This study will expand the scope of available career opportunities in career domain of

 Practical problems and working conditions in banking sector can be understood by doing this

 It helps to bridge the gap between academic theory and practical applications and allow
opportunities to explore a career in any field.

 It helps to learn the implementation of theoretical knowledge in practical work.

1.3 Objective

 To understand the functions related to Co-Operative banking sector.

 To gain the knowledge about banking sector.

 To study the different types of services and products provided by bank.

 Convert internship into pre-placement offer.

 To Study of different working of department.


VUCOB was founded by a great visionary Mr. Anil Sakharamji Nakhate on 02 September
1998. the same was brought under Multi State Co-operative Societies Act 2002, upon opening
branches outside the State of Maharashtra. Bank is designated a Scheduled Bank under Schedule
II of the R.B.I Act. The bank is now a Multi-State Bank having its area of operation in the states
of Maharashtra.

Today the bank has 4 branches spread over in these states. Over the years, the bank has
consistently shown robust growth both quantitatively and qualitatively. The bank has not only
grown in term of size of deposits and advances, but has multiplied its net worth making the
institution financially sound and fundamentally strong. The Board of Directors of bank consists of
well qualified professionals. Being driven by cooperative principles, the management lays
emphasis on profit but with focus on welfare of our stakeholders. The business philosophy is
based on four core values i.e. pillars of service excellence, customer focus, product renovation
and resourceful people.

 Branches in Maharashtra : Pathri, Selu, Parbhani, Gangakhed.

 Bank has centralized processing cell at Pathri.
 ITES server farm at Selu.

Organisation Structure: (2016-17 to 2021-22)

Chairman: Mr. Anil Nakhate.

Vice-Chairman: Mr. Manohar Ghandge.

Managing Director: Mr. B. U. Bidwe

List of Directors:
Table 2.1


1. Mr. Keshav Bagal

2. Ms. Devidas Shinde

3. Mr. Vinayak Chilwant

4. Mr. Radheshyam Chavan

5. Mr. Tukaramji Dukare

6. Mr. Satish Hule

7. Mr. Sudhakar Devane

8. Mr. Manohar Waghmare

9. Mrs. Bhavanatai Nakhate

10. Mr. Ashok Giram


Development and staff

Vishawnath Nakhate Sitaram Gundalva


Mukund Gajmal Shubham Fasate

Ankush Nakhte Vijay Wagh

Suresh Nakhate


Anil Nakhate Sudhakar Pawar

Manohar Ghandge


Satish Hule Sudhakar Pawar

Manohar Ghandge Mukund Gajmal


Mukund Gajmal Shubham Fasate

Ankush Nakhte Vijay Wagh

Suresh Nakhate
2.1 Vision

A premier co-operative bank.

2.2 Mission

 We will make our Customers, Shareholders and Community at large very proud.
 We will always strive to provide our customers the best products and services that lead to
their progress and prosperity.
 We shall act with high level of integrity, achieving the set goals with active involvement,
devotion and commitment of our employees.

2.3 Achievements

 On 02nd September 1998 incorporation of VUCOB co-op Bank, Pathri.

 In 2000 it was converted into urban co-op bank
 Tie up with insurance Companies like “Max-Life Insurance” for life Insurance
 Conferred with various awards by National Securities Depositories Ltd.(NSDL):
 st
Top Performer in DEMAT Accounts opened-1 Position
 st
Best Performance in account Growth Rate (Rising DP)-1 Position

Bank Profile:

 Name: Valmiki Urban Co-op Bank ltd.

 Branch Pathri,TQ Pathri Dist Parbhani
 Company type: Co-Operative bank

 Website:

Products offered by Bank:

1. Saving Account: Saving account comes with a host of convenient features and banking
channels to transact through.

Salient features of the scheme:

Minimum opening balance Rs.500/- without cheque book. Free cheque book of 60 leaves, in
case of minimum operating balance Rs.1000/-. Free ATM card facility. Desk Drawing facility.
Free account statement facility. Fund transfer facility through RTGS/NEFT anywhere in India.
Any branch banking facility. Demat facility. Safe deposit locker facility. Interest @ 4% p.a. on
daily balance products.

2. Current account:
Salient features of the scheme:
Minimum opening balance Rs.3000/-. Cheque book at nominal price. Free ATM card facility
for Proprietor(s). Desk Drawing Facility. Free account statement facility. Fund transfer facility
through RTGS/NEFT anywhere in India. Any branch banking facility. Demat facility. Safe
deposit locker facility.

3. Term deposit:
Salient features of the scheme:
Minimum operating balance Rs.1000/-. Minimum period of 15 days, maximum up to 364
days. Interest paid along with principal on maturity. Can avail loan up to 90% of accumulated
deposits. Interest as per card rates.

4. Loan
A) Retail loan:
Features and benefits:
Interest charged on daily reducing basis. No pre-payment/ foreclosure charges for housing
loans. Attractive interest rate. Simplified Documentation. Easy Repayment options- ECS/
postdated cheque /Standing Instructions. Low processing fees. Speedy loan approval. Offers
insurance cover for all assets at attractive premium.

B) Corporate finance:
Features and Benefits:
Interest charged on daily product basis at monthly rest. Simple documentation. Low
processing fees. Speedy approval. All services under one roof.
Services offered by bank:

1) Any Branch
Banking Benefits:
 Convenience at its best: Deposit cash/Cheque at any branch across the counter during
business hour.
 Instant credit: credited to respective account on the same day.
 Transfer of fund: transfer funds from your one branch account to another.
 Statement of account: get a mini-statement for your last 5 transactions.

2) Quick ATM
 Convenience: avail 24 hour service from any ATM.
 Privacy: Enjoy a sense of privacy while transacting with ATM.
 Safe Identity: Cardholder is identified with pin number so no signature required.
 Security: instant cash available, in case of emergency.

3) Ancillary Business
Bank offers various value added services like Demat, desk Drawing, life insurance/Non-Life
Insurance, Forex, Stamp Franking, Safe deposit Locker, I-connect.

4) Remittance
A. Real Time gross Settlement System(RTGS)
RTGS is more robust payment system enabling inter-bank fund transfer of above Rs.1
lac. Transfer of funds is done by simple instructions to bank to transfer funds from
your account to another bank account whereby settlement is done continuously.

B. National Electronic Fund Transfer(NEFT)

Presently all branches are CBS enabled to offer NEFT facility to our customers. This
system facilitates an efficient, secure, economical, reliable and expeditious system to
transfer fund below Rs.1 lac. and clearing throughout India.

5) SMS banking:
Certain transaction SMS are send to customers regarding
 Account Transaction: Intimation of any transactions in account of or in excess of
 Inward/Outward cheque return: intimation of Return of clearing Instrument.
 Term Deposit Matured: intimation of deposit maturity.
6) Internet banking
 Internet banking is the most convenient way to bank- anytime, any place, at your
 One can access Online VUCOB bank Account from any computer that has
connectivity to the Internet.

Departments in Bank

Operation Department

Finance Department

Marketing Department

Loan Department

HR department

The activities expected from a finance department cover a wide range from basic book keeping to
providing information to assisting managers in making strategic decisions. The finance
department is also responsible for management of the organization’s cash flow and ensuring there
are enough funds available to meet the day-to-day payments. This area also encompasses the
credit and collections policies for the company’s customers, to ensure the organization is paid on
time. In most organizations there will be some form of forecast prepared on a regular basis to
systematically calculate the ongoing cash needs. It is also responsible for advising and sourcing
longer term financing. Financing may be obtained though bank or private lender debt or, in
applicable firms, share issues to private investors. The finance department can then start to
contribute to the management and improvement of the operations by measuring and reporting
regularly on key numbers crucial to the success of the organization. The finance department will
work with managers to prepare the organization’s budgets and forecasts, and to report back on the
progress against these throughout the year. This information can be used to plan staffing levels,
asset purchases and expansions and cash needs, before they become necessary.

Key Performance Highlights: (Rs. In Cr.)

Particulars 2016-17

Deposits 7,095

% Growth 18

Advances 5,128

% Growth 13

Business Mix 12,223

% Growth 16

Operating Profit 102.76

Net Profit 46.55

Gross NPA 243.98

% of Advances 3.80

Net NPA 147.91

% of Net advances 2.19

Table 4.2.1

Financial Year Deposit

2014-15 5,335 cr.

2015-16 6,038 cr.

2016-17 7,095 cr.

Table 4.2.2




Rs. in Cr.





2014-15 2015-16 2016-17
Deposits 5335 6038 7095

Chart 4.2.1


Deposits witnessed a growth of 18% i.e. Rs.1,057 Cr. In F.Y.2016-17 as against 13% i.e.
Rs.703 Cr. in the previous year. The growth of Deposits is more than the overall deposit
growth in the banking industry of 12%.
Business Mix:

Financial year Business Mix

2014-15 8,972 cr.

2015-16 10,570 cr.

2016-17 12,223 cr.

Table 4.2.3

Business Mix



Rs. in Cr.




2014-15 2015-16 2016-17
Business Mix 8972 10570 12223

Chart 4.2.2


The mix of a business's different types of activities or customers includes business mix. The
Business mix has grown by 16% i.e. Rs.1653cr. in 2016-17 as against 18%i.e. Rs.1598cr. in the
previous year. The bank has crossed Rs. 12000cr. mark in Business Mix. Business per employees
has gone up from Rs.9.02cr. to Rs.10.04Cr.

Financial Year Operating Profit Net Profit

2014-15 78.22 cr. 40.13 cr.

2015-16 88.06 cr. 45.67 cr.

2016-17 102.76 cr. 46.55 cr.

Table 4.2.4



Rs. in Cr.




2014-15 2015-16 2016-17
Operating Profit 78.22 88.06 102.76
Net Profit 40.13 45.67 46.55

Chart 4.2.3


Operation Profit was Rs.78.22cr in F.Y.2014-15. It increased to Rs.88.06cr. in F.Y.2015-16 and to

Rs.102.76cr in F.Y.2016-17. Net profit after tax and provisions increased from Rs.40.13cr in F.Y.
2014-15 to Rs.45.67cr. in F.Y.2015-16 and to F.Y.2016-17.

The Bank's Capital adequacy ratio stood at a level of 12.32%. The Bank’s Risk Weighted Assets
at the end of March, 2017 amounted to Rs. 4,751 Cr. against which Capital Funds stood at
Rs.585.46 Cr. The Bank raised capital funds through available resources viz. Long Term
Subordinated Deposits (LTD) and Perpetual Non-Cumulative Preference Shares (PNCPS).
Through the LTD issue, the Bank could garner Rs.159.72 Cr. and through PNCPS, Rs.9.29 Cr.
The Bank will continue to explore the possibility of raising capital funds through various modes
so as to maintain the required level of CRAR.


The Bank’s deposits stood at Rs. 7,095 Cr. as on March 31, 2017 registering a growth of 18%
with an accretion of Rs. 1,057 Cr. over the previous year.

(Rs. In Cr.)

Type March 31,2017 % Growth

Saving 1353 19.07

Current 404 5.69

Fixed 5338 75.24

Total 7095 100

Table 4.2.5

The deposit growth of 18% is above the industry growth of 12%. During the year there was a
general decline in rate of interest on deposits which has restricted the growth in term deposits.
However during demonetization, there was an increase in deposits. This has also helped the Bank
to improve the CASA by 23.15% to 24.75%, an increase of 1.60%. The Bank realizes the
importance of growth in CASA for overall improvement in profitability. Last year overall 33% (as
against 30% target) of the incremental deposits were CASA deposits.


The Bank’s Gross NPA and Net NPA stood at 4.76% and 2.94% respectively as at the end of
March 2017. Asset quality is one of the most critical areas in determining the overall condition of
a bank. The Bank endeavors to maintain a good asset quality. Whereas the Indian Banking
Industry is facing serious challenge to maintain the asset quality, this Bank has done reasonably
well in controlling the slippages of accounts into NPAs as well as in the recovery of the old NPA
accounts. Though there is increase in amount of Gross NPAs from Rs.172 Cr. to Rs.243.98 Cr.,
these advances are substantially secured by tangible securities and appropriate steps for recovery
have been initiated for reduction in the same. This year, the Bank has adopted a different approach
for recovery and the new NPA accounts are monitored at Zones and branch level and the
Recovery dept. has been entrusted with recovery of old NPA accounts. This two-way strategy of
curtailing the addition, and reduction in old accounts will lead to the desired results and put a
further check on rise in NPAs. Keeping this in mind, as an abundant precaution, requisite
provisions by way of Bad and Doubtful Debt Reserve (BDDR) and Bad and Doubtful Debts Fund
(BDDF) are made towards NPAs in accordance with the guidelines issued by RBI. The Bank has
created additional BDDF of Rs.5.00 Cr. during F.Y. 2016-17 (P.Y. Rs. 3.25 Cr.) by way of
appropriation out of net profit.
Liabilities Amount Assets Amount

Paid up Share capital 136.47 Cash in Hand & ATM 107.14

Reserve 205.98 Cash at bank 320.34

Deposits 3619.24 Investment 995.33

Bills of collection 9.85 Loans & Adv. 2196.74

Branch adjustment 1.88 Interest receivable 161.55

Overdue Int. reserve 34.48 Bills receivable (contra) 9.85

Other liabilities 16.77 Other assets 241.59

Profit & Loss Account 7.87

Total 4032.54 Total 4032.54

Balance Sheet As on 31/03/2018 (RS. In lakhs)

Financial management is the operational activity of a bank that is responsible for obtaining and
effectively utilizing funds for necessary for efficient operation.

Financial management means the efficient and effective management of money (funds) in such a
manner as to accomplish the objectives of the organization. It is a specialize function directly
associated with top management.

Highlights of operation department:

 Responsible for timely processing of bank transactions like-Fund transfer, cheques.

 Bank collects cheques from their customers.
 To receive daily clearing cheques and transfer cheques.
 Cross verification of clearing cheques.
 Accepting deposits from public is the most important function of the bank. Various people
according to their need and economic condition deposit their saving with the bank. Traders
and businessmen deposit their savings in the banks for the convenience of payment. Therefore
keeping the need and interest of various section of society, banks formulate various deposit
schemes. These includes; Fixed deposit Saving deposit Recurring deposit etc.
 Branch uses FINACLE system for keeping their financial record of transaction.
 Fake currency detection with the help of ultra-violet machine.
 Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) concepts
used for transferring funds.
 Bank provides arrangement of locker for the safe custody of valuable assets of their


The clearing system is local and confined to a definite jurisdiction covering all the banks and
branches situated in the area under particular zone. The clearing house is a voluntary association
of banks under the management of a bank where the settlement accounts are maintained. The
Reserve Bank of India has issued the Uniform Regulation And Rules for Bankers’ Clearing
Houses (URRBCH) which has been adopted by all clearing houses.

Clearing Process:

The clearing process begins with the deposit of cheque/ other clearing instruments. The bank
arranges the cheque submitted to it for clearing bank wise and presents it in the clearing house of
other banks. When there are more than one bank branch for the bank in a clearing area, they
would have a coordinating branch/ Service branch to take care of presenting the cheques to the
clearing house. Upon receipt of the cheque/ other instrument, they are passed for payment if the
funds are available and the banker is satisfied about the genuineness of the instrument. The
cheques that are unpaid are returned to the presenting bank through another clearing called the
Return clearing. The realization of funds occur after the completion of the return clearing and by
the absence of an unpaid cheque.
Time for clearing process at Pathri Branch:

General time: 10:00am to 11:30am (weekdays)

09:00am to 11:30am (Saturday)

After 11:30am it’s a late clearing cheque process. The cheques are send to Selu branch which
serves as a clearing house for all bank branches in Pathri.

Fig 4.1.1
Electronic Fund Transfer System:

National Electronic Fund Transfer System (NEFT)

This system is a nationwide fund transfer system to facilitate transfer of funds from any bank
branch to any another bank branch. This is typically for individual branches participating in
NEFT could be located anywhere across the country. The beneficiary gets the credit on the same
day or the next day depending on the time of settlement. To participate in NEFT the participating
bank branches should have Indian Financial System Code (IFSC) code. It is an alphanumeric
code designed to uniquely identify the bank branches in India. This is 11 digit code where first 4
characters representing bank code, the next reserved as control character (presently appears in
fifth position) and remaining 6 characters to identify branch. The MICR code is 9 digits to
identify the bank branch.

Real Time Gross Settlement (RTGS)

This is a large value fund transfer system whereby financial intermediaries can settle interbank
transfer for their own accounts as well as for their customers on a “real time” and a “gross” basis.
The system affects final settlement of interbank fund transfer on a continuous, transaction-by-
transaction basis through the processing day (RTGS business hours). The RTGS system is
primarily for large value transactions. While RTGS remittance will be credited to the beneficiary’s
account by maximum time lag of two hours. If the transfer had not happened the money would be
returned to payer’s account.
Account Opening Procedure

Customer Submits Application Form Along With KYC Documents

Bank Branch Officer Verifies the KYC documents

Documents Submitted to the Head Office

Resend to the

No Yes

Account Opened

Chart 4.1.1
To keep daily record in registers

 Outward mail register

 Inward mail register
 ATM entry register
 Locker issue register
 Outward CLG/OSC return register
 TDR issue register
 Drop box register
 Inter cash transfer register
 PO issue register
 HDFC DD Issue register


The Bank has taken a major technological transformation. The migration of our Core Banking
System (CBS) to Finacle, an Infosys product of repute, took place on 16th January, 2017.
Migration on such a massive scale has its own share of challenges which is being tackled on an
ongoing basis. With the ultimate motive of Customer Satisfaction, the Bank’s dedicated team has
put in all the efforts to tackle the challenges faced on a day to day basis. We hope to continue
giving the best of our services to our valued customers through the advanced technology,
facilitating convenient banking by way of improved versions of multi-channel banking. The Bank
has also housed its Data Centre and Disaster Recovery Centre with NetMagic, one of the leading
service providers in this field.
4.3 Bank Insurance

The bank has strategic alliance, both Life and Non-Life Insurance. Bank is a Corporate agent of
Max Life Insurance, one of the leading Life Insurance Company and Bajaj Allianz General
Insurance Company Ltd. a very reliable and sound name in non-life insurance.

Life Insurance

VUCOB bank is corporate agent of Max Life Insurance, one of the leading Life Insurance
Company. IRDAI certificate registration no. CA0021. Max Life Insurance is a non-bank
promoted private life insurer, is a joint venture between Max Financial Services Ltd. and Mitsui
Sumitomo Insurance Co. Ltd. Max Financial Services Ltd is a part of Max group which is leading
Indian multi-business corporation, while Mitsui Sumitomo Insurance Co. Ltd. is a member of
MS&AD Insurance Group which is among the leading insurers in the world. Max Life Insurance
offers comprehensive long term saving, protections and retirement solutions through its high
quality agency distribution and multi channel distribution partners. A financial stable company
with a strong track record over the last 15 years, Max Life Insurance offers superior investment

Non-Life Insurances

Bank has a license to act as a Corporate Agent under The Insurance Act,1938. Risk cover
available under Non-life insurance / General Insurance are fire, lightning, explosion and
Implosion, Aircraft damage, Riots, Strike and Malicious Damage, Storm, Cyclone, Typhoon,
Hurricane, Tornado, Flood, Landslide etc.
Religare Health Insurance

Recently bank has made tied up with Religare Health Insurance Company Ltd. to provide
customers with health care facilities under one roof.

Key Features –
 No pre-policy medical check-up, for all ages & sum insured with guaranteed life-long
 Only 2 year waiting period in case of Pre-existing diseases
 Get Automatic recharge of sum insured if claim amount exhausts your coverage, at no extra
 Annual health check-up for insured members- regardless of claims history
 Cashless & Hassle-free direct claim settlement with us at 5420+ Hospitals
 Coverage at every step with 30 Day Pre & 60 Day Post Hospitalization Cover.
 In-Patient Hospitalization covering Room rent, doctor’s surgery, ICU charges and much more.
 From a small stitch to a surgery – Day Care Treatments for all hospitalization less than 24
 Domestic Road Ambulance Cover in case of an emergency.
 Flexibility to select Sum Insured amount & product mix basis your requirement.
 Expenses towards Chemotherapy & Radiotherapy are also covered.
4.4 Marketing

Marketing is the activity, set of institutions, and processed for creating,

communicating, delivering, and exchanging offerings that have value for customers,
clients, and public at large. Marketing and Promotion in general is a big part of any
bank of financial institution. As bank is everything, they rely on their promotional
material in order to sustain their reputation. This comes through in many ways,
especially when dealing with financial and insurance policies. They take special care
when creating graphs, logos and other visualizations. And that’s why People who
work in marketing departments of companies try to get the attention of target
audiences by using slogans, packaging design, celebrity endorsements and general
media exposure.
VUCOB Bank said that these initiatives are especially targeted at those
consumers who are not aware about the bank's various value added services such as
direct banking facilities."We are going to demonstrate the advantages of net banking
and mobile banking, as these concepts are relatively new to people living in smaller
towns and cities. The bank has also launched another initiative which is targeted at
areas where the bulk of the population comprises small businessmen. Bank can
measure the result of a campaign through the sales that they generate and the
customers that are added.

There is a clear return on investment, which from a functional point of view

gives the team a stronger voice. Bank has also been able to reduce their ad spends by
about 10-15 per cent and has also reduced the cost of acquisition Bank's focus in
future would be to enhance its database marketing initiatives. Bank's marketing team
in various initiatives of growing the retail business quickly and cost effectively.
VUCOB has been using analytics for taking informed marketing decisions.
Bank is using this analytical information to reach new customers and to build, nurture
and maximize lasting customer relationships. Fractal will also help the bank solve the
problem of ever-increasing customer acquisition costs and reducing customer loyalty.
The marketing programs would involve acquisition of customers profitably by
reducing campaign costs, cross selling various asset and liability products to the
existing customers, thereby, leveraging the existing relationships and proactively
retaining existing customers.

Sr. No. Loan Type ROI

1. Home Loan 8.75%

2. Vehicle Loan 8.50%

3. Personal Loan 17%

4. Education Loan 11.50%

5. Mortgage Loan 12%

6. Medifina Loan ( for Doctors) 10.50%

Table 4.5.1
Various loans are provided by the bank which includes as follows:

1) Home Loan:
Features of home loan:
 Interest charged on daily reducing basis
 No pre payment/ foreclosure charges for housing loan
 Simplified documentation
 Easy repayment options: ECS/ Post Dated cheque/ Standing Instructions
 Low processing fees
 Speedy loan approval
 Offers insurance cover for all assets at attractive premium

Quantum of loan:

 Upto 80% of agreement value for salaried person

 Upto 75% off agreement value only( excluding stamping and registration)
for professionals.
 Limit upto Rs.70 lacs
Security: Equitable Mortgage of the premise
Surety: 2 Guarantors
Repayment: Upto 20 years

2) Vehicle Loan Features

of home loan:
 Interest charged on daily reducing basis
 No pre payment/ foreclosure charges for housing loan
 Simplified documentation
 Easy repayment options: ECS/ Post Dated cheque/ Standing Instructions
 Low processing fees
 Speedy loan approval
 Offers insurance cover for all assets at attractive premium

Quantum of loan:

 New Vehicle- Upto 90% of value

 Used Vehicle- Upto 70% of resale value –max upto 3 years
Security Hypothecation of vehicle to be financed
Surety 2 Guarantors
Repayment Upto 5 years
3) Personal Loan:
Features of home loan:
 Interest charged on daily reducing basis
 No pre payment/ foreclosure charges for housing loan
 Simplified documentation
 Easy repayment options: ECS/ Post Dated cheque/ Standing Instructions
 Low processing fees
 Speedy loan approval
 Offers insurance cover for all assets at attractive premium

Quantum of loan:

 Upto 2 lacs
Security: Hypothecation of vehicle to be financed
Surety: 2 Guarantors
Repayment: Upto 5 years
Purpose: House Repair, Higher Education, Expenses for Marriage, Medical and old

4) Education Loan:
Features of home loan:
 Interest charged on daily reducing basis
 No pre payment/ foreclosure charges for housing loan
 Simplified documentation
 Easy repayment options: ECS/ Post Dated cheque/ Standing Instructions
 Low processing fees
 Speedy loan approval
 Offers insurance cover for all assets at attractive premium

Quantum of loan:

 Upto Rs.10 lacs- Higher Study in India

 Upto Rs.20 lacs- Higher Study Abroad

Securit Colateral Security

y 2 Guarantors
Surety Upto 7 years
Repay Higher Study in India or Abroad
5) Mortgage Loan:
Features of home loan:
 Interest charged on daily reducing basis
 No pre payment/ foreclosure charges for housing loan
 Simplified documentation
 Easy repayment options: ECS/ Post Dated cheque/ Standing Instructions
 Low processing fees
 Speedy loan approval
 Offers insurance cover for all assets at attractive premium

Quantum of loan:

 Upto Rs.10 lacs- Higher Study in India

 Upto Rs.20 lacs- Higher Study Abroad

Securit Mortgage of residential or commercial property

y 2 Guarantors
Surety Upto 7 years
Repay Investment in business or profession, expense for marriage,
ment medical or old
Purpos debts

6) Medifina
Features of home loan:
 Interest charged on daily reducing basis
 No pre payment/ foreclosure charges for housing loan
 Simplified documentation
 Easy repayment options: ECS/ Post Dated cheque/ Standing
 Low processing fees
 Speedy loan approval
 Offers insurance cover for all assets at attractive premium

Quantum of loan:

 Upto 100% of Vehicle Value

 Upto 90% of equipments and premise value
2 Guarantors
Mortgage Upto 10 years
of assets New equipment finance, finance for imported equipments,
financed hospital
infrastructure finance.
7) Consumer Loan:

Quantum of loan: Rs. 2 lacs

Security: Hypothecation of articles to be purchased
Surety: 2 Guarantors
Repayment: Upto 5 years
Purpose: Purchase Television, Refrigerator, Washing Machine, Computers, Dish
washer, Music System etc.

8) Profina:
Quantum of loan:
 Upto 100% for vehicle
 Upto 90% for equipments, machinery, computers and premises
Surety: 2 Guarantors
Repayment: Upto 5 years for vehicle loan and for others upto 120 months
Purpose: Acquisition of premise, equipments, purchase of Vehicles etc.

9) Swayamsiddha (Loan for Professional Women)

Quantum of loan: Upto 90% of capital assets
Surety: 2 Guarantors
Repayment: Upto 7years
Security: Hypothecation of assets to be financed
Purpose: Purchase office Premise, furniture, computer and equipments etc.

10) Group Loan Project:

New group loan project is being undertaken by bank for availing personal loan at
lower interest rate for the permanent employees of manufacturing companies.
Presently the branch is availing personal loan under group loan project to Mahindra Heavy

Quantum of loan: upto Rs.5 lacs

Surety: 2 Guarantors
Repayment: Upto 5 years
Purpose: House Repair, Higher Education, Expenses for Marriage, Medical
and old debts.
4.6 Human Resource
In the competitive environment, employees of any business organization are the key factor for
deciding the success of the firm in general and co-operative in particular. The role of human
resource department of your Bank is to plan, develop, and administer policies and programs
designed to make expeditious use of human resources. During the year under review, 57
employees took initiative in upgrading their academic qualifications. 9 employees attained their
post graduation /professional qualification and as many as 48 employees completed various
courses of the Indian Institute of Bankers. The Bank has tied-up with Welingkar Institute of
Management, Development & Research for imparting training to its employees. Also, on the job
training was imparted to the employees for change in the CBS software.


The Bank has been felicitating the meritorious wards of the members encouraging them by
recognizing their achievements in academics & sports. This year, 80 students were felicitated
rewarding them Rs.1.03 lacs through members' welfare fund in a function held on 30.07.2016.
The Bank has been contributing to the welfare funds of various charitable trusts working in the
field of health, education, art and culture and various other social needs of the downtrodden strata
of the society. This year in all, 25 members have availed the benefits of the scheme for
reimbursement of hospitalization expenses, resulting in disbursing an amount of Rs.3.05 Lacs.
•During the year, 49 members also availed the facility for reimbursement of medical check-up
amounting to Rs.0.66 Lacs.


a) Gratuity:
Retirement Benefit in the form of Gratuity is a Defined Benefit Plan. The Bank has a Gratuity
Trust for its Employee under the Group Gratuity cum Life Assurance Scheme managed by
Life Insurance Corporation of India (LIC). Gratuity is provided for on the basis of Actuarial
Valuation done by an Independent Actuary as at the year end, using the Projected Unit Credit
Method in accordance with AS-15 on Employee Benefit as issued by ICAI.

b) Compensated Absences (Leave Encashment) :

Employee Leave Benefits in the nature of Privilege Leave is a defined benefit plan.
Employees are not entitled to encashment of Sick Leave. Casual Leave is en-cashed at the
year end and not carried forward. Privilege Leave which is en-cashable is provided for on the
basis of Actuarial Valuation done by an Independent Actuary as at the year end using the
Projected Unit Credit Method in accordance with the guidelines issued under AS-15 on
Employee Benefits as issued by ICAI.
c) Provident Fund Contribution :
Retirement Benefit in the form of Provident Fund is a Defined Contribution Plan and
contributions made to the Commissioner of Provident Fund at rates prescribed in the
Employees Provident Fund and Misc. Provisions Act, 1952 are accounted for on accrual basis.

d) Superannuation Contribution:
Contribution towards superannuation scheme of LIC is accounted for on accrual basis as a
Defined Contribution Plan.

 The Bank has sound financial position with growing business which is a major positive sign.
 The bank’s Net Profit for FY 2016-17 is Rs.46.55cr which shows a growth of 1.27%.
 VUCOB bank is regarded as one of the best urban co-operative bank.
 Good faith of the customer.
 Has good image in urban areas.
 Bank provides various investment and insurance schemes under one roof


 The NPA of the bank has gone up from Rs.172.16 cr. in F.Y. 2015-16 to Rs.243.98 cr. in
 There is lot of paper work; bank has to go for green initiative.
 Not present all over India, mainly concentrated in 4 states.
 NPA has substantially increased.

 On 16 January 2017 the bank adopted FINACLE System this will help bank to adjust in
current banking operating system.
 Internet banking facility could be well exploited.
 Further expansion in various cities.
 New alliance with Religare health insurance will come up with lot more customer base.


 Urgent need to reduce NPA.

 Need to retain its competitive spirit in co-operative sector.

1. I found that the bank retains its customer base through the trust generated between bank and
the customer.

2. The Bank should expand its operations in more states.

3. Need to improve advertising by bringing something attractive and effective.

4. There is no job rotation seen in the bank.

5. Business mainly focuses on increasing customer base for loan and through other investment

6. It has been observed that NPA for the F.Y.2016-17 has increased considerably.

7. There is irregularity in timely EMI deduction of the customer.

The VUCOB Co-op Bank has a history of 20 years of its existence in the corporate
world. The bank has gained its customer base by excellent customer relation it has maintained.
However, as compared to nationalized banks and other private sector banks, the VUCOB Co-
op bank does not have its presence across India. The bank needs to reduce this gap and
increase its customer base. The bank has further plans of opening new branches thus focus on
further expansion of business.

The bank should work more on its technical part like timely SMS alert, Timely EMI
deduction, Mobile banking, internet banking etc. and make it more viable for the customer.
The bank encourages small and medium enterprises by providing them easy loan facility and
thus promoting them in the mainstream of the economy. Bank has come up with various
projects under loan services which should be retained. Due to increase in advances, the
interest received by the bank is provides a major source of income for the bank. The bank has
lot of opportunity ahead, if utilized efficiently, will help in further development and growth of
the bank.

 “Financial Management” by M Y Khan and Jain.

 “Indian Financial System” by V.K. Bhalla
 “Financial Management-Theories and Practice” by Prasanna Chandra
 Agrawal, N.P (1983) “Analysis of Financial Statements”, National Publishing House,
New Delhi.

Research Papers:

 G. Barathi Kamath, (2007) "The intellectual capital performance of the Indian banking
sector", Journal of Intellectual Capital, Vol. 8 Issue: 1.
 Dr. Anurah B. Singh; Ms. Priyanka Tondon, “A STUDY OF FINANCIAL
International Journal of Marketing, Financial Services & Management Research Vol.1
Issue 11, November 2012, ISSN 2277 3622,
AND PUBLIC SECTOR BANKING SYSTEMS”, International Journal of Business
Administration Research Review, Vol.2, Issue.5, April - June, 2014