A RESEARCH PROJECT REPORT

ON

FARMER SATISFACTION IN

COOPERATIVE BANK

BADHNI KALAN

Panjab University, Chandigarh

In Partial Fulfillment For The Degree of

MASTER OF COMMERCE (2019-2020)

Submitted To:- Submitted by:-

Prof. Priyanka Kirandeep Kaur

M.com 2nd (sem)

Roll no. : 47138

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 DECLARATION
I here by certified that summer training report titled “ FARMER SATISFICATION THE
COOPRATIVE BANK BADHNI KALAN” by KIRANDEEP KAUR submitted in the
department of commerce at “LAJPAT RAI D.A.V. COLLEGE”, Jagraon under Punjab
university Chandigarh, is an authentic record of any own work under the supervision of Prof.
Priyanka. The matter presented has not been submitted by me in any other university institute
for award of Diploma/M.COM MASTER DEGREE.

KIRANDEEP KAUR

2
3
PREFACE
An employee when the join an organization is just the raw individual, who does not the possess
desired level of skill and knowledge to produce the standard output. Also be employees are
required to be up to date according to the technological changes. To achieve these objective
some kind of training is required. In other words organization needs to maintain a via blend
knowledgeable work force to meet the current and future challenge. For this training is only
medium/ method/ weapon by which the organization can achieve the objectives. So training is a
continuous process exist till the organization situation. The 6 week training program has been
introduce by RTU for an elaborate and practical study on selected topic related to management
from the company. In this session I took training in THE CENTRAL COOPRATIVE BANK
BADHANI KALAN. In farmer section of that bank on which I got the chance to know the
procedure by which bank benefit to farmer. In this report I have shown the benefit to farmer by
cooperative bank. I also include the current facts and figures related to topic.

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 ACKNOWELEDGEMENT
The satisfaction that accomplishes the successful completion of any work is when we say thank
you to the people who made it possible , whose constant encouragement and guidance has been a
source of inspiration throughout the course of my project.

I would like to express my deep sense of gratitude to the management of the “Central Co-
operative bank ltd” Badhni Kalan. For giving me an opportunity to complete my training.

I would also like to thanks my parents and friends who helped to lot in finalizing this project
within the limited time frame.

I also express my sincere thanks to HOD of Commerce Department of Lajpat Rai D.A.V.
College, Jagraon for their valuable guidance.

I would like to thank Prof. Priyanka for providing me continuous support, guidance,
encouragement and enlightening me with valuable suggestions at every step of the project.

Kirandeep Kaur

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 INDEX

CHAPTRES PARTICULARS PAGE NO.

1 INTRODUCTION OF BANKING 7-14

2 INTRODUCTION OF 15-20
COOPERATIVE BANK

3 BANK PROFILE BENEFIT OF 21-29

COOPERATIVE

4 REVIEW OF LITERATURE 30-32

5 OBJECTIVE AND SCOPE OF 33-34

STUDY

6 RESEARCH METHODOLOGY 35-37

7 DATA ANALYSIS AND 38-50

INTERPRETATION

8 CONCLUSION 51-55

9 BIBLIOGRAPHY 56-57

10 58-62
ANNXTURE

6
INTRODUCTION

OF

BANK

7
MEANING OF BANK:-
An establishment authorized by a government to accept deposit, pay interest, clear cheque, make
loans, act as an intermediary in financial transaction, and provide other financial service to its
customer. Lending activities can be performed either directly or indirectly through capital
market. Due to their importance in the financial stability of a country, banks are highly regulated
in most countries.

Definition Of Bank:-
Under English common law, a banker is defined as a person who carries on the business of
banking, which is specified as a:[13]

1 Conducting current accounts for his customers.

2. paying cheque drawn on him/her and

3. collecting cheques for his/her customer.

HISTORY OF BANK :-
Banking began with the first prototype banks of merchants of the ancient world, which made
grain loan to the farmer and traders who carried goods between cities and this system is known
as a barter system. This began around 2000 BC in Assyria and Babylonia. Later, in ancient
Greece and during the Roman Empire, lenders based in temples made loan and added two
important innovations: they accepted deposits and changed money. Archaeology from this period
in ancient china and India also shows evidence of money lending activity.

The origin of the modern banking can be traced to medieval and early Renaissance Italy, to the
rich cities in the Centre and north like Florence, Lucca, Venice and Genoa. The Bardi and
th
Peruzzi families dominated banking in 14 - century Florence, establishing braches in many other
parts of Europe. One of the most famous Italian banks was the Medici bank, set up by Giovanni
di Bicci de’ Medici in 1397.The eeriest known state deposit bank, Banco di San Giorgio, was
founded in 1407 at Genoa Italy.

Modern banking practice, including fractional reserve banking and the issue of banknotes,
emerged in the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths
of London, who possessed private vaults, and charged a fees for that service. In exchange for
each deposit of precious metal, the goldsmiths issued receipt certifying the quantity and purity of
the metal they held as a bailee; these receipt could not be assigned, only the original depositor
could collect the stored goods.

The Bank of England was the first begin the permanent issue of banknote, in 1695. The Royal
Bank Of Scotland established the first overdraft facility in 1728. By the beginning of the 19th
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century a banker clearing house was established in London to allow multiple banks to clear
transaction. The Rothschild's pioneered international finance on a large scale, financing the
purchase of the Suez Canal for the British government.

ORIGIN OF COMMERCIAL BANKS IN THE WORLD:-

Commercial banks originated and evolved since time ago, whereby started beginning of banking
operation in the reign of Babylon in Iraq, known as Mesopotamia in fourth millennium BC.
Knew beginning of operations of exiting banks, exchange of currencies, save deposit and grant
loans. The idea in the exchange of money, which in the middle ages uprooted the idea of the
teller who gained income from currency exchange, whether foreign or local currencies.

The commercial bank in its present form emerged in the last period of the middle ages,
specifically in the thirteenth century and fourteenth century. This was due to the crusades within
that period, with their wars which required huge amount of money intent to equip the armies. As
a result of these wars, especially at the end of increase and accumulation of wealth, growth of
increasing Event banking and a spread of the idea of accepting deposit and certificates of deposit
emerged out of check and paper money of its modern version.

The oldest bank to carry the name of bank was the “Bank of Barcelona” in (1401) and it accept
deposit and discounting bills of exchange, while the first state bank has been established in the
city of Venice, Venice 1587, the municipality of Amsterdam established the Bank under the
name “Bank of Amsterdam” in 1609 for the purpose of filing excessive and providing content to
the public. Thus, started in the sixteenth century all major trade transfer between Mediterranean,
Atlantic Ocean and with coast of European overlooking Atlantic Ocean, many countries such as
Spain and Portugal, Netherland, England and France have flourished banking business in these
countries as a result of the flow of goods and precious metals in sixteenth and seventeenth
centuries. The beginning of the eighteenth century started with the growth in number of banks in
Europe. The end of the nineteenth century saw increasing dependency on banks as a pioneer of
progress and emerged mergers between banks and companies to buy most of the share of other
companies.

So bank is most important sector economic activity, and that economic developments played an
important role in emergence of several new variable at time was money-changer, goldsmith, who
first appeared on face of these variable?

Gradual emergence of banks was mostly owed by individuals, families, and there was laws
provided for the protection of depositor in case of bankruptcy, for return of private capital to
owner of these banks.

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INDIAN BANKING SYSTEM:-
Banking system play a significant role in economic growth of country. Banks are the major
participant in the Indian financial system.

Banking in India, in the modern sense, originated in the last decades of the 18th century. Among
the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in
1829-1832; and the General Bank of India, established in 1786 but failed in the 1791.

The largest bank, and the oldest still in existence , is the State Bank Of India. It originated as the
Bank of Calcutta in June 1806. In 1809, I was renamed as the Bank of Bengal. This was one of
the three banks founded by the presidency government, the other two were the Bank of Bombay
in 1840 and the Bank of Madras in 1843. The three bank were merged in 1921 to form the
Imperial Bank of India, which upon India’s independence, become the State Bank of India in
1955, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India
Act, 1934.

Generally banking in India is fairly mature in term of supply, product range and reach-even
through reach in rural India and to poor still remain a challenge. The government has developed
initiatives to address this through the State Bank of India expanding its branch network and
through the National Bank for Agriculture and Rural Development with facility like
microfinance.

NATIONALIZATION OF BANKS IN 1960 :-

Despite the provision, control and regulations of the Reserve Bank of India, banks in India
expect the State Bank of India, remain owned and operated by private person. By the 1960, the
Indian banking industry had become an important tool to facilitate the development of Indian
economy. At the same time it had emerged as a larger employer, and a debate had ensured about
the nationalization of banking industry. Indira Gandhi, the then Prime Minister of India,
expressed the intention of the Government of India in the annual conference of the All India
Congress Meeting in the paper entitled “Stray thought on Bank nationalization.” The meeting
received the paper with enthusiasm.

Thereafter he move was swift and sudden. The Government of India issued an ordinance
(‘Banking companies (Acquisition and Transfer of Undertaking) ordinance, 1969’) and
nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969.
These banks contain 85 percent of deposit in the country.

A second does of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government to more control of credit delivery.
With the second does of nationalization, the Government of India controlled the around 91
percent of banking business of India. Later on the year of 1993, the government merged New

10
Bank of India with Punjab National Bank. It was only merged with nationalized bank and
resulted in the reduction of number of nationalized bank from 20 to 19. Until the 1990s the
nationalized bank grew at the pace of around 4 percent closer to the average growth rate of the
Indian economy.

LIBRALIZATION IN THE 1990s :-

In the early 1990s, the then government embarked on a policy of liberalization, licensing a small
number of private banks. These came to be known as New Generation tech-savvy banks, and
included Global Trust Bank, which later amalgamated with Oriental Bank of Commerce, 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 been rapid growth with strong
contribution from all the three sectors of banks, namely, government banks, private banks, and
foreign banks.

The next stage for the Indian banking has been set up, with proposed relaxation of norms for
foreign direct investment. All foreign investor in banks may be given voting rights that could
exceed the present cap of 10% at present. It has gone up to 74% with some restriction.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method of functioning. The new wave ushered in the modern outlook and tech-savvy
method of working for traditional banks. All this led to the retail boom in India. People
demanded more from their banks and received more.

BANKING STANDARD ACTIVITIES :-

Banks act as payment agents by conducting checking or current accounts for customers, paying
check drawn by customers on the bank, and collecting checks deposited to customers' current
accounts. Banks also enable customer payments via other payment methods such as Automated
Clearing House (ACH), Wire Transfers or telegraphic transfer, EFTPOS, and automated teller
machine (ATM).

Large door to an old bank vault. Banks borrow money by accepting funds deposited on current
accounts, by accepting term deposits, and by issuing debt securities such as banknotes and
bonds. Banks lend money by making advances to customers on current accounts, by making
installment loans, and by investing in marketable debt securities and other forms of money
lending. Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that provide
payment services such as remittance companies are not normally considered an adequate
substitute for having a bank account. Banks borrow most funds from households and non-
financial businesses, and lend most funds to households and non-financial businesses, but non-
bank lenders provide a significant and in many cases adequate substitute for bank loans, and

11
money market funds, cash management trusts and other non-bank financial institutions in many
cases provide an adequate substitute to banks for lending savings too.

FEATURES OF BANK :-
Following are the basic characteristics of Banking:

(i) Dealing in money:

The banks accept deposits from the public and advancing them as loans to the needy people. The
deposits may be of different types current, fixed, saving, etc. accounts. The deposits are accepted
on various terms and conditions.

(ii) Deposits must be withdrawn able:

The deposits (other than fixed deposits) made by the public can be withdraw able by cheques,
draft or otherwise, i.e., the bank issue and pay cheque. The deposits are usually withdrawn able
on demand.

(iii) Dealing with credit:

The banks are the institutions that can create credit i.e., creation of additional money for lending.
Thus, "creation of credit' is the unique feature of banking.

(iv) Commercial in nature:

Since all the banking functions are carried on with the aim of making profit, it is regarded as a
commercial institution.

(v) Nature of agent:

Besides the basic functions of accepting deposits and lending money as loans, banks possess the
character of an agent because of its various agency services.

TYPES OF BANK :-
1. Commercial Banks:
These banks play the most important role in modern economic organization. Their
business mainly consists of receiving deposits, giving loans and financing the trade of a
country. They provide short-term credit, i.e., lend money for short periods. This is their
special feature.
2. Exchange Banks:
Exchange banks finance mostly the foreign trade of a country. Their main function is to
discount, accept and collect foreign bills of exchange. They also buy and sell foreign

12
 currencies and help businessmen to convert their money into any foreign money they
need. Their share in the internal trade of a country is usually small. In addition, they carry
on ordinary banking business too.
3. Industrial Banks:-
There are a few industrial banks in India. But in some other countries, notably Germany
and Japan, these banks perform the function of advancing loans to industrial
undertakings. Industries require capital for a long period for buying machinery and
equipment. Industrial banks provide this type of Mock capital. Industrial banks have a
large capital of their own. They also receive deposits for longer periods. They are thus in
a position to advance long-term loans.
4. Agricultural or Co-operative Banks:-
The main business of agricultural banks is to provide funds to farmers. They are worked
on the co-operative principle. Long-term capital is provided by land mortgage banks,
nowadays called land-development banks, while short-term loans are given by co-
operative societies and co-operative banks. Long-term loans are needed by the farmers
for purchasing land or for permanent improvements on land, while short-period loans
help them in purchasing implements, fertilizers and seeds. Such banks and societies are
doing useful work in India.
5. Savings Banks:-
These banks (perform the useful service of collecting small savings. Commercial banks
too run “savings departments” to mobilize the savings of men of small means. The idea is
to encourage thrift and discourage hoarding. Post Office Saving Banks in India are doing
this useful work.
6. Central Banks:-
Over and above the various types of banks mentioned above, there exists in almost all
countries today a Central Bank. It is usually controlled and quite often owned by the
government of the country.

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ROLE OF BANKS IN ECONOMIC DEVELOPMENT:-
Banks play a very useful and crucial role in the economic life of every nation. They have control
over a large part of the supply of money in circulation, and they can influence the nature and
character of production in any country. In order to study the economic significance of banks, we
have to review the general and important functions of banks.

1) Removing the deficiency of capital formation:-In any economy, economic

development is not possible unless there is an adequate degree of capital accumulation (or)
formation. A sound banking system mobilizes small savings of the community. The important
implications of this activity include Banks mobilize deposits by offering attractive rates of
interest and thus convert savings into active capital. Otherwise that amount would have remained
idle.

2) Provision of finance and credit

Banks are very important sources of finance and credit for industry and trade. It is observed that
credit is the lubricant of all commerce and trade. The banks cover foreign trade transactions also.
They help in concluding deferred payments, arrangements between the domestic industrial
undertakings and foreign firms to enable the former import machinery and other essential
equipment.

3) Extension of the size of the market:- Commercial bankers help commerce and
industry in yet another way. With the sound banking system, it is possible for commerce and
industry for extending their field of operation. Commercial banks act as an intermediary between
buyers and the sellers., The industry can look forward to derive economies of the large size of
the market.

4) Act as an engine of balanced regional development:- Commercial banks help in

proper allocation of funds among different regions of the economy. The banks operate primarily
for profits. Banks help create infrastructure essential for economic development. Thus banks are
engines of balanced regional development in the country.

5) Financing agriculture and allied activities:- The commercial bank helps the farmers
in extending credit for agricultural development. Farmers require credit for various purposes like
making their produce, for the modernization and mechanization of their agriculture, for
providing irrigation facilities and for developing land.

6) For improving the standard of living of the people:- The standard of living of the
people is estimated on the basis of the consumption pattern. The banks advance loans to
consumers for the purchase of consumer durables and other immovable property, which will
raise the standard of living of the people.

14
 INTRODUCTION OF
COOPERATIVE BANKS

15
INTRODUCTION OF COOPERATIVE BANKS:-
Cooperative banking is retail and commercial banking organized on a cooperative basis.
Cooperative banking institutions take deposits and lend money in most parts of the world.
Cooperative banking, includes retail banking carried out by credit unions, mutual savings banks,
building societies and cooperatives, as well as commercial banking services provided by mutual
organizations (such as cooperative federations) to cooperative businesses.

Cooperative banks are owned by their customers and follow the cooperative principle of one
person, one vote. Co-operative banks are often regulated under both banking and cooperative
legislation. They provide services such as savings and loans to non-members as well as to
members, and some participate in the wholesale markets for bonds, money and even equities.
Many cooperative banks are traded on public stock markets.

Cooperative banking systems are also usually more integrated than credit union systems. Local
branches of co-operative banks select their own boards of directors and manage their own
operations, but most strategic decisions require approval from a central office. Credit unions
usually retain strategic decision-making at a local level, though they share back-office functions,
such as access to the global payments system, by federating.

DEFINITION OF COOPERATIVE BANK:-

A bank that holds deposits, makes loans and provides other financial services to cooperatives and
member-owned organizations. Also known as Banks for Cooperatives.

OBJECTIVES OF COOPERATIVE BANK :-

• To provide support and services to the members of the society and not to earn the profit

• To help each other mutually and not to have competition.

• To practice fair and transparent business activities.

• To deliver the quality goods and produce to the end customers.

FEATURES OF COOPERATIVE BANK:-

1. They are organized and managed on the principal of cooperation, self help, and mutual
help. They function with the rule of one member, one vote.
2. Function on “no profit, no loss” basis. Co-operative banks as a principal, do not purse the
goal of profit maximization.
3. Co-operative bank perform all the main banking function of deposit mobilization, supply
of credit, and provision of remittance facility.
4. UCBs provide working capital loan and term loan as loan.
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TYPES OF CO-OPERATIVE BANK:-
There are two main categories of co-operative bank.

(a) Short term lending oriented co-operative Banks –

within this category there are three sub categories of banks viz state co-
operative banks, District co-operative banks and Primary Agricultural co-
operative societies.

(b) Long term lending oriented co-operative Banks - within the second
category there are state co-operatives and rural development banks.

The co-operative banking structure in India is divided into following main 2 categories:

Primary Urban Co-op Banks

Primary Agricultural Credit Societies:

The Primary Co-operative Credit Society is an association of borrowers and non-borrowers
residing in a particular locality. The funds of the society are derived from the share capital and
deposits of members and loans from central co-operative banks.

The borrowing powers of the members as well as of the society are fixed. The loans are given to
members for the purchase of cattle, fodder, fertilizers, pesticides, implements, etc.

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HISTORY OF COOPERATIVE BANKING IN INDIA
The historical roots of the Cooperative Movement in the world days back to days of misery and
distress in Europe faced by common people who had little or no access to credit to fund their
basic needs, in uncertain times. The idea spread when the continent was faced with economic
turmoil which led large populations to live at subsistence level without any economic security.
People were forced to poverty and deprivation. It was the idea of Hermann Schulze (1808-83)
and Friedrich Wilhelm Raiffeisen (1818-88) which took shape as cooperative banks of today
across the world. They started to promote the idea of easy availability of credit to small
businesses and for the poor segment of society. Although this helped spread cooperative
movement in many parts of Europe, in British Isles it is came from the revivalist Christian
movement and found high acceptance with working class and lower middle class segments of
society. However, UK and Irish credit unions in 20th century were inspired by US credit unions
which in-turn owe their emergence to Canadian adaptations of the German cooperative banking
concept. These movements were supported by governments of the respective countries. This
success was achieved due to the failure of the commercial banks to fund and support the needs of
small business owners. Cooperative banks helped overcome the vital market imperfections and
serviced the poorer layers of society.

Indian Cooperative Banks was also born out of distress prevalent in Indian society.

•The Cooperative Credit Societies Act, 1904 led to the formation of Cooperative Credit Societies
in both rural and urban areas. The act was based on recommendations of Sir Frederick Nicholson
(1899) and Sir Edward Law (1901). Their ideas in turn were based on the pattern of Raiffeisen
and Schulze respectively.

•The Cooperative Societies Act of 1912, further gave recognition to the formation of non-credit
societies and the central cooperative organizations.

•In independent India, with the onset of planning, the cooperative organizations gained more
leverage and role with the continued governmental support.

•Mach lagan Committee in 1915, highlighted the deficiencies of in cooperative societies which
seeped-in due to lack of proper education to the masses.

•The Royal Commission on Agriculture 1928, enumerated the importance of education of

members/staff for effective implementation of cooperative movement.

•Saraiya Committee, in 1945, further recommended the setting up of a Cooperative Training

College in every state and a Cooperative Training Institute for Advanced Study and Research at
the Central level.

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•Central Committee for Cooperative Training in 1953, constituted by RBI for establishing
Regional Training Centers.

•Rural Credit Survey Committee, 1954 was the first committee formed till then to first delve into
the problems of Rural credit and other financial issues of rural society.

The cooperative movement and banking structures soon spread and resonated with the
unexpressed needs of the rural Indian and small scale businesses.

Since, 1950s, they have come a long way to support and provide assistance in activities like
credit, banking, production, processing, distribution/marketing, housing, warehousing, irrigation,
transport, textiles, dairy, sugar etc. to households.

RBI POLICIES OF COOPERATIVE BANK:-

Reserve Bank of India has recently reviewed the licensing policy for Urban Co-operative Banks
(UCBs) pursuant to the recommendations of the High Power Committee constituted for
examining the existing licensing policy among other regulatory issues. The thrust of new
licensing policy and revised entry point norms are delineated below:

REVISED POLICY APPROACH:-

The thrust of revised licensing policy is on strong start up capital and corporate governance.
Accordingly, it has been decided to revise the entry point norms (EPN), and prescribe 4
categories of EPN based on population criteria. Revised EPN are set out in Annexure 'A'.

Besides EPN, corporate governance assumes significant importance in running UCBs onsound
lines, following eligibility criteria have been prescribed for promoters of new UCBs.

(a) There should at all times be at least two directors with suitable banking experience or persons
with relevant professional qualifications i.e., Chartered Accountants with banking experience.

(b) The promoters should not be defaulters to any financial institution/bank/cooperative

bank/cooperative society, etc. (c) No criminal proceedings should have been instituted against
the promoters.

(d) Promoters should not be associated as director with any chit fund/NBFC/ cooperative bank.

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VIABILITY NORMS:-
RBI have examined the relevance of continuance of existing viability standards in the context of
application of prudential norms and relative regulatory prescriptions for UCBs and it has been
decided to dispense with these norms. Hence, the viability norms prescribed in our circular dated
May 25, 1993 stand withdrawn for the existing as well as new banks.

Many UCBs function as unit banks (single branch banks) confining to compact geographical
locations. The initial infrastructure expenditure requited for unit banks may be relatively lower
than the banks which intend to open branches. It has, therefore, been decided to prescribe 50%
relaxation in entry point capital for the banks which propose to set up as unit banks i.e. ‘Single
branch bank is given without any branches. EPN prescription for unit banks has been furnished
in Annexure ‘B’. However, an UCB which subsequently desires to open a branch /branches has
to necessarily enhance its capital to the level requited for setting up of a new bank as applicable
to the center where its registered office is located or where the branch is proposed to be opened,
whichever is higher.

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 CHAPTER- 3

THE BADHNI KALAN

CO-OPERATIVE LTD.

21
BANK POFILE:-
The Co-operative bank Badhni Kalan is a part of Punjab. Which has a remarkable contribution
in the banking sector of the area. The main object of bank is to provide economic and financial
growth to town by providing credit to farmers, tradesman and to common people by optimum
utilization of human asset and funds. The Co-operative bank Badhni Kalan in its beginning
provide short term to trade man and farmers of the areas by taking care of increasing banking
activities, it extended its service and facilities in related areas. It giving advice to people to
seeking loan.

The major competitors of co-operative bank are state bank of India, Punjab national bank, HDFC
and AXIS bank it any case when there is a shortage of money for its various purpose, then main
supplier of the money its shareholders and RBI.

ADDRESS:-
THE CO-OPERATIVE BANK LTD. BADHNI KALAN

VISION:-
1. Development of co-operative societies
2. Interconnectivity of braches as well as PACs.
3. Promotion of K.C.C.
4. Promotion of agro processing activities.
5. Educate to Farmer.
6. CORE Banking.

MISION:-
1. To encourage the saving habit in the rural areas.

2. To establish Primary Agriculture Societies and other co-operation societies in the areas of
operation and to nurse them.

3. To provide all types of financial services as banker to these co-operative societies.

4. To provide liquidity to these societies

5. To encourage co-operative movement in the districts under its area of operation.

6. To monitor the activities and programs of these societies.

7. To finance the affiliated co-operative societies.

22
 8. To provide door to door banking service to the Farmers and Rural public.

9. To provide finance for modernization of farming in our area of operation.

10. To provide all the banking service to these societies.

BENEFIT OF CO-OPERATIVE BANK TO FARMERS:-

Successful cooperative can benefit their farmers members and others in many ways. But even the
most successful can not be all things to all members. Understanding the more common benefit
and limitation of cooperative will help clarify their role in American agriculture.

23
HOW COOPERATIVE IS BENEFIT TO FARMERS AND THE
PUBLIC :-
Cooperative market farm product and providing farm supplies, credit and other service vary
widely in success. So their benefit and limitations also vary.

Benefit of cooperative are difficult to measure. Some are tangible or direct as in the case of net
margin and saving. Others are intangible or indirect such as cooperative effect on the market
price level, quality and service .some are the most evident at the time the cooperative is
organized but become more obscure as the years pass. Benefit are greater for some type of
cooperatives or in specify areas. More benefit are evaluated in economic term but some also may
be social.

BENEFIT TO FARMERS :-
In several major ways, cooperatives benefit farmer-members, and often
nonmembers.

Ownership and Democratic Control

Cooperatives enable farmers to own and control, on a democratic basis, business enterprises for
procuring their supplies and services (inputs), and marketing their products (outputs).

They voluntarily organize to help themselves rather than rely on the Government. They can
determine objectives, financing, operating policies, and methods of sharing the benefits. Through
cooperatives, farmers can own and operate a user service-oriented enterprise as contrasted to an
investor- or dividend-oriented enterprise. Farmer ownership allows producers to determine
services and operations that will maximize their own farming profits rather than profits for the
cooperative itself.

Increased Farm Income

Cooperatives increase farm income in a number of ways.

These include: (1) Raising the general price level for products marketed or lowering the level for
supplies purchased;

(2) reducing per-unit handling or processing costs by assembling large volumes, i.e., economies
of size or scale; (3) distributing to farmers any net savings made in handling, processing, and
selling operations;

(4) upgrading the quality of supplies or farm products handled; and

24
(5) developing new markets for products.

By pooling supply purchases, sales, and handling and selling expenses, cooperatives can operate
more efficiently-at lower costs per unit-than farmers can individually. This principle also can be
applied to succeeding levels in terminal marketing of commodities and in wholesaling and
manufacturing of supplies.

Farmers usually judge the benefit of belonging to a cooperative by its net margins or savings-a
tangible measure. More specifically, they look at the amount currently paid to them in cash. Next
is the amount allocated to them in noncash forms that may be revolved later. Many cooperatives
annually make substantial cash payments of earlier deferred refunds from revolving funds.

The net margins realized by 5,900 marketing and supply cooperatives were about $1.3 billion in
1976, after eliminating inter cooperative distribution of patronage refunds and dividends on
member capital. These savings were equal to about 21 percent of the $6.14 billion investment
members had in these cooperatives that year. Measured another way, such a savings constituted
about 7.1 percent of the total $18.8 billion net income U.S. farmers earned in 1976.

In addition, many cooperatives operating on a pool basis realize proceeds exceeding the average
market prices in their trade area. Riceland Foods, Stuttgart, Ark., through combined superior
marketing, processing, and exporting services, has for the past three decades paid its members an
average of 40 cents or more per hundredweight of rice above the average price received by all
U.S. rice growers. Riceland’s soybean grower members in the past decade have received 35
cents more a bushel than average. Similar benefits are substantial for fruit and vegetable, wool,
and dairy farmers. A number of dairy, sugar, and fruit and vegetable associations bargain
primarily for price, but also terms of sale, including terms for certain input items. These
associations encourage members to produce quantities and quality of products needed to meet
market requirements. Overall information on the influence of bargaining associations on prices
received by members is not available.

Cooperatives also provide important indirect benefits through their effect on local prices for farm
products, supplies, and services. The savings aspect usually becomes less tangible over a period
of time. Cooperatives inject competition into the system by providing services at cost to
members. This leads to pricing adjustments by other organizations; thus the real benefit may be
their day-to-day impact on market prices. Based on the competitive influence of cooperatives
since they began operations, many leaders report that these economic benefits greatly exceeded
the annual net margins of the cooperatives. Also, a few large supply cooperatives have reduced
prices and margins temporarily during periods of drought or unusual price-cost squeeze to
provide direct benefits on a seasonal basis rather than at the end of the year.

Farm credit cooperatives, including Federal Land Bank Associations, Production Credit
Associations, and the Federal Land Banks, Intermediate Credit Banks, and Banks for
Cooperatives serving them, had net income of about $369 million in fiscal 1978 and $334

25
million in fiscal 1977. Data were not available on rural credit unions. Rural electric cooperatives
had net margins totaling $388 million in fiscal 1978 and $340 million in fiscal 1977. Most
cooperatives have programs to retire equities farmers have built up over the years with their
patronage. These amounts can be substantial, as exemplified by the $19,992 check Bill Clifford
of Plymouth, Neb., received on his 65th birthday. The check represented his equity built up
between 1944 and 1976 from using his cooperative in support of his 80-acre hog farm. In 1979,
farmers had $16.9 billion invested in cooperatives, an average of $6,423 per farm.

Improved Service
A basic objective of cooperatives is to serve their members’ needs. They do this by providing
services not available or by improving existing services. Rural electric cooperatives and
artificial insemination associations are outstanding examples of making a new service available
in rural areas. Production Credit Associations pioneered in making loans based on carefully
planned budgets-still an important part of their services. Providing a year-round grain marketing
or processing service are meeting a need in some communities. Other new services are electronic
auctions to encourage competitive pricing in livestock and cotton, bulk assembling and handling
of citrus, use of bulk farm tanks and tank trucks for assembling milk, and further processing of a
variety of raw farm products. In the supply field, soil testing followed by bulk blending, delivery,
and spreading of fertilizer are services first developed and now provided by many cooperatives.
More recent services are application of liquid fertilizer and pesticides, “keep-full” services
computer service for information on recommended types of fertilizer and feed for specific uses.
Cooperatives are supplying various custom services to help farmers meet labor shortages or to
minimize individual investments in equipment. Cooperatives have led in improving services to
farmers because their objectives have been to meet members’ needs even though little or no net
margins are made for the cooperative in every operation.

Quality of Supplies and Products

Farm supply cooperatives have been noted for providing supplies giving the greatest value-in-use
to the farmer. Their objectives have been to provide the feed, seed, and fertilizer that gave the
farmer maximum gains or yields rather than those that returned the largest net margins to the
cooperatives. Cooperatives long have relied heavily on State experiment stations for advice as to
variety of seed, analysis of fertilizer, and formulation of feed that would best meet the needs of
their farmer-members.

In marketing farm products, cooperatives’ pricing practices have been based on differentials for
quality. And they have provided information and advice on ways to produce quality products and
to maintain that quality in the marketing process. Basically, cooperatives encourage production
oriented to market requirements by developing producer payment plans based upon meeting
grade, size, time, and other market specifications. Marketing cooperatives have led in demanding
industry grade standards, then using them in offering top quality products to buyers. Their efforts

26
to improve quality, reliability, and integrity of exports can increase the cooperatives’ share of the
export market.

Assured Sources of Supplies

Cooperatives provide members with a dependable source of reasonably priced supplies,
especially during shortages or emergencies. This service may require cooperatives to fore go
larger net margins from other domestic or foreign business to meet the needs of their member-
owners.

Cooperatives operated as pacesetters in the public interest in supplying petroleum and fertilizer
to farmers during the shortages of the early 1970’s. Specifically, cooperatives

(1) confined sale of supplies to member-patrons to enable farmers to expand production;

(2) made special purchases at extra costs;

(3) added storage and transport equipment to acquire or store products when they were
available;

(4) expanded refining and manufacturing capacity; and

(5) formed an international petroleum trading and purchasing cooperative to acquire foreign
sources of supplies.

In 1975 during a period of fertilizer shortages and skyrocketing prices, cooperatives held the line
by charging an average of $31 per ton less than non cooperative suppliers, resulting in a cost
saving to farmers of nearly $200 million. For example, petroleum refinery facilities were
purchased to improve cooperatives’ fuel sources.

Enhanced Competition
Strong successful cooperatives introduce desirable competition that raises the going market
prices for farm products, the type of services provided, and the quality of supplies farmers
purchase. Individual farmers have little bargaining or purchasing power, but by joining in
cooperatives they can acquire “muscle in the marketplace.” Farmers in many areas are forced to
deal with fewer product buyers or supply sellers. In some industries, only a few large companies
control a substantial share of the market at various integrated levels in the marketing process.
Local prices for farm products often advance when cooperatives enter the market, and the prices
of purchased farm inputs frequently declines.

The basic cooperative principle of providing services at cost injects a highly competitive
force in the marketplace even though there are a small number of large firms. Cooperatives
provide a “yardstick” by which members can measure the performance of other firms that serve

27
farmers. This can help cooperative officials decide whether to integrate operations on a more
intensive scale.

Expanded Markets
Through pooling products of specified grade or quality, many marketing cooperatives can meet
the needs of large-scale buyers better than can individual farmers. A number of cooperatives
have developed markets in other countries and their export provide outlets for more production
than members otherwise could sell. In many cases, cooperatives have expanded-or acted to retain
markets by processing members’ products into different forms or foods. Major cooperatives have
been organized to preserve farmers’ link to a market and to protect their production investment.
Farmers have used cooperatives to capture a greater share of the value added to a product as it
moves to the consumer. By the mid-1970’s, more than 80 cooperatives were marketing farmers’
products under nearly 300 cooperative-owned processed food brands.

Improved Farm Management

Progressive managers and field staffs of cooperatives provide valuable information to members
on farm production and management practices. Advice may be offered on the quality of seeds,
fertilizers, and pesticides, and on feeding and cropping practices. Also, many cooperatives
provide market and economic information about various products or enterprises. Many
cooperatives assist county extension agents in implementing the recommendations of State
experiment stations. Many farmers are looking to their cooperatives for more complete
purchasing and marketing services.

Local Leadership Development

Successful, growing cooperatives often develop leadership among directors, managers, and other
employees. And members, by participating in business decisions on a democratic basis, become

28
more self-reliant and informed citizens in their communities. This experience of working with
the cooperative contributes to improved rural leadership. In July 1976, Secretary of Agriculture
Earl L. Butz, speaking at the 50th anniversary of the Cooperative Marketing Act and Farmer
Cooperative Service of USDA, stated: “I think there is no better training ground for democracy
in this country than in the self-management and operation in these cooperatives. That, to me, has
been the great contribution that cooperatives have made in the past 50 years and I think it will be
the great contribution they will make in the next 50 years.”

Family Farmer Control of Agriculture

These benefits, which vary among cooperatives, all indicate ways cooperative enterprises help
the family farm stay in business and thus keep control of production. The credit and supply
cooperatives help the family farmer enlarge and operate his production units more efficiently on
an independent basis. The marketing and processing cooperatives provide members market
access and help them sell their products to advantage-either in the original state at harvest or later
following storage, or in a processed form. These cooperatives help him (1) remain an
entrepreneur rather than a contract producer or piece-worker, and (2) retain control of his
products further up the marketing chain on the way to consumers.

29
CHAPTER -4

REVIEW

OF

LITERATURE

30
Blount et. al., (2004), “Employee Development Strategies In The B2c Banking
Environment: Two Australian Case Studies”, The paper discusses two case studies
illustrating some of the issues with which banks, as service organizations, have had to deal.
These two banks have taken rather different approaches in their use of technology to interact
with their customers and this has implications for the way they manage their employees who deal
with those customers.

D. Shah, (2005), “Financial Health of Credit Co-operatives in Maharashtra: A

Case of Sangli and Buldana District Central Co-operative Banks”, The entire paper
is divided into two sections. While the first section specifically focuses on the evaluation of
credit delivery in forward and backward districts of Maharashtra, the second section is chiefly
devoted to examining the functioning of various RFIs in the state.

E. Allen et. al., (2009), “African cooperatives and the financial crisis”, This paper
therefore considers how cooperatives, particularly financial cooperatives and cooperatives in the
agricultural sector in Africa are managing the current crisis. As a way forward, the paper
provides an analysis of the triggers of the crisis and considers how economies throughout the
world are being affected, with attention given to cooperatives in Sub-Saharan Africa.

B. Chang et. al., (2010), “Research on Relief Loans in Taiwan Banking

System”, This article mainly focuses on relief loans and details are described in separate
chapters. The content covers funding sources, eligible applicants, applicable scope, loan amount,
repayment methods, interest rate, and application procedures in Taiwan.

S. Thyagarajan, (2011), “ Women's Co-Operative Bank Promoting and

Practicing Financial Inclusion of Rural Poor Women”, This case deals with a
women urban cooperative bank, a small local financial institution and having an objective to
work towards the holistic development of women entrepreneurs into women business owners and
bank customers.

A. K. Soni et. al., (2012), “Role of Cooperative Bank in Agricultural Credit: A

Study Based on Chhattisgarh”, This paper explains cooperative banking sector is one of the
main partners of Indian banking structure, the cooperative banks have more reach to the rural
India, through their huge network of credit societies in the institutional credit structure. The
cooperative sector has played a key role in the economy of the country. The cooperative covers
almost all cent percent villages in India. According to recent study by World Bank and National
Council for Applied Economic Research, the Primary Agriculture Credit Societies (PACS)
amount for about 30 percent of micro credit in India. This paper attempts to analyze the role of
co-operative bank in agricultural credit.

31
A. Sundaram, (2012), “Impact of Self-help Group in Socio-economic
development of India”, The main aim of this paper is to examine the impact of Self-help
Group in Socio-economic development of India. Self-help Groups have been playing
considerable role in infrastructure development, marketing and technology support,
communication level of members, self confidence among members, change in family violence,
change in the saving pattern of SHG members, and defaults and recoveries. It analyses what is
Self-Help Group? Why the Self-Help Group is so important in India? The present status of Self-
Help Group in India, impact of Self-Help Group in India, Shortcomings of Self-Help Group in
India, Suggestions to improve Self-Help Group In India.

G. Ferri, (2012), “Credit Cooperatives: Challenges and Opportunities In the

new Global Scenario.”, Researcher explains the future scenario highlights a Western
leadership challenged while the geo-economy seems to be moving back to a pre-Industrial
Revolution setup. Against this possible background, we outline various considerations along
which that scenario will increase the need for credit cooperatives to shape a more sustainable
economy.

J. Chavan et. al.,(2013), “Factors Affecting On Customer Satisfaction in

Retail Banking: An Empirical Study”, This empirical research study focuses on exploring the
major factors that lead to customer satisfaction in retail banking in Western Maharashtra in India.
It also leads to developing a conceptual framework of relationship marketing practices in Indian
banks by capturing the perspectives of consumers with respect to their satisfaction with various
services.

Odetola, Awoyemi and Ajijola(2015), studied Impact of Cooperative Society on Fish

Farming Commercialization in Lagos State, Nigeria and discovered that cooperative society do
not function efficiently due to lack of managerial talent. The members or their elected
representative are not experienced enough to manage the society because of limited capital they
are not able to get the benefits of professional management. According to Ayegba and Ikani
(2013), the major limitations or challenges faced by agricultural cooperatives are high interest
rates, bureaucratic bottlenecks, late approval of loan, and unnecessary request for guarantors and
collateral. Philip, Nkonya, Pander and On (2009), stated that high interest rate and the short term
nature of loan with fixed repayment periods do not suit annual cropping and thus constitute a
hindrance to credit delivery. Although cooperatives have proved relatively successful in meeting
the credit needs of agricultural enterprises.

32
 CHAPTER-5

OBJECTIVE AND SCOPE

OF STUDY

33
OBJECTIVE OF STUDY :-
PRIMARY OBJECTIVE :-
To identified satisfaction level of farmers related to service provided by the bank.

SECONDARY OBJECTIVES :-
1. To know about paying capacity of farmers toward their liability.
2. To identify type of loan preference taken by farmers from bank.
3. To know about transactions of farmers with banks.
4. To identified views of farmers about service provided by banks.

SCOPE OF STUDY :-
The study is applicable to other district of agriculture credit. The agriculture credit policy
essentially lays emphasis on augmenting credit flow at the ground level through credit
planning, adoption of region-specific strategies, rationalization of lending policies, procedure
and bringing down the cost of borrowing. Bank credit is available to the farmers in the form
of short term for financing crop production program and in the form of medium term/ long
term credit for financing capital investment in agriculture and allied activities like land
development including purchase of land, minor irrigation, dairy development, animal
husbandry. Loans are also available for storage, processing, and marketing of agriculture
produce.

National Bank for Agriculture and Rural Development (NABARD) is an apex

Development Bank authorized for providing and regulating credit and other facilities for
the promotion and development of agriculture, small-scale industries, cottage and village
industries, handicrafts and other rural crafts and other allied economic activities in rural
areas with a view to promote integrated rural development and prosperity and for matters
connected therewith.

34
CHAPTER-6

RESEARCH

METHODOLOGY

35
MEANING OF RESEARCH :-
In common parlance, research refers to a search for knowledge. Research simply put, is an
endeavor to discover answers to problems (intellectual and practical) through the application of
scientific method. The Webster’s International Dictionary gives a very inclusive definition of
research as “as careful, critical inquiry or examination in seeking facts or principles, diligent
investigation in order to ascertain something". The 20th Century Chamber Dictionary defines
research as: a careful search or systematic investigation towards increasing the sum of
knowledge.

RESEARCH DESIGN:-
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.

TYPES OF RESEARCH :-
Research is broadly classified into two main categories:-

1.Quantitative Research:-
This research is based on numeric figures or numbers. Quantitative research aim to measure the
quantity or amount and compares it with past records and tries to project for future period. In
social sciences, “quantitative research refers to the systematic empirical investigation of
quantitative properties and phenomena and their relationships”. The objective of quantitative
research is to develop and employ mathematical models, theories or hypothesis pertaining to
phenomena.

2.Qualitative Research:-
Qualitative research presents non-quantitative type of analysis. Qualitative research is
collecting, analyzing and interpreting data by observing what people do and say. Qualitative
research refers to the meanings, definitions, characteristics, symbols, metaphors, and description
of things. Qualitative research is much more subjective and uses very different methods of
collecting information, mainly individual, in-depth interviews and focus groups.

Collection Of Data:-
We collect primary data during the course of during experiments in experimental research but in
case we do research of the descriptive type and perform survey, then we can obtain primary data

36
either through observations or through direct communication with respondent in one form or
another or through personal interview.

SOURCE OF DATA:-
Research need to consider the source on which to base and confirm their research and finding.
They have a choice between primary data and secondary source and use of both, which is termed
as triangulation or dual methodology.

1. Primary Source

2. Secondary Source

PRIMARY DATA:-
Primary data is the data collected by the researcher themselves, which is collected for first time
and fresh in nature.

SECONDARY DATA:-
Secondary data are those which have already been collected by someone else and have been
passed through statistical practice.

DATA COLLECTION METHOD-

The data collection method used in this research is questionnaire method. Here the data are
systematically recorded from the respondent.

RESEARCH TOOL:-
A structured questionnaire has been prepared to get the relevant information from the
respondent. The questionnaire consist of variety of question presented to the respondent for their
despondence.

SAMPLING SIZE:-
To fulfill the objective of study of 70 respondent was done.

SAMPLING PLAN:-
The farmers were contacted through questionnaire.

37
 CHAPTER-7

DATA ANALYSIS

AND

INTERPRETATION

38
 Q.1 which type of account do you maintain in bank ?

a) Current Account b) Fixed Deposit Account c) Saving Account

TABLE 1. Respondent having bank account

Current Account Fixed deposit Saving Account

account

No. of respondent 20 15 35

% No. of respondent
29 % 21 % 50 %

29%

50%
Current account
Fixed deposit account

21% Saving account

INTERPRETATION:-
A sample size of 70 individual was taken to know which type of account respondent maintain
in banks. Study reveal that 29% of respondent maintain current account in banks, 21%
respondent want to maintain fixed deposit account and 50% respondent want to maintain
saving account in different bank.

39
 Q.2 Which bank do you maintain your bank account ?
A) SBI B) HDFC C) PNB D) COOP. BANK E) OTHER BANK

Table.2. Respondent having accounts in different bank

SBI HDFC PNB COOP. OTHER TOTAL

BANK BANK
NO.OF
RESPONDENT 20 12 10 25 3 70

% OF NO. OF
RESPONDENT 29 17 14 36 4 100

4%
29%
SBI
36%
HDFC
PNB
17% Coop. Bank
14%
Other banks

INTERPRETATION:-
With the same size of sample under the objective to know that if an individual have a bank
account, then in which bank he maintain their account. It was observed that 36% farmer\other
individual have bank account in cooperative bank, 29% farmers maintain their account in
SBI, 17% farmers maintain their bank account in HDFC bank and 4%respondent maintain
their account in other banks like Yes bank, ICICI Bank.

40
Q.3. Farmers/ Other individual opinion toward deposit in
Bank ?
Table 3. Respondent opinion toward deposit.

FACTORS EXTERMERLY SATISFIED NEUTRAL DISSATISFIED

SATISFIED

No. of 20 35 10 5
respondent

% of no. of 29 50 14 7
respondent

Satisfaction

7%

14% 29%
Extremely satisfied
Satisfied
neutral
Dissatisfied

50%

INTERPRETATION:-
50% of the respondent approach were satisfied with the deposit of the cooperative bank,
following by 29% extremely satisfied, 14% are neutral and rest of the 8% is dissatisfied with
deposit.

41
Q.4 WHY DO YOU PREFER TO TAKE LOAN ?
Table 4 Respondent who prefer to take loan

Options To fulfill necessities Easily Available

No. of respondent 50 20

% 71 29

29%

To fulfill necessity
easily available

71%

INTERPRETATION:-
71% of the respondent approach were they take a loan to fulfill the necessities of life and 29%
respondent take a loan because loan is easily available to farmers on crops.

42
Q.5- Did Co-operative bank benefit for the farmers ?
a) Yes b) No

Beneficial Yes No Total

No. of respondent 45 25 70

% 64 36 100

36%

Yes
64%
No

INTERPRETATION:-
Present study reveal that 64% respondent view that cooperative banks is beneficial and 36%
respondent says that it is not benefited.

43
Q.6. Do Co-operative bank help the farmers to provide better

Quality seeds ?
a)Strongly Agree b)Agree c) Disagree d) Strongly Disagree

No. of respondent %
Strongly Agree 30 43
Agree 20 29
Disagree 12 17
Strongly Disagree 8 11

11%

17% Strongly Agree

43%
Agree
Disagree
Strongly Agree

29%

INTERPRETATION:-
Study reveal that 43% respondent strongly agree is cooperative societies provide better quality
seeds, 29% respondent agree, 17% respondent are disagree and 11% respondent strongly
disagree is view that cooperative societies does not provide better quality seeds.

44
Q.7. Are you satisfied with the service of your bank ?
A) Yes b) No C) Can’t say

No. of respondent %
Yes 50 72
No 10 14
Can’t say 10 14

14%

14%

Yes
No
Can't say
72%

INTERPRETATION:-
Study reveal that 72% respondent satisfied with service provided by cooperative bank, 14%
respondent are not satisfied and 14% respondent can’t say they satisfied with the service
provided by bank or not.

45
Q.8 Do co-operative bank help them to better market for the

Sale of their crops?

a) Strongly Agree b)Agree c) Disagree d) Strongly Disagree

No. of respondent %
Strongly Agree 30 43
Agree 18 26
Disagree 12 17
Strongly Disagree 10 14

14%

43%
17% Strongly Agree
Agree
Disagree
Strongly Agree

26%

INTERPRETATION:-
Study reveal that 43% respondent strongly agree is cooperative bank help them to sale of their
crops, 26% respondent agree, 17% respondent are disagree and 14% respondent are strongly
disagree.

46
Q.9 Which bank is preferred by Farmers/ others ?
a) Cooperative Bank b) PNB c) HDFC d) SBI e) Other bank

Preference No. of respondent %

Cooperative Bank 25 36
PNB 10 14
HDFC 12 17
SBI 20 29
Other Bank 3 4

preference

4%

36% coop. bank

29%
PNB
HDFC
SBI
Other banks

17% 14%

INTERPRETATION:-
Under the present study it was found that there are about 36% respondent who prefer cooperative
bank, which might be due to easiness, and other facilities provided by bank. on other side, there
were 14% people preferring PNB, 17% people prefer to HDFC bank, 29% people prefer to SBI,
and only 4% respondent who prefer to other banks.

47
Q.10- Are you satisfied with the amount and period of

Installments ?
a) Yes b)No c) Can’t say

Table- SATISFACTION OF FARMER WITH THE AMOUNT AND

INSTALLMENT PERIOD

FACTORS YES NO CAN’T SAY

NO.OF 40 20 10
RESPONDENT
PERCENTAGE 57% 29% 14%

14%

Yes

No
29% 57% Can't say

INTERPRETATION:-
Study reveal that 57% are satisfied with the amount and period of installment, 29% are not
satisfied, and the 14% can’t say about the period installment period.

48
Q.11 Why Farmer prefer to deposit money in public

Bank than private bank ?

a) Comfortable b) Safe c)Get more benefit d) All of above

Preference No. of respondent %

Comfortable 10 15
Safe 15 21
Get more benefit 15 21
All of above 30 43

preference

15%

43%
Comfortable
21%
Safe
Get more benefit
All of above
21%

INTERPRETATION:-
Study reveal that 15% respondent give more preference to public bank for deposit money
because public bank is comfortable for them, 21% respondent deposit money in public bank it is
more safe than private bank, 21% respondent prefer public bank to get more benefit and 43%
people prefer to public bank because it is comfortable, safe, and get more benefit.

49
 Q.12 DID INDIAN FARMER VISIT THEIR BANK REGURARLY?

FACTORS MONTHY QUARTERLY ANNUALLY SEMI-

ANNUALLY

No. of respondent 35 15 8 12

% 50% 22% 11% 17%

17%
Monthly
Quarterly
11% Annually
50%
Semi-annuall

22%

INTERPRETATION-
The above sub divided pie chart show that fifty percent respondent visit bank monthly, and
twenty two percent visit quarterly, elven percent farmer visit annually and 17% respondent visit
their bank semi-annually. It means most of respondent view that they visit bank monthly.

50
 CHAPTER-8

CONCLUSION

AND

RECOMMENDATIONS

51
FINDINGS:-
1. The purpose of this research is to find out the satisfaction level of farmers of cooperative

bank samalsar

2 72% farmers are satisfied with the service of cooperative bank and 14% respondent are

not satisfied with the service of bank.

3 Study reveal that 29% of respondent maintain current account in banks, and 50 respondent

want to maintain saving account in different bank.

4 71% farmers take loan from cooperative bank to fullfill the neccessities of life and 29%

famers take loan because it is easily available to farmers on their crops.

5 43% respondent deposit money in cooperative bank for get more benefit, safe, and it is

comfortable.

6 I find 64% respondent view that cooperative banks is beneficial and 36% respondent says

that it is not benefited.

7. 57% are satisfied with the amount and period of installment, 29% are not satisfied, and

the 14% can’t say about the period installment period.

8. 43% respondent strongly agree is cooperative bank help them to sale of their crops, and
14% respondent are strongly disagree.

9. 43% respondent strongly agree is cooperative societies provide better quality seeds and
11% respondent strongly disagree is view that cooperative societies does not provide
better quality seeds.

10. Under the present study it was found that there are about 36% respondent who prefer
cooperative bank, which might be due to easiness, and other facilities provided by bank.
and only 4% respondent who prefer to other banks.

52
SUGGESTIONS:-
1. Co-operative banking societies should be set up taking the local condition into
consideration. The co-operative farming ad marketing societies should make the
maximum use of local resource.

2. Fresh effort are warranted to create a cadre of trained dedicated and honest worker. The
government through either its own institution or through recognized agencies should play
an important role in this regard.

3. The weak and efficient co-operative societies should either be abolished and merged
with strong and efficient ones.

4. The number of multiple cooperative societies should be increased. All single purpose
societies converted into multiple societies.

5. Institutional credit should not only embarked for small farmers, tenants and share
cropper but also for landless workers and artisans.

6. Bank should try to implement and adopt to technological changes and start service like
Internent Banking through appes.

7. To reduce the waiting queues for most comman purpose of updating of pass book.

53
LIMITATION OF THE STUDY:-
1. Study is limited to concept of cooperative and agriculture credit.

2. The information collected from 70 respondent. So the scope of sample finding was less.

3. The response of farmers cannot be accurate as the problem of language and understanding
arise but these problems are not in all cases.

4. As the study was done within the limited time, I could not select a sufficient large sample for
the study.

5. The respondents were reluctant to give correct information.

6. The information provided by the respondent may be false which may not lead to the authentic
result.

54
 Conclusion

In India seventy percent of population lives in village. Since Agriculture has been playing an
important role in the Indian economy the need for institutional credit was emphasized. One of the
objective of planned economic development of our country is to achieve self sufficiency in
agriculture production. This can be achieved by the use of new farm techniques along with the
creation of necessary socio economic and institutional conditions conductive for rapid growth.
Hence the role of Agriculture finance in advancing Agriculture and raising of farm productivity
is of immense importance.

The Agricultural credit needs of farmers in our country are met both by non-institution and
institutional agencies. The important non-institutional agencies supplying credit to Agriculturists
are agriculture money lender, Professional money lender, trader, commission agencies etc. this
non-institutional credit agencies has often proved more harmful than beneficial to the farmers.

And, finally looking into the future, if co-operative credit institution were to play an effective
role in accelerating the pace of rural development, they must avert the escalating trend in over
views, endeavor to become viable units following high standard of efficiency, demonstrate that
the quality of their service and more attractive compared to their

55
CHAPTER – 9

BIBLIOGRAPHY

56
Books:-
1. Agnet (2004). Making Farm Credit Work for the Small Scale Farmers
2. Basu, Priya, “ Improving Access To Finance for Indian’s Rural Poor”, The

International Bank for Reconstruction and Development, The World Bank, NW Washington, DC
2006.

3. Ijere, M. O., (2008). Agricultural Credit and Economic Development. Lagos: Longman.
4. Agbo, F.U. (2009). Farmers‟ perception of cooperative societies in Enugu State, Nigeria.
Agro-Science Journal of Tropical Agriculture, Food, Environment and Extension. 8(3):
169-174.

WEBSITES:-

1. www.wikipedia.com

2.home.wfp,org/stellent/groups/public/document/enp/wfp035261.pdf.

3. http:/en.wikipedia.org./wiki/Agricultural_productivity.

4. http:/en.wikipedia.org./wiki/Ashoknagar_district.

5. ccb.moga@gmail.com.

57
CHAPTER – 10

ANNEXURE

58
Questionnaire
The central cooperative bank Ltd., Badhni kalan

Dear FARMER RESPONDENT

I am student of LAJPAT RAI D.A.V. COLLEGE, MOGA OF M.COM-2ndsem. I am conducting
research on “FARMER SATISFACTION AT CENTRAL COOPERATIVE BANK BADHNI
KALAN” I need your kind support to carry on my project. So please fill the following:-

Name of customer:

Address:

Contact no. :

Q.1 which type of account do you maintain in bank ?

a) Current Account

b) Fixed Deposit Account

c) Saving Account

Q.2 In which bank do you maintain your bank account ?

a) SBI

b) HDFC

c) COOPERATIVE BANK

d) ICICI

e) OTHER BANK

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Q.3 Farmer opinion toward deposit in bank ?

a) Extremely Satisfied

b) Satisfied

c) Neutral

d) Dissatisfied

Q.4. Why do you prefer to take loan ?

a) To fulfill necessities

b) Easily available

Q.5. Did Co-operative bank benefit for the farmers ?

a) Yes

b) No

Q.6. Do Co-operative bank help the farmers to provide better

Quality seeds ?

a) Strongly Agree

b) Agree

c) Disagree

d) Strongly Disagree

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Q.7. Are you satisfied with the service of your bank ?

a) Yes

b) No

c) Can’t say

Q.8 Do co-operative bank help them to better market for the

Sale of their crops?

a) Strongly Agree

b) Agree

c) Disagree

d) Strongly Disagree

Q.9 Which bank is preferred by Farmers/ others ?

a) COOPERATIVE BANK

b) PNB

c) HDFC

d) SBI

e) OTHER BANK

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Q.10- Are you satisfied with the amount and period of

Installments ?

a) Yes

b) No

c) Can’t say

Q.11 Why Farmer prefer to deposit money in public

Bank than private bank ?

a) Comfortable

b) Safe

c) Get more benefit

d) All of above

Q. 12 Did Indian Farmer visit their bank regularly ?

a) Monthly

b) Quarterly

c) Annually

d) Semi annually

DATE :-

SIGNATURE :-

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