CHAPTER 1

INTRODUCTION

Finance is the life blood for any organization. Business concerns needs finance to
meet their requirements in the economic world. Finance guides and regulates investment
decision and expenditure. The management of finance is an important activity, which
involves both short term and long terms planning. The goal of any organization is either
profit maximization or wealth maximization. This is achieved through better financial
management.

Financial statement contains a lot of accounting data. The financial statement do not
give all the information relating to the financial and operation performance of a firm.
Financial analysis only a summarized view of the financial and operate position of a firm.
Financial statement do not reveal important conclusions such as efficiency of the
management, strength and weakness of the firm, future progress etc. but if we analysis the
financial statement, we can draw conclusions from them. Thus it becomes necessary to
analysis financial statements in order to understand more about the profitability and financial
position of the firm. The financial performance of the organization is a descriptive concept.

Finance is the backbone of the organization and is always being disregarded in

financial decision making. Financial statements for banks present a different analytical
problem than manufacturing and service companies. As a result, analysis of a bank’s
somewhat unique risks. Banks take deposits for savers, paying interest of on some of these
accounts. They pass these funds on to borrowers, receiving interest on the loans. Their profits
are derived from the spread between the arte they pay for funds and the rate received from
borrowers.

Evaluation and interpretation of financial statement is an important management

accounting. Financial statement is the statement showing the financial position and results off
business operation at the end of the accounting period. Co-operative banks are institutions
established on the principle of co-operation and deal it in ordinary banking business. It is
formed to extend credit facilities to farmers and small scale industries. Co-operation bank is a
financial entity which belongs to its members who is at the same time the owners and the
customers of their bank. Co-operation bank is often created by persons belonging to the same
local or professional community or sharing common interest. Co-operation bank are deeply
rooted inside local areas and communities. They are involved in local development and
contribute to the sustainable development of their communities in which they exercise their
activities. A co-operation bank generally provides their members with a wide range of
banking and financial services (loans, deposits, banking accounts etc).

For financial analysis, it is necessary to rearrange the data contained in the financial
statement to get maximum information. These statements include the income statement,
balance sheet, and statement of cash flow statement of changes in equity. This method
involved specific technique for evaluation risk, performance, financial health and future
prospects of an organization. A number of techniques are used to undertake financial analysis
the important tools are used to undertake financial analysis the important tools are
comparative financial statements, cash flow analysis. This project makes use ratio analysis
and trend analysis and trend analysis for analysis was perhaps the first financial tool
development to analyze and interpret the financial statement.

Functions of co-operative bank

 Performs miscellaneous banking function

 Supervise and guide the affiliated societies
 Government assists the bank.
 To attract deposits from agricultural and non-agriculturists.
 Corporative banks issue shares of unlimited liability.
 In corporative banks, one shareholder has one vote whatever the number of shares he
may hold.

Service of co-operative bank

 Accept the deposits and funds from the member and distributes it as short term and
add-ones term loans to members.
 Purchasing feeds and selling of seed fertilizers, pesticides, and cattle feeds,
agricultural equipments etc to the members. Collections and clearing to bills from
members.
 Discounting of cheques and drafts to the customers.
 Helps in developing new types of seeds.
About the training

The internship program is an essential part of MBA and this report is prepared as a part of my
internship. Every student must take a three month attachment with an organization to take
part in different types of works. The organizational supervisor assigns the report and the
faculty advisor endorses the report. This assignment is given to collect practical knowledge
and experience of corporate life. I got the opportunity to complete my assignment in
Nedumon corporative bank.

Objective of the training

The main objective of the training:

 To study about the bank in which I was doing my internship training.

 The study was all about analyzing the financial performance of the nedumon co-
operative bank, and to understand the financial strength and weakness of the bank.
 The study was also about analysis of the financial statement which provides valuable
information for managerial decisions making. In the present scenario of economic
liberalization the co-operative banks have to start performers to stand up to the
competition and challenges caused by other banking institution.
 To apply knowledge in real-world field.
 To observe the purposes of general banking.
 Getting idea about how commercial bank works.
 To understand entire branch banking procedures.
 To gain practical experience that will help us in our practical life.
 To understand how other departments of the branch function.

 To know the strength and weakness of the bank.

 To understand in which sector the bank is working with proper efficiency

 To find out the problems of the bank and suggesting the way to solve the problems.

 To analyze the current performance and making future predictions.

Scope of the study

This report is based on my practical work experience with Nedumon corporative

Bank. It will also help the students to reduce the distinction between realistic and
hypothetical knowledge. This report significantly helped me a lot to understand the
atmosphere and environment of an organization. The scope of the study is neither deep of nor
wide only for the aware of different types which are relevant to day to day operations of this
bank are brought into the study. To know the trend activities happening in the bank and to
know how a bank or an organization works.

Period of study

The period of the study is conducted for a term of 4 weeks which is from 25th of may
till 25th of June.

Research methodology

Research

A research can be generally defined as a systematic method and finding solution to a

problem. The systematic approach concerning generalization and formulation of a theory
is also called a research.

Research Design

A Research design is the arrangement of condition for collection and analysis of data
in a manner that aims to combine relevance to research purpose with economy in
procedure.

Research Methodology

A system of models, procedures and techniques such techniques used to find the
result of research problem is called Research Methodology. A number of techniques or
devices are used to undertake different types of deposits.
 Primary Data Collection

The data collected as per the personal interview with the bank official like secretary
and head clerk of the bank.

Secondary Data Collection

The data from the documents, annual reports and audit reports of the bank, chart,
magazines and internet source etc…

Limitations of the study

 Lack of Time: As there was only three months to complete the report, it was almost
impossible to cover the performance of the bank fully, where a regular employee gets
awarded after 1 or 2 year of his probationary period.

 Limited data resources: All types of information were not available for access, so it
was not possible to access and summarize them properly. Though I had assistance
from other employees but it was not enough for me due to their high work pressure in
the bank. Some assumptions were made due to limited information, so there may be
some personal mistakes.

 Lack of experience: It was my first time, doing a report on a banking system in a

practical corporate life. So my limited experience was the main obstacle of this study.

 Privacy of Information: Every establishment has its secrecy that is not shared with
everyone. So this confidentiality of information was also an obstacle faced in this
study.
 CHAPTER-2

INDUSTRY PROFILE (CO-OPERATIVE BANKS)

Cooperative bank are owned by their members. The people who receive services from
them and are found in many industries. For example, more than electric cooperatives serve 42
million Americans. According to the national cooperative growers association, 30% of
farmers products are marketed through more than 3000 farmer owned cooperatives in
America.

In Banking 10000 credit unions provide financial services to 84 million members

across the nation. Cooperatives have also been formed to provide child care, insurance and
housing. Nearly 30000 cooperatives operate at 73000 locations nationally.

Robert Owen (1771-1858) is considered as the father of co-operative movement in

every year July 5th the co-operators are celebrate the co-operatives day. The year 2012 is
considered as the international co-operative year. In every year October 13-19 is celebrated as
co-operative week.

Main Function of Bank

The Bank offers:

 Term loans to industries especially to small-scale enterprises.

 Full-fledged commercial banking service including collection of deposit, short term trade
finance, working capital finance in processing and manufacturing units and financing
facilitating international trade.

 Technical support to Small Scale Industries (SSIs) in order to enable them to run their
enterprises successfully.

 Micro credit to the urban poor through linkage with Non –Government Organizations
(NGOs) with a view to facilitating their access to the formal financial market for the
mobilization of funds. In order to perform the above tasks, this bank works closely with its
clients, the regulatory authorities, the shareholders (GOB), banks and other financial
institutions.

Basic principles of co-operative bank

The cooperative movement traces its roots to a store started by weavers in the town of
Rockdale, England in 1844. The Rockdale model revolved around a set of guidelines drawn
up by one of its members, Charles Hogarth. When introduced into US by the national grange
in 1874, these ‘Rockdale principles’ forced a cooperative explosion.

Although started in many ways, the Rockdale principles hold that a cooperative must provide:

1.Voluntary and open membership

Cooperatives are voluntary organizations, open to all person able to use their service
and willing to accept the responsibilities of membership, without gender, social, racial,
political or religious discrimination.

2.Democratic member control

Cooperatives are democratic organizations controlled by their members, who actively

participate in setting policies and making decisions. The elected representatives are
accountable to the membership. In primary cooperatives, members have equal voting rights
and cooperatives at other levels are organized in a democratic manner.

3.Member’s economic participation

Members contribute equitably to, and democratically control, the capital of their
cooperative. At least part of that capital is usually limited the common property of
cooperative. Members usually receive limited compensation, if any, on capital subscribed as
a condition of membership. Members allocate surpluses for any or all of the following
purposes, developing the cooperative, possible by setting up reserves, part of which at least
would be indivisible; benefiting members in proportion to their transactions with the
cooperatives, and supporting other activities approved by the membership.

Autonomy and independence

Cooperatives are autonomous self-help organizations controlled by their members, if

they enter into agreements with other organizations, including governments, or raise capital
from external sources, they do so on terms that ensure democratic control by their members
and maintain their cooperative autonomy.

Education, training and information

Cooperative provides education and training for their members, elected

representatives, manager and employees. So they can contribute effectively to the
development of their cooperatives. They inform the general public, particularly young people
and opinion leaders, about the nature and benefits of cooperation.

Cooperation among cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative
movement by working together through local, national and regional and international
structures.

Concern for community

While focusing on member needs, cooperatives work for the sustainable development
of their communities through policies accepted their members.

Co-operative movement in foreign countries

Cooperative movement in England

 England is considered to be the birth place of the cooperative movement in the world.
Cooperation in the technical sense began in the world after the industrial revolution of 18th
century. As C.R. Fay put it, “it is a product of the economic and social conditions created by
the industrial revolution”. Dr. William King attached very great importance to cooperative
education. According to him, the acquisition of knowledge was a pre-requisite for the success
of cooperation. He believed that only men of knowledge could spread the message of
cooperation.

The first successful cooperative society in the world is said to be the Rockdale equitable
society started as early as 1844 at no.2 toad lane in Rockdale. Rockdale is situated near
Manchester in the north western part of England.

Co-operation in Germany

While England is considered to be the birth place of consumer’s cooperatives,

Germany can claim to be the cradle of credit cooperatives to the world. Therefore, both
England and Germany are pilgrim center for the cooperatives all over the world. Nicholson,
who was deputed to Europe to study the working of various cooperatives, ultimately
recommended the Raiffeisen type of societies in Germany to us. The cooperative movement
in India is greatly indebted to German cooperation.

Shulze Delitzsch born in a Nobel family in the city of Delitzsch in the year 1808. He
got the best education of the time. After graduation he joined the judicial service and thus he
became a judge in his native city. Delitssch. In 1852, he started another full-fledged
cooperative credit society in his native town which was a grand success. Thus, he laid the
foundation for the cooperative credit movement in German.

Co-operative movement in Italy

Cooperative in Italy was started as a socio-economic movement in last year of 19th

century. The credit for starting cooperative movement in Italy goes to Lusatia who was a
performer economics in an educational institution in Milan. Moved by the poverty of the
people, he began study the available on cooperation.

Co-operative movement in USA

 The cooperative movement in USA can be said to be very old. The movement
flourished in the field of agriculture at the beginning. Even today agriculture plays very
important role in the development of cooperatives in the USA. The first cooperative
organizations where known as ‘bees’.

Co-operative movement in India

The co-operative banks in India, co-operatives are organized teams of individuals and
jointly managed and democratically controlled enterprises. They exist to serve their members
and depositors and manufacture higher advantages and services for them. The principle of the
co-operation is as old as human society and it forms the basis of domestic and social life. It is
certainly a group instinct in man which enables him to live together, work together and help
each other in times of stress and strain. The history of modern civilization is in fact the
history of co-operation, for without it social and economic progress would have been
impossible.

Professionalism in co-operative banks reflects the co-existence of high level of skill

and standards in performing arts, duties to entrusted to a personal. Co-operative bank wants
current and future development in data technology. It’s so necessary for co-operative banks to
devote adequate attention for increasing their returns on each unit of resources through
effective services co-operative banks have completed a hundred years of existences in India.
They play a awfully necessary role within the financial set-up. The history of co-operative
banks goes back to the year 1904. In 1904, the co-operative credit society act was enacted to
encourage co-operative movement in India. However the event of co-operative bank
development was the formation and regulation of co-operative society. The government of
metropolis passed the primary state co-operative society act in 1925 “which not solely gave
the movement, its size and form but was a pace setter of co-operative activities and stressed
the thrift, self help and logistic assistance.

Cooperative movement in Kerala

The Kerala state was formed in 1956. Formally the state consisted three parts namely
Cochin, Travancore and Malabar. Area of Madras state in 1930, the Cochin act was passed.
According to these provisions of the first society organized in co-operative society Ltd.No, 1.
 In 1914 the Travancore co-operative society act was passed. The first society
registered by the name “Trivandrum central co-operative bank Ltd”. The Kerala co-operative
societies act 1969 is the law relating to the co-operative societies in the state. The act has
come into force on 15th may 1969. This new legislation specifically repeals the madras co-
operative society’s act 1932 as in force in the Malabar area of the madras state and the
Travancore Cochin co-operative societies act. The act has consolidated, amended and united
the law relating to the co-operative societies in the state. As a result of the amalgamation of
Travancore and cochin co-operative society was passed in 1952. Hence a common law Kerala
co-operative society’s act 1969 was passed.

Deposits schemes

Meaning of deposit

Deposits may be accepted at any time within in the limits determined under the Act
and rules, on such rates of interest and subject to such rules and regulation as may be
approved by the Board of Directors and also subject to the directives issued by the Reserve
Bank Of India in this behalf from time to time. All the deposits of the bank shall be insured
under DICGC (Deposit Insurance and Credit Guarantee Corporation) Act, 1961 and shall be
governed by the various section of the DICGC Act.

The bank shall follow all the instruction, guidelines and directives issued by Reserve
Bank of India from time to time in regarded to opening and conduct or monitoring of deposits
accounts.
 The society can accept deposit from members or non-members at any time. The deposit
may be of the following types.

1. Fixed deposit
2. Savings bank deposit
3. Current deposit
4. Recurring deposit

Fixed deposit

A fixed deposit is a financial instrument provided by Indian banks which provides

investors with a higher rate of interest than a regular savings account, until the given
maturity date. It may or may not require the creation of a separate account. It is known as a
term deposit or time deposit. Term deposit in India is used to denote a large class of
investment with varying levels of liquidity. The defining criteria for a fixed deposit are that
the money cannot be withdrawn for the FD as compared to a recurring deposit or a demand
deposit before maturity. Some banks may offer additional services to FD holders such as
loans against FD certificates at competitive interest rates. The interest rate varies between 4
and 11 percent. The tenure of an FD can vary from 10, 15 or 45 days to 1.5 years and can
be high as 10 years.

Advantages of Fixed Deposits

a) The money deposited by a depositor will be safe in the hands of the banker.

b) Depositors get high rate of interest.

c) It guarantees a high as well as steady income to the depositor.
d) The procedure for opening a fixed deposit is simple.
e) No introduction is needed to make a deposit.
f) The depositor can avail loan against fixed deposit in case of financial difficulties.
Disadvantages of Fixed Deposit

a) Not surprisingly, fixed deposit as a investments is less risky than this aspect in the
reason why its return are lower compared to other investment options.
 b) Then there is a issue of liquidity, while your money is locked up with the bank, it is
not easy to withdraw at a moment’s notice.
c) There is a no tax benefit in these investments, unlike the infrastructure bonds or the
National Savings Certificate. So even from taxation point is not the best of
investment options.

Savings deposits

Savings accounts are accounts maintained by retail financial institution that pay
interest but cannot be used directly as money in the narrow sense of a medium of exchange.
These accounts let customers set aside a portion of their liquid assets while earning a
monetary return. For the bank, money in a savings account may not be callable immediately
and in some jurisdictions, does not incur a reserve requirement, freeing up cash from the
bank’s vault to be lent out with interest.

Advantages of Saving Deposit

a) It is generally meant for the middle and low income groups who expect to learn a
reasonable rate of interest on their deposits.

b) In this deposit is to save money, open a savings account that does not have an ATM
card linked to it to make withdrawing the funds less convenient.
c) Automatic payments and deposits can be set up to manage the account, and your
employer can directly deposit money into the account.

d) In a saving bank deposit, a customer can any amount into the account.

e) It is mainly meant for non-trading customers.

Disadvantages of saving deposit

a) Certain restrictions are imposed on the withdrawal of deposit.

b) Saving deposit have the lowest interest returns of any place you can keep your money,
other than a checking account. If you are looking to make money on interest to make
money on interest, a saving account is not for you.

Current deposit
The board of directors may permit any person to open a current account. They amount can be
withdrawn by the depositor on demand without any previous notice . No restrictions are
amount and the number of withdrawn by special arrangement is dishonored .Deposit can be
made by pay-in-slips and withdrawals by cheque. These accounts are also called demand
deposit.

Advantages of Current Deposit

a) No restrictions are imposed on the amount and the number of withdrawals to be made
each day.

b) Transaction costs will be eliminate single currency in single market make sense.
c) It is generally meant for commercial and undertakings, public bodies etc…
Disadvantages of Current Deposit

a) No interest is allowed on current deposits.

b) Deposits can be made by pay-in-slips and withdrawal by cheque.

c) Account can be overdrawn by special arrangement with the bank. Cheques drawn
without such an arrangement is dishonored.
Recurring deposit

Recurring deposit are a special kind of term deposits offered by banks in India which
help the people with regular incomes to deposit a fixed amount every month into their recurring
deposit account and earn interest at rate applicable to fixed deposit. It is similar to making FDs of
a certain amount in a monthly installment, for example Rs.1000/- every month. Thus, recurring
deposit schemes allow customers with an opportunity to build up their savings through regular
monthly deposits of fixed sum over a fixed period of time.

Advantages of Recurring Deposit

a) In the deposit encourages regular saving habit among the people.

b) Recurring Deposit account holder can get in loan facility.

c) The bank may also invest such funds in profitable areas.
d) Rate of interest allowed on these deposits in relatively high.
Disadvantages of Recurring Deposit

a) No withdrawals are allowed before the expiry of the agreed period.

b) Under certain circumstance, account holders are allows to withdraw money even before
the expiry of the stipulated period. In such cases depositors have to fore go their interest
or sometimes they earn only a lower rate of interest.
 CHAPTER-3

COMPANY PROFILE
 CHAPTER-3

COMPANY PROFILE

The company in which I did my internship is Nedumon service Co-operation bank ltd
No.2720 and was established in 18 June 1947. The organization was registered as a primary
society with limited liability in Pathanamthitta district. Its operation shall be confined to
Ezhamkulam panchayath. The main objective is to meet the credit needs and promote savings
habit of the people. The bank helps for farmers especially small and marginal farmers and
weaker section of increasing the enhancing their employment, production, etc.

The main objective of nedumon service co-operative bank is to help improve the
economic and social condition of the weaker section of the community. It increases employment
opportunities and income of the income of the commodity as a whole. Branches are there in
Nedumon and Ezhamkulam.

Membership

A co-operative society is a union of capital. The members are real owners and they have
certain rights as well as duties. Membership of co-operative society should absolutely be
voluntary.

1. Only adult who have completed his age of 18 only available to become of the member.
2. Person with unsound mind are not entitles to be admitted as a member of the society.
3. To those individuals who are permanently residing within the jurisdiction of the
Nedumon service co-operative bank.

Address:

Nedumon service co-operative bank,

Adoor, Pattazi Rd,

Pathanamthitta,

Kerala.
Area of operation

The area of operation of the bank is confined to the Ezhamkulam Grama Panchayath.

Branch: Ezhamkulam and Nedumon.

Corporate Strategy of Nedumon corporative Bank Ltd

 Financing establishment of small units of industries and businesses and facilitate their
growth
 Small Balance Sheet size composed of quality assets
 Steady and sustainable growth
 Investment in a cautious way
 Adoption of new banking technology.

Organizational Goals of Nedumon corporative Bank

 To employ funds for profitable purposes in various fields with special emphasis on
small scale industries.
 To undertake project promotion to identify profitable areas of investment.
 To search for newer avenues for investment and develop new products to suit such
needs.
 To establish linkage with other institutions which are engaged in financing micro
enterprises.
 To cooperate and collaborate with institutions entrusted with the responsibility of
promoting and aiding SSI sector.
General body

 The general body which consist of the members of the bank the full right on all the
matters relating to the administration of the bank. In other words supreme management of
the bank elects the members of the director board and passes the budgets. Election and
removal of the board of directors
 The approval of the annual budget of income and expenditure
 The annual report due to registrar of co-operative societies
 The registrar annual audit certificate
 The expulsion of members and
 The return that may be prescribed by the state government
 The general body shall have authority to affiliate the bank to any co-operative union that
may be registered by the registrar or that is working in the neighborhood of the bank. The
general body meeting is compulsorily conducted once in a tear and all the important
decisions are taken on this general body meeting.

Powers of general body

 Conduct to the managing committee and dismiss the members of managing committee
 To conduct and decision on the annual accounts.
 To conduct the division of profit as per act, rules and bye-law.
 To pass the budget.
 Approval of annual reports.
 To discuss the other matters directed by the president.
 To dismiss a member.
Organizational structure

GENERAL BODY

BOARD OF DIRECTORS

PRESIDENT

VICE PRESIDENT

SECRETARY

ASSISTANT SECRETARY

INTERNAL AUDITORS

SENIOR CLERK

JUNIOR CLERK

ATTENDER
1. General body

The management bodies of the Company are the General Meeting of shareholders, the Board of
Directors, the Management Board and the Director General. The Management Board is the
collegial executive body of the Company. Its competence includes all governance issues of the
current activity of the Company, except the issues attributed to the exclusive competence of the
General Meeting of shareholders or the Board of Directors.

2. Board of directors

The Government holds 100 percent ownership of the bank. The Government appoints all the
Directors of the Board. The Secretary of the Ministry of Industries is the Chairman of the Bank.
Other Directors of the Bank are high government and central bank executives.

3. President

A bank president is a financial services executive who oversees banking operations, planning,
policies and practices as well as a variety of other strategic objectives set forth by the Chief
Executive Officer and Board of Directors of a consumer bank.

4. Vice-president

A vice president of a bank is responsible for generating profits for his institution, which
requires increases in deposits and loans among both residential and business customers. Some
specialize in investments and asset protection while others have more internal auditing
responsibilities.

5. Secretary

Bank secretaries have an important organizational role at their banking institutions. They
generally work a standard 40-hour week supporting the bank’s senior manager. In larger banks,
especially those in urban areas, they may support a department or multiple managers. In addition
to regular secretarial skills, bank secretaries need a working knowledge of financial processes,
procedures, terminology, and software.
6.Assistant secretary

A secretary, or administrative assistant, who works for a manager performs the same tasks as any
office assistant. The focus of the job, however, is one particular manager and his projects, as
opposed to an entire staff or department in a company. Duties include handling verbal and
written communications, preparing documents, organizing the office and managing projects. The
manager to which a secretary attends is typically a mid-level manager who supervises a team of
employees, as opposed to a high-level executive.

7. Internal auditors

Internal auditing is an independent, objective assurance and consulting activity designed to add
value to and improve an organization's operations. It helps an organization accomplish its
objectives by bringing a systematic, disciplined approach to evaluate and improve
the effectiveness of risk management, control and governance processes.

8.Seniour clerk

Senior Clerk Responsibilities and Duties. Perform clerical duties in senior capacity to ensure
smooth functioning of a business unit. Execute and supervise administrative tasks on a day-to-
day basis. Maintain and manage the office properties and assets in an organized manner.

Department details

There are 5 departments in the bank.

They are:

1. Deposit section.
2. Withdrawal section.
3. Loan section.
i. Gold loan section.
ii. Ordinary loans
4. Audit section.
Deposit section:

Saving account

A savings account is an interest-bearing deposit account held at a bank or other financial

institute on that provides a modest interest rate. Financial institutions that offer savings
accounts may limit the number of withdrawals from an account each month. The main service
given by the bank is depositing the person’s money in the bank. The bulky amounts are kept in
the bank’s locker.

In fact they provide many services like locker’s where we can keep the top confidential matters
in it. For example: - gold, property details, etc. The bank also provides other services too.

Process of starting a saving account :-

 Forms to be filled (KYC document).

 2 photos- one in the KYC document and one in the passbook.
 Aadhar copy.
 Minimum balance -250 rupee.

Other than making an account, they also deals with cash inflow and outflow as well.

Fixed deposit

A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which

provides investors a higher rate of interest than a regular savings account, until the given
maturity date. It may or may not require the creation of a separate account.

In fixed deposit the amount gets doubled if it crosses 102 months.

Withdrawal section

Withdraw means the taking back of the cash from that particular person’s account for
their personal use. This can be done only if the account has sufficient balance in it. This is why
the banks are for. They keep the amount safe and provide whenever needed by the account
holder.

Loan:

Loan is an amount which is given to the members of the bank or the account holder for
their purpose and is given at some certain criteria’s which is decided by the bank. It is to be
repaid by the person after some predetermined period demanded by the bank. The repaying
amount is paid on the interest of the loan amount. There are so many items which is necessary
things which we to look into for applying loan. They are:-

i) Items which is in need if land is kept as guarantee:-

1. Real evidence/current evidence of the property.

2. Previous evidence of the property.
3. Possession certificate.
4. Sketch and plan of the property.
5. Liability certification (15 years).
6. Voter id copy.
7. Ration card copy.
8. Passport size photo.
9. Tax paid evidence.

ii) Items for Person as guarantee:-

1. 2 guarantees without liability.

2. Any form of identification (voter’s id).
3. Ration card copy.
4. Tax paid evidence.

There are so many types of loan. They are:

  Guarantee loan-
Amount up to 20 lakhs. Interest- 11%.
 Vehicle loan-
80% of the vehicles price. Interest-11%
 Ladies loan-
Amount -50000, interest-11%
 Purchase loan-
Interest- 11%
 Agriculture loan-
Interest -7%
 Business loan(For small scale business)-
Amount given on daily basis.

And almost a year the bank provides about 500 loans.

Process of taking up a loan;-

 Application
 Committee is held whether to pass the application or not.
 Items which is to be submitted by the applicant.
 Property valuation by the advocate.
 Registration of the property.
 GEHAN {sec 36(A)} and trust certificate.
 Advocate note.
 Submission it to the bank.
Gold loan:

These types of loan are given on surrendering the gold to the bank. The amount is given
on the bases of the current rate of the gold.

Current rate- rupees 2000.

Audit:

Auditing is the evaluation of the financial records in the bank. It is done by an auditor
assigned by the bank. The auditor basically looks into the cash inflow and cash outflow of the
bank. The auditing is done on yearly basis. There are two types of auditors. They are:-

 Single auditor- audits only one or two banks.

 Group auditor-audits more than two to many banks.

There are two tests which is done in the auditing process.

They are-

 1st test
 2nd test

1st test- This test which is done by the auditor of the company.

2nd test- This test is done by the assistant registrar in which it evaluates whether the audit which
is done by the auditor is correct or not

The auditor sends the report to the registrars and further they do the evaluation. There are two
registrars. They are:-

 Assistant registrars- this registrars represents taluk

 Joint registrars-this registrar represents the village

If any mistakes are found by the registrars. It is send back to the bank for further rectification.
And then from the bank they will make another audit report stating that the mistakes have been
rectified and certified. It can further move on with the procedure. The certification is kept with
the bank and with both the registrars.

Shares of the bank

Serial no Companies name Amount
1 Pathanamthitta corporative bank 27552000
2 Kollam village trading corporative store 1000
3 Pathanamthitta village trading corporative store 2000
4 Ezhamkulam agricultural marketing corporation 3700
5 Chatannur spinning mill 300
6 Koodal rubber marketing corporation 2000
7 IFCO 1000
8 Kannur corporative hospital 15000
9 Pandalam rubber marketing corporation 1000
10 Pazhakulam agricultural marketing 5000
11 Literature corporation 2000
12 Pathanamthitta village corporative hospital and 1000000
research centre
Total 3788200
Current status of the company:

Detail 2011- 2012- 2013- 2014- 2015- 2016- 2017-

2012 2013 2014 2015 2016 2017 2018
Account 9225 9343 9509 9983 10142 10299 10444
holder
Amt of 6277435 6809395 8518155 10038045 11589760 13303550 15525000
shares
purchas
ed
Deposite 35211921 39498288 4294425 48434730 56782350 64354938 64962417
d 8 5 77 4 0 0 65
amount
Amt of 28616073 33304623 3393006 31678990 32118000 30245295 33426176
loan 6 9 17 3 0 8 5
given
Workin 36771245 41092539 4431631 50102650 58525333 66182091 67402734
g capital 1 5 77 6 9 0 2

Account holder

Years No of a/c holders

2013-14 9509
2014-15 9983
2015-16 10142
2016-17 10299
2017-18 10444

443163177
800000000
700000000
600000000
500000000
400000000
443163177
300000000
200000000
100000000
0
2014-15 2015-16 2016-17 2017-18
Amt of shares purchased

Years amount
2013-14 8518155
2014-15 10038045
2015-16 11589760
2016-17 13303550
2017-18 155255000

443163177
800000000
700000000
600000000
500000000
400000000
443163177
300000000
200000000
100000000
0
2014-15 2015-16 2016-17 2017-18

Deposited amount

Years amount
2013-14 429442577
2014-15 484347304
2015-16 567823500
2016-17 643549380
2017-18 649624613

800000000

700000000

600000000

500000000

400000000
Series1
300000000

200000000

100000000

0
1 2 3 4 5

Amt of loan given

years amount
2013-14 339300617
2014-15 316789903
2015-16 321180000
2016-17 302452958
2017-18 334261765
 800000000

700000000

600000000

500000000

400000000
Series1
300000000

200000000

100000000

0
1 2 3 4 5

Working capital

Year Amount
2013-14 443163177
2014-15 501026506
2015-16 585253339
2016-17 661820910
2017-18 674027342

800000000

700000000

600000000

500000000

400000000
Series1
300000000

200000000

100000000

0
1 2 3 4 5
Budget for 2019-2020
Income 2017-2018 2017-2018 2019-2020
Expected income Original income Expecting income
Interest 61000000 00 54066393 00 61500000 00
received
Income 400000 00 27967 90 300000 00
from
trading
Other 240000 00 1785935 67 2500000 00
sources
income
Interest 26000000 00 23759658 00 25000000 00
from
bank
Profit 2400000 00 2350141 35 3000000 00
from
mutual
fund
Total 92200000 00 81990095 92 92300000 00

Work done:

First two weeks

The first day it was quite hard for me to adjust with the environment but then the other
employees were friendly and helpful which made me to do the work with confidence. The first
two weeks I started my work in the accounts section. The work for me was to crosscheck the
documents of the person when they are going to start an account.

There are two types of account:-

Saving account
 A savings account is an interest-bearing deposit account held at a bank or other financial
institute on that provides a modest interest rate. Financial institutions that offer savings
accounts may limit the number of withdrawals from an account each month. The main service
given by the bank is depositing the person’s money in the bank. The bulky amounts are kept in
the bank’s locker.

In fact they provide many services like locker’s where we can keep the top confidential matters
in it. For e g :- gold, property details, etc. The bank also provides other services too.

So for starting an account the documents needed are:

Process of starting a saving account:-

 Forms to be filled (KYC document).

 2 photos- one in the KYC document and one in the passbook.
 Aadhar copy.
 Minimum balance -250 rupees.

KYC document includes all the general detail of the person. For eg:-name, address, mobile no
etc.

Fixed deposit

A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which

provides investors a higher rate of interest than a regular savings account, until the given
maturity date. It may or may not require the creation of a separate account.

In fixed deposit the amount gets doubled if it crosses 102 months.

Withdrawal section
 Withdraw means the taking back of the cash from that particular person’s account for
their personal use. This can be done only if the account has sufficient balance in it. This is why
the banks are for. They keep the amount safe and provide whenever needed by the account
holder.

Next two weeks

The next two week I worked in loan section where I was told to crosscheck the
documents in a loan procedure. Loan is an amount which is given to the members of the bank or
the account holder for their purpose and is given at some certain criteria’s which is decided by
the bank. It is to be repaid by the person after some predetermined period demanded by the bank.
The repaying amount is paid on the interest of the loan amount. There are so many items which
is necessary for applying a loan. They are:-

i) Items which is in need if land is kept as guarantee:-

1. Real evidence/current evidence of the property.

2. Previous evidence of the property.
3. Possession certificate.
4. Sketch and plan of the property.
5. Liability certification (15 years).
6. Voter id copy.
7. Ration card copy.
8. Passport size photo.
9. Tax paid evidence.

ii) Items for Person as guarantee:-

1. 2 guarantees without liability.

2. Any form of identification (voter’s id).
3. Ration card copy.
4. Tax paid evidence.
There are so many types of loan. They are:

 Guarantee loan-
Amount up to 20 lakhs. Interest- 11%.
 Vehicle loan-
80% of the vehicles price. Interest-11%
 Ladies loan-
Amount -50000, interest-11%
 Purchase loan-
Interest- 11%
 Agriculture loan-
Interest -7%
 Business loan(For small scale business)-
Amount given on daily basis.

And almost a year the bank provides about 500 loans.

Process of taking up a loan;-

 Application
 Committee is held whether to pass the application or not.
 Items which is to be submitted by the applicant.
 Property valuation by the advocate.
 Registration of the property.
 GEHAN {sec 36(A)} and trust certificate.
 Advocate note.
 Submission to the bank.

Things I learned from the internship:-

 I came to know how an organization works

 I got a practical exposure of the theoretical knowledge.
 I got the confidence of taking up a work after giving a proper training.
  I became responsible of my work.

Problems which I faced during internship

As I was new to the company, it was quite difficult for me to get through but afterwards I
gathered confidence and started doing my work. The employees of the organization helped in
getting adjusted with the environment and also helped me in many ways.

The employees also helped me in clearing all the doubts and also held me hand by hand in each
and every problematic time. It also helped me to grow in my work.
 CHAPTER 4

SWOT ANALYSIS

CHAPTER 4

SWOT ANALYSIS

SWOT analysis is a strategic planning technique used to help a person or organization

identify strength, weakness, opportunities, and threats related to business competition or projects
planning. It is intended to specify the objectives of the business venture or project and identify
the internal and external factors that are favorable and unfavorable to achieving those objectives.
Users of a SWOT analysis often ask and answer questions to generate meaningful information
for each category to make the tool useful and identify their competitive advantage. SWOT has
been described as the tried-and-true tool of strategic analysis, but has also been criticized for its
limitations.

The name is an acronym for the four parameters the technique examines.

 Strength: characteristics of the business or projects that give it an advantage over others.

 Weakness: characteristics of the business that place the business or project at a

disadvantage relative to others.

 Opportunities: elements in the environment that the business or project could exploit to
its advantage

 Threats: elements in the environment that could cause trouble for the business or project.

STRENGTH

The bank has a ethical policy which prevents it from investing in companies involved in arms
trade, genetic engineering, fossil fuel extraction etc. the ethical policy is part of the banks
constitution

 The bank offers a variety of retail banking services such as current accounts, mortgages,
loans, credit cards, investments etc.
 The bank caters to a wide customer base including individuals, businessmen, corporate
customers etc.
 The bank provides its customers with latest facilities like internet banking facility and
mobile banking facility.

WEAKNESS

 The bank had to face a severe financial crisis which saw it being taken over by US hedge
funds.

 Moody’s downgraded its credit rating by 6 notches to junk category.

  The bank has recently closed a lot of its branches and also terminated its off shore
activities

OPPORTUNITIES

 The bank has come up with schemes such as the “golden hello” to win back customers
after its 2013 financial crisis.

 The bank should introduce new products and schemes to bring in new customers. It
should also build relationships with existing customers to retain them.

 The bank should come up with better governance and be more transparent, in order to
restore customer confidence in the process of the bank.

THREATS

 A more robust accounting system needs to be put in place. It was found that the bank had
a hole in its finances. Such scandals can erode customer confidence in the bank.

 Default risk which is the risk that the bank may run into losses due to the counter party
defaulting on their liabilities.

 A bad economic outlook can cause serious damage to the financial situation of the bank.

 The bank faces threat of running out of capital to run its day to day business due to the
severe financial crisis it is going through.
 CHAPTER 5

FINDINGS

CHAPTER 5

FINDINGS

 Account holders have increased in the last five years.

 Share price have increased comparing with all the previous years
 Working capital has also increased.
  Long term loans have increased and in the previous years they have started giving gold
loan.
 Fixed deposit was the co-operative bank increased year to year. 81% of fixed deposit
has increased within 5 years.
 Saving deposit shows increasing trend in last 3 years.
 Fixed deposit constitute higher portion in the total deposit of the bank. It is a profitable
source of income for the bank.
 Compare the every year; we can understand savings habit of the people increasing year
to year.
 Working capital has also increased.
 The expected income from other source is 240000 but the actual income is 1785935
which is much higher than the expected income.

SUGGESTIONS

The government should invest more funds to share capital of co-operative banks. So the
government many sponsored programs should implement through co-operative banks. However,
in Kerala co-operative credit structure is strong when we compared to other states. More funds
must be allotted from financial institutions like NABARD, state co-operative bank, etc. sufficient
staff with computer knowledge must appoint, to provide better working conditions to the staff
and the ATM facilities given to members are also improving the efficiency of the co-operative
banks.

CONCLUSION

The Nedumon co-operative service bank made a significant and remarkable progress in
its banking business and affair. There are many reasons for the successful operation of the bank.
First one of the reason is less complicity involves in the affairs of getting loan and starting
account. The hard working attitude of the staff is another remarkable factor. In the
industrialization area, bank is recommended to start lending loans for small scale industrial
purpose and self employment. It is also suggested that the bank may extended its operation to all
the objectives mentioned in the bye-law.

During the four weeks period, I have spent in Nedumon co-operative bank, I have
received full co-operation from the secretary and staffs of this bank. I can see the cordial and
friendly relationship between the staff of the bank and their approach to the customers and
affectionate way in which they treated and honored me is really memorable.

BIBLIOGRAPHY

JOURNALS

 Annual reports of TSC bank from 2013-2014 to 2017-18

WEBSITES
 http//:economictimes.com

 http//:Wikipedia.org