A

REPORT
ON
GENERAL STUDY
OF
THE SUTEX CO – OP BANK LTD.
AT SURAT

SUBMITTED TO:

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

G. H. Bhakta Management Academy

IN PARTIAL FULFILMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER
OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Faculty Guide
Dr Namrata Khatri

Submitted By

Rachita Zadoo

VEER NARMAD SOUTH GUJARAT UNIVERSITY

SURAT.
 VERR NARMAD SOUTH GUJARAT UNIVERCITY

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

CERTIFICATE

This is the certify that Ms. Rachita Zadoo. has successfully completed summer training program
at The Sutex Co – Op Bank Ltd.as a part of MBA curriculum under the guidance of Dr. Namrata
Khatri. The duration of this training was from 18/05 / 2020 to 04/07 / 2020

Her work is found to be of the standard require for summer training of MBA curriculum

Dr. Namrata Khatri

(Project Supervisor)

Dr. Renuka Garg

(Head of Department)
 DECLARATION
I, the undersigned Rachita Zadoo the student of Department of Business and Industrial
Management, G. H. Bhakta Management Academy hereby declare that this report is my own
work carried out under supervision and guidance of Dr. Namrata Khatri.

This report has not been published anywhere. This has been undertaken for the purpose of
partial fulfillment of Veer Narmad South Gujarat University requirement for the award of the
Degree of Master of Business Administration.

DATE : _______________

PLACE : _______________ (Rachita Zadoo)

 ACKNOWLWDGEMENT

I am Rachita Zadoo the student of Department of Business and Industrial Management, G. H.

Bhakta Management Academy, Surat, very sincerely thankful to Dr. Namrata Khatri who give
her valuable guidance to make the report in the best way and giving me the much needed support
and full cooperation for my making my report.

I would like to extend my gratitude to Veer Narmad South Gujarat University and DBIM, for
giving me the opportunity to increase our practical knowledge in the field of banking at Sutex
Co – Op bank Ltd.. I also thank all the professors and staff of the institute for their valuable
guidance and help throughout the project.

Last but not the least, we are also thankful to all the people who helped me directly and indirectly
in making this report successfully.
 EXECUTIVE SUMMARY

This report is about my summer internship program with the Sutex Co – Op Bank Ltd.

The Sutex Co-op Bank Ltd. was started journey with its establishment on 15th May, 1972.its
name was The Surat Textile Traders Co-Op. Bank Ltd. Banks registered office address is
Surajram Bachkaniwala Bhavan, Nr.Navjivan Circle, Udhan Magdalla Road, Surat. The Sutex
Co-op Bank Ltd. in the initial stage started with only 270 share - holders and Rs. 1.10 lacs share
capital. The Sutex Co-op Bank Ltd. has in total 18 branches and a administrative office.

In this report you will find the detail about the bank industry in india and also about the Sutex
bank right from its incorporation to the current position. Along with it, the processes, policies
and procedures of the bank are also discussed in detail. In this report you will find about the
different services and loans that can be provided by the Sutex Bank. In this report you will also
find about the Human Resource Department and the Financial analysis of bank.

Sutex Co-Op Bank Ltd. provide all modern and advanced services and facilities to customers
such as CBS facility, SMS Alerts, E-statements, E-tax payments, ATM services, RTGS/NEFT
facility, Stamp Franking etc. Attractive rates on various schemes of F.D. are offered by them.
Recurring Scheme is also available with attractive rate of interest. Kanya Utkarsh Yojana
Recurring Deposit scheme is specially designed for girl child which offers special rate of interest.
 TABLE OF CONTENTS
Sr. No. Particulars Page No.
1 Chapter 1 : INDIAN BANKING INDUSTRY

1.1. Introduction

1.2. Historical Background

1.3. General Banking scenario in India

1.4. Structure of Indian Banking Industry

2 Chapter 2: SUTEX CO-OP BANK LTD

2.1.Introducation to urban co-op bank

2.1.1. Under state parview

2.1.2.Duality of control

2.1.3.Recent develop

2.2.Overview of bank

2.3.Services

2.3.1.Accounts & Depoists

2.3.2.Loans

3 Chapter 3: REVIEW OF LITERATURE

4 Chapter4: RESEARCH METHDOLOGY

5 Chapter 5: DATA ANALYSIS

4 Chapter 4 : Conclusion
 CHAPTER 1 : INDIAN BANKING INDUSTRY

The banking industry in India has a huge canvas of history, which covers the traditional banking
practices from the time of Britishers to the reforms period, nationalization to privatization of
banks and now increasing numbers of foreign banks in India. Therefore, Banking in India has
been through a long journey. Banking industry in India has also achieved a new height with the
changing times. The use of technology has brought a revolution in the working style of the
banks.

Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people
on the institution remain the same. The majority of the banks are still successful in keeping
with the confidence of the shareholders as well as other stakeholders. However, with the
changing dynamics of banking business brings new kind of risk exposure.

INTRODUCTION

We has witnessed that the World Economy is passing through some intricate circumstances as
bankruptcy of banking & financial institutions, debt crisis in major economies of the world
and euro zone crisis. The scenario has become very uncertain causing recession in major
economies like US and Europe. This poses some serious questions about the survival, growth
and maintaining the sustainable development.

However, amidst all this turmoil India‘s Banking Industry has been amongst the few to
maintain resilience. The tempo of development for the Indian banking industry has been
remarkable over the past decade. It is evident from the higher pace of credit expansion,
expanding profitability and productivity similar to banks in developed markets, lower
incidence of non- performing assets and focus on financial inclusion have contributed to
making Indian banking vibrant and strong. Indian banks have begun to revise their growth
approach and re-evaluate the prospects on hand to keep the economy rolling.

The globalization and Liberalization of Indian economy has led to restructuring of the
development finance institutions. Radical change has been underway in Indian economy since
July, 1991. The nation has dealt with the utmost determination, the issues of both stabilization
and structural reforms. Fiscal reforms, exchange rate adjustment, monetary targets and
inflation control constituted immediate measures for macro-economic stability supported by
structural reforms in the form of industrial deregulation, trade liberalization, liberalization of
foreign direct investment, restructuring the public sector and financial sector.
The Indian Banking System has passed through three distinct phases in the last three
decades. While Seventies witnessed the banking transformation from Class Banking to
Mass Banking, 1980s was the period of consolidation and Nineties the era of financial
sector reforms. The macro-economic crises faced by the country in 1991 paved the way for
extensive financial sector reforms. Despite impressive expansion of banking system in the
seventies and eighties, there was a general consensus that it has not become sound and
vibrant as it needed to be. By 1990, there was cause for serious concern on account of poor
financial condition of commercial banks, some of which had already become unprofitable,
under-capitalized and with high level of non-performing loans.

1.2. HISTORICAL BACKGROUND

Bank of Hindustan was set up in 1870; it was the earliest Indian Bank. Later, three
presidency banks under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay
and Bank of Madras were set up, which laid foundation for modern banking in India. In
1921, all presidency banks were amalgamated to form the Imperial Bank of India. Imperial
bank carried out limited number of central banking functions prior to establishment of RBI. It
engaged in all types of commercial banking business except dealing in foreign exchange.

Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was constituted
as an apex body without major government ownership. Banking Regulations Act was passed
in 1949. This regulation brought RBI under government control. Under the act, RBI got wide
ranging powers for supervision & control of banks. The Act also vested licensing powers &
the authority to conduct inspections in RBI.

In 1955, RBI acquired control of the Imperial Bank of India, which was renamed as State
Bank of India. In 1959, SBI took over control of eight private banks floated in the erstwhile
princely states, making them as its 100% subsidiaries.

It was 1960, when RBI was empowered to force compulsory merger of weak banks with the
strong ones. It significantly reduced the total number of banks from 566 in 1951 to 85 in
1969. In July 1969, government nationalised 14 banks having deposits of Rs. 50 crores &
above. In 1980, government acquired 6 more banks with deposits of more than Rs.200
crores. Nationalisation of banks was to make them play the role of catalytic agents for
economic growth. The Narasimha Committee report suggested wide ranging reforms for the
banking sector in 1992 to introduce internationally accepted banking practices. The
amendment of Banking Regulation Act in 1993 saw the entry of new private sector banks.

Banking industry is the back bone for growth of any economy. The journey of Indian Banking
Industry has faced many waves of economic crisis. Recently, we have seen the economic
crisis of US in 2008-09 and now the European crisis. The general scenario of the world
economy is very critical.

It is the banking rules and regulation framework of India which has prevented it from the
world economic crisis. In order to understand the challenges and opportunities of Indian
Banking Industry, first of all, we need to understand the general scenario and structure of
Indian Banking Industry.

1.3. GENERAL BANKING SCENARIO IN INDIA

The general banking scenario in India has become very dynamic now-a-days. Before pre
liberalization era, the picture of Indian Banking was completely different as the Government
of India initiated measures to play an active role in the economic life of the nation, and the
Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed
economy. This resulted into greater involvement of the state in different segments of the
economy including banking and finance.

The Reserve Bank of India was nationalized on January 1, 1949 under the terms of the
Reserve Bank of India (Transfer to Public Ownership) Act, 1948. In 1949, the Banking
Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate,
control, and inspect the banks in India." The Banking Regulation Act also provided that no
new bank or branch of an existing bank could be opened without a license from the RBI, and
no two banks could have common directors. International Journal of Business Research and
Management (IJBRM), Volume (3) : Issue (1) : 2012 20 By the 1960s, the Indian banking
industry had become an important tool to facilitate the speed of development of the Indian
economy. The Government of India issued an ordinance and nationalised the 14 largest
commercial banks with effect from the midnight of July 19, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery.
With the second dose of nationalization, the Government of India controlled around 91% of
the banking business of India. Later on, in the year 1993, the government merged New Bank
of India with Punjab National Bank. It was the only merger between nationalized banks and
resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until
the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth
rate of the Indian economy.

In the early 1990s, the then Narasimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. The next stage for the Indian
banking has been set up with the proposed relaxation in the norms for Foreign Direct
Investment, where all Foreign Investors in banks may be given voting rights which could
exceed the present cap of 10%, at present it has gone up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were
used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The
new wave ushered in a modern outlook and tech-savvy methods of working for traditional
banks. All this led to the retail boom in India. People not just demanded more from their
banks but also received more.

1.4. STRUCTURE OF INDIAN BANKING INDUSTRY

The Reserve Bank of India (RBI) is India‘s central banking institution, which controls the
monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 during the
British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934 and in
1949 it was nationalized.

The Central Office of the Reserve Bank was initially established in Calcutta but was
permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and
where policies are formulated. Sir CD Deshmukh is the first Governor of RBI. The RBI has
four Zonal offices at Chennai, Delhi, Kolkata, Mumbai and 20 regional offices mostly located
in the state capitals and 11 sub-offices.

Reserve Bank of India Act, 1934 is the legislative act under which the Reserve Bank of India
was formed. This act along with the Companies Act, which was amended in 1936, were meant
to provide a framework for the supervision of banking firms in India.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank
as: ―to regulate the issue of Bank notes and keeping of reserves with a view to securing
monetary stability in India and generally to operate the currency and credit system of the
country to its advantage‖.

RBI HIERARCHY
RBI is managed by Central Board of Directors. It is the main committee of the Central Bank.
The Board consists of a Governor, and not more than four Deputy Governors, four Directors
to represent the four regional boards, two from the Ministry of Finance and 10 other directors
from various fields which accounts to 21 members in total.

The Government of India appoints the Governor and Deputy Governors for a period of 5 years
and the directors for a 4-year term. Two of the four Deputy Governors are traditionally taken
from RBI‘s Executive Directors. One is nominated from among the Chairpersons of public
sector banks and the other is an economist. An Indian Administrative Service officer can also
be appointed as Deputy Governor of RBI and later as the Governor of RBI as with the case of
Y. Venugopal Reddy.

At present the bank is headed by the Governor and the post is currently held by economist
Urjit Patel. There are 3 Deputy Governors BP Kanungo, N S Vishwanathan and Viral
Acharya.

CENTRAL BOARD

The Reserve Bank‘s affairs are governed by a central board of directors. The board is
appointed by the Government of India in keeping with the Reserve Bank of India Act. Its
functions are General superintendence and direction of the Bank‘s affairs.

LOCAL BOARD

Local Boards consists of one each for the four regions of the country in Mumbai, Calcutta,
Chennai and New Delhi appointed by the Central Government for a term of four years. It
advises the Central Board on local matters and to represent territorial and economic interests
of local cooperative and indigenous banks; to perform such other functions as delegated by
Central Board from time to time.

FINANCIAL SUPERVISION

The Reserve Bank of India performs this function under the guidance of the Board for
Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of
the Central Board of Directors of the Reserve Bank of India. The Primary objective of BFS is
to undertake consolidated supervision of the financial sector comprising commercial banks,
financial institutions and non-banking finance companies. This is one of the important point to
learn from this Banking Structure in India PDF.

LEGAL FRAMEWORK

It is administered by Reserve Bank of India. Its main functions are Monetary Authority,
Regulating and supervising of the financial system, Managing of Foreign Exchange, Issuing
of currency and other Developmental roles.

TRAINING ESTABLISHMENTS

It has five training establishments-Two, namely, College of Agricultural Banking and

Reserve Bank of
India Staff College are part of the Reserve Bank. Others are autonomous, such as, National
Institute for Bank Management, Indira Gandhi Institute for Development Research (IGIDR),
Institute for Development and Research in Banking Technology (IDRBT).
SUBSIDIARIES OF RBI

 Deposit Insurance and Credit Guarantee Corporation (DICGC)-1978 for the purpose of
providing insurance of deposits and guaranteeing of credit facilities.

 National Bank for Agriculture & Rural Development (NABARD) is set up as an apex
Development Bank-1982 for facilitating credit flow for promotion and development of
agriculture, cottage and village industries

 National Housing Bank (NHB), was set up on 9 July 1988 under the National Housing Bank
Act, 1987.

 Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)-1995 prints bank notes
(Indian rupees) for Reserve Bank of India (RBI). It has two presses in Mysore and
Salboni.

SCHEDULED & NON SCHEDULED BANKS

Scheduled Banks in India refer to those banks which have been included in the Second
Schedule of Reserve Bank of India Act, 1934. Banks not under this Schedule are called Non-
Scheduled Banks. In other words, Banks with a reserve capital of less than 5 lakh rupees
qualify as non-scheduled banks. Unlike scheduled banks, they are not entitled to borrow from
the RBI for normal banking purposes, except, in emergency or ―abnormal circumstances.‖

Coastal Local Area Bank Ltd (Vijayawada, AP), Capital Local Area Bank Ltd (Phagwara,
Punjab), Krishna Bhima Samruddhi Local Area Bank Ltd (Mahbubnagar, Telangana),
Subhadra Local Area Bank Ltd (Kolhapur, Maharashtra) are the only Non-Scheduled Banks in
India.
Scheduled Banks are further internally classified into Commercial Banks and Co-operative
Banks.

COMMERCIAL BANKS

A commercial bank is a type of financial institution that provides services such as accepting
deposits, making business loans, and offering basic investment products to the general public
and to companies.

CO-OPERATIVE BANKS

A bank that holds deposits makes loans and provides other financial services to cooperatives
and member-owned organizations. A merchant bank is historically a bank dealing in
commercial loans and investment. In modern British usage it is the same as an investment
bank.

PUBLIC SECTOR BANKS

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a
government. The shares of these banks are listed on stock exchanges. There are a total of 21
PSBs in India and State Bank of India group.
In 1969, the Indira Gandhi-headed government nationalized 14 major commercial
banks(Allahabad
Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of
India, Dena
Bank, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank, Punjab National Bank,
Syndicate Bank, UCO Bank, United Bank of India)

In 1980, a further 6 banks were nationalized (Andhra Bank, Corporation Bank, New Bank of
India, Oriental Bank of Commerce, Punjab & Sindh Bank, Vijaya Bank).

IDBI Bank is an Indian government-owned financial service company, formerly known as

Industrial Development Bank of India, headquartered in Mumbai, India. It was established in
1964 and Nationalized in the year 2005.

PRIVATE SECTOR BANKS

The ―private-sector banks‖ are banks where greater parts of share or equity are not held by
the government but by private shareholders. There are many Indian and Foreign Private Banks
in India. HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, IDFC Bank,
RBL Bank, Federal Bank, City Union Bank are the major private banks in India. There are
also several foreign banks in India mainly operating in urban areas and Metropolitan Cities.

REGIONAL RURAL BANKS

Regional Rural Banks were formed on Oct 2, 1975 upon the recommendations of M.
Narasimham
Working Group during the tenure of Indira Gandhi‘s government. The objective behind the
formation of RRBs was to serve large unserved population of rural areas and promoting
financial inclusion. They have been created with a view to serve primarily the rural areas of
India with basic banking and financial services. However, RRBs may have branches set up
for urban operations and their area of operation may include urban areas too.

CO-OPERATIVE BANKS

The Co-Operative Banks are further classified into:

• State Co-Operative Banks

• Urban/Central Co-Operative Banks

• Primary Credit Societies

• State Co-Operative Banks

State Co-Operative Banks are small financial institutions which are governed by regulations
like Banking Regulations Act, 1949 and Banking Laws Cooperative Societies Act, 1965. At
present there are about 33 State Co-Operative Banks of which 19 are scheduled.
The term Urban Co-operative Banks (UCBs) refers to primary cooperative banks located in
urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-
agricultural purposes. This distinction does not hold today. These banks were traditionally
centered around communities, localities work place groups. They essentially lent to small
borrowers and businesses. There are about 2,104 UCBs of which 56 were scheduled banks.
About 79 percent of these are located in five states, – Andhra Pradesh, Gujarat, Karnataka,
Maharashtra and Tamil Nadu.

Primary Credit Societies (or) Primary Agricultural Credit Society (PACS) is a basic unit and
smallest co-operative credit institutions in India. It works on the grassroots level (gram
panchayat and village level). It virtually function like banks, but whose net worth is less than
Rs.1 lakh; who are not members of the payment system and to whom deposit insurance is not
extended.
 CHAPTER 2 : SUTEX CO – OP BANK LTD

2.1. INTRODUCTION TO URBAN COOPERATIVE BANK

The Urban Co-operative Banks, refers to co-operative banks located in Urban & semi-urban
areas. These Banks till 1996 were allowed to lend money only for non-agricultural purposes.
This distinction does not hold today. These banks were traditionally centered around
communities, localities work place groups. They essentially lent to small borrowers and
businesses. Today their scope of operations has widened considerably.

The first known mutual aid society in India was probably the ‗Anyonya Sahakari Mandali‘
organized in the erstwhile princely State of Baroda in 1889 under the guidance of Vithal
Laxman also known as Bhausaheb Kavthekar.

The enactment of Cooperative Credit Societies Act, 1904, however, gave the real impetus to
the movement. The first urban cooperative credit society was registered in Canjeevaram
(Kanjivaram) in the erstwhile Madras province in October, 1904. Amongst the prominent
credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No.1 Military
Accounts Mutual Help Cooperative Credit Society in Poona (January 9, 1906). Cosmos in
Poona (January 18, 1906), Gokak Urban (February 15, 1906) and Belgaum Pioneer (February
23, 1906) in the Belgaum district, the
Kanakavli-Math Co-operative Credit Society and the Varavade Weavers‘ Urban Credit
Society (March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most
prominent amongst the early credit societies was the Bombay Urban Co-operative Credit
Society, sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on January
23, 1906.

The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad
basing it to enable organization of non-credit societies. The Maclagan Committee of 1915 was
appointed to review their performance and suggest measures for strengthening them. The
committee observed that such institutions were eminently suited to cater to the needs of the
lower and middle income strata of society and would inculcate the principles of banking
amongst the middle classes. The committee also felt that the urban cooperative credit
movement was more viable than agricultural credit societies. The recommendations of the
Committee went a long way in establishing the urban cooperative credit movement in its own
right.

In the present day context, it is of interest to recall that during the banking crisis of 1913-14,
when no fewer than 57 joint stock banks collapsed, there was a there was a flight of deposits
from joint stock banks to cooperative urban banks. Maclagan Committee chronicled this event
thus:

―As a matter of fact, the crisis had a contrary effect, and in most provinces, there was a
movement to withdraw deposits from non-cooperatives and place them in cooperative
institutions, the distinction between two classes of security being well appreciated and a
preference being given to the latter owing partly to the local character and publicity of
cooperative institutions but mainly, we think, to the connection of Government with
Cooperative movement‖.

2.1.1. UNDER STATE PURVIEW

The constitutional reforms which led to the passing of the Government of India
Act in 1919 transferred the subject of ―Cooperation‖ from Government of
India to the Provincial Governments. The

Government of Bombay passed the first State Cooperative Societies Act in

1925 ―which not only gave the movement its size and shape but was a pace
setter of cooperative activities and stressed the basic concept of thrift, self help
and mutual aid.‖ Other States followed. This marked the beginning of the
second phase in the history of Cooperative Credit Institutions.

There was the general realization that urban banks have an important role to
play in economic construction. This was asserted by a host of committees. The
Indian Central Banking Enquiry

Committee (1931) felt that urban banks have a duty to help the small business
and middle class people. The Mehta-Bhansali Committee (1939),
recommended that those societies which had fulfilled the criteria of banking
should be allowed to work as banks and recommended an Association for
these banks. The Co-operative Planning Committee (1946) went on record to
say that urban banks have been the best agencies for small people in whom
Joint stock banks are not generally interested. The Rural Banking Enquiry
Committee (1950), impressed by the low cost of establishment and operations
recommended the establishment of such banks even in places smaller than
taluka towns.

The first study of Urban Co-operative Banks was taken up by RBI in the year
1958-59. The Report published in 1961 acknowledged the widespread and
financially sound framework of urban cooperative banks; emphasized the need
to establish primary urban cooperative banks in new centers and suggested that
State Governments lend active support to their development. In 1963, Varde
Committee recommended that such banks should be organised at all Urban
Centres with a population of 1 lakh or more and not by any single community
or caste. The committee introduced the concept of minimum capital
requirement and the criteria of population for defining the urban centre where
UCBs were incorporated.
2.1.2. DUALITY OF CONTROL

However, concerns regarding the professionalism of urban cooperative banks

gave rise to the view that they should be better regulated. Large cooperative
banks with paid-up share capital and reserves of Rs.1 lakh were brought under
the perview of the Banking Regulation Act 1949 with effect from 1st
March, 1966 and within the ambit of the Reserve Bank‘s supervision. This
marked the beginning of an era of duality of control over these banks. Banking
related functions (viz. licensing, area of operations, interest rates etc.) were to
be governed by RBI and registration, management, audit and liquidation, etc.
governed by State Governments as per the provisions of respective State Acts.
In 1968, UCBS were extended the benefits of Deposit Insurance.

Towards the late 1960s there was much debate regarding the promotion of the
small scale industries.

UCBs came to be seen as important players in this context. The Working

Group on Industrial

Financing through Co-operative Banks, (1968 known as Damry Group)

attempted to broaden the scope of activities of urban co-operative banks by
recommending that these banks should finance the small and cottage
industries. This was reiterated by the Banking Commission (1969).
The Madhavdas Committee (1979) evaluated the role played by urban co-
operative banks in greater details and drew a roadmap for their future role
recommending support from RBI and Government in the establishment of such
banks in backward areas and prescribing viability standards.

The Hate Working Group (1981) desired better utilization of banks' surplus
funds and that the percentage of the Cash Reserve Ratio (CRR) & the
Statutory Liquidity Ratio (SLR) of these banks should be brought at par with
commercial banks, in a phased manner. While the Marathe Committee (1992)
redefined the viability norms and ushered in the era of liberalization, the
Madhava Rao Committee (1999) focused on consolidation, control of sickness,
better professional standards in urban co-operative banks and sought to align
the urban banking movement with commercial banks.

A feature of the urban banking movement has been its heterogeneous character
and its uneven

geographical spread with most banks concentrated in the states of Gujarat,

Karnataka, Maharashtra, and Tamil Nadu. While most banks are unit banks
without any branch network, some of the large banks have established their
presence in many states when at their behest multi-state banking was allowed
in 1985. Some of these banks are also Authorized Dealers in Foreign
Exchange
2.1.3. RECENT DEVELOPMENTS

Over the years, primary (urban) cooperative banks have registered a significant
growth in number, size and volume of business handled. As on 31st March,
2016 there were 2,104 UCBs of which 56 were scheduled banks. About 79
percent of these are located in five states, - Andhra Pradesh, Gujarat,
Karnataka, Maharashtra and Tamil Nadu.
2.2. OVERVIEW OF BANK

The Sutex Co-op Bank Ltd. proud journey started with its establishment on 15th
May,1972.

At the prime time of opening The Sutex Co-op Bank Ltd. its name was The Surat Textile
Traders Coop Bank Ltd. Banks registered office address is Surajram Bachkaniwala Bhavan,
Nr.Navjivan Circle,
Udhan Magdalla Road, Surat. In the year 1972 Bank‘s Establisher Chairman Late Shri
Surajram Bachkaniwala and Vice Chairman late Shri Ashabhai Shankarbhai Patel having a
prosperous vision to provide a golden & profitable market to Surat‘s Textile Industry,
registered the Bank at a cooperative level. The Sutex Co-op Bank Ltd. provided services
with a view to help Surat Textile Market shop keepers with Banking facilities and help
them start and manage their businesses.

The Sutex Co-op Bank Ltd. in the initial stage started with only 270 share holders and Rs.
1.10 lacs share capital. As on 31st March 2016 number of share holders crossed 33426 and
share capital of Rs. 3373.34 lacs. As on 31st MAR 2016 Bank has crossed a total deposits
of Rs. 1476 crores and total advances of Rs.882 crores.

The Sutex Co-op Bank Ltd. has in total 18 branches and a administrative office.
The Bank started with only four employees and as on today it has a big circle of 265
employees. Bank has been providing up to date training to all employees of different levels.
All The Sutex Co-op Bank Ltd. branches are well organized and completely computerized
and is one of the leading Bank‘s across South Gujarat. The Sutex Co-op Bank Ltd. was the
first Bank to provide ATM facilities through co-op. sector to its customers. In Surat City
Bank provides complete Core Banking Facilities to its customers. It may be noted that the
Core Banking Solution was completed in just 3 months period which included
14 branches and a admin office which showed a positive approach and proof of
determination of The Sutex Co-op Bank Ltd. Staff. With CBS(Core Banking Solution)
facilities Banks valued customers now can avail all kinds of Banking services and facilities
from any branch.
The Bank considers its customers as a valued customer and provides top level Banking
services which has made the Bank very popular among the customers. Due to this Bank‘s
deposits has always increased. Country‘s economical changes, inflation, share market
drips ,yield on High interest rates in mutual funds had very less effect on the Bank.

Bank leads not only in providing Banking facilities but also is very active in social services.
As we know our Surat has been hit several times by natural calamities like floods where
Bank has instantly helped its customers without a delay. During the Floods in Surat in the
years 1994, 1998 and 2006 Bank provided Loans to those who took severe damages within
24 hours which was noteworthy.

Under technology up-gradation scheme of Indian Government‘s textile industry, The Sutex
Co-op Bank Ltd. has got approval to provide direct advances and loans. The Sutex Co-op
Bank Ltd. was the first Bank to achieve such approval across the nation under Urban Co-op.
Banks Category.

Under the TUF (Technology Up-gradation Fund) scheme Bank has advanced a total of
Rs.400 crores and have helped receiving fast subsidy‘s to its shareholders which has
resulted in strengthening our countries overall economy. For this achievement Bank has
received a honorable certificate by the Ministry of textile.
BOARD OF DIRECTOR

Sr. No Name Position

1 Shri Kamal Vijay R. Tulsian Chairman

2 Shri Arunkumar B. Kanodiya Vice Chairman

3 Shri Nirmal Varjilal Vakharia Executive Chairman

4 Shri Nimeshbhai S. Bachkaniwala Jr. Exec. Chairman

5 Shri Ravindrabhai B. Dholabhai Secretary

6 Shri Prabhatsinh F. Solanki Secretary

7 Shri Krutik U. Hathiwala Secretary

8 Shri Jyotindrabhai B. Lekhadia Director

9 Shri Manharlal R. Bachkaniwala Director

10 Shri Hasmukhlal B. Mistry Director

11 Shri Sharadbhai C. Kapadia Director

12 Shri Rajbhai M Kapadia Director

13 Shri Ashvin J. Desai Director

14 Shri Bhikhubhai M. Desai Director

15 Shri Dilipbhai J. Dhamanwala Director

 16 Shri Purnimaben A. Desai Director

17 Shri Vaishnaviben M. Desai Director

POLICY AND OBJECTIVE OF SUTEX O – OP BANK LTD

BANK POLICY

The Sutex Co-Op Bank Ltd. are committed to cater customer through dedicated efforts with
common goal of TOTAL CUSTOMER SATISFACTION, through

 Providing the best quality services

 Utilizing the competent manpower
 Providing in time respond
 Implementing the latest technological utilities
 Continual improvement in Quality Management System
BANK OJECTIVE

 To achieve an increase in total business by 20% in the financial year 2018 – 19

 To deliver the service on time every time
 To reach the non - performing assets to zero level
 To reach to the Customer satisfaction
 To increase the employee competency level by providing training
 To maintain the RBI rating on grade
2.3. SERVICES
Sutex Co-Op Bank Ltd. provide all modern and advanced services and facilities to
customers such as
CBS facility, SMS Alerts, E-statements, E-tax payments, ATM services, RTGS/NEFT
facility, Stamp Franking etc. Attractive rates on various schemes of F.D. are offered by
them. Recurring Scheme is also available with attractive rate of interest. Kanya Utkarsh
Yojana Recurring Deposit scheme is specially designed for girl child which offers special
rate of interest.

Moreover, Free Accidental Life Insurance Policy is provided by them to each and every
Current / Savings / Share Holders of their bank. Meetings with valued customers of the
bank are held at regular intervals. Share holders of bank are also provided benefits under
Members Upliftment Scheme in the form of cash prizes to their children in education
achievements, financial aid in hospital bills etc.

In Loans and Advances area, Sutex Co-Op Bank Ltd. bank provides all kind of finance such
as
Machinery Loan, Housing Loan, Vehicle Loan, Cash Credit, Consumer Loan, Loan against
NSC / KVP / RBI Bond / Life Insurance Policy etc. It is a leading banks in Technology Up -
gradation Fund Loans. The total TUF subsidy claimed by us during the year 2010-11
amounts to Rs.445.70 lacs. For development of textile sector we provide TUF loans at
lowest rates around 11% to 12%. They provide education loan to female student at
discounted rate of 9% to 12% and Loan Sanction process is very speedy and simple without
any kind of prejudice.

They open ―No Frills‖ account at minimum balance for the economically backward class
such as labours, workers, hawkers etc. Such services provided by Sutex Co-Op Bank Ltd.
bank are as given below :

E-PAYMENT OF TAXES
The e-payment facility was launched by the IT department for payment of direct taxes
online by taxpayers. As a result of this, taxpayers can now choose from two modes of
payment for direct taxes (i) physical mode i.e. payment made by producing the hard copy of
the challan at the authorized bank and
(ii) e-payment mode i.e. making payment via net-banking with any of the authorized banks.

• Mandatory E-payment
Some taxpayers are not permitted to use the physical mode of tax payment, rather
they can only pay taxes through the e-payment mode. All non-corporate taxpayers
who are liable to get their accounts audited under Section 44AB of the Income Tax
Act. Anyone who does not fall in the mandatory category can choose to voluntarily
pay his or her taxes through the e-payment route. It is always advisable to select the
e-payment mode since it saves both time and efforts.

• Requirements for Making E-payment

In order to pay taxes through the e-payment route, one needs to have a net banking
enabled account with an authorized bank. In case the assesse does not hold a net
banking enabled account, the individual can make e-payment through the account of
another person, however, the tax should be paid in his or her name.
• Benefits of E-payment of Income Tax
There are many benefits of choosing the e-payment mode for payment of income
tax. Some of these advantages are:

 E-payment of income tax is time saving, simple and safe. It can be done any time
from any place.

 The amount will be instantly transferred from your bank account.

 You can enquire whether the Income Tax Department has received the tax amount
on the official website of the IT Department.

 Details of the e-challan will be sent directly to the Income Tax Department. The
bank will not have to go through any data entry.

 A receipt for tax payment is issued right away when the income tax amount is
deducted from the online bank account

• Taxes That Can Be Paid Electronically

A taxpayer can use the e-payment mode for paying the following direct taxes:

1. Income-tax
 2. Corporate tax
3. Equalization Levy

4. Securities Transaction Tax (STT)

5. Tax deducted at source (TDS)

6. Tax collected at source (TCS)

7. Wealth-tax and other direct taxes like gift tax, expenditure tax, etc.

Sutex Bank Provides facility to customers / taxpayers to make E-payments of all Direct
Taxes. Customers can avail this facility from any bank branch of Sutex Bank. All
transmission are processed through NSDL-TIN(Tax information Network) website which
are encrypted with Secure Socket Layer (SSL) authentication.

RTGS(REAL TIME GROSS SETTLEMENT) / NEFT(NATIONAL ELECTRONIC FUND

TRANSFER)

• RTGS Transfer

RTGS means Real Time Gross Settlement which is an electronic payment system
managed by Reserve Bank of India that allows interbank transfer of funds on a real
time basis. In RTGS, the fund transfer takes place on a real time basis and it is one
of the fastest interbank money transfer facility in India:

The facility of money transfer is available only for domestic transactions between
banks within the country.

Customers initiating RTGS transfer are required to have IFSC(Indian Financial

System Code) code of the beneficiary bank, account number, name of the bank,
account holder's name.

The receiving and initiating bank branches are required to be RTGS enabled for
transaction processing.

The beneficiary bank has to credit the recipient's account within 30 minutes of
receiving the funds transfer message.
RTGS is allowed for large value transactions with minimum transaction amount of
Rs. 2 lakh.

RTGS timings- The Funds transfer request through RTGS Net Banking mode can be
made only from 08:00 am to 04:00 pm, from Monday to Friday and on Saturdays
(excluding second and fourth).

If the funds are not credited to the receiver's account due to any reason, the funds
will be returned to the originating bank within 1 hour or before the end of the
transaction day.

RTGS transactions can also be scheduled in advance within a timeframe of 3

working days. The individuals can use RTGS facility for payments for cash
management, hedging, interest on loans, securities, suppliers, taxes, trade
transactions and trade settlement payment.

 RTGS is one – on – one settlement

 For RTGS minimum transfer limit is Rs. 2 lakh and maximum transfer has no
limit

 NEFT Transfer

NEFT means National Electronic Fund Transfer which is a nationwide

electronic payment system allowing quick interbank transfer of funds. The
transactions between banks are processed and settled in batches of one hour on
netting off basis. Hence, time to transfer the funds can range between 1-2 hours.
This facility is provided by 63000 banks across the country and allows
remittance to Nepal as well. It can also be used for payment of credit card dues.

The settlement is not in real time as RTGS but it is done on hourly basis. The
amount is credited in the beneficiary's account within two hours.

NEFT timings - The transaction timing is from 8 AM to 6:30 PM (Monday to

Friday) and 8 AM to 1 PM on Saturdays.

There is no NEFT limit on the minimum or maximum amount that can be

transferred through NEFT.

There is an upper limit of Rs. 50,000 per transaction for cash based remittance.
Such customers have to furnish full details including complete address,
telephone number, etc.

To transfer funds from remitting account to beneficiary account, a form needs to

be filled with beneficiary details (account no., account holder name, IFSC code,
 amount to be transferred and account type). This form is available on all NEFT
branches and can also be found online using internet banking and mobile
banking services.

The remitting bank starts the transaction and sends the message to NEFT central
service.
The service center takes the message and forwards it to NEFT clearing centre
(controlled by
RBI) with next batch details available for transaction. The clearing centre sorts
the transaction destination bank wise and creates accounting entries to receive
funds from remitting bank to transfer funds to beneficiary bank. The destination
bank receive message from the clearing centre to pass the credit to beneficiary
customer‘s account.

SMS ALERT

Sutex Bank SMS Alerts provides both push mode as well as pull mode facilities. Once
registering for our SMS alerts services customers shall receive Various Premium Alerts
Such as pull mode alerts, balance inquiry, last five transactions, loan A/c last five
transactions, cheque status, loan A/c balance, push mode alerts, cheque returns, balance
minimum & maximum alerts, birthday & anniversary alerts, account Transaction alerts,
RTGS / NEFT alerts, etc.

ADVANTAGE TO SENIOR CITIZEN

Senior Citizens are an asset to our society. They have given their hard worked years for the
development of the entire nation and our community. At this crucial age they need to be
taken care of and make them feel special. Sutex Bank Provides Benefits to Senior Citizens
By Providing1% Extra On Fixed Deposits Of 1 Year And Above.

ATM SERVICE
Sutex Bank was the first Co-operative bank in Surat to provide ATM Services to its
customers. They offer The Best of Rupay Card Services where in all ATM transactions can
be performed from 2,16,425 NFS ATM's Across India. ATM services include cash
withdrawal, fast cash, balance inquiry, mini statement, pin change, etc.

LOCKER SERVICE

Sutex bank provides safe deposit locker facilities to keep our valuables at a safe and secure
place.
Availability of lockers in various size and dimension. Locker charges are depend upon the
time period.
SUTEX BANK ATM CUM DEBIT CARD SERVICE

In this service we can avail the ATM Withdrawal facility with over 2,16,425 NFS ATM‘s
across the country with Sutex bank ATM card. We can swipe our ATM Card on more than
11,56,573 Rupay Enabled POS Terminals. Also we can use our ATM Cum Debit Card for
Below Mentioned Facilities:

 Utility Bill Payment through Sutex Bank Debit Card.

 DTH Recharge.

 Mobile Pre-Paid Recharge.

 Online Shopping Portals such as Flipkart,Snapdeal Etc.

UPI (UNIFIED PAYMENTS INTERFACE) SERVICE

Sutex Bank Announces Its UPI Services. Now send and receive money through UPI fast &
easy. You can transfer money to any person, wallet or pay utility bills. Start using the UPI
services by linking you account with UPI through various application such as Amazon Pay,
PayTM, MobiKwik, PhonePe. Various popular portals like Amazon, Flipkart etc now
accepts payment mode as UPI.

STAMP FRANKING SERVICE

If you have to make a document legally binding, you will need to pay stamp duty charges.
Most people who have availed a Home Loan at one time or another will be aware of these
charges. However, there is also something called franking. This is done to make a document
legal.

Stamp duty is a tax that is levied on legal documents, including those that involve the sale of
immovable property. The amount of stamp duty could either be fixed or it could be a
percentage of the sale value in the case of property documents.

Franking for documents is very similar. Document franking is a process where an authorised
bank or a franking agent will place a stamp on your document. This stamp indicates that all
the stamp duties have been paid for that document.

How does franking work?

In case you want to frank a document, you need to print the agreement on plain paper.
Before executing the agreement (signing the papers), you will have to take it to an
authorised bank or franking agency.
They will provide you with an application form. You will have to fill the form, pay the
stamp duty and get a stamp affixed on the document to indicate the amount of stamp duty
paid.

For this purpose, a franking machine will be used. This machine uses a special adhesive
stamp to affix the stamp on the document. You can sign or execute the document once the
franking is done.

What are the pros and cons of franking?

The advantage with franking is that it can be done very quickly if you pay the charges and
stamp duty using cash or demand draft.

There are several drawbacks if you want to use franking to stamp your documents. Franking
agents and banks ask you to pay the franking charges in cash for small amounts and pay
order for bigger amounts.

All authorized agents or banks don‘t follow the same rules for franking. The rules may vary
between states and also from one agent to another within a state.

Franking is available only for limited working hours and only during weekdays. Also, not
all bank branches of an authorized bank have franking machines. The most important thing
is that each of the authorized banks have something known as a ‗franking quota‘.

You might need to inform the bank well before the transaction is made to ensure that you
get the benefit of franking.

What are the charges for franking?

Franking charges differ from one state to another. Each state will have its own minimum
amount that needs to be paid for franking. While some charge a flat fee, there are others that
charge a percentage of the sale value in case of property documents. However, franking
charges are usually only a fraction of stamp duty charges and are sometimes adjusted
against stamp duty charges

If you decide to buy a house for Rs. 60 lakhs, you will have to pay 0.1% or Rs. 6,000 as
franking charges. You can adjust this against the stamp duty that you need to pay. Suppose
the stamp duty for the agreement is 4.5%, then, you will have to pay only 4.4%. Note that
for simple transactions, the franking charges can be as low as Rs. 50. It is mandatory to pay
stamp duty for a legal document and you can be fined if you don‘t pay it. Franking, on the
other hand, is a process that is used to stamp the legal document. This is the process used to
affix any type of mark or stamp to a paper to indicate that the stamp duty has been paid.
Sutex Bank Provides Government authorised adhesive stamp franking services. The
franking of stamp will be carried out only after the receipt of cash or subject to realization
of cheque/pay-order/draft IMPS (IMMEDIATE PAYMENT SERVICE)

IMPS is an innovative real time payment service that is available round the clock. This
service is offered by National Payments Corporation of India (NPCI) that empowers
customers to transfer money instantly through banks and RBI authorized Prepaid Payment
Instrument Issuers (PPI) across India.

IMPS means Immediate Payment Service was publicly launched on November 22, 2010 as
an instant inter-bank electronic fund transfer service through mobile phones. Later, it has
been extended to other electronic channels such as ATM, Internet Banking, etc. The IMPS
helps you to access your bank account and transfer funds instantly and securely.

It is managed by the National Payments Corporation of India (NPCI). The beneficiary

account is credited immediately when a fund transfer request is made from your side.

IMPS timings - This service is available 24x7, throughout the year including Sundays and
any bank holidays. There is no minimum IMPS limit on transactions done through IMPS.
Banks have specified different maximum limits on per day transactions.

IMPS fund transfer is secure and uses two-step authentication to perform transactions. The
first step of security is your mobile number and second is MMID. MMID means Mobile
Money Identifier. It is a seven digit unique number which you get when you register for
mobile banking at your bank branch. MMID along with your mobile number is required to
transfer money through mobile banking or IMPS. Customers can receive SMS confirmation
on their mobile number for every credit or debit in their account.

SUTEX BANK Offers IMPS services to the customers where customers have to register
one time for the service and shall in turn receive a unique MMID and MPIN to receive
money from any person who have his/her MMID or a internet banking account or Mobile
banking facility.

What are the benefits of IMPS?

 Instant
 Available 24 x7 (functional even on holidays)
 Safe and secure, easily accessible and cost effective
 Channel Independent can be initiated from Mobile/ Internet / ATM channels
 Debit & Credit Confirmation by SMS
What are the services available under IMPS?

Funds Transfer and Remittances

 1. Sending Money

2. Receiving Money
CORE BANKING SOLUTION (CBS)

Core Banking Solution (CBS) is networking of branches, which enables Customers to

operate their accounts, and avail banking services from any branch of the Bank on CBS
network, regardless of where he maintains his account. The customer is no more the
customer of a Branch. He becomes the Bank's customer. Core banking solutions offer the
following advantages to the bank:

 Improved operations which address customer demands and industry

consolidation
 Errors due to multiple entries eradicated
 Easy ability to introduce new financial products and manage changes in existing
products
 Seamless merging of back office data and self-service operations.

Minimum features of Core Banking Solution:

 Customer-On Boarding.
 Managing deposits and withdrawals.
 Transactions management
 Interest. Calculation and management.
 Payments processing (cash, cheques, mandates, NEFT, RTGS etc.).
 Customer relationship management (CRM) activities.
 Designing new banking products.
 Loans disbursal and management.
 Accounts management
 Establishing criteria for minimum balances, interest rates, number of
withdrawals allowed and so on.

2.3.1. ACCOUNT & DEPOSITS

SAVING ACCOUNT

What is a Savings Account?

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

financial institution that provides a modest interest rate. Financial institutions that
offer savings accounts may limit the number of withdrawals from an account each
month. They also may charge fees unless you maintain a certain average monthly
balance in the account. In most cases, banks do not provide checks with savings
accounts.

How a Savings Account Works?

Savings accounts generally are opened to keep money not intended for daily or
regular expenses. Savings accounts allow the use checks and electronic debit to
access funds. Additionally, savings accounts typically have limits on the number of
withdrawals or transactions you may make each month.

Savings Account Advantages

Because savings accounts pay interest, it is more beneficial to keep your unneeded
funds in a savings account, so your money can grow. In addition, savings accounts
are one of the most liquid investments outside of other demand accounts and cash.
While savings accounts facilitate saving, they also make it very easy to access your
funds. In contrast, it is typically more difficult to cash a bond, make a withdrawal
from a retirement account, or sell stocks or other assets.

Savings Account Disadvantages

While the liquidity of a savings account is one of its key benefits, its ready
availability of funds could tempt you to spend them. That immediate availability
comes at a price, however, as savings accounts usually pay lower interest rates than
Treasury bills and certificates of deposit. As a result, they should not be used for
long-term holding periods.

Sutex co – op bank offers an interest rate of 4.00% p.a. Sutex bank also offer
accounts to meet the specific requirements of salaried, women, kids and senior
citizens. Rs. 1000 is initial balance that require to open the saving account.

Rate of interest

Saving bank account 4.00%

Super saving account scheme (Rs. 10 lacs to 20 lacs ) 5. 00%

Supper saving account scheme (Rs. 20 lacs and above) 6.00%

Benefits

Passbook Facility
Any branch Banking
 ATM Facility
RTGS / NEFT Facility
Free SMS alert on request
E – Statement Facility
Cheque Book Facility
Standing instructions
Insurance cover
CURRENT ACCOUNT
The current account records a nation's transactions with the rest of the world –
specifically its net trade in goods and services, its net earnings on cross-border
investments, and its net transfer payments – over a defined period of time, such as a
year or a quarter.

What is a Current Account and How to open it in a Bank?

Current Account is an account in which there is no limit on the no. of transactions

that can be done in a day and are therefore also referred to as Transactional
Accounts. These type of accounts are held neither for the purpose of Investment nor
for the purpose of Savings but only for the convenience of the business as these
accounts are the most liquid type of accounts.

Banks don‘t pay any interest on the amount lying in these accounts and in some
cases also charge a small fee for the services they provide. These types of Bank
Accounts are usually opened by businesses as there no. of transactions are on the
higher side.

How to open a Current Account in a Bank?

All Indian Banks are allowed to open Current Accounts. You can approach any bank
with the requisite documents and on successfully furnishing all details in the
application form, the banker will verify all documents and on being satisfied, they
will open your Current Account.

Any individual who owns a valid KYC (Know Your Customer) documents can open
a current account in Sutex bank. The monthly average balance requirement for
personal banking branch is Rs 10,000 while for non-rural it is Rs 5,000. For rural
branch, it is Rs 2,500. No rate of interest is available on this account. There is no
maximum balance limit. It offers free cash deposit up to Rs 25,000 per day.
Nomination facilities are available on this.
SUTEX BANK Current Accounts have been customized to meet the varied
customer needs. Current Account are business accounts which provide unlimited
daily transactions along with personalized services to help the businessmen and self
employed professionals such as doctors, consultants, chartered accountants to
conduct daily bank transactions. SUTEX BANK also offers an overdraft facility
under which a credit limit is offered to allow you to withdraw money as and when
required to meet your working capital requirements.

SUTEX BANK Current Account Products

Regular Current Account

First 50 cheque leaves free

Free ATM card during first year

Free cash deposit upto Rs. 25,000 per day

Minimum balance requirement is Rs. 10,000

Charges for non maintenance of the minimum balance is Non Rural - Rs. 5,000
Rural - Rs. 2,500

Documents required for opening a Current Account

The following documents are required for opening a Current Account in India

PAN Card

Partnership Deed (in case of Partnership Firm)

Certificate of Incorporation, Memorandum of Association and Articles of

Association (in case of Companies)

A Cheque for opening the Bank Account

Address Proof of the Firm/ Company/HUF

ID and Address proof of all partners/directors

The account holder would also be required to comply with all the KYC Norms. In
case you don‘t have all the above documents, you can refer this link which provides
the list of alternate documents to be submitted in case the above documents are not
available.

Sutex bank provide the facility of Debit Card, mobile banking and internet banking
for current account users. However, they may charge a small fee for such services.
RECURRING DEPOSITS
Sutex Co – Op Bank Ltd. offers several types of deposit schemes for short-term and
long-term investments. Fixed deposits (FDs) and recurring deposits (RDs) are two
such products offered by SUTEX BANK that earn higher interest rates. RD is a kind
of term deposit which allows the investor to invest a fixed amount of funds every
month. You get a fixed rate of return on RDs, which depends on the amount of
investment and tenure.

The benefit in RDs is that you would get the same interest rate even on the last
installment that you may pay after a year even if the rates are lower. Generally,
banks offer higher rates when the RD tenure is above 15 months. SUTEX BANK
RD account can be started with a minimum monthly deposit of ₹100 and in
multiples of ₹10. However, there is no maximum limit.

Sutex bank recurring deposit has terms ranging from 12 months to 120 months.
Sutex bank RD interest rates vary between 6.40% and 6.85% for regular customers
and an additional interest rate hike of 0.50 percentage points for senior citizens. For
instance, SUTEX BANK‘s 1-year recurring deposit will fetch you a 6.8% interest
rate. For the same period, senior citizens will earn 7.30% per annum. For the term
period of 1-2 years, the rate of return is 6.8% for general citizens and 7.3% for
senior citizens.

For medium-term tenure (3-5 years), the rate of return offered by SUTEX BANK is
6.80% for general citizens and for long-term investments (5-10 years), the rate of
return is 6.85%.

For senior citizens, SUTEX BANK‘s rate of return on RD account is 0.75

percentage points more than that for regular citizens. For a medium-term tenure, the
rate of interest for the recurring deposit scheme is 7.3% and for long term tenure, it
is 7.35%.

Overdraft and CC account

A businessman has two options while taking a loan for his business. Either to opt for
long term funding like LAP (Loan against property) or to go for flexible funding
like Cash Credit (CC) or Overdraft (OD). Long term funding generally carries a
lower rate of interest while flexible funding gives opportunity to save interest by
depositing extra funds in the account and thus paying interest only for amount
needed.

What is OD Account?
 OD account stands for Overdraft account. It is a type of account in which you can
withdraw amount even if there is no fund in your account. The bank sanctions a
specific limit and your account can go in negative up to that limit. You have to pay
interest only on the amount taken as loan. Since it is a current account, you can
make as many transaction as you want. You have to pay interest on the amount
which is due by the end of the day

What is Cash Credit (CC)

Cash Credit is a type of short-term loan facility in which the withdrawal of money
by the company is not restricted to the amount the borrower holds in his cash credit
account but up to a predefined limit.

The cash credit account functions like a current account with cheque book facility.
The facility is provided to pledge or hypothecation of stock i.e. raw materials, work
in progress, finished goods, etc. or on the guarantee of book debts (debtors) or other
collateral security as per banking company norms. The purpose of taking cash credit
is to fulfill working capital requirement of the firm. The cash credit limit is
supposed to be equal to the working capital requirement of the company less the
margin funded by the company itself.

Fixed deposits
Fixed deposit is investment instruments offered by banks and non-banking financial
companies, where you can deposit money for a higher rate of interest than savings
accounts. You can deposit a lump sum of money in fixed deposit for a specific
period, which varies for every financier.

Once the money is invested with a reliable financier, it starts earning an interest
based on the duration of the deposit. Usually, the defining criteria for FD is that the
money cannot be withdrawn before maturity, but you may withdraw them after
paying a penalty.

Features of Fixed Deposit

Fixed deposit enable investors to earn higher interest on their surplus funds You can
deposit money in a fixed deposit account only once, but to deposit more money, you
need to create another account Though liquidity in fixed deposit is lesser, you can
look for higher rates of interests, which are higher in case of company fixed deposit
Fixed deposit can be easily renewed Tax is deducted at source, from interest on
Fixed Deposit as applicable, as per the Income Tax Act, 1961.
 Benefits of Fixed Deposit

There are several advantages of fixed deposit investments, some of which have been
given below:

They are the safest investment instruments, and offer greater stability Returns on
fixed deposit are assured, and there is no risk of loss of principal You can opt for
periodic interest payouts, to help you manage your monthly expenses.

There is no effect of market fluctuations on your fixed deposit, which ensures

greater safety of your investment capital You can benefit from higher interest rates
offered by company fixed deposit Some financiers also offer greater returns for
senior citizens
Taxability on Fixed Deposit

The interest earned from fixed deposit is taxable. The tax deducted at source on FD
can range from 0% to 30%, depending on income tax bracket of the investor.
Financiers deduct 10% TDS(Tax Deducted at Source) if your interest earned is
more than Rs. 10,000 in a year, if your PAN details are available with them.
However, in case your PAN details are not provided to your financial institution,
20% TDS will be deducted.

Sutex Bank Offers A wide variety of profitable Fixed deposits Schemes.

Interest Rate

S. No Nature of Deposit Rate of Int(%)

1 Saving Bank A/C 4.00%

SHORT TERM FIXED DEPOSIT

2 15 days to 45 days 4.00%

3 46 days to 180 days 5.75%

4 181 days to 1 year 6.50%

 FIXED DEPOSIT / MIP SCHEME
(DISCOUNT RATE - MORE THAN 1 YEAR / RECURRING DEPOSIT

5 Above 1 year up to 2 years 7.00%

6 Above 2 years up to 3 years 7.25%

7 Above 3 years up to 5 years 7.50%

8 Above 5 years and above 7.00%

9 Special Scheme 777 days – Only simple interest 8.50%

Senior Citizen : 0.75% Additional Rate in F.D. above one year Tenure

SINGLE F.D.

**Rs. 15 lacs & above : 0.25% Extra above 1 year

**Rs. 50 lacs & above : 0.50% Extra above 1 year

**Rs. 1 crore & above : 0.75% Extra above 1 year

2.3.2. LOANS
Following are the loans that can be provided by the Sutex co – op bank ltd.:

• Home Loans
 • LIC Loans
• Personal Loans
• Holiday Tour Loans
• Factory Shed Loan
• Retail Trade Loans  Premises Loans
• Professional Loans
• Cash Credit Loans
• Consumer Loans
• Education Loans
• Vehicle Loans
• Machinery Loans
• Agriculture Loans

THE SURAT CO - OP BANK LTD., SURAT

RATE OF INTEREST ON DIFFERENT LOAN

Sr.No. Type of Loan Rate of Int.(%)

1 Cash Credit Limit 11.00%

2 Cash Credit Limit (84 months) 10.75%

3 Machinery Loan – New / TUF / Embroidery / Old 10.75%

4 Vehicle Loan (2 wheeler, 3 wheeler, 4 wheeler, commercial Vehicle) 10.00%

5 Clean Loan 14.00%

6 Factory Shed Loan / Premises Loan / Agriculture Factory Shed Loan (Up to 11.50%
144 Months)
7 Consumer Loan 13.00%

EDUCATION LOAN IN INDIA

8 Up to Rs. 2.00 Lacs 9.50%

9 Above Rs.2.00 Lacs to 5.00 Lacs 10.50%

10 Above Rs.5.00 Lacs 11.00%

11 Education Loan Abroad (0.50% Concessional rate for girl student) 11.50%

HOUSING LOAN

12 120 Months Tenure 9.50%

13 Above 120 Months & Up to 180 Months 10.00%

14 Premises Loan / Loan against Immovable Property 13.00%

15 Premises Loan / OD against commercial Real Estate Immovable property 14.00%

16 Holiday Tour Finance 13.00%

17 Furniture Fixture Loan 13.50%

18 Agriculture and other Allied Activates 10.75%

19 Loan / OD against bank‘s FD FD rate + 1%

20 Loan / OD against bank‘s FD (Third party) FD rate + 2%

21 Finance of Professionals (FFP) 10.00%

22 Overdraft Against Immovable Property (ODPROP) 12.00%

CHAPTER 3 : LITERATURE REVIEW

Following are the various literatures reviewed for this thesis:

Alamelu, and Devamohan, (2010), in their study titled, “Efficiency of Commercial

Banks in India” calculated the business ratios, such as interest income to average
working funds, non-interest income to average working funds, operating profit to
average working funds, return on assets, business per employee and profit per
employee for public sector banks, private sector banks and foreign banks for the
period 2004-05 to 2008-09. It was observed that the foreign banks and new generation
private banks have superior business ratios. They effectively leverage technology,
outsourcing and workforce professionalism which helped them to protect their bottom
line. On the other hand, the public sector banks are yet to exploit fully the advantages
of vast branch network and large workforce. That’s why they have unimpressive
business ratios. Old generation private banks do not have impressive business ratios, as they are
constrained by small size and conservatism.

Anand, G., S., (1984), evaluated the performance of the Grape Growers' Marketing and
Processing Co-operative Society in Bangalore. He applied the solvency,

Alamelu, and Devamohan, (2010), “Efficiency of Commercial Banks in India”, Professional

Banker, ICFAI University Press, Hyderabad liquidity, turnover, total sales to fixed assets and
total sales to owned funds ratios to examine the performance of the society.Anand, S., K.,
(1981), employed the solvency, stock turnover, working capital and profitability ratios to
evaluate the financial position and performance of the state consumer’s co-operative federation,
Maharashtra.

Asaithambi, K., (1988), analyzed the performance of Andaman and Nicobar State Co-operative
Bank for the period from 1982- 83 to 1985-86. The performance indicators selected for the study
were membership, share capital, working capital,deposits, and loans outstanding and overdue.
The results of the analysis showed that the bank has been maintaining high degree of efficiency
in all the vital aspects of its operations.

Bankim, C., (1996), the author examined the performance of Maharashtra State Cooperative
Bank for the period 1989- 90 to 1992-93. The variables for the study were:working capital
structure and composition, deposit mix, credit mix, credit-deposit ratio, loan outstanding,
overdue and profitability. The findings of the study were: the working capital mix indicated a
major share of deposits and borrowings; deposits contributed 70 percent in working capital and
among various deposits, the fixed deposits alone contributed 69 percent; the credit mix was
rational; high degree of relationship between the credit and the deposits; excellent performance
in recovery and an upward trend in profit.

Babu, C., V., (1997), analysed the liquidity, profitability and business strength of three urban co-
operative banks in Thrissur district of Kerala state for the period 198081 to 1989-90. For the
purpose of analysis, the author used the various ratios viz.profitability performance ratios
(developed by Varsha S. Varde and Sampat P.Singh)