A

PROJECT REPORT

ON

A STUDY OF BANKING AND BANK INVESTMENT OF ANDARSUL URBAN COOPERATIVE

BANK LTD.

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

MASTER IN BUSINESS ADMINISTRATION (FINANCIAL MANAGEMENT)

SUBMITTED BY

MR. MAYUR SANJAY WAKCHAURE

UNDER THE GUIDANCE OF

PROF. VAIBHAV UBALE (S.N.D College)

S.N.D COLLEGE OF ENGINEERING & RESEARCH CENTER BABHULGOAN, YEOLA.

YEAR 2020- 2021

1
 DECLARATION BY STUDENT

I Mr. Mayur Sanjay wakchaure student of SND COLLEGE OF ENGINEERING &RESERCH

CENTER BABHULGOAN,YEOLA hereby declare that this project work on the topic “MANAGEMENT
SYSTEM OF HOSPITAL PANCEA” in partial fulfilment of Master of business administration degree course
of SAVITRIBAI PHULE UNIVERSITY of Pune on my own work and submitted by me under the guidance of
Prof. VAIBHAV UBALE I have prepared this report independently and I have gathered all the relevant
information personally. I have prepared this project for MBA curriculum for the academic year 2020-2021.

Date:/ /2020 Signature:

Place: Yeola Name: Mr. Mayur wakchaure

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 ACKNOWLEDGEMENT

I express my foremost thanks to the almighty for his blessings in helping me to complete my project
work successfully. Out of the privilege of being the student of Institute of SND College of Engineering &
Research Center, Babhulgaon, Yeola. I would like to thank our HOD Sir mr. vaibhav ubale who granted me
this opportunity.
I express my sincere thanks to my project guide Prof. vaibhav ubale for his motivation, guidance and
for his extremely useful and effective suggestions.
I would also like to convey my special thanks to manager mr. chintamani bhalerao for extending his
cooperation to me by providing necessary information & timely help.
I have immense pleasure in thanking all the staffs, who have given me their help and a source of great
support throughout my project.
I owe my gratitude to all the respondents who have given me the necessary information for carrying out
my project successfully. Last but not the least I would like to thank my parents and friends who were the
source of encouragement and support for the successful completion of my project.

Date : Signature
Place: Yeola Name: Mr. Mayur wakchaure

3
 TABLE OF CONTENTS

 Introduction

 CHAPTER 1 - Co-operative bank’s Profile

 CHAPTER 2 - Project Profile

 Objective of the project

 CHAPTER 3- Banking Activity

 CHAPTER 4- Comparative Data Analysis of Banking

Products

 CHAPTER 5- Research Methodology & Consumer Data

Analysis

 CHAPTER 6- Interpretation of Analysis

 CHAPTER 7- Recommendation & suggestion

 CHAPTER 8 - Limitations of Bank

 CHAPTER 9- Conclusion

 Appendix

 Bibliography

4
 INTRODUCTION

Management of Modern business requires an opportunity of multidisciplinary

concept and in depth knowledge of specific analytical tools, geared to the solution the real
life problems. No doubt every real situation is unique but a set of theoretical tools of
knowledge, itself based on empirical foundation can help in developing the mechanism for
handling such situation. So the MBA curriculum has been desired to provide to the future
manager sample practical exposures to the business world.

Summer training is essential for the fulfillment of MBA curriculum. It provides an

opportunity to the student to understand the industry with special emphasis on the
development of skills in analyzing interpreting practical problems through application of
management.

The essential aim of management should be to assist management in decision

making and improving the efficiency of the organization.

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 CHAPTER -1

 Introduction to co-operative Bank

 Introduction to Reserve Bank of India

 Profile of Rajasthan co-operative Bank

 Co-operative Bank’s services

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 1) INTRODUCTION OF CO-OPERATIVE BANK

The Co-operative banks are an important constituent of the Indian

Financial System, judging by the role assigned to them, the expectations they are
supposed to fulfill, their number, and the number of offices they operate. The co-
operative movement originated in the West, but the importance that such banks
have assumed in India is rarely paralleled anywhere else in the world. Their role
in rural financing continues to be important even today, and their business in the
urban areas also has increased phenomenally in recent years mainly due to the
sharp increase in the number of primary co-operative banks. Co-operative bank
regulated by Reserve Bank of India, NABARD & Apex bank.

The co-operative banks in rural areas mainly finance agricultural

based activities including farming, cattle, milk, hatchery, personal finance etc.
along with some small scale industries and self-employment driven activities, the
co-operative banks in urban areas mainly finance various categories of people for
self-employment, industries, small scale units, home finance, consumer finance,
personal finance, etc. Though registered under the Co-operative Societies Act of
the Respective States the banking related activities of the co-operative banks are
also regulated by the Reserve Bank of India. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

7
2.Introduction of Reserve Bank of India

The Reserve Bank of India was established on April 1, 1935 in accordance

with the provisions of the Reserve Bank of India Act, 1934. 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. Though originally privately owned, since
nationalization in 1949, the Reserve Bank is fully owned by the Government of
India.

Main Functions
Monetary Authority:
 Formulates implements and monitors the monetary policy.
 Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.
Regulator and supervisor of the financial system:
 Prescribes broad parameters of banking operations within which the country's banking
and financial system functions.
 Objective: maintain public confidence in the system, protect depositors' interest
and provide cost-effective banking services to the public.
Manager of Foreign Exchange
 Manages the Foreign Exchange Management Act, 1999.
 Objective: to facilitate external trade and payment and promote orderly development
and maintenance of foreign exchange market in India.

Issuer of currency:
 Issues and exchanges or destroys currency and coins not fit for circulation.
 Objective: to give the public adequate quantity of supplies of currency notes
and coins and in good quality.

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 Developmental role

 Performs a wide range of promotional functions to support national

objectives.

Related Functions
 Banker to the Government: performs merchant banking function for the
central and the state governments; also acts as their banker.
 Banker to banks: maintains banking accounts of all scheduled banks.

3. Profile of Andarsul urban Co-operative Bank LTD

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Establishment of Andarsul urban Co-operative Bank Ltd
The Andarsul Urban co-operative bank Ltd.(AUCB) was established &
registered under Andarsul Co-operative Societies Act on 14th October, 1998. It
is an Apex institution of the District Central Cooperative Banks (DCCBs)
functioning in the state. The governance of village level Primary Agriculture
Cooperative Societies, District Central Cooperative Banks & AUCB is ensured
by elected board through a democratic election system under The Andarsul
Cooperative Societies Act. The Nashik central co-operative bank was registered
on 22 March 1957 (Registration No. 319/O) and started its banking business
from 23 March 1957.

AUCB has successfully completed more than five decades of services to

the state of Nashik in general and to the rural and farming community in
particular. The bank was established to provide short term agriculture loan for
agricultural, rural development, non-agricultural loans, employment oriented
schemes and short term loans. The bank has an image at national level and it
has been honored several times.

MISSION STATEMENT
Co-operative Bank Corporate Mission Is to Become A Strong And
Competitive Cooperative Banking Network Which Offers Innovative Financial
Product Along with Varied Range Of Services To Serve Rural Masses With
Rejuvenated Short-Term Cooperative Credit Structure To Serve The People Of
Rajasthan.

10
NETWORK
In order to achieve the objectives of the Cooperatives, an extensive net-
work is available to cater the needs of rural masses at their door-step with a
three tier short-term cooperative credit delivery system.

 At the Apex level, Andarsul State Cooperative Bank (AUCB) with its 4
Regional and 8 local (yeola) Branches in the State.
 At the District level 29 DCCBs covering 33 Districts of the State having
400 Branches.
 At the grass-root level 5255 PACS/LAMPS which covers 100% of the
geographical area of the state, i.e., 42955 villages.
 Out of total 53.64 lacks cultivators in the state, about 42.40 lacks are the
members of PACS/LAMPS, of which 21.13 lacks are borrowing members
of the societies for the year 2008-09.
 Creating innovative financial products for the poorest of the poor
 Personal accidental insurance scheme
 Crop insurance scheme
 KISAN Credit card
 Commercial loan scheme
 NREGA

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 4. Co-operative Bank’s services

PRIMARY AGRI. COOPERATIVE CREDIT SOCIETIES (PACS)

PACS are the backbone of Short-term Cooperative Credit Structure. Out
of 5255 PACS/LAMPS in the state, 5088 PACS advanced loan to their members
during 2007-2008 and 4783 PACS had
Outstanding loans exceeding Rs.10.00 lacks as on 31.3.2008. The
Working capital of PACS as on 31.3.2008 stood at Rs.4181.33 crores and 2673
PACS working as Mini Bank were collecting deposits from their members. Total
deposits of these Mini Banks stood at Rs. 505.35 crores as on 31.3.2009. 3739
PACS were in profit as on 31.3.2008 and it is expected that more than 4828
PACS would have booked profit as on 31.3.2010 which is indicative of their
sustainable viability

DIVERSIFICATION OF LOAN & DIPOSITS PORTFOLIO

In last few years concerted efforts have been made to diversify loan
portfolio so as to provide an opportunity to DCCBs to cross subsidize their losses in
traditional crop loan business. Consequent to above deliberated efforts, DCCBs
have been able to develop their investment portfolio over a period of time. In this
endeavor NABARD has introduced lots of new schemes vise; water harvesting
structure, organic farming, agriculture-clinic / agribusiness centers, aromatic and
medicinal plantation, onion storage structure, horticulture, self-help groups, house
building, swarojgar credit card etc. for which DCCBs can avail refinance from
NABARD and can further diversify their farm and non-farm investment portfolio.
Apex Bank on its part has been pursuing DCCBs to finance for innovative activities,
the sole purpose of which is to diversify the loan portfolio of these banks and to
facilitate economic development through creation of assets in the rural areas of the
state.

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10
1. TYPES OF DEPOSIT

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11
 2. TYPES OF COMMERCIAL LOAN

1. PES OF DEPOSIT
 Saving Account
 Current Account
 Fixed Account
 Recurring Deposit Account
2. TYPES OF COMMERCIAL LOAN
 Personal Loans.
 Gyan Sagar Educational Loans.
 Home Loan
 Vehicle Loans.
 Mortgage Loan
 Industrial Loan
 Loan Against Security
 Hotel/Motel/Restaurant Loan Scheme
 Micro Finance
 Sahakar Tex Bachat Yojana
 Sahakar Sugam Credit Cash Scheme
 Kisan Credit card Scheme
 Krishak Mitra Yojana
 Personal Accident Insurance Scheme

Types of Deposits
 Saving Account
General Information
a) Single type of saving a/c

b) Low opening charge

c) Various Banking facilities like ATM, FD Sweep, Accidental coverage are not
available

d) Simplest Deposit available to depositor.

e) Easy to Operate. Terms And Condition are simple to understand to facilitate

layman's understanding.

f) Any individual or society to save from their earnings to plan for your future
financial requirements can open our Saving Account

g) Your deposit is insured by DICGC.

h) Option for money withdrawal by withdrawal forms or by cheque.

i) Your savings remain liquid, safe and also earn moderate interest @ of 3.5%
p.a., compounded half yearly.

j) You can give various types of standing instructions like transferring to fixed
deposit accounts at regular intervals.

k) An average quarterly balance of Rs. 5,000 only.

l) Interest is payable half-yearly.

m) Minimum balance Rs.1000 for Saving Account with Cheque book and Rs.500
for saving account without cheque book facility.

n) Minor not below 14 years of age can also open an independent savings
account without Cheque book facility.

Eligibility

a) Resident Indian, Self Help Group or a Co-operative Society.

 Facility

a) You can give various types of standing instructions like transferring of fund to
fixed deposit accounts at regular intervals, payment of locker rent with our bank's
branches and other utility bills.

b) Nomination facility is available.

c) Quarterly Statement of Account at your doorstep.

d) Free signature verification as per bank's norm.

e) Can open single or jointly with any other person.

f) ECS debit/credit.
 Current Account

General Information

a) Low opening charge-3000

b) Only local cheque book are given

c) Stop payment charges & incidental charges applicable

d) Current Deposits Account can be opened by sole-proprietary / partnership

firm, private and public limited companies, institutions, trusts, individuals,
societies etc.

e) Unlimited number of payments and receipts.

f) Overdraft facility.

g) Low minimum balance of Rs. 3000 only.

Facility

a) You can give various types of standing instructions like transferring of fund to
fixed deposit accounts at regular intervals, payment of locker rent with our bank's
branches and other utility bills.

b) Nomination facility is available.

c) Free signature verification as per bank's norm.

 d) Free Balance Certificate once in a month.

e) Free monthly statement of account as per bank's norms.

f) ECS debit/credit.

Eligibility

Any sole-proprietary / partnership firm, private and public limited companies,

institutions, trusts, individuals, NGO, societies can open current Account.

Fixed Account

General Information

a) An investment of your surplus funds or to create a buffer fund for your future
requirements like children's education/marriage, to buy a car or for a dream
holiday. You will find a product that suits your requirement in our entire branch.

b) Open a savings Deposits account and place funds in FLEXI Deposit scheme,
wherein term is not fixed and provides liquidity as well as benefits of higher
returns.

c) Deposit tenure minimum 15 days and maximum 60 months.

d) Interest payable depending on tenure of deposit on monthly/quarterly basis or on

maturity.

Interest Rate
 a) On pre-mature withdrawal of deposited amount interest will be calculated at
1% below the rate applicable for completed period of deposit.

Service Charges

a) Issuance of Duplicate FDR Rs.25

Eligibility

a) Resident Indian, Companies, or a Co-operative Society. Societies, Trust, Firms,

SHG's.

Facility

a) You can give standing instructions like transferring of interest earned to an

account at regular intervals.

b) The minimum balance of deposit is Rs.1000.

c) Loans against deposits available up-to 90% of deposits available.

d) Nomination Facility - Available.

Serial Fixed Deposit Below Rs.15 Rs.15 Lakh &

no. Period Lakh (%p.a.) above to Below
Rs.1.00 Crores

(%p.a.)
1 7 to 14 Days - 1.5%
2 15 to 29 Days 3.5% 3.00%
3 30 to 45 Days 3.5% 3.00%
4 46 to 90 Days 4.25% 4.25%
5 91 to 180 Days 5.5% 5.5%
 6 181 days to 1 year 6% 6%
7 Over 1 year to 2 6.75% 6.5%
years
8 Over 2 year to 3 7% 7%
years
9 Over 3 year to 5 7.25% 7.25%
years
10 Over 5 year to 8 7.5% 7.5%
years

b) In case of Senior Citizen i.e. person of 60 years & above and for HUF headed
by a Senior Citizen, an additional interest @0.50% p.a. on FDRs above one
year and for a minimum amount of Rs. 10,000/- shall be applicable on regular
deposits as well as on deposits under Sahakar tax Bachat Yojana.

c) In case of pre matured withdrawal interest payable on such withdrawal of

deposits will be the contract rate or the rate applicable for which the deposit
remain with the bank, whichever is lower, less 1% penalty .
Recurring Deposit Account

General Information

a) Encourages savings habits to save for future necessity like, to create a fund for
your children's education or marriage or to buy a car or for a dream holiday.

b) Recurring deposit is a scheme where depositor commits to deposit a fixed

amount for a fixed period of time (for instance Rs 500 every month for 12
months)and gets a lump- sum amount at the end of defined period. The terms
i.e., fixed amount, interval and fixed the period that is decided at the time of
opening the deposit cannot be modified / altered.

c) High interest rates of interest.

d) Non-applicability of Tax Deduction at Source (TDS).

e) Minimum amount required to open RD account is Rs 100/-, subsequent deposits

in multiples of Rs. 100/-.

f) Deposit tenure minimum 12 months and maximum 60 months.

Interest Rate

a) Interest will be compounded quarterly and paid on maturity.

b) On pre-mature withdrawal of deposited amount interest will be calculated at 1%

below the rate applicable for fixed period of deposit.

c) Interest as per bank circulars at time of opening of Recurring deposit account.

 COMMERCIAL LOAN SCHEMES

Ever reducing margin on agricultural lending made diversification need of the time.
Consequent to this concept several loan schemes were launched from time to time
keeping in view the requirement of general public of the state. Most of the schemes
have been adopted by DCCBs, some of them are as under:

1. Educational Loan

Products - AUCB Educational Loan

a) Education loan is granted to Indian Nationals for pursuing higher education in

India or abroad where admission has been secured.

b) Tuition fees payable to college/school.

c) Hostel Expenses.

d) Examination/Library/Laboratory fees.

e) Purchase of Books/Equipment/Instruments/Uniforms.

f) Purchase of computers considered necessary for completion of course.

g) Takeover of Education loan of other banks.

h) Maximum for two children.

Quantum of Loan

a) For studies in India, maximum Rs.6 lacs subject to equivalent amount collateral
security by way of landed property, NSC, KVP and LIC police.

b) Studies abroad, maximum Rs.6 lacs subject to equivalent amount collateral

security by way of landed property, NSC, KVP, and LIC policy.
Disbursement

a) First Year : On the basis of demand letter from the Institute/College/University

b) Second and Subsequent Years: On the basis of demand letter from the Institute/
College/University + proof of passing last qualifying examination.

c) For other expense: purchase bills/Hostel Receipt

Margin Money

a) 10% of the loan advanced.

b) If any amount has paid by the student from his/her sources before sanction of
loan the same will be considered for margin money.

Rate of Interest

a) For loans up to Rs.2 lacs-12% p. a Fixed.

b) For loans above Rs.2 lacs-12.5% p.a. Fixed.

c) Interest will be lived on monthly basis.

Repayment Period

a) Minimum 36 Months and Maximum 60 Months through advance EMI Cheques.

Documents required along with duly completed Application Form.

a) Borrower related document

b) Duly filled Education Loan Application Form.

c) Certificate/Mark sheets of last qualifying examination.

 d) Proof of admission scholarship, studentship etc.

e) Schedule of expenses for the specified course.

f) Photographs-2.

g) Borrower's Bank account statement for the last six months.

h) Copy of ITR of last 3 years (for Non-Salaried).

i) Income proof-Last three month’s Salary Slip/Copy of Form 16 in case salaried

persons.

j) Brief statement of assets and liabilities, of the Co-borrower.

k) KYC documents of borrower(s) as well as Guarantor(s)-PAN card, Adhar

,card, photo Debit Card, Arms License, Ration Card of the Applicant, Freedom
Fighter Pass, Employer Identity Card, etc. with the condition that it must
contain Name, Photograph and Signature of holder.

l) Advance EMI Cheque(s),Age proof. Residence Address Proof.

Document related to collateral Property

a) Copy of title documents viz. Sale Agreement, Registry, Allotment Letter/Lease

deed

b) Non-encumbrance certificate.

c) Valuation of the property.

Loan Documentation

Loan Agreement on stamp paper as per bank's norms.

a) Guarantee deed on stamp paper as per bank's norms.

 b) Demand & time promissory notes.

c) Letter of continuity., Issuance Certificate

d) Letter of undertaking in the prescribed format.

e) Fixed Deposit receipt as per bank’s norms.

2. Home Loan

Products - AUCB Home Loan

a) For purchase of built house/flat.

b) For Construction of house on land already purchased.

c) For Purchase of Land and construction of house their own.

d) For Purchase of Land/House through auction by government body such as

Development Authorities, Housing Board and Municipal Bodies.

e) For Purchase House in self-financing schemes/Outright Purchase

Schemes.
f) For takeover from other banks outstanding home loan
Quantum of Loan

a) With AUCB Home loan, you can get a home loan suited to your needs.
The loan amount depends on your repayment capability and is restricted
to a maximum of 75% of the cost of the property or the cost of construction
as applicable. In case of takeover maximum amount is 100% outstanding

balance. Repayment capacity takes into consideration parameters such as income, age, number
of dependents, spouse's/Son’s/Daughter in-law’s income, assets, liabilities, stability, continuity of
occupation and savings history etc.

Rate of Interest

a) Fixed rate of Interest.

b) Interest levied on monthly rest on reducing balance method and added to

principal outstanding.

c) Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50%

for loan amount more than Rs.2,00,000/-

d) Pre-closure charges @1% of the outstanding loan balance.

Repayment Period

a) Maximum 15 years subject to restriction of age of borrower/date of

retirement

3. Personal Loan

Products - AUCB Personal loan

a) Personal loan 1 lack or 8 times of monthly salary For casual financial

obligations.

b) For emergency financial requirements.

 c) Faster Processing

d) Minimum Documentation required

e) Attractive Interest Rates

Quantum of Loan

a) With RSCB Home loan, you can get a loan up to Rs.1, 00,000/- without
collateral security and Rs.2, 00,000/- with collateral security. Loan amount
is eight times of monthly income in case of salaried persons. In case of
non-salaried persons loan amount is sixty six percent of annual income.

Rate of Interest

a) Interest rate @13.00% p.a. on monthly rest.

Repayment Period

a) Five years.

4. Mortgage Loan

Products - AUCB Mortgage loan

Mortgage Loan provides the owner of residential or commercial property to leverage on the value of
the property.
 a) Mortgage Loan is an easy way to unlock the hidden value of your property.
This multi-purpose loan, make available funds at your disposal to use as
you wish to utilize.

b) Mortgage Loan is provided for many personal requirements of the

customer viz. emergent requirements for Expansion of business, house
hold activities, children’s tuition & higher Education fees, religious
ceremony, renovation of home etc.

Quantum of Loan

a) With AUCB Mortgage loan, you can get a loan suited to your needs. The
loan amount depends on your repayment capability and is restricted to a

maximum of 50% of the cost of the property. Repayment capacity takes

into consideration parameters such as income, age, number of
dependents, spouse's/Son's/Daughter in-law's income, assets, liabilities,
stability, continuity of occupation and savings history etc.

Rate of Interest

a) Fixed rate of Interest.

b) Interest levied on monthly rest on reducing balance method and added to

principal outstanding.

c) Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50%

for loan amount more than Rs.2,00,000/-

d) Pre-closure charges @1% of the outstanding loan balance.

Repayment Period

a) Maximum 10 years subject to restriction of age of borrower/date of

retirement
 5. Industrial Loan

Products - AUCB Industrial Loan

a) For establishment of new industrial units in notifies areas.

b) For procurement of Plant and Machinery for existing units due to

obsolescence of old plant and machinery due technological
advancements.

c) For purchase old plant and machinery for existing industry.

Quantum of Loan

Based on project requirements for following components

a) Land and building.

b) Plant and machinery.

c) Preliminary expenses.

d) Working Capital.

e) Cost of Development.

f) Disbursement

g) As per project appraisal approved by bank.

Rate of Interest

a) Negotiable subject to a minimum of 13% p.a. Fixed

b) Interest will be lived on monthly basis.

Repayment Period

a) Maximum 5 years plus moratorium period

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 6. Loan Against Security

Product - AUCB loan Against Security

a) The owner doesn’t have to sell his securities like NSC/KVP.

b) What all he has to do is pledge his owned securities in favor of bank.

c) A current account will be opened and overdraft limit will be sanctioned.

d) Interest will be charged only on the amount withdrawn and for the time
span utilized.

Quantum of Loan

a) With AUCB Loan against Security, you can get a loan up to 70% of value
determined on the basis of the securities pledged.

Rate of Interest

a) Interest rate @13.00% p.a. on quarterly rest

Repayment Period

a) Maximum period up to the maturity date of the security.

 7. Vehicles Loan

Products - AUCB Vehicle Loan

a) Scheme for financing of Commercial vehicles (Bus/Truck).

b) Transport Loan Scheme for Commercial vehicles (Taxi/Auto Rickshaw).

c) Vehicle Loan Scheme Professional and Employees.

d) School College Bus.

Quantum of Loan

For New Vehicles

a) 75% of Vehicle cost for Commercial vehicles (Bus/Truck). Maximum 10

Lacs or twenty months earnings, whichever is less.

b) 80% of Vehicle cost for Transport Loan Scheme for Commercial vehicles
(Taxi/Auto Rickshaw) Maximum 5 Lacs.

c) 85% of Vehicle cost for Professional and Employees. Maximum 5 Lacs or

twenty month’s income whichever is less, for salaried persons. In case of
professional 1.5 times of their two year’s annual average income.
 For Old Vehicles

a) 50% of value of Vehicle assessed by authorized value.

Disbursement
a) 1 or 2 installments as applicable.

Margin Money

For New Vehicles

a) 25% of Vehicle cost for Commercial vehicles (Bus/Truck).

b) 25% of Vehicle cost for Commercial vehicles (Bus/Truck).

c) 15% of Vehicle cost for Professional and Employees.

For Old Vehicles

a) 50% of value of Vehicle assessed by authorized value.

Rate of Interest

a) For loans up to Rs.2 lacs - 12% p.a. Fixed.

b) For loans above Rs.2 lacs - 12.50% p.a. Fixed

c) Interest will be lived on monthly basis.

Repayment Period

a) Minimum 36 Months and Maximum 84 Months through advance EMI

cheques.
 8. Hotel/Motel/Restaurant Loan Scheme

a) To cater to the increasing need of hotels in the state due to increase in

the number of tourists coming to the state.

b) To promote hotel industry in Rajasthan at the places of where tourists are

more interested.

Products - Hotel/Motel/Restaurant Loan Scheme

a) To construct new Hotel/Motel/Restaurant.

b) To make additions/alterations in the existing Hotel/Motel/Restaurant.

c) To provide essential amenities in the existing Hotel/Motel/Restaurant.

Quantum of Loan

a) Up to 75% of cost of project subject to a maximum of Rs.10 lacs.

Disbursement

a) Operative period - Three Years.

Rate of Interest

a) 12% p.a. Fixed.

b) Interest will be lived on monthly basis.

Repayment Period

a) Maximum 6 Months.
Eligibility

a) Any individual having experience in this field.

b) Any individual having license from RTDC.

c) Any individual having license to run the guest house.

 9. Clinic/Diagnostic/Indoor Hospital Loan Scheme

 To promote health services in the state.

 To create employment opportunities.

 To promote specialist health care homes.

Products - Clinic/Diagnostic/Indoor Hospital Loan Scheme

a) To construct building.

b) To purchase medical instruments such as X-Ray Machine, Sonography

Machine, ECG equipment’s and other machine used in
laboratories/diagnostic centers.

c) To purchase beds, side racks, and furniture’s, mattresses etc. To

purchase Ambulance etc.

Quantum of Loan

a) Up to 75% of cost of project subject to a maximum of Rs.10 lacs.

Disbursement

a) Within one year of sanction.

b) Can be extended by six months.

c) In stages, depending upon construction progress.

d) For equipment’s/ machines/ furniture’s etc. direct to the supplier including

margin money in one installment.
Rate of Interest

a) 13% levied on monthly basis.

Repayment Period

a) 80 months for clinics/diagnostic centers.

b) 120 months for indoor hospitals.

c) Above period includes moratorium period also

Security

a) Collateral security to the extent of twice the loan amount under equities
mortgage.

b) All assets created out of loan shall be hypothecated to the bank.

c) Personal guarantee of two persons having financial worth.

Processing Charges

a) Nonrefundable fee Rs.1000/- to be deposited at the time of application.

b) Balance to be deposited after sanction depending on loan amount.

Eligibility

a) Individuals holding MBBS/BDS degree and registered in the respective

state council.

b) Individuals holding degree/diploma in Para medical radiography,

Radiology, pathology etc.

c) Group of individuals, registered companies etc. having experience or

Necessary permission and license.
10. Micro Finance

(SHG) Self Help Group Program

The SHG program, conceptualized and launched by NABARD in 1992,

attempts to link the poor in large numbers to the formal banking sector in a
sustainable and cost effective manner. The program rekindled the basic human trait
of self-worth of every member in a group. By handling savings and internal lending,
the groups mature to acquire credit worthiness for themselves and earn confidence
of banks for loans by providing trust as collateral. This has emerged as the
predominant micro finance model in the country and is now a proven method of
financial inclusion, providing unbanked rural clientele access to formal financial
services from the existing banking system. This SHG- Bank linkage model has
emerged as the largest and fastest micro finance outreach program in a cost
effective manner in the world. The social intermediation in forming and nurturing the
self-help groups is handled by a large number of non-governmental organizations,
voluntary agencies, community based organizations like farmers’ club, local bodies,

field level functionaries of government agencies, socially committed individuals

and bodies and banks themselves. Commercial banks followed by RRBs and
cooperative banks also play an important role in credit linking the SHGs. NABARD
provides grant assistance to various partner agencies in promoting and nurturing of
SHGs, and extends refinance support to banks against their loans to SHGs.

NABARD also takes lead in providing financial and other support for capacity building, sensitizing
and training the personnel of all the partner agencies including banks. With the success of the SHG-Bank
linkage program, linkage of Micro Finance Institutions (MFIs) with the banking sector was promoted by
NABARD to enable on lending by MFIs to SHGs and individuals
 1. Sahakar Tex Bachat Yojana

General Information

a) Deposit tenure minimum 5 years in any of RSCB Branches.

b) Minimum amount of Deposit- Rs.100 and in multiples of 100 thereafter subject to

a maximum of Rs.1, 00,000/- in a financial year

c) Qualify as an investment for the purpose of deduction under sec.80 (as of I.T.
Act 1961).

d) Premature withdrawal of the deposits made under the scheme shall not be
allowed before completion of 5 years. In the event of death of holder of a deposit
in respect of which a nomination is in force, the nominee or nominees shall be
entitles at any time before or after the maturity of the deposit to encase the
deposit.

e) The deposit shall not be pledged to secure loan or as security to any other
asset.

f) The fixed deposit receipt issued under the scheme shall be governed by the
provisions of The Bank Term Deposit scheme 2006 Notification No.SO 1220(F)
Dated 28/07/2006.

Interest Rate
a) 8.5% pa. Interest payable monthly/Quarterly or in lump sum at the time of
maturity.
 b) Interest accrued or paid during a financial year shall be liable to tax under the
Act and provision of TDS shall apply.

Eligibility

a) Can be made in single name of an individual or in the single name of Karta of a

HUF.

b) Can be made in joint names also but benefit of deduction shall be available only
to the first holder.

c) Joint fixed deposits can be made in the name of two adults, an adult and a minor
and payable to either of the holders or to the Survivor.

Document Required

a) Applicants must satisfy the following documentation requirements:

b) Identity proof (PAN, EC Card, Driving License, Passport, and Ration Card).

c) Passport Size Photograph - 2.

d) Proof of residence address.

e) Introduction as bank norms.

f) KYC Documents.

Facility >
a) Nomination can be made subject to the restriction that no nomination can be
made in case of deposit receipt issued in the name of or held on behalf of a
minor.

b) Income Tax benefit under section 80 c of IT Act 1961.

. 12 Sahakar Sugam Credit Cash Scheme

Products - Sahakar Sugam Credit Card/Cash Credit Scheme

a) To meet credit requirements of very small entrepreneurs, Retailers, Artisans

and Ancestral Craftsman to enhance their business and productivity.

b) To meet credit requirements of Small Shopkeepers such as Pan Shop,

Cobblers, Road Side Vendors and hawkers.

c) To meet credit requirements of house-hold productive activities of ladies.

Quantum of Loan

a) Up to Rs.25, 000/- (No collateral security required).

b) Up to Rs.50, 000/- against equivalent collateral security.

Disbursement

a) Operative period - Three Years

Rate of Interest

a) 12% p.a. Fixed

a) Interest will be lived on monthly basis.

Repayment Period

a) Maximum 6 Months.
 11. Kisan Credit card Scheme – Major features

a) Eligible farmers to be provided with a KCC and a pass-book or a card-cum-

pass book. Card to be valid for 3 years subject to annual review. Personal
Accident Insurance up to Rs.50, 000 to the card holder under Personal Accident
Insurance Scheme (PAIS).

b) Revolving cash credit facility (RCCF) involving any number of drawls and
repayments within the limit. Limit to be fixed on the basis of operational land
holding, cropping pattern and scales of finance. Each drawls to be repaid within
12 months.

c) Entire production credit needs for full year plus ancillary activities related to
crop production to be considered while fixing limit. In due course, allied activities
and non-farm credit needs may also be covered. Sub-limits may be fixed at the

d) discretion of the bank’s incentive for good performance, credit limits could be
 enhanced to take care of increase in costs, change in cropping pattern, etc.

e) Conversion/ re-schedulement of loans also permissible in case of damage to

crops due to natural calamities

.Operations may be through issuing branch or at the discretion of bank, through other designated branches.
Security, margin, rate of interest as per RBI norms. Interest to be charged on the credit balance in the
account. Withdrawals through slips/ cheques accompanied by card and passbook

1. Swarozgar Credit Card (SCC) Scheme

The Swarozgar Credit Card scheme envisages adequate and timely credit,
both Working and block capital, to small artisans, handloom weavers, service
providers, Fishermen, self-employed persons, rickshaw owners, other micro
entrepreneurs in Rural and urban areas, in a flexible, hassle free and cost
effective manner from the Banking system. This facility also includes a
reasonable component for meeting Consumption needs. 9.84 lakh cards have
been issued cumulatively by banks involving a credit limit of Rs.4, 007.33 crore,
as at the end of March 2009.

2. Rashtriya Krishi Bima Yojana

Crop loans disbursed under KCC Scheme for notified crops are covered
under Rashtriya Krishi Bima Yojana (RKBY). All farmers (both loans and non-
loaners irrespective of their size of holdings) including sharecroppers, tenant
farmers growing insurable crops are covered. 50 per cent subsidy in premium
allowed to Small and Marginal Farmers, to be shared equally by the Government
of India and State Government/ Union Territory.
3. Personal Accident Insurance Scheme

A Personal Accident Insurance Scheme (PAIS) is attached with KCC, which

covers risk of KCC holders against accidental death or permanent

disability up to a maximum amount of Rs.50, 000 and Rs.25, 000, respectively,
resulting from accidents caused by external, violent and visible means. The
insurance premium payable on personal accident insurance coverage to KCC
holders will be Rs.15 for a one year policy and Rs.45 for three years. The
premium payable to the insurance company is shared between the KCC issuing
bank and the KCC holder in the ratio of 2:1.

12. Cash Credit (Hypothecation) Limits to traders

The bank had not taken up the activity in a big way though there was
enough potential in its area of operation. There were only a few cased of CC
limits to individuals.
i) Stock was not verified by the bank official on periodical basis.

ii) Stock statements were not obtained periodically to ensure margin.

iii) Neither Drawing Power Register maintained nor drawing power was worked
out while allowing operations in CC Limit

iv) Fresh documents and DPN were not obtained at the time of renewal of CC
limits.

v) Due to lack of pre sanction appraisal, monitoring , supervision and post

disbursement follow up, certain CCL accounts had become NPA and bank /
branch had not initiated action to recover the overdue.
 GOALS FOR FUTURE (2009-2010)

 Disbursement of Rs. 1500.00 crores loan under Short Term Agriculture loan.

 Disbursement of Rs. 90.00 crores loan under Investment Credit (Agriculture &

Non-Agriculture).

 Attain the level of Rs. 1650.00 crores in Deposits of the Bank.

 Attain the level of Rs. 2500.00 crores in total loan outstanding of the bank.

 Attain the level of Rs. 3700.00 crores in working capital of the bank.

 Complete the computerization of Apex Bank and all District Central

Cooperative banks.

 To open two new branches’ in Jaipur city.

 To promote formation and loan disbursement of self Help Groups.

 CHAPTER-2
Project profile

 Objectives
 Functioning Area

PROJECT PROFILE

OBJECTIVE

 To study the Indian Banking System

 To study in detail the functioning of Co-Operative Bank

 To study in detail the functioning of private banks of India

 The analysis of the investment products and services provided by Co-

Operative Bank and ways to improve them to improve the profitability of
theBank
 FUNCTIONING AREA FOR THE PROJECT

By formulating the idea of the project I had planned a strategy

 I had taken the full detailed study of about the investment products
offered by the bank.

 I studied the previous sales of the investment products.

 I observed the criteria of the people who visited the bank and their views
on investments with bank.

I talked with customers during their transaction period with the bank officials
 CHAPTER-3

BANKING ACTIVITY

 CMS (CASH MANAGEMENT SERVICES)

 RTGS (REAL TIME GROSS SETTLMENT)

 CLEARING

 CASH

 CC (CASH CREDIT)LIMIT

 FRONT DESK-DD/PO/RTGS/TRANSFER/CUSTOMER QUERY

AGRICULTURE LOANS/COMMODITY FINANCE
CMS (Cash Management Services)

In today competitive market place, effectively managing Cash flow can make
difference between success and failure. Co-operative bank offers a wide range of
collection and payment services to meet your complex case management needs. Payment
received from your buyers made to your suppliers are efficiently processed to optimise
your case flow
Position and to ensure the effectives management to your suppliers of your
business ‘operating funds. The flow of receivables and payables can also be seen
through our web solution above all our quick adaptation of the latest technology
differentiates us from the other competing banks.
Co -operative bank present payment solutions. Save on effort, time and worry. Plus
our electronic clearing services help serve you even better.
With our collections services you can collect regular and recurring payments from
your customers more efficiency .our centralised CMS solutions enables quick access to
your company funds with matching MIS/reports through emails web solutions. These
deposit are directly credited to a designated account regardless of where they are made.

CMS ADVANTAGES

 Online web CMS collections

 Online web CMS payments
 Extensive network
 Lower interest costs &improved liquidity
 Centralised services desk
 Advantages of web CMS
 Comprehensive MIS
 Mobile alert services
 RTGS (REAL TIME GROSS SETTLEMENT)

“RTGS are a funds transfer mechanism where transfer Of money take place from
one bank to another on real on gross basis settlement in real time means payment
transient is not subjected to any waiting period the transfer are settled as soon as they
are processed gross settlement means the transfer is settled on one to the basis without
bunching with any other transfer payment are final and irrevocable.

CASH
Cash in bank means deposition of cash on the cash counter and payment made to
the customer on the cash counter. Every bank branch has a cash retention limit which
mean the amount if cash is can keep in the branch. High value cash deposit of 10 lakh and
above are two monitors by the bank and payment. 50 thousand above deposit in an a\c in
a day require pan no. or form 60.

A) Cash In hand which includes notes and coins.

B) Current a/c with schedules and non-schedules bank (demand deposit ) earning no
– interest
Deposit account with bank (time deposit) earning interest
 “Cash is liquid assets or liquid resources owned by a firm which enable it to
purchase goods or services”

CLEARNING
Clearing: - Is a method of funds settlement between banks.
Clearing Inward: - It means cheque of a bank which is presented by other banks to it for
payment purchase.
Clearing outward: - It means cheque which our bank presents to other banks for payment
to our customers.

CASH CREDIT LIMIT

Cash credit is a facility given by the bank there highly reputed customer like as over
draft and to other customer on their mortgage of any assets. in this facility customer can
withdraw from his account up to maximum of his limit and deposit money when he have
interest on this facility will be charged on daily debit balance method.

AGRICULTURE LONS
Which loan given to existing or prospected formers for there need of finance for
purchase of agriculture, land, equipment’s, and maintaining and operating of agriculture
activities.
 CHAPTER-4

COMPARATIVE DATA ANALYSIS

OF
BANKING PRODUCTS

 COMPARISON OF CURRENT ACCOUNT

 COMPARISION OF SAVING ACCOUNT

 COMPARISION OF BANKING FACILITIES

COMPARISON OF LOAN
COMPARATIVE DATA ANALYSIS OF BANKING PRODUCTS

Data collection:
During my data collection, data was collected:-
• From Banks

• From Banks Website

Four Banks were selected SBI, SBBJ, BOB, and HDFC

LIST OF COMPETITORS
• BOB

• SBI

• SBBJ

• HDFC BANK

• IDBI

• AXIS BANK

• ICICI BANK

• PNB
 COMPARISION OF SAVING ACCOUNT
RSCB COMPETIVE BANK

 Single type of saving a/c  Various type of saving a/c like

Low opening charge
 Various Banking facilities like
ATM, FD Sweep, Accidental
coverage are not available
Silver, Saving plus, Super saving
a/c, High opening charge
 Various Banking facilities like ATM,
FD Sweep, Accidental coverage
are available

COMPARISON OF CURRENT ACCOUNT

RSCB COMPETIVE BANK

 Low opening charge-3000
 High opening charge -10000
 Only local cheque book are
 Local cheque book & multi-city
given
cheque book are given
 Stop payment charges
 Have stop payment charges but
applicable
it’s free for Net Banking

COMPARISON OF LOAN

RSCB COMPETIVE BANK

• Low limit of Loan amount for e.g.
• High limit of loan amount for e.g.
Personal loan 1 lack or 8 times of
Personal loan
monthly salary
SBI Bank- 12 time of monthly income
SBBJ Bank- 18 time of monthly Income
HDFC Bank- Rs.15,00,000 for any
purpose

• Low interest Rate then any other bank

generally it is 0.50 or 1 % approx. low

• In some loan low processing fees like

Home loan Rs.100(fixed)

Mortgage Loan 0.50% of loan amount

• High interest rate

SBI - 13.25%

HDFC Bank- 14%

BOB -13.25%

• In some loan high processing fees

comparison RSCB bank
 CHAPTER-5

RESEARCH METHODOLOGY

 Research methodology

 Research design

 Consumer Data Analysis and Interpretation

RESEARCH METHODOLOGY

Research Methodology refers to the tools and methods used for obtaining
information for the purpose of study
Data was collected from secondary; their current brand strategies were
determined. After a thorough analysis of the above they were evaluated and
suggestions for future are made.

RESEARCH DESIGN

The preliminary research involved collecting data from the secondary sources
to understand the background and the nature of phenomenon.
After this, an exploratory research was undertaken the factors of less sale of
investment products and give a complete account of their strength.

CONSUMER FEEDBACK ANALYSIS

Data collection:

During my data collection, data was collected from:-

 Visitor

 Bank customer

 Shopkeeper

Sample size was 150.

Q.1 Do you have any bank account?

a) YES b) NO

Yes No Total
No. of Respondents 110 40 150
% of Respondents 73 27 100
 Q.2 In which bank do you maintain your bank account?
a) AUCB b) SBI C) SBBJ d) ICICI

AUCB SBI SBBJ ICICI

Total
No. of Respondents 50 35 45 20
150
% of Respondents 33 24 30 13 100
Q.3 which type of account (s) you hold?

a) Saving a/c b) Current a/c

c) Fixed Deposit a/c d) Regular Deposit a/c

Saving Current F.D. R.D. Total

No. of Respondents 50 65 20 15 150
% of Respondents 33 44 13 10 100
Q.4 What all benefits and services are you getting from your bank?
a) Net Banking b) Super Saver a/c

c) 24-hours ATM d) Demet service

(Net Banking) (Super Saver a/c) (24-hoursATM) (Demet service)

Total
No. of Respondents 45 30 51 24
150
% of Respondents 30 20 34 16
100
Q5. Are you satisfied with the services of your bank?

a) YES b) NO
Yes No Total
No. of Respondents 105 45 150
% of Respondents 70 30 100
Q.6 Do you want to switch your bank to the new one?

a) YES b) NO

Yes No Total
No. of Respondents 115 35 150
% of Respondents 76 24 100
 Q.7 what more facilities/services do you expect from a
bank?
a) Net banking b) Super saver a/c
c) 24-hours ATM d) Demat services

Net banking) (Super Saver a/c) (24-hoursATM) (Demat services) Total

No. of Respondents 45 25 65 15 150
% of Respondents 30 17 43 10 100
 Q.8 Do you favor the implementation of the
computerization and core banking solution?
a) YES b) NO
Yes No Total
No. of Respondents 145 5 150
% of Respondents 96 4 100
 Interpretation & Analysis

 It was found that the banks with most ATMs have gained priorities in the minds
of the customers.

 Different bank have different schemes for different age groups. Some banks
are giving privilege to senior citizens, while others to child group etc. But RSCB
have not any such schemes targeted to different age group.

 The study has shown that the customers want better branch network so that
they can operate their account from different city also.

 The study has shown that since different bank are providing different facilities
to different type of retail banking products so in lieu of better facilities customer
have different account in different banks.

 The study has shown that many people don’t want to open account in
Rajasthan State Cooperative bank because they think that the services like
ATMs, Phone- banking, internet banking etc. not provided by these banks.

 The study has shown that there is a growing concern among the customers
about the attitude of bank employees towards them.

 Due to limitation of time very few customers could be contacted. For any
study to be practically meaningful, these number need to be significantly
higher.

 The environment available for filling the questionnaire or attending the

interview is not very conducive for serious interaction and some of the
responses may be casual, thus affecting the final analysis.

 In any detail study, it is possible to add many other variables.

 The sample size was not large enough and may not be representative of the
whole population.

 The scope of study was limited to only certain product categories and
cannot be generalized to all the product categories.
 Chapter-6
RECOMMENDATIONS & SUGGESTIONS

• Advertising is not appropriate, as many people are not aware of Rajasthan State
Cooperative Bank. Therefore Hoarding and Boards should be displayed at various
prime locations in the city.

• Timely payment of salary and Promotion of employees will boost their morale.

• All the complaints of Customer should be deal in proper manner because it is the
customer who will give good or bad mouth about bank services.

• Non maintenance & other charges which are very high as compared to other Banks
should be reduced.

• Existing customer should always be informed about the new product.

• Regular connected with customer.

• Problem faced by account manager during opening the account should be forwarded
to deputy manager by branch manager. This will help to sort out all the problems.

• Proper training of Bank staff to give impressive presentation.

• Proper Co ordination between Marketing and Operation need to be developed.

• Promotion of various scheme by Rajasthan State Cooperative Bank.

 Chapter-7
Limitation of Study

The following aspects have been identified on some of the major areas of
concern for the bank :
 Delay in submission of statutory returns.

 Bank's performance in implementation of schemes, formulate for reshedulment of

agriculture loans accounts on account of farmers in arrears was not found to be
satisfactory.

 Wrong classification of rescheduled accounts under IRAC norms.

 Defective documentation

 Problem of imbalance at GSS level.

 Lack of internal checks and control system

 Poor fund management

 Operational deficiencies and poor growth rate in loans and advances and deposits.

 Operational deficiencies and poor growth rate in loans and advances and deposits.
Over dependence on the short term loans there by reduction in the interest margin.
 Non diversification of loans portfolio. Bank should increase its funding in medium terms
and long terms loan.

 Nonuse of latest credit intervention initiatives such as Kisan club, SHPIs, REDPs, TME
cell WD Cell, etc.

 Meager financing in SHGs.

 Poor HRD planning and training

 Lack of Supervision and initiative for strengthening the PACS on other affiliated

societies.
 Lack of supervision and initiatives for strengthening the PACS and other affiliated
societies.

 No use of advance technology such as computerization etc.

 Poor security arrangements at branch level

 Chapter –8
Conclusion

 The bank should therefore look forward to promote investment opportunities

during their visit through banners, leaflets and pamphlets, etc. and increase the
awareness levels.

 The company must take strong steps in promoting the investment option and
generates desire and interest towards the products. A complete new market
strategy needs to be formulated.

 Most of the customers were inclined to invest in insurance schemes in which they
showed preference for automobile insurance. Firstly, the corporation should target
the existing customer base investment plan and try to increase their awareness
levels. Then they should make the other customers of the bank at least aware of
the various schemes so that the next stage of interest, desire and action becomes
easy to execute.

 It was surprising to note that some of the respondents having account in co-
operative Bank had investment in nearest rival HDFC. Corporation should take
stern steps to channelize the investment towards itself. The corporation should
also work on the factors, which lead to investment in other banks.

 Location and loyalty towards the old banks were the key factors for this particular
behaviour. The corporation therefore should give a serious thought to these
aspects and try to provide service, which can somehow make a dent in the loyalty
and more trust towards the state owned banks.

 Bank should look to open new branches with proper planning and careful
selection of the location, which is convenient to the target customers especially in
places where there are a lot of option in front of the consumers.
Advertisement play an important part in the brand recall of the corporation therefore, bank should
look to create a campaign, which provides the consumers with the basic knowledge and general
attraction towards the products offered.
 Co-operative Bank should look to tap the untapped market and increase their
market share. It is very surprising that in spite of the high satisfaction levels of the
current customer base the market share of the bank is stagnant. This shows a lack
of hard-core brand loyal customers. Efforts should be made to lead the consumers
to this level of loyalty so that more strong work-of-mouth should be there.
APPENDIX
 BIBLIOGRAPHY

 Kotler, Philips, Marketing Management.

 C.R.Kohari,” Research methodology”.

 Schiffman L.G and Kanuk L.L,” Consumer Behaviour”.

 Tull Donald and Hawkins Dell.” Marketing R