Chapter 1

INTRODUCTION
 Chapter 1

INTRODUCTION

1.1INTRODUCTION OF THE TOPIC :

Agriculture is the backbone of the Indian economy. More than 60% of Indian people depend
upon agriculture, either directly or indirectly for their livelihood. Considering the dominant role
of the sector and the importance of the credit as an input a multi agency approach has been
adopted by RBI for ensuring credit flow to the sector.

The KCC scheme introduced in 1998-99 was a step towards facilitating the access
to short term credit from the borrowers to the financial institutions. The scheme was conceived
as a unique credit delivery mechanism, which aimed at provision of adequate and timely supply
of short term credit to the farmers to meet their crop production requirements, with the help of
this loan farmers are able to buy everything for agriculture like seeds, fertilizers, pesticides etc.

The scheme is under implementation in the entire country by the vast instrumental
credit framework involving commercial banks, Regional Rural Bank and Co-operative Banks
and has received wide acceptability amongst bankers and farmers. However during the last 14
years of implementation many problem are encountered by the policy maker, implementing
banks and farmers in the implementation of the scheme recommendation of various committee
appointed by govt of India and studies conducted by NABARD also corroborate this fact.
According to govt of Indian, Ministry of Finance constituted a working group to review the KCC
scheme.

1.2 BRIEF REVIEW OF LITERATURE:

In the present years the academicians, economist, government as well as non-

government agencies have conducted various research studies on different aspects of banking
development. Some of the research articles relating on the topic are reviewed as below:
 Mr. Rajib Sarma, Nalbari (2011) had conducted a report on “Management in
disbursement of different types of loan and advances of AGVB”. He mainly emphasis in some
following points

i. Interest rate on loan is very high and it is difficult for the farmers to avail a loan.
ii. 60% of rural people unaware about the loan taking system of bank.
iii. Generally bank gives preferences to salarised or professional person in case of
giving loan.

“Comparative study on loan given process of two banks” this project is done by Mr.
Saurav Kumar, Kolkata (2012), for this analysis he took two banks namely SBI and HDFC.
Both the banks gives loan to their customer but interest rate of HDFC bank is more than the SBI
and HDFC generally give loan for housing purpose.

Jasdeep kaur, Delhi (2013) was done a project regarding “E- banking or online banking
facility in Indian banking sector” he refers that online banking system provides is basically
develop for online banking balance enquiry. Funds transfer to another account in same bank,
request for cheque, change of address, stop payment of the cheque etc.

The Assam Tribune Guwahati (2013), The State Agriculture department and the
AGVB today signed an MOU for expediting the ambitious farm mechanization drive the state.
The MOU is expected to go a long way in bringing the farmers from poor economic backgrounds
under the ambit of the farm mechanization drive. The Agriculture Department and AGVB agreed
to work jointly for implementing the various schemes relating to farm mechanization. The poor
farmers will now get loan from the AGVB to bear the cost of the non- subsidised portion.

AGVB is main bank of our state (Assam) who works for development and progress of
rural areas, so this study is basically done on entire process of giving and getting KCC loan of
AGVB, also analysis the problem of implementing banks and the farmers in the implementation
of the KCC scheme.
1.3 OBJECTIVE OF THE STUDY:

a) To find out the important criteria to be considered while providing KCC loan
to the farmers.

b) To find out the level of farmers satisfaction with the above mentioned scheme
(KCC loan)

c) To find out the problem faced by the Bankers while giving loan.

1.4 SIGNIFICANCE OF THE STUDY

The output and data that can be drawn from this research will be of great contribution to
the field in the academics and for the practitioners. This study will try to assess and evaluate the
level of satisfaction of the customers in the banking (i.e AGVB) business in India, thus revealing
and studying the salient and influential factors that could affect the satisfaction of the customers.
It will also reveal areas and factors that need consideration for improvement. It will also try to
link the relationship, if any of the customer satisfaction level and success of the firm, in support
of the other previous literatures. This study then will ultimately reveal the strong points of the
AGVB bank and it edges as reasons for the continuous boom and development of the bank.
Moreover, the study will also be an important piece of documents for other research scholars
who want to conduct research in the similar field.

1.5 SCOPE OF THE STUDY

Period of the study: The study has been carried out and performed for duration of the 3
months from August to October, 2016. The initial 30 days have been contributed for field
survey.

Area of study: Patacharkuchi, Barpeta district

The study is based on the satisfaction level of the farmers after getting KCC loan and also the
problems of the bankers while providing KCC loan.
1.6 RESEARCH METHODOLOGY

Methodology is the procedure in which researcher go about their work at

describing, explaining and predicting phenomenon. For the research study to be productive, the
first step of the research methodology is the identification of these farmers satisfaction level
regarding the KCC loan and as well as know about the problems which are faced by the bankers
while providing KCC.

1.6.1 Research Design:

The research design adopted in the present study is descriptive. The

present study has enquired and brought forward the results concerning the set of
objectives specified before, which relates to description of the state of affairs of the banks
under study in relation to customers’ satisfaction, as a result it clearly states that it is a
descriptive research study, which has included fact finding and enquiries of different
kinds.

1.6.2 Data source:

The study requires the data to be collected from two different sources i.e the
primary source and the secondary source.

(a) Primary data: Primary data are collected from the farmers and the bankers of
the bank and it collected from the following manners -

Questionnaire: For the purpose for collecting the necessary

information the researcher have prepared a questionnaire with close ended,
multiple choice as well as open ended questions.

(b) Secondary data: Secondary data are collected by referring to various books,
newspaper, magazines, journals, official website of the bank under study of
other sites.
1.6.3 Sampling Design:

Universe: The universe of the study includes all the farmers of that
village.

Sampling Unit: The sampling unit is an individual (farmer) who is taking

KCC loan

Sample Size: the sample size for the study is 50 individuals.

Sampling Technique: The sampling technique adopted in this study is

Judgmental cum convenience sampling technique

Research Instrument used: A structural questionnaire is prepared and

presented to the respondents for their valuable response.

1.6.4 Tools of data representation:

The data collected through questionnaire is analyzed with statistical tools for
effective presentation of data the following figures and diagrams are used in this
report:

Table: The study includes various tables which are used to present statistical data
in systematic manner.
Bar diagram: In this study bar diagrams are used to present and analyze the data.
Pie diagram: Pie chart is also used in this study.

1.6.5 Technique of data analysis:

For the purpose of analysis and interpretation of data simple percentage

method has been used. Wherein,

Percentage of the respondent= Respondent/ Responses received x 100

Total no. of respondents
1.7 LIMITATION OF THE STUDY:

The limitation of the study given below-

i. The time period considered for the study is 2 months, so in depth study is not
possible within this short period.

ii. This study confined to a very small number of respondents, so the finding may not
be all representative.

iii. The information provided by the bankers and the farmers may be biased. Hence the
results may not be accurate.

1.8 CHAPTER PLANNING:

The chapter has been divided into as many as four chapters are below:

I. Introduction
II. Organizational profile and about Kisan credit card
III. Data analysis and interpretation
IV. Findings, recommendation and conclusion

A brief description of the contents included in each chapter is given below:

In the first chapter, has been sub-divided into nine parts. The first part of the chapter is a brief
discussion on the importance of the agriculture and about the scheme of the KCC loan of the
AGVB. The second part is review of literature followed by the statement of the problem, the next
part is the objective of the study followed by the research methodology which act as a blue print
for the entire study. The fifth part of this chapter is about the scope of the study followed by the
limitation and need of the study and finally ends up with the chapter planning.

In the second chapter, discuss about the banking sector specially the selected bank i.e AGVB
and also a brief description on KCC and the SWOT analysis of the organization.
In the third chapter, the primary data collected through questionnaire survey are calculated and
analyzed in details.

In the forth chapter, includes a summary of the findings of the study, suggestions and
recommendation which may help the farmers and also the bankers for increasing their growth.

The Annexure is furnished at the end in support of the study which includes the bibliography,
questionnaire, photo of KCC card
 Chapter 2

Organizational Profile and

about the Kisan Credit Card

Chapter 2

Organizational Profile and about the Kisan Credit Card

2.1 About Assam Gramin Vikash Bank:

Assam Gramin Vikash Bank was established on 12th January, 2006 after amalgamation of
4 Regional Rural Bank namely pragjyotish Gaonlia Bank, Cachar Gramin Bank, Lakhimi
Gaonlia Bank and Subansiri Gaonlia Bank. Assam Gramin Vikash Bank’s head office is situated
at Guwahati, Bhangagarh. The main purpose of this bank is to provide loan to the rural people or
farmers and development of rural area. In all over Assam 403 member of branches of Assam
Gramin Vikash Bank and it is the Bank which have highest branch in Assam.

2.2 History of Assam Gramin Vikash Bank:

After independence the commercial banks and co-operative banks are raising their
business and covered almost all the areas. But they did not fulfill the rural loan demand. For
solving the problem, the government of India established the Regional Rural Bank in 1975 in the
month of October. Government of India introduced on act of Regional Rural Bank and in 1976
accordingly promulgated an ordinance which was subsequently replaced by the parliament as
Regional Rural Banks Act, 1976.

In Assam all together five RRB’s were opened at different point of time beginning with
Pragjyotish Gaolia Bank which was established in 6 th July,1976 with head office at Nalbari. It
covered almost the complete lower Assam. Second RRB of Assam namely Lakhimi Gaolia Bank
was established in 29th July, 1980 and its head office was Golaghat. It covered half part of upper
Assam. Third RRB’s of Assam was Cachar Gramin Vikash Bank which was established in 31 st
March, 1981 and its head office was Silchar. This bank covered the Borak Valley. Forth RRB’s
of Assam was established in 30th March, 1982 namely Subansiri Gaolia Bank and its head office
was Lakhimpur. It covered the rest half part of Upper Assam, above mention all banks were
sponsored by United Bank of India.

The other RRB’s of Assam is Karbi Lagnpi Dehangi Bank and its sponsorship bank is
State Bank of India, was established on 27th January, 1982 under section 3(1) if RRB Act, 1976.
It covers the Karbi Anglong and Dima Hasao District.

The RRB was facing many problems in providing services to customers. For solving this
problem in 2006 on 12th January banks whose sponsored was United Bank of India were
amalgamated sponsored bank. The new bank is named Assam Gramin Vikash Bank and the head
office of the bank is Guwahati, bhangaghar, G.S Road.
2.3 MISSION:

With the advantages of largest network of branches of rural Assam, it is the duty and
obligation to serve the rural masses, the deprived and denied with all the banking facilities for
augmentation of agricultural production, upliftment of the downtrodden employment of real
youth, with commitment of the sacred task of all out development of the Rural Assam. The
bank’s initiatives have strengthened our culture and we aim to be the top class Rural Bank of the
country.

2.4 Features of Assam Gramin Vikash Bank:

i) The area of operation of each branch of AGVB has been limited to a specified
region comprising one or more districts or place.
ii) In case of giving loan, they give preference to small farmers, cottage and small
scale industries and businessmen.
iii) This type of banks takes low interest of loan. The leading rate of these banks
cannot be higher than the prevailing leading rates of co-operative credit societies
in any particular state.
iv) The AGVB are governed by a Board of Directors who exercise all the powers and
discharges all the functions. The Board consists of a member including a
chairman who is appointed by the Central Government.
v) AGVB takes relief from Reserve Bank of India.
vi) The farms used by the banks are published in regional language and the terms and
condition of taking loan is very easy.

2.5 Capital of Assam Gramin Vikash Bank:

 The sources of capital of AGVB are Central Government, State Government and
Sponsored Bank (United Bank of India).

Sources of Capital Percentage

of Capital
Central Bank 50

State Bank 15

United Bank of India 35

Table 2.5:

2.6 Organizational Structure of AGVB:

HEAD OFFICE

Chairman

S. S. Singh

General Manager

Mrs. S. Bhattacharjee Ojah

C.M C. M C. M C. M
U. D Sarma A. Hussain D. R. Borah A. K Neog
Personal Dept. Recovery & Credit IT,MIS Dept Vigilance Dept
Monitoring Dept.
C. M C. M C. M C. M
B. K. Deka R. K Sarma R. Ahmed A. Adhikari
Accounts & Development Dept. Credit Dept. Audit & Inspection
Investment Dept. Dept.
(As per 10th Annual report of AGVB, 2014- 2015)

2.7 Board of Directors: (as per 9th annual report of AGVB)

1. Chairman- appointed by United Bank of India (sponsor bank)

  Sri Shio Shankar Singh, from 02-11-2012

2. Nominee Directors of Government of India, nominated by Government of India under

RRB Act, 1976
 Sri S.Z Laskar, from 17-12-2008
 Sri P.L Dev Mahanta, from 02-06-2009
3. Nominee Director of RBI, nominated under RRB Act 1976.
 Sri R.C Bal, AGM, from 05-11-2013.

4. Nominee director of National Bank

 Sri Monomy Mukherjee, DGM
NABARD, Guwahati, from 01-04-2013

5. Nominee Director of Sponsor Bank

 Sri Manas Dhar, GM
United Bank of India, Kolkata, from11-06-2012
 Sri G.P Sarma, DGM
United Bank of India Guwahati, from 11-06-2012 to 17-09-2013
 Sri Dinesh Musahary, DGM
United Bank of India Guwahati, from 18-09-2013

6. Nominee Director of Govt. of Assam

 Sri Anjan Bardoloi, ACS
Additional secretary, Govt. of Assam, from 07-07-2012
 Sri A. Chakraborty, ACS
Director Tourism, Govt. of Assam, from 13-07-2011
 Sri R.R Hazarika, Director
Finance (institutional finance) Dept, from 18-09-2013

2.8 Regional Office: (as per 9th annual report)

Table 2.8 Showing the regional office and their Number of branches.
 Regional Regional Manager District covered Nos. of
Office Branches
Nalbari D.P Adhikary Nalbari, Baksa, 71
Barpeta, Darrang,
Udalguri
Golaghat H.S Upadhaya Golaghat, Jorhat, 77
Nagaon
Silchar K. Bhowmik Cachar, karimganj, 46
Hailakandi
Lakhimpur A Talukdar Lakhimpur, Sonitpur, 58
Dhemaji
Guwahati B. Borah Kamrup, Kamrup(m), 42
Morigaon
Kokrajhar H.P. Devnath Kokrajhar, 51
Bongaigaon, Chirang,
Dhubri, Goalpara
Dibrugarh G. Dutta Dibrugarh, Tinsukia, 51
Sivasagar

2.9 Services of AGVB:

Like other Commercial banks, AGVB accepts deposits from the public and provides loan
to the customers.

Deposit scheme:
i. Savings Bank Account: Savings accounts are provided to encourage savings of
households. Money in this account may be deposited any member of times. However
restrictions are put on withdrawals from this accounts and bank also offer a
reasonable rate of interest.
ii. Current account: Current account is also known as running account. Money in this
account can be deposited or withdrawal any number of times, without any
restrictions. Generally no interest is paid on this account.
iii. Fixed Deposit Account: It is an account where money is deposited for a fixed period
of time. The money so deposited which cannot be withdrawal before the expiry of the
fixed period. The rate of interest paid on this account is higher.
iv. Recurring account: In this account people/public deposit money on regular basis for
fixed period and comparatively higher rate of interest is given by bank.
 Loan and Advance scheme:
a. Micro finance: This type of loan basically give in small amount which are doing as a
self help group or joint liability, they take micro finance
b. Education loan: The AGVB provides education loan to the brilliant students who may
not able to study for the lack of money. Bank start to counting his/her interest after 6
months completed of his/her course.
c. Personal loan: Both salarised self employ person apply for personal loan. This loan is
not for a particular product.
d. Housing loan: Bank provide house loan to the public to build a house against the
security of a house or property. Types of home loan are home purchase loan. Home
improvement loan, home extension loan, home construction loan etc.
e. Loan from Agricultural Activities: some farmers are not able to get facility from
Govt. AGVB provides various agricultural loan to these farmers.
f. Overdraft facility: Overdraft means an agreement with the bank by which a current
account holder is allowed to withdraw more than the balance standing to his credit
upto a certain limit.
g. Trade loan: The AGVB provides trade loan to the businessman successful running of
the trade.
h. Car loan: AGVB helps to rural people to improving their life style. So, the banks give
car loan to the public (rural).

Others services of AGVB:

a. ATM: The AGVB newly launch ATM facility.
b. Gift cheque: Bank offer gift cheque to the public. By paying equivalent amount one can
by cheque for presentations on occasions like birthday etc.
c. Locker facility: Banks accepts the client’s valuables and important documents for safe
custody. For this facility bank charge commission.
d. NEFT: In this system people are transferring to money in one bank to another without
cutting any charge.
AGVB also provide call deposit, Demand Draft facility, Remittance facility to all the
customer.
2.10 Performance of Assam Gramin vikash Bank:

Source: Field work

 Performance of AGVB
12000

10000

8000
In Crore

6000

4000

2000

0
2006 2007 2008 2009 2010 2011 2012 2013 2014

Figure 2.10 showing the performance of AGVB.

2.11 History of Kisan Credit Card:

The KCC scheme was introduced in August 1998, with major share of crop loans being
routed through it. The bank had issued more than 50 lacks Kisan Credit Cards during the year
1999-2000. Co-operative banks have issued the maximum number of Kisan Credit Card (66%),
followed by Commercial Banks (28%) and Regional Rural Bank (6%).

During the last 14 years of implementation of the scheme, many problems were
encountered by policy makers, implementing banks and farmers in the implementation of the
scheme. Recommendations of various committees appointed by the Govt. of India and studies
conducted by NABARD also corroborate this fact. According, Ministry of Finance, Department
of Financial Service, Govt. of India had constituted a working group under the chairmanship of
T.M Bhasin, CMD of Indian Bank to review the KCC to suggest change in made in the KCC
scheme to make it a smart card cum Debit card.
On acceptance of the recommendations of the working group by the Govt. of India,
revised guidelines of KCC were issued by NABARD to co-operative banks, RRB’s and by RBI
to commercial Banks on 11th May 2012.
 Improvement and the guidelines over the earlier Kisan Credit Card scheme are as
under-
a. More activities covered under term loan.
b. Emphasis on facing joint liability groups.
c. Wider delivery channels: operations through Branches/cheque facility/ATM etc.
d. Paper card to plastic card- KCC in the form of ATM enabled debit card.

2.12 Purposes of kisan Credit Card:

To provide timely and adequate credit to farmers to meet their production credit needs
(cultivation expenses) besides meeting contingency expenses and expenses related to ancillary
activities through simplified procedure facilitating of loans as and when required.

2.13 Terms of KCC loan:

The KCC loan is sanctioned for 5 years. But the loan amount gives to farmers in 10
installments. In a year give to farmer loan in 2 installments. One installment is for Kharif
cultivation and another for Robi cultivation. The term of Kharif cultivation is 30 th September to
31st March. The farmers can give interest from 31 st March onwards. After taken the interest,
Bank gives loan installment for Robi cultivation to the farmers. Term of the Robi cultivation loan
is from 31st March to 30th September. The farmers can give interest to bank from 31th September
onwards.

2.14 Eligibility for the loan:

The eligibility of farmers for taking the loans as under-

a. Owner cultivators, tenant cultivators and share croppers
b. Agricultural borrowers having good track record for the last 2 years (i.e maintaining
standard loan account).
c. Credit worthy new borrowers can also be financed.

2.15 Security of Kisan Credit Card:

 If the loan is less than 1 lacks Bank don’t want any security for the loan. But if the loan
amount is more than 1 lacks Bank want some security. Basically the security is land.

2.16 Interest rate of Kisan Credit Card:

If the loan amount is less than 3 lacks the rate of interest is 10%, But the Govt. of India
give 3% interest as subsidy. So, farmers are giving 7% interest to the bankers.
If the customers are regularly transacting with bank than the Govt. give him 6% interest
as subsidy.
If the loan amount is more than 3 lacks then the rate of interest is 10% and the customer
don’t take any subsidy from government.

2.17 SWOT Analysis:

Swot is a strategies planning tool used to evaluate the strengths, weakness, opportunities
and threats of a project. It involves specifying the objective of the project and identifying the
internal and external factors that are favorable and unfavorable to achieving the objectives. The
strengths and weakness usually arise within the organization and the opportunities and threats
from external factors.

Strength:
a. Banks provide adequate and timely credit to the farmers through Kisan Credit Card. It
develops rural area.
b. There is a flexible in the operation of the facility in terms of number of withdrawals
and in repayment of loan.
c. Generally interest of any loan of AGVB is 10% but in case of KCC loan government
of India give interest subvention and this subvention is extended to 6% for regular
transacting customers.
d. Certain few features, such as, personal insurance for all the card holders ranging
from Rs. 25,000 to Rs. 50,000 against permanent disability or accidental death, an
effective measure for risk mitigation, were also incorporated in the scheme.
Weakness:
a. A lot of paper work is required on account of filling separate application in each
season.
b. The loan amount given through KCC is very low. So, some farmers cannot bear all
the expenses through this loan amount.
c. Usually farmers are uneducated person. So, they don’t know how to properly utilize
the loan amount.
d. Many farmers default the payment of loan. So, it create problem for the bankers,
because defaulting loan creates bad loan.

Opportunities:
a. This loan helps to increase agricultural productivity of farmers, and as well as
increase the profit of the farmers.
b. The facility is given for 3 to 5 years instead of 1 year, thus reducing the procedural
delays.
c. Due to providing this type of loan, the relation between the bankers and the farmers
increases. For this good relation farmers are also open account (current, fixed,
recurring) in the bank. This will help to increase profitability of bank.
d. If the customer regularly transacting with bank government give 6% interest
subvention on KCC loan. It is good opportunity for the farmers.

Threats:
a. Now a day, all commercial banks and co-operative banks issue KCC loan besides
AGVB. It creates competition among the banks and affects the profitability of
AGVB.
b. In modern days, banks introduce computerized system for transaction with customers.
But the farmers are not aware about technology aspect of the bank. It creates a little
problem for the farmers.
c. Political and legal change is one of the major threats of giving or getting the loan.
d. Market demand is change day by day. So, the bank takes flexible step in case of
giving various loan including KCC loan. But bank cannot do so because of the Act or
Law.
 Chapter-3

Data analysis
and
Interpretation

Chapter-3

Data analysis and Interpretation

3.1 Analysis of data:

 Analysis of data means a process where by applying statistical tools and techniques the
data collected are being summarized and explained in order to derive conclusions from them.

The data are being studied and analyzed by using tables, bar diagram and pie-diagrams as
well and wherever explanations were necessary they have been equally provided.

To prepare this project report, a field survey has been conducted with a view to find out the
perception of farmers towards the KCC loan provided by AGVB. A questionnaire was
distributed among the farmers, who already acquire KCC loan under the patacharkuchi branch,
and also some questions for the bankers relating to this type of KCC loan and their infrastructure.
The questionnaire has been distributed personally among 50 farmers. The following analysis and
interpretations are based on the basis of the data and information provided by the 50 farmers and
the bank employee provided through filling up the questionnaires.

Analysis of the respondents/ farmers Questionnaire:

Part- A
1. The first and second question asked to the respondents/farmers are regarding their name and
address:

Here around 50 questionnaires were distributed among the farmers and many of the
farmers are near at patacharkuchi branch and some of them are from Xoriyohsakla,
Morka, Horipur, Raipur, Baang nd Kumarpara.

3. The 3rd question asked to the respondents is to which sex they belong.

TABLE – 3.3A.1

Table showing sex of the respondents/farmers

 SI No. Sex No. of Respondent On the basis of
Percentage
1 Male 43 86%

2 Female 7 14%

90%
80%
70%
60%
50%
Female
40%
Male
30%
20%
10%
0%

Male
Female

SOURCE: Field Survey

Figure- 3.3A.1 showing sex of the farmers/ Respondent

Interpretation:

Here the total number of respondent is 50, and from the total number of respondent it is seen that
there are 43 Male and 7 Female respondents.

On the basis of percentage calculation:

 Male: 43/50*100 = 86%

Female: 7/50*100 = 14%

Thus, on the basis of percentage calculation also, it is seen that 86% are Male and 14%
are Female.

4. The next question asked to the respondents is based on the age group to which they belongs:

Table- 3.4A.2

Table showing age group of respondents

SI. No Age Group No of respondent On the basis of

percentage

1 18 to 30 years 5 10%

2 31 to 50 years 30 60%

3 51 and above 15 30%

SOURCE: Field Survey

 Age group

30

25

20 Age group

15

10

0
18- 30 years 31- 50 years 51 & above

SOURCE: Field Survey

Figure: 3.4A.2 showing age group of respondents

Interpretation:

From the total number of respondent, 5 respondents belong to the age group between 18 to 30
years, 30 respondents belong to the age group between 31 to 50 years, and 15 respondents to the
age group between 51 and above.

On the basis of percentage calculation:

18 to 30 years = 5/50 * 100 = 10%

31 to 50 years = 30/50 * 100 = 60%

50 and above = 15/50 * 100 = 30%

We can thus say that if we calculate on the basis of percentage than 10% belongs to the
age group between 18 to 30 years, 60% belongs to the age group between 31 to 50 years
and 30% belongs to the age group between 51 and above.

Part B:
1. The next question asked to the respondents is based on the agriculture, is agriculture main
source of income? In this analysis source of income of farmers are evaluated. The
following interpretations have been arrived at through this analysis.

Table- 3.1B.1

Table showing sources of income of farmers.

Option No. of respondent percentage

Yes 38 76%

No 12 24%

Total 50 100

Main source of Income

24%

Yes
No

76%

Source: Field survey

Figure: 3.1B.1 showing sources of income of farmers.

Interpretation:
From the above table 3.1B.1 and figure 3.1B.1 it is found that, out of 50 respondents 38 of
the farmers main occupation is agriculture and very less number of farmers i.e 12 farmers
main occupation is not agriculture that means they are also related in some other profession
or occupation.

On the basis of percentage calculation:

Yes = 38/50 * 100 = 76%

No = 12/50 * 100 = 24%

We can thus say that if we calculate on the basis of percentage than 76% of the farmers
which main income source is agriculture and on the other hand 24% of the farmers which
main income isn’t only agriculture.

2. The next question asked to the respondents is based on the types of seasonal cultivation.
This study is for analyze the types of cultivation which are done by the respondents who
has taken KCC loan.

Table - 3.2B.2

Table showing types of seasonal cultivation

Cultivation No. of respondent Percentage (%)

Kharif 8 16%

Robi 12 24%

Both 30 60%

Total 50 100%
 Types of seasonal cultivation

16%

Kharif
Robi
Both

24%
60%

SOURCE: Field Survey

Figure: 3.2B.2 showing the types of seasonal cultivation

Interpretation:

From the above table no. 3.2B.2 and figure 3.2B.2 it is found that out of 50 respondents/
farmers there are 8 farmers who are only doing Kharif cultivation, 12 farmers who involve in
the Robi cultivation and 30 farmers who are doing both Kharif and Robi cultivation.

On the basis of Percentage:

Kharif = 8/50 * 100 = 16%

Robi = 12/50 * 100 = 24%

Both = 30/50 * 100 = 60%

Now we can say that if we calculate on the basis of percentage than 16% of the farmers
which are doing only Kharif cultivation, 24% of farmers are doing only Robi cultivation
and 60% of the farmers are doing both (i.e Kharif & Robi) type of cultivation. So it is
shown that farmers doing both cultivation in both seasons.
3. The next question asked to the respondents/ farmers that the types of crops which they
are producing, this study aim to analyze the type of crops producing by the farmers.

Table: 3.3B.3
Table showing type of crops producing

Crops No. of respondent Percentage (%)

Paddy 6 12%

Vegetables 9 18%

Both 28 56%

Others 7 14%

Total 50 100%

Type of crop producing

14% 12%

18%
Paddy
Vegetables
Both
Others

56%

SOURCE: Field Survey

Figure: 3.3B.3 showing types of crops producing
 Interpretation:

Here the total number of respondent are 50, and from these farmers there are 6 who only
produce Paddy, 9 farmers who only produce vegetables, 28 farmers who produce both
(i.e Paddy & Vegetables) and there are 7 farmers who produce others that means except
Vegetables and Paddy.

On the basis of Percentage:

Paddy = 6/50 * 100 = 12%

Vegetables = 9/50 * 100 = 18%

Both = 28/50 * 100 = 56%

Others = 7/50 * 100 = 14%

Now we see that if we calculate on the basis of percentage than 12% of farmers
who produce Paddy, 18% of farmers who produce Vegetables, 56% of farmers
who produce both Vegetables and Paddy and lastly there are 14% of farmers who
produce other kind of crops.

4. The next question asked to the respondents/ farmers is based on the sources of loan which
are taken by the farmers. This study is for analysis whether the respondents borrow
money from any other source apart from banks.

Table: 3.4B.4
Table showing respondents who have taken loan

Option No of Respondent Percentage

Yes 7 14%

No 40 80%

Can’t say 3 6%
 Total 50 100%

6%
14%

Yes
No
Cann't say

80%

SOURCE: Field Survey

Figure: 3.4B.4 showing respondents who have taken loan

Interpretation:

From the above table 3.4B.4 and the figure 3.4B.4 we found that there are 7 numbers of
framers who took loan apart from any banks, 40 Numbers of farmers who doesn’t take
any loan apart from banks and from the 50 respondents/ farmers there are 3 farmers who
don’t want to share about their loan.

On the basis of Percentage:

YES = 7/50 * 100 = 14%

NO = 40/50 * 100 = 80%

Can’t say = 3/50 * 100 = 6%

 We can thus say that if we calculated on the basis of percentage than 14% of
respondents/ farmers who took loan from other sources, 80% of respondents/
farmers who took loan but not from other sources except banks and there are 6%
of respondents who don’t want to comment.

5. The next question asked to the respondents/ farmers about the crop sharing. This analysis
helps to find out the crop sharing farming of the respondents/ farmers.

Table: 3.5B.5
Table showing crop share farming.

Option No. of respondents Percentage (%)

Yes 12 24%

No 33 66%

Can’t say 5 10%

Total 50 100%
 Showing crop share farming
10%

24%

Yes
No
Can't say

66%

Source: Field survey

Figure: 3.5B.5 showing crop share farming

Interpretation:

From the above table 3.5B.5 and figure 3.5B.5 we found that out of 50 respondents/
farmers there are 12 respondents/ farmers who share their crops, 33 farmers who don’t
share their crops and 5 farmers who don’t want to say anything on this particular
question.

On the basis of percentage:

Yes = 12/50 * 100 = 24%

No = 33/50 * 100 = 66%

Can’t say = 5/50 * 100 = 10%

So from the above calculation on the basis of percentage we can say that there are
24% of farmers who share crops, 66% of farmers who don’t share their crops till
date and 10% that kind of farmers who don’t want to say.
6. The next question asked to the Respondents/ farmers about the awareness of the KCC
loan provided by the AGVB. This attempt was made to find out the awareness level of
the respondents about KCC loan.
7.

Table: 3.6B.6
Table showing the level of awareness of respondents/farmers

Option No. of Respondents Percentage (%)

Yes 47 94%

No 3 6%

Total 50 100%

Awareness of KCC loan

6%

Yes
No

94%

Source: Field Survey

 Figure: 3.6B.6 showing awareness level of farmers on KCC loan of AGVB

Interpretation:

From the above table 3.6B.6 and figure 3.6B.6 it is found that out of 50 respondents/
farmers 47 respondents/ farmers who already aware of the KCC loan which is provided
by the AGVB, and there are 3 respondents who don’t have any idea of KCC loan.

On the basis of Percentage:

Yes = 47/50 * 100 = 94%

No = 3/50 * 100 = 6%

When we calculate on the basis of percentage we found that there are 94% of
respondents who aware of the KCC loan of AGVB and 6% that kind of
respondents who not aware of this loan product. So we can say that the maximum
number of respondents/ farmers aware of this KCC loan.

8. The next question asked to the respondents/ farmers about loan taken, from AGVB or
not. This study involves analysis of the respondents who has taken KCC loan from
Assam Gramin Vikash Bank.

Table: 3.7B.7
Table showing loan taken by the farmers from AGVB

Option No. of Respondents Percentage (%)

Yes 45 90%

No 5 10%
 Total 50 100%

Loan taken from AGVB

90%
80%
70%
60% Loan taken from AGVB
50%
40%
30%
20%
10%
0%
Yes No

SOURCE: Field Survey

Figure: 3.7B.7 showing loan taken by the farmers from AGVB

Interpretation:

Here the total number of respondent/ Farmers are 50 and out of these there are 45
respondents who already took loan and 5 respondents who don’t take any kind of loan.

On the basis of Percentage

Yes = 45/50 * 100 = 90%

No = 5/50 * 100 = 10%

 When we calculate on the basis of percentage we found that there are 90% of
farmers who took loan from AGVB and 10% of respondents/ farmers who don’t
take any loan from AGVB. But it may possible that they took loan from other
banks.

9. The next question asked to the respondents/ Farmers about their loan amount which they
are taken. This study involves analysis of the respondents about the loan amount taken
from AGVB through KCC.

Table: 3.8B.8
Table showing loan taken amount of respondents/ Farmers

Amount No. of Respondent Percentage (%)

Less than 25,000 5 11%

25,000 – 50,000 28 63%

51,000 – 1,00,000 11 24%

More than 1,00,000 1 2%

Total 45 100%
 Loan taken amount
24% 2% 11%

Less than 25,000

25,000 - 55,000
55,100 - 1,00,000
More than 1,00,000

63%

SOURCE: Field Survey

Figure: 3.8B.8 showing loan taken amount of respondents/ Farmers

Interpretation:

From the above table 3.8B.8 and figure 3.8B.8 we found that out of 45 respondents/
farmers there are 5 respondents who took loan which is less than 25,000, 28 respondents
took loan in between 25,000 to 55,000, 11 respondents took loan in between 55,100 to
1,00,000 and there is 1 no. of respondent who took more than 1,00,000. In this analysis
we take 45 total respondents, because in previous survey we found that out of 50
respondents there are 5 who not aware of KCC loan.

On the basis of Percentage:

Less than 25,000 = 5/45 * 100 = 11%

25,000 to 55,000 = 28/45 * 100 = 63%

55,100 to 1,00,000 = 11/45 * 100 = 24%

More than 1,00,000 = 1/45 * 100 = 2%

When we calculate on the basis of percentage we found that there are 11% of
respondents/ farmers who took loan which is less than 25,000, 63% of
respondents took loan in between 25,000 to 55,000, 24% of respondents took loan
 in between 55,100 to 1,00,000 and there is 2% of respondents who took more than
1,00,000 KCC loan.

10. The next question asked to the respondents/ farmers about the utilization of their loan
amount that they utilize the amount only on cultivation or in other purpose. Effort is
made to find out the use of the loan amount by the respondents in any other purpose apart
from the agriculture.

Table: 3.9B.9
Table showing utilization of loan amount

Option No. of Respondents Percentage (%)

Yes 48 96%

No 2 4%

Total 50 100%
 Utilization of Loan Amount
4%

Yes
No

96%

SOURCE: Field Survey

Figure: 3.9B.9 showing utilization of loan amount

Interpretation:

From the above table 3.9B.9 and figure 3.9B.9 we found that out of 50 respondents/
farmers 48 respondents use the loan amount properly that means they utilize the loan
amount in agriculture purpose and remain 2 respondents/ farmers uses their loan amount
on fishery and other purposes.

On the basis of Percentage:

Yes = 48/50 * 100 = 96%

No = 2/50 * 100 = 4%

So, when we go for percentage calculation we found that 96% of respondents

utilize the loan amount in proper manner i.e in agriculture purpose and 4% of
respondents use their loan amount on other sectors.
11. The last/ next question asked to the respondents/ farmers that ‘ Do you have any
complain about the loan (KCC) of AGVB ’. This analysis found that, complain or problem
of farmers in case of getting the KCC loan.

Table: 3.10B.10
Table showing respondents complain about KCC loan

Option No. of Respondents Percentage (%)

Yes 5 10%

No 33 66%

Can’t say 12 24%

Total 50 100
 Complain about Loan
10%

24%

Yes
No
Can't Say

66%

SOURCE: Field Survey

Figure: 3.10B.10 showing respondents complain about KCC loan

Interpretation:

From the above table 3.10B.10 and figure 3.10B.10 we found that out of 50 respondents/
farmers there are 5 respondents/ farmers who have a problem or complain in KCC loan
process, 33 farmers who don’t have any complain on KCC loan process and 12 farmers
who don’t want to say anything on this particular question.

On the basis of percentage:

Yes = 5/50 * 100 = 10%

No = 33/50 * 100 = 66%

Can’t say = 12/50 * 100 = 24%

So from the above calculation on the basis of percentage we can say that there are
10% of farmers who have a problem or complain on KCC loan process, 66% of
farmers who don’t have any complain on KCC loan process and 24% of farmers
who don’t want to say or disclose their opinion.
Analysis of the bankers/ Managers Questionnaire:

1. The 1st 2nd and 3rd question asked to the bank officials are regarding their name, sex,
designation, branch, post office, District.
The name, designation, branch, of the officials to whom the researcher approaches
are:
Mr. Gautam Kumar Dutta
Designation: General Manager
Branch: Patacharkuchi Branch,
P.O: Patacharkuchi
District: Barpeta

2. The next question asked to the respondent is, nature of loan available from the Branch.

Here, the respondent replied that all sector of loan available in the branch, it means
that provide both priority sector loan and non priority sector loan, namely some of
the loans provided by the Patacharkuchi Branch are Agricultural loan, Small
business loan, Micro finance, Personal loan, Housing loan and more. But in this
branch still doesn’t provide Education Loan.

3. The next question asked to the bankers about the process of giving loan.

According to the bank manager (AGVB, Patacharkuchi branch) process of giving

loan to the farmers is neither complicated nor very easy i.e Medium.

4. The next question asked to the bankers/ Managers that do you take any security for
providing the KCC loan.

According to the banker, Bank doesn’t want to take any security for the loan
which amount is less than Rs. 1 lacks. But if the loan amount is more than Rs. 1
lacks bank want some security from the customers, (basically land)
5. The next question asked to the banker’s about the term of loan (period)

AGVB generally provide different terms of loan but the Patacharkuchi Branch
provide loan to the farmers for the period of 5 years.

6. The next question asked to the banker that “Is there any type of advertisement made by
the bank for introducing KCC loan”.

Yes, bank gives advertisement for introducing KCC loan. In this case NABARD
takes main role, and sometimes bank employees also visit some areas for
awareness.

7. The next question about the subsidy of the government.

According to the banker, govt. provide subsidy in KCC. Govt. of India gives 3%
subsidy on KCC loan when the loan amount is less than Rs. 3 lacks, and if the
customers are regularly transacting with bank than the Govt. gives him 6%
interest as subsidy.

8. Next question asked to the bankers about the recovery position of the loan from the
beneficiary.

Regarding this question the banker isn’t fully satisfied with the recent position of
recovery of the loan from the beneficiary.

9. The next question asked to the bankers about the default made on part of repayment of
loan.

According to the Branch Manager of Assam Gramin Vikash Bank,

Patacharkuchi branch many farmers default the loan amount at the time of
repayment of the loan. Bank issued 300 (approx) KCC loan from 2012 to till date
but only 80 farmers repayment the loan in time. The table is showing below:
 Table: 3.9

Table showing repayment of loan amount by farmers.

Option No. of Customers Percentage (%)

Yes 80 27%

No 220 73%

Total 300 100%

Repayment of Loan

27%

Yes
No

73%

SOURCE: Field Survey

Figure: 3.9 showing repayment of loan amount by farmers

 Interpretation:

From the above table 3.9 and figure 3.9 it is found that out of 300 farmers 80
farmers repaid the loan amount and 220 farmers who still not repay their loan
amount.

Calculation on the basis of Percentage:

Yes = 80/300 * 100 = 27%

No= 220/300 * 100 = 73%

So, when we go for percentage calculation we found that 27% of farmers repay
their loan amount and remaining 73% of farmers not repay till date.

10. The next question asked to the respondent is, as an employee of Assam Gramin Vikash
Bank, what are your suggestions for the better development of the bank and KCC loan.

The suggestions given by the respondent (Bank Manager) are as follows:

 Bank should advertise various types of deposit schemes and loans and advances
facilities among the villagers and common people.

 Assam Gramin Vikash Bank is facing Manpower shortage, once the bank fill up
more manpower then they could give better services to the customers.

 Improvement of infrastructure is very much necessary for better development of

the Bank.

 By encouraging the villagers and common people to have the facility of banking.

 Improvement of network functioning in branches of Assam Gramin Vikash Bank

is becoming most compulsory for the branches.

 Reduction of Non-Performing Asset is must compulsory for better development

of the bank.
 Chapter – 4

Findings
&
Recommendations
Findings:

After assessing the different responses of the respondents of customers of Assam Gramin
Vikash Bank and data/ information taken from the Bank Manager about Kisan Credit Card loan
following main scenarios have been found in this study –

 76% of respondents are engaged in agriculture as a main source of income but 24%
respondents are doing agriculture as an additional source of income (refer to
interpretation no. 3.1B.1).

 Many of the farmers are taken their loan from the banks because of lower repayment of
interest rate in comparison to other sources.

 Maximum farmers of patacharkuchi village are basically believed in their own

production, they don’t go for crop share farming though 24% farmers are share.

 96% of the farmers/ respondents of AGVB bank, utilized their KCC loan only for
cultivation purpose and remains are utilized their loan amount for different fisheries,
ponds etc.

 Repayment of the KCC loan amount is very low, that means many of the farmers are not
repay their loan amount to the AGVB.

SUGGESIONS:

Assam Gramin Vikash Bank is one of the largest Regional Rural Bank in Assam. It is the most
preferred bank for the rural people. The branches of Assam Gramin Vikash Bank in
Patacharkuchi branch are trying to provide best services to its customers as well to their
beneficiaries.
 Bank may take effort to educate the farmers about the benefits of Kisan Credit
Card loan. Because most of the farmers are uneducated. Then many reluctant
farmers may approach Assam Gramin Vikash bank for KCC loan.

 Out of 50 respondents, 14% of farmers are still availing loan from money lenders.
It is loss for the farmers because money lenders take huge percentage of interest
on loan from the farmers. So, the bank may target these potential customers and
attract them to avail loan from bank.

 The bank employees should provide better services to the customers, so that they
are satisfied to be the customer bank.

 All the branches of Assam Gramin Vikash Bank should provide ATM facilities to
the customers, because they face lots of problems while withdrawing cash.

 All the branches of Assam Gramin Vikash Bank should maintain more
employees, so that they can provide more services.

 Special schemes for loans and advances should be implemented to encourage

customers.

 AGVB should focus more on retaining the existing customers.

 The farmers/ respondents should co-operate with the bankers, to maintain a good
relationship between them.
The suggestions given by the respondent (Bank Manager) are as follows:

 Bank should advertise various types of deposit schemes and loans and advances
facilities among the villagers and common people.

 Assam Gramin Vikash Bank is facing Manpower shortage, once the bank fill up
more manpower then they could give better services to the customers.

 By encouraging the villagers and common people to have the facility of banking.

 Improvement of network functioning in branches of Assam Gramin Vikash Bank

is becoming most compulsory for the branches.
CONCLUSION:

Agriculture sector is the mainstream of Indian economy and most important sector of
Indian Economy. When any change in the agricultural sector “positive and negative” has
multiple effects on the entire economy. Therefore, the sustainable development of agriculture is
the most important for acceleration in the Indian Economy.

Government of India has been taken several steps in context of agricultural credit. Kisan
Credit Card is one of them. This study gives an analysis on the data related to the KCC and the
study has brought to light certain operational issue, mainly pertaining to the agency- wise and
period wise progress of KCC. The result of this study shows that there is a significant increase in
the number of cards issued in each fiscal year by different banks. To expand the coverage of
borrowers under KCC, the scheme was extended to borrowers by introducing insurance schemes
and by giving term loans.

If bank gives more amount of money as a loan to farmers will be much benefited as they
will be able to purchase agricultural products like tractors, pump sets etc, and thereby modernize
the cultivation process. Our country mainly depends on agriculture. If our agricultural produce
can be made sufficient then we will not be dependable on other States or Countries.

Hopefully, the findings and suggestions when implied will be more beneficial for the
organization.
ANNEXURE
 BIBLIOGRAPHY:

1. Books:

 Banking Law and Practices, 19th edition published by Sultan Chands & Sons.
 Research Methodology, by C.R Kothari (2011), New Age International (p)
Limited publishers, Second Revised Edition, Volume 50, No.4, p.p 56 -74 & 101
-109.
 Rural Banking in India, by M.L Verma, Published by Mrs. Rekha Sharma, Kuber
Associates & Publishers, First Edition- 1988

2. Websites:

 https://www.bankbazar.com/Kisan-credit-card.html
 www.allbankingsolutions.com/Banking-tutor/KCC-kisan-Credit-Card-
scheme.html
 www.agvbank.co.in
 www.assamtribune.com
 www.thesentinel.com
 www.thetelegraph.com
 www.rbi.org.in

3. News papers and Magazines:

 The Assam tribune

 The Sentinel
 The Telegraph
 Magazine- Banking & You by Dhankar Publications.
4. Assam GraminVikash Bank Annual Report 2010 -11
5. Assam GraminVikash Bank Annual Report 2012 -13
6. Assam GraminVikash Bank Annual Report 2013 -14
Part: A
Questionnaire ( for the Respondents/ Farmers)
Dear Sir/ Madam,

I Amarjyoti Kalita , a student of Gauhati Commerce College. In partial fulfillment

of my requirement for my Master Degree of Commerce (MCOM), I have undertaken a project
on the topic entitle “A Study on Kishan Credit Card ( loan product) of Assam Gramin Vikash
Bank with special reference to Patacharkuchi Branch. ”

This questionnaire contains a few questions related to my project. I will be grateful to you if you
spare some of your valuable time and kindly fill up this questionnaire. Your answer will be kept
confidential and used for academic purpose only.

Thanking you in anticipation

Amarjyoti Kalita

Mcom 3rd Semester

Gauhati Commerce College

PLEASE TICK IN THE SQUARE BOX ( ) APPLICABLE TO YOU

1. Name of the beneficiary :- ………………………………………………………………………………………

2. Address :-
Village :…………………………………….……………………………………………………………………….

PO : ……………………………………………………………………….……………………………………

3. Gender Male Female Other

4. Age :-

Age Group Years

18 to 30 years

31 to 50 years

51 and above

5. Is agriculture your main source of income?

Yes No

6. What type of seasonal cultivation are you doing?

Kharif Robi Both

7. What type of crops are you producing?

Paddy Vegetable Both

Others

8. Have you taken loan from any other sources for agricultural purpose?

Yes No Cann’t say

If yes, from which source………………………………………………………………………

9. Do you do crop-sharing farming?

Yes No Cann’t say

10. Are you aware of the KCC loan and its repayment procedure under AGVB?

Yes No

11. How much loan amount have you taken from AGVB through KCC?

Less than 25,000 25,000 to 55000

55,100 to 1,00,000 More than 1,00,000

12. Do you fully utilize the loan amount for cultivation purpose only?

Yes No

If No, on what…………………………………………………………………………..

13. Do you have any complain about the loan (KCC) of AGVB?

Yes No Cann’t say

Signature of Beneficiary