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“CO-OPERATIVE BANKING WITH RESPECT TO ABHYUDAYA CO-OPERATIVE
BANK LTD.”
A Project submitted to
University of Mumbai for partial completion of degree of
bachelor in commerce (Accounting and finance)
Under the faculty of commerce
By
TANVI KIRAN KENI
UNDER THE GUIDANCE OF
Prof. MAMTA CHHAJER
RSET’S
GANSHYAMDAS SARAF COLLEGE
OF ARTS & COMMEERCE
AFFILATED TO UNIVERSITY OF MUMBAI
REACCREDITED BY NAAC WITH ‘A’ GRADE
S.V. ROAD, MALAD (W),
MUMBAI-400064.
MARCH 2021
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CO-OPERATIVE BANKING WITH RESPECT TO ABHYUDAYA CO-OPERATIVE BANK
LTD.”
A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of commerce (Accounting and finance)
Under the faculty of commerce
By
Tanvi kiran Keni
Under the guidance of
Prof. Mamta chhajer
RSET’S
Ghanshyamdas Saraf college
Of arts and commerce

MUMBAI-400064.
MARCH 2021
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RSET’S
GHANSHYAMDAS SARAF COLLEGE
OF ARTS & COMMERCE
MUMBAI-400064
Certificate
This is to certify that Ms./Mr TANVI KIRAN KENI has worked

and duly completed her/his Project Work for the degree of Bachelor in Commerce
(Accounting & Finance) under the Faculty of Commerce in the subject of Accounting & Finance and
her/his project is entitled,
“co-operative banking with respect to abhyudaya co-operative bank ltd” under my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any university.
It is her/ his own work and facts reported by her/his personal findings and
Investigations.
________________
P roject guide ___________
Principle
_______________
External examiner
Date
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DECLARATION
I the undersigned miss/mr. TANVI KIRAN KENI here by, declare that the work embodied in this
project work titled “COOPERATIVE Banking with respect to Abhyudaya Co-operative Bank
Ltd.”, forms my own contribution to the research work carried out under the guidance of PROF.
MAMTA CHHAJER is a result of my own research has not been previously submitted to any
Degree or Diploma of any University. Wherever reference has been made to previous works of
others, it has been clearly indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.
_______________
Student
Mr./Ms.
Certified by
___________________
Project guide
Prof. Mamta chhajer
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Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of the project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this project.
I would like to thank my Principal, Dr. Jayant Apte for providing the necessary facilities required
for completion of this project.
I take this opportunity to thank our Course Co-ordinator, prof. Mamta Chhajer for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide prof. Mamta chhajer
whose guidance and care made the project successful. I would like to thank my COLLEGE
LIBRARY, for having provided various reference books and magazines related to my project
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and peers who supported me throughout my project.
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ABSTRACT
The project is been undertaken on the topic of “Co-Operative banking with respect to Abhyudaya
Co-operative Bank Ltd.”, trying to explain about banking sector in India specially related to co-
operative banks with respect to Abhyudaya Co-operative bank.
Banking plays an important role in the financial life of a business, and the importance of banks can
be seen from the fact that they are considered as to be the life-blood of modern economy. Although
no wealth is created by Bank, but their essential activities facilitate the process of production,
exchange and distribution of wealth. In this way they become the effective partners in the process of
economic development and growth. The co-operative banks in India started functioning almost 100
years ago. The Co-operative bank is an important constituent of the Indian Financial System, judging
by the role assigned to co-operative bank operate. Abhyudaya Co-op. Bank Ltd., one of the leading
Urban Co-operative Banks in India, in its outlook and approach, has the objective of progress and
prosperity of all.
This project has been made with meticulous attention so that it covers in detail aspects of the
Abhyudaya co-operative bank like overview; how the bank did evolve to the position it is up to now,
its current and past financial standings, the products it does offers to meet various financial needs of
people, and how committed and integrated they are to serve their customer service and maintaining
relationship.
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INDEX
SR. Particulars Pg.no.

1 CHAPTER 1: INTRODUCTION 7
1.1 ABOUT BANING INDUSTRY 8
1.2 CO-OPERATIVE BANKING INTRODUCTION & 10,11
DEFINITION
1.3 HISTORY OF CO-OPERATIVE BANKING 12
1.4 CHARACTAERISTICS OF CO-OPERATIVE BANKING 14
1.5 REGULATORY BODIES OF CO-OPERATIVE BANKS 16
1.6 CO-OPERATIVE BANK IN INDIA 17
2 CHAPTER 2: RESEARCH METHODOLOGY 18
2.1 OBJECTIVE OF STUDY 18
2.2 SCOPE OF STUDY 18
2.3 LIMITATION OF STUDY 19
2.4 SAMPLING SIZE 19
2.5 DATA COLLECTION 19
2.6 SIGNIFICANCE OF STUDY 20
3 CHAPTER 3: LITERATURE REVIEW 21
4 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 27
4.1 ABHYUDAYA BANK PROFILE 27

4.2. FINANCIAL REVIEW OF PREVIOUS 5 YEAR 62
4.3 INTTERPRETARPRETATION 64
5 CONCLUSI & SUGGESTION & SUGGESTION 65
5.11 RECOMMENDATN & SUGESTION 66
5.2 CONCLUSION 66
BIBLIOGRAPHY 67
WEBLIOGRAPHY 67
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CHAPTER NO. 1: INTRODUCTION
1.1 ABOUT BANKING INDUSTRY

INTRODUCTION:
The word bank originated the French word ‘Banque’ or Italian ‘banco’ which means an office for
monitory transaction over the counter. In those days or desks were used as Centers for monitory
transactions. During the barter system also, there existed traces of banking, i.e., people used to
deposit cattle and agricultural products in specified places get loans get loans of some other form in
exchange for these. There is solid evidence found in records excavated form Mesopotamia, showing
some bank existed around a standard for valuation.
ORIGIN OF BANKING INDUSTRY
Greece was the first country to introduce a satisfactory system of coinage. After the invention of
Coins started, a meaningful system of banking came into existence taking into account all the avenue
of banking a credit system. Rome was the first country to start a bank at the department of state level
in the 4th Century B.C. with transactions such as depositing and investments in other forms. In India
ancient records show that banking was popular and money lending was a common practice among
the common people. In the olden days’ Goldsmith, merchants and money lenders conducted the
business. They had transactions among themselves by which funds were transferred from one
business firm to another. They had no general or uniform principles of banking, lending, rate of
interest, etc. Co-operative sector has a long history of more than a century. In the co-operative
movement, agriculture credit sector has acquired a special importance in order to avoid the
exploitation Of poor farmers from the middlemen and money lenders and to provide suitable
assistance to the eligible farmers. As our nation is basically an agriculture country, agriculture credit
systems plays an important role in the development of this sector. Through this system, the credit
sector is extending helping hand to farmers in its own way to boost the agricultural production in the
state in particular and in the country at large. KSC Apex bank over the ninety-five years, since its
inception has always come forward to extend its assuring hand to the farmers of the state through
district central co-operative banks, primary agricultural co-operative credit system besides the bank
is providing the needed financial assistance, for development of human resources, training,
computerization and all other encouragement from time to time to the DCC banks and PACS. The
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Government of Karnataka has accepted Prof. Vaidyanathan’s committee recommendations for
revival of cooperative credit institutions and apex bank is committed to its successful implementation
in the state.
Banking in India, in the modern sense, originated in the last decade of the 18th century. Among the
first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32;
and the General Bank of India, established in 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It originated and
started working as the Bank of Calcutta in mid-June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks founded by a presidency government, the other two were
the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks were merged in 1921
to form the Imperial Bank of India, which upon India's independence, became the State Bank of
India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their
successors, until the Reserve Bank of India w as established in 1935, under the Reserve Bank of
India Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks under the State
Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969
the Indian government nationalised 14 major private banks, one of the big bank was Bank of India.
In 1980, 6 more private banks were nationalised. These nationalised banks are the majority of
lenders in the Indian economy. They dominate the banking sector because of their large size and
widespread networks.
The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The
scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934.
The scheduled banks are further classified into: nationalised banks; State Bank of India and its
associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The
term commercial banks refers to both scheduled and non-scheduled commercial banks regulated
under the Banking Regulation Act, 1949.
Reforms in the commercial banking sector had two distinct phases. The first phase of reforms
introduced subsequent to the realase of the report of the committee on financial system, 1992
(Chairman: M.Narasimham) focused mainly on enabling and strengthening measures. The second
phase of reforms, introduced subsequent to the recommendation of the committee on banking sector
reforms, 1998 (Chairman: M. Narsiham) placed greater emphasis on structural measures and
improvement in standards of disclosure and levels of transparency in order to align the Indian
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standards with international best practices. Reforms have brought about considerable improvements
as reflected in various parameters relating to capital adequacy, asset quality, profitability &
operational efficiency.
Banking sector reforms during the last decade and a half have included, among others,
a) Deregulation of interest rates
b) Introduction of new products
c) Relaxation in investment norms for financial intermediaries, especially bank
d) Emergence of new institution such as primary dealers & mutual funds
e) Easing of restriction in respect of banks ‘foreign currency investments’
f) Withdrawal of reserve requirements on internal borrowings.
1.2 CO-OPERTIVE BANKING INTRODUCTION & DEFINATION
INTRODUCTION:
The term ‘Co-operative’ means an act of working together for a common purpose. All members
share in its rewards in portion to the degree in which they make use of their joint association.
The co-operative principles are guidelines by which co-operative put their values into practice.
These principles are:
• First principle – Voluntary & Open Membership.

• Second principle – Democratic Member Control
• Third principle – Economic Participation of Member
• Fourth principle – Autonomy and Independence
• Fifth principle – Education, Training and Information
• Sixth principle – Co-operation among Co-operatives
• Seventh principle – Concern for community
The co-operative banks in India started functioning almost 100 years ago. The Co-operative bank is
an important constituent of the Indian Financial System, judging by the role assigned to co-operative
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bank operate. Though the co-operative movement originated in the west, but the importance of such
banks has assumed in India rarely paralleled anywhere else in the world. The co-operative bank I the
urban areas also have increased phenomenally in recent years due to the sharp increase in the number
of primary co-operative. While the co-operative banks in rural areas mainly finance agriculturally
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. Co-operative Banks in India are regulated under the
Co-operative Societies Act. The co-operative bank is also regulated by RBI. They are governed by
the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Co-
operative bank, in a nutshell, provides financial assistance to the people with small means to protect
them from the debt trap of the moneylenders. It is a part of vast and powerful structure of co-
operative institutions which are engaged in tasks of production, processing, marketing, distribution,
servicing and banking in India. A co-operative bank is a financial entity which belongs to its
members, who are at the same time the owners and the customers of their bank. Co-operative banks
are often created by persons belonging to the same local or professional community or sharing a
common interest. These banks generally provide their members with a wide range of banking and
financial services (loans, deposits, banking accounts...). Co-operative banks differ from stockholder
banks by their organization, their goals, their Values and their governance.
The Co-operative Banking System in India is characterized by a relatively comprehensive network to

the grass root level. This sector mainly focuses on the local population and micro- banking among
middle- and low-income strata of the society. These banks operate mainly for the benefit of rural
areas, particularly the agricultural sector. Co-operative banks mobilize deposits and purvey
agricultural and rural credit with a wider outreach and provide institutional credit to the farmers. Co-
operative bank has also been an important instrument for various development schemes, particularly
subsidy-based programmes for poor.
DEFINITION:
“A Co-operative bank, as its name indicates is an institution consisting of a number of

individuals who join together to pool their surplus savings for the purpose of
eliminating the profits of the bankers or money lenders with a view to distributing the
same amongst the depositors and borrowers.”
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The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as a co-operative
registered as a co-operative bank in terms of the Act whose members –
1. are of similar occupation or profession or who are employed by a common employer or who are
employed within the same business district; or
2. have common membership in an association or organisation, including a business, religious,

social, co-operative, labour or educational group; or
3. have common membership in an association or organisation, including a business, religious,

social, co-operative, labour or educational group; or
4. Reside within the same defined community or geographical area.
Cooperative banking is retail and commercial banking organized on a cooperative basis.

Cooperative banking institutions take deposits and lend money in most parts of the world.
Cooperative banking includes retail banking carried out by credit unions, mutual savings
banks, building societies and cooperatives, as well as commercial bankingservices provided
by mutual organizations (such as ) to cooperative businesses.
RELATIONSHIP WITH CUSTOMER:
The relationship with the customers varies according to the nature of agreement entered into by a
bank. Customers generally have different kinds of transaction with the bank. As a depositor, the
customer deposits money with the bank. As a locker holder, she/he takes the locker on a lese basis.
When the customer requests the banker to collect the cheques, she/he give direction as a principal to
the banker who acts as an agent. When the same customer borrows from the bank, she/he becomes
the debtor for the transaction. Hence the banker has to understand the role of the customer and the
various provision of the relevant acts to extend proper service
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1.3 HISTORY OF CO-OPERATIVE BANKING
The origins of the cooperative banking movement in India can be traced to the close of nineteenth
century when, inspired by the success of the experiments related to the cooperative movement in
Britain and the cooperative credit movement in Germany, such societies were set up in India. Now,
Co-operative movement is quite well established in India. The first legislation on co-operation was
passed in 1904. In 1914 the Maclagan committee envisaged a three-tier structure for co-operative
banking viz. Primary Agricultural Credit Societies (PACs) at the grass root level, Central Co-
operative Banks at the district level and State Co-operative Banks at state level or Apex Level.
ESTABLISHMENT OF CO-OPERATIVE BANKS IN INDIA
Co-operative Banks in India were started during 1904 when official efforts were initiated to create a
new type of institution based on the principles of co-operative organization and management which
were considered to be suitable for solving the problems peculiar to Indian conditions. Co-operative
banks were conceived and were expected to substitute such agencies to provide adequate short term
and long-term institutional credit at reasonable rates of interest, and to bring about integration of the
unorganized and organized segments of India’s money market. Farmers in India are scattered all over
the country and need short term small borrowings for agricultural purposed. This need is not fulfilled
by commercial banks, which are unsuited for financing agriculture. Land, which these farmers can
offer to cover bank advances, is not generally accepted as security by commercial banks. Therefore,
special types of banks are best suited for this purpose. The object of co-operative banks is to offer
banking facilities to persons of limited means requiring credit for productive purposes in the use of
the land and Labor at their disposal. In 1914 the government of India appointed a committee under
Sir Edward Mac lagan to survey the progress of co-operation in the country. The committee
submitted its report in 1915, in which it made several recommendations, principal one being the
institution of provincial co-operative pyramid. The present organization in India is based upon the
findings of this report. In 1919, the Montague Chelmsford act made co-operation a provincial
subject. Since then, all the state governments have passed their own separate co-operative societies
acts.
In the beginning of 20th century, availability of credit in India, more particularly in rural areas, was
almost absent. Agricultural and related activities were starved of organised, institutional credit. The
rural folk had to depend entirely on the money lenders, who lent often at usurious rates of interest.
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The co-operative banks arrived in India in the beginning of 20th Century as an official effort to create
a new type of institution based on the principles of co-operative organisation and management,
suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for
money lenders, to provide timely and adequate short-term and long-term institutional credit at
reasonable rates of interest. The Anyonya Co-operative Bank in India is considered to have been the
first co-operative bank in Asia which was formed nearly 100 years back in Baroda. It was established
in 1889 with the name Anyonya Sahayakari Mandali Co-operative Bank Limited, with a primary
objective of providing an alternative to exploitation by moneylenders for Baroda's residents. In the
formative stage Co-operative Banks were Urban Co-operative Societies run on community basis and
their lending activities were restricted to meeting the credit requirements of their members. The
concept of Urban Co-operative Bank was first spelt out by Mehta Bhansali Committee in 1939 which
defined on Urban Co-operative Bank. Provisions of Section 5 (CCV) of Banking Regulation Act,
1949 (as applicable to Co-operative Societies) defined an Urban Co-operative Bank as a Primary Co-
operative Bank other than a Primary Co-operative Society were made applicable in 1966. With
gradual growth and also given Philip with the economic boom, urban banking sector received
tremendous boost and started diversifying its credit portfolio. Besides giving traditional lending
activity meeting the credit requirements of their customers they started catering to various sorts of
Co-operative Banking customers viz.self-employed, small businessmen / industries, house finance,
consumer finance, personal finance etc.
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary
cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to
lend money only for non-agricultural purposes. This distinction does not hold today. These banks
were traditionally centred around communities, localities work place groups. They essentially lent to
small borrowers and businesses. Today, their scope of operations has widened considerably.
1.4 CHARACTERISTICS OF CO-OPERATIVE BANKING
1.Co-operative Banks are organized and managed on the principal of co-operation, self-help, and
mutual help. They function with the rule of "one member, one vote". function on "no profit, no loss"
basis. Co-operative banks, as a principle, do not pursue the goal of profit maximization.
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2. Co-operative bank performs all the main banking functions of deposit mobilisation, supply of
credit and provision of remittance facilities.
3. Co-operative Banks provide limited banking products and are functionally specialists in
agriculture related products. However, co-operative banks now provide housing loans also.
4. Co-operative banks are perhaps the first government sponsored, government-supported, and
government-subsidised financial agency in India. They get financial and other help from the Reserve
Bank of India, NABARD, central government and state governments. They constitute the "most
favoured" banking sector with risk of nationalisation. For commercial banks, the Reserve Bank of
India is lender of last resort, but co-operative banks it is the lender of first resort which provides
financial resources in the form of contribution to the initial capital (through state government),
working capital, refinance.
5. Co-operative Banks belong to the money market as well as to the capital market. Primary
agricultural credit societies provide short term and medium-term loans.
6. Co-operative banks are financial intermediaries only partially.
The sources of their funds (resources) are:
(a) Central and state government,
(b) The Reserve Bank of India and NABARD,
(c) Other co-operative institutions,
(d) Ownership funds and
(e) Deposits or debenture issues.
7. Some co-operative banks are scheduled banks, while others are non-scheduled banks. Co-
operative Banks are subject to CRR and liquidity requirements as other scheduled and non-scheduled
banks are. However, their requirements are less than commercial banks.
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8. As said earlier, co-operative banks accept current, saving, and fixed or time deposits from
individuals and institutions including banks.
9. In the recent past, the RBI has introduced changes in interest rates of co- operative banks also,
along with changes in interest rates of commercial banks. The interest rates structure of co-operative
banks is quite complex.The rates charged by them depend upon the type of bank, the type of loans,
and vary from state to state.
10. Since 1966 the lending and deposit rate of commercial banks have been directly regulated by the
Reserve Bank of India. Although the Reserve Bank of India had power to regulate the rate co-
operative bank but this have been exercised only after 1979 in respect of non-agricultural advances,
they were free to charge any rates at their discretion. Although the main aim of the co-operative bank
is to provide cheaper credit to their members and not to maximize profits, they may access the
money market to improve their income so as to remain viable.
11. Co-operative banks (COBs), in short, have played a pivotal role in the development of short-term
and long-term rural credit structure in India over the years. The co-operative credit effort is said to be
the first ever attempt at micro-credit dispensation in India.
1.5. REGULATORY BODIES OF CO-OPERATIVE BANKS
CO-OPERATIVE BANKS AND NABARD: As an apex bank involved in refinancing credit needs
of major financial institutions in the country engaged in offering financial assistance to agriculture
and rural development operations and programmes, NABARD has been sharing with the Reserve
Bank of India certain supervisory functions in respect of co-operative banks and Regional Rural
Banks (RRBs).
As part of these functions, it
• Undertakes inspection of Regional Rural Banks (RRBs) and co-operative banks (other than
urban/primary co-operative banks) under the provisions of Banking Regulation Act, 1949.
• Undertakes inspection of State Co-operative Agriculture and Rural Development Banks
(SCARDBs) and apex non-credit co-operative societies on a voluntary basis
• Undertakes portfolio inspections, systems study, besides off-site surveillance of co-operative
banks.
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• Provides recommendations to Reserve Bank of India on opening of new branches by State
Co-operative Banks.
• Administering the Credit Monitoring Arrangements in Co-operative banks.
Core Functions of NABARD for Co-operative Banks: NABARD has been entrusted with the
statutory responsibility of conducting inspections of State Co-operative Banks (SCBs), District
Central Co-operative Banks (DCCBs) and Regional Rural Banks (RRBs) under the provision of the
Banking Regulation Act, 1949. In addition, NABARD has also been conducting periodic inspections
of state level co-operative institutions such as State Co-operative Agriculture and Rural
Development Banks (SCARDBs), on a voluntary basis.
REFORMS IN BANKING REGULATION ACT, 1949
Amendments to the BR Act would cover the following:
i. All cooperative banks would be on par with the commercial banks as far as regulatory norms are
concerned.
ii. RBI will prescribe fit and proper criteria for election to Boards of cooperative banks. Such criteria
would however not be at variance with the nature of membership of primary cooperatives which
constitute the membership of the District/ Central Co-operative Banks and State Co-operative Banks.
iii. However, as financial institutions, these Boards would need minimum support at the Board level.
Thus, the RBI will prescribe certain criteria for professionals to be on the Boards of cooperative
banks. In case members with such professional qualifications or experience do not get elected in the
normal electoral process, then the Board will be required to appoint such professionals in the Board
and they would have full voting rights.
iv. The CEOs of the cooperative banks would be appointed by the respective banks themselves and
not by the state. However, as these are banking institutions, RBI will prescribe the minimum
qualifications of the CEO to be appointed and the names proposed by the cooperative banks for the
position of CEO would have to be approved by RBI.
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v. Cooperatives other than cooperative banks as approved by the RBI would not accept non-voting
member deposits. Such cooperatives would also not use words like “bank”, “banking”, “banker” or
any other derivative of the word “bank” in their registered name. If a State Government and the CCS
units in that state are enthusiastic in implementing the package, fulfilment of all the above
conditionalities and consequently release of the entire financial assistance could be completed even
within a year.
1.6 CO-OPERATIVE BANKS IN INDIA:
Co-operative banking structure in India is categorised into 3 broad sectors:
State co-operative banks- Total 31.
Scheduled urban co-operative bank –Total 54
Non-Scheduled urban co-operative bank –Total 1528
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CHAPTER NO.2: RESEARCH METHODOLOGY
2.1 OBJECTIVES OF STUDY:
➢ The objective of the study of co-operative banking is to know the origin of co-
operative banking in India.
➢ To know the role & development of co-operative bank with respect to Abhyudaya co-
operative bank.
➢ The study is based on secondary data with respect of (Abhyudaya co-operative bank Ltd.)
2.2 SCOPE OF THE STUDY
➢ The study covers the information regarding the co-operative banking system. It does not
include other nationalised banking sector information.
➢ This study enables the researcher to develop his/her knowledge in the field of co-operative
banking (with respect to Abhyudaya co-operative bank Ltd.)
➢ The various functions & facilities provided by the Abhyudaya co-operative bank & its
performance in recent years.
2.3 LIMITATION OF THE STUDY
➢ There may be limitation to this project because of the time & resources constraint, i.e., the
study duration was very short
➢ Bias behaviour.
➢ In view of the limited samples, the findings and conclusions may be treated as suggestive
rather than definitive.
2.4 SAMPLE SIZE
The project study is carried out considering the sample size which has been limited in respect
of Abhyudaya co-operative bank Ltd. Itself. No other bank or financial institution or
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organisation has been considered in carrying out a brief study under this project being
prepared by the researcher.
2.5 DATA COLLECTION
Data collected specifically for the study of Abhyudaya Co-operative Bank Ltd. Since the research
carried out for this project is descriptive in nature, the various documents and official files would
require for understanding the methodology used by the banks. The information is collected by
secondary Data-
Secondary Data: -
This data is collected from bank’s internal documents which make on monthly basis &; from Web
sites. Secondary data is scrutinized on the basis of suitability, reliability, adequacy and accuracy .
2.7 SIGNIFICANCE OF THE STUDY
Co-operative banks play very important role in providing banking services to common man
in their area of co-operation. A small depositor or a small borrower feels comfortable in dealing
with the local staff of co –operative bank than to the staff of nationalized banks and private sector
banks. If co-operative banks go in liquidation due to abnormal increase of NPA not only customers
and staff members of that particular co-operative bank will suffer but all other co-operative banks
will also get a major setback. Leading to severe damage to the reputation of entire co-operative 72
sector which is very important for the balance of economic development of our country. Banking
is the life blood of Indian economy. Banking has three types of sectors, which provide finance to
different sectors i.e. private sector, public sector and cooperative sector. The co-operative banking
sector in India plays an important role in expanding rural economy as well as banking structure and
its services to the last man of the society. The co-operative banking structure has developed very
fast in India but still it lags in so many things like ideal liquidity position due to NPA of customer
as well as staff, modernization of banking structure etc. The Study of the co-operative structure in
Gujarat has proved that maximum cooperative sector damaged its reputation because of high
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position of NPA which effect ultimately the economic development of the state and nation. The
NPA impact on the performance of the bank in which it reduces its interest income, the net worth
of the bank, demoralized the staff, hardens Capital Risk Adequacy Ratio which also restricts
recycling of fund and hinders the desirable yield. Looking to the situation of banks it is desirable to
take effective measures to reduce the NPAs as low as possible. Not only reduction but up gradation
of quality of such assets would also be desirable for improvement Managing these Non-performing
assets is required in order to protect the interest of shareholders, depositors as well as increase the
credit worthiness of bank. It is also advisable to increase the profitability by making the provision
as well as expansion plan. NPA should be reduced for sustaining the economic growth, to increase
the welfare of employees, to maintain reputation of the banks as well as to create job opportunities
for future generation.
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CHAPTER NO.3: LITERATURE REVIEW
1. 1. S. R. Walunj, (2000), in his study on “Impact of Credit Institutions on Agriculture, Rural

Development and Employment (A case study of Cooperative Banks in Pravara Area)”
unpublished Ph.D. thesis, the University of Pune, examined the performance of Co-operative
banks and PACS and its impact on agriculture credit, rural development and employment.
Author suggested the measures for improvement in credit delivery, its adequacy and ensuring
the repayment of loans by borrowers in time.
2. Dr. R.S. Ramesh, (2001), in his article, “Credit co-operative in free market economy-A
SWOT analysis” published in the “Maharashtra Co-operative Quarterly” explains that, in
order to prepare co-operative, particularly the credit co-operatives in rural areas to face new
challenges of the free market economy. The free-market economy and the financial sector
reforms have thrown up both challenges and opportunities to the co-operatives. To prepare the
co-operatives for taking risks, certain reform measures, though hard have to be initialized.
Thus, with concerted efforts, grit and determination, the reform process, world provide
internal strength and competence to the cooperatives for improving their financial viability
and operational efficiency.
3. Sanjay Namdev Aswale, (2004), study on “The impact of Primary Credit Cooperative
Society in Village Development” (A case study of Osmanabad District), unpublished Ph.D.
thesis, of Dr. Babasaheb Ambedkar Marathawada University, Aurangabad (M.S.) focused on
the assessment of the performance and impact of PACS in village development of Osmanabad
District and render the plan of action for development of PACS. He found that PACS are
highly dependent on external financial sources and recovery is not satisfactory .
4. Balasaheb Vikhe Patil, (2005) in his article published in Economic Political weekly on
“Rural Banking; Problems of Localized Banking Institutions” stated that while at no stage the
government has denied the need for revitalization of Credit Co-operatives, the appropriate
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decisions are getting delayed. It is quite important that we have road map for their reform and
development. In absence of clear signals there is virtually no progress in this regard.
5. J. P. Bhosale, (2005), in his study on “A study of Primary Agriculture Cooperative Credit

Societies in Junnar, Ambegoan & Khed Talukas of Pune District” unpublished Ph.D. thesis,
the University of Pune, examined working of PACS to improve the effici DILIP
KHANKHOJE AND MILIND SATHYE ency of the societies for the benefit of the members.
His study was focused on the role of PACS in rural development, loan advancement, various
services provided, organization and management of PACS .
6. PAL KARAM AND SINGH JASVIR(2006) Write that To assess the growth pattern of
RRBs and to exam in the credit distribution and geographical distribution of RRBs. The
analysis period of the study is from 1975 to 2005. The overall position of RRBs in India is not
quite.
7. JESSICA A. LOS BANOS (2007) In her research paper write that Rural banks
are play a special role in regional economic development in the philippines.
Finding include the need to enhance condidence in the philippine rural banking
system, to encourage savings in regional rural banks.
8. DILIP KHANKHOJE AND MILIND SATHYE (2008) The objective of this study is to
investigate whether the restructuring of regional rural banks in India – undertaken in 1993-94
– has helped improve their production efficiency. The study finds thst efficiency of rural banks
has significaltly improved after restructuring.
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9. Pujari, Ashok, Suhag and Malik, (2009) in their article published in Indian Cooperative
Review on “An Evaluation of performance of Primary Agricultural Cooperative Societies in
Karnataka State” reveals that the share of different size groups of land holdings to PACS
membership was almost stagnant in relative term. A majority of the borrowers were small
cultivators. They suggested that, government should increase share in working capital to
advance more credit to rural people to meet their capital requirement. PACS should initiate
steps to recover the number of over-dues to increase the efficiency of societies.
10. ANIL KUMAR SONI AND ABHAY KAPRE (2011) Write that the research study is
significant to evaluate financial performance of RRBs in India. In this paper measure financial
performance of RRBs and analyze the key performance indicators of RRBs in India and
also evaluate progress of the RRBs during 2006 to 2011 and also show the
growth pattern of Rbs in India.
11. K. VEERAKUMAR (2012) In his research paper write that the impact of Internet banking on
cost savings, revenue growth and increased customer satisfaction on Industry is tremendous
and can be a potential tool for building a sound strategy for the development of the economy
of the country.
12. R. SERANMADEVI AND M.G. SARAVANARAJ (2012) Write that the computer
technology is changing the banking scene. The paper presents a study which aims to analyze
the role of information technology in the Indian Banking sector. The importance of computers
and technology in the banking sector is being regarded as a solution to large number of
problems. It is seen that, in time rapidly changing environment of uncertainty and change in
the world, speed, reliability relevant analysis of critical areas on an exception basis are
necessary.
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13. JYOTI GUPTA AND SUMAN JAIN (2012) Purpose of this paper to know the lending
practices of co-operative banks in India and measure and compare the efficiency of co-
operative Bank of India and to study the impact of size on the efficiency of the co- operative
Banks.
14. KISHOR NIVRUTTI JAGTAP (2013) In his paper Urban co-operative banks plays very
important role in meeting the requirement of small traders' agriculturists and middle-class
income group people. The main objectives of the study to know about Urban schedule banks
in western Maharashtra & to study services & new trend adopted by Urban schedule bank.
15. S. MAYILVAGANAN AND E. SAUNDAVARJAN (2013) writes that the customer service
in UCBs comparatively better because local employees are recruited who are well familiar to
the customers. Now circumstances are changing as the business. The well qualified staff
should be selected. They should be trained. The banks should use the means of modern
information and technology new system, such as all-time banking, ATM, home banking, Tele
banking etc. for survive in the future competition
16. SOYELIYA USHAL (2013) In his paper World economy has progress by help of banking
business purpose of the study to know the lending practices of the banks in India & measure
the efficiency ofco-operative banks of India. Studied the satisfaction level of the bank's
customers from bank lending policies.
17. RAJIV KUMAR AND JASMINDEEP KAUR (2013) In his paper wrote that Banks are the
backbone of Indian Financial System co-operative banking has been playing a crucial role in
the development of rural economy this paper only focuses on medium- & short-term rural co-
operative banks working in the Haryana which is predominately a rural economy state.
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18. R. RENUKA AND C. ELAMATHI (2013) In this study, the performance of the bank has
been evaluated in terms of loans disbursement year wise as well as district wise, membership,
share capital, total advance, total overdue, present recovery etc. study the progress relating to
revival of rural co-operative.
19. SAHITHA A.C. AND PHILO FRANCIS (2014) Write that District co-operative banks
provides short-term and medium-term credit for agricultural and non-agricultural operations.
14 DCBs are working successfully in Kerala under the guidance of Kerala State co-operative
Bank in Kerala. Study found that evaluation of DCBs in Kerala through on the basis of
Agricultural credit.
20. SHANTANU BOSE (2014) Write that urban co-operative banks play significant role in
the development of small & medium industries in urban areas. This paper focuses on the
current scenario of urban co-operative banking system in India, by mentioning its need, its
brief history, its current structure among the co-operative credit society, improvement in
financial position of UCB’s and also highlights the challenges faced by the UCB’s and its
future prospects.
21. SUMEET GIRAM (2014) Writes that The Urban co-operative Banks by its vast
numbers and membership along with its local appeal have become an important sector in the
area of banking and finance. RBI inspection and periodical government audit of UCBs did not
show any worth recording changes in the non-professional attitude of the board of director.
The RBI made an attempt by introducing a code of conduct to the Board of Directors and also
expected that they will follow the same. From the above extract, it is clear that the paradigm
shift of mind set in the board of directors collectively and directors individually, becomes a
major management of UCBs.
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22. KSHITIJ DESHMUKH (2015) Analysed the performance Cooperative banks involved
in local development and progress of financial position of middle-class people. Cooperative
banks play very important role in the financial system. The cooperative banks in India from an
integral part of our money market today.
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CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
4.1 ABHYUDAYA BANK PROFILE
A) THE BEGINNING:
A dedicated group of social workers and labour movement activist, imbued with the spirit of
service to the cause of mill workers, other industrial workers and economically weaker sections
started the Abhyudaya Co-op. Credit Society Ltd in 1964, with a small share capital of Rs.5000/-.
The area of, Parel village, Kalachowki, Sewri and their surroundings where at that time
predominantly populated with low-income industrial labour and middle class. The promoters realized
that there was the need for providing this hard working, less educated, economically weaker but
honest section of the society with a dependable, trustworthy and self-institutional source for
channelizing their savings and meeting small credit needs. The credit society provided the answer.
The enthusiastic response from the people and the confidence reposed by them in the credit society
encouraged the promoters, in just a few months, to get it converted in to and Urban Co-op. Bank.
Thus, the Abhyudaya Co-op. Bank Ltd. was born in June 1965 with the motto “Prosperity through
Co-operation”.
B) A FORWARD MARCH
The Bank was conferred with Scheduled Bank Status by Reserve Bank of India in September 1988.
Over a span of 51 years, it became one of the leading Urban Co-op. Bank in the country with
branches in Metropolitan Mumbai, Navi Mumbai, Pune, Thane, Raigad, Nagpur, Nashik, Nanded,
Kankavali, Aurangabad, Ahmednagar & Pen in Maharashtra State, Vadodara and Ahmedabad in
Gujarat State, Udupi and Mangalore in Karnataka State. On 11th January, 2007 the Bank was
registered as a MultiState Co-op. Bank by the Central Registrar, New Delhi. The area of operation of
the bank is confined to 3 States - Maharashtra, Gujarat and Karnataka. The merger of Shree Krishna
Sahakari Bank Ltd., Vadodara, Gujarat State, Janatha Co-op. Bank Ltd., Udupi, Karnataka State and
Manekchowk Co-op. Bank Ltd., Ahmedabad, Gujarat State has been effected
Abhyudaya Co-op. Bank Ltd., one of the leading Urban Co-operative Banks in India, in its outlook
and approach, has the objective of progress and prosperity of all. From a humble beginning in
January 1964 as a Co-operative Credit society with a share capital of a merely Rs.5,000/- held by 83
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members, today Abhyudaya Co-op bank has become one of the large Urban Co-operative Banks
with a "Scheduled Bank" status. The bank has been converted into a “Multi-State Scheduled Urban
Co-op. Bank” w.e.f. 11th January, 2007. The area of operation which was restricted to the State of
Maharashtra has now been extended to Karnataka & Gujarat State. Currently, the capital base of the
bank stands at Rs. 45.77 crores and Reserves and surpluses at Rs.682.54 crores as on 31.03.2009.
The bank has 1,23,011 members and more than 12 lakh depositors. The Bank has seen a tremendous
growth in deposits. The deposits of the bank are over Rs. 3176.81 crores as on 31.03.2009, which
were Rs. 2625 crores as at the end of the financial year 2007-2008. The loans and advances stood at
Rs. 1856.39 crores as on 31.03.2009. The bank had posted a as on 31.03.2009. “The growth rate of
the bank compares well with that of others in the sector. The Bank has maintained a steady growth.
The bank has been paying dividend @ 15% to its members which is maximum permissible as per the
MCS Act.
The Bank has launched different loan schemes tailor-made to suit the needs of various customers.
The schemes aim at providing loans for purchase or construction of residential premises,
repair/renovation of house property, purchase of car, seeking higher education and for purchase of
household consumer durable. One of the loan schemes, viz. "Udyog Vikas Yojana" is specially
designed for the benefit of small entrepreneurs and businessmen. The procedure for sanctioning of
loans under the schemes has been simplified and relaxed with a view to attract new customers and
facilitating speedy sanction of loans. The Bank has total 87 branches including a Mobile Bank at
Navi Mumbai. Bank is committed to spread network of branches throughout the State and provide
much needed banking services to the population, which has been deprived of the banking facilities.
SOME OF THE FEATURES OF ABHUDAYA CO-OPERATIVE BANK LTD.
1. Attractive Interest Rates on Deposits.

2. 0.50% additional interest on Deposits for Co-operative Society.
3. 1.00% additional interest on Deposits for Senior Citizens.
4. Various Loan Facilities to fulfill your needs.
5. We have cheque drawing and cheque collection faculty on major cities all over India.
6. Electricity bills of B.E.S.T., M.S.E.B. etc. accepted.
7. NO TDS to our shareholders.
8. SLockers available at low rates.
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As Abhyudaya Co-operative bank is a Multi-state co-operative bank, if a multi-state co-operative
bank is wound by the central Registrar at the sanctioned or requisition of the RBI, no appeal against
order lies anywhere but other orders and decision of the Central Registrar can be challenged as
provided in the act. In certain matters there can be review on the order passed by the appellate
authority.
Out of 111 branches, 34 branches are rendering all seven days a week service to the customers. Our
customers are free to operate on other banks ATMs through NFS Network of more than 2.22 Lakh
ATMs and customers of other banks can transact from 114 ATMs machines installed by our bank.
The Bank has offsite ATM’s installed at Abhyudaya Nagar & Ghatkopar. Bank is also offering
Demat, Pan Card Facility, & Online Tax Payment Services through network of our branches. From
two branches viz. Vashi & New Panvel 'Franking' facility is made available for the general public.
Milestones:
1964 Established as Co-operative Credit Society.
1965 Converted into a Bank with one Branch at Abhyudaya Nagar.
1985 Inauguration of Bank's own Building, Staff Training College and

Auditorium at Vashi. RBI Permitted the Bank to open and maintain
NRI Accounts.
1986 Instituted Educational Prizes to the children of Members and

Employees.
Became 3rd Biggest Urban Co-op. Bank in India.
1988 Became Scheduled Bank.
1990 Inauguration of Bank's own Building at New Panvel.
1995 Decision to set up "Development Reserve Fund" to undertake
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special schemes.
1997 All Branches fully computerised.
1999 Eleven Hours & Sunday Banking started in 16 Branches.
2000 ATM installed at 3 Branches.

Bank's website: www.abhyudaya.com launched.
2003 Opened 40th Branch with ATM Facility & 11 hours and sunday
banking at Lokmanya Nagar (Thane). Setup Treasury Dept. at Fort.
2004 Started RTGS and NDS facilities.
2006 * Franking facility at Dadar, Vashi, New Panvel

* Citizens Co-op. Bank Ltd. Pune with 13 Branches merged with
our Bank.
2007 * Bank registered under Multi-State Co-op. Societies Act, 2002

on 11th Jan. 2007.
2008 Merger of Shri Krishna Co Operative Bank, Vadodara

June 19
2008 Merger of Janata Sahakari Bank, Udupi

Aug 20
2008 Merger of Manekchowk Co-op Bank Ltd,Ahmedabad withour bank.

Oct 10
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Growth and Strength:
As on 31st March 2020, the bank has more than Rs. 2.23 lakh members and more than Rs. 17.30
lakh Depositors. As on 31st March 2020, total business mix of the bank has reached over Rs. 17,492
Crore. As on 31st March 2020, Bank’s Deposits have reached upto Rs. 10,838 Crore while
Advances have reached upto Rs. 6,654 Crore. The Bank has maintained a ratio of CASA Deposits
to Total Deposits as high as 37.55%. The strength of the Bank is reflected in the fact that it’s Paid-up
Capital and Reserves & provisions have amounted to Rs. 1380 Crore and Investments are to the
tune of Rs. 3,508 Crore. The Capital Adequacy Ratio maintained by our bank is as high
as 12.60%.
Key Developments:
With the expanding horizons and continuing developments and competition he banks propose to
become full-fledged financial service provider, fulfilling requirements of customers and other
stakeholders by providing all allied services, as permitted by the regulatory authorities. The bank has
adopted advanced technology for providing faster and convenient services to clients and within a
short span of time we will be providing additional services like Demat, Issuance of PAN card etc.
these major long-term proposals will enable the bank to increase its market share and better
fulfillment of expectations of all the stakeholders.
Future Goals of the Bank:
To build a global brand, the Bank feels a need to do two things – go global physically and second,
more importantly, have a unique business model, product offering and service standards, all of which
are globally recognise
THE BANK’S MISSION / VISION STATEMENT
Mission Statement:
A “Mission” To continuously strive for synergy between technology, systems & human
resources for providing products & services that meet the quality, performance & aspirations of the
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vast clientele & to maintain the highest standards of ethics & societal responsibilities, constantly
innovate products & processes & develop teams that keep the momentum going to take the Bank to
excellence.
Vision Statement:
A “vision” of relentlessly pursuing our aim and objective of making the bank emerge as a luminous
stand in the tapestry of India’s Banking System. We will strive to mould the Abhyudaya Bank into
agile and resilient Organisation by adopting the fine-tuned customer relationship, management
strategies, operations based on asset-liability and risk management systems, upgradation of required
technology capabilities and developing the human resource to meet the challenges of the paradigm
shift. Our vision seeks to serve, as our Chairman has aptly put it, as a reference point for making
strategic decisions, conveying benefits to stakeholder, articulating competitive advantage and
underscoring the driving principles of Organisation.
PRODUCT AND SERVICES OFFERED BY ABHYUDAYA BANK
The Bank has launched its interactive website for easy accessibility of various products & services
for its customers. Bank has successfully implemented Core Banking Solution (CBS) technology,
through this technology the bank is offering Any Branch Banking Service to the customers. Bank is
offering Abhyudaya Mobile Banking Service to its customer through which customer can do Self,
Intra, Inter & IMPS Fund Transfer. Customer can check balance mini statement, cheque request &
host of services through Mobile Banking service. Bank customers can transact cash, transfer of fund,
clearing, remittances, etc. from any branch of the bank. Bank is offering Abhyudaya RuPay. Debit
Card which can be used for cash withdrawals, mini statements, balance enquiry and can be used at
Point-of-Sale terminals for merchant transactions. The bank has offsite ATMs installed at
Abhyudaya Nagar & Ghatkopar. Bank is providing all types of Foreign Exchange & Money Transfer
Services such as MoneyGram & Xpress Money. Bank is also offering Tele-banking and Internet
Banking services. Customers of our bank can get monthly statement of account through email.
Bank has installed Cash Deposit Machines at New Panvel, Vashi & Nehru Nagar, subsequently Bank
will install Cash Deposit Machines at other Branches.
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Bank has implemented Pradhan Mantri Jan-Dhan Yojana (PMJDY) for achieving the national
objective of Financial Inclusion & providing banking services to common man. Bank has launched
Pradhan Mantri Jeevanjyoti Bima Yojana - (PMJBY) & Pradhan Mantri

Suraksha Bima Yojana -
(PMSBY). Bank has registered itself with CPSMS (Central Planned Scheme Monitoring System)
which is a project of Dept. of, Ministry of Finance; New Delhi for providing AADHAAR based
Direct Cash Transfer Benefits (Subsidies) to the customers. Bank has implemented / adopted other
RBI Schemes such as RTGS, NACH, NEFT, Speed Clearing etc. Bank has taken corporate Agency
of LIC of India, The New India Assurance Co. Ltd. And Religare Health Insurance. All types of life
insurance policies of LIC, General Insurance policies of The New India Assurance Co. Ltd. & Health
Insurance Policies are made available at all our branches. Out of 111 branches, 34 branches are
rendering all seven days a week service to the customers. Our customers are free to operate on other
banks ATMs through NFS Network of more than 2.22 Lakh ATMs and customers of other banks can
transact from 114 ATMs machines installed by our bank. The Bank has offsite ATMs installed at
Abhyudaya Nagar & Ghatkopar. Bank is also offering Demat, Pan Card Facility, & Online Tax
Payment Services through network of our branches. From two branches viz. Vashi & New Panvel
'Franking' facility is made available for the general public. Bank is having its own fully equipped
staff training college at Vashi premises whereby the talent of the staff members and officials are
groomed to make them competitive to face the challenges in the Banking Sector.
Bank has started financial Literacy Cell, at Vashi under its customers education initiatives. With an
intention of providing better customer service bank has taken various steps such as introduction of
toll free number (1800- 22- 9699) for the convenience of the customer where by customer can get all
information pertaining to the products & services of the bank, missed call facility for balance enquiry
on Toll Free number (1800-419-5511), Card Hot listing Number (9223110011) conducting customer
meets at regular interval, formation of separate customer care dept., special counters for Sr. Citizens
and handicapped customers etc.
1. SAVING BANK DEPOSIT ACCOUNTS
WHO CAN OPEN AN ACCOUNT:
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g a. An Individual in his/her name.
b. More than one person jointly
c. An illiterate person
d. A blind / visually Impaired / Incapacitated Persons
e. A guardian on behalf of minor in the minor's name
f. Clubs, Association, (only if registered). Local bodies, all types of Co-operative Societies
or any other body
h. Student who has completed 14 year of Age.
INTEREST:
o Interest will be calculated @ 3.00% p.a. on the basis of Daily Product and will be
o credited to the account at half yearly intervals in March and September.
o PASS BOOK: Pass book will be supplied to every savings Bank depositor showing his/her
account number, Name, address, transactions with date, amount and particulars.
o INCIDENTAL CHARGES:
o If a minimum balance of Rs.500/- (for all accounts with/without cheque book facility) is not
kept, the Bank will charge incidental charges at the rates as in force from time to time.
o Also refer to our Service Charges elsewhere on this site for other incidental charges.
o Initial cash Deposit for opening Savings Bank Account & minimum balance to
be maintained in the account:
o With / Without Cheque Book Facility - Rs. 500/-
o ABB Transactions: -Withdrawal limit in a day is Rs.50,000/ and for third party limit of
Rs.25,000/- in a day.
2. OTHER SAVING BANK DEPOSIT ACCOUNTS
Abhyudaya Bank’s other Saving Bank account Products:
Abhyudaya Zero Balance Saving Bank Account for Salaried Person (SBZROBAL):
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An individual working in Govt. Org., Semi Govt. Org., Agents of Life & General Insurance,
employees of Educational Institutions & Public ltd. Companies. Accounts can also be
opened of the employees of Business Concerns/ Private/ Industrial units (Min 20
Employees) & whose company accounts are with our bank branches.
Abhyudaya SB Youth Accounts: for School /College going Students.
Savings Bank Account with Zero Balance to MID/QID Deposit Holders:
MID/QID depositors having minimum Term Deposit of Rs.10,000/- will be allowed to open Savings
Bank Account with Zero balance.
PMJDY Basic Savings Bank Deposit A/c (PMJDYBSB A/c) / PMJDY Small
Savings Bank A/c
(PMJDYSSB A/c):
All individuals with Zero Balance can open account under PMJDY and will be issued
RuPay Debit Card and will get Accident Insurance Cover (Conditions Apply)
Nomination facility available for all above Saving Bank Products.
3. CURRENT DEPOSIT ACCOUNTS
Who Can Open an Account?
Initial Deposit for opening Current Account & minimum balance to be maintained in the account:
Rs. 3000/-
Interest: No Interest will be paid on the balance in Current Account.
Statement of Account: Bank will issue statement of account to the account holder
once in a month.
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Benefits:
Any Branch Banking (ABB), Inter connectivity
ATM Facility
Remittances – Pay Order, Demand Draft on any location in India
Collection of outstation cheques
Telebanking Facility
RTGS/NEFT Facility
SMS Banking Facility
Mobile Banking
ABB Transactions for CD accounts: Withdrawal limit in a day is Rs.1,00,000/- and

for third party withdrawal limit in a day is Rs.50,000/-.
4. TERM DEPOSIT SCHEME
A) MONTHLY INCOME DEPOSIT SCHEME
WHO CAN OPEN AN ACCOUNT?
MINIMUM DEPOSIT: Rs. 500/-
INTEREST:
Interest will be paid on the deposits at the rate in force from time to time.
Interest amount will be paid Monthly.
Interest will either paid in cash or credited to the Bank Account of the
depositor
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TERM DEPOSIT RECEIPT: The Bank will issue a certificate in favour of the depositors showing
the amount deposited, the period for which the deposit is accepted, maturity date and maturity
amount.
LOAN AGAINST DEPOSIT: 90% Loan against deposit amount is available.
GENERAL: The Bank reserves the right to alter, amend, rescind the rules from time to time.
Any person or persons approved by the Bank.
Co-operative Societies, Registered Trust, Institutions and Associations.
By two or more persons in their joint names.
By a natural guardian i.e., father or mother approved by the Bank on behalf
of a minor.
B) QUARTERLY INTEREST DEPOSIT SCHEME
WHO CAN OPEN AN ACCOUNT: MINIMUM DEPOSIT: Rs? 500/-
INTEREST:
Interest amount will be paid Quartely.
Interest will either paid in cash or credited to the Bank Account of the
depositor
TERM DEPOSIT CERTIFICATE: The Bank will issue a certificate in favour of the
depositor /s showing the amount deposited, the period for which the deposit is accepted,
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maturity date and maturity amount.
DUPLICATE CERTIFICATE: In case of loss of original Fixed Deposit Certificate the depositors
would have to intimate the Bank immediately. On an application satisfying the prescribed rules the
certificate indicating the particulars of the deposit will be issued to the depositor. The Bank will
charge Duplicate Certificate at such rates as in force from time to time.
LOAN AGAINST DEPOSIT: 90% Loan against deposit amount (accrued value) is
available.
of a minor.
C) FIXED DEPOSIT RECEIPT
Minimum DEPOSIT: Rs. 500/-
INTEREST:
Interest amount will be paid at the time of maturity.
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TERM DEPOSIT RECEIPT: The Bank will issue a receipt in favour of the depositor /s showing
the amount deposited, the period for which the deposit is accepted, maturity date and maturity
amount.
DUPLICATE RECEIPT: In case of loss of original Fixed Deposit Receipt the depositors would
have to intimate the Bank immediately. On an application satisfying the prescribed rules the
charge Duplicate Receipt Charges at such rates as in force from time to time.
of a minor.
D)QUARTERLY INTEREST CUM REINVESTMENT PLAN
of a minor.
MINIMUM DEPOSIT: Rs. 500/-
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INTEREST:
Interest amount will be paid at the time of maturity.
TERM DEPOSIT CERTIFICATE: The Bank will issue a certificate in favour of the
depositor /s showing the amount deposited, the period for which the deposit is
accepted, maturity date and maturity amount.
DUPLICATE CERTIFICATE: In case of loss of original Fixed Deposit Certificate the depositors
would have to intimate the Bank immediately. On an application satisfying the prescribed rules the
charge Duplicate Certificate at such rates as in force from time to time.
LOAN AGAINST DEPOSIT: 90% Loan against deposit amount is available.
E) RECURRING DEPOSIT SCHEME
The advantage in opening a Recurring Deposit Account that the depositor would be able to save
certain sums in fixed monthly instalments so that he / she would be able to meet an anticipated
liability / obligation after the end of a specified period.
WHO CAN OPEN AN ACCOUNT: MINIMUM DEPOSIT: Rs? 50/-
INTEREST:
Interest amount will be paid at the time of maturity
PASS BOOK: The Bank will issue a Pass Book showing the name, address, instalment
amount,the period for which the deposit is accepted, maturity date and maturity amount.
LOAN AGAINST DEPOSIT: 90% Loan against deposit amount (accrued value) is available.
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By a natural guardian i.e., father or mother approved by the bank on behalf
of a minor.
F) ABHYUDAYA TAX SAVING SCHEME
Abhyudaya Tax Saving Scheme is formulated by the bank as per the Term Deposit Scheme, 2006
notified by Government of India for the benefit of Income Tax payers. The depositor can avail
deduction of the investment upto Rupees 1.5 Lakh w.e.f 13.11.2014 in a year made in this deposit
from his taxable income U/s 80C of the Income Tax Act. This deposit has a lock-in-period of 5 years
from the date of issue.
Terms & Conditions:
Rate of Interest: Please Refer Deposit Interest Rate Chart the interest shall be paid every quarter (like
quarterly interest scheme) except if required otherwise in accordance with the regulatory guidelines
for payment of interest on the term deposit as may be issued by RBI from time to time.
Minimum Deposit Rs.5000/- and thereafter in multiples of RS.100/-
Not transferable
Not encashable for 5 years from the date of issue
Only the depositor first named will be eligible to claim deduction U/s 80C of
IT Act, 1961
Interest on the deposit is subject to TDS U/s 194A and 195 of the IT Act,
1961
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Interest Accrual will cease from the date of maturity
Deposit under ATSS shall not be pledged to secure loan or as security to any
other asset.
Nomination facility available
G) PERSONAL LOAN
PURPOSE
Purchase of Consumer durables and furniture/ fixture/ computers
Repairs / renovation of flat / house
Marriage & other religious ceremonies
Domestic / Foreign tours & travels
Repayment of existing debt
Clubs, Association, ( only if registered)
Medical expenses for self / family members
For any purpose which is acceptable to bank.
MAX. AMOUNT
Rs. 5.00 lakh *
(* condition apply)
ELIGIBILITY Permanent Salaried employees For Businessmen / Self-Employed / Professionals
Minimum Take Home Income/Salary after EMI amount: - Rs. 8,000/- p.m.
REPAYMENT Upto 84 EMI (No Holiday Period)
RATE OF INTEREST
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MARGIN Nil
MEMBERSHIP
For Applicant:-
o Upto Rs. 1.00 lakh – Nominal Membership Rs.100/-

o Above Rs. 1.00 lakh – 5% of Loan amount
For Sureties: Nominal Membership, Rs.100/- each.
SURETIES
One Surety with Net Take Home Salary/income of Rs.12000/-p.m. OR Two Sureties with Net take
home salary/income of Rs.7000/-
PRIME SECURITY Nil
COLLATERAL SECURITY Collateral security in the form of LIP / NSC / KVP / FDR, if available.
SERVICE CHARGES
1.15% of sanctioned limit + GST.
H) HOUSING LOAN
PURPOSE
o Purchase of Flat (New or Resale)

o Construction of House,
o Extension to existing Flat / House
o Takeover of Housing Loan from other Financial Institutions, etc.
MAX. AMOUNT
o Maximum amount of Rs. 70.00 Lakh.
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ELIGIBILITY
o Any Individual (Businessman, Professional, Self- Employed, Salaried Person

having Regular source of Income)
o Property should be in the name of Applicant.
o The Co-applicant is necessary for Housing Loans. Co-applicant will mainly be
spouse or son or daughter or father or mother of the Principal Borrower and
o he/she may be an earning or non-earning member. In these cases the
income of the Co-Applicant can be clubbed for calculation of eligible loan
amount.
o In the absence of the above Co-applicants, Brother or Sister may be
taken as Co-applicant, but their Income shall not be clubbed for calculation
of eligible loan amount.
o In case of joint Agreements in Housing Loans, the Purchasers (Owners) will
be the Borrowers and hence there is no need for separate Co-Applicants.
Eligibility as per Repayment Capacity = Repayment capacity * 100000 / EMI for
Rs.1,00,000/-.
o Wherein,
o Repayment Capacity = Net monthly Income – (Less) minimum Take home Pay – (Less)
Other Loan deduction.
o Minimum Take Home salary/ Income, = 40% of the Net Income/ Salary p.m. Subject to
Minimum of Rs.8000/- & Maximum of Rs.20,000/-
Whichever is lower.
REPAYMENT
o Up to 20 years (240 months) including the one-month moratorium.

o In case of under construction flats, longer holiday period upto 18 months
o can be sanctioned by the Sanctioning Authority subject to total holiday
o period and EMI should not exceed 240 months.
o In case of taking over Housing Loans from other Banks/Financial
o Institutions, the maximum limit of EMIs with our Bank will be 240 EMIs
o Less EMIs already paid to the previous Bank/financial institutions.
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o In case of Resale property, repayment tenure till residual life of dwelling unit or 240 EMI
whichever is earlier.
I)PRADHAN MANTRI AWAS YOJANA
PRADHAN MANTRI AWAS YOJANA-CREDIT LINKED SUBSIDY SCHEME
“Pradhan Mantri Awas Yojana (Urban) – Housing for All” Mission for urban areas is being
implemented with effect from 17th June, 2015 to provide central assistance to implementing
agencies through States and UTs for Providing houses to all eligible families/beneficiaries. Credit
Linked Subsidy Scheme (CLSS) component of the Mission initially provided interest subsidy on
home loans taken by eligible urban poor [Economically Weaker Section (EWS)/Lower Income
Group (LIG)] for acquisition (including through resale)/construction/repair/renovation of house. The
scheme for EWS/LIG was modified with effect from 1st January, 2017 so as to increase maximum
tenor for calculation of subsidy, resultant enhancement of maximum possible subsidy and extension
of date upto which the scheme will be valid.
Ministry of Housing and Urban Poverty Alleviation also introduced an interest subsidy scheme for
acquisition (including through resale)/construction of house to cater to the Middle-Income Group
(MIG) called “Credit Linked Subsidy Scheme (CLSS) for MIG”, (in two sub-categories namely
MIG-I & MIG-II) which is also being implemented as a Central Sector Scheme with effect from 1 st
January, 2017.
Abhyudaya Bank offers “Pradhan Mantri Awas Yojana-Credit Linked Subsidy Scheme” for EWS &
LIG as well as MIG-I & MIG-II categories.
Salient Features of the Scheme:
• Loans can be extended to construct/acquire dwelling units (or also for repair/
renovation of dwelling units of beneficiaries under EWS/LIG categories) in all the 4316
statutory towns per Census 2011 table,out of which lists of statutory towns in the states of
Maharashtra, Gujarat & Karnataka will be considered.
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• There are category-wise ceilings on carpet area of the dwelling units, quantum of Housing
Loan & its tenor for determining maximum subsidy to which borrowers are eligible. Actual
amount or tenor of a loan can be higher than the respective ceiling for the category/sub-
category but the subsidy will be available up to the limit as worked out on the basis of ceiling
for amount or tenor of the loan.
• Moratorium if any granted will be within the ceiling for tenor of the loan.
• Family is defined as comprising of husband, wife, unmarried sons and/or daughters. In order
to be a beneficiary for Housing Loan under CLSS, she/he or anybody in the family should not
own a pucca house in any part of India. Ceiling for household income varies across
categories. An adult earning member irrespective of marital status can be treated as a separate
household in MIG category.
• The scheme envisages grant of interest subsidy which will be released upfront upon
disbursement of loan.The rates of interest subsidy are different across categories.
• Beneficiary family should not have availed of central assistance under any
housing scheme from Government of India.
J) EDUCATION LOAN
PURPOSE
Vocational/skill development courses of duration from 6 months to 3 years leading to

certificate/diploma offered by a recognized State/Central Govt. institution or Statutory/technical
body or training department of Govt. etc. Typically, courses offered by Industrial Training Institutes
etc. (I I Ts), Industrial Training Centres (ITCs) and Polytechnic Institutes will come under the
eligibility criteria. Bank is free to add other skill development programmes, having regard to
employability.
Expenses considered for Loan
• Tuition /course fee fixed by Govt. /authorities appointed by Govt.

• Examination/Library/Laboratory fee
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• Caution Deposit
• Purchase of Books, equipments and instruments
• Any other reasonable expenditure found necessary by the Bank for
completion of the course.
• In respect of course fee of private institute, the expenses to be limited upto 125% of the fees
prescribed by the Govt. for similar courses, if they are not fixed by Govt./authorities
appointed by Govt.
MAX. AMOUNT
Need based finance to meet expenses as worked out will be considered subject to the following
ceilings:
- For courses of duration upto 1 year – Rs. 50,000/-
- For courses of duration above 1 year – Rs. 1,50,000/-
Bank shall at its discretion, consider limits upto Rs. 75,000/- for courses with duration upto 1 year
and limits upto Rs. 2.00 Lakh for courses with duration above one year for specific courses offered
by reputed institutions having regard to the nature of such courses and employability considering the
eligibility of the loan amount.
ELIGIBILITY
Students Eligibility
• The student should be an Indian National

• Student should have passed 10th standard examination conducted by
State/Central Board
• Student should have secured admission to a Govt. recognized vocational
training courses which is employment oriented.
Joint Borrower
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The joint borrower should normally be parents/guardian of the student borrower. In case of a married
person, joint borrower can be either spouse or the parents / parents-in-law.
K)LOANS & ADVANCES TO MEDICAL PRACTITIONERS
PURPOSE
• For acquiring premises on ownership basis required for running Clinics/Nursing Homes,
pathology labs, drug stores subject to compliance with license / registration requirements
under laws of State / Central Govt. as the case may be.
• For buying equipments/ machinery for various dental implants besides
equipments; For Orthopedists equipments/machinery for various replacements/ implants for
hip/knee/shoulder/spine etc.
• For purchase of standard make medical equipments, professional tools,
ambulance, computers, UPS, software, furniture & fixtures etc.
• Expansion/ renovation/ modernization of existing premises.
MAX. AMOUNT
Term Loan Rs. 200.00 Lakh
Overdraft facility (Cash Credit) Rs.5.00Lakh for purchase of medicines and to pay salaries andother
expenses.
Note: - Composite Loan & CC Amount: - Rs.200.00 Lakh.
ELIGIBILITY
Constitution of the Borrower: -
Individuals (Experienced or Fresh Qualified Registered Medical Practitioners), Partnership Firm/

Private Limited Company/ Trust – partners, directors, trustees should be qualified registered medical
practitioners. Applicants/ Promoters should have recognized qualification in the field of medical
science like
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MBBS/ BAMS/ BDS/ BHMS/physiotherapy/ pharmacy/radiology/pathology etc.
Loan Eligibility based on:-
• Based on repayment capacity.

• DSCR should be more than 1.5.
• Cost of Project minus margin amount
REPAYMENT
For purchase of premises – Maximum 120 Months (Including Moratorium Period)
For purpose, other than purchase of premises – Maximum 84 Months (Including Moratorium Period)
For Loan up to Rs.2.00 Lakh--Maximum 60 months. Maximum moratorium period will be based on
the merits of the Project/case.
SERVICES FOR EXPORTERS AND IMPORTERS
EXPORTERS
Advising Export Letters of Credit:
i. Export Letters of Credit received by us will be promptly advised to the beneficiaries. The
amendments to the export letter can also be advised by us.
ii. Collection of Export Bills:
iii. We handle export bills on collection basis. Documents are despatched for collection promptly.
Funds are credited without any delay on receipt of the same from our correspondent bank.
iv. Credit Facilities to Exporters:
v. We make available credit facilities to exporters as under:
vi. Pre-shipment Finance/ Packing Credit:
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vii. It is granted to the exporters for the purpose of procuring raw materials, processing,
manufacturing, packing, transportation, warehousing of goods meant for export. This facility is
offered at concessional rate of interest and disbursed both in Indian Rupees and in Foreign Currency
viii. Post-Shipment Finance: It is offered by way of:
1. Purchase/Discount of Export bills.
2. Negotiation of export bills drawn under Letter of Credit.
Both Pre-Shipment Finance and Post-Shipment Finance can also be made available in Foreign
Currencies (USD, GBP, EUR, and JPY) depending on the availability of Foreign Currency Funds.
IMPORTERS
Import Letters of Credit:
Opening of Import letter of credit in major permitted currencies. Letter of Credits are advised
through our correspondent banks abroad. We also arrange for confirmation of the letter of Credit
opened by us.
Import bills received for collection:
We also handle Import bills received from foreign banks drawn on our customers on collection basis .
Arranging Buyer’s Credit:
We arrange short term Buyer’s credit of our Importer customers.
Foreign Bank Guarantees:
We have arrangements to issue Guarantees favoring beneficiaries abroad .
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BANK’S SERVICES
Third Party Products: -
Abhyudaya co-operative bank focus has always been on offering all financial products under one
roof and to become a full-fledged financial service provider. The bank is committed towards
providing excellent customer service, understanding the needs of customers and introducing new
products and services making banking a pleasant experience.
Various deposits, loans & advances products make up the core business of the bank. They contribute
to the major earning of the bank’s total revenue. To become a full-fledged financial service provider,
competing with the Nationalized, Public & Private Sector banks & to keep pace with peer Banks,
Abhudaya bank decided to offer other fee-based product & services. The prime objective of the bank
is to take customer service a notch above. Apart from generation income, these services provide to be
beneficial in retention of the customer loyalty and further addition of new customer. It has also
helped the bank to explore other avenues for generating income as the Net Interest Margin has
been declining across the banking industry and Banks started to explore avenues to increase fee-
based income.
The following fee-based services are provided by the bank:
1. Life Insurance Products

2. General Insurance Products
3. Demat Services
4. PAN Card Distribution Services
1. Life Insurance Services
Abhyudaya Co-operative Bank Ltd. Is offering insurance services to customer since November
2005 on referral basis through ING Vysya Life Insurance Company Ltd. From the year 2009
bank entered into a tie-up under Bancassurance channel as a Coporate Agent of Life Insurance
Corporation of India, the largest life insurance company in India. Bank has compiled with all the
regulatory requirements to offer the insurance service from Insurance Regulatory and
Development Authority (IRDA).
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As a Corporate Agent, Bank ensures that proper policies are canvassed to the customers which
provide appropriate insurance cover to the customers. To look after all insurance related business
activities, Bank has established a separate department and has deputedwell trained and qualified
staff members to offer the services. This specially trained field staff members assist branches and
give advice to the customers on their policy needs and insurance covers. These staff members
have successfully completed “Specified Person” (SP) certification which is a cource prescribed
by IRDA.
Various products offered under insurance service range from term plan, endowment plan,
pension plan & ULIP plans. In addition to that Bank offers Abhyudaya Akshay Insurance
Scheme (AAIS) to a customer which is unique product offering insurance cover of Rs. 1Lac at
apremium amount of Rs.310/- per annum.
LIC of India has honoured Abhyudaya Co-op. Bank Ltd., for its splendid performance at the
Annual Bank partners meet at all India level organised by LIC. Bank has been a consistent
performer among other Banks.
2. General Insurance Service
For assuring trust and safety, Bank has partnered with the best in the general insurance industry
showing its commitment of service its customers. Abhyudaya Bank is a corporate agent of The
New India Assurance Co. Ltd. Since September, 2011 the largest General insurance company of
India.
Through the general insurance service all types of general insurance policies are marketed to the
existing customers & non customers. Through this business Bank also ensures that the assets
financed by the Bank are properly and adequately insured. While providing loan to customers,
Bank ensures that General insurancefor the financed and charged assets such as stock,
machinery, motor, vehicle, building are taken adequately and the customer is facilitated to obtain
general insurance policy.
Bank has established a separate insurance department which takes care of the business and
facilitates customers to take care of their General Insurance needs. Bank has trained staff
53 | P a g e
members working at branches so that the correct policy is adviced to the customers and adequate
insurance is taken to insure their valuable assets. Since inception, Bank has insured assets of
more than 12,000 customers.
3. Demat (Depositry Services)
Abhyudaya Co-op. Bank Ltd. Is a Depository Participant (DP) of Central Depositry Services
(India) Ltd. (CDSL). Bank started its Demat Operation in june, 2010. Bank is providing Demat
Service as per the guidelines of SEBI across all its branches.
To encourage customers to open Demat account Bank had waived off the Annual Maintenance
charges (AMC) on Demat Account for the first two year from the commencement of the
services. To offer uninterrupted services through all its branches, bank has installed Back-office
software from M/s. CMC Ltd. Connecting Demat services across branches. Bank has given wide
publicity of its Demat Service by active participation in various Investor Awareness Programmes
(IAP) which were organised at various locations like Mumbai, Pune, Nashik, Nagpur & Kankavli
in association with CDSL Venture Ltd. (CVL) KYC Agency (KRA) to comply with the one-time
KYC norms as adviced by SEBI. SEBI had issued guidelines instructing all Depository
Participant (DP) to offer Basic service Demat Account (BSDA) facility to encourage more retail
investor to securities market.
Ministry of Finance, Government of India launched Rajiv Gandhi Equity Saving Scheme
(RGESS) to offer additional tax benefits to new investors in securities markets. Bank is offering
RGESS, Demat Account to its customers. Bank has opened more than 1600 Demat account.
4. PAN Card Distribution Services
Bank has a tie up with UTI Infrastructure Technology Service Ltd. (UTITSL) from
July, 2010 for providing this service. Bank has provided this service to more than
36000 customers. Bank is offering PAN Card service at Rs.105/- as prescribed by
income Tx depRTMENT.
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While PAN Card acts as an identity proof, it is required for filing income tax
returns, it is also mandatory for certain investments like Mutual Funds, Share
Markets, etc. and opening Demat Account. It also required while submitting 15-G/
15-H form to the bank by the depositor, during sale / purchase of moveable /
immovable properties and for obtaining loans from Banks / Financial Institutions.
PAN card Services is a value added services offered to customers as the

commission earned from the service is trivial as compared to the efforts and the
cost of human resources. This service has helped the Bank in strengthening its
KYC compliance and also acts as a service to the masses.
Treasury Department
Bank’s Domestic Treasury dept. was established in the year 2002-03 while our
Forex Treasury started functioning from April 2010 on getting AD-Category-I
license from RBI. Since then Bank has Integrated Treasury Dept, where both
Domestic as well as Forex trading activities are undertaken. Now, it is managing
around Rs.4700 cror portfolio. The Dept. has contributed immensely to the growth
and prosperity of the bank. It also ensures statutory compliance, Liquidity
Management and is crucially significant in handling Bank’s investment in a
disciplined way for achieving better returns. Investments of the bank are managed
based on Macroeconomic scenario, liquidity needs and future market expectations
based on domestic as well as international events in a support pillar for credit
segment in down turn.
Treasury department is supported by well trained staff and latest technology

providing transparency to all deals. Our bank is a member of NDS-OM (an
anonymous trading platform for G sec trading), NDS-Call, CBLO, CROMS and
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Fx-Clear platform of CCIL for undertaking seamless transactions in G-sec. Money
market and Fx segment.
Bank’s investment portfolio has mixed bucket of securities consisting of various

instruments like Cental Govt. securities, State Govt. loans, T Bills, CDs, FD, s,
Mutual Funds (debt /Money Market) and money market instruments like Repo,
CBLO, call etc. to diversify the Risk. While dealing with various investment,
treasury gives top priority for adherence of Statutory & Regulatory Compliance.
NEFT/RTGS/NACH
In order to reform the payment and settlement system for financial transactions and
to make our payment and settlement systems globally acceptable, RBI has initiated
several measures in the recent past. Real Time Gross Settlement (RTGS) and
National Electronic Fund Transfer (NEFT) systems are two such IT enabled
transaction platforms introduced by RBI. As on date participants for RTGS
settlement are 157 Banks with 1,14,171 branches, whereas for NEFT participants
are 158 banks with 1,16,715 branches across the country.
Our bank is a direct member of IDRBT (a subsidiary of RBI) driven SFMS

(Structured Financial Messaging System) since inception. Bank has migrated to
NG-RTGS. This platform facilities electronic fund transfer through the NEFT &
RTGS to our customers from 8am to 6pm on weekdays and 8am to 1pm on
Saturdays. Bank extends the facility of remittance to as well as to Nepalese
working in India, intending to transferfunds.
Bank is also a member of NPCI for its Interbank Aadhar based electronic fund
transfer facilities like NECS, ABPS etc., through which our customers get direct
56 | P a g e
benefit transfers, salary credits and can pay loan instalments or other business
commitments.
Foreign Exchange Services
Our bank obatained Authorised Dealer Category-I (A D Category-I) Licence from

Reserve Bank of India in June 2007 for independent handling of all types of Foreign
Exchange transactions including opening and maintenance of Non-Resident Deposit
Accounts. We established our Foreign Exchange Department and commenced
operations from 11th Feb,2008.
To facilitate handling of forex transactions, we are maintaining Foreign Currency

Accounts in USD, EUR, GBP & JAP YEN Currencies with banks abroad.
With a view to provide prompt services to our forex customers, we have designated
our Fort, Vashi, Pimpri (Pune) and Mithakhali (Ahmedabad) branches for direct
handling of all types of forex transactions instead of routing the same through Foreign
Exchange Dept. at Dadar.
We are offering following types of forex services to our customers:
Advising of Export LCs, Pre-Shipment Finance, Post-shipment Finance, Collection of

Export bills.
Imports
Opening of Import LCs, Handling of Collection bills, Issuance of Guarantees,

Arranging of Buyer’s Credit.
Remittances
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Receipt of Inward Remittances, Handling of Outward Remittances for all piurposes
permitted by FEMA
Currency Exchange Service
Purchase of Foreign Currency Notes and Travellers cheques.
Sale of Foreign Currency Notes and Travellers cheques.
NRI Services
Opening of Non-Resident Accounts-
Non-Resident External (Rupee), Non-Resident (Ordinary) Rupee, Foreign Currency

Non-Resident Term Deposits.
Foreign Currency Accounts
Opening of- Exchange Earners Foreign Currency (EEFC) A/cs, Resident Foreign
Currency A/cs, Resident Foreign Currency (Domestic) A/cs.
Money Transfer Services
Xpress Money
Money Gram
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Information Technology Based Services:23
Instant SMS:
Bank has implemented trigger based SMSes alerts for various types of monitory
transaction (Debit/Credit) and other information SMSes to customer such as
“Welcome message to new customers for opening accuount, Thanks giving message
to introducer for introducing a New account. Thanks giving message for opening a
Term Deposits, To Rupay Debit /ATM Cardholder for evry transactions with latest
balances, To Rupay Debit/ ATM Cardholder for change of pin, In respect of
NEFT/RTGS Transaction, Debit to customers and credit to beneficiary, For Loan
Repayment Reminders, Term Deposit/Recurring Deposit Maturity Notice, For
Birthday Wishes, etc.
Internet Banking:
Bank has implemented and providing Internet Banking portal to the customers with
the security features as per RBI guidelines. The entire internet banking system and
Network has been audited and VAPT has been carried out by SISA Audit Firm. This
has given complete control over online Banking. The bank has providing Funds
Transfer between linked accounts of same customer-this facility allows customers to
transfer the funds between his own accounts within bank only. Apart from above,
Balance Enquiry, printing of Account statement, Cheque book request, clearing
cheque status i.e. whether passed or returned can be checked online on Internet portal
of the Bank.
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RUPAY CARD – India’s Own Card:
Our Bank has launched Abhyudaya RuPay Debit Card with e-commerce services on
25th June 2014. RuPay Card scheme is a domestic network set-up to provide secured,
robust, scalable, simple, transparent, inclusive, user friendly and affordable solutions
to entities eligible to issue cards in India. With Abhyudaya RuPay Debit Card you can
pay restaurant bills, book travel tickets, use at ATM, Pay fuel bills, Shop online, enjoy
nonstop shopping.
RuPay card comes with an insurance cover of Rs.1 lakh on Classic Debit Card & 2
lakh on Platinum Debit card. RuPay Cards are accepted across more than 1.80 lakh
ATM’s, 9.53 lakh PoS terminals and 60% e-commerce merchants in India. Our Bank
is providing RuPay Debit Card for all types of saving accounts customers.
AWARDS & PRICES:
• Bank has won the prestigious IDRBT Banking Technology Excellence

Award for the year 2014-15 for ‘Best IT enabled Co- operative Bank’ Award.
• Bank has won Lokmat Corporate Excellence Award for Brand Excellence in
Banking.
SHAREHOLDERS’ BENEFIT
• MEDICAL BENEFIT :
"Family members shall mean and include dependents on member, viz. spouse, son,
daughter, parents, brother and sister.
Benefits under Members Welfare Fund would be available to members for the
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financial year i.e. from April to March.
Bank will provide medical benefits to shareholders who have completed two years of
their membership."
With effective from 01st April 2016
Upto 5 years For For members

Membership Members more than 15 yrs
more than 5 old membership
yrs and
upto 15
membership
a) Family Planning
Rs.1000/- Rs.1500/- Rs. 2000/-
Operation
b) Major Operations : Reimbursement of expenditure will be

considered either to the member or to the family members,as
detailed below, incurred on major expenses viz. By-pass surgery,
Brain Tumor, Kidney Transplant etc.
i) For members Rs.10,000/- Rs.20,000/- Rs.25,000/-

over 60 years of age.
ii) For other members Rs.7,000/- Rs.15,000/- Rs.20,000/-
iii) For Family members Rs.5,000/- Rs.7,000/- Rs.10,000/-
c) Medical Check Up :
Reimbursement of Rs.1000/- Rs.1,500/- Rs.2,000/-
expenses incurred on
complete medical check
for member and his / her
spouse are over 60 years of
age.
d) Hospitalization for more than 5 days :

i) For members over 60 Rs.3,000/- Rs.7,000/- Rs.10,000/-
yrs of age.
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ii) Other members Below Rs.2,000/- Rs.3,000/- Rs.5,000/-
60 years of age.
e) Operation including cataract operation / major medical aliments /

accidental cases / small operation
Rs.3,000/- Rs.8,000/- Rs.10,000/- OR
OR 50% of 50% of actual
actual expenses
expenses whichever is less.
whichever is
less.
N.B. The members over 60 years of age can claim medical benefits for not more than
one purpose during the year (April-March) under clause No. (b) (i), (C),(d).members
should submit their applications for assistance from fund not later than three months
from the close of the financial year. Delayed submission will result in rejection of the
application.
• EDUCATION BENEFIT :
The bank will award cash prizes every year to the eligible members / spouse and their
children who have completed 1 year on the date of application as detailed below :
With effective from 01st April 2016
a) SSC & HSC Exam:
For students who stand in the merit list of Board Rs.2,500/-

For Students securing marks aggregating 90 % & above Rs.2,000/-
For students securing marks aggregating 75% & above. Rs.1,000/-
For Students securing marks aggregating 60% & above. Rs.750/-
b) Graduation / Post-graduation:
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For successful completion of MBBS / ICWA / CA Rs.6,000/-
/ MBA / CS / PHD / IAS.
/BAMS/BDS/MMS/PGDM (Approved by AICT)
For rank holder in the merit list of the University. Rs.5,000/-
For successful completion of B.E.(First class) Rs.3,500/-
For Technical Diploma Holder (Govt. Rs.3,000/-
approved)(First Class) Rs.1,700/-
For students securing marks aggregating 75% &
above.
For students securing marks aggregating 60% & Rs.1,500/-
above.
c) Nursing :
For students securing 75 % & above Rs.1,800/-
For students securing 60 % & above Rs.1,200/-
• SPORTS BENEFIT :
The sports benefits will be considered to the members or to their family members, as
detailed below, for participating in sports teams / individual events at State / National /
International Level.
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4.2 Financial Review for Last five Years
[ Rs. in Lakhs]
Year 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.03.2020
Paid up
Share 11409.26 11171.66 13086.21 14784.19 16162.90
Capital
Reserves 145751.98 158097.82 111703.72 118334.49 121869.93
Deposits 1040261.05 1111913.16 1069077.58 1102231.83 1083807.54
Loans &
571148.07 561221.52 544841.99 579825.20 665437.90
Advances
Gross
8737.06 11515.62 10265.76 5060.66 4504.58
Profits
Net Profits 236.47 355.08 916.21 2158.60 1622.45
Working
1240349.10 1323043.39 1229363.67 1272265.24 1260007.92
Capital
Investments 468820.09 518795.93 448854.22 451750.21 350841.28
Membershi
182021 192107 201534 212264 222571
p (Nos.)
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Despite adverse market conditions Maharashtra based Multi-State Scheduled Bank-
Abhyudaya Cooperative Bank has performed well on almost all the financial
parameters in 2019-20 financial year except there is a decrease in net profit.
Giving reaction on the financial report of the bank, Premnath S Salian, Managing
Director of the bank said, “If we see overall we have performed well on all the
financial parameters and our total business increased from Rs 16,820.56 crore as on
31st March 2019 to Rs 17492.44 crore in 2019-2020 FY. In the wake of the PMC
Bank episode there is a slight decrease in deposit of the bank as on 31st March 2020”.
“Besides, the net profit of the bank has decreased from Rs 21.58 crore to Rs 16.22
crore in 2019-2020 because we have made a provision from our profits. The deposits
of the bank reduced from Rs 11,022.31 crore to Rs 10,838.07 crore whereas the loan
and advances of the bank grew from Rs 5,798.25 crore to Rs 6,654.37 crore as on 31st
March 2020”, he informed on the phone.
The paid-up share capital of the bank increased from Rs 147.84 crore to Rs 161.62
crore and reserves hiked from Rs 1,183.34 crore to Rs 1,218.69 crore as on 31st March
65 | P a g e
2020. “Despite the corona scare, the bank has also performed well in reducing its Net
NPA to less than three percent and gross NPA to less than 7 percent.
“We are trying to regain the faith of the customers which was lost due to the PMC
bank scam”, Salian underlined who is MD of the fourth largest UCB of India.
The Bank has maintained a ratio of CASA Deposits to Total Deposits as high as
37.55%. The Capital Adequacy Ratio maintained by the bank is as high as 12.60%.
The bank has a network of 111 branches across different states. Out of which 34
branches are rendering all seven days a week service to the customers.
Readers would recall that the bank hogged the media headlines in the month of August
this year when a message was viral in social media. It read: “If anyone has their
accounts in Abhyudaya bank, transfer all your funds to other banks. Even from
NKGSB bank”.
The depositors have withdrawn up to Rs 140 crore in two days as soon as the rumors
went viral on social media questioning the financial status of the bank. Many have
even broken their Fixed Deposits before maturity.
4.3 Interpretation:
A. Bank Branch Manager Name: Mr. Christopher D’sa; Branch name: Malad west
branch.
B. There is almost 10% to 15% growth in bank customers every year
C. Reserves maintained by the bank- statutory reserves, contingency reserve,
education fund reserve, general reserve, etc.
D. 15% dividend is declared to shareholders every year.
E. Depending on the profits.
F. Shares are not listed in the stock exchange, and share price is 10 Rs. per share.
66 | P a g e
G. There are many terms and provisions for loans and advances, they first see the
repayment capacity, the person should also have the respective bank account,
etc. in case of housing loan he must be the member of the bank, the person
should have some at least few shares in case if he wants a housing loan.
H. Not issued by the bank.
I. Because of the market valuation, not able to achieve the target. Loans &
deposits were also less than the budgeted.
J. Fixed deposits rates have been increased by 0.50% in order to increase the
deposits with the bank.
67 | P a g e
CHAPTER 5: CONCLUSION & SUGGESTIONS
5.1 RECOMMENDATION & SUGGESTION:

After studying the details and information's that I collected, I put forth some of my
recommendations which, I believe, would enhance the overall working and
performance of the bank. The bank should increase their deposits by providing a good
interest rate to the customers so as more deposits are been attracted towards the bank.
Also, attention should be given towards loans and advances given by the bank. The
vast differences that arise between budgeted and conclusion should be given attention
& measures should be taken for that.
5.2 Conclusion
This project has been made with meticulous attention so that it covers in detail aspects
of the Abhyudaya co-operative bank like overview; how the bank did evolve to the
position it is up to now, its current and past financial standings, the products it does
offers to meet various financial needs of people, and how committed and integrated
they are to serve their customer services and maintaining relationships; which I have
gather this information and find glad to present you.
Abhyudaya co-operative bank focus has always been on offering all financial products
under one roof and to become a full-fledged financial service provider. The bank is
committed towards providing excellent customer service, understanding the needs of
customers and introducing new products and services making banking a pleasant
experience.
68 | P a g e
The performance of Abhyudaya was booming as compared to last five 5 years. But if
we go for with Annual Budgeted as on 31.03.2019 net profit was 16820.56 which
leads to Actual 17492.44 crores. In 2019-2020 FY.
BIBLIOGRAPHY:
• Abhyudaya bank manual & circular
• S. R. Walunj, (2000) in his study on “Impact of Credit Institutions on
Agriculture, Rural Development and Employment (A case study of Cooperative
Banks in Pravara Area)” unpublished Ph.D.
• Dr. R.S. Ramesh, (2001), in his article, “Credit co-operative in free market
economy-A SWOT analysis” published in the “Maharashtra Co-operative
Quarterly”
• Sanjay Namdev Aswale, (2004), study on “The impact of Primary Credit
Cooperative Society in Village Development” (A case study of Osmanabad
District), unpublished Ph.D.
• Balasaheb Vikhe Patil, (2005) in his article published in Economic Political
weekly on “Rural Banking; Problems of Localized Banking Institutions”
• J. P. Bhosale, (2005), “A study of Primary Agriculture Cooperative Credit
Societies in Junnar, Ambegoan & Khed Talukas of Pune District” unpublished
Ph.D.
• Pujari, Ashok, Suhag and Malik, (2009) in their article published in Indian
Cooperative Review on “An Evaluation of performance of Primary Agricultural
Cooperative Societies in Karnataka State”
69 | P a g e
WEBLIOGRAPHY:
• https://rbi.org.in/scripts/fun_urban.aspx
• https://en.wikipedia.org/wiki/Banking_in_India
• Https://www.abhyudayabank .co.in
70 | P a g e

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“CO-OPERATIVE BANKING WITH RESPECT TO ABHYUDAYA CO-OPERATIVE

bachelor in commerce (Accounting and finance)

Under the faculty of commerce

TANVI KIRAN KENI

UNDER THE GUIDANCE OF

Prof. MAMTA CHHAJER

GANSHYAMDAS SARAF COLLEGE

OF ARTS & COMMEERCE

AFFILATED TO UNIVERSITY OF MUMBAI

REACCREDITED BY NAAC WITH ‘A’ GRADE

S.V. ROAD, MALAD (W),

University of Mumbai for partial completion of the degree of

Bachelor of commerce (Accounting and finance)

Under the faculty of commerce

Tanvi kiran Keni

Under the guidance of

Prof. Mamta chhajer

Ghanshyamdas Saraf college

Of arts and commerce

GHANSHYAMDAS SARAF COLLEGE

OF ARTS & COMMERCE

AFFILATED TO UNIVERSITY OF MUMBAI

REACCREDITED BY NAAC WITH ‘A’ GRADE

S.V. ROAD, MALAD (W),

This is to certify that Ms./Mr TANVI KIRAN KENI has worked

P roject guide ___________

SR. Particulars Pg.no.

4.1 ABHYUDAYA BANK PROFILE 27

1.1 ABOUT BANKING INDUSTRY

ORIGIN OF BANKING INDUSTRY

a) Deregulation of interest rates

b) Introduction of new products

c) Relaxation in investment norms for financial intermediaries, especially bank

d) Emergence of new institution such as primary dealers & mutual funds

e) Easing of restriction in respect of banks ‘foreign currency investments’

f) Withdrawal of reserve requirements on internal borrowings.

1.2 CO-OPERTIVE BANKING INTRODUCTION & DEFINATION

• First principle – Voluntary & Open Membership.

The Co-operative Banking System in India is characterized by a relatively comprehensive network to

“A Co-operative bank, as its name indicates is an institution consisting of a number of

2. have common membership in an association or organisation, including a business, religious,

3. have common membership in an association or organisation, including a business, religious,

4. Reside within the same defined community or geographical area.

Cooperative banking is retail and commercial banking organized on a cooperative basis.

RELATIONSHIP WITH CUSTOMER:

ESTABLISHMENT OF CO-OPERATIVE BANKS IN INDIA

1.4 CHARACTERISTICS OF CO-OPERATIVE BANKING

6. Co-operative banks are financial intermediaries only partially.

The sources of their funds (resources) are:

(a) Central and state government,

(b) The Reserve Bank of India and NABARD,

(c) Other co-operative institutions,

(d) Ownership funds and

(e) Deposits or debenture issues.

1.5. REGULATORY BODIES OF CO-OPERATIVE BANKS

As part of these functions, it

REFORMS IN BANKING REGULATION ACT, 1949

Amendments to the BR Act would cover the following:

1.6 CO-OPERATIVE BANKS IN INDIA:

Co-operative banking structure in India is categorised into 3 broad sectors:

State co-operative banks- Total 31.

Scheduled urban co-operative bank –Total 54

Non-Scheduled urban co-operative bank –Total 1528