A

PRESENTATION
ON

“CO-OPERATIVE BANK”

✓ Class : MBA
Wani Sneha Gorakshanath Borse Aishwarya Sandeep
Roll No : 67 Roll No : 08
CONTECT
▪ Introduction
▪ History of Co-operative banks
▪ Key People
▪ Functions of Co-operative banks
▪ Objectives of Co-operative banks
▪ Structure of Co-operative banks
▪ Types of Co-operative banks
▪ SWOT Analysis
▪ Co-operative bank Fixed Deposits
▪ Conclusion

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INTRODUCTION
The Co-operative bank is a UK (United Kingdom)’s retail and commercial bank.

• It was established on 8 November 1872, since the Co-operative Hold Society's credit and deposit
department, four years later the CWS Bank.
• It is headquartered in Balloon Street, Manchester.
The word ‘co-operative’ originated from the Latin word ‘cooperari’
or ‘cooperat’ which means worked together, it basically means that
individuals come together and help each other for their similar interests.
Likewise, co-operative banks are a kind of associations of members
who have a common belief in which they come together and cooperate
with each other.

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HISTORY OF CO-OPERATIVE BANK
Cooperative movement in India was started primarily for dealing with the problem of rural credit. The
history of Indian cooperative banking started with the passing of Cooperative Societies Act in 1904. The
objective of this Act was to establish cooperative credit societies “to encourage thrift, self-help and
cooperation among agriculturists, artisans and persons of limited means.”

Many cooperative credit societies were set up under this Act. The Cooperative Societies Act, 1912
recognized the need for establishing new organizations for supervision, auditing and supply of
cooperative credit. These organizations were-
• A union, consisting of primary societies;
• The central banks; and
• Provincial banks.

Although beginning has been made in the direction of establishing cooperative societies and
extending cooperative credit, but the progress remained unsatisfactory in the pre-independence period.
Even after being in operation for half a century, the cooperative credit formed only 3.1 per cent of the
total rural credit in 1951-52.
 KEY PEOPLE

Nick Slape (Chief Executive Officer)

Bob Dench (Chairman)

Functions of Cooperative Banks
•It provides financial assistance to people with small means and protects them from the latches of money lenders
providing loans and other services at a higher rate at the expense of the needy.
•It supervises and guides affiliated societies.
•Rural financing- It provides financing to rural sectors like cattle farming, crop farming, hatching, etc. at
comparatively lower rates.
•Urban financing- it provides financing for small scale industries, personal finance, home finance, etc.

Objectives of Cooperative Banks

•To provide rural financing and micro-financing.
•To remove the dominance of money lenders and middleman.
•To provide financial support and personal financial services to small scale industries, housing financial assistance,
etc.
•To provide basic banking services to its members.
•To promote the overall development of rural areas.

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STRUCTURE OF CO-OPERATIVE BANK
Co-operative Credit
Institution

Agriculture Credit Institution Non-Agriculture Credit

Institution

Long-Term Credit Institution

Short-Term Credit Institution
(Land Developments Banks)

State Cooperative

Central Cooperative banks

Primary Agriculture Credit

Societies
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 There are different types of cooperative credit institutions working in India. These institutions can be
classified into two broad categories- agricultural and non-agricultural. Agricultural credit institutions dominate
the entire cooperative credit structure.
Agricultural credit institutions are further divided into short-term agricultural credit institutions and long-
term agricultural credit institutions.
The short-term agricultural credit institutions which cater to the short-term financial needs of agriculturists have
three-tier federal structure-
1. at the apex, there is the state cooperative bank in each state;
2. at the district level, there are central cooperative banks;
3. at the village level, there are primary agricultural credit societies.
Long-term agricultural credit is provided by the land development banks.

IMPORTANCE OF CO-OPERATIVE BANK

•It has an extensive branch network all over the country, making credit easily available even to rural areas. It
accounts for 67 per cent of total rural credit.
•It is an integral source for credit to agriculturalists.
•It provides support to small and marginal farmers for buying inputs, storage and marketing assistance.

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TYPES OF CO-OPERATIVE BANK
Primary Co-operative Credit Society
Types of Co-operative Bank

•The Primary Co-operative Credit Society is an association of borrowers • Primary Co-operative Credit
and non-borrowers residing in a particular locality. Society
•The funds of the society are derived from the share capital and • Central Co-operative Banks
deposits of members and loans from central co-operative banks.
• State Co-operative Banks
Central Co-operative Banks
• Land Development Banks
•The funds of the bank consist of share capital, deposits, loans and
overdrafts from state co-operative banks and joint stocks. • Urban Co-operative Banks
•These banks provide finance to member societies within the limits of the
borrowing capacity of societies.

State Co-operative Banks

•It procures funds from share capital, deposits, loans and overdrafts from the Reserve Bank of India.

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•The state co-operative banks lend money to central co-operative banks and primary societies and not directly to
the farmers.
•State Co-operative Bank - Maharashtra State Co-operative Bank

Land Development Banks

•These are organized in 3 tiers, namely; state, central, and primary level with the objective to meet the long term
credit requirements of the farmers for developmental purposes.
•National Bank for Agriculture and Rural Development (NABARD) supervises Land development banks.
•The sources of funds for these banks are the debentures subscribed by both Central and State government as
these banks do not accept deposits from the general public.

Urban Co-operative Banks

•It refers to primary cooperative banks located in urban and semi-urban areas.
•Earlier the scope of these banks was restricted, which now has been considerably widened.
•They provide funds and services to small borrowers and small business.
•Urban Co-operative Banks - Abhyudaya Co-operative Bank
Saraswat Co-operative Bank

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 The Top 10 Co-operative Banks in India
1. Saraswat Cooperative Bank
2. Cosmos Cooperative Bank
3. Shamrao Vithal Cooperative Bank (SVC
Bank)
4. Abhyudaya Cooperative Bank Ltd
5. Bharat Cooperative Bank
6. TJSB Cooperative Bank
7. Punjab & Maharashtra Co-operative
Bank
8. Janata Cooperative Bank
9. Kalupur Commercial Cooperative Bank
10. NKGSB Cooperative Bank

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 SWOT ANALYSIS

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• The bank offers a • The bank had to face a • The bank should • Default risk which is the
variety of retail banking severe financial crisis introduce new products risk that the bank may
services such as current which saw it being taken and schemes to bring in run into losses due to the
accounts, mortgages, over by US hedge funds. new customers. It should counter party defaulting
loans, credit cards, • The bank has recently also build relationships on their liabilities.
investments etc. closed a lot of its with existing customers to • A bad economic outlook
• The bank caters to a branches and also retain them. can cause serious
wide customer base terminated its off shore • The bank should come up damage to the financial
including individuals, activities. with better governance situation of the bank.
businessmen, corporate and be more • The bank faces threat of
customers etc. transparent, in order to running out of capital to
• The bank provides its restore customer run its day to day
customers with latest confidence in the business due to the
facilities like internet processes of the bank. severe financial crisis it is
banking facility and going through
mobile banking facility.

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CO-OPERATIVE BANK FIXED DEPOSITS

Bank Regular Interest Rates Senior Citizen Interest Tenure

(p.a.) Rates (p.a.)

• Repco Bank 6.25% 6.75% 1 and more than 2 years

• Andhra Pradesh State Co- 6.00% 6.60% 1 Year
operative Bank
• Bombay Mercantile Co- 5.40% 6.20% Above 5 Years
operative Bank Limited
• Bharat Co-operative Bank 6.00% 6.50% Above 5 Years

• Saraswat Bank 5.85% 6.35% Above 5 Years

• Janata Sahakari Bank 5.50% 5.75% 12 months to 36 months

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CONCLUSION
Now, It is very much clear that co-operative banks have very much importance in national development.
Without the help of co-operative banks, millions of people in India would be lacking the much needed financial
support.
Co-operative banks take active part in local communities and local development with a stronger commitment
and social responsibilities. These banks are sure to win in the race because they are from the people, by the
people and of the people.

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