A PROJECT REPORT ON

“LOANS AND ADVANCES AT

SHIRAL GAT PRIMARY AGRICULTURE CO-

OPERATIVE CREDIT SOCIETY”

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE COURSE

MASTER OF MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI

SUBMITTED BY
Mr. NANDAN DNYANESH KHANVILKAR
SPECIALISATION: - FINANCE.

UNDER THE GUIDANCE OF

PROF. RENAPURE L.

THROUGH

MANDAR EDUCATION SOCIETY'S

RAJARAM SHINDE COLLEGE OF MBA
PEDHAMBE, CHIPLUN, DIST - RATNAGIRI
2021-2022

A PROJECT SUBMITED TO
UNIVERSITY OF MUMBAI
 CERTIFICATE BY THE GUIDE

This to certify that the Project Report titled “LOANS

AND ADVANCES AT SHIRAL GAT PRIMARY
AGRICULTURE CO OPERATIVE CREDIT SOCIETY”
submitted in partial fulfilment for the award of post-
graduate Degree in “Master of MANAGEMENT
STUDIES” from RAJARAM SHINDE COLLEGE OF
MBA, PEDHAMBE was carried out by Mr. Nandan
Dnyanesh Khanvilkar, under my guidance, during the
academic year 2021 -2022.

Signature of the Head Signature of the

Guide

Date:-
 DECLERATION

I, the undersigned, MR. NANDAN DNYANESH KHANVILKAR hereby

declare that the project report on LOANS AND ADVANCES ” conducted at
SHIRAL GAT PRIMARY AGRICULTURE CO-OPERATIVE CREDIT
SOCITY is prepared and submitted by me to the RAJARAM SHINDE
COLLEGE OF MBA, PEDHAMBE, CHIPLUN, MAHARASHTRA.

This project is my original work and report prepared therein is based on

research by me during my project. I further declare that to the best of my
knowledge and belief, this work is not submitted to this or any other
university for the award of any other degree, diploma or equivalent course.

Signature

MR. NANDAN DNYANESH KHANVILKAR

Place: CHIPLUN

Date:25.12.2021

1
1
 PREFACE

The main objective of practical knowledge in the form of industrial visit at the
Master of Management Studies level is to give the perspective knowledge
about the organization. To become sharper in the field of Management, one
needs both practical as was theoretical knowledge.

I have decided to do my project at PRIMARY AGRICULTURE CREDIT

SOCIETY and therefore I have visited the " SHIRAL GAT PRIMARY
AGRICULTURE CO-OPERATIVE CREDIT SOCITY”, Shiral to undertake
visit as a pre-requisite of my course studies.

In this project, I have taken mainly following points:

 Introduction of banking system.

 Co-operative banking
 Role of Primary Agricultural Co-Operative Societies in Co-operative
Banking and Agriculture.
 Information about Shiral Gat PACC Society.
 About the main topic, i.e., loans and advances of Shiral Gat PACC
Society.

3
 ACKNOWLEDGEMENT

I hereby want to thank SHIRAL GAT PRIMARY AGRICULTURE CO-

OPERATIVE CREDIT SOCITY and its members for their help given to me
during my training. I was thrilled to find that people here were very co-
operative and helped me in all ways possible. They were very eager in
solving my queries and were ready to help all the time.

First of all I am very thankful to my parents because they have cooperated

with me in preparing this project and without their support I could not do this
project.

Then I would like to thank Mr. D. S. Mirajkar, Director of our college and I
am heartily thankful to Mr. Laxman Renapure (faculty member) for his
constant Encouragement and assistance in preparing project report.

Moreover I want to take these opportunities to thank Mr. Sanjay S. Khetale

despite being one of the busiest person in the bank. he took out time to
attempt to my questions. So for these, I want to thank him for his co-
operation and knowledge that he has imparted to me.

4
 Table of content
Title Page No.

Declaration 1

Preface 2

Acknowledgement 3

Table of Content 4

Executive Summary 6

1. Introduction 7

a) Introduction to Banking 8

b) Banking In India 9

c) Introduction to co-operative bank 11

d) History of Co-operative Banking 12

e) Role of Cooperative in Indian Economy 13

f) Characteristics of Co-operative banks 14

g) Role of Primary Agricultural Credit Societies In Co-Operative
15
Banking and Agriculture
h) History of Shiral Gat PACS ltd 19

i) Socity Profile 21

Board of Director of the socity 23

Organization Structure of Shiral Gat PACS Ltd 24

Vision and mission of Socity 25

Award and achievement 27

Future plan 27

social contribution 28

5
Mile stone of bank 29

Service Department 30

Finance Department 34

Swot Analysis 35

j) Research Topic 37

Meaning of research 37

Introduction to research topic 38

List of various loan 40

2. Literature review 46

3. Research Methodology 50

a) Research Problem 51

b) Research Objective 51

c) Hypothesis/Hypotheses 52

d) Research Methodology 53

4. Data analysis and Interpretation 54

5. Result 67

6. Conclusion 68

7. Bilbography 69

EXECUTIVE SUMMRY

6
“Study of loan and advances of Shiral Gat PACS”. I have taken this topic
because now- a-days in this fast developing economics era, loan and
advances play a very important role like when a person or Farmer wants to
start a business then he can start his business by taking a loan from bank
and this is affected by the interest charged on loan.

The main purpose of this study is to know that how majority of farmers in
India avail their agricultural or other loans from Primary Agriculture Credit
Societies in enviornment of Co-operative Banking

Whole project consists of Shiral Gat PACS details. History of banking in

India, major players in the banking sector and Regulatory Environment
details under which Shiral Gat PACS is working. This report also covers the
major departments of Shiral Gat PACS viz. Finance Department, Service
Department and Recovery Department.

7
Introduction

8
 a) INTRODUCTION TO BANKING

Banks are among the main participants of the financial system. Banks also

perform certain activities which are ancillary to this business of accepting

deposits and lending. Since Banking involves dealing directly with money,

governments in most countries regulate this sector rather stringently. Banks

provide almost all payment services by conducting checking or current

accounts for customers, paying cheques drawn by customers on the bank,

and collecting cheques deposited to customers' accounts. Banks also enable

customer payments via other payment methods such as telegraphic transfer.

Banks have added new payment channels like Internet banking, Mobile

Banking, ATMs etc.

Banks activities can be classified into 5 categories:-

1) Retail Banking: dealing directly with individuals

2) Business Banking: providing services to mid-size business

3) Corporate Banking: dealing with large business entities

4) Private Banking: providing wealth management services to High Net

worth Individuals

5) Investment Banking: relates to helping customers raise funds in the

Capital Markets and advising on mergers and acquisitions.

6) Co-operative Banking : It was mainly form to help and promote the

Agriculture sector, Weaker sections in India

In addition to this Banks are now moving towards Universal banking which

is a combination of commercial banking, investment banking and various

other activities including insurance.

9
 b) BANKING IN INDIA

Early phase of ancient times

The origin of banking in India can be traced back to almost the Vedic period.

The transformation from pure money lending to proper banking appears to

have taken place before the times of Manu. Manu, a great Hindu jurist, has

devoted a section of his work explaining the deposits and advances and he

even laid down certain rules on rates of interest.

Throughout Mauryan period and later on, desi bankers played some role in

the economy of the country. However, it was during the Mogul period that

indigenous bankers started playing a vital role in lending money and

financing of the foreign trade and commerce.

Second phase from 1786 to 1969

Banking on European lines started in India, when two British managing

agency houses, namely Ferguson and Co. and Alexander and Co. set up the

first joint stock bank in 1786 in the name of General Bank of India. Later on

Bank of Hindustan also came into existence which carried on the business

till 1906.

East India Company established three banks; namely, The Bank of Bengal

in 1809, The Bank of Bombay in 1840, and Bank of Madras in 1843. They

were collectively called Presidency Banks and were well functioning

independent units.

A number of private banks had been established by the businessmen from

mid of the 19th century onwards. In the surcharged atmosphere of Swadeshi

movement, a number of banks with Indian management, namely, Punjab

National Bank Ltd., Bank of India Ltd., Canara Bank Ltd, Indian Bank Ltd.

10
etc. were established.

The Reserve Bank of India was established as the Central bank of the

country in 1935under an act called Reserve bank of India Act. In 1955, the

Imperial Bank of India was nationalized and was given the name "State Bank

of India”. On July 19, 1969, 14 major banks were nationalized.

Third Phase from 1969 to 1991

The three decades after nationalization saw a phenomenal expansion in the

geographical coverage and financial spread of the banking system in the

country.

In 1980, another six banks were nationalized, and thus raising the number of

nationalized banks to 20.In the post-nationalization era, no new private

sector banks were allowed to be set up. However, in 1993, in recognition of

the need

to introduce greater competition which could lead to higher productivity and

efficiency of the banking system, new private sector banks were allowed to

be set up in the Indian banking system.

Forth phase from 1996 till date

New delivery channels like ATM, Mobile banking and Internet banking and

convenience of any branch banking and auto sweep products introduced by

new private and MNC banks. Communication infrastructure improves and

becomes cheap.

11
c) INTRODUCTION TO CO-OPERATIVE BANK

Definition of Cooperation

H.CALVERT define

cooperation –

“As a form of organization, where in persons voluntarily associate together

as human beings, on a basis of equality for the promotion of the economic

interest of themselves.”

7 principles of Cooperative societies

1. Voluntary association or open membership.

2. Democratic control

3. Members economic participation

4. Autonomy and independence

5. Co-operative education, training and information

6. Mutuality or cooperation among members

7. Concern for community

12
 d) HISTORY OF CO-OPERATIVE BANKING
Over the years, the difference between co-operative banks & commercial

banks has blurred as they all have come under a common law. All products

& services are offered by co-operative banks are on the par with commercial

banks, with a few exceptions related to government business. In 1904 the

co- operative movement started in India with a view to provide finance to the

agriculturist at a low rate of interest. The co-operative society has to take the

place of the money lenders & provide cheap loan to the farmers for

productive purposes. Even though many types of co-operative societies

have been started particularly for the artisans & others, the most common

form of such societies deal in rural credits. And today co-operative banks

have started verities of Services with different technologies.

Once Mahatma Gandhi has remarked that “There is sweetness in co-

operation; There is no one who weak or strong among those who co-

operate. Each is equal to other.”

Over a period of time, a strong co-operative network made its way into rural

areas with Gujarat, Maharashtra and Andhra Pradesh leading the way. The

original founders of the co- operative movement were people with integrity,

foresight and vision. However, with the passage of time, there has been

erosion in the quality of leadership in this sector.

13
e) ROLE OF CO-OPERATIVE IN INDIAN ECONOMY

In today’s competition era it is necessary that all work in cooperation. As

rightly said that

“United we stand, Divided we fall”. So cooperative banks become necessary

for the society. Also our nation is the agriculture based where 60% people

live on agriculture and farming. So cooperative banks provide low interest

loan to farmers.

Our govt adopted LPG policy in 1991 so cooperative banks also need to

reform. It has become necessary to make co-operatives more competitive

and market oriented. The old vision of cooperatives as merely government

sponsored institutions or as individual driven organization would have to give

way to a new vision of co-operatives where in the co-operative become

“competitive business units” to play an active and effective role in economic

welfare of its members. This calls forcreation and development of new type

of co-operatives institutions and re-engineering and reinnovation of existing

co- operatives to meet the challenges of new economic scenario. In

liberalized market economy cooperatives provide protection to people and

make possible survival of weakest also.

14
f) CHARACTERISTICS OF CO-OPERATIVE BANK

 The establishments of co-operative banks are mainly to cater to the needs

of the rural areas and small borrowers are concerned more with financing

agricultures.

 The co-operative banks are organized on co-operation basis and are

governed by their members according to co-operative laws.

 Co-operative banks are under control of state government and to lesser

extent RBI certain provision of banking regulation act also applied.

 In co-operative banks borrowers being member have some control over

management and use of funds.

 They have to follow rate for investment laid down by the register of co-
operative societies.

15
g) Role of Primary Agricultural Credit Societies In
Co- Operative Banking and Agriculture

Full form of PACS is Primary Agricultural Credit Societies.PACS are

the ground-level co-operative society that helps on credit to the farmers for

the various agricultural and farming activities by providing agricultural, short-

term, and medium-term purpose loan requirements to its members, and it

majorly focuses on gram panchayath and village level farmers.

Role

It is the basic unit organized at the village’s grass-root level with the

main role of dealing with agricultural borrowers of the village by giving

agricultural, short-term, and medium-term purpose loans to the borrowers

then collecting the repayments against those loans.

They act as a link between the country’s higher financial agencies

who can resolve various issues of the members and the ultimate borrowers.

It is an important role because it is very difficult for the farmers to approach

directly to the higher financial agencies for their problems, and thus, PACS

helps them in that matter.

16
Features

 The Primary Agricultural Credit Societies are the association of

persons, unlike in the case of the Joint Stock Companies, where

there is an association of capital.

 Association of persons in Primary Agricultural Credit Societies

confers an equal level of rights on all ofsocietye members without

considering their holding of share and their social standing.

 Share of the societies is of small value so that poor persons can also

become its members.

Objectives

 The loan should be provided by the PACS only to its member, the

repayment schedule of which can be decided on the basis of the

purpose and tenure for which the members take the loan. Also, the

loan should be given only for short and medium-term purposes.

 The PACS area should be limited only to the village level to which it

belongs and for the benefit of its members.

 It should be of enabling common interest if all the members of society

and society should demand all of its members’ contribution.

 The membership of society should be given only to those located at

the village where the credit society is established. There should

be unlimited liability of all the PACS members.

 For the deposits as well as the loan which are there on its account,

PACS is liable.

17
Organizational Structure

Generally, the organizational Structure of PACS comprises of the following:

 General Body of PACS: General body members are the supreme

authority for any of the society and exercise the control overboard as

well as management.

 Management Committee: They are elected by the general body to

perform the work as prescribed by the society’s rules, acts, and by-

laws.

 Chairman, Vice-Chairman, and Secretary: Among the members,

few people are appointed at the managing position as Chairman,

Vice-Chairman, and Secretary of the society. They work for the

benefit of the members by performing their roles and duties as

assigned to them.

 Office Staff: These are the persons who are responsible for

performing day to day work assigned to them. It includes clerks,

18
 peons, and supportive staff.

Functions of PACS

Functions of PACS are as discussed below:

 The main function of the PACS is to provide short and medium-term

purpose loans to its members.

 Borrowing an adequate amount of funds from central financial

agencies in order to help its members in a timely manner.

 It helpromoteing the economic interest of all of its members, taking

into consideratisociety’sthe principety.

 Maintaining the supply of the hire light machinery for the agricultural

purpose.

 It is to promote savings habits among its members.

 To make the arrangement of supplying of the agricultural inputs is

another function of the PACS. Example of the inputs for agricultural

purpose includes seeds, fertilizers, insecticides, etc. Along with this,

they also supply required domestic products like kerosene, etc.

 It helps its members by providing marketing facilities that could

enhance the sale of their agricultural products in the market at the

proper prices.

19
h) HISTORY of Shiral Gat Primary Agriculture Credit
Socity.
Shiral Gat Primary Agriculture Credit Society ltd. has been a long & eventful

journey from 31st March 1960. From a small nominal rented building in a

Shiral Village to its new hi-tech & fully computerized building. It's working

area consists of seven villages viz. Shiral, Vaiji, Malghar, Pachad, Kondhe,

Khopad and Rehel Bhagadi in Chiplun Tehsil, Ratnagiri District of

Maharashtra

Shiral Gat Primary Agriculture Credit Society ltd. was established on 31 st

March 1960 with share of Rs. 5,000/- and membership of 500 member

person under the leadership of late established by late Madhukar Shivram

Vaje with Shri. Tukaram Gangaram Bamane. This socity was named on its

main village Shiral. The socity has made tremendous and real progress with

very less resources under the leadership of chairman Shri. Tukaram

Bamane.

Socity is successfully working for 61 years. This socity has started with the

working capital of Rs.5,000/- which kept on incasing till today and crossed

the limit of Rs.34,42,000/-. The socity sees a vision of current and future

trends, socity to start the deposit collection from 2007 onwards.

20
During past years socity has played leading role for the development of

agriculture and economy of its working area. Socity has developed in

manifolds with time membership of bank is now 1305, which provides an

example of how mass movement can be turned into the instrument for social

up-linemen. Today socity has more than 40 deposit accounts with deposits

base of 37.83 Lacs. no. of borrows 670, establishment/individuals enjoys the

facility of rs.2.40 Crs and advance socity has 69.66 Lacs of reserve fund.

Now socity has share capital of rs. 34,42,900/- .

Socity has establishes “sabhasad kalyannidhi fund” for T.B, cancer, Eye and

diabetes treatment for the member of socity. Socity has denoted to

educational institutions and hospitals. Socity has also denoted in Natural

calamities such as earthquake and flood. Socity also promotes to the

sports activities.

Being in the service sector with a vision of current and future treats, Socity

started computerization and modernizations way back in 2011 all the

branches as computerized. And the has paid regularly the dividend to share

holders on an average of 14% p.a.

21
 i) SOCIETY PROFILE

Name : Shiral Gat Vividh Karykari Sahakri Sanstha Ltd.

Address : At Post Shiral, Tal. CHiplun, Dist. Ratnagiri, Maharashtra

Year of establishment :1960

Registration no. : 28813

Founder : Lt. Shri. Madhukar Shivram Vaje, Shri. Tukaram G.

Bamane

Type of bank : Primary Agriculture Credit Socity

Branches :5

Initial member : 500

No. of Customers : 1305

share capital : 34,42,900/-

No. of Employee :2

Chairman : Shri Tukaram Gangaram Bamane

Secretary : Shri Sanjay Bhagvan Khetale

Working time : 10am to 5pm

Working day : Monday to Friday Saturday half day

Week off : Sunday & public holiday

22
 1) BOARD OF DIRECTOR

Sr. No. Name Designation

1 Shri. Tukaram Gangaram Bamane Chairman

2 Shri. Dilip Shankar Desai Vice-Chairman

3 Shri. Anant Pandurang Thasale Director

4 Shri. Vijay Gopal Vaje Director

5 Shri. Anil Maruti Chile Director

6 Shri.Dattatray Vishnu Karanjkar Director

7 Shri. Ravindra Kashiram Mohite Director

8 Shri. Dilip Mahadev Kule Director

9 Shri. Vinayak Baban Bhuvad Director

10 Shri. Rajendra Raghunath Pawar Director

11 Shri. Vijaya Anant More Director

12 Shri.Shraddha Sadashiv Ghole Director

13 Shri. Atmaram Ganu Khetale Director

14 Shri. Ramesh Ramchandra Thasale Director

15 Shri. Sanjay Bhagwan Khetale Director

16 Shri. Darshan Krushna Nachare Director

23
 2) ORGANIZATION STRUCTURE

3) VISION AND MISSION OF SOCITY

24
P
nVce-Stoyff
Chairm
vision of bank

“Development Of Cociety With Development Of Farmer”

The bank is committed to maintain the highest level of ethical

standards, professional integrity and regulatory compliance. Our bank

philosophy is based on four core values such as:

1. Operational excellence,

2. Customer focus,

3. Service leadership,

4. Welfare of Farmers,

The objectives of Shiral Gat PACS ltd. Is to provide its target

market Farmer members a full range of financial products and banking

services, giving the members a one-step window for all his/her requirement.

25
→Mission of Socity

“We are always with and for you”

The above slogan has been accepted and well performed by

the bank. Bank always tries to give support to its members. The regular

payment of dividend over such 61 year on an average of 14% p.a. is a good

sing of the implementation of the slogan “We always with you and for you”

Bank also provides loan facilities to its members for short term and medium

term financial requirements at reasonable rates.

The bank is going to start new branch in near future for easy

accessibility.

The bank provides low intrest agricultural loans

Adopting the latest technology for calculating and communication.

The mission of Shiral Gat PACS ltd is to maintain 0.00NPA society in

future with performing above slogan.

26
 4) AWARDS AND ACHIEVEMENT

 The bank got an award for 100% Loan recovery in Past 3 years.

 Socity became came 1st in Chiplun in Computerization in its Category societies.

 The socity is awarded “A” class for auditing by the government of

Maharashtra since its inspection since last 11 years.
 Socity helps farmers by purchasing their paddy production at fair market
rate.

5) FUTURE PLAN

 The Society is planning to establish new warehouse at for small farmers

in rural areas.

 bank is going to adopt new technologies for accounting and other activities.

 soon the bank is going to provide KCC Card facility to its customer.

27
 6) SOCIAL CONTRIBUTION

→Donation to education activities

→Reserved sheets for patients of T.B, Cancer, and Diabetes in

various hospitals.

→Promotion of educational activities.

→Loan to education unemployed youth

→Help to floo, rainfall victims by providing donation and other requirement.

Keeping in sight, social obligation at large and interest

of its share holders in particular, the societies aim is to provide a better

facility to the common people of the society at an e-commercial rate. So as

to be a preferred providers of the banking services in the area where socity

operates and achieve a healthy growth in profit, which will be partly used for

the benefit of society and for up-linemen of masses and general growth of

co- coordinative movement.

28
 7) MILE STONE OF Shiral Gat PACS ltd.

31 March 1960 - socity got registration no.28813

5 May 1960 - Socity was established

25 Oct, 1990 - Acquired Audit Class A

November 2007 - Acquired Own Land and Constructed own

Building

11 December 2008 - Started Rice Purchase Center For Farmers

15 May 2011 - Started Computerization

March 2012 - Maintaing Audit class A and giving 14% Dividend

to members since 10 consecutive years.

29
 8) SERVICE DEPARTMENT

INTRODUCTION

Shiral Gat PACS ltd is purely a service sector. So here instead of

production department there is only “Service Department”. The work of a
Service Department is to produce better services to the customers, which
satisfy the human desire in a best manner.

In banking, service department is concern with that process which converts

the inputs in to outputs. Money is used as a raw material other resources,
information technology, employees are used as an input. Then after there is
need to perform all the service functions (Process). The output is satisfactory
services, employees benefit, security etc.

1. Current
2. Savings
3. Special savings
4. Loan Compulsory
5. Nominal Compulsory
6. Pigmy
7. Fixed
8. Recurring

30
Current Account

 It is basically used for business purposes. It doesn’t give any interest

on deposits.
 It can be held in the name of firms (include partnership firm, pvt. Ltd.
Co., ltd. Co., trust, association), person.
 Its prime purpose is to serve the customers for their daily business
transactions.
 A customer having current account can withdraw money in the form
of cash or cheque in an infinite number of times and so is
unrestricted.

Savings Account

 These deposits too are used for transactions purpose. For example
if you want to pay electricity bill, telephone bill etc. you can give a
cheque from your savings a/c rather than giving hard cash. Other
things such as paying fees, paying dues etc. can be done from this
a/c.

 This deposit is usually held in the name of individual as it is used for

personal purposes and gives interest at the rate of 3.5% per
annum.

 Note that trust and association can hold current as well as savings
account.

 A customer having savings account can withdraw money in the

form of cash or cheque in a limit number of times which is
restricted as 5 times per month at Shiral Gat PACS ltd. Note that
this withdrawing power can be different for different banks according
to the rules and regulations of that particular bank

31
Special savings
This concept and deposit was prevalent earlier, but now it is not in use.

 In this deposit a customer can withdraw the money only3 times (less
than savings i.e. 5times). However, this deposit gives an interest at
the rate which is higher than the savings account. Earlier, when it
was in use these deposits gave a return of 0.5%higher than that of
savings deposits.

Loan Compulsory

 These deposits are made compulsory for a customer who wants to

take a loan from Shiral Gat PACS ltd. For this customer it is required
to keep 2.5% of the loan amount in these deposits. It gives the
same interest rate as saving deposits.

Nominal Compulsory

 It is similar to loan compulsory deposits in most ways. However, the

difference is that these deposits are held by customers having less
loan amount. These deposits are there to help small loan takers, so
that these people don’t need to keep 2.5% of their loan amount as
deposits. It gives the same interest rate as saving deposits.

Pigmy
 Pigmy has different names at different banks. Some banks give ‘daily
saving’ name to this service.

 Very few banks offer this service. Here, the customer is required to
deposit the installment on daily basis. The interest rate offered is
same as Fixed Deposits. Fixed Deposits (FD)

32
  It is a deposit which offers the highest interest rate than any other
above mention deposits. So it is mainly used for long-term saving
purposes. For example: a couple having a child of the age of 10
keeps an FD account so as to use the matured amount for the child’s
college fees in future.

 These deposits and its interest rates are explained in detail in the
future sections that are to come.

Recurring
 It is a type of FD with deposits kept for 12 or more months. Here the
deposits are given at installment by the customer. The interest rate
for these deposits is same as FD.

Recurring Example

Deposit date 05-05-2021

Matured date 05-05-2022
Monthly installment 500
Rate of interest 8%
Matured amount 6265

33
 9) F i n a n c e D e p a r t ment

INTRODUCTION

The term Business Finance mainly involves, rising of funds and their
effective utilization keeping in view the overall objective of the firm. The
management makes use of various financial techniques for administrating
the financial affairs of the firm in most efficient and effective way. Financial
therefore means the entire gamut of managerial effort devoted to the
management of finance-both its sources and - of the enterprise.

Its detailed analysis includes financial analysis, risk analysis, capital

structure, measurement of cost of capital, merger, acquisition, working
capital financing, and management of cash and market securities.

In Shiral Gat PACS ltd, separate finance department is there under which
various financial activities are carried out. The bifuregation of activities that
are carried in finance department of Shiral Gat PACS ltd are as follow:

- Preparation of annual account

- Reconciliation of account with head office
- Dealing with other banks.
- Licensing with Co-Operation Department and DCC Bank
- Auditing
- To decide accounting policy
- Management information system
- Periodical returns of DCCB
- To decide accounting policy

34
10) Swot Analysis

SWOT analysis means overall evaluation of a firm’s strengths, weakness,

opportunities and threats. Swot analysis consists of making analysis of the
external environment and internal environment.

External environment analysis

External environment consists of out sides of the firm such as Other credit
societies, bank competitors etc. such environment analysis is necessary
because it affects the firm or an organization.

Internal environment analysis

Internal environment consists of inner sides of the firm such as personnel,

finance, etc. such environmental analysis is necessary because it affects the
firm or an organization.

STRENGTH

-this society is very reputed in local area.

-professional management & co-operate term spirit
-strong brand equity in local (working area) area.
-fully computerized
-profitability & sound liquidity.
.-No mistake in regular transactions can be found because of small network.

35
WEAKNESS

 Society is not performing marketing activity because lack of marketing

expertise
 lack of modern management concepts and sometimes
communication gap can be found which indicates lack of
professionalism.
 Socity is not providing ATM facility in the recent developed area
and bank is not fully developed in modern area.
 lower volume of advances due to higher rate of interest ma
effect the expansion of the organization.

OPPORTUNITES:

 Socity can open branches at state level in near future.

 Socity can introduce new services like fd loan, KCC, student
account with minimum Rs.100 etc.
 Socity can perform marketing activities by media.

THREATS:

 Changes in government policies and in rules and regulation

regarding bank can be disturbed in regular service of bank.
 Crises in the co-operative banking sector can disturb the bank progress.

36
 j) Resear ch To p i c

1) Meaning of Research

In essence term, Research refers to a search for knowledge. One can also
define Research as a scientific and systematic search for pertinent
information on a specific topic. In fact, Research is art of scientific
investigation and careful investigation especially through search for new
fact in any branch of knowledge. Research is an academic activity because
it comprises defining and redefining problems, formulating hypothesis,
collecting, evaluating data, Making deductions and conclusion. Thus,
Research is an original contribution to existing stock of knowledge making
for its advancement.

The role of research in several fields of applied economy has greatly

increased in modern times. In corporate world, research is conducted to
solve various operational and planning problems of business and industry.
Research helps people in business and industry that are responsible for
taking business decision. In business, there are different types of research
conducted for different object such as operations research, market research,
motivational research. Operational Research refers to solve business
problem of cost minimization or profit maximization or what can be as
optimization problem. On the other side, Market Research is the
investigation of the structure & development of a market for the purpose of
formulating efficient policies for purchasing and sales.

37
 2) Introduction of Research topic

Loan and advances

Any amount borrowed or lent is called loan. If money is borrowed it is debt

of business ands if loan is given, it is receivable for the business.

Loan is a method of lending under which bank gives credit to a borrower for
a fixed period and for a specific purpose. Loan are promises for future
payment, they have to be repaid in periods beyond a year and are, therefore
long term liabilities.

In other words "when a banker makes an advance in a lump sum which can
not be paid wholly or partly and which the customer has permission to
withdraw subsequently, it is called a loan."

Profit is the pivot on which the entire business activity rotates. Banking is
essentially a business dealing with money and credit. Like every other
business activity. Banks are profit oriented. A bank invests its funds in many
ways to earn income. The bulk of its income is derived from loans and
advances.

Banks make loans and advances to traders, businessman and industrialist

against the security of some assets or on the basis of the personal security
of the borrower. In either case, the banks run the risk of default in
repayment. Therefore, banks have to follow a cautions policy and sound
lending principles in the matter of lending. Banks in India have to consider
the national interest along with their own interest while determining the
lending policy.

38
Many a time a borrower needs funds for fixed assets or non-respective type
of activities and thus seeks money from the bank that is withdrawn in one
lump sum. The loan amount is normally repaid in installments. Loan may be
short- term, medium-term or long-term.

39
3) List of various Loan of Shiral Gat PACS ltd

1. Agricultural Loans
2. Hypothecation-cash credit

3. Overdraft
4. Pledge
5. Consumption
6. Staff Consumption
7. Commercial loan
8. Vehicle loan
9. Building loan
10. Consumable loan
11. Machinery loan
12. Gold loan

40
1. Agricultural Loans
Agricultural loans consists of following types :-

I. Short Term Agricultural Loan (Crop Loan) :-

Short term agriculture loan is generally refered as crop loan. Which is
given for 1 year of period. These loans consists crop loans for Paddy,
Mango, Cashew, Coconut etc. Farmer gets loan for growing crop and has
to repayment after selling the crop.

Crop Loan Interest Rate

Paddy 4% Annually
Mango / Cashew / Coconut etc Up to 3,00,000/- 6% Annually
3,00,000/- to 10,00,000/- 10.50%
Government also provides intrest subsidy for these crop loans up to 6%.

II. Medium Term Agriculture Loan :-

 Medium Term Agri. loan is given for Agriculture based allied
activities like Dairy farms, Poutry Farms, Sheep / Goat Farms,
Piggery etc.
 For puchase of farm machinaries like tractor, power tillers,
Irrigation systems, dug wells, bore wells etc.

Medium Term Agri. loan Interest Rate

Interest Loan 12.5%

III. Long Term Agri. loan :-

Long term agriculture loan is provided for large scale and time consuming
activities. Such as warehouse construction, agriculture based factories etc.

Long Term Agri. loan Interest Rate

Interest Loan 12.5%

2. Hypothecation-cash credit:
This loan is basically given to business people on their trading stock. JCC
gives loan up to 70% of the value of the stock. If here the customer provides
additional property for mortgaging, then extra 50% of the value of property
can be added to the loan amount.

For Farmers 10%

For others 12%

41
3. Overdraft (OD):

For the businesses like brokerage firms and trading firms, where there is no
record of the stock, but has to keep large amount of funds to felicitate trade,
hypothecation and industrial loans cannot be given. So for the liberation of
these firms, OD loans can be given. Here these firms are given loans on the
basis of their record of balance sheet and PNL (Profit and Loss) account.
These loans are of 2 type’s viz. FOD and SOD. FOD is the loan given
against fixed deposit whereas SOD means Secured OD and is given on the

mortgaging of the property of the business land or property. JCC gives

loan up to 85% of FD value.

Overdraft
Unsecured 12%
Secured for others 2% more than FD interest Rate

4. Pledge:

Here stock is under the control of bank. For example the key of the
warehouse in which the goods are kept is with the bank. Example of a fridge
stock. Suppose a warehouse of fridge is under the control of bank. Now,
bank will give the keys to the stockholder only if he pays a part of loan which
he has taken on the stock of fridge. This loan is not prevalent now at Shiral
Gat PACS ltd.

5. Consumption:

This is called self-mortgaging loan where the people usually comes for
taking loans on their personal income. It is the only type of loan where the
purpose of the loan is not mentioned. At Shiral Gat PACS ltd, this loan has
one of the larger shares among all types of loans. Majority of the loan takers
of these loans are the farmers

6. Staff Consumption:
42
This is similar to the consumption loan except that it is provide to staff
people at a slightly lesser rate.

7. Commercial loan:

This loan is provided to the small vendors, who are in need of money for
running their business. This is usually given to the people running small
provision stores, pan shops and others.

8. Vehicle loan:

As the name implies the bank gives loan on the purchase of vehicle. Here a
customer may want an old vehicle or a new vehicle. In the former case the
valuation of the vehicle is must. This valuation can be done by the bank or
the customer himself. In the later case of new vehicle the bill quotation is
used for considering vehicle’s value and 75% of the value can be given as
loan. However, in case of old vehicle 50% of the value of vehicle is given as
loan.

Vehicle loan
For Personal Use 12%
For Commercial Vehicle 14%

43
9. House Reparing / Building loan:

This loan is given on the purchase or construction of building for residential

or business purposes. This type of loan is also one of the major contributors
to the credit of the bank. These loans are basically taken by the public for
housing and are also taken by the builders for construction purpose. The
loan to the builders is given on the amount of the work done. For example
when the construction is about to start the first installment of loan is
sanctioned.

10. Consumable loan:

This loan is given for consumable such as fridge, TV, AC, etc. This is a type of
personal loan wherein it is necessary to define the purpose of the loan.

Consumption loan
Up to 75,00,000 12%

11. Machinery loan:

This is a loan given to industries on the purchase of the machinery. Here in,
if it is a new machinery then bill quotation is used as valuation. On the other
hand if it is old machinery then a value of bank is a asked to give valuation
report, based on which loan is sanctioned.

Machinery loan
Up to 75,00,000 15%
More than 75,00,000 14%

12. Gold loan:

Here the loan is given on the purchase of gold. This loan is a rarity now.

Purpose -personal use

44
Limit -Rs.50, 000(in Working Area)

Period -26 months

Rate of interest -14%

Repayable -equated monthly installment Rs.50 per thousand

Security -gold-silver ornaments or items on re-pledge

Document -loan application form, DP note

Paper -In case of service person pay sleep, in case of

business last yearly business report.

45
 4.) LITERATURE REVIEW

GUPTA AND AMBEGEOKAR:

Observed that the use of funds from banks by the private corporate sector
had exceeded its inventory formation. Gupta, has argued that a small
portion of such finance should have gone to meet fixed investment. Further,
he found the growth rate of physical assets to be more directly and closely
related to security issues than bank credit. Hence, he argued that the fast
growing firms relied heavily on security issues than the use of bank credit.
Arnbegeokar found that the rate of rise in bank credit exceeded that of
inventory, sales and output. Further he observed that its dependence on
banks for working capital had increased, accompanied by a decline in
reliance on other financial institutions.

SHETTY:

Assessed the dimensional changes in credit deployment during the first five
years of nationalization in relation to changes in output and prices. The
rationale for his analysis was the fact that, in any accepted model of demand
for money, one common variable is the gross national product or some other
variant of it in real terms. Consequently, he hypothesized that credit for any
sector or industry over a period has to have some relationship with its
performance in real terms, particularly output. He observed a declining
trend in the credit extended by banks to industries since nationalization,
though it was higher than other sectors. On finding that the share of
manufacturing sector in bank credit is higher than its share in Net Domestic
Product (NDP) he concludes that increase in bank credit has occurred far in
excess of increase in output during the years 1968/69 to 1973/74.

46
REVISED BY SHETTY:

Observed that the share of medium and large industry in total bank credit
had declined due to priority sector lending. Another observation in line with
his earlier finding was that growth in bank credit had always been
disproportionate to growth of their physical output, especially in industries
like cotton textiles. His observation particularly for the years 1975-76 and
1976-77 revealed:

(a) Increase in average bank credit had been higher than the growth of NDP
originating in registered manufacturing sector even at current prices

(b) An appreciable increase in the rate of short-term bank credit to inventories

(c) Relatively higher reliance on trade credit.

In line with these observations, he suggested policies to

scrutinize credit claims vigorously and relate credit to the genuine production
requirements so that funds are not tied up with these large borrowers.

K.S.R.ROA:

Carried out an econometric exercise on the determinants of demand for

bank credit of some selected industries for the period between 1970-71 and
1984-
85. He observed that output of these industries was the most important
factor in determining its demand for bank credit whereas, interest rate of
banks and relative rate of interest of other sources of borrowing played only
a secondary role. Price of output was also found to have affected the
demand for credit significantly. The relative interest rate variable was
significant with respect to industries like textiles, engineering and total
manufacturing, while it was not significant for industries like sugar and other
food products and chemicals.

47
DIVATIA AND SHANKAR:

In their paper discussed the role of internal and external sources of funds
and their components in financing capital formation of the private corporate
sector. The study was based on the RBI company finance studies relating to
medium and large public and private limited companies and Covered the
period 1961-
76. They also discussed the trends and patterns of financing for four
individual industries, viz, cotton textiles, jute, sugar and cement.

S. ADVE.:

Had some interesting findings in his article "Financial Practices in Indian

Corporate Sector," based on the RBI company finance data. He underlined
the rising dependence on borrowed capital in relation to the total capital
employed in the Indian corporate sector. Trade credit was pointed out to be
important sources of capital when the bank credit was squeezed. Making an
industry-wise analysis, the author came to the conclusion that the industries
with large profit margins and those with large depreciation and development
rebate reserves had a relatively lower order of overall indebtedness and
many of them also had a lower order of bank borrowings in relation to overall
indebtedness. Industries with high profit margin such as silk and rayon
textiles, aluminum, basic industrial chemicals and medicine and
pharmaceutical preparations had lower proportion of borrowed funds as
compared to the average of the medium and large public Ltd. companies.

48
L.S.GUPTA:

The extensive study viewed that the growth of institutional finance emerged
in lndia due to structural change for industrial financing system with wide
change of socio-political situations in lndia. He attempted to measure overall
impact of financial institutions on capital formation in the organized private
sector as also the allocate efficiency of financial system. He observed that
during the first plan financial assistance rendered by special institutions
represented only
4.1 per cent of gross fixed investment in private industry, which rose to 7.9
per cent in the second plan and further to 18.1% in the third plan period. He
also found that commercial banks remained the most important single
agency for financing the private corporate industry and LIC was the single
largest purchaser of industrial securities and the underwriter of new issues of
large and established companies.

M.S.JOSHI:

The role of financial intermediaries in providing finance to large-scale

industries in the private sector. After analyzing the contribution of each
important intermediary towards industrial development in India, he
estimated that these intermediaries have participated with 17% of
investment in various Industries against 39% in share capital of public Ltd.
companies.

49
3) Research

Methodology

50
 3.1) RESEARCH PROBLEM

Research Problem
The research is that the income level affected to borrower to take
a loan.

3.2) RESEARCH OBJECTIVE

1. To be acquire practical knowledge about loans and advances from

Shiral Gat PASC Ltd.

2. To be acquire in-depth knowledge about requirement & interest of

loans and loans of different customer group.

3. To be investigate perspective and preference of individual (customer)

of Shiral Gat PASC Ltd.
4. To be aware of different type of loans provided by the bank.

5. To be aware about the customer satisfaction for the particular service

taken from the Shiral Gat PASC Ltd..

6. To be study about the respondent and their varying interest.

51
 3.4) HYPOTHESIS

The hypotheses of the study are as follow

H0: amount of loan is independent of income of

customer HA: amount of loan is dependent of income
of customer

1. Ho: µ=µ1
2. Ha: μ≠μ
3. Ha: µ<µ
4. Ha: µ>µ

3.5) RESEARCH METHODOLOGY

Primary data:

1. Primary data are those which are collected for the first time. I have taken
some information about Shiral Gat PASC Ltd. by discussing with Loans and
Advances department of the bank. I have done data analysis through
filling questionnaire from customer and employee.

Secondary data:

Secondary data are those which are already been collected for some other
purposes. I have taken the secondary data from internet and from a book
"Guidance note on audit of books.” I have also done data analysis on the
basis of this secondary data. I have compared the interest rates of various
banks with Shiral Gat PASC Ltd to fulfill my objectives.

52
 3.6) SAMPLING PLAN

In practical life, it is not possible to enumerate, investigate and estimate all

items in any field inquiry. Therefore when the field of inquiry is large, a
complete enumeration of Universe (population) becomes difficult and
complicated. At that time, researcher should select ‘sample’ out of total
population which represent the most characteristic of population.

Consequently, Researcher must prepare a sample plan for selecting an

opposite sample. In this research, sample was selected as 100 customers of
Shiral Gat PASC Ltd.

 Population Size-

In these the customer as well as employee of Shiral Gat PASC Ltd is

counted which is part of these.

 Sample Size

This research is conducted by taking preference of 100 customers as well

as of Shiral Gat PASC Ltd. It is convenience sampling because this
Questionnaires was distributed randomly to all the customers.

3.7) SAMPLING METHOD:

I have to use convenience sampling method to analysis of market research

and percentage of investment is dependent of loan taken or independent of
income level.

 Sampling

Procedure Non-

probability

53
 4) Data analysis
and interpretation

54
 a) Occupation of Loan Borrower
 . What is your the occupation?
□ Business man □ Employee
□ Profession □ Retired person
Type of occupation No. of customer
Agri. Businessman 27
Farmers 42
Profession 19
Retired person 12
Total 100

Occupation Of Loan Borrower

45

40

35

30
No. of Customer

25

20

15

10

0
Agri. Businessman
Professio Retired
Farmers n person
Type Of
Occupation

In this question, we know that, in different class of occupation who take more
loan in these group. in above chart we can see that the Farmers are 42%
means the employees are more take a loan as compare to other group of
like Agri. businessmen ,Profession and Retied Person are as 27%, 19% and
12%.

55
 b) Age group of loan borrower

 What is your age?

□ 18 to 35 year □ 35 to 60 year □ 60 to 90 year

Age group of customer No. of customer

18-35 year 30
35-60 year 48
60-90 year 22
Total 100

Age Group Of Loan Borrower

60

50

40
No. of Customer

30

20

10

0
18-35
year 35-60 60-90 year
year
Year

In this research on loan and advances, classified the different age group and
knowing that who take a more loan. In above chart we can see that the 48%
people are those who age is 35 to 60. 30% people are those who age is 18
to 35 year and 22% are those who age group is 60 to 90 years.

56
 c) Income Level of Loan Borrower
 . What is your the income level per annum?
□ more than 10 laces. □ Between 5 & 10 laces.

□ Between 2 & 5 laces. □ Up to 2 laces.

Income level of customer No. of customer

Up to 2 laces. 44
Between 2 & 5 laces. 23
Between 5 & 10 laces. 21
More than 10 laces. 12
Total 100

Income Level of Loan Borrower

50
45
40
35
Number of People

30
25
20
15
10
5
0
Up to 2 Lacs 2 to 5 lacs 5 to 10 Lacs Above 10 Lacs
Income Level Of Borrower

In this question, the incomes of borrower are identified. In these, the

persons whose incomes are between 2 to 5 laces are 48% means its take
more loans then after whose income level is up to 2 laces are 23%,the
income of between 5 to 10 laces are 21% and who income is more than
10 laces is 12%.

57
 d) Behavior of Staff Member
 What is the behavior of staff members?
□ Excellence □ Good
□ Adequate □ Average
□ Unsatisfactory

Behavior No. of customer

Excellence 23
Good 36
Adequate 17
Average 14
Unsatisfactory 10
Total 100

Behavior Of Staff Member

40

35

30

25
No. of Customer

20

15

10

0
Excellen
ce Good Adequat Average Unsatisfactory
e
Behavi
or

To use these type of question in research, to know the behavior of staff

member. In these research 36% people are say that the behavior of staff is
good. 23% people are saying that the behaviors of staff are Excellent.14%
people are saying that the behaviors of staff are Adequate. In these ways the
14% and 10% are those who said that the behaviors of staff are Average and
Unsatisfactory.

58
 e) Time Period of Loan
Time period of loan No. of customer
1 to 3 year 74
3 to 8 year 26
8 to 15 year 0
15 to 25 year 0
Total 100

Time Period of Loan

80
70

60
Number of People

50

40

30

20
10

0
1 to 3 year 3 to 8 year 8 to 15 year 15 to 25 year
Income Level Of Borrower

The customer whose take a loan in the bank is mostly time period 3 to 8
years. In the above chart, clarified that the person whose take a loan for 3 to
8 year is 100%. And then after the person who takes a loan of 8 to 15 year
are 0%. The people who take a loan of 15 to 25 years are 0% and the last
the person who take a loan of 1 to 3 years are 74%.

59
 f) Another Loan from Rival
Bank
 Which is another bank from you borrowed other loans?
□ UBI □ ICICI □ HDFC
□ AXIS □ BOB □ OTHER
□ NO ANOTHER LOAN

Bank name No. of customer

UBI 12
ICICI 8
HDFC 14
AXIS 6
DCC Bank 15
ANOTHER LOAN 7
NO ANOTHER LOAN 38
Total 100

Another Loan From Rival

UBI, 12

ICICI, 8

NO ANOTHER LOAN, 38

HDFC, 14

AXIS, 6

ANOTHER LOAN, 7

DCC Bank, 15

In these chart we seen that the 38% are those not take a loan from another
bank then after 15% are those whose take a loan in DCC Bank. in theses
way the borrower are also take a loan to different bank. In these 7% are
those who take a loan from other bank.

60
 g) Qualification of Customer
 What is your education qualification?
□ Up to HSC □ Up to Graduation
□ Up to Post Graduation □ More than post graduation

Qualification No. of customer

Up to HSC 72
Up to Graduation 21
Up to Post Graduation 7
More than post graduation 0
Total 100

Educational Qualification of Customers

80
70
60
50
40
30
Number of People

20
10
0
C n n n
HS atio atio atio
to u u u
Up ad ad ad
Gr tG
r gr
to s ost
Up Po p
to an
Up e th
or
M

Educational Level Of Borrower

These chart is defined the qualification of customer. In these chart, customer

who education level is up to HSC are 71%, education level is graduation are
21% the education level is up to post graduation 7% and other 0% are those
who education level are more than post graducation

61
 h) Maximum Extent to Take
Loan
 What is your maximum extent to take loans?
□ Less than 100000 □ between 100000 & 500000
□ Between 500000 & 1000000 □ More than 1000000

Extent Level No. of Customer

Less Than 100000 78
Between 100000 to 500000 18
Between 500000 & 1000000 4
More than 1000000 0
Total 100

Extent of Loan
90
80
70
60
Number of People

50
40
30
20
10
0
Less Than 100000 Between 100000 to Between 500000 & More than
500000 1000000 1000000

Extent Level Of Borrower

In these chart, the amount of loan is given. In these, the loan amount of
Rs.1,00,000 to 5,00,000 is more means the 78% customer are those whose
take a loan of amount 1 to s laces. Then after 18% customer are those
whose take a loan of amount of Rs. 1,00,000 to 5,00,000.then 4% are take a
loan of more than 10,00,000. then 0% are those whose take a loan of less
than Rs.1,00,000.

62
 i) HYPOTHESIS TESTING

Step-1 hypothesis

H0: extent amount to take loan is independent of

income HA: extent amount to take loan is dependent of
income

Step-2: Calculated value chi- square test

Data collected through questionnaire is as below

Level of income
Extent amount to Up to 2 Between Between More Total
take loan laces. 2 & 5 5 & 10 than 10
laces. laces. laces.
Less than 100000 44 3 1 0 12
between 100000 & 10 16 4 1 31
500000
Between 500000 & 5 15 13 5 38
1000000
More than 1000000 0 10 3 6 19
Total 23 44 21 12 100

63
 Expected Frequency (Row total*column total)/n
Extent amount to Up to 2 Between Between More
take loan laces. 2 & 5 5 & 10 than 10
laces. laces. laces.
Less than 100000 2.76 5.28 2.52 1.44
between 100000 & 7.13 13.64 6.51 3.72
500000
Between 500000 & 8.74 16.72 7.98 4.56
1000000
More than 1000000 4.37 8.36 3.99 2.28

Chi-square calculation

No. Observed Expected Fo Fe Fo-Fe (Fo-Fe)2 fo-fe2

Frequency Frequency /fe
1 8 2.76 8 2.76 5.24 27.46 9.95
2 10 7.13 10 7.13 2.87 8.24 1.16
3 5 8.74 5 8.74 -3.74 13.99 1.60
4 0 4.37 0 4.37 -4.37 19.10 4.37
5 3 5.28 3 5.28 -2.28 5.20 0.98
6 16 13.64 16 13.64 -2.36 5.57 0.41
7 15 16.72 15 16.72 -1.72 2.96 0.18
8 10 8.36 10 8.36 1.64 2.69 0.32
9 1 2.52 1 2.52 -1.52 2.31 0.92
10 4 6.51 4 6.51 -2.51 6.30 0.97
11 13 7.98 13 7.98 5.02 25.20 3.16
12 3 3.99 3 3.99 -0.99 0.98 0.25
13 0 1.44 0 1.44 -1.44 2.07 1.44
14 1 3.72 1 3.72 -2.72 7.40 1.99
15 5 4.56 5 4.56 .0.44 0.19 0.04
16 6 2.28 6 2.28 3.72 13.84 6.07
x2c 33.81

64
Step-3: Degree of freedom

Level of significance 5%

Degree Of Freedom is (n) & 5% level of significance

(16) & 0.05 level of significance

Step-4: Table value

Table value at 16 D.O.F and 0.05 level of significance is 0.04 (lower

bound) and 9.95 (upper bound)

Step-5: conclusion

Xcal > Xtab

(33.81) >
(9.95)

H0 is rejected.

Thus extent amount to take loan is dependent of income level of customers.

65
 4.10) SUGGESTION

► The bank can introduce advance technology for banking and should give
attention to Manpower time to time.

► The bank can promote confidence and commitment among the staff
members, to address the expectations of the customers efficiently and
handle technology banking with simplicity.

► The bank can take steps to forecast the changing financial need of
customer of different type of group and banking accordingly.

► The bank can identify the reason of few unsatisfied group of customer and
should take steps to eliminate their problems and grievances.

► The bank can put together all it hard work to bring more responsiveness
and awareness to customers.

66
 5) Result

 I found that customer is more preferring or favoring personal

loan because

 it is easily available.

 30% customers prefer education scheme.

 customers are satisfied with services & other banking

facility provided so they are ready to deal but then also
the bank is working in very sound condition in every
situation.

 70% of customers belongs to services & agriculture in this

area farming is the main occupation as well as young
people are also going for small wage jobs in the urban
area.

 the customer ratio of urban & rural area are 2:3 means 40%
customers are

 from urban & 60% customers are from rural area.

67
 6) CONCLUSION

After having all the required information for preparing my

report, I have tried to analyze each and every function of the Shiral Gat
PACS Ltd. During my report all the staff member of the Shiral Gat PACS Ltd
had well co-operate me. And also I have found that the there is a very good
level of commitment in all the staff members. During my report I have try to
cover each functional area related to the bank and specially loan
department.

After having clear idea about everything In the bank, I can

conclude that the Shiral Gat PACS Ltd. is one of the leading firm in the co-
operative and with advanced technologies and educated staff to try to
positioning in the banking market. But than also due to such weaknesses of
co-operative sector Shiral Gat PACS Ltd.is also suffering from such limits.

So, at last we can conclude that the Shiral Gat PACS Ltd. is
being leader in the market & bank is getting great goodwill in the market and
also great goodwill of the other director helps to the bank in creating good
image in the field of the co-operative societies

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 7) BIBILIOGRAPHY

For preparing this project report, I have taken guidance

from various sources which are as follows:

1. BOOKS &JOURNALS:

 PADMANATHA SURESH & JUSTIN PAUL, “MANAGEMENT OF BANKING

AND FINANCIAL SERVICES”, PEARSON EDUCATION PUBLISHING
PVT, DELHI, THIRDEDITION, 2010.

 VASANT DESAI,”THE INDIAN FINANCIAL SYSTEM AND DEVELOPMENT”,

 HIMALAYA PUBLISHING HOUSE, MUMBAI, SECOND REVISED
EDITION, 2010

 C.R.KOTHARI,”RESEARCH METHODOLOGY”, NEW DELHI, NEW AGE

 INTERNATIONAL LIMITED, SEVANTH EDITION 2010

 BROCHURES OF Shiral Gat Primary Agriculture Credit Socity Ltd., Shiral

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Thank You...!

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