Primary Co-operative Agricultural and Rural Development Bank Ltd.

SL NO. CHAPTER PAGE

NUMBER

1 INTRODUCTION ABOUT THE 1-14

ORAGANISATION AND INDUSTRY PROFILE

2 ORGANIZATION PROFILE 15-21

3 MCKINSY’S7S FRAMEWORK PORTER’S 22-28

FIVE FORCE MODEL

4 SWOT ANALYSIS 29-31

5 ANALYSIS OF FINANCIAL STATEMENT 32-40

6 LEARNING EXPERIENCE 41-43

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

EXECUTIVE SUMMARY

The project work of comparative analysis of PCARD Bank has been carried out at
Primary Co-operative Agriculture and Rural Development Bank for the period of 4
weeks. The objectives behind the study is to evaluate organizational study of
PCARD Banks.

The PCARD Bank is the major co-operative banks in India. PCARD stands for
Primary Co-operative Agriculture and Rural Development Bank.

The primary objective of this project is to evaluate the financial performance and
profitability of the banks and their service and different types of loans provided to
their customers. The study helps to evaluate the comparison between this banks by
using common size and comparative statements.

To fulfill the above said objectives of the study the data is collected from Manager
and Accountant of bank and also from banks reports, financial statements.

After the data had been collected, it had been tabulated according to the concept
researched. The tables, charts have been clearly mentioned in the analysis of reports.
Interpretation has been graphically mentioned in the comprehensive manner for
efficient and effective understanding. Through this study the researcher has
identified which bank has performed most effectively and efficiently.

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

CHAPTER - 01
INTRODUCTION ABOUT THE
ORGANIZATION & INDUSTRY
PROILE

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

1.1 INTRODUCTION ABOUT THE ORGANIZATION &INDUSTRY PROILE

GLOBAL PROSPECTIVE OF BANKING

Banking began with the first prototype banks of merchants of the ancient world, which
made grain loans to farmers and traders who carried goods between cities and this system is
known as a barter system. This began around 2000 BC in Assyria and Babylonia. Later,
in ancient Greece and during the Roman Empire, lenders based in temples made loans and
added two important innovations: they accepted deposits and changed money. Archaeology
from this period in ancient China and India also shows evidence of money lending activity.

The origins of modern banking can be traced to medieval and early Renaissance Italy, to the
rich cities in the centre and north like Florence, Lucca, Siena, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing
branches in many other parts of Europe. One of the most famous Italian banks was
the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397.The earliest known state
deposit bank, Banco di San Giorgio , was founded in 1407 at Genoa, Italy.

Modern banking practices, including fractional reserve banking and the issue of banknotes,
emerged in the 17th and 18th centuries. Merchants started to store their gold with
the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In
exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the
quantity and purity of the metal they held as a Bailee these receipts could not be assigned
only the original depositor could collect the stored goods.

Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led
to the development of modern banking practices; promissory notes (which evolved into
banknotes) were issued for money deposited as a loan to the goldsmith. The goldsmith paid
interest on these deposits. Since the promissory notes were payable on demand, and the
advances (loans) to the goldsmith's customers were repayable over a longer time period, this
was an early form of fractional reserve banking. The promissory notes developed into an
assignable instrument which could circulate as a safe and convenient form of money backed
by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk
of default. Thus, the goldsmiths of London became the forerunners of banking by creating
new money based on credit.

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

The Bank of England was the first to begin the permanent issue of banknotes, in
1695. The Royal Bank of Scotland established the first overdraft facility in 1728.By the
beginning of the 19th century a bankers' clearing house was established in London to allow
multiple banks to clear transactions. The Rothschild’s pioneered international finance on a
large scale, financing the purchase of the Suez Canal for the British government.

Bank is an important organization of the modern trade and commerce. Banks in India
are regulated by the Banking Regulation Act, 1949. The banking activities in India are
regulated by the Banking Regulations Act, 1949. Under Sect0ion 5(b) of the said Act
“Banking” means, the accepting, for the purpose of lending or investment, of deposits of
money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft,
order or otherwise. Any bank which transacts this business in India is called a banking
company. However, any company which is engaged in the manufacturer of goods or carries
on any trade and which accepts deposits of money from the public merely for the purpose of
financing its business as manufacturer or trader shall not be deemed to transact the business
banking.
Banking in India
Banking in India in the modern sense originated in the last decades of the 18th
century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of
India, established 1786 and since defunct. The largest bank, and the oldest still in existence,
is the State Bank of India which originated in the Bank of Calcutta in June 1806, which
almost immediately became the Bank of Bengal. This was one of the three presidency banks,
the other two being the Bank of Bombay and the Bank of Madras, all three of which were
established under charters from the British East India Company. The three banks merged in
1921 to form the Imperial Bank of India, which, upon India's independence, became the SBI
in 1955. For many years the presidency banks acted as quasi-central banks, as did their
successors, until the RBI was established in 1935.In 1969 the Indian government nationalized
all the major banks that it did not already own and these have remained under government
ownership. They are run under a structure know as 'profit-making public sector undertaking'
(PSU) and are allowed to compete and operate as commercial Banks The Indian banking
sector is made up of four types of banks, as well as the PSUs and the state banks; they have
been joined since 1990s by new private commercial banks and a number of foreign banks.

Banking in India was generally fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge. The

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government has developed initiatives to address this through the State bank of India
expanding its branch network and through the NABARD with things like micro finance.
During the period of British rule merchants established the Union Bank of Calcutta in 1829,
first as a private joint stock association, then partnership. Its proprietors were the owners of
the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union
Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed
the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed
that it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated
in 1845 but failed in 1848, having been insolvent for some time and having used new money
from depositors to pay its dividends.

The Allahabad Bank, established in 1865 and still functioning today, is the oldest
Joint Stock banking India; it was not the first though. That honor belongs to the Bank of
Upper India, which was established in 1863, and which survived until 1913, when it failed,
with some of its assets and liabilities being transferred to the Alliance Bank of Simla.Foreign
banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoird' Escompte
de Parisopened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in
Madras and Pondicherry, then a French possession, followed. HSBC established itself in
Bengalin 1869. Calcutta was the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking centre. The first entirely Indian joint stock bank
was the Oudh Commercial Bank, established in 1881 in Fakirabad. It failed in 1958. The next
was the PNB, established in Lahore in 1895, which has survived to the present and is now
one of the largest banks in India. Around the turn of the 20th Century, the Indian economy
was passing through a relative period of stability. Around five decades had elapsed since the
Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had
established small banks, most of which served particular ethnic and religious communities.

Post-Independence

The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end of a
regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted

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into greater involvement of the state in different segments of the economy including banking
and finance. The major steps to regulate banking included:

 The RBI, India's central banking authority, was established in April 1935, but was
nationalized on 1 January 1949 under the terms of the Reserve Bank of India
(Transfer to Public Ownership) Act, 1948 (RBI, 2005)
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India".
 The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.

Nationalization in the 1960s

Despite the provisions, control and regulations of RBI, banks in India except the SBI,
continued to be owned and operated by private persons. By the 1960s, the Indian banking
industry had become an important tool to facilitate the development of the Indian economy.
At the same time, it had emerged as a large employer, and a debate had ensued about the
nationalization of the banking industry. Indira Gandhi, the then Prime Minister of IndIa,
expressed the intention of the Government of Indian the annual conference of the All India
Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization. The meeting
received the paper with enthusiasm. Thereafter, her move was swift and sudden. The
Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of
Undertakings) Ordinance, 1969')) and nationalized the 14 largest commercial banks with
effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits
in the country. Jayaprakash Narayan, a national leader of India, described the step as a Within
two weeks of the issue of the ordinance, the Parliament passed the Banking Companies
(Acquisition and Transfer of Undertaking) Bill, and it received the presidentialapproval on 9
August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit
delivery. With the second dose of nationalization, the Government of India controlled around
91% of the banking business of India. Later on, in the year 1993, the government merged
New Bank of India with Punjab National Bank. It was the only merger between nationalized

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banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After
this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the
average growth rate of the Indian economy.

Liberalization in the 1990s

In the early 1990s, the then swoop srivathsan government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as New
Generation tech-savvy banks and included Global Trust Bank (the first of such new
generation banks to be set up), which later amalgamated with Oriental Bank of Commerce,
UTI Bank, ICICI Bank and HDFC Bank. This move, along with the rapid growth in the
economy of India, revitalized the banking sector in India, which has seen rapid growth with
strong contribution from all the three sectors of banks, namely, government banks, private
banks and foreign banks. The next stage for the Indian banking has been set up with the
proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors
in banks may be given voting rights which could exceed the present cap of 10%,at present it
has gone up to 74% with some restrictions. The new policy shook the Banking sector in India
completely. Bankers, till this time, were used to the 4–6–4 method (Borrow at 4%,Lend at
6%,Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy
methods of working for traditional banks. All this led to the retail boom in India. People not
just demanded more from their banks but also received more.

Current period

By 2010, banking in India was generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is
to manage volatility but without any fixed exchange rate-and this has mostly been true. With
the growth in the Indian economy expected to be strong for quite some time-especially in its
services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M&As, takeovers, and
asset sales.In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its

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stake in Kodak Mahindra Bank (a private sector bank) to 10%. This is the first time an
investor has been allowed to hold more than 5% in a private sector bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks would
need to be vetted by them. In recent years critics have charged that the non-government
owned banks are too aggressive in their loan recovery efforts in connexion with housing,
vehicle and personal loans. There are press reports that the banks' loan recovery efforts have
driven defaulting borrowers to suicide.

PCARD BANK IN TUMKUR & KARNATAKA

The PCARDB’s are required to meet all the long term credit needs of the farmers. Generally,
these societies are formed to free the weaker sections of the society from economic
exploitation. For example; poor farmers start cooperative credit societies to get loans at lower
rate of interest & to free themselves from money lenders. Small producers in order to save
themselves from the middlemen and to get reasonable price for their products to start
marketing in cooperative societies. People from low income strata are started consumer
cooperative societies to get the essential commodities at reasonable prices.

Agriculture plays a vital role in Indian economy. Over 58% of the rural households depend
on agriculture as their principal meats of livelihood. Agriculture, along with fisheries and
forestry, is one of the largest contributes to the GDP. Hence, rapid growth of the agricultural
sector has become necessary to achieve faster & inclusive growth. There are a number of
reasons as to why the agriculture sector has not been growing at a faster rate. One of the
problems faced by the agricultural sector has been lack of availability of timely credit. There
are a number of institutions which are providing credit to country agriculture such as
commercial banks, regional rural banks & a host of cooperative institutions. The cooperative
institutions provide short term as well as long term loans for various purposes.

The main objective of cooperative societies is ‘Society is for individual and individual is for
society. Here importance has given to the service rather than profit. Under this system, people
with limited means are benefited much. The KSCARDB’s has been established with a
mission encourage rural farmers, to make adequate investment in agriculture by availing the
benefit of its loan schemes. Infect, the back has been successful in preventing farmers from
taking help of money lenders/ an account of availability of long term credit by PCARDB’s,
The farmers have been able to invest huge sum of money in agriculture.

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Exactly of the preferences continuously take after the bank ,such favorable circumstances are
rate of interest, that need aid low for secured advance amount, advances provided for with
specific business only, credit methodology expends quite a few time, boundless arrangement
would require Toward best possible updates Furthermore a portion plan would practically
worth. Co-operative accounts would generally little impart in the bank-dominated Indian
fiscal system; however, provided for their geographic What's more demographic outreach,
they hold key position in the framework. Geographically, co-operatives have been
instrumental molding in extending formal money related administrations on towns & little
towns over India. Demographically, these establishments need enabled entry will money
related administrations should low what’s more middle-income bunches previously, both
provincial what’s more urban ranges.

Finally, cooperatives to each town also each town ought to be secured by a cooperative”.
Participation may be an association alludes all the to an affiliation structured to the reason for
common profits. Likewise might have been said by those illustrious requisition ahead
agribusiness in India, the Indian agreeable development might have been initiated by those
administration. It spread & differentiated for the consolation furthermore backing of the
legislature. Its display condition will be also should incredible degree due to the meddling
contribution of and obstruction by those legislature to improvement about Agricola division.
PCARDBs in Karnataka:

PCARDBs have been selecting long term loans in, which varieties of performances such as
living land facing digging bore wells and buying agree-accruements. Since most of the small
& marginal farmers do not have this especially to long term credit PCARDBs have been
playing a vital role.

Karnataka has the distinction of being the pioneer state in establishing the first credit
cooperative society in ‘Dharwad’ (at present Gadag district) district during 1905. The state
has since then witnessed tremendous growth in the cooperative field.

The Karnataka state cooperative agriculture and rural development bank (KSCA & RD Bank)
was established on 25th November, 1929 and is located in Bangalore. This may be an
establishment taking care of matters concerning those policy, arranging Also operations in
the field for credit to farming Also to other financial Furthermore improvement exercises to
rustic regions. Essentially, it is a refinancing office to monetary institutions, putting forth
preparation kudos What's more venture credit for pushing farming worker & improvement

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exercises Previously, rustic regions.. It is a challenging task to strengthen rural people

economically. The government alone cannot make these changes in rural parts where poverty
is hindering the development process. Concerted efforts of cooperative societies in
eliminating poverty and strengthening rural people emerged as unique alternatives for the
development.

Over the years, the PCARDBs have lent amount to agriculture. These banks have contributed
modern techniques, machineries of agriculture in the state. The banks by lending long term
loans have external competitions & coverage among farmers to undertake investment in
agriculture. The banks have been facing a number of problems in the purchasing of lands,
verification of documents of the borrowers and ensuing proper use of funds, timely recovery
of sanctioned loans are some of the problems being faced by PCARDBs. Also, these banks
facing a number of challenges such as growing non-performing assets, increased demand for
credit and falling deposits. Beside these, these institutions have been facing competition from
sister institutions like cooperative banks, commercial banks, development banks and also
from the unorganized sector.

Meaning

A Bank is a financial institution that accepts deposits from the public and creates credit.
Leading activities can be performed either directly or indirectly through capital markets. Due
to their importance in the financial stability of a country, Banks are highly regulated in most
countries.

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operative Agricultural and Rural Development Bank Ltd.

Types of bank

Central Bank

The Reserve Bank of India is the central bank of the country entrusted with monetary
stability, the management of currency and the supervision of the financial as well as the
payments system. Its functions and focus have evolved in with the changing economic
environment. Its history is not only relates with the economic and financial history of the
country, but also gives insights into the thought processes that have helped shape the
country's economic policies. In India the Reserve Bank of India (RBI) acts as a central
bank ass well as the governing body of the banking sector. The RBI was established on April
1, 1935 in as per the provisions of the Reserve Bank of India Act, 1934. The Central Office
of the Reserve Bank, where the Governor sits and where policies are formulated, was initially
established in Calcutta but was permanently moved to Mumbai in 1937. Though originally
privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the
Government of India.

Commercial Bank:-These
These banks accept deposits and grant short-term
term loans and advances to
their customers. Moreover, commercial banks also provide medium
medium-term
term and long-term
long loans
to business enterprises. There are various types of banks on the basis of their ownership and
they are explained as follows

public Sector Bank:-These

These banks have majority of stake held by the Government of India or
RBI. Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of
Baroda and Dena Bank, etc.

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Private Sector Bank:-These banks have majority of share capital of the bank held by
private individuals. These banks are registered as companies with limited liability. For
example: The Jammu and Kashmir Bank Ltd., Bank of Rajasthan Ltd.,

Foreign Bank:-These banks are registered and have their headquarters in a foreign country
but operate their branches in our country. Some of the foreign banks operating in our country
are Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, American Express
Bank, Standard & Chartered Bank, Grindlay’s Bank, etc. The number of foreign banks
operating in our country has increased since the financial sector reforms of 1991.

Co-operative Bank:-People who come together to jointly serve their common interest often
form a co-operative society under the Co-operative Societies Act. When a co-operative
society engages itself in banking business it is called a Co-operative Bank. The society has to
obtain a license from the Reserve Bank of India before starting banking business. Any co-
operative bank as a society is to function under the overall supervision of the Registrar, Co-
operative Societies of the State. As regards banking business, the society must follow the
guidelines set and issued by the Reserve Bank of India.

The three types of co-operative Banks are explained as follows

Primary Credit Societies:-These are formed at the village or town level with borrower and
non-borrower members residing in one locality. The operations of each society are restricted
to a small area so that the members know each other and are able to watch over the activities
of all members to prevent frauds

Central Co-operative Banks:-These banks operate at the district level having some of the
primary credit societies belonging to the same district as their members. These banks provide
loans to their members (i.e., primary credit societies) and function as a link between the
primary credit societies and state co-operative banks.

State Co-operative Banks:-These are the apex (highest level) co-operative banks in all the
states of the country. They mobilize funds and help in its proper channelization among
various sectors. The money reaches the individual borrowers from the state co-operative
banks through the central co-operative banks and the primary credit societies.

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Regional Rural Bank(RRB):-The Rural Banking is the new buzz in the banking sector
which has made a lot of significance. Basically the main aim of these banks is to build the
financial infrastructure right from the bottom i.e. the agricultural sector. Many banks have
aggressively initiated the process of penetration in the rural market in order to stimulate the
growth process.

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

CHAPTER-02
ORGANIZATION PROFILE

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COMPANY PROFILE

PRIMARY CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK LTD.

02.Background of the Bank

The Primary Co-operative Agriculture and Rural development Ltd. Bank Sira has started in
the year 1940, previously it was seen working under the name has P.L.D Bank ltd. Until
1982, after 1982 is to be converted have Primary Co-operative Agriculture and Rural
Development Bank. (PCARD) Bank Ltd. Historical over view of agriculture is up to 1968.
Agricultural advances were granted by cooperative system in the country in 1968 R.B.I
diverted to commercial banks to take up direct agricultural advances the green revolution
took place in the country during 1966-68 which resulted in a great demand for credit to
agriculture. The head office of PCARD Bank Ltd and other 70% branches has a central air
condition system with well-furnished branches which the employees to escape from the heat
areas. And also provide good environment to do work to employees and bank provides
accommodation facilities to employees and also the bank provides basically petrol, 100%
medical allowance and promotion and wage revenue plan.

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PCARD BankLtd, offers total value packing, nonstop shop for all banking needs. The bank is
committed to provide with customized services designed to suit individual requirements,
whether it high caring deposits, easy and convenient loans, utility bill payment is enabling to
keep track of finances there by saving time.

2.1 Objectives of PCARD Bank:

 To provide long term, medium term and short term loan to farmers
 This bank helps to farmers to get better price for their products
 To help of farmer in improve the standard of living
 To provide different loan to farmer in bank to improve the economic activity
 The bank will also provide a farmer clubs because to improve the knowledge
of the farmer in case of agriculture
 To identify the people will be correctness to repayment loan of farmer to given
by the awarded (yearly wise)

2.2AREAS OF OPERATION:

The area of operation of the Bank shall extend to the district of Tumkur. The area of
operation shall be confined to 10 branches including head office in Tumkur.

Primary Co-operative Agricultural and Rural Development Bank Ltd.Over all branches in
Tumkur (District.)

 Tumkur
 Gubbi
 Sira
 Chikkanayakanahalli
 Koratagere
 Pavagada
 Kunigal
 Turuvekere
 Madhugiri
 Tiptur

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2.3 COMPETITORS

The list of competitors is as given by PCARD Bank.

 KaveriKalpatharuGrameena Bank
 District co-operative bank
 Tumkur Grain Merchants Co-operative Bank
 State bank of India
 Karnataka bank
 Town cooperative bank
 Bank of Baroda
 Syndicate bank

2.4 NATURE OF BUSINESS CARRIED:

The primary cooperative agricultural and rural development bank is a services sector
industry, which provides lending and borrowing services to its customer. It is one of the
cooperative banking sectors in Tumkur district and it accept deposits from customer and
lending loans and advances to the account holders.

2.5 PROMOTERS:

PCARDBs have been assigned a vital role in agriculture development of our country. The
basic task of these banks is to develop agricultural sector.

SL.NO NAME DESINATION

01 RAMKRISHNA President
02 JAYALAKSHMI Vice president
03 K.M HENGERAPPA Director
04 H N DEVARAJU Director
05 T D MALLESH Director
06 SRIDARAMURTHY Director
07 CHIKKANNA Director
08 K L MUKANDAPPA Director
09 NAGARATHNAMMA Director
10 BOREGOWDA Director

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2.6 VISION:

“Providing credit service and guidelines to farmers and increasing the status of farmers in the
country”. And to extend their service into commercial banks.

2.7 MISSION:

“It helps develop the economic status of farmers by providing valuable credit service and

Guidelines. Their main aim is providing a long credit facilities to the farmers according to
their requirements”.

2.8 QUALITY POLICY

Values:

The following are the values bound by primary cooperative agricultural and rural
development bank

 To provide better services to customers

 To help its member association financially and socially and to improve their work
towards making a profit business
 To adopt modern technology (computer systems, fax, telephone )

2.9 PRODUCT/SERVICES PROFILE:

Financial assistance in the following areas

1. Minor irrigation
a. Bore well scheme
b. Pump set scheme
c. Drip irrigation
d. Pipe line scheme
2. Land development scheme
a. Land development
b. Fencing

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3. Horticultural
a. Coconut development scheme
b. Mango development scheme
c. Areca nut
d. Integrated horticulture
e. Sapota
4. Seri cultural scheme
a. Plantation
b. Instruments
5. Rural housing scheme
6. Diversified scheme
a. Dairy development scheme
b. Bullock and bullock cart
c. Sheep scheme
d. Poultry scheme

2.10 OWNERSHIP PATTERN

The ownership pattern of the PCARDB is based shares. The shareholder firm of ownership
is followed. The following people govern the buck.

SL.NO NAME DESINATION

01 RAMKRISHNA President
02 JAYALAKSHMI Vice president
03 K.M HENGERAPPA Director
04 H N DEVARAJU Director
05 T D MALLESH Director
06 SRIDARAMURTHY Director
07 CHIKKANNA Director
08 K L MUKANDAPPA Director
09 NAGARATHNAMMA Director
10 BOREGOWDA Director

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

2.11 ACHIEVEMENT AND AWARDS

 Best Co-operative Bank in Tumkur district at 1996, it was awarded by The
KSCARD BANK.LTD

2.12 FUTURE GROWTH AND PROSPECTS:

 Intended to open new branches in all hobalies

 Planning to provide ATM Service
 To achieve high profit
 Transfer of DD need to converted by E payment

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

CHAPTER-3
MCKINSEY 7’s MODEL
FRAMEWORK AND PORTER’S FIVE
FORCE MODEL

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3. INTRODUCTION:-
McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key
internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to
identify if they are effectively aligned and allow organization to achieve its objectives.
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julian Philips with a help from “Richard Pascal” and “Anthony G. Athos”.

Since the introduction, the model has been widely used by academics and practitioners and
remains one of the most popular strategic planning tools. It sought to present an emphasis on
human resources (Soft S), rather than the traditional mass production tangibles of capital,
infrastructure and equipment, as a key to higher organizational performance. The goal of the
model was to show how 7 elements of the company: Structure, Strategy, Skills, Staff, Style,
Systems, and Shared values, can be aligned together to achieve effectiveness in a company.

The key point of the model is that all the seven areas are interconnected and a change in one
area requires change in the rest of a firm for it to function effectively.
Below you can find the McKinsey model, which represents the connections between seven
areas and divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes
interconnectedness of the elements.

The model can be applied to many situations and is a valuable tool when organizational
design is at question. The most common uses of the framework are:
 To facilitate organizational change.
 To help implement new strategy.
 To identify how each area may change in a future.
 To facilitate the merger of organizations.
Below you can find the McKinsey model, which represents the connections between seven
areas and divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes
interconnectedness of the elements.

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

3.1 7’S MODEL OF PRIMARY CO-OPERATIVE AGRICULTURAL AND

RURAL DEVELOPMENT BANK LIMITED.(PCARD BANK.LTD)

I. STRUCTURE:-
How is the organization structured and which hierarchical layers are there.
The PCARD Bank Ltd, has a well-organized with well-structured with a sound
foundation of 25 business outlets and a well-defined reporting architecture as the body
to support and with well officers and employee’s. Thus, its show the Line
Organizational structure. This refers to organizational structure or the reporting
pattern. Organization structure is a system of relationship that governs the activities of
the people who are dependent upon each other for achieving common objective. For
the purpose of easy and effective administration all the activities of state bank of India
have been broadly assigned to the following parts.Directors and managers etc…

Below figure shows the details structure of the Primary co-operative agricultural and
rural development bank ltd.

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

ORGANISATIONAL STRUCTURE:-

BOARD OF DIRECTORS

CHAIRMAN & VICE CHAIRMAN

EXECUTIVE DIRECTOR

GENERAL MANAGER

REGIONAL OFFICES

BRANCH HEADS

TECHNICAL STAFF GENERAL STAFF

 ACCOUNTANT  CLERK
 CASHIER  ATTENDER
 IT DEPT.  GATE
 AUDITOR KEEPER
 SURVEYOR  CLEANERS

II. SKILLS:-
These concern both the skills of the organization and those of the employees.
In this bank the main skills of the staff members are these members are technically
well qualified persons with their technical skills. They operate banking based objects
efficiently and effectively. These members are well knowledgeable persons in
corporate sector and they handle the IT dept. and audit sector and they are well good
at their communication as well as team work.
Thus, these are the skill which is maintained by this particular bank

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

III. STYLE:-
Style is all about leadership and management styles.
In this Primary Co-operative Agricultural and Rural Development Bank Ltd (PCARD
BANK Ltd) they carry the Autocratic Style of leadership to get the effective and
efficient decision towards the banking welfare.
Board members and managers are make the decision but they take some suggestions
from the employees for decision making.

IV. STRATEGY:-
By using mission and vision the organizations objectives become clear. You can find
these elements in the strategic planning of an organization.
The Primary Co-operative Agricultural and Rural Development Bank Ltd (PCARD
BANK Ltd) is one of the leading rural co-operative bank which it is used some
strategies to attract the customers they are;
Bank more targeted and concerned for the middle class members and which they have
the moderate income which they planned to save the money for future and also the
bank as planned to establish the internet banking for money transfer. They are
introduced at a very nominal minimum balance and no hidden charges.

V. SYSTEM:-
Systems are all formal and informal methods of operation, procedures and
communication flows.
The Primary Co-operative Agricultural and Rural Development Bank Ltd (PCARD
BANK Ltd) is adopted the data based management. Which they are maintained the
software creating by managing the software by DBMS. And some rules and
regulations to control and manage the employees and customers to maintain the
effective procedures and policies of the bank. And also the employee’s should
undergo as a daily rot tin with Biometric system and make sure that they should
punctuality towards their work

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

VI. STAFF:-
This soft elements is about the employees, their competences and job descriptions.
In Primary Co-operative Agricultural and Rural Development Bank Ltd (PCARD
BANK Ltd) there are 22 employees in their bank. Such as 4women and 17 men
employees. Under this 1 manager, 2 accountant, 2 cashier, 2 information technology
sector, 1 auditor, 2 clerk, 1 assistant manager, 4 survey officer,1 treasurer officer, 2
technicians, 4 group D employee.
Thus, these are some information about the staff of the particular bank.

VII. SHARED VALUES:-

The standards and values and other forms of ethics within an organization in which vision,
corporate culture and identity are the key elements.

The farmer’s principles of the Primary Co-operative Agricultural and Rural Development
Bank to get better place in the state in order to achieve the same.

The Bank follows the listed principles

 To provide better services to customers

 To help its member association financially and socially and to improve their work
towards making a profit business
 To adopt modern technology (computer systems, fax, telephone )
Example:
The Primary Co-operative Agricultural and Rural Development Bank Ltd(PCARD
BANK Ltd) do some CSR activities they are donate computers to government
schools and planted the 25 trees yearly.

Thus, the some information about the 7’S model of Primary Co-operative Agricultural and
Rural Development Bank (PCARD BANK Ltd) . This information gives the overall view of
the

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

3.2 Porter's Five Forces Model

Porter's five forces model was developed by Michael.E.Porter in the year 1979 to understand
how five competitive forces are affecting an industry's competitiveness and to identify the
potential.

The five forces are as follows:-

1) Threat of New Entrants:- A company's power is affected by the force of new entrants into
the market. The less time and money it costs for a competitor to enter a company's market
and be an effective competitor, the more a company's position may be significantly
weakened.

2) Bargaining power of suppliers:- Strong bargaining power allows suppliers to sell higher
priced or low quality raw materials to their buyers. This directly affects the buying firms
profits because it has to pay more for materials.

3) Bargaining power of buyers:- Buyers have the power to demand lower or higher product
quality from industry producers when their bargaining power is strong. Lower price means
lower revenues for the producer, while higher quality products usually raise production costs.
Both scenarios result in lower profits for producers.

4) Threat of Substitutes:- This force is especially threatening when buyers can easily find
substitute products with attractive prices or better quality and when buyers can switch from
one product or service to another with little cost.

5) Rivalry among existing competitors:- This force is major determinant on how competitive
and profitable an industry is. In competitive industry, firms have to compete aggressively for
a market share, which results in low profits. Now putting these five forces in web designing
company, Pixselo Global Solutions we get the following:

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

CHAPTER-04

SWOT ANALYSIS

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

04. SWOT ANALYSIS

SWOT analysis is a strategic planning technique used to help a person or organization

identify strengths, weakness, opportunities , and threats related to business competition or
project planning. it is intended to specify the objective of the business venture or project and
identify the internal and external factors that are favorable and unfavorable to achieving those
objectives. Users of a SWOT analysis often ask and answer questions to generate meaningful
information for each category to make the tool useful and identify their competitive
advantage. SWOT has been described as the tried-and-true tool of strategic analysis. Strength
and weakness are frequently internally-related, while opportunities and threats commonly
focus on the external environment. The name is an initialism for the four parameters the
technique examines.

 Strengths:-characteristics of the business or project that give it an advantage over

others.
 Weakness:-characteristics of the business that place the business or project at a
disadvantage relative to others.
 Opportunities:-elements in the environment that the business or project could exploit
to its advantage.
 Threats:- elements in the environment that could cause trouble for the business or
project.

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

The SWOT of PCARD BANK Ltd. As follows

04.1 Strengths:

 Attractive interest rate towards Deposits

 Qualified employee& dedicated committed staff
 Good infrastructure
 Low transition cost

04.2 Weakness:

 Number of computers systems in the bank

 Updated & innovative technology is not used.
 Mobilization of deposits is very low
 Non-Performing Asset’s are high
04.3 Opportunities:

They can start the activity as the commercial banks activity such as

 Government and sponsored bank support

 New scheme can be introduced
 Rural, urban and semi urban branches
 Concentrating more on low and middle class people

04.4 Threats:

 Competitors new schemes

 Government rules and regulation
 Change in Government Policies
 Changing Policies of RBI
 Changing Interest Rate

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

CHAPTER – 5
ANALYSIS OF FINANCIAL
STATEMENT

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

05. FINANCIAL STATEMENT:

05.1 Profit and loss account as on 2019-20

Loss Amount Profits Amount

State bank loan interest 6764170.00 Interest on incomes 12809246.00

Employee salary 1144639.00 Other administration income 302465.00

Travelling allowance 19700.00 Income from building 91820.00

Director fees 58865.00 ITGI Insurance commission 4841.00

Printing and stationary 25889.00 IFCO share Dividend 1600.00

Meeting expenses 43900.00 Bank commission 1460.00

Water tax 5760.00 Interest on current account 600.00

Postage and telephone 22700.00 Other incomes 530200.00

Commission 8496.00 NPA 1176836.00

Recovery expenses 132091.00

Other administration 51358.00

expenses
6428.00
Electricity
2000.00
Medical expenses
1660.00
Computer maintaining
2500.00
expenses
267480.00
Bank working tax
101319.00
Pigmy agent commission

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

Employee gratuity 19323.00

Building tax 51541.00

Pigmy interest 6009.00

Pigmy service fees 27710.00

Yashasvini service fees 39188.00

E-stamping 3527.00

Interest on fixed deposit 141348.00

Depreciation 35000.00

Audit fees 269418.00

Interest on fixed deposits 781317.00

Other expenses 4885732.00

Profit (2015-16)

Total 14919068.00 Total 14919068.00

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

05.2 Balance sheet as on 2019-20

LIABILITIES Amounts (RS)

Equity share capital 8563249.00

Reserves fund 6733.00
Other reserves 11133610.00
Deposits 6404249.00
Central bank accounts 35940.00
Central bank loans 93800598.00
Members liabilities 1903938.00
Other liabilities 28032376.00
Staff provident fund 34606.00
Reservation 1818612.00
Total liabilities 151733911.00
ASSETS Amount(RS)

Cash 236380.00
Bank 471695.00
Investment 7019510.00
Fixed assets 4128109.0.00
Current assets 70246932.00
Other assets 642441.00
Income from E-stamping 439970.00
Interest from state govt. 10083682.00
Accumulated loss 58441781.00

TOTAL 151733911.00

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

FINANCIAL STATEMENT:

05.2.1 Profit and loss account as on 2020-21

Loss Amount Profits Amount

State bank loan interes 7883530.00 Interest on incomes 9016376.00

Advance interest payment 4569654.00 Borrowing income from members 88261.00

Employee salary 993375.00 Income from building 191940.00

Travelling allowance 45470.00 ITGI Insurance commission 4191.00

Director fees 20640.00 Other administrative income 53975.00

Printing and stationary 23555.00 Postage and printing 37587.00

Meeting expenses 52872.00 Registration fees 7920.00

Water tax 5760.00 Pigmy service fee 69485.00

Postage and telephone 20460.00 E stamping fee 316336.00

Commission 5270.00 Water revenue 1920.00

Recovery expenses 161099.00 Yashaswini service fees 15690.00

Other administration expenses 102894.00 List of state bank loans back 656.00

Electricity 6607.00 Ishko share dividend 800.00

Medical expenses 4500.00 2017-2018th LOSS 7454902.00

Computer maintaining expenses 15785.00

Bank working tax 2500.00

Pigmy agent commission 189086.00

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

Employee gratuity 131337.00

Interest on fixd deposit 985672.00

Building tax 30857.00

Pigmy interest 44013.00

Pigmy service fees 2880.00

Yashasvini service fees 15070.00

E-stamping 45629.00

Proportion cost 15010.00

Interest of picard bank 4925.00

General cost 12000.00

hospitatily 620.00

Election cost 3500.00

Earning holiday 56379.00

Employee gratuity 23390.00

Depreciation 405981.00

Audit fees 2428.00

Machinery depreciaton 35000.00

Computer depreciation 8849.00

NPA 1472.00

Chairman’s honor 1289525.00

Voice chairman’s honor 19500.00

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

Chairman travelling allowance 22945.00

Total 17,260,039 Total 17,260,039

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

05.2.2 Balance sheet as on 2020-21

LIABILITIES Amounts(RS)

Equity share capital 10299683.00

Reserves fund 6733.00
Other reserves 14651986.00
Deposits 13882908.00
Central bank accounts 35940.00
Central bank loans 107449615.00
Members liabilities 1531563.00
Current liabilities 37552987.00
Staff provident fund 15042.00
Reservation 99706.00
Total liabilities 185526163.00
ASSETS Amount(RS)

Cash 655256.00
Bank 171551.00
Investment 19596022.00
Fixed assets 5500360.00
Current assets 80213693.00
Other assets 465088.00
Income from E-stamping 688721.00
Interest from state govt. 6210701.00
Accumulated loss 72024771.00

TOTAL 185526163.00

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

05.3RATIO ANALYSIS

Ratio is the relationship between two accounting numbers by dividing one number
by another. It is one of the effective tools of financial analysis. It indicates the
relationship of accounting aspects like profit and sales, income and expenses, current
assets and liabilities etc. with each other and reflects the soundness of the concern

1) CURRENT RATIO

It is the ratio which is computed by taking into consideration the current assets and
current liabilities of an organization

CURRENT RATIO 2020-21 2020-21

Current Ratio= Current 1.00 0.94

assets/current liabilities

2) LIQUID OR QUICK RATIO

Quick ratio is that ratio which measures the immediate solvency position of an
enterprise. It establish relationship between quick assets and quick liabilities. It is
computed as follows.

QUICK RATIO 2020- 21 2019-20

Quick Ratio=Quick 2.10 2.46

assets/current
liabilities

3) SOLVENCY RATIO

It is the ratio between the total assets and liabilities.

SOLVENCY RATIO 2020-21 2019-20

Solvency Ratio=Total 1 1
Assets/Total liabilities

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Primary Co-operative Agricultural and Rural Development Bank Ltd.

CHAPTER-6
LEARNING EXPERIENCE

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

Learning Experience
The four weeks internship study project gave me a practical insight to the working of Primary
Co-operative Agricultural and Rural Development Bank Ltd. The Mckinsey’s 7’s framework
has completely helped in understanding the organization structure,working skills, procedures
and operations involved in the working of the Bank. During this project, I came to know that
the theoretical aspects learnt in the class rooms are applicable only an a certain extent.
Some of my learning can be listed as below
 I came to know about the working procedures, purpose and role of a Co-operative
Bank in Development of rural areas of a District.
 I observed how policies adopted by the management were practiced in Co-operative
Bank.
 I observe the hierarchy and the relationship between the various levels of the
management the organization. i.e. the relationship between the superior and sub-
ordinates
 Could observe the good co-operation between the different Departmental activities, to
achieve the customer satisfaction as early as possible.
 Overall , it was a good experience and I learnt lot of things about Bank and it
operation, which helped me to do my project.

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 Primary Co-operative Agricultural and Rural Development Bank Ltd.

BIBLIOGRAPHY

www.kscardbank.com
www.googl.com

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