A PROJECT REPORT

ON

“A Study on Deposits and Loans and Advances Process of a

Credit Cooperative Society with Special Reference to
Dhanwantari Nagari Sahakari Patsanstha Ltd., Satara”

Submitted to

Shivaji University, Kolhapur

as a part of educational curriculum for M.Com. – I

Submitted by

Mr. Borate Ketan Subhash (M.Com.-I)

Under the guidance of

Prof. G R. Waske

(M.Com., SET & G.D.C. & A.)

Lal Bahadur Shastri College, Satara.

I
 CERTIFICATE

This is to certify that Mr. Borate Ketan Subhash, M.Com.-I student

of Lal Bahadur Shastri college, Satara has successfully completed his
project work with us in respect of his project on “A Study on Deposits and
Loans and Advances Process of a Credit Cooperative Society with
Special Reference to Dhanwantari Nagari Sahakari Patsanstha Ltd.,
Satara”

We wish him all the best for future.

Place- Satara

Date

For Dhanwantari Nagari Sahakari

Patsanstha Ltd, Satara

II
 CERTIFICATE OF PRINCIPAL

This is to certify that Mr. Borate Ketan Subhash has submitted his
project report on “A Study on Deposits and Loans and Advances Process
of a Credit Cooperative Society with Special Reference to Dhanwantari
Nagari Sahakari Patsanstha Ltd., Satara” as a part of his educational
curriculum for M.Com. - I of Shivaji University, Kolhapur. He has carried out
his project work under my supervision.

The matter presented by him in his project report has not been
submitted earlier.

Place -Satara

Date -

PRINCIPAL,

Lal Bahadur Shastri College, Satara.

III
 CERTIFICATE OF GUIDE
This is to certify that Mr. Borate Ketan Subhash has completed the
project report on. “A Study on Deposits and Loans and Advances Process
of a Credit Cooperative Society with Special Reference to Dhanwantari
Nagari Sahakari Patsanstha Ltd., Satara” under my guidance
satisfactorily.

The project work is of original nature and not copied. from other
earlier projects. and further any part of it has not been submitted to any other
University for passing any examination.

His conclusions are based on data collected by him.

Place - Satara

Date -

Prof. G.R. Waske

(Project Guide)
Lal Bahadur Shastri College, Satara.

IV
 ACKNOWLEDGEMENT
I take this opportunity to express my sincere thanks to our Principal
Dr. R.V. Shejwal for his moral support and encouragement to me in my
project work.

I am very much thankful to Dr. Ravindra Bhosale, The Chairman of

Dhanwantari Nagari Sahakari Patsanstha, C.E.O. Mr. Sanjay Pawar and
Deputy C.E.O. Mr. Shrihari Dingane for their valuable cooperation extended
to me during my project work.

I also express my sincere thanks to my project guide

Prof. G.R. Waske for his valuable support and scholarly guidance in
successful completion of my project.

Finally, I would like to express my sincere thanks to all those who

have directly or indirectly helped me in completion of this project.

Place - Satara

Date - Mr. Borate Ketan Subhash

V
 DECLARATION
To,

The Principal

Lal Bahadur Shastri college, Satara,

Respected sir,

I, the undersigned, hereby declare that the project report “A Study

on Deposits and Loans and Advances Process of a Credit Cooperative
Society with Special Reference to Dhanwantari Nagari Sahakari
Patsanstha Ltd., Satara” under the guidance of Prof. G.R. Waske
Submitted to Shivaji University, Kolhapur as a part of educational curriculum
of M.Com. -I written and submitted by me is based on the data collected by
me for preparing this project report and that I have not copied it from any
other report.

I understand that copying is liable to punishment in way the university

authorities may deem fit.

Place – Satara

Date - Mr. Borate Ketan Subhash

VI
 INDEX

Chapter No. Chapter Name Page No

1. Introduction And Research Methodology 1

2. Profile of the Patsanstha 6

3. Theoretical Framework 12

4. Data Analysis and Interpretation 20

5. Findings And Suggestions 32

6. Conclusion 36

7. Bibliography 38

VII
 CHAPTER I

INTRODUCTION AND RESEARCH

METHODOLOGY

1.1. Introduction

1.2. Objectives of study

1.3. Statement of the Problem

1.4. Scope of the study

1.5 Limitations of the study

1.6. Research methodology

1.7 Types of data and methodology used for data collection

1
1.1 INTRODUCTION
A credit cooperative society is an independent group of people
belonging to the same class, come together voluntarily to tend to they are
common, economic, social and cultural agendas and requirements through an
enterprise which is jointly owned and controlled democratically by such
people. It is operated for the purpose of promoting thrift arranging credit at
competitive rate and providing other financial services to its members. It
reflects the willingness of the society to help each other for balancing the
social responsibility and mutual help for the benefit of its members. The
motive of promoting the economy and society is key for its members.

The first credit cooperative society was formed in Bengal in the year
1903 with the support of the Government of Bengal. The cooperative credit
societies. Act of India was enacted in 1904. In 1912, another cooperative
societies Act was passed to rectify some of the drawbacks of the earlier law.

2
1.2 Objectives of Study
1) To study work culture related to deposits and loans and advances of the
society

2) To know about various types of deposits. accepted by the society.

3) To know about interest rates for various types of deposits.

4) To get information about the types of loans and advances given by the
society.

5) To know about interest rates for various types of loans and advances.

6) To study deposit pattern of the society

7) To study loans -advances pattern of the society.

1.3 Statement of The Problem

Credit cooperative societies play a vital role in the development of
economy. They are parallel to Bank services. satisfying financial needs of the
members in the society.

They protect the interest of their members & save them from
exploitation of money lenders. Especially formation of credit cooperative
societies is easier and the procedure for granting loans & advances to the
members. is also easier. However, such societies face a number of problems
such as lack of brand value, lack of the use of technology, various restrictions
imposed by RBI and Cooperative Commissioner office.

On this ground it is necessary to understand how the Cooperative

Societies struggle for surviving in this competitive era.

3
1.4 Scope of the study
The scope of this study is limited to the Societies Head office Branch
at "Dhanwantari Bhawan' Satara which can be taken as a sample of all the
Branches. The study covers only the facts and figures provided by the
management and Annual Report of the society for the year 2021-2022.

1.5 Limitations of the study

1) The period of study is very limited.

2) The study is restricted to deposits and loans advances of the society for the
year 2021-2022 only.

3) There were some limitations on collecting secret and confidential data from
the society.

1.6 Research Methodology

Research methodology is the specific procedures or techniques used
to identify, select, process and analyze and information about a topic

4
 1.7 Types of Data & Methodology used for data collection
There are two types of data collection -

1) Primary Data

2) Secondary Data

1) Primary Data -

It is the data from original source of researcher It is collected

through surveys, interviews, experiments etc.

In this project primary data is based on personal discussion with Mr.

Shrihari Dingane, the Deputy CEO of Dhanwantari Nagari Sahakari
Patsanstha Ltd, Satara and his colleagues and observation of day-to-day
activities at- - Dhanvantari Bhavan Satara Branch for a few days.

2) Secondary Data -

Secondary data are collected from already published sources like

published statements, reports, etc.

For the purpose of this project secondary data have been collected
from The Annual Report of Dhanwantari Nagari Sahakari Patsanstha Ltd.,
Satara for the 2021-2022.

5
 CHAPTER II

PROFILE OF THE PATSANSTHA

2.1. Introduction

2.2. Brief profile

2.3 History & development of the society

2.4 Nature of working

2.5. Objectives of the society

2.6 Organizational structure.

6
 Profile of Dhanwantari Nagari Sahakari Patsanstha Ltd, Satara

2.1 Introduction-
Dhanwantari Nagari Sahakari Patsanstha Ltd. was established on
16th October, 1989. The founder and The Chairman of the Patsanstha is
Dr. Ravindra Namdev Bhosale. The total number of members. of the
Patsanstha is 11,934 as on 31-03-2022 and its paid-up capital is around 1,075
lakhs. The Patsanstha accepts various types of deposits from the members and
grants them loans as per their requirements.

The business of the Patsanstha has been expanded in 6 districts

namely Satara, Sangali, Kolhapur, Solapur, Nashik & Pune. The Patsanstha
has 7 Branches. It is only Satara based Credit Cooperative society which has
received various Precious Awards in recognition of its efficient work culture
& management.

2.2. Brief Profile

Name : Dhanwantari Nagari Sahakari Patsanstha Ltd, Satara.

Reg. No.: SAT/SAT/RSR/C/R/340/89-90 Dt. 16-10-89.

Registered Head Office – ‘Dhanwantari Bhawan' 93, Shaniwar Peth, Satara

415002.

Website: www.dhanvantaripatsanstha in.

Type of the society: Credit – Urban Cooperative Society

Founder & Chairman : Dr. Ravindra Namdev Bhosale

Total number of members : 11,934

Paid up capital : Rs.10,74,74,100

Audit class : 'A'

No. of employees : 54

7
A Prestigious Awards Received-

i) Sahakar Bhushan Award of Maharashtra Government for 2015-2016.

ii) Aadarsh Patsanstha No. 1 Award from District Patsanstha Federation.

iii) Adarsh Patsanstha No. 1 Award from Maharashtra state credit cooperative

federation.

2.3 History & development of the society

History -

Dhanwantari Nagari Sahakari Patsanstha Ltd. was founded by Dr.

Ravindra Namdev Bhosale in 1989. First it was run in a rented premises at
Mangalwar Peth, Satara. It was founded with a view to provide financial
services to Doctor members in Satara district only.

Development-

With a passage of time the society expanded its area of business in

other five districts namely Sangli, Kolhapur Solapur, Nashik and Pune. The
number of Branches is now 7 and the total number of members is 11,934 as
on 31-3-2022. The total paid up capital of the society is Rs. 10,74,74.100/- as
on 31-3-2023. Dr. Ravindra Namdev Bhosale, the founder of the society has
been chairman since its establishment.

Under his chairmanship and competent management, the society has

been expanding its business continuously. Now all the Branches are run in
own premises. During Covid-19 pandemic the society received a little set
back like other businesses did. However, now the business is recovering
speedily.

8
2.4 Nature of Working
Dhanwantari Nagari Sahakari Patsanstha Ltd. is an urban credit
cooperative society which accepts deposits from its members and grants
various types of loans. advances to satisfy the financial needs of its members.
The deposits include-

A) Short-term deposits (Period up to 1 year.)

B) Long-term deposits (Period more than I year)

C) Saving Bark Account

D) Recurring Deposits

The Loans & Advances include -

A) Housing loans

B) Vehicle Loans

C) Business Loans

D) Cash Credits (C.C.)

E) Gold Loan

F) Other purpose loans

The society also provides following services to its members.

A) Locker facility

B) Core Banking facilities such as Money transfer, Mobile banking, RTGS,

NEFT, IMPS etc.

9
2.5. Objectives of the society
1) To satisfy financial needs of its members.

2) To provide the banking like services to the members. such as locker

facility.

3) To improve the quality of the service continuously considering the need of

time.

4) To get updated in the use of technology for betterment of service.

5) To endeavor for improving management efficiency.

10
2.6. Organizational Structure

Board of Directors

Chief Executive officer (C.E.O)

Deputy C.E.O.

Branch Administration Accountant Internal

Managers officers Auditor

Passing officers Loan officers

Clerks, System Operators and Peons

11
 CHAPTER III

THEORETICAL FRAMEWORK
3.1. Deposits

3.2. Types of deposits

3.3. Documents required for opening deposit account

3.4. Loans

3.5. Types of loans

3.6. Advances.

3.7. Types of advances.

3.8. Documents required for loans/advances

3.9. Loan approval process.

12
3.1 Deposits.
Meaning

A deposit is a sum of money kept in a Bank Account or in any

account with a financial institute. It is a transfer of money from one party to
another party.

A deposit can also be the amount of money used as a security or

collateral for delivery of goods or services.

3.2. Types of Deposits

Following are general types of deposits of a bank or a credit
cooperative society.

1) Time Deposits

2) Demand Deposits

1) Time Deposits -

Under such type of deposits, the amount is deposited for a fixed

period. The amount can be withdrawn after the expiry of the period. The rate
of interest is comparatively higher on time deposits.

Following types of deposits fall under the category of time deposits.

A) Term Deposits (Short term and long term)

B) Recurring Deposits.

2) Demand Deposits

The accounts in which the amounts of deposits can be withdrawn at

any time are demand deposits. The rate of interest is lower.

13
 Following types of deposits fall under the category of demand
deposits

A) Saving Deposits

B) Current Deposits

Deposits schemes offered by Dhanwantari Nagari Sahakari Patsanstha Ltd.

1) Term Deposits

A) Short term deposits (30 days to 1 year)

B) Long term deposits (more than I year)

2) Saving Deposits

3) Recurring Deposits

3.3. Documents required for opening Deposit Account

1) Application form duty filled in.

3) Two photographs

3) Identity proof any one of (Passport, Pan card, voter's card, Aadhar card,
driving license)

4) Address proof any one of (Light bill, Ration card, property card)

5) Pay-in- slip duly filled in for depositing amount.

on opening the account, the customers are issued deposit receipt or passbook

as the case may be

14
3.4 Loans
A loan is a sum of money borrowed from a bank or financial
institution by a business or individual with the obligation to pay it after a set
period.

The borrower must repay the lender all the money plus interest at
the end of the specified period. The interest rate is usually mentioned in the
sanction letter, which contains the loan's terms and conditions and is signed
by both the lender and the borrower.

Loan is generally granted against collateral security. such as assets,

land & building, plant & machinery etc. If there is default in loan repayment,
the lender can sell the security to recover the amount of loan

3.5 Types of Loans -

1) Term Loans.

2) Demand Loans

1) Term Loans -

Term loans are the ones with a set repayment schedule decided at
the onset of the loan and are to be repaid only at the expiry of the said term.

Purposes of term loans are -

A) Housing Loan

B) Vehicle Loan

C) Education Loan

D) Business Loan

E) Gold Loan

F) Personal Loan

15
2) Demand Loans -

A demand loan is a loan in which the lender can ask the borrower to
pay the loan in full at any time and the borrower cannot deny it. This is already
decided by both the parties in the terms and conditions.

3.6. Advances
An advance is a short-term loan used for meeting short term
financial requirements. An advance is expected to be repaid within a year.
Advance is given against primary security, collateral security or personal
guarantee.

3.7 Types of advances -

1) Cash Credit

2) Overdraft facility

1) Cash Credit-

Cash credit facility is given to the borrower for meeting working

capital requirement. Under Cash Credit withdrawal of money or issue of
cheques up to the approved cash credit limit of the account is allowed.

2) Overdraft Facility -

When overdraft facility is provided to the current account holder,

amount more than available balance in the account up to a specific limit can
be withdraw by the borrower.

The security requirement of an advance is not strict. They are

allowed against personal guarantees from the directors, promoters or partners.

Loans and advances schemes of Dhanwantari Nagari Sahakari

Patsanstha Ltd.

16
1) Loans

A) Housing Loan (10 to 15 years)

B) Vehicle Loans (5 to 7 years)

C) Business Loans (5 to 10 years)

D) Gold Loan (1 year)

E) Other Loans (up to 5 years)

2) Advances

A) Cash Credit

17
3.8. Documents required for Loans / Advances
1) Application form duly filled in.

2) Two photographs

3) Identity proof-any one of (Passport, Pan Card, Voter's Card, Aadhar Card,
Driving License)

4) Address proof - any one of (Light Bill, Ration Card, Property Card)

5) Income proof (Salary Slip / Final Accounts Certified by a C. A. for recent

3 Years.)

6) Income tax returns for recent 3 years.

7) Bank pass book copies for last 6 months.

8) Property Documents.

9) Guaranteers details & documents

18
3.9. Loan approval process
Receiving applications for loans

Overall Scrutiny of loan proposals

Selection of the loan proposal on the basis of merit

Forwarding loan Proposals to the Board for final sanction

Final sanction to the proposal by the Board

Sanction letter to the borrower

Necessary documents and legal compliance by the borrower

Final disbursement of loan

19
 CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

4.1. Data analysis and interpretation.

4.2. Interpretation of data

4.3. Details of deposits

4.4. Further analysis of the deposits.

4.5. Pie-chart-Deposits

4.6. Details of loans and advances.

4.7. Further analysis of the loans and advances

4.8 Graphical Presentation of loans and advances.

4.9. Pie Chart - Loans and advances.

4.10. Loan Deposit Ratio (L.D.R.)

20
 Data Analysis and Interpretation

4.1. Data Analysis

Data analysis is the process of cleaning, changing and processing
raw data and extracting actionable, relevant information that helps businesses
make informed decisions. The procedure helps in decision making by
providing useful insights and statistics, often presented in charts, images,
tables and graphs.

Data analysis is necessary to study the relationship between the

variables under observation. The analysis reveals the patterns. and trends of
variables.

4.2 Interpretation of Data

Data interpretation is the process of reviewing data and arriving at
relevant conclusions using various analytical methods. Interpretation of Data
is necessary for better decision making. planning for future considering the
future trend in advance and effective utilization of resources.

21
4.3. Details of Deposits in Dhanwantari Nagari Sahakari
Patsanstha Ltd.

Table showing type wise amount of deposit

with rate of interest as on 31-03-2022

Rate of Interest Amount

Type of Deposit
Per annum (in lakhs)
6.75% (+) 0.5%
1) Long Term Deposits 5.184
for Sr. Citizens
4.5%. (+) 0.5%.
2) Short Term Deposits 9,185
for Sr. Citizens
3) Saving Deposits 3.5% 925
4) Recurring Deposits 6.75% 169

From the above table it is clear that rate of interest on long term
deposits and recurring deposits is the highest which is 6.75% per annum while
saving deposits carry the lowest rate of interest which is 3.5% p.a. Rate of
interest on short term deposits comes between long term deposits and saving
deposits. The society has no current deposit account. The rate of interest
offered by the society is on term deposits is more by around 0.5% than the
rate offered by the commercial banks at an average. The rate of interest on
term deposits offered by the credit cooperative societies is higher so that the
depositors can get attracted to the societies term deposit schemes.

22
4.4. Further analysis of the deposits of Dhanwantari Nagari
Sahakari Patsanstha Ltd. can be made as under
Percentage to Degree of
Amount
Type of deposit total amt of central
(Rs. in lakhs)
deposits angle
1) Long Term Deposits 5,184 33.53% 1210
2) Short Term Deposits 9,185 59.40% 2140
3) Saving Deposits 925 5.98% 21°
4) Recurring Deposits 169 1.09% 40
Total 15.463 100% 360°

Further analysis of the deposits of the society reveals that the amount
invested by the members in short term deposits is the highest. which is
59.40%. The investment of the members in long term deposits is next to the
investment in short term deposits. which is 33.53%. Thus, nearly 93% of the
investment of the members is in term deposits only while investment in saving
deposits is very little which is around 6%. The investment in recurring
deposits is only 1%. which is quite negligible. The trend clearly indicates that
the members prefer to investing in term deposit's due to comparatively higher
rates of interest offered by the society on term deposits.

As compared to term deposits the amount invested in Savings

account and recurring deposits is very small while there are no current
accounts in the society which are generally operated by businessman and
traders wherein they can make. deposits and withdrawals as many times as
they require.

23
 The reasons for less investment or no investments in saving account,
recurring deposit account and current account are lower liquidity of credit
cooperative societies as compared to that of other commercial banks,
preference given by traders and businessman to banks to operate current
accounts and absence of pigmi agents for the collection of recurring deposits.

4.5 Pie Chart - Deposits

Long Term Deposits

Short Term Deposits

Saving Deposits

Saving Recurring Recurring Deposits

Deposits Deposits
6% 1%
Long Term
Deposits
34%

Short Term
Deposits
59%

24
4.6. Details of Loans and Advances in Dhanwantari Nagari
Sahakari Patsanstha Ltd.

Table showing type wise amount of loans & Advances

with rate of interest as on 31-3-2022

Types of Rate of Interest Amount

Loans/Advances Per annum ( in lakhs)
1) Loans
8.75% 945
A) Housing Loan
B) Vehicle Loan 8.75% 171
C) Business Loan 11% 4,185
D) Gold Loan 8.75% 1,262
E) Other Loans 13% 4,243
2) Advances
10% 270
- Cash Credit

From the above information it seems that the rate of interest on

business loan and other loans are higher as compared to the other types of
loans or advances. In fact, interest on loans and advances is the main income
of any financial institute. The profitability of any financial institute depends
upon the margin of interest between loans and advances and deposits. The
higher is the difference between the rate of interest earned on loans and
advances and that paid on deposits, the higher is the profitability.

25
 Since credit cooperative societies generally offer higher rate of
interest on term deposits to attract the depositors, obviously, they have to
charge higher rate of interest on loans and advances. As a result, the borrowers
prefer to taking loans and advances from the commercial banks where
comparatively lower rate of interest is charged. Therefore, rates of interest
charged by the society on different types of loans are higher to some extent
as compared to the average rates of interest charged by commercial banks on
similar types of loans and advances.

26
4.7 Further analysis of the Loans and Advances of
Dhanwantari Nagari Sahakari Patsanstha Ltd. can be made as
under
Types of Loans Amount Percentage to Degree of
and Advances (Rs in lakhs) total amt of Central
Loans/Advances angle
1) Loans
945 8.53% 31°
A) Housing Loan
B) Vehicle Loan 171 1.54% 5°
C) Business Loan 4,185 37.78% 1360
D) Gold Loan 1,262 11.39% 41°
E) other Loans 4,243 38.31% 1380
2) Advances
270 2.45% 90
A) Cash credit
Total 11,076 100% 360°

Above analysis of the loans and advances of the society reveals that
the share of business loans and other loans in total loans and advances is very
large. The share of business loan is around 38% while other loans have nearly
the same share. Thus, 76% of the loans and advances are for business and
other purposes. The share of housing loan is 8.53%. Vehicle loans have the
lowest share in total loans and advances while cash credit contributes to only
2.45% share. It is clear that most of the borrowers are fascinated towards the
loans and advances schemes offered by the commercial banks at
comparatively lower rate of interest.

27
 Borrowers generally prefer to getting business loans and other
personal loans from credit cooperative societies. due to less complexities in
getting loans sanctioned. While they turn to commercial banks for getting
housing loans, vehicle loans and cash credit. which are available at lower rate
of interest and attractive other terms and conditions. The society has no
overdraft accounts since there are no current deposit accounts whereon
overdraft facility is made available. The society accepts fixed assets. as
security against loan. Further it offers loans against its fixed deposit receipts
but doesn't accept current assets such as stock, debtors, bills receivable etc. as
security against loans for working capital requirement of the business. As a
result percentage of cash credit in total loans is which is only 2.45%.

28
 4.8 Graphical Presentation of loans and Advances

Loans & Advances

4500
4,185 4,243

4000

3500

3000

2500

2000

1500 1,262
945
1000

500 270
171

0
Housing Loans Vehicle Loan Business Loan Gold Loan Other Loans Cash Credit

Loans & Advances

29
 4.9 Pie Chart - Loans and Advances

Loans & Adavances

Cash Credit Housing Loan
2% 9%
Vehicle Loan
2%
Other Loans
38%

Business Loan
38%
Gold Loan
11%

Housing Loan Vehicle Loan Business Loan Gold Loan Other Loans Cash Credit

30
4.10 Loan-Deposit Ratio (L.D.R.)
The loan to deposit ratio is used to assess the liquidity of the
financial institute. It is expressed as a percentage of total loans to total
deposits. Too high ratio indicates low liquidity to cover any unforeseen
requirement of funds while too low ratio indicates that the society or bank. is
not earning as much as it could be.

The ratio is calculated as under-

Total Loans
L.D.R. = X 100
Total Deposits

The ideal ratio is around 80%.

Let’s check L.D.R. of Dhanwantari Nagari Sahakari Patsanstha Ltd.-

1) Total Loans of the Patsanstha : 11.076 lakhs

2) Total Deposits of the Patsanstha = 15,463 lakhs

11,076
L.D.R. = X 100
15.463

 L.D.R. = 71.62 %

Thus, L.D.R. of Dhanwantari Nagari Sahakari Patsanstha is below ideal

L.D.R. which is 80%.. Hence, it can be concluded that society is earning profit
less than it could be.

31
 CHAPTER - V

FINDINGS AND SUGGESTIONS

5.1. Findings and suggestions

5.2. General findings of the study

5.3. Specific findings of the study

5.4. Suggestions

32
5.1 Findings and Suggestions.
Findings and suggestions are concerned with what we understand
from the study or research undertaken. Findings help understand the topic
under study while suggestions are for the removal of the drawbacks found or
the performance of the area under study The findings and suggestions may be

1) General

2) Specific

5.2. General Findings of the study

1) Dhanwantari Nagari Sahakari Patsanstha is one of the efficient credit
cooperative societies in Satara.

2) The Board of Directors consist of highly educated directors with a clear

vision.

3) The management of the Patsanstha welcomes. suggestions made by the

customers and employees and tries to implement them as far as possible.

4) Due to superior performance the society has maintained 'A' class in Audit
since its establishment.

5) In recognition of the superior performance the society has been honoured

with various prestigious awards like 'Sahakar Bhushan’.

33
5.3. Specific Findings of the study
1) Term deposit is popular product of the society due to the higher rate of
interest.

2) There is no expected growth in saving accounts due to customer's

preference to commercial banks.

3) There are no current accounts in the society as the businessmen and traders
find it more convenient to open current account in Bank.

4) low liquidity in absence of expected growth in Saving accounts or current

accounts.

5) There is no insurance coverage to the deposits.

6) Lower L.D.R. hampering profitability of the society.

7) Limitation on growth of the business due to small size of organization,

tough competition with other financial institutes and regulatory limitations of
RBI and changing rules in Cooperative Societies Act.

8) Absence of Pigmi agents for the collection of daily deposits or recurring

deposits.

9) Low response to Housing Loans, Vehicle Loans and cash credit due to
higher rate of interest.

34
5.4 Suggestions
1) The society should focus on the growth of saving accounts.

2) There should be insurance coverage to deposit to protect the interest of

depositors and to increase the depositor's support

3) The society should have a strategic plan to attract businessmen and traders
to open current accounts

4) The society should have a separate public relation officer (PRO.) to take
its schemes to the public.

5) The society should have a separate customer care cell to handle quickly the
grievances of depositors and borrowers.

6) The society should be at the ideal L.D.R. which is 80%. So that, it could
earn more profits.

7) The society should strengthen its technology base and human resources
base to provide still better customer services.

8) The society should appoint sufficient number of agents for the collection
of daily deposits and recurring pigmi deposits.

35
CHAPTER VI

CONCLUSION

36
 Conclusion

During study, it has been observed that credit cooperative societies

though they play important role in the growth of the economy have to face
many challenges. They have to work in a competitive atmosphere. They have
to work within the guidelines of RBI and the rules and regulations in the
cooperative societies Act. Though, their products and services are better, they
have to struggle a lot for doing well in the business in absence of the support
of brand value. Due to high establishment and maintenance cost of
technology, there are limitations on customer service. Their loan interest rates
are comparatively higher. As a result, there is no expected response to their
loans and advances schemes.

In spite of various challenges, Dhanwantari Nagari Sahakari

Patsanstha Ltd. has created its own position. among credit cooperative
societies in Satara. The credit of successful running of the Patsanstha goes to
the efficient management team and dedicated staff members.

I wish every success to the Patsanstha.

37
 Chapter - VII

BIBLIOGRAPHY

38
 BIBLIOGRAPHY

Books -

1) Research methodology - Dr. Sampada Gulavani

- Mrs. Saroj G Deshmukh

2) Annual Report of Dhanwantari Nagari Sahakari Patsanstha Ltd. for the year
2021-2022

Websites -

1) https://en wikipedia.org/wiki/ List-of-cooperatives

2) www.investopedia.com.

3) https://khatabook.com.

4) www.simplilearn.com.

5) www.questionpro.com

39