A Project ReportOn
“CREDIT MANAGEMENT AT SERICULTURIST’S CUM FARMER’S SERVICE CO-OPERATIVE BANK LIMITED”
Submitted by
CHANDRA .GSUSN: 1SP11MBA09
Under the guidance of
Internal Guide External GuideMs .Preethi .M S, Lecturer Mr. Narayanaswamy Dept of Management Studies Manager SCFS CO-Operative Bank S.E.A.C.E.T, Bangalore-560049 Hoskote-562114
Definition and Meaning of co-Operative Banking:
A co-operative bank is a co-operative organization engaged in banking function of acceptance and deposit and lending credits.
The co-operative bank and societies perform and importance role in meeting in requirements of people in rural areas co-operative banks of district entities by themselves with separate jurisdictions and independent of board of directors.
Aims of co-operative banks Types of Co-Operative Banks: Agriculture co-operative banks. Non-agriculture co-operative banks.
INDUSTRY PROFILE
Backgrund and Inception: S.C.F.S co-operative bank limited is a premier private sector Indian bank with a heritage of over 36 years and over 3 million satisfied customers.
Started in the date 13/09/1976 as the name of Sericulture’s cum farmer’s service Co-operative Bank, Hoskote town in the date of 26/02/1998.
Vision & Mission: Mission Statement “obviously accepting the deposits and lending it to its
customers, as and when the depositors demand for their money giving back to them.”
COMPANY PROFILE
“The current vision of the bank is to increase the deposits, issue the crop loans, providing cash credit loans, increasing the present share investment, provide medium term loans, non-agricultural loans, and the most important may be collecting back the loan amounts given to the customers“
Area of Operation: Hoskote kasaba Hobli 41 villages limited Area. Deposits: Rs 1,106.84 Lakhs. Working Capital: Rs 1,557.84 Lakhs. Branches: 10 Branches with a Head Office. Fixed Assets: Rs 47.37 Lakhs.
Vision Statement
KCC (kissan cash credit) LOAN : The Kissan Credit Card introduced in the year 1997-98 aim at providing adequate & timely credit supports from the banking system to the farmers for their cultivation needs in flexible & cost effective manner.
Tractor Loan: Minimum 5 acres land should be there Hypothecation to the bank in RC book Insurance coverage.
Personal Loan (PSL) :On the basis of salary on percentage 5%, 10%. Gold Loan:Market Value of the gold on 70% of
loan authorized apparel recommended amount.
SCFS CO -Operative Products:
Members limit from 10-20 max Unregistered group Loan on the basis of capital of SHG i.e. 1:5 Limit 30,000-6, 00,000 Max Self employment.Work Flow Model
SHG & SSHG:
CO-OPERATIVE BANK HEAD OFFICE
BRANCHES
PACS
FARMERS
MCKENSY’S 7S FRAMEWORK
Mckinsey model consist of 7-s they are Structure(virtual organization )Skill (competencies )Style (culture and leadership )Strategy (corporate ,business ,product or market )System (process )Staff (empowerment )Shared values (mission and goal)
SWOT ANALYSIS Strengths: Weakness:
Supported by government in its functioning.
Open, proactive ,teem based and learning
organization
5 decades of experience in the fields of
banking
Concentrates mainly on rural agriculture
development
No internet & mobile banking.
Less advertisement
Operates only in regional level only
Opportunities: Threats:
Enhancement of Providing ATM facilities
Providing internet and mobile
banking facilities
Providing life insurance schemes
Easy policies
Less documentation for different
types of loans
Updating facility to their customers
LEARNING EXPERIENCE Project work is the practical orientation program which every
student has to undergo as per part the academy .This work enriches the practical knowledge, about the functioning of the organization. The scope of the project covers the various aspects of an organization like how they work authority responsibility, distribution and functioning of different departments.
It was a great opportunity for me to carry out a project work with Co-operative Bank. During this period I was exposed to many of the banking concepts, terms, process and systems. Concepts which I learnt during my academy theoretically were been experienced practically in the bank.
Basic management concepts such as planning, organizing, directing and controlling were implemented smoothly in the bank.
GENERAL INTRODUCTION Introduction to Finance: Finance is a life-blood of every business. At present, we cannot think of an economy without money
because an economy without money cannot function as effectively, efficiently and smoothly. Meaning of Finance: Finance is the master key, which provides access to all the
resources for being employed in manufacturing activities. Finance is the art raising and spending of money.
Every business concern requires money or finance to commence its operations to continue its operations and for expansion or growth.
Introduction to Credit Management:
Advances play an important role in the gross earnings and net profit of
banks.
The basic function of a bank irrespective of type is to enable individuals &
business enterprise to purchase of goods & services.
Consumers demand credit to acquire goods for which they pay on a future
date.
Function of modern banks, lending with security is the most important
function.
The proper management of loans & advances is known as
“MANAGEMENT OF LOANS & ADVANCES IN BANKS”.
Credit management not only plays an important role in
gross earnings of banks, but also promotes the economic
development of the country.
All type of business activity including trade, industry &
agriculture depends on bank finance. Banks assists in
creating more employment & thus helps in raising the
standard of living.
Credit quality of the bank is one of the most important
criteria in establishing the credit worthiness of a bank
Scope of the Study:
The study “CREDIT MANAGEMENT” aims to covering the process of financing
and managing credit. The study of credit management is applied in banking and
financial institutions.
The scope of the study is limited to the data of THE S.C.F.S CO-OPERATIVE
BANK LIMITED.
The scope of the Credit Management of the S.C.F.S Co-operative Bank covers the
Comparison , of assets and liability of current year with the previous five years.
The study is exclusively conducted at THE S.C.F.S CO-OPERATIVE BANK
LIMITED.
The study is confined to finance department.
The study is limited only to Comparative analysis, Comprehensive analysis,
and growth analysis.
Objective of the Study
Self-help and co-operation among the members and
depositors of bank.
study the position of various loans and advances.
Study the policy of borrow or raise money.
Study the various types of loans schemes offered and to
analyze their growth.
Study about the reasons contributing towards the growth of
the loans and advances.
Methodology and Data Collection: For analysis of investment structure, many methods are available such
as comparative financial position of the bank, profit and loss account, balance sheet etc,
The technique selected for the study includes table & graphs relating to the credit methodology.
Sources of Data:There are two type of sources of data collection Viz;.
Primary data. Secondary data. Primary Data:Short interviews with the branch managers, Employees and customers
of the branch. Secondary Data:
Accounting records like registers, annual records, and audit reports and inspection files are the internal secondary data.
A manual, journals, magazines and text book is collection the external secondary data.
FINDINGS, SUGGESTION, AND CONCLUSION
SUMMARY OF FINDINGS:
The bank has no regular participation in call money markets; it is
mainly dependent on the surpluses of the bank.
The bank is not maintaining any particular fund flow statement.
The bank’s total expenses are met out of profits made.
It is observed that Saving Deposits and Fixed Deposits constitute a
major part of total deposits.
The bank has to concentrate more on recurring deposits, saving
SHG deposits.
Continue…….
PRIMARY OF FINDINGS:
It is observed that the credit operation is fluctuation in recovery.
The bank shows various sales increasing in year by year.
The bank recovery in year by year continuously increasing.
Fixed & saving bank deposits are continuously increasing their deposits.
Saving SHG deposits are continuously increasing in their deposits year by year.
In comprehensive analysis, the fixed, saving deposit is varying year by year.
To observe the loans are increasing in vehicle, gold loan and gradual increase in
kissan credit card
The SCFS co operative banks interest rate 13% of overall loans except kissan
credit card interest rate only 1%.
The percentage of growth of the SCFS Co-operative Bank has been
fluctuating year by year.
The loans provided by the bank such as Gold loan and vehicle loan are
rapidly increasing constantly. The bank has to concentrate more towards on
short-term loans, medium term loans and long-term loans.
SUGGESTION:
The bank should attract more and more on recurring deposits, saving SHG
deposits by providing good services when compared to the other banks.
The bank should provide its customer advanced services such as E-
banking, Tele-Banking, ATMs services Etc., so that more and more
customers are attracted. That helps the bank to lend to higher level and in
turn will result in increasingly its profitability.
The bank should increase its facility towards short-term
loans to maximum extent, so that it makes possible for the
bank to increase its profitability.
The bank should increase its branches throughout the state
for its future growth. So that it may help the bank to extends
its valuable services to the customers.
The Hoskote SCFS co-operative Banks must provide ATMs
services to provide better services to customers.
If the bank has to attract more customers and more
transaction by providing good services to the customer
The bank can provide advances and loans to the general public for
the following purposes:
Small-scale and cottage industries.
Self-employed person or young entrepreneurs.
Increase short-term and long-term deposits by providing higher
rate of interest.
The procedure in sanctioning the loan is to be reduced.
The bank has to provide agriculture loan at interest rate for all
agricultural activities.
CONCLUSION: The credit management process carried The credit department
thoroughly analysis the credit requirement of the company and the capacity to service the debt.
The credit appraisal passes through various stages and evaluations before it is appraised. In early days lending were provided in less numbers because the formalities for sanctioning and the interest rates were too high. However, after globalization the banks have reduced the formalities as well as interest rates on various loans and advances.
The system module of SCFS co-operative bank at present is functioning well. It gave me a good insight in to the whole process of sanctioning loan and difficulties that are faced in dealing with the client.