Embed Size (px)
DESCRIPTION
Citation preview
SERVICE SECTOR VISIT REPORTSERVICE SECTOR VISIT REPORT
ONON
RAJKOT PEOPLE’SRAJKOT PEOPLE’S
CO-OP. BANK LTD.CO-OP. BANK LTD.
Prepared ByPrepared By :- :- BHIMANI DIVYESH P. (S.Y. B.B.A)
Seat No.Seat No. :- :- 05
Academic YearAcademic Year :- :- 2007-2008
Guidance:-Guidance:- KULDEEP JOBANPUTRA
CollegeCollege :- :- R.P.BHALODIA COLLEGE, RAJKOT.
Submitted ToSubmitted To :- :- SURASHTRA UNIVERSITY
1
2
DECLARARTION
I, the undersigned Bhimani Divyesh P. a student of S.Y.B.B.A. from the
SHREE R.P.BHALODIA COLLEGE of Commerce & Business management
& Computer studies, declare that this project report is prepared by me. I had taken
a help of my college and professor for the purpose of guidance only and to add
that, myself prepare this report.
(Sign. Of Student) (Sign. Of Student)
Bhimani Divyesh P.Bhimani Divyesh P.
PlacePlace :: - RAJKOT :: - RAJKOT
Date Date :: - :: - / /07
3
ACKNOWLEDGEMENT
It is my great pleasure at a time of presenting this report in front of all the concern
authority. In preparing this report I have received very good help & guidance from
several source.
First, of all I am very thankful to the saurashtra university for introducing this
type of learning system as one can be aware of practical life.
Especially, I would like to extend my feeling of gratitude to Mr. R.B.Pandya who
have provide me all the required information for my project report & guide me personally
on banking operations.
I am also very much thankful to my college authority. I am also thankful to my
project guide mr. Kuldeep. for give me very well guidance.
(Sign. Of Student) (Sign. Of Student)
Bhimani Divyesh P.Bhimani Divyesh P.
PlacePlace: - RAJKOT: - RAJKOT
Date:Date: - - / /07
4
PREAFACE
“Today, Human life is become more practical.” Practical learning is as important
as theoretical knowledge. And in education field involvement of practical knowledge is
just like a big change. In the B.B.A. stream practical knowledge of the market &
environment is more important than other books of management, is like a new way of
learning.
And for this type of learning & to prepare my project report for the S.Y.B.B.A I
have selected THE CO-OPERATIVE BANK OF RAJKOT LTD. Popularly known as
people’s bank, a very prestigious & developing firm of the banking sector in our
economy & also it is the life line of the economy.
In regard to this I have visited “Rajkot People’s Co-Operative Bank
Ltd”. I have prepared the report of this bank on the basic of information, which I
collected from various department of the bank I got all the information, which I wanted
from this bank, I noted the matter, which I observed during my visit to “Rajkot People’s
Co-Operative Bank Ltd.” I gathered necessary information regarding various
department Marketing department, Finance department and Personnel department.
5
Sr. No.Sr. No. CONTENTSCONTENTS Page No.Page No.
1.1. General InformationGeneral Information 66
2.2. Human Resource DepartmentHuman Resource Department 1414
3.3. Marketing DepartmentMarketing Department 2828
4.4. Loan & Service DepartmentLoan & Service Department 3333
5.5. Account & Finance DepartmentAccount & Finance Department 4747
6.6. S.W.O.T. AnalysisS.W.O.T. Analysis 6161
7.7. Future PlanFuture Plan 6565
8.8. Conclusion & SuggestionConclusion & Suggestion 6767
99 BibliographyBibliography 7070
INDEX
6
GENERAL
INFORMATION
7
CONTENTCONTENT
SR.NO. PARTICULARS PAGE NO.
1. Baking Sector In India 9
2. General Information Of Bank 10
3. Objectives of bank 12
4. Policies of bank 13
5. Board of directors 14
8
BANKING SECTOR IN INDIABANKING SECTOR IN INDIA
The Co operative banks in India started functioning almost 100 years ago.
The Cooperative bank is an important constituent of the Indian Financial System,
judging by the role assigned to co operative, the expectations the co operative is
supposed to fulfill, their number, and the number of offices the cooperative bank
operate. Though the co operative movement originated in the West, but the
importance of such banks have assumed in India is rarely paralleled anywhere
else in the world. The cooperative banks in India play an important role even
today in rural financing. The businesses of cooperative bank in the urban areas
also have increased phenomenally in recent years due to the sharp increase in the
number of primary co-operative banks.
Co operative Banks in India are registered under the Co-operative
Societies Act. The cooperative bank is also regulated by the RBI. They are
governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative
Societies) Act, 1965.
9
GENERAL INFORMATION OF BANKGENERAL INFORMATION OF BANK
The name of this bank is
Rajkot People’s Co-Operative Bank Ltd.
The audit class of the bank is
“A”
The year of establishment of the Bank is
1998.
The register number of this bank is
29673-1997
The banking RBI license No. of this bank is
UBD/GUJ/1497P
The Chairman\M.D. of this bank is
Shree Shamjibhai Khoont.
Chartered Accountan of this bank is
P.T. Mankadia(C.A.)
Concurred auditor of this bank is
Sanjay H. khakkhar
Accounting year of this bank is
1st April to 31st March
10
The head office of this bank is
RAJKOT.
The registered office of this bank is in RAJKOT.
Rajkot People’s Co-Operative Bank Ltd.
“Sabhasad Bhavan”,
1-Manhar Plot,Gondal Raod,
Rajkot – 360 002.
Ph. :( 0281) 2480942-43-44
Fax : 0281-2480945
There are 5 branches in the Rajkot of this bank .
Accounting year of this bank is
1st April to 31st March
Working hour of this bank is
10:00 A.M. to 5:30 P.M
Off Day - Sunday & approved by negotiable act
The E- mail I.D. of the bank is info@[email protected].
11
OBJECTIVES OF BANKOBJECTIVES OF BANK
Accumulate deposit to the tune of Rs. 100 crores.
Disburse advances to the tune of Rs. 65 crores.
Achieve net profits to the tune of Rs. 100 laces.
Acquires business per employee for Rs. 200 laces for the year.
Reduce cost of deposit to 7%
Bring customers satisfaction to 100%
Reduce customers complains to 100%
Educate customers to bring banking awareness.
Train staff to become more effective.
Update present software.
12
POLICIES OF BANKPOLICIES OF BANK
Bank is committed to achieving the customers’ satisfaction through
1) Providing best services as per norms.
2) Enhancing organization’s image and reputation for quality.
3) Continuously improving service quality.
This commitment is met through nurturing quality culture in the
organization and the by constant adherence to laid down quality management
system.
BANK’S AREA OF OPERATIONBANK’S AREA OF OPERATION
“Rajkot People’s Co-Operative Bank Ltd.” operates through 5 branches
including main branch. This bank has expanded its area of operations to Jamnagar
and Junagadh district, over and above Rajkot region. This bank has geared up all
its procedures to open its branches in these districts.
13
BOARD OF DIRECTORSBOARD OF DIRECTORS
CHAIRMAN\M.D. :: - Shree Shamjibhai Khoont
VICE CHAIRMAN :: - Shree Bhikhalal Kamani
DIRECTOR :: - Shree Meghjibhai Virani
DIRECTOR :: - Shree Parsottambhai Patel
DIRECTOR :: - Shree Gordhanbhai Shingala
DIRECTOR :: - Shree Sureshbhai Kamani
DIRECTOR :: - Shree Premchandbhai Agarwal
DIRECTOR :: - Shree Vallabhbhai Vadalia
DIRECTOR :: - Smt. Bhagvatiben Khoont
DIRECTOR :: - Smt. Meenaben Vaghela
DIRECTOR :: - Shree Harikrishnabhai Ghadia
DIRECTOR :: - Shree Prafulbhai Patel
DIRECTOR :: - Shree Veljibhai Pipalia
GENERAL MANAGER :: - Shree Jagdihbhai Busa
14
HUMAN
RESOURCE
DEPARTMENT
15
CONTENTCONTENT
SR.NO. PARTICULARS PAGE NO.
1. Introduction 16
2. General Meeting 17
3. Qualification Of Directors 18
4. Time Keeping System 19
5. Selection & Recruitment 20
6. Promotion & Transfer 23
7. Personal Record 24
8. Remuneration 25
9. Training & Seminars 26
10. Organization Chart 27
16
INTRODUCTIONINTRODUCTION
The internal department structure of personnel department varies widely
from one company to another; the personnel department has to function as a
medium to establish healthy relationship between the management and the
employee. Organization is formed by the factor of production namely land,
labours, money etc. Middle level management and labourers is the living factor
with the sense of feeling.
“Personnel management is the planning, organizing, direction, controlling
of the procurement, development, compensation, integration and malignance of
people of the purpose of contribution to organization, individual and social goal.”
- EDWARD FLIPPO
Personnel management is the direction and co-ordinate of Human
Relations in the business organization, thereby obtaining maximum production
with minimum of physical and mantel effort, stress and strain on the individual
worker and group of workers and without sacrificing the genius well being of the
employees.
Now a day, proper direction to achieve the goal is carried out by a separate
department that is personnel,” Personnel management is the planning, organizing,
directing and controlling of procurement development, compensation, integration
and maintenance of people for the purpose to contribution, to organization,
individual and social goals.” Personnel department is concerned with training and
development of employees and providing them proper wage and salary.
17
GENERAL MEETINGGENERAL MEETING
After the financial year within three months annual general meeting has
been decided. All the member of bank staff, board of directors is invited to attend
the meeting. Generally the entire general meeting can be of annual general
meeting and special general meeting two types in all kinds of organization.
1. The agenda of the meeting was to note the audited accounts of
bank, and audit report on 31st March,
2. The loonies who could not paid their loan; they can get the
advantages of one time settlement scheme to their sanction application.
The time period is not fixed given to loonies but it is decided in the
general meeting.
3. Small loan holders who are enable to repay their loan amount as a
relief to close their account from bad and doubtful debts reserve to discuss
the suggestion by members & chairman of the bank.
18
QUALIFICATION OF DIRECTORSQUALIFICATION OF DIRECTORS
As we know that the directors are the most important part for any kind of
organization, for be the director of any organization, the person should have some
certain qualification.
1) The member who have at least the balance of Rs.2000 in the bank at the
31st march, so he can be the director of the bank according to the law of
bank.
2) The person who have a membership of bank of 24 months before the date
of election.
3) The age of the person should be above18 years.
4) He should not be the creditor of any kind of organization.
AUTHORITY OF MANAGING DIRECTORAUTHORITY OF MANAGING DIRECTOR
1) To appoint the managers and secretary.
2) To decide the salaries and bonus of particular employee.
3) To do punishment if any mistake done by the employees and to see the
proper way of work to them.
4) To here complains and understand the problems and make the way clear of
work by avoiding these kinds of restrictions.
19
TIME KEEPING SYSTEMTIME KEEPING SYSTEM
“Time & tide waits for none” is the famous saying, keeping this view in
mind a unit has to develop an efficient time keeping system. There are various
benefits that a firm is able to avail only because of discipline in time management
system. To get these benefits that affect the system of time keeping like
production capacity, demand for products etc. After studding all these factors time
schedule are adjusted.
Time keeping system is important for the businessman and employers.
This system can also be used to improve employee relation. People’s bank’s
working hour is 10 a.m. to 5.30 p.m. The employees of this company enjoy one
holiday in a week that is Sunday and holiday which is approved by negotiable act.
20
SELECTION & RECRUITMENTSELECTION & RECRUITMENT
SELECTIONSELECTION :: - :: -
Selection means the procedure of selection in terms of best person and all
with required qualification. This process is negative by nature because it selects
only suitable persons and rejects the other applied.
According to Yoder, “the hiring process is of one or many ‘go, no-go’
gauges. Candidates are screened by the application of these tools. Qualified
applications go on to the net hurdle, while the unqualified are eliminated.”
“Rajkot People’s Co-Operative Bank Ltd.” gives advertisement in the
magazines and receives applications. From that application interview is taken, and
then the person is selected in interview. Finally salary is decided as per the
qualification and ability for job.
SELECTION PROCESSSELECTION PROCESS :: -:: -
Selection is a process by which the qualified personnel can be chosen from
the application selection is process in the hand of management to get qualify and
disqualify applicant by various methods. This process is as follow :: -
Interviews
Primary selection
Final selection
Placement
21
RECRUITMENTRECRUITMENT :: - :: -
“Recruitment is the process of identifying various sources of recruitment
persons in the organization. It is the process of searching and encouraging them to
apply for jobs in organization”. Recruitment has been regarded as the important
function of this department.
Recruitment has been regarded as the most important function of
personnel administration, because unless right the type of people are hired, even
the best plans, organization charts and control system would not do much good.
According to Flippo,” it is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organization. It is often
termed positive in that it stimulates people to apply for jobs to increase the ‘hiring
ratio’ i.e., the number of applicants for a job. Selection, on the other hand tends to
be negative because it rejects a good member of those who apply, leaving only the
best to be hired.”
“Rajkot People’s Co-Operative Bank Ltd.” uses both internal and external
sources of recruitment. When any employee having qualification, ability and
experience works in the unit at lower level and if the place is vacant, the place is
filled by promotion.
22
RECRUITMENT POLICYRECRUITMENT POLICY
According to Yoder,” the recruitment policy is concerned with quantity
and qualifications of manpower.” A good recruitment policy must contain these
elements:
a) Organization’s objectives – both in the short term and long term must be
taken into consideration as a basil parameter for recruitment decisions and
needs of he personnel – area wise, job – family - wise.
b) Identification of the recruitment needs to take decisions regarding the
balance of the qualitative dimensions of the would be recruits i.e., the
recruiters should prepare profiles for each category of workers and
accordingly work out the man specifications, decide the sections,
departments or branches where they should be placed and identify the
particular responsibilities which may be immediately assigned them.
c) Preferred sources of recruitment, which would be tapped by the
organization e.g., for skilled or semi-skilled manual workers, internal
sources and employment exchanges may be preferred; for highly
specialized categories and managerial personnel, other sources besides the
former, may be utilized.
d) Criteria of selection and preferences: these should be based on conscious
thought and serious deliberations. In some cases trade unions may be
consulted in working out the recruitment policy. In others, management
may take the unilateral decision.
e) The cost of recruitment and financial implications of the same.
23
PROMOTION & TRANSFERPROMOTION & TRANSFER
PROMOTIONPROMOTION :: - :: -
Promotion may be defined as, “upward of an employee in an organization,
which commands better wages, better status, higher responsibility & authority etc.
In short a promotion is the transfer of an employee to a job, which pays more
money or one that carries out some preferred status.”
Promotion may be given on the basis of seniority, merits on the basis of
seniority, but here promotion is given on the basis of ability, performance,
capability, merits and qualification.
Rajkot People’s Co-Operative Bank Ltd. does not promote its employees
on the basis of seniority, but promotion is given on the basis of ability,
performance, capability, merits and qualification.
TRANSFERTRANSFER :: - :: -
“Transfer is a horizontal moment of employees from one selected job,
department to another place where the salary, status and responsibility are
remaining same”.
In “Rajkot People’s Co-Operative Bank Ltd.” employees are transferred
from one department to another and from one position to another.
24
PERSONAL RECORD PERSONAL RECORD
In personal record, compete up to date information is maintained about
employees. Every unit have record book for employees in which record
information about employ, leave, promotion, punished men etc.
“Rajkot People’s Co-Operative Bank Ltd.” has record books of
employees. These record books are as follow.
Attendance register
Salary-wages register
Provident fund register
Casual leave register
Bonus register
Others
SOCIAL RESPONSIBILITIESSOCIAL RESPONSIBILITIES
“Rajkot People’s Co-Operative Bank Ltd.” has remained ahead in
fulfilling social responsibilities. “Rajkot People’s Co-Operative Bank Ltd.” has
always remained active for maintaining good health of the people of the society,
by sponsoring “Sharir Santulan Shibirs” and “Yog Shibirs”. Taking into
25
consideration various benefits availed by participants of such programs, we are
successfully organizing such programs every year.
REMUNERATIONREMUNERATION
Remuneration’s main purpose is to maintain equitable remuneration
structure. It is the duty of the firm to pay proper, relative and reasonable amount
to the worker for their service.
“Rajkot People’s Co-Operative Bank Ltd.” is under consideration follow
the time wages (remuneration). This is oldest & most common method of wages
(remuneration). Under this system workers are paid according to the work done
during certain period. Like hour, par day, weekly, monthly or any fixed period of
time.
“Rajkot People’s Co-Operative Bank Ltd.” pays salary (remuneration)
their worker on monthly basis.
26
TRAINING & SEMINARSTRAINING & SEMINARS
Training is the organized procedures by which people acquire knowledge
for a benefit. It is the act of increasing the knowledge and skill of workers for
doing a certain job.
As the trained labours are considered the valuable assets to the
organization training is considered as a vital part of managerial control.
By arranging training programs and seminars “Rajkot People’s Co-
Operative Bank Ltd.” is trying its best to improve the banking skill of the staff,
thereby bring momentum in the bank’s work. And for this, continuous training is
being given to the staff within the premises as well as deputing them to other
institution on regular basis. The Chairman, Vice-Chairman and Members of the
Board of Directors are also taking part various seminars and thereby get
acquainted with various pros and cons of co-operative banking arena.
Thus, good training is provided to the employees who become more
effective and productive after this process.
27
ORGANIZATION CHARTORGANIZATION CHART
MAIN BRANCH
MANAGING DIRECTOR
28
GENERAL MANAGER
MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
CLARK
PEON
OTHER BRANCHES
MANAGER
ASSISTANT MANAGER
CLARK
PEON
CHAIRMAN
VICE CHAIRMAN
MARKETINGMARKETING
DEPARTMENDEPARTMEN
TT
29
CONTENTCONTENT
SR.NO. PARTICULARS PAGE NO.
1. Introduction 30
2. Promotional Activity 31
3. Marketing research 32
30
INTRODUCTION
Today, marketing is spread in every field of like hospitals,
services, goods even politics and many more. In banking sector too
the importance of marketing also can not measurable, still it has not
developed in public sector it is only limited to foreign banks and
private sector. The reason for success of foreign in India is only best
marketing efforts. Today in banking sector there is a cutthroat
competition among public sector, private sector and foreign bank.
Marketing is a human activity directs at satisfying the needs
and wants of customers, there are five stages of bank marketing firstly
marketing g is advertising, sales promotion and publicity, secondly
marketing is smiling and Co-friendly atmosphere, thirdly marketing is
innovation like the ATMs or cheques with drawls on fixed deposits,
fourthly marketing is positioning. When all banks advertise and
innovate, they look alike so, they should try to position themselves
differently, even through symbols, logos or aggressive advertising so
that the customer can distinguee between one bank and another and
finally marketing is analyzing, planning and control.
At Rajkot peoples co-operative bank though there is no specific
marketing department. for marketing of different services but
providing vest services to their customers and getting good customer
satisfaction, and doing such efforts of marketing like promotion
31
activities they are in directly getting benefits of the marketing. Today
they are also planning for such continuous marketing efforts.
PROMOTIONAL ACTIVITIES
Promotion tools are also essential in the bank’s marketing mix.
We need personal selling in customer contact, development, personal
service. And so on. Similarly, bank marketing program need
advertising as mass communication tool. The bank is a sponsor. It
sends a message to prospective buyers (the audience) by means of a
medium (The carrier of the message). An advertisement in bank
marketing is a promise3 a promise of satisfaction to prospects who
buy or use the service offered by the bank or who are willing to
patronize the bank. Banks are using all media of advertisement such
as newspaper, radio television, magazines etc., for advertising their
services and for getting the business. Bank marketing also uses sales
promotion devices such as point of purchase materials, advertising
specialties (ball pens, calendars, diaries, notes pads etc.) brochures
and booklets describing bank services, etc. a bank has also to use
public relation as mode of promotion to build up and maintain its
bright image in the community.
32
MARKETING RESEARCH
Good marketing decisions are not made in a vacuum. Hence,
even in bank marketing. We need marketing research and information
to enable bank executive to make sound decisions. The increase in the
use of marketing research in bank marketing is due to two forces:
competition pressures to be right, and Customer – orientation in
marketing planning and program. Banks are now establishing a
separate marketing organization. Conduction marketing research,
setting up sales training program and adopting sales promotion
divides promotion devices to attach customer we have special bank
advertisement through radio. T.V. and newspapers. Marketing
research may be defines as “The scientific and controlled process of
gathering of none routing, marketing information, helping
management to solve marketing problems.”
As far as it concerned with the marketing research process at
Rajkot peoples co-operative bank. They have been continuously doing
such research from beginning. But one positive point for marketing
research is that they not doing any big expenses for marketing
research and for executives. Bank’s staff member themselves goes to
market and gathers requited information or data. Such information or
data they are collection from direct RBI or other banks. So, by this
way they are getting benefits by using marketing research process.
33
LOAN
&
SERVICE
34
35
CONTENTCONTENT
SR.NO. PARTICULARS PAGE NO.
1. Introduction 35
2. Deposits 37
3. Loans 39
4. Other Services 44
5. Process Of Granting Loan 45
6. Recovery Of Loan 46
36
INTRODUCTIONINTRODUCTION
With years, banks are also adding services to their customers. The Indian
banking industry is passing through a phase of customers market. The customers
have more choices in choosing their banks. A competition has been established
within the banks operating in India.
With stiff competition and advancement of technology, the services
provided by banks have become more easy and convenient. The past days are
witness to an hour wait before withdrawing cash from accounts or cheques from
north of the country being cleared in one month in the south.
This section of banking deals with the latest discovery in the banking
instruments along with the polished version of their old systems.
Banks in India with the way of development have become easy to apply in
loan market. Generally, Loan against Shares, Personal Loan, Home Loan, etc,
Loans is given by almost all the banks in the country:
37
SERVICES AT A BANKSERVICES AT A BANK
DEPOSITSDEPOSITS :: -:: -
Current deposits (account)
Fixed deposits (account)
Saving deposits (account)
LOANSLOANS :: -:: -
a)a) Term LoansTerm Loans :: - :: - b) b) Cash CreditCash Credit :: - :: -
Housing loan Loan to Small Scale Industry
Business loan Others
Vehicle loan
Personal loan
Professional loan
Loan against NSC\KVP\LIC
OTHER SERVICESOTHER SERVICES :: - :: -
In other services, bank provides following services,
Locker system
Demand draft
38
DEPOSITSDEPOSITS
1)1) CURRENT DEPOSIT (ACCOUNT)CURRENT DEPOSIT (ACCOUNT) :: -:: -
While opening this account person or who so ever is going to open this
type of account, he has to make the regular transactions with this account.
Generally, this type of account can be opened by businessmen, companies,
industrialist, and common men etc, who have working capital in his hand and
interested to keep his money safe. Mostly the businessmen open this type of
account because they have to receive and make payments through cheques many
times in a day.
Required Documents To Open Current AccountRequired Documents To Open Current Account :: - :: -
A.A. For partnership firm B. For
proprietorship firm
All partners’ photos. All
partners’ photos.
Copy of partnership deed. P.A.N card Copy
of firm.
P.A.N card Copy of firm. Proof of existing of
firm.
Registration copy (If). Copy of
S.T & C.S.T no. (If).
Proof of existing of firm. Proof of all
partners’ address.
39
Proof of all partners’ address.
A person has to deposit minimum Rs. 3000 in current account. Bank
takes Rs. 300 service charge at the end of the year. If a person wants to close his
current account, bank charge Rs.50 (if a person having cheques book) and bank
will charge Rs. 25(if person is not having cheques book).
2)2) SAVING DEPOSIT (ACCOUNT)SAVING DEPOSIT (ACCOUNT) :: - :: -
It is an ideal account for those who have sufficient money to save.
Generally, common men who save money from his salary and he deposits in to
bank for saving purpose. Saving account is the best way and when ever need of
money occur he can get or withdraw money from his saving account.
If a person wants to open his saving account with a bank, he has to fill up
a firm of the banks saving account, he has to give required documents such as
photo, address proof, license or election card as identity etc, and he has to deposit
minimum Rs. 1,000. If a person wants a new cheques book, bank charges Rs, 50
for every cheques book. While closing a saving account, a person has to surrender
all documents which have already been given by a bank like, cheques book, pass
book, etc.
Rate on saving account is 3.5%.
3)3) FIXED DEPOSIT (ACCOUNT)FIXED DEPOSIT (ACCOUNT) :: - :: -
A person who has spares money for a particular period of time and he
wants to get it as double so for him fixed account is a best way to deposit money.
40
In this account he has to deposit his money for a specific period of time and as a
reward he can get double amount after completion of time. If a person wants to
open his fixed account with a bank, he has to fill up a firm of the banks fixed
account, he has to give required documents such as photo, address proof, license
or election card as identity etc, and he has to deposit minimum Rs. 1,000. While
closing a saving account, a person has to surrender all documents which have
already been given by a bank. A person can get double at 109 months.
LOANSLOANS
A)A) TERM LOANSTERM LOANS :: - :: -
It is one of the major sources of debt finance for a long term project. Term
loans are generally repayable in more than a year but less than 10 years. These
loans are offered by all Indian financial institutions. Term loans are generally
secured through a first mortgage or by way of deposit of title deeds of immovable
properties.
1)1) Housing LoanHousing Loan :: -:: -
Home loan is the latest craze in the banking sector with the development
of the infrastructure. Now people are moving to township outside the city. More
number of townships is coming up to meet the demand of 'house for all'. The RBI
has also liberalized the interest rates of home loan inorder to match the repayment
41
capability of even middle class people. Almost all banks are dealing in home loan.
Again SBI, ICICI, HDFC, HSBC are leading.
Local residential can get housing loan for the purpose of to purchase or
build home. Rate of interest is 10.5% for Rs. 5 lacs and above Rs. 5 lacs; rate of
interest is 11.5%. As a security bank takes the documents of property which is
mortgage by the person. A person, who is grated loan, has to repay loan to bank
up to 5 years.
42
2)2) Business LoanBusiness Loan :: -:: -
A person who is engaged in their business at least from last one year can
get this kind of loan for the purpose of fulfillment of the short term working
capital needs. A business man get loan up to 10 lacs but in special cases bank
allow him to grant above 10 lacs and person has to repay the loan in installments
which should have already been decided. As a security bank takes all documents
of property which is being mortgaged by a person. Rate of interest on this loan is
as under :: -
Up to Rs. 2 lacs :: - 12%
Rs. 2 lacs to Rs. 5 lacs :: - 12.5%
Rs. 5 lacs to Rs. 10 lacs :: - 13%
Above Rs. 10 lacs :: - 14%
3)3) Vehicle LoanVehicle Loan :: -:: -
A person or a businessman who wants to purchase new or old vehicle for
the purpose of the transportation or for personal use can get this kind of loan.
Bank grants this kind of loan up to 85% of the face (quotation) value of vehicle
and person has to repay the loan in installments which should have already been
decided. Rate of interest on this loan is as under :: -
For transport operator :: - 14%
For personal use :: - 13%
43
4)4) Professional LoanProfessional Loan :: - :: -
This kind of a loan is granted to professional persons such as lawyers,
C.A, doctors, etc, for the professional purpose like, to the doctor bank grants this
type of loan to build new clinic, to buy new medical equipments, and so on. Bank
grants this loan up to 10 lacs but in some cases bank grants loan above 10 lacs and
person has to repay the loan in installments which should have already been
decided. Rate of interest on this loan is as under :: -
Up to Rs. 2 lacs :: - 12%
Rs. 2 lacs to Rs. 5 lacs :: - 12.5%
Rs. 5 lacs to Rs. 10 lacs :: - 13%
Above Rs. 10 lacs :: - 13.5%
Up to Rs. 25,000 :: - 13 %
Above Rs. 25,000 :: - 14 %
44
B)B) CASH CREDITCASH CREDIT :: -:: -
1)1) Loan to Small Scale IndustryLoan to Small Scale Industry :: -:: -
A person who has his own business and wants to start his own business as
small scale sector can get this kind of the loan for the purpose of fulfillment of the
short term working capital needs or to purchase new machineries or so on.
A business man can get loan up to 15 lacs but in special cases bank allows him to
grant above 15 lacs and person has to repay the loan in installments which should
have already been decided. In cash credit type loan, person can withdraw money
(up to decided) if there is no money in his account. Bank grants this loan against
the raw material, stock, and any mortgaged properties. The insurance of stock and
mortgaged properties is taken by the bank as a security. Rate of interest on this
loan is as under :: -
Up to Rs. 2 lacs :: - 11%
Rs. 2 lacs to Rs. 5 lacs :: - 11.75%
Rs. 5 lacs to Rs. 15 lacs :: - 12.25%
Above Rs. 15 lacs :: - 13%
45
2)2) Other Cash Credit LoanOther Cash Credit Loan :: -:: -
Bank also grants cash credit to the local residential or to an ordinary
people to fulfill their needs for money. A person can get loan up to 10 lacs but in
special cases bank allows him to grant above 10 lacs and person has to repay the
loan in installments which should have already been decided. In cash credit type
loan, person can withdraw money (up to decided) if there is no money in his
account. As a security bank takes all documents of property which is being
mortgaged by a person. Rate of interest on this loan is as under :: -
Up to Rs. 2 lacs :: - 11.5%
Rs. 2 lacs to Rs. 5 lacs :: - 12.25%
Rs. 5 lacs to Rs. 10 lacs :: - 12.75%
Above Rs. 10 lacs :: - 13.5%
46
OTHER SERVICESOTHER SERVICES
1)1) Locker SystemLocker System :: -:: -
Bank also provides locker system to their customer or peoples. Basically,
bank provides A, B, C - three types of lockers and size of lockers are 6*6, 6*12,
and 12*1 respectively. Bank also charge for locker Rs. 350, Rs.450, Rs. 550
respectively. A person who is going to open locker with bank, he has to deposit
Rs. 5, 500, Rs. 6,500, Rs. 7,500 for A, B, C respectively. Person also has to open
his current account with bank because bank will debit service charge of locker in
his current account.
2)2) Demand DraftDemand Draft :: -:: -
Purchase of demand draft is required to fill up the requisite
application form of bank which contains following columns :: -
Date of the application.
Scroll no.
Name of the drawer bank and its branch
Account type no. and cheques no.
Beneficiary’s name.
Demand draft no. and bank code no.
Amount of demand draft in figures and commission and total Rs.
Purchaser’s name, address, and sign.
Cashier\Clerk and officers initials.
47
PROCESS OF GRANTING LOANSPROCESS OF GRANTING LOANS
Primary InvestigationPrimary Investigation :: - :: -
In primary investigation, bank investigates all the things of the customer
such as, name, address, purpose of loan, amount of loan, assets which is going to
be mortgaged, etc. After knowing all the things about the customer, bank will give
loan form to customer. He has to fill up all the things clearly.
Bank will need some documents for assurance. The one and common
document bank demand is demand promisenary this because customer needs loan.
If bank is granting loan to partnership firm and proprietorship firm following
documents are required.
All Partners’ / Proprietors’ photos.
Copy of Partnership / Proprietors’ deed.
P.A.N card Copy of firm.
Registration copy (If).
Proof of existing of firm.
Proof of all Partners’ / Proprietors’ address.
If bank is granting loan in the form of vehicle loan, bank will try to know
the purpose of getting loan whether it is getting to buy new or old vehicle and
bank also grant loan against the vehicles. If bank is going to grant loan to the
company, bank will demand for registration documents of the company.
After investigating all above things and required documents General
Manager of the bank will decide to grant loan or not. For taking this decision he
may call meeting and General Manager takes an opinion of the others. Thus they
will decide to grant loan.
48
RECOVERY OF LOANRECOVERY OF LOAN
Customer who is being granted loan by bank, he has to repay the loan in
small installments which have already been decided earlier. Customer has to pay
his installment in 1st to 10th of month otherwise he has to pay fine (penalty)
interest 2% more for per day.
If customer does not pay more than 3 installments, bank will issue legal
notice. And though customer will not pay installment bank will claim in court and
generally court will also take decision in favor of the bank then after Bank will
again issue notice of confiscation assets for 30 days. After these entire if customer
will not pay installment bank will issue notice of auction of his assets and bank
will give an advertisement in news paper and after 30 days bank will get its
money from selling assets.
49
ACCOUNT
&
FINANCE
50
CONTENTCONTENT
SR.NO. PARTICULARS PAGE NO.
1. Introduction 49
2. Financial Analysis 50
3. Ratio Analysis 51
4. Financial Report 53
5. Information Of Shares 57
6. Auditor’s Report 58
51
INTRODUCTIONINTRODUCTION
Today, Finance is considered as the “Life Blood of the Business” without
finance no business activity is possible. So for an organization, it must have a
large amount of finance and for this it should have finance department.
Finance management is concerned with the acquisition, financing and
management of assets with some overall goal in mind. Finance management
continuous to develop at an even more rapid pace. Advancement is occurring not
only in the theory of finance management but also in its real world practice.
The finance manager has dynamic role in a modern company’s
development. Until around the first half of century, finance manager primarily
raised funds and managed their firm’s cash and that was pretty much it. Today
internal factors have an increasing impact on the financial manages. Corporate
competition, technological changes volatility in inflation and interest rates,
worldwide economic uncertainty, fluctuating exchange rats, tax low changes, and
ethical concourse over certain financial dealings must be dealt with the
corporation.
Finance management is very important i.e. first to manage financial
resource, then to distribute that finance among the various department according
to their need and lastly has to check whether it is used in right way or not. Thus,
only finance gathering has not become the goal or aim of finance management but
is holds a key position in top management of companies.
52
FINANCIAL ANALSISFINANCIAL ANALSIS
The nature of analysis will differ depending on purpose of the analyst.
Trade creditors are interested in firms’ ability to meet their claims over a very
short period of time. Their analysis will therefore confine to the evaluation of the
firms liquidity position.
Suppliers of the long term debit on the other hand are concerned with the
firms’ long term solvency and survival. They analyze the firms’ profitability over
time, over its ability to generate cash to be able to may interest and repay
principal and relationship between various sources of funds.
Investors who have invested their money in the firms’ shares are
concerned about the firms’ earnings. They restore more confidence in there firms’
that show steady growth in evening. Management of the firm would be interested
on every aspects of the financial analysis. It is their overall responsibility to see
that the resources of the firm are used most effectively and efficiently and that the
firms’ financial condition is found.
53
RATIO ANALSISRATIO ANALSIS
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as
“the indicated quotient of two mathematical impression” and as the relationship
between two or more things. It helps to ascertain the financial condition of the
firm. Ratio analysis is a process of identifying the financial strength and weakness
of the firm.
A financial ratio is a relationship between two variables which are drawn
from the financial statements of business enterprises it is important for there
variables which are related to each other. It is one the financial control tools in the
head of management and is widely used by business.
Ratios as shown above are relative figures reflecting the relationship
between variables. They enable analyst to draw conduction regarding financial
operations. The use of ratios as a tool of financial analysis involves their
comparison for a single ratio like absolute figures, fails to reveal the true position.
For example, if in the case of a firm the return on capital employed is 15% in a
particular year, what does it indicate? Only if the figure is related to the fact that
in the preceding year the relevant return was 12% or 18% can it be informed
whether the profitability of the firm has dedicated or improved. Alternatively if
we know that the return for the industry as a whole is 10% or 20%, the
profitability of the firm in question can be evaluated. Comparison with related
facts is therefore the basis of ratio analysis. Four types of comparisons are
involved ( 1 ) trend ratio ( 2 ) inter firm comparison ( 3 ) comparison of items
within a single year’s financial statement of a firm ( 4 ) comparison with
standards as plans.
54
IMPORTANCE OF RATIO ANALYSISIMPORTANCE OF RATIO ANALYSIS
Importance of ratio analysis are as follows :: -
1) It helps in knowing the liquidity position of a firm.
2) Ratio analysis helps in assessing long term financial viability of a firm.
3) It helps management in evaluating operating efficiency of management &
utilization of its assets.
4) It also helps investors on outsiders in evaluating even all profitability.
5) Ratio analysis helps in inter firm comparison that helps in comparing
firms’ performance.
6) Finally, ratio analysis enables to tale the time dimension into account. In
other words whether the financial position of a firm is improving or
determining over the years.
55
FINANCIAL REPOERTFINANCIAL REPOERT
The directors have pleasure in presenting the 8th report of Rajkot People’s
Co-Operative Bank’s Audited Statement of Accounts of the year ended on 31st
March 2006.
Due to irresponsible attitude of some of the Co-Operative Banks’
management in the last few years, lay men had to suffer immense loss. However,
under the adverse circumstances, Rajkot People’s Co-Operative Bank has kept the
pace with the progress all around and has sustained faith of the people, which is
highlighted from the following information.
DIVIDENDDIVIDEND :: -:: -
As per the provision of the Gujarat Co-Operative Societies Act of
maximum limit of Dividend, Board or Directors recommends 15% Dividend.
Rajkot People’s Co-Operative Bank has shown consistency in maintaining the
same rate of Dividend since inception.
CAPITAL ADEQUACYCAPITAL ADEQUACY :: - :: -
Against the statutory Requirement to maintain capital adequacy ratio that
is capital to risk weighted assets ratio-CRAR at 9% Rajkot People’s Co-Operative
Bank has maintained as high as 11.57%. Higher CRAR suggests high financial
soundness of the bank. The CRAR is an indictor to measure the risk against the
capital.
56
FINANCEFINANCE :: - :: -
The liberalization of the financial sector is the key for the over all
liberalization process. Gradually, the structure of the financial market itself has
begun to change, in the changing Financial Market; Rajkot People’s Co-Operative
Bank has market the progressive growth and profitability both the financial year
2005-2006 which is reflected in the following Financing since inception:
(Rs. In Lacs)
Particulars 31-3-05 31-03-06
Members 13,300 13,550
Share Capital Rs. 216 Rs. 230
Deposit Rs. 8,800 Rs. 9640
Advances Rs. 6300 Rs. 6300
Net Profit Rs. 92 Rs. 97
Working Capital Rs. 10,200 Rs. 10,850
57
DEPOSITSDEPOSITS :: - :: -
The condition of many banks became vulnerable during last few years.
However Rajkot People’s Co-Operative Bank was successful in sustaining the
trust of its Depositors and has sustained the same growth in all adverse
circumstances.
Rajkot People’s Co-Operative bank’s deposits, in comparison to previous
year have increased by 9.51% and reached to Rs.96, 50,00,000 as at 31.03.2006.
The ruse in the deposits is the symbol of trust. The percentage of low cost
deposits to total deposit is rising year by year which is the key for gradual but
steady growth in profitability.
ADVANCESADVANCES :: - :: -
Rajkot People’s Co-Operative bank grants various loans and advances for
the actual needs of the fundamental principles of co-operation. As a matter of fact,
Rajkot People’s Co-Operative Bank is “Big for Small (lay) people and small for
big (rich) people”. Rajkot People’s Co-Operative Bank has always tried to be
helpful to common people, which are 6,300 (in lacs).
Rajkot People’s Co-Operative Bank’s financial portfolio is distributed in
entire economic and varied activities so that changes arising from the market may
not have direct adverse impact on the recovery and economy affairs of the bank.
58
INVESTMENTINVESTMENT :: - :: -
Out of total investment of Rs. 19, 70, 00,000 of Rajkot People’s Co-
Operative Bank at 31.03.2006, Rs 18, 99, 00,000 has been invested in various
central government securities. The face value of the investment is Rs. 19, 00, 00,
000 and market value of the investment is Rs. 19,11, 00,000.
Rajkot People’s Co-Operative Bank has adopted the policy of investment
as directed by the reserve bank of India from time to time. Accordingly, entire
investment is kept in RBI’s SGL Account. Rajkot People’s Co-Operative Bank’s
total investment is more than statutory requirement.
59
INFORMATION OF SHAREINFORMATION OF SHARE
SHARE CAPITALSHARE CAPITAL :: - :: -
Last year there were 13,280 members. This year it has reached to 13,550
in numbers. During the year 2005-2006, total share capital gone up to Rs. 2,
30,00,000 which is 6.02% higher than the previous year’s figure. An increase in
number of members is the sign of success of the bank.
SHAREHOLDINGSHAREHOLDING :: - :: -
If a person who wants to become share member of the bank, has to buy the
shares of that bank. He has to fill up form of the bank. Bank collects the share
application form, membership fees and share application money.
Board sanctioned the share application and provides membership member
and also provide an identity card. Now, the person becomes a permanent member
of this bank.
60
TRANSFER OF SHARETRANSFER OF SHARE :: - :: -
If any share holder wants to transfer his share in favor of any person, he
has to fill up share transfer form of the bank in favor of others. He has to pay
transfer fees and submit original share certificate to bank and identity card which
has already been given to the share holder and bank will transfer his share on
name of another person.
SHARE CERTIFICATESHARE CERTIFICATE :: - :: -
Bank issues the share certificate to share holder and identity card. The
share certificate is approved by the Co-Operative sector. In which such things are
covered as Bank shareholder No., Sr. No., Certificate No. signed by the of bank
authority. If a person who deposits Rs25, 000 in the account of the bank, bank
will give him a share certificate.
RESERVES AND FUNDSRESERVES AND FUNDS :: - :: -
Various reserves and funds of Rajkot People’s Co-Operative bank has
reached to the level of Rs. 7,50,00,000 as at 31.03.2006, which is 40.33% higher
than the previous year’s figure. Constant rise in various reserves and funds is also
a land mark of a successful and sound bank.
61
AUDITOR’S REPORTAUDITOR’S REPORT
We have audited the balance sheet as on 31.3.2006 and the profit & loss
account for the year ended on 31.3.2006 of Rajkot People’s Co-Operative Bank
Ltd. With reference to our audit memo and audit note we hereby report as follow:
1) It is bank management duty to prepare the said financial statement our
duty is only to give opinion about the genuineness of the informative data
disclosed in the said statements.
2) We follow the rules and regulation of the existing accounting standards for
the said audit purpose. It is to be verified that the said financial statement
are true and the information and figurative data disclosed are genuine in
all respect.
3) As per our opinion all the information and explanations provided to us are
disclosed in bank’s books and as per that we report as follows:
a) The balance sheet as on 31.3.2006 and the accounting note there in
reflect the actual financial position of the bank all the required
information is included in it and it is properly prepared.
b) The profit and loss account for the year ended on 31.3.2006
reflects the actual profit of the bank.
62
4) The information and clarifications required by us promptly provided to us
and we found them satisfactory.
5) The transaction of the bank observed by us are lawful and as per rules and
regulation of the respective law.
6) As per our opinion all mandatory financial records to be maintained are
properly maintained by the bank.
7) The NPA classification and the provisions thereof of the bank are as per
the norms of income recognition and provisions prescribed by Reserve
Bank of India.
Rajkot People’s Co-Operative Bank Ltd. satisfies all the needs of auditors.
The audit class of this bank is “A” and the audit grade of this bank is “1”.
63
S.W.O.T
ANALYSIS
64
SS == StrengthsStrengths
WW == WeaknessesWeaknesses
OO == OpportunitiesOpportunities
S.W.O.T.ANALYSIS
OPPORTUNITES
WEAKNESSES
STENGTHS
THREATS
65
TT == ThreatsThreats
STRENGTHSTRENGTH :: -
This bank is very reputed in local (Rajkot) area.
Professional management & co-operate team spirit.
Strong brand equity in local (Rajkot) area.
Fully computerized.
Profitability & sound liquidity.
Branches in all most developed part of Rajkot.
No mistake in regular transactions can be found because of small
network.
Against the statutory Requirement to maintain capital adequacy
ratio that is capital to risk weighted assets ratio-CRAR at 9% Rajkot
People’s Co-Operative Bank has maintained as high as 11.57%.
WEAKNESSESWEAKNESSES :: -
Bank is not performing marketing activity because lack of
marketing expertise.
Lack of modern management concepts and sometimes
communication gap can be found which indicates lack of professionalism.
Bank is not providing A.T.M. facility in the recent developed era
and Bank is not fully developed in modern era.
66
Lower volume of advances due to higher rate of interest may affect
the expansion of the organization.
Not reputed at national level and less no. of the branches.
OPPORTUNITIESOPPORTUNITIES :: -
Bank can open branches at state level in near future.
Number of branches can be increased in all over nation next 5 to 8
years.
Bank can introduce new services like, NRI loan, ATM, student
account with minimum Rs. 100 etc.
Bank can perform marketing activities by media.
THREATSTHREATS :: -
Changes in government policies and in rules and regulation
regarding bank can be disturbed in regular services of bank.
Crises in the Co-operative banking sector can disturb the bank
progress.
All the depositors may withdraw their money from bank because
of any wrong rumors against bank.
67
FUTURE
PLANS
68
FUTURE PLANSFUTURE PLANS
Rajkot people’s co-operative bank wants to starts new branches in
different districts of Gujarat and as possible, may start at India level also. People’s
bank may also provide ATM facility if possible. People’s bank wants to develop
close relationship with individual and depositors. People’s bank also wants to
maintain growth and wants more growth. People’s bank may provide various
types of new loans like, student loan, NIR loan, and many more policies.
Generally, People’s bank mainly focuses on starting new branches in various
place of India.
69
SUGGESTION
&
CONCLUSIO
N
70
CONCLUSIONCONCLUSION
From the bank’s visit I learn a lot. Now I know that how the theoretically
aspects are applied in the industries.
I had found that all the staff members and workers are working in a co
ordinates manner and in a planned way and they are more concentrating about
their work and diversifying their efforts towards the desired target. Due to
unprecedented trust and co-operation of the members and customers as well as
continuous efforts put in by the management and the staff of Peoples Bank has
been able to reach to the new heights of success.
So, at the end I wish “RAJKOT PEOPLE’S CO-OP. BANK LTD.” and
”ALL THE BEST” to get desired success in the future.
71
SUGGESTIONSUGGESTION
Bank is not performing marketing activity because lack of marketing
expertise for this bank should appoint skilled person who has a marketing
knowledge. Bank is not providing A.T.M. facility in the recent developed era and
many others facilities which are being providing by other banks so bank should
try to provide or start this facility and other policies in near future. Bank has not
large net work and not fully developed so bank should open new branches in
different states of the India.
72
BIBLIOGRAPHY
73
BIBLIOGRAPHYBIBLIOGRAPHY
Web SiteWeb Site :: -:: -
www.google.com
www.rbi.com
Personnel Management Ashwathappa
C.B. Mamoria
Marketing Management Phillip Kotler
S.A. Sherlekar
Finance Management I. M. Pandey
Annual Report of the Bank (2005)
74
75
![Credit Management Rajkot Nagarik Sahakari Bank Ltd[1]. - Rajkot](https://img.pdfslide.net/doc/110x75/5467aa80b4af9f3a3f8b5905/credit-management-rajkot-nagarik-sahakari-bank-ltd1-rajkot.jpg)
