A SUMMER TRAINING REPORT AT AGRICULTURE LOAN

CENTRAL CO-OPERATIVE BANK

Submitted in partial fulfillment of the Requirement of
Master of Business Administration (MBA) Submitted To. Mrs. Navpreet Kaur Assit. Prof CTIMIT (Jalandhar) Submitted by. Amandeep Kaur MBA 3rd Roll No. 104372247638

PREFACE

An employee when joins the organization is just a raw individual, who does not possess the desired level of skill and knowledge to produce the standard output. Also, the employees are required to be up to date according to the technological changes. To achieve these objectives some kind of training is 1

required. In other words the organization needs to maintain a viable and knowledgeable work force to meet the current and future challenges. For this training is the only medium/method/weapon by which organization can achieve the objectives. So training is a continuous process, which exist till the organization sustains. In this session I took training in THE CENTRAL COOPERATIVE BANK, in loan section of that bank in which I got the chance to know the procedure by which bank lends money to its members. Since it is a cooperative bank so it gives loan to its members only, hence an applicant has to become member of this bank before borrowing money from it. The project work about the survey is a small piece of research work in various aspects of the training. While carrying out I got opportunities to interact with employees at various levels and the people which enhanced my practical knowledge and experience in regard to the topic. In this report I have shown the loans provided by the bank and its recovery procedure .I also include current facts and figures related to the topic.

ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of those who have directly or indirectly helped me in the successful completion of this project. I present my sincere thanks to Mr. Parminder Singh (Branch Manager, Jalandhar) who allowed me to take training at CO-OPERATIVE BANK. I would also like to thank CO-OPERATIVE bank Staff for their wonderful support & inspirable guiding.. Last but not the least I am indebted to my PARENTS who provided me their time, support and inspiration needed to prepare this report. 2

Date: Place: -Jalandhar Signature

DECLARATION
I undersigned Amandeep Kaur student of MBA 3rd semester declare that I have done the project on Agriculture Loan at CO-OPERATIVE BANK LTD. has been personally done by me under the guidance of Mrs. Navpreet Kaur (Jalandhar) in partial fulfillment of MBA Program during academic year-2010-12. All the data represented in this project is true & correct to the best of my knowledge & belief. I also declare that this project report is my own preparation and not copied from anywhere else. Date

Signature Amandeep Kaur

CERTIFICATE
I hereby certify that AMANDEEP KAUR student of MBA Sem. III has completed project work
entitled as ______________________________ under my guidance. As per my knowledge this is his/her original work based on available data and for partial fulfillment of MBA program.

Date- Name _______________________

Name Signature ______________________

Content

Page No. Preface Acknowledgement Declaration Certificate Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Introduction of the topic Company Profile Objective of the study Research Methodology Data analysis And Interpretation Findings Limitations Recommendation and Suggestions conclusion Bibliography Annexure

INTRODUCTION OF THE TOPIC

Agricultural Loans:
Co-operative Bank especially given only to the farmers or owners of agricultural land for their welfare and prosperity. The maximum limit of loan amount is upto the exposure limit of bank. Loans are also given for agricultural activities. Terms and conditions are differ according to size of land, area, crop yield as per the guidelines by NABARD & RBI Repayment schedule of loan amount is drawn up as per the borrowers repaying capacity (Agricultural land to be purchased is mortgaged with the bank (Registered mortgage) (Surety asked by the bank) (Kindly contact your nearest branch for further details.) (Kindly refer to our separate interest section for current applicable interest rates which are subject to changes from time to time) (Other documents can be asked at the time of sanctioning of loans)

COMPANY PROFILE

Introduction of co-operative banks

A co-operative bank is a financial entity which belongs to its members, who are at same time the owner and the customer of their bank. Co-operative bank are often created by personal belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loan, deposits, banking accounts). In India co-operative banks are regulated with RBI and governed by banking regulation act 1949 and co-operative societies act 1965. Co-operative banks are deeply rooted inside local areas and communities. They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities. By increasing banking access in areas or markets where other banks are less present, farmers in rural areas, middle or low income households in urban areas - cooperative banks reduce banking exclusion and foster the economic ability of millions of people.

WHAT IS BANK?
To a layman, a bank is one that accepts deposits from public and lends money. Few DEFINATIONS of bank are discussed below:-

THE CONCISE OXFORD DICTIONARY

Bank collects money from those who have it to spare or who are saving it out of their income, and It lends this money to those who require it. This definition brings out the two important functions of a banker namely, acceptance of deposits and lending

History of co-operative banks in India

The bank was formed in 1872 in the city Manchester in UK. The co-operative banks in India have a history of all most 100 years. The co-operative banks are an important constituent of the Indian financial system. Co-operative banks in India are registered under co-operative societies act. The cooperative bank is also regulated by RBI. They are regulated by the banking regulations act 1949 and banking law (co-operative societies) act, 1965. These banks were conceived as substitutes for money lenders. The RBI appointed a high power committee in May 1999 under the chairmanship of Shri. K. Madhava Rao, Ex-Chief Secretary, Government of Andhra Pradesh to review the performance of Urban Co-operative Banks (UCBs) and to suggest necessary measures to strengthen this sector. With reference to the terms given to the committee, the committee identified five broad objectives: To preserve the co-operative character of UCBs To protect the depositors interest To reduce financial risk To put in place strong regulatory norms at the entry level to sustain the operational efficiency of UCBs in a competitive environment and evolve measures to strengthen the existing UCB structure particularly in the context of ever increasing number of weak banks RBI has extended the Off-Site Surveillance System (OSS) to all non-scheduled urban co-operative banks (UCBs) having deposit size of Rs. 100 Crores and above.

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VISSION
1) Providing the loan to the strategies societies. 2) Starting the new schemes to the co-operative societies to recover the N.P.A (non performing assets). 3) Opening the education centre for co-operative societies to improve / increase the business through giving them proper training & suggestions. 4) Providing the loans for new schemas time to time. 5) Repairing the plans for encouraging & awarding the employees of the Bank

MISSION
Mission/Target of the bank is to help the self helped groups by providing those loans at low rate. Providing the education to the workers/employees of the cooperative societies and managing the financial status of the cooperative societies 1) Achieving the schedule status for the bank. 2) Providing the retail banking to the customer with the help of information both.

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Establishment
Co-operative banks perform all the main banking functions of deposit mobilization, supply of credit and provision of remittance facilities. Co-operative banks belong to the money market as well as to the capital market. Co-operative banks provide limited banking products and are functionally specialists in agriculture related product. However Co-operative banks are provide housing loan and other loan also. UCBs provide working capital loans and term loan as well.

Features
vote Profit allocation: - Profit is usually allocated to members which is related to the number of shares subscribed by each member. Customer-owned entities:- In the Co-operative banks the need of the customer meet the Democratic member control:- Co-operative follows the principle of one person, one needs of the owner, as Co-operative bank members are both.

Types of Co-operative Banks

The co-operative banks are small-sized units which operate both in urban and non-urban centers. They finance small borrowers in industrial and trade sectors besides professional and salary classes. Regulated by the Reserve Bank of India, they are governed by the Banking Regulations Act 1949 and banking laws (co-operative societies) act, 1965. The Co-operative banking structure in India is divided into following 5 components:

Primary Co-operative Credit Society

The primary co-operative credit society is an association of borrowers and non-borrowers residing in a particular locality. The funds of the society are derived from the share capital and deposits of members and loans from central co-operative banks. The borrowing powers of the members as well as of the

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society are fixed. The loans are given to members for the purchase of cattle, fodder, fertilizers, pesticides, etc.

Central co-operative banks

These are the federations of primary credit societies in a district and are of two types those having a membership of primary societies only and those having a membership of societies as well as individuals. The funds of the bank consist of share capital, deposits, loans and overdrafts from state cooperative banks and joint stocks. These banks provident finance to member societies within the limits of the borrowing capacity of societies. They also conduct all the business of a joint stock bank.

State co-operative banks

The state co-operative bank is a federation of central co-operative bank and acts as a Watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. The state cooperative Banks lend money to central co-operative banks and primary societies and not directly to the farmers.

Land development banks

The Land development banks are organized in 3 tiers namely; state, central, and primary level and they meet the long term credit requirements of the farmers for developmental purposes. The state land development banks oversee, the primary land development banks situated in the districts and tehsil areas in the state. They are governed both by the state government and Reserve Bank of India. Recently, the supervision of land development banks has been assumed by National Bank for Agriculture and Rural development (NABARD). The sources of funds for these banks are the debentures subscribed by both central and state government. These banks do not accept deposits from the general public.

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Functions of co-operative banks

Co-operative banks also perform the basic banking functions of banking but they differ from commercial banks in the following respects Commercial banks are joint-stock companies under the companies act of 1956, or public sector bank under a separate act of a parliament whereas co-operative banks were established under the cooperative societys acts of different states. Commercial bank structure is branch banking structure whereas co-operative banks have a three tier setup, with state co-operative bank at apex level, central / district co-operative bank at district level, and primary co-operative societies at rural level. Only some of the sections of banking regulation act of 1949 (fully applicable to commercial banks), are applicable to co-operative banks, resulting only in partial control by RBI of co-operative banks and Co-operative banks function on the principle of cooperation and not entirely on commercial parameters.

DEPARTMENT OF BANKING
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Human Resources Management

Human Resource Management function that helps managers recruit, select, train and develop members for an organization. Obviously, HRM is concerned with the peoples dimension in organizations. Work force of an Organization is one of the most important inputs of components. It is said that people are our single most important assets. Because of the unique importance of HUMANRESOURCE and its complexity due to ever changing psychology, behavior and attitudes of men and women at work, in all business concerns, there is one common element. I.e. Human personnel function, i.e., manpower management function is becoming increasingly specialized. The personnel function or system can be broadly defined as the management of people at work management of managers and management of workers. Personnel function is particularly interested in personnel relationship and interaction of employees-human relations. In a sense, management is personnel administration. Management is the development of people, and not mere direction of material resources. Human capital is the greatest asset of a business enterprise. The essential ingredient of management is the leadership and direction of people. Each manager of people has to be his own personnel man. Personnel management is not something you really turn over to personnel department staff.

Responsibilities of Human Resource Department.

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 HRD maintain daily attendance record through branch manager via E-mail. Take decisions for approval regarding leave notes. He takes the decision related to the recruitment, selection and training of the candidates. He talks to the consultant related to the recruitment of the qualified candidates. He also does screening of the candidates, shortlist the candidate and takes the first round of the interview He maintains the database of the candidates to come for an interview. He also maintains personal file of each employee. He also completes the joining formalities of each new employee. They are taking surprising visit in every branch and collects information about employees. He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager.

Human Resource planning

This is handled by doing the planning at the beginning of every year. At the end of the year, the Human Resource department from each Branch receives the requirement for the person for whole year. Then the planning of recruitment and training is done by training manager and recruiting manager which is approved from Head of HR Department.

Recruitment
Recruitment is a process of searching for prospective candidates for the given job in the industry. As we know it is very important for an industrial concerns to have efficient and effective personnel with right quality and at right time and at right place available whenever they are needed. Every organization needs employee time by time because of promotion or retirement of an employee. For this purpose an organization need to search for the right candidate. And so it needs to encourage this type of right candidates whenever they require.

Sources of Recruitment
Personal data of candidates and data bank maintain by the HR. Department. Campus Recruitment. O Companys own website. 16

 O Placement consultants. O Advertisement in the news papers like Times of India, Gujarat Samachar. Employee reference.

Motivation
Motivation is willingness to do something conditioned by this actions ability to satisfy some need. Motivation is given by the responsible person, like branch manager or team manager for better performance in the department.

Selection
Selection is the process of taking individuals out of the pool of job applicants with requisite qualifications and competence to fill jobs in the organization. It is define as the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job. Selection is based on probation base; they are taking experienced person for 6 months Probation and for fresher the probation period is 1 year. While the selection of the senior level post, is taken by head office at Mumbai.

Disputes and their resolution

Disputes are common in organization. In practice, disputes mainly relate to the target only because if any employee is not achieving target he/she will not eligible for incentive which creates frustration among them. Every employee is free to talk to the head of the particular department if they have any problem related to the job. Firstly, the problem is solved by the head of the particular department and if the problem does not solved by the head of that department then it is addressed to the HR Manager.

Marketing Management

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The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure. "We are going to demonstrate the advantages of net banking and mobile banking, as these concepts are relatively new to people living in smaller towns and cities," Bank can measure the result of a campaign through the sales that they generate and the customers that are added. There is a clear return on investment, which from a functional point of view gives the team a stronger voice. Bank has also been able to reduce their ad spends by about 10-15 per cent and has also reduced the cost of acquisition Bank's focus in future would be to enhance its database marketing initiatives. Bank plan to invest close to Rs 12 crore to create the environment that is required to support customer intelligence that leads to data based marketing.

Market Segmentation
Market Segmentation is defined as the process of splitting customers, or potential customers, in a market into different groups, or segments, within which the customers share a similar level of interest in the same or comparable sets of needs satisfied by a distinct marketing proposition; it is also explained as a marketing technique that targets a group of customers with specific characteristics, i.e. a particular group that has its own distinct customer profile and buyer characteristics so that for marketing purposes, it can be targeted separately from other segments of the market. Market Segmentation can be done on the basis of the location (Geographic Segmentation); on the basis of age, income, gender and other measurable factors (Demographic Segmentation); on the basis of lifestyle, likes, dislikes, taste and preferences (Psychological Segmentation); and according to the history, loyalty and responsiveness (Behavioral Segmentation). Philip Kotler mentioned five criteria for an effective segmentation which states that Segmentation should be: -

1. Measurable: - it should be possible to determine the values of the variable used for the
Segmentation.

2. Relevant: - it should justify the expected profits and the growth potential. 3. Accessible: - the target customers must be reachable and servable for the organization.
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4. Distinguishable: - the target audiences must be diverse and able to show different reactions to
different marketing mix.

5. Feasible: - the firm must have an ability to draw an effective marketing program for its customers.

Positioning Strategy
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person. But positioning is not what you do to a product. Positioning is what you do the mind of the prospect. That is, you position the product in the mind of prospect. A companys differentiating and positioning strategy must change as the product, market, and competitors change over time. Once the company has developed a clear positioning strategy, it must communicate that positioning effectively.

Target Marketing
Market Specialization is a business term meaning the market segment to which a particular good or service is marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other combination of demographics. It is generally studied and mapped by the organization through list and reports containing demographic information that may have an effect on the marketing of key products / services. A product focusing on a specific target market contrasts sharply with one, following the market strategy of mass marketing. Targeting can be done by the firms by adopting a logical and systematic methodology / Steps. Which are as follows: STEP 1: - Identify the potential buyers: - Through proper market research and market segmentation (it is the process of pulling apart the entire market as a whole and separating it into manageable disparate units based on various demographic, political, economic and social factors; it can also be customer / product / competition related segmentation). STEP 2: - Select the target audiences: - The factors that influence Targeting are the Internal and External Environment. Internal environment includes the mission, vision, values and objectives of the firm; whereas; External factors are the social, cultural, economic, global, demographic, natural, task,

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technological, political and legal environment. Through appropriately compiling the customers profile to decide the 4 Ps Product, Price, Place and Promotion and obtain the demographic, psychological, geographic and behavioral information of the buyer. Targeting is deciding the potential buyers, products to be offered and appropriately positioning each product to the segment.

STEP 3: - Proper positioning of the Product: - After developing an appropriate segmentation and target strategy; positioning strategy can be worked out effectively. Positioning enables the firm to create a positive image, gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand. Positioning can be in the form of product, price, promotion, service, distribution channel, image, people, advertising, publicity, public relation or selling differentiation.

INTRODUCTION OF FINANCE DEPARTMENT

In this modern era it is very easy to know how much important the finance is in the business. As current position of the market is totally different from ancient where it was very easy to get the finance. But now a days it is not so, it is very difficult task to raise funds from market. As today people are facing lot of problem and have less confidence on the market so it is difficult to raise fund without proper planning. For the bank as it is a Financial Institution we can consider finance as lifeblood of this business. The company should manage to get sufficient finance. The company should use to keep proper planning for the finance of its own and also of the large no. of depositors who are there with the bank. We can define financial management as a task of acquisition and utilization of funds needed in the business in a manner so that organizations goal can be achieved.

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SWOT ANALYSIS

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SWOT ANALYSIS
SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and or looking at the Opportunities and Threats you face. Used in a business context, it helps you carve a sustainable niche in your market. Used in a personal context, it helps you develop your career in a way that takes best advantage of your talents, abilities and opportunities.

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SWOT ANALAYSIS OF CO-PERATIVE BANK STRENGTH

Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image 23

 Products have required accreditations. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES
Some gaps in range for certain sectors. Customer service staff needs training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff

OPPORTUNITIES
Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services.

THREATS
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 Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive Attack by major competitors Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive.

TYPES OF LOANS PERSONAL LOAN SCHEME:Under this scheme the loan is provided for fulfillment of personal and family needs by taking care of refund capacity of applicant. The applicant can enjoy this facility by following two typesTerm loan for maximum 5 years. Renewal of Credit limit each year according to last years transactions.

ELIGIBILITY:Domicile of Jalandhar city whose age is between 21to 55 years. Employee of Government/ self governed, semi government, leading banks, urban cooperative bank/court, financial institution, education institutes etc. The self employed person who earns fixed income and files income tax return also having PAN card. Organizer of standing committee.

LOAN/ CREDIT LIMIT:Maximum loan amount is 2 lacks. 8 times of Gross Monthly salary or rs.2 lacks whichever is less. In the case of businessman/ professionals the calculation of average monthly salary is to be done according to the IT return of past three years. 25

15 times of monthly salary of manager of selection committee or 2 lacks whichever is less.

INTEREST RATE:According to the decision taken by bank the rate of interest is 16%. RECOVERY OF LOAN:Maximum 5years, in the case of employee 5years or date of retirement whichever is earlier. The advance cheque is taken according to EMI installments of other banks.

FOR SECURITY OF LOAN:1) The bank requires the guaranty of 2 persons having creditability of loan amount who are recognized by bank. 2) The collateral security is also accepted by bank in the case of non remunerated and employer who having loan of more than 50000 and lake of contract of direct recovery.

DOCUMENTS REQUIRED FROM APPLICANT: Photo of applicant Residential proof Two guarantors Income certificate of applicant and guarantor In the case of salaried employee the guarantee certificate passes by his employer. The nominal membership fee and deposit amount.

EDUCATION LOAN:
This loan is for pursuing higher studies by their children.

ELIGIBILITY:-

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Students who have got admission to some professional or other courses and whose prospects of getting employment are very good.

LOAN/ CREDIT LIMIT:The maximum limit of loan is Rs. 3.00 lakes per borrower. 50 times of the gross monthly salary of the applicant or Rs. 10.00 lakes whichever is less ensuring 35% take home salary by the loaner after payment of installment of loan.

INTEREST RATE:The rate of interest on such loan is 12%.

TIME PERIOD:5 years after the borrower gets employment or one year after completion of course whichever is earlier.

DOCUMENTS REQUIRED FROM APPLICANT: Attested copies of documents for proof of age/date of birth and proof of residential address. Passport size photo of the applicant, co-obligates and guarantors. Copy of mark sheets/degree certificates of previous academic qualifications. Income proof/latest income tax return of parents/co-obligates, guarantors. (if any)Details of collateral security along with valuation certificate of Govt. approved valuer (if any). Details/statements of Bank accounts held by the student applicant/co-obligate(s)/guarantors (if any) for the last six months. Copy of Passport/Visa, cost of air fare (documentary detail) in case of studies abroad

Business Loan :
Keeping in view business interests,the loan scheme primarily benefits all cottage/small scale industries, small business enterprises, traders, artisans, self-employed persons, retailers, wholesellers & all other types of businessmen to strengthen and extend their business areas.

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This loan can be availed by any individual singly or jointly, who is residing or gainfully engaged in area of operation of the bank. Generally loans are sanctioned only for existing business. The repayment schedule depends upon borrower's repaying capacity, nature & purpose of loan and total project's amount differing from case to case. It is subject to conditions that a borrower is fulfilling all formalities and norms laid down by RBI and board of directors of the bank

Housing Loan :
The bank realises the need for owning your own house. bank helps in realizing this dream. This loan can be availed by any individual singly or jointly, who is residing or gainfully engaged in area of operation of the bank. While there is no upper limit to loan amount for commercial house/complex construction, actual loan amount is determined on basis of repayment capacity taking into account income, assets & liabilities. The repaying period depends upon borrower's repaying capacity, deposit resources and as per the type of project. The maximum period is upto 15 years.

Avail Of Loans On:

1) Purchase Of New/Existing House 2) Repair Of House 3) Construction Of House 4) Extension Of House 5) Purchase a Plot Of Land Meant For Construction Of a Dwelling Unit. 6) Housing Categories Includes: 7) Private House. 8) Business House. 9) Hotel, Hostel, Complex etc. House Type For Personal House : Finance Available : Project's 50%-75% according to borrowers repaying capacity with maximum

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For Commercial Building For House Repair

limit of 5 lacs : Finance upto the exposure limit of the bank. At present, it is 90 lacs : Finance upto 1 lac as per applicant's project report & on repaying capacity at the satisfaction of the branch manager.

Security:Land/building under construction shall be mortgaged with the bank (registered mortgage or equitable mortgage). Security of 150%-200% of loan amount is taken in the form of immovable property. Atleast 2 Gurantors. Income certificate. Valuation/Estimate of project to be constructed. Other documents can be asked at the time of sanctioning of loans.

Loan on Deposit:
All Shareholders and Account holders of the bank are eligible to apply for loan on their deposits on minimal interest rates. Loan amount is fixed between 75% to 90% of the deposit upto 2 lacs. Interest rate is 1% higher than contracted rate of deposits.

Linking Of Shareholding With Loan Limits:

A borrower should hold shares @5% of his borrowings if such borrowings are on an unsecured basis, ie, in the form of clean overdraft loans against one or two personal sureties and purchases/discount of clean bills and cheques. A borrower against tangible securities should hold share of the bank to the extent of @2.5% of his borrowings from the bank.

Vehicle Loan:
Such loans are sanctioned for on PURCHASE and REPAIR of vehicles. Sanctioned to any individuals (for personal use) and persons engaged or to be engaged in transport business. This category includes vehicles for both personal and commercial use. Finance is available for both new and old vehicles.

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Repayment schedule depends upon borrower's repaying capacity.

ON PURCHASE:(A) Four-wheeler for both personal and commercial use. Vehicle to be Purchased Finance Available Truck, Bus Chasis : 100% finance Chasis with body : 75% of total quotation Car, Jeep(personal use) : 75%-90% finance Tractor, Matador : 75%-90% finance (B) Three-wheeler (for commercial use): Vehicle to be Purchased Finance Available For Chasis : 75% finance For Body : 50%-75% finance

Formalities:
1) If Loan is for single vehicle,it can be sanctioned without any collateral security at satisfaction of branch manager. 2) If loan amount is upto 2 lacs, loan is sanctioned at satisfaction of branch manager without asking any collateral security. 3) If loan amount is more than 2 lacs, 150%-200% of loan amount taken in form of immovable property as security of loan. 4) Vehicle should be registered with registering authority in the name of bank. 5) To offer hypothecation of the vehicle. 6) Kindly refer to our separate interest section for current applicable interest rates.

Documents required:1) Loan application 2) Incase of vehicles for personal use, Income proof in form of latest salary certificate/income tax returns required 3) Incase of Vehicles for commercial use, income project report to be earned by the vehicle has to be produced

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4) Preformed invoice from the dealer in buyers name

OTHER LOAN FACILITY All the loan schemes we have been seen above shows that cooperative bank provided all kind of loans
at nominal rate of interest. The cooperative bank provides loan only to hits members hence if a person wants loan from that bank he has to The central cooperative bank provides some other kind of loans also like Loan for Self employment (@14%). Loan for farm sector (@13%) Loan for cooperative society/marketing society (@14%), Computer loan (@8%), Loan for farm sector (@13%) Loan for non farm sector (@14%) Krishak mitra cooperative credit (@7%) Cooperative society/marketing society credit limit (@ 14%) National saving certificate/ kisaan vikas patra (@ 12%) National saving certificate/ kisaan vikas patra (for staff)(@8%) Loan to bank staff for computer (@12%) Agriculture loan (up to 50000/-) (@12%) Non agriculture loan (up to 50000/-) (@13%) etc

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OUTSTANDING LOAN:

YEAR 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

LOAN OUTSTANDING 6309.14 8192.45 9275.02 11915.09 14533.26 14816.09 19757.01 20563.05 23861.38

INTERPRETATION:
The chart shows the total amount of loan which will have recovere by bank, the increamentshows the that trend to take loan from cooperative bank increases ,it was a little bit constant in year 2005 and 2006 but then increase which shows the interest of individual in taking loan from cooperative bank.

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LOAN OUTSTANDING

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

OBJECTIVE OF THE STUDY

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OBJECTIVE

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RESEARCH METHODOLOGY
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Meaning of Research
Research is defined as "a scientific & systematic search for pertinent informationon a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain new knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge.

OBJECTIVE OF TRAINING:The objective of research is as follows: 1. First objective is to find out Agriculture loan schemes provided by the bank. 2. To learn various aspects of Agriculture loan provided by bank. 3. To know the problem faced by customers when obtaining the loan.

FORMAT OF PROJECT REPORT:The report is exploratory and descriptive in nature. This report is going to describe various loans provided by central cooperative bank hence it is a descriptive in nature but it suggests some important points to improve the services of the bank so it is exploratory in nature also.

SOURCE OF PRIMARY AND SECONDRY DATA

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For the purpose of project data is very much required which works as a food for process which will ultimately give output in the form of information. So before mentioning the source of data for the project I would like to mention that what type of data I have collected for the purpose of project and what it is exactly.

PRIMARY DATA:Primary data is basically the live data which I collected on field while talking with the Employees. In some cases I got no response from their side and then on the basis of my previous Experiences I filled those fields.

SOURCE:
Main source for the primary data for the project was my face-to-face conversation which I got by the employees or sometimes filled myself on the basis of discussion with the employees.

SECONDRY DATA:Secondary data is already published data. It is the data which is funded or collected by someone else before and presently used by further research work. Secondary data for the base of the project I collected from annual report of bank, bank pamphlets and internet etc.

SCOPE OF THE STUDY:Each and every project study along with its certain objectives also has scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one. The scope of this research is as follows:

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1. Research study could give an idea of network expansion for capturing more market and customer with better services and lower cost without compromising with quality 2. In future customer requirement could add with the product and services for getting the edge over competitors. 3. Different parameters could be used for the purpose of new products with extra benefits which are required by the customers. 4. Factores which are responsible for the performance of the bank can also be used for the modification of the strategy and product for being more profitable.

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DATA ANALYSIS AND INTERPRETATION

1. What kind of loan have you taken from organization?

%age of Kind of loan Agriculture loan personal loan House loan Education loan Vehicle loan Other No. of Respondent 16 15 6 8 3 2 respondent 32% 30% 12% 16% 6% 4%

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Agriculture loan personal loan House loan Education loan Vehical loan Other

Interpretation
Table reveals that 16 respondents have taken agriculture loans, 15 have taken personal loans and less people prefer house, educational and vehicle loans.

2. What is the amount of loan taken?

%age of Loan Amount Less than 20,000 20,000 to 50,000 50,000 to 1 lac more than 1 lac No. of Respondent 4 10 6 30 Respondent 8% 20% 12% 60%

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No. of Respondent

Less than 20,000 20,000 to 50,000 50,000 to 1 lac more than 1 lac

Interpretation
Table reveals that 8 % people prefer loan less than 20,000, 20 % respondents prefer 20,000 to 50,000,12 % prefer more than 1 lac and 60% of the respondents prefer more than 1 lac.

3. What is the term of loan ?

%age of Term of Loan Less than 1year 1year to 3 year More than 3 year No. of respondent 6 10 32 respondent 12% 20% 64%

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No. of respondent

Less than 1year 1year to 3 year More than 3 year

Interpretation
Table shows that 64 % respondents take loan for more than 3 years, 20 % take loan for 1 to 3 years and 12% take loan for the period of less than 1 year

4. What is the rate of interest you paying?

Rate of Interest paid by customer Less then 9% 9% to 12% more than 12% No. of Respondent 2 24 24 %age. of Respondent 4% 48% 48%

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No. of Respondent

Less then 9% 9% to 12% more than 12%

Interpretation
Table shows that 48% of the respondents are paying rate of interest 9 to 12 % and More than 12 % and 4 % of the respondents pay less than 9 % of rate of interest.

5. How many time have you taken loan before?

No.of loan time taken only once 1to 3 times More than 3 times No. of Respondent 29 16 5

%age.of Respondent 58% 32% 10%

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No. of Respondent

only once 1to 3 times More than 3 times

Interpretation
Table reveals that 58 % of the respondents took loan once, 32 % of the respondents took loan for 1 to 3 times and 10 % took loan for more than 3 times 6. What is the average time taken for the processing of the loan?

Average time for processing of loan Less than 7 days 7 to 14 days More than 14 days No. of Respondent 34 13 3

%age of Respondent 68% 26% 6

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No. of Respondent

Ltss than 7 days 7 to 14 days More than 14 days

Interpretation
Table reveals that 68% respondents says that average time taken for processing of the loan is less than 7 days, 26% says that it takes 7 14 days and 6 % says that it takes more than 14 days.

7. If you are in need of loan in future from which in banks would you prefer to take loan?
Preferable bank in future Private bank public bank co-operative bank No. of Respondent 7 15 28 %age of Respondent 14% 30% 56%

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No. of Respondent

Private bank public bank co-operative bank

Interpretation
Table shows that 56 % of the respondents will prefer loans from co-operative banks, 30 % from the private banks and 14 % from the public banks

8.How would you rank the customer service of the bank?

Rank of the customer Service Excellent Good Average Poor No. of Respondent 12 26 12 1

%age of Respondent 24% 52% 24% 2%

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No. of Respondent

Excellent Good Average Poor

Interpretation

Table shows that 52% of the respondents says that customer service of the bank is good,24% says that it is excellent and another 24 % says its average and only 2 % says its poor.

9. Do you think the bank is able to reach upto your satisfaction level?
%age of Yes No No. of Respondent 37 13 Respondent 74% 26%

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No. of Respondent

Yes No

INTERPRETATION

FINDINGS

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FINDINGS:1) 16 respondents have taken agriculture loans, 15 have taken personal loans and less people prefer house, educational and vehicle loans. 2) 8 % people prefer loan less than 20,000, 20 % respondents prefer 20,000 to 50,000,12 % prefer more than 1 lac and 60% of the respondents prefer more than 1 lac. 3) 64 % respondents take loan for more than 3 years, 20 % take loan for 1 to 3 years and 12% take loan for the period of less than 1 year 4) 48% of the respondents are paying rate of interest 9 to 12 % and More than 12 % and 4 % of the respondents pay less than 9 % of rate of interest. 5) 58 % of the respondents took loan once, 32 % of the respondents took loan for 1 to 3 times and 10 % took loan for more than 3 times 6) 52% of the respondents says that customer service of the bank is good,24% says that it is excellent and another 24 % says its average and only 2 % says its poor. 7) 56 % of the respondents will prefer loans from co-operative banks, 30 % from the private banks and 14 % from the public banks 8) 68% respondents says that average time taken for processing of the loan is less than 7 days, 26% says that it takes 7 14 days and 6 % says that it takes more than 14 days.

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LIMITATIONS

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LIMITATIONS:1) The rate of interest may vary according to market environment. 2) These figures are according to publish in annual report and according to employees of central cooperative bank. 3) The report is according to my perception only and cant be taken as final decision. 4) This study only relates to one organization, so conclusions drawn may not be finding its utility in all the other banks. 5) Even the employees of the bank hesitated to give the complete & accurate data There are always present some limitations under which researcher has to work.Here following are some limitations under researcher had to work: SAMPLE SIZE The sample size surveyed was limited over 100 respondents which not may befully representative of the universe. A large sample size could not be taken due totime & cost constraints. NON - COVERAGE OF CERTAIN ASPECTS There is wide range of perimeters affecting consumer behavior but only a fewquestions relating to those determinants have been endorsed in schedule. TIME CONSTRAINT We had limited time for conducting this survey report. In this short period of allthe respondents had to be personally contacted for the purpose of survey & thentheir responses had to be analysed . So, some shortfalls may be present. LIMITATIONS OF SAMPLING TECHNIQUES Limitations & biasness of convenience & judgment sampling used in the presentstudy to some extent. MONEY Available with the researcher also imposed a limitation on the comprehensive of this research 51

RECOMMENDATION AND SUGGESTIONS

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RECOMMENDATION AND SUGGESTIONS:

1. More mass awareness campaigns should be organized in order to enhance market share of bank. So Bank should concentrate on its advertisement itself. 2. Bank should refocus on its interest rate as responded by people. Periodic review of the interest rate should be done. 3. There should be computerized system in the bank as it will reduce the time wastage of manual work and will lead to the better performance of the bank. 4. Training of the employees should be there to meet the needs of the time. 5. Proper posting of the staff should be done. 6. Customers satisfaction must be the top priority of the bank. 7. Maximum practical exposure should be provided to the job trainees so that they may handle the various enquiries of customer effectively. 8. Communication gap within the bank and with the head-office should be reduced. 9. Infrastructure facilities should be provided to the branch of Cooperative Bank, as it is catering to the 5-6 nearby villages. 10. Banks is also advised to have proper internal control measures for monitoring its functions and transactions

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CONCLUSION

CONCLUSION
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The study concludes that Cooperative Bank, which was established for mainly for the service of rural sector, still is not on the line to its goal. It is lacking at various elements, particularly at the branch levels, which reveals the edge of other public and private sector banks over the Cooperative bank, the lines at which the bank is lacking behind. Indis ciplineand lack of commitment in these banks make peoples trusts in the cooperative sector acasualty.Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. But there is shortage of staff in this bank and the traditional manual banking which is affecting the business and customer services. People are still unaware of the services provided by the Cooperative Banks due to lack of advertisement. There is a need to analyze and pick up early warning signals. A change is needed today in the cooperative banks which is built on confidence in human capital - the most important of all resources - in commitment, creativity and innovation brought about by proactive management, membership and employees. The ability to capture knowledge and wisdom gives cooperative banks their competitive advantage. A Prerequisite is that participants from all parts of a cooperative organization know and understand its purpose, core values and visions. In this way, by keeping in mind the certain shortcomings, appropriate measures to overcome them should be adopted. So that the real purpose of the Cooperative bank must be realized with a competitive advantage and the gap between the customer perception of the Cooperative Bank and the other private and public sector bank, can be reduced

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BIBLIOGRAPHY

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References

1. www.rbi.org.in 2. www.Banknetindia.com 3. http://en.wikipedia.org/wiki/Bank#History 4. http://en.wikipedia.org/wiki/Banking_regulation 5. http://en.wikipedia.org/wiki/Banking_in_India#Early_history 6. www.rbi.org.in/scripts/publications 7. http://www.scribd.com/doc/5434275/indian-banking-sector 8. http://www.scribd.com/doc/4569884/The-Reserve-Bank-of-India89 10 http://www.rbi.org.in/scripts/fun_urban.aspx 11: http://www.scribd.com/doc/8361020/india-banking-sector 12 http://www.nabard.org/introduction.asp

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ANNEXURE

58

QUESTIONNAIRE

NAME: AGE: SEX: OCCUPATION: INCOME: 1. What kind of loan have you taken from the organization? Housing Loan Personal loan Consumer loan

Education Loan Vehicle loan Others 2. What is the amount of loan taken? Less than 20,000 20,000- 50,000 50,000-1 lac More than 1 lac

3. What is the term of loan? Less than 1 year 1 year to 3 year More than 3 year 59

4. What is the rate of interest you paying? Less than 9% 9% to12% More than 12%

5. How many time have you taken loan before? Only once 1 to 3 times More than 3 years

6. .what is the average time taken for the processing of the loan? Less than 7 days Between 7-14 days Above 14 days

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7If you are in need of loan in future from which institute would you prefer to taken loan? Private banks Public banks Cooperative bank 8. How would you rank the customer service of the bank? Excellent Good Average Poor

9. What is the rate of interest you paying? Less than 9% 9% to12%

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More than 12%

10.what improvement do you suggest?

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