A Project on

“Customer Perception towards Loans and Advances

Commercial Co-operative Bank”

Submitted to

Marwadi Education Foundation’s Group of Institutions

In partial fulfillment of the requirement of the award for the degree of

Master of Business Administration

Under

Gujarat Technological University

Under the guidance of

Faculty Guide: Company Guide:

Prof. Pratik Joshi C.S. Vora

Assistant Professor Manager

Submitted by

Kanzariya Pragna K.

Enrolment No.: 13827059104

MBA Semester III

Marwadi Education Foundation’s Group of Institutions

MBA Program

Affiliated to Gujarat Technological University

Ahmadabad

DECLARATION

I undersigned, PRAGNA K. KANZARIYA, the student of2nd semester of MBA, Marwadi

Education Foundation’s Group of Institutions affiliated to Gujarat Technological University,

hereby declare that the project work presented in this report is my own contribution and has

been carried out under the guidance of Prof. PRATIK JOSHI.

PREFACE

Education is the process of sharpening one’s mind and which is given in the

school & colleges in form of various subjects. When any subject is thought theoretically

in class it is known as academics, but when it is studied with the subject application in

real life. It is known as professional education.

The field of commercial study consists of business administration, which is the

good mixture of both theory subject and practical subject. Thus, it makes the students

familiar with the running of various industries.

As a student of MBA, a professional degree courses, it required having the

knowledge about theoretical as well as practical knowledge. Theoretical knowledge

provided me by the experienced staff of my college and the practical knowledge and

training is provided by The commercial co-operative Bank ltd.

ACKNOLEGEMENT

Life of human beings is full of interactions. No one is self-sufficient by himself

whenever anyone is doing some serious and important work a lot of help from the

people concerned is needed &one less specially obliged towards them. We cannot

forget acknowledging them in few words as without the guidance & co-ordination of

them in our project report would not have been possible.

A large number of individual contributed to this project. We are thankful to all of them for

their help and encouragement. Our writing in this project report has also been

influenced by a number of website and standard textbooks. As far as possible, they

have been fully acknowledged at the appropriate place .We express our gratitude to all

of them.

First of all We owe our heartfelt gratitude to our guide Prof. Pratik Joshi, for their

noble guidance throughout the completion of the Project.

SR. NO. PERTICULARS PAGE NO.

1 INTRODUCTION TO BANKING SECTOR IN

INDIA

4

2 HISTORY OF BANKING 6

3 INTRODUCTION OF CO- OPERATIVE BANK 7

4 DEFINATION OF CO- OPERATIVE BANK 8

5 TYPES OF CO- OPERATIVE BANK 9

6 ROLE OF CO- OPERATIVE BANK 11

7 REGISTRATION & LICENSING 12

8 MARKET PLAYERS IN THE INDUSTRY 13

9 “THE COMMERCIAL CO-OP.BANK OVERVIEW 17

10 INTRODUCTION 19

10 BANK PROFILE 20

11 ORGANIZATION CHART 21

12 BOARD OF DIRECTORS 22

13 VISION 23

14 MISSION 24

15 PERFORMANCE AND KEY PERFORMANCE

DATA

25

16 SERVICES PROVIDED 26

17 LOANS AND ADVANCES 28

18 INTRODUCTION 30

19 TYPES OF LOANS 31

20 LOAN PROCEDURE 33

21 RECOVERY PROCEDURE 36

22 SWOT ANALYSIS 37

23 RESEACH WORK 39

24 BACKGROUND OF THE STUDY 42

25 REVIEW OF LITERATURE 42

26 STATEMENT OF PROBLEM 44

27 OBJECTIVE OF STUDY 44

28 CONTRIBUTION AND LEARNING FROM THE

PROJECT

45

29 ANALYSIS OF RESEARCH WORK 49

30 RESULTS & FINDINGS 59

31 SUGGESTION 60

32 CONCLUSION

33 CONCLUSION 61

34 SCOPE OF THE FURTHER RESEARCH 62

35 QUESTIONNER 63

34 BIBILIOGRAPHY 70

35 BIBILIOGRAPHY 71

PART -1

GENERAL

INFORMATION

1. INTRODUCTION TO

BANKING SECTOR

IN INDIA

INDEX

SR. NO. PARTICULARS PAGE NO.

1 HISTORY OF BANKING 8

2 INTRODUCTION OF CO- OPERATIVE BANK 9

3 DEFINATION OF CO- OPERATIVE BANK 10

4 TYPES OF CO- OPERATIVE BANK 11

5 ROLE OF CO- OPERATIVE BANK 13

6 REGISTRATION & LICENSING 14

7 MARKET PLAYERS IN THE INDUSTRY 15

HISTORY OF BANKING

The importance of banking as the nerve sector of economic development cannot be

over emphasized. Banking industry has acquired a key position in mobilizing resources for

defense & for socio economic development of the country. It is said that “Bank which are that

need of & great wealth of our country have got to be kept very sacred. Just as water is for

irrigation, good banks are for the country’s industry & trade.” Since the beginning of planning

in India banking industry has grown not only in size but also in depth this industry has become

one big complex.

Today banks have become a part & parcel of our life. Now banks offer access to even a

common man & their activities extend to areas hither to untouched & after the globalization &

liberalization policy of India, many foreign banks have entered in Indian market with different

services & innovation technologies. Apart from their traditional business oriented functions,

they have now come out to fulfill national responsibilities. Today’s banks cater to the needs of

agriculturists, industrialist, traders, women, students & to all other sections of the society. Thus

they accelerate the economic growth of a country & steer the wheel of the economy towards

its goal of “self reliance in all fields.” Hence today banking sector has become the lifeline of the

economy.

INTRODUCTION OF CO- OPERATIVE BANK

Over the year the difference between co-operative banks & commercial banks has

blurred as they all have come under a common law. All products & services are offered by co-

operative banks are on the par with commercial banks, with a few exceptions related to

government business. In 1904 the co-operative movement started in India with a view to

provide finance to the agriculturist at a low rate of interest. The co-operative society has to

take the place of the money lenders & provide cheap loan to the farmers for productive

purposes.

Even though many types of co-operative societies have been started particularly for the

artisans & others, the most common form of such societies deal in rural credits. Once the

mahatma Gandhi has remarked that “ there is sweetness in co-operative; there is no one who

weak or strong among those who co-operate. Each is equal to other.”

So, after having such easy government policy, today many co-operative banks have started

in India. And they are catering to the all section of the society, & also today co-operative sector

has grown in all over the world, with globalization of the world they have also started to

implement new technologies & various management tools.

DEFINATION OF CO- OPERATIVE BANK

Co-operative has been defines in slightly different ways in various sciences & by various

scholars. This is due to its flexible nature which can lend itself to variety of purpose & social

system, in order to have a through understanding of the concept some well known definitions

are discussed below.

“Co-operative is a form of organization where in persons voluntarily associate together as

human beings on a basis of equality, for the promotion of economic interests of them selves.”

-Hubert calvert

“Another protagonist is an association for the purpose of joint trading, originating among

the weak & conducted always in an unselfish spirit, on such terms that all who are prepared of

assume the duties of membership my share in it’s reward in proportion to the degree in which

they make use of there association.”

TYPES OF CO- OPERATIVE BANK

There are mainly three types of co-operative banks in India.

State co-operative banks

Central co-operative banks

Urban co-operative banks

(1)State co-operative banks

These banks are also known as apex & are registered under co-operative societies act –

1912. In fact these banks are established to function as a leading co-operative financial

institution of the state offer co-operative societies should grow. The “apex banks” as they are

called are they to render financial help as & when the co-operative societies are in need of their

help.

(2)Central co-operative banks

A district level of central co-operative banks is functioning as a commercial bank & that

too as an independent unit. They are there in order to strengthen the co-operative movement in

the country. In fact these banks are the key link between people & apex bank & render valuable

services to downtrodden & rural folk in taking them out of the financial wood central co-

operative banks get funds from (a) share capital (b) deposits (c) financial help from state co-

operative banks (d) state bank of India (e) commercial banks. Their working capital is usually

provided by state government.

(3) Urban co-operative banks

Urban co0operative banks are organized & established in towns on the pattern of joint –

stock banks but are established under co-operative societies act – 1912. For funds these banks

depend on their own sources. However central co-operative banks are helping them in financially

viable. Central co-operative banks are directly links with the state co-operative banks. Urban

primary co-operative banks provide funds to rural folk in easy terms to help them in agriculture

work aid its development role in rural enlistment. They are in tune with the government policies

& program.

ROLE OF CO- OPERATIVE BANK

Now-a-day co-operative banks are progressing very fast then any commercial or

nationalized banks. The customer service lending services & other banking facilities given to the

society is being better than other banks. So people are also being attracted & interested in co-

operative banks.

The main aim of the bank is to extend credit facilities to the small traders, workers &

other middle class people. This bank derive their funds for working partly through share capital

contributed by the member & partly through deposits collected from members, general public &

render usual banking services. The liability of members is normally unlimited. This enables the

society to raise funds from outside agencies &also encourages member to take keen interest in

working of the society.

REGISTRATION & LICENSING

There should be co-ordination between the state co-operative department & RBI for the

registration & licensing of urban banks. Urban banks should build up their share capital &

reserve to the revised minimum level with in period of 3 year which can be extendedly by the

RBI to a further period of 2 years whenever necessary.

For organization or urban co-operative bank in each state there should jointly survey local

areas & identify the potential growth centers where urban banks could be organized once such

centers are located prominent person of the locality might be contacted to seek their assistance

for registration of the urban banks. New banks are to be organized in backward areas or by

weaker section of the community may not be able to collect the initial minimum share capital

require for obtaining license. Government assistant in the form of share capital contribution for

such new banks may be equal to that collected by members.

These banks derive their funds for working partly through share capital contribution by

the numbers & partly through deposits collected from members & non members & renders usual

banking services. The shares are of higher value. But the liability of the member is limited to the

extent to the shares hold by them.

Market players in the Industry

Nationalized

bank & SBI &

associate

bank

Private bank Co-operative bank Foreign

bank

1. Bank of

Baroda

AXIS bank AMCO bank Ltd. Abu Dhabi

commercial

bank

2. Bank of India HDFC bank Kalupur commercial Coop bank Ltd. Australia &

New

Zealand

bank

3. Allahabad

bank

ICICI bank The Commercial Coop. Bank Ltd.

Jamnagar

Bank

International

Indonesia

4. Andhra bank Indusland bank Mehsana Urban Coop bank Ltd. Bank of

America NA

5. Bank of

Maharashtra

ING Vysya bank Nutan Nagrik Sahakari bank Ltd. Bank of

Bahrain &

Kuwait

6. Punjab

national bank

ABN Amrobank Rajkot Nagrik Sahakari bank Ltd. Bank of

Ceylon

7. Central bank

of India

Catholic Syrian

bank

Sardar Bhiladwala Pardi peoples

Coop bank Ltd.

Bank of

Nova Scotia

8. Indian bank Dhanlaxmi bank Surat peoples Coop bank Ltd. Bank of

Tokyo

Mitsubishi

UFJ

9. Indian

Overseas

bank

Federal bank Amarnath Coop bank Ltd. Barclay

Bank PLC

10. Punjab &

Sind bank

Karnataka bank Andhra Pradesh Mahesh Coop Urban

bank Ltd.

BNP Paribas

11. Oriental bank

of commerce

KarurVysya bank Charminar Coop Urban bank Ltd. Calyon bank

12. Syndicate

bank

Kotak Mahindra

bank

Vasavi Coop Urban bank Ltd. Chinatrust

commercial

bank

13. UCO bank Lakshmi Vilas

bank

Indian Mercantile Coop bank Ltd. Citibank

N.A.

14. Union bank of

India

Tamilnadu

Mercantile bank

Abhyudaya Coop bank Ltd. Credit

Suisse

15. United bank

of India

The South Indian

bank

Bassein Catholic Coop bank Ltd. Commonwe

alth Bank of

Australia

16. Vijya bank YES bank Bharat Coop bank Ltd. DBS bank

17. Repco bank UP agro

corporation bank

Bharati Sahakari Coop bank Ltd. RHB bank

18. IDBI bank City union bank Bombay Mercantile Coop bank Ltd. Deutsche

Bank AG

19. State bank of

India

Citizen Credit Coop bank Ltd. Standard

Chartered

bank

20. State bank of

Bikaner &

Cosmos Coop Urban bank Ltd. UBS

Jaipur

21. State bank of

Hyderabad

Dombivli Nagrik Sahakari Coop bank

Ltd.

Shinhan

bank

22. State bank of

Mysore

Goa Urban Coop bank Ltd. Sonali bank

23. State bank of

Patiala

Gopinath Patil Parsik Janata Sahakari

bank Ltd.

Swapnil

bank

24. State bank of

Travancore

Greater Bombay Coop bank Ltd. HSBC

25. State bank of

Atitmand&Be

awar

Jalgaon Janata Sahakari bank Ltd. FirstRand

bank

26. State bank of

Banglore

JanakalyanSahakari bank Ltd. Royal bank

of Scotland

27. State bank of

Hemadri

Janalaxmi Coop bank Ltd. JPMorgan

Chase bank

28. Jivan commercial coop bank Ltd. Krung Thai

bank

29. KallappannaAwadeIchalkaranjiJanata

Sahakari bank Ltd.

Masreq

bank psc

30. KalyanJanataSahakari bank Ltd. Mizuho

corporate

bank

31. Karad Urban Coop bank Ltd. VTB

32. Mahanagar Coop bank Ltd. Woori bank

33. Mapusa Urban Coop bank of Goa Ltd. State bank

of Mauritius

34. Nagar Urban Coop bank Ltd.

35. Nasik Merchant’s coop bank Ltd.

36. New India Coop bank Ltd.

37. NKGSB Coop bank Ltd.

38. Pravara Sahakari Coop bank Ltd.

39. Punjab & Maharashtra Coop bank Ltd.

40. Rupee Coop bank Ltd.

41. Sangli Urban Coop bank Ltd.

42. Saraswat Coop bank Ltd.

43. Shamrao Vithal Coop bank Ltd.

44. Solapur Janata Sahakari bank Ltd.

45. Thane Bharat Sahakari bank Ltd.

46. Thane JanataSahakari bank Ltd.

47. The Kapol Coop bank Ltd.

48. Zoroastrian Coop bank Ltd.

49 GondalNagrikSahakari Bank Ltd.

50 Nagpur NagrikSahakari bank Ltd.

1. THE COMMERCIAL

CO-COOPERATIVE

BANK LTD.

OVERVIEW

INDEX

SR. NO. PARTICULARS PAGE NO.

1 INTRODUCTION 21

2 BANK PROFILE 22

3 ORGANIZATION CHART 23

4 BOARD OF DIRECTORS 24

5 VISION 25

6 MISSION 26

7 PERFORMANCE AND KEY PERFORMANCE DATA 27

8 SERVICES PROVIDED 28

INTRODUCTION TO “THE COMMERCIAL CO-

OPERATIVE BANK LTD.”

The commercial co-operative bank is one of the leading co-operative banks in Jamnagar It

has completed 40 years, looking back to its starting history.

With a view to save borrower from the hands of money lenders, who charge excessive interest on

borrower. The commercial co-operative bank has been established in 24-03-1971 by Mr.

Kantilal Raichand Sanghvi and Gulabchand Devaraj Shah. then after loan has been given to

small borrower and deposits share capital has been received from rich people gradually bank

share capital became sufficient to bank started giving loan for various purpose like home loan,

vehicle loan, machinery loan etc.

This bank has started with working capital of Rs.1 crores which kept on

increasing till today and crosses the limit of Rs.177 crores. To middle class and lower class

people the work criteria became widen and it covers the whole khambhaliya city the head office

were situated at grain market jamnagar then other six branches were situated at, patel colony,

jam-khambhalia, marketing yard (Hapa), Kalavad , Udhyog nagar, Khodiyar colony.

BANK PROFILE

Name of bank The commercial co-operative bank ltd.

Head office Grain market, Jamnagar.

Working hours Monday to Saturday

10:30am to 5:30pm

Year of establishment 1971

Registered no. 1888

Accounting year April to march

Branches 7

Chairman Mr. Pravinchandra V. Chotai

Managing director Dr. Bipinchandra T. Vadhar

General manager Mr. Suresh D. Raiththa

Accountant G.S. Mehta

Email address cocobank.adm@gmail.com

Authorized capital 3,00,00,000.00

Fax no. 0288 2554175

Phone no 0288 2510500

ORGANIZATION CHART

m

Board of directors

Managing director

Vise chairman

Chairman

General Manager

Branch manager

Officers Casher Cleark

BOARD OF DIRECTORS

Mr. Pravinchandra v. chotai Chairman

Mr. Maheshbhai B. ramani Vise chairman

Mr. Bipinchandra T. vadhar MD

Mr. Kushkumar M. udani Joint MD

Mr. Indulal c. vora Director

Mr. Jitendra kumar s. shah Director

Mr. Jyantilal s. chandariya Director

Mr. Ketan kumar N. patel Director

Mr. Jitendra kumar H. Lal Director

Mr. Vitthaldas R. makadiya Director

Mr. Ramniklal D. thakar Director

Mr. Ashvin kumar J. barchha Director

Mr. Jamnadas S. shiyani Director

Mr. Vivek Ghandhi Director

Mr. Gautam Mehta Director

VISION

“Maximum profit at maximum services”

The bank is committed to maintain the highest level of ethical standards, profession

integrity and regulatory compliance. Our bank’s philosophy is based on four core value such as:-

Operation excellence,

Customer focus,

Service Leadership,

Welfare of people.

The objective of THE COMMERCIAL CO-OPERATIVE BANK LTD. is provided its

target market members a full range of financial products and banking services, giving the

members and one –step window for all his /her requirements.

MISSION

“We always with you”

The above slogan has been accepted and well performed by our bank. Bank always

tries to give support to the members of it. The regular payment of dividend over such 41 years on

an average of 12 % per annum is good signing of the implementation of the slogan “We always

with you”.

Bank also provided loan facilities to the members for short term and medium term financial

requirement at reasonable rates. The bank is going to start ATM in near future for easy

accessibility.

Our dealing with our customers, public shareholders and employees shall reflect honestly and

openness. Collectively we shall establish a standard in banking through outstanding

performance, courteous service high ethical bench

PERFORMANCE AND KEY PERFORMANCE DATA

OF THE COMMERCIAL CO-OPERATIVE BANK LTD.

(Amt. in lakh )

Particulars 31-3-2010 31-3-2011 31-3-2012 31-3-2013 31-3-2014

Share capital 161.04 186.33 180.51 181.84 179.22

Loans 3876.39 4593.18 5766.52 7073.56 8907.39

Reserves and

surplus

2424.68 2489.79 2542.03 2667.47 2809.91

Capital 11,747.95 11,742.92 12,021.08 12,791.28 13,386.66

No. of share

holder

4410 4411 4423 4436 4475

Total working

capital

18,439.98 18,106.38 18,976.78 19,814.86 17,755.50

Net profit 80.57 60.46 169.39 171.21 219.69

No. of branches 7 7 7 7 7

Audit division A A A A A

Dividend 12% 12% 12% 12% 12%

SERVICES PROVIDED

DEPOSIT

Current account

Saving account

Special account

Fixed deposits

ADVANCES

For domestic appliances

Against fixed deposit

Against gold ornaments

Against land & building

Against vehicle

Against machinery

In form of overdraft

OTHER SERVICES

Locker facilities

Demand draft

Current account

A current account is a running and active account which may be operated upon any

number of times during a working day. There is no restriction on the number and the amount of

withdrawals from current account.

A current account is meant for the convenience of his customers, who are relieved of the

task of handling cash themselves and to take the risk inherent therein. Thus the primary object of

current account differs from the object of other deposit accounts which are meant to solicit the

savings of the people.

Saving account

A savings bank account is meant for the people of the lower and middle classes who wish

to save a part of their current incomes to meet their future needs and also intent to earn an

income from their savings.

The banks impose curtains restrictions on the savings banks account and also offer a

reasonable rate of interest. The need of keeping cash reserves against such deposits is

comparatively larger the fixed deposits but smaller as against the current deposits.

Fixed deposits

In this category are included the deposit with the bank for a fixed period which is

specified at the time of making the deposit. Such deposits are, therefore, called Fixed Deposits

or Term Deposits.

A Fixed Deposit is repayable on the expiry of a specify period, chosen by the

depositor to suit his purpose and to enable him to get back the money as and when he needs it.

INDEX

SR. NO. PARTICULARS PAGE NO.

1 INTRODUCTION 33

2 TYPES OF LOANS 34

3 LOAN PROCEDURE 36

4 RECOVERY PROCEDURE 39

5 SWOT ANALYSIS 40

LOAN/ADDVACES

Lending of funds to the constituents, mainly traders, business and

industrial enterprises, constitutes the main business of the banking company. The

major portion of a bank’s funds is employed by way of loans and advances, which

is the most portion of the bank’s funds is employed by way of is funds. The major

part of bank’s income is earned from interest and discount on the funds so lent.

The business of lending, nevertheless borrowed funds a banker can not afford to

take undue risks in lending. While lending his funds, a banker, therefore, follows a

very cautious policy and conducts his business on the basis of the well-known

principles of sound lending in order to minimize the risks.

CLASSIFICATION OF LOAN AND ADDVANCES

The loans and advances granted by banks are broadly classified into

secured and unsecured advances. According to section 5 (a) of the. Banking

Regulation Act,1949, ‘a secured loan or advance means a loan or advances made

on the security of assets, the market value of which not at any time less than the

amount of such loan or advances not so secured

TYPES OF LOANS

LONG TERM LOANS

MEDIUM TERM LOANS

SHORT TERM LOANS

TYPES OF LOANS

Loans provided by the commercial co-operative bank ltd.

Short term loans

1 Pledge 19,24,754.00

2 Hypothecation 54,22,26,047.22

3 Overdraft 20,31,86,549.58

4 Current Overdraft 2,35,97,030.11

5 Gold Loan 5,39,53,092.00

6 Loan Against Deposits 54,110.00

7 Loan Against Reinvestments 28,95,288.00

8 Bill purchase 4,07,108.00

Medium term loans

Higher purchase loan 1,02,15,982.50

Fixed property 82,37,153.00

Long term loans

Housing const. loan 4,25,66,579.00

Warehouse const. loan 14,75,451.00

LOAN PROCEDURE

1. Application

2. Shakh Report

3. Loan Report

4. Inspection

5. Committee Approval

6. Letter of Condition

7. Documentation

1. APPLICATION

o A customer required any advances from a bank have to apply for the same.

o It is a compulsory for the commercial Bank that the applicant must be the

member or share holder.

o In the application form bank need primary information about borrower and

guarantor.

o Income proof also required

2. SHAKH REPORT

o It is a confidential report prepared by bank for the members who want to take

a loan.

o In the shakh report loanee’s financial position and also guarantor’s financial

position are mentioned.

o In the case of industries loan turn over report will required.

3. LOAN REPORT

o After the shakh report approves, customer’s application go for the loan report.

o Bank analyses the application throughout.

o And report will go to next stage.

4. INSPECTION

o For knowing correct picture bank’s officers are make an inspection of property of

customers.

o But it is done in case of totally new and doubtful customer’s application.

For regular customer, it is not required.

5. COMMITTEE APPROVAL

o After completing everything and if application found correct than loan report

should to come along with committee.

o The system of the commercial Bank is divided into different committee for

sectioning different amount of advances.

o If committee members feel that the file of applicant for advances is correct and

there is not any problem in granting loan than they sanction the loan.

o If an amount of a loan is less than the actual application amount and if a

customer wants the amount which is mentioned in application form at that

time customer have to prepare one more application to the committee to

sanction the full amount.

o After the second application committee think over the new application and if

they feel satisfied than they sanctioned full amount of application.

6. LETTER OF CONDITION

o In the letter of condition bank includes the rate of interest, instalments, deposits

and other primary rules.

o Steps taken by the bank if customer is not able to repay the loan are also

mentioned.

7. DOCUMENTATION

o Document means any matter expressed or described upon any substance by means

of letters, figures, or marks or by more than one of those means intended to be

used or which may be used for the purpose of recording that matter.

o At the commercial co-operative Bank different documents are required for

different Loans / Advances like promissory note, letter of guarantee, equitable

mortgage and Hypothecation of vehicle etc.

RECOVERY PROCEDURE

A banker has not merely to advance money to trade, industry and commerce but has to

ensure that money which is advanced comes back to him / her.

If money advances is not recovered, the banker is likely to suffer a loss and will not be

able to balance liquidity with profitability. It is, therefore, necessary for a banker to keep a close

watch over advances granted by him to different types of borrowers.

There are numbers of occasions when a banker will think it necessary to ask a borrower

to repay the advances, which are like below;

1. Death of borrower or guarantor.

2. Insolvency of borrower or guarantor.

3. Dissolution of partnership.

4. If there is a adverse report in the market about the financial soundness of borrower.

5. If change in policy is announced by time to time from the Reserve Bank of India.

6. There may be some other occasion also, when an advance may have to been recover.

These may be under the RBI directive or under the Government Legislation.

7. If the borrower fails to repay, the banker should give a notice preferably through a

loyer by register post calling upon the borrower to repay the advances, failing which

he may be proceeded against according to the law.

8. If necessary the borrowers may be advised or persuaded to repay the advance in

installments to be fixed up in consulting with borrower.

9. The legal course will be available to the banker against the borrower depends upon

the type of borrower and the type of security offered as a cover for the advances.

10. The banker will therefore have to take appropriate legal action keeping in mind the

type of borrower and the type of security.

The most important point to be noted is that as a banker, while following the

recovery procedure the interest of the bank should always be uppermost in his mind.

SWOT ANANLYSIS

S = Strengths

W = Weaknesses

O = Opportunities

T = Threats

STRENGTH:-

This bank is very reputed in local area.

Professional management & co-operate team spirit.

Strong brand equity in local area.

Profitability & sound liquidity.

No mistake in regular transactions can be found because of small

network.

WEAKNESSES: -

Bank is not performing marketing activity because lack of marketing

expertise.

Bank is not providing A.T.M. facility in the recent developed era and Bank

is not fully developed in modern era.

Lower volume of advances due to higher rate of interest may affect the

expansion of the organization.

OPPORTUNITIES:-

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.

THREATS:-

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.

PART -2

RESEARCH

WORK

INDEX

SR. NO. PARTICULARS PAGE NO.

1 BACKGROUND OF THE STUDY 44

2 REVIEW OF LITERATURE 44

3 STATEMENT OF PROBLEM 46

4 OBJECTIVE OF STUDY 46

5 CONTRIBUTION AND LEARNING FROM THE

PROJECT

47

Introduction of the study:-

Research is done to gain some knowledge so as to it may aid in understanding the

information gathered on specific topic. It is a scientific way of undertaking information

on specific and particular subjects. It is a scientific investigation to understand the cause

and effect as well as the reasons trough investigations. It is an academic activity and it is

to be used in technical sense.

Research indicates scientific and inductive thinking and it promotes the development of

logical habits of thinking and organization. The research methodology has gone through

which path to solve the research problem and which tools have been adopted to achieve

the desired objective and more importantly it tells why only that path or tools have been

chosen and not other.

Today competition and markets both have expanded. The company every now and then

cannot afford to undertake research activities as research involves huge cost. The

companies undertake research activities when it perceives that something is going wrong

or they’re in lack of information to solve a particular problem. In such cases only

company undertakes research activities. The research activity is totally dependent on

managerial problem and research objective.

BACKGRAOUND OF STUDY

This section explains the research methods, procedures and analytical frame work of the

present study. The research methods have been designed to fit the main objectives of the

study. Since not much research work has been done in the area of types of loan provided by

various types of bank from the customers’ point of view, it was decided to undertake one such

study in Khambhaliya district which is the fastest growing city in Gujarat, as per the latest

census data. It was decided to select one Co-operative bank namely commercial Co-operative

Bank Ltd., so that I undertake this bank.

REVIEW OF LITERATURE

A Research Article entitled “Housing Loan Frauds in Banks: Some Precautionary

Measures” by Phogat M. (2006)

This article gives the measures for the housing loan frauds in banks. The author concluded that

housing for all envisaged 2 million houses every year out of which 0.7 million are in the urban

sector. Government provided certain relief under Income Tax Act. It motivated many people to

avail housing loan. The author thinks that different frauds committed on various banks can be

divided into the following two categories. i.e. Pre sanction and Post Sanction. KYC related due

weakness in pre inspection, Benami A/c, forged title deeds, by selling same flat to different

people, inflated salary certificate, filing of IT return for the last three years in one lot and

particularly by paying a nominal amount of tax, valuation of the property is manipulated to

manage margin money are post sanction fraud. The precautions may be taken at the bank level

to avoid the assurance of fraud i.e. KYC norms be followed, main salary A/c should be verified,

loan should be granted against the flat / houses built by reputed builders only. An undertaking

from the builders for not been sold to any other person, search report of property to be

conducted by the advocate, original title deeds, property tax, electricity bill, kept on records.

Disbursement

of loan should be made after spot verification, title deed should be scanned through ultra violet

ray machines before mortgage and bank should independently verify the report and no middle

man should be involved in the process and entire KYC. So the author points out that above

mentioned precautions will enable the bankers to curb frauds and public money can be saved.

In Indian Journal of Marketing, May’04 Marketing of Banking Services

in the Globalize Scenario – Emerging Challenges- By Dr.

V.GOPALAKRISHNAN

“Banking services largely depends upon customer demands and their perceived Performance.

In urban and metropolitan sectors customers are more knowledge and demand more facilities

than offered. They are looking for services that are cheaper, faster and qualitatively better”

Research paper entitled ““ANALYSIS OF CUSTOMER’S PERCEPTION TOWARDS

PERSONAL LOAN”) by R.DINESH KUMAR may (2007)

The results and findings of this research study exemplifies the fact that an in-depth market

research has been conducted and all research work has been conducted and all the objectives

set for the research work has been fully accomplished and the analysis also performed to the

maximum extent possible. An in-depth study has been made on the aspect that influences the

CitiFinancial to be the best private financier. Customer satisfaction is the core element in the

business. For customer satisfaction the services have to be an edge over the other banks,

which

CitiFinancial has achieved. CitiFinancial is aptly targeted potential customers among the various

levels of people in Chennai. The CitiFinancial overall performance and services seems to be

highly satisfied.

STATEMENT OF PROBLEM

During one month my Summer Internship I learn so many thing and I find some problem

which is faced by Bank. commercial co-operative bank is local bank & faster growing. But

due to very less awareness to the customer of bank compare to other bank. So that Bank

need to more advertisement and publicity.

OBJECTIVE OF STUDY

Any activity done without any objective in a mind cannot turn fruitful. An objective provides a

specific direction to an activity. Objectives may range from very general to very specific, but they

should be clear enough to point out with reasonable accuracy what researcher wants to achieve

through the study and how it will be helpful to the decision maker in solving problem.

PRIMARY OBJECTIVE:

To know perception of people towards loans and advances at The commercial co-operative

bank ltd.

SECONDARY OBJECTIVE:

To gain the knowledge about different scheme & interest rate in the market.

To get knowledge out current market scenario.

CONTRIBUTION AND LEARNING FROM PROJECT

I have done my summer training a THE COMMERCIAL CO-OPERATIVE BANK LTD. I was

given in training by THE COMMERCIAL CO-OPERATIVE BANK LTD for during one month

which I learned about, its importance and the main focus on the awareness of loans & advances

among the people.

I have learned many valuable things which will be very helpful in my career.

I have learned about the loan & advances, its benefits and its importance.

I learned different type loan scheme of selected Bank and I come to know the

Preference about customer.

I have also come to know about the scope of bank in the market area.

RESEARCH

METHODOLOGY

Research:- “It is a process of planning, acquiring, analyzing, and disseminating relevant data,

information, and insights to decision makers in ways that mobilize the organization to take

appropriate action that, in turn, maximize business performance”

Methodology

Research methodology has many dimensions. It includes not only the research methods but

also considers the logic behind the methods used in the context of the study and explains why

only a particular method or technique has been used. It also helps to understand the

assumptions underlying various techniques and by which they can decide that certain

techniques will be applicable to certain problems and other will not. Therefore in order to solve a

research problem.

Research design

For my research I select the descriptive research.

Sampling method

Convincing sampling method

Sampling size

100 samples size

Sources of data

Primary Data

Secondary Data

Data collection method

Questionnaire

Data collection instrument

Dichotomous

Likert scale

Data Processing

Analysis of our research is divided in to four parts,

Screening,

Coding,

Decoding, and

Tabulation

ANALYSIS OF RESEARCH WORK

1. Where do you belong to?

Area %

Urban 43

Rural 57

From the above data we can say that there are 43% of respondent from the urban while there

are 57% of the respondents of rural. So we can say that majority of the respondents of the rural.

This is good opportunity of development of the bank.

2. How much your yearly income:-

Income %

Below 150000 42

150000-300000 25

300000-450000 15

450000or Above 18

From the above data we can say that there are 42% of the respondents income is below the

150000. So, that most of respondents are preferred long duration to get the interest from that

respondents. And also more focus on the income between 150000-300000

3. Are you Aware about banking services?

Type of services

No. of

respondent

Loan 42

Mutual fund 12

Insurance 36

Advances 10

0

5

10

15

20

25

30

35

40

45

%

Below 150000

150000-300000

300000-450000

450000or Above

From the data we can say that there are majority people are aware about loan & insurance. So

bank is also getting view about the other entire product & market trend.

4. How many banking services you have utilized?

No. of

Respondent

Loan 43

Mutual fund 7

Insurance 36

Advances 4

OTHER 10

0

10

20

30

40

50

60

70

80

90

No. of respondent

Loan

Mutual fund

Insurance

Advances

From the data we can say that there 62 respondent utilized the insurance then 43 of the

respondent utilised loan. So that bank main product is giving more earning & regular inflow is

maintained.

5. Have you taken any loan from bank?

%

Yes 67

No 33

0

10

20

30

40

50

60

70

No. of Respondent

Loan

Mutual fund

Insurance

Advances

OTHER

0

10

20

30

40

50

60

70

%

Yes

No

From the data we can say that 67% taken loan from bank. While 33% respondent say not taken

any loan. There are majority respondents taken loan from the bank. This is good experience of

bank regarding the respondent are preferred more loan.

6. Yes, then which bank?

%

SBI 17

Co-operative bank 27

Other than SBI 35

Other 21

From the data we can say that there are 35% of respondent take the loan from the BOI. Then

co-operative bank also develop very well in the rural area. Because there are given the loan on

the agriculture at very low interest rate.

0

5

10

15

20

25

30

35

%

SBI

Co-operative bank

BOI

Other

7. Which types of Loan?

%

Housing loan 7

Vehicle loan 28

Agriculture loan 35

Education loan 21

Other 9

From the data we can say that there are 35% of the customers are loan taken for the

agriculture purpose means the rural area more use this type of the loan at the low interest rate.

Then second no. of the loan taken for the vehicle. Because now a day every people more prefer

this type of the loan.

8. Which are the other banks you have referred before taking any loan?

0

5

10

15

20

25

30

35

%

Housing loan

Vehicle loan

Agriculture loan

Education loan

Other

%

SBI 45

From the above the data we can say that there are majority people are the refer the SBI & BOI

means the very well developed this bank at the far away. This type of the bank are the given the

loan very low interest rate. So more competition in the market. Also kwon the market scenario.

9. Which schemes attract the customer while taking loan from particular bank?

%

EMI 28

Low interest rate 42

Security 6

Term duration 17

Other 7

0

5

10

15

20

25

30

35

40

45

%

SBI

HDFC

BOI

Other

HDFC 5

BOI 35

Other 15

From the data we can say that there are the customers more attract of the scheme of the

low interest compare to the other bank. This is good experience of the bank means which type

the schemes provides the respondent.

10. Sources from where you come to know about scheme provided in loan?

%

Newspaper 30

T.V. 33

personal calling 10

Hoarding 27

0

5

10

15

20

25

30

35

%

Newspaper

T.V.

personal calling

Hoarding

0

5

10

15

20

25

30

35

40

45

%

EMI

Low interest rate

Security

Term duration

Other

From the data we can say that there are T.V. is the more powerful source of the create the

awareness in the customer so the first position of the T.V. in the chart and then most effective

source of the create awareness among the large audience. So that it is the helpful to decide the

budget to the bank.

11. Are you aware about commercial co-operative bank ltd?

%

Yes 72

No 28

From the data we can say that there are 28% respondent are aware about the commercial co-

operative bank. While72% respondent are unaware about the commercial co-operative bank ltd.

12. Are you interested in commercial co-operative bank ltd.?

%

Yes 37

No 63

0

10

20

30

40

50

60

70

80

%

Yes

No

From the above data we can say that there are 37% respondent give the positive view about

bank. While 63% respondent give negative view because

Not aware about this bank.

Far away from our place.

Development is low of the bank

0

10

20

30

40

50

60

70

%

Yes

No

Results and findings

42% respondent’s income is below the 150000.

There are respondent more aware about insurance & loan.

There are more customer using 40%loan and 35% insurance

.

There are respondent 67% of the taken the loan from bank.

I understand that customer more prefers the BOI.

There is more customer using the agriculture loan from the bank.

Before the taken the loan respondent was refer 35% SBI.

Customer is more attracting with scheme of 42% low interest rate.

T.V. is more powerful source of create awareness.

Majority customer is not aware about JCCB.

JCCB have opportunities to develop this function.

7.1 SUGGESTIONS

After completing my training and project work, I would like to give some

suggestions to the bank.

The inspection of pre and post sanction should be more strict and regular.

The bank should give ATM and any branch banking facility to its member in near

future.

Whole term and condition are explaining the customer at the time of the sanction

loan.

When first installment will be due at that time bank should inform the customer

about the due installment.

Bank should require more marketing & publicity

Bank must create the website in the competitive era.

7.2 CONCLUSION

After having all the required information for preparing my report, I have

tried to analyze each and every function of commercial co-operative bank. During my report all

the member of The commercial co-operative bank ltd. had well co-operate me. I have also found

that there is a very good level of commitment in all the staff members. During my report

preparation, I have tried to cover each functional area of the bank; I can conclude that the is

one of the leading banks in banking sector, and with advanced technologies and educated staff

to trying to positioning in the banking market. But due to some weakness of co-operative sector

is also suffering from such limitations.

So, at last we can conclude that the COMMERCIAL CO-OPERATIVE

BANK LTD. is being leader in the market and due to great leadership of Mr. Pravinchandra V.

Chotai (chairman) bank is getting great goodwill in the market and also can create good

corporate image in banking sector.

For that all my wishes always with the commercial co-operative bank

ltd.. I wish them for better achievement

Title: - An analytical report on Loans and Advances in commercial

co-operative bank ltd.

Questionnaire

Please tick your response in the space provided. In all such cases where more than one

response is necessary under the same Question, please tick as many responses as many

responses as are applicable.

Personal Detail:-

Name: - _________________________________________________

Gender:-

Male

Female

Occupation:-_____________________________

Contact No:-_______________________________

Where do you belong to?

Urban

Rural

How much your yearly income:-

Below to 150000

150000-300000

300000-450000

450000 or above

Are you having Bank A/c?

Yes

No

Are you Aware about banking services?

Loan

Mutual fund

Insurance

Personal financial

How many banking services you have utilised?

Loan

Mutual fund

Insurance

Person financial

Have you taken any loan from bank?

Yes

No

Yes, then which bank?

SBI

Co-operativebank

BOI

Other _______________________

Which types of loan?

Housing Loan

Vehicle Loan

Agriculture Loan

Education Loan

Industrial loan

Which are the other banks you have referred before taking any loan?

SBI

HDFC

BOI

Other _____________

What are the schemes attracts you to take loan from particular bank?

EMI

Low interest rate

Security

Term duration

Sources from where you come to know about scheme provided in loan?

News paper

T.V.

Personal calling

Are you aware about COMMERCIAL CO-OPERATIVE BANK LTD.?

Yes

No

Are you interested in commercial co-operative bank ltd.?

Yes

No

BIBILIOGRAPHY

BIBILIOGRAPHY

Bhattacharya k.m. & agarwal O.P. banking & finance, Himalaya

publishing house, new Delhi.

Chaudhary C.M. recent trends in Indian banking, sublime

publication, Jaipur.

Companies final report

www.askme.com