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ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude to my thesis guide,
“Mr. Jagdeep Singh“. His understanding, encouraging and
personal guidance have provided a good basis for the present
report. I gratefully acknowledge for his advice and guidance from
the very early stage of this research as well as giving me
extraordinary experiences throughout the work. Above all and the
most needed, he provided me unflinching encouragement and
support in various ways.
I am also thankful to all employees who
provide the practical information about the banking process,
practical show the working criteria of the bank and those employee
whose “inspiration leads to dedication leads to accomplishment,
Accomplishment leads to acknowledgement.
It’s my immense pleasure to
acknowledge great fully for my parents to give me financial help in
collecting information and sincere thanks to my friends who gave
me suggestion this project over and above.
Last but not the least I am thankful to
almighty god for completing this project report.
Hans Raj Verma
1
CONTENT
CHAPTER TITLE PAGE NO.
1. Company profile/Introduction
2. Organizational Structure
3. Products and Services of HPSCB
4
5. SWOT Analysis
6. Findings and conclusions
7. Personal learning
2
INTRODUCTION
Indian banking sector has tremendously enhanced from past decade. The
main reason behind this growth is continuous urbanization and globalization.
Banking in India has its origin as early as the Vedic period. It is believed that
the transaction from money lending to money banking must have occurred
even before Manu, the great Hindu Jurist, who has devoted a section of his
work to deposits and advances and laid down the rules relating to rate of
interest. During Mogul Period, the indigenous bankers played a very important
role in lending money and finance foreign trade and commerce. The others
that followed were the Bank of Hindustan and the Bengal Bank. The Bank of
Hindustan is reported to have continued till 1906 while the other two failed in
the meantime. In the first half of the 19th century the East India Company
established three banks, the Bank of Bengal in 1809, the Bank of Bombay in
1840and the banks of Madras in 1843. These three banks are also known as
the presidency banks were amalgamated in 1920 and a new Bank-the
imperial bank of India established on 27th January 1921. With the passing of
the state act 1955 the undertaking of the imperial Bank of India is taken over
by the newly constituted the state bank of India.
Banking dates back to 1786, the first bank established in India, then
nationalization of banks in 1969 and recently the liberalization of the same
since 1991. RBI is the central bank of the country since 1934. It regulates,
controls credit, issues licenses and functions as banker of all banks and the
government. With the advancement of technology, banking sector has
become more easy, fast, accurate and also time saving. ATMs, Mobile
Banking, SMS Banking and Net Banking are only the tip of an iceberg. In
3
India the banking sector is segregated as public or private sector banks,
cooperative banks and regional rural banks. Foreign banks have been given
different head followed by upcoming foreign banks in this section.
Without a sound and effective banking system in India it cannot have a
healthy economy. The banking system of India should not be hassle free but
should be able to meet new challenges posed by the technology and any
other external and internal factors. For the past three decades India’s banking
system has several outstanding achievements to its credit. The most striking
is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In India banking system has reached even to the
remote corners of the country. This is one of the main reasons of India’s
growth process.
The government’s regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They are:
1. Early phase from 1786 to 1969 of Indian banks.
2. Nationalization of Indian banks and up to 1991 prior to Indian banking
sector reforms.
3. New phase of Indian banking system with the advent of Indian
Financial & banking sector reforms after 1991.
Meaning of bank
You know people earn money to meet their day to day expenses on food,
clothing, education of children, housing etc. They also need money to meet
future expenses on marriage, higher education of children, house building and
other social functions. These are heavy expenses, which can be met if some
money is saved out of the present for people to work and earn their living. The
necessity of saving money was felt by people even in olden days. They used
to hoard money in their homes. With this practice, savings were available for
4
use whenever needed, but it also involved the risk of loss by theft, robbery
and accidents. Thus, people were in need of a place where money could be
saved safely and would be available when required. Banks are such places
where people can deposit their savings with the assurance that they will be
able to withdraw money from the deposits whenever required. People who
wish to borrow money for business and other purposes can also get loans
from the banks at reasonable rate of interest. Bank is a lawful organization,
which accepts deposits that can be withdrawn on demand. It also lends
money to individuals and business houses that need it. Banks also render
many other useful services – like collection of bills, payment of foreign bills,
safe-keeping of jewelers and other valuable items, certifying the credit-
worthiness of business, and so on. Banks accept deposits from the general
public as well as from the business community. Anyone who saves money for
future can deposit his savings in a bank.
Businessmen have income from sales out of which they have to make
payment for expenses. They can keep their earnings from sales safely
deposited in banks to meet their expenses from time to time. Banks give two
assurances to the depositors:-
a. Safety of deposits, and
b. Withdrawal of deposits, whenever needed
On deposits, banks give interest, which adds to the original amount of deposit.
It is a great incentive to the depositors. It promotes saving habits among the
public. On the basis of deposits banks also grant loans and advances to
farmers, traders and businessmen for productive purposes. Thereby banks
contribute to the economic development of the country and well being of the
people in general. Banks also charge interest on loans. The rate of interest is
generally higher than the rate of interest allowed on deposits. Banks also
charge fees for the various other services, which they render to the business
community and public in general. Interest received on loans and fees charged
for services which exceed the interest allowed on deposits are the main
sources of income for banks from which they meet their administrative
expenses.
5
The activities carried on by banks are called banking activity. ‘Banking’ as an
activity involves acceptance of deposits and lending or investment of money.
It facilitates business activities by providing money and certain services that
help in exchange of goods and services. Therefore, banking is an important
auxiliary to trade. It not only provides money for the production of goods and
services but also facilitates their exchange between the buyer and seller. You
may be aware that there are laws which regulate the banking activities in our
country. Depositing money in banks and borrowing from banks are legal
transactions. Banks are also under the control of government. Hence they
enjoy the trust and confidence of people. Also banks depend a great deal on
public confidence. Without public confidence banks cannot survive.
Why Do You Need a Bank Account?
With all the changes taking place in the banking marketplace today, you might
ask yourself do I really need a bank. Why can’t I just find a way to avoid all
these fees? What types of accounts are available to me? It can be mind-
boggling. There are many reasons why a banking relationship is vital:
When you deposit money in a bank, you have the comfort of knowing your
money is in a safe, insured place.
Most people and businesses, including your employer, need to have a
paper trail to document transactions. Checks are a perfect way to keep a
permanent record of business activities, even when they are personal.
Even if you bank online, there is a well-documented trail of all your
transactions.
Using a personal checking account can save your time and money.
Imagine how much lost time, travel expense, inconvenience, and potential
aggravation you could incur every month if
You had to buy money orders or, worse yet, visit all your creditors in
person. The ability to simply write a check and drop it in the mail is
invaluable.
For example, every time you need cash to pay a bill, you simply write a
check to your creditor. Your creditor deposits your check in their bank.
6
Your creditor’s bank processes your check through the Federal
Reserve Banking System (The Federal Reserve Banking System
operates as the U.S.Central bank and, among other activities, provides
banking services to financial institutions and the U.S.government), and
the money is pulled from your checking account. Result for very little
effort on your part, your creditor gets paid.
The same principles apply to savings accounts. Establishing a savings
account keeps your money safe while allowing easy access to it. Plus, you
get the benefit of earning some interest on your balance and putting your
money to work for you.
How Banks Operate
In addition to providing a safe place for your money, banks also loan money to
businesses and consumers. A large portion of a bank’s business is lending.
How do banks get the money they loan? The money comes from depositors
like you. Banks use these deposits to make loans. Every fee you pay to your
bank enables them to reinvest in themselves, giving them more money to loan
to you, for another fee, of course.
Banks are in the business to make a profit. Their profit generally comes from
the difference in interest paid to depositors and the interest earned on loans.
Making loans helps banks make money, and offering checking accounts is a
way to attract deposits, which banks turn into profitable loans.
Banks cannot legally loan all of their deposited money all at once. The
Federal Reserve Board, which is a part of the Federal Reserve System,
requires that banks must keep a certain percentage of their deposits in
reserve at all times, assuring you , the customer, can withdraw your money
when you need to. The remaining funds, which are not subject to reserve, are
used to make consumer loans.
Other Services Offered by Banks
CREDIT CARDS
7
PERSONAL LOANS
HOME AND CAR LOANS
MUTUAL FUNDS
BUSINESS LOANS
SAFE DEPOSIT BOXES
DEBIT CARDS
TRUST SERVICES
SIGNATURE GUARANTEES
Types of Accounts Typically Offered by Banks
Although banks offer a wide variety of accounts, they can be broadly divided
into five types: - savings accounts, basic checking accounts, interest-bearing
checking accounts, money market deposit accounts, and certificates of
deposit. All five are insured by the FDIC (in most cases, up to $100,000 per
account). Most banks offer all these types of accounts, so the bank you
choose probably won’t restrict this decision, although it does make sense to
choose the account type you want first, so you can focus on that type as you
shop around to various banks. Here is a brief description of each type of
account:
Savings Accounts
These are intended to provide an incentive for you to save money. You can
make deposits and withdrawals, but usually can’t write checks. They usually
pay an interest rate that’s higher than a checking account, but lower than a
money market account or CD. Some savings accounts have a passbook, in
which transactions are logged in a small booklet that you keep, while others
have a monthly or quarterly statement detailing the transactions. Some
savings accounts charge a fee if your balance falls below a specified
minimum.
Basic Checking Accounts
Sometimes also called “no frills” accounts, these offer a limited set of services
at a low cost. You’ll be able to perform basic functions, such as check writing,
but they lack some of the bells and whistles of more comprehensive accounts.
8
They usually do not pay interest, and they may restrict or impose additional
fees for excessive activity, such as writing more than a certain number of
checks per month.
Interest-Bearing Checking Accounts
In contrast to “no frills” accounts, these offer a more comprehensive set of
services, but usually at a higher cost. Also, unlike a basic checking account,
you are usually able to write an unlimited number of checks. Checking
accounts which pay interest are sometimes referred to as negotiable order of
withdrawal (NOW) accounts. The interest rate often depends on how large the
balance in the account is and most charge a monthly service fee if your
balance falls below a present level.
Money Market Deposit Accounts (MMDAs)
These accounts invest your balance in short-term debt such as commercial
paper, treasury bills, or CDs. The rates they offer tend to slightly higher than
those on interest-bearing checking accounts, but they usually require a higher
minimum balance to start earning interest. These accounts provide only
limited check writing privileges (three transfers by check, and six total
transfers, per month), and often impose a service fee if your balance falls
below certain level.
Certificates of Deposit (CDs)
These are also known as “time deposits”, because the account holder has
agreed to keep the money in the account for a specified amount of time,
anywhere from three months to six years. Because the money will be
inaccessible, the account holder is rewarded with a higher interest rate, with
the rate increasing as the duration increases. There is a substantial penalty
for early withdrawals, so don’t select this option if you think you might need
the money before the time period is over (the “maturity date”).
BANKING:-
9
Banking is engaging in the business of keeping money for savings and
checking accounts or for exchange or for issuing loans and credit etc. or it is
transacting business with a bank ; depositing or withdrawing funds or
requesting a loan etc.
The term bank derived from that Italian word “Banka” and the banking refers
to the companies that provides banking products and services such as
checking and saving, deposits, loans, leases, mortgages credit cards ATM
network, securities brokerage investment banking insurance, mutual funds
and pensions (Klamath, 2005).
A bank is a financial institution that accepts deposits into lending activities.
Banks primarily provide financial services to customers while enriching
investors.
Banking means accepting for the purpose of lending or investment of deposits
of money from the public repayable on demand or otherwise one withdraw
able by cheque, draft or otherwise.
Banks in India were started on the British Pattern in the beginning of the 19th
century in those days, all the. At the time of second world war about 1500 joint
stock banks were operating in undivided India, out of which over 1400were
non-scheduled banks. These banks were managed by bad and dishonest
management and naturally there were number of failures. Hence the
government has to step in and the banking companies’ act 1949 was enacted
which led to gradual elimination of weak banks that were not in the position of
fulfills the various requirements of the act. In order to strengthen the weak
banks and receive public confidence in banking system a new section45 was
inserted in the Banking Regulation Act in September 1960,Empowering the
government of India to compulsory amalgamate weak unit with stronger ones
on the recommendations of RBI,
A financial institution is not a banking institution if it does not perform the two
primary functions: (i) accepting chequeable deposits, and (ii) making
advances or offering loans.
Thus,
10
LIC is a financial institution but not a bank, as it offers loans but does not
accept chequeable deposits from the people.
Post offices are not banks, even though they accept deposits from the
people. Because they do not offer loans.
Role of Banking in Economic development
Banks provide funds for business as well as personal needs of individuals.
They play a significant role in the economy of a nation. Let us know about the
role of banking.
Banks serve as a channel between savers and investors. Savers deposit
their funds with the banks, and investors borrow the funds from the banks.
In the absence of banking system, bulk of the savings would have the
investors
It encourages savings habit amongst people and thereby makes funds
available for productive use.
It acts as an intermediary between people having surplus money and
those requiring money for various business activities.
It facilitates business transactions through receipts and payments by
cheque instead of currency.
It provides loans and advances to businessmen for short term and long
term purposes.
It also facilitates import export transactions.
It helps in national development by providing credit to farmers, small- scale
industries and self-employed people as well as to large business houses
which lead to balanced economic development in the country.
It helps in raising the standard of living of people in general by providing
loans for purchase of consumer durable goods, houses, automobiles, etc.
Banks help rural sectors. They give liberal loans at concessional rate of
interest to the farmers for the purchase of good seeds, agricultural tools
and equipments for the sake of agriculture.
By providing credit to the entrepreneurs, banks encourage innovations.
New products come to the market. It has a favorable effect on economic
development.
11
Types of Banks
There are various types of banks which operate in our country to meet the
financial requirements of different categories of people engaged in agriculture,
business, profession, etc. On the basis of functions, the banking institutions in
India may be divided into the following types:
A. Commercial Banks:
i. Private sector banks
ii. Public sector banks
iii. Foreign banks
B. Development Banks
C. Specialized Banks(EXIM Banks, SIDBI,NABARD)
D. Central Banks (RBI, in India)
E. Cooperative Banks:
i. Primary credit societies
ii. Central cooperative banks
iii. State cooperative banks
Commercial Banks
A commercial bank is that financial institution which accepts deposits from the
people and gives loans for the purpose of consumption or investment.
Besides, commercial banks these days perform various other functions such
as credit creation, transfer of funds, agency jobs and general services. In
addition to giving short-term loans, commercial banks also give medium-term
and long-term loan to business enterprises. Now- a- days some of the
commercial banks are also providing housing loan on a long-term basis to
individuals.
Types of Commercial Banks
12
Commercial banks are of three types i.e., Public sector banks, Private sector
banks and Foreign banks.
i. Public Sector Banks: These are banks where majority stake is held
by the government of India or Reserve Bank of India. Examples of public
sector banks are: State Bank of India, and nationalized banks like Bank of
India and Canara Bank etc.
ii. Private Sector Banks: In case of private sector banks majority of
share capital of the bank is held by private individuals. These banks are
registered as companies with limited liability. For example, HDFC Bank,
The Jammu and Kashmir Bank Ltd., Axis Bank, Bank of Rajasthan etc.
iii. Foreign Banks: These banks are registered and have their
headquarters in a foreign country but operate their branches in our
country. Some of the foreign banks operating in our country are Hong
Kong and Shanghai Banking Corporation (HSBC), CITI Bank, American
Express Bank, Standard & Chartered Bank, Grind lay’s bank etc. The
number of banks operating in our country has increased since the financial
sectors reforms of 1991.
Development Banks
Business often requires medium and long-term capital for purchase of
machinery and equipment, for using latest technology, or for expansion and
modernization. Such financial assistance is provided by Development Banks.
They also undertake other develop subscribing to the shares and debentures
issued by companies, in case of under subscription of the issue by the public.
Industrial Finance Corporation of India (IFCI) and State Financial
Corporation’s (SFCs) are examples of development in India.
Specialized Banks
There are some banks, which cater to the requirements and provide overall
support for setting up business in specific areas of activity. EXIM Bank, SIDBI
and NABARD are examples of such banks. They engage themselves in some
13
specific area or activity and thus, are called specialized banks. Let us know
about them.
i. Export Import Bank of India (EXIM): If you want to set up a
business for exporting products abroad or importing products from foreign
countries for sale in our country, EXIM bank can provide you the required
support and assistance. The bank grants loans to exporters and importers
and also provides information about the international market. It gives
guidance about the opportunities for export or import, the risks involved in
it and the competition to be faced, etc.
ii. Small Industries development Bank of India (SIDBI): if you
want to establish a small-scale business unit or industry, loan on easy
terms can be available through SIDBI. It also finances modernization of
small-scale industrial units, use of new technology and market activities.
The aim and focus of SIDBI is to promote, finance and develop small-
scale industries.
iii. National Bank for Agricultural and Rural Development
(NABARD): It is a central bank or apex institution for financing
agricultural and rural sectors. If a person is engaged in agriculture or other
activities like handloom weaving, fishing, etc. NABARD can provide credit,
both short-term and long-term, through regional rural banks. It provides
financial assistance, especially, to co-operative credit, in the field of
agriculture, small-scale industries, cottage and village industries
handicrafts and allied economic activities in rural areas.
Central Bank
Central Bank is the apex bank responsible for controlling the entire banking
system of a country. Such a bank does not deal with the general public. It acts
essentially as government’s banker; maintain deposit accounts of all other
banks and advances money to other banks, when needed. In case of
underdeveloped economies, it is instrumental in the process of growth. It is
the sole agency of note issuing in a country. It serves as a banker to
government and controls the supply of money in the country. In India,
14
Reserve Bank, in England, Bank of England and in America Federal Reserve
System operates as central bank. Although, the first central bank in the world
was set up in 1668 in Sweden, effective central banking came into being in
1694 with the establishment of Bank of England.
Co-operative Banks
The word co-operative stands for willing to work together in the production
and marketing of goods, it is profitable to both producer and consumer to
avoid middlemen. If, for instance, farmers can set up their own markets
instead of sending their produce to a wholesaler, they can sell at a price that
includes only their costs and a fair profit: Additional wholesale and retail costs
are avoided, and prices to the consumer are kept relatively low. In order to
take part in this kind of direct production-marketing enterprises, people have
formed cooperatives these are voluntary associations of either producers or
consumers who band together group member’s benefits for them.
Cooperative organizations formed for financial benefits exist in most
countries of the world. The cooperative way of doing business takes many
forms, ranging from local to regional and federated organizations and from
highly specialized to multipurpose societies. The cooperative banks have a
three tier structure. At the top level there are state cooperative banks, at the
district level there are central cooperative bank, at local level there are rural
primary cooperative banks and urban primary cooperative banks.
Cooperative banking structure h unique position in the rural credit delivery
system of India. The cooperative banking sector which is now a century old
has a significant role in the field of credit to the rural through the short-term
and long-term structure from many years the cooperative banks are the prime
institutional agencies with a vast network, wide coverage and reach up to the
remote areas. Keeping the view of cooperation the H.P. State Cooperative
Bank was established in Himachal Pradesh in august 1953 under the
15
cooperative Society Act, 1912. Onward from its establishment the bank is
developing day by day and satisfying the needs of many people.
Seven Principles of Cooperation:
1. Voluntary and Open Membership
2. Democratic Members Control
3. Member Economic Participation
4. Autonomy and Independence
5. Education Training and Information
6. Cooperation among Co-operatives
7. Concerned for the community
Types of Co-operative Banks:
Cooperative is a voluntary association of people of usually limited means
pursuing for common cause through democratic & cooperative principles. A
bank is a financial institution accepting public from the public repayable on
demand for onward lending.
A. Short term Structure:
i. State Cooperative Bank
ii. District Central Cooperative Bank
iii. Primary Cooperative Societies
B. Long term Structure:
i. State Cooperative Agriculture and Rural Development Bank
ii. District Cooperative Agriculture and Rural Development Bank
iii. Primary Cooperative Societies
C. Urban Commercial Banking.
The banks of Short-term Credit Structure generally advance loans for short-
term & medium term only. Whereas the long-term credit structure takes care
16
of long term credit requirements. The urban coop. banks provide commercial
banking services in urban areas.
There are three types of co-operative banks operating in our country. They
are primary credit societies, central cooperative banks and cooperative banks.
These banks are organized at three levels, village or town level, district level
and state level.
I. Primary Credit Societies: These are formed at the village or town
level with borrower and non-borrower members residing in one locality.
The operations of each society are restricted to a small area so that the
members know each other and are able to watch over the activities of
all members to prevent frauds.
II. Central Co-operative Banks: These banks operate at the district
level having some of the primary credit societies belonging to the same
district as their members. These banks provide loans to their members
(i.e., primary credit societies) and function as a link between the
primary credit societies and state co-operative banks.
III. State Co-operative Banks: These are the apex (highest level) co-
operative banks in all the states of the country. They mobilize funds
and help in its proper channelization among various sectors. The
money reaches the individual borrowers from the cooperative banks
through the central co-operative banks and the primary credit societies.
COOPERATIVE MOVEMENTS IN HIMACHAL PRADESH: AN
OVERVIEW
The word “Himachal” derives its origin from the two words, Him and Anchal
which means “snow” and “lap” respectively. Thus, entomologically, Himachal
Pradesh stands for the region which lies in the slopes and foothills of snow i.e.
the Himalaya. Before 1948, this region was known as the Punjab Hill states.
In March 1948, Himachal Pradesh emerged on the national scene as a
centrally administrated territory which comprised 21 East Punjab Hill State. In
1954, the territory of part ‘C’ state of Bilaspur was merged with Himachal
17
Pradesh. In 1966, on the basis of the report of the three members Punjab
States Reorganization Commission, Hilly Areas of the erstwhile Punjab mainly
Kangra, Kullu, Shimla, Nalagarh, Lahaul and Spitti and some area of Hoshiar
district were merged into Himachal Pradesh.
In 1971 Himachal Pradesh had given the status of full-fledged state.
Presently, the state comprises of twelve districts namely Shimla, Chamba,
Kangra, Una, Bilaspur, Hamirpur Mandi, Kullu, Lahaul and Spitti, Solan,
Sirmourand Kinnaur. According to the census report of 1991, the state has a
total population of 51, 11,079. District Kangra tops the list of the population
size while Lahaul and Spitti have the lowest population. Geographically,
Lahaul and Spitti have the largest area while Hamirpur has the smallest one.
HISTORY OF CO-OPERATIVE BANK:
The beginning of Indian cooperative movement was placed at 1904;”The
cooperative credit societies Act” was passed on 25th March, 1904. The Indian
Cooperative Movement continued to be a predominantly credit movement till
the eve of interdependence. After interdependence, cooperation was
accorded an important place in the planned economic development.
Cooperative Credit Institutions as an integral part of Rural Credit System in
India has completed 104 years, the Commercial Banks and Regional Rural
Banks have been for almost 37 and 31 years respectively. In fact, this
structure has been very unique as compared to any other country in the world.
It serves around 120 million rural households residing in about seven lakh
villages through its 92000 primary agricultural credit societies, 1146 branches
of short-term cooperatives, 2213 branches of long term cooperatives, 32948
branches of commercial banks and 11426 branches of regional rural banks.
The Himachal State Co-operative Bank was registered on 21th August 1953
under the Cooperative Societies act 1912 after amalgamating the Mahasu
Central Cooperative Bank Ltd; the Mandi Central Cooperative Bank; and the
Chamba Central Cooperative Bank Ltd. The Bank started its operations on
15th March 1954. In the year 1955, Bank of Sirmour, a Joint Stock Bank was
also merged in it. As a result of reorganization of Punjab State on 1st
18
November, 1966, the erstwhile districts of Kangra, Kullu, and Lahaul & Spitti,
parts of Hoshiarpur, Gurdaspur and Ambala districts were transferred end
merged with Himachal Pradesh. As a result, the Cooperative Banking System
of the merged areas was also transferred to Himachal Pradesh. In these
areas, the Kangra Central Cooperative Bank and the Jogindra Central
Cooperative Bank were already functioning.
In the year, 1972 Solan was given the status of separate district. Two
branches of Himachal Pradesh State Cooperative Bank Ltd; were functioning
at Solan and Arki, while one branch of Jogindra Central Cooperative Bank
was functioning at Totu, which fell in Shimla district. The liabilities and assets
of these branches were transferred to each other on 29th September 1976.
Now in Himachal Pradesh, the state cooperative bank Ltd; with Head Office at
Shimla is functioning as a central cooperative bank in 6 districts namely
Shimla, Bilaspur, Mandi, Chamba, Sirmour, and Kinnaur having 36 blocks.
The Kangra Central Cooperative Bank with Head Office at Dharamashala is
functioning as a central cooperative bank in 5 districts having 28 blocks. In
Solan district, the Jogindra Central Cooperative Bank is catering to the needs
of people in 5 blocks. Besides, being a state cooperative bank for the stat as
whole, the Himachal Pradesh cooperative bank is working as the financing
agency for the 6 districts of state and an apex bank for whole of the state. The
Himachal Pradesh Co-operative bank is serving the people of the State
through a network of 190 branches and Extension Counter of which about
94% is in the rural areas of the State and one branch at New Sabzi Mandi
Azadpur New Delhi for the benefit horticulturists of the State.
PERFORMANCE OF THE BANK OVER THE YEARS
(Fig. In Rs.Lacs)
Particular 1955 2003 2005 2006 2010 31-03-
2011
30-06-
2011
No. of
Branches
10 142 148 154 175 175 175
Share
Capital
7.32 740.08 761.98 757.73 814.00 837.69 837.69
19
Deposits 41.14 150674.29 186268.70 212052 494177 500552 503146
Loans &
Advances
29.19 41863.69 77044.47 78564 164485 221043 225149
Investment 8.25 129996.00 140055.89 170735 385951 390487 387395
Working
Capital
52.23 193082.89 246227.80 278129 592042 662237 657468
Recovery
%age
- 68.88 79.08 72.24 72.62 78.11 57.67
Profit - 8297
(Gross
)
What are the functions of Cooperative Banks in India?
The cooperative bank in India plays an important role even today in rural
financing. The business of cooperative bank in urban areas also has
increased phenomenally in recent years due to the sharp increase in the
number of primary co-operative banks.
Cooperative Banks in India are registered under the Co-operative
Societies Act. The cooperative bank is also regulated by the RBI. They are
governed by the Banking Regulations Act 1949and Banking Laws (Co-
operative Societies) Act, 1965.
Cooperative banks in India finance rural areas under:
Farming
Cattle
Milk
Hatchery
Personal finance
Cooperative banks in India finance urban areas under:
Self-employment
Industries
Small scale units
Home finance
Consumer finance
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Personal finance
Main Features of Cooperative Bank:
1. The bank is conscious of its main objective to the economic interests of
the members of the bank /rural masses in accordance with the
cooperative principles and to facilitate the operations of the cooperative
societies registered under the Act.
2. The H.P. State cooperative bank Ltd is serving the people of the state,
particularly rural masses through a network of 175 branches and 15
extension counters in six districts of Himachal Pradesh. The Bank follows
a policy of bank expansion in such a way that besides the financial
viability, social obligation aspect is also taken into consideration so that
every nook and corner of the rural areas is provided banking facilities.
3. The H.P. cooperative bank in rest of six districts is serving the people
through 180 branches of its two-affiliated district. Central Cooperative
banks viz. The Kangra Central Cooperative Bank & Jogindra Central
Cooperative Bank.
4. To meet the challenges of economic liberalization and technological
advancement. the bank has implemented the centralized core banking
solution (CBS) of Natural Technologies Ltd. In 14 prime branches and is
now capable of extending banking to its customers anywhere, with faster
processing and greater customer satisfaction.
5. The bank is fully computerized as on date with 53 branches under (CBS)
and under (TBA) system.
POSITIONAL STATUS
The Himachal Pradesh State Cooperative Bank works at the Apex level in the
hierarchy of the cooperative banking. It acts as the central financing agency to
the Kangra Central Cooperative bank & Jogindra Central Cooperative bank
the bank has the working capital of Rs. 418334.59 lacks and deposits are
343375.01lacks.
MISSION AND VISION
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Mission/Targets of the bank are to help the self helped groups by providing
them loans at low rate. Providing the education to the workers/employees of
the cooperative societies. Managing the financial status of the cooperative
societies.
I. Connecting all the branches with the core banking system (CBS) to
provide the online banking facility till 2010.
II. Installing the ATM Machines in all the branches.
III. Achieving the schedule status for the bank.
IV. Providing the retail banking to the customers with the help of
Information Kiosk.
V. Providing the SAMAGR banking facilities to the customer in one
branch.
VISION
I. To providing the loans to the cooperative societies to establish the
viaduct pariyojna.
II. Starting the new schemes for the cooperative societies to recover the
NPA (Non Performing Assets).
III. Opening the education center for cooperative societies to
improve/increase the business through giving them proper training
&suggestions.
IV. Providing the loans for new schemas time to time and loans schemes
should be easily understood by the people.
V. Repairing the plans for encouraging &awarding the employees of the
Bank.
Present Status of Bank
In term of market share the market share of the bank in the
Himachal Pradesh is about 55% of the total shares of the banks in
Himachal Pradesh. When we talk about the size of the bank it has
175 branches all over the Himachal Pradesh. The major
competitors of the Himachal Pradesh State Cooperative Bank and
its alliance are SBI, ICICI, Punjab National Bank, UCO bank and
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other banks. In case if the bank has shortage of money and bank
needs the money is the share holders or the RBI. When we say
bank need money then the question arises why the bank need the
money it may be for lending the money to the needy persons, or to
provide the money to the depositors in case when the depositor
takes the money back or person who takes the loan are known as
the customers of the bank.
Awards and Other Recognitions
The H.P. State Cooperative Bank Ltd; has granted the national award for
achieving overall excellence in banking operations.
The H.P. State Cooperative Bank Ltd; “the first cooperative bank to
implement core banking computer solution (the facilitator of internet
banking) where as only few of nationalized banks are providing this
system”.
The H.P. State Cooperative Bank Ltd; is one of the few organizations
which are in true profit and are paying the dividend continuously.
The H.P. State Cooperative Bank ltd; has doubled the agricultural
advancements in about 2 years against the planned period of Govt. of
India of each 3years.
The H.P. State Cooperative Bank Ltd; is the winner of the “Best Outreach
Award” for SHGs.
Bank has innovated and implemented loan schemes to suit the
requirements of all sections of the society. The main emphases of banks
services are deprived rural masses.
Bank is also involved in implementing the programs related to eradication
of poverty run by the Govt. like SGSY/SJSRY, Rural Housing etc.
The credit needs of farmers are also fulfilled by the bank at low rate of 7%.
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ORGANISATIONAL STRUCTURE:
The organizational structure of the H.P. State Cooperative Bank Ltd Is shown
below:
General Body
Board of Directors
Executive Committee
Chairman
Chief Executive Officer (Managing Director)
General Manager (Admn.) General Manager (Banking)
Dy. General Manager (Admn.) Dy. General Manager
(Banking)
Section Heads Section Heads
Staff Staff
District Manager District Manager
Staff Staff
Branch Manager Branch Manager
Staff Staff
WORKING OF COOPERATIVE BANK: The bank works in three steps:
1. HEAD OFFICE: Various activities take place in the Head Office i.e.
planning, organizing, directing, staffing, controlling, reporting, and
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budgeting. There are various sections under which these activities take
place. The sections are:
Planning section: BDD(Business Development Department)
Recovery section
Recruitment section
Internal checks and control system
Statistical section
Computer section
Law section.
2. DISTRICT OFFICE: It is the controlling office for the managers.
3. BRANCH: Actual business of the bank takes place at the branch
The bank works by a 2-tier system i.e. the central cooperative bank and the
packs
CONTROL SYSTEM IN COOPERATIVE BANK:
One inspection of the branch by the district manager
Surprise visit in the head office
Report is submitted of the visit is given to the branches and one month
time is given for rectification if needed.
Section Visit in HP State Cooperative Bank and Their
Function:
Loans and Advances Section:
The main aim of loan and advances section is to treat their customer like a
guest. This section mainly looks that the documents which are needed by
the bank while giving loan are properly arranged or not and all the
certificates required are given by the customer or not.
In this bank the main preference is given to himachalies. This bank is of
the state and for the state.
An individual can only take loan up to 60 lakh including all cases or all
loans from all banks.
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Branch Control Section:
Branch control section regulates and monitors all the Branches of the
bank. This section mainly looks after the affairs of the branches.
This section is assigned the duty to look after the procedures of the
branches (this branch is following the entire circular and notices issued by
the bank or not).
If the instructions or notices or circulars are not followed by the bank a
formal letter is issued by the bank for further details.
Vigilance section:
The main purpose of vigilance section is to inspect the fraud and the
further action is taken.
The vigilance section inspect or verify things correspond and physically.
PRODUCT AND SERVICES OF THE HPSCB
A. DEPOSIT PORTFOLIO:
Demand Deposits
Current Account:
Current Account is a running account which may be operated upon any
number of times during a working date. There are no restrictions imposed on
the amount of the withdrawals from a Current Account.
Eligibility All types of customers.
Minimum Amount Individual Rs 2000/- minimum balance Rs.50/- for default
Other than Individual Rs3000/- minimum balance Rs. 100/- for default
Nomination Facility No clean overdraft is allowed against liquid security i.e.
duly discharges Term Deposit Receipts.
Saving Account:
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Savings Bank Account is the most common type of demand deposit. The
depositor can open the account, deposit and withdraw money as and when
required. There is a minimum balance required to be maintained and a
cheque book is given to the customer to enable withdrawals. The customers
can withdraw money using the withdrawal forms prescribed by bank and
available at the branch.
Eligibility All types of customers except firms
Minimum Amount Rs 1000with cheque book facility Rs 500 without Cheque
book Nomination Facility Nomination facility is available only for the
individual & joint accounts.
Time Deposits
Recurring Deposit (RD):
A Recurring deposit or cumulative deposit account is a variation of Savings
Bank account. It is an account intended to develop habits of savings on
regular basis by the depositor with limited means. In this account type the
depositor commits to deposit a fixed amount for a fixed period of time (for
example Rs 100 every month for 12 months) and gets a lump-sum amount at
the end of such period. The depositor does not get the intervening period. The
terms i.e. fixed amount, interval and fixed time period that is decided at the
time of opening the deposit cannot be altered.
Eligibility All types of customers.
Minimum Amount Rs 10 and in multiples of Rs 5 thereof.
Maturity Period 12, 24, 36, 48, 60, 72, 84, 96,108,120months
Payment of Installment The installment of any calendar month shall be paid
on or before the last working day of that month Standing Instructions are
accepted for transfer of monthly.
Fixed Deposit (FD):
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Fixed deposit accounts which are also called term deposit also include the
deposits revived by the bank for a fixed period and a fixed rate of interest
specified in advance. Such deposits are repayable on the expiry of a specified
period as indicated by the depositor. The periodicity of such deposits is
generally fixed for periods of 12 months and above. Any deposit received in
the nature of fixed deposits for the period less than 12months is called”
SHORT TERM DEPOSIT”.
Eligibility All types of customers.
Minimum Amount Rs 500
Loan Against Deposit Loan against this deposit is allowed.
Him Puner-Nivesh Deposits:
This is a term deposit that can be opened for a minimum period of 12 months
to a maximum period of 120 months. The depositor gets a lump sum amount
at the end of the maturity and no interest is paid between.
Eligibility All types of customers.
Minimum Amount Rs500
Loan Against Deposit Loan against this deposit is allowed
Sarva Priya Deposit:
This is a form of term deposit wherein the depositor can deposit money for 12
months or more. The interest will be credited to the depositor on a monthly
basis. The depositor must have or (open a new) Savings Bank Account to
enable the bank to credit the interest in the SB account.
Eligibility All types of customers.
Minimum Amount: Rs1000.
Maturity Period The deposit can be accepted for a period of 12 months and
above.
Maha Laxmi Deposits:
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This is a term deposit designed in such a way that the depositor gets double
the money he deposits after a certain maturity period. The depositor does not
get any interest in the intervening period.
Eligibility All types of customers except firms
Minimum Amount Rs 100 and in multiples of Rs 100thereof
Maturity Period: 87months only.
B. LOAN PORTFOLIO:
Accepting deposits from the public is a liability on the bank unless the amount
so mobilized is profitably and efficiently deployed in loans & advances and
investment. The classical loan structure of a Cooperative Bank takes into
account credit requirements of Agriculture/Cooperative Sector only. Number
of new loan schemes were devised and incorporated in its loaning portfolio to
take into account credit requirements of the public in general and to extend
the advantages to the weaker sections of the society and to march with
welfare programmers pronounced by the State.
Cooperative Bank has introduced the following major schemes for the benefit
of people/depositors:-
In order to help educated un-employed youths of the State and to assist
them in productive ventures, a Self-Employment Loan Scheme has been
launched to take care of all production and service activities.
A scheme for assisting brilliant students in pursuing their higher studies
has been incorporated with a maximum admissible loan limit of Rs 15 lack
for studies pursued abroad & Rs 7.5lacs for studies in India.
The Bank has also started financing the beneficiaries as sponsored under
the poverty eradication programme of the government viz. SGSY/SJSRY.
The Bank has also entered into a tie-up arrangement with the H.P.SC/ST
Dev. Corporation & HP Women Dev. Corporation for entertaining the
proposals sponsored by them for financing under their margin/seed money
scheme.
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A scheme for financing of individuals for purchase of vehicles for
commercial use within meaning of SRTO (of NABARD) has also been
implemented in order to improve the economic conditions of the people.
Home Loan:
HPSCB HOME LOAN makes your dream home come true!
Maximum Limit Rs 10 lacks per employee.
Eligibility Employees of
Government Department/Boards/Corporations/Statutory Bodies etc
Eligibility Criteria 50 times of the gross monthly salary of the applicant or Rs
10lacks whichever is less ensuring 35%take home salary by the loanee after
payment of installment of loan.
Margin 25% Repayment Period 15 years.
Security House constructed/purchased shall be kept under charge of the bank
along with one guarantor. One time collateral security by taking at 50% of its
present value.
Car loan:
Maximum limit Rs 3.50 lacks per employee, per vehicle, however in
exceptional cases loans up to Rs 6 lacks can be considered.
Eligibility Employees of Government
Department/Boards/Corporations/Statutory Bodies etc.
Purposes Purchase of Vehicles for Self-use.
Eligibility Criteria 90% of the invoice price of vehicle to be purchased or Rs
3.50 lacks whichever is less ensuring 35% take home salary by the loanee
after payment of installment of loan.
Margin 10% .6Repayment Period 5 Years.7Security Hypothecation of vehicle.
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Personal Loan:
Maximum Limit Rs 1 lakh per borrower employee.
Eligibility Employees of Government Department /
Boards/Corporation/Statutory Bodies etc.
Purposes for purchase of consumer durable goods like computers, TV,
Refrigerator, Household furniture, washing Machine etc. For self use
Eligibility Criteria An employee can avail this loan to the extent of 10 times
of his net monthly salary with a maximum limit of Rs 1 Lakh.
Margin 10%. Repayment period 5 years. Security Hypothecation of
assets/articles purchased.
Education Loan:
Maximum Limit Rs.3 lakh per borrower.
Eligibility Students who have got admission to some professional or other
courses and whose prospects of getting employment are very good.
Purposes For pursuing higher studies by their children.
Eligibility Criteria 50 times of the gross monthly salary of the applicant or Rs
10lakh whichever is less ensuring 35%take home salary by the loanee after
payment of installment of loan. Margin Up to Rs 25000………….25% above
Rs 25000………….30%
Repayment Period 5 years after the borrower gets employment of one year after completion
of course whichever is earlier.
Hotel/Motel/Tiny Tourism Loan:
Maximum Limit 1500000/-without CA above 15Lakh with prior CA from
NABARD. Eligibility Individual.
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Purposes To boost tourism activities.
Repayment Period. Maximum period of five years including moratorium
period of 1-2 years or completion of construction whichever is earlier.
Collateral Security. The land and construction thereon along with other
assets created shall be mortgaged/Hyp. In favor of the bank.
Other Loans are divided into following Categories:-
Priority sector (Farm sector)
Non-priority sector (non-farm sector)
Priority sector loan:
1. Kisan Credit Card Scheme Individual/Society
2. Dairy entrepreneurship Development Scheme/HIM Dugdh Ganga Loan
Scheme.
3. Pt. Deen Dayal Kisan Bagwan Samridhi Yojna for Poly House-II
4. Medium Term Agriculture Loan (Farm Plus)
5. Cash Credit Marketing Limits to societies
6. Tractor/Power tiller loan
7. Horticulture Loan Scheme
8. Small Ruminants and Rabbits
Non-Priority sector Loan:
1. Loan under Tie-up with SC/ST Development Corporation with Women
Development Corporation
2. Self Employment loan
3. Scheme for financing loan to Pensioners/ Ex- Servicemen against
Pension-revision & incorporation thereof
4. Parivahan loan scheme
5. Gold Loan
6. SHG
7. Hydel Power Loan Scheme
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8. Tourism cooperative societies
9. LPG Loan Scheme
10.Rural Godown Loan Scheme
11.Him Region Specific Loan scheme(Trucks)
12.JLG Loan scheme
C. OTHER FACILITIES RENDERED
Besides two primary functions of a Bank viz. accepting deposits from the
public and development thereof in shape of loans and investment, the Bank is
also offering ancillary services to its customers like; providing safe locker
facilities to the customers, transfer of funds etc. 28 branches of the Bank,
which mainly situated at District Head Quarters and selected Sub-Divisional
Heads are providing the safe locker facility to the Customers.
Safe Deposit lockers
ATM Facility
Fund Remittance
Customer Grievances Cell, etc.
SWOT ANALYSIS
The overall of a business’s strengths, weaknesses, opportunities, and threats
is called SWOT analysis. SWOT analysis consists of an analysis of external
and internal environments.
SWOT ANALYSIS
ENVIRONMENTAL SCAN
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---------------------------------------------------------------
INTERNAL ANALYSIS EXTERNAL ANALYSIS
------------------------ ---------------------------
STRENGTH WEAKNESS OPPORTUNITY THREATS
External Environment Analysis:
In general, a business unit has to monitor key macro environment forces
(demographic economic, technological, political-legal, and social-cultural) and
microenvironment factors (customers, competitors, distributers, and
suppliers)that affect its ability to earn profits Then, for each trend or
development, management needs to identify the associated marketing
opportunities and threats. A marketing opportunity is an area of buyer need in
which a company can perform profitably. Opportunities can be classified
according to their attractiveness and their success probability. The company’s
success probability depends on whether its business strengths not only match
the key success requirements for operating in the target market, but also
exceed those of its competitors. Mere competence does not constitute a
competitive advantage. The best-performing company will be the one that can
generate the greatest customer value and sustain it over time. An
environmental threat is challenge posed by an unfavorable external trend or
development that would lead, in the absence of defensive marketing action, to
seriousness and probability of occurrence. Minor threats can be ignored;
somewhat more serious threats must be carefully monitored: and major
threats require the development of contingency plans that spell out changes
the company can make if necessary.
Internal Environment Analysis:
It is one thing to discern attractive opportunities and another to have the
competencies to succeed in these opportunities. Thus, each business needs
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to periodically evaluate its internal strengths and weaknesses in marketing,
financial, manufacturing, and organizational competencies. Clearly, the
business does not have to correct all of its weaknesses, nor should it gloat
about all of its strengths. The big question is whether the business should limit
itself to those opportunities in which it possesses the required strengths or
considered better opportunities to acquire or develop certain strengths.
Sometimes a business does poorly because its departments do not work
together well as a team. It is therefore critically important to assess
interdepartmental working relationships as part of the internal environmental
audit.
STRENGTH:-The strengths of the HP State Cooperative Bank Depending
on its external and internal environment are.
1. The bank is spread into only 6 districts due to its limited area it is easy to
monitor minor requirements of the customers which may else ignored by
other banks.
2. The bank provides the easiest way to open a new account into any of its
branch as the customers has to fill minimum requirements which are
asked by other banks.
3. The bank has the branches in the remote areas where the branches of
other public banks are not yet opened which provides the strength.
4. As it is a government bank and never under losses the people have faith in
the bank.
5. As the bank is a cooperative bank thus bank gets the advantage of getting
priority by the different cooperative societies for transactions and loans.
6. It has great amount cooperation with other district cooperative banks
(Kangra Central Cooperative Bank, Jogindra Central Cooperative Bank).
7. The HP State Cooperative Bank has well organizational structure.
8. The main priority of The HP State Cooperative Bank is member services
rather than profit.
9. The HP State Cooperative Bank well established in the community.
10.Adhere to cooperative values and principles and follow rules and
regulations which are given by the government.
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11.The HP State Cooperative Bank deals the user as not only the customers
but also the member of the bank.
12.The HP State Cooperative Bank Has the capacity to thrive in crises.
13. It is a government bank and has a government backup.
14.The main emphasis of The HP State Cooperative Bank is on
GLOBALISATION.
WEAKNESSES:-
1. The HP State Cooperative Bank has less resources’ as compared to the
other nationalized and public banks.
2. The staff in cooperative bank is not specialized.
3. No internet banking and mobile banking.
4. Political pressures on the employees of the bank as compared to the other
banks.
5. ATM’s are not well spread like other nationalized and public banks.
6. In the HP State Cooperative Bank dependence syndrome is there. Each
person thinks that his work may be done by the other and is not always
willing to do their work.
7. All branches are not computerized.
8. There is some sort of government control over the working of the HP State
Cooperative Bank and this leads to transfers and discomfort of employees.
9. In Cooperative Banks ATM only cooperative bank ATM’s work and no
other bank’s ATM’s work.
10.Lack of time management.
11.Less advertisement is other weakness of The HP State Cooperative Bank.
12.Lack of knowledge about the many aspects of banking to the employees
due to lack of specialization in that field of work.
OPPORTUNITIES:-
1. Being a government bank it has the capability to finance government
projects.
2. Providing ATM facility may take bank a long way.
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3. With the growth of Axis bank in the term of customers and market share
the growth of bank is also per mote.
4. Existence of bank in remote areas.
5. Being government Cooperative Bank this bank gets priority over the other
banks for cooperative societies.
6. As it is a state cooperative bank this bank is bank in demand.
THREATS:-
1. Easy policies and new schemes of the public banks.
2. Online banking and mobile banking facilities of other nationalized and
public banks.
3. Facilities like ZERO BALANCE ACCOUNT by some of public sector bank
and other banks.
4. Employee’s strikes.
5. Advent of MNC Banks is a big threat to the cooperative Bank.
6. Public banks are of great threat to the HP State Cooperative Bank
7. More significant brand image in public acceptance of product and services
of public and nationalized banks as compared to cooperatives banks.
8. Less documentation of the public banks for different types of loans.
9. Increasing market share of the other bank threaten the HP State
Cooperative Bank to its position in the market.
10. Instant/one minute service provided by some banks.
FINDINGS AND CONCLUSION
FINDINGS:
1. Fr study purpose I have taken the followings factors:
Interest on loan and savings
Publicity & advertisement
Behavior of staff towards customers
Knowledge of staff regarding bank services
Bank’s innovation towards introducing new services
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Safety of deposit
Speed of Delivery
Through, I have found that there is no significant difference between the
factors i.e. customers have given equal importance to all the factors.
2. 64% people maintained saving account, 20%loan account, and 6% current
account.
3. Banks have adopted the many technologies but for study purpose I taken
only for technologies like online transfer of cash, Mobile Banking, ATM’s
and Internet Banking. People are equally aware of technology considered
for study. ATM”s has been found a little bit unknown technology among
customers.
4. Security related apprehensions have been found more influencing to
prevent the customers from using new technologies than the factor-
Unawareness about the new technologies.
5. According to people Public Banks are more advanced in technology than
cooperative banks.
6. 56% people are agree that there are improvement in customer services in
this bank and 28% are strongly agree & rest are undecided.
7. 52%people think that cooperative banks offers competitive interest &
charges and 48% are not.
8. 50% people feel the need of customer’s grievances redressed system and
rest don’t feel.
SUGGESTIONS:-
1. Banks should focus more on safety of deposits as this has been found
most important in affecting the customer’s attitude towards services of
Banks
2. No doubt, globalization and advancement in technology has made
introduction of products and excess to new services but banks should not
underestimate the customers as customers are essence of success in
today’s life.
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3. Private Banks are most advanced in technology than public banks and
cooperative banks in spite of that fact that private bank came into
existence after public and cooperative banks. So public and cooperative
banks should consider the technology as an important factor for growth.
4. Most of customers are not using new technology like internet banking and
mobile banking because of security related apprehensions. So banks need
tighten their security system so that their customers feel comfortable while
accessing to new technology.
5. Many customers are unaware of customer’s grievances redressal system.
So banks should create awareness about this.
CONCLUSION:-
Banks are the most important constituents of the financial infrastructure of a
country. They play a vital role in bringing about the desired change in the
economic development of a to the investor a source of finance. Banks help in
the implementation of various welfare programs of the government. Though
originally banks were conservative in their approach. The initiative of the RBI
they have taken certain measures to improve customer service. Many banks
have started the process of setting up core banking solutions in order to
provide their customers better services at reasonable costs.
The RBI also set up many committees in order to understand the problems
faced by the customers and took certain remedial measures to improve them.
In the present scenario, the banking sector in India has become more
upgraded in terms of supply, product range and customers reach. The
expansion, greater competition and diversification of ownership of the banks
have made this sector more efficient in terms of standards. Today, the face of
the present banking sector has changed. Easier access to knowledge,
advancement in technology and introduction of tailor-made financial products
has become the key features of banking.
Liberalization of financial services and expansion of banking services have
resulted in enhanced efficiently and systematic resilience. There are also
concerns before banks which they need to deal with on a priority basis.
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In order to survive in a global competitive scenario and to protect the
depositors, interest and public faith, banks need to have: a fraud-free culture,
an effective customer grievances redressed cell and an appropriate human
resource system. Unfortunately all these conditions are not satisfactory in the
banking system.
PERSONAL LEARNING
Having training in HP State Cooperative Bank was really informative and
educational. I was able to learn lots of things, which I was not renewing
earlier. Firstly I learned what a bank is, its organization structure, features and
objectives of banks, types of banks, functions of banks. I learned about
various types of account its and various types of loans. The basic idea
regarding the banking system was given.
After that learned about the history of co-operative bank, its formation, its
branches, its features and objectives. I learned about various deposits and
loan schemes. My topic was problems and prospects of HP State
Cooperative Bank Ltd. By working on this topic, I get information regarding
the various problems faced by the staff of HP State Cooperative Bank while
rendering services to the customers. I learned each minute thing about this.
I learned about the internal behavior of the employees of the HP State
Cooperative Bank then I learned how they maintain good relation with
customers. I was given knowledge regarding the strength, weakness,
opportunities and threats of bank.
Then we were also sending to various branches for understanding that how
work was done there. I, personally, enjoyed my work there, gathered lots of
information there. I learned how auditing is done; it is a review of financial
statements of a company resulting. In publication of independent opinion on
whether or not those financial statements are relevant accurate, complete and
fairly presented.
I learned cash management as it is like blood in human body, Its need to be
managed judiciously, handled carefully and economical. I learned about
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generating reports, day book reports, and general ledger reports. I learned
about computerized branches like how to access the system, password
maintenance, day begin operations.
I learned about hose peeping where essential registers were maintained like
visit register voucher register, receipt register, dispatch register, attendance
register, securities register and locker register etc.
I learned regarding draft payables A/c, Suspense/sundry assets. I learned
how various accounts were maintained like current accounts, savings
accounts etc. I learned about various advances against, deposits, government
securities, Gold ornaments.
I got knowledge regarding cash credit limit, salaried employees, Advances
against life insurance policies, I learned regarded SGSY, I learned regarding
various frauds and how these were decided and removed.
We were also sent to various sections of the bank like law section, statistical
section, loan section, recovery section, branch control section, it section we
grab all information from there.
We also worked in BDD Department which is Business Development
Department, it is to develop and improve banking business to prepare loan
and deposit schemes to fix and revise rates on all products, clarification of
deposits, design various schemes and evaluating whether it is feasible or hot,
we learned about branch opening process and allotment of targets to various
branches these is also a women empowerment cell in the bank to organized
and motivating women.
Job training is the best method for teaching knowledge and skill which can be
acquired through personal observation in a relatively short period.
Economical method: this method is very economical because no additional
space, equipment, personnel or other facilities are required for training.
Teaching of knowledge and skill in short time period: It is appropriate for
teaching knowledge and skills which can be learned in short period of time.
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