A PROJECT REPORT ON

LOAN AND ADVANCES

AT
THE KURUKSHETRA CENTRAL CO-OPERATIVE
BANK

PREPARED BY
RAJAT
(M.B.A. - PART II)

Academic year
2019-2020

Ref. No.
19244221

A PROJECT SUBMITED TO
DIRECTORATE OF DISTANCE EDUCATION
KURUKSHETRA UNIVERSITY,KURUKSHETRA
 DECLARATION

I, hereby declare that the project report on LOANS AND ADVANCES ”

conducted at THE KURUKSHETRA CENTRAL CO-OPEARTIVE BANK,
KURUKSHETRA is prepared and submitted by me to the
Directorate of distance education, Kurukshetra.

This project is my original work and report prepared therein is based on

research by me during my project. I further declare that to the best of my
knowledge and belief, this work is not submitted to this or any other
university for the award of any other degree, diploma or equivalent course.

Signature
RAJAT

Place: Kurukshetra
Date:

Page : IV
 PREFACE

The main objective of practical knowledge in the form of industrial visit at the
Master of Business Administration level is to give the perspective knowledge
about the organization. To become sharper in the field of Management, one
needs both practical as was theoretical knowledge.

I have decided to do my project at bank and therefore I have visited the

"THE KURUKSHETRA CENTRAL CO-OPERATIVE BANK” sector-7,
Kurukshetra to undertake visit as a pre-requisite of my course studies.

In this project, I have taken mainly following points:

Introduction of banking system.

Information about COOPERATIVE Bank.
About the main topic, i.e., loans and advances of COOPERATIVE BANK.

Page : V
 ACKNOWL
EDGEMENT

I hereby want to thank THE KURUKSHETRA CENTRAL Co-Operative

bank and its members for their help given to me during my training. I was
thrilled to find that people here were very co-operative and helped me in all
ways possible. They were very eager in solving my queries and were ready
to help all the time.

First of all I am very thankful to my parents because they have cooperated

with me in preparing this project and without their support I could not do this
project.

Page : VI

Table of content

Declaration……………………………………………………………………… IV
Preface…………………………………………………………………………… V
Acknowledgement……………………………………………………………… VI
List of tables & chart …………...……………… …………...…………………
Executive summary………………………………………………………………

1 Industry Overview ………………………………………………………… 2

 1.1) Introduction to Banking ……………………………………………… 3
1.2) Banking in India ……………………………………………………… 5
1.3) Introduction to Co-operative Banking……………………………… 8
1.4) History of co-operative bank………………………………………… 9
1.5) Role of Cooperative Bank in Indian
Economy…………………………… 10
1.6) Characteristics of Co-operative banks…………………………… 11

2. Company Profile ………………………………………………………… 12

2.1) History of Kurukshetra central cooperative Bank
……………………………………………… 13
2.2) Bank Profile ………………………………………………………… 15
2.3) Board of Director of the bank …………………………………… 17
2.4) Organization Structure of COOPERATIVE BANK
…………………………………… 18
2.5) Vision and mission of bank……………………………………… 19
2.6) Award and achievement ………………………………………… 21
2.7) Future plan………………………………………………………… 21
2.8) social contribution ………………………………………………… 22
2.10) Service Department……………………………………………… 23
2.11) Marketing Department…………………………………………… 32
2.12) Human Resource Department…………………………………… 35
2.13) Finance Department……………………………………………… 41
 2.14) Swot Analysis……………………………………………………… 42

3. Research Topic …………………………………………………………… 45

3.1) Meaning of research……………………………………………… 46
3.2) Introduction of Research Topic…………………………………… 47
3.3) List of various loan………………………………………………… 49
4.Research Problem
5.Research objective
6. Hypothesis/Hypotheses ………………………………………………… 62
7. Research Methodology ………………………………………………… 64
8. Data analysis and Interpretation ………………………………………… 67
9. Statistical Analysis/Hypothesis Testing………………………………… 75
10. Recommendation and suggestions ……………………………………… 79
11. Research findings ……………………………………………………………… 80
12. Conclusion …………………………………………………………………… 81
13. Limitations of the study …………………………………………………… 82
14. Implementation of the study………………………………………………… 83
15. Scope for the future study ………………………………………………… 84
16. Annexure …………………………………………………………………… 85
17. Bibliography ………………………………………………………………… 87
 LIST OF TABLES

Sr. No. Title of Table Page No.

2.10.8 Recurring Example 37
2.10.9 Locker 38
3.3.1 Hypothecation-cash credit(Rate) 58
3.3.2 Industrial Loan(Rate) 58
3.3.3 Overdraft(Rate) 59
3.3.8 Vehicle Loan(Rate) 60
3.3.9 Building Loan(Rate) 61
3.3.10 Consumption(Rate) 61
3.3.11 Machinery Loan(Rate) 61
10.2 Calculation of Chi-square test 83
10.2 Expected Frequency 84
 LIST OF CHART

Sr. No. Title of Chart Page no.

2.4 Organization Structure 26
9.1 Occupation of loan borrower 75
9.2 Age group of loan borrower 76
9.3 Income level of loan borrower 77
9.4 Behavior of staff member 78
9.5 Time period of loan 79
9.6 Another loan from rival bank 80
9.7 Qualification of customer 81
9.8 Maximum extent to take loan 82
 EXECUTIVE SUMMRY

“Study of loan and advances of COOPERATIVE BANK”. I have taken this

topic because now-a-days in this fast developing economics era, loan and
advances play a very important role like when a person wants to start a
business then he can start his business by taking a loan from bank and this
is affected by the interest charged on loan.

The main purpose of this study is to know that which banks loan is more
suitable to take by market survey.

Whole project consists of bank details. History of banking in India, major

players in the banking sector and Regulatory Environment details under
which COOPERATIVE BANK is working. This report also covers the major
departments of COOPERATIVE BANK viz. Marketing Department, Finance
Department, Service Department and Human Resource Department.

Page : 1
Industry

overview

Page : 2
 1.1) INTRODUCTION TO BANKING

Banks are among the main participants of the financial system. Banks also

perform certain activities which are ancillary to this business of accepting

deposits and lending. Since Banking involves dealing directly with money,

governments in most countries regulate this sector rather stringently. Banks

provide almost all payment services by conducting checking or current

accounts for customers, paying cheques drawn by customers on the bank,

and collecting cheques deposited to customers' accounts. Banks also enable

customer payments via other payment methods such as telegraphic transfer.

Banks have added new payment channels like Internet banking, Mobile

Banking, ATMs etc.

Banks activities can be classified into 5 categories:-

1) Retail Banking: dealing directly with individuals

2) Business Banking: providing services to mid-size business

3) Corporate Banking: dealing with large business entities

4) Private Banking: providing wealth management services to High Net

worth Individuals

5) Investment Banking: relates to helping customers raise funds in the

Capital Markets and advising on mergers and acquisitions.

Page : 3
In addition to this Banks are now moving towards Universal banking which is

a combination of commercial banking, investment banking and various other

activities including insurance.

Page : 4
 1.2)
BANKING
IN INDIA

Early phase of ancient times

The origin of banking in India can be traced back to almost the Vedic period.

The transformation from pure money lending to proper banking appears to

have taken place before the times of Manu. Manu, a great Hindu jurist, has

devoted a section of his work explaining the deposits and advances and he

even laid down certain rules on rates of interest.

Throughout Mauryan period and later on, desi bankers played some role in

the economy of the country. However, it was during the Mogul period that

indigenous bankers started playing a vital role in lending money and

financing of the foreign trade and commerce.

Second phase from 1786 to 1969

Banking on European lines started in India, when two British managing

agency houses, namely Ferguson and Co. and Alexander and Co. set up the

first joint stock bank in 1786 in the name of General Bank of India. Later on

Bank of Hindustan also came into existence which carried on the business

till 1906.

Page : 5
East India Company established three banks; namely, The Bank of Bengal

in 1809, The Bank of Bombay in 1840, and Bank of Madras in 1843. They

were collectively called Presidency Banks and were well functioning

independent units.

A number of private banks had been established by the businessmen from

mid of the 19th century onwards. In the surcharged atmosphere of Swadeshi

movement, a number of banks with Indian management, namely, Punjab

National Bank Ltd., Bank of India Ltd., Canara Bank Ltd, Indian Bank Ltd.

etc. were established.

The Reserve Bank of India was established as the Central bank of the

country in 1935under an act called Reserve bank of India Act. In 1955, the

Imperial Bank of India was nationalized and was given the name "State Bank

of India”. On July 19, 1969, 14 major banks were nationalized.

Third Phase from 1969 to 1991

The three decades after nationalization saw a phenomenal expansion in the

geographical coverage and financial spread of the banking system in the

country.

In 1980, another six banks were nationalized, and thus raising the number of

nationalized banks to 20.In the post-nationalization era, no new private sector

banks were allowed to be set up. However, in 1993, in recognition of the need

Page : 6
to introduce greater competition which could lead to higher productivity and

efficiency of the banking system, new private sector banks were allowed to

be set up in the Indian banking system.

Forth phase from 1996 till date

New delivery channels like ATM, Mobile banking and Internet banking and

convenience of any branch banking and auto sweep products introduced by

new private and MNC banks. Communication infrastructure improves and

becomes cheap.

Page : 7
1.3) INTRODUCTION TO CO-OPERATIVE BANK

Definition of Cooperation

H.CALVERT define cooperation –

“As a form of organization, where in persons voluntarily associate together

as human beings, on a basis of equality for the promotion of the economic

interest of themselves.”

7 principles of Cooperative societies

1. Voluntary association or open membership.

2. Democratic control

3. Members economic participation

4. Autonomy and independence

5. Co-operative education, training and information

6. Mutuality or cooperation among members

7. Concern for community

Page : 8
 1.4)
HISTORY
OF CO-
OPERATIV
E BANKING

Over the years, 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. And today co-operative banks

have started verities of Services with different technologies.

Once Mahatma Gandhi has remarked that “There is sweetness in co-

operation; There is no one who weak or strong among those who co-

operate. Each is equal to other.”

Over a period of time, a strong co-operative network made its way into rural

areas with Gujarat, Maharashtra and Andhra Pradesh leading the way. The

original founders of the co- operative movement were people with integrity,

foresight and vision. However, with the passage of time, there has been

erosion in the quality of leadership in this sector.

Page : 9
 1.5) ROLE
OF CO-
OPERATIV
E BANK IN
INDIAN

ECONOMY

In today’s competition era it is necessary that all work in cooperation. As

rightly said that

“United we stand, Divided we fall”. So cooperative banks become necessary

for the society. Also our nation is the agriculture based where 60% people

live on agriculture and farming. So cooperative banks provide low interest

loan to farmers.

Our govt adopted LPG policy in 1991 so cooperative banks also need to

reform. It has become necessary to make co-operatives more competitive

and market oriented. The old vision of cooperatives as merely government

sponsored institutions or as individual driven organization would have to give

way to a new vision of co-operatives where in the co-operative become

“competitive business units” to play an active and effective role in economic

welfare of its members. This calls for creation and development of new type

of co-operatives institutions and re-engineering and re-innovation of existing

co-operatives to meet the challenges of new economic scenario. In

liberalized market economy cooperatives provide protection to people and

make possible survival of weakest also.

Page : 10
 1.6)
CHARACTE
RISTICS OF
CO-
OPERATIV
E

BANK

The establishments of co-operative banks are mainly to cater to the

needs of the rural areas and small borrowers are concerned more with

financing agricultures.

The co-operative banks are organized on co-operation basis and are

governed by their members according to co-operative laws.

Co-operative banks are under control of state government and to lesser

extent RBI certain provision of banking regulation act also applied.

In co-operative banks borrowers being member have some control over

management and use of funds.

They have to follow rate for investment laid down by the register of co-

operative societies.
Page : 11
COMPANY

PROFILE

Page : 12
 2.1) HISTORY OF KURUKSHETRA CENTRAL
COOPERATIVE BANK

The Kurukshetra Central Cooperative Bank Ltd is a major Indian private bank with its
headquarters in Kurukshetra. The bank has over 33 branches and 0 ATMs countrywide.
Total assets 100 crores.
The Kurukshetra Central Cooperative Bank Ltd provides all the financial services
includes savings accounts, current accounts, deposits, safe deposit lockers, personal
loans, home/car loans, two wheeler loans, educational loans, debit/credit cards, prepaid
cards, demat accounts, insurances, forex, premier banking, and more. On the website,
one can easily pay bills, make credit card payments, transfer funds, access net banking
and much more.
The bank began operations in with a simple mission: to be a "World-class Indian Bank".
For queries, complaints or others, reach the The Kurukshetra Central Cooperative Bank
Ltd customer care between 9 a.m. to 6 p.m. from Monday to Friday.
It provides all the financial services to its customers like saving deposit, fixed deposit,
recurring deposit,home loan, car loan, personal loan, PPF account,SMS banking,
lockers, netbanking, mobile banking, RTGS, NEFT, IMPS, E-Wallet, Atal Pension
Yojana, Pradhan Mantri Jandhan Yojana, Pradhan Mantri Suraksha Bima
Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and many more.

Page : 14
 2.2) BANK
PROFILE
The Kurukshetra
Central Cooperative
Bank Ltd: Find below BANK OFFICIAL WEBSITE - http://www.kurukshetra.nic.in
customer care
details of The
Kurukshetra Central CONTACT NUMBERS - 01744-290160, 291443, 290643
Cooperative Bank
Ltd, including phone EMAIL ID - kccbkurukshetra(at)yahoo(dot)com
and address. Reach
the below contacts
for queries on new TOTAL BRANCHES - 33
The Kurukshetra
Central Cooperative
Bank Ltd savings HEADQUARTER - Kurukshetra
accounts, credit
cards, BANK ADDRESS - H.O. Kurukshetra, HARYANA (INDIA)
personal/education
loans, auto loans,
mutual fund or
others. Besides
contact details, the
page also offers
information on The
Kurukshetra Central
Cooperative Bank Ltd
services.
 Page : 15

Branch Wise Contact Numbers of The

Kurukshetra Central Cooperative
Bank Ltd
Contact Number Branch District State

254235 Amin Kurukshetra Haryana

263462 Bakali Kurukshetra Haryana

287982 Deeg Kurukshetra Haryana

272418 Dhurala Kurukshetra Haryana

229655 Ext. Counter Sec. 13 Kurukshetra Haryana

229557 Ext. Counter Sec. 17 Kurukshetra Haryana

283220 Gajlana Kurukshetra Haryana

1741-281750 Gumthala Garhu Kurukshetra Haryana

1741-278251 Ishaq Kurukshetra Haryana

252059 Ismailabad Kurukshetra Haryana

257517 Jhansa Kurukshetra Haryana

289038 Kalsani Kurukshetra Haryana

275538 Kaulapur Kurukshetra Haryana

267321 Kharkali Kurukshetra Haryana

273276 Kirmach Kurukshetra Haryana

263077 Ladwa Kurukshetra Haryana

266169 Lohara Kurukshetra Haryana

277215 Lukhi Kurukshetra Haryana

01741-286857 Malikpur Kurukshetra Haryana

Contact Number Branch District State

247040 Mohanpur Kurukshetra Haryana

Page: 16
Page : 17
 2.4) ORGANIZATION STRUCTURE

Chairman
↓
Vice chairman
↓
Managing director
↓
↓ ↓

Main Branch Other Branch

↓ ↓

Manager Manager

↓ ↓

Deputy Manager Assistant Manager

↓ ↓

Assistant Manager Clerk

↓ ↓

Clerk Peon

Peon

Page : 18
 2.5) VISION
AND
MISSION
OF BANK

→vision of bank

“Maximum profit at maximum services”

The bank is committed to maintain the highest level of ethical

standards, professional integrity and regulatory compliance. Our bank

philosophy is based on four core values such as:

1. Operational excellence,

2. Customer focus,

3. Service leadership,

4. Welfare of people,

The objectives of THE KURUKSHETRA CENTRAL Co-

operative Bank ltd. Is to provide its target market members a full range of

financial products and banking services, giving the members a one-step

window for all his/her requirement.

Page : 19
→Mission of bank

“We are always with you”

The above slogan has been accepted and well performed by

the bank. Bank always tries to give support to its members. The regular

payment of dividend over such 38 year on an average of 12% p.a. is a good

sing of the implementation of the slogan “We always with you”

Bank also provides loan facilities to its members for short

term and medium term financial requirements at reasonable rates.

The bank is going to start new branch in near future for easy

accessibility.

The bank provides easy clearing of cheques at the ground

floor at main branch.

Adopting the latest technology for calculating and

communication.

The mission of COOPERATIVE is to maintain 0.00NPA bank

in future with performing above slogan.

Page : 20
 2.6)
AWARDS
AND
ACHIEVEM
ENT

A). FREE CAMPS

1.Free Health camps are organized by the Deptt. Of AYUSH Kurukshetra in different villages.
2. Free camps are organized at Geeta Dham, Jaat Dhareamshala and Guru Brammhanand ashram on the occasion of solar
eclipse.

B). SCHOOL HEALTH PROGRAMS

1. Children are examined in the primary school by Ay.Medical Officers of all the dispensaries under School heallth Programme.
2. Children suffering suffering from anaemia are treated with Punarnava Mandoor.
3. Children suffering from Intestinal worm are treated with Vidangadi Loh or Krimi Kuthar Ras
4. Children suffering fromDental Caries and eye/ear disease or any othe abnormallties are reffered to Nearby C.H.C. or P.H.C.
5. Health Talk about persnol hygiene is also given to the school children

C. GERIATRIC CLINIC
1. Every Tuesday Of the month is observed as Geriatric Clinic
2. In Geriatric Clinic oldage person above 60 years are examined.

D. FAMILY PLANNING WORK

1. STERILIZATION :- Female and Male are motivated for Tubectomy and vasectomy for the purpose of control of population and
family welfare.
2. DELIVERY :- Pregnant mothers are motivated for delivery in Delivery Hut or Govt.Hospitals.
3. IMMUNZATION :- Mothers are motivated for complete Immunization of their children.
4. ANTENATAL AND POSTNATAL CARE:- Traind Dais working in the dispensaries takes Antinatal and Post natal care of the
mothers.

2.7) FUTURE PLAN

→the bank is planning to establish new branches at urban and semi-urban

areas including rural areas.

→bank is going to adopt new technologies for accounting and other activities.

→soon the bank is going to provide ATM facility to its customer.

Page : 21
 2.8)
SOCIAL
CONTRIBU
TION

→Donation to education activities

→Reserved sheets for patients of T.B, Cancer, and Diabetes in various

hospitals.

→Promotion of sports activities.

→Loan to education unemployed youth

→Help to earthquake victims by providing donation and other requirement.

Keeping in sight, social obligation at large and interest of

its share holders in particular, the bank aim is to provide a WORLD CLASS

facility to the common people of the society at an e-commercial rate. So as

to be a preferred providers of the banking services in the area where bank

operates and achieve a healthy growth in profit, which will be partly used for

the benefit of society and for up-linemen of masses and general growth of

co-coordinative movement.
Page : 22
 SERVICE

DEPARTMENT

Page : 23
 2.10)
INTRODUC
TION

COOPERATIVE BANK is purely a service sector. So here instead of

production department there is only “Service Department”. The work of a
Service Department is to produce better services to the customers, which
satisfy the human desire in a best manner.

In banking, service department is concern with that process which converts

the inputs in to outputs. Money is used as a raw material other resources,
information technology, employees are used as an input. Then after there is
need to perform all the service functions (Process). The output is satisfactory
services, employees benefit, security etc.

1. Current
2. Savings
3. Special savings
4. Loan Compulsory
5. Nominal Compulsory
6. Pigmy
7. Fixed
8. Recurring
9. Locker

Page : 26
Current Account

•It is basically used for business purposes. It doesn’t give any interest on
deposits.
•It can be held in the name of firms (include partnership firm, pvt. Ltd. Co., ltd.
Co., trust, association), person.
•Its prime purpose is to serve the customers for their daily business
transactions.
•A customer having current account can withdraw money in the form of cash
or cheque in an infinite number of times and so is unrestricted.

Savings Account

•These deposits too are used for transactions purpose. For example if you
want to pay electricity bill, telephone bill etc. you can give a cheque from
your savings a/c rather than giving hard cash. Other things such as paying
fees, paying dues etc. can be done from this a/c.

•This deposit is usually held in the name of individual as it is used for

personal purposes and gives interest at the rate of 3.5% per annum.

•Note that trust and association can hold current as well as savings account.

•A customer having savings account can withdraw money in the form of cash
or cheque in a limit number of times which is restricted as 5 times per month
at COOPERATIVE BANK. Note that this withdrawing power can be different
for different banks according to the rules and regulations of that particular
bank

Page : 27
Special savings
•This concept and deposit was prevalent earlier, but now it is not in use.

•In this deposit a customer can withdraw the money only3 times (less than
savings i.e. 5times). However, this deposit gives an interest at the rate which
is higher than the savings account. Earlier, when it was in use these
deposits gave a return of 0.5%higher than that of savings deposits.

Loan Compulsory

•These deposits are made compulsory for a customer who wants to take a
loan from COOPERATIVE BANK. For this customer it is required to keep
2.5% of the loan amount in these deposits. It gives the same interest rate as
saving deposits.

Nominal Compulsory

•It is similar to loan compulsory deposits in most ways. However, the

difference is that these deposits are held by customers having less loan
amount. These deposits are there to help small loan takers, so that these
people don’t need to keep 2.5% of their loan amount as deposits. It gives the
same interest rate as saving deposits.

Pigmy
•Pigmy has different names at different banks. Some banks give ‘daily
saving’ name to this service.

•Very few banks offer this service. Here, the customer is required to deposit
the installment on daily basis. The interest rate offered is same as Fixed
Deposits. Fixed Deposits (FD)

Page : 28
•It is a deposit which offers the highest interest rate than any other above
mention deposits. So it is mainly used for long-term saving purposes. For
example: a couple having a child of the age of 10 keeps an FD account so
as to use the matured amount for the child’s college fees in future.

•These deposits and its interest rates are explained in detail in the future
sections that are to come.

Recurring
•It is a type of FD with deposits kept for 12 or more months. Here the
deposits are given at instalment by the customer. The interest rate for these
deposits is same as FD.

Recurring Example

Deposit date 05-05-2010

Matured date 05-05-2011
Monthly instalment 500
Rate of interest 8%
Matured amount 6265

Locker

•It is necessary to deposit some amount in the bank if a customer wants to

have a safe-locker facility. This deposit is made in locker deposits with
interest rate of 9%perannum (interest calculated at half a year) for 5 years.
The deposits that are to maintained for different lockers is given in the
following table

Page : 29
Size of locker Deposit required to be maintained
Small R.7500
Medium Rs.15,000
Large Rs .22,500

Page : 30
MARKETING

DEPARTMENT

Page : 31
 2.11)
INTRODUC
TION

Marketing is the process of planning and executing the concept of pricing,

promotion and distribution of ideas, goods and services to create exchange
that satisfy individual and organizational objective.

The origin of marketing can be traced to the early system of barter system.
Various difficulties of barter gave way to introducing of money and the
pricing became the main mechanism of marketing. Then the marketing era
after the World War 2. Competition became very intense, there was more
supply of goods then was actually needed by market. Therefore marketing
research became vital to undertake the social responsibility in connection
with manufacturing of goods. Efforts are made to balance consumer
satisfaction + profit + public welfare.

COOPERATIVE BANK is service sector firm providing satisfactory services

to its customers since a decade. The main objective of bank is to give the
loan to middle and lower class of people.

By the name it self people doesn’t ask any other question and willingly ready
to do the transaction with the bank did some local marketing such as.
- Advertising in local news papers
- Distribution of pamphlets
- Advertisement in business fair

Page : 32
 PRODUCT
LIFE
CYCLE

Every product under goes different stages of life cycle. Product life cycle
simply Mean the course of the product’s sales and profits over its life time. It
involves five distinct stages:

1) Product Development
2) Introduction- Low sales, High Costs, Negative Profits
3) Growth- Rapidly increasing sales, Average Cost, Rising Profits
4) Maturity- Peak sales, Low Cost, High Profit
5) Decline- Declining sales, low Cost, Declining Profits.

In “THE KURUKSHETRA CENTRAL CO-OPERATIVE BANK”, the product is

passing through GROWTH STAGE, as bearing is the heart of every machine
and vehicle and its demand is expected to increase in future and not decline.

Page : 33
 HUMAN

RESOURCE

DEPARTMENT
Page : 34
 2.12)
INTRODUC
TION

Employees hold a key place in business. No business enterprise can exist

and function without employees. The success of business enterprise
depends to a large extent on the quality of its human resources.

Human resources management is the key to the whole organization. The

concept of personnel management is application not only to bank, but it is
equally important in office, sales department, laboratories where the
management must win the cooperation of their subordinates.

The plan of business may be logically sound and structure of organization

may be perfect, but if the requirement and training of human resources are
unscientific business can ability of its employees. Therefore, it is necessary
to direct motive, develop and manage their activity.

This bank has a good management and large department of manager and
employees.

Page : 35
 RECRUITM
ENT
SOURCE

Employee holds key position in business. No business enterprise can exit

without employees. The plan of business may be logical sound and structure
of organization may be perfect but if the recruitment and selection of
personnel are unscientific business cannot be develop. And hence every
organization needs employees from time to time.

Recruitment is the process of discovering potential applicants stimulating

and encouraging them for applying for a job in an organization.

Recruitment is positive activity. There are three methods of recruitment.

Direct method
Indirect method
Third Party method.

In “COOPERATIVE BANK”. Sources general recruitment for

worker level is direct method of Recruitment and selection is done of top
executive. The advertisement is given in local n state level news paper.
Generally there are two types of sources of recruitment.

Internal Sources
External Sources

(a) Internal Sources:

Promotion
Transfer
Demotion

Page : 36
(b) External Sources:
Advertisement
Employment
agencies Labour
union
Gate hiring Education
institution Unsolicited
application Ex-
Employee.

Page : 37
 SELECTION

“Selection is the process of differentiating between applicants in order to

identifies these with a greater likelihood of success in the job”.

The main aim of selection is to determine whether an applicant meets the

qualifications for a specific job and to choose the applicant who is most likely
to perform well in the job.

IN COOPERATIVE BANK:-

In case the bank has given advertisement for applicants, first the receive the
application. Manager evaluates the application and he rejects improper
application and calls a person having proper application from for the
personal interview.

In interview, the manager takes different types of interview s for different

required personnel. These interviews are:
- Personal interview
- Oral test/ written test

Now, if the employee has passed the relative interview, he has to pass the
medical test & then the employee is selected as “trainee” for a certain time
period.

The training period depends upon the employee’s capacity but the maximum
period is of 2 years. After, 3 to 6 months, the report of trainee employee is
submitted to manager and if it is satisfactory then he is selected, and if the
report is negative i.e. if there is no progress then employee will have to
discontinue

Page : 38
PROMOTION:
A promotion is a type of a transfer involving placement of an employee to a
position having higher pay, increased responsibility more privilege,
increased benefit and great opportunity.

Promotion is given so as
To increase an employees organizational effectiveness
To build up moral, loyalty and a sense of belongings on the part of
To attract suitable and competent workers for the organization.

Promotion may be given on two bases:

On the basis of seniority
On the basis of merit

In this bank, promotion is given on the basis of seniority basis.

At lower level also promotion is made from operative level to supervisory
level and from that to office clerk.

The employee is selected for promotion keeping in view his

work performance, regularity and seniority.

Page : 39
 Finance

department

Page : 40
 2.13)
INTRODUC
TION

The term Business Finance mainly involves, rising of funds and their
effective utilization keeping in view the overall objective of the firm. The
management makes use of various financial techniques for administrating
the financial affairs of the firm in most efficient and effective way. Financial
therefore means the entire gamut of managerial effort devoted to the
management of finance-both its sources and - of the enterprise.

Its detailed analysis includes financial analysis, risk analysis, capital

structure, measurement of cost of capital, merger, acquisition, working
capital financing, and management of cash and market securities.

In COOPERATIVE BANK, separate finance department is there under which

various financial activities are carried out. The bifuregation of activities that
are carried in finance department of COOPERATIVE BANK are as follow:

- Preparation of annual account

- Reconciliation of branch account with head office
- Government securities back office work.
- Dealing with other banks.
- Licensing with RBI
- Auditing
- To decide accounting policy
- Management information system
- Periodical returns of RBI
- To decide accounting policy

Page : 41
 Swot
analysis

Page : 42
SWOT analysis means overall evaluation of a firm’s strengths, weakness,
opportunities and threats. Swot analysis consists of making analysis of the
external environment and internal environment.

→External environment analysis

External environment consists of out sides of the firm such as government

competitors etc. such environment analysis is necessary because it affects
the firm or an organization.

→Internal environment analysis

Internal environment consists of inner sides of the firm such as personnel,

finance, etc. such environmental analysis is necessary because it affects the
firm or an organization.

STRENGTH

-this bank is very reputed in local area.

-professional management & co-operate term
spirit -strong brand equity in local (Kurukshetra)
area. -fully computerized
-profitability & sound liquidity.
-branches in all most developed part of Kurukshetra.
-No mistake in regular transactions can be found because of small network.

Page : 43
WEAKNESS

-Bank is not performing marketing activity because lack of marketing

expertise -lack of modern management concepts and sometimes
communication gap can be found which indicates lack of professionalism.
-bank is not providing ATM facility in the recent developed area and bank is
not fully developed in modern area.
-lower volume of advances due to higher rate of interest ma effect the
expansion of the organization.
-not reputed at national level and less no. the branches.

OPPORTUNITES:

-bank can open branches at state level in near future.

-bank can introduce new services like NRI loan, ATM, student account with
minimum Rs.100etc.
-bank can perform marketing activities by media.

THREATS:

-changes in government policies and in rules and regulation regarding bank

can be disturbed in regular service of bank.
-Crises in the co-operative banking sector can disturb the bank progress.

Page : 44
ReseaRch

topic

Page : 45
 3.1) Meaning of Research

In essence term, Research refers to a search for knowledge. One can also
define Research as a scientific and systematic search for pertinent
information on a specific topic. In fact, Research is art of scientific
investigation and careful investigation especially through search for new fact
in any branch of knowledge. Research is an academic activity because it
comprises defining and redefining problems, formulating hypothesis,
collecting, evaluating data, Making deductions and conclusion. Thus,
Research is an original contribution to existing stock of knowledge making
for its advancement.

The role of research in several fields of applied economy has greatly

increased in modern times. In corporate world, research is conducted to
solve various operational and planning problems of business and industry.
Research helps people in business and industry that are responsible for
taking business decision. In business, there are different types of research
conducted for different object such as operations research, market research,
motivational research. Operational Research refers to solve business
problem of cost minimization or profit maximization or what can be as
optimization problem. On the other side, Market Research is the
investigation of the structure & development of a market for the purpose of
formulating efficient policies for purchasing and sales.

Page : 46
 3.2) Introduction of Research topic

Loan and advances

Any amount borrowed or lent is called loan. If money is borrowed it is debt

of business ands if loan is given, it is receivable for the business.

Loan is a method of lending under which bank gives credit to a borrower for
a fixed period and for a specific purpose. Loan are promises for future
payment, they have to be repaid in periods beyond a year and are, therefore
long term liabilities.

In other words "when a banker makes an advance in a lump sum which can
not be paid wholly or partly and which the customer has permission to
withdraw subsequently, it is called a loan."

Profit is the pivot on which the entire business activity rotates. Banking is
essentially a business dealing with money and credit. Like every other
business activity. Banks are profit oriented. A bank invests its funds in many
ways to earn income. The bulk of its income is derived from loans and
advances.

Banks make loans and advances to traders, businessman and industrialist

against the security of some assets or on the basis of the personal security of
the borrower. In either case, the banks run the risk of default in repayment.
Therefore, banks have to follow a cautions policy and sound lending principles
in the matter of lending. Banks in India have to consider the national interest
along with their own interest while determining the lending policy.

Page : 47
Many a time a borrower needs funds for fixed assets or non-respective type
of activities and thus seeks money from the bank that is withdrawn in one
lump sum. The loan amount is normally repaid in installments. Loan may be
short-term, medium-term or long-term.

Page : 48
 3.3) List of various Loan of
COOPERATIVE BANK

1. Hypothecation-cash credit
2. Industrial
3. Overdraft
4. Pledge
5. Consumption
6. Staff Consumption
7. Commercial loan
8. Vehicle loan
9. Building loan
10. Consumable loan
11. Machinery loan
12. Gold loan
13. Bill purchase

Page : 49
1. Hypothecation-cash credit:

This loan is basically given to business people on their trading stock.

COOPERATIVE BANK gives loan up to 70% of the value of the stock. If
here the customer provides additional property for mortgaging, then extra
50% of the value of property can be added to the loan amount.

For Builders 15%

For others
Up to 75,00,000 15%
More than 75,00,000 14%

2. Industrial:

Like Hypothecation this loan is also given to firms but here it is given on
finished goods. The other things are same as Hypothecation.

Industrial purpose
Up to 75,00,000 15%
More than 75,00,000 14%

3. Overdraft (OD):

For the businesses like brokerage firms and trading firms, where there is no
record of the stock, but has to keep large amount of funds to felicitate trade,
hypothecation and industrial loans cannot be given. So for the liberation of
these firms, OD loans can be given. Here these firms are given loans on the
basis of their record of balance sheet and PNL (Profit and Loss) account.
These loans are of 2 type’s viz. FOD and SOD. FOD is the loan given
against fixed deposit whereas SOD means Secured OD and is given on the

Page : 50
mortgaging of the property of the business land or property. COOPERATIVE
BANK gives loan up to 85% of FD value.

Overdraft
Unsecured 18%
Secured for others
Up to 75,00,000 15%
More than 75,00,000 14%

4. Pledge:

Here stock is under the control of bank. For example the key of the
warehouse in which the goods are kept is with the bank. Example of a fridge
stock. Suppose a warehouse of fridge is under the control of bank. Now,
bank will give the keys to the stockholder only if he pays a part of loan which
he has taken on the stock of fridge. This loan is not prevalent now at
COOPERATIVE BANK.

5. Consumption:

This is called self-mortgaging loan where the people usually comes for taking
loans on their personal income. It is the only type of loan where the purpose of
the loan is not mentioned. At COOPERATIVE BANK, this loan has one of the
larger shares among all types of loans. Majority of the loan takers of these loans
are the workers of Kurukshetra Municipal Corporation (RMC).Here the RMC
submits the salary information of the worker who wants to take loan and
promises to pay back the loan installments from the salary of that particular
worker. RMC manages this by withholding the installment amount from the
salary.

Page : 51
6. Staff Consumption:

This is similar to the consumption loan except that it is provide to staff

people at a slightly lesser rate.

7. Commercial loan:

This loan is provided to the small vendors, who are in need of money for
running their business. This is usually given to the people running small
provision stores, pan shops and others.

8. Vehicle loan:

As the name implies the bank gives loan on the purchase of vehicle. Here a
customer may want an old vehicle or a new vehicle. In the former case the
valuation of the vehicle is must. This valuation can be done by the bank or the
customer himself. In the later case of new vehicle the bill quotation is used for
considering vehicle’s value and 75% of the value can be given as loan.
However, in case of old vehicle 50% of the value of vehicle is given as loan.

Vehicle loan
Up to 75,00,000 16%
More than 75,00,000 14.5%

Page : 52
9. Building loan:

This loan is given on the purchase or construction of building for residential

or business purposes. This type of loan is also one of the major contributors
to the credit of the bank. These loans are basically taken by the public for
housing and are also taken by the builders for construction purpose. The
loan to the builders is given on the amount of the work done. For example
when the construction is about to start the first installment of loan is
sanctioned. Thereafter, after the construction of 1 st slab, another
installment is given and soon

A. for builders 15%

B. for others
Up to 75,00,000 15%
More than 75,00,000 14%

10. Consumable loan:

This loan is given for consumable such as fridge, TV, AC, etc. This is a type
of personal loan wherein it is necessary to define the purpose of the loan.

Consumption loan
Up to 75,00,000 17%
More than 75,00,000 14.5%

11. Machinery loan:

This is a loan given to industries on the purchase of the machinery. Here in,
if it is a new machinery then bill quotation is used as valuation. On the other
hand if it is old machinery then a value of bank is a asked to give valuation
report, based on which loan is sanctioned.

Page : 53
Machinery loan
Up to 75,00,000 15%
More than 75,00,000 14%

12. Gold loan:

Here the loan is given on the purchase of gold. This loan is a rarity now.

Purpose -personal use

Limit -Rs.50, 000(in Kurukshetra city) 20,000(out of Kurukshetra)

Period -26 months

Rate of interest -14%

Repayable -equated monthly installment Rs.50 per thousand

Security -gold-silver ornaments or items on re-pledge

Document -loan application form, DP note

Paper -In case of service person pay sleep, in case of business

last yearly business report.

Page : 54
13. Bill purchase:

Here the customers give their receipt receivable to the bank. Bank pay the
total amount of bills to the customer and then it itself collects the receivables
on behalf of customers. Again these are also not prevalent now at
COOPERATIVE BANK..

Page : 55
Page : 59
 4.)
RESEARCH
PROBLEM

Research Problem
The research is that the income level affected to borrower to take
a loan.

Page : 60
 5.) RESEARCH OBJECTIVE

1. To be acquire practical knowledge about loans and advances from

THE KURUKSHETRA CENTRAL co-operative Bank.

2. To be acquire in-depth knowledge about requirement & interest of

loans and loans of different customer group.

3. To be investigate perspective and preference of individual (customer)

of THE KURUKSHETRA CENTRAL Co-operative Bank.

4. To be aware of different type of loans provided by the bank.

5. To be aware about the customer satisfaction for the particular service

taken from the THE KURUKSHETRA CENTRAL Co-operative Bank.

6. To be study about the respondent and their varying interest.

Page : 61
 7.) HYPOTHESIS

The hypotheses of the study are as follow

H0: amount of loan is independent of income of customer

HA: amount of loan is dependent of income of customer

1. Ho: µ=µ1
2. Ha: μ≠μ
3. Ha: µ<µ
4. Ha: µ>µ

Page : 62
 ReseaRch

methodology

Page : 63
 7.) RESEARCH METHODOLOGY

Primary data:

Primary data are those which are collected for the first time. I have taken
some information about COOPERATIVE BANK by discussing with Loans
and Advances department of the bank. I have done data analysis through
filling questionnaire from customer and employee.

Secondary data:

Secondary data are those which are already been collected for some other
purposes. I have taken the secondary data from internet and from a book
"Guidance note on audit of books.” I have also done data analysis on the
basis of this secondary data. I have compared the interest rates of various
banks with COOPERATIVE BANK to fulfil my objectives.

Page : 64
 7.2) SAMPLING PLAN

In practical life, it is not possible to enumerate, investigate and estimate all

items in any field inquiry. Therefore when the field of inquiry is large, a
complete enumeration of Universe (population) becomes difficult and
complicated. At that time, researcher should select ‘sample’ out of total
population which represent the most characteristic of population.

Consequently, Researcher must prepare a sample plan for selecting an

opposite sample. In this research, sample was selected as 100 customers of
THE KURUKSHETRA CENTRAL Co-operative Bank from different branches
of city.

Population Size-

In these the customer as well as employee of COOPERATIVE BANK is

counted which is part of these.

Sample Size

This research is conducted by taking preference of 100 customers as well as

of THE KURUKSHETRA CENTRAL Co-operative Bank. It is convenience
sampling because this Questionnaires was distributed randomly to all the
customers.

Page : 65
 SAMPLING
METHOD:

I have to use convenience sampling method to analysis of market research

and percentage of investment is dependent of loan taken or independent of
income level.

Sampling Procedure

Non-probability

Page : 66
 8.) Data analysis and interpretation
Occupation of Loan Borrower
. What is your the occupation?
□ Business man □ Employee
□ Profession □ Retired person
Type of occupation No. of customer
Businessmen 27
Employee 42
Profession 19
Retired person 12
Total 100

Occupation Of Loan Borrower

45

40

35

30
No. of Customer

25

20

15

10

0
Businessmen Employee Profession Retired person

Type Of Occupation

In this question, we know that, in different class of occupation who take more
loan in these group. in above chart we can see that the employees are 42%
means the employees are more take a loan as compare to other group of
like businessmen ,Profession and Retied Person are as 27%, 19% and 12%.

Page : 67
 Age group of
loan
borrower

What is your age?

□ 18 to 35 year □ 35 to 60 year □ 60 to 90 year

Age group of customer No. of customer

18-35 year 30
35-60 year 48
60-90 year 22
Total 100

Age Group Of Loan Borrower

60

50

40
No. of Customer

30

20

10

0
18-35 year 35-60 year 60-90 year

Year

In this research on loan and advances, classified the different age group and
knowing that who take a more loan. In above chart we can see that the 48%
people are those who age is 35 to 60. 30% people are those who age is 18
to 35 year and 22% are those who age group is 60 to 90 years.

Page : 68
 Income Level of Loan Borrower
. What is your the income level per annum?
□ more than 10 laces. □ Between 5 & 10 laces.
□ Between 2 & 5 laces. □ Up to 2 laces.

Income level of customer No. of customer

Up to 2 laces. 23
Between 2 & 5 laces. 44
Between 5 & 10 laces. 21
More than 10 laces. 12
Total 100

Income Level Of Loan Borrower

50

45

40

35

30
No. of Customer

25

20

15

10

0
Up to 2 laces. Between 2 & 5 laces. Between 5 & 10 laces. More than 10 laces.

Income Level Of Customer

In this question, the incomes of borrower are identified. In these, the persons
whose incomes are between 2 to 5 laces are 48% means its take more loans
then after whose income level is up to 2 laces are 23%,the income of between 5
to 10 laces are 21% and who income is more than 10 laces is 12%.

Page : 69
 Behavior of
Staff Member
What is the behavior of staff members?
□ Excellence □ Good
□ Adequate □ Average
□ Unsatisfactory

Behavior No. of customer

Excellence 23
Good 36
Adequate 17
Average 14
Unsatisfactory 10
Total 100

Behavior Of Staff Member

40

35

30

25
No. of Customer

20

15

10

0
Excellence Good Adequate Average Unsatisfactory

Behavior

To use these type of question in research, to know the behavior of staff

member. In these research 36% people are say that the behavior of staff is
good. 23% people are saying that the behaviors of staff are Excellent.14%
people are saying that the behaviors of staff are Adequate. In these ways
the 14% and 10% are those who said that the behaviors of staff are Average
and Unsatisfactory.

Page : 70
 Time Period
of Loan
Time period of loan No. of customer
1 to 3 year 18
3 to 8 year 33
8 to 15 year 28
15 to 25 year 21
Total 100

Time Period Of Loan

35

30

25

20
No. of Customer

15

10

0
1 to 3 year 3 to 8 year 8 to 15 year 15 to 25 year

Year

The customer whose take a loan in the bank is mostly time period 3 to 8
years. In the above chart, clarified that the person whose take a loan for 3 to
8 year is 33%. And then after the person who takes a loan of 8 to 15 year
are 28%. The people who take a loan of 15 to 25 years are 21% and the last
the person who take a loan of 1 to 3 years are 18%.

Page : 71
 Another
Loan from
Rival Bank
Which is another bank from you borrowed other loans?
□ UBI □ ICICI □ HDFC
□ AXIS □ BOB □ OTHER
□ NO ANOTHER LOAN

Bank name No. of customer

UBI 12
ICICI 8
HDFC 14
AXIS 6
BOB 15
ANOTHER LOAN 7
NO ANOTHER LOAN 38
Total 100

Another Loan From Rival

UBI, 12

ICICI, 8

NO ANOTHER LOAN, 38

HDFC, 14

AXIS, 6

ANOTHER LOAN, 7
BOB, 15

In these chart we seen that the 38% are those not take a loan from another
bank then after 15% are those whose take a loan in BOB. in theses way the
borrower are also take a loan to different bank. In these 7% are those who
take a loan from other bank.

Page : 72
 Qualification
of Customer
What is your education qualification?
□ Up to HSC □ Up to Graduation
□ Up to Post Graduation □ More than post graduation

Qualification No. of customer

Up to HSC 37
Up to Graduation 32
Up to Post Graduation 19
More than post graduation 12
Total 100

Qualification of Customer

40

35

30

25
No. of Customer

20

15

10

0
Up to HSC Up to Graduation Up to Post Graduation More than post graduation

Qualification

These chart is defined the qualification of customer. In these chart, customer

who education level is up to HSC are 37%, education level is graduation are
32% the education level is up to post graduation 19% . and other 12% are
those who education level are more than post graducation

Page : 73
 Maximum Extent to Take Loan
What is your maximum extent to take loans?
□ Less than 100000□ between 100000 & 500000
□ Between 500000 & 1000000 □ More than 1000000

Extent Level No. of Customer

Less Than 100000 12
Between 100000 to 500000 31
Between 500000 & 1000000 38
More than 1000000 19
Total 100

Maximum Extent To Take Loan

40

35

30

25
No. Of Customer

20

15

10

0
Less Than 100000 Between 100000 to 500000 Between 500000 & 1000000 More than 1000000

Loan Amount

In these chart, the amount of loan is given. In these, the loan amount of
Rs.1,00,000 to 5,00,000 is more means the 38% customer are those whose
take a loan of amount 1 to s laces. Then after 31% customer are those
whose take a loan of amount of Rs. 1,00,000 to 5,00,000.then 19% are take
a loan of more than 10,00,000. then 12% are those whose take a loan of
less than Rs.1,00,000.

Page : 74
 10.) HYPOTHESIS TESTING

Step-1 hypothesis

H0: extent amount to take loan is independent of income

HA: extent amount to take loan is dependent of income

Step-2: Calculated value chi- square test

Data collected through questionnaire is as below

Level of income
Extent amount to Up to 2 Between Between More Total
take loan laces. 2 & 5 5&10 than 10
laces. laces. laces.
Less than 100000 8 3 1 0 12
between 100000 & 10 16 4 1 31
500000
Between 500000 & 5 15 13 5 38
1000000
More than 1000000 0 10 3 6 19
Total 23 44 21 12 100

Page : 75
 Expected Frequency
(Row total*column total)/n
Extent amount to Up to 2 Between Between More
take loan laces. 2 & 5 5&10 than 10
laces. laces. laces.
Less than 100000 2.76 5.28 2.52 1.44
between 100000 & 7.13 13.64 6.51 3.72
500000
Between 500000 & 8.74 16.72 7.98 4.56
1000000
More than 1000000 4.37 8.36 3.99 2.28

Page : 76
 Chi-square calculation

No. Observed Expected Fo Fe Fo-Fe (Fo-Fe)2 fo-fe2

Frequency Frequency /fe
1 8 2.76 8 2.76 5.24 27.46 9.95
2 10 7.13 10 7.13 2.87 8.24 1.16
3 5 8.74 5 8.74 -3.74 13.99 1.60
4 0 4.37 0 4.37 -4.37 19.10 4.37
5 3 5.28 3 5.28 -2.28 5.20 0.98
6 16 13.64 16 13.64 -2.36 5.57 0.41
7 15 16.72 15 16.72 -1.72 2.96 0.18
8 10 8.36 10 8.36 1.64 2.69 0.32
9 1 2.52 1 2.52 -1.52 2.31 0.92
10 4 6.51 4 6.51 -2.51 6.30 0.97
11 13 7.98 13 7.98 5.02 25.20 3.16
12 3 3.99 3 3.99 -0.99 0.98 0.25
13 0 1.44 0 1.44 -1.44 2.07 1.44
14 1 3.72 1 3.72 -2.72 7.40 1.99
15 5 4.56 5 4.56 .0.44 0.19 0.04
16 6 2.28 6 2.28 3.72 13.84 6.07
x2c 33.81

Page : 77
Step-3: Degree of freedom

Level of significance 5%

Degree Of Freedom is (n) & 5% level of significance

(16) & 0.05 level of significance

Step-4: Table value

Table value at 16 D.O.F and 0.05 level of significance is 0.04 (lower

bound) and 9.95 (upper bound)

Step-5: conclusion

Xcal > Xtab

(33.81) > (9.95)

H0 is rejected.

Thus extent amount to take loan is dependent of income level of customers.

Page : 78
 10.) SUGGESTION

►The bank can introduce advance technology for banking and should give
attention to Manpower time to time.

►The bank can promote confidence and commitment among the staff
members, to address the expectations of the customers efficiently and
handle technology banking with simplicity.

►The bank can take steps to forecast the changing financial need of
customer of different type of group and banking accordingly.

►The bank can identify the reason of few unsatisfied group of customer and
should take steps to eliminate their problems and grievances.

►The bank can put together all it hard work to bring more responsiveness
and awareness to customers.

Page : 79
 11.)
RESEARCH
FINDING

→I found that customer is more preferring or favoring personal loan because

it is easily available.

→30% customers prefer education scheme.

→customers are satisfied with services & other banking facility provided so
they are ready to deal but then also the bank is working in very sound
condition in every situation.

→70% of customers belongs to services & agriculture in this area farming is

the main occupation as well as young people are also going for small wage
jobs in the urban area.

→the customer ratio of urban & rural area are 2:3 means 40% customers
are from urban & 60% customers are from rural area.

Page : 80
 12.)
CONCLUSI
ON

After having all the required information for preparing my

report, I have tried to analyze each and every function of the
COOPERATIVE BANK. During my report all the staff member of the
COOPERATIVE BANK had well co-operate me. And also I have found that
the there is a very good level of commitment in all the staff members. During
my report I have try to cover each functional area related to the bank and
specially loan department.

After having clear idea about everything In the bank, I can

conclude that the COOPERATIVE BANK is one of the leading firm in the co-
operative and commercial sector, and with advanced technologies and
educated staff to try to positioning in the banking market. But than also due
to such weaknesses of co-operative sector COOPERATIVE BANK is also
suffering from such limits.

So, at last we can conclude that the COOPERATIVE BANK

is being leader in the market & bank is getting great goodwill in the market
and also great goodwill of the other director helps to the bank in creating
good image in the field of the bank.
Page : 81
 13.)
LIMITATIO
N OF THE
STUDY

1. On account of time constraint whole spectrum of long term lending

practices was not possible.

2. Inaccurate and inadequate information might have resulted to wrong

interpretation.

3. Only a very few no. of respondent were interviewed to get the

information.

4. Accounting information is another constraint.

5. Many time customers are not ready to give private information to the
researchers.
Page : 82
 14.
IMPLEMEN
TATION OF
THE STUDY

The above study can be helpful to the bank in various ways. Through these
research, the bank know that customer as well as employees are satisfy with
the service which provided by bank.

Due to these research, the customer as well as employee needs are knowing
and then implement that so that the more customer are join and firm are grow
up easily. To know current position of the bank and how to implement the
various service who aspect by the customer as well as employees.
Page : 83
 15.) SCOPE
OF THE
STUDY

1. The study is mainly concentrated on the lending practices pattern and

influence in the organization performance.

2. Enables the company to know its current position.

3. The study helps in ascertaining people’s response on bank lending

4. To be aware about the customer requirement.

Page : 84
 16.)
ANNEXTUR
E

NAME: ________________________________ AGE: ______

1. What is your the occupation?

□ Business man □ Employee
□ Profession □ Retired person

2. What is your the income level per annum?

□ more than 10 laces. □ Between 5 & 10 laces.
□ Between 2 & 5 laces. □ Up to 2 laces.

3. Which types of loans were taken by you?

□ Industrial loan □ Pledge
□ Consumption loan □ Staff consumption loan
□ Vehicle loan □ Gold loan
□ Building loan □ Consumable loan
□ Machinery loan □ Bill purchase
□ Hypothecation-cash credit

4. What is the time period of your loans?

□ 1 to 3 year □ 3 to 8 year
□ 8 to 15 year □ 15 to 25 year

5. What is your age?

□ 18 to 35 year □ 35 to 60 year □ 60 to 90 year

6. Which is another bank from you borrowed other loans?

□ UBI □ ICICI □ HDFC
□ AXIS □ BOB □ OTHER
□ NO ANOTHER LOAN

7. What is your education qualification?

□ Up to HSC □ Up to Graduation
□ Up to Post Graduation □ More than post graduation

8. What is your maximum extent to take loans?

□ Less than 100000□ between 100000 & 500000
□ Between 500000 & 1000000 □ More than 1000000

9. Are the interest rates acceptable?

□ Yes □ No

Page : 85
10. What is the behavior of staff members?
□ Excellence □ Good
□ Adequate □ Average
□ Unsatisfactory

11. Is your loan secured?

□ Yes □ No

12. Is there any hidden cost of loan?

□ Yes □ No

13. How much amount would you like to pay as monthly installment for your
loans?
____________________

14. Are the processing charges and administration charges acceptable?

□ Yes □ No

Page : 86
 17.)
BIBILIOGR
APHY
For preparing this project report, I have taken guidance from
various sources which are as follows:

1. BOOKS &JOURNALS:

►PADMANATHA SURESH & JUSTIN PAUL, “MANAGEMENT OF

BANKING AND FINANCIAL SERVICES”, PEARSON EDUCATION
PUBLISHING PVT, DELHI, THIRDEDITION, 2010.

► VASANT DESAI,”THE INDIAN FINANCIAL SYSTEM AND

DEVELOPMENT”,
HIMALAYA PUBLISHING HOUSE, MUMBAI, SECOND REVISED EDITION,
2010

► C.R.KOTHARI,”RESEARCH METHODOLOGY”, NEW DELHI, NEW AGE

INTERNATIONAL LIMITED, SEVANTH EDITION 2010

2. by Searching Sites:
www.cooperative.c
om

3. BROCHURES OF THE KURUKSHETRA CENTRAL CO-OPERATIVE BANK

Page : 87