corporate bank

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DSPMS

K.V.PENDHARKAR COLLEGE OF ARTS,

COMMERCE AND SCIENCE

S.Y.B.COM (BANKING & INSURANCE)

SUBJECT

FINANCIAL MARKET

PROJECT REPORT ON

CO-OPERATIVE BANK

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ACKNOWLWDGEMENT

This is a great pleasure for us that we got an opportunity to do project on

subject Financial Market.

my topic is about the co-operative bank . In this project work, valuable

information as well as guidance is provided by tejashri mam. We thanks

her for giving this opportunity to us.

We are also grateful to Mr. OmakarDatar Co-ordinator of BANKING

AND INSURANCE DEPARTMENT.

Date of Submission : 18-02-2012

Presented By:

Mukesh .j. saroj Roll no. 116190

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INDEX

Sr No. Contents Page No.1 Introduction about banking 04

2 History of Banking System in India 05

3 Rules of Co-operative Banks 1985 09

4 Profile of Nanded Merchants Co-op Bank Ltd,

Branch of Taroda

12

5 Organizational Structure 15

6 Financial Department 20

7 Marketing Department 278 Human Resource Department 28

9 Conclusion 30

10 Bibliography 31

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HISTORY OF BANKING SYSTEM IN INDIA

CLASSIFICATION OF BANKS :

In India, the institutions of banking has existed for a long time but

previously only individuals or family concern carried on banking. They

are called indigeneous bankers and are known as the multans, mahajans,

marwaries, or sahukars in different parts of the country. They accept

deposits which are not withdrawable by cheque. They make extensive

use of hundies for purpose of remittance and extend loans with or without

security on varying rates of interest depending on the credit, worthiness

of the borrowers. The usual classification of banks apart from indigenous

bankers is as follows :

a) Central Bank :-

It is the principal banking and monetary institution of a country and

has a monopoly of the note issue. It controls and regulates the activities

of other banks. It is usually under government ownership and

management and regulates the monitory and credit conditions in the

general interests of the economy.

b) Commercial Banks :

They accept deposit from various sources withdrawable generally

at short notice. Since there deposits are mainly for a short, they grant

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FUNCTIONS OF A BANK

The functions of a bank can be summarised as follows :

i) Receipt of Deposits

A bank receives deposits from individuals, firms and other

institutions. Deposits constitute the main resources of a bank. Such

deposits may be different types. Deposits which are withdrawlable on

demand are called demand or current deposits other are called time

deposits. Saving deposits are those from which withdrawals are restricted

as regards the amount and the period. Deposits withdrawlable after the

expiry of an agreed period are known as fixed deposit. Interest paid by

bank is different for each kind of deposit highest for fixed deposit and

lowest or even nil for current deposits.

ii) Lending of Money :

Banks lend money mainly for industrial and commercial purpose.

This lending may take the form of cash credits, overdrafts, loans and

advances, or discounting of bills of exchange. Interest charged by banks

on such lending varies according to the amount and period involved,

social priority nature of security offered, the standing of the borrowers

etc.

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iii) Agency Services :

A bank renders various services to consumers, such as :

a) Collection of bills, promissory notes.

b) Collection of dividend, interest, premium etc.

c) Purchase and sale of shares and securities.

d) Acting as trustee or executor when so nominated.

e) Making regular payments such as insurance premiums.

iv) General Services :

A modern bank performs many services of general nature to the

public e.g.

a) Issue of letters of credit, travelers, cheques, bank rafts, circular

notes etc.

b) Safe keeping of valuable in safe deposit vaults.

c) Supplying trade information and statistics: conducting economic

surveys.

d) Preparation of feasibility studies, project reports etc.

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10. Draft and Mail Transfer Advices Received Registers,

11 Draft payable Registers,

12. Drawing Power Registers,

13. Stock Registers showing collection of dividends and interest

on securities on behalf of constituents .

14. Registers or ledger of Bank's Own Investment.

15. Branch Ledgers.

16. Overdrafts and Loan Registers.

17. Safe Custody Registers.

18. Equitable Mortgage Registers.

19. Trust Registers.

20. Clean Cash Books,

ii) Records Other Than Registers

1. Bank Cash Scrolls.

2. Bank Transfer Scrolls.

3. Remittances Schedules,

4. Paid Cheques.

5. Paying slips.

6. Vouchers relating to DDs, TTs, I'ixed Deposits. Call Deposits.

Oasli credit and other deposit and loan accounts includingvouchers relating lo payment Lo nominees.

7. Account opening nomination forms,

8. Standing Instructions regarding current account.

9. Application for TTs, DDs, MTs, and other remittances.

10. Applications for overdrafts, loans and advances,

11. Press Copy Rooks.

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B) Nomination:

In terms of the above rules, person/s who hold deposit

accounts/.sate custody accounts/safe deposit lockers in their individual

capacity and not in representative capacity may avail of the facility of

nominating a person to receive payment of deposit/to receive the articles

kept in safe custody/the contents of the safe deposit locker in the event of

his/their death.

In Respect of a joint account, ail joint account holders together can

make the nomination.

In case of the deposit in the name of a minor, the person lawful ly

entitled to act on behalf of the minor can make the nomination-

Note : The Reserve Bank of the India by its circular UDB No,

BR,32.16.04.00.9K-99 dared 28"1 June, 1999, has advised the banks to

incorporate the legend "Nomination Registered" on every pass hook or

the deposit receipt so as to enable the relatives to know from the Pass

Book Deposit Receipt the availment of nomination facility by the

deceased depositor.

The nomination can be made, cancelled or varied in the prescribed

Form. No., as follows :

Deposit Safe Custody Safety Locker

Account Account Sole Hirer Joint Hirer

Nomination DA1 SC 1 SL 1 SL1A

Cancellation DA 2 SC2 SL 2 SL 2

Variation DA 3 SC3 SL 3 SL 3A

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PROFILE OF THE NANDED MERCHANTS

CO-OPERATIVE BANK LTD BRANCH OFTARODA NANDED

The Nanded Merchants Co-operative Bank Ltd. Branch of

Taroda , started its working in Nanded 1974. The registration number of

the bank is NND/BNK 136 of 1983 dated 15.04.1974.

As per the given accounts, it shows that from last eighteen years,the bank progressed in many issues and steps. But the analysis of the

bank on the several accounts doesnt shows its progress. Marathwada

region is one of the most backward region in Maharashtra. Thats why

from Reserve Bank of India to government shows their doubt to open this

bank in Nanded. But from last eighteen years positive progress of bank

has fulfilled this doubt.

The success of any co-operative sector / society is depend on the

working strategy of co-operative directors boards. If we can think on the

same issue, this bank has shown a new progressive policy which is

established now, in account of director board working shows the full faith

of bank. Last Eighteen years working of directors shows the progressive

image of bank. As per law any directors of bank can take loan. But this

bank develops their own policy. None of them cant take loan from this

bank.

On behalf of good progress bank shows their positive and

progressive attitude.

From the above figures we can come to know that as the business

of the bank get expanded its members are also increasing.

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The bank employees are very hard worker, discipline politely

behave with customers. The bank arrange the seminar for customers so

they know what is wrong then they try to done or give best service to the

customers.

The bank is arranging the different kind of training programme for

its employees for the improvement in their efficiency. These training

programme are beneficial for bank as well as employees. In this year

bank has arrange 33 conferences. H.D.F.C. bank has given the

permission to collect the draft from the major cities.

The bank is provide best service to its customers. The bank is

providing the following facilities to its customers.

1. The bank has made such arrangements that the customers can make

direct interaction with the bank persons.

2. Whenever the customer is visiting any branch of the bank they areprovided with service like tea, coffee etc.

3. Pass books, statements can quickly get modernised through

computers.

4. All transactions are completed through computers.

Upto 1997, the bank is having only 6 branches. Now the bank is

having total 9 branches in Nanded districts. The bank is having its

branches in the following area of Nanded city.

1. Old Mondha : It is the main branch of the bank.

2. Shivaji Nagar. 3. Anandnagar.

4. New Mondha. 5. Vazirabad.

6. Shrinagar . 7. Dharmabad.

8. Taroda 9. Loha.

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The following dignitaries says the following worlds about bank.

1. Shri Shridhar Nagnur (Rt. Officer, Central Bank of India) An

ideal co-operative bank. This is the one sentence description of

your bank. After hearing all information about bank i feel proud &

happy. I wish you Success and very bright future.

2. Sou. Pratibha Rasal (District judge, Pune) This bank appears to

have given new dimension to co-operative banks. This focus is on

human excellence. I wish the bank success.

3. Shri Ulhas Joshi (Management Consultant, Pune) I feel very

happy the way in which the bank has developed its business & U

wish the bank best of luck & success.

There are total 123 employees in the bank. They have divided

category wise as follows:1. Chief Executive Officer 01

2. Manager 12

3. Branch Officer/Officer 12

4. Account & Assistant Accountant 44

5. Clerks 100

6. Peons 52

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ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS OF THE BANK

The Nanded Merchants Co-operative Bank Ltd Branch at Taroda

Nanded is a co-operative bank which is managed by the board of

directors through share holders. The chairman of the bank is selected

every year among the board of directors. The board of directors are

elected through share holders for a period of 5 years.

The present Board of Directors of the bank is as follows

1. Shri. Dattaraya Mahjan Chairman

2. Shri. Ramdinji Soni Vice-Chairman

3. Shri. Gudgilla Director

4. Shri. Patil Director

5. Shri. Nathmal Purohit Director

6. Ku. Pratibha Paradkar Employee Representative

7. Shri Kishan Wananje Employee Representative

8. Shri Vijay Kulkarni Chief Executive Officer

9. Shri Madhukar Kulkarni Manager

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The financial management has been defined by the different author

as follows:

1. Financial Management is an area of financial decision making,

harmonizing individual motives & enterprise goals.

- Weston and Brigham

2. Financial Management. is the operational activity of a business

that responsible for obtaining & effectively utilizing the funds

necessary for efficient operations.

3. Financial Management, is the application of the planning &

control functions to the finance functions.

Howard and Upon.

From the above definitions it is clear that financial management is

that specialized activity which is responsible for obtaining & effectively

utilizing the funds for the efficient functioning of the business &

therefore it includes financial planning financial administration &

financial control.

Objective of Financial Management :

Financial Management evaluates how fund are used & procured. it

is generally agreed that the financial objective of the firm should be

minimization of owners economic welfare. Owners welfare can be

maximized. For this purpose there are two well known & widely criteria

which are discussed as follows:

(a) Profit Maximization.

(b) Wealth Maximization.

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a) Profit Maximization :

The maximization of profit is generally regarded as the main

objective of business enterprise. Each company collects its finance by

way of issue of shares. The public purchase these shares in the hope of

getting maximum profit from the company as a dividend. It is possible

only when the companys goal is to earn maximum profits & available

resources & invest their money in such a firm & persons who have

already invested will like to sell their stocks. On the other hand, higher

profits are the barometer of its efficiency on all fronts, i.e. production,

sales & Management. A few replace the foal of Maximization of profits

to fair profits. The main object of the Financial Management is to

safeguard the economic interest of the persons who are directly or

indirectly concerned with the company i.e. promoters, shareholders,

creditors & employees. All such interested parties must get the maximum

return for their contributions.

b) Wealth Maximization :

The wealth maximization is universally accepted criteria for

financial decision making. The value of an asset should be viewed in

terms of benefits it can produce.

Wealth maximization means maximizing the net present value of a

course of action. The net present value of a course of action the difference

between the gross present value of the benefit of action & the amount of

the investment required to achieve those benefits. The gross benefits

value of course of action is the fund out by discounting or capitalizing it

benefits at a rate which reflects their timing & Uncertainty.

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FINANCIAL PARAMETERS

1. Deposits :

The deposits which the bank has raised are as follows:

====================================================

Sr.No. Year Rs. (In lakhs)

====================================================

1. 2001 1097.65

2. 2002 1405.09

3. 2003 2188.72

4. 2004 3038.58

5. 2005 3852.63

6. 2006 3032.68

7. 2007 4012.22

8. 2008 4321.22

====================================================

The graph showing (See Graph No.1) the constant increase in

deposits & it is because the bank is giving the complete return to the

customer.

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2. Loans

The loans which the bank has distributed in last 5 years are as

follow.

====================================================

Sr. No. Year Rs. (In lakhs)

====================================================

1. 2001 722.23

2. 2002 967.72

3. 2003 1342.46

4. 2004 1700.81

5. 2005 2495.25

6. 2006 2880.32

7. 2007 3921.20

8. 2008 4012.22

====================================================

The graph showing (See Graph No.2) the constant increase in

distribution of loans.

The loan scheme which the bank is having it is really very

attractive in nature. The bank is giving 1% interest rate concession to

those persons who are repaying their loan installments regularly.

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3. Investment :

The investment which the bank is having in last 5 years is as

follows :

====================================================


====================================================

1. 2001 440.25

2. 2002 560.58

3. 2003 945.00

4. 2004 1389.98

5. 2005 1382.12

6. 2006 1412.03

7. 2007 1493.12

8. 2008 2132.23

====================================================

The graph showing (See graph No. 3)the constant increases in

investment.

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4. Recovered Share Capital:

Recover share capital which the bank has recover in the last 5 years

is as follows:

====================================================


====================================================

1. 2001 34.48

2. 2002 45.97

3. 2003 62.46

4. 2004 78.43

5. 2005 108.08

6. 2006 120.23

7. 2007 148.38

8. 2008 215.22

====================================================

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TYPES OF DEPOSITS

Specific Schemes:

The deposits schemes which the bank is having it is really very

attractive in nature. It is giving the complete return to the customers, the

money they deposited on the bank under the various deposits schemes for

the various & specific period. The rate of interest which the bank is

charging on the deposits is as follows:

1. Fixed Deposits Schemes :

30 days to 90 days - 6.0%

91 days to 180 days - 7.0%

181 days to 12 months - 8.0%

13 months to 24 months - 9.50%

36 months to 66 months - 9.0%

67 months and above - 9.0%

2. Recurring Deposits Schemes :

30 Months 2300 1,01,471.40

39 Months 2100 1,02,093.60

48 Months 1600 1,00,816.00

57 Months 1300 1,02,505.00

66 Months 1100 1,05,913.00

120 Months 500 1,15,350.00

NO TDS applicable for recurring deposit schemes.

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3. Cash Certificate Schemes :

36 Months 68130.00 1,00,000.00

48 Months 59950.00 1,00,000.00

60 Months 52570.00 1,00,000.00

66 Months 49480.00 1,00,000.00

4. Saving Bank Account :

In it the bank offers 3.50% interest rate in saving bank Account.

5. Current Account :

Professionals, individual businessman can get benefit of 0.50%

interest while operating their business with the bank.

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TYPES OF LENDING

The loan schemes which the bank is offering to its customers are as

follows:

1. Loan up to Rs. 2 lakhs 15.00%

2. Loan up to Rs. 5 lakhs 15.00%

3. Loan up to Rs. 5,00,0001 & above 15.00%

4. The loan which the bank is giving for the purpose of T.V.

Fridge, Vehicle. 14.00%

5. The loan upto Rs. 2 lakhs which has been given for the

purpose of house loans, constructions (10 years). 15.00%

The bank is giving 1% interest rate concession to those persons

who are repaying their loans installments regularly.

The bank is offering following loan facilities -

1. Instant Demand Loan against our own term deposit receipts.

2. Loans for working capital requirements of SSI units.

3. Personal loan for purchase of consumer durables.

4. Loans against personal guarantees.

5. Trade loans for business concern.

6. Bills/ Cheques discounting facility.

7. Terms loans for purchase of plant & machinery for industrial

unit.

8. Demands loans available on all Government securities such

as National saving certificates, LIC policy, Kisan viks Patra

etc. & other Govt. securities.

9. Term loans facilities for house repairing & purchase of ready

built house.

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MARKETING DEPARTMENT

MARKETING STRATEGY

The marketing strategy which has been applied by the bank is

publishing its advertisement. In the news papers such as Sakal, Tarun

Bharat.

The bank is also heavily relay upon word by mouth publicity as

well as mouth to mouth publicity. The bank has created a goodwill in the

minds of customers by providing best qualitative service. Due to it, the

customer is also doing publicity of the bank. From it, the bank is also

getting a lot of business.

As the bank has achieved the status of having maximum number of

branches is one city. The bank is also using it heavily as a part of its

marketing strategy.

Regarding the marketing strategy the bank is following the below

mentioned principles:

1. Customer service is team work.

2. Customer service is ego management.

3. Customer service is proper communication.

4. Customer service counter service.

5. Customer service is listening.

As part of marketing strategy regarding customer service, the bank

is following the below mentioned commandments:

1. Render service with a smile

2. Cultivate positive approach attitude & outlook in respect of

customer problem.

3. Extend service with courtesy, speed & accuracy.

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HUMAN RESOURCE DEPARTMENT

GENERAL WORKING CONDITIONS OF THE BANK

A) Employee-Year Wise

The year wise employees who are working in the bank is as

follows.

====================================================

YEAR NO. OF EMPLOYEES

====================================================

2000-01 73

2001-02 92

2002-03 94

2003-04 96

2004-05 123

2005-06 137

2006-07 156

2007-08 169

====================================================

There are total 236 employees working in the bank.

B) Staff Salary & Allowances :

From 1st April 1999 to 31st March 2000.

Staff Salary 55,12,328.50

Anoriyam Charges 12,000.00

Life Insurance 5,90,985.00

Conveyance Allowance 10,850.00

Other Allowances 7,940.00

=============

61,34,103.50=============

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Functions of HRM

The functions of HRM can be broadly classified into two

categories, viz.,

i) Managerial functions.

ii) Operative Functions.

Functions of HRM

Managerial Functions Operative Functions

Planning Employment

Organizing Human ResourceDevelopment

Direction Compensation

Controlling Human Relation

Industrial Relations

Recent trends in HRM

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CONCLUSION

From the above we can conclude that,

1) The working procedure which has been existed in the bank is really

nice in the nature. The staff which is working in the bank is very co-

operative in natures and they are working at their best level and providing

best kind of services to its customers. As the employees are taking part in

the decision making process so they are not having any complaint with

the management.

2) As the bank is providing the loans to its employees on the discount

basis for the purpose of house construction, vehicle purchase and

computer purchase. So the employees are feeling good about the bank.

The bank is providing group insurance facilities to its employees.

3) The bank is conducting many social activities and helping the

needy ones. The bank is facing the tremendous challenge in terms of the

service, quality managing service, competition from other firms and

customer satisfaction. The management of the bank is liking to accept

the challenge for the process of learning and relearning.

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BIBLIOGRAPHY

1. Development Banking

Vasant Desai.

2. The Banking Law & Practice

H.C. Sarkar.

3. Annual General Reports of Nanded Merchants Co-operative

bank Ltd Branch at Taroda.

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corporate bank

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