summer internship project on bank
TRANSCRIPT
SUMMER INTERNSHIP PROJECT
ON
“LOAN & ADVANCES MANAGEMENTIN
GOPINATH PATIL PARSIK JANTA SAHAKARI BANK LTD.”
SUBMITTED
TO
ANKITA SHREVASTEV
ORIENTAL INSTITUTE OF MANAGEMENT
(UNIVESITY OF MUMBAI)
FOR THE DEGREE
OF
MASTERS IN MANAGEMENT STUDIES
(2012-2014)
BY(VISHAL DILIP NIMBALKAR)
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DECLARATION
I hereby declare that the project title “Loan & Advances
Management in Gopinath Parsik Janata Sahakari Bank Ltd.” is submitted in
fulfillment of Masters in Management Studies degree of University of Mumbai in
the academic year 2012-2013 was carried with sincere intention.
The project period duration was form 11/05/2013 to 29/07/2013.
To the best of my knowledge it is an original piece of work done by me and it
has neither been submitted to any other organization nor published at anywhere
before.
_________________________
(VISHAL DILIP NIMBALKAR)
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CERTIFICATE
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ACKNOWLEDGEMENT
Before we get into the thick of thing, I would like to say that it was a great pleasure & privilege
for me to have the opportunity of undertaking the training at Gopinath Patil Parsik Janata
Sahakari Bank Ltd. for a period of 60 days. I would like to thank the Bank for providing me such
an opportunity.
I express my sincere thanks to my project guide, Mr. Sanjay Patil, Designation Head of Loan
Dept. & Mr. Sanjay Gaikwad, Designation Asst. Manager of the branch as well as Mr. Dilip
Jadhav, Designation Supervisior of the Airoli sec 5 branch for guiding me right from the
inception till the successful completion of the project. I sincerely acknowledge them for
extending their valuable guidance, support for literature, critical reviews of project and the report
and above all the moral support they had provided to me with all stages of this project.
I would also thank my Institution and my faculty members without whom this project would
have been a distant reality. I am sure that the knowledge & information that I have gained during
this period would be of immense value for my growth in business world.
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TABLE OF CONTENT
CHAPTER CONTENT PAGE NO.
I. Executive Summery 7
II. Objective of the Study
III. Methodology
IV. Industry Introduction
V.
VI. Gopinath Patil Parsik Janata Sahakari Bank Ltd.
VII.
VIII
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EXECUTIVE SUMMERY
The report contains introduction to Banks, which includes past, present and future of banks and
challenges for banking industry in future. Banks plays the most important role in providing
various banking services. Earlier the banks were engaged in accepting and lending money. But in
the recent past the scope of services provided by the banks has increased. The growing
competition requires prompt and efficient services to the customers at reasonable cost. These
days bank aim to provide maximum satisfaction to their customers.
The next part of the report consist the knowledge about the cooperative banks in India. It includes history of
cooperative bank in indianite features and service provided by it in rural and urban sector. The structure of
cooperative bank in India is also includes in it.
Then a brief introduction of Gopinath Patil Parsik Janata Sahakari Bank Ltd. comes in next part of
the report which consist the history, management team and objective made by Chairman MR. Ranjit Patil.
The current financial position of the bank also includes in this part.
Then the meaning of certain terminology includes in this report .these terms are related with the topic for ex. cash
credit, lease, secured loan etc. the objective of this section is only to make aware about certain terminology used by
bank regarding loan facility.
The next section of report i.e. training methodology consist title of report, duration of training session, objective
and limitation of study etc. this section basically giving the outline of the report.
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Next section consist the loan and credit facility provided by bank. This section consist various loans provided by
bank the detail regarding those loans, procedure to recover it, actual position of bank in loan area, and
recommendation and the various proposals that the Cooperative bank could apply for maintaining its position in
the region and to face future challenges and the suggestions for the improvement.
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INDUSTRY PROFILE
INDUSTRY PROFILE
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WHAT IS BANKING?
Banking in a traditional sense is the business of accepting deposits of money from public For the
purpose of lending and investment. These deposits can have a distinct feature like being
withdrawn able by cheques, which no other financial institution can offer. In Addition, banks
also offer financial services, which include:
● The Issue of demand draft & traveler’s cheque.
● Credit cards
● Collection of cheques, bill of exchange.
● Safe deposit lockers
● Custodian services.
● Investment and Insurance Services.
The business of banking is highly regulated since banks deal with money offered to them by the
public and ensuring the safety of this public money is one of the prime responsibilities of any
bank. That is why banks are expected to be prudent in their leading and investment activities.
Every bank has a compliance department, which is responsible to ensure that all the services
offered by the bank, and the processes followed are in compliance with the local regulations and
the Bank’s corporate policy. The major regulations and act govern the banking business are: -
● Banking Regulation Act, 1949
● Foreign Exchange Management Act, 1999
● Indian Contract Act
● Negotiable Instruments Act, 1881
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Bank lends money either for productive purposes to individual, firms, and Corporate etc. for
buying house property, cars and other consumer durables and for investment Purposes to
individuals and the others. However, banks do not finance any Speculative activity. Lending is
risk taking.The depositors of banks are also assured of safety of their money by deploying
somepercentage of deposit in statutory Reserves like SLR & CLR.
STANDARD ACTIVITIES OF BANK
Banks act as payment agents by conducting checking or current accounts for customers, paying
cheques drawn by customers on the bank, and collecting cheques deposited to customers' current
accounts. Banks also enable customer payments via other payment methods such as telegraphic
transfer, and ATM.
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by
making advances to customers on current accounts, by making installment loans, and by
investing in marketable debt securities and other forms of money lending.
Banks provide almost all payment services, and a bank account is considered indispensable by
most businesses, individuals and governments. Non-banks that provide payment services such as
remittance companies are not normally considered an adequate substitute for having a bank
account.
Banks borrow most funds from households and non-financial businesses, and lend most funds to
households and non-financial businesses, but non-bank lenders provide a significant and in many
cases adequate substitute for bank loans, and money market funds, cash management trusts and
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other non-bank financial institutions in many cases provide an adequate substitute to banks for
lending savings too.
REVENUE GENERATION
A bank can generate revenue in a variety of different ways including interest, transaction fees
and financial advice. The main method is via charging interest on the capital it lends out to
customers. The bank profits from the differential between the level of interest it pays for deposits
and other sources of funds, and the level of interest it charges in its lending activities.
This difference is referred to as the spread between the cost of funds and the loan interest rate.
Historically, profitability from lending activities has been cyclical and dependent on the needs
and strengths of loan customers and the stage of the economic cycle. Fees and financial advice
constitute a more stable revenue stream and banks have therefore placed more emphasis on these
revenue lines to smooth their financial performance.
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BANKING IN INDIA
Banking means accepting for the purpose of landing or investment of deposits of money from the
public repayable on demand or otherwise one withdraw able by cheque, draft or otherwise.
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 Mugal Period, the native bankers played a very important role
in lending money and finance foreign trade and commerce. During the days of the east- India
Company, it was the turn of the agency house to carry on the banking business the general bank
of India was the first joint stock bank to be established in the year 1786. The others that followed
were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustanis 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 in1809, the Bank of
Bombay in 1840 and 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 ion 27th January 1921. With the passing of the state bank act 1955 the under taking
of the imperial Bank of India is taken over by the newly constituted the state bank of India.
NATIONALIZATION
The GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the
step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the
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Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the GOI controlled around 91% of the banking
business of India. Later on, in the year 1993, the government merged New Bank of India with
Punjab National Bank. It was the only merger between nationalized banks and resulted in there
reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the
nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian
economy.
LIBERALIZATION
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,
licensing a small number of private banks. These came to be known as New Generation tech-
savvy banks, and included Global Trust Bank (the first of such new generation banks to be
setup), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI
Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy
of India, revitalized the banking sector in India, which has seen rapid growth with strong
contribution from all the three sectors of banks, namely, government banks, private banks and
foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
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which could exceed the present cap of 10%, at present it has gone up to 74% with some
restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The
new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.
All this led to the retail boom in India. People not just demanded more from their banks but also
received more.
Currently (2007), banking in India is generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal
pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage
volatility but without any fixed exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time -especially in
its services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M &A’s, takeovers, and
asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pinups to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed
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to hold more than 5% in a private sector bank since the RBI announced norm sin 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by them.
In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank,
INGVyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks
from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank,
Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express
Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.
INDIAN BANKING INDUSTRY
The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all Matters
relating to the banking system. It is the Combination of Banks of India and bankers to all others
banks as well.
The Indian Banking industry, which is governed by the Banking Regulation Act of India,
1949can be broadly classified into two major categories, non -scheduled banks and scheduled
banks.
1. Schedule Banks:-
These banks must have paid-up capital and reserve of mot less than Rs.50,00,000. They must
satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its
depositors. These are further classified as follow:
● State co-operative Banks
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● Commercial Banks
Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State Bank of India and its
group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).
These banks have over 67,000 branches spread across the country in every city and villages of all
nook and corners of the land.
2. Non-Schedule Banks:-
These are banks, which are not included in the second schedule of the Banking Regulations Act,
1965. It means they do not satisfy the conditions laid down by that schedule. They are further
classified as back:
● Central co-operative banks and primary credit societies
● Commercial Banks
COMMERCIAL BANKS.
Commercial Banks in India are broadly categorized into Scheduled Commercial Banks and
Unscheduled Commercial Banks. The Scheduled Commercial Banks have been listed under the
Second Schedule of the Reserve Bank of India Act, 1934. The selection measure for listing a
bank under the Second Schedule was provided in section 42 (60 of the Reserve Bank of India
Act, 1934. The modern Commercial Banks in India cater to the financial needs of different
sectors. The main functions of the commercial banks comprise:
● transfer of funds
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● acceptance of deposits
● offering those deposits as loans for the establishment of industries
● Purchase of houses, equipments, capital investment purposes etc.
● The banks are allowed to act as trustees. On account of the knowledge of the financial
market of India the financial companies are attracted towards them to act as trustees to
take the responsibility of the security for the financial instrument like a debenture.
● The Indian Government presently hires the commercial banks for various purposes like
tax collection and refunds, payment of pensions etc.
CURRENT SCENARIO
Indian Banking Sector Outlook - 2013
Over the past couple of years, the Indian banking sector has displayed a high level of resiliency
in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and
Europe. In order to stimulate the economy and support the growth of banking sector, the Reserve
Bank of India (RBI) adopted severe policy measures such as increasing the key monetary policy
rates such as repo and reverse repo 16 times since April 2'009 to Oct 2011 and tightening
provisioning requirements. Amidst this economic scenario, the key challenge for the Indian
banking system continues in improving their operational efficiency and implement prudent risk
management practices. Some of the key trends expected to emerge in the near future are as
under-Economic slowdown likely to impact the demand for credit
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High interest rates, subdued industrial production and domestic consumption impacted the
growth of the Indian economy which slowed down from 8.4% in FY11 to 6.5% during FY12.The
scheduled commercial banks' (SCBs) overall credit grew at a slower pace during FY12 at 17% y-
o-y as compared to 21.5% registered during FYll.As per the recent RBI data, the non-food bank
credit increased by 15.5% in Oct 2012 over its corresponding month previous year, as compared
to 18.2% witnessed in Oct 2011 over its corresponding month previous year. Similarly, credit to
industry and services sector recorded a slower growth of 15.2% and 13.7% respectively as
against 23.1% and 18.4% during the same period. As per RBI's second quarter review of
monetary policy for FY13, the GDP growth estimates for FY13 is revised downwards from 6.5%
forecasted earlier to 5.8%.Any further slowdown in the Indian economic growth is likely to
impact the demand for bank credit.
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COMPANY
PROFILE
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COMPANY PROFILE
Gopinath Patil Parsik Janata Sahakari Bank Ltd.
Gopinath Patil Parsik Jananta Sahakari Bank Ltd. (GPPJSB Ltd.) Founded on 21st May 1972, in
a remote village in Kalwa (Thane District, Maharashtra), Gopinath Patil Parsik Janata Sahakari
Bank enjoyed tremendous patronage right since the inception. It established under the leadership
of Shri. Gopinath Shivram Patil and other founding directors, the bank flourished and
expanded its reach to Thane, Navi Mumbai, Pune and Nashik. With an inspiring deposit base
more than Rs 1100 Crores, Gopinath Patil Parsik Janata Sahakari Bank is riding high on
customer satisfaction and trust. What is even more heartening is that the bank has helped many
to meet their financial needs.
They are currently operating through 42 fully-equipped branches and 4 Extension Counters.
Gopinath Patil Parsik Janata Sahakari Bank is getting ready for the next phase of rapid
expansion.
Milestones
Scheduled Bank status on 30th January, 1998.
Ranked as the “The Best Urban Bank" among the 400 Urban Banks in Maharashtra.
(Three Times Award)
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Only bank in Maharashtra with low/negligible rate of defaulters
CSR (Corporate Social Responsibility) Initiatives
Financial assistance to various Charitable Trust, Education of students (member’s),
medical help to members
Nature conservation - plantation programmes in and around Thane
Closely associated with a Charitable Trust managing an Agricultural College (Diploma),
Secondary School and a Vruddhashram (Old-Age Home).
Recently, the committee has given the Founder's name to the Bank "GOPINATH PATIL
PARSIK JANATA SAHAKARI BANK"
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HISTORY
In the year 1971 the Government of Maharashtra acquired all agricultural land of 68 villages of
Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e.
“New Bombay”. Acquisition of land for New Bombay project means compulsorily depriving
several thousands of people of their means of livelihood. Though Government was paying them
money as compensation, but they were parted away from their land, the only means of livelihood
forthem.
To equip the project affected persons and their family members with strength and ability, to
survive with new urban means of livelihood, it was necessary to provide them financial
assistance. With a view to provide financial assistance, generate employment and means of
livelihood, Late Shri.Gopinathdada Shivram Patil along with a group of youngsters of Kalwa
village took the initiative of formation of Urban Co-operative Bank. These groups of youngsters
were successfully running a Consumer Co-operative Society by name “Kalwa Consumer Co -
operative Society”. This group of youngsters, on their study-tour to Western Maharashtra, for
study of co-operation, was fascinated by network and growth of cooperative societies and the
role played by Urban Cooperative Banks in the development of that region.
After the study tour, Late Shri.Gopinathdada Shivram Patil along with a group of youngsters
called a meeting of residents from Kalwa and nearby villages and took the first step for the
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formation of the bank in December 1971 by collecting Share Money. Collection of share money
was the most difficult task at that time. In a village where there were no banking facilities
available, these youngsters started collecting Rs. 50/- as contribution towards share capital by
going door to door. In the year 1971 Rs.50/- was also a substantial amount and it took lot of
efforts and hardship to collect the required numbers of members.
The registration of “Parsik Janata Sahakari Bank Ltd.” was approved by Co-operative
Department in the month of April, 1972, with registration number TNA/BNK/160 dated 24th
April, 1972. The first branch office at Kalwa Naka was opened on 21st May, 1972.The bank was
named as “Parsik” because active jurisdiction of bank was the west side area of Parsik Hill,
which has range from Kalwa to Belapur (the famous Parsik Railway Tunnel is situated in the
same range). “Parsik” also means Parshwanath (Lord Shiva), whose temple was existed on the
hill as per history. Bank achieved status of “Scheduled Bank” on 30 thJanuary,1998.
As an impact of the Trust shown in Late Shri. Gopinathdada Shivram Patil, an amount of Rs.1
lac was collected within 3 months. For the first three to four years, Bank was trying to maintain
its existing Deposit but with consistent efforts of Late Shri. Gopinathdada Shivram Patil and his
team, Bank accelerated its pace of growth in the forthcoming years. The Consistent and
Dedicated efforts of Late Shri. Gopinathdada Shivram Patil and his team brought dignity to the
Bank in the form of Padmabhushan Vasantdada Patil Puraskar continuously for 1995-96, 1996-
97, 1997-98 which was awarded by Maharashtra State Co-operative Banks Association in the
Mumbai Division. As a token of acknowledgment for Generosity, Consistency, Dedication and
Sacrifice made for the growth of Co-operation by Late Shri. Gopinathdada Shivram Patil, Thane
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Municipal Corporation awarded him with the most coveted THANE BHUSAN PURASKAR
which is another feather in the Bank’s Reputation. Bank has been catering the needs of the
society through its well-equipped 42 Branches spread in Thane, Mumbai, Navi Mumbai, Pune,
Nashik, & Ichalkaranji (Kolhapur). It has been permitted to extend its area of operation
throughout the state of Maharashtra. Bank is gradually progressing on the path of Consistency
and Dedication with Ethics, Principles and Discipline developed by Late Shri Gopinath Shivram
Patil for achieving the ultimate goal of Customer Satisfaction. Bank equipped with CBS,
NEFT/RTGS is in process for providing Net Banking, Mobile Banking, Debit Card. Bank is
gearing itself with increasing number of Branches throughout Maharashtra in the near future.
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NATURE OF THE BUSINESS CARRIED
Bank is an institution which deals in money and credit. It accepts deposits from the public and
grants loans and advances to those who are in need of funds for various purposes. Banking is an
activity which involves acceptance of deposits for the purpose of lending or investing. In
addition to accepting deposits and lending funds, banking also involves providing various other
services along with its main banking activity. These are mainly agency services, but include
several general services as well.
A banker is one who undertakes banking activities, accepting deposits and lending money for
different purposes. The Banking Regulation Act, 1949 defines banking as an activity of
accepting funds from the public for the purpose of lending or investment.
The essential features of banking activities are as follows:-
i) accepting deposits from public;
ii) lending or investment of such deposits;
iii) incidental to the activities of accepting deposits for lending or investing, banks undertake
activities like —
a) Promoting and mobilizing savings of the public;
b) Providing funds to trade and industry by way of discounting bills, overdraft, cash credit
facility, and transfer of funds from one place to another;
c) Providing agency services to customers, such as collection of bills, payment of insurance
premium, purchase and sale of securities, etc., and other general services, such as issue
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Of travelers’ cheques, debit card locker facility, etc; Money deposited with the bank is assured as
far as its safety is concerned. Further the depositor is allowed to withdraw it whenever required.
Banks allow interest on deposits. Such interest helps in the growth of funds deposited with the
bank. Thus the rate of interest provided on deposits acts as an incentive to the depositors.
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VISION, MISSION AND COMPANY POLICY
VISION
To become the most respected Bank in the financial services space in India. To emerge as
a single window for meeting the financial and developmental needs of the MSME sector to make
it strong, vibrant and globally competitive, to position Good Brand as the preferred and customer
- friendly institution and for enhancement of share - holder wealth and highest corporate values
through modern technology platform.
MISSION:
To be among the pillars of the banking industry, a strong and resilient institution
committed to lasting partnerships with and superior service to our clients; the well-being of our
employees; fair return on equity for our shareholders; and national growth and development as
financial catalyst.
TO OUR CLIENTS:
We shall always seek and preserve the trust and confidence of our clients and customers. We
shall offer a wide range of products that will meet the customer's life aspirations. And we shall
render excellent service to customers, treating them not only as customers but as people.
TO OUR EMPLOYEES:
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Realizing the value of our employees in achieving our goals, we will recognize their contribution
to the efficient management of our institution. We shall promote productivity and a sense of
belonging.
TO OUR COMPANY:
We shall pursue strength in our balance sheet and profitability in our performance. Cognizant of
the demands of our exacting responsibility, we commit, without reservation, to apply the highest
standards of probity, prudence, and professionalism in our tasks.
TO OUR COUNTRY:
We acknowledge our responsibility to our country and commit to mobilize our resources in the
interest of the economy. Recognizing the potential of our countryside, we shall constantly
endeavor to expand our reach and distribution network to make meaningful contribution to
entrepreneurial ventures.
COMPANY POLICY:
Remain largely a retail focused organization, driving stickiness through knowledge and
quality service.
Target the micro, small and medium enterprises mushrooming across the country through
a cluster approach for lending business.
Growth with focused team of dynamic professionals.
Fairness in all our dealings – employees, customers, vendors and shareholders all
included.
Transparency in what we do – and in how and why we do it.
Service orientation is our core value, imbibed by all sales as well as support teams.
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PRODUCT AND SERVICES:-
PRODUCT:
Insurance Product:
Insurance cover offered along with other Loans/Product
Home Loan Assurance scheme
Education loan Insurance Scheme (Optional)
Loans
Personal Loan
Commercial Loan (Export Finance)
Lease financing
Deposit Scheme
Saving Bank
Current Deposits
Term deposits - Double Benefit deposits,
Fixed Deposit Receipt
Short Deposit Receipt
Tax saving deposit
Cards
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Debit Card
SERVICES PROVIDED BY BANK:
CBS (Core Banking Solution)
Core Banking Solution (CBS) is networking of branches, which enables Customers to
operate their accounts, and avail banking services from any branch of the Bank on CBS network,
regardless of where he maintains his account. The customer is no more the customer of a Branch.
He becomes the Banks Customer. Thus CBS is a step towards enhancing customer convenience
through anywhere and anytime banking.
Customer of any branches of the bank can aware the various banking facilities from any
other branch of the bank. These services are:
To make enquiries about the balance; debit or credit entries in the account.
To obtain cash payment out of his account by tendering a cheque.
To deposit a cheque for collection.
To deposit cash into the account.
To deposit cheques / cash into account of some other person who has account in
any branch.
To get statement of account
To transfer funds from his account to any other account provided accounts
are in any branches of the bank.
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To obtain Demand Drafts or Banker's Cheques from any branch in CBS.
All these aim to provide convenient, efficient, and high quality banking experience to the
customers, comparable to world class standards.
ATM (Automated Teller Machine) Service:
The Bank's 29 ATM of 23 branches of the Bank are connected to Central ATM Switch at
Data Center and Customers are able to do all the transactions through any of the Branches of the
Bank in Thane, Navi Mumbai & Pune. By using ATM, Customer can transfer fund between his
own accounts with different branches, provided both accounts are linked to his ATM card.
SMS BANKING:
On the Technology Services, Bank has successfully implemented the Core Banking Solution (CBS) Bank has its own Data Center and Disaster Recovery site which helped us to migrate all the Branches at Data Center. It will also help to provide various services to our customers by multiple delivery channels such as ATM, SMS, and ABB Banking. This has brought the Bank at par with the leading Banks.
SMS Banking SMS Banking Services are available for the customers of the Bank by using the SMS feature of mobile phones. Customer will be able to know the latest balance and last 3 transactions in their accounts.
SMS Alerts Apart from above Bank is also providing SMS alerts to the customer for clearance of cheques, maturity of term deposits, dishonour of cheque, cheque presented in clearing and pending for clearance, Transaction of amount above Rs 5000.
RTGS (Real Time Gross Settlement)
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Being member of Real Time Gross Settlement System (RTGS), our Bank offers transfer of funds through RTGS. Our customers can have prompt, efficient, secure, economical and reliable transfer of funds from our bank to the beneficiary’s accounts with other member banks across the country and from remitter’s account in a particular member bank to the beneficiary’s account with our bank. Minimum stipulated transaction value for using this facility is Rs.200000/-.
An electronic payment system in which payment instructions between our bank and other banks are processed and settled individually and on a real time basis for transaction value of Rs 2 lac and above. Under normal circumstances the beneficiary bank's branch receives the funds in real time as soon as funds are transferred by the remitting bank.
Note: RTGS systems work on all days except on Sunday and national holidays across the states.
Beneficiary's Information Required for transfer of funds
Name of the beneficiary
Account Number of the beneficiary
Amount to be remitted
Name of the beneficiary bank, branch and its IFSC
Sender to receiver information, if any
Charges: UP TO Rs 5 lakh Rs 20/- ABOVE Rs 5 lakh Rs 40/-
NEFT (National Electronic Fund Transfer System): Our Bank also offers transfer of funds through National Electronic Fund Transfer system
(NEFT). Customers can have efficient, secure, economical and reliable transfer of funds from our bank to the beneficiary’s accounts with other banks across the country and from remitter’s account in a particular bank to the beneficiary’s account with our bank.
In this payment system instructions between banks are processed and settled on batch to batch basis at fixed times during the day. There is no minimum or maximum stipulated transaction value for using this facility. The Special feature of this system is that it is available in Nepal also.
Note : NEFT systems work on all days except on Sunday and national holidays across the states.
Beneficiary's Information Required for transfer of funds
-Name of the beneficiary
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-Account Number of the beneficiary
-Amount to be remitted
-Name of the beneficiary bank, branch and its IFSC
-Sender to receiver information, if any
Charges : Rs 5/- per transfer.
E-PAYMENT OF TAXES: E-payment is a facility to pay government taxes of customer Through internet banking facility.
Following e-payment facilities are provided to our Valuable customers
1] M.vat / Sales Tax2] Income Tax / TDS3] Service Tax / Excise Duty4] Custom Duty5] Professional Tax
Charges for e-payment : 1] up to Rs. 1 lakh Rs. 25/- + Service Tax2] above Rs. 1 lakh to 5 lakh Rs. 50/- + Service Tax3] above Rs. 5 lakh to 10 lakh Rs. 100/- + Service Tax4] above Rs. 10 lakh Rs. 200/- + Service Tax
ABB (Any branch banking):In Any Branch Banking is offering following services to its customers
For further details contact your nearest branch
The Bank's customer having ATM card can withdraw the Cash from any ATM of the Bank.
The Bank is providing the facility to withdraw / Deposit / Transfer the cash through the counter from any of Banks branches.
The customer can deposit his / her cheque in any of our branch of the bank.
33 | P a g e
AREA OF OPERATION
The legal transactions executed by a bank in its various bank departments and local
branches, and they ensure all transactions run smoothly. Depending on the focus and size of the
bank branch. Banking operations managers also concentrate on improving the bank’s customer
service record and intervening when problems arise
Such as:
Providing loans,
Mortgages and investments,
Deposit scheme,
Services
No. of Shareholder 68837
No. of Branches 42+4
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OWNERSHIP PATTERNS
Schedule Banks:-
These banks must have paid-up capital and reserve of mot less than Rs.50,00,000. They must
satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its
depositors. These are further classified as follow:
● State co-operative Banks
● Commercial Banks
Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State Bank of India and its
group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).
These banks have over 67,000 branches spread across the country in every city and villages of all
nook and corners of the land.
COMPETIOTORS INFORMATION
Vijaya Bank
Abhyudaya Co-operative Bank Ltd
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ACHIEVEMENTS AND AWARDS:-
1. “Congress Seva Dal” Navi Mumbai awarded – Seva – Bhushan Award in the year 1995-
96.
2. Maharashtra State Cooperative Banks Association awarded the “Best Urban Bank
Padmabhushan Vasantdada Patil Award ” for three consecutive years 1996-97, 1997-98
and 1998-99.
3. Parsik Bank got awards for three consecutive years ending 98-99 from Organization
called “Yuvak Mudra”, who organized competition in memory of Rajarambapu patil in
regards with merit and principal of cooperative banks.
4. Bris Indiglo has ranked Parsik Bank as follows in their survey for the year 2002-2003.
First Number in “Overall Ranking” in Thane District.
Second Number in “Overall Ranking” in all over Maharashtra State.
Fourth Number in “Safest Category”
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5. The Maharashtra State Cooperative Banks Association has awarded the trophy of
Padmabhushan Vasantdada Patil Award – 2008-09 for Best cooperative bank in konkan
region for the year 2008-09.
6. Successful Implementation of CBS – 2009.
7. Bank got 1st Rank in the category of best bank among Cooperative banks with deposit
over Rs.500 Crores for the year 2009-10 from The Maharashtra Urban Coop.
8. Bank got 3rd Rank in the category of best bank among Cooperative banks with deposit
over Rs.500 Crores for the year 2010-11 from The Maharashtra Urban Co-op. Banks
Federation
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7’s FRAME WORK
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SWOT ANAIYSIS
Strength 1. Public sector undertaking. Thus, has govt.
backing
2. In this area for more than 41 years. Thus,
expertise in this field.
3. Increasing profits over the years
4. High connectivity to common man in some
parts of the country
Weakness 1. Risk averse
2. Advertising is less thus weak brand
recognition as compared to major players
3.Increasing NPAs
Opportunity 1. Rural Areas
2. Installation of more ATMs
4. Use of mobile banking, internet banking on
a large scale
3. Small enterprise banking
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Improved Urban retail banking
Threats 1. Highly competitive environment
2.New bank licenses
3. Economic slowdown
Financial statements for the year ended 31st March, 2013
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1. Background
Gopinath Patil Parsik Janata Sahakari Bank Ltd. is a scheduled co-operative bank providing wide
range of banking and financial
services through 42 branches. It is governed by the Banking Regulation Act, 1949 (as applicable
to co-operative societies / banks) and
the Maharashtra Co-operative Societies Act, 1960 and the rules framed thereunder.
2. Basis of Preparation
The financial statements have been prepared following the going concern concept, on an accrual
basis, unless otherwise stated, under
the historical cost convention, except for building acquired on merger with Ichalkaranji Mahila
Sahakari Bank Ltd, Ichalkaranji which
is carried at revalued amount, and comply with the generally accepted accounting principles in
India, statutory requirements under
the Banking Regulation Act, 1949 & Maharashtra State Co-operative Societies Act, 1960,
circulars and guidelines issued by the
Reserve Bank of India (RBI) from time to time, the accounting standards issued by the Institute
of Chartered Accountants of India
(ICAI), to the extent applicable, and current practices prevailing within the banking industry in
India.
3. Use of Estimates
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The presentation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities at
the end of the reporting period. Management believes that these estimates and assumptions are
prudent and reasonable. However, actual results could differ from estimates requiring an
adjustment to the carrying amounts of assets or liabilities which are recognised prospectively in
the future periods.
A. Significant accounting policies:
1. Investments:
1.1) Classification of Investments:
For the purpose of disclosure in the Balance Sheet, Investments have been classified under four
groups, namely, Government Securities, other approved securities, shares and bonds of PSUs and
other investments.
1.2) Categorization of Investments:
In accordance with the guidelines issued by the RBI, the Bank has classified its Investment
portfolio into the following three categories:
“Held to Maturity” (HTM) – securities acquired with the intention to hold till maturity.
“Held for Trading” (HFT) – securities acquired with the intention to trade.
“Available for Sale” (AFS) – securities which do not fall within the above two categories.
1.3) Valuation of Investments:
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Investments under “Held to Maturity” (HTM) category are carried at Book Value. The premium
paid, if any, on the investments under this category is amortised over the residual life of the
security as per guidelines of RBI and Policy adopted by Bank. The profit / loss on investments
acquired at a discount on face value, under this category, are recognised only at the time of
redemption / sale of the investment.
Investments under Available for Sale category are valued scrip-wise at lower of Cost or Market
Value. Net depreciation, if any, under each classification has been provided for, net appreciation,
if any, has been ignored.
Market Value, where market quotes are not available, is determined on the basis of the “Yield to
Maturity” (YTM) method as indicated by Primary Dealers Association of India (PDAI) jointly
with the Fixed Income and Money Market Derivatives Association of India (FIMMDA).
Appreciation/ Depreciation are aggregated for each class of securities and net depreciation in
aggregate for each category as per RBI guidelines is charged to Profit and Loss Account. Net
appreciation, if any, is ignored.
1.4) The Bank is not holding any investments under Held for Trading (HFT) category.
2. Advances:
2.1 The classification of advances into Standard, Sub-standard, Doubtful and Loss assets as well
as provisioning on Standard Advances and Non-Performing Advances has been arrived at in
accordance with the Income Recognition, Assets Classification and Provisioning
Norms prescribed by the RBI from time to time till date.
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2.2 The unrealized interest in respect of advances classified as Non-Performing Assets is
disclosed as “NPA Interest Receivable” as per RBI directives.
3. Fixed Assets:
3.1 Land is carried at cost. Premises, Furniture & Fixtures, Plant & Machinery and Capital
Expenditure on Rental premises are stated at cost less depreciation. Cost includes incidental
expenses relating to acquisition and installation of fixed assets. In respect of assets acquired prior
to 01.04.2006, written down value as at 31.03.2006 is considered as original cost for the purpose
of disclosure under ‘Gross Block’ in the Fixed Assets Schedule.
3.2 Computer Hardware, Computer Software, UPS and Batteries, ATM Machines, Printers, CC
TV, LCD Projector are depreciated on Straight Line method @ 33.33% as directed by RBI.
3.3 The depreciation on assets acquired prior to 1st October is provided for the whole year
otherwise the same are depreciated at 50% of the normal rates. No depreciation is provided on
assets sold in the year of sale.
3.4 Premises, Furniture & Fixtures, Plant & Machinery and Capital Expenditure on Rental
premises are depreciated on Written down Value method at the rates considered appropriate by
the Management as under:
Description of Asset Rate of depreciation
Fire Extinguisher, Cheque Encoding Machine, Strong Room 25 %
Plant & Machinery 15 %
Vehicles 25 %
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Lease Lines, ISDN, ATM Video Capture System, Inverter & Batteries,
H.O. Building Management System 40 %
All other assets 10 %
4. Impairment of Assets
4.1 Fixed Assets are reviewed at each balance sheet date to ascertain whether there are any
indications that the carrying amount of any asset exceeds its realisable value.
5. Revenue recognition:
5.1 Income is accounted on accrual basis as and when it is earned except for:
(a) The income on Non-Performing Assets is recognized on realisation, as per Reserve Bank of
India directives.
(b) The commission on Letters of Credit / Guarantees and Dividends received from shares of co-
operative institutions are accounted on receipt basis.
(c) The interest on overdue / matured Fixed Deposits is accounted from September 1, 2008 at the
rate applicable to Savings Bank Accounts as per RBI guidelines.
6. Employee Benefits:
Defined Contribution Scheme:
The payment of Provident Fund is made to the Commissioner for Provident Fund at rates
prescribed in the Employees Provident Fund and Misc. Provisions Act, 1952 and is accounted for
on accrual basis.
Defined Benefit Scheme:
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The bank has taken Employees’ Group Gratuity Policy from Life Insurance Corporation of India
(LIC) and LIC is maintaining gratuity fund under a trust deed for gratuity payments to
employees. The premium / contribution paid to LIC under the said policy is debited to Profit &
Loss Account.
The bank has taken Employees’ Group Leave Encashment policy from Life Insurance
Corporation of India (LIC) during the year under review to meet leave encashment liability. The
premium paid to LIC under the said policy is debited to Profit & Loss Account.
7. Lease Payment:
Operating lease payments are recognized as an expense in the Profit & Loss Account on accrual
basis for the financial year. In the opinion of the Bank, the leave and licence agreements entered
into by the Bank for use of premises for its banking business are cancellable.
8. Income Taxes:
Tax expense comprises of current tax and deferred tax. Current Income Tax is measured on the
basis of estimated taxable income for the year in accordance with the provisions of Income Tax
Act, 1961, and rules framed thereunder. Deferred tax for timing differences between the book
and taxable profits for the year is accounted for using the current tax rates and law as on the
Balance Sheet date.
9. Earnings per share:
Basic earnings per share are calculated by dividing the net profit for the period after tax (before
appropriation) by weighted average number of equity shares outstanding during the period.
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10. Segment Reporting:
The Bank has identified two Business Segments viz. Treasury Operations and Other Banking
Operations taking into account the nature of products and services, the different risks and returns
and the guidelines issued by RBI. Treasury Operations includes all investment portfolio and
profit / loss on sale of investments. The expenses of this segment consist of interest expenses on
funds borrowed from internal and external sources and depreciation / amortisation of premium
on investments in Held to Maturity category. Other Banking Operations include all other
operations not covered under ‘Treasury Operations’.
B Disclosures as required by the Accounting Standards (AS)
11. Effects to Cost of Acquisition of Merged Banks: (AS 14)
During the FY.2010-11, the Bank had acquired The Ichalkaranji Mahila Sahakari Bank Ltd,
Ichalkaranji. In accordance with the merger order passed by the Office of the Commissioner for
Co-operation and Registrar of Co-operative Societies, Maharashtra State, Pune 411 001 dated
October 27, 2010 and ‘No Objection Certificate’ issued by the RBI, the effects to Amortisation
Reserve for the F.Y.2012- 13 are as under:
Particulars Ichalkaranji Mahila Sahakari Bank Ltd.
Amortisation Reserve as on 01/04/2012 3,20,00,000
Amortisation for F.Y.2012-13 1,60,00,000
Amortisation Reserve as on 31/03/2013 4,80,00,000
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The Memorandum working of adjustment to Cost of Acquisition as directed by the
Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra State,
Pune 411 001 in their order dated October 27, 2010 has been kept by the Bank duly approved by
the Board.
12. Employee Benefits: (AS 15)
The Bank has contributed ` 1,92,16,383/- (Previous year `1,69,73,439/-) towards Provident Fund.
The Bank has paid ``3,49,33,433/- towards Group Leave Encashment policy of LIC.
13. Related party Disclosures: (AS 18)
The Bank is a co-operative society under the Maharashtra State Co-operative Societies Act, 1960
and there are no Related Parties requiring a disclosure under the Accounting Standard – 18,
issued by the ICAI, other than Key Management Personnel, viz. Mr. Sadanand K. Nayak, the
Chief Executive Officer (CEO) of the Bank for FY.2012-13. However in terms of RBI circular
dated March 29, 2003, the CEO being a single party coming under the category, no further
details therein need to be disclosed.
14. Lease: (AS 19)
Operating lease payments are recognized as an expense in the Profit & Loss Account on accrual
basis for the financial year. In the opinion of the Bank, the leave and licence agreements entered
into by the Bank for use of premises for its banking business are cancellable. However,
disclosures required under the accounting standard are as under:
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Minimum Lease Payments: (Rupees in Lakhs)
- Not later than one year 139.57
- Later than one year but not later than five years 216.55
- Later than five years ` 3.89
Total minimum lease payments recognised in the Profit & Loss Account 145.06
15. Intangible Fixed Assets: (AS 26)
The Bank has identified intangible assets representing Computer Software and shown separately
in the Fixed Assets Schedule under fixed asset block “Intangible Assets” giving details relating
to Gross Block & Amortisation as prescribed by Accounting Standard – 26 on Intangible assets
issued by ICAI. Computer software is amortised @33.33% on straight line method as per the
directives of RBI.
16. Impairment of Assets: (AS 28)
There is no material impairment of any of assets in the opinion of the Bank and as such no
provision under Accounting Standard – 28 issued by ICAI is required.
17. Contingent Liabilities:
All letters of credit / guarantees are sanctioned to customers with approved credit limits in place.
The liability thereon is dependent on terms of contractual obligations, devolvement, raising
50 | P a g e
demand by concerned parties and the amount being called up. These amounts are collateralized
by margins, counter-guarantees and secured charges.
D. Notes to Accounts:
18. Investments:
During the year, Bank has not shifted any securities from Available for Sale category to Held to
Maturity category and also from Held to Maturity category to Available for Sale category.
During the year, Bank has not sold any securities held under AFS category.
19. Cash and Bank Balances:
Fixed Deposits with other Banks include deposits aggregating to ` 7,97,00,000/- (Previous year `
5,31,03,585/-) lodged as margin money to secure issuance of Letters of Credit / Guarantees in
respect of correspondent business.
20. Capital commitments:
At March 31, 2013, estimated amount of contracts remaining to be executed on capital accounts
amount to ` 5,51,250/- (Previous year ` 1,37,61,014/-).
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LEARNING INFORMATION
LOAN AND ADVANCES:
1. HOUSING LOAN:Under this scheme the Parsik bank provides loans or financing for the purchasing of flat or construction of house.
Purpose Purchase flat or Construction of House Rate of interest @ 11.00% p.a. upto Rs 25 lakhs for 5 years. @ 11.50% p.a. upto Rs 25 lakhs for 5yr-15yr. @ 11.50% p.a. above Rs 25 lakhs to 50 lakhs for 5
years @ 12.00% p.a. above Rs 25 lakhs to 50 lakhs for 5yr
to 15yr. Eligibility Salaried / Businessman / Self Employed Security Registered Mortgage of Flat to be Purchased / House
to be constructed Repayment Maximum Upto 15 years. Loan Amount Maximum upto 50 Lacs
E. M. I. per Rs. 1 Lakh
Rate of Interest 11.00% 11.50% 12.00% 5 years 2174 2199 2224 10 years - 1406 1435 15 years - 1168 1200
Eligibility:
Domicile of Mumbai City who wants to purchase/ construct the building or house within the district.
Employee of Government/ self governed, semi government, leading banks, urban cooperative
bank/court, financial institution, education institutes etc.
Business man who fills income tax return for last 3 years.
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Normally the age limit for applicant is 50 years but it can be extent up to 55 years in certain special
cases.
Documents required from applicant:
Loan application form.
Photo of applicant and co applicant.
Copy of document of plot which is to be purchased or constructed.
Construction approval from office in the case of construction.
The cost estimation and approved map of building going to be constructed.
Salary statement in case of salaried applicant and income tax return of last 3 years in case of non
salaried applicant.
Domicile certificate of applicant.
Income statement and identity card of two gaunter etc.
Execution of documents after sanction of loans:
Promissory note.
Loan contract.
Grantee deed of two grunters.
Mortgage letter of fixed assets
Advance cheque
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Acknowledgment according to selected interest rate.
Prescribed document from bank advocate.
Other related documents.
2. HOUSING REPAIR AND RENOVATION:
Under this scheme of loan bank provides finance for the renovation and repairs of house
or flat. It is the special scheme provide to the peoples for renovation of their houses.
Purpose Repairs and Renovation House / Flat.
Rate of interest Upto Rs 25 lacs @ 15.00% p.a.
Above Rs 25 lacs to below Rs 50 lacs @ 14.50% p.a.
Rs 50 Lacs and Above @ 14.25% p.a.
Eligibility Individual
Loan Amount Above Rs. 2 lacs
Security Movable / Immovable Property
Repayment Maximum Upto 5 Years.
3. CAR / VEHICLE LOAN:Under this scheme of loan bank provides loans for the purchase of vehicle for
commercial use.
NEW PERSONAL VEHICLE
Rate of Interest @ 12.50% p.a.
Security Vehicle and / or Salary
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Repayment Maximum 5 years
NEW VEHICLE (Commercial Use)
Rate of Interest @ 12.50% p.a.
Loan Amount 80% of Invoice Value +
Registration Charges + Insurance
NEW POCLAIN MACHINARY @13.50% P.A
OLD VEHICLE:
Loan Amount in case of old vehicle
The loan amount provides by the bank in case of loan vehicle 50% of agreement value or
valuation whichever is less.
Loan Amount
In case of Old Vehicle upto
5 years
50% of Agreement value
or valuation of Vehicle, whichever is
less.
Rate of Interest Upto Rs 2 lakh @ 14.50 % p.a.
Above Rs 2 lakh @ 15.00% p.a.
Security Vehicle and / or Salary
Repayment Maximum 5 years
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4. ARTICLE LOAN
` Article loan is the scheme provided by the bank for its customers for purchase of
furniture and fixtures, electronic and consumable appliances.
Purpose Purchase of Furniture & Fixtures,
Electronic / Consumable Appliances etc.
Rate of
interest
@15 % p.a.
Eligibility Individual
Loan Amount Maximum upto Rs. 5 lacs.
Margin 30% *
Security Article / Furniture to be purchased & Salary
Repayment Upto 5 years.
5. GROUP LOAN
In certain cases where the employer undertakes to deduct the loan installment under
sec 49 of Maharashtra State Co-op. Act, 1960 and remit the same towards the repayment
of loan or undertakes to remit the monthly salary of employees directly to the Bank till
entire loan is repaid and intimation to that effect is given by Bank.
In such cases, Group Loan may be considered, provided Minimum number of
Employees applying at a time in a group is 10.
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Purpose For Purchase of Consumer durable goods
( with or without security of consumer durable goods )
And / Or For repayment of debts
And / Or For House repairing
And / Or For any other purpose
Rate of Interest @14.00% p.a.
Eligibility Minimum 10 Employees of a single Organization
Loan Amount Maximum upto Rs. 3 lacs.
Repayment 5 to 7 years.
6. MICRO, SMALL & MEDIUM ENTERPRISES LOANS (Against Mortgage)Purpose : Business Expansion
Purchasing Machinery & Raw Material
Setting New Project
Rate of Interest
LOAN AMOUNT INTEREST
Upto Rs 50 Lacs 14.00%
ABOVE Rs 50 Lacs upto 3 crores 13.50%
ABOVE Rs 3 crore 12.75%
Eligibility : Individual / Firm / Partnership Firm Company,Etc.
Loan Amount : As per requirement
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Margin : 30%*
Securiy : Immovable Property / Movable Property
7. TERM / CASH CREDIT LOAN FOR BUILDERS & CONTRACTORS
This is the loan scheme which is provided to the builders and contractor to the
completion of their projects. This also includes the loans to the contractors which
are doing government project as well as private projects.
Purpose Business Expansion
Purchasing Construction Equipments / Machinery / Raw Material
New Construction Project
Eligibility Individual / Firm / Partnership Firm / Company etc
Loan Amount As per requirement
Rate of Interest 16%
Margin 30%*
Repayment For Term Loan - Maximum 7 years.
For Cash Credit Loan -Maximum period upto 12 months on
renewable basis.
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Security Movable / Immovable Property / Machinery / Equipments
8. T.U.F. (Technology Up gradation Fund) SCHEME:
Loan For Textile Business
The Indian Textile Industry occupies a unique position in the Indian Economy, in terms of
its contribution to industrial production, employment & exports. Given the significance of
this industry to the overall health of the Indian Economy, its employment potential & the
huge historical backlog of technology up gradation, particularly in the context of the
liberalization of the national industrial & trade policy & globalization of textile trade, it is
essential for the textile industry to have access to timely & adequate capital at
internationally comparable rates of interest in order to upgrade its technology level. Bank
has been extending financial assistance by providing concessional Interest rate for purchase
of machinery for textile business.
Eligibility Individuals / Partnership Firms / Companies, Etc.
Margin Minimum upto 30% of machinery Invoice / Quotation
Security Movable & Immovable Properties
Repaymen
t
Maximum period upto 84 months
LOAN AMOUNT INTEREST
A) Machinery Loan Under TUF Scheme
UPTO Rs 25 Lacs 14.00%
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ABOVE Rs 25 Lacs upto Rs 50 Lacs 13.25%
ABOVE Rs 50 Lacs 13.00%
B) Land & Building and New Plant &
Machinery
UPTO Rs 25 Lacs 14.00%
ABOVE Rs 25 Lacs upto Rs 50 Lacs 13.50%
ABOVE Rs 50 Lacs 13.25%
C) Land & Building and Old Plant &
Machinery
UPTO Rs 25 Lacs 14.50%
ABOVE Rs 25 Lacs upto Rs 50 Lacs 13.75%
ABOVE Rs 50 Lacs 13.50%
9. CASH CREDIT FACILITY:
This kind of fund based working capital facility is provided to traders/manufacturers & the like.
Bank has focus for extending cash credit facility to small & medium size enterprises.
Purpose :Working Capital requirements / Additional stock purchase / Repayment
of trade creditors
Rate of Interest
LOAN AMOUNT INTEREST
Below Rs 50 Lacs 13.00%
Rs 50 Lacs To Rs 2 Crore 12.75%
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ABOVE Rs 2 Crore 12.25%
Eligibility Small traders / Manufacturers / Partnership firms /
companies
Margin Minimum 30% of net inventory *
Security Closing Stock, Debtors, Movable / Immovable
Properties
Repayment Maximum period upto 12 months on renewable
basis
10. EDUCATION LOAN:
To brighten the future of bright & committed students by extending financial assistance to pursue
higher professional / technical courses studies in India & Abroad through Educational Universities /
Institutes / Organizations of good reputation & recognition.
Purpose Higher Education.
Rate of
Interest
Upto Rs. 10 Lacs @ 11% p.a.
Above Rs. 10 Lacs & Upto Rs. 20 Lacs @12% p.a
Loan Amount Upto Rs. 10 Lacs for studies in India.
Upto Rs. 20 Lacs for studies in Abroad.
Security Tangible Collateral security owned by Parents or Guarantor. 'Whole Life'
Insurance Policy on the life of the student, for loan amount.
Repayment Max. 120 months, including moratorium period.
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11. PROFESSIONAL LOAN:
Criteria Doctor / Advocate / Architect / CA & Engineer
Rate of Interest 13%
Eligibility Proprietorship Firm / Partnership Firm / Company
etc.
Loan Amount As per requirement
Margin 30%*
Security Movable / Immovable Property
12. GOLD LOAN:
GOLD LOAN UNDER BULLET REPAYMENT :
Customers can use the power of Gold for their Short Term Financial requirements by
availing Gold Loan with BULLET REPAYMENT option.
TERMS: The Maximum amount of loan Rs.1.00 lakh at any point of time. The loan shall be
repayable within 12 months from the date of disbursement.
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Eligibility Account holder of Gopinath Patil Parsik Janata Sahakari Bank Ltd.
Capable of producing Documents of Ownership of Gold Ornaments,
As per satisfaction of Bank.
Amount of Lian Maximum upto 80% of Valuation of Gold Ornaments given by Bank’s
Panel Valuer.
Repayment
Period
12 Months for Gold Loan Amount, upto Rs.1 Lac
60 Months for Gold Loan Amount above Rs.1 Lac.
Other Features Hassle free Documentation.
NO PROCESSING CHARGES except Valuer’s Fees.
13. LOAN AGAINST TERM DEPOSIT / NSC / KVP:
Loan / Advance against Term Deposit Receipt / Recurring Deposits of the Bank:
Margin: Bank shall sanction Loan / Advance not exceeding 90% of the amount including
accrued interest, against Term Deposit / Recurring Deposit.
Repayment Period:
Repayment period shall not extend beyond the maturity date of the deposit.
Rate of Interest :
a. Interest will be charged @ 2.00% p.a. above the rate offered on such deposits, for loan amount
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upto Rs. 5 (five lakh) to the Depositor &/or his close relative viz Father, Mother, Brother, Son,
Daughter & spouse.
b. Interest will be charged @ 1.00% p.a. above the rate offered on such deposits, for loan amount
above Rs. 5 (five lakh) to the Depositor &/or his close relative viz Father, Mother,
Brother, Son, Daughter & spouse.
c. Interest will be charged @ 3.00% p.a. above the rate offered on such deposits if the Term
Deposit / Recurring Deposit against which loan is being availed, belongs to a third party
who is not a close relatives of the Borrower (viz. Father, Mother, Brother, Son, Daughter &
spouse).
Loan / Advance against NSC / KVP:
Margin: Not less than 30% of face value
Period: Period of repayment shall not extend beyond the maturity date of the NSC / KVP.
Rate of Interest :
Up to Rs. 25 Lacs 15.00% p.a.
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Above Rs. 25 lacs to below Rs. 50 lacs 14.50% p.a.
Last 10 Years Bank's Progress (Rs in Lacs)
Year Share
Capital
Deposits Loans Asset
Fund
Customer
Base
Net
Profits
Dividend
2003-
04
959.33 47979.21 18054.27 6475.50 43762 1059.89 15%
2004-
05
1104.59 52042.79 21762.46 7925.91 46612 752.63 15%
2005-
06
1254.05 59317.84 26310.61 8897.01 48505 1028.65 15%
2006-
07
1457.17 70488.24 32340.40 10638.84 50871 468.28 15%
2007-
08
1845.67 88013.54 45535.87 11406.69 54424 1540.16 15%
2008-
09
2242.75 94341.95 55482.54 13336.83 58096 1743.26 15%
2009-
10
2534.71 116717.20 60059.64 15199.18 61240 1837.09 15%
2010- 3076.62 139803.30 72207.09 18214.10 65073 2072.32 15%
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11
2011-
12
3673.96 146049.03 86405.06 21209.72 68837 2130.91 15%
F inancial
N0. Particulars 31/03/2012 ( Rs. in lacs )
1 No. of Shareholders 68837
2 Working Capital 182276.23
3 Total Deposits 146049.03
4 Loans 86405.06
5 Investments 75462.85
6 Profit 2130.91
7 Net N.P.A 0.00%
8 CRAR 20.63%
9 Audit Class "A"
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PART B
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OBJECTIVES OF THE STUDY
The objective of research is as follows:
1. First objective is to find out various loan schemes provided by the bank.
2. To learn various aspects of loan provided by bank.
3. To know the problem faced by customers when obtaining the loan
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SCOPE OF THE STUDY:-
Each and every project study along with its certain objectives also has scope for future. And this
scope in future gives to new researches a new need to research a new project with a new scope.
Scope of the study not only consist one or two future business plan but sometime it also gives
idea about a new business which becomes much more profitable for the researches then the older
one. The scope of this research is as follows:
1. Research study could give an idea of network expansion for capturing more market and
customer with better services and lower cost without compromising with quality.
2. In future customer requirement could add with the product and services for getting the
edge over competitors.
3. Different parameters could be used for the purpose of new products with extra benefits
which are required by the customers.
4. Factors which are responsible for the performance of the bank can also be used for the
modification of the strategy and product for being more profitable.
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METHODOLOGY
TITLE OF STUDY: -
Title of study is “Loans and advances Management In Gopinath Patil Parsik Janata Sahakari
Bank Ltd”. The Gopinath Patil Parsik Janata Sahakari Bank Ltd. generally gives loan for
short and medium term requirement in both rural and urban sectors.
DURATION OF TRAINING:-
Duration of project is 60 days from 4th May 2011 to 3rd July 2011. Though the time available
for the study is too less but efforts to the fullest capacity have been put into this result for
efficient and effective analysis of the data.
FORMAT OF PROJECT REPORT:-
The report is exploratory and descriptive in nature. This report is going to describe various loans
provided by Jodhpur central cooperative bank hence it is a descriptive in nature but it suggests
some important points to improve the services of the bank so it is exploratory in nature also.
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SOURCE OF PRIMARY AND SECONDRY DATA
For the purpose of project data is very much required which works as a food for process which
will ultimately give output in the form of information. So before mentioning the source of data
for the project I would like to mention that what type of data I have collected for the purpose
of project and what it is exactly.
PRIMARY DATA
Primary data is basically the live data which I collected on field while talking with the
Employees. In some cases I got no response from their side and then on the basis of my previous
Experiences I filled those fields.
SOURCE
Main source for the primary data for the project was my face-to-face conversation which I got by
the employees or sometimes filled myself on the basis of discussion with the employees.
SECONDRY DATA
Secondary data is already published data. It is the data which is funded or collected by someone
else before and presently used by further research work. Secondary data for the base of the
project I collected from annual report of bank, bank pamphlets and internet etc.
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LIMITATIONS:-
1. The rate of interest may vary according to market environment.
2. These figures are according to publish in annual report and according to employees
of Gopinath Patil Parsik Janata Sahakari Bank Ltd.
3. The report is according to my perception only and can’t be taken as final decision.
4. This study only relates to one organization, so conclusions drawn may not be finding its
utility in all the other banks.
5. Even the employees of the bank hesitated to give the complete & accurate data.
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RECOMMENDATION AND SUGGESTIONS
1. More mass awareness campaigns should be organized in order to enhance market share of bank. So Bank
should concentrate on its advertisement itself.
2. Bank should refocus on its interest rate as responded by people. Periodic review of the interest rate should
be done.
3. There should be proper computerized system in the bank as it will reduce the time wastage of manual work
and will lead to the better performance of the bank.
4. Training of the employees should be there to meet the needs of the time.
5. Proper posting of the staff should be done.
6. Customer’s satisfaction must be the top priority of the bank.
7. Maximum practical exposure should be provided to the job trainees so that they may handle the various
enquiries of customer effectively.
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8. Communication gap within the bank and with the head-office should be reduced.
9. Infrastructure facilities should be provided to the branch of Cooperative Bank, as it is catering to the 5-6
nearby villages.
10. Banks is also advised to have proper internal control measures for monitoring its functions and
transactions.
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CONCLUSION
The study concludes that Cooperative Bank, which was established for mainly for the service of rural sector,
still is not on the line to its goal. It is lacking at various elements, particularly at the branch levels, which reveals
the edge of other public and private sector banks over the Cooperative bank, the lines at which the bank is
lacking behind. The lacks of commitment in these banks make people’s trust in the cooperative sector a
casualty.
Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to
challenge state and private sector banks. But there is shortage of staff in this bank and the traditional manual
banking which is affecting the business and customer services. People are still unaware of the services
provided by the Cooperative Banks due to lack of advertisement.
There is a need to analyze and pick up early warning signals. A change is needed today in the
cooperative banks which is built on confidence in human capital - the most important of all resources - in
commitment, creativity and innovation brought about by proactive management, membership and employees.
The ability to capture knowledge and wisdom gives cooperative banks their competitive advantage. A
prerequisite is that participants from all parts of a cooperative organization know and understand its purpose,
core values and visions.
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In this way, by keeping in mind the certain shortcomings, appropriate measures to overcome them should be
adopted. So that the real purpose of the Cooperative bank must be realized with a competitive advantage and
the gap between the customer perception of the Cooperative Bank and the other private and public sector
bank, can be reduced.
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