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Submitted To:

SUBMITED BY

PRASHANT VAGHASHIA

Roll No. 106

PRESENTATION ON

THE GENERAL BANKING FUNCTION OF

PROJECT GUIDE

Prof. MADHAVI MADAM

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INTRODUCTION TOBANKING SECTOR

Banking industry has acquired a key position in mobilizingresources for defence & for socio economic development of thecountry. It is said that Bank which are that need of & greatwealth of our country have got to be kept very sacred. Just

as water is for irrigation, good banks are for the countrysindustry & trade.

Todays banks cater to the needs of agriculturists, industrialist,traders, women, students & to all other sections of the society.

Thus they accelerate the economic growth of a country & steerthe wheel of the economy towards its goal ofSelf reliance inall fields. Hence today banking sector has become the lifelineof the economy.

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Types of Banks

Regional Rural Bank

Nationalize Bank

State Bank Group Co-operative Bank

Private Bank

Foreign Bank

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General Information of Co-Operative Banks

In 1904 the co-operative movement started in India with a viewto provide finance to the agriculturist at a low rate of interest.

The co-operative society has to take the place of the moneylenders & provide cheap loan to the farmers for productive

purposes.

Even though many types of co-operative societies have beenstarted particularly for the artisans & others, the most commonform of such societies deal in rural credits. And today co-operative banks have started verities of services with differenttechnologies.

Once the Mahatma Gandhi has remarked that there issweetness in co-operation; there is no one who weak or

strong among those who co-operate. Each is equal toother.

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PRINCIPLE & CHARACTERISTICS

VOLUNTARY ASSOCIATION

OPEN MEMBERSHIP

EQUAL VOTING RIGHTS

SERVICE MOTIVE

TYPES OF CO-OPERATIVE BANKS

State co-operative banks

Central co-operative banks

Urban co-operative banks

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ROLE OFCO-OPERATIVE BANKS

The main aim of the bankis to extend credit facilities tothe small traders, workers & other middle class people.

This bank derive their funds for working partly through

share capital contributed by the members & partly through

deposits collected from members, general public & renderusual banking services

The liability of members is normally unlimited. This

enables the society to raise funds from outside agencies &

also encourages member to take keen interest in workingof the society.

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THE CO-OPERATIVE BANK OF RAJKOT LTD.

Ramnikbhai Dhami, Chief Promoter and founder of this Bank,co-operative leader and advocate by profession laid a strongfoundation of bank on 24.11.1980 and today The Co-operativeBank of Rajkot Ltd. (popularly known as RAJ BANK) hasvarious special characteristics added to its success portfolio.

Forged ahead successfully owing to its transparentadministration and management group as also due to theefficiency and sharpness of the banks employees.

The bank was started in a small premise and converted into alarge and most popular bank having its branch network in the

entire Rajkot District, Junagadh District and also branches inSurendranagar and Ahmedabad city. In years to come the bankwill expand its business in the entire Gujarat State.

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CORPORATE MISSION

Survive to the common man.

Enhance the value of share holders.

Emerge as a symbol of public trust & confidence by creating apositive image.

Maintain excellence in operation & management by bringing intransparency & integrity.

Develop & motivate human resource there by cultivatingprofessional culture in the banking operation.

Ensure speedy & satisfactory customer services through continuous

product innovation & aggressive marketing strategies.

And the last but not least that is.

To assist the weaker section of the society Is the primary motto ofthe RAJ Bank.

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BANK DETAIL

Special Characteristics : ZERO NET NPA since 1990 and persistent efforts tomaintain the same. Strong Brand Equity, Largest Non Schedule Bank in Gujarat Respectable ranking and position in Gujarats Top Co-operative banks.

Fully Computerisation and automation. Successful and effective leadership. Profitability. Insurance of all types of advances. Inter personal banking relations. Sound Liquidity. Strict monitoring & strong internal control ATM in smaller towns. We are pioneer in introducing ATMsin the entire Saurashtra and Kutch region in the Co-operative

banking sector.

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DETAIL OF RAJ BANK YEAR 2010-11

RS IN LACS

PARTICULAR PROJECTION ACTUCAL CHANGE

OWNFUNDS 15500 16853.07 + 8.73 %

DEPOSITS 84000 87172.05 +3.78

ADVANCES 50400 51420.42 +2.02%

TOTAL BUSINESS 134400 138592.47 +3.12%

INVESTMENT 41400 45711.69 +10.41%

WORKING FUNDS 102000 104975.99 +2.92%

GROSS PROFIT 2400 2528.46 +5.35%

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INCREASE IN PROFIT

Amt in lacs.

0

200

400

600

800

1000

1200

1400

2006 2007 2008 2009 2010 2011

PROFIT

PROFIT

2006 280.67

2007 324.77

2008 715.75

2009 848.19

2010 1003.65

2011 1322.67

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DEPOSITS & ADVANCES AT GONDAL BRANCH

YEAR DEPOSITS ADVANCES CURRENT/DEPOSITRATIO

2008-09 2428.02 1778.50 73.25%

2009-10 2448.35 3935.46 160.74%

2010-11 2965.71 3558.62 119.99 %

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INCREASE INTEREST INCOME

ANDEXPENSES2011 2010 Change

Interest income 8348.65 6957.89 19.99%

Non interest

income

938.15 869.49 7.9%

Interest Expenses 4627 4181 10.66%

Total income 9286 7827 18.65%

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DIFFERENT SERVICES OF A RAJ BANK

CURRENT DEPOSIT A current account is an account which is generally opened

by businessmen, companies, institutes, corporations,industrialists etc.

Who have huge working capital in their hand. Who are interested in keeping money safe.

Who transect with their banker daily.

Who received and make payment usually through

cheques. Who utilize the agency services of the banker frequently

Who are engaged in large scale business activity, socialservices and government activities.

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SAVING DEPOSIT

Features of the saving deposit

Restriction on with drawl of amount. Restriction on deposit of amount.

Payment of interest.

Extra features to the saving account holder of the Raj Bank.

Attractive Rate of interest. Easy procedure for account opening.

24 hours banking facility through their ATM centers.

Personalized services & special facility by the way of telephonicinquiry.

Regular bank statement is provided at home through post or E-mail.

Attractive computerized passbook.

No charges for saving account holder.

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TERM DEPOSIT

This account attracts those customers who have moneyinvest for a longer period but do not want to take much of

risk. Such person prefers to deposit with commercial

banks for a specified period at a specified rate of interest.

At present in RAJ BANK the condition of the termdeposits is as under.

Monthly term deposit amt.

49.38 crores

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INTEREST RATES ON DEPOSITS

Sr. No. Period Rate of Interest

1 15 to 45 days 4.50 %

2 46 to 90 days 5.00 %

3 91 to 121 days 5.50 %

4

121 days to 179 days

6.00 %

5 180 days to 1 year 6.50 %

6 1 Year to 2 Years 7.00 %

7 2 Years to 3 Years 7.50 %

8 3 Years to 5 Years 8.00 %

9 5 Years & More 9.00 %

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SWOT ANALYSIS:

STRENGTH:

This bank is a very reputed

in Rajkot & its District.

Professional management

co-operative team spirit

Fully Computerized

Profitable & Sound Liquidity

Branches in all most

developed part of Rajkot

WEAKNESS:

Modern management

concept and sometimes

communication gap

Not performing marketingactivities

Not providing ATM facilities

in the all developed places.

Lower volume of clearancedue to higher rate of interest

may affect the expansion of

the organization.

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CONTINUE.

OPPORTUNITIES: Bank can open branches at

state level in near future.

Bank can introduce new

service like NRI loan, ATMetc.

Bank can perform marketingactivity by TV, Media etc.

THREATS: Changes in government

policies and in rules andregulation

There must be deep study ofvalidity of loan repaymentwhile giving new loan.

The financial liability of theborrower should be checked

on more scientific andstatistical base and notdepending on relationship

banking.

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LOANS:

TERM LOAN:

Term loans are generally repayable in more than a year but less

than 10 years. These loans are offered by all Indian financial

institutions. Term loans are generally secured through a first

mortgage or by way of deposit of title deeds of immovable

properties. Any business operator for the purpose of purchase necessary

building, build a building or purchase new machinery.

For the purpose of this loan is to invest in long term capital.

Bank grants these loan 2 lacs to 25 lacs.

Rate of interest charged on this loan is 10% to 13%.

As a security a person has to mortgage any fixed assets whose

reliable market value is enough in proportion of loan.

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MORTGAGE LOAN

Any kind or traders, businessmen or an industrialist can getmortgage loan. Bank grants mortgage loan for the any purpose.

Bank grants this type of loan Rs. 50,000 to maximum 10 lacs.

Bank charges rate of interest on this loan is 12.5% to 13.5%.

A person who is gating mortgage loan he has to mortgage land,building or any other fixed assets.

Document of properties have to be given to the bank by a

person.

A person has to give reference of two people who are depositorin the RAJ Bank as guarantors.

Loan repayment period is 3 years to 7 years.

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SECURED OVERDRAFT

Any kind of traders, businessmen, personally, professional &

industrialist can get secured over draft.

Bank grants secured overdraft for the purpose of fulfillment or

short term working capital need in the business. Bank grants this type of over draft Rs. 1 lacs to maximum 100

lacs. Bank charged interest on this over draft is 10.75% to 14%.

As a security a person has to mortgage any fixed assets whose

reliable market value is enough in proportion of over draft. A person has to give reference of two people who are depositor

in the RAJ Bank as guarantors.

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PERSONAL LOAN

Any localize person can get this loan. Bank grants personal loan for the purpose of purchase fridge,

T. V., washing machine or any other thing which can be useful

for home management.

Bank grants this type of loan Rs. 10,000 to maximum 50,000 or70% to 90% of the quotation price of the product.

Bank charges rate of interest on this loan is 11%.

Applicants need to make such documents of purchase products

of purchased product in favor of the bank as a security. A person has to give reference of two people who are depositor

in the RAJ Bank as guarantors.

Loan repayment period is 3 years to 5 years.

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CLEAN OVER DRAFT

Any kind of traders, businessmen, personally, professional &industrialist can get clean over draft.

Bank grants secured overdraft for the purpose of fulfillment or

short term working capital need in the business.

Bank grants this type of over draft Rs.50, 000. Bank charged interest on this over draft is 12%.

As a security a person has to mortgage any fixed assets whose

reliable market value is enough in proportion of over draft.

A person has to give reference of two people who are depositorin the RAJ Bank as guarantors.

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VEHICLE LOAN

Any kind of traders, businessmen, personally, professional or

any person can get this type of loan. Bank grants personal loan for the purpose of purchase old or

new vehicle for personal or business use.

Bank grants this type of loan Rs. 15,000 to maximum10,00,000 or 70% to 90% of the quotation price of the product.

Bank charges rate of interest on this loan is 11%.

Applicants need to make such documents of purchased vehiclein favor of the bank & in RTO applicant need to register as ahire purchased vehicle as a security.

A person has to give reference of two people who are depositorin the RAJ Bank as guarantors.

Loan repayment period is 3 years to 7 years.

Quotation of vehicle, proof of guarantors income (one timeonly), RTO certificate & other documents are required with theapplication form.

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HOME LOAN Any localize person can get this loan.

Bank grants personal loan for the purpose of purchase or to buildhome.

Bank grants this type of loan Rs. 15,000 to maximum 15,00,000 or70% to 90% of the price of the home.

Bank charges rate of interest on this loan is 11.50%. Applicants need to make such documents of purchased home in

favour of the bank & bank takes all the documents as a security.

A person has to give reference of two people who are depositor in theRAJ Bank as guarantors.

Loan repayment period is 3 years to 15 years. Application form, other documents specified in the application form

and if an applicant want to mortgage any assets than he need to givewhole file of that assets and title report through advocate approved

by bank only proof of guarantors income (one time only).

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CASH CREDIT

A person can get loan up to 10 lacs but in special cases

bank allows him to grants above 10 lacs and person has to

repay the loan installment which should have already been

decided. In cash credit type loan, person can withdraw

money if there is no money in his account.

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Demand Draft :

Procedure:

1. Paying money in cash

2. Fill the form of the draft with payee name and draft

money and commission on that3. Form given to dd department

4. Issuing the draft of the other bank or branch of thebank.

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OTHER SERVICE

LOCKER FACILITY

CASH CARD FACILITY

GENERAL & LIFE INSURANCE COVERAGE

ATM FACILITY PAN CARD SERVICES

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Findings The credibility of co-operative bank of rajkot ltd. is good

in comparison to its competitors.

There are less number of ATMs as compared to other

banks.

As so much rush in loan department auditing of that

department not done regularly ,so bank must follow some

procedure of auditing to check the loan activity.

Lack of training to the employee.

They have very good infrastructural facility.

Regular timing and good experience of loan case.

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Recommendations

A short advertising campaign in has produced good results

in a short span of times, so to gain long term benefits is

very necessary for co-operative bank of rajkot ltd. to carry

on this campaign with more intensity.

Number of Branches should be increased covering a wider

area in gujarat state.

A wide publicity to be given about the organization and

its products through various means of communications tokeep growth moments

Try to introduce marketing activity.

Increase hiring department activity.

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Conclusion:

As a part of my study, I have taken my training inShree Co-Operative Bank of Rajkot Ltd (RajBank).During my summer training I have observed somany things which are as below.

Fully organized work is being done over there.

All the employees are very much Co-Operative andFriendly.

All the employees are well mannered and disciplined. Really, I have got very good experience during my

summer project in Shree Co-Operative Bank of RajkotLtd.