A PROJECT REPORT

ON

TO ANALYSIS OF FINANCIAL CONDITION OF CHITTORGARH CENTRAL COOPERATIVE BANK (CCB)

SUBMITTED BY

- SHAILESH KANSAL

ACKNOWLEDGEMENT

The successful completion of this report would not have been possible without the cooperation and support of our friends & colleagues who has helped us in preparing this report.

I would like to thank respected Mr. Mohan Singh Sahay (M.D) of Chittorgarh Central Cooperative Bank for giving me this opportunity to undertake this project work. I would like to thanks to Mr. Dinesh Khatri,(Management section officer) who dedicated his precious time and his input in defining, the project and his valuable contribution to the design of the methodological framework, the management of the project, assistance in review of the reports, and the organization of a series of dissemination meeting.

I would also like to extend my thanks to respected ALL EMPLOYEES and other employees Hamza Hussain, of the bank for giving us valuable guidance.

Lastly a vote of thanks must be given to all the people who are directly or indirectly involved with the project work.

Thanks MBA

PREFACE
Banks are regarded as the blood of the nations economy without them one cannot imagine economy moving. Therefore banks should be operated very efficiently, cooperative banks although a small part of whole banking system in India, but they are very important not only from economical point of view but also from social point of view as it is more concerned about common peoples welfare and development. Advance is heart and recovery is oxygen for the bank and for the bank to survive it is necessary to give advances and recover the amount at the appropriate time. Through this project I have tried to cover the various aspects like credit appraisal, NPA management, recovery management, etc. E.g. this project covers all the areas right form the beginning like inquiry till the loan has been paid up. Though Loaning is, a very vast topic, I have tried to incorporate to the best of my capacity from all possible aspects in this project. I do hope that institution will appreciate this project.

CCB- Central cooperative bank

INDEX CHAPTER 1 Introduction of Banking 1.1 Early History of Banking 1.2 Status Wise Bifurcation of Bank 1.3 Types of Bank CHAPTER 2 - Profile of the Bank
1.1

2.1CCB - CENTRAL COOPERATIVE

BANK

2.2

CCB at a Glance

CHAPTER 3 Profile of the NABARD 3.1 Organization structure of NABARD 3.2 Introduction of NABARD CHAPTER 4 Analyses Of financial condition CHAPTER 5 Schemes and Interest rate Loan and Fixed Deposit CHAPTER 6 CCB Management 6.1 Classification of Assets 6.2 Findings of CCB 6.3 CCB Reduction Technique CHAPTER 7 Research Methodology CHAPTER 8 Data Analysis and Interpretation REFERENCES AND BIBLIOGRAPHY

CCB- Central cooperative bank

CCB- Central cooperative bank

EARLY HISTORY OF BANKING

As early as 2000 B.C., the Babylonians has developed a banking system. There is evidence to show the temples of Babylon were used as banks. After a period of time, there was a spread of irreligion, which soon destroyed the public sense of security in depositing money and valuable in temples. The priests were longer acting as financial 45 agents. The Romans did minute regulations, as to conduct private banking and to create confidence in it. Loan banks were also common in Rome. From these the poor citizens received loans without paying interest, against security of land for 3 or 4 years.

During the early periods, although private individuals mostly did the banking business, many countries established public banks either for the purpose of facilitating commerce or to serve the government.

However, upon the revival of civilization, growing necessity forced the issued in the middle of the 12th century and banks were established at Venice and Genoa. The Bank of Venice established in 1157 is supposed to be the most ancient bank. Originally, it was not a bank in the modern sense, during simply an office for the transfer of the public debt.

Again the origin of modern banking may be traced to the money dealers in Florence, who received money on deposit, and were lenders of money in the 14th century and also in 1349, the business of banking was carried on by drapers of Barcelona.

In India, as early as the Vedic Period, banking, in most crude from existed. The books of Manu contain references regarding deposits, pledges, policy of loans, and rate of interest. True, the banking in those days largely mint money lending and they did not know the complicated mechanism of modern banking.

This is true not only in the case of India but also of other countries. Although, the business of banking is as old as authentic history, banking institutions have since than changed in character and content very much. They have developed from a few simple

CCB- Central cooperative bank

operation involving the satisfaction of a few individual wants to the complicated mechanism of modern banking, involving the satisfaction of capital slowly seeking employment and thus providing the very life blood of commerce. THE ORIGIN OF WORD BANK The word Bank itself derived from the word bancus or banque that is a French. There were others of the opinion that the word Bank is originally derived from the German word back meaning joint for which was Italianised into banco.

STATUS WISE BIFURCATION OF BANKS Scheduled Banks. Non-Scheduled Banks.

Scheduled Banks In first schedule, Government of India notifies the Primary Banks, which are licensed and whose demand and time liability are not less than 50 crores in 1987. Government of India notifies the Primary banks, which are licensed and whose demand and time liability are not less than 100 crores can only qualify to be included in the second schedule since 1993. A bank becomes scheduled when it fulfils the followings: A grade rating from RBI Demand and Time Liability over 100 Crores Satisfy the RBI guidelines related to CRR and SLR As per the norms Priority Sector wise lending Benefits of Being a Scheduled co-operative are described below: RBI would provide Rediscounting facility at nominal rate RBI gives remittance facility at par The demerit of being a scheduled co-operative bank is that the bank will not get 0.5% subsidy from RBI.

CCB- Central cooperative bank

The conferment of scheduled status on the banks has certain advantages like refinance facility, directly industrial finance from Reserve Bank of India, avail of Reserve Bank of India Remittance facility scheme, accept deposits from local bodies, quasi-government organization, religious, and charitable institutions, guarantees and cheques issued by Banks are accepted by Government Departments. At the same time, it casts greater responsibility on the banks in the maintenance of books of accounts and submission of returns.

Non-Scheduled Bank The banks, which are not applicable as per the criteria of Scheduled Banks, are called as a Non-scheduled Banks. These are very small banks. TYPES OF BANKS Regional Rural Bank Nationalize Bank State Bank Group Co-operative Bank Private Bank Foreign Bank

RESERVE BANK OF INDIA The Hilton-young commission, appointed in 1926 has recommended the necessity of centrally empowered institution to have effective control over currency and financial transaction in the country. Accordingly, the Government had then passed Reserve Bank of India Act, 1934 and established the Reserve Bank of India with effect from 1st April 1935. The principal aim behind this was to organize proper control over the currency management in the interest of country benefits and to maintain financial stability. With this, the RBI mainly looks after the following important functions:

To keep effective control over creation of credits and currency supply To control the Banking transactions of Central and State Governments To act as Central administered Authority of all other Banks in the Country.

CCB- Central cooperative bank

To organize control over Foreign Currency Transaction To assist for improvement in financial aspects of the country

Nationalize Banks The Banking Company Act establishes it in July 1969 by nationalization of 14 major banks of India. The sent percent ownership of the bank is of government of India.

State Bank Group The State Bank of India was established under the State Bank of India Act, 1955, the subsidiary banks under the State Bank of India (subsidiary Banks) Act, 1959. The Reserve Bank of India owns the State Bank of India, to a large extent, and rest of the part is some private ownership in the share capital of State Bank of India. The State Bank of India owns the subsidiary Banks. Old Private Banks These banks are registered under Company Act, 1956. Basic difference between cooperative banks and private banks is its aim. Co-operative banks work for its member and private banks work for earn profit.

New Private Banks These banks lead the market of Indian banking business in very short period, because of its variety of services and approach to handle customer, also because of long working hours and speed of services. This is also registered under the Company Act, 1956.

Foreign Banks Foreign Bank means multi-countries bank. In case of India Foreign Banks are such Banks, which open its branch office in India and their head office is outside of India.

CCB- Central cooperative bank

Regional Rural Banks (RRB) Regional Rural Banks are added in Indian Banking since October 1975. The Government of India in terms of the provision of the Regional Rural Bank Act 1976 has established these banks. The distinctive feature of Regional Rural Bank is that through it is a separate body corporate with the Commercial Bank, which has sponsored the proposal to establish it. The Central Government, while establishing a Regional Rural Bank at the request of a Commercial Bank, shall specify the local limits within which it shall operate. The Regional Rural Bank may establish its branches or agencies at any place within the notified area.

Co-operative Banks State Co-operative Banks State Co-operative Bank means the principal Co-operative society in the state. The primary objective of which is the financing other co-operative societies in the state.

Central / District Co-operative Banks Central / District co-operative Bank means the principal co-operative society in a district, the primary objective of which is the financing of other co-operative in that particular district.

Primary / Urban Co-operative Banks The primary objective of principal business of which the transaction is of banking business and paid up share capital and reserve of which are not less than rupees 100,000 and bye-laws of which do not permit admission of any other co-operative society as a member.

CCB- Central cooperative bank

CCB- Central cooperative bank

CCB KENDARIY SAHAKARI BANK

CCB is a Co-Operative Bank in Chittorgarh district, India. Bank was established on 15, Jan, 1959 Bank has made tremendous & real progress under the leadership of former Chairman Late Shri Bhagirath Joshi. Bank is celebrating its 42th anniversary this year. During past years bank has played vital& leading role for the development of rural and tribal area. Bank has developed in manifolds with the time. Chittorgarh is a tribal district and CCB is playing a lead role in development of rural and farmers. Approximately 65 % members of this bank are SC/ST. CCB is providing many types of loans and charge different rate of interest on different types of loans. CCB is a Co-Operative bank not a commercial bank.

CCB- Central cooperative bank

CCB AT A GLANCE

Registration Number

214H

Membership (31.3.012) Total Member Loanee Member : 14268 (552) 7490(199)

Share Capital State Govt. Members : : 791.31 lakh 38.28 lakh

Total outstanding loan(31.3.012) On Member On head bank : : 4638.42 lakh 17757.91 lakh

Working capital

27245 lakh

Establishment Expenses

48.57 lakh

Loan Disbursement (2011-012)

4638.04 lakh

Recovery % (20011-012)

75.03 %

Outstanding Demand (30.1.012)

14470.31 lakh

NPA %31.3.08

47.02%

Profit & Loss Position

(31.1.012)

19023041.05 accumulated profit

CCB- Central cooperative bank

CCB- Central cooperative bank

Organization Structure of NABARD

Introduction Of NABARD
NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural

CCB- Central cooperative bank

development and secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is entrusted with:

1. Providing refinance to lending institutions in rural areas 2. Bringing about or promoting institutional development and 3. Evaluating, monitoring 4. and inspecting the client banks Besides this pivotal role, NABARD also: Acts as a coordinator in the operations of rural credit institutions Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development Acts as regulator for cooperative banks and RRBs.

Some of the milestones in NABARD's activities are: With its effective overseeing and monitoring of the implementation of the Government of India's programme to double the flow of credit to agriculture over a three-year period from 2004-2005, the total disbursement of credit reached Rs 1,25,309 during 2004-2005. Ground level credit flow to agriculture and allied activities reached Rs 1,57,480 crore in 2005-2006. Refinance disbursement to commercial banks, state cooperative banks, state cooperative agriculture and rural development banks, RRBs and other eligible financial institutions aggregated Rs 8,622.37 crore. As on 31 January 2007 through the Rural Infrastructure Development Fund (RIDF), Rs,59,795.35crore have been sanctioned for 2,31,702 projects covering irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, etc. Developing among hosts of other infrastructures,

CCB- Central cooperative bank

RIDF will create 20971 schools, 6239 primary health centres and provide drinking water supply in 7267 villages Watershed Development Fund , with cumulative sanctions of Rs.578.95 crore for 427 projects in 124 districts of 14 states, has created a Peoples Movement in rural India. Farmers now enjoy financial access and security through 582.50 lakh Kisan Credit Cards that have been issued through a vast rural banking network. District Rural Industries Project (DRIP) has generated employment for 23.34 lakh persons with 10.95 lakh units in 105 districts.

Genesis and Historical Background:

The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) set up by the RBI under the Chairmanship of

Shri B Sivaraman in its report submitted to Governor, Reserve Bank of India on November 28, 1979 recommended the establishment of NABARD. The Parliament through the Act 61 of 81, approved its setting up. The Committee after reviewing the arrangements came to the conclusion that a new arrangement would be necessary at the national level for achieving the desired focus and thrust towards integration of credit activities in the context of the strategy for Integrated Rural Development. Against the backdrop of the massive credit needs of rural development and the need to uplift the weaker sections in the rural areas within a given time horizon the arrangement called for a separate institutional set-up. Similarly. The Reserve Bank had onerous responsibilities to discharge in respect of its many basic functions of central banking in monetary and credit regulations and was not therefore in a position to devote undivided attention to the operational details of the emerging complex credit problems. This paved the way for the establishment of NABARD. CRAFICARD also found it prudent to integrate short term, medium term and long-term credit structure for the agriculture sector by establishing a new bank. NABARD is the result of this recommendation. It was set up with an initial CCB- Central cooperative bank

capital of Rs 100 crore, which was enhanced to Rs 2,000 crore, fully subscribed by the Government of India and the RBI.

Mission:
Promoting sustainable and equitable agriculture and rural development through effective credit support, related services, institution building and other innovative initiatives.

In pursuing this mission, NABARD focuses its activities on: Credit functions, involving preparation of potential-linked credit plans annually for all districts of the country for identification of credit potential, monitoring the flow of ground level rural credit, issuing policy and operational guidelines to rural financing institutions and providing credit facilities to eligible institutions under various programmes Development functions, concerning reinforcement of the credit functions and making credit more productive Supervisory functions, ensuring the proper functioning of cooperative banks and regional rural banks

Objectives:
NABARD was established in terms of the Preamble to the Act, "for providing credit for the promotion of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting IRDP and securing prosperity of rural areas and for matters connected therewith in incidental thereto".

The main objectives of the NABARD as stated in the statement of objectives while placing the bill before the Lok Sabha were categorized as under : The National Bank will be an apex organisation in respect of all matters relating to policy, planning operational aspects in the field of credit for promotion of

CCB- Central cooperative bank

Agriculture, Small Scale Industries, Cottage and Village Industries, Handicrafts and other rural crafts and other allied economic activities in rural areas. The Bank will serve as a refinancing institution for institutional credit such as longterm, short-term for the promotion of activities in the rural areas. The Bank will also provide direct lending to any institution as may approved by the Central Government. The Bank will have organic links with the Reserve Bank and maintain a close link with in.

Major Activities:
Preparing of Potential Linked Credit Plans for identification of exploitable potentials under agriculture and other activities available for development through bank credit. Refinancing banks for extending loans for investment and production purpose in rural areas. Refinancing banks for extending loans for investment and production purpose in rural areas. Supporting credit innovations of Non Government Organizations (NGOs) and other non-formal agencies. Extending formal banking services to the unreached rural poor by evolving a supplementary credit delivery strategy in a cost effective manner by promoting Self Help Groups (SHGs) Promoting participatory watershed development for enhancing productivity and profitability of rainfed agriculture in a sustainable manner. On-site inspection of cooperative banks and Regional Rural Banks (RRBs) and iffsite surveillance over health of cooperatives and RRBs.

CCB- Central cooperative bank

CCB- Central cooperative bank

3.4 Accounting for bank accounts

Bank statements are accounting records produced by banks under the various accounting standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and Expenses. This means you credit a credit account to increase its balance, and you debit a debit account to increase its balance.[7]This also means you debit your savings account every time you deposit money into it (and the account is normally in deficit), while you credit your credit card account every time you spend money from it (and the account is normally in credit).However, if you read your bank statement, it will say the oppositethat you credit your account when you deposit money, and you debit it when you withdraw funds. If you have cash in your account, you have a positive (or credit) balance; if you are overdrawn, you have a negative (or deficit) balance. The reason for this is that the bank, and not you, has produced the bank statement. Your savings might be your assets, but the bank's liability, so they are credit accounts (which should have a positive balance). Conversely, your loans are your liabilities but the bank's assets, so they are debit accounts (which should have a also have a positive balance).Where bank transactions, balances, credits and debits are discussed below, they are done so from the viewpoint of the account holderwhich is traditionally what most people are used to seeing.

3.5 Economic functions

1. Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash.

2. Netting and settlement of payments banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economies on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them.

3. Credit intermediation banks borrow and lend back-to-back on their own account as middle men

CCB- Central cooperative bank

4. Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. 5. Maturity Transformation banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets). 6. There is two part of financal condition of the organtionation that is main part of the orgationation One is the Libilites and another is Asstes of organation at the CKSB Bank is financal condition is allso better other sahkari bank cous the funding is provied of nabard.

SAVING ACCOUNT INFORMATION

Definition: A deposit account at a bank or savings and loan which pays interest, but cannot be withdrawn by check writing.

Types of Saving Account In CKSB Bank

Zero Balance Savings Account At Axis Bank it has been constant endeavor to create products specifically catering to your needs. The account while offering a whole range of services also addresses your latent need of having an account without the hassle of maintaining an average quarterly balance. Conditions Apply:1. Initial funding of Only 100 rs. 2. Account maintenance fee of Rs. 100 per annum Average Balance Requirement : This account is offered with the requirement of maintaining the half-yearly average balance of Rs 100 only

CCB- Central cooperative bank

LIABILITIES
CAPITAL (a) Government (b) Primary Societies 93,242,500.00 FUND (a) Reserve fund (b) Reserve for Bad & D. Debts (b1) Reserve For Subsidy Computer (c )Building Fund (d) Agricultural credit stabilisation (e) Dividend equilisation (f) Special bad debts reserve fund (g) Investment depriciation fund (h) Education and publicity fund (i) Public good fund (j ) Gratutity fund With Lic (j ) Leave Encashment with LIC (k) Admission fees (l) Prov. Of intt. On Bad and Debts (m) Risk fund (n) Reserve for conveyance (o) Reserve Guarantee Commision (p) Pro.of intt. Socs. Manager (q) PACS Development Fund (r ) Reserve cadre Authority (s) Provision Standard Assets (t) Rehabilitation fund of week farmers socs. (u) Provision for Erosion in Investment (v) Provision for Branch adjustment (w) Provision for Gratutity

HEAD OFFICE

21,978,000.00 71,264,500.00

8,476,147.10 35,854,000.00 121,815.80 1,289,819.23 3,440,532.00 1,289,506.33 2,146,789.00

493,723.77 1,289,506.33 20,737,200.00 20,205,990.00 1,351,656.00 64,428,481.19 925,519.27 175,618.34 104,889.71 1,000,000.00 2,047,708.00 1,453,217.88 12,124,102.00 11,416,513.00 20,000.00 5,393,000.00

CCB- Central cooperative bank

(x) Provision for ARDR Claim (y) Prov. For Income Tax (z) Coorps Fund (a1) Socs.Mgr.Salary Security Fund (a2) Unclaim Fund 216,114,149.62 (p) Sub state partnership fund (q) Borrowing from State Revo. Fund (a) Current deposits 1. Primary societies 2. Individuals 3. Storage project 4 . Fixed deposit matured but undrawn 5. C.C. To pledge/hpt 79,367,170.43 (b) Saving Bank 1. Supervisoury fund 2. Primary societies 3. Individual 935,674,388.86 (C) Recurring deposits (d) Fixed deposits 1. Primary societies 2. Individuals (f) Meera Panch varshiya Nakad patr (e) Five year Coop. Thirft certificate (h) Risk fund (I ) Security staff (k) Special bad and doubtful debts reserve 1,967,555,554.13 (f ) Call deposits 1. Primary societies 2. Individuals (j ) Staff provident fund deposits (l ) F.P.Fund LOANS CASH CREDIT AND OVERDRAFT (From Apex Bank) (d) S.T. Loan (Agricultural) (e) S.T. Loan Krishak Mitra Yojna

5,182,705.02 6,381,849.00 185,000.00 8,036,000.00 542,860.65

26,238,500.00

DEPOSITS

891,492.30

90,126,317.37 96.00

CCB- Central cooperative bank

(f) N.O.D.P. (ST) (r ) S.T. DTP 100,078,000.00 (g) M.T. Conversion (Q) MTC NODP () MT/ panchamrit Yojana (R) MT Composite Loan (NFS) ( q) MTC DTP apex bank 49,422,000.00 (Q) MTC (R) (F) M.T.Dairy (I ) ARDC Loan (o) SGSY FARM (w) MT Sugam Credit Card/S.Yojna Loan Boro. A.B. M.T. Reschedulement Borrowing Apex Bank (m) Tractor mech. M.T. Fodder Borrowing Apex Bank House Loan (rural ) Borrowing Apex Bank (c ) M.T. M.I.S Farm Sector (p) M.T. Loan Other Farm Sector M.T. SHG Borrowing Apex Bank 25,200,000.00 M.T. Non Farm SRTO (q) Intrigrated 643,478,500.00 (n) Overdraft (with apex Bank) 1. Jaipur 2. Udaipur 3. IDBI Udaipur (r ) Consortium finance (L) Renewal Fund 643,478,500.00 Computer Loan From Apex Bank C.D. Cash with other Bank BRANCH ADJUSTMENTS BILLS FOR COLLECTION

27,310,000.00 72,768,000.00

42,690,000.00

6,732,000.00

465,500,000.00

1,060,500.00 2,218,000.00 25,200,000.00

1,017,495,647.12 -

CCB- Central cooperative bank

(a) I.B.C. (b) O.B.C. INTEREST PAYABLE ON DEPOSITS SUNDRIES AND OTHER LIABILITIES (a) Sundry creditors (b) Share application money (c ) Subsidy (d) Draft payable (e) Prov. For Income Tax Venchar Capital loan A/C INTEREST SUBSIDY ON GOVT. OF INDIA 2% INTEREST PAID ON DEPOSITS INTEREST RECEIVED (a) Consortium IFFCO (b) Consortium finance (c) Borrowing and overdraft (d ) From investment (e) From loans advances (f) Nabard Relief Fund PROFIT AND LOSS (A) year 2002-03 (b) yearly 2003-04 (c) yearly 2004-05 (d) yearly 2005-06 (e) yearly 2006-07 (f) yearly 2007-08 (g) yearly 2008-09 (h) yearly 2009-10 STATIONERY SOCS. MARGIN MONEY ESTT. AND CONTT. GRAND TOTAL 2,221,942,023.22 18,420,682.22 485,000.00 19,825.54

8,309,125.00

352,360.00 791,190.54 6,257,022.82 27,424,235.40 9,611,033.07 19,023,002.05 17,476,571.57 19,398,851.02 6,464,762.08 321,159.50

CCB- Central cooperative bank

ASSETS CASH (a) Cash in hand (b) With Notified Bank C.D. A/c (c )With Apex Bank C.D. A/c (JPR) (d) With Apex Bank C.D. A/c (UDR) (e) With other Bank in C.D. IDBI Udaipur A/c (f) With other Bank in C.D. IDBI Chittorgarh A/c (g) Post Office CALL DEPOSIT WITH BANKS (a) With apex Bank (b) With Notified Banks (c ) With other Banks FIXED DEPOSITS (a) With apex Bank (b) With Notified Bank (c ) With other Banks INVESTMENT (a) SIDBI BOND (b) UTI (c ) RFC BOND (d) Govt. Securities (e) Nabard Bond (f ) Shares of Apex Bank (g) Shares of others (h) Employees Group Gratitu Schem (LIC) (h) Employees Group Leave Encashment (I ) Share of Pri. Socs. (j ) ARDR Scheme LOANS TO CO-OP. SOCS. (f) S.T. Loan (Agri.) (N) (g) S.T.Loan (Agri.) (W) 710,719,464.81 (h) S.T. NODP (N) (I ) S.T. NODP (W)

HEAD OFFICE

45,458,949.73 4,113,456.23 2,234,953.41 524,040.67 3,108,634.60 2,841.05

90,000,000.00

1,345,513,270.10 9,800,000.00 130,000,000.00

17,800,000.00 19,500.00 20,737,200.00 20,205,990.00 26,238,500.00

CCB- Central cooperative bank

32,340,377.00 (J) S.T. DTP (N) (k) S.T. DTP (W) 93,311,876.00 836,371,717.81 (k) Krishak Mitara Yojna (m) MTC Normal (n) MTC Week 588,000,337.00 (o) MTC NODP (N) (p) MTC NODP (W) 38,078,661.00 (p) MTC DTP (N) (p) MTC DTP (W) 7,472,872.00 633,551,870.00 (p) MTCR (N) (p) MTCR (W) (l ) M.T. Normal Term loan reschedulement 2004 M.T.Normal ( Chara) (q) ARDC Loan (s) SJSY Farm 178,786,638.00 (I) M.T. NOR NON FARM (r ) MT Non Farming (t) SJSY Non Farm (w) M.T. Composite Socs. M.T. POP 36,428,612.40 (n) Tractor Societies (k) Dairy Societies (u) Loan ag. FD socs. (v) S.T. Non Agri. (x) S.H.G. CASH CREDIT TO SOCS. (a) C.C. to Agri. Socs. (a) C.C. to Coop. Socs.

CCB- Central cooperative bank

(b) Marketing socs.(pledgloan) (c ) Marketing socs (Hypo. Loan) (d) Consumer Stores (pledge loan) (e) Consumer Stores (Hypo. Loan) (I) Forest Labour (g) Supervissory fund DUES FROM SOCIETIES UNDER LIQUDATION LOAN TO INDIVIDUAL (a) Against FDR (b) Against RD (c ) Against NSC (d) House loan (janmangal yojna) (d) House loan(staff) (e) Clean loan to staff (E) RIDHI SIDHI YOJNA SUGAM CREDIT CARD Swarojgar Credit Card Swarojgar yojna Artijan Credit Card Yojna Gyan Sagar Yojna (f) Personal loan (g) Consortium Finance (h) S.R.T.O. (l) Commercial vehicle (m) Tractor Machinasition ind. (j) Dairy Individual (l ) Krishak Jyoti Yojna (c ) SSI Term Loan TERM LOAN TO SOCS Term Loan to D/H Hotal ( w) Women Socs Loan non agri ind (d) SSI Working Capital (f) O.D. to C.D. account (o) C.C.Individual ( p) C.C. Pacs Manager (Q) C.C. to Staff (r) MT LOAN AGRI. INDIVIDUAL (s)Plantation & Horticulture/UDYAAN (t)Vishwas Yojana 1,081,697.88

CCB- Central cooperative bank

(u)Panchamrit Yojana/Vermi compost (v)Gramin Godown (w) Property Mordgage Venchar Capital loan A/C FURNITURE FIXTURE LAND AND PREMISES VEHICLE ACCOUNT STATIONERY STOCK (a) Bank Use (b) For Societies SUSPENSE ACCOUNT LIBRARY EMPLOYEES P.F. WITH REGIONAL COMMISSIONER INTEREST RECEIVABLE Consortium (a) A.R.D.R. Scheme (b) Loan and Advances (c )From Investment (d) Subsidy apex bank (e) Intt. Subsidy on Govt. Sec. SUNDRY DEBTORS INTEREST RECEIVABLE From Govt-Nabard-20% INTEREST PAID ON DEPOSITS INTEREST PAID ON BRANCH BORROWING. Agri. Debt. Waiver & Debt. Relief Scheme INTEREST PAID ON CONSORTIUM INTEREST PAID ON LOANS BORROWING AND O.D. LOSS FOR THE YEAR ESTT. AND CONTT. BRANCH ADJUSTMENT AMOUNT RECEIVABLE ARDR SCHEME GRATUTITY FUND INTEREST SUBSIDY ON GOVT. OF INDIA 2% RELIEF FUND SCHEME GOVT. OF INDIA 25% GRAND TOTAL 12,792,971.00 2,919,083.00 2,221,942,023.22 3,960,436.53 295,041,385.79 5,182,705.02 707,838.00 406,976.00 54,709,913.69 11,416,513.00 21,661,505.40 1,689.00 90,127,865.37 1,144,116.75 5,029,991.00

CCB- Central cooperative bank

CASH TRANSACTIONS WITH PLDB

The branch will send the loan recovery amount, share money amount, accidental insurance amount etc. to PLDB from time to time. Similarly the branch will receive the loan reimbursement amount, subsidy amount, share money amount etc. from CCB. The operator as per the following form will enter the details of these amount transfers to and from CCB in the system:

In case cash will be received from the CCB, the cash account of branch will be debited and CCB account will be credited. When cash will be paid to the CCB, the cash account of branch will be credited CCB account will be debited.

CCB- Central cooperative bank

CCB- Central cooperative bank

Main Loaning Sector & Purpose

Minor Irrigation New Well Old Well Farm Non Farm Mechanisation Sector Tractor SRTO Trolley Small Scale Industries Diversify Dairy Land Development Rural Housing New Houses House Repairing Crop Loan Crop Loan

Pump set Sprinkler Field Channel Generator set Light Security Drip Irrigation

Thresher Other Ag. Equipment

High Plantation & Education Horticulture Tiny Sector Forestry & Waste land Development Swagojgar Poultry Credit Card Rural Sheep/Goat/Piggery Artisans/ Handicrafts Handloom/ Powerloom Fisheries Storage Godown/ Cold Storage Vermicompost Bio Gas

Many types of loans are provided by the bank some mainly given loans are: 1. Corp loan: Bank providing loan for crop. The main crops are Maize, Mustard, Wheat, Groundnut and Soya bin etc. Accordingly, the requirement of credit is estimated keeping in view scales of finance and the area cultivated under each crop. Interest rate is 11 % at present.

CCB- Central cooperative bank

2. Investment credit for Agriculture: A. Minor irrigation: This financing is proposed for replacements of pump sets, engergisation of pump set and water conservation devices such as sprinkler and drip irrigation system. During 2008-09 credit flow to this sector was Rs.14.39 lakh.

B. Land Development & Dry land Agriculture: Major activities covered under land development are land reclamation, land leveling, bunding and soil conservation, farm pond, vermicompost and integrated watershed development. These activities are needed for improving water management aspects of irrigation. Vermicompost technology has immense potential to meet organic manure requirement in both irrigated and rain fed area.Watershed development is generally being done through Govt. funding. During 2008-09 credit flow to this sector was Rs 7.44 lakh.

C. Farm Mechanization: Farm mechanization is essential for increasing production, productivity and adoption of multiple cropping. It also helps minimizing the cost of cultivation as also increasing cropping intensity. There is good scope of financing tractors in the district. During 2008-09 credit flow to this sector was Rs 35.55 lakh.

D. Plantation and Horticulture: Major horticulture crops grown in the district Guava, Mango, Citrus and Aonla. Farmers are showing interest towards horticulture activities. During 2008-09 credit flow to this sector was Rs 0.35 lakh.

E. Animal Husbandry: This sector assumes great importence as it forms integral part of rural economy in the district. Dairy, Sheep, Piggery, Goat rearing, and Poultry farming are major allied activities of the rural people. As there is frequent occurrence of drought conditions in the district, animal husbandry sector becomes one of the main sources of income for the farmers.

CCB- Central cooperative bank

During 2008-09 credit flow to this sector was Rs. 9.95 lakh.

F. Non-Farm sector: Promotion of rural non-farm sector is essential for creating employment opportunities in rural areas.. As per occupational pattern around 10% of the total work force in the district is engaged in household industry, manufacturing processing, service, repairs and other work. This sector offers immense potential in the district. There are good number of large, medium and small scale industries in the district. During 2007-08 credit flow to this sector was Rs 11.99 lakh.

G. Rural housing: Bank is also providing the loan for built new houses and repairing. Borrower should have agriculture land.

G. Other Priority Sector: The activities grouped under OPS or Services and Business sector are considered vital for sustaining the developmental activity in other sector of the economy.

CCB- Central cooperative bank

Interest rates
This rate of interest are Charged by CCB And CCB to BORROWER from 1, June, 2009.

Sr. No.

Loan Amount

Rate of interest charged by CCB MIS Purpose, Org.Farming , A&M, SGSY, SHG,RH. FM,Agri. Clinic, Cold storage, Rural Godown, & Other all purpose B 9.75 10.00

1. 2.

A.

Up to Rs. 500000/Above Rs.50000 /CORP LOAN

A 9.75 10.00

Rate of interest charged by CCB to BORROWER NF MIS FM.,Agri NFS S Purpose Clinic, Org.Farming Cold A&M storage, SGSY, Rural SHG,RH. Godwon & Other all purpose C A B C 9.75 12.00 12.00 12.00 10.0 0 12.50 12.50 12.50

8.50

11.00

Note:- In year 2009 the resetting scheme was announced by the bank. According to that scheme all those loans which were disburse before 31.3.2008 and charged by more than 11% interest rate they will be charged by 11% interest rate from 1.4.2009. CCB followed the rules and regulation of NABARD .

CCB- Central cooperative bank

CCB- Central cooperative bank

Term loans : Mainly there are three types of loan. And there due dates are like that:
Sr.no 1 2 3 Type of loan Yearly Half yearly Quarterly Due date 30,April of every year 30,Sep.and 31,March 31,Mar,30,June,30,Sep,and 31,Dec. 4. Monthly Last date of month. Nil Grace period 1 month Nil Nil

Classification of assets:
Category Standard Agriculture Loan Non-Agriculture Loan Provision % .25 % Over due a/c from Over due a/c from 90 days 180 days Sub Standard Over due a/c from Over due a/c from 90 days to 10 % 180 days to 36 36 month.

month. Doubtful Over due a/c from Over due a/c from more than 3 to 4 year 20 % more than 36 month . 36 month. 4 to 6 year 30 % More than 6 year 50 % Loss Assets Account which are Account which are marked 100 % marked by auditor by auditor and those which and those which overdue from long time and

overdue from long less possibilities to recovered time and less loan. to

possibilities recovered loan.

CCB- Central cooperative bank

Asset classification
The co-operative banks should classify their assets into the following broad groups, viz. Performing assets Standard assets Non-performing assets Sub-standard assets Doubtful assets Loss assets Non-performing assets: NPAs are loans given by a bank or financial institute where the borrower defaults or delays payments of interest or repayment of principal. Asset here also includes a leased asset. A NPA was defined a credit facility in respect of which interest and/or installment of principal has remained past due for a specified period of time.

Performing assets: Which accounts are not in performing are performing assets. Which accounts are regular or cover due installments are less than six is called performing assets.

Classification Of Non-Performing Assets After identification of borrowed accounts as NPA the next stage is asset classification Standard assets Standard Assets is one, which does not disclose any problems and which does not carry more than normal risk attached to the business. Such as asset should not be an NPA.

Sub-standard assets In case of sub-standard assets, the current net worth of the borrower/guarantors or the current market value of the security charged is not enough to ensure recovery of the dues to the banks in full. In other words, such assets will have well defined credit weakness that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the banks will sustain some loss, if deficiencies are not corrected.

CCB- Central cooperative bank

An asset where the terms of the loan agreement regarding interest and principal have been re-negotiated or rescheduled after commencement of production, should be classified a sub standard and should remain in such category for at least 18 months of satisfactory performance under the re-negotiated or rescheduled terms. If interest and installment of loans have been paid regularly as per the terms of re-scheduled. In other words, the classification of an asset should not be upgraded merely as a result of rescheduling, unless there is satisfactory compliance of this condition. Doubtful assets An asset is required to be classified as doubtful, if it has remained in the sub-standard category for 12 months. As in the case of sub-standard assets, rescheduling does not entitle the bank to upgrade the quality of an advance automatically. A loan classified as doubtful thus all the weakness inherent as that classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and importable. Loss assets A loss asset is one where loss has been identi fied by the bank or internal or external auditors or by the co-operation department or by the Reserve Bank Of India inspection but the amount has not been written off, wholly or partly, in other words, such an asset is considered un-collectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value. Findings for NPA

Improper selection of borrowers activities Weak appraisal system for credit proposal industries problem/prospects not locked into

Managerial competence of borrower given less consideration Irregularities in deficiencies in documentationUndated Not renewed

Assessment of borrower and guarantors net worth on market opinion

CCB- Central cooperative bank

Lack of review of borrowed accounts Inadequate staff to contact borrowers frequently Lack of proper follow up by banks Failure to take punitive (strict and effective) actions against defaulters Banks failure to appreciate the acts of prompt repayers Under financing/non financing in time of projects Mentality and attitude to default willfully Non action/co-operation of government agencies in recovery Effect of agricultural debt relief scheme Inadequate monitoring of court cases and delays in execution Socio-physical pressure by some people/activities Target fulfilling under govt. poverty alleviation programme Lack of income generation due to natural calamities and other uncertainties

Suggestions NPA reduction techniques:

Small NPA loans (loans up to Rs.1 lakh) - Repaying capacity can be easily gauged - Mobilizing liquid cash for meeting the debt is not difficult - Written remedies and repeat personal calls help mostly - Legal action is time consuming - Influence of other local persons contacts helpful

NPA-larger than small but medium (above Rs.1 lakh and up to 5 lakh) - Branch team can talk to the borrower and work out the repayment programmer - Debts can be settled through Lok Adalat - Influence of trade professional circles, associates useful

Medium size NPA (once Rs.5 lakh and up to Rs. 25 lakh) - SWOT analysis and analysis of security will be helpful

CCB- Central cooperative bank

- Branches should take advice of H.O. from time to time - Whether to have legal action or to go for compromise - Take legal advice

Large NPA (over Rs. 25 lakh) - Calls for intervention not only by head office staff but also specialists and senior management - Legal, technical advice called for - of state govt. and SFC in selling assets - Threat of winding up action would be useful

CCB- Central cooperative bank

CCB- Central cooperative bank

RESEARCH METHODOLOGY
There are many methods, which are well known today for research methodology, out of which one I have chosen is sampling method, which is really easier, still producing accurate results. Sampling in laymens language, is nothing but selecting pockets or samples representing the whole group and analysis of these samples gives the idea about the respective groups. On the basis of this, prediction is done and full information about group is integrated. Though this is not a first hand method, it gives sufficiently good outcomes if used carefully by experts. It saves the time and energy. The only care should be taken, in order to have great accuracy, is selection of sample should be such that it should represent the whole group and information we get from them should be cent percent reliable.

Salient features of my chosen sample The Leading co-operative bank having head office in my vicinity enables me to do my work efficiently. This is the striking feature of my sample. The exclusive schedule bank in Pratapgarh and hence gets priority over the others. Generally the new bank lacks the experience so it is mandatory to select a sample, which has enormous experience. CCB has a gigantic experience of successful 42 years, under the lights of which work becomes easier.

Collection of DATA: Data are only collected from secondary sources, Primary data has not been used. Secondary Data : Factsheets Internet Pamphlets etc

CCB- Central cooperative bank

CCB- Central cooperative bank

1. Share Capital: Particulars Members State govt. total 2009-2010 85-44 28-39 113-83 2010-011 83-58 28-39 111-97 2011-2012 82.14 28-39 110.53

Share capital
120 100
85.44 83.58 82.14 113.83 111.97 110.53

Amount (in Lakhs)

80 60 40 20 0 2006-07 2007-2008 2008-2009

28.39 28.39 28.39

Member State Gov. Total

Year

Conclusion: According to this figure and graph this is shows that the share capital of the bank is regularly reducing and the reason behind is that the loan disbursement is also decreasing from last few year.

CCB- Central cooperative bank

2. Loan disbursement:

Particulars
Target Achievement

2009-2010
150 94.12

2010-011
150 125

2011-2012
150 124.09

Loan Disbursment
160 140
Amount (in Lakhs)

150

150 125

150 124.09

120 100 80 60 40 20 0 2006-07 2007-2008 2008-2009

Year 94.12

Target Achievement

Conclusion: Loan disbursement is not constant, in 2006-07 it was suddenly decrease but in year it increase.

CCB- Central cooperative bank

3. Recovery

Particulars
Demand Recovery Balance recovery%

2009-2010
682.94 180.08 502.86 26.37

2010-2011 2011-2012
913.65 338.34 575.31 37.03

31,march,012 1086.87 128.31 958.56 11.81

Recovery
1200 1086.87 913.65 682.94

Amount(in Lakhs) & %

1000 800 600 400 180.08 200 0 2006-07

Dem and 338.34 128.31 37.03 2007-2008 11.81 Recovery Recovery%

26.37

2008-09 31,m ay,09

Year

Conclusion: Recovery of Bank is not according to the demand because of many reason like many rebates are provided by bank in between the recovery period, many times people not pay the money etc.

CCB- Central cooperative bank

4. Loan from CCB

Particulars
Outstanding Overdue principal OD% from totalo/s

2009-2010
1384.93 30.77 2.22

2010-2011
1417.19 97.4 6.87

2011-12
1407.08 107.35 7.63

Loan from SLDB

1600 1384.93 1400 1200 1417.19 1407.19

Amount & %

1000 800 600 400 97.4 200 0 2006-2007 2007-2008 2008-2009 30.77 2.22 6.87 107.35 7.63 Outstanding OD principal OD %

YEAR

Conclusion: Many time CCB borrow money from LOAN to lent their customer. From last three it is increase regularly and overdue is also increasing every year.

CCB- Central cooperative bank

5. Establishment Expenses:

Particulars
Working capital Total Est.exp. %

2009-2010
1922.25 11.9 0.62

2010-011
1999.99 14.59 0.73

2011-012
2014.47 15.53 0.77

Establishment expenses
2500 1922.25 2000 1999.99 2014.47

Amount & %

1500 W.C. 1000 Total est.exp. % 500 11.9 0 0.62 2006-2007 14.59 0.73 2007-2008 15.53 0.77 2008-2009

Year

Conclusion: Total working capital requirement of bank is increasing and total establishment expenses is also increasing. But the total establishment expenses is less than 1 it is the good thing about the bank.

CCB- Central cooperative bank

6. Profit & Loss Position:

Particulars
Profit during the year Accumulated P & L

2009-2010
29.06 -301.67

2010-011
28.48 -273.21

2011-012
-34.18 -307.39

Profit & loss Position

50 0 29.06 28.48

Amount(in Lakh)

-50 -100 -150 -200 -250 -300 -350 20062007 20072008

-34.18

-273.21 -301.67 -307.39 20082009

Profit during the year Accum ulated P&L

Year

Conclusion: In 2006-07 & 2007-08 the in profit but in 2008-09 it in loss and bank incurred accumulated loss because of NPA provisions.

CCB- Central cooperative bank

LIMITATION OF THE STUDY Though I have selected the co-operative bank for my study and no doubt here I have learnt a lot, but compared to nationalize bank, its network is BIG. The procedure of credit appraisal, various interest rates on different schemes, recovery programmes are specific to CCB.

BIBLIOGRAPHY

BOOKS: Pamplets . Factsheets and Guidence of bank member. www.rsnindia.com www.nabardbank.com Shekhar K.C. Banking Theory and Practices. Bedi H.L.; Hardikar V.K. Practical Banking Advances. The Cooperative Banking Acts.

CCB- Central cooperative bank

CCB- Central cooperative bank