Innovation in PSBPSSN Maski

INNOVATION IN BANKING SYSTEM IN PSPSSN
Chapter-1
1.1 INTRODUCTION:
The objective of this chapter is to present a brief review of the evolution and
growth of urban co-operative society in general and Karnataka state in particular. It helps
to understand the need for co-operative urban credit, objectives, structure, growth
position and recent trends in urban co-operative banking (society ) sector. Co-operation
among the group for attaining certain common objectives has been basic requirement of
civilization. We have seen that even very small creature like ants join together in a big
way to carry a grain of sugar or food to achieve their common objective of meeting their
food requirements by way of sharing the efforts and also the fruits. We have a saying in
our country that 1 and 1 is not 2 but 11. In the same spirit International Co-operative
Alliance was formed long back as an structured body to strengthen the cooperative
movement world over which is defined as “an autonomous association of persons,
united voluntarily to meet their common economic, social and cultural needs and
aspirations through a jointly-owned and democratically- controlled enterprise.”
The banking industry has achieved tremendous progress during the past few
years. Many new banks and financial intuitions have entered in to market. Each one has
made rapid strides towards achieving the ultimate objective of attain leadership in the
banking industry.
Modern delivery channels core plus offer access to new electronic banking channels with
full support for Internet and mobile phone banking as well as ATM/POS networks. The
connection to the ATM network uses the industry standard ISO 8583 interface and latest
secure technologies like Web Services and SOAP. Inter Banking Internet is the fabric of
our networking social and financial life. It is a great tool to leverage and facilitate the
interaction between bank and their customer. Since its inception, probanx (information
system) has innovation in the banking way to use the internal users of the banks. Mobile
Teller and Banking Point-of-Services (B-POS) the last (but not least!) innovation of
probanx brings the banking service at the fingertips of your clients and tellers with the
DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 1
Banking point-of-Service and Mobile teller terminals. Using the most recent telephony
and card technologies, it allows branchless banking in full control and full security, and it
supports offline transactions as well. Future-Proof Solution Core Plus enables the banks
to meet the challenges of the new banking age. By choosing Core Plus, you get a future-
proof banking system ably equipped to manage complex, high-volume banking
operations and adjust your strategic business activities to meet new demands as they
arise.
The society has to obtain a license from the Reserve Bank of India before starting
banking business. Urban Cooperative Banks (UCBs): The term Urban Cooperative
Banks (UCBs), though not formally defined, refers to primary cooperative banks located
in urban and semi-urban areas.

MEANING OF RESEARCH:
It can be defined as the search for knowledge or as any systematic investigation,
with an open mind, to establish novel facts, solve new or existing problems, prove new
ideas, or develop new theories. The primary purpose or basic researches as opposed to
applied research are documentation, discovery Interpretation, or the research and
development of methods and systems for the advancement of human knowledge.
1.2 STATEMENT OF PROBLEM:

Unless they said problems are addressed to the banks the profitability or the
margin of the banks will always be under pressure. Now a days many of the banks were
working forward to modernize their bank and the way they serve.
“How best the system of the bank is structured this area requires to be continuously
reinvented by innovative method. This is more so all banks are trying to implement as
much as possible innovative ideas in the banking system as to compete with the
challenging are”
The most important function of modern of banking is the lending of funds.

The strength of banking system their primary depends upon the fondness of the
advances. Before granting audit the bank has to look at the credit wreathen of the
borrower because is carries as certain degree of rich. Thus a detailed study of the
policies procedures and terms followed by a bank while making advances is required
to ensure that the bank does not face any difficulty in recovering the loan.

NEED FOR THE STUDY:

It’s an continuous process which does not have an end. The innovation is the
ongoing process, so it is necessary to keep on the changes of everything. Especially in the
bank & their system. This plays an important role in the economic development of a
country. As well as the to create a stable structure of banking system. It is necessary to
make study on areas like deposit, loans and advances, collection remittance, international
banking, etc.
1.3 OBJECTIVES OF THE STUDY:

 To know the modern felicities providing by Sri Sharanabasaveshwara bank
to the public.
 To know the effectiveness work or Pujja Sharanabasaveshwara co-
operative society in Maski.
 To study the development and growth of the bank.
 To understand the better concept of innovations in the banking ( Financial,
social ) sector.
 To know the employees working capacity by inventing new innovation in
their work.
 To analyses the customers’ satisfaction towards the bank and its goodwill.
 To know the new transaction innovations in Pujja Sharanabasaveshwara
co-operative society.
 To find out the bank position in old system & recent systems.
1.4 SCOPE OF THE STUDY:

The area of innovation is very vast & innovations in banking system are very vast.
From various it is focus more on financial as well as technology innovation in Pujja
Sharanabasaveshwara Patina Souharda Sahakari Niyamita Maski. The study is made on
almost all areas like deposits, loans & advances, interest rates, securities system, online
banking, & ATM, etc.

1.5 RESEARCH AND METHODOLOGY:

To write the project report on the “ Innovation in banking system.” it was felt
appropriate to relies much on the primary source of information keeping in mind the
sensitivity of the topic and scope of the study a detailed questionnaire was prepared and it
was tested.
SOURCES OF DATA:
There are two kinds of sources to get the date and information which are first one
is primary data and second one is secondary data. The information is collected from bank
manager in the form of opinions or information through interview method. The branch
has provided the required information or data for the study is collected by the way of
methods which are as fallows.
PRIMARY DATA:
Primary data is the data which is first hand data this can be collected thorough the
experienced officers or concerned staffs in the branch & by an experts.
SECONDARY DATA:
The secondary data is the data which is are collected from the 3rd party is called
secondary data. Secondary source Of data include, various textbooks, magazine, Banks
manuals and Catalogues report’s etc. The theoretical background collection from the
books, journals, periodicals and internal record of the Banks.
1. Bank booklets, records

2. Websites and etc

1.6 LIMITATIONS:
1 This Society doesn’t have ATM card facility to their customers
2 Due to the time constraint the study is limited to Pujja Sharanabasaveshwara
Patina Souharda Sahakari Niyamita Maski.
3 Vast scope, so study is made on limited topics.
4 The study is purely made on information provided by bank manager And by
externals.
5 The project study is restricted to banking sector used in India only. Especially in
co operative society only.
6 There is no scope for agricultural loans.
7 This society have less innovative techniques and tools to adopt.

2.0 INTRODUCTION OF CO-OPERATIVE
Urban Co-Operative Movement - A Profile:
Co-operative endeavor is not an alien phenomenon to India. Kautiliya, in his

'Arthashastra' described, "Guild of workmen as well as those who carry on any co-
operative work shall divide their earnings either equally, or agreed up on among
themselves."' The co-operative credit movement in modem India, was never a
spontaneous development as in advanced countries. It was a government initiated
programme and has been largely nurtured and guided by the governments. The co-
operative credit institutions, as a modem concept, are well over hundred years old.
Germany was the first country in the world to apply the principles of co-operation
in the field of credit. It was in the middle of 19th century that Herr. F.W.Raiffesien and
Herr. Franz Schulze took initiative and started friendly societies and credit
associations for relief in sickness. In German cities and urban areas, the poor
artisans started the formation of their co-operative societies for their economic
benefits. Most of these societies were able to provide relief for their members and
were successful in attaining their objectives. In 1852, Schulze founded a society on
co-operative principles at Delitzsch, where he was the Mayor. A number of banks were
started by him and in 1859, he organized a congress of these banks. Dr. Hass was
another German who did some useful work in the field of co-operative credit. The
objective of Raiffisen was to improve the situation of the members of the society, both
materially and morally. The rural masses especially farmers and cultivators were granted
loans for the development of their business. The objective of the Schulze's societies
was to fulfil the credit requirements of traders, artisans and middle class people
residing in urban areas.

In the early 20th century, the availability of credit in India, more particularly in rural
areas was nonexistent. There was no organized institutional credit for agricultural and
related activities. People in the rural areas largely depended on money lenders who lent
money at very high rates of interest. Thus, there was need to create an institution which
would cater to the needs of ordinary people and was based on the principles of
cooperative organization and management.
In 1904, the first legislation on co-operatives was passed. In 1914, the Maclagen
committee suggested a three tier structure for cooperative banking that is Primary
Agricultural Credit Societies at the grass root level, Central Cooperative Banks at the
district level and State Cooperative Banks at the State or apex level. Cooperative banks
were expected to serve as substitutes for money lenders, and provide both short-term and
long-term institutional credit at reasonable rates of interest.
Definition Of Co-Operative Bank :

A co-operative bank is a financial entity which belongs to its members, who are at
the same time the owners and the customers of their bank. Co-operative banks are often
created by persons belonging to the same local or professional community or sharing a
common interest. Co-operative banks generally provide their members with a wide range
of banking and financial services (loans, deposits, banking accounts.
Co-operative banks differ from stockholder banks by their organization, their
goals, their values and their governance. In most countries, they are supervised and
controlled by banking authorities and have to respect prudential banking regulations,
which put them at a level playing field with stockholder banks.
Depending on countries, this control and supervision can be implemented directly
by state entities or delegated to a co-operative federation or central body. Even if their
organizational rules can vary according to their respective national legislations, co-
operative banks share common features.

Mr.Devine Defined:
Co-operative bank as “A mutual society formed, composed and governed by
working people themselves for encouraging regular saving and granting small loan on
easy term of interest and repayment”.
Customer-Owned Entities:
In a co-operative bank, the needs of the customers meet the needs of the owners,
as co-operative bank members are both. As a consequence, the first aim of a co-operative
bank is not to maximize profit but to provide the best possible products and services to its
members. Some co-operative banks only operate with their members but most of them
also admit non-member clients to benefit from their banking and financial services.
Democratic member control:

Co-operative banks are owned and controlled by their members, who
democratically elect the board of directors. Members usually have equal voting rights,
according to the co-operative principle of “one person, one vote”.
Profit allocation:
In a co-operative bank, a significant part of the yearly profit, benefits or surplus is
usually allocated to constitute reserves. A part of this profit can also be distributed to the
co-operative members, with legal or statutory limitations in most cases.
Profit is usually allocated to members either through a patronage dividend, which

is related to the use of the co-operative’s products and services by each member, or
through an interest or a dividend, which is related to the number of shares subscribed by
each member.

Co-operative banks are deeply rooted inside local areas and communities. They
are involved in local development and contribute to the sustainable development of their
communities, as their members and management board usually belong to the
communities in which they exercise their activities. By increasing banking access in areas
or markets where other banks are less present – SMEs, farmers in rural areas, middle or
low income households in urban areas - co-operative banks reduce banking exclusion and
foster the economic ability of millions of people. They play an influential role on the
economic growth in the countries in which they work in and increase the efficiency of the
international financial system.
Brief History of Urban Co-operative Banks in India
The term Urban Co-operative Banks (UCBs), though not formally defined, refers
to primary cooperative banks located in urban and semi-urban areas. These banks, till
1996, were allowed to lend money only for non-agricultural purposes. This distinction
does not hold today. These banks were traditionally centered on communities, localities
work place groups. They essentially lent to small borrowers and businesses. Today, their
scope of operations has widened considerably.
The origins of the urban cooperative banking movement in India can be traced to
the close of nineteenth century when, inspired by the success of the experiments related to
the cooperative movement in Britain and the cooperative credit movement in Germany
such societies were set up in India.
Cooperative societies are based on the principles of cooperation, - mutual help,

democratic decision making and open membership. Cooperatives represented a new and
alternative approach to organization as against proprietary firms, partnership firms and
joint stock companies which represent the dominant form of commercial organization.

Co-operatives In India:
In India the Co-operatives officially appeared through a Cooperative Society’s
Act in 1904 during the British rule and subsequently it took a great shape after the
independence in 1947. Since the independence the Indian Government led by Pt. Jawahar
Lal Nehru saw the social, economic and egalitarian potential of co-operation in molding
Indian society.
The first known mutual aid society in India was probably the ‘Anyonya Sahakari
Mandali’ organized in the erstwhile princely State of Baroda in 1889 under the guidance
of Vithal Laxman also known as Bhausaheb Kavthekar. Urban co-operative credit
societies,
Urban credit movement in India:

The urban Co-operative credit movement in India was started to cater the
banking and credit requirements of the lower and middle class urban people. They
include traders, businessmen, artisans, factory workers, and salaried people with fixed
income in urban and semi-urban areas.
The motive behind the starting of urban credit movement in India was the success
stories of urban credit institutions organized by Herrnann Schultze in Germany and
Luigi Luzzatti in Italy. It was the middle class Maharashtrian families settled in the
erstwhile Baroda state, who started the first mutual aid society named as "Anyonya
Sahakari Mandali" (Mutual aid society) in Vadodara (Baroda) on 5th February 1889
under the leadership of Sri Vithal Laxman Cavathekar.
The erstwhile Madras presidency had organized co-operative undertakings in

the form of indigenous 'Nidhis' much before the official launching of the co-
operative movement. The spread of the news of achievements and success in Nidhis
helped its birth in other states like Uttarpradesh, Punjab and Bengal under semi-official
auspices.

Madras Government took some pioneering effort in the initiation of co-

operative movement. In 1892, the Madras Government appointed Sir F.Nicholson to
enquire into the possibilities of starting a system of land banks in that province. His
report to the Madras Government in 1899 recommended the starting of co-operative
societies. This led to the formation of co-operative credit societies in different parts of
India, as a policy and programme of the government. Following this, in 1904, the Co-
operative Societies Act was passed in India and co-operative credit societies obtained
legal status. The first co-operative credit society was registered in October 1904 at
Kanjeevaram in the erstwhile Madras province. The Betegiri Co-operative Credit
Society in Dhanvar district, the undivided district of the then Bombay province, and the
Bangalore City Co-operative Credit Society in the erstwhile Madras state, which were
registered in October 1905 and December 1905 respectively.
After passing the Co-operative Societies Act 1912, co-operative societies started
organizing at a faster rate. But the urban co-operative movement did not receive much
momentum.
The urban credit movement in India got a big boost after the publication of the
Report of the Maclagan committee on Co-operation in India (1915). The committee
observed that a good number of urban people were indebted to moneylenders who
charged exorbitant rates of interest on borrowings. The borrowers were in debt trap
and to rescue them the only remedy was to start urban CO-operatives.
A number of urban credit societies were organized in the erstwhile provinces

of Bombay and Madras during the period between 1919- 1938. The failure of Swadeshi
joint stock bank created an opportunity for co-operative banking to develop as a medium
for mobilizing savings of persons of modest means.
The great depression of 1930s, though made a visible set back in rural credit co-
operatives, did not make any significant adverse impact on the development of urban
credit movement in the country. The Indian Central Banking Enquiry Committee (1931)

observed, "The duty of these urban banks should be to try to do for the small traders, the
small merchant and the middle
class population what the commercial banks are doing for the big merchant."
The economic boom that followed the Second World War (1939-45) made a
significant growth in their number, area and activities of business. The working capital
of non-agricultural credit societies at the end of 1945-46 amounted to Rs 38.32 crores
compared to Rs 25.89 corers of the agriculture societies7. The UCBs were asked to
assist the small and medium operations like the artisans, small trader, and businessmen
and professionals in the overall economic matrix of the Indian economy.
FATHER OF CO-OPERATIVE SOCIETY

Objectives And Functions Of Ucbs:

Prior to the introduction of the Banking Regulation Act of 1949 (as applicable
to co-operative societies) there was no uniformity in the operations of UCBs in India
These include salary earners societies and credit societies organized by special category
of people and there was no difference between urban credit societies and Urban Co-
operative Banks.
 The objective of co-operative societies is to render service at reasonable cost.
 Whereas the objectives of commercial bank are to earn profit.
Functions of Co-Operative Society:

According section 6 of the banking regulation act (as applicable to co-operative
societies) can undertake the following functions. In addition to the business of banking a
co-operative society may engage in any one or more of the following forms of business
namely.
 The borrowing, rising or taking up of money, the lending or advancing of the
money either up on or without security, the drawing, making, accepting,
discounting, buying, selling, collecting and dealing with in bills of exchange,
promissory notes, coupons’, drafts etc.
 Acting as agents for any government or local authority of any other persons.
 Contracting for public and privet loans and negotiating issuing the same.
 The effecting, insuring, guaranteeing, underwriting participating in managing and
carrying out of any issue.
 Carrying on and transacting every kind of guarantee and indemnity business.
 To undertake collection of bills, to carry out instructions for periodical
collections, remittances etc of the members and the depositors.
 Selling, improving, managing, developing, exchanging, leasing, mortgaging,
disposing of or turning in to account or otherwise dealing with all or any part of
the property and rights of the co-operative banks.

COMPANY PROFILE
Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Niyamita

Maski-584124

PSPSSN-Maski 584124
Type : Co-Operative Bank
Founded : February 11th 2008
Head Office : Maski
Karnataka-584124
Industry : Banking
Products : Loans and services etc.
Logo of SSPSSN
PSPSSN Providing “SERVICE WITH SMILE”

This bank was incorporated in the year of 2008 on February 11th. The bank was
started with initial capital of Rs 5, 00,000 and it was collected by the shareholders.
This Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Ni bank is leading the
position as a credit co-operative with facilitating good services in the Raichur district. By
this bank performance it has increased its share capital to Rs 25, 23,600. The credit
society formed by under registration KCS (Karnataka co-operative society) act. The
credit society established as Pattina Souharda Sahakari Niyamita and at 11th February
2008 is converted to new act Karnataka Souharda sahakari act.
Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Niyamita with head office at

MASKI made it’s beginning on 5th may 2008 admits other giant commercial societies
functioning in the command area. The society which was established exclusively to meet
the credit requirement of the targeted groups small or marginal, rural artisans, retailers
small business peoples etc has fulfilled its objectives to a great extent and has become a
household name in its command area. While fulfilling its objectives the society also
ensured that it remain a viable entity by earning profit. Patronage extended by customers
and well wished and dedicated work force of the society helped society to grow from
strength year after year. The society existed of over 3 year has been successful in taking
society to the door steps rural masses. Extended timely credit facilities to them and helped
them to relive themselves from the shareholder. In this process the society has also been
able to mobilize substantial rural savings and plough back the same of rural development
in the command area of the society.
Corporate objectives:
Every year the society sets corporate objectives in prioritizing on the aspects of the
society in the corporate objectives.

AIMS OF PSPSSN:
 Aggressive deposit mobilization.
 Impressive increase in non-priority sector earning.
 Massive reduction in NPA.
 Build up low cost deposits.
 Ensure high yielding equality advance.
MISION OF THE BANK:

“While working on co-operative principle is to mobilize the recourses and provide
loans to all borrowers with more focus on micro finance and NFS has also to provide
modern banking services to has to bring about economic development along with social
welfare of its members.
FUTURE PLANS:
 Society planed to establish two or more branches in coming two years.
 Any where banking system in branches.
 To have own premises.

ORGANIZATION STRUCTURE OF PSPSSN
CHAIRMAN
BOARD OF DIRECTORS
DIRECTORSS
MANAGER
INCHARGE MANAGER
FIELD OFFICER
MANAGER
CASHIER MANAGER CLERKS
MANAGER MANAGER

The board of Directors of the SPSSN Maski consists of the following

persons.
PRESIDENT
Sri Andanappa Gundalli
DIRECTOR DIRECTOR DIRECTOR

Sri Mallappa Kudatini Sri Malleshappa Byali Sri Shivappa Udbal
DIRECTOR’S
Sri Shashidhar Hatti Sri Vinaykumar Poolbhavi Sri Mahadevappa Byali
ADVISERS
1. Chandru 2. Someshwar Rao 3. Dr. Panchakshari
4. Ereshappa yambal

PSPSSN - STAFF
Pampapati A.M
Maneger
Amaramma V.Durga Ramesh Virapur Shivaprasad

Hiremat Raghavendra Gabbur
Officer Cashier Attender Field officer
Social Activities:
The bank is providing extra curriculum activities such as :
 Blood donation.
 Education funds. Cultural
 cultural activities etc..,

The area of network:

The society originally covering four district such as Raichur, Gulbarga, in the command
area of PSPSSN project consequently up on reorganization or district the society is
covering number of talukas covered by society continuous be 5 of collected fund.
 Useful investment of fund better customer services.
 Building transparency in all dealings.
 And achieve its own viability.

Schemes offered by PSPSSN :

The schemes of PSPSSN are well received by customers considering simplicity in
alignment and documentation. These are many innovative schemes for professionals,
business mans, industrialist etc.
1. Schemes Of Demand Deposit :

a) Savings Bank Account.
b) Current Account this is for business people only.
2. Scheme of term deposit :

In fixed deposit quarterly interest is paid to the depositor another schemes in fixed
deposit is monthly interest payable system.
a) Recurring deposit:
This deposit is for salaries incomes and fixed person.
b) Devanampriya cash certificate:

It is only for those people who are wish to make long term deposits it
means nothing but making the money into double money it is period about 6 years
3 months in the year by long term savings deposits.
C) Staff Security Deposit:

Employees guaranty or security purpose of society & for deposits only.
d) Samruddhi Pigmy deposit :

In this schemes the society appoint an agent and mobilizes and small
savings of the customers by personally visiting their shops, residence,
etc. In this schemes customer do not to go to the society to deposit their
money by paying with agent of society they can save their money and time.

3. LOANS SCHEMES OF PSPSSN

a) Working capital loans :
Business loans, old deposits, cash credits it’s giving for
trading and industries. These loans are payable within one year and
maximum amount is from 500000 and there in mo restriction on
the maximum amount.
b) Term loans :
The term loan is provided to those people they are
industrialist, professionals to purchase machinery,
equipment construction of land and building for their
organization, gowdens,etc.
c) Consumption loan :
These loans are provided for marriage expenses, medical allowances, for
consumption in nature.
d) Investment loans :
These loans are provided to purchase bulk of cart, dairy loans and other
agricultural activities.
e) surety loans/Surety bonds :

A surety bond is defined as a contract among at least three
parties: ... the principal: the primary party who will perform the
contractual obligation. the surety: who assures the obligee that the
principal can perform the task.

4. Employee Loan :
When a company lends money to one of its employees, the
company will debit the asset account Loans to Employees and
will credit the asset account Cash. ... The company's entry to
accrue interest is a debit to the current asset Interest Receivable
and a credit to Interest Revenue.
5. Gold Loan :
Gold loan is sanctioned by accepting the gold ornaments
of the customer as pledge. Personal loan is sanctioned on
the basis of source of income and repayment capacity of
an applicant. It is true that Gold loans, like
personal loans or credit card borrowings, are often used
for short term household requirements.
6. loan on FD :
A personal loan taken against a fixed deposit ensures that you
pay just 1 per cent more than the rate of interest payable than
the fixed deposit. For example, if a bank pays a 9 percent rate
of interest on a three-year FD, then the rate
of interest payable on the personal loan raised against it
would be 10 per cent.
7. Loan on pigmy :
Loan against the security of Pigmy Deposit is known as pigmy loan.

SPECIAL FACILITIES FOR PUBLIC BY PSPSSN:
Savings Accounts :
It is an account people can deposit or withdrawal their amount
at any time during the bank also for which the bankers will
charge 3 to 4% simple interest to their account.
Merits:-
 There is no restriction for depositing or withdrawal the amount through SB
account
SB can start with minimum balance but Rs with 500 so that it is very useful to
small scale or small petty peoples.
 The account can be open even minority also and other peoples also like students,
un educated peoples etc.
 Which can be operated through ATM also it is also useful after working also.
.
Demerits:-
 It cannot be able to transients by business oriented peoples
 If you are investing through SB we cannot able to expect more interest from SB
account.
Fixed deposits :
It is also called as term deposit. People can deposit
their amount through FD for certain definite period .i.e.
from minimum 15 days to maximum 5 to 6 years. It is
called as fixed deposit.

Merits:-
People can expect maximum interest rate through SB account.
For long term depositors people can expect mutually interest against their
deposit.
For those whose planning for future like children’s, marriages, education. it is
suitable for like those peoples.
It is useful for especially for retired persons to plan their future life.
We can take loan on FD without any security.
Demerits:-
If a person wants to withdraw FD is not getting assumed amount.
It is not will suitable for monthly salary persons.
People are not showing much interest because the bankers are deducting TDS
(Tax Deduct Services) against FD
8. Demand draft ( DD) :
It is an instrument which is issued by the national banks instead of currency. It can be

used Ancash the cash in any banks.

Merits:-
 People can carry the DD from one place to another place. Interest of carrying
money for safety.
 Through DD we can pay the few, purchases, necessaries materials from the shops
or marketing.
 It can be used as a carrying successfully and travelling currency.
 It is very useful to business peoples and non business peoples.
Demerits:-
 It cannot be transfer easily from one person to another.
 It cannot be encased the money without an account.
 If a person is wants to take bank DD amount they can be charged certain amount.
9. Automatic teller machines (ATM) :

ATMs are electronic machine which are operated by a customer
himself to deposit or withdraw cash from the bank. for using an
ATM card from his bank. The ATM card is a plastic card,
which is magnetically coded. It can be easily read by the
machine.
To operate an ATM card the customer has to inset the card in
the machine. He has to enter the password.
Merits:-
 ATM provides 24 hour services.
 ATM gives convenience to the bank’s customers.
 ATM reduces the work load of the bank’s staff.
 ATM is very beneficial for travelers.
 ATM may give customers new currency notes.

10.Real Time Gross Settlement System (RTGS) :

The acronym ‘RTGS’ stands for Real Time
Gross Settlement, which can be defined as the
continuous (real-time) settlement of fund transfer
individually on an order by order basis (without
netting). ‘Real Time’ means the processing of
instructions at the time they are received rather than at some later time. ‘Gross
Settlement’ means the settlement of funds transfer instructions occurs individually (on an
instruction by instruction basis). Considering that the funds settlement takes place in the
books of the Reserve Banking of India, the payments are final and irrevocable.
11.Mobile banking :
Bankers will give password using this password
customer can operate through mobile also.
Merits:-
 We can transfer the fund without visit bank.
 Through this we can pay help phone bill, fees, etc.
Demerits:-
 In case forget the password or loss the password it cannot easy
 Without knowing the password it is not easy to do.

12.Fully computerized :
It is very useful and accuracy account. There is no need to recognize account
holders CC (customer Code).
Merits:-
Interest calculation is very easy through this like simple interest, dividend interest,
capitalization etc.
Demerits:-
Lack of maintenance it is very difficult
Sufficient power (current) facility is not there means it is difficult.ss
13.Key loan facilities :

This loan called as Godden it is giving on commodity only.
14.Insurance facilities :
Bankers will provide insurance facility i.e. vehicle insurance and life insurance to the
shareholders only.
10) Easy money:

It is a scheme period of 20 months it is having the quality of RD,
FD a same features of chit fund
Merits:-
Members can interest are join the group in any month
Customers can getting dividend in each month
People can close their account in at any month there is no define time for closing
account.

Demerits:-
 There is loan facility against the collected amount
 He can participate only through bidding.
 If you want to withdraw amount within 6 months period account holders can be
charged 5% services charge against his deposit amount.
15.Current account :
Only business people can do this account the person wants
to do the business he can operate. In this bank the bankers
are extended time to taking the deposit amount and
withdrawal of amount for the deposit holder comparatively
other co-operative societies this is the special in this bank
Merits:-
 For business peoples it is very useful
 Current account can liable to pay the tax in every year.
 Account can be operated with minimum balance of 5 to 10,000 Rs.
 Customer can operate the account only through cheques.
Demerits:-
 Interest cannot be provided to account holders like SB account
 It is not suitable for common peoples like money employees peoples
 It can be operated only restricted persons.

3.0 Theoretical background

ABSTRACT:
The banking sector in India has seen a number of changes. And to meet the
challenges of changing needs and perceptions of customers, new regulations over the
years and great advances in technologies, most of the banks have begun to take an
innovative approach towards banking with the objective of creating more value for
customers in the banks. Today we have electronic payment system along with
currency notes. India’s financial sector is moving towards a scenario, where it can
have new instruments along with liquidity and safety. Arrival of card, introduction of
Electronic Clearing Service (ECS) in late 1990’s , introduction of Electronic Funds
Transfer, Real Time Gross Settlement (RTGS), introduction of NEFT (National
Electronic Funds Transfer), mobile banking, online banking are the various
innovations in banking. Banks are investing heavily in adoption of these innovations.
INTRODUCTION:
Banking in India has been through a long journey. Indian Banking Sector has
witnessed a number of changes. In the 1990s, the banking sector in India saw greater
emphasis being placed on technology and innovation. Banks began to use technology
to provide better quality of services at greater speed. Internet banking and mobile
banking made it convenient for customers to do their banking from geographically
diverse places. Now all the banks have started with the concept of multi- channels,
like ATMs, credit cards, debit cards, telephone/mobile banking, internet banking, call
centers, etc. The role of banking is redefined from a mere financial intermediary to
service provider of various financial services under one roof acting like a financial
supermarket. Intense competition among the banks has redefined the concept of the
entire banking system. The banks are looking for new ways not only to attract but also
to retain the customers and gain competitive advantage over their competitors.

Definition of financial innovation:

Financial innovation can be defined as the act of creating and then popularising
new financial instruments as well as new financial technologies, institutions and
markets. It includes institutional, product and process innovation.
"It is quite possible for competence in an inferior activity to become great enough to
exclude superior activities with which an organization has little experience" (Harriott,
Levinthal, and March 1985 cited in March, 1991, p.73).
TYPES OF INNOVATIVE BANKING:
1. E-BANKING :
E-BANKING Enables people to carry out most of their banking transaction
using a safe website which is operated by their respected bank
2. Core Banking :
Knowing customers needs. Corporate Banking Financial services to large
corporate
*Core banking solution
*Depositing and lending of money
*CORE BANKING & Working capital facility for domestic
* Letters of guarantee
* Funding
* Domestic and international payments
* Overdraft facility

3. Corporate Banking :
Fund creating in two ways :• Corporate Finance• M Creating
funds and wealth of clients
4. Investment Banking :
An investment bank is typically a private company that provides various
finance-related and other services to individuals, corporations, and governments
such as raising financial capital by underwriting or acting as the client's agent in
the issuance of securities.
5. Rural Banking :
Provides & regulates credit services for the promotion &development of
rural sector mainly agriculture, SSI, cottageand village industries, handicrafts and
many more.
6. NRI Banking :
FCNR (Foreign Currency Non Resident Account)
* NRO (Non Resident Ordinary Account)
* NRE (Non Resident External Account)
*NRI BANKING This facility is designed for diverse banking
requirements of the vast nri population spread across the globe.
7. Retail Banking :
Refers to banking in which banks execute transaction directly with
individual , rather than corporate banks. It is also known as ‘One stop shop’.
Services

Types of Innovation:
1. Financial Innovation :
Financial innovation can be defined as the act of creating and then
popularizing new financial instruments as well as new financial technologies,
institutions and markets. It includes institutional, product and process innovation.
2. Institutional innovation :
Institutional innovations relate to the creation of new types of financial
firms (such as specialist credit card firms like MBNA, discount broking firms
such as Charles Schwab, internet banks and so on).
3. Production Innovation :
Product innovation relates to new products such as derivatives, securitized
assets, foreign currency mortgages and so on.
4. Process Innovation :
Process innovations relate to new ways of doing financial business
including online banking, phone banking and new ways of implementing
information technology and so on.
5. Spanning the market :

Some types of financial instrument became prominent after
macroeconomic conditions forced investors to be more aware of the need to hedge
certain types of risk.
 Interest rate swaps were developed in the early 1980s after interest rates
skyrocketed

 Credit default swaps were developed in the early 2000s after the recession
beginning in 2001 led to the highest corporate-bond default rate in 2002 since the
Great Depression
Why Innovation/Need Of Innovation In Banking Sector:
1. Regulatory Compliance :
The banking industry is constantly changing. Regulations shift, customer
demands change and the global economy ebbs and flows, creating the need for banks
to be able to adopt quickly in order to stay competitive. It's this tendency for the
banking world to fluctuate that necessitates the finance industry to become as mutable
as possible – in order to survive a continually evolving market and field rapidly
changing customer demands, innovation is key.Let's take a look at some leading
reasons why banks need to fully adopt innovative practices:
2. Regulations Are Always Under Revision :

Innovation is particularly critical to the banking industry as organizations
strive to maintain compliance with regularly changing regulations. This is especially
true when the political climate is in flux as well.
For instance, the Dodd-Frank Act, the federal law enacted in 2010 that
required banks to be more transparent and accountable in the wake of the recession,
has recently come under fire from newly inaugurated President Trump's
administration. While the outcome has yet to be decided, this is a clear example of
how banks need to be capable of shifting focus and changing their in-house policies to
accommodate movements in regulation.
"Banks need to embrace a truly innovative mindset in order to remain
competitive."

3. Technology Makes Banking Faster :

Consumer demand necessitates automation in the banking industry because, in
today's connected world, there is more competition than ever. Banks will need to
provide a seamless transition between products and channels (digital and human)
while enabling customers to self-customize their banking experience.
"In a mobile-first, socially enabled world, customers have become highly

demanding and empowered," wrote Computer World UK contributor Chris Boorman.
"To attract and retain new customers, financial service organizations are increasingly
being asked to build systems that adapt and evolve to customer demands."
Innovative solutions fintech organizations provide have a lot to offer banks in

the way of customer relationships and demand management practices. In addition, it's
often critical from a legal perspective – Boorman cited an incident wherein the Royal
Bank of Scotland was fined 52 million pounds in 2012 for failing to upgrade its
software, leaving millions of people unable to access their bank accounts.
4. The Economy Needs Innovation In Finance :

Small businesses that would otherwise not have a chance to secure loans are
being given an opportunity thanks to innovative solutions. For instance, according to
Banking Technology contributor Katrin Herrling, technology helps small to medium-
sized enterprises that would normally have been declined by bigger banks obtain
funding by accessing more accurate risk assessment tools.
"To unlock additional funding, innovation has to focus on finding better ways
to assess business risk, for example by gaining access to more timely and accurate
transaction data, seizing 'big data' insights or leveraging the rise of cloud accounting
to see 'live' business performance," Herrling wrote. "These innovations are making it
possible for a much broader range of businesses to be funded on terms that are
attractive."

5. Achieve Customer Satisfaction :

Customer satisfaction is most valuable factor in any sector so bank must and
should obey customer satisfaction.
6. To Know The Future Consumer Expectation :

However the consumer’s choice and expectation will go on so bank and any other
financial institution should be able to fulfill them by hook or cook method.
7. compete with others :

Well coming to this point innovation is ongoing process which have no limit and
end to complete it. Any how we are surrounded with the competitive world here
innovation or nothing means loss to the bank so to beat the competitor the bank is
going to take action on innovation prospect of getting new idea to new generation
people.
8. Develop The Economy As Well As Company Good Will :

Bank is going to evaluate every time whenever it require to know their
status that is their bank going on right way or not. So the bank ensure to have
proper direction and guidance to pull the post service to customer there by the n-
number of persons were going to involve to use financial services provided by
any financial sector. There by the individual get financial support for their needs.
And develop himself.

9. To Gain The Customer Belief & Attractant The Customer :

Innovation is prompting many services which have been never seen or heard.
Anyhow customer is looking forward to that kind of banks which make them easy
to deal any financial, personal, economical help and suggestion to him.
However these financial sectored were gaining customer trust by providing them
many schemes and services and acting as mediator like assistant etc… so now a
day’s every banking work is so easy because of its innovative ideas and adoption
of new technology to be serve to a common person.
10.To Encourage Employee By Adopting New Technology :

Innovation help the workers from heavy work burden and this will help them to
have some break from stressful work. So online system make them tension free
coz many of them were using online services rather than offline method.
New innovative method of marketing services used by banking sector :

I. E-banking :
Enables people to carry out most of their banking transaction using a safe website
which is operated by their respected bank. Core banking- it include knowing
customer needs. Depositing and lending of money. Providing core banking
solution.
II. Corporate banking :

It includes providing financial solution to large corporate and MNC's. Mobile
banking- it helps in balance inquiry, fund transfer, cheque book request etc.
Plastic money-Plastic money are the alternative to the cash or standard money, it
is convenient to carry and generic term for all types of bank cards, debit cards,
credit cards, smart cards.

III. NRI banking :

This facility is designed for diverse banking requirements of the vast NRI
population spread across the globe.
IV. Total Branch Automation :

This is one of the latest towards paper less transactions, it is more customer
friendly and flexible that has speed up bank transaction and with less error
possibility.
Marketing Mix Of Banking Sector:

The marketing mix is also help full in innovating or developing the PSPSSN. The
marketing mix of banking sector includes 7 p's that are explained below so that
they can understand their customers better and provide them good services. Well
it could be a way to innovate in other way such as below listed and well explained
as well.

1. Products (Bank Products) :

A. DEPOSITS: Savings, Current, Fixed etc.
B. ADVANCES : 1. Term Loan, 2. Clean Loan, 3.Bills Discounting, 4.Advances,

5. Pre-shipment Finance, 6.Post-shipment finance,
7. Secured and Unsecured lines of credit.
C. Non-fund oriented: Guarantees, and Letter of Credit.
D. International Banking: Letter of Credit and Foreign Currency.

E. CONSULTANCY: a) Investment Counseling, b) Project Counseling,

c) Merchant Banking, d) Tax Consultancy.
F. Miscellaneous: a) Traveler Cheques, b) Credit card,

c) Remittances, d) Collections,
e) Sale of Drafts, f) Standing instructions, and g) Trusteeship.
2. Pricing:
Price-The price mix in the banking sector is nothing but the interest rates charged
by the different banks. This type of pricing is mainly done by banks having unique
or different products or schemes. They usually charge a combination of high and
low prices depending on the customer loyalty as well as the products. This type of
pricing strategy is usually coupled with promotion programmers.
-Going rate pricing
-Mark up pricing
3. Place:
Place mix is the location analysis for banks branches. There are number a factors
affecting the determination of the location of the branch of bank. Like population
characteristics, commercial, proximity of other commercial outlets.
4. Promotion :
Promotion is nothing but making the customer more and more aware of the
services and benefits provided by the bank.
The banks today can use a lot of new technology to communicate to their
customers. Two of the fastest growing modern tools of communicating with the
customers are:
1. Internet Banking
2. Mobile Banking

5. Process:
The process mix constitutes the overall procedure involved in using the services offered
by the bank.
Let's take for example the process for application for a car loan.
Now this mainly involves 3 things.
1. Producing of proper documents
2. Filling up of application form
3. Paying for the initial down payment
6. Physical evidence:
Physical evidence is the overall layout of the place. How the entire bank has been
designed. Physical evidence refers to all those factors that helps make the process
much easier and smoother.
For example in case of a bank the physical evidence would be the placement of
the customer service executive's desk, or the location of the place for depositing
Cheques. It is very necessary the place is designed in such a manner so as to
ensure maximum convenience to the customer and cause no confusion to him.
7. People :
All companies are reliant on the people who run them from front line Sales staff to
the Managing Director. Having the right people is essential because they are as
much a part of your business offering as the products/services you are offering.

Advantages and Disadvantages of Innovation Banking
Advantages:
1. Check account balance and track recent account activities.
2. Transfer money between accounts at any time.
3. Authorizes bill payments.
4. Issue stop payment request.
5. Apply for auto, mortgage, student, personal loans.
6. Receive investment product and services information at finger tips.
7. Saving time and encouraging more innovative ideas to grownup.
8. Increase more working efficiency in any sector in which it was implemented.
9. Entering to modernized technological world.
10. To come over their competitor through their customers satisfaction.
Disadvantages:
1. Need an internet connection to use the e-banking services.
2. Security concern, like ‘hackers’ access your accounts due to every one not aware
of hacking techniques are used by hacker.
3. Must be compatible with computer and have basic knowledge of internet and
computer.
4. It put customer in critical situation when they don’t have idea about new
technology adopted by banks.
5. Solving issue may take above 24 hrs in some cases. Like ATM lost
6. Employee Concerns:
While innovative technology may reduce the dependence on a workforce.
7. Every employee have to be retrained for upcoming technologies.
8. Costly to implement the in large scale area. Like dist.., to dist..,
9. It require separate department for development and innovation.

4.0 Data analysis and interpretation:
1. The Awareness of Respondent towards ATM services.
S. No No. of Respondent Percentage
1 YES 50 100%
2 No 0 0%
Total 50 100%
Source: Field Survey/online survey
The graph showing Awareness of Respondent towards ATM services
No.of Respondant
Yes No
0%
100%
ANALYSES AND INTERPRETATION:

In the above graph we can know that the customer were aware of ATM services and they
have responded respectively. All of the 100% respondent were accepted that they were know
of the service called ATM and they gave more preference to take the ATM services in
respective bank. Now a days every one using ATM services in their daily life. However you
can see that now a day’s ATM is more beneficent than paper money.

2. Showing the source of Information
S. No Mode of Information No of Percentage

Respondent
1 Friends 10 20%
2 Advertisement 20 40%
3 Colleagues 6 12%
4 Other Source 14 28%
Total 50 100%
The Graph Showing the source of Information
PERCENTAGE
50%
40%
40%
28%
30%
20%
20%
12%
10%
0%
Friends Advertisement Colleagues Other Source

It was found that 40% of the respondent were aware about ATM services through
the advertisement and followed by the 28% of respondent were aware about ATM
service through friends and 12% from Colleagues. It is observe the most of respondent
know the ATM services through advertisement. Well we haven’t struggle a lot for this
because very customer we mate they are more friendly than we thought. So we got the
information easily and quickly as possible.
3. Respondent’s Opinion about ATM services
Sl. No Opinion No. of Respondent Percentages
1 Time Saving 32 64%
2 Beneficial when cash is need 08 16%
3 Convenient 10 20%
Total 50 100%
Graph showing Respondent’s Opinion about ATM services
PERCENTAGE
20% Time Saving
Beneficial when cash is

16% need
64% Convenient

From the above table it can be observed that most of the respondent opinion is that it is
timing saving, and 64% of the respondent, opinion that it is convenient about 20% of
the respondent were said to be the above. But 16% of the respondents are the opinion that
ATM services are beneficial when cash is needed.

4. Awareness of Respondent Towards internet banking
S.No Awareness No. Of Respondent Percentage
1 YES 28 56%
2 No 22 44%
Total 50 1005
Awareness of Respondent Towards internet banking
PERCENTAGE
56%
60%
44%
50%
40%
30%
20%
10%
0%
YES No

It was found that the 56 % of the respondent are know the internet banking but
44% of the respondent are the not aware about internet banking service. It observe that the
56% of the respondent have given more preference to take the internet banking services.

5. Awareness of Respondent towards mobile-banking
S. No Awareness No. of Respondent Percentage
1 YES 19 38%
2 No 31 62%
Total 50 100%
Source: Field Survey/online survey.
Awareness of Respondent towards mobile-banking
PERCENTAGE
80% 62%
60% 38%
40%
20%
0%
YES
No

It is that i.e. 62% of respondent is not aware about mobile Banking services, only
38% of respondent are having awareness about mobile banking.

6. Respondents Satisfaction Level Towards Mobile Banking
S. No. Satisfaction No. of Respondents Percentage
1 Satisfied 25 50%
2 Highly satisfied 20 40%
3 Indifferent 5 10%
4 Dissatisfied 0 0%
Total 50 100%
Source: Field Survey/online survey.
Respondents Satisfaction level Towards Mobile Banking Service
PERCENTAGE
60%
50%
50%
40%
40%
30%
20%
10%
10%
0%
0%
Satisfied Highly satisfied Indifferent Dissatisfied

It was found that 50% of the respondents are satisfied with the mobile banking services
provided by the Karnataka bank followed by 40% of respondents are satisfied and
10%of the respondents indifferent. It was observed that the most of respondents are very
satisfied with the service provided by the Karnataka Bank and only 10% of respondents
is low satisfied.

7. CAPITAL TOTAL DEPOSITS IN PSPSSN.
TABLE SHOWING TOTAL DEPOSITS
Year 2013 2014 2015 2016 2017

74295061.14 71064324.01 62654858.45 82141066.36 91081250.27
Total
deposits
CHART SHOWING TOTAL DEPOSITS
Total Deposits
100000000 91081250.27
90000000 82141066.36
80000000 74295061.14
71064324.01
70000000 62654858.45
60000000
50000000
40000000
30000000
20000000
10000000
0
2013 2014 2015 2016 2017

As showing in the above graph in the 2013- 74295061.14 and in the year of 2016 - Rs
82141066 and also in the year of 2017-Rs 91081250.27 as comparing to gradually
improved in total deposit of the bank. Well bank has got huge decrease in the year of 2014 &
2015 by some extent. It’s deposits were gorgeously increased in the past 2 years.

8. RESERVES IN PSPSSN BANK
Year 2013 2014 2015 2016 2017
Reserv 3449819.8 5382478.8 790759.3 10622245.4 13558139.4

e 8 8 4 7 5
CHART SHOWING RESERVE
RESERVE
13558139.45
10622245.47
5382478.88
3449819.88
790759.34
2013 2014 2015 2016 2017

As we can see in above graph year by year it’s also gradually increased as in the year of
2013 Rs 3449819.88 , 2014 Rs 5382478.88, 2016 Rs 10622245.47 and in the last year of
2017 Rs 13558139.42. was increased but in 2015- Rs 7907595.34 there was no means less
reserve have been made due to some in appropriate reasons.

9. BARROWINGS
TABLE SHOWING OTHER LIABILITIES IN PSPSSN
Year 2013 2014 2015 2016 2017

Other 4143744.00 5636624.00 5667685.00 5937546.00 6614929.00
liability
CHART SHOWING OTHER LIABILITIES
Other Liabilities
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4 5
Other liability 4143744 5636624 5667685 5937546 6614929
Year 2013 2014 2015 2016 2017

From the above table showing that other liabilities how the responsibilities changed
in the bank as 2013- Rs 41434744, 2014- Rs 5636624, 2015- Rs5667685, 2016-Rs
5937546 and last year 2017 it’s Rs6614929. Banks other liabilities were increased in the
percentage of 2% by year to year.

10. TABLE SHOWING CASH IN HAND IN PSPSSN BANK
Year 2013 2014 2015 2016 2017

Cash 832513.00 1204258.00 968568.00 481058.41 575718.32
in
hand
CHART SHOWING CASH IN HAND
Cash in hand
2017 575718.32
2016 981058.41
2015 968568
2014 1204258
2013 832513
0 200000 400000 600000 800000 1000000 1200000 1400000

From the above table it’s clearly shows that the cash In hand of PSPSSN has been
improved by in the year of 2013 Rs 832513 in the year of 2014 Rs 1204258, 2015 Rs
968568 and 2016 Rs 981058.41 but in the last year 2017 Rs 575718.32. there is less cash
in hand was mentioned.

11.TABLE SHOWING BALANCE WITH BANK
Year 2013 2014 2015 2016 2017

Bal 6684142.88 602158821 6513433.98 15298830.04 658782.02
with
bank
CHART SHOWING BALANCE WITH BANK
Balance with bank
2017 658782.02
2016 15298830.04
2015 6513433.98
2014 602158821
2013 6684142.88
0 200000000 400000000 600000000 800000000

From the above graph shows that year by year has been sharply decreased by year of
2013 Rs 6684142.88, 2015 Rs 602158821, 2016 Rs 15298830.04 and the last year 2017
Rs 6158782.02 was made. But in 2014 there was high amount of balance was
maintained in the other bank.

12.INVESTMENTS
CHART SHOWING LOANCE AND ADVANCES
Year 2013 2014 2015 2016 2017

Loans 71951551.14 71727127.14 67263639.28 73716442.78 90376679
.78
and
advances
SHOWING LOANCE AND ADVANCES
90376679.78
Loance and
73716442.78
71951551.14
71727127.14
67263639.28
advances
2013 2014 2015 2016 2017

Loance and advances71951551.14
71727127.14
67263639.28
73716442.78
90376679.78

From the above table it denotes the investments in PSPSSN bank has been
substantially increased by from the year of 2013 Rs 71951551.14 2014 Rs
71727127.14 2016 Rs73716442.78 2017 Rs 90376679.78 but in the year 2015 Rs
67263639.28 was made.

13.FIXED ASSETS
CHART SHOWING FIXED ASSETS
Year 2013 2014 2015 2016 2017

Fixed 970315.00 2142498 1042834.00 1000811.50 1238963.50
assets
SHOWING FIXED ASSETS
Fixed assets
2017
2016
2015
2014
2013
0 500000 1000000 1500000 2000000 2500000
2013 2014 2015 2016 2017

Fixed assets 970315 2142498 1042834 1000811.5 1238963.5

The graph it clearly shows that fixed assets of PSPSSN is maintained constant level
during the following years 2013 Rs 970315 ,2015 Rs 1042834 , 2016 Rs 1000811.50
and last year 2017 Rs 1238963.50 in the year 2014 Rs 2142498 was made. There was
minor change in the fixed assets compared to last 3 previous year.

14.OTHER ASSETS
CHART SHOWING OTHER ASSETS
Year 2013 2014 2015 2016 2017

4620. 22745 96004.60 45608.60 6126.60
Other assets
00
SHOWING OTHER ASSETS
Other assets
2017 2017, 6126.6
2016 2016, 45608.6
2015 2015, 96004.6
2014 2014, 22745
2013 2013, 4620
0 20000 40000 60000 80000 100000 120000

From the above graph shows that other assets of PSPSSN has been sharply increased
by year 2013 Rs 4620, 2014 Rs 22745, 2015 Rs 96004 but the other assets were
decreased in the year 2016 45608.60 and in the last year 2017 was Rs 6126.

5.0 Findings, suggestions, conclusion:

5.1 FINDINGS:
According to the survey conducted the following findings were made,
1. The total business of bank increased during year by year.
2. Co-ordination among the employees is very good.
3. The bank will also provide loan for the self employed persons.
4. Bank will providing to the Loans Such As, Loan On Deposits ,Gold Loans, Staff
Salary Loan, Vehicle Loan, Housing Loan, Business Loan, etc..
5. Profit is not a main intention of the bank but giving more services to the society
by providing various financial services.
6. The responding to the customers is excellences.
5.2 SUGGESTIONS:
After seeing of PUJJYA SHARANABASAVESWARA PATTINA SOUHARDA

SAHAKARI NIYAMITA no doubt the bank moving effectively and efficiently in all the
cases, it will not be worth in giving any specific suggestion because the banks
management is quite good. But still after my detailed study, I wish to suggest a few
things which I have noticed during the study. Those are as follows:
1. The bank should utilize the new advanced technology and enter new markets this
increase new profit opportunities.
2. The bank should try to increase the rate of interest for the deposit of the customers.
It will increase the investors.
3. Bank should try to give the clear information about deposits and loans because of
most the customers are uneducated in our country.
4. Bank should maintain close interaction with the borrowers. This would help to ensure
timely repayments.

5.3 CONCLUSION:
Innovations in Banking System in Pujjya Sharanabasaveshwara Pattina Souhardha
Sahakari Niyamita in Maski. Is very essential in every organization to accept the deposits
and lending the money to customers? Without financial sources banks are cannot run
their financial activities in bank. By accepting the finance from financial sources bank
financial position will increase, when it is increase they should try to develop their
customer’s life in economically by providing loans in less interest. Maski Pujjya
Sharanabasaveshwara Pattina Souhardha Sahakari Niyamita in Maski. Will give most
preference to business loans because this area peoples depends on business, and bank
should charge some percent interest on that loan by accepting that interest they can
improve their financial position. Finally innovations in banking system are much needed
in every institution and person to do any activities in society.

BIBLIOGRAPHY
MATERIALS:
 Financial statement of past 5 years.
 Pujjya Sharanabasaveshwara Patina Souhardha Sahakari Ni.., Bank booklets.
WEBSITE:
1) www.icafi.com
2) www.serveycouncil.co.in
3) www.google.co.in
4) https://mail.google.com/mail/u/0/?tab=wm#inbox/162c29ae2fdaaa52
5) http://shodhganga.inflibnet.ac.in/bitstream/10603/97023/10/10_chapter3.pdf
6) https://www.rbi.org.in/scripts/fun_urban.aspx
EXPERTS ADVICES (GUIDE) :

Below listed persons are the professional in commerce, science, management
etc.. these pro were help me out to clear all my doubts and they upgraded my
knowledge by their guidance.
1. Rashmi singh
2. Chidanand yelli
3. kannya kumara
4. Basavaraj Tontnal

QUESTIONNAIRE:
I am ANNAPURNA. Pursing in M.Com 4th semester department of commerce

DEVANAAMPRIYA ASHOKA GOVT UG & PG COLLEGE MASKI University
Gulbarga undergoing the project as per my course curriculum my objective of this
project is to study about “INNOVATION IN BANKING SYSTEM IN PSPSSN-
MASKI”. So kindly request you to cooperate in filling the questionnaire to make my
project successful.(Bank staff only)
“A case study of INNOVATION IN BANKING SYSTEM IN PSPSSN in Maski ”
1. When the PSPSSN was started

Ans: 11th February 2008
2. What is mean by Innovation

Ans: something new invention in the market and society.
3. Expand ATM
Ans: Automatic teller Machine.
4. Expand NEFT
Ans: Net Electronic Fund Transfer
5. Expand RTGS
Ans: Real Time Gross settlement.
6. What is Devanampriya Cash Certificate?

Ans: It is a double money scheme.

7. Who is the father of the co-operative society?

Ans: Siddana gowda kanaginahal.
8. Who is the president of PSPSSN

Ans: Andanappa Gundalli.
9. What are the social activities of PSPSSN

Ans: Blood donation.
Education funds.
Cultural activities
10. What is the interest rate gold loan

Ans: 15%.
11. Special facilities of PSPSSN

Ans:
 Savings bank account
 Fixed deposit
 Demand Draft
 ATM
 RTGS and etc.
12. What is the interest rate of pigmy deposit

Ans: 12%.
13. What is the principle of co-operative society ?

Ans: one for all and all for one.

14. Are you aware the services provided by this bank ?

Ans: Yes
15. What is the main difference between Savings bank account and current account
Ans: In Sb account bankers will give or charge minimum interest rate 3-4%
But in Current Account interest cannot be provide.
16. What is the main future plan of PSPSSN

Ans: Society planed to establish two or more branches in coming two years.
17. According to PSPSSN bank in which source bank was used effectively in bank?
Ans: Public deposit
18. What are the scheme of demand deposit

Ans: savings bank account and current account.

Innovation in PSBPSSN Maski

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Innovation in PSBPSSN Maski

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INNOVATION IN BANKING SYSTEM IN PSPSSN

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 2

1.2 STATEMENT OF PROBLEM:

The most important function of modern of banking is the lending of funds.

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 3

NEED FOR THE STUDY:

1.3 OBJECTIVES OF THE STUDY:

1.4 SCOPE OF THE STUDY:

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 4

1.5 RESEARCH AND METHODOLOGY:

1. Bank booklets, records

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 5

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 6

2.0 INTRODUCTION OF CO-OPERATIVE

Urban Co-Operative Movement - A Profile:

Co-operative endeavor is not an alien phenomenon to India. Kautiliya, in his

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 7

Definition Of Co-Operative Bank :

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 8

Democratic member control:

Profit is usually allocated to members either through a patronage dividend, which

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 9

Brief History of Urban Co-operative Banks in India

Cooperative societies are based on the principles of cooperation, - mutual help,

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 10

Urban credit movement in India:

The erstwhile Madras presidency had organized co-operative undertakings in

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 11

Madras Government took some pioneering effort in the initiation of co-

A number of urban credit societies were organized in the erstwhile provinces

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 12

FATHER OF CO-OPERATIVE SOCIETY

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 13

Objectives And Functions Of Ucbs:

Functions of Co-Operative Society:

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 14

Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Niyamita

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 15

PSPSSN Providing “SERVICE WITH SMILE”

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 16

Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Niyamita with head office at

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 17

MISION OF THE BANK:

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 18

ORGANIZATION STRUCTURE OF PSPSSN

CASHIER MANAGER CLERKS

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 19

The board of Directors of the SPSSN Maski consists of the following

DIRECTOR DIRECTOR DIRECTOR

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 20

Amaramma V.Durga Ramesh Virapur Shivaprasad

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 21

The area of network:

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 22

Schemes offered by PSPSSN :

1. Schemes Of Demand Deposit :

2. Scheme of term deposit :

b) Devanampriya cash certificate:

C) Staff Security Deposit:

d) Samruddhi Pigmy deposit :

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 23

3. LOANS SCHEMES OF PSPSSN

e) surety loans/Surety bonds :

DEVANAMPRIYA ASHOKA GOVT. FIRST GRADE UG & PG COLLEGE-MASKI Page 24