PRESENTED BY:PREETY BANSAL BBA 5TH SEM UID 22116116

Customers viewpoint for Credit Policy of Cooperative Bank and Study of the Recovery Procedure

FLOW OF THE PRESENTATION

Introduction Co-operative Bank

Terminology (loans & credit facilities provided by

bank) Objectives of the study Data analysis and interpretation Recovery of loan Recommendations and Suggestions Conclusion

INTRODUCTION TO CO-POPRATIVE BANK

A Co-operative bank as its name indicates is an

institution consisting of numbers of individuals who join together to pool their surplus saving for the purpose of eliminating the profit of the bankers or money lenders with a view to distributing same amongst deposit and borrowers.

TERMINOLOGIES
(LOANS AND CREDIT FACILITIES PROVIDED BY BANK)
WHAT IS CREDIT FACILITY?

Unlike personal loans (where people borrowing the funds and the collateral are not likely to change), loans in the world of business require additional flexibility in order to meet the needs of the business as well as satisfy the requirement of the lender

VARIOUS TYPES OF LOAN FACILITIES

PERSONAL LOAN

HOME LOAN

LOAN FOR PURCHAS E OR CONSTRU CTION

EDUCAT ION LOAN

VARIOUS TYPES OF LOANS

VEHICL E LOAN (for persona l use)

OTHER LOAN FACILITY

VEHICL E LOAN (for commer cial use)

OBJECTIVES OF STUDY
The objective of research is as follows: First objective is to find out various loan schemes provided by the bank. To learn various aspects of loan provided by bank. To know the problem faced by customers when obtaining the loan.

RESEARCH/TRAINING METHODOLOGY
TITAL:-Title of study is Customers viewpoint for Credit Policy of Co-operative Bank and Study of the Recovery Procedure DURATION:-Duration of project is 45 days from 25th June to 10th august.

SAMPLE SIZE:- 50 Respondents

FORMAT:- The report is exploratory and descriptive in nature. This report is going to describe various loans provided by Co-operative Bank Bathinda hence it is a descriptive in nature but it suggests some important points to improve the services of the bank so it is exploratory in nature also.

DATA:- Data used is primary as well as secondary in this project.

SOURCE:-Main source for the primary data for the project was my face-to-face conversation. Secondary data for the base of the project ,I collected from annual report of bank, bank pamphlets and internet etc.

SCOPE OF STUDY
Research study could give an idea of network expansion for

capturing more market and customer with better services and lower cost without compromising with quality. In future customer requirement could add with the product and services for getting the edge over competitors. Different parameters could be used for the purpose of new products with extra benefits which are required by the customers. Factors which are responsible for the performance of the bank can also be used for the modification of the strategy and product for being more profitable.

DATA ANALYSIS AND INTERPRETATION

Q1. Are you aware of various credit facilities of banks?

Yes
No

46
4

92%
8%

Q2. Which banks name comes to your mind first while availing credit facility?
a) COOPERATIVE BANK b) PNB BANK c) SBI 60% 10% 24% 30 5 12

d) HDFC BANK

6%

Q3. Are you availing credit facility from any bank?

Yes No 40 10 80% 20%

Q4. If yes, from which bank you are availing credit facility?
1 2 3 4 Co-operative Bank PNB Bank HDFC Bank SBI Bank 35 15 0 0 87% 13% 0% 0%

Q5.Since when you are availing this facility?

a) More than 3 year b) 2-3 years c) 1-2 years d) Less than 1 year 40 3 3 4 80% 6% 6% 8%

more then 3 year 2-3 year 1-2 year less then 1 year

Q6. Are you satisfied with your Co-operative Bank?

Yes No 45 5 90% 10%

yes no

Q7. If no, then why?

a) INTEREST RATE b) SERVICES C) EMPLOYEE BEHAVIOR 50% 25% 25% 20 10 10

Q8. According to you what is the main obstacle while getting finance under various credit facilities?
a)Security b)Document Requirement c)Red Tapism d)Guarantee requirement e)Attitude of bank employees 8 7 0 13 7 23% 20% 0% 37% 20%

Q9. According to you arrange the parameters in the Ascending order of their preference?
a) Interest rate b) Collateral Security c) Services d) Attitude of field Officer e) Document required f) Validity period 40% 24% 14% 12% 6% 4% 14 8 5 4 2 2
a) Interest Rate 4% 6% 12% 40% 14% 24% d) Attitude of field Officer e) Document required f) Validity period b) Collateral Security c) Services

Q10. Have you heard about Co-operative Bank Card?

a) YES b) NO 4% 96% 2 48

RECOVERY OD LOANS
Whenever the borrower commits default in repayment of loan amount, immediately the bank should serve ' Preliminary Notices' on the principal borrower and the sureties advising them to repay the amount of overdue with interest etc. Such Preliminary Notices should invariably mention information which is of factual nature relating to Amount of loan sanctioned. Date of sanction of loan. Names of the sureties. Amount of the loan sanctioned.

Amount of over dues with interest etc. on a particular date.

If borrower fails to discharge the liability, secured creditor has the following options

Take possession of secured asset Take over the management of the business of the borrower including The right to transfer by way of lease, sale, assignment, etc. The said rights must be exercised only where substantial part of business of borrower is held as security for the debt. Appoint a manager to manage the security asset taken over. Issue notice to persons who acquired the secured asset from the borrower or from whom money is due. The CMM( chief metropolitan magistrate)or DM (District
magistrate) is empowered even to use force necessary for taking steps towards securing compliance

RECOMMENDATIONS AND SUGGETIONS

More mass awareness campaigns should be organized in order to enhance market share of bank. So Bank should concentrate on its advertisement itself. Bank should refocus on its interest rate as responded by people. Periodic review of the interest rate should be done.

There should be computerized system in the bank as it will reduce the time wastage of manual work and will lead to the better performance of the bank.
Training of the employees should be there to meet the needs of the time. Proper posting of the staff should be done. Customers satisfaction must be the top priority of the bank. Communication gap within the bank and with the head-office should be reduced. Infrastructure facilities should be provided to the branch of Co-operative Bank

, as it is catering to the 5-6 nearby villages

CONCLUSION
The study concludes that Co-operative Bank, which was established for mainly for the service of rural sector, still is not on the line to its goal. Some of the Co-operative Bank are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. But there is shortage of staff in this bank and the traditional manual banking which is affecting the business and customer services. People are still unaware of the services provided by the Co-operative Bank due to lack of advertisement. In this way, by keeping in mind the certain shortcomings, appropriate measures to overcome them should be adopted. So that the real purpose of the Co-operative Bank must be realized with a competitive advantage and the gap between the customer perception of the Cooperative Bank and the other private and public sector bank, can be reduced