Project Report Evaluation

It is to certify that Ms Bharati of MBA III Sem. has undergone summer training at
Jhalawar Central Cooperative Bank her title for the project was A Study of Banking
And Bank as an Investment Destination
I/ We have evaluated the project report and her Project work is satisfactory.

Signature of External examiner

Signature of Internal examiner

Date:

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1

PREFACE
Management of Modern business requires an opportunity of multidisciplinary
concept and in depth knowledge of specific analytical tools, geared to the solution the
real life problems. No doubt every real situation is unique but a set of theoretical tools
of knowledge, itself based on empirical foundation can help in developing the
mechanism for handling such situation. So the MBA curriculum has been desired to
provide to the future manager sample practical exposures to the business world.
Summer training is essential for the fulfilment of MBA curriculum. It provides an
opportunity to the student to understand the industry with special emphasis on the
development of skills in analysing interpreting practical problems through application of
management.
The essential aim of management should be to assist management in decision
making and improving the efficiency of the organisation.

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2

Acknowledgement

I express my sincere thanks to my project guide, Mr. Virendra Kumar Saksena

Senior manager of Planning and development of Jhalawar Central Co-operative Bank,
for guiding me right from the inception till the successful completion of the project. I
sincerely acknowledge him for extending their valuable guidance, support for literature,
critical reviews of project and the report and above all the moral support he had
provided to me with all stages of this project.
I would also like to thank the supporting staff of Jhalawar central Co-operative Bank for
their help and cooperation throughout our project.

(Bharati nama)

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3

TABLE OF CONTENTS
CHAPTER 1 - Co-operative banks Profile

CHAPTER 2 - Project Profile

32

CHAPTER 3- Banking Activity

35

CHAPTER 4- Comparative Data Analysis of Banking

40

Products
CHAPTER 5- Research Methodology & Consumer Data

45

Analysis
CHAPTER 6- Interpretation of Analysis

55

CHAPTER 7- Recommendation & suggestion

56

CHAPTER 8 - Limitations of Bank

57

CHAPTER 9- Conclusion

58

Appendix

60
Bibliography

61

CHAPTER -1
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4

Co-operative Bank Profile

Introduction to co-operative Bank
Introduction to Reserve Bank of India
Profile of Rajasthan co-operative Bank
Co-operative Banks services

1) INTRODUCTION OF CO-OPERATIVE BANK

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5

The Co-operative banks are an important constituent of the Indian

Financial System, judging by the role assigned to them, the expectations they are
supposed to fulfill, their number, and the number of offices they operate. The cooperative movement originated in the West, but the importance that such banks
have assumed in India is rarely paralleled anywhere else in the world. Their role
in rural financing continues to be important even today, and their business in the
urban areas also has increased phenomenally in recent years mainly due to the
sharp increase in the number of primary co-operative banks. Co-operative bank
regulated by Reserve Bank of India, NABARD & Apex bank.

The co-operative banks in rural areas mainly finance agricultural

based activities including farming, cattle, milk, hatchery, personal finance etc.
along with some small scale industries and self-employment driven activities, the
co-operative banks in urban areas mainly finance various categories of people for
self-employment, industries, small scale units, home finance, consumer finance,
personal finance, etc. Though registered under the Co-operative Societies Act of
the Respective States the banking related activities of the co-operative banks are
also regulated by the Reserve Bank of India. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

2. Introduction of Reserve Bank of India

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6

The Reserve Bank of India was established on April 1, 1935 in accordance

with the provisions of the Reserve Bank of India Act, 1934. The Central Office of
the Reserve Bank was initially established in Calcutta but was permanently
moved to Mumbai in 1937. The Central Office is where the Governor sits and
where policies are formulated. Though originally privately owned, since
nationalization in 1949, the Reserve Bank is fully owned by the Government of
India.

Main Functions
Monetary Authority:
Formulates implements and monitors the monetary policy.
Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.

Regulator and supervisor of the financial system:

Prescribes broad parameters of banking operations within which the
country's banking and financial system functions.

Objective: maintain public confidence in the system, protect

depositors' interest and provide cost-effective banking services to the

public.

Manager of Foreign Exchange

Manages the Foreign Exchange Management Act, 1999.
Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.

Issuer of currency:

Issues and exchanges or destroys currency and coins not fit for
circulation.

Objective: to give the public adequate quantity of supplies of currency

notes and coins and in good quality.

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7

Developmental role
Performs a wide range of promotional functions to support national
objectives.

Related Functions
Banker to the Government: performs merchant banking function for the
central and the state governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.

3. Profile of Rajasthan State Co-operative Bank

Establishment of Rajasthan State Co-operative Bank
The Rajasthan State Cooperative Bank Ltd.(RSCB) was established &
registered under Rajasthan Cooperative Societies Act on 14th October, 1953. It
is an Apex institution of the District Central Cooperative Banks (DCCBs)
functioning in the state. The governance of village level Primary Agriculture
Cooperative Societies, District Central Cooperative Banks & RSCB is ensured
by elected board through a democratic election system under The Rajasthan
Cooperative Societies Act.

The Jhalawar central co-operative bank was

registered on 22 March 1957 (Registration No. 319/O) and started its banking
business from 23 March 1957.
RSCB has successfully completed more than five decades of services to
the state of Rajasthan in

general and to the rural and farming community in

particular. The bank has shifted it's new Head-Office premises at Tonk Road
Jaipur. The bank was established to provide short term agriculture loan for
agricultural, rural development, non-agricultural loans, employment oriented
schemes and short term loans. The bank has an image at national level and it
has been honored several times.

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MISSION STATEMENT
Co-operative Bank Corporate Mission Is to Become A Strong And
Competitive Cooperative Banking Network Which Offers Innovative Financial
Product Along with Varied Range Of Services To Serve Rural Masses With
Rejuvenated Short-Term Cooperative Credit Structure To Serve The People Of
Rajasthan.

NETWORK
In order to achieve the objectives of the Cooperatives, an extensive network is available to cater the needs of rural masses at their door-step with a
three tier short-term cooperative credit delivery system.
At the Apex level, Rajasthan State Cooperative Bank (RSCB) with its 5
Regional and 8 local (Jaipur) Branches in the State.
At the District level 29 DCCBs covering 33 Districts of the State having
400 Branches.
At the grass-root level 5255 PACS/LAMPS which covers 100% of the
geographical area of the state, i.e., 42955 villages.
Out of total 53.64 lacks cultivators in the state, about 42.40 lacks are the
members of PACS/LAMPS, of which 21.13 lacks are borrowing members
of the societies for the year 2008-09.
Creating innovative financial products for the poorest of the poor
Personal accidental insurance scheme
Crop insurance scheme
KISAN Credit card
Commercial loan scheme
NREGA

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9

4. Co-operative Banks services

PRIMARY AGRI. COOPERATIVE CREDIT SOCIETIES (PACS)
PACS are the backbone of Short-term Cooperative Credit Structure. Out
of 5255 PACS/LAMPS in the state, 5088 PACS advanced loan to their members
during 2007-2008 and 4783 PACS had
Outstanding loans exceeding Rs.10.00 lacks as on 31.3.2008. The
Working capital of PACS as on 31.3.2008 stood at Rs.4181.33 crores and 2673
PACS working as Mini Bank were collecting deposits from their members. Total
deposits of these Mini Banks stood at Rs. 505.35 crores as on 31.3.2009. 3739
PACS were in profit as on 31.3.2008 and it is expected that more than 4828
PACS would have booked profit as on 31.3.2010 which is indicative of their
sustainable viability

DIVERSIFICATION OF LOAN & DIPOSITS PORTFOLIO

In last few years concerted efforts have been made to diversify loan
portfolio so as to provide an opportunity to DCCBs to cross subsidize their losses in
traditional crop loan business. Consequent to above deliberated efforts, DCCBs
have been able to develop their investment portfolio over a period of time. In this
endeavor NABARD has introduced lots of new schemes vise; water harvesting
structure, organic farming, agriculture-clinic / agribusiness centers, aromatic and
medicinal plantation, onion storage structure, horticulture, self-help groups, house
building, swarojgar credit card etc. for which DCCBs can avail refinance from
NABARD and can further diversify their farm and non-farm investment portfolio. Apex
Bank on its part has been pursuing DCCBs to finance for innovative activities, the
sole purpose of which is to diversify the loan portfolio of these banks and to facilitate
economic development through creation of assets in the rural areas of the state.

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1. TYPES OF DEPOSIT
2. TYPES OF COMMERCIAL LOAN

1. PES OF DEPOSIT
Saving Account
Current Account
Fixed Account
Recurring Deposit Account
2. TYPES OF COMMERCIAL LOAN
Personal Loans.
Gyan Sagar Educational Loans.
Home Loan
Vehicle Loans.
Mortgage Loan
Industrial Loan
Loan Against Security
Hotel/Motel/Restaurant Loan Scheme
Micro Finance
Sahakar Tex Bachat Yojana
Sahakar Sugam Credit Cash Scheme
Kisan Credit card Scheme
Krishak Mitra Yojana
Personal Accident Insurance Scheme

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Types of Deposits
Saving Account
General Information
a) Single type of saving a/c
b) Low opening charge
c) Various Banking facilities like ATM, FD Sweep, Accidental coverage are not
available
d) Simplest Deposit available to depositor.
e) Easy to Operate. Terms And Condition are simple to understand to facilitate
layman's understanding.
f) Any individual or society to save from their earnings to plan for your future
financial requirements can open our Saving Account
g) Your deposit is insured by DICGC.
h) Option for money withdrawal by withdrawal forms or by cheque.
i) Your savings remain liquid, safe and also earn moderate interest @ of 3.5%
p.a., compounded half yearly.
j) You can give various types of standing instructions like transferring to fixed
deposit accounts at regular intervals.
k) An average quarterly balance of Rs. 5,000 only.
l) Interest is payable half-yearly.
m) Minimum balance Rs.1000 for Saving Account with Cheque book and Rs.500
for saving account without cheque book facility.
n) Minor not below 14 years of age can also open an independent savings
account without Cheque book facility.

Eligibility
a) Resident Indian, Self Help Group or a Co-operative Society.

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12

Facility
a) You can give various types of standing instructions like transferring of fund to
fixed deposit accounts at regular intervals, payment of locker rent with our bank's
b)
c)
d)
e)
f)

branches and other utility bills.

Nomination facility is available.
Quarterly Statement of Account at your doorstep.
Free signature verification as per bank's norm.
Can open single or jointly with any other person.
ECS debit/credit.

Current Account
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13

General Information
a)
b)
c)
d)

Low opening charge-3000

Only local cheque book are given
Stop payment charges & incidental charges applicable
Current Deposits Account can be opened by sole-proprietary / partnership
firm, private and public limited companies, institutions, trusts, individuals,

societies etc.
e) Unlimited number of payments and receipts.
f) Overdraft facility.
g) Low minimum balance of Rs. 3000 only.

Facility
a) You can give various types of standing instructions like transferring of fund to
fixed deposit accounts at regular intervals, payment of locker rent with our bank's
b)
c)
d)
e)
f)

branches and other utility bills.

Nomination facility is available.
Free signature verification as per bank's norm.
Free Balance Certificate once in a month.
Free monthly statement of account as per bank's norms.
ECS debit/credit.

Eligibility
Any sole-proprietary / partnership firm, private and public limited companies,
institutions, trusts, individuals, NGO, societies can open current Account.

Fixed Account
General Information

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14

a) An investment of your surplus funds or to create a buffer fund for your future
requirements like children's education/marriage, to buy a car or for a dream
holiday. You will find a product that suits your requirement in our entire branch.
b) Open a savings Deposits account and place funds in FLEXI Deposit scheme,
wherein term is not fixed and provides liquidity as well as benefits of higher
returns.
c) Deposit tenure minimum 15 days and maximum 60 months.
d) Interest payable depending on tenure of deposit on monthly/quarterly basis or on
maturity.

Interest Rate
a) On pre-mature withdrawal of deposited amount interest will be calculated at
1% below the rate applicable for completed period of deposit.
Service Charges
a) Issuance of Duplicate FDR Rs.25

Eligibility
a) Resident Indian, Companies, or a Co-operative Society. Societies, Trust, Firms,
SHG's.
Facility
a) You can give standing instructions like transferring of interest earned to an
account at regular intervals.
b) The minimum balance of deposit is Rs.1000.
c) Loans against deposits available up-to 90% of deposits available.
d) Nomination Facility - Available.

Serial

Fixed Deposit

Below Rs.15

Rs.15 Lakh &

no.

Period

Lakh (%p.a.)

above to Below
Rs.1.00 Crores
(%p.a.)

7 to 14 Days

15 to 29 Days

3.5%
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15

1.5%
3.00%

30 to 45 Days

3.5%

3.00%

46 to 90 Days

4.25%

4.25%

91 to 180 Days

5.5%

5.5%

181 days to 1 year

6%

6%

Over 1 year to 2

6.75%

6.5%

7%

7%

7.25%

7.25%

7.5%

7.5%

years
8

Over 2 year to 3
years

Over 3 year to 5
years

10

Over 5 year to 8
years

b) In case of Senior Citizen i.e. person of 60 years & above and for HUF headed
by a Senior Citizen, an additional interest @0.50% p.a. on FDRs above one
year and for a minimum amount of Rs. 10,000/- shall be applicable on regular
deposits as well as on deposits under Sahakar tax Bachat Yojana.
c) In case of pre matured withdrawal interest payable on such withdrawal of
deposits will be the contract rate or the rate applicable for which the deposit
remain with the bank, whichever is lower, less 1% penalty.

Recurring Deposit Account

General Information
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16

a) Encourages savings habits to save for future necessity like, to create a fund for
your children's education or marriage or to buy a car or for a dream holiday.
b) Recurring deposit is a scheme where depositor commits to deposit a fixed
amount for a fixed period of time (for instance Rs 500 every month for 12
months)and gets a lump- sum amount at the end of defined period. The terms
i.e., fixed amount, interval and fixed the period that is decided at the time of
opening the deposit cannot be modified / altered.
c) High interest rates of interest.
d) Non-applicability of Tax Deduction at Source (TDS).
e) Minimum amount required to open RD account is Rs 100/-, subsequent deposits
in multiples of Rs. 100/-.
f) Deposit tenure minimum 12 months and maximum 60 months.

Interest Rate
a) Interest will be compounded quarterly and paid on maturity.
b) On pre-mature withdrawal of deposited amount interest will be calculated at 1%
below the rate applicable for fixed period of deposit.
c) Interest as per bank circulars at time of opening of Recurring deposit account.

COMMERCIAL LOAN SCHEMES

Ever reducing margin on agricultural lending made diversification need of the time.
Consequent to this concept several loan schemes were launched from time to time
keeping in view the requirement of general public of the state. Most of the schemes
have been adopted by DCCBs, some of them are as under:

1. Gyan Sagar Educational Loan

Products - RSCB Educational Loan
a) Education loan is granted to Indian Nationals for pursuing higher education in
b)
c)
d)
e)
f)
g)

India or abroad where admission has been secured.

Tuition fees payable to college/school.
Hostel Expenses.
Examination/Library/Laboratory fees.
Purchase of Books/Equipment/Instruments/Uniforms.
Purchase of computers considered necessary for completion of course.
Takeover of Education loan of other banks.
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h) Maximum for two children.

Quantum of Loan
a) For studies in India, maximum Rs.6 lacs subject to equivalent amount collateral
security by way of landed property, NSC, KVP and LIC police.
b) Studies abroad, maximum Rs.6 lacs subject to equivalent amount collateral
security by way of landed property, NSC, KVP, and LIC policy.

Disbursement
a) First Year : On the basis of demand letter from the Institute/College/University
b) Second and Subsequent Years: On the basis of demand letter from the
Institute/College/University + proof of passing last qualifying examination.
c) For other expense: purchase bills/Hostel Receipt

Margin Money
a) 10% of the loan advanced.
b) If any amount has paid by the student from his/her sources before sanction of
loan the same will be considered for margin money.

Rate of Interest
a) For loans up to Rs.2 lacs-12% p. a Fixed.
b) For loans above Rs.2 lacs-12.5% p.a. Fixed.
c) Interest will be lived on monthly basis.

Repayment Period
a) Minimum 36 Months and Maximum 60 Months through advance EMI Cheques.

Documents required along with duly completed Application Form.

a)
b)
c)
d)
e)

Borrower related document

Duly filled Education Loan Application Form.
Certificate/Mark sheets of last qualifying examination.
Proof of admission scholarship, studentship etc.
Schedule of expenses for the specified course.
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f) Photographs-2.
g) Borrower's Bank account statement for the last six months.
h) Copy of ITR of last 3 years (for Non-Salaried).
i) Income proof-Last three months Salary Slip/Copy of Form 16 in case salaried
persons.
j) Brief statement of assets and liabilities, of the Co-borrower.
k) KYC documents of borrower(s) as well as Guarantor(s)-PAN card, photo Debit
Card, Arms License, Ration Card of the Applicant, Freedom Fighter Pass,
Employer Identity Card, etc. with the condition that it must contain Name,
Photograph and Signature of holder.
l) Advance EMI Cheque(s),Age proof. Residence Address Proof.

Document related to collateral Property

a) Copy of title documents viz. Sale Agreement, Registry, Allotment Letter/Lease
deed
b) Non-encumbrance certificate.
c) Valuation of the property.

Loan Documentation
Loan Agreement on stamp paper as per bank's norms.
a)
b)
c)
d)
e)

2.

Guarantee deed on stamp paper as per bank's norms.

Demand & time promissory notes.
Letter of continuity., Issuance Certificate
Letter of undertaking in the prescribed format.
Fixed Deposit receipt as per banks norms.

Home Loan
Products - RSCB Home Loan
a) For purchase of built house/flat.
b) For Construction of house on land already purchased.
c) For Purchase of Land and construction of house their own.
d) For Purchase of Land/House through auction by government body such as
Development Authorities, Housing Board and Municipal Bodies.
e) For Purchase House in self-financing schemes/Outright Purchase
Schemes.
f) For takeover from other banks outstanding home loan

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Quantum of Loan
a) With RSCB Home loan, you can get a home loan suited to your needs.
The loan amount depends on your repayment capability and is restricted
to a maximum of 75% of the cost of the property or the cost of construction
as applicable. In case of takeover maximum amount is 100% outstanding
balance. Repayment capacity takes into consideration parameters such as
income, age, number of dependents, spouse's/Sons/Daughter in-laws
income, assets, liabilities, stability, continuity of occupation and savings
history etc.
Rate of Interest
a) Fixed rate of Interest.
b) Interest levied on monthly rest on reducing balance method and added to
principal outstanding.
c) Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50%
for loan amount more than Rs.2,00,000/d) Pre-closure charges @1% of the outstanding loan balance.
Repayment Period
a) Maximum 15 years subject to restriction of age of borrower/date of
retirement

3. Personal Loan
Products - RSCB Personal loan
a) Personal loan 1 lack or 8 times of monthly salary For casual financial
b)
c)
d)
e)

obligations.
For emergency financial requirements.
Faster Processing
Minimum Documentation required
Attractive Interest Rates

Quantum of Loan
a) With RSCB Home loan, you can get a loan up to Rs.1, 00,000/- without
collateral security and Rs.2, 00,000/- with collateral security. Loan amount
is eight times of monthly income in case of salaried persons. In case of
non-salaried persons loan amount is sixty six percent of annual income.
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Rate of Interest
a) Interest rate @13.00% p.a. on monthly rest.
Repayment Period
a) Five years.

4. Mortgage Loan
Products - RSCB Mortgage loan
a) Mortgage Loan provides the owner of residential or commercial property to
leverage on the value of the property.
b) Mortgage Loan is an easy way to unlock the hidden value of your property.
This multi-purpose loan, make available funds at your disposal to use as
you wish to utilize.
c) Mortgage Loan is provided for many personal requirements of the
customer viz. emergent requirements for Expansion of business, house
hold activities, childrens tuition & higher Education fees, religious
ceremony, renovation of home etc.
Quantum of Loan
a) With RSCB Mortgage loan, you can get a loan suited to your needs. The
loan amount depends on your repayment capability and is restricted to a
maximum of 50% of the cost of the property. Repayment capacity takes
into consideration parameters such as income, age, number of
dependents, spouse's/Son's/Daughter in-law's income, assets, liabilities,
stability, continuity of occupation and savings history etc.
Rate of Interest
a) Fixed rate of Interest.
b) Interest levied on monthly rest on reducing balance method and added to
principal outstanding.
c) Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50%
for loan amount more than Rs.2,00,000/d) Pre-closure charges @1% of the outstanding loan balance.
Repayment Period
a) Maximum 10 years subject to restriction of age of borrower/date of
retirement

5. Industrial Loan
Products - RSCB Industrial Loan
a) For establishment of new industrial units in notifies areas.
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b) For procurement of Plant and Machinery for existing units due to

obsolescence of old plant and machinery due technological
advancements.
c) For purchase old plant and machinery for existing industry.
Quantum of Loan
Based on project requirements for following components
a) Land and building.
b) Plant and machinery.
c) Preliminary expenses.
d) Working Capital.
e) Cost of Development.
f) Disbursement
g) As per project appraisal approved by bank.
Rate of Interest
a) Negotiable subject to a minimum of 13% p.a. Fixed
b) Interest will be lived on monthly basis.
Repayment Period
a) Maximum 5 years plus moratorium period

6. Loan Against Security

Product - RSCB loan Against Security
a) The owner doesnt have to sell his securities like NSC/KVP.
b) What all he has to do is pledge his owned securities in favor of bank.
c) A current account will be opened and overdraft limit will be sanctioned.
d) Interest will be charged only on the amount withdrawn and for the time
span utilized.
Quantum of Loan
a) With RSCB Loan against Security, you can get a loan up to 70% of value
determined on the basis of the securities pledged.
Rate of Interest
a) Interest rate @13.00% p.a. on quarterly rest
Repayment Period
a) Maximum period up to the maturity date of the security.

7. Vehicles Loan
Products - RSCB Vehicle Loan
a) Scheme for financing of Commercial vehicles (Bus/Truck).
b) Transport Loan Scheme for Commercial vehicles (Taxi/Auto Rickshaw).
c) Vehicle Loan Scheme Professional and Employees.
d) School College Bus.
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22

Quantum of Loan
For New Vehicles
a) 75% of Vehicle cost for Commercial vehicles (Bus/Truck). Maximum 10
Lacs or twenty months earnings, whichever is less.
b) 80% of Vehicle cost for Transport Loan Scheme for Commercial vehicles
(Taxi/Auto Rickshaw) Maximum 5 Lacs.
c) 85% of Vehicle cost for Professional and Employees. Maximum 5 Lacs or
twenty months income whichever is less, for salaried persons. In case of
professional 1.5 times of their two years annual average income.
For Old Vehicles
a) 50% of value of Vehicle assessed by authorized value.
Disbursement
a) 1 or 2 installments as applicable.
Margin Money
For New Vehicles
a) 25% of Vehicle cost for Commercial vehicles (Bus/Truck).
b) 25% of Vehicle cost for Commercial vehicles (Bus/Truck).
c) 15% of Vehicle cost for Professional and Employees.
For Old Vehicles
a) 50% of value of Vehicle assessed by authorized value.
Rate of Interest
a) For loans up to Rs.2 lacs - 12% p.a. Fixed.
b) For loans above Rs.2 lacs - 12.50% p.a. Fixed
c) Interest will be lived on monthly basis.
Repayment Period
a) Minimum 36 Months and Maximum 84 Months through advance EMI
cheques.

8.

Hotel/Motel/Restaurant Loan Scheme

a) To cater to the increasing need of hotels in the state due to increase in
the number of tourists coming to the state.
b) To promote hotel industry in Rajasthan at the places of where tourists are
more interested.
Products - Hotel/Motel/Restaurant Loan Scheme
a) To construct new Hotel/Motel/Restaurant.
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23

b) To make additions/alterations in the existing Hotel/Motel/Restaurant.

c) To provide essential amenities in the existing Hotel/Motel/Restaurant.
Quantum of Loan
a) Up to 75% of cost of project subject to a maximum of Rs.10 lacs.
Disbursement
a) Operative period - Three Years.
Rate of Interest
a) 12% p.a. Fixed.
b) Interest will be lived on monthly basis.
Repayment Period
a) Maximum 6 Months.

Eligibility
a) Any individual having experience in this field.
b) Any individual having license from RTDC.
c) Any individual having license to run the guest house.

9. Clinic/Diagnostic/Indoor Hospital Loan Scheme

To promote health services in the state.
To create employment opportunities.
To promote specialist health care homes.
Products - Clinic/Diagnostic/Indoor Hospital Loan Scheme
a) To construct building.
b) To purchase medical instruments such as X-Ray Machine, Sonography
Machine, ECG equipments and other machine used in
laboratories/diagnostic centers.
c) To purchase beds, side racks, and furnitures, mattresses etc. To purchase
Ambulance etc.
Quantum of Loan
a) Up to 75% of cost of project subject to a maximum of Rs.10 lacs.
Disbursement
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24

a)
b)
c)
d)

Within one year of sanction.

Can be extended by six months.
In stages, depending upon construction progress.
For equipments/ machines/ furnitures etc. direct to the supplier including
margin money in one installment.

Rate of Interest
a) 13% levied on monthly basis.
Repayment Period
a) 80 months for clinics/diagnostic centers.
b) 120 months for indoor hospitals.
c) Above period includes moratorium period also.

Security
a) Collateral security to the extent of twice the loan amount under equities
mortgage.
b) All assets created out of loan shall be hypothecated to the bank.
c) Personal guarantee of two persons having financial worth.
Processing Charges
a) Nonrefundable fee Rs.1000/- to be deposited at the time of application.
b) Balance to be deposited after sanction depending on loan amount.

Eligibility
a) Individuals holding MBBS/BDS degree and registered in the respective
state council.
b) Individuals holding degree/diploma in Para medical radiography,
Radiology, pathology etc.
c) Group of individuals, registered companies etc. having experience or
Necessary permission and license

10.

Micro Finance
(SHG) Self Help Group Program
The SHG program, conceptualized and launched by NABARD in 1992,

attempts to link the poor in large numbers to the formal banking sector in a
sustainable and cost effective manner. The program rekindled the basic human trait
of self-worth of every member in a group. By handling savings and internal lending,
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the groups mature to acquire credit worthiness for themselves and earn confidence
of banks for loans by providing trust as collateral. This has emerged as the
predominant micro finance model in the country and is now a proven method of
financial inclusion, providing unbanked rural clientele access to formal financial
services from the existing banking system. This SHG- Bank linkage model has
emerged as the largest and fastest micro finance outreach program in a cost
effective manner in the world. The social intermediation in forming and nurturing the
self-help groups is handled by a large number of non-governmental organizations,
voluntary agencies, community based organizations like farmers club, local bodies,
field level functionaries of government agencies, socially committed individuals
and bodies and banks themselves. Commercial banks followed by RRBs and
cooperative banks also play an important role in credit linking the SHGs. NABARD
provides grant assistance to various partner agencies in promoting and nurturing of
SHGs, and extends refinance support to banks against their loans to SHGs.
NABARD also takes lead in providing financial and other support for capacity
building, sensitizing and training the personnel of all the partner agencies including
banks. With the success of the SHG-Bank linkage program, linkage of Micro Finance
Institutions (MFIs) with the banking sector was promoted by NABARD to enable on
lending by MFIs to SHGs and individuals.

11. Sahakar Tex Bachat Yojana

General Information
a) Deposit tenure minimum 5 years in any of RSCB Branches.
b) Minimum amount of Deposit- Rs.100 and in multiples of 100 thereafter subject to
a maximum of Rs.1, 00,000/- in a financial year.
c) Qualify as an investment for the purpose of deduction under sec.80 (as of I.T.
Act 1961).
d) Premature withdrawal of the deposits made under the scheme shall not be
allowed before completion of 5 years. In the event of death of holder of a deposit
in respect of which a nomination is in force, the nominee or nominees shall be
entitles at any time before or after the maturity of the deposit to encase the
deposit.
e) The deposit shall not be pledged to secure loan or as security to any other
asset.

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f) The fixed deposit receipt issued under the scheme shall be governed by the
provisions of The Bank Term Deposit scheme 2006 Notification No.SO 1220(F)
Dated 28/07/2006.

Interest Rate
a) 8.5% pa. Interest payable monthly/Quarterly or in lump sum at the time of
maturity.
b) Interest accrued or paid during a financial year shall be liable to tax under the
Act and provision of TDS shall apply.

Eligibility
a) Can be made in single name of an individual or in the single name of Karta of a
HUF.
b) Can be made in joint names also but benefit of deduction shall be available only
to the first holder.
c) Joint fixed deposits can be made in the name of two adults, an adult and a minor
and payable to either of the holders or to the Survivor.
Document Required
a)
b)
c)
d)
e)
f)

Applicants must satisfy the following documentation requirements:

Identity proof (PAN, EC Card, Driving License, Passport, and Ration Card).
Passport Size Photograph - 2.
Proof of residence address.
Introduction as bank norms.
KYC Documents.

Facility
a) Nomination can be made subject to the restriction that no nomination can be
made in case of deposit receipt issued in the name of or held on behalf of a
minor.
b) Income Tax benefit under section 80 c of IT Act 1961.

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12.

Sahakar Sugam Credit Cash Scheme

Products - Sahakar Sugam Credit Card/Cash Credit Scheme
a) To meet credit requirements of very small entrepreneurs, Retailers, Artisans
and Ancestral Craftsman to enhance their business and productivity.
b) To meet credit requirements of Small Shopkeepers such as Pan Shop,
Cobblers, Road Side Vendors and hawkers.
c) To meet credit requirements of house-hold productive activities of ladies.
Quantum of Loan
a) Up to Rs.25, 000/- (No collateral security required).
b) Up to Rs.50, 000/- against equivalent collateral security.
Disbursement
a) Operative period - Three Years
Rate of Interest
a) 12% p.a. Fixed.
b) Interest will be lived on monthly basis.
Repayment Period
a) Maximum 6 Months.

13. Kisan Credit card Scheme Major features

a)

Eligible farmers to be provided with a KCC and a pass-book or a card-cumpass book. Card to be valid for 3 years subject to annual review. Personal
Accident Insurance up to Rs.50, 000 to the card holder under Personal

b)

Accident Insurance Scheme (PAIS).

Revolving cash credit facility (RCCF) involving any number of drawls and
repayments within the limit. Limit to be fixed on the basis of operational land
holding, cropping pattern and scales of finance. Each drawls to be repaid

c)

within 12 months.
Entire production credit needs for full year plus ancillary activities related to
crop production to be considered while fixing limit. In due course, allied
activities and non-farm credit needs may also be covered. Sub-limits may be

d)

fixed at the
discretion of the banks incentive for good performance, credit limits could be

e)

enhanced to take care of increase in costs, change in cropping pattern, etc.

Conversion/ re-schedulement of loans also permissible in case of damage to

f)

crops due to natural calamities

.Operations may be through issuing branch or at the discretion of bank,
through other designated branches. Security, margin, rate of interest as per
RBI norms. Interest to be charged on the credit balance in the account.
Withdrawals through slips/ cheques accompanied by card and passbook
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14.

Swarozgar Credit Card (SCC) Scheme

The Swarozgar Credit Card scheme envisages adequate and timely credit,

both Working and block capital, to small artisans, handloom weavers, service
providers, Fishermen, self-employed persons, rickshaw owners, other micro
entrepreneurs in Rural and urban areas, in a flexible, hassle free and cost
effective manner from the Banking system. This facility also includes a
reasonable component for meeting Consumption needs. 9.84 lakh cards have
been issued cumulatively by banks involving a credit limit of Rs.4, 007.33 crore,
as at the end of March 2009.

15.

Rashtriya Krishi Bima Yojana

Crop loans disbursed under KCC Scheme for notified crops are covered

under Rashtriya Krishi Bima Yojana (RKBY). All farmers (both loans and nonloaners irrespective of their size of holdings) including sharecroppers, tenant
farmers growing insurable crops are covered. 50 per cent subsidy in premium
allowed to Small and Marginal Farmers, to be shared equally by the Government
of India and State Government/ Union Territory.

16.

Personal Accident Insurance Scheme

A Personal Accident Insurance Scheme (PAIS) is attached with KCC,

which covers risk of KCC holders against accidental death or permanent disability
up to a maximum amount of Rs.50, 000 and Rs.25, 000, respectively, resulting
from accidents caused by external, violent and visible means. The insurance
premium payable on personal accident insurance coverage to KCC holders will
be Rs.15 for a one year policy and Rs.45 for three years. The premium payable
to the insurance company is shared between the KCC issuing bank and the KCC
holder in the ratio of 2:1.

17.

Cash Credit (Hypothecation) Limits to traders

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The bank had not taken up the activity in a big way though there was
enough potential in its area of operation. There were only a few cased of CC
limits to individuals.
i)

Stock was not verified by the bank official on periodical basis.

ii)

Stock statements were not obtained periodically to ensure margin.

iii)

Neither Drawing Power Register maintained nor drawing power was worked
out while allowing operations in CC Limit

iv)

Fresh documents and DPN were not obtained at the time of renewal of CC
limits.

v)

Due to lack of pre sanction appraisal, monitoring , supervision and post

disbursement follow up, certain CCL accounts had become NPA and bank /
branch had not initiated action to recover the overdue.

GOALS FOR FUTURE (2009-2010)

Disbursement of Rs. 1500.00 crores loan under Short Term Agriculture

loan.
Disbursement of Rs. 90.00 crores loan under Investment Credit

(Agriculture &
Non-Agriculture).
Attain the level of Rs. 1650.00 crores in Deposits of the Bank.
Attain the level of Rs. 2500.00 crores in total loan outstanding of the

bank.
Attain the level of Rs. 3700.00 crores in working capital of the bank.
Complete the computerization of Apex Bank and all District Central
Cooperative banks.
To open two new branches in Jaipur city.
To promote formation and loan disbursement of self Help Groups.

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CHAPTER-2
Project profile

Objectives

Functioning Area

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31

PROJECT PROFILE
OBJECTIVE

To study the Indian Banking System

To study in detail the functioning of Co-Operative Bank

To study in detail the functioning of private banks of India

The analysis of the investment products and services provided by CoOperative Bank and ways to improve them to improve the profitability of
theBank

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FUNCTIONING AREA FOR THE PROJECT

By formulating the idea of the project I had planned a strategy

I had taken the full detailed study of about the investment products offered by
the bank.

I studied the previous sales of the investment products.

I observed the criteria of the people who visited the bank and their views on
investments with bank.

I talked with customers during their transaction period with the bank officials.

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CHAPTER-3
BANKING ACTIVITY

CMS (CASH MANAGEMENT SERVICES)

RTGS (REAL TIME GROSS SETTLMENT)
CLEARING
CASH
CC (CASH CREDIT)LIMIT
FRONT DESK-DD/PO/RTGS/TRANSFER/CUSTOMER QUERY
AGRICULTURE LOANS/COMMODITY FINANCE

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CMS (Cash Management Services)

In today competitive market place, effectively managing Cash flow can make
difference between success and failure. Co-operative bank offers a wide range of
collection and payment services to meet your complex case management needs. Payment
received from your buyers made to your suppliers are efficiently processed to optimise
your case flow
Position and to ensure the effectives management to your suppliers of your
business operating funds. The flow of receivables and payables can also be seen through
our web solution above all our quick adaptation of the latest technology differentiates us
from the other competing banks.
Co -operative bank present payment solutions. Save on effort, time and worry. Plus
our electronic clearing services help serve you even better.
With our collections services you can collect regular and recurring payments from
your customers more efficiency .our centralised CMS solutions enables quick access to
your company funds with matching MIS/reports through emails web solutions. These
deposit are directly credited to a designated account regardless of where they are made.

CMS ADVANTAGES

Online web CMS collections

Online web CMS payments

Extensive network

Lower interest costs &improved liquidity

Centralised services desk

Advantages of web CMS

Comprehensive MIS

Mobile alert services

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RTGS (REAL TIME GROSS SETTLEMENT)

RTGS are a funds transfer mechanism where transfer Of money take place from
one bank to another on real on gross basis settlement in real time means payment
transient is not subjected to any waiting period the transfer are settled as soon as they
are processed gross settlement means the transfer is settled on one to the basis without
bunching with any other transfer payment are final and irrevocable.

CASH
Cash in bank means deposition of cash on the cash counter and payment made to
the customer on the cash counter. Every bank branch has a cash retention limit which
mean the amount if cash is can keep in the branch. High value cash deposit of 10 lakh and
above are two monitors by the bank and payment. 50 thousand above deposit in an a\c in
a day require pan no. or form 60.
A) Cash In hand which includes notes and coins.
B) Current a/c with schedules and non-schedules bank (demand deposit ) earning no
interest
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C) Deposit account with bank (time deposit) earning interest.

Cash is liquid assets or liquid resources owned by a firm which enable it to

purchase goods or services

CLEARNING
Clearing: - Is a method of funds settlement between banks.
Clearing Inward: - It means cheque of a bank which is presented by other banks to it for
payment purchase.
Clearing outward: - It means cheque which our bank presents to other banks for payment
to our customers.

CASH CREDIT LIMIT

Cash credit is a facility given by the bank there highly reputed customer like as over
draft and to other customer on their mortgage of any assets. in this facility customer can
withdraw from his account up to maximum of his limit and deposit money when he have
interest on this facility will be charged on daily debit balance method.

AGRICULTURE LONS
Which loan given to existing or prospected formers for there need of finance for
purchase of agriculture, land, equipments, and maintaining and operating of agriculture
activities.
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CHAPTER-4
COMPARATIVE DATA ANALYSIS OF
BANKING PRODUCTS
COMPARISON OF CURRENT ACCOUNT
COMPARISION OF SAVING ACCOUNT
COMPARISION OF BANKING FACILITIES
COMPARISON OF LOAN

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38

COMPARATIVE DATA ANALYSIS OF BANKING PRODUCTS

Data collection:
During my data collection, data was collected:

From Banks

From Banks Website

Four Banks were selected SBI, SBBJ, BOB, and HDFC

LIST OF COMPETITORS
BOB
SBI
SBBJ
HDFC BANK
IDBI
AXIS BANK
ICICI BANK
PNB

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39

COMPARISION OF SAVING ACCOUNT

COMPETIVE BANK

RSCB

Single type of saving a/c Low

opening charge

Various type of saving a/c like

Silver, Saving plus, Super saving
a/c, High opening charge

Various Banking facilities like ATM,

FD Sweep, Accidental coverage

are not available

Various Banking facilities like ATM,

FD Sweep, Accidental coverage
are available

COMPARISON OF CURRENT ACCOUNT

RSCB

Low opening charge-3000

Only local cheque book are

COMPETIVE BANK

given

High opening charge -10000

Local cheque book & multi-city

cheque book are given

Stop payment charges

applicable

Have stop payment charges but

its free for Net Banking

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40

COMPARISON OF LOAN
RSCB

COMPETIVE BANK

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41

Low limit of Loan amount for e.g.

Personal loan 1 lack or 8 times of

High limit of loan amount for e.g.

Personal loan

monthly salary

SBI Bank- 12 time of monthly income

SBBJ Bank- 18 time of monthly Income
HDFC Bank- Rs.15,00,000 for any
purpose

Low interest Rate then any other bank

generally it is 0.50 or 1 % approx. low

In some loan low processing fees like

Home loan Rs.100(fixed)

Mortgage Loan 0.50% of loan amount

High interest rate

SBI - 13.25%
HDFC Bank- 14%
BOB -13.25%

In some loan high processing fees

comparison RSCB bank

CHAPTER-5
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42

RESEARCH METHODOLOGY

Research methodology

Research design

Consumer Data Analysis and Interpretation

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43

RESEARCH METHODOLOGY

Research Methodology refers to the tools and methods used for obtaining
information for the purpose of study
Data was collected from secondary; their current brand strategies were
determined. After a thorough analysis of the above they were evaluated and
suggestions for future are made.

RESEARCH DESIGN
The preliminary research involved collecting data from the secondary sources
to understand the background and the nature of phenomenon.
After this, an exploratory research was undertaken the factors of less sale of
investment products and give a complete account of their strength.

CONSUMER FEEDBACK ANALYSIS

Data collection:
During my data collection, data was collected from: Visitor
Bank customer
Shopkeeper

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Sample size was 150.

Q.1 Do you have any bank account?

a) YES

b) NO
Yes

No

Total

No. of Respondents

110

40

150

% of Respondents

73

27

100

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45

Q.2 In which bank do you maintain your bank account?

a) RSCB

b) SBI

C) SBBJ

RSCB

SBI

SBBJ

50

35

45

33

24

d) ICICI
ICICI

Total
No. of Respondents

20

150
% of Respondents
100

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46

30

13

Q.3 which type of account (s) you hold?

a) Saving a/c

b) Current a/c

c) Fixed Deposit a/c

d) Regular Deposit a/c

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47

Saving

Current

No. of Respondents

50

65

% of Respondents

33

44

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48

F.D.
20
13

R.D.

Total

15

150

10

100

Q.4 What all benefits and services are you getting from your bank?
a) Net Banking

b) Super Saver a/c

c) 24-hours ATM

d) Demet service

(Net Banking) (Super Saver a/c) (24-hoursATM) (Demet service) Total

No. of Respondents

45

30

51

24

30

20

34

16

150
% of Respondents
100

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49

Q5. Are you satisfied with the services of your bank?

a) YES

b) NO
Yes

No

Total

No. of Respondents

105

45

150

% of Respondents

70

30

100

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Q.6 Do you want to switch your bank to the new one?

a) YES

b) NO
Yes

No

Total

No. of Respondents

115

35

150

% of Respondents

76

24

100

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51

Q.7 what more facilities/services do you expect from a bank?

a) Net banking

b) Super saver a/c

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52

c) 24-hours ATM

d) Demat services

(Net banking) (Super Saver a/c) (24-hoursATM) (Demat services) Total

No. of Respondents

45

25

65

15

150

% of Respondents

30

17

43

10

100

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Q.8 Do you favor the implementation of the computerization

and core banking solution?
a) YES

b) NO
Yes

No

Total

No. of Respondents

145

150

% of Respondents

96

100

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Interpretation & Analysis

It was found that the banks with most ATMs have gained priorities in the minds
of the customers.
Different bank have different schemes for different age groups. Some banks
are giving privilege to senior citizens, while others to child group etc. But RSCB
have not any such schemes targeted to different age group.
The study has shown that the customers want better branch network so that
they can operate their account from different city also.
The study has shown that since different bank are providing different facilities to
different type of retail banking products so in lieu of better facilities customer
have different account in different banks.
The study has shown that many people dont want to open account in
Rajasthan State Cooperative bank because they think that the services like
ATMs, Phone- banking, internet banking etc. not provided by these banks.
The study has shown that there is a growing concern among the customers
about the attitude of bank employees towards them.
Due to limitation of time very few customers could be contacted. For any
study to be practically meaningful, these number need to be significantly
higher.

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 The environment available for filling the questionnaire or attending the

interview

is not very conducive for serious interaction and some of the

responses may be casual, thus affecting the final analysis.

In any detail study, it is possible to add many other variables.
The sample size was not large enough and may not be representative of the
whole population.
The scope of study was limited to only certain product categories and
cannot be generalized to all the product categories.

Chapter-6
RECOMMENDATIONS & SUGGESTIONS

Advertising is not appropriate, as many people are not aware of Rajasthan

State Cooperative Bank. Therefore Hoarding and Boards should be displayed
at various prime locations in the city.

Timely payment of salary and Promotion of employees will boost their morale.

All the complaints of Customer should be deal in proper manner because it is

the customer who will give good or bad mouth about bank services.

Non maintenance & other charges which are very high as compared to other
Banks should be reduced.

Existing customer should always be informed about the new product.

Regular connected with customer.

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56

Problem faced by account manager during opening the account should be

forwarded to deputy manager by branch manager. This will help to sort out all
the problems.

Proper training of Bank staff to give impressive presentation.

Proper Co ordination between Marketing and Operation need to be developed.

Promotion of various scheme by Rajasthan State Cooperative Bank.

Chapter-7
Limitation of Study
The following aspects have been identified on some of the major areas of
concern for the bank :

Delay in submission of statutory returns.

Bank's performance in implementation of schemes, formulate for

reshedulment of agriculture loans accounts on account of farmers in arrears was not
found to be satisfactory.
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57

Wrong classification of rescheduled accounts under IRAC norms.

Defective documentation

Problem of imbalance at GSS level.

Lack of internal checks and control system

Poor fund management

Operational deficiencies and poor growth rate in loans and advances

and deposits.
Operational deficiencies and poor growth rate in loans and advances

and deposits.

Over dependence on the short term loans there by reduction in the

interest margin.

Non diversification of loans portfolio. Bank should increase its funding

in medium terms and long terms loan.

Nonuse of latest credit intervention initiatives such as Kisan club,

SHPIs, REDPs, TME cell WD Cell, etc.

Meager financing in SHGs.

Poor HRD planning and training

Lack of Supervision and initiative for strengthening the PACS on other

affiliated societies.

Lack of supervision and initiatives for strengthening the PACS and

other affiliated societies.

No use of advance technology such as computerization etc.

Poor security arrangements at branch level

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Chapter 8
Conclusion

The bank should therefore look forward to promote investment opportunities

during their visit through banners, leaflets and pamphlets, etc. and increase the
awareness levels.

The company must take strong steps in promoting the investment option and
generates desire and interest towards the products. A complete new market
strategy needs to be formulated.

Most of the customers were inclined to invest in insurance schemes in which they
showed preference for automobile insurance. Firstly, the corporation should target
the existing customer base investment plan and try to increase their awareness
levels. Then they should make the other customers of the bank at least aware of
the various schemes so that the next stage of interest, desire and action becomes
easy to execute.

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59

It was surprising to note that some of the respondents having account in cooperative Bank had investment in nearest rival HDFC. Corporation should take
stern steps to channelize the investment towards itself. The corporation should
also work on the factors, which lead to investment in other banks.

Location and loyalty towards the old banks were the key factors for this particular
behaviour. The corporation therefore should give a serious thought to these
aspects and try to provide service, which can somehow make a dent in the loyalty
and more trust towards the state owned banks.

Bank should look to open new branches with proper planning and careful
selection of the location, which is convenient to the target customers especially in
places where there are a lot of option in front of the consumers.

Advertisement play an important part in the brand recall of the corporation

therefore, bank should look to create a campaign, which provides the consumers
with the basic knowledge and general attraction towards the products offered.

Co-operative Bank should look to tap the untapped market and increase their
market share. It is very surprising that in spite of the high satisfaction levels of the
current customer base the market share of the bank is stagnant. This shows a lack
of hard-core brand loyal customers. Efforts should be made to lead the consumers
to this level of loyalty so that more strong work-of-mouth should be there.

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Page
61

APPENDIX

BIBLIOGRAPHY
Kotler, Philips, Marketing Management.
C.R.Kohari, Research methodology.
Schiffman L.G and Kanuk L.L, Consumer Behaviour.

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 Tull Donald and Hawkins Dell. Marketing Research.

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63

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