Training Report on loan and credit facility at cooperative bank

Loan and credit facility at jodhpur j odhpur central cooperative bank

PREFACE

An

employee when joins the organization is just a raw individual, who does not possess the

desired level of skill and knowledge to produce the standard output.

Also,

the employees are

required to be up to date according to the technological changes. To achieve these objectives some kind of training is required. In other words the organization need to maintain a viable and knowledgeable work force to meet the current and future challeng es. For this training is the only medium/method/weapon by which organization can achieve the objectives. So training is a continuous process, which exist till the organization sustains. The 45 days training program has been introduced by the RTU for an ela borate and practical study on selected topics related to Management from the company . In this session I took training in THE JODHPUR CENTR AL COOPERATIVE BANK, in loan section of that bank in which I got the chance to know the procedure by which bank lends money to its members. Since it is a cooperative bank so it gives loan to its members only, hence an applicant has to become member of this bank before borrowing money from it. The project work about the survey is a small piece of research work in various a spects of the training. While carrying out I got opportunities to interact with employees at various levels and the people which enhanced my practical knowledge and experience in regard to the topic. In this report I have shown the loans provided by the bank and its recovery procedure .I also include current facts and figures related to the topic.

1

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ACKNOWLEDGMENT

Before we get into the thick of thing, I would like to say that it was a great pleasure & privilege for me to have the opportunity of underta king the training at the Jodhpur central cooperative bank for a period of 45 days. I would like to thank the Bank for providing me such an

opportunity. I express my sincere thanks to my project guide, Mr. Jitendra kumar sewag, Designation

Asst.

professor, Deptt. Finance 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 mo ral support he/she/they had provided to me with all stages of this project.

I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I am sure that the knowledge & information that I have gaine d during this period would be of immense value for my growth in business world.





















EXECUTIVE SUMMERY

The report contains introduction to Banks, which includes past, present and future of banks and challenges for banking industry industry in future. Banks plays the most important role in providing various banking service services. s. Earlier the banks were engaged in accepting and lending money. But in the recent past the scope of services provided by the banks has increased. The growing competition requires prompt and efficient services to the customers at reasonable cost. These days bank aim to provide maximum satisfaction to their customers. The next part of the report consist the knowledge about the cooperative banks in India. It includes history of cooperative bank in indianite¶s features and service provided b y it in rural and urban sector. The structure of cooperative bank in India is also includes in it. Then a brief introduction of Jodhpur central cooperative bank comes in next part of the report which consist the history, vision, mission, management team and objective made by Chairman Mrs. Leela maderna . The current financial position of the bank also includes in this part. Then the meaning of certain terminology includes in this report .these terms ar e related with the topic for ex. cash credit, lease, secured loan etc. the objective of this section is only to make aware about certain terminology used by bank regarding loan facility. The next section of report i.e. training methodology consist title o f report, duration of training session, objective and limitation of study etc. this section basically giving the outline of the report. Next section consist the loan and credit facility provided by bank. This section consist various loans provided by bank the detail regarding those loans, procedure to recover it, actual position of bank in loan area, and recommendation and

the various proposals that the

Cooperative bank could apply for maintaining its position in the region and to face future challenges and the suggestions for the improvement.





















TABLE OF CONTENT

S.NO.

TITLE OF CONTENT Industry introduction

1

1.1

What is banking

1.2

Standard activities of bank

1.3

Revenue generation by bank

1.4

Risk and capital of bank

1.5

Economic functions of bank

1.6

Banking in India

1.7

Structure of banking industry in India

1.8

Current scenario Cooperative bank

2

2.1

History

2.2

Services provided by bank

2.3

Facts about cooperative cooperative bank

2.4

Structure of cooperative bank Jodhpur central cooperative bank

3

4

3.1

Management team of bank

3.2

History of bank

3.3

Vision, Mission

3.4

Achievement

3.5

Performance of bank

3.6

Branches of bank

3.7

Financial position of bank

and products of bank

Terminology





















4.4

Secured overdraft Training methodology

5

5.1

Title of study

5.2

Duration of training

5.3

Objective and format of train

5.4

Source of data, scope of study s tudy

5.5

Limitation of study Loan and credit facility

6

6.1

Personal loan

6.2

Loan for purchase or construction

6.3

Vehicle loan

6.4

Home loan

6.5

Education loan

6.6

Loan for working capital

6.7

Other loan

6.8

Loan given to women self employment group

6.9

Loan outstanding Recovery of loan

7

7.1

Measures of recovery

7.2

Procedure of recovery

7.3

Debt forgiven by bank

7.4

Difficulties faced by cooperative bank

7.5

Recommendations

8

Conclusion

9

Bibliography





















INDUSTRY INTRODUCTION























INDUSTRY INTRODUCTION

WHAT IS BANKING? Banking in a traditional sense is the business business of accepting deposits of money from public For the purpose of lending and investment . These deposits can have a distinct feature like being withdrawn able by cheques, which no other financial institution can offer. In

Addition,

banks

also offer financial services, which include:  The Issue of demand draft & traveler¶s cheque.  Credit cards  Collection of cheques, bill of exchange.  Safe deposit lockers  Custodian services.  Investment and Insurance Services.

The business of banking is highly regulated since banks deal with with money offered to them by the public and ensuring ensuring the safety of this public money is one of the prime prime responsibilities of any bank. That is why banks are expected to be prudent in their leading and investment activities. Every bank has a compliance department, which is responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulations and the Bank¶s corporate policy.

The major regulations and act govern the banking business are: -





















STANDARD ACTIVITIES OF BANK Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, and

ATM.

Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securitie s and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks borrow most funds from households and non -financial businesses, and lend most funds to households and non-financial businesses, but non -bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings too.

REVENUE GENERATION





















RISK AND CAPITAL Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Some of the main risks faced by banks include: y

Credit risk:

risk of loss arising from a borrower who does not make payments as

promised. y

Liquidity risk: risk that a given securit security y or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).

y

Market risk: risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors.

y

Operational risk: risk arising from execution of a company's business functions.

The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted

ECONOMIC FUNCTIONS OF BANKS The economic functions of banks include: Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable or repayable on demand, and hence valued at par. They are





















Credit quality improvement ± banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holde rs and depositors in an economically subordinated position.

BANKING IN INDIA:Banking means accepting for the purpose of landing or investment of deposits of money from the public repayable on demand or otherwise one withdraw able by cheque, draft or otherwise. Banking in India has its origin as early as the Vedic period. It is believed that the transaction From money lending to money banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits an d advances and laid down down the rules relating to rate of interest , During Mugal Period, the native bankers played a very

important role in lending money and finance foreign trade and commerce. During the days of the east- India Company, it was the turn of the agency house to carry on the banking business the general bank of India was the first joint stock bank to be established in the year 1786. The others that followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the east-India east -India company established three banks, the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the banks of Madras in 1843.





















the ordinance, the Parliament passed the Banking Companies ( Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 A

August

1969.

second dose of nationalization of 6 more commercial banks followed in 1980. The stated

reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19.

After

this, until t he 1990s, 1990s, the

nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALIZATION In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation techsavvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce,

Axis

Bank(earlier as UTI

Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting























foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time -especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M &

As,

takeovers, and

asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pinups to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING





















INDIAN BANKING INDUSTRY

ORGANISED BANKS RBI

UNORGANISED BANKS INDIGENOUS

COMMERCIAL BANKS NON SHEDULED COMM. BANKS

MONEY LENDERS

SHEDULED COMM. BANKS STATE BANK GROUP

UNREGULED





















INDIAN BANKING INDUSTRY The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all Matters relating to the banking system. It is the Combination of Banks of India and bankers to all others banks as well . The Indian Banking industry, which is governed by the Banking Regulation

Act

of I ndi ndia, a, 1949 1949

can be broadly classified into two major categories, non -scheduled banks and scheduled banks.

1. Schedule Banks:These banks must have paid-up capital and reserve of mot less than Rs. 50, 00,000. The y must satisfy the RBI than its affairs are mot conducted conducted in a manner detrimental detrimental to the interests of its depositors. These are further classified as follow: 

State co-operative Banks

 Commercial Banks Scheduled banks comprise commercial banks and the co-operative co -operative banks. In terms ter ms of





















of India

Act,

1934. The modern Commercial Banks in India cater to the financial needs of

different sectors. The main functions of the commercial banks comprise: y

transfer of funds

y

acceptance of deposits

y

offering those deposits as loans for the establishment of industries

y

Purchase of houses, equipments, capital investment purposes etc.

y

The banks are allowed to act as trustees. On account of the knowledge of the financial market of India the financial companies are attracted towards them to act as trustees to take the responsibility of the security for the financial instrument like a debenture.

y

The Indian Government presently hires the commercial banks for various purposes like tax collection and refunds, payment of pensions etc.

CURRENT SCENARIO The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay of the Indian Banking system, are in the process of shedding their flab in terms of excessive manpower, excessive non Performing

Assets

(NPAs) and excessive governmental





















CO-OPERATIVE BANKS























CO-OPERATIVE BANKS:Co-operative banks are small-sized small -sized units organized in the co-operative sector sect or which operate both in urban and and non-urban non -urban centers. These banks are traditionally traditiona lly centered on communities, localities and work place groups and they essentially lend to small borrowers and businesses. 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, until 1996, could only lend for non-agricultural purposes. However, today this limitation is no longer prevalent. While the co -operative banks in rural areas mainly finance agricultural agri cultural based activities activitie s including farming, cattle , milk, hatchery,





















Even if their organizational rules can vary according to their respective national legislations, co-operative banks share common features: 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 prof it but to provide the best 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 controll ed by their

members, who democratically elect the board of directors. Members usually have equal voting





















in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India play play an important role even today in rural rural financing the Businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary co -operative banks. Co operative Banks in India are registered registe red under the t he Co -operative Societies

Act.

The

cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act

1949 and Banking Laws (Co-operative Societies)

Act,

1965.

Cooperative Cooperative banks in India finance rural areas under:





















y

This exponential growth of Co operative Banks in India is attributed mainly to their much

better local reach, personal interaction with customers, and their a bility to catch the nerve of the local clientele. There are two main categories of the co-operative co -operative banks.

(a)Short term lending oriented co-operative Banks - within this category there are three sub categories of banks viz state co-operative banks, District co-operative banks and Primary

Agricultural

co-operative societies.

(b) Long term lending oriented co-operative Banks





















Primary agriculture credit societies: Agriculture

continues to be the most vital sector of Indian economy, contributing a major share

to our national income and also providing livelihood to the majority of our population.

A

strong

base of agriculture growth is must for the overall economic development in a country like India. So to help the farmers and make the financial help for them these cooperative societies are established .these societies finance farmers not only for their short term requirements requirements (use of improved seeds, fertilizers, insecticides, etc)but for medium and long term(irrigation and land development activities)activities also.

District central cooperation bank:























Land development bank:

The long term credit needs of the agricultural sector are met by another type of co-operative institutions known as Land Development Banks. The Land Development Banks meet the













































MANAGEMENT MANAGEME NT T EAM OF JODHPUR CENTRAL COOPERATIVE BANK













































MR.SURENDRA SINGH RATHORE

MANAGING DIRECTOR











































































































































































































































































































































































































































































































































































































The Bank has variety of credit schemes specially suitable to individuals based on the Needs and personal repayment capacity. capacity . The chart shows the increments increments in loan amount given by bank to women self employment groups. The amount of loan increases and the no. of groups also increase due to fait and reasonable rate of interest on loan provided by bank.





















The recovery following table shows the total amount of loan outstanding: YEAR

LOAN OUTSTANDING (amount in thousands)

2000-01

6335.15

2001-02

6309.14

2002-03

8192.45

2003-04

9275.02

2004-05

11915.09

2005-06

14533.26

2006-07

14816.09

2007-08

19757.01

2008-09

20563.05

2009-10

23861.38

The chart shows the total amount of loan which will have recovere by bank,the increament





















The loan amount amount provided by bank increase as compare to last 4 years, the interest of different sectors in taking loan from cooperative bank can be seen in following table:

Sectors

2004-05

2009-1 200910

(amount in lakes)

(amount in lakes)

Agriculture

162.21

470.98

Non agriculture

691.36

809.77

other

814.28

1029.50

The chart shows the increment in the loans provided by banks and it is clear that the bank not only focus on agriculture loan but on other loan also which includes loans for Self employment, commercial/working capital mortgage etc. it shows cooperative bank is not bounded in providing loan in agriculture area only and can be a good source of fulfill short and medium term requirement of finance in rural area.





















RECOVERY OF LOAN





















RECOVERY OF LOAN: The banks have introduced various deposits schemes which induce the common man to save more money. money. The Urban Co-op. Banks accept accept deposits for the purpose purpose of lending. It is the primary duty and function of the Urban Co-op. Banks to safeguard the interest of depositors. Whenever deposits are accepted, the bank agrees and undertakes to repay the amount of deposits with interest to the depositor on maturity. The ownership of the deposit amount vests with the customer and the custody of the deposit deposit amount are with the Banker. So whenever Advances

and Loans are sanctioned to shareholders / members of the Bank, the Banker has

to take extreme care to see that the Borrower repays the amount o f loan with interest so as to enable the Banker to repay the amount of deposit with interest to the customer. Points which are to be taken care by bank while giving loan: This is necessary to ensure that every borrower has a proper repaying capacity for r epayment of the amount amount of loans and advances that would would be sanctioned. sanctioned. Securities are also taken to ensure that in case the borrower fails to repay the amount of loan, the securities can be attached and sold out and the debts can be liquidated. Even with this background, though there is a detailed scrutiny of loan application, it is observed that there are very few cases, cases, where the judgment of the bankers bankers fails. In such 'Fail Cases' the borrowers are not ready and willing to repay the amount of loan, the securities can be attached and sold out and the debts can be liquidated. Following are some points which bank takes care while lending money: y

Date of sanction of loan.

y

Amount

y

Rate of Interest that would be charged.

y

Last date of repayment of loan.

y

Period for which loan is granted.

y

Details regarding securities offered.

of loan sanctioned.























Normal measures to be adopted by bank officials for recovery of dues Whenever, a borrower commits breach of agreement in respect of repayment of schedule of the amount of loans with interest etc., we safely say that there are 'OVERDUES ' in the Loan Account.

Once the Loan

A/c

is an overdue

A/c

i.e. the borrower has committed default in

repayment of loan amount as per the dates specified in the

Agreement,

the n the Banker has

necessarily to adopt measures which will result into recovery of overdue amounts. Whenever the borrower commits default in repayment of loan amount, immediately the bank should serve ' Preliminary Notices' on the principal borrower and th e sureties advising them to repay the amount of overdue with with interest etc. Such Preliminary Notices should invariably mention information which is of factual nature relating to (i)

Amount

of loan sanctioned.

(ii) Date of sanction sanction of loan. (iii) Names of the sureties. (iv) Amount of the loan sanctioned. (v)

Amount

Addition

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

to the above it must also be communicated the bank shall proceed to take further

action against the principal borrower and sureties in case of failure to repay the amount of loan/over dues. It has been often said 'A' stitch in time saves nine'. Thus, the banker must must be vigilant, right from the disbursement of loan amount till the recovery of the entire loan amount. There should be effective supervision o ver the amount of loan sanctioned .





















on receipt of requisition letter from the concerned Bank, the Employer shall proceed to make deduction from the salary/wages from the concerned employee/member to meet the claims of the Bank. The Employer must remit the amount so deducted immediately to the Bank concerned. Non-compliance of these provisions under the State Cooperative

Act

shall be constructed as

'offence' and further Civil and Criminal action can be instituted against such Erring Employer. In addition to the above, there are provisions under the Indian Payment of Wages

Act

(vide Section 7(2) and Section 7(2) (j) which stipulates that the Employer Employer shall

1936 make

deduction from the salary/wages of an Employee to satisfy the claims of the Cooperative Society / Banks. Settlement of Disputes

Based on the noting of the Management, the Board of Directors may pass a Resolution authorizing the Manager/or Manager/or such other officer to f ile "Dispute

Application´

in the Co-op. Court

against the defaulting principal borrower and his sureties. Section 91 of the MCS

Act

empowers the co-operative courts to decide on µDisputes¶ and Section 95 further empowers the court to direct attachment of property before announcement of the award which is called Attachment

before award or order and interlocutory order if it is satisfied that the parties to the

dispute are likely to remove/ dispose of whole or part of his property. Section 95 similarly empowers the Registrar / Officer authorized by him to take the above measures in case of disputes referred to him.





















PROCEDURE TO BE FOLLOWED:

Under Section 13(2) of the

Act,

a 60 days¶ notice has to be served by the bank on the

borrower with a request to discharge the loan liability The notice must contain details of: 

amount payable by the borrower;



Security interest intended to be enforced.



On receipt of notice, if the borrower makes a representation or raises an objection, the secured creditor must consider such representation or objection.



If the secured creditor comes to the conclusion that the said representation or objection is not acceptable or tenable, he must communicate the reasons for non -acceptance of representation or objection within one week of receipt of the above.



Modes of recovery available (s.13(4))

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 way of lease, sale, assignment, 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 persons who acquired the secured secured asset from the borrower or from whom money is due.



The CMM( chief metropolitan magistrate)or DM





















by the bank is as per the provisions of the law, then the bank/ secured creditor can proceed to take action under Section 13(4) of the

Act.

The application has to be d isposed of by the DRT

within 60 days and if it¶s pending for four months, either the bank or the borrower can appeal to the Appellate Tribunal for expeditious Tribunal. An

application for recovery of balance amount, if any, by secured creditor can be pres ented to

the debt recovery tribunal by the authorized officer ( AO)of the bank or can be sent

by

registered post addressed to the registrar of debt recovery tribunal. y

Appeal

to the appellate tribunal under Section 18:

y

Persons aggrieved by the order of DR T to prefer an application before the appellate tribunal within 30 days.

y

The appellate tribunal is vested with power to reduce the deposit amount to not less than 25 percent.





















Following table shows shows the comparative analysis of recovered and overdue loan of bank: year

Total claim( claim (in

recovery

Recovery in

lakes)

(in lakes)

percentage

2008-09

22540.20

19179.32

85.08

2009-10

17427.05

9884.09

56.72

The table shows that recovery of loan reduces as compare to last year. Hence the bank needs to try to recover the very old and overdue loans. For the recovery of over dues bank formed a flying squad which starts working from 8-03-2010.























(ii) increased vulnerability vulnerability to world commodity price volatility, (iii) inefficient use of available technology and inputs with low crop productivity, (iv) degradation of natural resource base, (v) rapid decline in groundwater, with particularly adverse impact on small and marginal farmers, and (vi) Increased non-agricultural demand for land and water.

Aggravation

in social distress as a

cumulative impact of the above reflected in an upsurge in farmers¶ suici des. With taken above factors in consideration Jodhpur central cooperative bank and 207 rural services cooperative committees (work under this bank) forgone debt amount of some members which can be seen as follows:

Types of members

No. of members

Amount (in lakes)

marginal farmers

1484

185.77

Small farmers

3543

415.79

others

19805

2552.51





















DIFFICULTIES DIFFICUL TIES FACED BY COOPERATIVE BANK IN RURAL AREAS 1) Slow progress: The progress of co-operative banks is not up to the expectation and is

slow when comparing other type of banks because of many restrictions on their operations. 2) Limited scope of investment: The main objective of co-operative banks is to provide

credit facilities to the poor people i.e., to small and marginal farmers and other weaker sections. They were originally having limited scope to invest their surplus funds freely. 3) Delay in decision making: The co-operative banks directly or indirectly by various

agencies i.e., NABARD, RBI. Thus it takes long time to take decision on some important issues. This, in turn affects the progress of co -operative banks. 4) Lack of training facilities: Generally the staff of co-operative banks is urban oriented and





















7) Lack of co-ordination: There is lack of proper co-ordination between co-operative banks

and other institutional financing agencies like commercial banks and RRBs.

Also,

there is

inadequate co-ordination between co-operative banks and other d evelopmental agencies operating in rural areas. This has hampered the progress of co -operative banks. 8) Poor development of rural areas: In spite of several efforts made during the course o

development plans to promote the development of rural areas, it h as not taken place in a significant way. The areas, at present lack lack economic infra - structures like; facilities of marketing storage and distribution of inputs. Besides, social infrastructure like; schools, medical facilities. areas.

As

a result, co-operative banks find it extremely difficult to operate in such





















RECOMMENDATION AND SUGGESTIONS: SUGGESTIONS:

1. More mass awareness campaigns should be organized in order to enhance market share of bank. So Bank should concentrate on its advertisement itself.

2. Bank should refocus on its interest interest rate as responded by people. Periodic review of the interest rate should be done.

3. There should be computerized system in the bank as it will will reduce the time wastage of manual work and will lead to the better performance of the bank.

4. Training of the employees employees should be there to meet the needs of the time. time.

5. Proper posting of the staff should be done. done.

6. Customer¶s satisfaction must be the top priority of the bank. bank.





















CONCLUSION The study concludes that Cooperative Bank, which was established for mainly for the service of rural sector, still is not on the line to its goal. It is lacking at various elements, particularly at the branch levels, which reveals the edge of other public and private sector banks over the Cooperative bank, the lines at which the bank is lacking behind. Indis cipline and lack of commitment in these banks make people¶s trust in the cooperative sector a casualty. Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. Bu t there is shortage 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 Cooperative Banks due to lack of advertisement. There is a need to analyze and pick up early warning signals.

A

change is needed

today in the cooperative banks which is built on confidence in human capital - the most important of all resources - in commitment, creativity and innovation brought about by proactive management, membership and employees. The ability to capture knowledge and























BIBLIOGRAPHY y

Annual

report of the Jodhpur central cooperative bank.

y

Documents provided by bank.

y

Various circulars issue by the bank.

y

[email protected]

y

www.wikipedia.com

y

www.docstoc.com





















Training Report on loan and credit facility at cooperative bank

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