Bank Project Final

Project report on DCC Bank, APMC Yard, Shimoga

Chapter-1

1.1 Introduction:

Co-Operative banks in India are more than 100 years old. these banks came into

existence with the enactment of the agricultural credit co-operative societies act in 1904. co-

operative banks from an integral part of the banking system in India. These bank operate

mainly for the benefit of rural areas, particularly the agricultural sector. They are the main

source of institutional credit to the formers. Co-operative banks are chiefly responsible for

banking the monopoly of moneylenders in providing credit to the agriculturist. They have

also been an important instrument for various development schemes. Particularly subsidy

based programmes for poor. Co-operative banks operate for non-agricultural sector also but,

their role is small.

Co-operative banks in India are registered under co-operative societies Act. The co-

operative bank is also regulated by the RBI. They are governed by the banking regulation

Act 1949 and banking laws (co-operative societies) Act, 1965.

Though the co operative movement originated in the West, the importance such banks

have assumed in India is really parallel anywhere else in the world. The co-operative banks in

India play an vital role even today in rural financing. The business of co-operative bank in the

urban areas also has increased phenomenally in recent years due to the sharp increase in the

number of primary co-operative banks.

These banks operate mainly for the benefit of rural areas, particularly the agricultural sector

they mobilize deposits and purvey agricultural and rural credit with a wider outreach. They

are main source of institutional credit to the farmers.

Institute of Management Studies and research, Shankaraghatta, Shimoga.


Though much smaller as compared to scheduled commercial banks, co-operative

banks constitute an important segment of the Indian banking system. They have an extensive

branch network and reach out to people in remote areas. They have traditionally played an

important role in creating banking habits among the lower and middle-income groups and in

strengthening rural credit delivery system.

The cooperative movement in India owes its origin to agriculture and allied sectors.

Towards the end of the 19th century, the problems of rural indebtedness and the consequent

conditions of farmers created an environment for the chit funds and cooperative societies.

The farmers generally found the cooperative movement an attractive mechanism for pooling

their meager resources for solving common problems relating to credit, supplies of inputs

and marketing of agricultural produce. The experience gained in the working of cooperatives

led to the enactment of cooperative credit Societies Act, 1904. Subsequently, a more

comprehensive legislation called the Cooperative Societies Act was enacted. This Act, inter

alia, provided for the creation of the post of registrar of cooperative societies and registration

of cooperative societies for various purposes and audit. Under the Montague-Chelmsford

Reforms of 1919, cooperation became a provincial subject and provinces were authorized to

make their own cooperative laws. Under the Government of India Act 1935, cooperatives

were treated as a provincial subject. The item “Cooperative Societies “is a State Subject

under entry No 32 of the State List of Constitution of India.

1.2 Statement of Problem:

The present study is directed towards understanding performance of Shimoga district

co-operative central Bank.

The DCCBs form an integral part of the rural banking system in performing their

activities on co-operative principles. These banks function as the central agency between

SCBs and PACS in the district. The effective credit delivery requires equally efficient and



effective mobilization of resources. Therefore, the analysis and appraisal of efficiency of the

vital functions of the DCCBs i.e., mobilization of resources and deployment of credit receives

more attention of all especially in the context of management planning and decision-making.

And there by helps in enhancing the public faith, confidence assurance and guarantee on the

worked flow of bank while performing the banking activities.

1.3 Need for the study:

The DCCBs play a decisive role in the development of both agriculture sector of the

economy. With the passage of time, DCCBs developed in their growth, nature of the their

operation and scope of their activities. In the process of expansion certain problems and

difficulties cropped up in the various areas of their operation. In such a situation,

management of finances is one of the activities, where DCCBs have to perform more

efficiently. In this connection, DCCBs have to perform more efficiently and have to mobilize

recourses. So, as to enhance their confidence and faith in the public. Therefore, DCCBs

expect to widen their lending base more effectively in order to survive in the changed

liberalized era. Hence, an evaluation of the performance of SDCCB is examined under the

ambit of changed economic scenario.

1.4 Objective of the study:

1. The study the performance of district co-operative central banking activities.

2. To analyze the extent of recovery and over dues of Shimoga district co-operative

central bank, APMC branch.

3. To examine the performance of Shimoga district co-operative central bank in the light

of pre and post economic reforms.

4. To offer suggestions for improving the performance of Shimoga district co-operative

central bank.

5. To study about loans and advances provide by the bank.



1.5 FUNCTION:

1. As per the policy of the RBI, the establishment of cooperative banks in the

district is mainly to fulfill the needs of the farms though PACS.

2. The Shimoga DCC bank accepting deposits from the public’s in the form of

savings bank account, fixed deposit account, and other types of deposits to raise

the resources. The bank is refinanced from Apex Bank, NABARD, Government

and other financial agencies.

1.6 Scope of the study:

The present study made an attempt to study the performance and problems of

SDCCB. The study covered the origin of co-operative movement, growth of credit structure,

place and status of DCCBs. In resource mobilization, loans recovery and overdue of the

banks.

1.7 Sources of data:

The data is collected from primary as well as secondary source.

Primary Data

Primary data gathered through interactions and discussions with the Manager and staff

members of the bank.

Secondary Data

The secondary data extracted from bank’s annual reports, and gathered from the

published sources in the academic libraries and the study also had planned to use different

source through internet.



1.8 Limitation of the study:

The present study is being conducted from the performance of co-operative central

bank. it is not free from limitation.

1. The study is restricted only to the limits of APMC branch Shimoga district.

2. Time limit is also one limitation of the study.

3. The most agriculturists are illiterate and they don’t have any idea about the

study.

4. The bank doesn’t have much online transaction and information.

5. The bank doesn’t have ATM facility.

1.9 Chapter Schemes:

The present study is divided in to following chapter.

1st chapter:

This chapter is an introductory chapter of the study it covers introduction, statement

of problem, objective of the study, need for the study , scope and limitation of the study and

chapterization.

2nd chapter:

Profile of the Bank. It cover brief profile of the district bank, Membership of SDCC

Bank, branch profile and Organizational Structure.



3rd chapter:

Profile of the schemes, deposit schemes, loan schemes, agricultural other service of

SDCC Bank, funds of district co-operative bank, Management of district Co-Operative

Banks, functions of D.C.B, CRR, SRR

4th chapter:

This chapter is including Financing Strategy, Human Resource Management strategy,

Recruitment Policy and Marketing Strategy

5th chapter:

Findings, Suggestions, and Conclusion.



Chapter-2

2.1Profile of the Bank:

The co-operative movement was started in India in 1904 with objective of providing

finance to agriculturists for productive purposes at lower rate of interest and there by a large

number of agricultural credits societies was setup in village under the co-operative societies

act of 1912. This act contributed to the establishment of central co-operative bank and state

co-operative bank to provide are finance to primary agriculture credit societies.

Up to 1949 co-operative banks were not came under Banking Regulation Act. The

government of India made banking regulation act applicable to co-operative societies in 1949

by enacting banking regulation act 1949.

The Shimoga District Co-operative Central Bank Ltd. Shimoga came into existence as

“Central Financing Agency” of Co-operative Societies in the District in 1953 with its Head

Office at Shimoga vide, Register No: ARS/1041/18-10-1953 under all India Co-operative

Societies Act 1912 to cater to the needs of the co-operative institutions and render valuable

services to the general public in the banking field.

Initially it was started with Rs.30,000 as a share capital having single branch, at

present this bank is operating with a own capital of Rs.3711.83 lakh and is having 21

branches across the district.

The District Central Co-operative Bank are the federations of Primary Agricultural

Credit Societies operating in specified area, normally extending to a district. The Head

Offices are established at district headquarters.



Membership of SDCC Bank:

The membership of the bank is restricted to co-operative societies. Which have

registered with in the area of operation referred in law 1(IV) the state government is eligible

for admission. Any individual residing in the year of operation of the bank over 18 years of

age and of sound mind shall be eligible for admission as a nominal member. When applying

for admission, a societies shall submit along with its application a resolution of the board,

may from time to time prescribe both a form and amount for the purpose of becoming

member and may sanction or refuse the application at its discretion. Every member shall hold

more share than the number of shares. Which shell be represent one fifth of the paid-up share

capital of the bank.

The total member of the bank stood at 613 of which 160 are PACS, 22 marketing and

processing societies, 86 urban banks and urban societies and 345 are other types of societies

Branch Profile:

DCC bank APMC yard branch shimoga was established in the year 2001. It is the sub

branch of shimoga city. It is located in APMC yard sagar road, in this place many small scale

firms, arecanut market and gowdens.

As the bank it is helpful for the business persons, agriculture people and for a common man

with limited by this bank.



Bank Name: DCC Bank.

Branch Name: APMC yard.

Director: Dr. R.M. Manjunath.

Assistant director: Vijaidev

Branch Manager: Mr.Umesh

No.Of employees: 7

Deposit Account holders: 5,000

Loan account holders: 701

Under S.H.Groups: 28

Total loan lending Amount: 13, 62, 68, 000

Address: DCC bank APMC Branch

1st Flore RMC building.

Near RMC police station

APMC yard Shimoga: 577 201

City: Shimoga.

State: Karnataka.



Organizational Structure:

President (director)

Managing director

Assistant director

General Manager

Manager

Cashier

Clerk Clerk Clerk



Chapter 3

Profile of the scheme

In DCC bank there are different types of deposit schemes, loan scheme and other schemes,

they are:-

Deposit schemes:

Account types No. of accounts

Saving account 2500

Current account 50

Fixed deposit 200

Recurring deposit 50

S.C deposit 2200

Loan schemes:

Security for Loan

For crop loan following securities are accepted Land Crop 1 or 2 sureties

For Medium Term Loan: Normally level is accepted as security from concerned member of PACS. In case of default agriculture income and land are attached till the amount is recovered.



Maximum Limit for Crop Loan: Maximum amount of loan granted to the members. Following is the details of loan that can be sanctioned for different crops under kiss and credit loan for 1 care of land

Agricultural Schemes and Other Services of SDDC bank:

Self Help Group.

Kisan Credit Card Scheme .

Gramin Bhandaran Yojana(GBY) .

Scheme for cattle farming and dairy farming.

Kisan Chakra Scheme .

Establishment of Bio-Fertilizer Units.

Produce Marketing Loan (PML) .

Self Help Group:


Types of loan No.of beneficiar Total loan amount Rate of interest

Home loan 20 95,00,000 14%

Vehicle loan 300 1,54,00,000 14% & 15%

Salary earning loan 56 19,00,000 16%

Over draft loan to

business

7 11,00,000 16%

Gold loan 250 1,00,00,000 13% to 13.5%

Medium term

industry loan

3 33,00,000 15%

Rural gowden loan 9 8,00,00,000 13.5%

Home pledge 28 1,41,00,000 15.75% to 15.5%

http://www.statebankofmysore.co.in/index.php/advances/agricultural-schemes-/81.html#pml

http://www.statebankofmysore.co.in/index.php/advances/agricultural-schemes-/81.html#biofertiliser

http://www.statebankofmysore.co.in/index.php/advances/agricultural-schemes-.html#kisanchakra

http://www.statebankofmysore.co.in/index.php/advances/agricultural-schemes-.html#combined

http://www.statebankofmysore.co.in/index.php/advances/agricultural-schemes-.html#gby

http://www.statebankofmysore.co.in/index.php/advances/agricultural-schemes-.html#creditcard


Self-help Group has been promoted to reach the un-reached rural poor. The bank had

taken several steps to promote and to credit link the Shimoga. In the year 1999 bank has

started promoting Shimoga in the district. To promote the SHGS, bank has taken assistance

from NGOS, government department, PACS along with the bank staff. At present bank has

promoted 4819 SHGS in the district, distributed the savings and linkage with bank and

PACS.

The APMC branch also providing loan for Self-help group in the last year the bank

was distribute the loan for Rs 2,50,000 @12% interest for 28 Self-help groups. The state

government give the 8% subsidy SHG.

Kisan credit card:

The government of India has directed the commercial/co-operative/RRBS to

introduce kisan credit card scheme for enabling formers to meet their production credit

requirement in a cost effective and flexible manner. our bank caters to the credit requirement

of about 71,300 former. At present bank has issued 64865 kisan credit card and 63583

member are covered under PAIS. So for, 71 formers are benefited under the scheme to the

tune of Rs 31.50lakhs. out of the beneficiaries 56 formers are disabled.

This bank has to provide 7,18,000 kisan credit card loan for the former.

Which formers are taking a kisan credit card loan up to 1 lakh there is no interest, 1

lakh to 3 lakh 1% interest and 3lakh and above 12% interest.

Medium Term Schematic:



Bank had disbursed medium term schematic loans to the formers during the year

2011-12 to the tune of Rs 64.96 lakhs for 43 members. The major finance is involved in

pump sets, drip irrigation, pipelines and areca dryers.

Funds of district Co-operative Banks:

The funds of district co-operative banks consists of share capital reserve fund.

Deposits from members and the general public and loans from the reserve banks of India, the

state Govt. and commercial Banks, however, loans and advances from the reserve Banks

constitute the major part of their funds.

Management of district Co-Operative Banks:

The district co-operative Banks are managed by board of management constituted by

the representative of district co-operative banks and the individual shareholders, however,

district co-operative banks have majority representation in the board of management.

Functions of district co-Operative Bank:

The functions of district co-operative banks are as follows.

1. The main function of district co-operative bank is to lend fund to the central co-

operative banks, which in term advance loan the primary credit societies.

2. They serve as the balancing centers between district central co-operative banks they

attract the surplus funds of some district central co-operative banks and make them

available to the needs central co-operative banks.

3. They borrow funds from the RBI and lend the same to the central co-operative banks

to be used for financing the primary credit societies. So, they act as a link between the



RBI on the one hand. And the central co-operative banks and the primary. credit

societies on the other hand.

4. They accept deposits from the general public in eh urban areas and make them

available for rural credit. Thus, they help the transfer of funds from urban areas to the

rural areas.

5. They exercise general supervision and central over the activities of he central co-

operative banks.

6. They help not only co-operative credit institution but also promote other co-operative

societies.

Cash Reserve Ratio:

CRR is the percentage bank reserve to deposits and notes. The cash reserve ratio also

known as the cash asset ratio. Central bank ordered commercial banks to hold a larger

share of deposits in cash, and raised a key short term lending rate in a bid to high inflation

that has stoked fears of overheating.

Calculation of CRR formula:

Actually maintained-Required to be maintained= surplus/deficit

124043 - 124043 = 36254



Statutory Liquid Ratio:

This is infact to protect us, RBI demands that there should be certain amount that bank

needs to keep in the form of cash, gold or government approved securities and the

remaining is only they have to give it customers either as credit in any form, as loan,

mortgage or something.

This will really help to RBI to control the expansion of bank credits.

Reserve Ratio Of SDCC Bank, Cash Reserve Ratio is 9% and statutory liquid Ratio is

25%.



THE SHIMOGA DISTRICT COOPERATIVE CENTRAL BANK LTD, SHIMOGA

APPENDIX - I

Name of the Bank: The Shimoga District Co-op. Central Bank Ltd., Shimoga

Monthly Statement showing the daily position of maintenance of Cash Reserveunder Section 18 of the Banking Regulation Act 1949 (as Applicable to Co-op.Societies ) during the month of February - 2012

(Rs rounded off to the nearest thousand)Date Amount of Cash Reserve

Required to be Actually Deficit Surplus Remarksmaintained maintained

01-02-2012 87789 124043 -- 36254 --

02-02-2012 87789 111125 -- 23336 --

03-02-2012 87789 136654 -- 48865 --

04-02-2012 87789 107562 -- 19773 --

05-02-2012 87789 99640 -- 11851 --

06-02-2012 87789 99640 -- 11851 --

07-02-2012 87789 117529 -- 29740 --

08-02-2012 87789 128390 -- 40601 --

09-02-2012 87789 122848 -- 35059 --

10-02-2012 87789 126855 -- 39066 --

11-02-2012 87789 125215 -- 37426 --

12-02-2012 87756 126711 -- 38955 --

13-02-2012 87756 126711 -- 38955 --

14-02-2012 87756 126053 -- 38297 --

15-02-2012 87756 126436 -- 38680 --

16-02-2012 87756 126436 -- 38680 --

17-02-2012 87756 130870 -- 43114 --

18-02-2012 87756 133525 -- 45769 --

19-02-2012 87756 151296 -- 63540 --

20-02-2012 87756 151296 -- 63540 --

21-02-2012 87756 126651 -- 38895 --

22-02-2012 87756 139257 -- 51501 --

23-02-2012 87756 153330 -- 65574 --

24-02-2012 87756 148075 -- 60319 --

25-02-2012 87756 130734 -- 42978 --

26-02-2012 88158 114956 -- 26798 --

27-02-2012 88158 114956 -- 26798 --

28-02-2012 88158 125897 -- 37739 --

-- 0 --

-- 0 ---- 0 --



THE SHIMOGA DISTRICT COOPERATIVE CENTRAL BANK LTD, SHIMOGA

APPENDIX - II

Name of the Bank: The Shimoga District Co-op. Central Bank Ltd., Shimoga

Monthly Statement showing the daily position of maintenance of Liquid Assetsunder Section 24 of the Banking Regulation Act 1949 (as Applicable to Co-op.Societies ) during the month of February - 2012

(Rs rounded off to the nearest thousand)Date Amount of Liquid Assets

Required to be Actually Deficit Surplus Remarksmaintained maintained

01-02-2012 731574 787254 -- 55680 --

02-02-2012 731574 774336 -- 42762 --

03-02-2012 731574 799865 -- 68291 --

04-02-2012 731574 770773 -- 39199 --

05-02-2012 731574 762851 -- 31277 --

06-02-2012 731574 762851 -- 31277 --

07-02-2012 731574 780740 -- 49166 --

08-02-2012 731574 791601 -- 60027 --

09-02-2012 731574 786059 -- 54485 --

10-02-2012 731574 790066 -- 58492 --

11-02-2012 731574 788426 -- 56852 --

12-02-2012 731303 789955 -- 58652 --

13-02-2012 731303 789955 -- 58652 --

14-02-2012 731303 789297 -- 57994 --

15-02-2012 731303 789680 -- 58377 --

16-02-2012 731303 789680 -- 58377 --

17-02-2012 731303 794114 -- 62811 --

18-02-2012 731303 796769 -- 65466 --

19-02-2012 731303 814540 -- 83237 --

20-02-2012 731303 814540 -- 83237 --

21-02-2012 731303 789895 -- 58592 --

22-02-2012 731303 802501 -- 71198 --

23-02-2012 731303 816574 -- 85271 --

24-02-2012 731303 811319 -- 80016 --

25-02-2012 731303 803978 -- 72675 --

26-02-2012 734652 787798 -- 53146 --

27-02-2012 734652 787798 -- 53146 --

28-02-2012 734652 798739 -- 64087 --



Chapter 4

Financing Strategy:

Providing kisan credit card facility.

Providing loan facility to farmers and commercial business.

Lending loan to purchasing agriculture machines and tools to eligible

account holders.

Providing loan to farmers up to 1lakh there is interest for craft loan .

Human Resource Management strategy:

The DCC bank APMC yard branch in Shimoga district. The working staffs of this bank are

very effective because human resource strategy.

In this branch 7 human resource members working in place, one manager, one cashier,3

clerks are there.



Recruitment Policy:

They have recruiting the required staff through conducting written test and oral test through

the issued by the government and they have some recruitment prociger.

Any candidate can applied the application for job.

Eligible candidate are the selected the job.

Transfer will be made with in the district not other district banks.

Employees are get the equal rights.

Employees get the promotion after 5 year’s experience.

Increment also considering based on experiance.

Marketing Strategy of APMC Branch Bank:

Advertising through newspaper.

Three field officers in DCC bank.

DCC bank has own website and doing promotional activities

through the website.

Arranging press conference for special issue.



Chapter – 5

Findings:

The administration of the head office is very systematic

ATM Center facility is not there in DCC Bank.

The DCC Bank is a focusing on full utilization of the available source of without

keeping any assets idle. The deposits of the bank are raised over the year and the

advance also moving upward

DCC Bank has good HR strategies to develop the Human resources.

Maximum customers have a savings bank account in the bank.

Suggestion:

a) The resources of the co-operative banks should be improved. Their dependence on

outside resources mush be reduced considerably.

b) The liability of the members of the primary co-operatives should be make limited.

c) Loans should be given not on the basis of the assets of the member but on the basis of

estimated values of production.

d) There is a need of ATM centers.

e) Insurance facilities should be extended for all crop.

f) More employment opportunity provided by the bank to meet the excess work load.

g) The bank has to adopt E-banking system. It reduces the time as well as quick service

to the customer.

h) reduces the time as well as quick service to the customer.

i) The APMC branch is need for good building and internal structure.



Conclusion:

Courtesy of the employee is found excellent which reveals the fact that bank has made a

unique place for itself in the mind of customers. Staff members will interact immediately when

customers approach them, as the result a good customer relationship is built. And also Co-operative

societies suffer from various weaknesses and their performance has been far from

satisfactorily in certain respects. The heavy over dues of co-operative societies are a cause

for concern. The bank should increase the loan facility to the former at reasonable or lower interest

rate. The bank should provide E- Banking facility and ATM facility for the customer.



Bibliography

Bank:

DCC Bank main branch Shimoga.

DCC Bank, APMC yard branch Shimoga.

Website:

www.karnatakaapex.com


Bank Project Final

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