INDEX

2.1 INTRODUCTION

2.2 HISTORY OF RDC BANK

2.3 PROFILE OF THE BANK

2.4 LOGO

2.5 LIST OF BOARE OF DIRECTORS

2.6 BRANCH NETWORK

2.7 OBJECTIVE OF RDCB

2.8 VISION MISSION & VALUES

2.9 AWARDS & CERTIFICATES

2.10 KEY INDICATIRS OF THE BANK

2.11 SERVICES OF THE BANK

2.12 Highlights of the Bank

2.14 Principles Of Co-Operative Bank

2.15 Problems In Co-Operative Banks

2.16 Present Position Of RDC Bank

2.17 ORGANIZATIONAL STRUCTURE OF CO-OPERATIVE BANKS

2.18 Swot Analysis

2.19 Present Position Of RDC Bank

2.1 INTRODUCTION

The co-operative bank of Rajkot ltd. popularly known as RDC bank is

established on 1959 under the strong, effective leader ship of one of the national co-

operative hero honor Shri Vithalbhai Raddiya with the intention of survive the

common man.

The local intensity of the bank in its customer centric approach, hassle free

execution of the decision & technologies are their main difference from commercial

banks, also high level of commitment at all levels of management & self committed

ground level staff makes them different from other commercial banks.

At present RDC bank has achieved a key position in the market of saurashtra. It

has 130+1 H.O. in all over Saurashtra including main branch with the advanced

technologies and educated staff, as it said that “In the emerging competitive business

environment Co-operative banks who adhere to strict financial discipline. Only will

survive” On this basis at present RDC bank is becoming more prestigious in the

banking sector.

2.2HISTORY OF RDC BANK

Shree Rajkot District Co-Operative Bank Ltd. Established on 1st

October, 1959. Then after it always get more and more achievements today. There

are total 791 officers in 129 branches including main branch also among them.

More the 180 officers are being trained at Pune, Bangalore and Lakhnow. They

are sent for training according to the rotation of activity. This bank getting license

in 14th September, 1994 for banking business from the Reserve Bank. From last 28

years their credit classes always remains "A". From the last 9 years they are getting

first number for recovery get in all over state. According to the rules of the

government they are paring maximum dividend from last 10 years. There are their

own buildings in 50 branches and locker facility is available in 57 branches.

Among total loans 82% loans are from priority sector. For the plant of providing

the credit card of the government; this bank is providing the loan of 1.52 lacks for

production to the user of kisan credit card. From among the total deposit lowest

deposit is 36%. Management cost remains always 2% and in this year it is only

1.88% and finally margin is 3.23%. And N.P.A. is 3.76%. For providing the

insurance of Rs. 1 Lac to all the loan takers; the loan takers parse all the express

for that. For the best activity in all the areas; the bank would get "Best

Performance" Award. Merit certificate and price of Rs. 5 lacks; 0 from last 3 years.

Farmers are needs to the money for increasing their farm production at

different section like seeds; new medicines; fertilizers and new technology. That all

the loans are provided by District Co-Operative Banks, commercial and citizen

bank.

2.3 PROFILE OF THE BANK

Name of the Company : Rajkot district Co-Operative Bank Ltd.

Year of establishment : 1959

Address : Shri Rajkot district Co-Operative Bank Ltd.

“Jilla Bank Bhavan”,

Kasturba Road,

Rajkot - 360001.

Phone No. : 0281-2231650-51-52-52.

Registered Office : Shree rajkot district co-operative bank ltd.

“Jilla Bank Bhavan”,

Kasturba Road,

Rajkot - 360001.

Registration No. : 24940:1959

Website : www.rdcbank.in

E-mail Address : info@rdcbank.in

Form of organization : Co-Operative Ltd.

Working Days : Monday to Saturday.

Timing : 10:30 to 5:30.

Weekly Off : Sunday.

Branches : 131 Branches

Accounting Year : 1st April to 31st March.

Auditor : R.D.Shah

Accountants : B.M.Sangani.

2.4 LOGO

2.5 CHART OF BOARD DIRECTORS OF RDC BANK

BOARD OF DIRECTORS 200

Shri Vithalbhai Radadiya

(Chairman Shri)

Shre Ghanshyambhai Khatariya

(Vice Chairman Shri)

Shri Vaghajibhai Boda

Shri Maganbhai Ghoniya (Directo Shri)

Shri Dayabhai Patel (Directo Shri)

Shri Arvindhbai Tagadiya (Directo Shri)

Shri Chhaganbhai Sojitra (Directo Shri)

Shri Gordhanbhai Dhameliya (Directo Shri)

Shri Maganbhai Vadaviya (Directo Shri)

Shri Dineshbhai Bhuva (Directo Shri)

Shri Hardevsingbhai Jadeja (Directo Shri)

Shri Lalitbhai Radadiya (Directo Shri)

Shri Jerambhai Patel (Directo Shri)

Shri Pravinbhai Raiyani (Directo Shri)

Shri Mahamadjavid Pirjada (Directo Shri)

Shri Harjibhai Ajani (Directo Shri)

Shri Dr. Yagneshbhai Joshi (Directo Shri)

Shri Dr. Balubhai Saradva (Directo Shri)

Shri NanubhaiVaghani (Directo Shri)

Shri Harishandrasinh Jadeja (Directo Shri)

2.6 BRANCH NETWORK

Presently the bank has been licensed 131 branches by the RBI. RDC bank is

taking greatest care to ensure that each branch is a compressive reflection of the

brand. All branches are fully computerized.

Strategically located, designed and equipped to consistently deliver a new –age

branch banking experience. All the branches are very well managed by well trained

staff and maintain the reputation of the bank. Recently RDC bank has made reserve

of Rs 5 crores for the development of the core banking system.

2.7 OBJECTIVE OF RDCB

The Rajkot district co-operative bank is an agricultural bank and it

is also based on the development of farmers and agricultural development. And

also our economy is also based on development of villages. And the

developments of villages are connected with the development of farming.

So, the RDCB’S main objective is to develop the farming nation and

development of families which are living in villages. For the speed of

development, RDCB may try to increase the development at farming field.

2.8 VISION MISSION & VALUES

VISION

Technologically Strong

Financially Sound

All India Presence

Personalized Services

Value Maximization

Employee Satisfaction

Skill Maximization

MISSION

Be the Most Preferred Bank

Leveraging Technology

Develop Lifelong Relationship

with Customers

&

Create Value for

Employees and Stakeholders

VALUES

“Together We Prosper"

People are our most important asset.

 At Cooperative you will find modern facilities combined with old-fashioned-

courtesy.  We like to think of our customers as friends.  We feel that the warm

smile of a teller or the helpful suggestion of a customer service representative is

what keeps customers coming back.

2.9 AWARDS AND CERTIFICATE

2.10 KEY INDICATORS OF THE BANK

particular 1984-1992

(Lakh)

1992-2000

(Lakh)

2000-2008

(Lakh)

2008-2009

(Lakh)

Share

capital

681 1016 2515 2745

Reserve &

other funds

1719 5081 10858 13339

Deposits 12915 51522 98211 124366

Investments 4896 31502 67650 117560

Net profit 200 665 2100 1350

2.11 SERVICES OF THE BANK

DEPOSITS:

Current Deposits

Fixed Deposits

Savings Deposits

Recurring Deposits

LOANS:

TERM LOANS:

Housing Loans

Business Loans

Vehicle Loans

Personal Loans

Professional Loans

Loan against NSC/KVP/LIC

CASH LOANS:

Loan to small scale

Other loan

OTHER SERVICES

Locker System

Demand Draft

Our station cheque collection facilities

Loans against Gold Jewellary

AGRICULTURE LOANS

Middle term forming

Annual credit Plan

Self credit plan

Self help group linkage program

Smart Kisan Credit Card

Farmers Club

2.12 Highlights of the Bank

1) Bank was registered in 1959 and have commenced working in 1960

2) Bank is holding business license No. RPCD-AHM-55C date 14/09/1994.

3) Bank is having 130 branches in the district + 1 (head office)

4) Bank having 66 its own branch building including head office.

5) 72 branches having its own safe deposit lockers facilities (Including Head

office)

6) Bank having 611 non subordinate staff + 175 subordinate staff.

7) All 130 branches + Head office are fully computerized.

8) Last 33 year bank is obtain Audit class “A”

9) Bank having shares capital of Rs.25.15 carores, reserve fund and other funds

Rs.110.27 carores, working capital Rs.1, 488.16 carores.

10) Total investment is Rs.675.50 carores (with building, furniture & computer)

11) As on 31st march, 2008 the cost of management was2.03% (Average)

12) Since last 14 year Bank is maintaining first rank in Gujarat state for best

recovery performance. As of 30th june,2007 recovery was 99.90%

13) Rate at invest of fixed deposits are between 5% to 9.50%

14) Cost of management of the societies is at the level of 2.21 percentage (As on

31-03-07)

15) Bank has received five times in raw the “Best Performance Award” for the

better performance in all aspects of working at the state lever along with the

shield certificate of merit and cash prize from NABARD.

16) To implement K.C.C. Scheme at very first year bank has provide total

expense of Rs.16,87,500 related K.C.C. Card of stationery expense.

17) Bank is first in India for launching “Smart Kishan Credit” from year 2004-05

as a additional facility of K.C.C. holder.

18) The total deposit is Rs.982.11 crores. Which consist 58.28% law cost deposit.

19) Bank has obtained loans of Rs.345.03 crores.

20) Total advance o/s is Rs.755.49 crores.

21) Bank is earning profit since its beginning. As on 31st MARCH, 2008 after

enough provisioning the Net Profit was of Rs.21.00 crores.

22) Bank is paying maximum dividend according to the provision of the act,

since last 15 years.

23) As of 31-03-08 financial margin of the bank is 3.69% and net margin is

1.84% lever (average).

24) Capital risk adequacy ratio as on 31-03-07 is 11.72%.

25) Maximum short term agriculture. Loan of interest during the year 2007-08

was Rs.779.49 crores at the rate of interest of 7% to farmers and with 6.00%

to PACS as per GOI’S criteria.

26) Out of 611 Non-subordinate staff 226 employees are trained as of date

31/03/2008.

27) As on year ending 2008 there is Non-performing assets were Rs.15.66 crores.

Thus gross NPA 2.07% and net NPA is 0 (zero) % of total advances.

28) As per prudential norms bank has made the provision of Rs.27.47 crores

against the requirement of Rs.17.42 crores for NPA principal and interest.

29) As on 31/03/08 the total number of an affiliate borrowing PACS are 435 our

of these 424 are profit making.

30) Each societies having its own godown facilities and having independent well

qualified secretaries.

31) Average work load per staff during the year was Rs.2.23 crores.

32) There are 451 PACS affiliated with the banks as on 28-12-07 out of 451

PAACS 4 are overdue.

33) Bank has introduce a group P.A. insurance policy to cover the risk of Rs.1.50

lakhs for the regular loanee members of the societies.bank has paid Rs.157

lakhs out of total premium of Rs.218 lakhs.

34) Bank has started to provide medical benefit scheme for PACS member from

dt.22-06-04 and end of dt.28-12-07 total paid Rs.32, 08,000 to 603 kidney,

stone, cancer, brain ham rage, paralysis & heart attach patients as social

obligation of bank.

35) Bank is always doing preplanning for the better recovery. Bank is arranging

regular meeting at taluka lever places for the proper planning, in presence of

branch manager, inspectors, zonal officers, DY.Manager, managers, local

directors and secretaries of the societies. Rajkot district bifurcated in five zone

headed with DY.manager zonal. Every possible effort is made for better and

in time 100% recovery.

36) Bank has send 67 PACS secretaries for training at NICm gandhinagar & paid

their expense @ 1000 per each.

37) There are 632 total storage godown with PACS of which 135 PACS are with

201 godown of National grid scheme.

38) 1.176 godown’s loan was disbursed under “Rural Godown Scheme” ( Credit

link capital investment subsidy scheme ).

39) As per NABARD and G.O.I guidelines bank has issued 1.77 lakhs Kishan

Credit Cards.

40) Total priority sector loan o/s of Rs.603.06 crores as on 31/03/07.

41) Bank has issued 1,321 swarojgar credit card under NABARD’S scheme.

42) There are 1,053 SHG s & SB A/C with bank branches. And bank has

sanctioned loan of 0.62 crores for 202 SHGs.

43) Bank is awarded for S.H.G linkages programmed for TWO years.

44) The total credit plan for rajkot district under service area approach is Rs.2,

290.50 crores. Against this, the bank envisaged the credit outlay of Rs.1,

051.83 crores. It has largest i.e. 46% share in ACP 2008-09 of Rajkot District.

45) This bank is the first to launch “Mahalxmi Self Help credit Card” scheme for

the members of self help groups with the motto getting loan smoothly from

the bank

2.14 Principles Of Co-Operative Bank

1. VOLUNTARY ASSOCIATION OR MEMBERSHIP: -

The resolution of the congress points out. “Membership of a cooperative

society should be voluntary and available without artificial restriction or any

social, political, racial or religious discrimination, to all persons who can make

use of its services and are willing the accept the responsibilities of

membership.

2. DEMOCRATIC CONTROL

The resolution of the congress points out. “Co-operative societies are

democratic organizations. Their affairs should be administration by persons

elected or appointed in a manner agreed by the members and accountable to

them members of primary societies should enjoy equal rights of voting (one

member, one vote) and participation in decisions affecting their societies in

other than primary societies should be conducted on a democratic basis in a

suit? Old from”. The formulation of the principle of democratic management

of co-operatives bodies has several implications.

3. MEMBERS ECONOMIC PARTICIPATION

Members contribute equitably to and democratically control the capital

of their co-operatives. At least a part of that capitals usually the common

property of the co-operatives. Members usually receive limited compensation.

If, any, on capital subscribed a condition of membership. Members allocate

surpluses for any or all of the following purpose developing their co-operative

possibly by setting up reserve a part of which would be indivisible benefiting

members in portion their transactions with the co-operative and supporting

other activities approved by the membership.

4. AUTONOMY AND INDEPENDNCE

Co-operative is independence self help organizations controlled by

their member. If they enter into agreements with other organizations including

governments. Or raise capital from external sources. They do so on terms that

ensure democrat control by their member and maintain their co-operative

autonomy.

5. CO-OPERATIVE EDUCATION, TRAINING AND

INFORMATION

All co-operative society should make provision for the education of

their member, Officers and employees and of the general public. In the

principles and techniques of co-operation, both economic and democratic, So

that they can contribute effectively to the development of their co-operatives.

They inform the general public particularly young people and opinion leaders

about the nature and benefits of co-operation.

6.MULTICITY OR COOPERATION AMONG COOPERATIVES

All co-operative organizations, in odder to best serve the interests of their

member and their communities should actively cooperate in every practical way

with order cooperatives at local, national and international levels. It noted that

he process of concentration. And common action, to reduce costs and expand

business is gathering momentum in other forms of organization.

7. CONCERN OF COMMUNITY

Co-operatives work for the sustainable development of their community’s

through policies approved by their members.

2.15 Problems In Co-Operative Banks

1. RECOVERY PROBLEM

It’s easy to provide money but it’s very tough to get it back at time.

Increasing ratio of willful defaulter’s short rainfall, drought, scarcity etc.

Which are playing vital role in the recovery procedure Because of any above

reasons if any members are not playing back then co-operative bank has to pass

through many legal steps for recovery purpose which are very difficult and

time consuming. It is not easy to remain and also maintain number one position

in recovery against many unfavorable affected factors.

2. TECHNICAL DEVELOPMENT

The success of a financial supermarket lies in its research to a greater

number of individuals and in providing them instant and satisfactory services.

These objectives depend seriously on the development of bank technology,

which is a proven fact. A large number of Indian Co-operative banks still need

to device any benefit out of any such changes.

3. PROBLEM REGARDING LAW

Co-operative bank has to follow rules and regulations of the relating

acts and laws. Sometimes this also affects implementation and execution of

proper policies. More government interference is also they have to follow.

4. COMMUNICATION GAP

It most of co-operative bank is not fully computerized in all branches.

So, communication gap between societies, branches and head office playing

vital role in increasing problem of co-operative bank.

5. DECREASING INTEREST RATE

Co-operative banks are also facing problem of decreasing interest rate.

As co-operative banks are making investment in other banks as deposit but

interest rate is decreasing. So comparatively they are getting very less return.

In 1998 average rate on investment was 13.36% which come down to 13.17%

in1999 and to 12.83% in the year2000.

6. POOR AND DECLINING CUSTOMER SERVICE

An important side effect of the growth of co-operative banking has been

a sharp decline in the customer service. The service to the customer is

becoming more and more impersonal, indifferent and inefficient.

7. LACK OF PROFESSIONAL MANAGEMENT

In co-operative bank mostly Board of directors are not professional

enough. So it create hierarchy of problems and also there are not enough tasks

fore for the fund management. Apart from this promotion is also given on the

basis of selection plus seniority.

8. DIFFERENT CO-OPERATIVE ACTS

Different co-operative acts are there in different states. This must be

revised to a model co-operative act at national level. On that all states can

understand in same manner.

2.16 Present Position Of RDC Bank

INDEX PERTICULARS PRESENT POESITION IN 2009

01. Share capital 25.19 crores

02. Reserve & other fund 127.95 crores

03. Working capital 1488 crores

04. Total deposits 982 crores

05. Total investment 676 crores

06. Gross Profit 24.95 crores

07. Net profit 21.00 crores

08. No. of branches 131 + H.O.

09. Audit class “A”

10. No. of employees 786

11. Locker Facility 24 Hours 365 Days

12. NPA “0” (ZERO)

2.17 ORGANIZATIONAL STRUCTURE OF CO-

OPERATIVE BANKS

The co-operative banks have been established under the co-operative

societies Acts of different states. Hence the state governments regulate these

banks. Only the state co-operative banks have assessed to the reserve bank of

India.

The co-operative banks have a three-tier set up. The state co-operative bank

is the apex institution in a state, while central district co-operative bank function

at district level and primary credit societies work at the village level. Co-operative

banks function with in a given area. Their operations are restricted to a particular

state in case of a state Apex bank, a particular district incase of a district co-

operative bank and to a local area incase of a society. It proceeds on the principals

of co-operation.

Organizational structure of co-operative banks

(1) Primary co-operative banks

(2) State co-operative banks

(3) District co-operative banks

Organizational structure of co-operative banks

Co-operative Credit

Institution

Co-operative Credit

Institution

Rural Co-operative

Credit institution

Institution

Rural Co-operative

Credit institution

Institution

Urban Co-operative

Bank

Urban Co-operative

Bank

Short Term

Structure

Short Term

Structure

Long Term

Structure

Long Term

Structure

State Co-operative

Banks

State Co-operative

Banks

District central

Co-operative

Banks

District central

Co-operative

Banks

Primary Agricultural

Credit Societies

Primary Agricultural

Credit Societies

StateCo-operative

Agriculture & rural Dev. Bank

StateCo-operative

Agriculture & rural Dev. Bank

Primary cooperative agriculture &

Rural dev. Bank

Primary cooperative agriculture &

Rural dev. Bank

2.18 Swot Analysis

STRENGTHS ::-

Net NPA Zero since inception.

Professional management & Co-Operate team spirit.

Strong Brand equity.

Fully computerization and Automation.

Respectable ranking and position in Gujarat’s top Co-Operative banks.

Profitability and sound liquidity.

Branches in all most developed parts of Saurashtra.

WEAKNESS ::-

Lack of marketing expertise.

Lack of modern management concepts.

Sometimes communication gap is found which signs lack of professionalism.

Lack of scheduled status which may affect expansion of their business.

Lower volume of advances due to higher rate or interest.

Strong need for a more disciplines, smooth and sophisticated.

Environment for working and customer service.

OPPORUNITIES ::-

General insurance business at higher level.

No. of branches can be increased in all overall state.

After getting scheduled status we may apply multi state bank to expand their

business.

Introduction of various retail services.

Tax consultancy can be provided by using the skills of the professional

personnel and experienced seniors.

THREATS:-

Confidence crises in the co-operative banking sector can disturb the bank’s

progress.

Changes in govt. rules and regulation.

Cut throat competition and entry of new foreign bank and its sound financial

structure.

2.19 Present Position Of RDC Bank

INDEX PERTICULARSPRESENT POESITION IN

2009

01. Share capital 25.19 crores

02. Reserve & other fund 127.95 crores

03. Working capital 1488 crores

04. Total deposits 982 crores

05. Total investment 676 crores

06. Gross Profit 24.95 crores

07. Net profit 21.00 crores

08. No. of branches 131 + H.O.

09. Audit class “A”

10. No. of employees 786

11. Locker Facility 24 Hours 365 Days

12. NPA “0” (ZERO)