A

PROJECT REPORT
ON

COMPARITIVE STUDY
OF

LOAN AND ADVANCES

PROCEDURES
OF
URBAN CO-OPERATIVE BANK
WITH
BANK OF BARODA AND PUNJAB NATIONAL BANK

Submitted in Partial Fulfillment of Master In Business

Administration Program (Session 2007-09)
SUBMITTED TO

SUBMITTED BY

MR. NITIN PATHAK

(Project Guide)

SHIKHA RASTOGI
MBA 2ND YEAR (3RDSEM)
(Roll Number-0701570097)

Invertis Institute of Management Studies

Bareilly
(Affiliated to U.P.Technical University, Lucknow)

PREFACE

Training is an integral part of the curriculum of master of business administration and so I

have done training in the URBAN COOPERATIVE BANK LTD. Bareilly, I have an
observation that the management of co-operative society is efficient and experienced. The
organization grows to the extent desire. One of the most important elements necessary for
sound development of a co-operative organization is perfect knowledge of co-operative
fund management and other services (Specially Loan Service) to be possessed by the
bank managers.
When I got a very good opportunity of undergoing URBAN COOPERATIVE
BANK for training purpose I had made up my mind to pay extra attention towards the
study of co-ope f management.
The main objectives of summer training are as follows:

To help the individual in making better decisions and effective problem solving.

To help in encouraging and achieving self-development and self-confidence.

To provide information for improving leadership, knowledge, communication

skills and attitudes.

To help in eliminating fear in attempting new tasks.

To implement, theoretical knowledge practically

As I know that we are living, in a competitive world and there is a cut-throat

competition in a market. The co-operative movement was started to overcome the
exploitation of the weaker by the financially well built people. Among all the institutional
agencies co-operatives play an important role in providing credit to urban people.
Therefore, to analyze it, I was given the topic for research, Loan & Advances
Procedure of Urban Co-operative Bank with Bank of Baroda & Punjab National Bank.

ACKNOWLEDGEMENT

We all know that golden to success is teamwork. This project is no exception to the rule. As a student I
learn many things but unless I put all with the practical Knowledge as how things really work and what
are the problems generally arise, I can not expect to be an efficient MBA. So I think summer project is
an indispensable part of the course.
The project work bears the imprint of several persons. I have a deep sense of gratitude
and honor towards them. First of all I would like to present my sincere thanks to Shri
P.C.Balayan (GM), URBAN COOPERATIVE BANK, and Bareilly.
Secondly, I express my deep gratitude to Mr.Jagdish Babu Gangwar, Branch Manager
of URBAN COOPERATIVE BANK who provided me the opportunity to under go summer
training in an organization of such a high repute and prestige
My heartfelt gratitude and special thanks to Mr. Hukum Singh Gangwar, Junior Officer of
URBAN COOPERATIVE BANK. Who had guided me in a very kind and helpful manner during the
completion of the whole project and I would not be to do this project without valuable guidance of him.
I am very much thankful to my Chairman and All Other employees of bank to supply me the required
information and data in spite of busy official and academic schedule
I express my deepest sense of gratitude to my project guide Mr. Nitin Pathak, who took very
keen interest in guiding me throughout my project work and sparing his valuable time for me.
Best efforts are made to cover all the aspects related to the project to provide a complete and
brief knowledge to the readers

SHIKHA RASTOGI
MBA 3rd SEM

CONTENTS
1. Front Page/Title Page
2. Certificate of Industrial Training
3. Preface
4. Acknowledgement
5. List Of Contents
6. List Of Tables
7. List Of Graphs
8. Anatomy Of The word Project
9. Introduction
a. Growth Of Co-operative Movement In India
b. Aims & Objectives Of Co-operative Credit In India
c. Structure & Spread Of India
10. History Of Urban Co-operative Bank In India
11. Profile Of The Urban Co-operative Bank
a. Area Os Operation
b. Branch
12. Vision,Mission,Objectives & Goals Of Bank
13. Services Of Bank
14. Loan & Advances Procedure
a. Policy & Procedure Of Bank
b. Types Of Loan Provided By Bank
c. Requirements of Taking Home Loan
15. Comparative Study Of Home Loan Of This Bank With Other Banks
16. Need Of Study or Research Problem
17. Objectives Of Study
18. SWOT Analysis

19. Research Methodology

a. Research Definition & Its Types
b. Objectives Of Research
c. Importance Of Research
d. Method Of Study & Data Collected
e. Statistical Tools Of Study
f. Questionnaire and its Format
20. Data Analysis And Interpretation(In Graphical Form)
21. Developments
22. Conclusions & Findings Of Study
23. Suggestions & Recommendations
24. Identification Of Beneficiaries
25. Limitations Of Study
26. Bibliography
.

LIST OF TABLES
1. Presently Co-operative In India
2. Non Credit Co-operative In India
3. Structure Of Urban Co-Operative Bank
4. Schedule Of Customer Service
5. Composition Of Board Of Directors
6. Data Of Working Capital & Investments
7. Progress Of Deposits
8. Deposit Schemes
9. Progress Of Loan & Advances
10. Interest Rates On Loan & Advances
11. Comparative Study Of Home Loan With Other Banks
12. Income , Expenditure & profit
13. Deposit Mix
14. Borrowing Power Of Bank
15. Financial Progress Report Of Bank
16. Employee Productivity

LIST OF CHARTS
1. Indian Credit Co-operative Banking Structure
2. Detail Structure Of Indian Credit Co-operative
3. Administrative Set-up
4. Progress Of Deposit
5. Progress Of Loan & Advances
6. Income, Expenditure & Profit
7. Financial Progress Report O Bank
8. Data Analysis & Interpretation Charts

1.

ANATOMY OF THE WORD PROJECT

Each alphabet of the word PROJECT itself refers to some meaning. Before giving into
project work, it is necessary to know what PROJECT denotes. The word reveals the
following meaning:

PLANNING

: For arranging & mobilizing Resources.

RESPIRES

: For promotion of planning.

OVERHEAD EXPENSES

: In estimated survey design & Layout.

JOINT EFFORTS

: Must for successful completion

ENGINEERING

: An amicable solution.

CONSTRUCTION

: Must for basic framework.

TECHNIQUE

: The advantage for any project.

CHAPTER-1
INTRODUCTION

India is a country where 1,027,050,247 inhabitants living in the area of 328.73 million
hectares of which 70% of the population lives in rural area. It has 28 states, 7 unions
territories, 267 districts and total of 6, 82,862 villages. Agriculture is the predominant
sector in the economy which contributes 25% in GDP.Out of 397.22 million total workforces, 58.4% engaged in agriculture.

The country categorized under the category of developing countries which are
featured by low per capita income , greater dependence on agriculture, large scale of
unemployment, low level of productivity, high density of population and suffering of
capital deficiency. The per capital income of an Indian was 450 US$ in 1999 and 37% of
the population were BPL.It has also 12.5% saving rate which hampers the capital
formation and low productivity.

The co-operative movement in India is the largest in the world. There are above
5 lakhs co-operative societies network all over the country having membership of above
20.45 crores. At the grass root level there are more than 1, 00,000 primary Agricultural
credit societies having above 8.74 crores peasant members. Total 98% of the villages of
the country are availing different financial services. India is a first developing country in
the world which has successfully tried economic development in both rural and urban
areas through co-operative movement. The co-operative movement has become veins and
arteries of the blood of social life of Indian people

A. Growth Of Co-Operatives Movement In India

The growth of co-operative movement in India is divided into three parts viz. Preindependence period and present scenario

1.1. Pre-independence period

During the pre-independence period, the co-operative credit societies act,
1904 which gives rise to the co-operative movement and also the co-operative
societies act, 1912 cover the rise of all other co-operative societies in India. The cooperatives emerged as a socialistic strong force against the exploitation and promoted
and protected the economic interest of the weaker sections. It gives life blood to the
labors, the workers, the artisans and the consumers. It gives the loud voice of unity to
check the exploitation of poor class people without considering their caste, sub-caste
and religion.
Thus, it also helped in social justice and quality of man and woman. It built
the society for the individual as well as for development of all the members of the
society. Thus co-operative movement has played dynamic significant role in the life of
Indian poor.

1.2. Post Independence period

The attainment of independence in 1947 and the consequent establishment
of national government in the country came in as a fountain of inspiration for the cooperatives movement.
Unlike the European countries, the development of co-operative institutes
in India was thrust up or by the government. It has taken various steps to organize,

reorganizes and develops co-operative movement from time to time as per the
recommendations of various committees such as:

All Indian Rural Credit Committee 1951-54.

Committee on Co-operative Law, 1956.
MIRDHA Committee on Co-operation, 1965.
Chief Ministers and ministers conference for co-operation 1968.
Committee on Co-operative Law for democratization and professionalization
of management in co-operative, 1985.

The Co-operative Planning Committee has stated rightly that the cooperative society has an important role to play as most suitable medium for the
democratization of economic planning. It provides the local unit which can fulfill
the dual function of educating public opinion in favor of a plan and of
executing.Infact; co-operative movement is for the basis of planned growth and
socio-economic development of the marginal poor.

In this period number of societies with different objectives of

economic activities was started functioning. There are two main trends one is
attached to the rural sector and the other is attached to the urban sector. The rural
trend

includes

rural

credit,

supply

of

agriculture

inputs

such

as

seeds,fertilizers,pestisides and insecticides and services supportive for agricultures

and ;agro-based cottage and small scale industries,processing,storage,coldstorage
and marketing units of agricultural produce ,dairy, animals husbandry labor
construction, public distribution systems.

The growth of co-operative movement has given birth to

diversification of activities such as the co-operatives has

also entered in

manufacture of fertilizers; pesticides and insecticides to fulfill the needs of the

farmers, consumers, workers and laborers. It has helped economic development
and also provided employment to the rural unemployed people. The dairy
development like the ANAND and their most popular brand AMUL has
provided the socio-economic development of the rural

Poor of Indian Farmers is possible through co-operative movement

at large scale. The most developed part of co-operatives is credit co-operatives and
it has risen to core competency of Indian co-operative movement. The financing
structure is based on three tier system-Apex co-operative Bank at the state level,
primary agriculture credit societies and urban credit societies at the primary grass
root level and the central co-operative banks at the district level at the middle level
and act as the intermediaries also. The land development bank also has three tier
operating structure. In some states, these land development banks have unitary
structure and their branches are spread all over the state.

1.3. PRESENT SCENARIO

The Reserve Bank of India is the central bank of the country entrusted with
monetary stability, the management of currency and the supervision of the financial as
well as the payments system. Established in 1935, its functions and focus have evolved in
response to the changing economic environment. Its history is not only intrinsically
interwoven with the economic and financial history of the country, but also gives insights
into the thought processes that have helped shape the country's economic policies.
Reserve Bank of India (RBI) says a bank is a bank, whether it is in the public sector,
private sector or the co-operative sector as regulations are applicable to all equally. But
co-operative banks are plainly unhappy at this equal treatment.

The all India cooperative week is celebrated each year during the third week
of November coinciding with the birthday of late Pandit Jawaharlal Nehru on 14 th NOV.
This year India cooperative movement was celebrated on 53rd all India cooperative week
from 14-20 November, 2006. The main theme of the cooperative week is green
revolution and socioeconomic programmes through cooperatives.

Co-operatives have been the part of the system, since man learnt to share.
In concrete form, co-operatives have been part of the economic system for more than 100

years now. Apart from the public and private sectors, they have been playing a significant
role and theoretically there is no better organizational form than the cooperatives. They
have been recognized as a balancing factor between the public and the private sectors.

In the present context of market economy, co-operatives are much more

relevant than in thePAST.In the globalize world, when the policies are more focused on
global market and everything is viewed in the context of wider socio-economic system,
the vulnerable sections of the society are left out.

Co-operatives at present time are ideal institutional device for the growth
of vulnerable and marginalized sections of the society. They can enable these groups to
seize opportunity thrown open in the globalize economy. The National bank of
Agriculture and rural development (NABARD), is the supervisory authority for rural
cooperatives, NABARD was set up in 1982 under the aegis of the RBI for supervision
and Refinance of Rural Cooperatives.
The following table is describes the presently cooperatives:
(All India Level)
S.No.

Particulars
No. Of Co-operatives
cooperatives 31

1.

State

2.

banks(SCB)
District central cooperatives 365

banks(DCCB)
Primary

4.
5.
6.

societies
Regional rural banks
20
Urban cooperative banks
1872
Primary
cooperative 768
agriculture

agricultural 105735

&

rural

development bank
NON CREDIT COOPERATIVES

Sr.No.

Processing co-operatives

No. Of Co-operatives

1.

1.1 Sugar cooperatives

244

1.2 Spinning cooperatives

137

2.

Consumer cooperatives
2.1 District Consumer Cooperatives

666

2.2 Primary Consumer Societies/PACS/LAMPS

2323

3.

4.

Marketing Cooperatives
3.1 State Special Commodity marketing Federation

29

3.2 District/Central Marketing Societies

545

3.3 General Purpose Primary Marketing Societies

3216

3.4 Special Commodity Marketing Societies

5585

Handloom/Power loom(Industrial Cooperatives)

4.1 Handloom Cooperatives

18398

a)Primary Handloom Weavers

4.2 Power loom Cooperatives

31454

b) Primary Industrial Cooperatives

5.

Dairy Cooperatives
Milk Producers Societies

6.

Fishery Cooperatives
Central

Fishermens

Cooperatives

&

Primary 10471

Fishermen Cooperatives
7.

Housing Cooperatives
7.1 Primary Cooperatives Housing Societies

8.

72040

Tobacco Cooperatives
8.1 Primary Tobacco Growers Cooperatives

217

Urban Co-operative Banks (UCBs) are an important part of the financial

system in India. It is, therefore, necessary that the UCBs emerge as a sound and healthy
network of jointly owned, democratically controlled, and ethically managed banking

institutions providing need based quality banking services, essentially to the middle and
lower middle class and marginalized sections of the society.

B) AIMS & OBJECTIVES OF THE CO-OPERATIVE CREDIT IN

INDIA

Co-operative credit is guiding by the principles of mutual help and

thrift and is actuated by the service rather than profit motive. According to Prof.
Horace Belshaw, the aims of co-operative credit are:.

1. To promote thrift so as to increase the supply of funds

2. To draw on sources outside the society.
3. To promote the effective use of loans and to reduce the risks in granting loan by
careful and continuous supervision.
4. In consequence, to reduce risk to lenders and to credit co-operative by adequate
security.
5. By this means and by low cost of management to keep the cost of credit as low as
possible.
6. To endeavor to make societies so credit worth that, they can obtain sufficient
funds to finances other co-operative under takings.

c) STRUCTURES AND SPREAD OF UCBS

.

In terms of geographical spread, UCBs are unevenly distributed across the

states. Five states viz., Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu
account for 1523 out of 1924 banks that presently comprise the sector. Further, the UCBs
in these states account for approximately 82% of the deposits and advances of the sector
as may be seen from the table below:

INDIAN CREDIT CO-OPERATIVE BANKING STRUCTURE

In a tabular form, the co-operative credit structure can be explained like this:Co-operative Credit
Short & Medium Term Credit through
State Co-op. Banks in Each State
Long Term Credit through Central
Land Mortgage Bank

Central Co-op. Banks at District

Level

Primary Land Mortgage Banks

Primary Credit Societies in the

Villages
As described above, the structure of the credit movement take the pyramid
shape i.e. starting from below with primary societies, it goes up to the apex level.
In general , the co-operatives credit structure in India , so far as rural finance is
concerned , consists of two wings one dealing in short term and medium term credit and
the other in long term credit. The short-term and medium term credit structure is a three
tire one. That is state co-operative bank/ district central/co-operative bank/DCCB/primary
societies/PACS.

The primary agriculture credit societies at the village level form the base.
It is on this, that the whole edifice of co-operative credit is based they federate into
district central co-operative bank usually at the district level. At the state these are
federated into an apex bank serving the entire state. The apex bank in its turn was closely

linked with the reserve bank of India and with National Bank for Agricultural and rural
development (NABARD) since July 1982, which provides among others, considerable
financial assistance to agriculture through the state co-operative banks, district central cooperative banks and primary societies.

The long term credit structure consists of two tires. There are primary land
development banks at the base/generally at talk/block level and central land development
banks at the state level. The long term credit is provided by central land development
bank for each state of apex level. The apex bank operates through primary land
development banks and where primary land development banks do not exist, it operates
through primary and development banks and where primary land development banks do
not exist, it operates through its own branches or district central co-operative banks.

The detail structure of co-operative credit in India is in the following way:

Co-op. credit
structure

Agricultural credit

Non-agricultural
Credit Societies

societies

Short-term &
Medium-Term

Industrial Co-op.
Bank

Long - term

State-Co-op. Bank

Central land
mortgage/Develop
ment banks

Central Co-op. Bank

Primary Land
Mortgage/Develop
ment Bank

State Co-op. Banks

Central Industrial
Banks

Central Co-op.
Banks

Primary Nonagricultural Credit

Societies

Primary
Agricultural Credit
Societies

Urban Cooperative Banks

Grain Bank

Employers Co-op.
Credit Societies

BRIEF HISTORY OF URBAN COOPERATIVE BANKS IN INDIA

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,
till 1996, were allowed to lend money only for non-agricultural purposes. This distinction
does not hold today. These banks were traditionally centered on communities, localities
work place groups. They essentially lent to small borrowers and businesses. Today, their
scope of operations has widened considerably

The origins of the urban cooperative banking movement in India can be

traced to the close of nineteenth century when, inspired by the success of the experiments
related to the cooperative movement in Britain and the cooperative credit movement in
Germany such societies were set up in India. Cooperative societies are based on the
principles of cooperation, - mutual help, democratic decision making and open
membership. Cooperatives represented a new and alternative approach to organization as
against proprietary firms, partnership firms and joint stock companies which represent the
dominant form of commercial organization.

THE BEGINNINGS
The first known mutual aid society in India was probably the Anyonya
Sahakari Mandali organized in the erstwhile princely State of Baroda in 1889 under the
guidance of Vithal Laxman also known as Bhausaheb Kavthekar. Urban co-operative
credit societies, in their formative phase came to be organized on a community basis to
meet the consumption oriented credit needs of their members.

Salary earners societies inculcating habits of thrift and self help played
a significant role in popularizing the movement, especially amongst the middle class as
well as organized labor. From its origins then to today, the thrust of UCBs, historically,

Has been to mobilize savings from the middle and low income urban groups and purvey
credit to their members - many of which belonged to weaker sections.

The enactment of Cooperative Credit Societies Act, 1904, however, gave

the real impetus to the movement. The first urban cooperative credit society was
registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October,
1904. Amongst the prominent credit societies were the Pioneer Urban in Bombay
(November 11, 1905), the No.1 Military Accounts Mutual Help Co-operative Credit
Society in Poona (January 9, 1906). Cosmos in Poona (January 18, 1906), Gokak Urban
(February 15, 1906) and Belgaum Pioneer (February 23, 1906) in the Belgaum district,
the Kanakavli-Math Co-operative Credit Society and the Varavade Weavers Urban Credit
Society (March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most
prominent amongst the early credit societies was the Bombay Urban Co-operative Credit
Society, sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on
January 23, 1906..

The Cooperative Credit Societies Act, 1904 was amended in 1912, with a
view to broad basing it to enable organization of non-credit societies. The Maclagan
Committee of 1915 was appointed to review their performance and suggest measures for
strengthening them. The committee observed that such institutions were eminently suited
to cater to the needs of the lower and middle income strata of society and would inculcate
the principles of banking amongst the middle classes.

The committee also felt that the urban cooperative credit movement was
more viable than agricultural credit societies. The recommendations of the Committee
went a long way in establishing the urban cooperative credit movement in its own right

In the present day context, it is of interest to recall that during the banking crisis of 191314, when no fewer than 57 joint stock banks collapsed, there was a there was a flight of
deposits from joint stock banks to cooperative urban banks.

There was the general realization that urban banks have an important role
to play in economic construction. The Indian Central Banking Enquiry Committee (1931)
felt that urban banks have a duty to help the small business and middle class people. The
Mehta-Bhansali Committee (1939), recommended that those societies which had fulfilled
the criteria of banking should be allowed to work as banks and recommended an
Association for these banks. The Co-operative Planning Committee (1946) went on
record to say that urban banks have been the best agencies for small people in whom Joint
stock banks are not generally interested.

The first study of Urban Co-operative Banks was taken up by RBI in the
year 1958-59. The Report published in 1961 acknowledged the widespread and
financially sound framework of urban co-operative banks; emphasized the need to
establish primary urban cooperative banks in new centers and suggested that State
Governments lend active support to their development. In 1963, Varde Committee
recommended that such banks should be organized at all Urban Centres with a population
of 1 lakh or more and not by any single community or caste. The committee introduced
the concept of minimum capital requirement and the criteria of population for defining
the urban centre where UCBs were incorporated.

DUALITY OF CONTROL
However, concerns regarding the professionalism of urban cooperative
banks gave rise to the view that they should be better regulated. Large cooperative banks
with paid-up share capital and reserves of Rs.1 lakh were brought under the preview of
the Banking Regulation Act 1949 with effect from 1st March, 1966 and within the ambit

of the Reserve Banks supervision. This marked the beginning of an era of duality of
control over these banks. Banking related functions (viz. licensing, area of operations,
interest rates etc.) were to be governed by RBI and registration, management, audit and
liquidation, etc. governed by State Governments as per the provisions of respective State
Acts. In 1968, UCBS were extended the benefits of Deposit Insurance.

The Hate Working Group (1981) desired better utilization of banks' surplus
funds and that the percentage of the Cash Reserve Ratio (CRR) & the Statutory Liquidity
Ratio (SLR) of these banks should be brought at par with commercial banks, in a phased
manner. While the Marathe Committee (1992) redefined the viability norms and ushered
in the era of liberalization, the Madhava Rao Committee (1999) focused on consolidation,
control of sickness, better professional standards in urban co-operative banks and sought
to align the urban banking movement with commercial banks.

A feature of the urban banking movement has been its heterogeneous

character and its uneven geographical spread with most banks concentrated in the states
of Gujarat, Karnataka, Maharashtra, and Tamil Nadu. While most banks are unit banks
without any branch network, some of the large banks have established their presence in
many states when at their behest multi-state banking was allowed in 1985. Some of these
banks are also Authorized Dealers in Foreign Exchange

RECENT DEVELOPMENTS
Over the years, primary (urban) cooperative banks have registered a
significant growth in number, size and volume of business handled. As on 31st March,
2003 there were 2,104 UCBs of which 56 were scheduled banks. About 79 percent of
these are located in five states, - Andhra Pradesh, Gujarat, Karnataka, Maharashtra and

Tamil Nadu. Recently the problems faced by a few large UCBs have highlighted some of
the difficulties these banks face and policy endeavors are geared to consolidating and
strengthening this sector an Only a few of Indias over 2,000 urban co-operative banks
today take pride in creating banking habits among the lower and middle-income groups.

Theoretically, these banks are positioned to be responsive to the credit

needs of the poor. But a series of events starting with the crumbling of the Madhavpura

Mercantile Co-operative Bank, followed by a Rs 70-crore bullion scam and a gilts scam
which involved hundreds of crores of rupees rocked the industry and seriously dented
its credibility. The RBI has been tightening urban co-operative bank regulations to protect
depositors interests. But urban co-operative banks, which have a collective deposit base
of close to Rs 100,000 crore and advances of around Rs 70,000 crore, are not ready to
throw in the towel without a fight. Backed by politicians, these banks are ganging up as
they feel that their democratic rights have been trampled upon

Non-scheduled urban co-operative banks have been allowed to place

deposits with strong scheduled urban co-operative banks; gold loans and small loans have
been exempted from the 90-day norm for recognition of loan impairment; and the ceiling
on certain categories of priority sector advances (loans to professionals and self-employed
and the retail trade) has been raised. Improving governance. The central bank also
scrapped the weak and sick tags for classifying financially unsound urban cooperative banks. T the RBI banned urban co-operative banks from granting loans and
advances (both secured and unsecured) to directors, their relatives and their firms. Then,
it prohibited the declaration of dividends by banks not classified as Grade I. they are now
classified into four grades I, II, III, IV.

The RBIs contention is that urban co-operative banks tend to distribute

dividends that are higher than what could be considered prudent, given their weak
financial position. Traditionally, urban co-operative banks use the lure of dividends to
augment their capital base and the pay out can vary from 15 per cent to 50 per cent.

Urban co-operative banks will be allowed to appoint a part-time chairman

or chief executive officer only with RBI approval. The RBI can also remove managerial
and other personnel from office in the public interest or to prevent the affairs of the

banking company being conducted in a manner detrimental to depositors interest. It will

have powers to impose a penalty of up to Rs 5 crore or five times the amount involved in
such contravention, whichever is higher. The minimum paid-up capital and reserves are to
be enhanced by 25 times from Rs 1 lakh now. Finally, no banking company or banking
co-operative society will be allowed to pay dividend on its shares until all its capitalized
expenses have been completely written off

REPORTS OF THE BANK

The Bank publishes two statutory reports, the Annual Report of the Bank
and the Report on Trend and Progress of Banking in India. These reports along with the
Report on Currency and Finance are documents that not only relate to the Bank's
operations during a given year but also reflect economic events, matters related to
banking and policy related to the financial sector and in a broader way the milieu of the
times. They, thus, constitute an important source material relating to India's financial and
economic history

PROFILE OF THE URBAN COOPERATIVE BANK

In furtherance to the development of the co-operative movement in the

district, the need for establishment of separate machinery for the distribution of finances
in the rural areas was felt vigorously and hence the district central co-operative banks
came into existence as a central finance agency to meet the financial requirement of the
various cooperatives in the district. The urban co-ope. Bank came into existence on Jan
13, 1991 and working started on Oct 2, 1992.

1. AREA OF OPERATION
Bank is extended overBareilly district. Despite the fact that there is stiff
competition from the nationalized and URBAN CO-OPERATIVE Banks, which have
fairly large network in the district, but the bank has maintained its business share in
the district and even at industry level.

Since last 37 years the bank is rendering remarkable services in its

members and depositors. As a central financing agency in the district, the district co-opes.
Bank platform on which the co-ope. Societies in the district use to maintain their reserve
fund deposits and others, besides which the SLR investments in the form of deposits are
being kept with the URBAN CO-OPERATIVE Banks.

A district cooperative. Bank is a federal society of all primary societies

in the district. This bank provides financial accommodation to village primaries which
require finance for providing it further to their members. The district cooperative. Bank
fulfills the needs of its member societies. The UCOPB play a great role in the
development of agriculture credit cooperatives and other types of societies in the district.
It services as connecting link between the state cooperative. Bank and primary co-ope.

Credit societies as I have mentioned above. They act as balancing centers by transferring
the funds of those societies which have a surplus to other with a shortage of fund.

Thus the district central co-ope. Bank occupies a position of cardinal

importance in the cooperative. Credit structure. The success of the co-operative credit
movement largely depends upon their financial strength. In view of this development and
success of these banks can play a great role in the promotion of the infant cooperative.

2. BRANCH
At present the bank has 5 branches and one head office.

3. BANK OPERATIONS
All branches are working in the morning and only 3 branches are
working evening sessions. Bank aims to develop our district and improved small
industry and societies. The schedule of customer service is following below:

Sr.No.

Branch

Address & Phone No.

Service time

1.

Prem Nagar

Machenear Road, Near Thaana Premnagar,Bareilly

8:00 am. To 9:00 pm.

2.

C.B.Ganj

A Block, Deendyal Puram,Delapeer Road,Bareilly

9:00am. To 5:00 pm.

3.

Civil Lines

87, Civil Lines, Patel Chowk, Bareilly

12:00 pm to 8:00 pm.

4.

Shyamaganj

45, In Front Of MerchanAssociation,Bareilly

10:00 am. To 6:00 pm.

5.

Nababganj

Zila Panchayat Market, Nababganj, Bareilly

10:00 am. To 5:00 pm.

4. HEAD OFFICE
A Block, Deendyal Puram, Pilibhit Road, Bareilly

5) ADMINISTRATIVE SET UP

As on 31st march 2008 the Urban Co-operative Bank has staff strength is 185.
The organizational chart of hierarchy is stated below:
General body

Board of director

Chairman

G.M./Secretary

Branch manager

Junior officer

Clerk/cashier

6) MEMBERSHIP
The constitution of the bank is of a mixed type consisting of both
individuals and co-operative societies as members. However, as advised by the cooperative department individual membership of the bank has been discouraged. On 31-32006, the bank has an affiliated membership with following particulars:

Co-ope societies
Individual
Total

7) MANAGEMENT

404
011
415

Management is consisting of Board of Directors and Banks members.

These are following:-

A) BOARD OF DIRECTORS
There is only one chairman, Smt.Sobhagya Gangwar. The management
of the bank is vested in the board of directors consisting of 13 members. The composition
of the board of directors of the bank is as under:

S.No.

Particulars

1.
2.
3.

Sadhana co-ope. societies

The other types of co-ope. Societies
One representative for the members-

4.

janata cooperative. L.S.Society

Reserve seats for women
Total

Total no. of
representatives
5
5
1
2
13

It can be seen from the above composition that the representation is

fairly comprehensive. Some of the powers of the board are delegated to executive
committee and other 4 sub-committee for smooth working of the bank.

B) NUMBER OF MEMBERS
The number of members in 2008 is 5730

8. WORKING CAPITAL

As table 3.1 indicates, the major component of working capital is deposit

followed by borrowings. The relative share of deposits to working capital (deposit) is
increased by 53.30% in 2005-06 to 61.63% in 2007-08. While the relative share of

borrowings is from 26.49% in 2005-06 to 17.28% in 2007-08, which shows the bank has
been increased our own sources and deposits.

Concerning the share of owned fund to working capital was encouraging. It required to be
further strengthened the owned fund and decreasing borrowings more and more. The
capital adequacy ratio of the bank also shows that it has insufficient amount of
capital/own fund/as it compared to risk weighted assets. As on march 31, 2007-08 the
bank has the following assets in its balance sheet.

(Rs. In lakhs)
Item
w/amount

Amount

Risk

337.02

0%

2.bank balance/0

309.79

0%

3.loans/outstanding

12411.6

100%

1.cash in hand/0

12411.16
4.investment(in state 27800

8%

Coop. bank)22.24
Total

81716.82

Owned fund/share capital + free reserve + building fund accumulated losses is

43,999. Therefore, the capital adequacy ratio (CAR) which is the ratio of owned fund to
risk weighted assets of the bank. As per the bank regulation every bank should maintain
9% capital requirement.

9. INVESTMENTS

The total investments consisting of S.L.R. and non-investments have

reached up to Rs.. 4103.00 lakhs. The bank has made investment with the apex Bank,
SBI, Bareilly development authority, housing finance; co- operative trustee securities and
shares of co-operative societies.
INVESTMENT

(Rs. In lacks)

Particulars

31.03.06 31.03.07 31.03.08

NABARD Bonds

3461.45

3618.49

4103.00

Apex Bank

2631.00

2790.56

3645.96

Commercial Bank

3900.6
7

3895.8
6

3389.8
6

2598.9
0

3978.6
5

4569.9
8

Co-operative Organizational Share

VISION, MISSION, OBJECTIVES AND GOALS

VISION
Urban Co-operative Banks vision is to be a world class Indian Bank.

MISSION
The banks mission/aim is

To build sound customer franchises across distinct business

To achieve healthy growth in profitability consistent with the banks risks appetite.

OBJECTIVES

The primary objective of Urban Co-operative Bank is to enhance

residential housing stock in the country through the provision of housing finance in a
systematic and professional manner and to ownership. Another objective is to

Increase the flow of resources to the housing sector by integrating the housing finance
se3ctor with the overall domestic financial marketers.

ORGANISATIONAL GOALS:

Urban Co-operative Banks main goals are to

1. Develop close relationships with individual households.
2. maintain its position as the premier housing financial institution in the country
3. transform ideas into viable and creative solutions
4. Provide consistently high returns to shareholders.
5. To grow through diversification by leveraging of the existing client base.

SERVICES OF BANK

1) DEPOSITS OF MONEY
The bank has taken vigorous efforts to mobilize the deposits on a large
scale. The deregulation of rate of interest offered on the deposits has created considerable
competition in the market in spite of it the achievement is remarkable on the part of the
bank. As on march 2008 the bank has solicited the deposits up to Rs.11828.25 lakhs.
DEPOSIT

(Rs. In lakhs)
Type of account

31.3.06

31.3.07

31.3.08

Current account

666.70

706.86

886.40

Saving account

4407.12 5303.36 6544.75

Recurring account 3752.18 3831.02 4397.10

2) WITHDRAWL OF MONEY

Urban Co-operative Bank also provides the facility of withdrawal of

money at any time whenever required to the customer. If a customer, who have any
type of account like saving account, current account or recurring account, can
withdraw money according to his/her account balance and some banks rules of
withdraw money from any account of customer.

3) BORROWING

The Urban Co-operative Bank has borrowed from its apex bank for short
term and medium- term loan purpose to meet the demand of its members. As table 3.1
indicates borrowing decreases from Rs. 4386.44 lakhs to Rs. 15143.87 lakhs . it indicates
the bank also should increase internal resources and deposits . it is very good for bank
working and increase of our internal resources and deposits.

4) LOANS AND ADVANCES

The bank has rendered financial assistance to the primary agricultural

credit, marketing, weavers, consumer, industrial co-operatives, spinning mills, urban
credit societies, salary earners societies UCOPB, cope. Sugar factories, individuals, fixed
deposits receipts, consumers durable, transport societies, project finance etc. the bank has
made available finance to sugar factories in the district and under consortium around rs.
12411.16 lakhs

5) LOCKER FACILITY

Storing too much jewellery and valuables in the house at times

becomes a security issue and an impediment in case of natural calamities so bank is
providing a safe, trustworthy space to store your valuables, jewellery, documents and
other things dear to you so that all customers can make safe their jewellery and any
other precious things.

KEY BENEFITS OF LOCKER FACILITY

State-of-the-art Lockers, the safe deposit vaults with fully equipped, latest burglar
alarm systems.

For additional safety, the Locker holder assigns a code word which further
increases security.

Available in different sizes as per your requirement.

These Lockers and their contents can be nominated to people near and dear to
you.

6) DRAFT & PAYORDER FACILITY

Urban Co-operative Bank also provide the facility of making draft and
pay order of different banks like HDFC, SBI,UTI,UTI etc. This bank provides the facility
of different banks with different commission rates on it. Mainly draft are made for
Outside the city while pay order are made for especially local purpose i.e. Bareilly. Some
time drafts are also made for local purpose.

6) ACCOUNT FACILITY

Urban Co-operative bank provides the facility of different type of

accounts opening so that a person can save his/her money and also can keep it safe in
their bank account for a long period according to his desire.

TYPES OF ACCOUNT

Urban Co-operative bank provides mainly three types of account

facility which are following:

INDIVIDUAL ACCOUNTS:- Individual accounts are the most common

personal investment accounts. The minimum investment required is Rs.
250,000

JOINT ACCOUNTS:-

Joint accounts are set up by more than one

person. The minimum investment required is Rs. 250,000

COMPANY ACCOUNTS:- Corporate accounts can be opened by

institutions, companies, partnerships, trusts and non-profit organizations. A
minimum of Rs. 1,000,000 is required to open a Company Account at
AKD Trade

RECURRING/DAILY DEPOSIT ACCOUNT:- These are open by

traders as well as general customer both who want to deposit his money on

The

daily

basis

to

save

their

money.

8) CHEQUE BOOK ISSUE FACILITY

Urban Co-operative bank also provide the facility of cheque book issue
for the customer according to his requirement & account both and bank also charges
price for it. Bank provides three types of cheque book i.e. Current a/c cheque book,
saving a/c cheque book and overdraft a/c cheque book. Every cheque book has
different number of leaves according to its types and charges for each cheque book
are also different. Thus there are three types of cheque books rae issued which are
following: Current Account Cheque Book : Saving Account Cheque Book
Overdraft Account Cheque Book

9) DEPOSIT SCHEMES

The Government has introduced the schemes to protect tenancy

deposits and provide a fairer system for settling disputes about the return of a deposit
at the end of a tenancy.

A) ACCOUNT DEPOSIT SCHEME

S.N
o.

Particulars

Interest Rate
(%)

1.

Current Account

0.20

2.

Saving Account

3.

Recurring Deposit/DDC(Daily Deposit

A/c)
i)46 days to 90 days

5.50%
6.00%

ii)91 days to 179 days

6.25%

iii)180 days to 1 year or 364 days

iv)1 year and maximum 3 years

7.00%
7.25%

v)3 years and above

4.

Senior Citizenship
i)1 year and maximum below 2 years

7.50%

ii)2 years-3 years

7.75%

iii)3 years-above

8.25%

PENSION SCHEME FOR SENIOR CITIZEN

For
At
least
5
Years

Amount

Interest
rates

Annual
Interest
rates

Quarterly
Interest rates

Monthly
Interest
rates

1,00,00
0

10.50%

10,500

2,625

867

2,00,00
0

10.75%

21,500

5,375

1,776

3,00,00
0

10.75%

32,250

8,063

2,664

4,00,00
0

10.75%

43,000

10,750

3,552

5,00,00
0

11.00%

55,000

13,750

4,542

10,00,0
00

11.25%

1,12,500

28,125

9,288

15,00,0
00

11.50%

1,72,500

43,125

14,239

c) CASH CERTIFICATE SCHEME

For Ordinary Citizen (9.75%)

Sr. No. Amount which
should be deposit

Amount of Cash
Certificate Will
receive

For

1.

Rs. 6,177

Rs. 10,000

2.

Rs. 30,885

Rs. 50,000

Years

3.

Rs. 61,770

Rs. 1,00,000

4.

Rs. 1,23,540

Rs. 2,00,000

5.

Rs. 1,85,310

Rs. 3,00,000

For Senior Citizen (10.75%)

1.

Rs. 5,884

Rs. 10,000

2.

Rs. 29,420

Rs. 50,000

3.

Rs. 58,840

Rs. 1,00,000

4.

Rs. 1,17,680

Rs. 2,00,000

5.

Rs. 1,76,520

Rs. 3,00,000

Loans and advances

Policy procedures and implementation

The co-operative bank or district co-operative bank being the leader and reservoir of the funds of
all the primary societies, has to ensure that the credit requirement of all the primary societies in
the district are adequately met and in time. It finances agriculture credit societies largely for
production purpose. Marketing societies, consumer societies, industrial societies and all other
types of societies except housing co-operatives for conducting their normal operations.

Although the co-operative bank is expected to meet both the agricultural and nonagricultural credit requirement in the district, the provision of finance for agricultural operations is
the major task where the bulk of the agricultural credit societies are its affiliated societies. In
addition to that the other major tasks of the bank to ensure that the requirements are given to the
real beneficial. The bank provides short term and medium term loans to its affiliates societies
for agricultural and non-agricultural purpose as i have mentioned in previous paragraphs. The
short-term loans are repayable within a period of 12 months (1 year). This short term loans are
known as production loans. It is used mainly for the purchase of seeds, manures, and fertilizers.
The medium term loans are advanced for a period of 3 to 5 years for using permanent
improvement on land such as sinking of wells and leveling etc. the long term loans are repayable
within 5 years to 17 years. Agricultural production credit denotes the short-term credits are also
called crop loans.

POLICY AND PROCEDURE OF THE BANK

The policies and production of the central co-op. bank are by and large,
prescribed by the reserve bank of India (RBI), national bank for agricultural and rural
development (NABARD), govt. and state apex bank. NABARD and other institutions would
provide necessary guidance and the bank adopt that loan policy.

The important types of loans and advances:

1. Short term loans
2. Medium term loans
3. Long term loans

Agricultural production credit denotes the short- term structure is mainly for
1. Seasonal agricultural operations
2.

Investment loans are given for period unto 5 years for identified productive purposes
such as milk cattle sheep, goat (shouts) poultry, bullock, pump sets and oil- engines,
garbage plant etc. the bank procedures followed for sanctions of short and medium term
credit are as follows: -

A. SHORT TERM FINANCE

These loans are limited for seasonal agricultural operations for the
period up to 12-15 months at concession rate of interest at 3% below, the bank rates
are sanctioned by state co-op. banks. The short-term credit crop loans system is aimed
at rationalizing the loan policy of credit co-operatives. The salient features of shortterm in the form of crop loans as mentioned by the all India rural credit Survey
Committee are as under: i.

The credit requirements of the cultivators are assessed on the basis of

the average and cost of cultivation of the crop grown subject to the
repaying capacity.

ii.

Cultivators are given loans with reference to their production

requirement in cash and in kind.

iii.

The size of the loans is determined by rational assessment of the needs

in relation to the production activity.

iv.

The loans are to be repaid out of the sale products of crop.

v.

The advances are generally confined to the period shortly before

sowing and ending shortly before the harvest.

vi.

The eligibility of a cultivator for loans is that he should be bonafide

cultivator and is able to repay the loan out of his production.

a)DEPOSI CREDIT FINANCE

It is required to indicate in its credit limit application its lending program not
only in respect of short term agricultural advances but also medium term and non- agricultural
loans expressed in terms of the maximum out standing likely to be reached under each head.
Allowing for a reasonable increase, the acceptable loaning program is determined for the ensuring
year and credit limit to supplement its resources of the bank available for the purpose. District
central co-op. banks whose over dues exceeds 60% are not eligible for NABARD refinance
although state co-op. banks may provide them with funds from their own resources. While
sanctioning credit limits for financing seasonal agricultural operations.

NABARD stipulated that a specified percentage (usually 20%) of the total

advances issued by district central co-op. banks to affiliated societies during the period of the year
commencing April should be earmarked for finding small economically weak farmers. primary
level loaning procedures of all PACS are based on the crop loan system of lending as set out in the
manual in production oriented system of lending for agriculture brought out by the RBI. This
manual guides and lays down the scales of finance and procedures to the followed:

b)SCALES OF FINANCE: - The cultivators requirements of crop loans are broadly classified
into 2 categories, these for examples (component a) and those for purchase of inputs such as
varieties of seeds, chemical fertilizers etc.(component b) based on their production
requirement . The scale of finance to each crop so fixed that the production credit needs are
adequately met, while ensuring that the credit provides within repaying capacity of the borrower.

c) CONSTITUTION OF TECHNICAL COMMITTEE: - The scales of finance for

different crops are to be fixed by special committee. The committee consists of members drawn
from different departments like agriculture and co-operation. Apex Bank, selected Agricultural
credit societies and progressive farmers in the district and agricultural university in the state. The
committee fixes the scale of finance, which comprises seasonality in lending and recovery on the
bases of data of cost production and grass yield per acre as furnished by the agricultural
department.

d) CREDIT LIMIT STATEMENT: On the basis of the scales finance recommended by the
technical committee submitted to the bank. The bank then discusses the said policy and
procedures in its board of directors meeting and approval by Apex bank. Once the loan policy and
procedure is approved, the decision is communicated to primary societies by the bank.
Then each society is required to prepare a credit limit statement. In order to
find out whether adequate attention is being paid by the society to meet the needs of small
cultivators, the credit limit statement is prepared in 2 parts via part A for small farmers and part B
for others. After the statement is prepared the managing committee of the society recommends the
amount that may be sanctioned, to the members. In arriving at the amount to be advanced to the
society, the bank takes into account the resources of the society which are valuable for lending in
accordance of its concerning departments.

B. MEDIUM TERM FINANCE

Medium term credit limits for the approved purpose are allowed by the bank as
fixed in technical committee which are within the scales prescribed by NABARD for agricultural
and allied purpose for period not less than 15 months and not exceeding 5 years. As in the case of
crop loans separate credit limit statements for medium team requirement of the members are
prepared at the PACS level. the purpose of the loans are made by the bank are diverse and include
irrigation works such as digging of wells , installation/replacement of pump sets, repair of the
wells , land development works, construction of repairs of farm houses, cattle sheds etc. purchase
of draught animals, purchase of tractors and other costly farm machinery. Medium term loans are

Also sanctioned as I have already mentioned by banks to agriculture members of primary

societies for subsidiary occupiers, via purchase of milk cattle, poultry farming, beekeeping, pig
breeding, shoats (goat and sheep) rearing activities.

The loans are sanctioned by the banks as per the need of the borrower against
the security of land or on the personal security supported by any two solvent members. Lending
by the bank for various medium term purposes are generally of a scattered type where semantic
lending is not possible. The bank having total over dues at the end of the last year forming percent
or above of the total demand for the year and these which were not sanctioned any short term

credit limit for financing seasonal agricultural operations for any other reason them availability of
adequate resources are not normally considered eligible for medium term credit limits. Further it
is prescribed that a minimum of 40% of the total medium term advances should have been issued
for easily identifiable productive purposes such as small irrigation, agricultural machinery and
purchase of poultry farming and shoats rearing activities.

MEDIUM TERM CONVERSION:

To unable to ensure uninterrupted supply of borrowers, medium- term finance is

made available from NABARD to the co-operative banks by way of conversional loans. The state
co-operative banks on behalf of the district central co-operative banks are granted medium term
loans in the event of recurrence of natural calamities. The refinance of loan conversion coming
from NABARD is almost 60 percent affected at PACS level while the concerned state
government.

A state Apex co-operative bank and district co-operative banks are required to
contribute 15%, 10% and 10% respectively. For the last years, the bank has rendered financial
assistance to primary agricultural credit societies, marketing societies, urban credit societies,
weaver, consumer societies industrial co-op. spinning mills, urban co-op. societies, salary earners

Societies. Co-operative sugar factories, individual loans against gold ornaments and fixed
deposits, receipts consumer durable, transport societies, project finance etc. the total loans and
advances outstanding as March 2005 were Rs. 16717464.63. the bank has made available finance
to 1 sugar factories in the district and consortium around Rs. 295163210 crores

3) LONG-TERM LOANS

These loans are commonly set for more than three years. Most are between
three and 10 years, and some run for as long as 20 years. Long-term loans are
collateralized by a business's assets and typically require quarterly or monthly payments
derived from profits or cash flow. These loans usually carry wording that limits the

amount of additional financial commitments the business may take on (including other
debts but also dividends or principals' salaries), and they sometimes require that a certain
amount of profit be set-aside to repay the loan.

The total loan and advance issued for the last three year by the bank is shown as
table:

Loan and Advance as on March 2006 To 2008

(Rs. In lacs)
Types of loan
1.Short term loan
2. Medium term loan
3. Long term loan
Total Loan

2006

2007

2008

1052169227.36

1196393683.92

1173138685.36

43447566.31

64636542.16

634139994.34

4053641.18

4230517

4563063.71

1099670434.85 1265260743.26 1811841743.41

TYPES OF LOANS PROVIDED BY BANK

Bank provides different types of loans which are following:-

i.

ASSET POWER (LOAN AGAINST PROPERTY)

We will give you a loan against your property. Be it commercial or residential. You can
also apply for this loan if you need funds to acquire new property. A take-over of your
existing loan with refinancing is also possible with Asset Power.
FEATURES

Attractive interest rates

Balance Transfer facility available with additional finance

Doorstep service
You can avail the following four products under Asset Power

Loan against property - Residential

Loan against property - Commercial

Loan for purchase of commercial property

ii.

HOME LOAN
Home loans are provided based on the market value, mainly
estimation given by banks or the registration value of the property. Availing various
types of house loans to suit your individual needs at the lowest rates & easy financing
can now fulfill the need for a house of your own. Home loan is not a one-time
decision; do review the market periodically before availing them.

UNIQUE FEATURES OF HOUSE LOAN:

Purpose: For purchase of house from builder / resale and construction / extension
of existing house.
Loan amount and Tenor: You can avail for Home loans from 5 years to 15 years
and amount depending on your eligibility, income and repayment capacity.
Security: Home loan is a secured loan wherein collateral are required.
iii.VEHICLE LOAN:-

A loan taken out to purchase a vehicle. Like Car loans / Auto Loan.

At present,

one of the most widely used and important loan for a common man is a car loan.
These types of loans are designed for people who want to purchase a car and are
normally known as car loans or auto loans.

You can apply for a car loan regardless what kind of car you are looking
for. It can be a small more economical compact car or it can also be a SUV. The amount
of loan that you want to borrow and the interest rates will heavily depend on your credit,
your monthly income and your age. If you have a poor employment history then that will
also have a negative effect on the total amount and the interest rate associated with the
loan.

Iv.AGRICULTURE LOAN
These are the loans provided by bank for the agricultural functions for
farmers. These agricultural loans are provided by bank for specially farmers at as cheaper
as possible rates.

V. PERSONAL LOANS
People need loans for personal needs, needs that do not really have anything to
do with the basic necessities of life like medical, car loans or loans for home purchasing.
For instance personal needs like traveling during holidays, cosmetic surgeries, going out
for a lovely honeymoon or getting a loan to have a wedding of your dream. This type of
loan is known as Personal loan. Usually personal loans carry a higher interest rate
because these loans are tailor made for personal needs of the borrower that vary from case
to case. Before you apply for personal loans with a financial institute, you should do a
little research on the internet. There is a good chance that you will find a lender that is
offering these loans on lower interest rates.

Interest rates on loan and Advances

Types of loans
1.Agriculture Loan

2.Occupational & SSI Loan

(i)Working Capital

(ii)

Loan

3.Travelling Loan

4.Consumer/Customer loan

5.Personal Loan

Amount of loan

Interest rate (%)

At Rs. 2,00,000

9.00

Above Rs. 2,00,000

10.00

At Rs. 1,00,000

11.25

From Rs. 1,00,000 To 5,00,000

11.50

From Rs. 5,00,000 To 20,00,000

11.75

Above Rs. 20,00,000

12.00

At Rs. 1,00,000

11.25

From Rs. 1,00,000 To 5,00,000

11.50

From Rs. 5,00,000 To 20,00,000

11.75

Above Rs. 20,00,000

12.00

At Rs. 5,00,000

12.00

Above Rs. 5,00,000

13.00

At Rs. 50,000

12.50

Above Rs. 50,000

13.00

At Rs. 50,000

12.50

From Rs 50,000 To 2,00,000

13.00

Teacher/Salary Payee Class Loan

6.Home Loan

Home Loan(Fixed amount)

7. Self-employment and

8.Vehicle Loan

At Rs. 50,000

12.00

From Rs. 50,000 To 2,00,000

12.50

For 5 Years

10.50

For above 5 years & For 10 years

10.75

For above 10 years and For 15 years

11.00

For 5 years

12.00

For above 5 years & For 10 years

12.25

For above 10 years & For 15 years

12.50

At Rs. 50,000

12.50

Above Rs. 50,000

13.00

At Rs. 2,00,000

10.50

Above Rs. 2,00,000

11.00

9.NSC/LIC/KVP

11.50

10.Salary Payee societies/Cooperative Committee

10.00

11. Staff Loan

1% Less than
general

REQUIREMENTS OF TAKING HOME LOAN

There are certain terms and conditions which are necessary to fulfill for taking home loan
and every customer who want to take Home Loan ,Has to follow these terms And
conditions .these certain conditions are following:1. Purpose Of Home Loan
a. Home Loan For construction or repair purpose
b. Home Loan For purchase of house/ flat
c. extension of the existing house repairs/ renovations alterations to existing
house/ flat
2. Eligibility
3. Age
4. Security
5. Interest Rates
6.

Extent of loan

7. Upfront Fee
8. Documentation Charges
9. Repayment Period
10. Certain Documents Photo copy
11. Two Guarantor
12. PAN Number/Voter ID Card Photo copy
13. Property Papers

COMPARISON OF INTEREST RATES & TERMS & CONDITION

OF HOME LOAN OF DIFFERENT BANKS

Sr.
No
.
1.

Characteristic

Urban Cooperative Bank

Bank Of Baroda

Punjab National
Bank

Interest Rates
i Fixed Rate option
12.00%

11.25%

11.25%

12.25%

11.50%

12.00%

12.50%

11.75%

12.25%

10.50%

10.25%

10.00%

10.75%

10.50%

10.25%

11.00%

10.75%

10.50%

2.

Over 15 years up to 25 years

Transfer Facility

Provided

Provided

Not Provided

3.

Eligibility

Resident Indians

Resident Indians

Indian National

4.

Age

No age limit

Minimum age 21
years

5.

Operational Hours

12 hours

24 across

Up to 5 years
Over 5 years & up to 10 years

Over 10 years & up to 15 yrs

ii.Floating Rate Option

Up to 5 years
Over 5 years up to 15 years

24 hours

COMPARISON OF OTHER CONDITIONS FOR TAKING HOME

LOAN

1.

Security

Mortgage of
the property
& jewelry

Mortgage of the
property to be
repaired / renovated

NSCs,KVPs,
LIC

2.

Purpose Of Home Loan:

3.

4.

Mortgage of
property
FDR/ LIC
policy/
Govt.
Securities,
NSCs,
KVPs, IVPs,
/ PSU
Bonds etc.

Construction or
purchase of house/ flat
extension of the
existing house repairs/
renovations alterations
to existing house/ flat
Housing Loans to
NRIs / PIOs
Extent of loan

Upfront Fee

Provided

Provided

Provided

Provided

Provided

Provided

Not Provided

Provided

Provided

Loan up to Rs. 15
Lacs for
construction of
house & 10 Lacs for
purchasing of land

0.80% of loan
amount + Service
Tax

Salaried
person - 2
times of
gross annual
income
professionals
/ selfemployed /
business
persons etc.,
3 times of
net annual
income +
depreciation
claimed
individual
capacity
1% on amount
prepaid including
any such amount
prepaid in the last
financial year

Loan up to
Rs.20 Lacs
for purchase
of Land/Plot
Loan is
available
maximum
up to Rs.2
Lacs for
furnishing.

0.90% of the loan

amount + Service
Tax & Education
Cess

10

11

Documentation Charges

Repayment

Rs. 800/-+Service
Charges
20 years or before
the borrower attains
the age of 62 years

Rs. 1265/- + Service Rs.1,350/- +

Tax
Service Tax &
Education Cess
20 years or before
Maximum10-years by the borrower attains
Equated
the age of 65 years.
Monthly
installments

NEED OF STUDY OR RESEARCH PROBLEM

Following are the main objectives of the bank.
.
a) To encourage thrift and collect saving from members and others.
b) To provide a safe place for investing the reserves of primary societies.
c) To develop and extend banking facilities in rural and urban areas.
d) To supervise guide and control the working of member societies.
e) To act as balancing centre of finance for the primary societies in the district by
providing them with funds when they have a shortage and by serving as a clearing
house for their funds which are surplus

SCOPE OF STUDY:

The project will help the company in conducting further study in the area design
the whole strategy as per company and retailers expectation that would give adequate increase in
the sales. This project would help in getting exposure to the cement industry.

OBJECTIVES OF THE STUDY

A. To study the status of Bareilly urban co-operative bank
B. To identify the financial performance of Bareilly urban co-operative bank for last
three years.
C. To analyze financial performance of BUCOPB through ratio analysis.
D. To assess the performance of network of branches in relation to fund management
and Loan Service
E. Finding out what customer want to change in their existing cement
F. Asking retailers regarding the channel distribution that what they would like to
change

G. Finding out what retailers want some more facilities by company does the
influence the customer.
H. Analyzing the financial facilities available to the customer.

SWOT ANALYSIS

STRENGTH

MARKET STANDING: Strong presence in the market; steady growth in

sales of its services.

MARKET COVERAGE: Nationwide coverage; semi-urban and rural

areas are also well covered.

MARKET SHARE: Market leader in banking services specially for

urban people

INNOVATION IN MARKETING: Very innovative, especially in

providing services

PRODUCTS MIX: Wide range.

PRICING: Costs are controlled of every service
PHYSICAL DISTRIBUTION SERVICE LEVEL: High.
INVENTORY MANAGEMENT: Very good inventory holding cost
lowest in the market.

WEAKNESS

INNOVATION IN MARKETING: Wide product mix puts

Strain on providing services, distribution, accounting & administration.

NEW PRODUCT CAPABILITY:

Innovation

in

new

products

inadequate.

INVENTORY MANAGEMENT: Ever expanding product mix exerts

some strain on management of the services and products of the bank.

MANAGEMENT CAPABILITY OVERALL: More innovation needed

for the future; competition is catching up fast.

OPPORTUNITY:

THE CONSUMER/DEEMAND: Large consumer base, growing urban

middle class. Demand is constantly on the increase.

THE BANK: Banks attractiveness/profitability generally good in the

middle term. Industry is gaining expert orientation.

TECHNOLOGY: Those who command the best technology have the

scope to stay on top.

 NATURAL ENVIRONMENT: Generally India is full of service

providers

THREAT:

THE CONSUMER/DEEMAND: Consumers are becoming choosier.

THE INDUSTRY/COMPETITION: The rapid change in industry

structure. For the new entrants too competition is a major factor to reckon
with. Intense competition and overcrowding likely to lead to a shakeout in
the coming years. The demand cannot support so many problems.

TECHNOLOGY: More investments and efforts in technology and R&D

are required.

NATURAL ENVIRONMENT: Though availability of main requirement

i.e. service providers is no problem, cost competitiveness is lacking.
Productivity and effectiveness has to improve compared to international
standard.

RESEARCH METHODOLOGY

INTRODUCTION:

Research is an art of scientific investigation. One can also define research as a

Scientific and systematic search for pertinent information on a specific topic. Research
covers the search for and retrieval of information for a specific purpose. Research has
many categories from medical research to literacy research. A research paper is a piece of
academic writing that requires a more abstract, critical and thoughtful level of inquiry that
you might be used to.

The dictionary meaning of research is a careful investigation of inquiry

especially through search for new facts in any branch of knowledge.

D. Slesinger and M. Stephenson in the encyclopedia of social sciences define

research as, the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, corrector verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.

Research is, thus, an original

contribution to the existing stock of knowledge making for its advancement.

Basically research is the pursuit of truth with the help of some study,
observation, comparison and experiments. Some people consider research as a movement,
a movement from the known to the unknown.

Research in common parlance refers to

the search for knowledge with the help of objective and systematic method of

Finding solution to a problem. Research is a voyage of discovery of knowledge lead by

inquisitiveness of human nature.

TYPES OF RESEARCH

Research is mainly of following two types:

1. DESCRIPTIVE RESEARCH:- Descriptive research includes surveys and fact

finding enquires of different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present. In social Science and
business research we quite often use the term Ex post facto research for
descriptive research studies. The methods of research utilized in descriptive
research are survey methods of all kinds including comparative and correlation
methods.

2. ANALYTICAL RESEARCH:- In Analytical Research on the other hand, the

researcher has to use facts or information already available and analyze these to
make a critical evaluation of the material.

There are some other types of research also like:

1. APPLIED RESEARCH: Applied research is also called Decisional Research ,

proceeds with a certain problem, and it specifies alternative solutions and the
possible outcomes of each alternative. It is promoted by commercial
considerations
2. FUNDAMENTAL RESEARCH: Fundamental or Basic Research is also called
Theoretical Research or Pure Research. It aims at expanding the frontiers of
knowledge and does not directly involve pragmatic problems. The essence of
basic research is that it addresses itself to more fundamental questions and not to
the problems with immediate commercial potential.

3. QUANTITATIVE RESEARCH: Quantitative research is based on the

measurement of quantity or amount. It is applicable to phenomena that can be
expressed in terms of quantity.

4. QUALITATIVE RESEARCH: Qualitative research is concerned with

qualitative phenomena i.e. phenomena related to or involving quality or kind.
Motivation research is an important type of qualitative research.

5. CONCEPTUAL RESEARCH: Conceptual Research is that related to some

abstract idea or theory, It is generally used by philosophers and thinkers to
develop new concepts or to reinterpret existing ones.

6. EMPIRICAL RESEARCH: Empirical research relies on experience or

observation alone often without due regard for system and theory. It is data based
research, coming up with conclusions which are capable of being verified by
verified by observation or experiment.

OBJECTIVES OF RESEARCH:

The purpose of research is to discover or finding answers to questions by applying certain

scientific procedures. Research investigates the truth, which is hidden and tries to final
solution to existing problem, which have not been discovered yet. Different purposes
depending on nature and type of research. Generally we have following categories of
objectives of research:
1. Become familiar with an existing phenomenon or archive new insights into existing
phenomenon. Such studies are termed as exploratory or formulative research
studies.

2. To accurately determine the real features or characteristics of individuals, situations or

groups. Such studies are termed as descriptive studies.
3. To ascertain the frequency of occurrence of something or ascertain Association of
something with something else. Such studies are known as diagnostic research
studies.
4. To test a hypothesis of a casual relationship between variables. Such studies are
known as hypothesis testing research studies.

IMPORTANCE OF RESEARCH:

1. Research forms the fundamental base on which the economic and legislative policies
can be build.
2. Research assists in solving various operational and planning problems of business and
industry.
3. Research helps us to establish social relationships and solves social problem.
4. Research is used in all fields of applied mathematics etc.
5. Research facilitates scientific and methodological and logical thinking of all.
6. Research assists in Ph.D. thesis of students.
7. Research philosophers and thinkers to establish their viewpoints.
8. Assists analysis and intellectuals to develop new theories and ideas.

METHOD OF STUDY:

Since we know that Urban Co-operative Bank has a very good image in
Banking Industry and it is good for the Bank than others company presence. In future
company wants to maintain his share in this Industry. Company will have to emphasize
mainly two areas:
1. Competition analysis
2. Consumer buying behavior
In order to do, a detailed study needed to be conducted.

METHODOLOGY ADOPTED:The methodology adopted by me for the purpose of this study to be

carried out was based on the principles and concept of research methodology.

Research Methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. In it we
study the various steps that one generally adopts in studying his research problem
along with the logic behind methods / techniques to solve that problem.

The various steps that provide useful procedural guidelines regarding the
research process are:

Extensive Literature survey

Developing the hypothesis

Preparing the research design

Determining the design

Collecting the data

Execution of the project

Analysis of data

Hypothesis testing

Generalization and interpretation

These following steps are also adopted by me to solve my research problem:-

Personal visit of the bank and discussion with the bank officials were held to
collect certain relevant facts for the study.

Secondary data collection.

DEFINING THE RESEARCH PROBLEM

In research process, the first and foremost step happens to be that of
selecting and properly defining a research problem. A researcher must find the problem
and formulate it so that it becomes susceptible to research.
A research problem, in general, refers to some difficulty that a researcher
experiences in the context of either a theoretical or practical situation and wants to obtain
a solution for the same. We can state the components of a research problem as under:
A. There must be an individual or a group which has some difficulty or the problem.

B. There must be some objective(s) to be attained at. If one wants nothing, one cannot

have a problem.
C. There must be alternative means (or the courses of action) for obtaining the objective(s)

one wishes to attain.

D. There must remain some doubt inn the mind of a researcher with regard to the selection
of alternatives.
E. There must be some environment(s) to which the difficulty pertains.
F. Thus a research problem is one that requires a researcher to find out the best solution
for the given problem, i.e. to find out by which course of action the objective can be
obtained optimally in the context of a given environment.
There are several factors that may result in making the problem complicated.
All such elements (or at last the important ones) may be thought of in context of a research
problem.
For preparing my report, I selected a topic related to the analysis of
financial statement of Urban Co-operative Bank in which I have various objectives. As a
very first step I visited to bank to now about Loan Procedure in this bank.

RESEARCH DESIGN
I prepared the research design of my project that is a conceptual structure
within which the project study is conducted. Research design is prepared to facilitate the
smooth sailing of the various research operations, thereby making research as efficient as
possible, yielding the maximum expenses of effort, time and money.
It is a blueprint for the collection, measurement and analysis of data. My
design focuses attention on the following aspects:1. To ascertain fair and equitable ratio of financial statement of Urban Co-operative
Bank.
2. Evaluate and analysis the financial position of Urban Co-operative Bank.
3. To gain insight into a bank.
4. To study the loan procedure of Urban Co-operative Bank.
FEATURES OF A GOOD RESEARCH DESIGN:
i) It is a plan that specifies the sources and types of information relevant to the
research problem.
ii) It is a strategy specifying which approach will be used for gathering and
analyzing the data.
iii) It also includes the time and cost budgets since most studies are done under
these two constraints.

SAMPLE DESIGN
After deciding the research problem, the next step is to select the
research design. The researcher will decide how the information will be collected.
There are two important sources of collection of information:
1) Census
2) Sample
In case the data are collected from each member of the population of
interest, it is known as the Census Survey.If, data are to be collected only from
some members of the population, it is known as the Sample survey.

STEPS IN SAMPLING DESIGN

While developing a sampling design, the researcher must pay attention to the
following points:
i) TYPE OF UNIVERSE:- The first step in developing any sample design is to
clearly define the set of objects, technically called the universe, to be studied.
The universe can be finite or infinite. In finite universe the number of items is
certain, but in case of an infinite universe the number of items is infinite.
ii) SAMPLING UNIT: A decision has to be taken concerning a sampling unit
before selecting sample. Sampling unit may be a geographical one such as
state, district, village etc or a construction unit such as house, flat etc.
iii) SOURCE LIST: It is also known as Sampling Frame from which sample is
to be drawn. It contains the names of all items of a universe. If source list is
not available researcher has to prepare it. It is externally important for the
source list to be as representative of the population as possible.
iv) SIZE OF SAMPLE: This refers to the number of items to be selected from
the universe to constitute a sample. This is a major problem before a
researcher. the size of sample should neither be excessively large, nor too
small. It should be optimum. An optimum sample is one, which fulfills the
requirements of efficiency, reliability and flexibility.

v) PARAMETERS OF INTEREST: In determining the sample design, one

must consider the question of the specific population parameters, which are of
interest. There may also be important sub-groups in the population about
whom we would like to make estimates. All this has a strong impact upon the
sample design we would accept.

vi) SAMPLE PROCEDURE: Finally, the researcher must decide the type of
sample he will use i.e. he must decide about the technique to be used in
selecting the items the items for the sample. There are several sample designs
out of which the researcher must choose one for his study.

STATISTICAL TECHNIQUES USED

For data interpretation and presentation some statistical techniques were
used i.e. different graphical and diagrammatical representations were used.

METHODS OF DATA COLLECTED

The task of data collection begins after a research problem has been defined
and research plan chalked out. While deciding about the method of data collection to be
used for the study, the researcher should keep in mind two types of data:1. Secondary data &
2. primary data
1. PRIMARY DATA: The primary data are those, which are collected afresh and for the
first time and thus happen to be original in character.
2. SECONDARY DATA: The secondary data, on the other hand, are those which have
already been collected by someone else and which have already been passed through the
statistical process.

The methods of collecting primary and secondary data differ since

primary data are to be originally collected, while in case of secondary data, the
nature of data collection work is merely that of compilation.

COLLECTION OF PRIMARY DATA

We collect primary data during the course of doing experiments in an

experimental research but in case we do research of the descriptive type. Primary data
collection is collection of first hand information through various sources.
Primary data can be collected in either of two forms:
a) Qualitative data

b) Quantitative data

We have collected primary data by questionnaire.

COLLECTION OF SECONDARY DATA

The secondary data are those which have already been collected by
someone else and which have already been passed through the statistical process.
Probably quickest and most economical way for researchers to find hypothesis is to take
advantage of the work of others and utilize their research programmed. In a relatively
short time a researcher can collect a large volume of published and unpublished data.
Therefore If time and effort are to be used economically, it is necessary to single out the
most imaginative individuals.
Secondary data collection is done with the help of published magazines
papers, annual reports etc. such information are already investigated and compiled by
certain people or banks or by government organization. Thus, this secondary data is
collected from secondary sources.

Secondary data is collected from the companys internal sources on the given
topic in order to get the fruitful and maximum information with the minimum time, effort
and the expenses of money.
Secondary data related to my topic is also collected from following sources:-

1. Articles on the history and profile of bank

2. The banks financial statement or annual reports

3. The AGM (Annual General Meeting)of the bank

QUESTIONNAIRE

Questionnaire plays a central role in the data collection process. A well

designed questionnaire efficiently collects the required data with a minimum number of
errors. It facilitates the coding and capture of data and it leads to an overall reduction in
the cost and time associated with data collection and processing. The biggest challenge in
developing a questionnaire is to translate the objectives of the data collection into a well
conceptualized and methodologically sound study.

The following questions should be addressed:

Why is the survey being conducted?

What do I need to know?
How will the information be used?
How accurate and timely does the information have to be?
Before designing the questionnaire, many decisions have to be made. These
decisions affect the questionnaire, and should be part of the plan for a survey.

RESEARCH ON

RESEARCH TYPE-Descriptive

UNIVERSE-Bareilly

SAMPLING TECHNIQUE-Purposive random sampling

SAMPLING UNIT- Customers of Bareilly city

SAMPLE SIZE-150

TYPES OF DATA- Primary data, Secondary Data, Banks websites

and other sources also.

TOOLS- Statistical schedule personal interview

FORMAT OF QUESTIONNAIRE

NAME:

ADDRESS:

PHONE NO.:

1. Income:
a. Below 5,000
b. 5,000 To 15,000
c. 15,000 To 25,000
d. Above 25,000

2. Occupation:
a. Government Servicemen
b. Business men(Individual/Firm)
c. Private Servicemen
d. Retired servicemen
3. Age:
a. Below 30
b. 31 to 40
c. 41 to 50
d. Above 50

4. Do You know about the Financial Services Provided by Urban Co-operative

Bank:
a. Yes
b. No

5. Where did you know about Urban Co-operative Bank:

a. Friends & Relatives
b. Hoardings
c. News Papers & Magazines
d. Others Media

6. Do You know about the Loan Facility provided by Urban Co-operative Bank:
a. Yes
b. No
7. What you think about document procedure of Urban Co-operative Bank of
loan Facility:
a. Simple Process
b. Complex Process
c. Tedious Process
d. Time Consuming Process

8. What You think about achieving Loan service in relation to time(days) which
you have to invest:
a. Quick Service
b. Slow Service
c. Moderate
d. Depend On the situation

9. Are you satisfied with the terms and conditions required by Urban Cooperative Bank for loan procedure:
a. Highly satisfied
b. Satisfied
c. Average satisfied
d. Dissatisfied

10. Are you satisfied with interest rates for loan procedure
a. Highly satisfied
b. Delighted
c. Satisfied
d. Dissatisfied
11. Your derivation towards after receiving services:
a. adequate
b. excellent
c. Moderate
d. Inadequate

12. According to your perception which bank provide best facilities after sales
services:
a. Urban Co-operative Bank
b. ICICI Bank
c. UCO Bank
d. HDFC Bank

DATA ANALYSIS AND INTERPRETATION

1) INCOME:

ANALYSIS AND INTERPRETATION

I found In my analysis that 50% people who are using this banks facility, are
achieving salary from 15000 to 25000 while 30% were getting above 25000, 10%
were of 5000 to 15000 & rest of the 10% were getting below 5000 salary

2) OCCUPATION:

ANALYSIS AND INTERPRETATION

In my analysis ,I found that 40% people were private servicemen while 30% were
businessmen, 20% government servicemen and rest of the 10% were retired
employees

3) AGE:

ANALYSIS AND INTERPRETATION

In my analysis 40% people were age of 31 to 40 while 30% were above 50, 20%
were of age 41 to 50 and rest of the 10% were of below 30.

4) Do you know about the Financial Services Provided by Urban Co-operative

Bank?

ANALYSIS AND INTERPRETATION

I found that 80% people knew about the financial services provided by the Urban Cooperative Bank while 20% were not aware about it.

5) Where did you know about Urban Co-operative Bank?

ANALYSIS AND INTERPRETATION

The response of 40% people was that they knew about urban co-operative bank from
Friends ands relatives while 30% knew from hoardings, 20% from news papers and
magazines and rest of the 10% from other media.

6) Do you know about the Loan Facility provided by Urban Co-operative Bank?

ANALYSIS AND INTERPRETATION

I found that 80% people responds as in favor of this question that they know about
urban co-operative bank while rest of the 20% people were not more aware about this
bank.

7) What you think about document procedure of Urban Co-operative Bank of

loan Facility:

ANALYSIS AND INTERPRETATION

I found that 40% people think that loans document procedure of this bank is a simple
process, while according to 30% people it is time consuming, 20% people said that it is
complex process and 10% people said that it is a tedious process

8) What You think about achieving Loan service in relation to time(days) which you
have to invest:

ANALYSIS AND INTERPRETATION

I found in my analysis that 50% people think that loan service of this bank is quick
service while 30% are in favor of Moderate service, 20% said it Depends on the
situation and no people think it negatively.

9) Are you satisfied with the terms and conditions required by Urban Co-operative
Bank for loan procedure:

ANALYSIS AND INTERPRETATION

I found the result in response of this question that 40% people are highly satisfied
while 30% are average satisfied , 20% satisfied and rest of the 10% are dissatisfied.

10) Are you satisfied with interest rates for loan procedure

ANALYSIS AND INTERPRETATION

I found in response of this question that 40% people are satisfied with the interest
rates of loan Procedure while 30% people are delighted, 20% satisfied and 10%
dissatisfied.

11) Your derivation towards after receiving services:

ANALYSIS AND INTERPRETATION

I found in response of this question that 45% results are in favor of excellent service
while 27% for adequate, 23% for moderate and rest 5% are for inadequate service.

12) According to your perception which bank provide best facilities after sales
services

ANALYSIS AND INTERPRETATION:

I found in response of this question that most of the people were satisfied with Urban Cooperative Banks services while a little number of people were not satisfied & were in
favor of other banks. The result is following found in my data analysis:

40% people in favor of Urban Co-operative Bank

30% people in favor of ICICI Bank

20% people in favor of HDFC Bank

10% people in favor of UCO Bank

DEVELOPMENTS

1) COMPUTERIZATION: For achieving accuracy in work and maintaining update

record and keeping constant speed in work, the bank has undertaken
computerization programmed of head office as well as huge branches in the first
stage, out of which head office and 20 branches of the bank are fully computerized
and the computerization of another big branches is under process

2) WORKING CAPITAL: The working capital of the bank as on March 2006 has
reached up to Rs. 19192.26 lakhs
.
3) SHARE CAPITAL AND RESERVES: The banks authorized share capital is of
rs.829.10 lakhs and the value of each share is Rs. 100/-only.like this reserves of
the bank is 2584.37 in 2006

4) CASH MANAGEMENT SYSTEM: Bank has established a cash management

system which ensures optimum utilization of cash in hand at all the branches. The
taluka level branches collects the information about the cash in hand and balances
with other banks of all the branches in the taluka and all taluka level branches
conveys the information about the same on daily basis to funds management
department of head office which consolidates the information and takes the
necessary decision for investment of surplus resources. This system enables for
speedy disposal/ investment of surplus funds so as to earn more interest income as
well as it is useful for maintaining adequate liquidity.

5) INCOME AND EXPENDITURE: The overall income decreased by 1.25%

while the growth of profit increases by 47.12% to that of the year 2003-04. This is
due to stiff competition and with reduces expenditure, especially interest

INCOME AND EXPENDITURE

(Rs. In lakhs)
Sr.No.
1.

2.

Particulars
Income
1) Interest received from
a)investment
2,75,01,896.61
b) Loan
2,96,47,244.34
2) Commission, Exchange &
brokerage
3) Miscellaneous income
Total income
Expenditure
1) Interest paid on
a)borrowing
14,63,147.000
b)Deposits
2,97,20,530.95
2) Salaries & Allowances & Provident
fund
3) Rent,taxes,insurance,lighting etc
4) Law charges
5) Postage, telegrams & telephone
charges
6) Auditors fees
7) Depreciation on & repairs to
property
8) Stationery, printing & advertisement
etc
9) provisions
10) Other expenditure
Other expenditure
Profit of the year
Total expenditure

2007-08
5,71,49,140.95
30,38,651.00
18,44,452.75
6,20,32,244.70
3,11,83,677.95
95,19,800.16
29,18,330.25
1,94,681.00
1,67,173.10
10,000.00
38,22,911.34
21,36,004.34
6,92,595.60
36,47,376.70
77,39,694.26
6,20,32,244.70

INCOME EXPENDITURE & PROFIT (2005-06-2007-08)

Rs. in lacks

Sr.No.

Particular

2005-06 2006-07 2007-08

1.

Income

1250.37 1301.50 1328.17

2.

Expenditure 957.45

1048.98 1047.34

3.

Profit

137.56

252.52

280.83

4.

Provision

120.45

188.73

214.94

5.

Net Profit

59.49

63.79

65.89

Note:- Bank profit is increase at the time bank is profit condition but net profit is less
than dues interest bank is not given dividend.

6) DEPOSIT MIX
DEPOSITS MIX

Sr. No.

Type Of Deposit

Year
2005-06

1.

2.

3.

2006-07

Average Growth
In %
2007-08

Individuals
Current deposit

190.51

330.88

485.41

154.80

Saving deposit

4040.98

4943.19

6191.09

53.21

Fixed deposit

2822.78

2797.61

3334.62

18.13

Total

7054.28

8071.68

10011.12

41.92

Current deposit

364.83

375.98

400.98

9.91

Saving deposit

366.12

360.17

353.66

(-)3.40

Fixed deposit

1037.77

1033.41

1062.48

2.38

Total

1768.77

1769.56

1872.12

2.74

Grand total(1+2)

8822.99

9841.24

11828.24

34.06

Individual to total deposit

79.95

82.02

84.64

5.87

Current to total deposit

4.13

3.82

3.39

(-_17.92

Saving to total Deposit

4.15

3.66

2.99

(-)27.95

Fixed to total Deposit

11.76

10.50

8.98

(-)23.64

Other deposit (total)

Relative shares In %

The deposit of the bank increased from Rs. 8822.99 lakhs in 2005-06 to
Rs. 11828.24 lakhs in 2007-08 by 34.06% as shown in table. The table indicates the main
sources of deposits are co-operatives, individual deposit Rs. 7054.28 lakhs at 2005-06 to

Rs. 10011.12 lakhs at 2007-08 or the individual deposit is 79.95% in 2005-06 from last
year 2007-08. The deposit in % is 84.64%. As chart 2 shows it ranges from Rs. 7054.28
lakhs to Rs. 10011.12 lakhs.

These indicate that, though the bank encourages stable deposit which is
term deposit. It has also drawback in promoting the current deposit which is free of cost
and saving. The bank should strengthen these two deposit types so as to increase its
marginal profit with a lesser cost of fund.

7) BORROWING POWER OF THE BANK: The borrowing power of the bank as

per the bye-law is 12 times of paid up share capital + general/free reserves + building
fund accumulated losses.

As per the bye-law, the bank has borrowing power up to the limit in
the row 4 in the above table. But in practice the actual borrowing power which is
indicates in row 7 exceeds the borrowing power by the amount expressed in row
8.

BORROWING POWER OF THE BANK (2005-06-2007-08)

Sr.No.

Items

Year

Avg. Growth In
%

2005-06

2006-07

2007-08

1.

Paid up share capital

778.77

817.92

829.10

6.46

2.

General reserves

315.11

423.17

577.22

83.18

3.

total

1093.88

1241.09

1406.32

28.56

4.

Borrowing power(12* of
step3)

13126.56 14893.08 16875.84 28.56

5.

Deposits

8822.99

9841.24

11828.24 34.06

6.

Borrowing from banks

4386.44

5225.46

3315.63

7.

Total A.C. borrowing(3+6)

13209.43 15066.70 15143.87

8.

Reserve borrowing power(74)

82.87

173.62

14.64

1731.97

BORROWING RECEIVED

Particulars

2005-06 2006-07 2007-008

Sanction loan Limit

4730.00 220

4670.00

Maximum Working .Fund

4724.80 199.90

3624.00

End lost loan

4665.90 187.00

3100.00

Loan sanction use Percentage of

99.89

77.60

40.45

8) FINANCIAL PROGRESS REPORT:

FINANCIAL PROGRESS REPORT OF URBANCOOPERATIVE BANK

Details

2005-06

2006-07

2007-08

Preference capital

117.06

165.07

224.93

Deposits

690.49

713.19

830.11

Withdrawals

5641.38

7384.91

10221.34

Investment

3724.32

4882.34

6029.32

Loan & Advances

2358.70

3488.81

4584.82

Working Capital

7002.45

9424.55

11813.91

No. Of Members

3717

4513

5469

Net Profit

54.31

77.40

90.88

No. Of Branches

Examine rank

Profit to preference
shareholders

17%

17%

N.P.A.(Gross)

219.42(9.30
%)

348.87(9.98
%)

397.47(8.67
%)

N.P.A.(Net)

NIL

63.73(1.98%
)

40.43(0.09%
)

Recovery %

68%

74%

85%

9) EMPLOYEE PRODUCTIVITY:-

FY 05

FY6

FY 07

Number of Employees

1291

771

727

Number of Offices

181

28

24

Profit Per Employee (Rs. in mn)

8.0

1.9

0.3

Assets Per Employee (Rs. in mn)

314

69

19

Administrative Expenses to Average Total

0.45

0.67

0.76

12.9

22.3

30.9

Assets (%)
Cost Income Ratio (%)

CONCLUSION AND FINDINGS OF STUDY

CONCLUSION
As a Co-Operative Bank has played a major role especially in the short-term
and medium term loans which have been able to reach each & every member of the bank.
From the earlier discussion the following conclusion and findings can be made in
connection with the objective of the study..
1. Paid share capital 817.92 lacks in 2005 to 829.10 lacks in 2006. Similarly the
reserve also increased from 2369.35 lacks in2005 to 2584.37 in 2006.
2. Due to sustained efforts made by the bank, the deposit mobilization is increased
from 8822.99 lacks in 2005-06 to 11828.24 in 2007-08.
3. The borrowings of the bank are decreased from Rs. 13209.43to 2005-06 to
15143.87 in 2007-08
4. The loans and advances have increased during the 12652.61 in 2006-07 and
12411.16

in 2007-08 have reduced. The medium and long term loans have

increased in 2005-06..
5. The number of employee increase for the last 3 years.
6. If we go through the SWOT analysis of urban Co-operative Bank as a whole then
I will find out that it has a very good standing at market place and urban Cooperative Bank has very good image among present other banks and he should
cash his image by effective use of marketing mix.
7. From the survey I found that lot of people dont aware of urban Co-operative
Bank and its all branches. The research which I have conducted, I found that if
urban Co-operative Bank wants to stand in top position then he has to maintain it
self firstly in some areas like:

Advertising

Number of services

RECOMMENDATIONS & SUGGESTIONS

During the survey it is found that urban Co-operative Bank had already a good
position in the market and it is a powerful bank. By the following recommendation,
company/bank can increase his market share:
1. The power of the board should be delegated to executive committee in accordance
of the co-operative law and by law of the bank for the smooth working of the
bank.
2. The bank should further strengthen its share capital and reserves.
3. To adopt measures to boost recoveries over dues to put forth and implement
schemes of encouragement and rewards in the form of incentives may provided
for good performance.
4. Proper supervision, proper monitoring and follow up of loans advances made
strong.
5. The bank should be prepared the list of NPA accounts to ensure concentration of
efforts to strength the recovery
6. The bank should adopt the concepts of cost effectiveness, competitiveness,
professionalisation and accountability. :
7. Bank must emphasize on advertising and creating customer awareness. Bank
should launch some other advertising campaign. Bank should also increase the
frequency of old advertisement.
8. The Bank must arrange very well structured and strong Distribution Network
which has a major hand in the success of any service.
9. Bank must provide some additional services to customers like nationalized banks
for more customer satisfaction, by which awareness of the customer will also
increase.

LIMITATIONS OF STUDY

1. The scope of this project report is limited for the research purpose, the survey is
taken from only Bareilly, and so it may not be exact representative of the other
cities and countries customers.

2. The research work is limited by the time & money constraints.

The data has been collected through random sampling method through some of the
respondent may had some personal basics towards a particular bank and its services

BIBLIOGRAPHY

Manual on banking, Taxman Publications, 2005, Delhi.

S.K.Sinha, 1998,Rural Credit and Cooperatives in India, Delhi.
Vasant, C. Joshi and Vinay V. Joshi, 1998,managing Indian banks the challenge
ahead, response Books, New Delhi.
Financial Statement Analysis by Pearson Publications. Financial Management by
I.M. Pandey, Tata McGraw Hill Publicatios
Bank internet websites.
Banks secondary sources of data like Annual Report, Brochour etc.
R.K.Kothari-Research Methodology

Anatomy
Of
The
Word
Project

PROFILE
OF
URBAN
CO-OPERATIVE
BANK

SERVICES
OF
BANK

LOAN
&
ADVANCES
PROCEDURE

COMPARITIVE
STUDY
OF
HOME LOAN
OF
DIFFERENT
BANKS

RESEARCH

METHODOLOGY

SWOT
ANALYSIS

DATA ANALYSIS
AND
INTERPRETATION

CONCLUSIONS
&
FINDINGS
OF
STUDY

SUGGESTIONS
&
RECOMMENDATIONS

LIMITATIONS
OF
STUDY