Kasaba Socity

CONTENTS
1. INTRODUCTION TO PROJECT REPORT 2. INTRODUCTION TO CO-OPERATIVE SOCIETIES 3. INTRODUCTION TO AGRICULTURAL FINANCE 4. MANAGEMENT AND WORKING OF S.K.V.S.S.B 5. HISTORY AND EVALUTION OF K.V.S.S. BANK 6. DEPOSIT SCHEMES AND CREDIT FACILITIES IN S.K.V.S.S.B. 7. SURVEY ANALYSIS AND FINDINGS 8. SUGGESTIONS AND CONCLUSION
ANNEXURE Questionnaire Bibliography
Sahyadri Arts & Commerce College, Shimoga
CHAPTER - 1 INTRODUCTION TO PROJECT REPORT
Introduction Objectives Purpose of study Methodology and scope of study Need of the Study Limitation
INTRODUCTION TO PROJECT REPORT Introduction Agriculture is the back bone of our country in India more than 75% of people are resulting in source area and more than 69% of people depend on agriculture for their Vigor. As agriculture is the main source of the national Income of the country, it is also the primary source of savings and capital formation. It accounts for about 32% of National Income of the country. Indian formers are financially very poor. There is also rural indebtedness. The seriousness of the rural indebtedness in India has been very well brought out by the statement. Indian Formers are both in debts, live in debts and die in debts. For the successful development of agricultural in the country, an adequate supply of finance to indispensable only when finance is available in required amount, agriculture can be carried on as a commercial preparation successfully. So, this Project Report is oriented and instituted soon and
advances to agricultural sector under government schemes. This Project Report is oriented to know how the Government provides financial ass8stat to the agricultural people and their development. The Kasaba Bank Shikaripura has been selected for the study as to how government work in providing financials to the needy people in the rural bank. The following are the important objectives that we contemplate in this study.
To make a brief study of working and management of S.K.V.S.S.B. To study the growth and financial resource of the S.K.V.S.S.B. To make a brief study of the customer's service provided by the S.K.V.S.S.B. To identify the problem faced by the S.K.V.S.S.B. To suggest solutions by studying the problems relating to the society. To find sources for further information concerning the society problems. To know about the service provided by the S.K.V.S.S.B. To know about the service provided by the S.K.V.S.S.B.
Purpose of study: The main purpose of Study is to know the problem faced by the Bank and to suggest solutions to the problems faced by bank and formers problems. Besides these purpose object are. To know the Government helped and is helping to the agricultural people. To study the problem faced by the agricultural people on matter of loan borrowing. To know the credit-facilities of Government To Study about performance of the branch a bank. To get general opinion about the customer.
To get-opinion about agriculture finance provided by bank for agriculture. To know the problem faced by bank. To suggest solution for their problem. To make suggestion regarding development of services to attract customer. To know how the bank helps in development of Agriculture. To know whether credit facilities are satisfactory to the agriculture. To know about the recovery of loans.
Methodology and Scope of study: The data is collected is of two types they are primary data and the secondary data Primary data and other type of data is collected from library books, newspapers, literature etc, which have been enumerated in the bibliography. This is secondary data the data has been tabulated analyzed and interpreted. The case study has been made in the KASABA VYAVASAYA SEVA SAHAKARA BANK Branch B H Road SHIKARIPURA
Need of the study: 1. The study makes us to know the performance and growth of the S.K.V.S.S.B. 2. The report is helpful to understand the working and management of the S.K.V.S.S.B.
3. The report is helpful in knowing about the Members wants to the society's service. 4. The study helps in knowing the financial position of the S.K.V.S.S.B. 5. It increases the knowledge regarding co-operative operations and activities.
Limitation: The Survey however suffers limitation of time & money. Even then, sincere efforts have been made to make the survey a realistic one to ascertain the really and to suggest remedies for the problems. The following are some of the limitations of the study 1. The study is conducted only on basis of data provided by K.V.S.S.BANK 2. Conclusions are drawn on the basis of limitation data available 3. Time was limited to conduct a detailed study. 4. Customers are reluctant to give information. Hence information provided by them may be biased. 5. Partial justice is made in this report to lack of time. As recent information, regarding number of Kasaba co-operative societies in India were not available at the time of preparing this project. It has not been included.
CHAPTER 2 INTRODUCTION TO CO-OPERATIVE SOCIETIES
Introduction Meaning and Definition of Co-operative Society Characteristics or Principles of Co-operative Society Formation of a Co-operative Society Co-operative Movement in India
INTRODUCTION TO CO-OPERATIVE SOCIETIES

Introduction: Co-operative societies are one of the forms of business organization. They are found all over the world. Generally, they are formed by the working and lower middle class people who constitute the weaker sections of the society for the purpose of safeguarding their interest against exploitation by powerful businessmen. Unlike, the capitalistic form of organization which has the motto "all for himself", co-operative societies follow the motto "each for all, and all for each", the principal theory of true co-operative society is the elimination of profit the idea begin to provide goods and service to members at cost. Thus, poor farmers may form co-operative credit societies to get cheap credit facilities and protect themselves against the exploitation of the
moneylenders. Similarly, small producers may form co-operative marketing societies to sell their products at favorable prices and protect themselves against the exploitation to the traders. Consumers belonging to the middle and low income group may form consumer's co-operative societies so as to get essential commodities at fair price and protect themselves against the exploitation by the retailers. The idea behind a co-operative society is that an isolated and powerless man, in association with others, can lift himself as well as others out of
weakness into strength, " Co-operative (i.e., work together) for working out (i.e., Solving) your economic problems is the theory of co-operation.
MEANING OF CO-OPERATIVE SOCIETY: The word "co-operative' is derived from the Latin word co-operative. Co means together and operari means to work. In other words, co-operation means to work together to achieve common purpose. Co-operative societies are a type of business organizations on which individuals generally belonging to the homogeneous group voluntarily associate together on the basis of equality for the furtherance of their common economic interest. In other words a co-operative society is a form of business origination, in which economically weak persons voluntarily associate together as human begins, on the basis of equality of opportunity and control, equity of distribution of profits and mutuality (i.e., self-help and mutual help) for the promotion of their common economic interests.
DEFINITION OF CO-OPERATIVE SOCIETY: A "Co-operative society" means, a co-operative society registered under the co-operative societies Act, 1912 or under any law for the time begin in force in any state for the registration of co-operative societies. Co-operation has been defined in different ways by different authorities.
Some of the important definitions are as follows: (1). H. Calvert, defines co-operations as " a from of organization where is persons voluntarily associate together as human begins on the basis of equality for the promotion of the economic interest of themselves". According to Calvert, a Co-operative society is a voluntary association. (2). Dr. C.R.Fay, defines a co-operative society as "an association for the purpose of joint trading originating among the weak and conducted always in an unselfish spirit on such terms that all who are prepared to assume the duties of membership may share in its rewards in proportion to the degree in which they make use of their associations" (3). Mr. Talmaki, defines a co-operative society as "an association of the weak who gather together for a common economic need and try to if themselves and others out of weakness into strength through Business organizations, conducted for the common benefit of all who joint it". (4). According to Dr. K.N.Katju " Co-operation is self help as well as mutual help. It is joint association or Enterprise of those who are not financially strong and are enable stand on their own legs, and therefore, come together not with a view to get profits but overcome disability arising out of want of adequate financial resources and thus better their economic conditions", (5). Professor. Lamert observes " Co-operation as an enterprise formed and directed an association of users, applying within itself the rules of Democracy
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and directly intended to server both its own members and community as whole".
Characteristics or principles of co-operative society: The Main characteristics or principles of a co-operative society are as follows:1). Body Corporate: The Registration of a society under the co-operative societies Act renders it a body corporate. It becomes entitles to enjoy certain privileges as are enjoyed by a company on its incorporation. Among others , mention may be made of the following privileges: 1. The society becomes a body corporate. 2. The society enjoys perpetual succession. 3. The society has its own common seal. 4. The society can hold property in its name. 5. The society can enter into contracts with other persons. 6. The society can institute and defined suits on other legal proceedings. 7. The society can do all others thongs necessary to carry on its activities with reference to the object for which the society has been formed.
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2) Voluntary Association: A Co-operative society is essentially a voluntary association of
individuals. A persons is free to join a co-operative society as its member. Similarly, he is free to leave the society any time by giving due notice to the society. Thus, there is no compulsion either to become a member or to continue as a member. 3) Association persons: A co-operative society is an association of persons, and not of capital. Individuals join a co-operative society as human begins, and not as capitalists. 4) Unrestricted Membership. There is no limitation on the membership of a co-operative society. The number of members of a co-operative society can be increased to an unlimited extent. 5) Equal Voting Rights: In a Co-operative society, each member has only one vote whatever may be the number of shares held by him. "One member, one vote", and not :One share one vote" is the basic principle of a co-operative society. This principle enables the members to have equal voice in the management of the society.
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6) Democratic Management: Democratic management is the fundamental principle of a co-operative society. As a co-operative operates on a local scale, generally , all the
members attend the meetings. Further at the meetings each member has only one vote. Again at he meetings only those policies, which promote common interests are laid down. Thus, the day-to day affairs of a co-operative society are conducted on the democratic principle of "each for all, and all for each". 7) Service Motive: A Co-operative Society is formed primarily for the purpose of rendering maximum services to its members, and not for earning maximum profits. : Service, not profit" is the main aim of a co-operative society. 8) Equity of Distribution of profits: The principle of equity is adopted in the distribution of the profits of a co-operative society. The entire profits of co-operative society are not
distributed as dividend among the members. A low rate of dividend, generally 6 % is allowed on the capital contribution by the members. A portion of the profits is transferred to general reserve. A small portion of the profits is used for the general welfare of the locality in which the society is working. The rest of the profits of the society are distributed among the members in proportion to their business with the society.
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9) Liability: The liability of the members of a co-operative society may be limited or unlimited. The liability of the members is limited in the case of a limited cooperative society, and unlimited in the case of an unlimited co-operative society. Formation of a co-operative society: In India, the formation and registration of co-operative societies if governed by the provisions of the INDIAN CO-OPERATIVE SOCIETIES ACT OF 1912 or The State Co-operative society Act in force in various states. Formation of a co-operative society, there should be at least ten members who are bounded together by a common bond (i.e., belonging to the same locality, class or occupation and having a common economic need). These members (called promoters) should submit an application for registration to the Registrar of co-operative societies of the state in which the society's office is to be located. The application for registration should state: The proposed name of the society; The aims and objects of the proposed society; Its area of operations; Particular of share capital proposed to be raised by issue of shares and The nature of member's liability.
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Further the application for registration should be accompanied by two copies of the proposed bye-laws of the society. The bye-laws contain the rules for the internal; working of the proposed society. The bye-laws are generally prepared in accordance with the model bye-laws available with the Registrar concerned. On receipt of the application for registration and the bye-laws, the registrar of co-operative societies will examine them and if he is satisfied, will register the society and will issue the certificate of registration. On
registration the society comes into existence and becomes a body corporate with a distinct legal entity, perpetual succession and a common seal. After its registration, the co-operative society admits new members and proceeds to conduct the business for which it has been formed.
Co-operative movement in India In recent years, the co-operative movement has received a great
impetus. In India, the idea of co-operative took concrete shape for the first time in 1904. With the passing of the co-operative credit societies Act which was a measures to combat rural indebtedness and provide for credit societies. Government extended various kinds of help to promote the objectives of these societies.
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The essential features of this Act were as follows: A society could be formed by any ten persons living in the same village or town. The co-operative societies were classified as rural and urban The rural societies were bonded to have unlimited liability, in case of urban societies the question was left to their option. The Act provides only for the formation of credit . The area of operation with in which societies could operate was callously restricted. The society could advance loans to members on ly on personal securities. The interest of a member in the share capital of the society was strictly limited. No member could hold shares for more than Rs 1000. The account of every society work to be audited by the register . Societies were excepted from payment of income tax , stamp duties and registration fees. The societies work given a leangle personality and were authorized to rise found and carry on they business in a co operative society.
In 1912, Statutory provision was made for non credit forms of cooperation in such activities has production, purchase, insurance, sale housing, ext.. and the creation of union of primary co- operative societies for mutual
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control and audit of central and provincial banks to help the primary societies with credit In order to review the progress and lay down the future pattern of growth for co-operatives, the Macaroon committee was appointed in 1914. In the light of the recommendation of this committee, co operative societies were recognized and provisions and was made for the association of non official institutions and individuals with this movement. Under the Act of 1919, cooperation become a provincial transferred subject. However, the Government of India continued to take interest in the growth of the movement and established the Agricultural Credit Department in the Reserve Bank of India, in 1935 . IN 1945 the co-operative planning committee was appointed which recommended that primary society should be converted into multipurpose societies and that within a period of ten years 50% of the villages and 30% of the rural population should be brought within the ambit of the reorganized societies. The committee of direction appointed in 1951, by the Reserve Bank of India surveyed the rural credit structure and its report was published in December 1954. The committee recommended an "Integrated scheme of Rural Credit".
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CHAPTER-3 INTRODUCTION TO AGRICULTURAL FINANCE
Introduction Types of Agricultural Financial Sources of Rural Credits Institutional Sources of Finance
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INTRODUCTION TO AGRICULTURAL FINANCE
Introduction: In India most of the formers are poor and they will not be in a position to manage the funds, which requires for the agriculture. So the agriculture lists are borrowing funds in the form of credit from various sources. Agricultural finance means extending financial requires support for the agriculture. It means going financial assistance to the agriculture for discharging of Agriculture Activities.
Types of Agricultural Loan The financial requirements of Indian farmers can be classified into 3 types Viz..
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1. Short term credit: -
Short-term credit, for a period of 12 to 15 months
is needed for agricultural purposes, such as the purchase of seeds and fertilizers and payment of Wage of Farm workers, and for domestic expenses. 2. Medium-Term credit: - Medium-Term credit, for a period of 15 months to 5 years is needed for the purpose of buying cattle and Agricultural implements, construction of bunds and embankments on agricultural lands and for making other minor improvements on lands. 3. Long-term credit: Long-term credit for a period of 5 to 20 years is need for making permanent improvements on lands such as digging of wells, installation of pump sets, purchase of farm machines, acquisition of additional lands and also for the payment of old debts.
Sources of rural credits: There are various sources of rural credit. There are various sources of rural credit. They can be broadly classified into broad categories viz. 1) Non-Institutional sources 2) Institutional sources.
Non-Institutional: Non-Institutional sources of finance refer to individuals like money lenders, traders and commission agents, etc, who provide agricultural finance.
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Non-institutional sources were very important in the past. Today, their importance has declined, and they account for just 20% of rural finance. The Important non-intuitional sources of finance are: 1. Money-lenders: The money-lenders relay on important role in rural finance. They are called the CUSTODIANS OF THE PERSON TO HONOR as they are the sole supporters of the peasants in times of famine and scarcity, at the births of sons and at the marriages of daughter, The importance of money lenders in rural finance is mainly due to their easy accessibility, easy lending procedure, their willing new to lend for any purpose against any security and their estimate knowledge of the rural people. 2. Traders and commission agents: The traders and commissioner agents finance about 2% of the financial requirements of the formers. They advance loans to the formers against the security of agricultural crops. They charge very high rates of interest. 3. Landlords: Land Lards provide finance to their tenants. They change very high rates of interest. The volume of finance provided by turn is negligible. Institutional sources of finance: Institutional resources of finance refer to institutions, such as the Kasaba bank, commercial Banks etc. Which finance the requirement of
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farmers? Institutional sources meet about 80% of the credit needs of rural areas. The important institutional resources of finance are. 1. Rural Credit Societies: Rural Credit societies at Agricultural Credit societies are the cheapest and best source of rural finance. Since the advent of planning. They have been playing a leading role in agricultural finance. In 1993-94. They have provided finance to the court of Rs. 6,460 Corers. They finance about 35% of the credit needs of the agriculturists. They provide short-term and medium term finance. Loans are, generally, given for productive at agricultural purposes, such as the purchase of seeds and fertilizers and agricultural implements and for the payment of wages. Sometimes, loans are also given for domestic purposes. Loans are ordinarily given against the personal security of the borrower supported by the personal security of another member. Loans are also given against mortgage of Loans. The rate of interest charged on the loans is very low, usually, about 6% per annum 2. Land Development Bankers Land development banks grant loans to formers for long periods varying from 15 years to 25 years. Loans are repayable in easy installments. Loans are given at moderate rates of interest. Loans are given against the mortgage or security of Lands. Loans are given for development purposes, such as purchases of machinery, legging of wells, installation of pump sets and
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making of other permanent improvements and making of other permanent improvements on lands and also for the resumption In India, the progress of land development banks was slow before the Second World War. But it picked up some momentum after 1947. Since then, a number of land development banks were started in several states . 3. Government (TACCAVI Loans): The Short term and Long term loans given by the state Governments to agriculturists are known as TACCAVI Loans. The Long term loans are granted under the Land improvement on Lands, such as the reclamation of lands, construction and repairs of well, purchase of Agricultural implements, etc. The Short term loans are granted under Agriculturists Loans Act 1884 for purchase of seeds, fertilizers and for the payment of wages. These loans were formerly granted through the agency of community development and the agricultural securities. Now they are routed through the kasaba credit societies and land development banks.
4. Regional Rural Banks or Rural Banks:
Regional rural are banks engaged in the granting of direct loans and advance to small and marginal formers, rural artisans and landless laborers for productive purposes at least rates of interest.
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5. Commercial Bankers: In the part, commercial Banks played on significant role in agricultural finance. They met just 5.5% of the credit requirements of the agriculturists. Now ever, after the nationalization of the major commercial banks in the country, the commercial banks have been participating in agricultural finance to a greater extent. They have opened thousands of branches in rural areas, and through their rural branches they have financed a considerable portion of the credit needs of the farmers. Today, they finance about 39% of the total credit requirement of the rural people. 6. State Bank of India: Since its inception in 1955, the state Bank of India has been playing on actress role in the field of rural credit at agricultural finance. It has bas been helping the farmers and financing agriculture in many ways. 7. Research Bank of India: The Research Bank was not expected to provide financial assistance to agriculture directly. It should give financial assistance to agriculture only indirectly i.e. through the state kasaba banks, central and mortgage banks, the State Governments and the agricultural Reference corporation. 8. Agricultural Re finance and Development casaba bank The Agricultural Refinance and Development kasaba Refinance Set up on 1st July, 1963, under the Agricultural Refinance Casaba Act of 1963.
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CHAPTER - 4
MANAGEMENT AND WORKING OF S.K.V.S.S.B MANAGEMENT
Introduction Election procedure The structure of management of S.K.V.S.S.B.
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MANAGEMENT AND WORKING OF KASABA SOCIETY
Introduction The management of a co-operative society is entrusted to a committee known as managing committee'. The members of the managing committee are elected directly by the members of the co- operative society at annual meeting. Generally, a co- operative society has the following office bearers President Vice precedent Secretary Treasurer. The Managing committee determines the detailed programs and procedures of the society. It is accountable to the general body members.
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The secretary is responsible for the conduct of the day to day affairs of the society in accordance with the decisions of the managing committee . He is accountable to the managing committee
MANAGEMENT OF S.K.V.S.S.B. Democracy is the keynote of the management S.K.V.S S.B it is based on the principle of 'one number, one vote'. The management of this society is entrusted to two bodies , viz.
1. A general committee : it consists of all the members of the society. 2. A managing committee: it consists of 15 directors chosen among the
members of the general committee at its general meeting. The administration of the society is vested in the hands of the committee, which has been elected in the general body meeting and general body is ultimate authority for all matters of the society. Executive committee of S.K.V.S.S.B consists of a president, viceprecedent, and the 13 directors. The general committee elects the members of the managing committee, appoints an honorary secretary and adopts the annual balance sheet submitted by the managing committee subject to orders and reports of the registrar and auditor. Thus the management of S K.V.S.S.B is carried on by the board directors elected by the shareholders on the basis of 'one member one vote'.
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ELECTION PROCEDURE OF S.K.V.S.S.B Election is an indication of democracy. Democracy is a symptom of give and take policy. In this co- operative scenario, 'give' indicates cooperation through valuable services for the society growth and development. This body work can be seen in S.K.V.S.S.B electoral process. The election procedure of S,KV,S,S,B is according to Karnataka state co- operative societies Act (sec-14) and comprises the following clauses:
1.Elections are held according to Karnataka state co-operative societies (Amended)(Sec-14)(sec 134). 2.According to byelaw No 31 of the society, total board of directors of restricted ro 15, and one is reserved for female members. 3.Default members are not eligible to contest and cast their votes according to section 20 of the Act. 4.The Secretary of the society elected nominated applications. 5.Elected/ nominated application must be signed by the ten eligible members [sec 14(8)] 6.Nomination applications are rejected when they are issued after the last or without the consent of the candidate [sec14(9)].
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7.Every elected or nominated application must have deposit of Rs.10 and get the voucher or demand draft from the society [For male members the deposit amount is Rs. 50] Sec 14 (10)].
8. Deposit amount are for forfeited in case the candidate failure to get 1/10th
of the total valid votes [sec.14(11) and (12).] 9.The candidate must be present, both nominated and constant at the time of withdrawal of nomination [sec14(17)] 10. Symbols of election are printed on the notice board. In the application form, the candidate can write for three symbols, ultimately, the chief election officer has full power to assign symbols. 11. Contestant must present at the time of scrutinizing the application. 12. According to 13-A the voting candidate must have the identity card, which has been issued by the secretary or his sub ordinates to cast the votes and sign the voting register. 13. The person for candidature should not posses disqualification's according to 29c of co- operative socialites Act. In addition to the electoral clauses, a separate timetable is given for detail information about election time, venue ect., After the election, among the directors; one is elected as president and vice president. Usually, the president can preside over the meetings.
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The structure of Management of S.K.V.S.S.B can be shown in a chart as follows:
SHAREHOLDE RS PRESIDENT
VICE PRESIDEN DIRECTORS
SECRETARY
ACCOUNTANT
CLERKS CUM
CASHIERS
SERVANTS
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Office Staff
SHAREHOLDERS Shareholders are the real owners of the co- operative society, they purchase shares by paying its face value as their shares in the total capital of the society. They exercise their rights through casting their votes; thereby they look after the welfare of the society with the help of directors, who have been elected with the votes of shareholders.
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Usually, share holders believe in the directors and they see overall performance of the society at the annual general body meeting in which the final accounts are presented by the secretary. In case of shortage of capital or surplus of capital can read jested by refunding or raising vice versa as the case may be with the help of directors. Shareholders are not only the owners, but also the custodians of the society. With the help of directors and secretary, they give their valuable suggestions in the annual general body meetings. As we know that, capital is the main criteria to build up the financial strength of this society. There fore, on the shareholders are to be classified as; basis of quantum of capital
Qualification for membership: As per byelaw of the society, the members must be fairness and come under Shimoga District jurisdiction and must attained 18 years old. The board of directors have the full power to accept or reject the membership applications.
Disqualification for Membership:The membership may be cancelled for the three following reasons1) Not to take more time than restricted time. 2) Loan amount cannot be used for other than purpose.
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3.Lunatic, insolvent, misconduct and other dis-qualifications.
Liability of Membership: The liability of the members of the S.K.V.S.S.B is limited to the extent of the full of the shares held by them.
President President is chief executive body of the society: as he is to preside over all the meetings and functions of the society. Shareholder are given voting power to control and look after day to day's business of the society. But, in practical, it is not possible to all of them to come out and see the affairs of the society. For that, as per Society elected procedure they elect directors and among the directors, one is elected as the president of the society. He can presume his power as president for a year.
Vice President :He is basically a director. In the absence of president, he extends his cooperation and suggestion in case of decision making process. Vice precedent is elected by the directors. He cans executive officer of the society. Thus, he has the power to frame the rules regarding working and management of the society.
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DIRECTORS: Society represents the collective responsibility of its members and its prosperity is being carried by them, (Shareholders) I t is not possible for all shareholders in the day to day. Management 0f the society, as they are large in number and are scattered over Shimoga District. So, the shareholders of the society elect among themselves some members good in society management as their representatives to manage the day to day affairs of the society. The members or representatives elected by the shareholders to manage or direct the day to day affairs of the society. The members or representatives elected by the shareholders to manage or direct the Day- to day affairs of the society are known as DIRECTORS. As per byelaw No. 31 of the society, total board of directors are restricted to 9 and one is reserved for female member.
POWERS OF DIRECTORS: The board of directors of the society enjoys all such powers as are enjoyed by the society itself. Thus, the board is entitled to exercise al such powers and do al such acts and things as the society is authorized to exercise and do. This means that, the powers of board of directors are co - extensive with those of the society, i.e, as great as those of the society. There are however, the following important powers of the directors:
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1. Directors can set a limit of loan. 2. Interest rate is to be fixed at the board meeting. 3. Power to disqualify the application of the new members. 4. Disqualification of membership of default members (i.e, voting power). 5. Power to call a special meeting of members. 6. Power to invest the funds of the society. 7. Power to verify the accounts of the society. 8. Power to appoint a secretary and internal auditor. 9. Power to get loans and meeting allowances. There are however, the following important limitations upon the powers of directors: 1. They must exercise their powers subject to the provisions contained in the co operative societies Act 1912. 2. The board of directors cannot exercise those powers, which are required to be exercised by the members in the general body meeting. 3. They cannot sale or borrow outside funds without the knowledge of society members.
MEETING OF S.K.V.S.S.B DIRECTORS In case of every society, the meeting of its directors must be held at once every month and at least 12 such meeting a must be held in every year. In
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case of important decisions or policy matters interim meeting may be called . It is important to note here there is not provision as to the interim meetings are concerned. According to the society, the notice of every board must be given before one work, in writing to every director at the time being in Shimoga. And to every other director at gives notice to any director at his usual address for communication. It may be noted that, the failure to give notice to any director renders the meeting invalid. The quorum for the board meeting (i.e, the minimum number of directors required for meeting) is 1/3 of its total strength or 5 directors whichever is higher. The proceedings of the board are to be conducted in the manner provided for in the clause of Karnataka State Co- operative Societies Act. The Act provides that, a majority shall decide the questions at the meeting The maters decided in the meeting are put in the form of resolution may also be passed by circulation. The resolutions of the board are binding on all the directors and all of them are bound to help others in carrying out the decisions taken by the board. The resolution passed at the meeting are entered in the minute book of the society, which is to be signed by the president of the succeeding meeting.
DUTIES OF DIRECTORS:
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We know that, the directors of a society occupy an important position in society's management and enjoy immense power. However, they should exercise their power for the protection of the interest of the members. The byelaw of the society therefore requires them to perform duties in order to prevent the abuse of power. The duties of directors may be given as follows: 1.Duty to call annual every year. 2 Duty to maintain secret of the society 3.Duty to approve balance sheet and profit and loss account before they are submitted to the auditors for their report. 4. Duty to attend board meetings. 5. Duty to send to the registrar of co- operative society copies of special resolutions. 6. Duty to keep the register of members. 7. Duty to see that proper accounts are kept, profit and loss account and balance sheet are prepared and are placed at every annual general meeting along with the auditor's report and directors report. 8. Duty to perform the functions of the society personally and not delegate them to other persons. 9. Duty to disclose the interest of the society.
SECRETARY:
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Secretary is an important officer of the society. However , he is only a subordinate officer and has managerial functions. He is being appointed by the board has no original authority. He is required to perform the duties assigned to him under the co- operative societies Act, and by the board of directors. He is responsible for the day to day working of the society, especially his duties include. 1. To keep and maintain various of the society (such as Register of members, register of directors etc) 2. To carryout the orders of board of directors. 3. To file with the register of co- operative society, necessary document and returns (i.e. annual return, annual account etc.) 4. To submit and verify miscellaneous statements, forms and returns. 5. He is required to advise and guide the directors on all important legal business matters affecting the working of the society. 6. He should draft the director's report to be presented at the annual general meeting. 7. He should arrange for the payment of dividends to the shareholders. 8. To perform all statutory requirements on behalf of directors. 9. To attend all meeting of board directors and shareholders and record the proceedings of all such meetings. 10. To organize and control the staff of the society and to supervise their work.
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11. To look after all the internal or office management of society. We know that, a secretary is appointed to perform all administrative functions, in which an accountant, internal auditor, cahier-clerks, servants support him in carrying out society's day to days activities.
WORKING OF S.K.V.S.S.B. S.K.V.S.S.B day to day work is carried on with the help of eminent staff members. They are much essential to carryout its financial transactions. These peoples are treated as work force tot he financial activities. The society works with total staff members, viz,. Secretary Accountant Internal Auditor Cashier Two clerks Two servants The society has regular meetings to sort out the problems faced by them in caring out their work; they're by achieving effective co ordination and functioning among the staff members. OBJECTIVES OF THE SOCIETY: The main objectives of the society are:
39
To extend credit facilities or financial assistance to the members at reasonable rate of interest. To provide loans to increase agricultural production, animal husbandry, poultry and agricultural equipments. To provide loans to improve Irrigation facilities to dry lands. To provide co- operative education and publicity of so To border or extend facilities of co-operative society to its members. To encourage the habit of saving among the members. To educate small and middle class people to understand co- operative principles. Source of funds: The following are the important of source of income of S.K.V.S.S.B. a. Share capital: Share capital is a capital, which has collected from its members for the primary primary membership. b) Deposits: It is revenue deposited by the members who have saving habits in accordance with their earnings. FUNCTIONS PERFORMED BY THE S.K.V.S.S.B. The SKVSSB performs various functions they are as follows: 1.Receiving of deposits:
40
The society records different types of deposits from the customers. The society has introduced several schemes to attract deposits, they are: Saving deposits Kasaba Nitya Nidhi deposits Kasaba Nigadi deposit. Kalpavruksjha deposit Bhavishyanidi deposit Shivanagadhu deposit Bhadratha deposit. 2. Granting of loans and advances: The society grants and advances to its members at the reasonavble rate of interest. The society provides followings types of loans ,viz., Shivanagadhu paper loan Kasaba Nigadhi deposi loan Kasaba NIthya Nidhi loan Gold ornament loan Vehicle loan NSC loan Staff future fund loan BENEFITS SCHEMES TO MEMBERS:
41
1. Members welfare fund: In the year 1989 this scheme was introduced. Under this scheme, the membership fees of Rs 500/- on the death of the members it provides Rs 10,00 /- as compensation. 2. Endowment Education Fund: This scheme is introduced in the 1999. Under this scheme it distributes Rs, 54,710/- to the students of its members. Recently it is also encouraging handicapped students with the help of this fund 3. Safety Locker Facility: Safety locker facilities provided at the society with a cheaper rate to protect its customers from the uncertainties like, robbery, theft, fire ect. With this lookers facility an additional deposit is provided to attract customers moderately.
42
CHAPTER- 5 HISTORY AND EVALUTION OF K.V.S.S. BANK
INTRODUCTION THE FIRST DIRECTORS OF BANK PROFILE OF K.V.S.S BANK BALANCE SHEET OF K.V.S.S. BANK GROWTH AND DEVELOPMENT
43
HISTORY AND EVALUTION OF K.V.S.S. BANK Introduction: The DCC Bank K.V.S.S. bank utopia lit the bank to be opened operating on 31/12/1943 in utopia a taluk Recovery or Repayment of loans is important factor, which is directly effecting the development of Bank. The loans which is not performing assets to the bank. The non-recovery of loans will effects the relation of funds, Therefore Bank must take bank must take keen interest in effecting the maximum recovery towards better performance of the bank taking timely and effectively steps in this regards. State Government has enacted law enabling speedy recovery of over dues recover of dues of banks. The sold low many at May not for the fuelling of a suit in a credit about generally such laws provide for recovery through revenue officials at through separate farmers. The states may restrict the applicability of such laws only to certain types of loans. BENEFITS: A subscriber to the fund of he K.V.S.S. bank 1. A simple lone to the extent of money paid by him with any securities 2. A loan of a higher amount on the mortgage of jewels etc these loans will be allowed at
44
THE FIRST DIRECTORS OF BANK

1. S. HALAPPA
(president)
2. G.S. GEEDDAPPA
(secreatary)
3. D.R. GURUSHAMHA
(treasure)
4. K. NAGARAJA
(manager)
5. E. RAMAPPA
(land holder)
6. MAYAPPA
(land holder)
SHARE HOLDING DCC BANKIN K.V.S.S. BANK LIMITED A community wise classification 1908 Community 1.Sarawathi 2. Shivli 3. Devenga 4. Goldsmit 5. Jain no of member 850 299 102 26 51 amount of share holders 33.723 16.704 12.290 02.348 03.699
45
PROFILE OF K.V.S.S BANK:

Start on 31/12/1944 at utopia of Karnataka foundation as
K.V.S.S.BANK in 1944 by late Halappa philopher this small seed blossomed in to a limited company as K.V.S.S. BANK limited in 1944 and become a kasaba bank in 1969 after bank shikaripua Branch is a Banking Company registerd under the regional rural bank Act 1944, established in the Year of 1944, it has its administrative office in shikaripura kasaba Bank shikaripura branch performs banking business on rural lending.
Capital Surplus Deposits Advances Investmen t Total income Interest expended Operating expended Profit Total 99-00 3.41 2.91 5.21 20.62 26.80 7.85 7.44 5.09 2.76 7.85 00-01 4.07 3.02 11.06 26.80 39.22 8.21 7.92 6.81 1.40 8.25 01-02 5.48 3.02 10.22 39.22 51.72 10.65 10.08 8.57 2.14 10.65 02-03 7.13 3.64 13.56 51.22 77.35 13.38 12.76 11.40 1.98 13.38 03-04 8.53 4.09 10.68 77.35 95.24 20.80 20.29 18.44 7.36 20.82 04-05 8.74 5.80 14.82 95.24 103.4 24.43 24.09 22.46 1.97 24.43 05-06 10.16 8.67 20.26 103.4 118.1 20.75 20.44 18.63 2.09 20.72 06-07 10.90 10.42 22.85 118.1 130.2 27.50 27.48 25.08 2.24 27.50 07-08 11.45 15.94 38.50 130.2 123.8 15.59 15.34 13.07 2.52 15.50
46
BALANCE SHEET OF K.V.S.S. BANK Balance sheet as on 31st mach 2008

Particulars Capital Surplus Deposits Borrowing Liabilities Total Asses of bank Balance with money Fixed assets Other assets Total Net profit Sl no 1 2 3 4 5 6 7 8 9 10 As on 31/3/2007 10.16.000-00 7.60.600-00 1.30.11.988-00 11.70.450-00 7.72.644-00 16.73.1.682-00 16.05130-00 5650-00 10.16.000-00 94.5.330-00 3.60.4.814-00 24.1.756-00 As on 31/3/2008 11.49.700-00 17.45.763-00 14.77.9168-00 48.82.500-00 21.71.739-00 24.72.8.870-00 37.75.842-00 5650-00 11.49.700-00 10.56.850-00 6.04.2.846-00 23.9.259-00
47
GROWTH AND DEVELOPMENT As we know that branch was opened in the year of 1985. In the fast year ended March 1986 the branch had not made any profit even the branch had deposits of RS. 4 Lakhs and advances of Rs. 6 Lakhs. Only after the year ended March 1989 the branch had made profits of Rs. 69.000 for the first time. Then it reduces to R. 60000 in the year of March 1990, with the deposits of Rs. 25 lakhs and advances of Rs. 35 Lakhs. The following information reveals the growth and development of the branch
Year March 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Deposits 4 6 16 21 25 27 29 32 34 44 63 82.76 71.06 90.95 96.87 156.27 168.36 172.53 174.72 190.01 Advances 6 11 21 34 36 37 40 42 46 48 43.22 44.31 33.27 55.91 58.44 68.23 72.42 81.63 83.12 86.72 Profits 1.68 1.52 2 2.50 3 2.72 2.45 2.52 2.70 2.45 4.28 4.11 3.23
48
BRANCH PERFORMANCE IN LAST 2 YEAR 2006-07 Particulars Average Deposits Aggregate deposits Demand deposits Term Deposits Credit Disbursement Priority Sector Non Priority Sector Advance O/S position Recovery percentage (June LPD position No. of a/c Amount N.PA Position Profits Branch 73.75 95.69 28.17 67.52 48.22 39.12 9.10 88.38 66.70 213 16.31 23.01 4.21 Bank 4432.22 5533.60 2054.25 3479.35 2010.66 1175.93 634.73 4161.49 76.08 1725 168.27 610.77 235.70
2007-08 Particulars Branch Bank
49
Average Deposits Aggregate deposits Demand deposits Term deposits Credit Disbursement Priority Sector Non priority sector Advance O/s position Recovery percentage June L.P.D position No. of a/c Amount N.P.A position Profits
112.66 146.27 33.65 112.62 67.23 53.51 13.72 110.9 72.31 92 13.85 23.57 3.13
5488.84 6892.72 2573.20 4319.52 3006.65 2408.18 598.47 5077.85 77.80 1395 201.24 645.30 252.02
50
TOTAL POSITION OF THE BRANCH BANK B.I. CODE REGION ZONE TOTAL DEPOSITS Total advances Net Profit Net Loss No. of Deposit A/c S No. of Borrower A/C s 2007 0913 Mangalore Udupi 38678279 B 4597154 561918 3708 1091 2008 0913 Mangalore Udupi 37660741 60062334 127193 4137 1273
51
CHAPTER 6 DEPOSIT SCHEMES AND CREDIT FACILITIES IN S.K.V.S.S.B. Deposit schemes Introduction Types of deposits
52
DEPOSIT SCHEMS AND CREDIT FACILITIES IN S.K.V.S.S.B Deposit scheme Deposit constitute the main source of S.K.V.S.S.B . The society receives deposits from the customers on various accounts . They are as follows:
Savings A/C
Kasaba nitya nidhi deposit shi nagadu deposit Kalapavruksha deposit Bhavishyanidhi deposit Bhadhrata deposit. 1. Saving A/C: This account is generally opened by all members of the society. In this account, the depositor can deposit money at any time. Minimum amount to open S.B.A/c is Rs 250 /- and at present interest offered by the society on such deposits is 5%. 2.Kasaba Nitya Nidhi Deposit: The business class, petty shop owners ect., generally opens this
account, in this a/c the depositor can with draw money at any time. There is
53
no interest offered by the society on this account. Minimum amount to open a Kasaba NItya NIdhi A/c is Rs 250/-
3.Kasaba NIghadi A/c The society accepts kasaba Nighadi A//c deposits from its members . The maximum period of this deposit is 3 years. The rate of interest offered by the society various from 8% to 9% i.e, up to one year. The rate of interest is 9% P.a and above one years the rate of interest is 8% p.a. 4.Kalpavruksha Deposit: It is also known as cumulative deposit. The maximum period pf this deposit is 3 years. The rate of interest offered by the society various from 8% to 9% p.a i.e,, deposit for up to one year, the rate of interest is 9% p.a. and deposit for above one year, the rate of interest is 8% p.a. Quarterly accrued interest on such deposit will be added to the principle amount 5 Bhavishyanidhi Deposit: This deposit is also called as cumulative deposit. The maximum period of this deposit is 3 years. The rate of interest offered by the society varies from 8% p.a to 9% p.a.i.e,; deposit for up to one year , the rate of interest is 9% p.a. and deposit for above one year. The rate of interest is 8% p.a. CREDIT FACILITATES IN S.K.V.S.S.B The S.K.V.S.S.B provides loans and advances to its member. The society provides credit facilities both to regular members and nominal
54
members. The society deploys its funds by the great of loans and advances to its members depend upon their needs.
The loan is given according to the purpose for which the loan is required and the resources where from the borrower is expected to repay have also an important bearing not only on society liquidity, by its desirability too. If the loan is required for non productivity and speculative purpose, the society should think twice before entertaining the proposition. TYPES OF CREDIT PROVIDED BY THE SOCIETY: The various types of credit facilities provided by this society are given below: Kisan Credit Crop loan Kalpavruksha Deposit loan Shiv nagadi Deposit loan Vehicle loan Gold Ornament loan Business deposit loan Kasaba Nithy Nidhi loan] Wage based loan Animal Husbanding loan Cloth loan
55
1.Kissan credit loan :This loan is provided by the society to its members on their own responsibilities without interest for a start period. It provided self loan to its members without interest up to 5000 with 15 % rate of interest. This loan is repayable in 100 installments. 2.Kalpavruksha deposit loan Kalpavruksha deposit is a loan provided by the society to its members on the security of other members. It provides loan amounting into Rs, 20,000/for a member. For member family which does not have permanent property. It provides loan amount at Rs. 30,000/- and for the members family which have permanent property it provides loan up to Rs, 80,0000 the rate of interest in both the cases will be minimum 16% and maximum 18%. The member can repay this loan in 100 installments. 3.Shiv nagadu deposit loan: This loan is given to small farmers for the improvement their loans. The maximum amount of loan given is Rs. 5000/- and maximum limit Rs 1,00,000/- . The repayment period is limited to 12 monthly installments. The interest charged is 17%. 4. Gold Loans: Gold loan is a loan; Gold loan is a loan provided on the security of gold armaments. The society provided the loan against the gold armaments for
56
a maximum amount of Rs ,1,00,0000. The loan is given on the basis of 60% of the appraiser value of the gold. The rate of interest charged is 17%. 5. Recovering deposit loan The society provides loan to its members as the security of deposits made by them. Thus loan is given on the basis of amount deposited by the members. The loan is given tot he extent of 90% of the deposit amount. The rate of interest charged as loan is one rupee more then the interest given for that fixed deposit. 6 Kasaba Nithya Nidhi Kasaba Nithya Nidhi loan is a loan given on the security of building owned by its members. The minimum loan amount is Rs 40,000/- and maximum up to Rs. 150000/-. The rate of interest charged is 17%. It also given subsidy at 3% a rate of interest. On prompt payment of loan. 7. Wage based loan: Wage based loan is a loan provided to its members on the security of member's house property. The society provides maximum amount of house loan up to 5 lakhs. This loan is also provided to purchase a new house. The rate of interest charged by the society is 17%. The society gives subsidy at 3% in rate of interest for prompt repayment of loan. 8. Animal husbandry loan: Provides for all members of the society having own agriculture land. 9. National saving Certificate Loan:
57
The society provides a loan to its members on the security of national saving certificate. The loan is given on 70% of face value of the national saving certificate. The rate of interest charges by the society is 17%.
10. Vehicle Loan: Vehicle loan is a medium and long term loan. Vehicle loan is provided on the security of two wheeler and three wheeler and four wheelers vehicles. The society provides the vehicle loan 75% of the invoice price of the vehicle. It is repayable in 60 monthly installment w3ith 17% rate of interest for 4 wheeler and 40 monthly installments with 17% rate of interest for 3 wheelers. Problems Of Agricultural Problems An Recoueries Agricultural occupies a significant place in Indian economy majority of the people depend on it for their lively hood its contribution the national income is very significant but undertunately agricultural economy of Indian present aperture of prosperity
58
CHAPTER - 7 SURVEY ANALYSIS AND FINDINGS
59
CHAPTER - 7 SURVEY ANALYSIS AND FINDINGS The Survey how been carried out for collecting data to know perception of the customer and analyzing and to interpreting the data for suggesting method for improvement. Area of Survey The Survey covered 50 customers of the bank. Customers are selected on the basis of their occupation, education, most of the customers are agricultural people dealing in the branch and the customers are village people who are belonging to survey and other 8 to 12 nearly villagers. The following tables give the analysis of perception of respondents. AGE GROUP Age is an important factor that influences on human activities the customer are classified on the basis of their into categories ranging from below 25 to above 50
60
TABLE-1
Age group Below 25 25 TO 35 35 TO 50 Above50 total
No of respondents 04 34 09 03 50
Percentages 08 68 18 06 100
From the above table it is clear that out of the total respondents so conducted 8% of them belong to age group blow 25 year in the age 25 to 35 there are 68% respondent and above 50 there are 6%respondent the bank has become successful in attracting middle aged customers as they are more sagely cons ions and save more
34 35 30 25 20 1 5 9 1 0 4 5 0 Below25 25 TO 35 35 TO 50 Above50 3
61
Table -2 EDUCATIONAL QUALIFICATION The following table shows the distribution of respondents on the of there educational qualification Qualification Up to Middle Scholl Up to Higher Scholl PUC Graduation Total No of respondents 15 18 13 04 50 Percentages 30 36 26 08 100
From the above table we can final that the majority of the customers belonging to the up to higher secondary level since 36% of individual depends and considered as educated up to PUC
P UC 28%
Up to M iddle Scholl 33%
Up to Higher Scholl 39%
62
Table 3 LAND HOLDING: The classification of customers on the basis of their land holding is made into categories which is show in the following table Land holding 1 to3 acres 3 to 6 6 to 10 10 above Total No of respondents 13 27 06 04 50 Percentage 26 54 12 08 100
6 to 10 12%
10 above 8%
1 to3 acres 26%
3 to 6 54%
63
Classification of barrowers on the basis of working status and annual income Table 4 Working Status Agriculturist Businessmen Employees Labour Total Below 25.000 0 06 0 0 06 Below 25,000 20 20 0 4 24 25,000 To 50,000 30 12 4 0 46 Above 1.00,000 10 06 4 4 24
This Table shows annual income of barrowers according to their occupation. The annual income of borrowers is decided in to 4 groups i.e. below 25000, 25000 to 50,000, 50,000 to 1.00.000, above 1.00.000. Among the Agriculturist, 20 persons come under income of Rs. 25000 to 50,000, another 30 persons come under the group of 10,000 to 1.00.000, only 10 persons come under the group of above 1.00,000. Among agriculturist the income below 25.000 shows nil.
35
30
25 Agriculturist Businessmen 1 5 Employees Labour
20
1 0
0 Below 25.000 Below 25,000 25,000 To 50,000 A bove 1 .00,000
64
Money borrowers on the basis of education and age Table - 5 Age / Education Illiterates Up to & above high school Graduation & above Total Below 25 0 05 10 16 25-40 0 54 06 60 40 & above 10 10 04 24 Total 10 70 20 100
From the above table we can concludes that among person below 245 year age, 6 persons some under the group up to and above high school and remaining 10 person completed their degree. Under the age group 25 to 40 years, no one is an illiterate, 54 persons come under the group up to and above high school and remaining 6 persons belonging to the group graduation and above. Among the 24 persons under the group 40 and above aged persons, 10 persons were illustrates. Another 10 persons were up to and above high school, and remaining 2 persons come under the education group graduation and above.
60
54
50
40
30
20 1 0 1 0 0 0 Below 25 25-40 40 & above 5 0 6 1 0 1 0 4
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Opinion of borrowers to the rate of interest on deposits with their types of deposits Table 6
Opinions Attractive Satisfactory Not satisfactory Total
S.B 0 24 16 40
Recurring Deposit 02 08 0 10
Fixed Deposit 10 16 4 30
Kamadhenu Deposit 08 12 0 20
Total 20 60 20 100
% 20% 60% 20% 100%
The above table shown that the borrowers deposit their amount in 4 types of deposit schemes. 40 persons deposit their amount in savings bank account. Among these persons no one opinioned that the rate of interest on deposits is attractive. 24 persons opinioned that rate of interest on deposits in satisfactory and remaining 8 persons opined that it is not satisfactory. Among to 10 recurring deposit holders the interest charged on deposit is satisfactory. Among the total respondents 30 persons deposit their amount in fixed deposits schemes. Among these respondents 10 opined that interest on deposit is attractive, another 16 persons response that rate of interest is satisfactory. According to remaining 4 people interest on deposit is not satisfactory.
66
Graph shows Opinion of borrowers to the rate of interest on deposits with their types of deposits
25
24
20
16 15
16
12 10 8 10 8
5 2 0 0 S.B 0 Recurring Deposit Attractive Satisfactory
0 Fixed Deposit Not satisfactory Kamadhenu Deposit
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Opinion of borrowers to the rate of interest on various types of loans borrowed Table 7 Opinion Low Satisfactory High Total No of respondents 0 56 44 50 Percentage 0 56 44 100
Among 100 persons no one opinioned that interest on loan borrowed is low. 56 person viewed that rate of interest is satisfactory. But according to 44 people interest on deposit to high.
60
56
50
44
40
30
20
10
0 Low Satisfactory High
68
TABLE-8 Response of the borrower to the customer service in Bank Response Excellent Satisfactory Not satisfactory Total No. of Respondents 80 20 0 100 Percentage 80 20 0 100
The borrowers are satisfied about various customer services in bank.
Satisfactory 20%
Not satisfactory 0%
Excellent 80%
69
Opinion about the bank performance in agricultural finance and rural development. Table -9 Performance of Bank Excellent Satisfactory Improving Total No. of Respondents 10 76 14 100 Percentage 10 76 14 100
According to 10% of the borrowers the performance of bank in agricultural finance is excellent. Majority of borrowers i.e. 76% of the people opinioned that bank performance is satisfactory. And 14 persons opinion that performance of bank is improving it can be shown in the following diagram.
Improving 1 4%
Excellent 1 0%
Satisfactory 76%
Excellent
Satisfactory
Improving
70
IMPORTANT FINDINGS OF SURVEY The Survey helps us to know perception of the customers and it is helpful for suggesting methods for improvement of branch and bank. The Survey shows that majority of Customers are agriculturists. And it is clear that agriculturist get maximum help from the bank. As the agriculturists are large in number, the annual income of borrowers belongs to income group 10,000 15000 The Education of Majority of the borrowers is up to and above high school. Less number of borrowers completed their degree.. 60% of borrowers satisfied on the rate of interest on deposit and some borrowed dissatisfied about that and it should increased from the point of view of customers. Major numbers of customer have 12 barrowed crop loans. But few people barrowed allied already loan. The interest charged in loans is considerable to majority of people but some borrowers felt that his high. Borrowers have good opinion about the customer services are bank. Customers have good opinion about the punctuality of staff. The Repayment period of loans is satisfied to majority of borrowers. But few of them not satisfied. Major number of borrowers used their loans for primary purposes.
71
CHAPTER -8 SUGGESTIONS AND CONCLUSION
72
SUGGESTIONS While the survey was conducted the customers of S.K.V.S.S.B complained about a number of problem, they are as follows: 1 Lack of Staff Staff is an essential element in providing facilities to the members. While getting the response. The customers have made complaint about scarcity of staff. The management should take necessary steps to appoint more employees to fulfill the needs of the customers. This may result in reduction of burden of the employees. There fore management should make arrangement for staffing in the society sufficiently. 2 Rate of interest on Deposits: The society should take necessary steps to increase the rate of interest offered on deposits. 3.Enquiry Counter Facilities are known to the members through publicity and wide turnover, but unfortunately, society has a number of illiterate and innocent members for them, enquiry counter is essential to know about the society's facilities. 4. Complaint Box : Sometimes, members can highlight their grievances about the translations of the society through complaint box. There fore the management
73
should take necessary steps to provide complaint box to the members for solving their problems. 5 Simplification of loan procedure: Only the educated and business knowledgeable persons understand the procedure of sanctioning the loan. It creates problems to a common man. Hence, it should be simplified with minimum risk.] 6 Interest On Loans: Total disbursement is an indication of solvency of the society with minimum rate of interest, but in S.K.V.S.S.B. the rate interest charged on loans is comparatively high. As for as possible the society should reduce the rate interest on priority sector and it is advisable for the society to get some amount of income from other facilities. That means the society should invest its funds in profitable ways. 7 Locker Facilities : The society should provide lockers facilities to the members with minimum locker commission. 8 New Loans and advance Schemes: During the survey, some of the customers opinioned that, the types of loans are few. There fore the society should take necessary steps to increase its loan facilities to building construction. Loan on Jewell Aries and other valuables, which are put at society locker. This encourages the needing people to get more facilities.
74
9 Branch Expansion: Since inception of the society, the members have been increasing due to its handsome facilities. Hence, the membership has been overflow and it has proved more work to the staff members. With the help of opening one more branch, over flow can be minimized. 10 Lack of current A/C Facility: Large numbers of society borrowers are related to business class and petty shop owners. They are very much interested in opening the current a/c facilities for their day to day transaction. Therefore, it is advisable for the society to improve current a/c scheme for the benefit of its customers. 11 Use of mechanical devices: Improvement should be made in accounting software even through; the society has made a milestone in introducing "Kannada " as a medium in computers.
75
CONCLUSION "A co operative society is a form of business organization in which financially weak persons voluntarily associate together as human beings on the basis of equality of opportunity and control, equality of distribution of profits an mutuality for the promotion of their common economic interests". Democratic management is the fundamental principle of a co-
operative society. As a co operative society operates on a local scale, generally, all the members must attend the meetings since in the meetings the policies, which promote common interest, are laid down. The study was under taken with an objective to analysis working and management of S.K.V.S.S.B. and to know how the society satisfies the credit needs of its members. The study was also made about how best the members utilize the credit schemes of the society. Suggestions have been given for improving the working conditions of the society. The study reveals that the society has fulfilled the objectives for which purpose it was set up. From one year to another year, the society has gained more and more profit and has economic progress. The society has worked a lot for the upliftment of the poorer class of people to come forward . It has been observed that recovery of loan is more than expected. It has been strengthening the
76
financing position of the society and its member's financials soundness. The recovery of loans is very much satisfactory. At the same time, the borrower member should also assist in improving society's performance by proper repayment of loans borrowed. This helps not only the society, but also the members themselves. Therefore, it can be calculated that, the society has fulfilled "EACH FOR ALL AND ALL FOR EACH" principle ( co opera ration) and the society can flourish better by proper cooperation of director's and its valuable shareholders
77
ANNEXURE Questionnaire Dear Respondent I am student of final year B.B.M of the department of business management Sahyadri Commerce College, Shimoga which is affiliated to Kuvempu University I have under taken the matter of Agriculture Finance with special reference to Kasaba Vyavasaya Seva Sahakara Bank Lit, Shikaripura Taluk Kindly fill up my questionnaire and give valuable suggestion the data that is give by you will be used only for academic purpose
Thanking you Yours sincerely Raghavendra. E.R. 1. NAME................................. 2. ADDDRESS............................. ................................................. 3. AGE BELOW 25 25 TO 35 35 TO 50 ABOVE 50 [ ] [ ] [ ] [ ]
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4. SEX MALE FEMALE 5. QUALIFICATION UP TO MIDDLE SCHOOL UP TO HIGHER SCHOOL PUC GRADUATIONER ABOVE 6. OCCUPATION AGRICULTURIST BUSINESSMAN OTHERS [ ] [ ] [ ] [ ] [ ] [ ] [ [ ] ]
[ ]
7. HOW MUCH LAND DO YOU POSSE 1 TO 5 ACRES 5 TO 10 ACRES 10 ABOVE 8. YOURS ANNUAL INCOME 25.000 TO 50.000 50.000 TO 1.00.000 1.00.000 ABOVE [ ] [ ] [ ] [ ] [ ] [ ]
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9. LAND HOLDING IS LRRIGTED NONLRRIGTED [ ] [ ]
10. ARE YOU MEMBER OF KASABA VYAVASAYA BANK YES [ ] NO [ ]
11. DO YOU HAVE ANY IN THE KASABA BANK YES [ ] NO [ ]
12. BORROW MONEY FOR AGRICULTURE PURPOSE TO REPAY OLD LAND OTHERS [ ] [ ] [ ]
13. INTEREST PAYABLE ON YOU DEPOSIT BY SOCITY IS ATTRACTIVE SATISFACTORY NON SATISFACTORY 14. LOAN IS TAKEN FOR PURCHASING SEEDS [ ] [ ] [ [ ] ]
PURCHASING MANARE [ ] HARVESTING [ ]
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15. ARE YOU SATISFIED DISCOUNT ON AGRICULTURAL LOAN YES NO [ ] [ ]
16. DO YOU REPAY THE LOAN PROMPTLY YES NO [ ] [ ]
17. WHAT IS OPINION SERVICES AT THE BANK GOOD SATISFACTORY NON SATISFACTORY [ ] [ ] [ ]
18. DOSE THE BANK STAFF ASSIST YOU IN GETTING THE LOAN YES NO 19. YOUR [ ] [ ] SUGGESTION GUIDELINES RELATING TO
BANK ...........................................
DATE PLASE SIGNATURE
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BIBLIOGRAPHY
THEORY OF BANKING B.S RAMAN. BANKING THEORY AND PRACTICE B.S RAMAN. GUIDELINE BOOK
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CONTENTS

ANNEXURE Questionnaire Bibliography

Sahyadri Arts & Commerce College, Shimoga

CHAPTER - 1 INTRODUCTION TO PROJECT REPORT

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

CHAPTER 2 INTRODUCTION TO CO-OPERATIVE SOCIETIES

Sahyadri Arts & Commerce College, Shimoga

INTRODUCTION TO CO-OPERATIVE SOCIETIES

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

2) Voluntary Association: A Co-operative society is essentially a voluntary association of

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

CHAPTER-3 INTRODUCTION TO AGRICULTURAL FINANCE

Sahyadri Arts & Commerce College, Shimoga

INTRODUCTION TO AGRICULTURAL FINANCE

Sahyadri Arts & Commerce College, Shimoga

1. Short term credit: -

Short-term credit, for a period of 12 to 15 months

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

MANAGEMENT AND WORKING OF S.K.V.S.S.B MANAGEMENT

Introduction Election procedure The structure of management of S.K.V.S.S.B.

Sahyadri Arts & Commerce College, Shimoga

MANAGEMENT AND WORKING OF KASABA SOCIETY

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

The structure of Management of S.K.V.S.S.B can be shown in a chart as follows:

VICE PRESIDEN DIRECTORS

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

3.Lunatic, insolvent, misconduct and other dis-qualifications.

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

CHAPTER- 5 HISTORY AND EVALUTION OF K.V.S.S. BANK

Sahyadri Arts & Commerce College, Shimoga

Sahyadri Arts & Commerce College, Shimoga

THE FIRST DIRECTORS OF BANK