INTRODUCTION

Industry Profile
World Banks in emerging markets are now well-funded and well capitalized and big enough to
compete directly against their western countries in the global marketplace. They have greater
potential for growth as well as sustainability because of the relatively immature development
of their domestic financial markets and their rapidly growing economies.
The stronger role of various national governments within banking means the future model for
banking and corporate governance is likely to be a hybrid of a regulated free market
approach.
The dominant role of the US banks and of the US dollar is set to give way to a world where
other countries, their currencies, their capital markets and banks, all play a greatly enhanced
role. This structural shift will offer both opportunities and threats to the new players in
banking industry.
During financial crisis, the need for banks arises to understand their business models together
with the associated risks and to have confidence that performance indicators and executive
incentives reinforce desired behaviors. Through their skillset and facilities in providing high
quality business information, management accountants should be at the forefront of meeting
this need and thus contributing to the long-term sustainable success of their organizations.
While the growing power of emerging markets is a long-term structural phenomenon, it has
accelerated in the banking industry because of the decline of the west as to expansion in the
east.
The two largest banks by market capitalization are both Chinese ICBC and China
Construction Bank. Although third place is taken by a British bank, HSBC, it is largely an
Asian operation region.
Singapore, Turkey and South Korea also have banks with market values above $20 billon;
the cut-off point for the top is around $ 25 billon. South Africa often known as the S in the
BRICS is now a global player thanks to Standard Bank, in which ICBC holds a 20% stake.
Looking ahead, banks in emerging markets have a greater potential for growth because of the
immature development of their domestic financial markets. Consultancy firm like McKinsey

estimates that 2.2 billion out of the 2.5 billion people globally who do not use a bank live in
countries like Africa, Asia, Latin America and the Middle East.
Even more significant changes in the rise of the middle class across emerging markets and a
consequent increased demand for credit. As wage levels increase in industrializing countries,
demand for mortgages and consumer loans for cars and household appliances is likely to
increase.
Just as the banking sector seemed to be recovering from the global financial crisis, the
industry was rocked again; the growth of banking industry is measurable. In many developed
countries, economic growth is sluggish. A sovereign debt crisis in Europe sent government
officials scrambling for answers, the lemon brother in US crisis and markets worldwide
reacted with increased volatility. These forces are combining to thwart many banks' recovery
plans.
Around the globe, every banking executive is asking the same question: Whats next? While
it remains difficult to parse future economic trends, no global bank can afford to sit idly by
and simply hope to be able to react to future opportunity and changes. Instead, what is now
known about the global banking sector of yesterday and today, one can analyze the current
situation and make educated deductions about how the banking landscape will shift
tomorrow.

Asian
The banking industry in Asia is at an inflection point as of now. Asian corporates are
increasingly internationalizing, both following and fueling the growth of intra-regional trade
and currencies. Local financial markets are deregulating and relocate wealth also continues to
grow.
These trends have driven up the valuations of banks in many Asian markets however; the
success of pan-Asian banks has been mixed. Cross-border banking deals have struggled to
generate as much value as domestic consolidation, and internationally active Asian banks
have struggled to generate shareholder returns that exceed their domestically focused
participants.
Asian banking revenues have grown at an annual average rate of 9% across Asia over the last
four years, at a time when revenues have been flat or shrinking in Western markets. This

growth has been achieved while maintaining the profitability. Average Return on Equity
(ROEs) in emerging Asia are especially high, ranging from 15% to 25% in markets such as
India, China and Indonesia, and above 15% in more developed markets such as Myanmar,
Malaysia and Hong Kong.
Asian banks are increasingly becoming publicly listed, and the market capitalization of Asian
financial institutions has grown substantially fuelled by IPOs in China as well as India and by
the rapid growth in market valuations of banks elsewhere in Asia, such as those in the Asian
countries.
Asian banks may therefore need to develop a sufficient international network of their own to
address the multi-country cash management needs of corporate clients. This will enable them
to streamline processes, reduce risk, reduce costs and enhance revenues by being able to
cover both legs of export/import and other cross-border client flows. From the outset, they
will need a clear-cut understanding of what type of transaction banking franchise they need
to build to support their customer base. Most of Asian region, by contrast, the regulatory
discussion has returned to where it was a few years ago, focused on whether the Asian
economies are overly dependent on banks for financial intermediation, and on whether local
financial sectors should be more or less integrated with global capital markets. While the
banking sector in the West has been shaken on the other hand financial markets of the East
are stirring. The regulatory changes will play to the advantage of the Asian banking industry.
High levels of savings and conservative bank regulation and management over the last
decade in Asia mean that many Asian banks find themselves in a strong position compared to
foreign banks operating in the region, an enjoying superior capital and liquidity positions, but
Asian banks generally find themselves less financially constrained than their Western peers.
It is a general accepted perception that Asias banking and financial industry was adequately
insulated from the Western financial system. Asian countries banking and finance sector has
successfully avoided the subprime mortgage crisis as against the Western countries.
Contrarily many Asian countries have witnessed rapid growth during the period that resulted
in enormous investments in Western countries and reciprocally Asian nations have received
enhanced foreign investment from the West.

India
At present 80% of the banking sector in India is controlled by the public sector, 15% under
private sector and only 5% are foreign banks. The foreign banks have never contributed to
Indias economic growth and development as they are only interested in profits. Some of
these have been involved in various scams in the past and their licensees have been
cancelled.
Indians have inherited a conservative philosophy that is at odds with that propounded by
global conglomerates fired by the self-serving urge of super-profits as defining their reasons
for existence untouched by the real economic niceties. Basic regulation is a must to ensure
that the system doesnt collapse because there is fiduciary responsibility.
Over the years, Indian banking sector has seen Morarjibhais Social Control to Indiras two
phases of outright nationalization of 14+8 banks, later on Narashima Raos postliberalization partial disinvestment and now the invite into mainstream banking of private
players and non-banking finance companies (NBFCs), who are the new kids in the banking
industry.
In the good old days the RBI played the role of a somber silent Big Daddy, as a supervisor
maintaining monetary control by acting as Banker to the Banks. It is rightly now said: If
collecting deposits and providing loan it to the credit-worthy has become a tricky endeavor,
the RBI as regulator has not been making bankers lives easier either, it has co-opted the
banking system as its unwilling partner in trying to fix everything; is wrong with the Indian
economy.
As per the Reserve Bank of India (RBI), Indias banking sector is well-regulated and
sufficiently capitalized. The economic and financial conditions in the country are far superior
to any other country in the world. Credit risk, market risk and liquidity risk studies suggest
that Indian banks are generally resilient and have withstood the global downturn well.
Indian banking industry is expected to witness better growth prospects in 2017 as a sense of
optimism stems from the Governments measures towards revitalizing the industrial growth
in the country. In addition, RBIs new measures may go a long way in helping and
restructuring of the domestic banking industry.

Reserve Bank of India

Commercial
Banks

Regional Rural
Banks

Public
Sector
Banks

State Bank
Group

State Bank of
India

State Cooperative
Banks

Private
Sector
Banks

Indian

Foreign

Other
Nationalized
Banks

Associate
Banks

Co-operative
Banks

Central Cooperative
Banks

Primary Cooperative
Banks

Figure 1: Banking system in India

The banking system in India is widely categorized as shown in above figure no. 1. The RBI
is the central bank for all banks either regulated or unregulated banks in India. RBI is the
regulatory and supervisory financial institution. Commercial banks are mainly in profit based
banks where it can be private sector or public sector banks. In public sector we have SBI. On
the other hand we have Co-operative banks and they can be categorized like state level,
central level and primary level. Co-operative banks are not profit oriented banks; they are in
Scio-economically business for development of needy people, villagers, rural area.
The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43
foreign banks, 56 regional rural banks, 1,590 urban cooperative banks and 93,550 rural cooperative banks, in addition to cooperative credit institutions. Public-sector banks control
nearly 80 percent of the market, thereby leaving comparatively much smaller shares for its
private peers in domestic market.
As of 11 November 2015, 192.1 million accounts had been opened under Pradhan Mantri Jan
Dhan Yojna (PMJDY) and 165.1 million Rupees debit cards were issued. These new
accounts have mustered deposits worth of Rs 26,819 crore (US$ 4 billion).
Standard & Poors (S&P) estimates that credit growth in Indian banking sector would
improve to 12-13 per cent in FY16 from less than 10 per cent in the second half of FY14.

The Reserve Bank of India (RBI) plans to soon come out with guidelines, such as common
risk-based know-your-customer (KYC) norms, to reinforce protection for consumers,
especially since a large number of Indians have now been financially included post the
governments massive drive to open a bank account for each household for improving
standard of living. RBI implies the Anti-money Laundering rule in banking sector to track the
black money from various illegal sources.
Banking sector influences the nation GDP in three different ways. Frist the salary they pay to
their employees transform into consumption second the loan they give to private sector
transform into investments and consumption and at last the loan they give to public sector
transform to government spending. Thus the banks help in enhancing the three factors
creating the GDP; consumption, investments and government spending.

Maharashtra
Maharashtra has the good financial infrastructure in the country. Almost all major banks and
financial institutions, both national and foreign, have a business presence in this state.
Mumbai is the hub of the country's financial services sector. The Reserve Bank of India, The
State Bank of India, and India's central bank, the country's largest commercial bank has headquartered in Mumbai. In the financial services sector, virtually all the foreign players have
selected Mumbai as their center of Indian operations. These include Merrill Lynch, Goldman
Sachs, Morgan Stanley, UBS Securities, SBC Warburg, BZW.
The banking network spans all over Maharashtra and reaches even remote rural areas. As of
July 1997, there were 5,982 branches of commercial banks operating in Maharashtra. This
does not include branches of private banks and co-operative banking and other institutions.
The key international banks operating in cities like Mumbai include Citibank, American
Express Bank, Deutsche Bank, Standard Chartered Bank, Hongkong & Shanghai Bank, ING
Bank, ABN Amro Bank, Bank of America, Chase Manhattan Bank.

The State boost the best financial infrastructures in the country, important financial
institutions like the Bombay Stock Exchange, the National Stock Exchange and Reserve
bank of India are located in the Maharashtra State. In fact, Maharashtra is justly proud of its
investor-friendly environment. It has consistently been ranked the top among major Indian
States in World Banks Investment Climate Assessment surveys, especially in terms of
having better infrastructure, less corruption and a relatively deregulated business
environment. Maharashtra is indeed a growing economy with a growth rate of 7.1% for the
last decade.
Co op bank
A co- operative bank is a financial institution which belongs to its members, who are the
owner as well as customers of their bank. Co-operative banks are mostly formed by the
persons belonging to the same local or professional community who shares a common
interest. Co-operative banks provide a wide range of banking and financial services like
loans, deposits and banking accounts. They are registered under the Cooperatives Societies

Act, 1912 and governed by Banking Laws (Co-operative Societies) Act, 1965 & The
Banking Regulations Act 1949.
They are organized and managed on principal of co-operation, mutual help and self -help,
their function with the rule of one member, one vote and function like no profit, no loss. Cooperative banks do not pursue a goal of profit maximization. Co-operative banks perform all
the main banking function of Deposit mobilization, supply of credit and provision of
remittance facilities. Co-operative banks selected banking products and they are functionally
specialists in agriculture related products. However structure of co-operative banks has
changes to large extent. They are in housing loan, provide working capital loans and term
loans as well. Co-operative banks are perhaps the first government sponsored, governmentsupport and government subsidized financial agency in India. They get financial and other
help from Reserve Bank of India (RBI), State government, central government and
NABARD.
Main aim of the cooperative is to get the poor and indebted farmers out of poverty and out
from the clutches of local money lenders. Within short period of time, role of cooperatives
extended beyond agricultural credit, it started covering activities such as production, farming,
marketing and processing. Co-operatives are now playing a very significant role in the socioeconomic development of our country especially the rural part of India. In 1951 there were
1,81,000 co-operatives of all kinds in India and this number increased to manifold within
short period of time. During the year 2007-08 there were 1, 50,000 primary credit cooperatives and some 2,60,000 non-credit primary societies of all types.
In India there are four major types of co-operatives institutions are exist they are like

The Primary agricultural credit or service societies.

Agricultural non-credit societies.

Co-operative farming societies.

Agricultural co-operative marketing societies.

Co-operative banks provide credit to the farmers; the most needed people apart from this
cooperative help, banks provide top qualities fertilizers, seeds, pesticides and insecticides,
etc. at reasonable price. Farmers also get marketing, transportation support, warehousing
facility from the co-operative banks. Service co-operative societies help the poor and
marginal farmers with tractors, threshers, etc. Rural co-operatives banks are now entering
into real estate, power, and communication, insurance and health care sector. If these keep on

working with objectives of development then the quality of rural life is better than urban
India.

Theoretical background of the study

Study focus on the different type of services provided by the tab with respect to development
of Malvan gaon in Sindhudurg dist. Most of farmers and fisher mens have successfully using
the different kind of facilities provided by tab. The study of different of loans like home
loans, car loans and gold loans are provided to villagers from year 1999 where development
in gaon is increases year by year. The study is based on different financial and banking
services like loans, deposits, locker facilities, debit cards, insurance etc.
The aim of rural development can be achieved only through financial measure where
financial services provided by tab can be evaluated to find out how much development was
accomplished. It is better to take help of financial measurement rather than marketing and
human resource to provide current status of rural development in Malvan. The study is done
through tab so it was easy to access the banking and financial term.
Rural development is the development process of improving the economic well -being and
quality of life of people especially sparsely populated areas. Rural area is exploitation of
land-intensive natural resources such as forestry, agriculture; in this project the rural area is
driven by fishing sector. The people are in such villages, poor areas are mainly depend on the
basic sources income like agriculture, mining, fishing and small shops. Rural development is
ignored due to globalization and urbanization, the growth factor is only in urban areas,
metropolitans cities. The development is mainly focus on the improving the social and
economic status of people of rural areas, the infrastructure, manufacturing, etc. are the new
faces of development in rural areas. Many programs are taken by government for the
development of backward areas, villages, lots of institutions, NGOs, are actively working
towards development of rural areas like Malvan. To some extent development is successful
but there are different factors which affects the growth of rural areas. The facilities are not
provided to ground level , only paper work is done. Rural areas are now in focus because the
importances of rural areas are explicitly undertaken. If nation has to be developed then only
cities and urban areas are not the factors but also villages, rural areas should be develop so
the balance between the cities and rural areas can be achieved.

Financial management is the effective and efficient management of money in such a manner
as to accomplish the objective of the organization. The arrangement and allocation of money
in efficient way gives birth to the financial management. The organization lends fund for
development of society, personal development and mobilize the funds in time to time. The
growth of rural sectors is highly appreciated by co-operative banks in yearly years. The study
is based on the financial management, where the development in rural area is studied with
the help of various banking and financial terminologies like loans & advances, deposits, etc.
The study focus on the how tab is contributing towards development in Malvan, the various
types of services like loans & advances, deposits, locker facilities are provide to the villagers.
The year wise comparison of loans and deposits are demonstrated in data analysis chapter, so
the development in Malvan is measure in terms of quantitative figure. Thus efficiency of tab
is studied with the help of banking terms towards rural development.

Importance of the topic

India is the faster growing country in globe, where the inclined GDP at 7.6 % shows how our
country is developing. The nation is in the verge of developed country, the vision of super
power country is main aim for upcoming years. From last few decades the country is
improving very well, the major changes has been successfully implemented, the
modernization of country, the digitalization has change the face of our nation. It is observed
that the all major changes, new practices are applied in big cities say metropolitan cities and
other urban areas, the point is very few new practices are exercised in rural areas. Now the
importance of rural areas has become attraction for new phase of development, the
government is now planning to take some serious programs towards development of
backward areas and rural region. The rural part of our nation is doing agriculture, mining,
fishing and small scale business for their income to balance the economy in our country, so it
is equally important to develop rural areas.
Make in India
Prime Minister Mr. Narendra Modi has started a wonderful program of Make In India in
year 2015, the main focus is on the manufacturing and industrial development. The many
foreign investor were requested to invest in India, the PM wants that our nation is lagging in
manufacturing sector as of now we manufacture only 20-29 percent of total GDP. It is really
good opportunity to rural side people to take active participation in such program. The
government can provide natural resources, employment and many other ways to develop a
rural area. The location of project can be chose near to any rural part or in any village. The
foreign technology is imported into India as a result our technology get more advance we can
easily improve the basic condition in rural areas and standard of people. The another major
project has been started by PM Modi is non-other than 100 Smart Cities- Modi has mission
to build 100 cities in India which have an technology advancement and modern look, the
construction is not main part but providing a latest facilities in terms of infrastructure,
telecommunication, transportation, industrial development, etc. The large number of
employment is needed along with the resources where rural areas have chances to grow
along with them, the rural area become the new market for customer as we see the changing

scenario of national market. So it is very important to study re-emerging topic of rural

development.
Agri to service
In 21St century, India is greatly following a service sector as a major part of income, the
traditional picture of agriculture as a main source of income; is somewhat get vanish as time
goes. Many of nations has undergone drastic changes as per the time like from agriculture
sector to manufacturing sector and then service sector but our country is directly jump to
service sector from agriculture sector as shown in figure 2.

Service
Manufacturing
Agriculture
1) Foregn 2) India -

Figure 2: Industrial development process

So the gap of transition from agriculture to service sector is to be filled for the overall
development of nation. Now it is become very essential to focus on manufacturing products
to have a sustainable growth of our nation. Thus rural areas are the main concern for filling
up the gap of globalization and becoming a bridge to connect new phase of development, so
it is important to study how rural areas can be developed through co-operative banks like tab.
Rural people
The rural areas are mainly surrounded by farms or beaches, from the birth of our nation we
are known for agricultural land based country where most of the people are engaged with
farms, forestry, animal business, etc. Now a day agriculture is vanishes like anything and
most of farmers are run out of farms. The 55 % youth in our country are contributing for
development of nation for next 30- 40 years, and only few of them are dream of agriculture
as income source or business. The large number of employment is shift to service; no one is
interested in doing agricultural business except old people. There is need to develop the
uncovered farm and use for respective development of village. The government is giving
necessary subsidiaries, loans foe agricultural business so people can turn this chance into
good opportunity and be a responsible for rural development.

Need to study the topic

There are so many topics on which the project report can made but the rural development is
major issue in our country. In the 21st century our nation is heading towards digitalization
with the GDP rate of 7.6% as of now but the only urban and metropolitans cant be a face of
developed nation. The real development in rural areas is the base for developing a nation,
thus this topic is need to be studied.
The continuous growth and development by the banking sector has resulted core banking &
finance facilities in backward or unbanked areas. It is important to know the facility provided
to the weaker sections of society like small farmers, rural artisans and rural laborers by Ajara
Urban Co-op bank. To create awareness about different kinds of credits given by Ajara Urban
Co-op Bank so customers improve their life style. Hence the need for Role of The Ajara
Urban Co-op. Bank towards Rural development in Malvan town.
The tab is one of the leading banks in western Maharashtra who actively contribute towards
rural development and development programs. The tab has many branches in various side of
state and all most 60 percent branches are situated in rural areas of surrounding areas. The
long lasting record of tab is need to assessed so there will be improvement in providing the
facilities, optimal uses of services can availed by villagers. As well as tab can gives
additional services to people so it will improve the standard of living of rural area.